Environmental Packaging Technologies Holdings, Inc.

CIK:0001553734|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Revenues	$ 4,415,899	$ 4,561,908	$ 13,500,233	$ 13,042,454
Cost of goods sold	(3,399,722)	(3,386,495)	(11,175,895)	(7,971,036)
Gross profit	1,016,177	1,175,413	2,324,338	5,071,418
Selling, general and administrative expenses	(1,244,164)	(957,730)	(3,537,288)	(2,953,605)
Operating (loss) income	(227,987)	217,683	(1,212,950)	2,117,813
Interest and finance expense, net	(370,052)	(511,667)	(2,153,910)	(839,962)
Amortization expense	(122,395)	(116,010)	(221,387)	(348,029)
Other income	22,298	0	182,853	0
Other expenses	0	2,177	0	13,038
Other taxes	0	(56)	(104,917)	(12,570)
(Loss) Income before income taxes	(698,136)	(407,873)	(3,510,311)	930,290
Income tax (expense) benefit	18,225	(72,691)	(25,994)	(202,222)
Net (loss) / income	(679,911)	(480,564)	(3,536,305)	728,068
Comprehensive (loss) / income
Net (loss) / income	(679,911)	(480,564)	(3,536,305)	728,068
Foreign currency translation adjustments	(38,182)	(25,035)	(162,650)	(77,085)
Comprehensive (loss) / income	$ (718,093)	$ (505,599)	$ (3,698,955)	$ 650,983
Weighted average shares outstanding (basic)	45,308,191	24,939,097	45,308,191	24,939,097
Weighted average shares outstanding (dilutive)	46,832,868	29,490,151	46,832,868	29,490,151
Earnings (loss) per share (primary)	$ (0.02)	$ (0.02)	$ (0.08)	$ 0.03
Earnings (loss) per share (dilutive)	$ (0.01)	$ (0.02)	$ (0.08)	$ 0.02

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities
Net (loss) / income	$ (3,536,305)	$ 728,068
Adjustment to reconcile net (loss) / income to net cash used in operating activities
Depreciation	21,419	0
Amortization of debt issuance costs	(245,082)	348,029
Recovery of bad debt	7,780	0
Inventory obsolescence	(16,829)	(28)
Provision for warranty cost	4,385	(1,615)
Accounts receivable	(55,581)	373,876
Inventories	(161,359)	(2,203,927)
Short-term Deposits	(245,250)	0
Prepaid expense and other current assets	(780,247)	9,028
Fixed Assets	(162,718)	0
Accounts payable	267,980	192,860
Accrued expenses	0	15,799
Accrued liabilities	32,215	0
Other short-term liabilities	3,051	174,961
Other long-term liabilities	15,332	(5,695)
Net cash used in operating activities	(4,851,209)	(368,644)
Financing Activities
Proceeds from short-term notes	453,364	150,000
Proceeds from other short-term liabilities	1,455,000	1,210,000
Proceeds from short-term line of credit	6,444,133	0
Issuance of shares under private placement	5,362,000	0
Payment of expenses related to the merger	(550,000)	0
Payment of expenses related to fundraising	(427,016)	0
Repayments of short-term notes	(3,908,364)	(300,000)
Repayments of other short-term liabilities	(1,439,051)	(517,265)
Repayments of short-term line of credit	(2,791,085)	0
Net cash provided by financing activities	(4,598,981)	(542,735)
Effect of exchange rate fluctuations on cash	184,667	77,068
Net decrease in cash	(67,561)	251,159
Cash at beginning of period	814,778	1,022,716
Cash at end of period	747,217	1,273,875
Supplemental disclosures of cash flow information:
Cash paid during the period for: Interest	2,149,715	609,072
Cash paid during the period for: Income taxes	25,994	202,222
Non-cash financing activities:
Issuance of shares under subordinated note conversion	14,704,664	0
Conversion of preferred shares to common shares	0	18,992,024
Issuance of shares under short-term debt agreement	12,000	3,184
Issuance of shares for payment of expenses	$ 875	$ 3,250

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash	$ 747,217	$ 814,778
Restricted cash	35,000	0
Accounts receivable, net	2,926,270	2,878,469
Inventories, net	2,395,862	2,217,674
Short-term deposits	245,250	0
Prepaid expense and other current assets	872,410	92,163
Total Current Assets	7,222,009	6,003,084
Fixed Assets, net	141,299	0
Total Assets	7,363,308	6,003,084
Current liabilities
Accounts payable	3,356,907	3,026,480
Accounts payable - related parties	68,105	130,552
Accrued liabilities	1,178,449	1,141,849
Short-term notes	525,000	4,720,000
Short-term line of credit, net	3,407,966	0
Advance from customer	0	497,689
Other short-term liabilities	437,500	418,500
Short-term investment loan	0	13,964,664
Total Current Liabilities	8,973,927	23,899,734
Other long-term liabilities	63,665	48,333
Total Liabilities	9,037,592	23,948,067
Commitments and Contingencies (Note 15)
Stockholders' Deficit
Preferred stock, $.001 par value; authorized shares - 1,000,000; 998 shares issued or outstanding at September 30, 2017; no shares issued and outstanding at December 31, 2016	1	0
Additional paid-in capital - Preferred Stock	997,999	0
Common stock, $.001 par value; authorized shares - 90,000,000; 65,680,023 shares issued and outstanding at September 30, 2017 and 29,195,260 shares issued and outstanding at December 31, 2016	65,680	40,232
Additional paid-in capital - Common Stock	44,155,152	25,422,750
Additional paid-in capital-Warrants	106,668	0
Accumulated deficit	(47,017,959)	(43,460,290)
Obligation to issue shares	128,500	0
Accumulated other comprehensive income	(110,325)	52,325
Total Stockholders' Deficit	(1,674,284)	(17,944,983)
Total Liabilities and Stockholders' Deficit	$ 7,363,308	$ 6,003,084