MENDOCINO BREWING CO INC

CIK:0000919134|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Sales	$ 6,968,200	$ 8,539,300	$ 21,659,700	$ 23,611,400
Excise taxes	136,300	140,100	374,000	379,500
Net sales	6,831,900	8,399,200	21,285,700	23,231,900
Cost of goods sold	4,638,500	5,620,700	14,687,900	15,868,400
Gross profit	2,193,400	2,778,500	6,597,800	7,363,500
Operating expenses
Marketing	1,286,900	1,511,500	3,782,700	4,371,500
General and administrative	1,220,700	1,111,600	3,713,600	3,327,000
Total operating expenses	2,507,600	2,623,100	7,496,300	7,698,500
(Loss) income from operations	(314,200)	155,400	(898,500)	(335,000)
Other income (expense)
Other income	1,400	7,400	13,200	51,000
Interest expense	(159,200)	(153,200)	(448,100)	(462,300)
Total other expenses	(157,800)	(145,800)	(434,900)	(411,300)
Income (loss) before income taxes	(472,000)	9,600	(1,333,400)	(746,300)
Provision for income taxes			1,600	3,800
Net (loss) income	(472,000)	9,600	(1,335,000)	(750,100)
Foreign currency translation income (loss)	2,900	(2,000)	10,900	(4,900)
Comprehensive (loss) income	$ (469,100)	$ 7,600	$ (1,324,100)	$ (755,000)
Net income (loss) per common share -
Basic	$ (0.04)	$ 0.00	$ (0.11)	$ (0.06)
Diluted	$ (0.04)	$ 0.00	$ (0.11)	$ (0.06)
Weighted average common shares outstanding -
Basic	12,611,133	12,611,133	12,611,133	12,611,133
Diluted	12,611,133	15,067,357	12,611,133	12,611,133

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,335,000)	$ (750,100)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	839,800	889,200
Provision for doubtful accounts	(1,700)	13,000
Changes in operating assets and liabilities:
Interest accrued on related party debt	157,800	124,800
Accrued severance payable	100,700
Accounts receivable	432,400	716,000
Inventories	67,300	316,600
Prepaid expenses	70,500	(2,900)
Deposits and other assets	38,800	(30,900)
Accounts payable	278,800	(389,800)
Accrued liabilities	370,800	269,300
Net cash provided by operating activities	1,020,200	1,155,200
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(205,900)	(403,800)
Net cash used in investing activities	(205,900)	(403,800)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayment on lines of credit	(489,500)	(998,400)
Borrowing on note payable	400,000	1,000,000
Repayment on long-term debt	(749,200)	(784,100)
Payments on obligations under long term leases	(15,400)	(12,200)
Net cash (used in) financing activities	(854,100)	(794,700)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(5,100)	(9,500)
NET CHANGE IN CASH	(44,900)	(52,800)
CASH, beginning of period	129,600	145,100
CASH, end of period	84,700	92,300
Cash paid during the period for:
Income taxes	1,600	3,800
Interest	290,300	337,500
NON CASH INVESTING AND FINANCING ACTIVITIES
Seller financed asset		$ 96,000

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 84,700	$ 129,600
Accounts receivable, net	3,051,900	3,835,500
Inventories	1,472,100	1,547,000
Prepaid expenses	627,100	759,900
Total Current Assets	5,235,800	6,272,000
Property and Equipment, net	9,844,200	10,588,200
Deposits and other assets	188,300	175,800
Total Assets	15,268,300	17,036,000
Current Liabilities
Secured lines of credit	1,059,900	1,663,400
Accounts payable	4,534,200	4,489,000
Accrued liabilities	2,173,000	1,908,700
Notes payable to related party	2,605,500	2,119,600
Subordinated convertible notes to related party	3,752,000	3,680,100
Current maturities of secured notes payable	2,977,600	3,378,600
Current maturities of long-term debt to related party	108,500	491,500
Current maturities of obligations under capital leases	21,300	23,100
Current maturities of severance payable	269,600	119,700
Total Current Liabilities	17,501,600	17,873,700
Long-Term Liabilities
Capital lease obligations, less current maturities	56,900	79,200
Severance payable	629,200	678,400
Total Long-Term Liabilities	686,100	757,600
Total Liabilities	18,187,700	18,631,300
Commitments and contingencies
Stockholders' Deficit
Preferred stock, Series A, no par value, with liquidation preference of $1 per share; 10,000,000 shares authorized, 227,600 shares issued and outstanding	227,600	227,600
Common stock, no par value 30,000,000 shares authorized, 12,611,133 shares issued and outstanding	15,100,300	15,100,300
Accumulated other comprehensive income	483,300	472,400
Accumulated deficit	(18,730,600)	(17,395,600)
Total Stockholders' Deficit	(2,919,400)	(1,595,300)
Total Liabilities and Stockholders' Deficit	$ 15,268,300	$ 17,036,000