FONU2 Inc.

CIK:0001168325|SEC Filings

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
REVENUES	$ 18,611
COST OF SALES	4,271
GROSS (DEFICIT) MARGIN	14,340
OPERATING EXPENSES
Product development	34,124	$ 431,993
Depreciation	47,155
Salaries and wages	100,902	$ 26,800
Professional fees	604,756	982,594
General and administrative	891,285	85,210
Total Operating Expenses	1,678,222	1,526,597
OPERATING LOSS	(1,663,882)	$ (1,526,597)
OTHER INCOME (EXPENSE)
Loss on impairment	(770,562)
Gain on settlement of debt	13,524	$ 12,602
Loss on extinguishment of debt	(21,300)
Gain (loss) on derivative	(1,713,094)	$ 583,615
Make whole provision	(491,667)
Interest expense, net	(1,748,801)	$ (462,959)
Total Other Income (Expense)	(4,731,900)	133,258
NET LOSS FROM CONTINUING OPERATIONS	(6,395,782)	(1,393,339)
Net (loss) profit from discontinued operations	(36,567)	37,833
NET LOSS	$ (6,432,349)	$ (1,355,506)
BASIC AND DILUTED NET LOSS PER COMMON SHARE	$ (0.04)	$ (0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED	144,231,408	87,551,511

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (6,395,782)	$ (1,393,339)
Items to reconcile net loss to net cash used in operating activities:
Depreciation expense	47,155	$ 4,476
Accretion expense on land lease	267,597
Amortization of debt discount	1,350,724	$ 416,126
Loss (gain) on derivative liability	1,713,094	$ (583,615)
Make whole provision	491,667
Amortization of debt financing costs	$ 44,013
Gain due to forgiveness of debt		$ (5,719)
Stock based compensation	$ 173,924	$ 650,242
Loss on settlement of debt	21,300
Settlement of note payable	(13,524)
Original issue discount	3,000
Loss on impairment of assets	770,562
Changes in operating assets and liabilities
Decrease in prepaid and other assets	12,568	$ 185,381
Increase (decrease )in accounts payable	189,197	(7,480)
Increase in accrued expenses	243,122	35,960
Net Cash Used by Operating Activities	(1,081,383)	(697,968)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets	(20,571)	$ (4,919)
Cash Paid for site development	(136,770)
Cash Paid for intangible assets	(11,500)
Purchase of film related assets	(50,000)
Net Cash Used In Investing Activities	(218,841)	$ (4,919)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable	302,000	25,000
Proceeds from convertible notes payable	1,115,276	$ 416,500
Payment for deferred financing costs	(91,016)
Principal payments on notes payable	$ (28,137)
Cash paid for debt issuance costs		$ (53,000)
Common and preferred stock issued for cash		130,000
Common stock issued for stock option exercise		90,000
Proceeds from related party note payable		18,000
Net Cash Provided by Financing Activities	$ 1,298,123	626,500
CASH FLOWS FROM DISCONTINUED OPERATIONS
Cash (used in) provided by operating activities	(618)	27,333
NET DECREASE IN CASH	(2,719)	(49,054)
CASH AT BEGINNING OF PERIOD	5,143	54,197
CASH AT END OF PERIOD	2,424	5,143
CASH PAID FOR:
Interest	$ 1,200	$ 6,207
Income Taxes
NON-CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued for capital lease	$ 4,979,902
Write off of derivative liability to additional paid-in capital	2,432,580	$ 623,975
Debt discount from derivative liability	1,676,739	$ 485,795
Conversion of notes payable and accrued interest	1,173,971
Preferred stock Series B issued for Studioplex City, LLC	259,062
Common stock issued for Eagle Productions, LLC	166,667
Common stock issued for debt settlement	100,000	$ 225,965
Note payable assumed by third party	25,000
Deemed distribution - common stock issued for capital lease	10,000
Deemed dividend to common control party	787,575
Stock liability for stock issued for services	500,000
Debt issued to purchase film related assets	950,000
Common stock issued for related party debt	$ 100,000
Common stock issued for related party debts		$ 195,719
Common stock issued for settlement of payroll liability		86,000
Conversion of accounts payable to notes payable		12,500
Common stock issued in settlement of accounts payable		$ 14,338

Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Current Assets
Cash	$ 2,424	$ 5,143
Prepaid expenses and other current assets	$ 12,448	31,516
Assets from discontinued operations		35,949
Total Current Assets	$ 14,872	$ 72,608
FIXED ASSETS	6,104,036
OTHER NON-CURRENT ASSETS
Deposits	6,500
Debt issuance costs	47,003
Total Other Assets	53,503
TOTAL ASSETS	6,172,411	$ 72,608
Current Liabilities
Accounts payable and accrued expenses	156,336	7,866
Accrued interest	126,476	32,208
Accrued payroll	89,648	$ 10,002
Capital lease obligation - short term	555,555
Derivative liability	1,205,133	$ 247,880
Notes payable, net of debt discount of $20,497 and $0, respectively	834,410	19,000
Convertible notes payable, net of debt discount of $463,248 and $132,730, respectively	651,556	195,320
Notes payable - related party	2,000	$ 18,000
Make whole provision	491,667
Total Current Liabilities	4,112,781	$ 530,276
Non-Current Liabilities
Notes payable	$ 409,439
Convertible notes payable		$ 25,000
Capital lease obligation	$ 4,691,944
Total Non-Current Liabilities	5,101,383	$ 25,000
Total Liabilities	9,214,164	555,276
STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock; $0.001 par value, 2,000,000,000 shares authorized, 372,418,542 and 312,284 shares issued and outstanding, respectively	372,419	312
Additional paid-in capital	43,419,204	39,918,053
Accumulated deficit	(46,833,382)	(40,401,033)
Total Stockholders' Equity (Deficit)	(3,041,753)	(482,668)
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 6,172,411	$ 72,608
Preferred Stock Series A
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock value
Preferred Stock Series B
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock value	$ 6