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As Of Filer Filing For·On·As Docs:Size Issuer Agent 7/25/16 Elio Motors, Inc. 10-12B 6:2.8M Securex Filings/FA |
Document/Exhibit Description Pages Size 1: 10-12B Registration of Securities (General Form) HTML 1.22M 2: EX-10.19 Material Contract HTML 170K 3: EX-10.20 Material Contract HTML 14K 4: EX-10.21 Material Contract HTML 15K 5: EX-10.22 Material Contract HTML 15K 6: EX-10.23 Material Contract HTML 36K
Arizona
|
27-1288581
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
to be so registered
|
Name of each exchange on which
each class is to be registered
|
|
Common Stock, no par value
|
NYSE MKT
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company þ
|
The Elio – Target Vehicle Specifications Overview
|
|
Body and chassis
|
|
Chassis/Body:
|
Spaceframe & panel
|
Layout:
|
Front engine, front-wheel drive, 3-wheeled, open front wheel
|
Powertrain
|
|
Engine:
|
0.9 liter 3 cylinder, 55 horsepower
|
Transmission:
|
Standard 5 speed manual or available automatic
|
Dimensions
|
|
Wheelbase:
|
110 inches
|
Length:
|
160.5 inches
|
Track Width:
|
66.8 inches
|
Height:
|
54.2 inches
|
Target Curb Weight:
|
1350 pounds
|
Trunk Space:
|
27 inches x 14 inches x 10 inches (2.2 cubic feet)
|
Performance
|
|
0-60 mph:
|
9.6 seconds
|
Top Speed:
|
100 miles per hour+
|
Fuel Economy:
|
84 miles per gallon EPA highway; 49 miles per gallon EPA city
|
Range:
|
Up to 672 miles
|
Other
|
|
Fuel:
|
Unleaded gasoline
|
Fuel Capacity:
|
8 gallons
|
|
·
|
Second Vehicle and Used Car Markets – According to the 2009 National Household Travel Survey, there were 1.86 vehicles per household, and greater than 41 million households had two vehicles, accounting for 36.3% of all US households. The 2014 Used Car Industry Report published by the National Independent Automobile Dealers Association indicated that for 2013, 41.99 million used vehicles and 15.58 new vehicles were sold. The 2014 Used Vehicle Market Report prepared by Edmunds.com revealed that the average transaction price for a ten-year old vehicle was $7,689. We believe that the Elio presents an attractive alternative to purchasing a used car for a second vehicle. Given the option of purchasing a used vehicle with 120,000 miles on it for $7,689 versus a new vehicle with all the guarantees and warranties for under $7,600, many buyers, especially first-time buyers and college students,
will present a solid opportunity.
|
|
·
|
Clunker Segment - Of the 2587 million vehicles on the road in the U.S. today, 120 million are six to 14 years old or older, or “Clunkers.” This segment consists of clunker drivers who today, have no intention of getting a different vehicle. They do not want to (or cannot) purchase a substantially better vehicle. Given the low upfront cost of the Elio and its low operating cost, we believe that the Elio will stand out as a newer, lost-cost alternative for clunker drivers. If one were to finance the cost of the Elio over six years, and replaced a vehicle with 18 miles per gallon or less, the savings on gas from the new Elio would entirely pay for the vehicle8.
|
|
·
|
Third Vehicle - We had Berline (a Detroit advertising agency), perform a survey to assess the market for the Elio. Berline surveyed 2,000 people who watched a video about the Elio and then completed a questionnaire. 23.8% of the respondents classified themselves as either “Very Likely” or “Extremely Likely” to purchase an Elio, an impressive result for a new vehicle. Even more interesting, 72.7% of this group of “Very Likely” or “Extremely Likely” indicated they would buy an Elio in addition to their current vehicles.
|
|
·
|
We will have established a network of automotive supplier relationships that are not easily duplicated by motorcycle manufacturers or other startups.
|
|
·
|
We believe we will have created a sustainable brand loyalty through the manner in which we treat our customers. The Elio is being deliberately priced low even though the market will bear a higher price without any competitors at the outset. By not opportunistically pricing the Elio, it will be difficult for competitors to attract Elio customers away. We believe that most major auto manufacturers are saddled with legacy costs (pension obligations, etc.) and massive corporate infrastructure and overhead that would make it very difficult for them to compete at our base price.
