JUBILEE4 GOLD, INC.

CIK:0001611277|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Total revenues	$ 2,893,058	$ 2,737,568	$ 8,800,352	$ 7,757,066
Cost of revenue	918,150	1,318,825	2,848,674	3,594,491
Gross margin	1,974,908	1,418,743	5,951,678	4,162,575
Operating expenses:
Selling, general and administrative	549,770	1,020,819	1,759,196	2,825,765
Salaries and wages	1,583,413	1,275,745	4,405,203	3,505,165
Professional and legal fees	465,503	665,093	1,237,705	2,082,204
Depreciation and amortization	1,049,235	1,179,597	3,320,641	3,516,418
Loss on impairment of intangible assets	39,963,107		41,333,085
Total operating expenses	43,611,028	4,141,254	52,055,830	11,929,552
Loss from continuing operations	(41,636,120)	(2,722,511)	(46,104,152)	(7,766,977)
Other (expense) income:
Change in fair value of convertible note	(321,915)	430,766	(1,104,856)	288,425
Change in fair value of convertible note - related party		491,442	498,233	(213,828)
Change in fair value of warrant liability	67,039	1,224,601	682,717	3,462,746
Change in fair value of contingent consideration				(880,050)
Gain on asset disposal	239,825		239,825
Loss on conversion of convertible note	(111,902)		(1,536,324)
Loss on issuance of warrants				(787,209)
Gain on reduction of obligation pursuant to acquisition			2,000
Interest expense	(355,469)	(538,591)	(1,029,979)	(1,227,271)
Other income			37,507
Other (expense) income, net	(482,422)	1,608,218	(2,210,877)	642,813
Loss from continuing operations	(42,118,542)	(1,114,293)	(48,315,029)	(7,124,164)
Loss discontinued operations	(70,259)	(141,276)	(65,141)	(160,798)
Net Loss	(42,188,801)	(1,255,569)	(48,380,170)	(7,284,962)
Other comprehensive income (loss):
Changes in foreign currency translation adjustment	62,069	(118,003)	110,264	(114,346)
Total other comprehensive income (loss)	62,069	(118,003)	110,264	(114,346)
Total comprehensive loss	(42,126,732)	(1,373,572)	(48,269,906)	(7,399,308)
Net loss attributable to common shareholders	$ (42,126,732)	$ (1,373,572)	$ (48,269,906)	$ (7,399,308)
Loss from continuing operations:
Basic	$ (0.36)	$ (0.01)	$ (0.46)	$ (0.09)
Diluted	(0.36)	(0.01)	(0.46)	(0.09)
Income (loss) from discontinued operations:
Basic	0	(0.00)	0	(0.00)
Diluted	0	(0.00)	0	(0.00)
Loss attributable to common shareholders:
Basic	(0.36)	(0.02)	(0.46)	(0.10)
Diluted	$ (0.36)	$ (0.02)	$ (0.46)	$ (0.10)
Weighted average common shares outstanding:
Basic	116,068,876	79,295,278	105,402,831	76,038,782
Diluted	116,068,876	79,295,278	105,402,831	76,038,782
Security monitoring
Total revenues	$ 84,147	$ 135,218	$ 279,042	$ 436,976
Systems installation
Total revenues	30,555	245,272	346,460	447,880
Software
Total revenues	$ 2,778,356	$ 2,357,078	$ 8,174,850	$ 6,872,210

