LIGHTING SCIENCE GROUP CORP

CIK:0000866970|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue	$ 9,337,305	$ 17,098,013
Cost of goods sold	7,355,672	13,619,103
Gross profit	1,981,633	3,478,910
Operating expense:
Selling, distribution and administrative	5,254,249	5,076,064
Research and development	730,334	1,080,999
Restructuring expense	409,199
Depreciation and amortization	139,397	221,073
Total operating expenses	6,533,179	6,378,136
Loss from operations	(4,551,546)	(2,899,226)
Other income (expense):
Interest expense	(1,705,726)	(1,612,446)
Related party interest expense	(138,300)	(138,300)
Increase in fair value of liabilities under derivative contracts	(1,410,101)	(78,734)
Other income, net	6,692	11,018
Total other income (expense)	(3,247,435)	(1,818,462)
Loss before income tax expense	(7,798,981)	(4,717,688)
Income tax expense	407	2,560
Net loss	(7,799,388)	(4,720,248)
Foreign currency translation loss	5,300	(186,162)
Comprehensive loss	$ (7,794,088)	$ (4,906,410)
Parent [Member]
Other income (expense):
Basic and diluted net loss per weighted average common share attributable to controlling stockholders (in dollars per share)	$ (0.04)	$ (0.02)
Basic and diluted weighted average number of common shares outstanding attributable to controlling stockholders (in shares)	375,961,974	327,637,170
Noncontrolling Interest [Member]
Other income (expense):
Basic and diluted net loss per weighted average common share attributable to controlling stockholders (in dollars per share)	$ (0.04)	$ (0.02)
Basic and diluted weighted average number of common shares outstanding attributable to controlling stockholders (in shares)	105,546,568	98,060,244

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (7,799,388)	$ (4,720,248)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	139,397	221,073
Issuance of restricted stock and stock options for directors' compensation	(10,046)	11,903
Stock based compensation expense	(94,951)	544,651
Allowance for doubtful accounts receivable	37,115	(18,321)
Write-down of inventory	138,317
Increase in fair value of derivative contracts	1,410,101	78,734
Amortization of debt issuance costs	530,405	356,989
Medley discount accretion	194,768	194,768
Interest accrued on Medley Term Loan	161,912	155,133
Changes in operating assets and liabilities:
Accounts receivable	(1,700,697)	(2,801,122)
Inventories	5,028,837	4,237,884
Prepaid expenses	(276,465)	143,349
Other current and long-term assets	665	4,828
Accounts payable	(3,945,691)	(4,265,486)
Accrued expenses and other liabilities	356,715	(410,003)
Net cash used in operating activities	(5,829,006)	(6,265,868)
Cash flows from investing activities:
Purchases of property and equipment	(81,772)	(9,675)
Capitalized patents	(107,796)	(144,766)
Net cash used in investing activities	(189,568)	(154,441)
Cash flows from financing activities:
(Payments) to net proceeds from draws on lines of credit and other short-term borrowings	(3,912,615)	4,689,497
Payment of long-term debt		(18,748)
Debt issuance and debt amendment costs	(61,967)
Proceeds from issuance of common stock under equity compensation plans		282
Proceeds from issuance of Series J Redeemable Convertible Preferred Stock and Warrants	10,000,000	3,000,000
Fees incurred on issuance of preferred stock	(183,018)	(20,000)
Net cash provided by financing activities	5,842,400	7,651,031
Effect of exchange rate changes on cash	20,846	(186,162)
Net increase (decrease) in cash	(155,328)	1,044,560
Cash and cash equivalents balance at beginning of period	1,911,151	647,526
Cash and cash equivalents balance at end of period	1,755,823	1,692,086
Supplemental disclosures:
Interest paid during the period	971,050	994,676
Series J Redeemable Convertible Preferred Stock [Member]
Non-cash investing and financing activities:
Deemed dividends	$ 11,228,855	$ 3,807,957

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,755,823	$ 1,911,151
Restricted cash	3,000,000	3,000,000
Accounts receivable, net	5,775,963	4,112,809
Inventories	11,255,124	16,422,382
Prepaid expenses	1,229,804	962,516
Total current assets	23,016,714	26,408,858
Property and equipment, net	611,037	636,238
Intangible assets, net	3,571,538	3,496,169
Pegasus Commitment		40,000
Other long-term assets	106,765	107,430
Total assets	27,306,054	30,688,695
Current liabilities:
Line of credit, net of debt issuance costs	2,168,296	5,785,020
Accounts payable	9,900,546	13,846,007
Accrued expenses	7,525,091	7,162,772
Total current liabilities	19,593,933	26,793,799
Note payable, net of debt issuance costs	29,387,805	28,858,578
Liabilities under derivative contracts	2,418,158	1,048,057
Total other liabilities	31,805,963	29,906,635
Total liabilities	51,399,896	56,700,434
Redeemable preferred stock	563,996,236	543,996,236
Commitments and contingencies
Stockholders' deficit:
Common stock, $.001 par value, authorized 975,000,000 shares, 220,292,020 shares issued as of March 31, 2017 and December 31, 2016, respectively	220,292	220,292
Additional paid-in capital	272,326,554	282,614,569
Accumulated deficit	(855,431,527)	(847,632,139)
Accumulated other comprehensive loss	(1,447,897)	(1,453,197)
Treasury stock, 2,505,000 shares as of March 31, 2017 and December 31, 2016, at cost	(3,757,500)	(3,757,500)
Total stockholders’ deficit	(588,090,078)	(570,007,975)
Total liabilities and stockholders’ deficit	27,306,054	30,688,695
Series H Redeemable Convertible Preferred Stock [Member]
Current liabilities:
Redeemable preferred stock	223,030,110	223,030,110
Series I Redeemable Convertible Preferred Stock [Member]
Current liabilities:
Redeemable preferred stock	114,736,096	114,736,096
Series J Redeemable Convertible Preferred Stock [Member]
Current liabilities:
Redeemable preferred stock	206,124,000	186,124,000
Series K Redeemable Preferred Stock [Member]
Current liabilities:
Redeemable preferred stock	$ 20,106,030	$ 20,106,030