|
|
·
|
“ELIO and Design” (the logo consisting of the name “Elio” in a circle) – Registered April 8, 2014, registration number 4510655.
|
|
·
|
the availability of alternative fuel vehicles, including plug-in hybrid electric and all-electric vehicles;
|
|
·
|
government regulations and economic incentives promoting fuel efficiency and alternate forms of transportation.
|
Uses (amounts in thousands)
|
Amount
|
Prototype Build
|
5,542
|
Engineering Design & Development
|
46,874
|
Advertsing
|
11,553
|
Other Expenses/Working Capital
|
25,495
|
Production Tooling
|
99,836
|
Plant Equipment & Setup
|
127,604
|
Total Uses
|
316,904
|
Reservations
|
25,524
|
Sales Margin
|
18,222
|
Funds Needed
|
273,158
|
Name and address of beneficial owner (1)
|
Amount of nature of
beneficial ownership (2) |
Percent of class (3)
|
||||||
17,995,000 | (4) | 67.7 | % | |||||
Elio Engineering, Inc.
|
12,750,000 | 48.0 | % | |||||
Stuart Lichter
|
7,273,301 | 25.2 | % | |||||
Kenneth Way
|
160,000 | 0.6 | % | |||||
James Holden
|
117,500 | 0.4 | % | |||||
Connie Grennan
|
0 | -- | ||||||
Hari Iyer
|
0 | -- | ||||||
David Schembri
|
0 | -- | ||||||
All directors and officers as a group (7 persons)
|
25,575,801 | (4) | 88.5 | % |
(3)
|
Based on 26,591,998 shares outstanding as of June 30, 2016. Shares of common stock subject to convertible securities currently exercisable or exercisable within 60 days of June 30, 2016 are deemed outstanding for purposes of computing the percentage ownership of the person holding such convertible securities, but are not deemed outstanding for purposes of computing the percentage ownership of any other person.
|
(4)
|
Includes 12,750,000 shares owned of record by Elio Engineering, Inc. of which Mr. Elio is the President, a director and majority shareholder.
|
(5)
|
Mr. Lichter has the right to convert promissory notes in the principal amount of $1,955,000 into 326,923 shares of common stock and the right to exercise immediately exercisable options to purchase 1,946,378 shares. See Item 7 “Certain Relationships and Related Transactions, and Director Independence.”
|
Name
|
Position
|
Age
|
Term of Office
|
Executive Officers:
|
|||
Chairman and Chief Executive Officer
|
52
|
October 2009
|
|
Connie Grennan
|
Chief Financial Officer
|
68
|
March 2013
|
Directors:
|
|||
Director
|
52
|
October 2009
|
|
James Holden
|
Director
|
65
|
November 2012
|
Hari Iyer
|
Director
|
51
|
November 2012
|
Stuart Lichter
|
Director
|
67
|
November 2012
|
David C. Schembri
|
Director
|
63
|
November 2012
|
Kenneth L. Way
|
Director
|
77
|
November 2012
|
Significant Employees:
|
|||
Gino Raffin
|
VP of Manufacturing and Product Launches
|
72
|
March 2013
|
Steven Semansky
|
VP of Supply Chain Management
|
52
|
March 2013
|
Jeff Johnston
|
VP of Engineering
|
54
|
February 2016
|
Tim Andrews
|
Senior Vice President of Marketing
|
50
|
November 2013
|
Chip Stempeck
|
Vice President of Customer Experience
|
51
|
March 2013
|
Jerome Vassallo
|
Vice President of Sales
|
51
|
April 2013
|
Joel Sheltrown | Vice President of Governmental Affairs | 69 | March 2013 |
Don Harris
|
Vice President of Retail Operations
|
60
|
April 2014
|
Name and principal
position
|
Year
|
Salary ($)
|
All other
compensation ($)
|
Total ($)
|
Paul Elio, Chief
Executive Officer
|
2015
|
250,000
|
0
|
250,000
|
2014
|
250,000
|
0
|
250,000
|
|
Hari Iyer, Chief
Operating Officer
|
2015
|
250,000
|
0
|
250,000
|
2014
|
250,000
|
0
|
250,000
|
|
Connie Grennan,
Chief Financial
Officer
|
2015
2014
|
150,000
150,000
|
0
0
|
150,000
150,000
|
Date
|
Amount
|
Maturity
|
Payment Terms
|
Interest
Expense
for 2015
|
Interest
Expense
for 2014
|
|||||||||
