INNOVATION ECONOMY Corp

CIK:0001563004|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenues
Operating Expenses
General and administrative	$ 1,294,711	$ 1,052,492	$ 2,510,819	$ 1,739,517
Marketing and sales	398,333	167,813	528,481	299,704
Research and development	401,134	115,789	645,195	298,762
Total Operating Expenses	2,094,178	1,336,094	3,684,495	2,337,983
Loss From Operations	(2,094,178)	$ (1,336,094)	(3,684,495)	(2,337,983)
Other Income (Expense)
Amortization of deferred financing costs	(19,227)		(38,454)
Amortization of debt discount	(207,851)		(332,795)
Change in fair value of derivative liabilities	$ 67,064		$ 85,269
Loss on settlement of accounts payable				(8,354)
Other income			$ 300	10,000
Total Other Income (Expense)	$ (160,014)		(285,680)	1,646
Net Loss	(2,254,192)	$ (1,336,094)	(3,970,175)	(2,336,337)
Net loss attributable to non-controlling interests	(196,530)	(89,324)	(354,825)	(204,821)
Net Loss attributed to stockholders of Innovation Economy Corporation	$ (2,057,662)	$ (1,246,770)	$ (3,615,350)	$ (2,131,516)
Net Loss Per Share: Basic and Diluted	$ (0.22)	$ (0.13)	$ (0.38)	$ (0.23)
Weighted Average Common Shares Outstanding: Basic and Diluted	9,444,828	9,322,909	9,444,828	9,103,462

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (3,970,175)	$ (2,336,337)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	$ 223,735	470,083
Stock issued for services		73,163
Warrants issued for services		60,381
Depreciation and amortization expense	$ 35,795	29,724
Change in fair value of derivative liabilities	$ (85,269)
Loss on settlement of accounts payable		8,354
Amortization of deferred financing costs	$ 38,454
Amortization of debt discount	332,795
Changes in operating assets and liabilities:
Other current assets	(21,603)	3,000
Accounts payable	517,535	(12,418)
Accrued expenses and other current liabilities	(55,064)	(74,932)
NET CASH USED IN OPERATING ACTIVITIES	(2,983,797)	(1,778,982)
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property and equipment	(133,407)	(5,592)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable	$ (13,500)	$ (61,250)
Proceeds from notes payable
Proceeds from convertible note payable	$ 2,100,000
Payment of deferred offering costs	$ (446,623)
Proceeds from common stock issued for cash		$ 2,340,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	$ 1,639,877	2,278,750
NET CHANGE IN CASH AND CASH EQUIVALENTS	(1,477,327)	494,176
Cash and cash equivalents, beginning of period	1,881,776	722,736
Cash and cash equivalents, end of period	$ 404,449	$ 1,216,912
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes
Cash paid for interest	$ 1,309	$ 2,840
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Debt discount in conjunction with the recording of derivative liability	$ 795,903
Warrants issued to settle accounts payable		$ 26,855

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 404,449	$ 1,881,776
Other current assets	45,743	24,140
Total Current Assets	450,192	1,905,916
Property and equipment, net	256,643	159,031
Deferred financing costs, net	87,059	125,513
Deferred offering costs	684,667	238,044
TOTAL ASSETS	1,478,561	2,428,504
Current Liabilities
Accounts payable	929,758	412,223
Accrued expenses and other current liabilities	457,782	512,761
Notes payable	33,955	47,455
Deferred revenue	210,125	210,210
Total Current Liabilities	1,631,620	1,182,649
Non-Current Liabilities
Convertible notes payable, net of debt discount of $1,358,536 and $895,428 as of June 30, 2015 and December 31, 2014, respectively	3,526,464	1,889,572
Derivative liabilities	1,643,677	933,043
Total Non-Current Liabilities	5,170,141	2,822,615
Total Liabilities	$ 6,801,761	$ 4,005,264
Commitments and contingencies
Stockholders' Deficiency
Common Stock, $0.00001 par value, 500,000,000 shares authorized 9,444,828 shares issued and outstanding at June 30, 2015 and December 31, 2014.	$ 94	$ 94
Additional paid-in capital	13,223,222	12,999,487
Accumulated deficit	(16,897,405)	(13,282,055)
Total Stockholders' deficit before non controlling interests	(3,674,089)	(282,474)
Non-controlling interest	(1,649,111)	(1,294,286)
Total Stockholders' Deficiency	(5,323,200)	(1,576,760)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$ 1,478,561	$ 2,428,504