Nuvola, Inc.

CIK:0001609319|SEC Filings

Unaudited Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Food and beverage revenues	$ 376,870	$ 93,058	$ 768,626	$ 93,058
Amusement and other revenues	324,518	66,823	615,619	78,823
Discounts and comps	(107,464)	(15,860)	(179,822)	(15,860)
Total revenue, net	593,924	144,021	1,204,423	156,021
Cost of food and beverage	95,360	30,550	191,775	30,550
Cost of amusement and other	4,375	386	8,019	386
Total cost of products	99,735	30,936	199,794	30,936
Operating payroll and benefits	304,586	152,762	632,626	152,762
Other store operating expenses	202,456	78,976	384,957	78,976
General and administrative expenses	807,151	848,098	1,457,388	1,832,616
Depreciation expense	131,211	41,310	260,951	43,754
Pre-opening costs		253,651		340,867
Total operating costs	1,545,139	1,405,733	2,935,716	2,479,911
Loss from operations	(951,215)	(1,261,712)	(1,731,293)	(2,323,890)
Interest expense	106,862	65,350	201,778	97,604
Other income	480,000	0	480,000	0
Net loss before income taxes	(578,077)	(1,327,062)	(1,453,071)	(2,421,494)
Provision for income taxes	0	0	0	0
Net loss	$ (578,077)	$ (1,327,062)	$ (1,453,071)	$ (2,421,494)
Net loss per share
Basic and diluted	$ (0.02)	$ (0.04)	$ (0.04)	$ (0.07)
Weighted average common shares outstanding
Basic and diluted	36,112,641	35,960,333	36,112,641	35,937,626

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (1,453,071)	$ (2,421,494)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	260,951	43,754
Deferred rent	78,287	143,226
Stock option expense	22,918	22,456
Amortization of VirTra shares and warrant		49,193
Amortization of stock prepayment for professional fees		123,084
Other income from available for sale warrant securities	(480,000)	0
Changes in operating assets and liabilities:
Accounts receivable - related parties		(24,000)
Accounts receivable - trade	7,628	(7,765)
Inventory	1,621	(35,755)
Prepaid expenses	21,131	(33,497)
Other assets		(385)
Accounts payable	182,591	397,584
Accrued expenses	209,324	141,720
Accrued interest	197,785	97,604
Deferred revenue	47,555	12,913
Net cash used in operating activities	(903,280)	(1,491,362)
Cash flows from investing activities:
Purchase of property and equipment	(2,398)	(2,261,244)
Proceeds from sale of available for sale securities	84,000
Net cash provided by (used in) investing activities	81,602	(2,261,244)
Cash flows from financing activities:
Proceeds from related party secured revolving line of credit	796,000	1,500,000
Principal payments on notes payable - other	(93,437)
Proceeds from convertible promissory notes	125,000	1,725,000
Net cash provided by financing activities	827,563	3,225,000
Net change in cash and cash equivalents	5,885	(527,606)
Cash and cash equivalents at beginning of period	35,014	823,541
Cash and cash equivalents at end of period	40,899	295,935
Supplemental disclosure of cash flow information:
Cash paid during period for interest	3,690	0
Cash paid during period for income taxes	0	0
Non-cash investing and financing activities:
- Stock-based compensation - options	22,918	22,456
- Change in warrant liability value		19,128
- Property and equipment purchases in accounts payable and accrued expenses		427,791
- Accounts payable converted to notes payable	132,865
- Reclassification of warrant liability to equity		55,467
- Other income from available for sale securities	$ 480,000
- Convertible promissory note and accrued interest converted to common stock		$ 28,150

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 40,899	$ 35,014
Accounts receivable - trade	27,845	35,473
Inventory	27,714	29,335
Prepaid expenses	27,847	48,978
Available for sale securities	480,000	84,000
Total current assets	604,305	232,800
Property and equipment, net	2,882,473	3,141,026
Other assets	6,900	6,900
Total assets	3,493,678	3,380,726
Current liabilities:
Accounts payable	589,451	539,725
Accrued expenses	1,417,913	1,010,804
Deferred revenue	174,038	126,483
Convertible notes payable - short-term	2,500,000	775,000
Convertible notes payable - related parties - short-term	500,000	500,000
Notes payable - other	275,348	235,920
Total current liabilities	5,456,750	3,187,932
Long-term liabilities:
Convertible notes payable - long-term	275,000	1,875,000
Deferred rent	325,595	247,308
Secured revolving line of credit - related parties	3,187,000	2,391,000
Total liabilities	9,244,345	7,701,240
Stockholders' deficit:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding at June 30, 2017 and December 31, 2016
Common stock, $0.001 par value; 200,000,000 shares authorized, 36,112,641 and 37,637,080 shares issued, 36,112,641 outstanding at June 30, 2017 and December 31, 2016, respectively	36,113	36,113
Additional paid-in capital	3,467,139	3,564,652
Accumulated deficit	(9,253,919)	(7,800,848)
Treasury stock at cost, 0 and 1,524,439 shares at June 30, 2017, and December 31, 2016, respectively		(120,431)
Total stockholders' deficit	(5,750,667)	(4,320,514)
Total liabilities and stockholders' deficit	$ 3,493,678	$ 3,380,726