$ | 1,000,500 |
Unsecured; interest accrues at 10% per annum; all accrued interest and unpaid principal are payable upon maturity; $500 drawn March 6, 2014; $1,000,000 drawn December 2, 2014
|
$ | 101,440 | $ | 8,097 | ||||||||
$ | 300,000 |
Unsecured; interest accrues at 10% per annum; all accrued interest and unpaid principal are payable upon maturity; $100,000 drawn May 30, 2014; $200,000 drawn November 10, 2014
|
$ | 30,416 | $ | 8,806 | ||||||||
$ | 600,000 |
Secured by Elio Motors’ reservation accounts and deposit held by Racer Trust; interest accrues at 10% per annum; all accrued interest and unpaid principal are payable upon maturity; $100,000 drawn April 17, 2014; $500,000 drawn June 20, 2014
|
$ | 60,834 | $ | 34,111 |
Item 9.
|
Market Price of and Dividends on the Registrant’s Common Equity and Related Stockholder Matters.
|
Bid Prices ($)
|
||
High
|
Low
|
|
2016 Fiscal Year:
|
||
$75.00
|
$14.00
|
|
$24.82
|
$13.01
|
Date
|
Persons or Class
of Persons |
Securities
|
Consideration
|
December
2013
|
Stuart Lichter
|
5,000,000 shares of common stock provided by existing shareholder
|
$7,422,506
|
February
2014
|
Holders of convertible notes (1)
|
412,500 shares of common stock provided by existing shareholder
|
Conversion of $342,563 in principal and interest of convertible notes
|
July 2014
|
Principals of Black Swan, LLC (1)
|
62,500 shares of common stock
|
Services valued at $375,000
|
December
2014
|
Kenneth Way and James Holden
|
15,000 shares of common stock
|
$150,000
|
December
2014
|
Stuart Lichter (1)
|
Option to purchase shares equal to 5% ownership for $7,500,000 (the “5% Option”)
|
Making loans to Company
|
June 2015
|
Stuart Lichter (1)
|
Option to purchase shares equal to 2% ownership for $3,000,000 (the “2% Option)
|
Making loan to Company
|
March 2015 to
December
2015
|
Accredited investors (2)
|
Convertible subordinated secured promissory notes due September 30, 2022 (the “Convertible Notes”)
|
$5,341,560
|
December
2015
|
Designees of Network 1 Financial Securities, Inc. (1)
|
Warrants to purchase a total of 83,621 shares of common stock at $7.18 per share and 3,534 shares at $11.58 per share.
|
Placement agent services in connection with the offering of Convertible Notes
|
November
2015 to
February
2016
|
Accredited and non-accredited investors (3)
|
1,410,048 shares of common stock
|
$16,920,576
|
December
2015 to
February
2016
|
StartEngine CrowdFunding Inc., WhoYouKnow, LLC and Benjamin Bakshi (1)
|
Warrants to purchase a total of 21,400 shares of common stock at $12.00 per share
|
Services provided in connection with Regulation A offering
|
March 2016 to
June 2016
|
Holders of the Convertible Notes (2)
|
33,438 shares of common stock
|
Conversion of $197,947 in principal and interest of the Convertible Notes
|
March to June
2016
|
StartEngine Crowdfunding Inc. and WhoYouKnow, LLC (1)
|
8,012 shares of common stock
|
Cashless exercise of warrants
|
May 2016
|
Stuart Lichter (1)
|
Option to purchase 58,824 shares of common stock at $17.00 per share
|
Providing guaranty to PayPal
|
May 2016
|
Stuart Lichter (1)
|
Option to purchase 1,887,554 shares of common stock at $5.56 per share
|
Replaces 5% and 2% Options
|
May and June
2016
|
3 accredited investors (1)
|
63,000 shares of common stock
|
$1,071,000
|
|
(1)
|
We relied upon the exemption from registration contained in Section 4(2) of the Securities Act, as all of the investors were deemed to be sophisticated with respect to the investment in the securities due to their financial condition and involvement in the registrant’s business and had access to the kind of information which registration would disclose.
