INTERNATIONAL COMMERCIAL TELEVISION INC

CIK:0001076522|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
NET SALES	$ 5,483,909	$ 7,559,754	$ 21,466,771	$ 23,156,949
COST OF SALES	1,956,153	3,049,989	6,580,809	7,995,170
GROSS PROFIT	3,527,756	4,509,765	14,885,962	15,161,779
OPERATING EXPENSES:
General and administrative	1,680,338	2,488,376	5,945,801	7,643,917
Selling and marketing	2,916,372	4,102,346	10,263,180	11,346,321
Total operating expenses	4,596,710	6,590,722	16,208,981	18,990,238
OPERATING LOSS	(1,068,954)	(2,080,957)	(1,323,019)	(3,828,459)
OTHER INCOME/(EXPENSE), NET
Interest expense	(189,413)	(164,377)	(513,290)	(215,147)
Miscellaneous (expense)/income, net, including gain on settlement of contingent consideration in 2017	(4,326)	1,970,753	(26,883)	2,030,727
LOSS BEFORE PROVISION FOR INCOME TAX	(1,262,693)	(274,581)	(1,863,192)	(2,012,879)
PROVISION FOR INCOME TAXES	30,944	112,277	148,944	182,277
NET LOSS	(1,293,637)	(386,858)	(2,012,136)	(2,195,156)
OTHER COMPREHENSIVE (LOSS)/INCOME:
Foreign currency translation adjustment	(21,036)	112,223	(122,327)	208,924
COMPREHENSIVE LOSS	$ (1,314,673)	$ (274,635)	$ (2,134,463)	$ (1,986,232)
NET LOSS PER SHARE
BASIC AND DILUTED	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
BASIC AND DILUTED	53,132,004	52,321,826	52,633,008	49,518,478

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,012,136)	$ (2,195,156)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	702,236	820,792
Bad debt expense	923,559	903,710
Share based compensation	286,310	223,345
Issuance of stock for compensation		336,000
Change in fair value of contingent consideration		(48,035)
Loss on disposal of property and equipment		6,197
Non cash interest expense	76,475	105,459
Gain on settlement of contingent consideration		(1,969,245)
Change in assets and liabilities
Accounts receivable	530,634	(4,113,466)
Inventories	(196,555)	922,503
Prepaid expenses and other current assets	(493,843)	114,171
Accounts payable and accrued liabilities	(69,192)	3,025,709
Deferred revenue	(94,249)	(178,553)
Net cash used in operating activities	(346,761)	(2,046,569)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(56,592)	(171,196)
Cash paid for acquisition of PhotoMedex, Inc.		(5,000,000)
Net cash used in investing activities	(56,592)	(5,171,196)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of DermaWand® asset purchase agreement	(225,000)	(150,000)
Proceeds from issuance of common stock, net of offering costs		6,982,930
Proceeds from exercise of options		55,559
Proceeds from note payable from related party	100,000
Repayments of long-term debt to related party	(507,809)	(87,441)
Payments of deferred consideration for asset acquisition	(160,414)	(14,583)
Proceeds from issuance of preferred stock	403,200
Proceeds from long-term debt to related party		2,000,000
Settlement payment made for PhotoMedex Acquisition		(2,000,000)
Net cash (used in) provided by financing activities	(255,031)	6,786,465
Effect of exchange rates on cash and cash equivalents	(17,279)	1,683
NET DECREASE IN CASH AND CASH EQUIVALENTS	(675,663)	(429,617)
CASH AND CASH EQUIVALENTS, beginning of the period	1,258,360	1,390,641
CASH AND CASH EQUIVALENTS, end of the period	582,697	961,024
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Taxes paid
Interest paid	394,797
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
Cashless exercise of options		43
Conversion of accounts payable to note payable	298,716
PhotoMedex [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
Fair value of assets acquired		9,198,043
Fair value of deferred consideration		(4,198,043)
Cash paid for acquisition		5,000,000
Contingent consideration owed to PhotoMedex		3,579,760
Other receivables amount forgiven		(837,708)
Payables extinguished		1,017,193
Settlement payment made		(2,000,000)
Assignment of deposit amount		210,000
Gain on settlement of contingent consideration		1,969,245
Ermis Labs [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
Fair value of assets acquired		1,981,822
Fair value of deferred consideration		(1,131,822)
Cash paid for acquisition
Issuance of common stock		(850,000)
Amazon [Member]
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from note payable from related party	145,000
Repayments of note payable to Amazon	$ (10,008)

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 582,697	$ 1,258,360
Accounts receivable, net of allowances for returns and doubtful accounts of $869,162 and $913,303 respectively	2,208,095	3,576,376
Inventories	5,740,357	5,631,857
Prepaid expenses and other current assets	649,146	167,914
Total current assets	9,180,295	10,634,507
Property and equipment, net	766,566	887,093
Intangible assets, net	1,723,512	2,248,657
Total assets	11,670,373	13,770,257
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	5,633,873	5,911,778
Long-term debt to related party	916,145	722,908
Notes payable	426,130
Deferred revenue	345,664	403,844
Deferred consideration due to related party	86,392	241,379
Other liabilities- net of discount	293,620	369,563
Total current liabilities	7,701,824	7,649,472
Long-term debt to related party, net of current portion	373,095	1,074,141
Notes payable, net of current portion	107,580
Deferred revenue - long term	158,726	194,534
Deferred consideration - due to related party, net of current portion	1,035,788	970,688
Other liabilities - long term, net of discount	228,040	371,149
Total long term liabilities	1,903,229	2,610,512
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $0.001 par value, 20,000,000 shares authorized, of which 210,000 shares designated as Series A, 210,000 and 0 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively (Liquidation Preference of $416,632 as of September 30, 2018)	210
Common stock, $0.001 par value, 100,000,000 shares authorized, 53,140,700 and 52,340,700 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	42,930	42,130
Additional paid-in capital	20,886,637	20,198,137
Accumulated other comprehensive income	52,548	174,875
Accumulated deficit	(18,917,005)	(16,904,869)
Total shareholders' equity	2,065,320	3,510,273
Total liabilities and shareholders' equity	$ 11,670,373	$ 13,770,257