Ener-Core Inc.

CIK:0001495536|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenues			$ 1,100,000
Cost of goods sold
Gross profit			1,100,000
Operating expenses:
Selling, general, and administrative	397,000	650,000	1,539,000	2,686,000
Research and development	429,000	452,000	1,280,000	1,634,000
Total operating expenses	826,000	1,102,000	2,819,000	4,320,000
Operating loss	(826,000)	(1,102,000)	(1,719,000)	(4,320,000)
Other income expenses:
Interest expense	(38,000)	(77,000)	(174,000)	(417,000)
Amortization of debt discount	(3,493,000)	(1,256,000)	(6,503,000)	(3,969,000)
Loss on disposition of assets				(137,000)
Loss on debt extinguishment				(10,000)
Loss on modification of convertible debt				(43,000)
Loss on conversion of convertible debt	(11,000)		(11,000)
Total other expenses	(3,542,000)	(1,333,000)	(6,688,000)	(4,576,000)
Loss before provision for income taxes	(4,368,000)	(2,435,000)	(8,407,000)	(8,896,000)
Provision for income taxes
Net loss	$ (4,368,000)	$ (2,435,000)	$ (8,407,000)	$ (8,896,000)
Loss per share-basic and diluted	$ (1.05)	$ (0.60)	$ (2.04)	$ (2.21)
Weighted average common shares-basic and diluted	4,167,806	4,063,660	4,121,045	4,026,726

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (8,407,000)	$ (8,896,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	245,000	340,000
Stock-based compensation	334,000	788,000
Amortization of debt discount and deferred financing fees	6,509,000	4,050,000
Loss on debt conversions	11,000	53,000
Loss on asset disposal		151,000
Changes in assets and liabilities:
Restricted cash		50,000
Accounts and other receivables		(99,000)
Prepaid expenses and other current assets	46,000	56,000
Inventory	(245,000)	(271,000)
Deferred revenues, net	(697,000)	1,551,000
Deposits		5,000
Accounts payable and other current liabilities	955,000	548,000
Cash used in operating activities	(1,249,000)	(1,674,000)
Cash flows from investing activities:
Proceeds from sale of assets		67,000
Net cash provided by investing activities		67,000
Cash flows from financing activities:
Proceeds from issuance of Senior Notes	1,060,000	500,000
Repayment of capital leases payable	(9,000)	(9,000)
Cash provided by financing activities	1,051,000	491,000
Net decrease in cash and cash equivalents	(198,000)	(1,116,000)
Cash and cash equivalents at beginning of period	208,000	1,310,000
Cash and cash equivalents at end of period	10,000	194,000
Cash paid during the period for:
Income taxes
Interest		75,000
Supplemental disclosure of non-cash activities:
Capital lease for purchase of equipment		25,000
Debt discount recorded upon issuance of warrants and beneficial conversion features	5,110,000	176,000
Conversion of convertible senior secured notes into shares of common stock	25,000	60,000
Accrued expenses exchanged for convertible senior secured notes	135,000
Shares of common stock issued for prepaid retainer	$ 20,000

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 10,000	$ 208,000
Accounts receivable	9,000	14,000
Inventory	3,047,000	3,028,000
Prepaid expenses and other current assets	365,000	333,000
Total current assets	3,431,000	3,583,000
Property and equipment, net	2,420,000	2,660,000
Intangibles, net	8,000	13,000
Deposits and other long term assets		32,000
Total assets	5,859,000	6,288,000
Current liabilities:
Accounts payable	2,080,000	1,749,000
Accrued expenses	1,964,000	1,380,000
Deferred revenues and customer advances	4,573,000	5,270,000
Accrued contract loss	391,000	617,000
Convertible unsecured notes payable, net of discounts	1,051,000	1,250,000
Convertible senior secured notes payable, net of discounts	8,698,000	5,994,000
Capital leases payable-short term	10,000	13,000
Total current liabilities	18,767,000	16,273,000
Long term liabilities:
Capital lease payable	6,000	12,000
Total liabilities	18,773,000	16,285,000
Commitments and contingencies (Note 15)
Stockholders' deficit:
Preferred stock, $0.0001 par value. Authorized 50,000,000 shares; no shares issued and outstanding at September 30, 2018 and December 31, 2017
Common stock, $0.0001 par value. Authorized 200,000,000 shares; 4,206,393 and 4,081,393 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively
Additional paid-in capital	47,831,000	42,342,000
Accumulated deficit	(60,745,000)	(52,339,000)
Total stockholders' deficit	(12,914,000)	(9,997,000)
Total liabilities and stockholders' deficit	$ 5,859,000	$ 6,288,000