|
|
(2)
|
We relied upon the exemption from registration contained in Rule 506(c) of Regulation D under the Securities Act, as the securities were sold only to accredited investors.
|
|
(3)
|
We relied upon the exemption from registration contained Regulation A under the Securities Act and filed an offering statement which was qualified on November 20, 2015.
|
|
·
|
a majority of the votes entitled to be cast by the voting group, if the amendment would create dissenters’ rights for that voting group; and
|
|
·
|
in any other case, if a quorum is present in person or by proxy consisting of a majority of the votes entitled to be cast on the matter by the voting group, the votes cast by the voting group in favor of the amendment must exceed the votes cast against the amendment by the voting group.
|
Report of Independent Registered Public Accounting Firm
|
F-1
|
Balance Sheets at December 31, 2015 and 2014
|
F-2
|
F-3
|
|
Statement of Stockholders’ Deficit for the three years ended December 31, 2015
|
F-4
|
F-5
|
|
Notes to Financial Statements December 31, 2015 and 2014
|
F-6
|
Balance Sheets at March 31, 2016 and December 31, 2015
|
FF-1
|
Statements of Operations for the three months ended March 31, 2016 and 2015
|
FF-2
|
Statements of Cash Flows for the three months ended March 31, 2016 and 2015
|
FF-3
|
Notes to Financial Statements March 31, 2016
|
FF-4
|
Exhibit
Number |
Description
|
|
3.1
|
Articles of Incorporation, as amended
|
Exhibit 2.1 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
3.2
|
Amended and Restated Bylaws
|
Exhibit 2.2 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
4.1
|
Form of Convertible Subordinated Secured Note due September 30, 2022
|
Exhibit 3.1 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
4.2
|
Form of Registration Rights Agreement
|
Exhibit 3.2 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
4.3
|
Form of Pledge and Security Agreement
|
Exhibit 3.3 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
4.4
|
Form of StartEngine Warrant
|
Exhibit 3.4 to Offering Statement filed October 21, 2015 (File No. 024-10473)
|
Exhibit
Number |
Description
|
|
10.1
|
Loan and Security Agreement with GemCap Lending I, LLC dated February 28, 2013
|
Exhibit 6.1 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.2
|
Loan Agreement Schedule with GemCap Lending I, LLC dated February 28, 2013
|
Exhibit 6.2 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.3
|
Continuing Guarantee from Stuart Lichter dated February 28, 2013
|
Exhibit 6.3 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.4(i)
|
Amendment Number 4 to the Loan and Security Agreement and Loan Agreement Schedule with CH Capital Lending, LLC dated August 1, 2014
|
Exhibit 6.4(i) to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.4(ii)
|
Fourth Amended and Restated Secured Promissory Note (Term Loan) to CH Capital Lending, LLC dated August 1, 2014
|
Exhibit 6.4(ii) to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.5
|
Forbearance Agreement with CH Capital Lending, LLC dated July 31, 2015
|
Exhibit 6.5 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.6
|
Promissory Note to Racer Trust dated February 28, 2013
|
Exhibit 6.6 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.7
|
Security Agreement with Racer Trust dated February 28, 2013
|
Exhibit 6.7 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.8
|
First Amendment to Promissory Note with Racer Trust dated March 17, 2015
|
Exhibit 6.8 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.9
|
Lease with Shreveport Business Park, LLC dated December 27, 2014
|
Exhibit 6.9 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.10
|
First Amendment to Lease with Shreveport Business Park, LLC dated July 31, 2015
|
Exhibit 6.10 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.11
|
Promissory Note and Security Agreement to IAV Automotive Engineering, Inc. dated December 5, 2014
|
Exhibit 6.11 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.12
|
Installment Payment Agreement with IAV Automotive Engineering, Inc. dated March 13, 2015
|
Exhibit 6.12 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.13
|
Promissory Note to Stuart Lichter dated March 6, 2014
|
Exhibit 6.13 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.14
|
Promissory Note to Stuart Lichter dated May 30, 2014
|
Exhibit 6.14 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.15
|
Secured Promissory Note to Stuart Lichter dated June 19, 2014
|
Exhibit 6.15 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.16
|
First Amendment to Secured Promissory Note to Stuart Lichter dated July 20, 2015
|
Exhibit 6.16 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.17
|
Option Agreement with Stuart Lichter dated as of December 15, 2014
|
Exhibit 6.17 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.18
|
Option Agreement with Stuart Lichter dated as of June 29, 2015
|
Exhibit 6.18 to Offering Statement filed August 28, 2015 (File No. 024-10473)
|
10.19
|
2016 Incentive and Nonstatutory Stock Option Plan
|
|
10.20
|
Form of Personal Continuing Guaranty from Stuart Lichter
|
|
10.21
|
Option Agreement with Stuart Lichter dated as of May 10, 2016
|
|
10.22
|
Amendment to Option Agreements with Stuart Lichter dated effective as of May 2016
|
|
10.23
|
Independent Contractor Consulting Agreement with Hari Iyer dated June 1, 2016
|
ELIO MOTORS, INC.
