Labor Smart, Inc.

CIK:0001522469|SEC Filings

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
Statements of Operations - USD ($)	Sep. 25, 2015	Sep. 26, 2014	Sep. 25, 2015	Sep. 26, 2014
Income Statement [Abstract]
Revenues	$ 5,749,548	$ 6,847,744	$ 16,831,139	$ 18,078,661
Cost of sales	4,220,485	5,132,736	12,347,353	13,890,193
Gross profit	1,529,063	1,715,008	4,483,786	4,188,468
Operating expenses
Payroll expenses	1,000,714	738,563	2,700,200	1,773,150
Bad debt expense	567,987	17,329	749,503	113,375
General and administrative expense	836,767	1,060,543	2,608,492	2,815,645
Total operating expenses	2,405,468	1,816,435	6,058,195	4,702,170
Operating loss	(876,405)	$ (101,427)	(1,574,409)	$ (513,702)
Other income (expenses)
Gain on sale of branch offices	1,015,961		1,015,961
Interest and finance expense	(347,988)	$ (1,165,075)	(1,949,262)	$ (2,913,386)
Gain on change in fair value in derivative liability	(357,072)	191,192	(82,036)	357,842
Gain (loss) on sale of securities	5,435	(12,018)	3,290	(15,437)
Total other income (expenses)	316,336	(985,901)	(1,012,047)	(2,570,981)
Net loss	$ (560,069)	(1,087,328)	$ (2,586,456)	(3,084,683)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities		78,166		73,435
Other comprehensive income (loss)		78,166		73,435
Comprehensive loss	$ (560,069)	$ (1,009,162)	$ (2,586,456)	$ (3,011,248)
Basic loss per common share	$ (0.00)	$ (0.04)	$ (0.00)	$ (0.13)
Basic weighted average common shares outstanding	5,636,335,289	26,764,068	3,467,777,333	23,711,572

Statements of Cash Flows - USD ($)	9 Months Ended
Statements of Cash Flows - USD ($)	Sep. 25, 2015	Sep. 26, 2014
Cash flows from operating activities:
Net loss	$ (2,586,456)	$ (3,084,683)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	(12,222)	119,257
Interest and financing costs	1,540,099	2,389,537
Depreciation and amortization	184,233	114,748
Bad debt expense	749,503	113,375
Loss on sale of securities	(3,290)	15,437
(Gain) loss on change in fair value of derivative liability	82,036	$ (357,842)
Gain on sale of branch offices	(1,015,961)
Changes in operating assets and liabilities:
Increase (decrease) in accounts receivable	(210,769)	$ (1,874,151)
Increase (decrease) in prepaid expense and deposits	258,838	(125,104)
Increase (decrease) in other assets	(33,984)	(395,729)
Increase (decrease) in accounts payable and accrued liabilities	12,679	20,197
Increase (decrease) in payroll taxes payable	723,466	162,507
Net cash provided by (used in) operating activities	$ (311,828)	(2,902,451)
Cash flows from investing activities:
Assets acquired in asset purchase agreement		$ (120,797)
Proceeds from sale of branch offices	$ 1,025,000
Purchase of fixed assets	(22,257)	$ (75,754)
Proceeds from sale of marketable securities	43,133	57,191
Purchase of marketable securities	(254,575)	(99,339)
Net cash provided by (used in) investing activities	$ 791,301	(238,699)
Cash flows from financing activities:
Proceeds from convertible notes payable		3,844,823
Payment on convertible notes payable	$ (589,430)	$ (941,039)
Proceeds from notes payable	175,000
Payments of notes payable	(38,544)
Payment on notes payable - related party	(9,000)	$ (27,581)
Net cash received loan payable to factor	104,513	618,031
Payments on contingent liability	(63,535)	(91,442)
Net cash provided by financing activities	(420,996)	3,402,792
Net change in cash	58,477	261,642
Cash, end of period	127,449
Supplemental disclosure of cash flow information:
Interest paid	$ 409,163	$ 381,399
Taxes paid
Non-cash investing and financing activities
Shares issued for convertible notes	$ 660,044	$ 822,681
Contingency liability assoicated with asset purchase		183,194
Convertible note payable derivative liability		1,300,883
Warrant derivative liability		$ 46,560

Balance Sheets - USD ($)	Sep. 25, 2015	Dec. 26, 2014
Current assets
Cash and cash equivalents	$ 127,449	$ 68,972
Accounts receivable, net	2,530,064	3,068,798
Marketable securities, available for sale	314,797	99,954
Prepaid expense	64,017	322,855
Other assets	253,125	453,341
Total current assets	3,289,452	4,013,920
Deposits	66,000	80,283
Property and equipment, net	76,888	98,790
Customer relationships, net	236,323	385,436
Workers' compensation insurance collateral	785,254	536,771
Total long-term assets	1,164,465	1,101,280
Total assets	4,453,917	5,115,200
Current liabilities
Accounts payable and accrued liabilities	203,196	190,517
Loan payable to factor	1,743,284	1,638,771
Payroll taxes payable	2,026,803	$ 1,303,337
Notes payable	136,456
Notes payable, related party	5,725	$ 14,725
Contingent liability, current portion	113,784	122,129
Convertible notes payable, net of unamortized discount of $244,734 and $1,487,875, respectively	3,514,343	3,894,678
Warrants and bifurcated conversion features	735,675	603,639
Total current liabilities	$ 8,479,266	7,767,796
Contingent liability, long-term portion		43,733
Total liabilities	$ 8,479,266	7,811,529
Stockholders' deficit
Common stock; $0.00001 par value; 20,000,000,000 shares authorized, 6,627,295,812 and 180,455,103 issued and outstanding as of September 25, 2015 and December 26, 2014, respectively.	66,274	1,805
Additional paid-in capital	6,743,239	5,550,383
Accumulated deficit	(10,899,740)	(8,313,284)
Accumulated other comprehensive income(loss)	64,878	64,767
Total stockholder's deficit	(4,025,349)	(2,696,329)
Total liabilities and stockholders' deficit	$ 4,453,917	$ 5,115,200
Series A Preferred Stock [Member]
Stockholders' deficit
Preferred stock, ($.0001 par value, 5,000,000 shares authorized; none issued and outstanding) Series A Preferred stock, ($.0001 par value, 51shares authorized; 51 shares issued and outstanding as of September 25, 2015 and December 26, 2014, respectively.