GRANDPARENTS.COM, INC.

CIK:0001020475|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Commission revenue	$ 14,858	$ 160,000	$ 14,858	$ 260,000
Advertising and other revenue	117,352	28,055	241,121	122,625
Total revenue	132,210	188,055	255,979	382,625
Operating expenses:
Selling and marketing	902,822	86,313	1,036,838	215,482
Salaries	452,649	494,613	1,357,094	1,585,944
Rent	56,254	45,500	167,345	161,478
Accounting, legal and filing fees	543,289	166,498	965,226	524,073
Consulting	204,831	346,699	882,601	986,361
Equity-based compensation	34,056	791,675	778,499	2,548,587
Other general and administrative	209,957	200,584	627,885	578,190
Depreciation and amortization	85,014	99,500	256,415	311,587
Total operating expenses	2,488,872	2,231,382	6,071,903	6,911,702
Other income (expense):
Interest expense	(277,134)	(422,386)	(655,323)	(521,868)
Other income	0	72,427	0	72,427
Total other income (expense)	(277,134)	(349,959)	(655,323)	(449,441)
Net loss attributable to common and preferred shareholders	(2,633,796)	(2,393,286)	(6,471,247)	(6,978,518)
Dividends and amortization of discount on preferred stock	33,990	0	124,662	0
Net loss attributable to common shareholders	$ (2,667,786)	$ (2,393,286)	$ (6,595,909)	$ (6,978,518)
Net loss per share-basic and diluted	$ (0.02)	$ (0.02)	$ (0.05)	$ (0.05)
Weighted average common shares outstanding, basic and diluted (in shares)	143,681,625	132,675,929	136,100,699	132,199,959

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (6,471,247)	$ (6,978,518)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	256,415	311,587
Equity-based compensation	639,145	1,751,508
Stock issued for services	139,353	802,619
Payment in kind interest added to loan balance	294,113	66,235
Amortization of discount on loans and notes payable	129,443	330,296
Gain on settlement of accounts payable	0	72,427
Changes in operating assets and liabilities:
Accounts receivable	29,029	43,036
Prepaid expenses	177,114	817,309
Accounts payable	371,664	(222,523)
Accrued expenses	2,459	(18,162)
Deferred officer salary	0	(226,875)
Deferred revenues	3,084	(999,810)
Net cash used in operating activities	(4,429,428)	(4,250,871)
Cash flows from investing activities:
Capitalized website development costs	0	(52,080)
Net cash used in investing activities	0	(52,080)
Cash flows from financing activities:
Repayments of loans and short-term advances	0	(600,000)
Proceeds from private placement	1,050,000	700,000
Proceeds from loans and short-term advances, net	950,000	5,000,164
Proceeds from sale of preferred stock, net	0	1,673,577
Payments of dividends on preferred stock	(29,688)	0
Net cash provided by financing activities	1,970,312	6,773,741
Net (decrease) increase in cash	(2,459,116)	2,470,790
Cash, beginning of period	3,765,723	126,600
Cash, end of period	1,306,607	2,597,390
Supplemental cash flow information:
Equity discount on secured term loan	1,050,000	0
Common stock to be issued as dividends on preferred stock	87,500	0
Amortization of preferred stock discount	4,349	(21)
Fair value of warrants issued in exchange for services	0	836,119
Warrant issued in connection with beneficial conversion on convertible loans and notes	0	4,390,000
Warrant issued in connection with beneficial conversion on preferred stock	0	1,458,639
Settlement of liabilities through issuance of equity	0	5,541
Cashless exercise of warrants to common stock	0	200
Cash paid for interest	$ 133,176	$ 107,773

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 1,306,607	$ 3,765,723
Accounts receivable	67,845	96,874
Prepaid expenses	41,179	351,346
Total current assets	1,415,631	4,213,943
Property and equipment, net	9,472	16,384
Other Assets:
Security deposits	86,500	92,800
Intangibles, net	632,684	882,188
Total other assets	719,184	974,988
Total assets	2,144,287	5,205,315
Current liabilities:
Accounts payable	2,327,034	1,952,247
Accrued dividends	87,500	1,563
Accrued expenses	209,362	205,340
Deferred revenue	10,480	7,396
Notes payable	999,957	999,957
Total current liabilities	3,634,333	3,166,503
Convertible loan, net	0	3,319,020
Term loan, net	3,642,576	0
Total long-term liabilities	3,642,576	3,319,020
Total liabilities	7,276,909	6,485,523
Commitments and contingencies
Series C redeemable convertible preferred stock, 875,000 shares (liquidation preference $1,750,000) issued and outstanding at September 30, 2016 and December 31, 2015	221,261	216,912
Stockholders' deficit:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; 875,000 shares of Series C preferred stock designated
Common stock, $0.01 par value, 350,000,000 shares authorized; 202,268,582 shares issued and outstanding at September 30, 2016 and 132,268,582 at December 31, 2015	2,022,686	1,322,686
Additional paid-in capital	48,645,734	46,610,937
Accumulated deficit	(56,022,303)	(49,430,743)
Total stockholders' deficit	(5,353,883)	(1,497,120)
Total liabilities and stockholders' deficit	$ 2,144,287	$ 5,205,315