|
|||
Date: July 25, 2016
|
By:
|
/s/ Paul Elio
|
|
Paul Elio, Chief Executive Officer
|
/s/ Eide Bailly LLP
|
|
Greenwood Village, Colorado
|
2015
|
2014
|
|||||||
Assets
|
(As Restated)
|
(As Restated)
|
||||||
Current Assets
|
||||||||
Cash
|
$ | 6,870,044 | $ | 374,652 | ||||
Restricted cash held in escrow
|
3,806,378 | 476,055 | ||||||
Restricted cash held for customer deposits
|
4,000,000 | - | ||||||
Prepaid expenses
|
471,170 | 104,383 | ||||||
Other current assets
|
336,733 | 74,966 | ||||||
Assets held for sale
|
2,200,000 | 6,441,501 | ||||||
Deferred loan costs
|
170,628 | - | ||||||
Total Current Assets
|
17,854,953 | 7,471,557 | ||||||
Restricted cash held for customer deposits
|
1,816,407 | 4,855,499 | ||||||
Machinery and equipment, net
|
12,435,481 | 12,346,266 | ||||||
Facility under capital sublease, net
|
5,448,964 | 7,200,000 | ||||||
Deferred loan costs
|
981,103 | - | ||||||
Total Assets
|
$ | 38,536,908 | $ | 31,873,322 | ||||
Liabilities and Stockholders' Deficit
|
||||||||
Current Liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$ | 3,694,861 | $ | 4,475,355 | ||||
Refundable customer deposits
|
1,092,750 | 913,700 | ||||||
Advances due to related party
|
- | 164,827 | ||||||
Interest payable, current portion
|
4,959,444 | 129,661 | ||||||
Derivative liabilities - fair value of warrants
|
907,703 | - | ||||||
Note payable, net of discount
|
- | 1,600,000 | ||||||
Notes payable due to related party, net of discount
|
9,525,231 | 9,637,507 | ||||||
Total Current Liabilities
|
20,179,989 | 16,921,050 | ||||||
Nonrefundable customer deposits
|
19,587,800 | 14,852,183 | ||||||
Interest payable, net of current portion
|
6,757,983 | 4,234,415 | ||||||
Convertible notes payable, net of discount
|
401,013 | - | ||||||
Notes payable, net of current portion and discount
|
18,878,146 | 17,459,638 | ||||||
Notes payable due to related party, net of current portion and discount
|
- | 841,391 | ||||||
Capital sublease obligation
|
6,022,677 | 7,500,000 | ||||||
Total Liabilities
|
71,827,608 | 61,808,677 | ||||||
Commitments and contingencies (see notes to financial statements)
|
||||||||
Stockholders' Deficit:
|
||||||||
Common stock, no par value, 100,000,000 shares authorized,
|
||||||||
26,320,322 and 25,077,500 shares issued and outstanding
|
||||||||
in 2015 and 2014, respectively
|
55,133,932 | 35,895,082 | ||||||
Preferred stock, no par value, 10,000,000 shares authorized,
|
||||||||
no shares issued and outstanding
|
- | - | ||||||
Accumulated deficit
|
(88,424,632 | ) | (65,830,437 | ) | ||||
Total Stockholders' Deficit
|
(33,290,700 | ) | (29,935,355 | ) | ||||
Total Liabilities and Stockholders Deficit
|
$ | 38,536,908 | $ | 31,873,322 |
2015
|
2014
|
2013
|
||||||||||
(As Restated)
|
(As Restated)
|
(As Restated)
|
||||||||||
Costs and Expenses:
|
||||||||||||
Engineering, research and development costs
|
$ | 2,085,590 | $ | 5,469,895 | $ | 7,174,601 | ||||||
General and administrative expenses
|
4,455,831 | 5,247,581 | 1,647,797 | |||||||||
