Financials

v3.5.0.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current Assets    
Cash $ 102,341 $ 416,187
Accounts Receivable 64,292 42,449
Prepaid Costs and Expenses 108,481 109,927
Inventories 1,046,048 1,053,890
Total Current Assets 1,321,162 1,622,453
Fixed Assets, net 76,316 51,305
Website Acquisition Assets, net 677,014 630,286
Other Assets 133,983 15,547
Total Assets 2,208,475 [1] 2,319,591
Current liabilities    
Accounts payable 471,687 323,782
Accrued interest - related party 167
Premium Finance Loan Payable 10,648 52,406
Total Current Liabilities 482,502 376,188
Long Term Debt to Related Parties, net 30,192 122,260
Total Liabilities 512,694 498,448
Commitments and contingencies
Shareholders' equity    
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 issued and 5,200,000 outstanding respectively 1,000 52,000
Common stock, par value $0.01, 324,000,000 shares authorized, 44,690,733 issued and outstanding at September 30, 2016, and 35,885,059 issued and outstanding at December 31, 2015, respectively. 446,908 358,850
Additional paid-in-capital 9,394,893 7,568,048
Accumulated Deficit (8,147,020) (6,157,755)
Total shareholders' equity 1,695,781 1,821,143
Total liabilities and shareholders' equity 2,208,475 2,319,591
Series A Preferred Stock [Member]    
Shareholders' equity    
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 issued and 5,200,000 outstanding respectively 1,000 19,000
Series B Preferred Stock [Member]    
Shareholders' equity    
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 issued and 5,200,000 outstanding respectively 10,000
Series C Preferred Stock [Member]    
Shareholders' equity    
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 issued and 5,200,000 outstanding respectively 18,000
Series D Preferred Stock [Member]    
Shareholders' equity    
Preferred stock, par value $0.01, 20,000,000 shares authorized, 100,000 issued and 5,200,000 outstanding respectively $ 5,000
[1] Includes intercompany accounts.

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v3.5.0.2
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Statement [Abstract]        
Revenues from product sales $ 292,235 $ 335,750 $ 976,056 $ 921,322
Revenues from services 113,502 95,264 313,266 191,722
Total revenue 405,737 431,014 1,289,322 1,113,044
Cost of sales - products 230,217 273,227 737,738 733,146
Gross profit 175,520 157,787 551,584 379,898
Selling, general and administrative expenses 686,802 516,439 2,205,855 1,459,654
Loss from operations (511,282) (358,652) (1,654,271) (1,079,756)
Other income (expense)        
Interest income 11 10 21 23
Interest expense (297,130) (493) (335,015) (1,384)
Total other income (expense) (297,119) (483) (334,994) (1,361)
Net loss before taxes (808,401) (359,135) (1,989,265) (1,081,117)
Income taxes
Net loss (808,401) (359,135) (1,989,265) (1,081,117)
Preferred stock dividends        
Series A, Series B, Series C & Series D preferred 60,339 101,939 278,525 247,397
Total preferred stock dividends 60,339 101,939 278,525 247,397
Net loss attributable to common shareholders $ (868,740) $ (461,074) $ (2,267,790) $ (1,328,514)
Basic and diluted net loss per share $ (0.02) $ (0.01) $ (0.06) $ (0.04)
Weighted average shares outstanding - Basic and diluted 40,848,279 35,108,850 38,220,591 34,245,752

Source

v3.5.0.2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net Loss $ (1,989,265) $ (1,081,117)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation 10,025 10,879
Amortization of debt discount 305,115
Amortization 186,007 131,937
Stock option compensation expense 107,193 42,604
Common stock issued for services 64,110 37,350
Product refund reserve 12,642
Changes in operating assets and liabilities:    
Accounts receivable (34,485) (40,266)
Inventory 7,842 (289,284)
Prepaid costs and expenses 1,446 2,180
Other assets (118,436) (2,967)
Accounts payable and accrued interest 53,679 (19,659)
Net cash used in operating activities (1,394,127) (1,208,343)
Cash flows from investing activities:    
Purchase of fixed assets (35,036) (22,862)
Purchase of websites (142,925) (162,000)
Net cash used in investing activities (177,961) (184,862)
Cash flows from financing activities:    
Sale of common stock 800,000 790,000
Sale of preferred stock 400,000
Payments on premium finance loan (41,758) (32,610)
Long term debt - loan from related parties 500,000
Net cash provided by financing activities 1,258,242 1,157,390
Net decrease in cash (313,846) (235,815)
Cash at beginning of period 416,187 590,236
Cash at end of period 102,341 354,421
Supplemental Disclosure of Cash Flow Information    
Cash paid for Interest 25,367 1,384
Cash paid for Income taxes
Non-Cash Investing and financing activities    
Premium finance loan payable recorded as prepaid 43,402 30,154
Payable for purchase of website 150,000
Conversion of convertible notes payable and accrued interest into common stock 603,600
Payable purchase of website 262,500
Beneficial conversion of debt discount to additional paid-in capital 289,000
Discount recognized relative to website acquisition payable $ 32,732

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