DigitalTown, Inc.

CIK:0001065598|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Aug. 31, 2018	Aug. 31, 2019	Aug. 31, 2018
Income Statement [Abstract]
Revenues		$ 20,047	$ 50,000	$ 41,972
Cost of revenues		114,937	306	521,989
Gross profit (loss)		(94,890)	49,694	(480,017)
Operating expenses:
Selling, general and administrative expenses	263,007	1,511,914	605,381	2,687,358
Loss from operations	(263,007)	(1,606,804)	(555,687)	(3,167,375)
Other income (expense):
Interest expense	(127,235)	(80,405)	(373,914)	(673,819)
Loss on disposal of asset			(19,208)
Loss on debt settlement		(48,037)		(48,037)
Digital currency losses		(925,817)		(925,817)
Total other income (expense)	(127,235)	(1,054,259)	(393,122)	(1,647,673)
Loss before income taxes	(390,242)	(2,661,063)	(948,809)	(4,815,048)
Income tax provision
Net loss from continuing operations, net of income taxes	(390,242)	(2,661,063)	(948,809)	(4,815,048)
Loss from discontinued operations		(71,453)		(173,610)
Net loss	$ (390,242)	$ (2,732,516)	$ (948,809)	$ (4,988,658)
Net loss per common share - basic and diluted	$ 0.00	$ (0.02)	$ (0.00)	$ (0.05)
Weighted average common shares outstanding - basic and diluted	1,266,642,830	126,564,143	778,308,162	106,720,550

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Aug. 31, 2019	May 31, 2019	Aug. 31, 2018	Aug. 31, 2019	Aug. 31, 2018	Feb. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss from discontinued operations			$ (71,453)		$ (173,610)
Net loss from continuing operations	(390,242)		(2,661,063)	(948,809)	(4,815,048)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Loss on debt settlement			48,037		48,037
Loss on cryptocurrency sale					925,817
Depreciation and amortization					3,885
Debt discount amortization				312,283	652,540
Loss on debt penalty				32,343
Imputed interest				2,773	14,625
Loss on disposal of fixed assets		$ 19,208		19,208
Stock based compensation				320,392	1,118,367
Changes in operating assets and liabilities:
Accounts receivable				17,858	6,108
Prepaid expenses					38,677
Accounts payable				62,049	204,764
Accounts payable - related parties				152,163	340,545
Accrued expenses				(49,842)	95,199
Net cash used in operating activities				(79,582)	(1,540,094)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from sale of digital currencies					718,181
Net cash provided by investing activities					718,181
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock					827,396
Borrowings on convertible notes				70,000	175,000
Payments on convertible debt					(206,037)
Net cash provided by financing activities				70,000	796,359
Foreign currency translation adjustment				(1,000)	(1,216)
Net change in cash and cash equivalents				(10,582)	(26,770)
Cash and cash equivalents, beginning of year		$ 15,271		15,271	58,712	$ 58,712
Cash and cash equivalents, end of year	$ 4,689		$ 31,942	4,689	31,942	$ 15,271
Non-Cash Transactions:
Issuance of common stock for stock payable				694,983	1,828,200
Stock issued for digital currencies					1,659,000
Stock issued for debt conversions				1,342,121	1,129,007
Beneficial conversion feature				70,000	143,325
Digital currency issued for AP settlement					15,080
Stock issued for debt discount					8,010
Stock retired for domain purchase					3,000
Stock issued for finder's fee					1,000
Conversion of debt to common stock
Stock payable for accounts payable				$ 427,434

Condensed Consolidated Balance Sheets - USD ($)	Aug. 31, 2019	Feb. 28, 2019
Current assets:
Cash	$ 4,689	$ 15,271
Accounts receivable, net	7,485	25,343
Total current assets	12,174	40,614
Property and equipment, net		19,208
Total assets	12,174	59,822
Current liabilities:
Accounts payable	186,001	551,387
Accounts payable - related parties	365,729	213,566
Deferred revenue	120,000	186,305
Domain marketing development obligation	168,174	168,174
Interest payable	57,487	46,235
Accrued expenses - related parties	542,066	542,066
Notes payable - related parties	171,342	1,025,200
Convertible notes payable - third parties, net	120,578	246,175
Liabilities held for sale		12,828
Total current liabilities	1,731,377	2,991,936
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 1,664,876,270 and 146,740,570 shares issued and outstanding at August 31, 2019 and February 28, 2019, respectively	16,648,763	1,467,406
Preferred stock, $0.01 par value, 20,000,000 shares authorized, 51 and 0 shares issued and outstanding at August 31, 2019 and February 28, 2019, respectively	1
Additional paid-in-capital	38,346,411	51,411,971
Stock payable	525,572	478,650
Accumulated other comprehensive income	(1,819)	(819)
Accumulated deficit	(57,238,131)	(56,289,322)
Total stockholders' equity (deficit)	(1,719,203)	(2,932,114)
Total liabilities and stockholders' equity (deficit)	$ 12,174	$ 59,822