LIBERATED ENERGY, INC.

CIK:0001503161|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenues	$ 51,645,437	$ 5,389,882	$ 144,338,267	$ 15,014,672
Cost of goods sold	(47,850,180)	(4,804,695)	(134,295,726)	(12,312,031)
Gross margin	3,795,257	585,187	10,042,541	2,702,641
Operating expenses:
Selling expense	83,220		145,340
General and administrative	680,714	370,362	2,069,509	1,736,553
Research and development	104,755	181,953	335,481	497,421
Total operating expenses	868,689	552,315	2,550,330	2,233,974
Income from operations	2,926,568	32,872	7,492,211	468,667
Other Income (expense)
Other income	15,000	35,369	68,925	85,205
Finance costs	(52,117)		(1,464,591)	(4,000)
Change in fair value of derivatives	(55,867,141)	(316,142)	(62,555,020)	1,801,861
Interest expense	(22,308)	55,442	(71,391)	(163,318)
Other expense	(112,875)	(17,289)	(112,875)	(17,288)
Total other income (expense)	(56,039,441)	(242,620)	(64,131,952)	1,702,460
Net (loss) income before income tax	(53,112,873)	(209,748)	(56,639,741)	2,171,127
Income tax provision	(31,794)	(13,500)	(96,382)	(20,490)
Net (loss) income	(53,144,667)	(223,248)	(56,736,123)	2,150,637
Comprehensive income
Foreign currency gain			55,067	128,978
Net comprehensive (loss) income	$ (53,144,667)	$ (223,248)	$ (56,681,056)	$ 2,279,597
Net (loss) income per common share, basic and diluted	$ (0.01)	$ (0.00)	$ (0.02)	$ 0.01
Weighted average number of common shares outstanding	3,559,749,034	492,308,319	2,331,749,034	267,783,243

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows From Operating Activities:
Net (loss) income	$ (56,736,123)	$ 2,150,637
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation	69,433	9,919
Stock based compensation		352,605
Change in fair value of derivatives	62,555,020	(1,801,861)
Issuance of stock for cashless warrants		20,000
Loss on adjustment of debt		179,321
Changes in operating assets and liabilities:
Increase in accounts receivable	(23,215,729)	(811,405)
Increase in inventory	(4,190,219)	(656,460)
Increase in accounts payable and accrued expenses	14,798,794	2,755,512
Prepaid expenses	880	1,916
Notes payable related parties	(339,421)	(1,339,109)
Customer deposits		(20,000)
Net cash (used in) provided by operating activities	(7,057,366)	841,075
CASH FLOWS FROM INVESTMENT ACTIVITIES
Investment in fixed assets	(15,195)	(15,195)
Investment in joint venture	(10,980)	413,871
Net cash (used in) provided by investing activities	(26,175)	398,676
Cash Flows From Financing Activities:
Common stock issued for the conversion of warrants		40,073
Proceeds from issuance of convertible debt	5,948,705	573,269
Net cash provided by financing activities	5,948,705	613,342
Effect of foreign currency translation	161,691	(187,789)
Net change in cash	(973,145)	1,665,304
Cash at beginning of period	3,721,828	1,053,531
Cash at end of period	2,748,683	2,718,835
Non-Cash Financing Activities:
Common stock issued for preferred shares retired	69,615
Common stock issued for convertible debt conversion	120,515	898,750
Reduction of debt for valuation of warrants issued		20,000
Common stock retired	$ 151,675

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash	$ 2,748,683	$ 3,721,828
Accounts receivable	24,273,422	1,057,693
Inventory	5,929,941	1,739,722
Total current assets	32,952,046	6,519,243
Other assets
Fixed assets, net of depreciation	4,808,807	5,020,003
Deposits	106,472	107,352
Investments	125,289	114,309
Total assets	37,992,614	11,760,907
Current liabilities
Accounts payable	16,618,012	1,947,036
Accrued expense	205,252	77,434
Convertible notes payable	6,398,545	570,355
Derivative liability	63,737,112	1,182,093
Customer deposits	5,000	5,000
Notes payable - related parties	9,867,932	10,207,353
Total current liabilities	96,831,853	13,989,271
Total liabilities	96,831,853	13,989,271
Stockholders' deficit
Preferred shares, par value $0.001; 100,000,000 authorized; 1,000,000 and 10,000,000 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	1,000	10,000
Common stock, par value $0.001, 6,000,000,000 authorized; 3,563,686,977 and 1,598,052,555 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	3,563,685	1,598,051
Additional paid-in capital	(11,950,751)	(3,427,070)
Comprehensive loss		(55,067)
Accumulated deficit	(50,453,173)	(354,278)
Total stockholders' deficit	(58,839,239)	(2,228,364)
Total liabilities and stockholders' (deficit)	$ 37,992,614	$ 11,760,907