DNA BRANDS INC

CIK:0001419995|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements Of Operations
Sales, net	$ 48,073	$ 37,948
Cost of goods sold	37,057	39,127
Gross margin (deficit)	11,016	(1,179)
Operating expenses
Compensation and benefits	265,638	241,734
Depreciation expense	2,028	2,197
General and administrative expenses	91,948	122,088
Professional and outside services	229,905	193,099
Selling and marketing expenses	35,110	27,761
Total operating expenses	624,629	586,879
Loss from operations	(613,613)	(588,058)
Income (expense)
Gain on fair value adjustment for derivative liabilities	115,015	106,925
Interest expense	(297,823)	(165,453)
Other income	2,693	0
Total other income (expense)	(180,115)	(58,528)
Loss before income taxes	(793,728)	(646,586)
Income taxes	0	0
Net loss	$ (793,728)	$ (646,586)
Loss per share:
Basic and diluted	$ 0.00	$ (0.01)
Weighted average number of common shares outstanding
Basic and diluted	183,211,402	64,832,425

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net loss	$ (793,728)	$ (646,586)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	2,028	2,197
Gain on conversion options, derivative liabilities	(115,015)	(106,925)
Non-cash interest expense related to discount on convertible subordinated debentures	182,163	117,876
Non-cash interest expense related to loans payable	78,411	0
Allowance for doubtful accounts-includes allowance on employee receivables	2,836	(4,998)
Provision for excess and obsolete inventory	0	8,099
Common stock and common stock warrants issued in exchange for services	0	88,829
Common sotck issued as employee compensation	0	40,000
Share based compensation expense related to employee stock option grants	8,987	8,990
Changes in operating assets and liabilities:
Accounts receivable	1,469	11,097
Inventory	32,539	22,502
Prepaid expenses and other current assets	95,647	28,073
Other assets	0	(6,000)
Bank overdraft	0	(11,042)
Accounts payable	(23,220)	30,871
Accrued expenses	125,283	(8,978)
Net cash used in operating activities	(402,600)	(442,193)
Cash flows from financing activities:
Net proceeds from (repayments on) loans payable to officers	(20)	309,500
Net repayments on loans payable	(1,837)	0
Net repayments on loans payable related party	(25,000)	0
Net proceeds from the issuance of convertible debentures	285,000	0
Net proceeds from the issuance of common stock	193,500	147,500
Net cash provided by financing activities	451,643	457,000
Net change in cash and cash equivalents	49,043	14,807
Cash and cash equivalents at beginning of period	61,336	0
Cash and cash equivalents at end of period	110,379	14,807
Supplemental disclosures:
Interest paid	3,710	13,596
Supplemental disclosures of non-cash investing and financing activities:
Common stock issued in connection with conversion of convertible debentures and accrued interest	104,137	0
Discount on convertible debentures	$ 507,263	$ 0

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
ASSETS
Cash	$ 110,379	$ 61,336
Accounts receivable, net	4,445	8,750
Inventory, net	271,725	304,264
Prepaid expenses and other current assets	41,794	137,441
Total current assets	428,343	511,791
Property and equipment, net	9,772	11,800
Total assets	438,115	523,591
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable	382,636	405,854
Accrued liabilities	1,338,894	1,217,285
Current portion of convertible debentures, net of discount	242,082	445,289
Loans payable, net of discounts	516,786	438,375
Conversion options, derivative liabilities	729,132	336,884
Loans payable to officers	3,757	3,777
Total current liabilities	3,213,287	2,847,464
Convertible, subordinated debentures, net of discounts	234,681	173,875
Loans payable to related party	42,150	67,150
Total liabilities	3,490,118	3,088,489
Commitments and contingencies
Stockholders' deficit
Preferred stock, $0.001 par value, 10,000,000 authorized, 2,100,000 issued and outstanding	2,100	2,100
Common stock, $0.001 par value, 400,000,000 authorized, 213,183,424 and 177,594,187 issued and outstanding, respectively	213,184	177,594
Additional paid-in capital	26,503,409	26,232,375
Accumulated deficit	(29,770,696)	(28,976,967)
Total stockholders' deficit	(3,052,003)	(2,564,899)
Total liabilities and stockholders' deficit	$ 438,115	$ 523,591