Texas Gulf Energy Inc

CIK:0001429627|SEC Filings

Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2014

Note 7 – Earnings (Loss) Per Share

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the nine months ended September 30, 2014 includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock or convertible debt. Dilutive securities for the nine months ended September 30, 2014 included 10,000,000 shares of the Company’s Series B Preferred Stock, which are convertible into 58,823,529 shares of Common Stock, and a convertible note in the principal amount of $362,622, which is convertible into 3,021,850 shares of Common Stock, at a conversion price of $0.12, each of which could have a dilutive effect on loss per share. However, in periods in which losses are reported, the weighted-average number of shares outstanding excludes equivalents because their inclusion would be anti-dilutive.

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities
Loss from continuing operations	$ (1,561,140)	$ (2,204,274)
Income from discontinued operations	0	1,204,963
Net loss	(1,561,140)	(999,311)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	150,357	482,561
Bad debt expense	94,759	0
Stock based compensation	187,500	559,755
Changes in working capital accounts:
Accounts receivables	1,765,017	1,186,960
Federal income taxes payable	(151,506)	(188,522)
Prepaid expenses and other assets	333,757	223,146
Accounts payable	(577,515)	81,039
Deferred tax asset	358,952	(115,000)
Accrued liabilities	(36,719)	(570,317)
Deferred tax liability	0	(29,000)
Due to related parties	0	(167,814)
Net cash provided by operating activities	563,462	463,497
Cash flows from investing activities
Purchase of property and equipment	(1,611)	(39,102)
Net cash used in investing activities	(1,611)	(39,102)
Cash flows from financing activities
Proceeds (repayments) of loans	(221,295)	250,945
Proceeds (repayments) of lines of credit, net	(561,321)	(585,839)
Net cash used in financing activities	(782,616)	(334,894)
Net change in cash and cash equivalents	(220,765)	89,501
Cash and cash equivalents:
Beginning	339,685	394,306
Ending	118,920	483,807
Supplemental disclosures of cash flow information
Cash payments (receipts) for: Interest expense	30,874	244,797
Cash payments (receipts) for: Federal income tax	(190,975)	0
Non-cash transactions:
Issuance of common stock for payment of accounts payable	0	177,952
Conversion of note payable and accrued interest to common stock	$ 223,452	$ 0

Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 118,920	$ 339,685
Accounts receivable, net	385,582	2,245,358
Deferred federal income tax - current	0	313,841
Federal income tax receivable	17,207	0
Prepaid expenses and other current assets	144,676	329,686
Total current assets	666,385	3,228,570
Property and equipment, net	221,470	370,216
Other assets	108,690	257,437
Deferred federal income tax - non current	0	45,111
Total assets	996,545	3,901,334
Current liabilities:
Accounts payable	339,731	917,351
Accrued liabilities	135,226	171,945
Due to related parties, net	25,657	25,657
Federal income tax payable	0	134,298
Lines of credit	153,638	714,959
Notes payable	172,309	393,604
Convertible debt (current portion)	362,622	223,349
Total current liabilities	1,189,183	2,581,163
Convertible debt (non-current portion)	0	362,622
Total liabilities	1,189,183	2,943,785
Commitments and Contingencies
Stockholders’ equity (deficit):
Common stock, $.00001 par value per share; 500,000,000 shares authorized; 54,968,405 and 50,977,165 shares issued and outstanding as of September 30, 2014 and as of December 31, 2013, respectively	550	510
Additional paid in capital	1,615,472	1,204,559
Accumulated deficit	(1,808,760)	(247,620)
Total stockholders’ equity (deficit)	(192,638)	957,549
Total liabilities and stockholders’ equity (deficit)	996,545	3,901,334
Series B Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock - par value of $.00001; 100,000,000 shares authorized; Series B convertible preferred stock 10,000,000 shares issued and outstanding	$ 100	$ 100