Water Now, Inc.

CIK:0001713909|SEC Filings

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
Statements of Operations (Unaudited) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenues, net	$ 2,970	$ 20,092	$ 7,635	$ 334,393
Cost of goods sold	2,133	16,553	4,260	281,080
Gross Profit	837	3,539	3,375	53,313
Operating expenses
Salaries and wages	218,958	398,579	620,701	1,310,049
Professional fees	255,871	271,661	424,847	812,417
Selling, general and administrative	213,751	385,772	582,464	1,087,673
(Gain) Loss on sale of assets			19,988	(4,070)
Total operating expenses	688,580	1,056,012	1,648,000	3,206,069
Loss from operations	(687,743)	(1,052,473)	(1,644,625)	(3,152,756)
Other income (expense)
Interest expense	(784,712)	(3,760,191)	(2,933,520)	(4,885,981)
Gain (Loss) on derivative liability	442,317	832,566	(867,361)	646,557
Other income			895
Loss on extinguishment of debt		(130,052)		(182,877)
Total other expense	(342,395)	(3,057,677)	(3,799,986)	(4,422,301)
Loss before provision for income taxes	(1,030,138)	(4,110,150)	(5,444,611)	(7,575,057)
Provision for income taxes
Net Loss	$ (1,030,138)	$ (4,110,150)	$ (5,444,611)	$ (7,575,057)
Loss per share
basic and fully diluted	$ (0.01)	$ (0.10)	$ (0.08)	$ (0.20)
Weighted-average number of shares of common stock
basic and fully diluted	77,463,408	41,444,725	70,078,770	38,469,731

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
Statements of Cash Flows (Unaudited) - USD ($)	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (5,444,611)	$ (7,575,057)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued as payment for services and employee’s compensation	33,600	370,275
Depreciation and amortization	224,229	192,338
Lease expense	2,402
Amortization of discounts	794,192	1,345,498
Derivative expense at issuance	1,370,551	2,765,228
Amortization of interest for revenue sharing agreements	794,192	462,277
Interest converted to common shares	43,885	59,049
Loss (Gain) on sale of assets	19,988	(4,070)
Change in fair value of derivative liability	867,361	(646,557)
Loss on extinguishment of debt		182,877
Changes in operating working capital items:
Accounts receivable		(295,800)
Other receivables		(30,000)
Inventory	4,260	(14,174)
Prepaid expenses	21,264	(5,663)
Security deposit	10,849	(23,481)
Accounts payable	3,081	847,944
Accrued expenses	278,766	(136,581)
Net cash used in operating activities	(1,262,622)	(2,505,897)
Cash flows from investing activities:
Purchases of property and equipment	(30,000)	(1,650,783)
Proceeds from sale of assets	684,500	60,000
Payment for distributorship agreement		(400,000)
Net cash provided by (used in) investing activities	654,500	(1,990,783)
Cash flows from financing activities:
Cash advances from related parties	367,036	417,997
Cash repayments to related parties	(317,852)	(700,494)
Borrowings on notes payable	340,400	630,000
Payments on notes payable	(50,158)	(430,000)
Borrowings on convertible notes payable	631,195	2,562,935
Payments on convertible notes payable	(397,633)	(945,122)
Issuances of common stock		299,387
Borrowings on revenue sharing liabilities		2,736,000
Net cash provided by financing activities	572,988	4,570,703
Net increase (decrease) in cash	(35,134)	74,023
Cash at beginning of period	66,042	53,106
Cash at end of period	30,908	127,129
Supplemental Disclosure of Interest and Income Taxes Paid:
Interest paid during the period	75,718	132,507
Non-cash disclosures:
Conversion of convertible notes payable into common shares	438,796	585,168
Purchase of property and equipment through issuance of notes payable	142,361
Reclass of derivative upon settlement	2,395,186	1,114,472
Original Issue Discount	78,805	231,565
Discount from derivative		145,000
Discount from shares issued for issuance costs		$ 572,858

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current Assets
Cash	$ 30,908	$ 66,042
Accounts receivable	250	118,250
Inventory	513,589	517,849
Prepaid expenses		21,264
Total Currents Assets	544,747	723,405
Property and equipment - net	2,155,916	2,137,272
Operating lease right-of-use assets	549,030	753,432
Distributorship agreement, net	616,667	766,667
Security deposit	23,481	34,330
Total Assets	3,889,841	4,415,106
Current Liabilities
Accounts payable	1,382,295	1,285,214
Accrued expenses	811,278	532,512
Distributorship accrued expense	250,000	250,000
Derivative liability	746,049	508,323
Advances from related parties	53,591	4,407
Deposits received on sale of assets	625,000
Current portion of operating lease liabilities	190,213	247,070
Current portion of convertible notes payable, net of debt discounts	2,050,696	2,143,369
Current portion of notes payable	835,414	504,000
Current portion of revenue sharing liabilities	3,795,258
Total Current Liabilities	10,739,794	5,474,895
Long-term notes payable	101,189
Operating lease liabilities	374,994	520,137
Revenue sharing liabilities	2,041,389	5,042,455
Total Liabilities	13,257,366	11,037,487
Stockholders’ Deficit
Preferred stock – no par value, 10,000,000 shares authorized, zero issued and outstanding at September 30, 2020 and December 31, 2019
Common stock – no par value, 90,000,000 shares authorized, 77,242,560 and 55,663,191 shares issued and 77,046,368 and 55,466,999 shares outstanding as of September 30, 2020 and December 31, 2019, respectively	9,376,224	9,071,943
Additional paid-in capital	5,208,650	2,813,464
Subscription receivable	(50,000)	(50,000)
Treasury stock, at cost (100,000 shares held as of September 30, 2020 and December 31, 2019)	(10,000)	(10,000)
Accumulated deficit	(23,892,399)	(18,447,788)
Total Stockholders’ Deficit	(9,367,525)	(6,622,381)
Total Liabilities and Stockholders’ Deficit	$ 3,889,841	$ 4,415,106