M LINE HOLDINGS INC

CIK:0001072248|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Net sales	$ 1,504,304	$ 3,306,380	$ 2,461,784	$ 6,033,574
Cost of sales	1,481,115	2,394,345	2,430,381	4,112,425
Gross profit	23,189	912,035	31,403	1,921,149
Operating expenses:
Selling, general and administrative	499,607	372,690	1,329,313	1,151,051
Operating income (loss)	(476,418)	539,345	(1,297,910)	770,098
Other income (expense):
Interest expense	(353,935)	(220,350)	(418,716)	(345,342)
Loss on debt extinguishment			(165,526)
Derivative loss	(165,437)	(48,130)	(651,172)	(48,130)
Total other income (expenses)	(519,372)	(268,480)	(1,235,414)	(393,472)
Income (loss) before income tax	$ (995,790)	270,865	$ (2,533,324)	376,626
Income tax provision		(1,694)		(1,694)
Net income (loss)	$ (995,790)	269,171	$ (2,533,324)	374,932
Deemed dividend - Series B Preferred Stock	(225,500)		(225,500)
Net income (loss) available to common stockholders	$ (1,221,290)	$ 269,171	$ (2,758,824)	$ 374,932
Net income (loss) per share:
Basic and diluted (in dollars per share)	$ (0.00)	$ (0.01)	$ 0.00	$ (0.02)
Weighted average number of common shares - basic and diluted (in shares)	942,437,603	83,972,797	737,919,242	78,632,746

CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED) - USD ($)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ (2,533,324)	$ 374,932
Reconciliation of net loss to net cash provided by operations:
Loss on disposition of assets	46,250
Bad debt expense	39,211
Depreciation	54,798	$ 85,253
Amortization of debt discount and deferred financing fees	335,836	155,027
Loss on debt extinguishment	$ 165,526
Issuance of shares for services		217,916
Change in derivative liabilities	$ 651,172	48,130
Changes in operating assets and liabilities:
Accounts receivable	(47,036)	(356,402)
Inventory	(322,180)	(57,776)
Prepaid expenses and other assets	$ 17,637	(2,477)
Due from related party		(28,652)
Accounts payable, accrued expenses and other	$ 1,253,527	(393,838)
Net cash provided by (used in) operating activities	(338,583)	$ 42,113
Cash flows from investing activities:
Proceeds from disposals of property and equipment	35,000
Net cash provided by investing activities	35,000
Cash flows from financing activities:
Net borrowings (repayments) on line of credit	50,000	$ (53,493)
Proceeds from notes payable	110,499	202,195
Bank overdraft	157,619	(48,092)
Payments to notes payable	$ (1,000)	(206,871)
Payments on capital leases		(31,441)
Net cash provided by (used in) financing activities	$ 317,118	(137,702)
Net increase (decrease) in cash and cash equivalents	13,535	(95,589)
Cash and cash equivalents at beginning of period	46,925	182,305
Cash and cash equivalents at end of period	$ 60,460	86,716
Supplemental disclosure of cash flow information:
Cash paid for interest		$ 158,815
Cash paid for income taxes
Supplemental disclosure of non-cash investing and financing activities:
Debt discount resulting from derivative liability	$ 602,576	$ 63,000
Return of property and equipment	8,250
Acquisition of property and equipment through line of credit	224,250
Interest added to principal	124,031
Shares issued for conversion of debt	347,773
Deemed dividend - Series B Preferred Stock	$ (225,500)

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 60,460	$ 46,925
Accounts receivable, net	230,169	222,344
Inventory, net	1,752,862	1,430,682
Total current assets	2,043,491	1,699,951
Property and equipment, net	258,178	402,476
Deposits and other	123,285	140,922
Total assets	2,424,954	2,243,349
Current liabilities:
Bank overdraft	307,318	149,699
Accounts payable	1,721,832	1,350,157
Accounts payable - related party	35,954	35,954
Accrued expenses and other	3,128,087	2,594,616
Litigation payable	287,500	287,500
Derivative liability	965,003	634,769
Line of credit	2,694,703	2,330,453
Notes payable - current, net of debt discount of $310,291 and $317,977	814,048	1,018,755
Current portion of capital lease obligations	53,901	53,901
Total current liabilities	10,008,346	8,455,804
Notes payable - net of current portion	124,023	124,023
Capital lease obligation, net of current portion	46,426	46,426
Total liabilities	$ 10,178,795	$ 8,626,253
Commitments and contingencies
Stockholders' deficit:
Common stock: $0.001 par, 1,000,000,000 shares authorized, 942,437,603 and 243,178,484 shares issued and outstanding at December 31, 2014 and June 30, 2014, respectively	$ 942,437	$ 243,178
Additional paid in capital	13,300,109	12,846,981
Accumulated deficit	(22,006,587)	(19,473,263)
Total Stockholders' deficit	(7,753,841)	(6,382,904)
Total liabilities and Stockholders' deficit	2,424,954	2,243,349
Series A Preferred Stock [Member]
Stockholders' deficit:
Preferential stock	200	$ 200
Series B Preferred Stock [Member]
Stockholders' deficit:
Preferential stock	$ 10,000