EAST COAST DIVERSIFIED CORP

CIK:0001256540|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Product sales	$ 34,687	$ 45,593	$ 239,593	$ 100,220
License Fees	5,001		15,003	6,668
Consulting and development	$ 16,125	$ 100,000	136,125	$ 100,000
Advertising revenue			1,022
User fees	$ 14,944	$ 7,832	34,030	$ 22,944
Total revenues	70,757	153,425	425,773	229,832
Cost of revenues:
Product sales	14,829	18,916	133,195	50,576
User fees	31,970	4,731	49,773	17,806
Selling, general and administrative expense	316,943	372,801	1,373,579	1,105,532
Total operating expenses	363,742	396,448	1,556,547	1,173,914
Loss from operations	(292,985)	(243,023)	(1,130,774)	(944,082)
Other income (expense)
Interest expense	$ (32,582)	$ (51,296)	$ (123,810)	(267,616)
Change in derivative liability				63,700
Total other income (expense)	$ (32,582)	$ (51,296)	$ (123,810)	(203,916)
Net loss from continuing operations	(325,567)	(294,319)	(1,254,584)	(1,147,998)
Net loss attributable to noncontrolling interests	4,766	2,361	39,975	11,098
Net loss attributable to East Coast Diversified Corporation	$ (320,801)	$ (291,958)	$ (1,214,609)	(1,136,900)
Net income from discontinued operations, net of tax				984,115
Total net loss after discontinued operations	$ (320,801)	$ (291,958)	$ (1,214,609)	$ (152,785)
Net loss per share - basic and diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Weighted average number of shares outstanding during the period - basic and diluted	12,409,117,071	12,409,117,071	12,409,117,071	8,987,307,849

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (1,214,609)	$ (152,785)
Adjustments to reconcile net income (loss) to net cash used in operations:
Noncontrolling interests	(39,975)	(11,098)
Depreciation and amortization	$ 8,782	1,970
Stock issued for services and compensation		2,096
Amortization of prepaid license fee	$ 37,500	37,500
Gain on disposal of discontinued operations		(984,115)
Accretion of beneficial conversion feature on convertible notes payable as interest	$ 27,340	220,061
Change in derivative liability		(63,700)
Interest accrued on loans payable	$ 58,091	47,555
Changes in operating assets and liabilities:
Accounts receivable, net	(205,745)	(142,970)
Inventory	72,230	$ 2,513
Prepaid expenses	$ 89,388
Security deposits		$ 4,592
Bank overdraft, net	$ (5,157)	2,358
Accounts payable and accrued expenses	(184,111)	85,081
Accrued payroll and related liabilities	1,006,388	357,651
Due to related party	(224,906)	(10,120)
Deferred revenue	(15,003)	88,331
Net cash used in operating activities	(589,787)	$ (515,080)
Cash flows from investing activities:
Capital expenditures	(3,705)
Net cash used in investing activities	$ (3,705)
Cash flows from financing activities:
Proceeds from issuance of preferred stock		$ 120,000
Proceeds from preferred stock subscriptions		71,500
Proceeds from loans payable	$ 580,400	157,850
Repayments on loans payable		(2,800)
Proceeds from loans payable - related party	$ 811	173,492
Net cash from financing activities	581,211	520,042
Net increase (decrease) in cash	(12,281)	4,962
Cash at beginning of period	16,334	241
Cash at end of period	$ 4,053	$ 5,203
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for taxes
Non-cash investing and financing activities:
Renewal of perpetual technology license agreement	$ 550,000
Issuance of 7,674,970,146 shares of common stock in conversion of loans payable, respectively		$ 428,418
Issuance of 17,000,000 shares of Series A preferred stock in conversion of loans payable		34,000
Issuance of 675,304,000 shares of common stock in conversion of loans payable - related parties		20,808
Issuance of 15,000,000 shares of common stock previously held as common stock issuable		4,500
Issuance of 63,449,999 shares of Series A preferred stock previously held as preferred stock issuable		147,000
Issuance of 1,820,000,000 shares of common stock in settlement of loans and accounts payable converted to Amounts payable in common stock, respectively		118,300
Beneficial conversion feature of convertible notes payable		$ 215,390

Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 4,053	$ 16,334
Accounts receivable, net of allowance for doubtful accounts of $66,000 at September 30, 2015 and December 31, 2014	343,087	185,342
Inventory	$ 178,413	250,643
Prepaid license fees		37,500
Prepaid expenses	$ 1,568	90,956
Total current assets	527,121	580,775
Property and equipment, net	20,750	25,827
Other assets
Intangible assets	700,000	150,000
Security deposits	20,000	20,000
Total other assets	720,000	170,000
Total assets	1,267,871	776,602
Current liabilities
Bank overdraft	568	5,725
Loans payable, current	1,453,583	861,296
Loans payable - related parties, current	747,430	$ 721,075
Due to related party	325,094
Accounts payable and accrued expenses	850,623	$ 1,034,734
Accrued payroll and related liabilities	3,925,893	2,919,505
Deferred revenue	68,327	83,330
Total current liabilities	$ 7,371,518	$ 5,625,665
Other liabilities
Total liabilities	$ 7,371,518	$ 5,625,665
Amounts payable in common stock	2,925	2,925
Derivative liability	1,575	1,575
Stockholders' deficit
Common stock, $0.001 par value, 24,400,000,000 shares authorized, 12,409,117,071 and 12,409,117,071 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	12,409,117	12,409,117
Additional paid-in capital	5,714,716	5,714,716
Preferred stock issuable	17,500	17,500
Preferred stock subscriptions receivable	(1,087,498)	(1,087,498)
Accumulated deficit	(23,140,963)	(21,926,354)
Total East Coast Diversified stockholders' deficit	(5,663,689)	(4,449,080)
Noncontrolling interest	(444,458)	(404,483)
Total stockholders' deficit	(6,108,147)	(4,853,563)
Total liabilities and stockholders' deficit	1,267,871	776,602
Series A Preferred Stock [Member]
Stockholders' deficit
Preferred stock	423,437	423,437
Series B Preferred Stock [Member]
Stockholders' deficit
Preferred stock	$ 2	$ 2