Quarterly report pursuant to Section 13 or 15(d)

Liquidity and Financial Condition (Tables)

v3.8.0.1
Liquidity and Financial Condition (Tables)
9 Months Ended
Sep. 30, 2017
Liquidity and Financial Condition [Abstract]  
Schedule of reorganization condensed consolidated balance sheet

 

 

Predecessor Company

 

 

Reorganization Adjustments

 

 

 

Fresh Start Adjustments

 

 

Successor Company

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

-

 

 

$

955,803

 

(1)

 

$

-

 

 

$

955,803

 

Short-term investment

 

 

30,011

 

 

 

-

 

 

 

 

-

 

 

 

30,011

 

Accounts receivable, net

 

 

190,893

 

 

 

-

 

 

 

 

-

 

 

 

190,893

 

Prepaid expenses

 

 

28,589

 

 

 

-

 

 

 

 

-

 

 

 

28,589

 

Inventory

 

 

40,170

 

 

 

-

 

 

 

 

-

 

 

 

40,170

 

Total current assets

 

 

289,663

 

 

 

955,803

 

 

 

 

-

 

 

 

1,245,466

 

Equipment, net

 

 

5,600

 

 

 

-

 

 

 

 

-

 

 

 

5,600

 

Security deposit

 

 

1,200

 

 

 

-

 

 

 

 

-

 

 

 

1,200

 

Goodwill

 

 

-

 

 

 

-

 

 

 

 

4,162,173

  (7)

 

 

4,162,173

 

Intangible assets

 

 

-

 

 

 

-

 

 

 

 

3,879,000

  (7)

 

 

3,879,000

 

Totals

 

$

296,463

 

 

$

955,803

 

 

 

$

8,041,173

 

 

$

9,293,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

487,699

 

 

$

(212,219

)

(2)

 

$

-

 

 

$

275,480

 

Accounts payable and accrued expenses – subject to compromise

 

 

120,325

 

 

 

(86,612

)

(2)

 

 

-

 

 

 

33,713

 

Accrued interest, related party – subject to compromise

 

 

43,301

 

 

 

(16,801

)

(2)

 

 

-

 

 

 

26,500

 

Accrued interest

 

 

173,147

 

 

 

(173,147

)

(2)

 

 

-

 

 

 

-

 

Related party accounts payable and accrued expenses – subject to compromise

 

 

370,151

 

 

 

(163,522

)

(2)

 

 

-

 

 

 

206,629

 

Related party notes payable – secured claim

 

 

73,500

 

 

 

-

 

 

 

 

-

 

 

 

73,500

 

Convertible debentures, net of discounts

 

 

5,405,010

 

 

 

(5,405,010

)

(3)

 

 

-

 

 

 

-

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

42,674

 

 

 

-

 

 

 

 

-

 

 

 

42,674

 

Deferred revenue

 

 

83,415

 

 

 

-

 

 

 

 

-

 

 

 

83,415

 

Convertible option liabilities

 

 

-

 

 

 

394,460

 

(4)

 

 

-

 

 

 

394,460

 

Total current liabilities

 

 

6,799,222

 

 

 

(5,662,851

)

 

 

-

 

 

 

1,136,371

 

Debtor in possession financing

 

 

600,000

 

 

 

(600,000

)

(4)

 

 

-

 

 

 

-

 

Convertible debentures, net of discounts

 

 

-

 

 

 

1,605,540

 

(4)

 

 

-

 

 

 

1,605,540

 

Total liabilities

 

 

7,399,222

 

 

 

(4,657,311

)

 

 

-

 

 

 

2,741,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor preferred stock, $1.00 par value, 5,405,010 shares authorized; 1,801,670 issued and outstanding at June 30, 2016

 

 

-

 

 

 

1,801,670

 

(3)

 

 

-

 

 

 

1,801,670

 

Predecessor preferred stock, $0.01 par value, 5,000,000 shares authorized; 0 issued and outstanding at December 31, 2015

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Successor common stock, $0.01 par value, 300,000,000 shares authorized; 163,901 issued and outstanding at June 30, 2016

 

 

-

 

 

 

1,639

 

(5)

 

 

-

 

 

 

1,639

 

Predecessor common stock, $0.01 par value, 300,000,000 shares authorized; 42,918,927 issued and outstanding at December 31, 2015

 

 

429,189

 

 

 

(429,189

)

(5)

 

 

-

 

 

 

-

 

Successor additional paid-in capital

 

 

-

 

 

 

3,561,463

 

(3)(6)

 

 

1,186,756

  (7)

 

 

4,748,219

 

Predecessor additional paid-in capital

 

 

7,290,829

 

 

 

-

 

 

 

 

(7,290,829

) (7)

 

 

-

 

Accumulated deficit

 

 

(14,822,777

)

 

 

677,531

 

 

 

 

14,145,246

  (7)

 

 

-

 

Total stockholders’ equity (deficit)

 

 

(7,102,759

)

 

 

5,613,114

 

 

 

 

8,041,173

 

 

 

6,551,528

 

Totals

 

$

296,463

 

 

$

955,803

 

 

 

$

8,041,173

 

 

$

9,293,439

 


 

1.

Reflects the net cash payments recorded as of the Effective Date from implementation of the Plan:

 

2.

Reflects the settlement of accounts payable and accrued expenses upon our emergence from bankruptcy, as well as payments made on the Effective Date.

 

3.

Reflects the conversion of Convertible Debentures to Preferred Stock.

 

4.

Reflects the Convertible Debentures.

 

5.

Reflects the cancellation of Former Common Stock and the issuance of New Common Stock.

 

6.

Reorganization adjustment.

 

7.

Reflects the recognition of goodwill, intangible assets and the cumulative impact of fresh-start adjustments.

Schedule of reorganization adjustments net cash payments recorded as of effective date from implementation plan

 

Sources:

 

 

 

 

Net proceeds from Exit Facility

 

$

1,319,001

 

 

Total sources

 

 

1,319,001

 

 

Uses:

 

 

 

 

 

Predecessor accounts payable and accrued expenses paid upon emergence

 

 

185,979

 

 

Other payments made upon emergence

 

 

177,219

 

 

Total uses

 

 

363,198

 

 

Net Sources

 

$

955,803

 

Schedule of reorganization items represent amounts incurred subsequent to bankruptcy filing

 

    Successor
For the Three Months Ended 
September 30,
2016
    Predecessor 
For the Six Months Ended 
June 30,
2016
 
Professional fees   $ (64,821 )   $ (171,893 )
Net gain on reorganization items     -       713,379  
Reorganization items, net   $ (64,821 )   $ 541,486