AMBICOM HOLDINGS, INC

CIK:0001444310|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Revenue	$ 6,350	$ 36,036	$ 12,785	$ 138,775
Cost of revenue	32	26,586	23,992	121,014
Gross (loss) profit	6,318	9,450	(11,207)	17,761
Operating Expenses
General and administrative	604,147	680,287	1,205,432	1,471,033
Sales and marketing	0	66,735	12,910	82,346
Research and development	23,682	121,995	127,576	237,024
Impairment of intangibles	4,243,747	0	4,243,747	0
Total operating expenses	4,871,576	869,017	5,589,665	1,790,403
Loss from operations	(4,865,258)	(859,567)	(5,600,872)	(1,772,642)
Other income (expense)
Other income	100,000	44,387	100,000	44,387
Change in fair value of derivative liabilities	(92,462)	0	57,498	0
Interest expense	(227,557)	(7,827)	(561,569)	(8,769)
Net loss	$ (5,085,277)	$ (823,007)	$ (6,004,943)	$ (1,737,024)
Net loss per share, basic and diluted (in dollars per share)	$ (0.289)	$ (0.019)	$ (0.489)	$ (0.049)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	17,858,294	43,959,237	12,288,836	35,369,442

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Cash flows from operating activities:
Net loss	$ (6,004,943)	$ (1,737,024)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation	19,128	17,816
Amortization of intangible assets	401,159	374,298
Stock-based compensation expense	103,671	129,204
Stock-based compensation expense related to issuance of Prefered C Stock	18,500	0
Stock-based compensation expense related to issuance of Prefered D Stock	23,000	0
Change in fair value of derivative liabilities	(57,498)	0
Non-cash interest expense relating to convertible debt and amortization of debt discount	345,952	6,667
Issuance of common stock in exchange for consulting services	3,500	77,500
Issuance of common stock to advisory board	2,320	189,400
Provision for bad debt	23	192
Provision for inventory	23,992	(5,806)
Intangible assets impairment charge	4,243,747	0
Changes in operating assets and liabilities:
Accounts receivable	(3,350)	(11,805)
Inventory	0	38,779
Prepaid expenses and other assets	33,829	(12,477)
Accounts payable and accrued liabilities	280,292	137,212
Deferred revenue	15,699	16,083
Security deposit	20,695	0
Net cash used in operating activities	(415,288)	(731,254)
Cash flows from financing activities:
Proceeds from issuance of convertible debt	211,000	134,000
Payments on convertible debt	(64,000)
Proceeds from sale of common stock	0	119,998
Payments on capital Leases	(8,496)	(11,634)
Payments on note payable (Auto Loan)	(3,397)	(6,603)
Proceeds from issuance of notes payable	300,000	0
Payments on notes payable	(72,841)
Net cash provided by financing activities	362,266	235,761
Net decrease in cash and cash equivalents	(53,022)	(495,493)
Cash and cash equivalents, beginning of period	53,452	523,540
Cash and cash equivalents, end of period	430	28,047
Supplemental information:
Interest paid	217,226	8,769
Noncash investing and financing activities:
Fixed assets acquired pursuant to capital leases	0	93,294
Embedded derivative liabilities issued in connection with convertible debt	211,000	102,000
Issuance of common stock in connection with convertible debt	0	42,000
Conversion of preferred stock, Series A, to common stock	0	10,000
6% dividend for preferred stock Series B holders issued in common stock	0	126
Conversion of debt into common stock	326,155	0
Release of auto loan liability	(56,856)	0
Write of net balance of automobile	$ (58,000)	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jan. 31, 2016	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 430	$ 53,452
Accounts receivable, net of allowance for doubtful accounts of $311 and $288 as of January 31, 2016, and July 31, 2015, respectively	5,178	1,851
Inventory, net of allowance of $29,249 and $5,271 as of January 31, 2016, and July 31, 2015, respectively	1,537	25,529
Prepaid expenses and other current assets	76,964	136,202
Total current assets	84,109	217,034
Property and equipment, net	77,967	154,998
Deposits	0	20,695
Intangible assets, net	0	4,644,906
Total assets	162,076	5,037,633
Current liabilities:
Accounts payable and accrued liabilities	815,026	458,134
Deferred revenue	147,756	132,056
Capital lease obligations - current portion	18,124	20,952
Notes payable - current portion	277,159	65,688
Convertible debt, net of debt discount - current portion	407,073	193,559
Derivative liabilities - current portion	630,966	567,314
Advance from development partner	180,635	180,635
Total current liabilities	2,476,739	1,618,338
Capital lease obligations - net of current portion	52,007	57,675
Notes payable - net of current portion	0	45,709
Convertible debt, net of debt discount - net of current portion	23,148	36,169
Derivative liabilities - net of current portion	4,977	314,679
Total liabilities	$ 2,556,871	$ 2,072,570
Commitments and contingencies (Note 5)
Convertible redeemable preferred stock, Series B, $0.008 par value 325,000 shares authorized; 262,475 shares issued and outstanding at January 31, 2016 and July 31, 2015. (Liquidation preference $2,600,000) - (Note 11)	$ 262,475	$ 262,475
Stockholders' equity:
Common stock, $0.008 par value; 700,000,000 shares authorized; 32,230,683 and 5,599,912 shares issued and outstanding at January 31, 2016 and July 31, 2015, respectively	2,578,452	447,991
Additional paid in capital	16,320,843	17,834,719
Accumulated deficit	(21,585,065)	(15,580,122)
Total stockholders' (deficit) equity	(2,657,270)	2,702,588
Total liabilities and stockholders' equity	162,076	5,037,633
Series C Preferred Stock [Member]
Stockholders' equity:
Preferred stock	18,500	0
Series D Preferred Stock [Member]
Stockholders' equity:
Preferred stock	$ 10,000	$ 0