Brooklyn Cheesecake & Desert Com

CIK:0000949721|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue
Services	$ 788,218
Total revenue	788,218
Cost and expenses:
Operating	856,490
Bad debt expense	717,231
Depreciation and amortization	385,986	19,744
Selling, general and administrative	3,813,431	1,934,303
Total cost and expenses	5,773,138	1,954,047
Other income (expenses):
Unrealized (loss) on change in fair value of derivative and other fair value liabilities	(1,917,834)	(816,997)
Unrealized gain from change in fair value of contingent consideration	27,290
Gain on extinguishment of debt		2,911,361
Interest income	1,891
Interest expense	(320,072)	(192,513)
Total other income	(2,208,725)	1,901,851
Loss before income taxes	(7,193,645)	(52,196)
Provision for income taxes
Loss from continuing operations	(7,193,645)	(52,196)
Discontinued Operations
Loss from operations of discontinued operations	(544,145)	(2,970,494)
Consolidated Net Loss	(7,737,790)	(3,022,690)
Net (income) loss attributable to noncontrolling interest	(71,064)	32,160
Net loss available to common shareholders	(7,666,726)	(3,054,850)
Deemed dividend related to beneficial conversion feature and accretion of a discount on Series C Preferred Stock		(2,115,317)
Deemed dividend related to Series A and B warrants down round provision	(9,648)
Deemed dividend related to Series D and E warrants down round provision	(234,912)
Deemed dividend related to extinguishment of Series D and E Preferred Stock	(2,626,873)
Deemed dividend related to conversion of Series D Preferred Stock	(212,230)
Deemed dividend related to conversion of Series E Preferred Stock	(386,978)
Net loss attributable to common stockholders	$ (11,137,367)	$ (5,170,167)
Earnings per common share (basic and diluted):
Loss from continuing operations	$ (4.91)	$ (3.36)
Loss from discontinued operations	(0.25)	(4.55)
Net loss per common share	$ (5.16)	$ (7.91)
Weighted average number of shares outstanding (Basic and Diluted)	2,169,861	645,947

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (7,737,790)	$ (3,022,690)
Adjustments to reconcile net loss to net cash (used in) provided from operating activities:
Depreciation and amortization	385,986	2,998,766
Interest accretion on landfill liabilities		56,401
Amortization of capitalized loan fees & debt discount	339,555	150,684
Unrealized (gain)/loss on fair value and derivative liabilities	1,926,013	554,112
Unrealized gain from change in fair value of contingent consideration	(27,290)
Bad debt expense	757,320	178,488
Deferred tax expense		101,613
Stock and Options issued to employees and consultants for compensation	179,358	27,375
Gain on extinguishment of debt		(2,654,821)
Loss (Gain) on disposal of equipment		(841)
Changes in working capital items net of acquisitions:
Accounts receivable, net of allowance	(1,201,863)	(924,962)
Prepaid expenses and other current assets	(243,619)	(324,244)
Contract deposits	36,076
Other deposits	9,662
Accounts payable and accrued expenses	3,418,456	(1,383,897)
Deferred compensation		(769,709)
Deferred revenue	386,111	1,050,524
Deferred Rent	(364)
Net cash used in operating activities	(1,772,389)	(3,963,201)
Cash flows from investing activities:
Investment in CFS Group of Companies		(3,933,276)
Landfill additions	(909,538)	(12,333)
Acquisition of property, plant and equipment	(995,620)	(1,403,896)
Purchases of short-term investments		13,447
Net cash used in investing activities	(1,905,158)	(5,336,058)
Cash flows from financing activities:
(Repayments) borrowings on notes due related parties		(253,000)
Proceeds from loans	3,325,000	569,212
Proceeds from issuance of common stock, net of fees		10,764,931
Proceeds from issuance of Series F Preferred Stock and Series A Warrants net of placement fees of $248,000	2,002,000
Proceeds from warrant exercise	4,750
Dividend distribution to non-controlling shareholders	(36,927)
Principal payments on capital lease	(294,657)	(67,291)
Principal payments on notes payable	(762,478)	(1,259,503)
Net cash provided from financing activities	4,237,688	9,754,349
Net change in cash	560,141	455,090
Beginning cash	997,216	823,272
Ending cash	1,557,357	1,278,362
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	2,559,789	1,497,429
Supplemental Non-Cash Investing and Financing Information:
Note payable incurred for acquisition	3,692,000	34,100,000
Common stock issued for consideration in an acquisition	545,700	1,390,000
Retirement of Preferred Stock C and related top off provision through the issuance of Common Stock C (and related derivative liability)		2,644,951
Property, plant and equipment additions financed with notes payable and capital leases	2,236,734	195,646
Deemed dividend related to beneficial conversion feature of Series C Preferred Stock		2,115,317
Deemed dividend related to Series A and B warrants down round provision and reclass to derivative liability	1,242,735
Deemed dividend related to Series D and E warrants down round provision and reclass to derivative liability	3,722,357
Deemed dividend related to extinguishment of Series D and E Preferred Stock	2,626,873
Deemed dividend related to conversion of Series D Preferred Stock	737,820
Deemed dividend related to conversion of Series E Preferred Stock	$ 1,423,416

