IDO Security Inc.

CIK:0001301367|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Revenues				$ 15,043
Cost of sales	120,000	120,000	360,000	376,756
Gross loss	(120,000)	(120,000)	(360,000)	(361,713)
Operating expenses
Research and development expenses				53,202
Selling and general and administrative expenses	120,953	98,096	458,618	775,146
Stock based compensation - selling and general and administrative		99,527		696,691
Total operating expenses	120,953	197,623	458,618	1,525,039
Loss from operations	(240,953)	(317,623)	(818,618)	(1,886,752)
Interest expense (including amortization of debt and preferred stock discounts, accretion of convertible promissory notes and dividends)	(665,442)	(858,979)	(1,891,422)	(2,711,918)
Gain on derivative liability	(106,666)		(59,321)
Foreign currency translation	76,721		76,721	(21,882)
Net loss	$ (936,340)	$ (1,176,602)	$ (2,692,640)	$ (4,620,552)
Basic and diluted loss per share (in dollars per share)	$ 0.00	$ (0.06)	$ (0.02)	$ (0.23)
Weighted average number of shares outstanding
Basic and diluted (in shares)	377,826,733	19,986,471	178,541,587	19,986,471

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,692,640)	$ (4,620,552)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,799
Amortization of note discount	765,184	1,878,431
Accretion of note discount	748,764	550,931
Stock based compensation		696,691
Interest and exchange rate differences	6,266
Financing costs related to warrant liability		1,896
Issuance of Preferred Stock - Series B		1
Gain on derivative liability	59,321
Debt issued for services	190,000
Derivative liabilities charged directly to interest	47,347
Loss on disposal and abandonment of property and equipment		42,603
Decrease in net liability for severance pay		(26,250)
Increase (decrease) in cash attributable to changes in operating assets and liabilities
Inventory		5,236
Prepaid expenses and other current assets		33,830
Accounts payable and accrued liabilities	752,325	989,619
Net cash used in operating activities	(123,433)	(444,765)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of property and equipment		900
Net cash provided by investing activities		900
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loan payable - bank	310	15,377
Proceeds from notes payable	121,600	302,700
Net cash provided by financing activities	121,910	318,077
DECREASE IN CASH	(1,523)	(125,788)
CASH - BEGINNING OF PERIOD	1,989	125,982
CASH - END OF PERIOD	466	194
Supplemental disclosures of cash flow information:
Cash paid for interest
Non-cash activities:
Issuances of common stock for the conversion of promissory notes and accrued interest	374,605
Issuances of convertible notes payable in exchange for notes payable	$ 486,000

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash	$ 466	$ 1,989
Inventories	16,024	16,024
Total current assets	16,490	18,013
Property and equipment, net
Total assets	16,490	18,013
CURRENT LIABILITIES
Accounts payable and accrued liabilities	8,720,455	7,716,062
Bank line of credit	12,336	12,026
Convertible promissory notes (net of discount of $49,810 and $-0-)	462,292	2,125,237
Redeemable Series A Cumulative Convertible Preferred Stock (net of discount of $615,164 and $138,832)	13,705,286	13,807,905
Loans payable	173,473	167,206
Derivative liability	266,667
Warrant liability	400,000	400,000
Total current liabilities	23,740,509	24,228,436
NON-CURRENT LIABILITIES
Convertible promissory notes (net of discount of $2,470,767 and $3,036,146)	5,460,762	2,943,006
Notes payable		387,200
Redeemable Series A Cumulative Convertible Preferred Stock (net of discount of $205,054 and $37,708)	1,009,946	336,004
Preferred Stock - Series B	1	1
Total liabilities	30,211,218	27,894,647
COMMITMENT AND CONTINGENCIES
STOCKHOLDERS' DEFICIENCY
Preferred Stock 6,500 shares authorized; none outstanding
Common stock, $.001 par value; 400,000,000 shares authorized, 399,658,514 and 24,844,611 shares issued and outstanding	399,658	24,844
Additional paid-in capital	27,653,866	27,654,134
Accumulated other comprehensive loss	(331)	(331)
Accumulated deficit	(58,247,921)	(55,555,281)
Total stockholders' deficiency	(30,194,728)	(27,876,634)
Total liabilities and stockholders' deficiency	$ 16,490	$ 18,013