Amincor, Inc.

CIK:0001167905|SEC Filings

4. DISCONTINUED OPERATIONS	6 Months Ended
Jun. 30, 2014
DISCONTINUED OPERATIONS:
Discontinued Operations	The Company discontinued the operations of EQS when it was sold on April 1, 2013 and the loss from discontinued operations in the accompanying consolidated condensed financial statements for the six months ended June 30, 2013 primarily relates to EQS. Liabilities related to EQS and previously discontinued operations are presented separately on the consolidated condensed balance sheets as of June 30, 2014 and December 31, 2013. Changes in net cash from discontinued operations are presented in the accompanying consolidated condensed statements of cash flows for the six months ended June 30, 2014 and 2013. All prior period information has been reclassified to conform to the current period presentation. The following amounts have been segregated from continuing operations and reported as discontinued operations: For The Three Months Ended June 30, For The Six Months Ended June 30, ----------------------------------- --------------------------------- 2014 2013 2014 2013 -------- -------- -------- -------- Results From Discontinued Operations: Net revenues from discontinued operations $ -- $ (1,771) $ -- $231,887 ======== ======== ======== ======== Income (loss) from discontinued operations $ (4,444) $ 99,489 $ (1,722) $(81,787) ======== ======== ======== ======== Assets held for sale (which is recorded separately on the consolidated condensed balance sheets) consists of two properties related to the Company's discontinued operations, as follows: Land and building - California $1,786,433 Land - New York 300,000 ---------- $2,086,433 ========== The following is a summary of the liabilities of the discontinued operations: June 30, December 31, 2014 2013 ---------- ---------- Accounts payable $3,937,414 $3,945,632 Accrued expenses and other current liabilities 1,056,033 1,056,033 ---------- ---------- Total liabilities $4,993,447 $5,001,665 ========== ========== ~

4. DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2014


The Company discontinued the operations of EQS when it was sold on April 1, 2013
and the loss  from  discontinued  operations  in the  accompanying  consolidated
condensed financial  statements for the six months ended June 30, 2013 primarily
relates  to  EQS.  Liabilities  related  to  EQS  and  previously   discontinued
operations are presented separately on the consolidated condensed balance sheets
as of June 30, 2014 and December 31, 2013. Changes in net cash from discontinued
operations are presented in the accompanying  consolidated  condensed statements
of cash flows for the six months ended June 30, 2014 and 2013.  All prior period
information has been reclassified to conform to the current period presentation.

The  following  amounts have been  segregated  from  continuing  operations  and
reported as discontinued operations:

                                                For The Three Months Ended June 30,    For The Six Months Ended June 30,
                                                -----------------------------------    ---------------------------------
                                                     2014               2013               2014               2013
                                                   --------           --------           --------           --------
Results From Discontinued Operations:
  Net revenues from discontinued operations        $     --           $ (1,771)          $     --           $231,887
                                                   ========           ========           ========           ========
  Income (loss) from discontinued operations       $ (4,444)          $ 99,489           $ (1,722)          $(81,787)
                                                   ========           ========           ========           ========


Assets held for sale (which is recorded separately on the consolidated condensed
balance sheets) consists of two properties related to the Company's discontinued
operations, as follows:

Land and building - California                                      $1,786,433
Land - New York                                                        300,000
                                                                    ----------
                                                                    $2,086,433
                                                                    ==========

 The following is a summary of the liabilities of the discontinued operations:

                                                   June 30,         December 31,
                                                     2014              2013
                                                  ----------        ----------

Accounts payable                                  $3,937,414        $3,945,632
Accrued expenses and other current liabilities     1,056,033         1,056,033
                                                  ----------        ----------
Total liabilities                                 $4,993,447        $5,001,665
                                                  ==========        ==========

