Sector 5, Inc.

CIK:0001550737|SEC Filings

CONDENSED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Statements Of Operations
Revenue	$ 5,884,941	$ 31,396	$ 6,949,200	$ 396,474
Cost of goods sold	5,799,265	26,211	6,861,246	387,432
Gross Margin	85,676	5,185	87,954	9,042
Operating Expenses:
Advertising and promotion	11,362	2,824	17,502	5,519
Officer compensation (see Note 9 and 6)	7,500		320,000
Professional fees	13,770	28,720	87,982	115,590
Consulting, related party	15,000		45,000
General and administrative	58,570	11,995	136,225	48,672
Total operating expenses	106,202	43,539	606,709	169,781
Loss from operations	(20,526)	(38,354)	(518,755)	(160,739)
Other Income/ (Expense):
Change in fair value of derivative	(1,177,658)		(1,094,930)
Loss on issuance of convertible debt	(6,682)		(455,043)
Interest expense	(18,604)	(854)	(28,008)	(3,431)
Interest expense, debt discount	(200,653)		(296,108)
Total other expense	(1,403,597)	(854)	(1,874,089)	(3,431)
Net loss before provision for income taxes	(1,424,123)	(39,208)	(2,392,844)	(164,170)
Provision for income taxes
Net Loss	$ (1,424,123)	$ (39,208)	$ (2,392,844)	$ (164,170)
Loss per share, basic and diluted	$ (0.07)	$ 0.00	$ (0.13)	$ (0.01)
Weighted average shares outstanding, basic and diluted	19,013,044	18,000,000	18,726,009	18,000,000

CONDENSED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOW FROM OPERATING ACTIVITES:
Net Loss	$ (2,392,844)	$ (164,170)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for officer compensation	300,000
Change in fair value of derivative	1,094,930
Loss on issuance of convertible debt	455,043
Debt discount	296,108
Changes in Operating Assets and Liabilities:
Accounts receivable	(119,961)	413
Prepaids & other assets	(227,930)	30,117
Inventory	2,589	45,126
Accounts payable	(2,500)	18,569
Accounts payable, related party	5,000
Accrued interest	24,709
Accrued interest, related party	3,185	3,431
Net Cash Used in Operating Activities	(561,671)	(66,514)
CASH FLOWS FROM INVESTING ACTIVITIES:
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party loans	31,626	220,281
Repayment of related party loans	(211,650)	(154,632)
Proceeds from convertible note	742,250
Net Cash Provided by Financing Activities	562,226	65,649
Net Increase (Decrease) in Cash	555	(865)
Cash at Beginning of Period	111	865
Cash at End of Period	666
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest
Income taxes
Supplemental disclosure of non-cash activities:
Common stock issued for prepaid financing fees	156,000
Warrants issued	$ 195,909

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 666	$ 111
Accounts receivable	119,961
Inventory	2,807	5,396
Prepaid expenses	383,931
Total Current Assets	507,365	5,507
Total Assets	507,365	5,507
Current Liabilities:
Accounts payable	72,440	74,941
Accounts payable, related party	5,000
Accrued interest	24,709
Accrued interest, related party	12,520	9,335
Loans payable, related party	175,584	355,608
Convertible note, net of discount of $553,892	296,108
Derivative liability	2,096,316
Total Current Liabilities	2,682,677	439,884
Total Liabilities	2,682,677	439,884
Commitments and Contingencies
Stockholders' Equity (Deficit):
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 1,000,000 and 1,000,000 shares issued and outstanding, respectively	1,000	1,000
Common stock, $0.001 par value, 245,000,000 shares authorized; 19,400,000 and 18,000,000 shares issued and outstanding, respectively	19,400	18,000
Additional paid-in capital	713,159	62,650
Accumulated deficit	(2,908,871)	(516,027)
Total stockholders' deficit	(2,175,312)	(434,377)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)	$ 507,365	$ 5,507