AuraSound, Inc.

CIK:0000810208|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Income Statement [Abstract]
Net revenue	$ 9,947,335	$ 27,179,168	$ 25,074,241	$ 38,150,370
Cost of sales	8,043,302	24,662,351	21,629,723	34,433,372
Gross Profit	1,904,033	2,516,817	3,444,518	3,716,998
Research and development expenses	204,155	282,475	407,603	370,971
Selling, general and administrative expenses	1,344,965	1,014,947	2,457,868	1,954,845
Amortization	204,501	204,500	409,002	340,835
Total operating expenses	1,753,621	1,501,922	3,274,473	2,666,651
Income from operations	150,412	1,014,895	170,045	1,050,347
Interest expenses, net	44,762		87,578
Other (Income)/ Expense	(16,560)		(15,994)
Income before income tax	122,210	1,014,895	98,461	1,050,347
Provision for Income taxes
Net income	$ 122,210	$ 1,014,895	$ 98,461	$ 1,050,347
Earnings per share
Basic	$ 0.01	$ 0.09	$ 0.01	$ 0.09
Diluted	$ 0.01	$ 0.05	$ 0.01	$ 0.05
Weighted average common shares outstanding
Basic	16,978,455	11,504,835	16,927,272	11,133,847
Diluted	23,161,943	20,975,689	23,110,760	20,209,062

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 98,461	$ 1,050,347
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Provision for bad debts and sales returns	(221,036)	125,000
Provision for obsolete inventory		(64,141)
Stock based compensation	100,785
Depreciation	62,710	14,037
Amortization	409,002	340,835
Changes in operating assets and liabilities, net of effects from acquisition:
Accounts receivable	4,899,392	(11,053,979)
Inventory	(3,791,503)	(10,101,208)
Other assets	(85,502)	(194,049)
Accounts payable	(2,413,610)	20,449,378
Accrued expenses	455,671	86,492
Other		(25,000)
Net cash provided by (used in) operating activities	(485,630)	627,712
Acquisition of property and equipment	(324,714)	(111,501)
Cash acquired in acquisition of net assets and liabilities of ASI		154,971
Net cash provided by (used in) investing activities	(324,714)	43,470
CASH FLOWS FROM FINANCING ACTIVITIES
Restricted cash	(2)
Net Line of Credit (payments)/borrowing from Sinopac	250,810
Net cash provided by financing activities	250,808
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(559,536)	671,182
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE	1,824,594	129,939
CASH AND CASH EQUIVALENTS, ENDING BALANCE	1,265,058	801,121
SUPPLEMENTAL DISCLOSURES:
Cash paid during the three months for:Interest	70,941
Conversion of accounts receivable to other assets	910,378
Conversion of accounts payable and accrued expenses to equity		3,000,000
Conversion of notes payable to equity		1,724,724
Conversion of related party notes payable to equity		1,904,309
Issuance of Common Stock and Warrants for purchase of net assets and liabilities of ASI		$ 6,349,205

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Dec. 31, 2011	Jun. 30, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 1,265,058	$ 1,824,594
Restricted Cash	100,002	100,000
Trade accounts receivable, net of allowance for doubtful accounts and sales returns of $357,622 at December 31, 2011 and $578,657 at June 30, 2011	8,442,861	14,031,596
Inventory	19,342,463	15,550,960
Other current assets	193,551	108,049
TOTAL CURRENT ASSETS	29,343,935	31,615,199
Property and Equipment, net	744,507	482,503
Intangible Assets and other, net	4,251,539	3,750,163
Goodwill	6,424,314	6,424,314
TOTAL ASSETS	40,764,295	42,272,179
CURRENT LIABILITIES:
Accounts payable	3,942,230	2,940,602
Related party payables	24,840,111	28,255,349
Accrued expenses	925,073	469,403
Accrued taxes	622,803	622,803
Due to Sinopac, net	4,287,097	4,036,287
Shares to be issued		310,696
TOTAL CURRENT LIABILITIES	34,617,314	36,635,140
COMMITMENTS AND CONTINGENCIES (NOTE 9)
STOCKHOLDERS' EQUITY
Preferred stock - $0.01 par value, 3,333,333 shares authorized and none outstanding at December 31, 2011 and June 30, 2011
Common stock - $0.01 par value, 100,000,000 shares authorized at December 31, 2011 and June 30, 2011. 16,978,455 issued and outstanding at December 31, 2011;16,629,654 issued and outstanding on June 30, 2011.	169,785	166,297
Additional paid in capital	42,763,640	42,355,647
Accumulated deficit	(36,786,444)	(36,884,905)
Total stockholders' equity	6,146,981	5,637,039
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 40,764,295	$ 42,272,179