Financials

v3.8.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current assets    
Cash $ 204,565 $ 119,010
Marketable securities 16,010 9,410
Accounts receivable, net 12,488 29,999
Notes receivable, net of allowances of $50,841 60,000
Inventory, net 32,300 150,823
Capitalized agricultural costs 25,921
Prepaid insurance 79,403 73,755
Prepaid expenses and other current assets 210,031 83,663
Total current assets 580,718 526,660
Property and equipment, net of accumulated depreciation of $29,226 and $16,986, respectively 58,744 470,578
Land 4,945,000 4,945,000
Advances for machinery 367,840
Construction in progress 1,241,380 624,173
Deferred costs 375,018
Deposits and other assets, net of reserve of $102,500 and $115,000, respectively 7,486 50,212
Total assets 7,201,168 6,991,641
Current liabilities    
Accounts payables 6,402,675 3,100,804
Accrued interest payable 171,919 430,702
Accrued expenses, directors 148,652 241,410
Accrued settlement and severance expenses 653,313 962,703
Accrued legal contingencies 374,402 185,225
Other accrued expenses 180,331 275,269
Deferred revenue, current 159,982 214,343
Notes payable, net of premium of $0 and $16,667, respectively and discounts of $803,025 and $0, respectively 2,372,599 256,897
Related party notes payable, net of discount of $6,000 and $0, respectively 283,866
Convertible notes payable, net of discount of $1,242,601 and $151,414 , respectively 7,464,866 6,667,523
Convertible notes payable, directors 105,000
Derivative liability 3,761,508 19,246,594
Warrant liability 101,577 940,000
Customer deposits 931,204 931,204
Total current liabilities 23,111,894 33,452,674
Notes payable, less current portion 4,029,417 4,288,631
Deferred revenue, less current portion 218,058 337,523
Total liabilities 27,359,369 38,078,828
Commitments and contingencies (Note 11)
Stockholders' Deficit    
Preferred stock, $0.001 par value: 10,000,000 authorized; 0 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
Common stock, $0.001 par value: 10,000,000,000 authorized, 7,251,218,702 and 240,971,727 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively 7,251,219 240,972
Additional paid-in capital 44,450,562 42,600,089
Treasury stock (1,209,600) (1,209,600)
Accumulated deficit (70,463,227) (72,524,893)
Accumulated other comprehensive loss (187,155) (193,755)
Total stockholders' deficit (20,158,201) (31,087,187)
Total liabilities and stockholders' deficit $ 7,201,168 $ 6,991,641

Source

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS 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]        
Revenue $ 16,053 $ 288,961 $ 490,200 $ 390,156
Revenue, related party 25,192 25,192 75,028 74,754
Less: allowances and refunds
Net revenue 41,245 314,153 565,228 464,910
Cost of revenues 124,151 656,383 494,881 1,837,711
Gross profit (loss) (82,906) (342,230) 70,347 (1,372,801)
Operating expenses        
Selling and marketing 22,046 103,765 245,113 442,261
General and administrative 1,665,558 3,506,029 7,899,013 12,627,644
Total operating expenses 1,687,604 3,609,794 8,144,126 13,069,905
Loss from operations (1,770,510) (3,952,024) (8,073,779) (14,442,706)
Other income (expense)        
Interest expense, net (334,081) (195,426) (856,131) (289,226)
Financing costs (1,064,835) (522,379) (4,125,414) (2,822,011)
Change in fair value of derivative liabilities (1,313,182) (2,544,014) 17,506,711 509,057
Change in fair value of warrant liability (85,504) 911,617
Amortization of debt discount (1,514,016) (2,071,898) (4,127,243) (8,121,537)
Gain on sale of assets of subsidiary 5,498
Gain on sale of interest in subsidiary 630,571
Loss on sale of rights and assets (178,032)  
Gain on debt forgiveness 486,857 486,857
Loss on default settlement of a note (168,092) (168,092)
Other income 28,657 (6,208) 49,103 45,927
Total other income (expense) (3,964,196) (5,339,925) 10,135,445 (10,677,790)
Income (loss) before provision for taxes (5,734,706) (9,291,949) 2,061,666 (25,120,496)
Provision for taxes
Net income (loss) $ (5,734,706) $ (9,291,949) $ 2,061,666 $ (25,120,496)
Loss per share attributable to common stockholders        
Basic (in dollars per share) $ (0.00) $ (0.13) $ 0.00 $ (0.54)
Diluted (in dollars per share) $ (0.00) $ (0.13) $ 0.00 $ (0.54)
Weighted average shares outstanding        
Basic (in shares) 6,371,924,843 73,524,951 2,475,958,908 46,945,806
Diluted (in shares) 6,371,924,843 73,524,951 12,982,736,907 46,945,806
Other comprehensive loss        
Net loss $ (5,734,706) $ (9,291,949) $ 2,061,666 $ (25,120,496)
Unrealized gain from marketable securities 12,381 6,600
Comprehensive loss $ (5,722,325) $ (9,291,949) $ 2,068,266 $ (25,120,496)

