Language Arts Corp.

CIK:0001577189|SEC Filings

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
Statements of Operations (Unaudited) - USD ($)	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014
Statements Of Operations
REVENUES	$ 6,255	$ 11,331	$ 9,359	$ 15,061
COST OF SALES	(3,626)	8,201	4,202	10,210
GROSS MARGIN	9,881	3,130	5,157	4,851
OPERATING EXPENSES:
General and administrative	$ (121,345)	3,008,176	$ 297,392	3,070,557
Preproduction Costs		4,819		45,169
Product advertising costs	$ 8,818	$ 138,922	$ 26,628	143,848
Amortization Expense	$ 85		$ 440	124
Research and Development Costs				1,182
Total Operating Expenses	$ (112,442)	$ 3,151,917	$ 324,460	3,260,880
OTHER (INCOME) EXPENSE:
Interest Expense	63,786	7,395	157,056	11,590
Cost of debt	$ 13,750	$ 0	13,750	$ 0
Equity purchase agreement fees			$ 150,805
Unrealized gain on derivatives for convertible debt	$ 230,436
Total Other (Income) Expense	307,972	$ 7,395	$ 321,611	$ 11,590
NET LOSS	$ (185,649)	$ (3,156,182)	$ (640,916)	$ (3,267,619)
Basic and diluted loss per share	$ (0.00)	$ (0.03)	$ (0.00)	$ (0.03)
Basic and diluted weighted average common shares outstanding:	180,054,316	109,442,391	297,038,100	94,911,636

Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended
Statement of Cash Flows (Unaudited) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
OPERATING ACTIVITIES
Net loss	$ (640,916)	$ (3,267,619)
Adjustments to reconcile net loss to net cash provided by operations:
Bad debt expense	5,184
Amortization of deferred financing fees	71,129
Amortization expense	440	$ 124
Common stock issued for marketing services	104,055	$ 2,942,500
Equity purchase agreement fees	75,000
Cost of debt	13,750
Net changes in assets and liabilities:
Prepaid expenses	(2,083)
Accounts receivable	2,420	$ 348
Inventory	(23,191)	(229)
Accounts payable	(112,032)	19,564
Accrued interest	79,463	11,590
Net Cash Used in Operating Activities	$ (431,621)	(293,722)
INVESTING ACTIVITIES
Capitalized trademark costs		(283)
Net Cash Used in Investing Activities		(283)
FINANCING ACTIVITIES
Proceeds from short-term debt	$ 655,589	425,000
Proceed from shareholder loans	1,521	18,572
Repayment from short-term debt	(30,000)	(19,000)
Repayment from shareholder loans	(106,772)	$ (98,837)
Deferred financing fees	(94,650)
Net cash provided by Financing Activities	425,688	$ 325,735
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(5,932)	31,730
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	6,421	134
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 488	$ 31,864
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR:
Interest
Income taxes
NON-CASH TRANSACTIONS
Common stock issued for services to raise capital	$ 14,400
Conversion of debt to stock	$ 184,017

Balance Sheets - USD ($)	Dec. 31, 2015	Mar. 31, 2015
CURRENT ASSETS
Cash	$ 488	$ 6,421
Accounts receivable, net of allowance for doubtful accounts of $0 and $5,184 at December 31, 2015 and March 31, 2015, respectively	1,586	4,350
Inventory	71,863	$ 48,671
Prepaid expenses	$ 2,083
Fair value of derivatives on convertible debt
Total Current Assets	$ 76,020	$ 59,442
Trademark, net of $728 and $288 in accumulated amortization at December 31, 2015 and March 31, 2015, respectively	4,397	4,837
Total Assets	80,417	64,279
CURRENT LIABILITIES
Accounts payable	8,568	$ 121,321
Accrued liabilities	722
Accrued Interest	102,516	$ 23,053
Short-term debt, net of deferred financing fees,net of $23,521 at December 31, 2015 and nil at March 31, 2015, respectively	1,092,801	586,000
Due to Shareholder	71,335	176,586
Total Current Liabilities	1,275,942	906,960
Total Liabilities	$ 1,275,942	$ 906,960
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common stock, $0.001 par value, 500,000,000 shares authorized, 297,038,096 and 114,050,000 shares issued and outstanding as of December 31, 2015 and March 31, 2015, respectively	$ 271,073	$ 114,050
Additional paid-in capital	3,888,499	3,757,450
Accumulated deficit	(5,355,097)	(4,714,181)
Total Stockholders' Deficit	(1,195,525)	(842,681)
Total Liabilities and Stockholders' Deficit	$ 80,417	$ 64,279