Financials

 

CONDENSED CONSOLIDATED BALANCE SHEETS – USD ($)
Dec. 31, 2017
Dec. 31, 2016
Current Assets
Cash $ 140,022 $ 162,795
Accounts Receivable, net 879,770 157,013
Prepaid Expenses and Other Current Assets 145,732 132,950
Inventories, net 611,468 1,127,072
Total Current Assets 1,776,992 1,579,830
Fixed Assets, net 89,500 99,001
Website Acquisition Assets, net 1,061,191 967,114
Goodwill 446,426
Tradenames 300,000 150,000
Other Assets 44,608 184,400
Total Assets 3,718,717 2,980,345
Current liabilities
Accounts payable 1,240,161 654,140
Accrued expenses 90,000 11,111
Accrued Interest to Related Party 5,592
Premium Finance Loan Payable 63,133 53,643
Deferred Rent 18,886
Deferred Revenues 9,735
Note Payable 754,687 500,000
Total Current Liabilities 2,176,602 1,224,486
Long Term Debt to Related Parties, net 1,198,893 185,905
Total Liabilities 3,375,495 1,410,391
Commitments and contingencies (Note 11)
Shareholders’ equity
Common stock, par value $.01, 324,000,000 shares authorized, 46,168,864 and 44,901,531 issued and outstanding, respectively 461,689 449,016
Additional paid-in-capital 11,685,685 9,944,744
Accumulated Deficit (11,818,902) (8,824,806)
Total shareholders’ equity 343,222 1,569,954
Total liabilities and shareholders’ equity 3,718,717 2,980,345
Series A Preferred Stock [Member]
Shareholders’ equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 1,475,000 and 100,000 issued and outstanding respectively: 1,000 1,000
Series B Preferred Stock [Member]
Shareholders’ equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 1,475,000 and 100,000 issued and outstanding respectively:
Series C Preferred Stock [Member]
Shareholders’ equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 1,475,000 and 100,000 issued and outstanding respectively:
Series D Preferred Stock [Member]
Shareholders’ equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 1,475,000 and 100,000 issued and outstanding respectively:
Series E Preferred Stock [Member]
Shareholders’ equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 1,475,000 and 100,000 issued and outstanding respectively: $ 13,750
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) – USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Income Statement [Abstract]
Product Sales $ 2,577,331 $ 1,499,010
Revenues from Advertising 1,104,017 434,775
Total Revenue 3,681,348 1,933,785
Cost of sales – Product 1,899,370 1,123,005
Cost of Revenues – Advertising 676,502 10,867
Gross profit 1,105,476 799,913
Selling, general and administrative expenses 3,693,571 3,093,295
Loss from operations (2,588,095) (2,293,382)
Other income (expense)
Interest income 701 69
Interest expense (83,590) (11,111)
Interest expense – related party (323,112) (362,627)
Total other income (expense), net (406,001) (373,669)
Net Loss (2,994,096) (2,667,051)
Preferred stock dividends
Series A, Series B, Series C, Series D and Series E preferred 17,645 280,682
Total preferred stock dividends 17,645 280,682
Net loss attributable to common shareholders $ (3,011,741) $ (2,947,733)
Basic and diluted net loss per share $ (0.07) $ (0.07)
Weighted average shares outstanding – Basic and diluted 45,290,360 39,867,371
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) – USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:
Net Loss $ (2,994,096) $ (2,667,051)
Adjustments to reconcile net loss to net cash used in operations:
Provision for Bad Debt 56,620 15,000
Provision for inventory reserves 22,448
Depreciation 26,129 13,955
Amortization of debt discount 192,335 321,056
Amortization 327,529 252,134
Stock option compensation expense 108,090 147,472
Impairment of Website Assets 70,404 95,773
Common stock issued for services 25,860 73,290
Product refund reserve 11,580 14,580
Changes in operating assets and liabilities:
Accounts receivable (429,187) (144,144)
Inventory 493,156 (15,182)
Prepaid expenses and other current assets (12,782) (73,440)
Accounts payable 127,586 224,478
Accrued interest 78,889
Accrued interest – related party (5,592)
Deferred revenues 9,735
Deferred rents 18,886
Other assets 139,792 (118,436)
Net cash used in operating activities (1,732,618) (1,860,515)
Cash flows from investing activities:
Purchase of fixed assets (16,628) (61,651)
Cash paid for acquisition, net (207,801) (607,463)
Net cash used in investing activities (224,429) (669,114)
Cash flows from financing activities:
Proceeds from issuance of Series E Preferred Stock 550,000
Proceeds from issuance of common stock 50,000 800,000
Series E dividend payments (11,303)
Repayments on insurance premium notes payable 9,490 1,237
Issuance (repayments) of notes payable (123,913) 500,000
Proceeds from long term debt- related parties 1,460,000 975,000
Net cash provided by financing activities 1,934,274 2,276,237
Net (decrease) in cash (22,773) (253,392)
Cash at beginning of period 162,795 416,187
Cash at end of period 140,022 162,795
Supplemental Disclosure of Cash Flow Information
Cash paid for: Interest 215,908 30,725
Cash paid for: Income taxes
Non-Cash Investing and financing activities
Premium finance loan payable recorded as prepaid 92,322 84,825
Beneficial conversion debt discount to additional paid-in-capital 615,625 621,500
Payable to seller $ 380,000 150,000
Discount on note $ 32,732
Common stock issued for the acquisition 200,000
Fair value of common stock issued for the acquisition $ 170,000
Inventory 58,000
Assumed liabilities $ 40,000
Common stock issued to due Series A, Series B, and Series C stockholders 10,000 809,472
Conversion of stock shares issued of its Series A, Series B, Series C, and Series D Common Stock 5,100,000
Conversion of stock shares issued of its Series A, Series B, Series C, and Series D preferred stock 5,100,000
Shares issued on conversion of convertible notes 1,207,200
Shares issued on conversion of convertible notes, value $ 600,000
Conversion of interest due $ 3,600
Common shares issued to stockholder 1,100,233
Fair market value of common shares issued to stockholder $ 429,092
Reduced working capital 125,313
Forgiveness of notes receivable $ 204,411

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