Sales and marketing expenses
|
4,611,306 | 4,264,953 | 1,321,951 | |||||||||
Asset impairment charges
|
1,963,448 | - | - | |||||||||
Total costs and expenses
|
13,116,175 | 14,982,429 | 10,144,349 | |||||||||
Loss From Operations
|
(13,116,175 | ) | (14,982,429 | ) | (10,144,349 | ) | ||||||
Other income (expense):
|
||||||||||||
Gain on sale of machinery and equipment
|
1,365,932 | 67,030 | - | |||||||||
Gain on forgiveness of debt
|
68,399 | 180,000 | - | |||||||||
Other income
|
6,119 | 213,382 | 69,083 | |||||||||
Interest expense
|
(10,918,470 | ) | (10,068,217 | ) | (3,965,679 | ) | ||||||
Other expense
|
- | (373 | ) | (17,350 | ) | |||||||
Total other expenses, net
|
(9,478,020 | ) | (9,608,178 | ) | (3,913,946 | ) | ||||||
Net Loss
|
$ | (22,594,195 | ) | $ | (24,590,607 | ) | $ | (14,058,295 | ) | |||
Weighted-average number of common shares outstanding
|
25,127,495 | 25,040,164 | 25,000,000 | |||||||||
Basic loss per common share:
|
$ | (0.90 | ) | $ | (0.98 | ) | $ | (0.56 | ) |
Total
|
||||||||||||||||
Common Stock
|
Accumulated
|
Stockholders’
|
||||||||||||||
|
Shares
|
Amount
|
Deficit
|
Deficit
|
||||||||||||
Balance at December 31, 2012, as restated
|
25,000,000 | $ | 25,975,000 | $ | (27,181,535 | ) | $ | (1,206,535 | ) | |||||||
Net loss
|
- | (14,058,295 | ) | (14,058,295 | ) | |||||||||||
Issuance of common stock,
|
||||||||||||||||
net of issuance costs (Note 10)
|
- | 7,484,056 | - | 7,484,056 | ||||||||||||
Balance at December 31, 2013, as restated
|
25,000,000 | $ | 33,459,056 | $ | (41,239,830 | ) | $ | (7,780,774 | ) | |||||||
Net loss
|
- | - | (24,590,607 | ) | (24,590,607 | ) | ||||||||||
Convertible notes payable
|
||||||||||||||||
converted to equity (Note 6)
|
- | 336,838 | - | 336,838 | ||||||||||||
Issuance of stock warrants (Note 8)
|
- | 1,224,188 | - | 1,224,188 | ||||||||||||
Issuance of common stock (Note 10)
|
77,500 | 875,000 | - | 875,000 | ||||||||||||
Balance at December 31, 2014, as restated
|
25,077,500 | 35,895,082 | (65,830,437 | ) | (29,935,355 | ) | ||||||||||
Net loss
|
- | - | (22,594,195 | ) | (22,594,195 | ) | ||||||||||
Discount on convertible notes from
|
||||||||||||||||
beneficial conversion feature (Note 6)
|
- | 5,113,401 | 5,113,401 | |||||||||||||
Issuance of common stock,
|
||||||||||||||||
net of issuance costs (Note 10)
|
1,242,822 | 14,125,449 | - | 14,125,449 | ||||||||||||
Balance at December 31, 2015, as restated
|
26,320,322 | $ | 55,133,932 | $ | (88,424,632 | ) | $ | (33,290,700 | ) |
2015
|
2014
|
2013
|
||||||||||
(As Restated)
|
(As Restated)
|
(As Restated)
|
||||||||||
Cash Flows From Operating Activities
|
||||||||||||
Net Loss
|
$ | (22,594,195 | ) | $ | (24,590,607 | ) | $ | (14,058,295 | ) | |||
Adjustments to reconcile net loss to net cash
|
||||||||||||
used in operating activities:
|
||||||||||||
Depreciation and amortization
|
278,753 | 300,000 | - | |||||||||
Amortization of discount on notes payable
|
2,150,165 | 2,217,660 | 1,585,780 | |||||||||
