Sanomedics International Holdings, Inc

CIK:0001501972|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statements Of Operations
Revenues, net	$ 91,543	$ 83,181	$ 414,866	$ 281,002
Cost of goods sold	14,028	12,703	64,464	42,928
Gross profit	77,515	70,478	350,402	238,074
Operating expenses
General and administrative	$ 316,337	$ 1,056,379	$ 1,414,445	2,667,995
Research and development				43,703
Depreciation and amortization	$ 10,750	$ 3,144	$ 12,118	5,697
Total operating expenses	327,087	1,059,523	1,426,563	2,717,395
Loss from operations	(249,572)	(989,045)	(1,076,161)	(2,479,321)
Other income (expense)
Amortization of debt discount	(195,124)	(579,962)	(828,812)	(1,415,839)
Change in fair value of derivative liabilities	(1,354,113)	$ (135,210)	(962,663)	$ (928,777)
Loss on extinguishment of debt	(182,108)		(694,496)
Interest expense	(62,424)	$ (288,690)	(220,057)	$ (460,457)
Other income	8,434		227,030
Total other expense	(1,785,335)	$ (1,003,862)	(2,478,997)	$ (2,805,073)
Net loss from continuing operations before income taxes	$ (2,034,907)	$ (1,992,907)	$ (3,555,158)	$ (5,284,394)
Income taxes
Net loss from continuing operations	$ (2,034,907)	$ (1,992,907)	$ (3,555,158)	$ (5,284,394)
Discontinued operations
Loss from discontinued operations, net of taxes	(10,768)		(40,797)
Loss on disposal of discontinued operations, net of taxes	(72,857)		(72,857)
Net loss from discontinued operations, net of taxes	(83,625)		(113,654)
Net loss	$ (2,118,532)	$ (1,992,907)	$ (3,668,812)	$ (5,284,394)
Net loss per share - basic and diluted:
Net loss from continuing operations	$ (47.45)	$ (939.31)	$ (62.77)	$ (1,562.41)
Loss from discontinued operations, net of taxes			(2.01)
Net loss per share - basic and diluted	$ (0.01)	$ (939.31)	$ (64.78)	$ (1,562.41)
Weighted average number of shares outstanding during the period - basic and diluted	42,883	2,122	56,639	3,382

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (3,668,812)	$ (5,284,394)
Loss from discontinued operations and disposal, net of taxes	(113,654)
Net loss from continuing operations	(3,555,158)	$ (5,284,394)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	12,119	$ 5,697
Provision for sales returns and allowances	(11,000)
Stock compensation	16,968	$ 726,071
Amortization of debt discount on convertible notes	828,812	$ 1,415,839
Loss on extinguishment of debt	694,496
Amortization of prepaid expenses	324,444
Change in fair value of derivative liabilities	$ 962,663	$ 928,777
Refinancing costs for revolving line of credit		474,131
Changes in operating assets and liabilities
Accounts receivable	$ 244,465	(11,561)
Inventories	1,256	29,876
Prepaid expenses	10,947	$ 157,697
Accrued salaries payable	(206,117)
Accounts payable and other liabilities	149,652	$ 270,168
Accrued interest payable	228,913	136,620
Accrual for contingencies on contract rescission	(42,498)	(334,331)
Due to related parties	(13,476)	(134,437)
Net Cash Used In Operating Activities	(353,515)	(1,619,847)
CASH FLOWS USED FROM INVESTING ACTIVITIES
Purchase of fixed assets	(5,804)	(12,768)
Net Cash Used In Investing Activities	(5,804)	(12,768)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable - related parties	180,000	$ 838,240
Repayment of notes payable - related parties	$ (45,000)
Proceeds from common stock subscription		$ 22,500
Proceeds from revolving line of credit, net		905,768
Payoffs of convertible notes payable		(252,750)
Proceeds from convertible notes payable	$ 149,000	149,400
Net Cash Provided By Financing Activities	284,000	$ 1,663,158
CASH FLOWS FROM DISCONTINUED OPERATION:
Cash flows from operating activities	(113,653)
Net Cash Used by Discontinued Operations	(113,653)
Net (decrease) increase in cash	(188,972)	$ 30,543
Cash - beginning of period	210,138	9,560
Cash - end of period	$ 21,166	$ 40,103
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for: Income taxes
Cash paid during the period for: Interest		$ 93,418
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for conversion of debt	$ 556,695	771,404
Accrued salaries payable converted to common stock		211,365
Borrowings under revolving line of credit to convertible notes	$ 541,165	$ 1,404,899

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets
Cash	$ 21,166	$ 210,138
Accounts receivable, net	8,502	241,967
Inventories	21,216	22,472
Prepaid expenses	3,599	338,990
Total Current Assets	54,483	813,567
Fixed assets, net	19,726	20,040
Patents, net	5,836	11,836
Deposit	7,999	7,999
Total Assets	88,044	853,442
Current Liabilities
Accrued salaries payable	48,957	255,075
Accounts payable and other liabilities	626,784	477,133
Accrued interest payable	365,902	136,989
Accrual for contingencies on contract rescission	123,204	$ 165,702
Current portion of notes payable - related parties, net of debt discount	582,705
Convertible notes payable, net of debt discount	1,737,786	$ 1,633,047
Derivative liabilities	3,393,318	2,771,414
Due to related parties	56,132	24,882
Total Current Liabilities	6,934,788	5,464,242
Convertible notes payable - related parties, net of discount, net of current portion	66,461	442,919
Total Liabilities	$ 7,001,249	$ 5,907,161
Commitments and Contingencies (Note 7)
Stockholders' Deficit
Preferred stock, $0.001 par value: 1,000 shares authorized, issued and outstanding as of September 30, 2015 and December 31, 2014 , respectively	$ 1	$ 1
Common stock, $0.001 par value: 10,000,000,000 shares authorized, 81,508 and 437 shares issued and outstanding as of September 30, 2015 and December 31, 2014 , respectively	82
Additional paid in capital	$ 16,995,159	$ 15,205,915
Stock subscription receivable		(20,000)
Accumulated deficit	$ (23,908,447)	(20,239,635)
Total Stockholders' Deficit	(6,913,205)	(5,053,719)
Total Liabilities and Stockholders' Deficit	$ 88,044	$ 853,442