SOUPMAN, INC.

CIK:0001475273|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Revenue
Soup sales - net	$ 782,059	$ 779,842	$ 1,792,724	$ 1,352,139
Franchise sales - net		104,819		206,250
Franchise royalties	45,750	47,476	84,251	95,410
Total revenue	827,809	932,137	1,876,975	1,653,799
Cost of sales	608,828	831,777	1,407,544	1,229,127
Gross profit	218,981	100,360	469,431	424,672
Operating expenses:
General and administrative	1,155,676	942,602	2,242,601	1,635,824
Royalty	29,843	28,913	66,663	47,162
Total operating expenses	1,185,519	971,515	2,309,264	1,682,986
Loss from operations	(966,538)	(871,155)	(1,839,833)	(1,258,314)
Other income (expense)
Interest expense	(714,376)	(24,036)	(1,389,150)	(124,696)
Gain (loss) on settlement of debt		48,112	61,939	(227,130)
Change in fair value of derivative liabilities	510,364	56,714	1,507,480	179,361
Loss on debt extinguishment		(654,913)		(654,913)
Total other income (expense)	(204,012)	(574,123)	180,269	(827,378)
Net loss including non-controlling interest	(1,170,550)	(1,445,278)	(1,659,564)	(2,085,692)
Net (income) loss attributable to noncontrolling interest	2,367	30,229	(1,290)	55,431
Net loss attributable to Soupman	(1,172,917)	(1,475,507)	(1,658,274)	(2,141,123)
Deemed dividend on preferred stock		(3,280,151)		(3,280,151)
Net loss attributable to common stockholders	$ (1,172,917)	$ (4,755,658)	$ (1,658,274)	$ (5,421,274)
Net loss per share, basic	$ 0.00	$ (0.06)	$ (0.01)	$ (0.07)
Net loss per share, diluted	$ 0.00	$ (0.06)	$ (0.01)	$ (0.07)
Weighted average shares outstanding, basic	252,389,321	75,111,600	241,683,446	73,694,560
Weighted average shares outstanding, diluted	252,389,321	75,111,600	241,683,446	73,694,560

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Cash Flows From Operating Activities:
Net loss	$ (1,659,564)	$ (2,085,692)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	1,388	2,367
Amortization of intangibles		1,577
Amortization of debt discount	996,137
Bad debt expense		1,196
Stock based compensation		212,958
Common and Series B preferred stock issued for services	309,851	50,853
Common stock issued for inducement to settle debt		120,000
Excess of fair market value of common stock over share issuance price to settle debt		520,163
Excess of fair market value of Series B over share issuance price to settle debt		134,750
Change in fair market value of derivative liabilities	(1,507,480)	(179,361)
Fair value of warrants issued for services	286,094
(Gain) loss on settlement of debt and accrued liabilities	(61,939)	107,130
Due from other		(115,000)
(Increase) decrease in:
Accounts receivable	(133,015)	(261,110)
Accounts receivable - related party		(43,670)
Inventory	(484,788)	142,968
Prepaid expenses	70,222	15,267
Increase (decrease) in:
Accounts payable and accrued liabilities	688,713	145,951
Accounts payable and accrued liabilities - related parties		5,735
Deferred franchising revenue	(24,501)	59,763
Net Cash Used in Operating Activities	(1,518,882)	(1,164,155)
Cash Flows From Investing Activities:
Due from franchisee (Hanover, GCT and DNV food)	(7,677)	(38,935)
Net Cash Used in Investing Activities	(7,677)	(38,935)
Cash Flows From Financing Activities:
Net proceeds from issuance of notes	435,558	70,000
Proceeds from issuance of Series B preferred stock for cash		949,800
Repayment of debt and accrued interest in cash	(310,362)	(215,380)
Net Cash Provided by Financing Activities	125,196	804,420
Net decrease in cash	(1,401,363)	(398,670)
Cash at beginning of year	1,424,544	611,354
Cash at end of period	23,181	212,684
Supplemental disclosures of cash flow information:
Cash paid for interest	62,979
Cash paid for taxes
Supplemental disclosures of non-cash investing and financing activities:
Debt and accrued interest converted to common stock	17,900
Debt and accrued interest converted to Series B Preferred Stock	102,369	1,100,000
Conversion of Series B Preferred Stock to common stock	25,436
Debt converted to Series A preferred stock
Reclassification of short term debt to long term debt		755,000
Reclasssification of accrued interest to debt		444,758
Common stock issued as an inducement to settle debt		445,946
Reclassification of accrued commissions to debt		12,500
Conversion of Series B preferred stock Series C preferred stock		1,725
Conversion of Series A preferred stock to common stock		$ 3

Condensed Consolidated Balance Sheets - USD ($)	Feb. 28, 2017	Aug. 31, 2016
Current Assets
Cash	$ 23,181	$ 1,424,544
Accounts receivable - net	454,362	321,347
Inventory	771,592	286,804
Prepaid expenses	38,471	108,693
Total Current Assets	1,287,606	2,141,388
Property and equipment - net	3,035	4,423
Other Assets
Due from franchisees	60,628	52,951
Other	20,161	20,161
Total Other Assets	80,789	73,112
Total Assets	1,371,430	2,218,923
Current Liabilities
Accounts payable and accrued liabilities	4,646,250	3,990,306
Current portion of convertible debt - net of discount ($0 and $320)	106,000	130,680
Current portion of demand debt - net of discount ($4,764 and $4,731)	3,654,654	3,701,496
Deferred revenue	133,012	157,513
Derivative liabilities	2,103,071	3,311,580
Total Current Liabilities	10,642,987	11,291,575
Long Term Liabilities
Convertible debt - net of discount ($2,200,855 and $3,173,333)	1,279,145	186,667
Total Long Term Liabilities	1,279,145	186,667
Total Liabilities	11,922,132	11,478,242
Stockholders' Deficit
Preferred stock
Common stock, par value $0.001; 500,000,000 shares authorized, 261,388,744 and 221,904,924 issued and outstanding	261,388	221,905
Additional paid in capital	22,629,014	22,298,089
Accumulated deficit	(32,776,726)	(31,118,452)
Total Stockholders' Deficit	(9,875,515)	(8,585,422)
Noncontrolling interest	(675,187)	(673,897)
Total Deficit	(10,550,702)	(9,259,319)
Total Liabilities and Stockholders' Deficit	1,371,430	2,218,923
Series A Convertible Preferred Stock [Member]
Stockholders' Deficit
Preferred stock	879	879
Series B Convertible Preferred Stock [Member]
Stockholders' Deficit
Preferred stock	8,204	10,431
Series C Convertible Preferred Stock [Member]
Stockholders' Deficit
Preferred stock	1,725	1,725
Series D Convertible Preferred Stock [Member]
Stockholders' Deficit
Preferred stock	$ 1	$ 1