Crumbs Bake Shop, Inc.

CIK:0001476719|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Mar. 31, 2014	Mar. 31, 2013
Net sales
Product sales	$ 8,998,318	$ 12,079,783
Licensing royalties	85,485	0
Revenue, Net, Total	9,083,803	12,079,783
Cost of sales (exclusive of items shown separately below)	4,046,780	5,356,756
Gross profit	5,037,023	6,723,027
Operating expenses
Selling expenses	383,783	571,308
Staff expenses	3,362,798	3,831,780
Occupancy expenses	3,076,846	2,879,517
General and administrative	844,797	973,170
New store expenses	0	119,557
Depreciation and amortization	664,946	559,498
Loss on impairment of assets	1,390,525	0
Loss on disposal of property and equipment	219,141	37,572
Total operating expenses	9,942,836	8,972,402
Loss from operations	(4,905,813)	(2,249,375)
Other income (expense)
Interest expense	(208,405)	0
Interest and other income	43,330	2,045
Vendor credits	508,562	0
Abandoned projects	(515)	(10,025)
Change in fair value of warrant liability	54,563	(109,126)
Nonoperating Income (Expense)	397,535	(117,106)
Net loss attributable to the controlling and non-controlling interests	(4,508,278)	(2,366,481)
Less: Net loss attributable to non-controlling interests	712,308	391,653
Net loss attributable to stockholders	$ (3,795,970)	$ (1,974,828)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.33)	$ (0.17)
Weighted average number of common shares outstanding, basic and diluted (in shares)	11,630,853	11,547,386

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities
Net loss attributable to the controlling and non-controlling interests	$ (4,508,278)	$ (2,366,481)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	664,946	559,498
Loss on disposal of assets	219,141	37,572
Loss on impairment of assets	1,390,525	0
Abandoned lease projects	0	10,025
Proceeds from disposal of assets	4,000	0
Stock-based compensation	(61,162)	140,980
Stock-based interest payment	162,491	0
Deferred rent	(195,751)	172,153
Change in fair value of warrant liability	(54,563)	109,126
Changes in operating assets and liabilities:
Trade receivables	31,576	(253,288)
Inventories	55,848	(17,229)
Prepaid rent	(436,350)	(85,356)
Other current assets	44,865	15,537
Deposits	3,094	(2,865)
Licensing royalties receivable	(15,885)	12,506
Accounts payable and accrued expenses	(623,017)	47,956
Payroll liabilities	(275,517)	270,351
Sales tax payable	(34,528)	(46,823)
Licensing royalties payable	10,284	0
Gift cards and certificates outstanding	(13,816)	(18,154)
Net cash used in operating activities	(3,632,097)	(1,414,492)
Cash flows from (used in) investing activities
Purchases of property and equipment	(47,955)	(1,803,293)
Purchases of intangible assets	(42,253)	(13,803)
Change in restricted cash	43,000	0
Purchases of other assets	0	(213,063)
Net cash used in investing activities	(47,208)	(2,030,159)
Cash flows from financing activities
Proceeds from convertible notes payable	3,535,000	0
Debt issuance costs	(447,648)	0
Proceeds from issuance of common stock under equity incentive plan	10	19
Net cash provided by financing activities	3,087,362	19
Net decrease in cash	(591,943)	(3,444,632)
Cash, beginning of year	892,544	6,269,737
Cash, end of period	300,601	2,825,105
Supplemental disclosure of non-cash financing activities
Payables related to capital expenditures	2,421	581,246
Conversion of convertible notes payable into shares	$ 350,000	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets
Cash	$ 300,601	$ 892,544
Trade receivables	289,744	321,320
Inventories	362,717	418,565
Prepaid rent	436,350	0
Other current assets	379,151	424,016
Total current assets	1,768,563	2,056,445
Property and equipment, net	12,601,266	14,597,588
Other assets
Restricted certificates of deposit	630,000	673,000
Licensing royalties receivable	15,885	0
Intangible assets, net	868,932	846,292
Capitalized lease costs	610,510	754,170
Deposits	236,081	239,175
Debt issuance costs	1,216,346	837,339
Total other assets	3,577,754	3,349,976
Total assets	17,947,583	20,004,009
Current liabilities
Accounts payable and accrued expenses	3,164,724	3,785,320
Payroll liabilities	89,292	364,809
Sales tax payable	147,002	181,530
Licensing royalties payable	27,384	17,100
Gift cards and certificates outstanding	244,132	257,948
Total current liabilities	3,672,534	4,606,707
Long-term liabilities
Deferred rent	3,870,262	4,066,013
Warrant liability	272,815	327,378
Convertible notes payable	13,185,000	10,000,000
Total liabilities	21,000,611	19,000,098
Commitments and contingencies
Preferred stock, $.0001 par value; 1,000,000 shares authorized; 234,000 shares issued and outstanding at March 31, 2014 and December 31, 2013	23	23
Common stock, $.0001 par value; 100,000,000 shares authorized; 14,063,657 shares issued, 12,469,073 outstanding at March 31, 2014 and 13,738,741 shares issued, 12,144,157 outstanding at December 31, 2013	1,406	1,373
Additional paid-in capital	40,255,734	39,804,428
Accumulated deficit	(28,832,944)	(25,036,974)
Treasury stock, at cost	(15,913,948)	(15,913,948)
Total Crumbs Bake Shop, Inc. stockholders' equity (deficit)	(4,489,729)	(1,145,098)
Non-controlling interest	1,436,701	2,149,009
Total stockholders' equity (deficit)	(3,053,028)	1,003,911
Total Liabilities and Equity	$ 17,947,583	$ 20,004,009