$NGHI

Galenfeha, Inc.

CIK:0001574676|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended
	Jan. 28, 2018	Mar. 31, 2018	Mar. 31, 2019
Successor [Member]
Revenues		$ 708,126	$ 1,007,082
Less: Cost of Sales		206,395	264,433
Operating Expenses:
General and administrative		90,994	351,599
Payroll expenses		178,117	302,343
Professional fees		25,699	67,876
Depreciation and amortization expense		54,784	39,929
Total operating expenses		349,594	761,747
Income (loss) from operations		152,137	(19,098)
Other (expense) income:
Miscellaneous income (expense)		667	(1,391)
Realized loss on sale of investments		(7,590)	(10,994)
Unrealized gain (loss) on investments		(9,912)	33,295
Interest expense		(66,834)	(177,285)
Gain (loss) on derivative instruments		102,604	(77,272)
Total other (expense) income		18,935	(233,647)
Net income (loss)		$ 171,072	$ (252,745)
Net income per share, basis (in dollars per share)		$ 0.00	$ (0.00)
Net income per share, diluted (in dollars per share)		$ 0.00	$ (0.00)
Weighted average number of common shares outstanding, basic (in shares)		72,153,253	89,929,857
Weighted average number of common shares outstanding, diluted (in shares)		72,153,253	89,929,857
Predecessor [Member]
Revenues	$ 412,416
Less: Cost of Sales	45,626
Operating Expenses:
General and administrative	107,031
Payroll expenses	64,672
Professional fees	375
Depreciation and amortization expense	27,631
Total operating expenses	199,709
Income (loss) from operations	167,081
Other (expense) income:
Miscellaneous income (expense)
Realized loss on sale of investments
Unrealized gain (loss) on investments
Interest expense	(9,969)
Gain (loss) on derivative instruments
Total other (expense) income	(9,969)
Net income (loss)	$ 157,112

