Medbox, Inc.

CIK:0001547996|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 16,053	$ 288,961	$ 490,200	$ 390,156
Revenue, related party	25,192	25,192	75,028	74,754
Less: allowances and refunds
Net revenue	41,245	314,153	565,228	464,910
Cost of revenues	124,151	656,383	494,881	1,837,711
Gross profit (loss)	(82,906)	(342,230)	70,347	(1,372,801)
Operating expenses
Selling and marketing	22,046	103,765	245,113	442,261
General and administrative	1,665,558	3,506,029	7,899,013	12,627,644
Total operating expenses	1,687,604	3,609,794	8,144,126	13,069,905
Loss from operations	(1,770,510)	(3,952,024)	(8,073,779)	(14,442,706)
Other income (expense)
Interest expense, net	(334,081)	(195,426)	(856,131)	(289,226)
Financing costs	(1,064,835)	(522,379)	(4,125,414)	(2,822,011)
Change in fair value of derivative liabilities	(1,313,182)	(2,544,014)	17,506,711	509,057
Change in fair value of warrant liability	(85,504)		911,617
Amortization of debt discount	(1,514,016)	(2,071,898)	(4,127,243)	(8,121,537)
Gain on sale of assets of subsidiary			5,498
Gain on sale of interest in subsidiary			630,571
Loss on sale of rights and assets			(178,032)
Gain on debt forgiveness	486,857		486,857
Loss on default settlement of a note	(168,092)		(168,092)
Other income	28,657	(6,208)	49,103	45,927
Total other income (expense)	(3,964,196)	(5,339,925)	10,135,445	(10,677,790)
Income (loss) before provision for taxes	(5,734,706)	(9,291,949)	2,061,666	(25,120,496)
Provision for taxes
Net income (loss)	$ (5,734,706)	$ (9,291,949)	$ 2,061,666	$ (25,120,496)
Loss per share attributable to common stockholders
Basic	$ (0.00)	$ (0.13)	$ 0.00	$ (0.54)
Diluted	$ (0.00)	$ (0.13)	$ 0.00	$ (0.54)
Weighted average shares outstanding
Basic	6,371,924,843	73,524,951	2,475,958,908	46,945,806
Diluted	6,371,924,843	73,524,951	12,982,736,907	46,945,806
Other comprehensive loss
Net loss	$ (5,734,706)	$ (9,291,949)	$ 2,061,666	$ (25,120,496)
Unrealized gain from marketable securities	12,381		6,600
Comprehensive loss	$ (5,722,325)	$ (9,291,949)	$ 2,068,266	$ (25,120,496)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income (loss)	$ 2,061,666	$ (25,120,496)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	22,486	90,315
Provisions and allowances	120,841
Loss on sale of rights and assets	178,032
Gain on sale of interest in subsidiary	(630,571)
Gain on debt forgiveness	(486,858)
Loss on default settlement of a note	168,092
Charges from escrow deposits		280,400
Inventory valuation reserve		497,439
Change in fair value of derivative liability	(17,506,711)	(509,057)
Change in fair value of warrant liability	(911,617)
Amortization of debt discount	4,127,243	8,121,537
Financing costs	4,125,414	2,822,011
Stock based compensation	696,405	5,331,382
Changes in operating assets and liabilities:
Accounts receivable	17,511	8,774
Inventory	48,523	275,953
Capitalized agricultural costs	(25,921)
Deposits in escrow		55,076
Prepaid insurance	(5,648)	(208,937)
Prepaid expenses and other current assets	(83,642)	(172,796)
Advances for machinery	(206,439)
Deferred costs	105,172	(299,018)
Accounts payables	4,172,111	2,521,976
Accrued interest payable	656,474	214,886
Other accrued expenses	(94,938)	(487,834)
Accrued expenses directors	(92,758)	185,498
Accrued settlement and severance expenses	(309,390)	912,065
Accrued legal contingencies	189,177
Customer deposits		(468,468)
Deferred revenue	(173,826)	(175,078)
Net cash used in operating activities	(4,141,773)	(6,124,372)
Cash flows from investing activities
Issuance of note receivable	(10,000)
Repayment of note receivable	19,159
Purchase of property and equipment		(14,795)
Purchase of real estate		(500,000)
Proceeds from the sale of subsidiary	35,000
Proceeds received for sale of interest held in subsidiary	630,571
