SavWatt USA, Inc.

CIK:0001385305|SEC Filings

STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended
STATEMENTS OF OPERATIONS (Unaudited) (USD $)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement [Abstract]
REVENUES	$ 9,950	$ 8,507	$ 37,336	$ 12,291
COST OF REVENUE	16,565	12,027	22,190	13,634
INVENTORY IMPAIRMENT	59,831		59,831	0
GROSS PROFIT	(66,446)	(3,520)	(44,685)	(1,343)
EXPENSES
General and administrative	109,586	588,179	892,823	940,965
Professional fees	104,201	60,881	239,304	231,846
Total Expenses	213,787	649,060	1,132,127	1,172,811
LOSS FROM OPERATIONS	(280,233)	(652,580)	(1,176,812)	(1,174,154)
OTHER INCOME (EXPENSE)
Interest expense	(32,887)	(11,544)	(73,020)	(45,653)
Interest expense-stockholder				(44,956)
Loss on settlement of related party debt				(10,000)
Dissolution of majority owned subsidiary		5,356		5,356
Amortization of debt discount	(289,734)	(1,131,870)	(795,915)	(1,490,870)
Impairment of leasehold improvements	(455,058)		(455,058)
Lease abandonment expense	(353,555)		(353,555)
Gain on settlement of debt			29,050
Debt conversion expense	(167,845)		(375,915)
Change in fair value of derivative liability	(84,511)	(255,025)	31,950	(650,091)
Total other income (expense)	(1,383,590)	(1,393,083)	(1,992,463)	(2,236,214)
NET LOSS	$ (1,663,823)	$ (2,045,663)	$ (3,169,275)	$ (3,410,368)
NET LOSS PER SHARE, BASIC AND DILUTED	$ (0.38)	$ (5.68)	$ (0.81)	$ (14.47)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	4,375,912	359,963	3,893,896	235,706

STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,169,275)	$ (3,410,368)
Adjustments to reconcile net loss to net cash used in operating activities:
Dissolution of majority owned subsidiary		(33,957)
Depreciation expense	13,388	2,061
Stock issued for services	100	130,563
Stock issued for interest	2,000	23,476
Stock based compensation	270,000
Impairment of leasehold improvements	455,058
Lease abandonment	353,555
Write off of inventory	59,831
Bad debt expense	8,159
Loss on settlement of related party debt		10,000
Amortization of debt discount	795,915	1,490,870
Debt modification expense	375,915	675,090
Rent holiday expense		41,139
Gain on debt forgiveness	(29,050)
Gain on fair value of derivative	(31,950)
Increase (decrease) in cash flows as a result changes in asset and liability account balances:
Accounts receivable	(4,965)	(3,220)
Inventory	(6,329)	(13,819)
Other current assets	55,830	(67,631)
Other assets		(38,922)
Accounts payable and accrued expenses	603,021	26,719
Related party payable	57,245	864,345
Deferred revenue	41,570
Accrued interest - stockholder		89,104
TOTAL ADJUSTMENTS	3,019,293	3,195,818
Net cash used in operating activities	(149,982)	(214,550)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of computer equipmnet		(2,182)
Leasehold improvements		(375,922)
Net cash used in investing activities		(378,104)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash overdraft	6,452
Proceeds from issuance of convertible debt	183,000	605,500
Net cash provided by financing activities	189,452	605,500
NET INCREASE (DECREASE) IN CASH	(979)	12,846
CASH, BEGINNING OF PERIOD	979	2,422
CASH, END OF PERIOD		15,268
SUPPLEMENTAL CASH FLOW INFORMATION:
Beneficial conversion feature related to convertible debt/derivative liability	144,500
Beneficial conversion feature related to convertible debt/APIC	369,641
Stock issued for repayment of shareholder loan		25,000
Accrued rent and payable reclassed to lease abandonment accrual	157,512
Accounts payable and accrued expenses converted to convertible debt	154,329	59,673
Stockholder loan assigned		1,734,893
Loan assignments to convertible note holders	105,000
Common stock issued as a result of debt conversion	503,450	1,318,764
Preferred stock issued for repayment of related party loan	390,000	250,000
Common stock issued for accrued interest	$ 4,023

BALANCE SHEETS (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash		$ 979
Accounts receivable	11,000	14,194
Inventory		53,502
Other current assets	25,001	80,830
Total current assets	36,001	149,504
Computer equipment, net	14,008	161,207
Leasehold Improvements, net		432,391
Intangible		1,100,000
Total assets	50,009	1,843,102
Current liabilities:
Cash overdraft	6,452
Accounts payable and accrued expenses	894,560	1,066,793
Due to related party, net	111,284	59,039
Derivative liability	412,862	300,312
Deferred revenue	41,570
Lease abandonment accrual	511,067
Related party convertible loan payable, net		363,798
Convertible loan payable, net	1,183,651	1,110,450
Total current liabilities	3,161,446	2,900,392
Accounts payable, long term		800,000
Total liabilities	3,161,446	3,700,392
Stockholders' deficit
Common stock, $0.0001 par value, 9,800,000,000 shares authorized, 5,510,019 and 1,621,000 shares issued and outstanding, respectively	551	162
Preferred stock, $.0001 par value, 200,000,000 authorized, 25,000,000 and 10,000,000, issued and outstanding, respectively	2,500	1,000
Additional paid-in capital	47,559,105	45,645,665
Accumulated deficit during development stage	(50,673,593)	(47,504,317)
Total stockholders' deficit	(3,111,437)	(1,857,489)
Total liabilities and stockholders' deficit	$ 50,009	$ 1,843,102