Consolidated Statements of Cash Flows (unaudited) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended	11 Months Ended
	Jan. 28, 2018	Mar. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Successor [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$ 171,072	$ (252,745)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		54,784	39,929
(Gain) Loss on derivative instruments		(102,604)	77,272
Amortization for debt discounts on notes payable and convertible notes		30,956	144,860
Amortization of right of use assets, operating leases			17,679
Bad debt expense			144,658
Realized losses on investments		7,590	10,994
Unrealized (gains) losses on investments		9,912	(33,295)
Changes in operating assets and liabilities:
Accounts receivable		62,391	(313,333)
Due from related party		(4,000)
Inventory		(60,000)	7,227
Prepaid expenses and other current assets		(93,686)
Accounts payable and accrued liabilities		(41,068)	10,125
Right of use liabilities, operating leases			(19,679)
Net cash provided by (used in) operating activities		35,347	(166,308)
CASH FLOWS FROM INVESTING ACTIVITIES
Repurchase and cancellation of common shares		(913)
Sale and purchases of investments, net		30,418	28,451
Cash assumed in acquisition of subsidiary		171,703
Net cash provided by (used in) investing activities		201,208	28,451
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit		108,030	657,000
Payments on lines of credit			(656,423)
Payments on other loans payable		(100,348)
Payments on notes payable and capital leases		(144,861)	(48,721)
Proceeds on liabilities due to officer and related parties		300,000	50,000
Payments on liabilities due to officer and related parties		(28,500)	(25,000)
Principal payments on convertible debenture contracts		(21,840)
Payments on margin loan		(14,203)
Net cash provided by (used in) financing activities		98,278	(23,144)
CHANGE IN CASH AND CASH EQUIVALENTS		334,833	(161,001)
Cash and cash equivalents at beginning of period		22,162	181,645	$ 22,162
Cash and cash equivalents at end of period		356,995	20,644	$ 181,645
Cash paid for :
Interest		34,787	18,854
Income Taxes
Non-Cash Transactions
Common stock issued for debt conversion		12,420	133,000
Derivative liability extinguished on conversion		55,938	169,503
Debt discount from issuance of new derivative liabilities			182,958
Initial recognition of ROU assets and liabilities due to adoption of ASC 842			139,048
Finance leases reclassified out of notes payable			260,137
Preferred Series B shares converted into common shares			15,348
Preferred Series B shares converted into Preferred Series A shares			12,000
Fixed assets purchased through accounts and notes payable			$ 65,549
Predecessor [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 157,112
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	27,631
(Gain) Loss on derivative instruments
Amortization for debt discounts on notes payable and convertible notes
Amortization of right of use assets, operating leases
Bad debt expense
Realized losses on investments
Unrealized (gains) losses on investments
Changes in operating assets and liabilities:
Accounts receivable	(284,592)
Due from related party	18,000
Inventory
Prepaid expenses and other current assets
Accounts payable and accrued liabilities	35,930
Right of use liabilities, operating leases
Net cash provided by (used in) operating activities	(45,919)
CASH FLOWS FROM INVESTING ACTIVITIES
Repurchase and cancellation of common shares
Sale and purchases of investments, net
Cash assumed in acquisition of subsidiary
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit	627,147
Payments on lines of credit	(378,897)
Payments on other loans payable
Payments on notes payable and capital leases	(27,415)
Proceeds on liabilities due to officer and related parties	35,000
Payments on liabilities due to officer and related parties	(38,561)
Principal payments on convertible debenture contracts
Payments on margin loan
Net cash provided by (used in) financing activities	217,274
CHANGE IN CASH AND CASH EQUIVALENTS	171,355
Cash and cash equivalents at beginning of period	348
Cash and cash equivalents at end of period	171,703
Cash paid for :
Interest	7,725
Income Taxes
Non-Cash Transactions
Common stock issued for debt conversion
Derivative liability extinguished on conversion
Debt discount from issuance of new derivative liabilities	51,853
Initial recognition of ROU assets and liabilities due to adoption of ASC 842
Finance leases reclassified out of notes payable
Preferred Series B shares converted into common shares
Preferred Series B shares converted into Preferred Series A shares
Fixed assets purchased through accounts and notes payable

Consolidated Balance Sheets (Unaudited) - Successor [Member] - USD ($)	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 20,644	$ 181,645
Marketable securities	102,000	108,150
Accounts receivable	983,941	815,266
Inventory	157,751	164,978
Total current assets	1,264,336	1,270,039
Property and equipment, net of accumulated depreciation	758,999	733,379
Right of use assets, operating leases	103,369
Goodwill	286,497	286,497
TOTAL ASSETS	2,413,201	2,289,915
CURRENT LIABILITIES
Accounts payable and accrued liabilities	485,379	492,805
Lines of credit payable	640,418	639,841
Note payable	148,602	316,546
Convertible notes payable, net of discount	11,409	182,507
Short-term non-secured debt	60,000	60,000
Due to officer and related parties	352,144	327,144
Right of use liabilities, operating leases, current portion	88,025
Right of use liabilities, finance leases, current portion	162,952
Derivative liabilities	90,727
Total current liabilities	2,039,656	2,018,843
Right of use liabilities, operating leases	31,344
Right of use liabilities, finance leases	75,720
Long term notes payable	240,216	294,565
Total liabilities	2,386,936	2,313,408
STOCKHOLDERS’ EQUITY (DEFICIT)
Common stock Authorized: 150,000,000 common shares, $0.001 par value, 95,944,216 and 72,300,000 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	95,945	72,300
Additional paid-in capital	4,003,287	3,709,081
Accumulated deficit	(4,092,267)	(3,839,522)
Total stockholders’ equity (deficit)	26,265	(23,493)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	2,413,201	2,289,915
Preferred Stock [Member] \| Preferred Class A [Member]
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock	19,300	7,300
Preferred Stock [Member] \| Preferred Class B [Member]
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock		$ 27,348