Empowered Products, Inc.

CIK:0001483935|SEC Filings

4. Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2014

Earnings (loss) per share are calculated in accordance with the FASB ACS 260, Earnings Per Share. Basic net earnings (loss) per share are based upon the weighted average number of common shares outstanding, but excluding shares issued as compensation that have not yet vested. Diluted net earnings (loss) per share are based on the assumption that all dilutive convertible shares and stock options were converted or exercised, and that all unvested shares have vested. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

The following table illustrates the required disclosure of the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations.

	Years Ended December 31,
	2014			2013

Net income (loss) available to common shares	$	(1,015,331	)	$	134,249
Basic:
Weighted average shares		62,788,856			62,588,856
Diluted:
Weighted average shares, basic		62,788,856			62,588,856
Dilutive effect of warrants		–			252,602
Weighted average shares, diluted		62,788,856			62,841,458

Basic income (loss) per share	$	(0.02	)	$	0.00
Diluted income (loss) per share	$	(0.02	)	$	0.00

Weighted average anti-dilutive shares excluded from diluted EPS		6,639,583			3,000,000

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ (1,015,331)us-gaap_NetIncomeLoss	$ 134,249us-gaap_NetIncomeLoss
Adjustments to reconcile net loss to cash flows used in operating activities:
Depreciation and amortization	73,661us-gaap_DepreciationAndAmortization	72,848us-gaap_DepreciationAndAmortization
Share based compensation	345,683us-gaap_ShareBasedCompensation	670,134us-gaap_ShareBasedCompensation
Provision for doubtful accounts	11,839us-gaap_ProvisionForDoubtfulAccounts	47,486us-gaap_ProvisionForDoubtfulAccounts
Inventory write down	(49,148)	8,254
Changes in assets and liabilities:
(Increase) Decrease in restricted cash	(1,506)	59,530
Increase in accounts receivable	(4,790)	(351,582)
Decrease (Increase) in inventory	366,051us-gaap_IncreaseDecreaseInInventories	(227,839)us-gaap_IncreaseDecreaseInInventories
Decrease (increase) in prepaid and other current assets	22,290	(278,766)
Increase in other assets	(2,752)	(13,791)
Increase in accounts payable and other accrued expenses	224,819	68,703
Increase in deferred revenue	0	125,712
Cash flows (used in) provided by operating activities	(29,184)	314,938
Cash flows from investing activities:
Purchases of plant and equipment	(39,177)	(15,084)
Payment of fees for trademarks and other intangibles	(9,755)	(13,406)
Cash flows used in investing activities	(48,932)	(28,490)
Cash flows from financing activities:
Shareholder loan	250,000us-gaap_ProceedsFromRelatedPartyDebt	0us-gaap_ProceedsFromRelatedPartyDebt
Line of credit repayments draws, net	0	(246,042)
Cash flows provided by (used in) financing activities	250,000	(246,042)
Net increase in cash and cash equivalents	171,884	40,406
Cash and cash equivalents at the beginning of the year	157,396	116,990
Cash and cash equivalents at the end of the year	329,280	157,396
Supplementary disclosure of cash flow information:
Cash paid for interest	3,355us-gaap_InterestPaid	13,124us-gaap_InterestPaid
Non-cash investing and financing activities:
Exchange of prepaid and other assets for equipment	$ 134,951	$ 0

Consolidated Balance Sheets (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 329,280	$ 157,396
Restricted cash	503,506	502,000
Accounts receivable, less allowance for doubtful accounts of $48,371 in 2014 and $36,532 in 2013	654,086us-gaap_AccountsReceivableNetCurrent	661,135us-gaap_AccountsReceivableNetCurrent
Inventory, net	776,563us-gaap_InventoryNet	1,093,466us-gaap_InventoryNet
Prepaid and other current assets	230,416	343,873
Total current assets	2,493,851us-gaap_AssetsCurrent	2,757,870us-gaap_AssetsCurrent
Plant and equipment, net	294,673us-gaap_PropertyPlantAndEquipmentNet	183,106us-gaap_PropertyPlantAndEquipmentNet
Trademarks and other intangibles, net	543,162	544,507
Other assets	7,365us-gaap_OtherAssetsNoncurrent	48,397us-gaap_OtherAssetsNoncurrent
Total assets	3,339,051us-gaap_Assets	3,533,880us-gaap_Assets
Current Liabilities:
Line of credit	100,000us-gaap_LinesOfCreditCurrent	100,000us-gaap_LinesOfCreditCurrent
Accounts payable and other accrued expenses	418,236	193,417
Current portion of shareholder loan	47,705	0
Deferred revenue	125,712us-gaap_DeferredRevenueCurrent	125,712us-gaap_DeferredRevenueCurrent
Total current liabilities	691,653us-gaap_LiabilitiesCurrent	419,129us-gaap_LiabilitiesCurrent
Shareholder loan, net of current portion	202,295	0
Total liabilities	893,948us-gaap_Liabilities	419,129us-gaap_Liabilities
Stockholders' Equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding	0us-gaap_PreferredStockValue	0us-gaap_PreferredStockValue
Common stock, $.001 par value, 2,200,000,000 shares authorized, 62,788,856 shares issued and outstanding at December 31, 2014 and 2013, respectively	62,789us-gaap_CommonStockValue	62,789us-gaap_CommonStockValue
Additional paid-in capital	7,105,316us-gaap_AdditionalPaidInCapital	6,759,633us-gaap_AdditionalPaidInCapital
Accumulated deficit	(4,723,002)	(3,707,671)
Total stockholders' equity	2,445,103us-gaap_StockholdersEquity	3,114,751us-gaap_StockholdersEquity
Total liabilities and stockholders' equity	$ 3,339,051	$ 3,533,880