SkyShop Logistics, Inc.

CIK:0001354027|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Income Statement [Abstract]
NET REVENUES	$ 1,834,244	$ 1,607,623	$ 4,988,567	$ 5,292,850
OPERATING EXPENSES:
Cost of delivery	1,465,933	1,333,114	4,086,926	4,478,227
General and administrative	1,209,130	918,562	3,374,269	2,576,255
Stock based compensation	16,371	123,984	65,070	214,181
TOTAL OPERATING EXPENSES	2,691,434	2,375,660	7,526,265	7,268,663
OPERATING LOSS	(857,190)	(768,037)	(2,537,698)	(1,975,813)
OTHER EXPENSES (INCOME):
Interest	47,340	19,481	101,316	33,450
Amortization of discounts	429,509	216,463	960,339	596,949
Changes in excess value of put option over the estimated fair value of shares	9,600	9,600	9,600	51,200
Other expense	64,261	61,872	162,395	81,276
TOTAL OTHER EXPENSES	550,710	307,416	1,233,650	762,875
LOSS FROM CONTINUING OPERATIONS	(1,407,900)	(1,075,453)	(3,771,348)	(2,738,688)
Income (loss) from discontinued operations	58,213	2,917	(27,731)	(14,141)
NET LOSS	(1,349,687)	(1,072,536)	(3,799,079)	(2,752,829)
Net loss from contnuing operations attributable to non-controlling interest				(96,573)
Net income (loss) from discontnued operations attributable to non-controlling interest	(4,322)	875	(30,105)	(4,242)
NET LOSS ATRIBUTABLE TO CONTROLLING INTEREST	(1,345,365)	(1,073,411)	(3,768,974)	(2,652,014)
Continued operations	(1,407,900)	(1,075,453)	(3,771,348)	(2,642,115)
Discontinued operations	62,535	2,042	2,374	(9,899)
NET LOSS ATRIBUTABLE TO CONTROLLING INTEREST	(1,345,365)	(1,073,411)	(3,768,974)	(2,652,014)
Deemed Dividend on converible preferred stock				(798,333)
NET LOSS ATRIBUTABLE TO CONTROLLING INTEREST AND COMMON STOCKHOLDERS	$ (1,345,365)	$ (1,073,411)	$ (3,768,974)	$ (3,450,347)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic and diluted (in shares)	127,430,527	88,707,127	120,441,362	77,362,405
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
Basic and Diluted - Continuing Operations (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.04)
Basic and Diluted - Discontinued Operations (in dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Earnings Per Share, Basic and Diluted, Total (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.04)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,799,079)	$ (2,752,829)
Less: net loss from discontinued operations	(27,731)	(14,141)
Net loss from continuing operations	(3,771,348)	(2,738,688)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:
Amortization of discounts	960,339	596,949
Amortization of financing fees	79,494	61,489
Depreciation and amortization	116,500	114,942
Provision for bad debt		7,761
Conversion of interest on convertible debt		1,483
Stock compensation expense	65,070	214,181
Revaluation of put option liability	9,600	51,200
Changes in assets and liabilities
Decrease in accounts receivable	156,092	487,758
Increase in prepaid expense and other assets	(118,615)	(122,279)
Decrease in accounts payable and accrued liabilities	(37,715)	(596,149)
(Increase) decrease in customer deposits	(1,469)	778
Net cash used in operating activities - continuing operations	(2,542,052)	(1,920,575)
Net cash (used in) provided by operating activities - discontinued operations	(32,912)	39,042
Net cash used in operating activities	(2,574,964)	(1,881,533)
CASH FLOWS FROM INVESTING ACTIVITIES:
Repayments from (advances to) stockholder		(28,286)
Payment of trademark costs	(6,048)	(9,960)
Purchases of property and equipment	(121,694)	(3,634)
Net cash used in investing activities - continuing operations	(127,742)	(41,880)
Net cash used in investing activities - discontinued operations		(4,317)
Net cash used in investing activities	(127,742)	(46,197)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the sale of common stock, net of offering costs	318,350
Proceeds from exercise (repurchase) of common stock warrants, net	81,282	(109,000)
Principal payment on convertible debt		(250,000)
Payments of amounts due for non-compete agreements	(35,884)	(7,180)
Proceeds from issuance of convertible notes payable, net of offering costs	3,050,000	2,969,210
Net cash provided by financing activities - continuing operations	3,413,748	2,603,030
Net cash provided by (used in) financing activities - discontinued operations	45,512	(31,969)
Net cash provided by financing activities	3,459,260	2,571,061
Effect of exchange rate changes		28,737
Net increase in cash	756,554	672,068
Cash, beginning of period	906,646	36,513
Cash, end of period	1,663,200	708,581
Less: cash of discontinued operations, end of period		22,659
Cash of continuing operations, end of period	1,663,200	685,922
Cash paid during the period for:
Interest		6,592
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Issuance of convertible debt for brokers fees - allocated to equity issuance costs	294,784	52,522
Issuance of convertible debt for brokers fees - allocated to debt issuance costs	110,866	263,878
Common stock issued for trade payable		100,000
Increase in principal balance of convertible debt in settlement of accrued interest	82,123
Discounts recorded on convertible debt and fully amortized		278,665
Discounts recorded on convertible debt	2,511,204	2,576,400
Adjustment to put option liability		2,355,200
Receipt of treasury stock for sale of subsidiary	$ 12,000

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
CURRENT ASSETS:
Cash	$ 1,663,200	$ 906,646
Accounts receivable, net	491,591	647,683
Prepaid expenses and other	158,689	129,922
Assets held for sale		262,199
TOTAL CURRENT ASSETS	2,313,480	1,946,450
PROPERTY AND EQUIPMENT, net	185,731	106,065
INTANGIBLE ASSETS, net	365,816	447,730
OTHER ASSETS, net	411,712	290,492
TOTAL ASSETS	3,276,739	2,790,737
CURRENT LIABILITIES:
Accounts payable	1,018,065	995,597
Accrued liabilities	546,009	693,712
Current portion of amounts due on non-compete agreement	340,556	334,440
Customer deposits		1,469
Put option payable	310,400	300,800
Liabilities held for sale		222,072
TOTAL CURRENT LIABILITIES	2,215,030	2,548,090
CONVERTIBLE DEBT, NET	2,519,823	532,915
NON-COMPETE AGREEMENT, less current portion	10,500	52,500
TOTAL LIABILITIES	4,745,353	3,133,505
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT:
Convertible preferred stock, $.001 par value, 50,000,000 authorized, 1,360,000 issued and outstanding at September 30, 2011, and December 31, 2010	1,360	1,360
Common stock, $.001 par value, 350,000,000 authorized, 128,021,179 and 95,083,179 shares issued, and 127,301,179 and 94,763,179 shares outstanding at September 30, 2011, and December 31, 2010, respectively	128,022	95,084
Subscribed stock		791,586
Subscriptions receivable		(85,000)
Additional paid-in capital	30,858,298	27,503,528
Accumulated deficit	(32,124,294)	(28,355,320)
Treasury stock, at cost (720,000 and 320,000 shares at September 30, 2011 and December 31, 2010, respectively)	(332,000)	(320,000)
Accumulated comprehensive income		14,001
Non-controlling interest		11,993
TOTAL STOCKHOLDERS' DEFICIT	(1,468,614)	(342,768)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 3,276,739	$ 2,790,737