EVIO, INC.

CIK:0000715788|SEC Filings

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Revenues
Total revenues	$ 603,192	$ 1,101,310
Cost of revenue
Depreciation and amortization	289,594	289,523
Total cost of revenue	743,267	1,113,063
Gross margin	(140,075)	(11,753)
Operating expenses:
Selling, general and administrative	147,873	1,504,539
Depreciation and amortization	17,907	62,291
Total operating expenses	165,780	1,566,830
Income (loss) from operations	(305,855)	(1,578,583)
Other income (expense)
Interest income (expense), net	(960,485)	(592,089)
Other income (expense)	(359,805)	(178,549)
Gain (loss) on settlement of debt
Impairment charge
Gain (loss) on change in fair market value of derivative liabilities	224,783	981,421
Total other income (expense)	(1,095,507)	210,783
Income (loss) before income taxes	(1,401,362)	(1,367,800)
Provision for income taxes (benefit)		2,735
Net income (loss)	(1,401,362)	(1,370,535)
Net income (loss) attributable to noncontrolling interest	(51,954)	(49,257)
Net income (loss) attributable to EVIO, Inc. shareholders	$ (1,349,408)	$ (1,321,278)
Basic and diluted earnings (loss) per common share	$ (0.03)	$ (0.05)
Weighted-average number of common shares outstanding: Basic and diluted	49,561,707	25,366,021
Comprehensive loss:
Net income (loss)	$ (1,401,362)	$ (1,370,535)
Foreign currency translation adjustment	26,282	64,261
Comprehensive income (loss)	(1,375,080)	(1,306,274)
Testing Revenue [Member]
Revenues
Total revenues	603,192	1,098,310
Cost of revenue
Cost of revenue for services	455,947	823,540
Consulting Revenue [Member]
Revenues
Total revenues		3,000
Cost of revenue
Cost of revenue for services	$ (1,824)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Cash flows from operating activities of continuing operations:
Net income (loss)	$ (1,401,362)	$ (1,370,535)	$ (6,688,377)	$ (6,688,377)	$ (7,842,302)	$ (20,669,033)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization of debt discount				2,875,551	2,241,279
Common stock issued in exchange for fees and services				333,830	342,910
Default penalties and other covenant adjustments on convertible debentures				62,500
Deferred taxes
Depreciation and amortization				819,099	1,080,100
Impairment of goodwill and long lived assets				375,614
Loss on disposal of assets				2,979	64,095
Loss on settlement of accounts payable
Loss on settlement of debt				10,000
Provision for doubtful accounts				25,873	49,835
Provision for excess or obsolete inventory
Stock based compensation				903,683	576,124
Unrealized (gain) loss on derivative liability	(224,783)	(981,421)		(450,580)	(424,774)
Changes in operating assets and liabilities:
Accounts receivable				(7,944)	(144,052)
Prepaid expenses				89,483	(74,605)
Other current assets				(35,115)	89,842
Security deposits				1,775	(35,646)
Operating lease right of use assets				3,116	49,541
Other assets
Accounts payable and accrued liabilities				471,812	1,281,150
Customer deposits and deferred revenues				(66,397)	(206,113)
Deposits, related party
Income taxes payable
Interest payable				515,321	595,752
Net cash provided by (used in) operating activities				(757,777)	(2,356,864)
Cash flows from investing activities:
Cash consideration for acquisition of business
Notes receivable					761,096
Purchase of fixed assets				(39,206)	(853,644)
Purchase of intangible assets
Net cash provided by (used in) financing activities				(39,206)	(92,548)
Cash flows from financing activities:
Proceeds from issuance of preferred stock, net of issuance costs
Proceeds from issuance of common stock, net of issuance costs					592,000
Proceeds from exercise of common stock purchase warrants, net of issuance costs
Proceeds from issuance of convertible debentures					374,000
Proceeds from issuance of convertible notes, net of issuance costs				1,055,102	1,078,732
Proceeds from loans payable					2,718
Proceeds from related party advances				80,431	144,193
Repayments of capital leases				(294,727)	274,553
Repayments of convertible debentures
Repayments of loans payable				(34,920)	(30,476)
Repayments of related party loans payable				(71,063)	(11,906)
Net cash provided by (used in) financing activities				734,823	2,423,814
Effect of exchange rates on cash and cash equivalents				23,232	4,927
Net increase (decrease) in cash and cash equivalents				(38,928)	(20,671)
Cash and cash equivalents at beginning of period			110,325	110,325	81,735	81,735
Cash and cash equivalents at end of period	71,397	61,064		71,397	61,064	110,325
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for income taxes
Supplemental disclosure of non-cash investing and financing activities:
Conversion of convertible note and accrued interest into common stock				1,828,842	708,089
Reclassification of derivative liability to additional paid in capital		$ 1,459,658
Settlement of account payable for common stock				6,000
Common stock issued for settlement of note payable					15,000
Common stock issued for settlement of related party note payable
Common stock issued for subscription receivable
Conversion of Series D Preferred stock to common stock					364,462
Debt discount recorded on convertible notes and debentures payable upon initial measurement of derivative liability				39,241	846,985
Debt discounts recorded for beneficial conversion features on convertible debentures and notes payable				260,083
Debt discounts recorded for original issue discounts on convertible debentures
Vehicles financed through notes payable				105,424
Equipment financed through capital leases					322,383
Issuance of convertible notes payable and other obligations in connection with the acquisition of a business
Sale and assumption of note payable and accrued interest					$ 556,658

