Freedom Environmental Services, Inc.

CIK:0001443818|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS {Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues	$ 1,339,486	$ 1,566,224	$ 2,508,311	$ 2,956,729
Total	1,339,486	1,566,224	2,508,311	2,956,729
COST OF SALES	1,194,301	953,447	2,171,227	1,894,468
GROSS PROFITS	145,185	612,777	337,084	1,062,261
OPERATING EXPENSES
General and administrative	471,948	671,481	986,952	1,435,156
Depreciation and amortization expense	11,936	10,097	27,444	20,194
Total operating expenses	483,884	681,578	1,014,396	1,455,350
OPERATING LOSS	(338,699)	(68,801)	(677,312)	(393,089)
OTHER INCOME (EXPENSES)
Other income	38		59
Interest income	48		202
Interest expense	(50,185)	(75,322)	(100,197)	(107,115)
Gain (loss) on disposal of assets				1,995
Fines and penalties	(251)		(1,945)
Total other expenses	(50,350)	(75,322)	(101,881)	(105,120)
NET LOSS	$ (389,049)	$ (144,123)	$ (779,193)	$ (498,209)
NET LOSS PER SHARE:
Basic and diluted	$ 0.00	$ 0.00	$ (0.01)	$ 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and diluted	133,526,767	114,424,927	133,526,767	111,858,189

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (779,193)	$ (498,209)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense	9,316	28,672
Depreciation	234,665	253,306
Amortization	26,862	28,616
Loss (gain) on disposal of assets		(1,995)
Common stock issued for services	5,000	99,350
Changes in operating assets and liabilities:
Accounts receivable	(13,678)	(139,996)
Prepaid expenses and other assets	(16,645)	5,230
Inventory		7,799
Accounts payable	(68,055)	(104,607)
Accrued expenses	97,186	151,690
Accrued interest - related parties	54,910	(3,263)
Customer deposits	36,100
Deferred Liabilitites		42,800
Net cash used in operating activities	(413,532)	(130,607)
CASH FLOWS FROM INVESTING ACTIVITIES:
Deposit for business acquisition		(175,000)
Purchase of equipment	(257,887)	(41,701)
Proceeds from sale of property plant and equipment		26,645
Net cash used in investing activities	(257,887)	(190,056)
CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft	(11,849)	4,786
Proceeds from exercise of warrants		50,000
Proceeds from convertible notes payable	550,000
Proceeds from note payable and line of credit	1,015,162	648,107
Proceeds from note payable - related parties		68,700
Repayment of line of credit	(77,046)
Repayment of note payable	(816,933)	(533,248)
Repayment of note payable - related parties	(13,500)	(14,300)
Net cash provided by financing activities	645,834	224,045
NET INCREASE (DECREASE) IN CASH	(25,585)	(96,618)
CASH, BEGINNING OF PERIOD	73,664	175,134
CASH, END OF PERIOD	48,079	78,516
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	41,827	46,667
NONCASH INVESTING AND FINANCING TRANSACTIONS
Issuance of common stock for the conversion of debt		86,000
Common stock issued for payables	5,000	32,704
Preferred stock issued for accrued compensation payable		17,915
Common stock issued to settle accrued compensation		120,615
Common stock issued for acquisition of equipment		$ 15,240

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash	$ 48,079	$ 73,664
Accounts receivable - net of allowance of $36,550 and $45,030	242,822	238,460
Prepaid Expenses	22,892	6,247
Deposits	176,875	176,875
Total current assets	490,668	495,246
PROPERTY AND EQUIPMENT
Property and equipment, net of accumulated depreciation of $862,184 and $627,519	1,748,297	1,725,075
Total property and equipment	1,748,297	1,725,075
OTHER ASSETS
Intangible asset (client list) , net of accumulated amortization of $80,000 and $60,000	120,000	140,000
Loan costs, net of accumulated amortization of $5,418 and $1,420	2,326	6,324
Total other assets	122,326	146,324
TOTAL ASSETS	2,361,291	2,366,645
CURRENT LIABILITIES
Bank overdraft	24	11,873
Accounts payable	308,146	343,842
Accrued expenses	221,595	124,409
Accrued interest (related parties $16,566 & $33,254)	102,458	47,548
Customer Deposits	36,100
Lines of credit	13,177	90,223
Notes payable - short term	548,600	930,646
Notes payable - current portion of long-term debt	89,995	29,057
Notes payable - related parties	75,000	492,755
Total current liabilities	1,395,095	2,070,353
LONG TERM LIABILITIES
Total long term liabilities	1,723,874	279,777
TOTAL LIABILITIES	3,118,969	2,350,130
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock subscribed, 1,000,000 and 1,000,000 shares as of June 30, 2012 and December 2011, respectively	50,000	50,000
Preferred stock, $0.001 par value, 75,000,000 shares authorized: Series A, Convertible - 5,736,333 issued and outstanding as of June 30, 2012 and December 31, 2011	5,736	5,736
Common stock, $0.001 par value, 200,000,000 shares authorized:133,568,434 and 133,443,434 issued and outsanding as of June 30, 2012 and December 31, 2011, respectively	133,568	133,443
Additional paid-in capital	22,162,322	22,157,447
Accumulated deficit	(23,109,304)	(22,330,111)
Total stockholders' equity	(757,678)	16,515
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,361,291	$ 2,366,645