LTS Nutraceuticals, Inc.

CIK:0001469114|SEC Filings

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
Condensed Consolidated Statements of Operations (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Gross sales	$ 1,642,651	$ 249,761	$ 2,586,515	$ 997,657
Reserve for rebates and promotional allowances	446,051	0	828,125	0
Net Sales	1,196,600	249,761	1,758,390	997,657
Cost of sales	718,005	76,673	1,090,273	525,079
Gross Profit	478,595	173,088	668,117	472,578
Operating expenses:
Entrepreneur incentives	274,398	35,854	578,553	305,192
Selling, general and administrative expenses	908,504	217,085	2,232,356	530,823
Total operating expenses	1,182,902	252,939	2,810,909	836,015
Loss from Operations	(704,307)	(79,851)	(2,142,792)	(363,437)
Other Expense:
Change in fair value of derivative liability	(281,230)	0	(286,136)	0
Interest expense	(130,213)	(46,482)	(530,537)	(107,798)
Total Other Expense	(411,443)	(46,482)	(816,673)	(107,798)
Net Loss	$ (1,115,750)	$ (126,333)	$ (2,959,465)	$ (471,235)
Net loss per common share - basic and diluted (in dollars per share)	$ (0.03)	$ (0.01)	$ (0.08)	$ (0.02)
Weighted average number of common shares outstanding during the period - basic and diluted (in shares)	42,100,000	21,708,099	36,171,496	21,427,981

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Condensed Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,959,465)	$ (471,235)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	159,569	20,891
Amortization of debt issuance costs	87,130	8,473
Depreciation and amortization	28,973	4,786
Change in fair value of derivative liability	286,136	0
Stock based compensation	12,594	0
Changes in operating assets and liabilities:
Accounts receivable	(712,065)	0
Inventories	(162,109)	(13,452)
Prepaid expenses and other current assets	(246,495)	(67,404)
Increase (decrease) in:
Accounts payable	153,999	136,502
Accrued expenses	343,332	21,449
Accrued interest	284,587	78,435
Accrued rebate liability	672,265	0
Deferred revenue	31,495	(29,680)
Net Cash Used In Operating Activities	(2,020,054)	(311,235)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in restricted cash	(873,747)	0
Cash paid to purchase property and equipment	(72,577)	0
Net Cash Used in Investing Activities	(946,324)	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable	3,420,525	320,000
Payment of debt issuance costs	(56,000)	(15,000)
Purchase and retirement of treasury stock	(65,000)	0
Net Cash Provided By Financing Activities	3,299,525	305,000
Net Increase (Decrease) in Cash and Cash Equivalents	333,147	(6,235)
Cash and Cash Equivalents - Beginning of Period	53,855	31,460
Cash and Cash Equivalents - End of Period	387,002	25,225
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest	0	0
Taxes	0	0
SUPPLIMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of Series C Preferred Stock in connection with reverse merger	158	0
Issuance of common stock in connection with reverse merger	176	0
Accrued licensing fee	800,000
Effect of recapitalization	39,818	0
Conversion of accrued interest into convertible notes payable	63,153	0
Conversion of notes payable into convertible notes payable	1,606,128	0
Issuance of common stock and stock options in connection with notes payable extension	0	253,293
Common stock subscription applied against accrued interest	0	4,752
Application of accrued interest to note payable principle balances	0	66,698
Cancellation of Series A convertible preferred stock in connection with note payable extension	$ 0	$ 534

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 387,002	$ 53,855
Restricted cash	873,747	0
Accounts receivable	720,377	8,312
Inventories	229,277	67,168
Prepaid expenses and other current assets	383,084	136,589
Deferred loan costs	33,346	64,476
Total Current Assets	2,626,833	330,400
Property and equipment - net	73,142	13,982
Intangible asset - net	784,444	0
Total Assets	3,484,419	344,382
Liabilities and Stockholders' Deficiency
Accounts payable	457,133	303,134
Accrued expenses	548,944	205,612
Accrued interest	273,808	52,374
Accrued rebate liability	672,265	0
Deferred revenue	35,039	3,544
Derivative liabilities	286,136	0
Current portion of convertible debentures	70,000	0
Total Current Liabilities	2,343,325	564,664
Convertible debentures	200,000	270,000
Accrued licensing fee	800,000	0
Convertible notes payable, net of debt discount of $0 and $159,569, respectively	4,690,376	1,047,129
Total Liabilities	8,033,701	1,881,793
Stockholders' Deficiency:
Preferred Stock	0	0
Common stock, ($0.00001 par value, 250,000,000 shares authorized, 42,100,000 and 24,159,200 shares issued and outstanding, respectively)	421	242
Additional paid in capital	276,639	329,066
Accumulated deficit	(4,826,342)	(1,866,877)
Total Stockholders' Deficiency	(4,549,282)	(1,537,411)
Total Liabilities and Stockholders' Deficiency	3,484,419	344,382
Convertible Series C Preferred Stock [Member]
Stockholders' Deficiency:
Preferred Stock	$ 0	$ 158