ACTIVECARE, INC.

CIK:0001429896|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Chronic illness monitoring supplies revenues	$ 1,037,179	$ 1,858,926	$ 4,311,955	$ 4,972,196
Chronic illness monitoring fee revenues	159,025	317,156	599,339	888,453
Total Chronic illness monitoring revenues	1,196,204	2,176,082	4,911,294	5,860,649
Cost of revenues:
Chronic illness monitoring supplies cost of revenues	733,143	1,269,828	3,054,086	3,878,972
Chronic illness monitoring fee cost of revenues	114,954	112,486	319,184	358,436
Total Chronic illness monitoring cost of revenues	848,097	1,382,314	3,373,270	4,237,408
Gross profit	348,107	793,768	1,538,024	1,623,241
Operating expenses:
Selling, general and administrative (including $1,461,457, $1,004,211, $2,101,037 and $3,257,614, respectively, of stock-based compensation)	3,225,054	2,169,603	6,382,027	6,944,098
Research and development	56,191	57,611	307,137	139,023
Total operating expenses	3,281,245	2,227,214	6,689,164	7,083,121
Loss from operations	(2,933,138)	(1,433,446)	(5,151,140)	(5,459,880)
Other income (expense):
Interest expense, net	(2,198,631)	(813,517)	(6,856,258)	(1,935,486)
Loss on settlement	(750,000)		(750,000)
Gain on derivatives liability	64,145	5,603,411	230,163	2,796,542
Loss on extinguishment of debt		(15,393)	(2,499,212)	(3,058,809)
Gain on disposal of property and equipment				245
Gain on liability settlements		8,859		295,099
Loss on induced conversions of debt				(379,132)
Other income	2,614		2,614
Total other income (expense)	(2,881,872)	4,783,360	(9,872,693)	(2,281,541)
Net income (loss)	(5,815,010)	3,349,914	(15,023,833)	(7,741,421)
Deemed dividends on redemption of preferred stock				(6,484,236)
Dividends on preferred stock	(58,978)	(45,781)	(127,335)	(699,250)
Net loss attributable to common stockholders	$ (5,873,988)	$ 3,304,133	$ (15,151,168)	$ (14,924,907)
Net loss per common share - basic	$ (24.77)	$ 15.18	$ (64.81)	$ (81.57)
Net loss per common share - diluted	$ (24.77)	$ (3.78)	$ (64.81)	$ (82.78)
Weighted average common shares outstanding - basic	237,100	217,595	233,767	182,979
Weighted average common shares outstanding - diluted	237,100	260,266	233,767	201,928

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (15,023,833)	$ (7,741,421)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discounts	4,081,912	904,115
Loss on extinguishment of debt	2,499,212	3,058,809
Stock-based compensation expense	1,705,975	2,801,432
Loss on settlement	750,000
Stock and warrants issued and accrued for services	395,062	456,182
Increase in note payable principal recorded as interest expense to convert accounts payable into notes payable	482,500
Stock accrued for interest expense	144,000
Depreciation and amortization	33,643	39,353
Gain on derivatives liability	(230,163)	(2,796,542)
Gain on disposal of property and equipment		(245)
Loss on induced conversions of debt		379,132
Gain on liability settlements		(295,099)
Changes in operating assets and liabilities:
Change in accounts receivable	(241,844)	(44,459)
Change in inventory	(297,033)	414,110
Change in prepaid expenses and other	815,799	(178,053)
Change in accounts payable	2,470,310	(732,265)
Change in accrued liabilities	1,796,360	931,492
Net cash used in operating activities	(618,100)	(2,803,459)
Cash flows from investing activities:
Proceeds from sale of property and equipment		600
Purchases of property and equipment	(2,818)	(5,004)
Investment in contingent note receivable	(500,000)
Net cash used in investing activities	(502,818)	(4,404)
Cash flows from financing activities:
Proceeds from issuance of notes payable, net	4,421,489	5,709,287
Proceeds from issuance of related-party notes payable, net		250,000
Proceeds from issuance of warrants in connection with notes payable		2,967
Principal payments on related-party notes payable	(28,441)	(7,795)
Principal payments on notes payable	(3,325,427)	(3,175,603)
Net cash provided by financing activities	1,067,621	2,778,856
Net decrease in cash	(53,297)	(29,007)
Cash, beginning of the period	167,737	172,436
Cash, end of the period	114,440	143,429
Supplemental Cash Flow Information:
Cash paid for interest	379,589	191,943
Non-Cash Investing and Financing Activities:
Issuance of warrants to purchase shares of common stock for loan origination fees	2,103,341	201,058
Accrual of a liability to issue warrants to purchase shares of common stock for loan forbearance fees	148,677
Accrual of a liability to issue shares of common stock for loan origination fees	125,000
Dividends on preferred stock	127,335	699,250
Accrual of a liability to issue shares of common stock for loan forbearance fees	$ 60,000
Deemed dividend on the redemption of preferred stock and accrued dividends for notes payable, common stock and exchange of warrants		6,484,236
Conversion of accounts payable and accrued liabilities to notes payable		2,555,189
Assignment of related-party notes payable to an unrelated third party		263,082
Issuance of shares of common stock for consulting services		227,500
Accrual of a liability to issue warrants to purchase shares of common stock for loan origination fees		130,246
Cancellation and reissuance of shares of common stock		121,250
Conversion of related-party accounts payable and accrued liabilities to related-party notes payable		84,404
Issuance of shares of common stock for related-party loan origination fee		70,000
Issuance of shares of common stock for loan extension fees		31,250
Accrual of a liability to issue shares of common stock for loan amendment fees		28,500
Issuance of shares of common stock for dividends		12,434
Accrual of a liability to issue shares of common stock for services		$ 7,600

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Sep. 30, 2016
Current assets:
Cash	$ 114,440	$ 167,737
Accounts receivable, net	643,857	487,001
Inventory	501,769	204,736
Note receivable	500,000
Prepaid expenses and other	56,555	644,857
Total current assets	1,816,621	1,504,331
Property and equipment, net	56,445	86,734
Deposits and other assets	12,970	17,846
Domain name, net	8,759	9,295
Total assets	1,894,795	1,618,206
Current liabilities:
Accounts payable	3,453,795	1,700,448
Accounts payable, related party	242,568	291,753
Accrued expenses	7,765,437	2,101,711
Contingent liabilities	750,000
Current portion of notes payable	9,501,544	3,722,899
Notes payable, related party	3,869,683	3,898,124
Dividends payable	733,880	606,545
Derivatives liability	4,231,983	2,054,071
Total current liabilities	30,548,890	14,375,551
Notes payable, net of current portion	5,889,170	7,353,856
Total liabilities	36,438,060	21,729,407
Stockholders' deficit:
Preferred stock, $.00001 par value: 10,000,000 shares authorized; 45,000 shares of Series D; 70,070 shares of Series E; and 43,220 and 0 shares of Series G issued and outstanding, respectively	2	1
Common stock, $.00001 par value: 200,000,000 shares authorized; 239,100 and 232,100 shares outstanding, respectively	2	2
Additional paid-in capital, common and preferred	88,786,513	88,067,410
Accumulated deficit	(123,329,782)	(108,178,614)
Total stockholders' deficit	(34,543,265)	(20,111,201)
Total liabilities and stockholders' deficit	$ 1,894,795	$ 1,618,206