Red Giant Entertainment, Inc.

CIK:0001411179|SEC Filings

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Statements Of Operations
Revenues	$ 1,879	$ 6,457	$ 4,255	$ 17,081
Cost of sales	1,374	932	3,489	10,019
Gross Profit	505	5,525	766	7,062
Operating Expenses
Selling and marketing	9,355	140,385	31,402	212,234
Compensation	11,574	209,820	139,511	241,782
Professional	41,303	48,560	134,432	104,324
General & administrative	54,273	87,851	217,728	197,183
Depreciation and amortization	1,464	2,403	4,301	14,025
Total operating expenses	117,969	489,019	527,374	769,548
Net loss from operations	(117,464)	(483,494)	(526,608)	(762,486)
Other income (expense)
Interest expense	(357,908)	(693,061)	(834,044)	(867,114)
Change in derivatives	850,796	(3,913,772)	138,114	(4,903,971)
Net loss	$ 375,424	$ (5,090,327)	$ (1,222,538)	$ (6,533,571)
Basic and dilutive loss per share	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of shares outstanding	2,988,799,395	1,356,535,516	2,824,193,303	775,563,224

Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	May. 31, 2015	May. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (1,222,538)	$ (6,533,571)
Adjustment to reconcile Net Income to net cash provided by operations:
Depreciation & amortization	$ 4,301	14,025
Stock based compensation for services		196,303
Amortization of debt discounts and financing costs	$ 412,835	867,114
Change in derivatives	(138,114)	4,903,971
(Increase) decrease in operating assets:
Inventory	$ 710	(24,738)
Prepaid expenses and other assets		71,000
Increase (decrease) in operating liabilities:
Accrued expenses	$ 359,827	3,271
Total adjustments	639,559	6,030,946
Net Cash (Used in) Operating Activities	$ (582,979)	(502,625)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment		(14,011)
Net Cash (Used in) Investing Activities		(14,011)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shareholder loans, net	$ (40,295)	2,064
Proceeds from Loan(s)	279,000	$ 544,500
Proceeds from issuance of stock	350,000
Net Cash (Used in) Provided by Financing Activities	588,705	$ 546,564
Net increase (decrease) in cash and cash equivalents	5,726	29,928
Cash and cash equivalents, beginning of period	5,953	14,937
Cash and cash equivalents, end of period	$ 11,679	$ 44,865
Supplemental cash flow information
Cash paid for interest
Cash paid for taxes
Non-cash transactions:
Expenses paid from proceeds of debt	$ 3,500
Debt converted to equity	$ 185,510	$ 1,071,180
Stock exchanged for shareholder debt		$ 2,520

Consolidated Balance Sheets - USD ($)	May. 31, 2015	Aug. 31, 2014
Current Assets
Cash and cash equivalents	$ 11,679	$ 5,953
Accounts receivable, net of allowance for doubtful accounts of $1,253 and $1,253, respectively
Inventory	$ 6,280	$ 6,990
Total Current Assets	17,959	12,943
Property and equipment, net of accumulated depreciation of $7,940 and $5,103, respectively	21,601	25,902
TOTAL ASSETS	39,560	38,845
Current Liabilities
Accounts payable and accrued expenses	590,108	230,281
Shareholder loans	18,544	58,839
Convertible notes payable, net of discounts	668,357	447,032
Derivative liability, notes	3,233,991	3,518,650
Derivative liability, warrants	37,500	35,000
Total Current Liabilities	4,548,500	4,289,802
TOTAL LIABILITIES	$ 4,548,500	$ 4,289,802
Commitments and Contingencies (Note 9)
Stockholders' Deficit
Preferred stock: 100,000,000 authorized; $0.0001 par 10,000,000 shares issued and outstanding	$ 1,000
Common stock: 6,000,000,000 authorized; $0.0001 par value 2,988,799,395 and 2,540,260,752 shares issued and outstanding	298,880	$ 254,026
Additional paid in capital	7,781,721	6,863,020
Treasury stock, at cost, 1,785,900 shares	(55,000)	(55,000)
Accumulated deficit	(12,535,541)	(11,313,003)
Total Stockholders' Deficit	(4,508,940)	(4,250,957)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 39,560	$ 38,845