IMAGING3 INC

CIK:0001205181|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 2,962	$ 153,476	$ 32,673	$ 586,780
Cost of goods sold	62,758	346,073	297,069	926,671
Gross loss	(59,796)	(192,597)	(264,396)	(339,891)
Operating expenses:
Sales	1,172	3,800	6,744	5,760
General and administrative	341,662	411,319	1,303,607	1,341,977
Total operating expenses	342,834	415,119	1,310,351	1,347,737
Loss from operations	(402,630)	(607,716)	(1,574,747)	(1,687,628)
Other income (expense):
Interest expense	(369,763)	(388,273)	(1,143,443)	(1,258,650)
Change in value of derivative instruments	14,187	13,877	138,081	91,210
Gain (loss) on extinguishment of debt			(27,593)	(398,373)
Loss on extinguishment of debt - related parties				(491,998)
Total other expense	(355,576)	(374,396)	(1,032,955)	(2,057,811)
Loss before income taxes	(758,207)	(982,112)	(2,607,703)	(3,745,439)
Tax provision
Net loss	(758,207)	(982,112)	(2,607,703)	(3,745,439)
Loss attributable to noncontrolling interest		(270)		(270)
Net loss attributable to Grapefruit USA, Inc.	$ (758,207)	$ (981,842)	$ (2,607,703)	$ (3,745,169)
Net loss per share – Basic and diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.01)
Weighted average common stock outstanding - Basic and diluted	573,580,207	550,277,467	589,362,360	515,339,023

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,607,703)	$ (3,745,169)
Adjustments to reconcile net loss to net cash used for operating activities:
Net loss attributable to non-controlling interest		(270)
Depreciation and amortization expense	58,988	69,598
Amortization of debt discount	313,731	692,129
Change in value of derivative	(138,081)	(91,210)
Loss on extinguishment of debt - related parties		491,998
Loss on extinguishment of debt		398,373
Stock-based compensation for services	301,996	265,024
Interest expense	1,143,443
Stock option expense	27,006	65,754
Loss on bad debts	250,054
Loss on legal settlement	36,462
Loss on inventory valuation	68,941
Changes in operation assets and liabilities:
Accounts Receivables	5,390	(261,452)
Inventory	(17,163)	91,434
Prepaid expense and current assets	16,157	(6,875)
Right-of-use assets	(27,588)	68,844
Hemp investment		85,000
Derivatives	133,654
Accounts payable	128,613	70,785
Accrued executive compensation	450,000
Accrued expenses and other current liabilities		487,792
Accrued loan interest expense	(487,344)	388,940
Right-of-use liability	25,892	(69,276)
Net cash (used for)/provided by used for operating activities	(317,552)	(998,581)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash received from acquisition		69
Purchase of land and equipment		(62,319)
Net cash used for investing activities		(62,250)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayment of capital lease liability	(25,487)	(49,062)
Repayment of legal liability	(8,112)	(16,393)
Proceeds from convertible notes (net of discount $97,703)	6,547	450,000
Proceeds from loans, net	56,000
Repayment of loan principal	(9,524)	(4,772)
Proceeds from related party notes	320,751	93,080
Repayment of related party note principal	(8,135)
Contributions from non-controlling interest		400
Proceeds from exercise of warrants		250,000
Proceeds from sale of common stock		75,000
Net cash proceeds from financing activities	332,040	798,253
NET INCREASE (DECREASE) IN CASH	14,488	(262,578)
CASH, BEGINNING BALANCE	9,095	299,895
CASH, ENDING BALANCE	23,583	37,317
SUPLEMENTAL DISCLOSURE ON CASH FINANCING ACTIVITY
Cash paid for interest expense	80,551	87,883
SUPLEMENTAL DISCLOSURE ON NON-CASH FINANCING ACTIVITY
Shares issued for legal settlement	47,039	1,090,462
Shares issued for conversion of notes payable	1,745,818	996,620
Shares issued for debt settlement with related parties		699,236
Shares issued for compensation	139,614
Shares issued for acquisition		$ 250,000

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash	$ 23,583	$ 9,095
Accounts receivable	22,977	278,422
Inventory	337,504	389,282
Licensee agreement	17,600	37,400
Prepaid investor relation expense	239,189
Other	3,643
Total current assets	644,496	714,199
NON-CURRENT ASSETS:
Property, plant and equipment, net	1,710,639	1,769,627
Operating right of use - assets	102,475	74,886
Intangible asset	250,000	250,000
Other	7,460	7,459
TOTAL ASSETS	2,715,070	2,816,171
CURRENT LIABILITIES
Notes payable	313,157	262,839
Accrued loan interest – nonrelated parties	1,042,864	1,014,653
Accrued loan interest – related parties	112,029	29,959
Related party payable	1,465,197	702,581
Legal settlements - current portion	523,009	541,697
Subscription payable	319,022	251,727
Derivative liability	122,965	127,392
Capital lease - current portion	13,348	31,166
Operating right of use - liability - current portion	83,313	65,486
Convertible notes (net of discount of $115,607 and $325,089, respectively)	2,754,690	3,640,959
Accounts payable and accrued expenses	1,163,727	1,035,114
Total current liabilities	7,913,321	7,703,573
Capital lease		7,669
Operating right of use - liability	19,162	11,097
Long-term notes payable, net	911,322	908,617
Total long-term liabilities	930,484	927,383
TOTAL LIABILITIES	8,843,805	8,630,956
STOCKHOLDERS’ DEFICIT
Common stock ($0.0001 par value, 1,000,000,000 shares authorized; 606,791,549 and 557,162,744 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively)	60,679	55,716
Preferred stock ($0.0001 par value, 1,000,000 shares authorized; no shares issued and outstanding as of September 30, 2022 and December 31, 2021)
Additional paid in capital	13,251,587	10,962,797
Accumulated deficit	(19,433,867)	(16,826,164)
Total stockholders’ deficit	(6,121,601)	(5,807,651)
Noncontrolling interest	(7,134)	(7,134)
Total deficit	(6,128,735)	(5,814,785)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$ 2,715,070	$ 2,816,171