Digitiliti Inc

CIK:0001411658|SEC Filings

Consolidated Statements of Operations (USD $)	12 Months Ended
Consolidated Statements of Operations (USD $)	Dec. 31, 2011	Dec. 31, 2010
REVENUES	$ 1,480,154	$ 2,143,882
COST OF REVENUES	(1,314,224)	(1,503,763)
GROSS PROFIT (LOSS)	165,930	640,119
OPERATING EXPENSES
Selling and marketing	527,399	849,337
General and administrative	2,419,445	2,681,525
Research and development	447,476	992,210
Total operating expenses	3,394,320	4,523,072
LOSS FROM OPERATIONS	(3,228,390)	(3,882,953)
OTHER INCOME (EXPENSE)
Gain (loss) on extinguishment of debt	(67,614)	(306,428)
Interest expense	(692,539)	(2,225,258)
Total other expense	(760,153)	(2,531,686)
NET LOSS	$ (3,988,543)	$ (6,414,639)
NET LOSS PER COMMON SHARE — BASIC AND DILUTED	$ (0.06)	$ (0.12)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING — BASIC AND DILUTED	68,102,619	54,284,942

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Dec. 31, 2011	Dec. 31, 2010
OPERATING ACTIVITIES
Net loss	$ (3,988,543)	$ (6,414,639)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense	127,940	336,797
Amortization of software license	257,214	295,873
Amortization of deferred financing costs	109,344	41,252
Amortization and write of discount on convertible debt	305,058	331,584
(Gain) loss on extinguishment of debt	67,614	306,428
Bad debt expense	54,840	40,893
Shares issued for interest expense	0	0
Common stock issued for services	111,050	238,340
Option expense	755,409	310,967
Additional beneficial conversion feature on converted debt	0	1,522,950
Warrants expense	58,548	456,329
Changes in operating assets and liabilities:
Accounts receivable	35,072	109,623
Other current assets	(106,186)	(27,666)
Other assets	2,029	1,000
Accounts payable — trade	201,183	384,595
Accounts payable — related parties	35,287	(7,861)
Accrued expenses	326,216	155,198
Deferred income	(3,949)	9,989
Deferred rent	(5,899)	(8,496)
Net cash provided by (used in) operating activities	(1,657,773)	(1,916,844)
INVESTING ACTIVITIES
Purchase of property and equipment	(5,863)	(50,227)
Purchase of software licenses	0	(19,282)
Net cash used in investing activities	(5,863)	(69,509)
FINANCING ACTIVITIES
Proceeds from issuance of convertible debt, net of financing costs	1,746,494	250,000
Proceeds from issuance of convertible debt - related party	145,000
Proceeds from exercise of warrants	0	509,900
Proceeds from issuance of preferred stock	0	420,000
Payments on convertible debt	(225,001)	(95,000)
Payments on capital lease obligations	(23,308)	(46,554)
Payments on notes payable	(235,607)	(364,572)
Proceeds from notes payable	100,000	0
Proceeds from due to related parties	66,000	0
Proceeds from sale of common stock, net of issuance costs	63,000	1,199,050
Net cash provided by financing activities	1,636,578	1,872,824
NET INCREASE (DECREASE) IN CASH	(27,058)	(113,529)
Beginning of year	27,557	141,086
End of year	499	27,557
SUPPLEMENTAL CASH FLOWS INFORMATION
Cash paid for interest	92,186	77,710
Cash paid for income taxes	0	0
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of debt and accrued interest to common stock	75,000	3,265,973
Preferred stock issued for debt and accrued interest	0	724,187
Stock issued to settle liabilities	144,431	72,879
Additions to property and equipment and maintenance fees paid through issuance of note	0	56,634
Accrued interest converted to debt principal	113,377	21,107
Warrants issued for debt financing costs	207,235	0
Common stock issued for conversion of Series A preferred stock	277
Convertible debt issued for debt issuance costs	64,000
Debt discount due to beneficial conversion feature	144,635
Debt discount due to warrants granted with convertible notes	$ 432,269	$ 0

Consolidated Balance Sheets (USD $)	Dec. 31, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash	$ 499	$ 27,557
Accounts receivable, net	243,775	333,687
Other current assets	354,156	247,970
Total current assets	598,430	609,214
Property and equipment, net	36,028	158,105
Software license, net	179,394	436,608
Deferred financing costs	214,863	4,466
Other assets	4,293	6,322
Total assets	1,033,008	1,214,715
CURRENT LIABILITIES
Accounts payable	820,308	692,923
Accounts payable — related parties	35,287	0
Accrued expenses	694,892	554,978
Deferred income	6,040	9,989
Notes payable	94,095	231,540
Note payable - related parties	66,000
Current maturities of convertible debt, net of unamortized discounts	1,163,936	782,941
Current maturities of convertible debt - related parties, net of unamortized discounts	42,114
Current maturities of capital lease obligations	0	23,308
Total current liabilities	2,922,672	2,295,679
Convertible debt, non-current, net of unamortized discounts	1,291,218	250,000
Convertible debt, non-current - related parties, net of unamortized discounts	83,041
Other liabilities	0	3,607
Total liabilities	4,296,931	2,549,286
STOCKHOLDERS’ DEFICIT
Common stock, $.001 par value; 125,000,000 shares authorized, 70,196,678 and 65,699,753 shares issued and outstanding	70,197	65,700
Additional paid-in capital	25,636,202	23,581,453
Accumulated deficit	(29,390,991)	(25,402,448)
Total stockholder's deficit	(3,263,923)	(1,334,571)
Total liabilities and stockholder's deficit	1,033,008	1,214,715
SeriesA Convertible Preferred [Member]
STOCKHOLDERS’ DEFICIT
Preferred Stock, Value, Issued	669	724
Series B Convertible Preferred [Member]
STOCKHOLDERS’ DEFICIT
Preferred Stock, Value, Issued	$ 420,000	$ 420,000