Intelligent Highway Solutions, Inc.

CIK:0001549719|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 1,186,266		$ 3,215,589
Cost of sales	1,149,731		3,080,147
Gross profit	36,535		135,442
Operating expenses
Salaries and wages	41,443	41,443	124,328	121,064
General and administrative	161,931	87,070	709,611	277,057
Total operating expenses	203,374	128,513	833,939	398,121
Loss from operations	(166,839)	(128,513)	(698,497)	(398,121)
Other income (expense)
Gain (loss) on extinguishment of debt	(459,587)		(459,587)	2,142
Gain on sale of fixed assets		2,800		16,550
Gain (loss) on derivative fair value adjustment	(443,974)	131,728	10,073,464	350,003
Penalties on notes convertible payable	(298,321)		(298,321)
Excess derivative liability charged to interest	(236,348)		(301,342)	(36,631)
Interest expense	(308,292)	(69,017)	(463,653)	(373,066)
Total other income (expense)	(1,746,522)	65,511	8,550,561	(41,002)
Income (loss) before income taxes	(1,913,361)	(63,002)	7,852,064	(439,123)
Income tax expense
Net income (loss) before non-controlling interest	(1,913,361)	(63,002)	7,852,064	(439,123)
Net loss attributable to non-controlling interest	(13,574)		(44,419)
Net income (loss) attributable to Intelligent Highway Solutions	$ (1,899,787)	$ (63,002)	$ 7,896,483	$ (439,123)
Basic income (loss) per common share	$ (0.00)	$ (0.00)	$ 0.00	$ (0.00)
Diluted income (loss) per common share	$ (0.00)	$ (0.00)	$ 0.00	$ (0.00)
Basic weighted average shares outstanding	7,567,549,490	2,775,651,670	5,096,514,654	2,759,729,929
Diluted weighted average shares outstanding	7,567,549,490	2,775,651,670	33,865,904,731	2,759,729,929

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
Statements of Cash Flows (Unaudited) - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income (loss) before non-controlling interest	$ 7,852,064	$ (439,123)
Adjustments to reconcile net loss to net cash used in operating activities:
Preferred stock issued for services	6,750
Common stock issued for services	42,000
Depreciation	21,586	4,204
Gain on derivative fair value adjustment	(10,073,464)	(350,003)
Amortization of deferred loan costs	10,261	15,219
Amortization of debt discount	173,979	243,052
Loss on extinguishment of debt	459,587
Increase in convertible notes payable for default penalties	298,321
Amortization of intangible assets	141,765
Expenses paid on behalf of company	153,515	53,880
Excess derivative liability charged to interest	301,342	36,631
Changes in operating assets and liabilities
Contracts receivable	(89,112)
Prepaid expenses	(11,525)
Earnings in excess of billings	14,981
Billings in excess of cost	60,923
Accounts payable	66,088	38,954
Accrued interest	286,724	96,740
Accrued expenses and other liabilities	120,695	227,559
Net cash used in operating activities	(163,520)	(72,887)
Cash flows from investing activities
Cash acquired in acquisition	160,466
Net cash used in investing activities	160,466
Cash flows from financing activities
Repayments on bank overdraft		(2,981)
Proceeds from notes payable		75,770
Repayments of notes payable	(16,852)
Proceeds from convertible notes payable	151,300
Repayments of convertible notes payable	(2,407)
Net proceeds from related party payables	100	396
Net cash provided by financing activities	132,141	73,185
Change in cash and cash equivalents	129,087	298
Cash at beginning of period	1,002
Cash at end of period	130,089	298
Supplemental disclosures of cash flow information
Cash paid for interest	2,950
Cash paid for income taxes
Supplemental disclosure of non-cash investing and financing activities:
Common stock issued for note conversion	235,101	5,825
Common stock issued for accrued interest conversion	43,057
Original issue discounts and debt issue costs on convertible notes payable	32,935	83,122
Initial measurements of derivative liabilities recorded as debt discounts	357,567	100,097
Advance from credit line paid directly to seller for acquisition of Cresent Construction	$ 500,000

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 130,089	$ 1,002
Contracts receivable, net	685,451
Costs and estimated earnings in excess of billings on uncompleted contracts
Prepaid expenses	11,525
Total current assets	827,065	1,002
Property and equipment, net of accumulated depreciation of $29,688 and $8,101	81,258	320
Intangible assets, net of accumulated amortization of $141,765 and $0	1,522,612
Goodwill
Total assets	2,430,935	1,322
Current liabilities
Accounts payable	752,449	219,098
Billings in excess of costs and estimated earnings on uncompleted contracts	62,750
Accrued expenses and other liabilities	1,813,230	1,661,776
Accrued interest	569,066	277,829
Notes payable, current portion	587,803	258,609
Convertible notes payable, current portion, net of discounts and issue costs of $230,070 and $1,581	1,366,729	986,163
Notes payable, related party, current portion	7,496	7,396
Credit line payable	500,000
Derivative liability	2,163,181	11,855,072
Total current liabilities	7,822,704	15,265,943
Notes payable, net of current portion	1,018,504
Total liabilities	8,841,208	15,265,943
Stockholders' deficit
Series A convertible preferred stock, $0.00001 par value; 10,000,000 shares authorized; 10,000,000 and 2,500,000 issued and outstanding at September 30, 2017 and December 31, 2016, respectively	100	25
Common stock, $0.00001 par value; 10,000,000,000 shares authorized; 8,585,083,257 and 2,915,701,670 issued; 8,585,033,257 and 2,915,651,670 outstanding at September 30, 2017 and December 31, 2016, respectively	85,851	29,157
Additional paid-in capital	7,955,298	7,009,783
Treasury stock, 50,000 shares at $.084 per share	(4,200)	(4,200)
Accumulated deficit	(14,402,903)	(22,299,386)
Total Intelligent Highway Solutions stockholders' deficit	(6,365,854)	(15,264,621)
Non-controlling interest in subsidiary	(44,419)
Total liabilities and stockholders' deficit	$ 2,430,935	$ 1,322