Fraud Protection Network, Inc.

CIK:0001580276|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
Income Statement [Abstract]
Net revenues	$ 491,333	$ 334,948	$ 1,294,446	$ 419,346
Operating expenses:
Sales and marketing	201,679	42,694	496,660	57,683
Data	202,440	48,094	616,701	194,909
Technology and software maintenance	39,901	57,108	136,947	136,373
General and administrative	451,714	293,296	1,304,758	771,271
Depreciation and amortization	26,534	26,571	80,263	62,729
Total operating expenses	922,268	467,763	2,635,329	1,222,965
Operating loss	(430,935)	(132,815)	(1,340,883)	(803,619)
Other income (expense):
Interest income	9		583
Interest expense	(63,066)	(50,346)	(177,882)	(122,291)
Total other expense, net	(63,057)	(50,346)	(177,299)	(122,291)
Loss before income taxes	(493,992)	(183,161)	(1,518,182)	(925,910)
Provision for income taxes
Net loss	$ (493,992)	$ (183,161)	$ (1,518,182)	$ (925,910)
Loss per share:
Basic and diluted	$ (0.05)	$ (0.02)	$ (0.15)	$ (0.10)
Weighted average number of common shares outstanding:
Basic and diluted	10,364,350	9,680,527	10,147,490	9,661,401

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (1,518,182)	$ (925,910)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	80,263	62,729
Share-based compensation	228,092
Amortization of debt discount	20,400
Earnings from non-monetary transfer to joint venture		(136,842)
Changes in operating assets and liabilities:
Accounts receivable	(124,257)	(19,248)
Deferred costs	(6,994)	(9,383)
Prepaid expenses and other current assets	11,326
Accounts payable	413,832	39,094
Accrued expenses and other current liabilities	(28,425)	(46,559)
Deferred revenues	38,961	102,349
Net cash used in operating activities	(884,984)	(933,770)
Cash flows from investing activities:
Purchases of property and equipment	(10,448)	(60,260)
Investment return in joint venture	729	2,773
Software development costs capitalized	(134,357)	(95,572)
Net cash used in investing activities	(144,076)	(153,059)
Cash flows from financing activities:
Advances from related party	40,000
Repayments of advances from related party	(40,000)	(10,000)
Proceeds from sale of treasury shares		386,875
Proceeds from issuance of convertible notes	670,000	705,000
Procceds from issuance of common stock and warrants	210,000
Net cash provided by financing activities	880,000	1,081,875
Net decrease in cash	(149,060)	(4,954)
Cash at beginning of period	179,675	172,769
Cash at end of period	30,615	167,815
Supplemental disclosure of cash flow information:
Cash paid for interest	146,179	98,506
Cash paid for taxes
Supplemental disclosure of non-cash investing and financing activities:
Convertible debt converted into common shares	295,000
Warrants issued in conjunction with convertible promissory notes; (warrants treated as debt discount)	82,255
Common stock and warrants issued to settle accounts payable	5,350
Treasury shares issued to settle liability for shares to be issued		200,000
Treasury shares to be issued upon conversion of notes payable		$ 240,000

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 30,615	$ 179,675
Accounts receivable	156,326	32,069
Deferred costs	19,270	12,276
Prepaid expenses and other current assets	26,268	37,594
Total current assets	232,479	261,614
Property and equipment, net	104,464	120,921
Software development costs, net	276,250	195,251
Investment in joint venture	115,734	116,463
Other assets	2,430	2,430
Total assets	731,357	696,679
Current liabilities:
Accounts payable	554,005	145,523
Accrued expenses and other current liabilities	84,238	112,663
Deferred revenues	87,777	48,816
Convertible notes payable, current	1,305,000	1,430,000
Total current liabilities	2,031,020	1,737,002
Long-term liabilities:
Convertible notes payable, non-current (net of unamortized debt discount of $61,855)	438,145
Total liabilities	2,469,165	1,737,002
Commitments and contingencies - See Note 8
Shareholders' deficit:
Preferred stock, par value $0.001 per share; 1,000,000 shares authorized;1,000,000 shares issued and outstanding	5,000	5,000
Common stock, par value $0.001 per share; 50,000,000 shares authorized;10,379,567 and 10,000,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	10,380	10,000
Additional paid-in capital	5,339,231	4,518,914
Accumulated deficit	(7,092,419)	(5,574,237)
Total shareholders' deficit	(1,737,808)	(1,040,323)
Total liabilities and shareholders' deficit	$ 731,357	$ 696,679