Bitzio, Inc.

CIK:0001347078|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenue	$ 1,540,280	$ 1,245,569	$ 2,490,082	$ 2,283,822
Costs of goods sold	497,693	515,073	604,078	856,255
Gross profit	1,042,587	730,496	1,886,004	1,427,567
Operating expenses:
Sales, general and administrative expenses	946,475	2,375,676	2,071,934	3,987,970
Research and development		(51,783)		268,807
Total operating expenses	946,475	2,323,893	2,071,934	4,256,777
Income (loss) from operations	96,112	(1,593,397)	(185,930)	(2,829,210)
Other Income (Expense):
Gain (loss) on extinguishment of debt	555,680	(24,844)	3,107,293	(956,278)
Other expense		(560,000)	(75,000)	(560,000)
Amortization of note discount	(839,188)		(1,485,742)
Equity loss from investee	(140,032)	(161,471)	(280,511)	(161,471)
Foreign currency transaction gain (loss)	5,263	(6,071)	(2,543)	13,921
Change in fair value of derivative instruments	3,612,618	(6,528)	1,987,086	2,826,307
Change in fair value of derivative instruments - affiliate	207,222	(29,972)	2,778	(42,806)
Interest expense	(209,412)	(766,339)	(452,765)	(1,692,657)
Interest expense - related party	(26,108)	(36,236)	(43,155)	(76,708)
Total other income (expense), net	3,166,043	(1,591,461)	2,757,441	(649,692)
Income (loss) before provision for income taxes	3,262,155	(3,184,858)	2,571,511	(3,478,902)
Provision for income taxes			(2,520)
Net income (loss)	3,262,155	(3,184,858)	2,568,991	(3,478,902)
Net income (loss) attributable to non-controlling interest	635,989	(531,963)	340,576	(832,639)
Net income (loss) attributable to Company	2,626,166	(2,652,895)	2,228,414	(2,646,263)
Preferred Stock dividends	(101,342)		(117,724)
Net income (loss) attributable to common shareholders	$ 2,524,824	$ (2,652,895)	$ 2,110,690	$ (2,646,263)
Weighted average common shares outstanding, basic	7,695,479,942	5,158,310,887	7,524,600,371	4,444,916,042
Weighted average common shares outstanding, diluted	376,088,262,443	5,158,310,887	374,720,883,322	4,444,916,042
Earnings (Loss) per Share - Basic:
Income (loss) from continuing operations - basic	$ 0.00	$ (0.00)	$ 0.00	$ (0.00)
Net income (loss) per share - basic	0.00	(0.00)	0.00	(0.00)
Earnings (Loss) per Share - Diluted:
Income (loss) from continuing operations - diluted	0.00	(0.00)	0.00	(0.00)
Net income (loss) per share - diluted	$ 0.00	$ (0.00)	$ 0.00	$ (0.00)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 2,568,991	$ (3,478,902)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of intangibles	194,793	238,136
Loss (gain) on extinguishment of debt	(3,107,293)	956,278
Loss (gain) on foreign currency transaction	2,543	(13,921)
Stock issued for services	93,764	57,821
Change in fair value of derivatives	(1,989,864)	(2,783,501)
Recognition of intrinsic value of beneficial conversion feature		745,048
Amortization of debt discounts on convertible notes	1,498,581	28,677
Origination interest on convertible notes payable		493,026
Equity losses from investee	280,511	161,471
Bad debt expense	10,000
Expenses incurred by issuance of debentures	2,028	5,244
Changes in operating assets and liabilities:
Accounts receivable	(164,192)	177,936
Deposits	400,000
Prepaid expenses	2,079	216,423
Inventory	147,380	20,497
Billings in excess	9,107	(18,478)
Other receivables	(40,000)
Deferred revenue		44,550
Accrued interest	162,888	450,543
Accrued interest - related party	41,127	42,708
Related party payables		2,624
Accounts payable and accrued expenses	45,648	2,388,321
Net cash provided by (used in) operating activities	158,091	(265,498)
CASH FLOW FROM INVESTING ACTIVITIES
Cash acquired in acquisition		18,029
Loans to development partners - related parties	(436,437)	(46,708)
Net cash provided by (used in) investing activities	(436,437)	(28,679)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable		(8,737)
Proceeds from convertible notes payable		120,000
Repayment of convertible debentures	(658,235)	(228,869)
Net cash provided by (used in) financing activities	(658,235)	(117,606)
Net increase (decrease) in cash	(936,581)	(411,782)
Cash at beginning of period	1,929,832	590,850
Cash at end of period	$ 993,251	$ 179,068

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 993,251	$ 1,929,832
Accounts receivable, net of doubtful accounts	463,017	311,763
Deposits, current		400,000
Inventories, net	488,102	635,482
Due from affiliates		180,865
Loans receivable	200,500	160,500
Prepaid expenses and other assets	26,480	28,558
Total current assets	2,171,350	3,647,000
Other Assets:
Intangible assets, net	32,296	224,589
Fixed assets, net	20,833	23,333
Due from affiliates	621,075
Minority investment in subsidiary	3,079,844	3,360,355
Costs in excess of billings		9,107
Other receivables	2,940
Deposits	69,730	69,730
Total other assets	3,826,718	3,687,113
TOTAL ASSETS	5,998,067	7,334,113
Current Liabilities:
Accounts payable	2,000,561	1,866,785
Accrued expenses	1,083,094	1,454,020
Income tax payable	151,020	151,020
Accrued interest payable	268,142	820,654
Accrued interest payable - related party	423,394	378,267
Notes payable, net	280,212	354,981
Notes payable - related party	310,100	310,100
Current portion of convertible notes, net	798,916	839,718
Current portion of convertible debentures, net	12,909	2,366,426
Current portion of convertible debentures, net - related party	1,592,432	1,652,270
Derivative liabilities	9,186,148	11,185,625
Contingent liability	41,000	41,000
Amounts due to minority shareholders	158,284	158,284
Total current liabilities	16,306,212	21,579,150
Long term Liabilities:
Convertible debentures	1,615,100	400,586
Convertible debentures - related party	200,000	325,000
Redeemable preferred stock
Total long term liabilities	1,815,100	725,586
Total Liabilities	18,121,312	22,304,736
Stockholders' Equity (Deficit):
Common Stock: $0.0001 par value, 10,000,000,000 authorized;7,720,754,217 and 7,320,754,217 shares issued and outstanding, respectively	7,720,755	7,320,755
Additional paid in capital	12,299,503	12,463,791
Common stock subscription payable	181,074	181,074
Accumulated deficit	(28,039,223)	(30,149,913)
Bitzio, Inc. stockholders' equity (deficit)	(7,834,848)	(10,181,250)
Non-controlling interest	(4,414,888)	(4,798,138)
Total stockholders' equity (deficit)	(12,249,736)	(14,979,388)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	5,998,067	7,334,113
Redeemable Preferred Stock Series C [Member]
Long term Liabilities:
Redeemable preferred stock
Redeemable Preferred Stock Series E [Member]
Long term Liabilities:
Redeemable preferred stock	126,491	8,767
Series A Preferred Stock [Member]
Stockholders' Equity (Deficit):
Preferred stock value	2,043	2,043
Series E Preferred Stock [Member]
Stockholders' Equity (Deficit):
Preferred stock value	200	200
Series F Preferred Stock [Member]
Stockholders' Equity (Deficit):
Preferred stock value	$ 800	$ 800