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,013,180	$ 400,223
Accounts receivable, net of allowance	731,085	861,031
Prepaid expenses	969,963	334,603
Other current assets	6,450	6,450
Current assets held for sale	9,513,600	8,714,497
Total current assets	12,234,278	10,316,804
Property and equipment, at cost net of accumulated depreciation	1,940,263	333,499
Other assets:
Contract deposits		536,076
Other deposits	152,544	162,206
Goodwill	5,279,207	5,279,207
Capitalized software	97,516	108,767
Patents	3,107,607	3,141,796
Customer list, net of accumulated amortization	2,447,250	2,718,300
Website, net of accumulated amortization	25,582	27,117
Total other assets	11,109,706	11,973,469
Total noncurrent assets held for sale	87,042,249	80,932,386
Total assets	112,326,496	103,556,158
Current liabilities:
Accounts payable	2,004,208	1,777,355
Accrued expenses	1,926,676	820,458
Notes payable, related parties	6,891	6,891
Derivative and other fair value liabilities	11,469,171	2,307,363
Current portion - capital leases payable	21,455	25,999
Current portion - long term debt	4,820,629	8,502,387
Current liabilities held for sale	17,423,578	84,227,518
Total current liabilities	37,672,608	97,667,971
Long-term liabilities:
Contingent consideration liability	1,929,936	1,957,226
Deferred tax liability	14,337	14,337
Deferred rent	53,055	53,418
Lease payable	1,288,709
Long term debt, net of current	8,364,660	1,977,707
Noncurrent liabilities held for sale	90,704,395	17,307,998
Total long-term liabilities	102,355,092	21,310,686
Total liabilities	140,027,700	118,978,657
Shareholders' deficit:
Common stock, par value $.025, 75,000,000 shares authorized, 2,148,080 and 1,832,372 shares issued and 2,141,393 and 1,830,969 shares outstanding, respectively	33,724	45,770
Common stock to be issued	4,935	90,018
Treasury stock, at cost, 11,500 shares	(28,031)	(28,031)
Additional paid in capital	59,699,039	66,286,763
Accumulated deficit	(92,728,320)	(85,061,593)
Total shareholders' deficit	(31,749,142)	(18,135,382)
Noncontrolling Interest	1,351,415	1,459,407
Total equity	(30,397,727)	(16,675,975)
Total liabilities and shareholders' deficit	112,326,496	103,556,158
Preferred Series A stock
Shareholders' deficit:
Preferred stock
Preferred Series B stock
Shareholders' deficit:
Preferred stock
Preferred Series C stock
Shareholders' deficit:
Preferred stock
Preferred Series D stock
Shareholders' deficit:
Preferred stock	1,269,511	531,691
Preferred Series E stock
Long-term liabilities:
Preferred Series stock, cumulative	2,696,523	1,253,476
Preferred Series F stock
Long-term liabilities:
Preferred Series stock, cumulative