T3 Motion, Inc.

CIK:0001434589|SEC Filings

NOTE 1 - DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Earnings per Share (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings per Share [Abstract]
Net income (loss) (in Dollars)	$ (4,295,330)	$ (1,888,538)	$ 6,382,692	$ (4,987,273)
Basic and diluted	22,073,603	12,906,027	18,177,048	12,890,368
Basic and diluted (in Dollars per share)	$ (0.19)	$ (0.15)	$ 0.35	$ (0.39)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 6,382,692	$ (4,987,273)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	45,658	148,782
Warranty expense	51,874	73,118
Bad debt expense	3,228
Share-based compensation expense	388,898	548,033
Change in fair value of derivative liabilities	(13,066,130)	(126,530)
Amortization of debt discounts and deferred financing fees	3,489,752	226,077
Estimated fair value of derivative liabilities in excess of face value of the senior convertible debentures, net of imputed interest	736,885
Incremental cost related to modification of warrants		498,686
Change in operating assets and liabilities:
Restricted cash	10,000
Accounts receivable	(288,856)	(22,431)
Inventories	(59,437)	15,368
Prepaid expenses and other current assets	17,386	(8,222)
Accounts payable and accrued expenses	(337,508)	820,633
Net cash used in operating activities	(2,625,558)	(2,813,759)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings on related party bridge loan	150,000
Repayments of related party bridge loan	(20,000)
Proceeds from notes payable		735,000
Payment of financing fees		(4,013)
Net borrowings on secured line of credit	735,000
Proceeds from senior convertible debentures	500,000
Proceeds from exercise of common stock warrants	2,650
Net cash provided by financing activities	1,367,650	730,987
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,257,908)	(2,082,772)
CASH AND CASH EQUIVALENTS — beginning of period	1,293,136	2,184,939
CASH AND CASH EQUIVALENTS — end of period	35,228	102,167
Cash paid during the period for:
Interest	109,315	101,997
Income taxes	1,919	3,150
Supplemental disclosure of non cash investing and financing activities:
Deferred financing fees deducted from proceeds of borrowings on secured line of credit	15,000
Accrued financing fees payable in common stock		26,250
Deferred financing fees included in prepaid expenses		15,000
Common stock subscribed but unissued in connection with senior convertible debenture offering recorded as a debt discount	20,000
Debt discount and derivative liabilities related to embedded conversion feature and warrants recorded upon issuance of debt and warrants		386,585
Common stock issued in connection with senior convertible debenture offering recorded as a debt discount	57,500
Debt discount related to estimated fair value of warrants and conversion features issued in connection with senior convertible debentures	372,500
Issuance of common stock upon conversion of senior convertible debentures	456,500
Reclassification of conversion feature derivative liabilities upon conversion of senior convertible debentures	$ 136,072

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 35,228	$ 1,293,136
Restricted cash	0	10,000
Accounts receivable, net	823,942	538,314
Inventories	1,218,878	1,159,441
Prepaid expenses and other current assets	398,572	679,235
Total current assets	2,476,620	3,680,126
Property and equipment, net	28,973	74,631
Total assets	2,505,593	3,754,757
Current liabilities:
Accounts payable	1,161,164	1,162,917
Accrued expenses	429,765	713,646
Derivative liabilities	4,693,052	16,735,869
Secured line of credit	750,000
Current portion of notes payable, related parties	130,000	1,000,000
Current portion of senior convertible debentures, net of discount		405,508
Total current liabilities	7,163,981	20,017,940
Notes payable, related parties, net of current portion	1,000,000
Senior convertible debentures, net of discount and current portion	3,160,483
Total liabilities	11,324,464	20,017,940
Stockholders’ deficit:
Series A convertible preferred stock, $0.001 par value; 20,000,000 shares authorized; none outstanding at September 30, 2013 and December 31, 2012	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized; 22,100,777 and 15,296,777 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	22,102	15,297
Common stock subscribed but unissued	20,000	647,625
Additional paid-in capital	61,166,737	59,484,297
Accumulated deficit	(70,032,079)	(76,414,771)
Accumulated other comprehensive income	4,369	4,369
Total stockholders’ deficit	(8,818,871)	(16,263,183)
Total liabilities and stockholders’ deficit	$ 2,505,593	$ 3,754,757