GROWLIFE, INC.

CIK:0001161582|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
NET REVENUE	$ 147,396		$ 226,655
Cost of goods sold	(43,738)		(84,731)
Gross Profit	103,658		141,924
Operating expenses	(678,744)	(362,753)	(1,327,040)	(620,298)
Loss from operations	(575,086)	(362,753)	(1,185,116)	(620,298)
OTHER INCOME (EXPENSE):
Change in fair value of derivative	(527,120)	(312,018)	(286,630)	(390,069)
Interest expense, net	(1,787,643)	(570,612)	(2,444,789)	(371,110)
Impairment of intangible assets	(552,515)		(552,515)
Gain (loss) on forgiveness/settlement of debt	65,366	17,897	75,000	(170,285)
Total other expense, net	(2,801,912)	(864,733)	(3,208,934)	(931,464)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(3,376,998)	(1,227,486)	(4,394,050)	(1,551,762)
Income taxes
NET LOSS FROM CONTINUING OPERATIONS	(3,376,998)	(1,227,486)	(4,394,050)	(1,551,762)
INCOME (LOSS) ON DISCONTINUED OPERATIONS
Income (Loss) from discontinued operations, net of income tax		(456,345)		(741,145)
NET INCOME (LOSS) ON DISCONTINUED OPERATIONS		(456,345)		(741,145)
NET LOSS	$ (3,376,998)	$ (1,683,831)	$ (4,394,050)	$ (2,292,907)
BASIC AND DILUTED INCOME (LOSS) PER SHARE
Net Loss on continuing operations	(0.10)	(1.19)	(0.18)	(1.64)
Net Income (Loss) on discontinued operation		$ (0.44)		$ (0.78)
Net Loss	$ (0.10)	$ (1.63)	$ (0.18)	$ (2.42)
Weighted average shares of common stock outstanding- basic and diluted	32,315,356	1,035,116	24,979,492	948,844

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,394,050)	$ (2,292,907)
Loss from discontinued operations		741,145
Net loss from continuing operations	(4,394,050)	(1,551,762)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	19,664
Amortization expense	110,502
Impairment of intangible assets	552,515
Non-cash interest expense	2,183,634	631,164
Shares issued for services	177,556
Change in fair value of derivative	286,630	96,236
Penalties incurred on debt	190,184
(Gain) on forgiveness of debt	(75,000)	(165,553)
Changes in operating assets and liabilities:
Accounts receivable	(1,963)
Inventory	(7,500)
Advances	(2,560)
Accounts payable	110,645	16,804
Accrued expenses	103,926	5,000
Deferred revenue	11,788
Change in right of use asset and liability, net	376
Net cash used in operating activities	(733,653)	(968,111)
Net cash (used) by operating activities by discontinued operations		(80,506)
CASH USED BY OPERATING ACTIVITIES	(733,653)	(1,048,617)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets	(4,085)
Net cash (used) by investing activities by discontinued operations		(16,590)
CASH USED IN INVESTING ACTIVITIES	(4,085)	(16,590)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debt, net of issuance costs	609,725	1,004,375
Proceeds from notes payable	251,948
Repayment of notes payable	(58,413)
Payments on purchase of assets	(118,002)
Payments on asset purchase	(36,330)
Net cash (used) by financing activities by discontinued operations		(25,425)
CASH PROVIDED BY FINANCING ACTIVITIES	648,928	978,950
NET CHANGE IN CASH AND CASH EQUIVALENTS	(88,810)	(86,257)
CASH AND CASH EQUIVALENTS, beginning of period	94,208	363,963
CASH AND CASH EQUIVALENTS, end of period	5,398	277,706
Non Cash Supplemental Information:
Value of shares issued for convertible note conversion	230,974	2,502,596
Value of shares issued for liability settlement		1,397,100
Value of shares issued for loan commitment fees	81,890
Value of shares issued for purchase of assets	340,000
Initial derivative discount	245,153
Settlement of derivative liability	$ 322,769

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 5,398	$ 94,208
Accounts receivable	1,963
Advances	12,144	160,000
Inventory, net	21,089
Total current assets	40,594	254,208
Fixed assets, net of accumulated depreciation	98,322
Intangible assets, net
Operating lease right of use asset	61,700
TOTAL ASSETS	200,616	254,208
CURRENT LIABILITIES:
Accounts payable	811,264	850,618
Accrued expenses	313,693	209,768
Deferred revenue	11,788
Due on asset purchase	102,216
Notes payable- PPP/EIDL loans	803,659	716,252
Notes payable	208,235	1,877,896
Convertible notes payable, in default net	5,335,499	2,225,888
Convertible notes payable, net	295,873	97,628
Derivative liability	3,614,677	2,686,892
Operating lease right of use liability	62,076
Total current liabilities	11,558,980	8,664,942
STOCKHOLDERS' DEFICIT
Series A Preferred stock - $0.0001 par value, 10,000,000 shares authorized, 600 shares and 1,800 shares issued and outstanding at 6/30/2023 and 12/31/2022, respectively
Common stock - $0.0001 par value, 740,000,000 shares authorized, 35,561,190 and 7,083,254 shares issued and outstanding at 6/30/2023 and 12/31/2022 , respectively	3,556	708
Additional paid in capital	157,829,045	156,385,473
Accumulated deficit	(169,190,965)	(164,796,915)
Total stockholders' deficit	(11,358,364)	(8,410,734)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 200,616	$ 254,208