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 71,396	$ 110,325
Accounts receivable, net	110,786	133,022
Prepaid expenses	105,039	190,460
Other current assets	44,766	9,689
Note receivable, current portion	538,904	538,904
Total current assets	870,891	982,400
Right of use assets	1,832,856	2,543,976
Capital assets, net	1,116,734	1,383,828
Land	212,550	212,550
Property and equipment, net	2,643,460	3,080,426
Security deposits	176,650	178,918
Prepaid expenses, net		4,061
Total assets	6,853,141	8,386,159
Current liabilities:
Accounts payable and accrued liabilities	4,443,243	3,811,237
Client deposits	42,022	108,418
Interest payable	1,693,136	1,387,642
Capital lease obligation, current	902,894	957,673
Derivative liability	2,134,395	2,545,735
Convertible notes payable, net of discounts	3,721,712	3,695,484
Loans payable, net of discounts, current	788,006	762,476
Total current liabilities	13,725,408	13,268,665
Convertible debentures, net of loan discounts	3,694,043	1,734,890
Lease liabilities	1,886,722	2,594,726
Capital lease obligation, net	121,729	381,786
Loans payable, net	702,578	657,603
Loans payable, related party, net	1,417,793	1,560,849
Total liabilities	21,548,273	20,198,519
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.0001 par value. 1,000,000,000 authorized; 94,217,473 and 29,314,419 shares issued and outstanding at June 30, 2020 and September 30, 2019, respectively	9,422	2,931
Stock subscriptions receivable
Additional paid-in capital	30,001,524	26,498,076
Retained earnings (accumulated deficit)	(44,391,942)	(37,775,183)
Accumulated other comprehensive income	(328,036)	(353,090)
Total stockholders' equity	(14,708,448)	(11,626,682)
Noncontrolling interest	13,317	(185,678)
Total equity	(14,695,131)	(11,812,360)
Total liabilities and equity	6,853,142	8,386,159
Series B Convertible Preferred Stock [Member]
Stockholders' Equity:
Preferred stock	500	500
Total stockholders' equity	500	500
Total equity	500	500
Series C Convertible Preferred Stock [Member]
Stockholders' Equity:
Preferred stock	50	50
Total stockholders' equity	50	50
Total equity	50	50
Series D Convertible Preferred Stock [Member]
Stockholders' Equity:
Preferred stock	34	55
Total stockholders' equity	34	34
Total equity	$ 34	$ 34