Proceeds received for sale of rights and assets	91,814
Construction in progress	(617,207)	(68,959)
Net cash provided by (used in) by investing activities	149,337	(583,754)
Cash flows from financing activities
Proceeds (payments) notes payable, net	1,017,012	(3,535)
Proceeds from issuance of notes payable, related party	41,667
Payments on related party notes payable	(2,500)	(624,888)
Exercise of employee stock options	16,000
Proceeds from issuance of convertible notes payable, net of fees	2,900,812	7,432,128
Proceeds from issuance of convertible notes payable from directors, net	105,000	150,000
Net cash provided by financing activities	4,077,991	6,953,705
Net increase in cash and cash equivalents	85,555	245,579
Cash, beginning of period	119,010	101,182
Cash, end of period	204,565	346,761
Supplemental disclosures of cash flow information:
Cash paid for interest	38,595	1,151
Cash paid for income tax
Non- cash investing and financing activities:
Common stock issued upon debt conversion	2,153,437	6,261,474
Common stock issued to consultants	109,542	364,728
Issuance of note payable for financing costs	700,000
Issuance of convertible debentures for accounts payable	525,000
Notes Payable issued for accounts payable	250,700
Advances on machinery paid directly by lender	161,401
Purchase of land with notes payable		$ 5,000,000

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 204,565	$ 119,010
Marketable securities	16,010	9,410
Accounts receivable, net	12,488	29,999
Notes receivable, net of allowances of $50,841		60,000
Inventory, net	32,300	150,823
Capitalized agricultural costs	25,921
Prepaid insurance	79,403	73,755
Prepaid expenses and other current assets	210,031	83,663
Total current assets	580,718	526,660
Property and equipment, net of accumulated depreciation of $29,226 and $16,986, respectively	58,744	470,578
Land	4,945,000	4,945,000
Advances for machinery	367,840
Construction in progress	1,241,380	624,173
Deferred costs		375,018
Deposits and other assets, net of reserve of $102,500 and $115,000, respectively	7,486	50,212
Total assets	7,201,168	6,991,641
Current liabilities
Accounts payables	6,402,675	3,100,804
Accrued interest payable	171,919	430,702
Accrued expenses, directors	148,652	241,410
Accrued settlement and severance expenses	653,313	962,703
Accrued legal contingencies	374,402	185,225
Other accrued expenses	180,331	275,269
Deferred revenue, current	159,982	214,343
Notes payable, net of premium of $0 and $16,667, respectively and discounts of $803,025 and $0, respectively	2,372,599	256,897
Related party notes payable, net of discount of $6,000 and $0, respectively	283,866
Convertible notes payable, net of discount of $1,242,601 and $151,414 , respectively	7,464,866	6,667,523
Convertible notes payable, directors	105,000
Derivative liability	3,761,508	19,246,594
Warrant liability	101,577	940,000
Customer deposits	931,204	931,204
Total current liabilities	23,111,894	33,452,674
Notes payable, less current portion	4,029,417	4,288,631
Deferred revenue, less current portion	218,058	337,523
Total liabilities	27,359,369	38,078,828
Commitments and contingencies (Note 11)
Stockholders' Deficit
Preferred stock, $0.001 par value: 10,000,000 authorized; 0 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
Common stock, $0.001 par value: 10,000,000,000 authorized, 7,251,218,702 and 240,971,727 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	7,251,219	240,972
Additional paid-in capital	44,450,562	42,600,089
Treasury stock	(1,209,600)	(1,209,600)
Accumulated deficit	(70,463,227)	(72,524,893)
Accumulated other comprehensive loss	(187,155)	(193,755)
Total stockholders' deficit	(20,158,201)	(31,087,187)
Total liabilities and stockholders' deficit	$ 7,201,168	$ 6,991,641