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (48,380,170)	$ (7,284,962)
Income (loss) from discontinued operations	(65,141)	(160,798)
Loss from continuing operations	(48,315,029)	(7,124,164)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,320,641	3,516,418
Accretion of debt discounts	340,772	922,965
Loss on issuance of warrants		787,209
Provision for doubtful accounts	395,995	199,215
Share-based compensation expense	1,620,616	1,241,741
Change in fair value of convertible notes, net of discount	1,104,856	(288,425)
Change in fair value of warrant liability	(682,717)	(3,462,746)
Change in fair value of convertible notes, net of discount - related party	(498,233)	213,828
Change in fair value of contingent consideration		880,050
Loss on conversion of convertible note	1,536,324
Loss on impairment of intangible assets	41,333,085
Gain on asset disposal	(239,825)
Gain on reduction of obligation pursuant to acquisition	(2,000)
Gain on reduction of contingent consideration		(100,000)
Change in operating assets and liabilities:
Accounts receivable	620,859	(86,398)
Prepaid expenses	(536,692)	(239,374)
Deposits	19,146	144,488
Due from related party		(32,489)
Costs in excess of billings	(22,645)	12,401
Other receivable	(600,000)
Accounts payable and accrued expenses	40,674	832,690
Billings in excess of costs	(96,121)	(28,687)
Right of use assets and liabilities	(27,561)	37,848
Other long-term liabilities		2,000
Net cash provided by (used in) continued operations	(769,203)	(2,571,430)
Net cash provided by (used in) discontinued operations	30,525	(197,618)
Net cash used in operating activities	(738,678)	(2,769,048)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(619,483)	(657,765)
Purchase of domain names		(21,856)
Payments for business combination, net of cash acquired		(126,667)
Payments for asset acquisition	(48,000)
Proceeds from sale of security and guarding business	1,150,000
Net cash provided by (used in) continued operations	482,517	(806,288)
Net cash used in discontinued operations		(89,118)
Net cash provided by (used in) investing activities	482,517	(895,406)
CASH FLOWS FROM FINANCING ACTIVITIES:
Promissory note receivable		(75,000)
Payments pursuant to advances from related parties		(45,250)
Payments pursuant to notes payable	(429,521)	(15,401)
Payments pursuant to a promissory note	(300,000)	(280,000)
Proceeds from notes payable and financing arrangements	500,000	9,363
Proceeds from the issuance of a promissory note		580,000
Proceeds from the issuance of convertible notes payable		2,732,500
Proceeds from the issuance of common stock and warrants	1,490,487	1,306,313
Net cash provided by financing activities	1,260,966	4,212,525
Effect of foreign exchange rate changes on cash	115,378	(179,988)
Net change in cash	1,120,183	368,083
Cash, beginning of period	556,858	208,945
Cash, end of period	1,677,041	577,028
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest	128,475	40,625
Common stock issued pursuant to convertible notes payable	2,670,632	117,937
Debt discount for warrant liability		(1,578,225)
Equity issued pursuant to acquisition		13,619,611
Security Grade acquisition consideration settlement
Cash payable pursuant to acquisition		50,000
PIK interest payment of common stock	56,244	75,000
Common stock issued pursuant to contingent consideration as part of acquisition		1,788,654
Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets	$ 301,396	$ 1,485,511

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash	$ 1,677,041	$ 556,858
Accounts receivable, net	744,906	909,503
Prepaid expenses and other current assets	1,271,273	737,159
Costs & earnings in excess of billings	280,464	257,819
Other receivable	600,000
Current assets held for sale		1,056,885
Total current assets	4,573,684	3,518,224
Property and equipment, net	1,359,351	771,228
Intangible assets, net	9,768,319	14,395,287
Goodwill	9,743,281	52,894,399
Deposits and other assets	903,809	1,066,930
Promissory note receivable	75,000	75,000
Non-current assets held for sale		961,929
Total assets	26,423,444	73,682,997
Current liabilities:
Accounts payable and accrued liabilities	2,848,988	2,810,854
Billings in excess of costs	68,542	164,663
Notes payable, current portion	496,671	10,814
Obligation pursuant to acquisition		50,000
Convertible notes payable, net of discount	1,125,983	832,492
Convertible notes payable, net of discount - related party	1,285,220	1,584,360
Warrant liability	88,750	715,259
Promissory notes		300,000
Current liabilities held for sale		466,283
Total current liabilities	5,914,154	6,934,725
Long-term liabilities:
Notes payable and financing arrangements, net of current portion	31,700	422,059
Convertible notes payable, net of discount	385,000	385,000
Other long-term liabilities	621,781	776,512
Non-current liabilities held for sale		17,746
Total long-term liabilities	1,038,481	1,601,317
Total liabilities	6,952,635	8,536,042
Shareholders' equity:
Common stock; par value $0.001; 200,000,000 shares authorized; 116,413,095 shares issued and outstanding as of September 30, 2020; 93,608,619 shares issued and outstanding as of December 31, 2019	116,413	93,608
Additional paid-in capital	103,477,098	100,906,143
Accumulated other comprehensive income (loss)	30,363	(79,901)
Accumulated deficit	(84,167,849)	(35,787,679)
Total shareholders' equity	19,470,809	65,146,955
Total liabilities and shareholders' equity	26,423,444	73,682,997
Preferred Stock (Class A)
Shareholders' equity:
Preferred stock value	1,000	1,000
Total shareholders' equity	1,000	1,000
Preferred Stock (Class B)
Shareholders' equity:
Preferred stock value	13,784	13,784
Total shareholders' equity	$ 13,784	$ 13,784