Internal Fixation Systems, Inc.

CIK:0001501732|SEC Filings

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
Condensed Statements of Operations (Unaudited) (USD $)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Sales, net	$ 136,808	$ 60,994	$ 293,272	$ 127,401
Cost of sales	53,357	15,819	87,772	32,537
Gross profit	83,451	45,175	205,500	94,864
Selling, general and administrative expenses
Officer compensation	51,870	332,430	110,374	519,878
Professional fees and other compensation	381,577	293,511	801,515	412,753
General and administrative expenses	101,542	50,524	265,720	108,775
Selling expenses	73,828	37,925	97,674	62,464
Total selling, general and administrative expenses	608,817	714,390	1,275,283	1,103,870
Operating loss	(525,366)	(669,215)	(1,069,783)	(1,009,006)
Other expense
Interest expense	(51,130)	(53,842)	(121,565)	(113,063)
Gain on change in fair value of derivative liability	4,794		99,032
Other Non-operating Loss	(49,970)		(154,336)
Loss on debt conversion			(95,000)
Loss before taxes	(621,672)	(723,057)	(1,341,652)	(1,122,069)
Benefit from income taxes
Net loss	$ (621,672)	$ (723,057)	$ (1,341,652)	$ (1,122,069)
Basic and diluted loss per share	$ (0.06)	$ (0.23)	$ (0.17)	$ (0.38)
Weighted average shares outstanding basic and diluted	9,815,231	3,133,068	7,782,742	2,966,193

Condensed Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
Condensed Statements of Cash Flows (Unaudited) (USD $)	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,341,652)	$ (1,122,069)
Adjustments to reconcile net loss to net cash provide by (used in) operating activities:
Amortized interest on discount on loans and notes payable - related parties	28,862	2,861
Amortized interest on discount on loans and notes payable - convertible notes	48,040	62,538
Stock based compensation	252,262	324,370
Loss on debt conversion	95,000
Gain on change in fair value of derivative liability	(99,032)
Bad debt (benefit) expense	13,694	(362)
Depreciation expense	53,408	47,379
Changes in operating assets and liabilities:
Accounts receivable	8,619	5,328
Inventory	(38,168)	(177,122)
Deferred offering costs		(91,442)
Prepaid expenses	86,900	(52,489)
Other assets	4,500	(5,924)
Accounts payable and accrued expenses	711,301	432,990
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	185,266	(570,343)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	11,905	(41,968)
NET CASH USED IN INVESTING ACTIVITIES	11,905	(41,968)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in bank overdraft	21,393
Proceeds from notes payable - convertible debenture	90,500	891,500
Proceeds from exercise of warrants and options	75,000
Proceeds from notes payable - related parties		13,000
Proceeds from notes payable - convertible notes	27,500
Repayments of Related Party Debt		28,472
Payments of capital lease obligations	(11,194)	(22,744)
Payments of notes payable - convertible debenture	(7,661)
Payments of notes payable - other		(17,810)
NET CASH PROVIDED BY FINANCING ACTIVITIES	195,538	835,474
NET (DECREASE) INCREASE IN CASH	(1,633)	223,163
CASH - Beginning	1,633	12,691
CASH - Ending		235,854
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	2,261	20,161
Non-cash investing and financing activities -
Notes and interest payable converted to common stock	178,500	880,700
Shares issued as discount on convertiible debenture	7,500	100,000
Beneficial conversion feature of convertible debenture	37,500	17,164
Stock options issued in connection with related-party loan		31,346
Accounts payable settled with issuance of common stock	115,000
Accrued compensation settled with issuance of common stock	$ 95,000

Condensed Balance Sheets (USD $)	Jun. 30, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash		$ 1,633
Accounts receivable, net	74,280	96,593
Inventory, current portion	181,781	403,845
Deferred offering costs	50,000
Prepaid expenses and other	13,124	95,046
Total current assets	381,852	597,117
PROPERTY AND EQUIPMENT, net	314,761	356,264
OTHER ASSETS
Inventory, long term, net	1,071,319	811,087
Licenses and security deposit	24,960	20,741
TOTAL ASSETS	1,730,225	1,785,209
CURRENT LIABILITIES
Bank overdraft	21,393
Accrued salaries and related expenses	389,707	270,206
Accounts payable and accrued expenses	846,882	480,022
Capital lease obligations, current portion	61,159	49,440
Loans and notes payable - related parties, net of discount	36,173	207,190
Loans and notes payable - bridge loan financing, net of discount	36,250	90,000
Loans and notes payable - convertible note, net of discount	79,110	72,437
Loans and notes payable - other, current portion	41,448	41,448
Derivative liability	59,167	69,959
Total current liabilities	1,574,360	1,280,702
LONG-TERM LIABILITIES
Capital lease obligations, less current portion	(64,230)	87,143
Convertible loans and notes payable	246,000	245,265
Loans and notes payable - other, less current portion	54,801	54,801
TOTAL LIABILITIES	1,936,320	1,667,911
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock, no par value, 50,000,000 shares authorized, 0 shares issued and outstanding
Common stock, $0.01par value; 200,000,000 shares authorized, 54,799,367 and 5,729,037 issued and outstanding, respectively	54,800	5,729
Additional paid in capital	5,289,170	4,319,982
Accumulated deficit	(5,550,065)	(4,208,413)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	(206,095)	117,298
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$ 1,730,225	$ 1,785,209