NET TALK.COM, INC.

CIK:0001383825|SEC Filings

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
Statements of Operations - USD ($)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net revenues	$ 985,782	$ 1,209,473	$ 3,255,570	$ 3,661,964
Cost of revenues	352,576	826,226	1,253,566	2,350,857
Gross profit	633,206	383,247	2,002,004	1,311,107
Operating expenses	1,109,541	901,496	3,319,253	2,588,454
Operating loss	(476,335)	(518,249)	(1,317,249)	(1,277,347)
Other expenses
Interest expense	(174,663)	(163,770)	(525,699)	(395,682)
Other expense	0		(384,680)
Other expenses	(174,663)	(163,770)	(910,379)	(395,682)
Net loss	$ (650,998)	$ (682,019)	$ (2,227,628)	$ (1,673,029)
Basic and diluted loss per common share (in dollars per share)	$ (0.00)	$ (0.01)	$ (0.01)	$ (0.02)

Statements of Cash Flows - USD ($)	9 Months Ended
Statements of Cash Flows - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Cash flow used in operating activities:
Net loss	$ (2,227,628)	$ (1,673,029)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	203,045	212,695
Loss on disposal of assets	197,840	0
Recognition of deferred revenue	(2,522,891)	$ (2,855,739)
Loss on disposal of property and equipment	47,135
Changes in assets and liabilities:
Accounts receivables	73,577	$ 89,933
Prepaid expenses and other assets	0	(300,511)
Inventories	536,139	(4,837)
Other assets	3,336	(4,584)
Deferred revenues	2,586,527	2,979,108
Accounts payable	142,437	(127,490)
Accrued liabilities	982,981	461,571
Net cash provided by (used in) operating activities	22,498	(1,222,883)
Cash flow used in investing activities:
Restricted cash	0	68,400
Property and equipment additions	(32,349)	(20,996)
Development costs	(165,050)	(404,860)
Net cash used in investing activities:	(197,399)	(357,456)
Cash flow (used in) provided by financing activities:
Proceeds from promissory and demand notes	$ 25,000	1,550,377
Issuance of common stock		131,148
Due to shareholder	$ (124,020)	(30,420)
Net cash (used in) provided by financing activities	(99,020)	1,651,105
Net (decrease) increase in cash	(273,921)	70,766
Cash and cash equivalents, beginning	372,284	76,791
Cash and cash equivalents, ending	98,363	147,557
Supplemental disclosures:
Cash paid for interest	126,000	126,000
Cash paid for income taxes	0	0
Non-cash transactions:
Issuance of common stock from conversion of convertible notes	171,589	0
Issuance of common stock from paydown of accounts payable	90,933	0
Issuance of common stock from paydown of accrued expenses	150,000	0
Issuance of common stock from paydown of due to shareholders	9,857	0
Cancellation of convertible notes	0	500,000
Reduction of accounts payable from Telestrata agreement	0	928,782
Conversion of demand notes to Telestrata promissory note	$ 0	$ 837,373

Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 98,363	$ 372,284
Restricted cash	115,530	115,530
Accounts receivable, net	9,162	82,739
Inventory	144,824	680,963
Total current assets	367,879	1,251,516
Property and equipment, net	2,703,774	2,706,426
Intangible assets, net	68,969	72,195
Development costs	131,517	377,172
Other assets	27,253	30,589
Total assets	3,299,392	4,437,898
Current liabilities:
Accounts payable	2,200,837	2,149,333
Accrued expenses	2,281,623	1,448,642
Due to Shareholder	117,035	250,912
Deferred revenue	2,120,151	2,056,515
Current portion of long-term debt	7,229,566	4,580,000
Total current liabilities	13,949,212	10,485,402
Long term debt	200,000	2,996,155
Total liabilities	14,149,212	13,481,557
Stockholders' deficit:
Common stock, $.001 par value, 300,000,000 authorized, 299,937,174 and 121,398,391 issued and outstanding as of September 30, 2015 and December 31, 2014	299,937	121,407
Additional paid in capital	55,461,537	55,217,688
Accumulated deficit	(66,611,294)	(64,382,754)
Total stockholders' deficit	(10,849,820)	(9,043,659)
Total liabilities and stockholders' deficit	$ 3,299,392	$ 4,437,898