Rocap Marketing Inc.

CIK:0001520108|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
SALES
Product sales, net		$ 1,500,366		$ 1,500,366
License fee		12,806		12,806
Digital sales	8,810		8,810
Consulting- product development				10,000
Total Sales	8,810	1,513,172	8,810	1,523,172
COST OF GOODS SOLD		1,332,974		1,332,974
GROSS MARGIN	8,810	180,198	8,810	190,198
OPERATING EXPENSES
Product development costs	60,656	281,993	192,989	456,158
Legal and professional expenses	252,389	388,820	482,098	566,492
Salaries and consulting	382,223	195,547	925,978	360,010
General and administrative	52,007	75,047	119,906	147,498
Bad debt expense	264,410		264,410
Product promotion	35,214		71,144
Total Operating Expenses	1,046,899	941,407	2,056,525	1,530,158
LOSS FROM OPERATIONS	(1,038,089)	(761,209)	(2,047,715)	(1,339,960)
OTHER EXPENSE
Interest expense	(124,676)	(24,011)	(156,282)	(49,020)
Loss on conversion		(45,360)		(45,360)
Change in fair value of derivative liabilities	(449,889)		(455,589)
Total Other Expense	(574,565)	(69,371)	(611,871)	(94,380)
LOSS BEFORE INCOME TAX PROVISION	(1,612,654)	(830,580)	(2,659,586)	(1,434,340)
Income tax provision
NET INCOME (LOSS)	(1,612,654)	(830,580)	(2,659,586)	(1,434,340)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation gain	4,487		(1,680)
COMPREHENSIVE LOSS	$ (1,608,167)	$ (830,580)	$ (2,661,266)	$ (1,434,340)
Net loss per share:
BASIC AND DILUTED	$ (0.03)	$ (0.02)	$ (0.05)	$ (0.03)
Weighted average common shares outstanding
BASIC AND DILUTED	49,675,439	44,851,591	49,348,467	20,657,545

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES:
Net income/(loss)	$ (2,659,586)	$ (1,434,340)
Adjustments to reconcile net loss to net cash used in operating activities:
Beneficial conversions		21,000
Loss on debt extinguishment		45,360
Amortization of debt discount and original issue discount	118,113
Change in fair value of derivative instruments	455,589
Shares-based compensation related to common stock	364,907	334,839
Notes for services		63,000
Changes in operating assets and liabilities:
Accounts receivable	583,398	(1,470,844)
Prepaid expenses	(139,783)	(4,437)
Accounts payable	209,905	960,768
Accrued interest	41,437	6,022
Deferred revenue	8,211	274,569
Cash Used in Operating Activities	(1,017,809)	(1,204,063)
Net Cash Used in Operating Activities	(1,017,809)	(1,204,063)
INVESTING ACTIVITIES:
Cash Provided from Investing Activities
FINANCING ACTIVITIES:
Proceeds from the issuance of promissory notes	805,000
Debt financing fees	(50,000)
Proceeds from sale of common stock for cash	100,000	1,180,760
Net Cash Provided by Financing Activities	855,000	1,180,760
Effect of exchange rates on cash and cash equivalents	(1,680)
NET CHANGE IN CASH	(164,489)	(23,303)
CASH AT BEGINNING OF YEAR	180,743	245,091
CASH AT END OF PERIOD	16,254	221,788
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	556
Income tax paid	850
Non-Cash Investing and Financing Activities:
Common stock issued for notes payable		84,000
Debt discount for new issuances	184,768
Original Issue Discount	66,685
Common stock issued for prepaid services	7,443
Common stock issued for debt issuance costs	12,500
Accounts payable for debt issuance costs	11,719
Notes payable issued for legal fees	$ 20,000

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash	$ 16,254	$ 180,743
Accounts receivable, net of allowance of $312,601 and $48,191, respectively	955,994	1,539,392
Prepaid expenses	171,121	23,895
Total Current Assets	1,143,369	1,744,030
OTHER ASSETS
Security deposit	6,800	6,800
Total Other Assets	6,800	6,800
TOTAL ASSETS	1,150,169	1,750,830
CURRENT LIABILITIES
Accounts payable and accrued expenses	1,779,112	1,557,488
Promissory notes, net of discount of $227,559	664,126
Accrued interest	41,437
Derivative liabilities	640,357
Deferred revenues	8,211
Total Current Liabilities	3,133,243	1,557,488
TOTAL LIABILITIES	3,133,243	1,557,488
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ (DEFICIT) EQUITY
Preferred stock: par value $0.001, 1,000,000 shares authorized; zero shares issued and outstanding
Common stock: par value $0.001, 149,000,000 shares authorized; 50,735,215 and 48,833,919 shares issued and outstanding, respectively.	50,735	48,833
Additional paid-in capital	7,321,231	6,838,283
Accumulated other comprehensive loss	(3,984)	(2,304)
Accumulated deficit	(9,351,056)	(6,691,470)
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY	(1,983,074)	193,342
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$ 1,150,169	$ 1,750,830