Consolidated Statements of Cash Flows(Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss from continuing operations for the period	$ (4,883,823)	$ (4,309,127)
Adjustments to reconcile net loss to net cash from continuing operations (used in) provided by operating activities:
Depreciation and amortization of property, plant and equipment	861,057	925,980
Stock based compensation of Employees	310,577	278,371
Loss on disposal of equipment	168,232
Provision for doubtful accounts	15,917	3,402
Changes in assets and liabilities:
Accounts receivables	2,309,736	(251,792)
Inventories	(56,036)	51,596
Costs and estimated earnings in excess of billings on uncompleted contracts;	(33,599)	12,296
Prepaid expenses and other current assets.	(460,838)	491,016
Other assets	8,185	(1,488)
Accounts payables.	429,111	254,020
Accrued expenses and other current liabilities,	(115,650)	1,454,304
Billings in excess of costs and estimated earnings on uncompleted contracts;	(170,957)	(81,107)
Deferred revenue	(86,113)	(128,715)
Other long-term liabilities.	(6,104)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES - CONTINUING OPERATIONS	(1,710,305)	(1,301,244)
CASH FLOWS FROM INVESTING ACTIVITIES - CONTINUING OPERATIONS
Purchases of property and equipment	(175,803)	(163,717)
NET CASH USED IN INVESTING ACTIVITIES - CONTINUING OPERATIONS	(175,803)	(163,717)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds /loansfrom related parties	2,005,939	2,763,011
Proceeds from issuance of common stock	130,000
Principal payments of capital lease obligations	(226,572)	(197,034)
Repayments of notes payable	(61,616)	(1,147,844)
Assumed liabilities	(111,876)	(94,771)
NET CASH PROVIDED BY FINANCING ACTIVITIES - CONTINUING OPERATIONS	1,735,875	1,323,362
NET CASH USED IN CONTINUING OPERATIONS	(150,233)	(141,599)
Net cash provided by (used in) operating activities - discontinued operations	(9,940)	222,460
Net cash provided by investing activities - discontinued operations		16,575
Net cash used in financing activities - discontinued operations		(130,625)
NET CASH PROVIDED BY (USED IN) DISCONTINUED OPERATIONS	(9,940)	108,410
Decrease in cash	(160,173)	(33,189)
Cash, beginning of period	295,793	357,029
Cash, end of period	135,620	323,840
Cash paid during the period for:
Interest	1,112,050	621,744
Non-cash investing and financing activities:
Financing of insurance by notes payable	940,713	934,220
Conversion of accounts payable to term notes payable		155,965
Acquisition of equipment by notes payable		$ 40,501

Consolidated Condensed Balance Sheets (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash	$ 135,620	$ 295,793
Accounts receivable, net of allowance of $519,138 and $589,201 at June 30, 2014 and December 31, respectively	3,123,581	5,449,234
Inventories, net	894,200	838,164
Costs and estimated earnings in excess of billings on uncompleted contracts	73,648	40,049
Prepaid expenses, deferred charges and other current assets	918,903	458,065
Total current assets	5,145,952	7,081,305
Property, plant and equipment, net
Property, plant and equipment, net	11,407,371	12,260,857
Property held for investment	6,000,000	6,000,000
Total property, plant and equipment, net	17,407,371	18,260,857
Other assets:
Loan receivable, net of allowance of $260,000 at June 30, 2014 and December 31, 2013	240,000	240,000
Goodwill	22,241	22,241
Other intangible assets	851,000	851,000
Other assets	45,463	53,648
Assets available for sale	2,086,433	2,086,433
Total other assets	3,245,137	3,253,322
Total assets	25,798,460	28,595,484
Current liabilities:
Accounts payable	12,278,311	11,849,200
Accrued Liabilities	1,297,419	1,409,295
Accrued expenses and other current liabilities	5,691,498	5,807,148
Loans payable to related party	10,672,386	8,493,689
Notes payable - current portion	8,117,248	7,957,909
Capital lease obligations - current portion	63,091	215,859
Billings in excess of costs and estimated earnings on uncompleted contracts	504,829	675,786
Deferred revenue	15,562	101,675
Current liabilities - discontinued operations	4,993,447	5,001,665
Total current liabilities	43,633,791	41,512,226
Long-term liabilities:
Capital lease obligations - net of current portion	97,086	170,890
Due to related party	636,973	809,731
Notes payable - net of current portion	0	220,955
Other long-term liabilities	0	6,104
Total long-term liabilities	734,059	1,207,680
Total liabilities	44,367,850	42,719,906
Commitments and contingencies
Amincor shareholders' (deficit) equity:
Convertible preferred stock, $0.001 par value per share; 3,000,000 authorized, 1,752,823 issued and outstanding	1,753	1,753
Common stock - class A; $0.001 par value; 22,000,000 authorized, 8,996,355 and 7,919,023 issued and oustanding as of June 30, 2014 and december 31, 2013 respectively	8,996	7,913
Common stock - class B; $0.001 par value; 40,000,000 authorized, 21,286,344 issued and outstanding.	21,286	21,286
Additional paid-in capital	87,640,570	87,201,076
Accumulated deficit	(105,727,389)	(100,852,132)
Total Amincor shareholders' (deficit) equity	(18,054,784)	(13,620,104)
Noncontrolling interest deficit:	(514,606)	(504,318)
Total (deficit) equity	(18,569,390)	(14,124,422)
Total liabilities and (deficit) equity	$ 25,798,460	$ 28,595,484