Artisanal Brands, Inc.

CIK:0000945634|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
SALES	$ 975,004	$ 1,315,625	$ 2,063,289	$ 2,921,179
COST OF GOODS SOLD	822,166	931,170	1,711,185	2,291,115
GROSS PROFIT	152,838	384,455	352,104	630,064
SELLING, GENERAL AND ADMINISTRATIVE	626,249	846,549	1,979,861	3,417,216
DEPRECIATION AND AMORTIZATION	32,610	54,696	102,404	164,088
LOSS FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST	(506,021)	(516,790)	(1,730,162)	(2,951,240)
OTHER INCOME( EXPENSES):
Interest income (expense) and other income	(177,055)	(145,656)	(517,010)	(484,442)
LOSS FROM OPERATIONS BEFORE INCOME TAXES	(683,076)	(662,446)	(2,247,171)	(3,435,682)
INCOME TAXES	0	0
NET LOSS APPLICABLE TO COMMON SHARES	$ (683,076)	$ (662,446)	$ (2,247,171)	$ (3,435,682)
LOSS APPLICABLE PER COMMON SHARE
Basic (in Dollars per share)	$ (0.02)	$ (0.03)	$ (0.08)	$ (0.14)
Diluted (in Dollars per share)	$ (0.02)	$ (0.03)	$ (0.08)	$ (0.14)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
basic (in Shares)	31,429,826	26,492,982	29,892,158	25,346,649
diluted (in Shares)	31,429,826	26,492,982	29,892,158	25,346,649

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,247,171)	$ (3,435,682)
Depreciation	50,770	101,088
Amortization of intangibles	51,634	63,000
Amortization of debt discount	125,011	183,128
Equity based compensation	195,726	997,047
Common stock issued for services		108,805
Changes in operating assets and liabilities
Accounts receivable	(70,462)	124,677
Inventory	(65,131)	(46,062)
Prepaid expenses and other assets	(90,916)	(7,461)
Advances to suppliers	(34,780)
Accounts payable	30,229	206,067
Accrued expenses and other current liabilities	509,556	456,632
NET CASH USED IN OPERATING ACTIVITIES	(1,545,534)	(1,248,761)
CASH FLOWS FROM INVESTING ACTIVITIES:
(Purchase)/sale of fixed assets	(12,704)	(20,451)
(Increase)/decrease in security deposit	(4,503)	1,982
NET CASH USED IN INVESTING ACTIVITIES:	(17,207)	(18,469)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase/(decrease) in notes payable	1,850,000	200,000
Repayment in notes payable	(419,867)
Sale of preferred stock		800,250
Sale of common stock	289,000
Payment of term loan	(33,000)	(60,000)
Proceeds from shareholder loan		300,000
Benefits from sale of common stock	(8,727)
NET CASH PROVIDED BY FINANCING ACTIVITIES	1,677,406	1,240,250
NET INCREASE (DECREASE) IN CASH	114,665	(26,980)
CASH AT BEGINNING OF PERIOD	43,016	43,547
CASH AT END OF PERIOD	157,681	16,567
Cash paid during the period for:
Interest	7,266	2,085
Income taxes	0	0
Non-cash investing and financing activities:
Conversion of preferred shares to common shares	1,050	1,019,300
Preferred shares issued for services		277,544
Common stock issued per loan agreement as debt financing cost	146,500
Conversion of accrued interest to long term debt	$ 462,788

Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $)	Feb. 28, 2013	May 31, 2012
CURRENT ASSETS:
Cash	$ 157,681	$ 43,016
Accounts receivable, net	243,958	173,496
Inventories	362,431	297,300
Advances to suppliers	34,780
Prepaid expenses and other current assets	113,975	23,059
Total Current Assets	912,825	536,871
FIXED ASSETS, net	461,987	500,583
OTHER ASSETS	36,017	31,514
INTANGIBLES - at cost, net	3,417,075	3,468,179
Total Assets	4,827,904	4,537,147
CURRENT LIABILITIES:
Accounts payable	626,865	596,636
Prepaid gift certificates and other deferred revenue	141,625	58,778
Note payable to shareholders'	674,000	984,000
Current portion of long term debt	818,000	250,000
Accrued expenses and other current liabilities	530,676	767,216
Accrued payroll taxes (see note 11)	1,293,879	1,093,483
Total Current Liabilities	4,085,045	3,750,113
LONG TERM LIABILITIES:
Credit card facility loan, net of debt discount	1,470,790
Long term debt, net of current portion and debt discount	4,423,787	4,302,488
Total Liabilities	9,979,622	8,052,601
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS' DEFICIT
Preferred stock - $0.001 par value, 10,000,000 shares authorized, 6,199,154 and 6,514,154 shares issued and outstanding, respectively	6,199	6,514
Common stock - $0.001 par value, 100,000,000 shares authorized 31,582,982 and 28,093,982 shares issued and outstanding, respectively	31,584	28,094
Additional paid-in capital	19,976,168	19,368,435
Accumulated deficit	(25,165,669)	(22,918,497)
Total Shareholders' Deficit	(5,151,718)	(3,515,454)
Total Liabilities and Shareholders' Deficit	$ 4,827,904	$ 4,537,147