I/OMAGIC CORP

CIK:0001083663|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net sales	$ 640,740	$ 1,311,459	$ 2,418,533	$ 4,934,586
Cost of sales	603,736	841,019	1,904,662	3,454,724
Gross profit	37,004	470,440	513,871	1,479,862
Operating expenses
Selling, marketing and advertising	84,137	94,124	271,069	319,542
General and administrative	396,871	462,437	1,337,471	1,388,480
Depreciation and amortization	11,260	12,877	34,876	39,010
Total operating expenses	492,268	569,438	1,643,416	1,747,032
Loss from operations	(455,264)	(98,998)	(1,129,545)	(267,170)
Other income (expense)
Other income (expense)	9,998	(4)	10,107	(574)
Total other income (expense)	9,998	(4)	10,107	(574)
Loss before income taxes	(445,266)	(99,002)	(1,119,438)	(267,744)
Provision for income taxes			800	800
Net loss	$ (445,266)	$ (99,002)	$ (1,120,238)	$ (268,544)
Basic and diluted net loss per share (in Dollars per share)	$ (0.10)	$ (0.02)	$ (0.25)	$ (0.06)
Basic and diluted weighted-average shares outstanding (in Shares)	4,540,292	4,540,292	4,540,292	4,540,292

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash Flows From Operating Activities:
Net loss	$ (1,120,238)	$ (268,544)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	34,876	39,010
Allowance for product returns	(15,987)	(220,044)
Reserve for sales incentives	(16,196)	3,118
Accrued point-of-sale rebates	(133,998)	79,163
Accrued market development funds, cooperative advertising costs and cross-dock fees	(43,322)	(48,520)
Allowance for obsolete inventory	(56,000)	18,353
Changes in assets and liabilities (net of dispositions and acquisitions):
Accounts receivable	297,229	677,472
Inventories	554,609	385,519
Prepaid and other current assets	21,982	141,927
Other non-current assets		(1,499)
Accounts payable and other accrued expenses	72,977	(347,431)
Accounts payable - related party	(45,000)	(179,700)
Capital lease obligations		(13,704)
Deposit - sublease	(9,703)
Accrued mail-in rebates	1,200	(3,485)
Net cash provided by (used in) operating activity	(457,571)	261,635
Cash flows from investing activities
Equipment additions	(1,575)
Net cash used in investing activities	(1,575)
Net increase (decrease) in cash	(459,146)	261,635
Cash at beginning of period	633,521	445,675
Cash at end of period	174,375	707,310
Income Taxes Paid	$ 800	$ 800

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets
Cash	$ 174,375	$ 633,521
Accounts receivable, net	34,826	122,552
Inventories, net	575,107	1,073,716
Prepaid and other current assets	45,087	70,587
Total current assets	829,395	1,900,376
Property and equipment, net	55,304	88,605
Other non-current assets	32,050	28,532
Total assets	916,749	2,017,513
Current liabilities
Accounts payable and other accrued expenses	495,545	422,568
Accounts payable – related party	60,000	60,000
Accrued mail-in rebates	2,200	1,000
Total current liabilities	557,745	483,568
Long-term liabilities
Accounts payable – related party	4,088,553	4,133,553
Sub-lease deposit		9,703
Total long-term liabilities	4,088,553	4,143,256
Total liabilities	4,646,298	4,626,824
Stockholders’ deficit
Common stock, $0.001 par value, 100,000,000 shares authorized, 4,540,292 and 4,540,292 shares issued and outstanding, respectively	4,541	4,541
Additional paid-in capital	31,858,651	31,858,651
Accumulated deficit	(35,592,741)	(34,472,503)
Total stockholders’ deficit	(3,729,549)	(2,609,311)
Total liabilities and stockholders’ deficit	916,749	2,017,513
Preferred Stock [Member]
Stockholders’ deficit
Preferred Stock
Series A Preferred Stock [Member]
Stockholders’ deficit
Preferred Stock	0	0
Series B Preferred Stock [Member]
Stockholders’ deficit
Preferred Stock	$ 0	$ 0