iSatori, Inc.

CIK:0000741114|SEC Filings

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Product revenue (Net of returns and discounts)	$ 2,460,676	$ 2,877,496	$ 5,859,116	$ 6,096,740
Royalty revenue	18,774	30,501	37,993	63,127
Other revenue	9,442	10,370	20,607	19,767
Total revenue	2,488,892	2,918,367	5,917,716	6,179,634
Cost of sales	1,494,658	1,306,245	3,204,205	2,550,043
Gross profit	994,234	1,612,122	2,713,511	3,629,591
Operating Expenses:
Selling and marketing	497,720	477,413	1,123,165	1,260,101
Salaries and labor related expenses	586,531	600,968	1,205,785	1,248,381
Administration	374,983	299,775	700,359	513,753
Depreciation and amortization	25,176	20,015	48,260	39,144
Total operating expenses	1,484,410	1,398,171	3,077,569	3,061,379
Income (loss) from operations	(490,176)	213,951	(364,058)	568,212
Other income (expense)	10,741	204,642	(57,482)	234,842
Financing expense	(15,385)	(9,476)	(27,746)	(30,827)
Interest expense	(20,096)	(9,636)	(36,311)	(20,685)
Income (loss) before income taxes	(514,916)	399,481	(485,597)	751,542
Income tax expense	(7,796)	(63,382)	(10,726)	(79,205)
Net income (loss)	$ (522,712)	$ 336,099	$ (496,323)	$ 672,337
Net income (loss) per common share, Basic	$ (0.04)	$ 0.03	$ (0.04)	$ 0.05
Net income (loss) per common share, Diluted	$ (0.04)	$ 0.02	$ (0.04)	$ 0.05
Weighted average shares outstanding, Basic	13,371,791	12,886,401	13,089,814	12,883,026
Weighted average shares outstanding, Diluted	13,371,791	13,686,754	13,089,814	13,714,797

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (496,323)	$ 672,337
Adjustments to reconcile net income/(loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	48,260	39,144
Share based compensation expense	67,630	28,397
Change in value of assets held for sale	34,979	(14,800)
Change in fair value of derivative liability	61,988	(192,002)
Provision for deferred income taxes	0	66,152
Change in assets and liabilities:
Accounts receivable	(423,559)	250,030
Income tax receivable	0	45,448
Notes receivable	5,346	3,656
Inventory	324,749	(261,040)
Prepaid expenses	(570,920)	10,313
Deposits and other assets	5,002	20,904
Trade accounts payable	1,085,340	106,393
Accrued expenses	(16,563)	128,135
Deferred revenues	(191,127)	(77,238)
Net cash provided by (used in) operating activities	(65,197)	825,829
Cash flows from investing activities:
Purchase of property and equipment	(133,509)	(16,149)
Proceeds from the sale of assets held for sale	0	87,843
Net cash provided by (used in) investing activities	(133,509)	71,694
Cash flows from financing activities:
Proceeds from notes payable	203,010	0
Payment of notes payable	(7,397)	(2,347)
Payment of line of credit	(345,519)	(136)
Proceeds from exercise of warrants	0	0
Net cash used in financing activities	(149,906)	(2,483)
Net increase (decrease) in cash	(348,612)	895,040
Cash and cash equivalents, beginning of year	738,725	822,876
Cash and cash equivalents, end of year	390,112	1,717,916
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	39,696	26,670
Cash paid for taxes	$ 8,500	$ 6,700

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 390,112	$ 738,725
Accounts receivable trade	1,349,065	925,506
Note receivables - current portion	23,593	28,939
Inventories	2,158,853	2,483,602
Assets held for sale	0	34,979
Prepaid expenses	772,552	217,668
Total current assets	4,694,175	4,429,419
Property and equipment:
Leasehold improvements	11,485	11,485
Furniture and fixtures	196,025	128,902
Office equipment	110,418	57,408
Computer equipment	332,171	332,171
Dies and cylinders	57,317	43,942
Less accumulated depreciation	(467,091)	(425,238)
Net property and equipment	240,325	148,670
Note receivable - net of current portion	52,695	52,695
Other assets:
Deferred tax asset, net	57,314	57,314
Deposits and other assets	33,799	45,207
Total other assets	91,113	102,521
Total assets	5,078,308	4,733,305
Current liabilities
Trade accounts payable	1,905,258	819,918
Accrued expenses	236,645	253,208
Deferred revenues	0	191,127
Deferred tax liability, net	57,314	57,314
Line of credit	1,275,000	1,620,519
Notes payable	211,321	15,708
Total current liabilities	3,685,538	2,957,794
Long-term liabilities
Derivative liability	$ 0	$ 152,849
Commitments and contingencies
Stockholders' Equity
Convertible preferred stock	$ 225	$ 225
Common stock	133,688	129,093
Additional paid-in-capital	5,058,077	4,796,241
Accumulated deficit	(3,799,220)	(3,302,897)
Total stockholders' equity	1,392,770	1,622,662
Total liabilities and stockholders' equity	$ 5,078,308	$ 4,733,305