Amortization of deferred financing costs
|
202,987 | 264,628 | 312,520 | |||||||||
Accrued interest on capital sublease obligation
|
2,740,795 | 2,241,134 | - | |||||||||
Asset impairment charges
|
1,963,448 | - | - | |||||||||
Gain on sale of fixed assets
|
(1,365,932 | ) | (67,030 | ) | - | |||||||
Gain on forgiveness of debt
|
(68,399 | ) | (180,000 | ) | - | |||||||
Common stock issued for services
|
- | 725,000 | - | |||||||||
Change in operating assets and liabilities:
|
||||||||||||
Prepaid expenses and other current assets
|
(375,506 | ) | 256,310 | 757,141 | ||||||||
Accounts payable and accrued liabilities
|
(780,496 | ) | 4,905,828 | 1,266,589 | ||||||||
Interest payable
|
4,612,556 | 2,088,588 | 67,354 | |||||||||
Net Cash Used in Operating Activities
|
(13,235,824 | ) | (11,838,489 | ) | (10,068,911 | ) | ||||||
Cash Flows From Investing Activities
|
||||||||||||
Purchases of machinery and equipment
|
(94,255 | ) | - | - | ||||||||
Proceeds from sale of machinery and equipment, net
|
3,643,985 | 183,739 | - | |||||||||
Net Cash Used in Investing Activities
|
3,549,730 | 183,739 | - | |||||||||
Cash Flows From Financing Activities
|
||||||||||||
Change in restricted cash
|
(4,291,231 | ) | (3,359,796 | ) | (990,510 | ) | ||||||
Customer deposits
|
4,914,667 | 12,949,433 | 2,808,100 | |||||||||
Issuance of common stock
|
14,913,864 | 150,000 | 7,500,000 | |||||||||
Common stock issuance costs
|
(714,752 | ) | - | (15,945 | ) | |||||||
Proceeds from notes payable
|
- | - | 3,700,400 | |||||||||
Repayments of notes payable
|
(1,600,000 | ) | - | (1,955,309 | ) | |||||||
Payment of deferred financing costs
|
(427,160 | ) | (363,276 | ) | (274,476 | ) | ||||||
Proceeds from convertible notes
|
5,341,560 | - | - | |||||||||
Advances received from related party
|
- | 1,900,500 | - | |||||||||
Repayments of advances from related party
|
(1,702,415 | ) | (41,600 | ) | (84,732 | ) | ||||||
Advances to related party
|
(253,048 | ) | (74,966 | ) | - | |||||||
Net Cash Provided by Financing Activities
|
16,181,485 | 11,160,294 | 10,687,529 | |||||||||
Net Change in Cash
|
6,495,392 | (494,456 | ) | 618,618 | ||||||||
Cash at Beginning of Year
|
374,652 | 869,108 | 250,490 | |||||||||
Cash at End of Year
|
$ | 6,870,044 | $ | 374,652 | $ | 869,108 | ||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during the year for interest
|
$ | 1,211,966 | $ | 3,256,207 | $ | 2,000,025 | ||||||
Cash paid during the year for income taxes
|
$ | 850 | $ | - | $ | - | ||||||
Supplemental disclosures of non-cash investing and financing activities:
|
||||||||||||
Amendment of capital lease resulting in change in lease
|
||||||||||||
payments
|
$ | 1,477,323 | $ | - | $ | - | ||||||
Discount on Convertible Notes from Beneficial
|
||||||||||||
Conversion Feature
|
$ | 5,113,401 | ||||||||||
Issuance of warrants
|
$ | 907,703 | $ | 1,224,188 | $ | - | ||||||
Convertible notes payable converted to equity
|
$ | - | $ | 336,838 | $ | - | ||||||
Conversion of accounts payable to note payable
|