Source

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities    
Net income (loss) $ 2,061,666 $ (25,120,496)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 22,486 90,315
Provisions and allowances 120,841
Loss on sale of rights and assets 178,032
Gain on sale of interest in subsidiary (630,571)
Gain on debt forgiveness (486,858)
Loss on default settlement of a note 168,092
Charges from escrow deposits 280,400
Inventory valuation reserve 497,439
Change in fair value of derivative liability (17,506,711) (509,057)
Change in fair value of warrant liability (911,617)
Amortization of debt discount 4,110,642 8,121,537
Financing costs 3,839,414 2,822,011
Stock based compensation 696,405 5,331,382
Changes in operating assets and liabilities:    
Accounts receivable 17,511 8,774
Inventory 48,523 275,953
Capitalized agricultural costs (25,921)
Deposits in escrow 55,076
Prepaid insurance (5,648) (208,937)
Prepaid expenses and other current assets (83,642) (172,796)
Advances for machinery (206,439)
Deferred costs 105,172 (299,018)
Accounts payables 4,172,111 2,521,976
Accrued interest payable 656,474 214,886
Other accrued expenses (94,938) (487,834)
Accrued expenses directors (92,758) 185,498
Accrued settlement and severance expenses (309,390) 912,065
Accrued legal contingencies 189,177
Customer deposits (468,468)
Deferred revenue (173,826) (175,078)
Net cash used in operating activities (4,141,773) (6,124,372)
Cash flows from investing activities    
Issuance of note receivable (10,000)
Repayment of note receivable 19,159
Purchase of property and equipment (14,795)
Purchase of real estate (500,000)
Proceeds from the sale of subsidiary 35,000
Proceeds received for sale of interest held in subsidiary 630,571
Proceeds received for sale of rights and assets 91,814
Construction in progress (617,207) (68,959)
Net cash provided by (used in) by investing activities 149,337 (583,754)
Cash flows from financing activities    
Proceeds (payments) notes payable, net 1,017,012 (3,535)
Proceeds from issuance of notes payable, related party 41,667
Payments on related party notes payable (2,500) (624,888)
Exercise of employee stock options 16,000
Proceeds from issuance of convertible notes payable, net of fees 2,900,812 7,432,128
Proceeds from issuance of convertible notes payable from directors, net 105,000 150,000
Net cash provided by financing activities 4,077,991 6,953,705
Net increase in cash and cash equivalents 85,555 245,579
Cash, beginning of period 119,010 101,182
Cash, end of period 204,565 346,761
Supplemental disclosures of cash flow information:    
Cash paid for interest 38,595 1,151
Cash paid for income tax
Non- cash investing and financing activities:    
Common stock issued upon debt conversion 2,153,437 6,261,474
Common stock issued to consultants 109,542 364,728
Issuance of note payable for financing costs 700,000
Issuance of convertible debentures for accounts payable 525,000
Notes Payable issued for accounts payable 250,700
Advances on machinery paid directly by lender 161,401
Purchase of land with notes payable $ 5,000,000

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