LOT78, INC.

CIK:0001444275|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]
Revenue, net	$ 225,983	$ 92,591	$ 985,957	$ 302,045
Cost of sales	235,247	69,082	748,152	246,239
Gross Profit	(9,264)	23,509	237,805	55,806
Expenses
Selling, general and administrative expenses	253,094	164,632	975,489	557,275
Foreign currency transaction adjustment		4,760		4,760
Depreciation and amortization	1,914	1,063	5,145	3,172
Total expenses	255,008	170,455	980,634	565,207
Other income (expense)
Interest expense	(11,973)	(7,641)	(46,007)	(28,014)
Gain on debt forgiveness				56,421
Gain on derivative liabilities	71,536		356,010
Total other income (expense)	59,563	(7,641)	310,003	28,047
Net loss	(204,709)	(154,587)	(432,826)	(480,994)
Foreign currency translation adjustments	(31,254)	20,133	(64,830)	107,588
Comprehensive (loss)	$ (253,963)	$ (134,454)	$ (497,656)	$ (373,406)
Basic and diluted loss per share	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average shares of common stock outstanding - basic	237,746,579	232,650,173	237,597,267	184,085,466

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities
Net loss	$ (432,826)	$ (480,994)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	1,855	297
Amortization	2,952	2,875
Gain on debt forgiveness		(56,421)
Gain on derivative liabilities	(356,010)
Debt discount amortization	338
Stock based compensation	26,306
Change in operating assets/liabilities:
Accounts receivable	(63,032)	86,928
Prepaid expenses and other current assets	(8,176)	32,724
Inventory	7,558	(35,582)
Accounts payable and accrued expenses	278,996	(38,719)
Net cash (used in) provided by operating activities	(542,039)	(488,892)
Cash flows from investing activities
Purchase of property and equipment	(2,849)
Cash acquired in reverse merger		28,964
Net cash used in investing activities	(2,849)	28,964
Cash flows from financing activities
Proceeds from share sales		325,000
Proceeds from issuance of debt - related parties	277,486	344,313
Repayment of convertible debt to shareholders	(41,018)	(88,232)
Change in bank overdraft		(109,714)
Repayment of shareholder loans		(67,165)
Change in revolving facility	94,921
Net cash flows provided by financing activities:	331,389	404,202
Effect of foreign currency on cash and cash equivalents	19,144	56,675
Net increase (decrease) in cash	(194,355)	949
Cash - beginning of period	274,312
Cash - end of period	79,957	949
Cash paid for interest	46,006	17,285
Cash paid for income taxes
Supplemental Non-Cash Information
Acquisition of Bold Energy Inc.		$ 47,945

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 79,957	$ 274,312
Accounts receivable	204,714	132,422
Prepaid expenses and other current assets	19,113	63,735
Inventory, net	113,640	61,460
Total current assets	417,424	531,929
Property and equipment, net	4,839	3,614
Patents, net	20,655	22,457
Total assets	442,918	558,000
Current liabilities:
Accounts payable and accrued liabilities	571,346	280,535
Accounts payable; related party	58,065	26,850
Factoring credit facility	93,468
Debt due to related parties	464,864	169,428
Derivative liabilities	78,454	434,464
Convertible debt due to shareholders	90,179	124,610
Due to shareholders	340,687	322,594
Total current liabilities	1,697,063	1,358,481
Long term debt due to shareholders	331,161	313,813
Convertible debt, net of discount of $437,365 and $437,500	12,838	12,500
Total long term liabilities	343,999	326,313
Total liabilities	2,041,062	1,684,794
Stockholders' deficit
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value per share, 350,000,000 shares authorized, 238,126,950 and 237,403,616 shares issued and outstanding	238,127	237,404
Additional paid-in capital	890,923	865,340
Accumulated other comprehensive income (loss)	(22,696)	42,134
Accumulated deficit	(2,704,498)	(2,271,672)
Total stockholders' deficit	(1,598,144)	(1,126,794)
Total liabilities and stockholders' deficit	$ 442,918	$ 558,000