$ | - | $ | 1,600,000 | $ | - | ||||||
Expense recognized under equity grant
|
$ | - | $ | 725,000 | $ | - | ||||||
Acquisition of equipment through issuance of note payable
|
$ | - | $ | - | $ | 26,000,000 | ||||||
Acquisition of facility under capital sublease obligation
|
$ | - | $ | - | $ | 7,500,000 |
Facility under capital sublease
|
25 years
|
|
Machinery and equipment
|
3-10 years
|
|
Vehicles
|
3-5 years
|
|
Computer equipment and software
|
2-5 years
|
BALANCE SHEET
|
As Previously
Reported
|
||||||||||||
Assets
|
Adjustment
|
As Restated
|
||||||||||
Current Assets
|
||||||||||||
Cash
|
$ | 6,870,044 | $ | - | $ | 6,870,044 | ||||||
Restricted cash held in escrow
|
3,806,378 | - | 3,806,378 | |||||||||
Restricted cash held for customer deposits
|
- | 4,000,000 | 4,000,000 | |||||||||
Prepaid expenses
|
471,170 | - | 471,170 | |||||||||
Other current assets
|
336,733 | - | 336,733 | |||||||||
Assets held for sale
|
2,100,000 | 100,000 | 2,200,000 | |||||||||
Deferred loan costs
|
- | 170,628 | 170,628 | |||||||||
Total Current Assets
|
13,584,325 | 4,270,628 | 17,854,953 | |||||||||
Restricted cash held for customer deposits
|
5,816,407 | (4,000,000 | ) | 1,816,407 | ||||||||
Machinery and equipment, net
|
14,499,340 | (2,063,859 | ) | 12,435,481 | ||||||||
Facility under capital sublease, net
|
5,448,964 | - | 5,448,964 | |||||||||
Deferred loan costs
|
- | 981,103 | 981,103 | |||||||||
Total Assets
|
$ | 39,349,036 | $ | (812,128 | ) | $ | 38,536,908 | |||||
Liabilities and Stockholders' Deficit
|
||||||||||||
Current Liabilities
|
||||||||||||
Accounts payable and accrued liabilities
|
$ | 3,618,403 | $ | 76,458 | $ | 3,694,861 | ||||||
Refundable customer deposits
|
1,092,750 | - | 1,092,750 | |||||||||
Interest payable, current portion
|
4,959,444 | - | 4,959,444 | |||||||||
Derivative liabilities - fair value of warrants
|
655,244 | 252,459 | 907,703 | |||||||||
Notes payable due to related party, net of discount
|
9,701,983 | (176,752 | ) | 9,525,231 | ||||||||
Total Current Liabilities
|
20,027,824 | 152,165 | 20,179,989 | |||||||||
Nonrefundable customer deposits
|
19,587,800 | - | 19,587,800 | |||||||||
Interest payable, net of current portion
|
6,757,983 | - | 6,757,983 | |||||||||
Convertible notes payable, net of discount
|
2,504,346 | (2,103,333 | ) | 401,013 | ||||||||
Notes payable, net of current portion and discount
|
19,565,099 | (686,953 | ) | 18,878,146 | ||||||||
Capital sublease obligation
|
6,022,677 | - | 6,022,677 | |||||||||
Total Liabilities
|
74,465,729 | (2,638,121 | ) | 71,827,608 | ||||||||
Commitments and contingencies (see notes to financial statements)
|
||||||||||||
Stockholders' Deficit:
|
||||||||||||
Common stock, no par value, 100,000,000 shares authorized,
|
||||||||||||
26,320,322 and 25,077,500 shares issued and outstanding
|
||||||||||||
in 2015 and 2014, respectively
|
31,135,932 | 23,998,000 | 55,133,932 | |||||||||
Preferred stock, no par value, 10,000,000 shares authorized,
|
||||||||||||
no shares issued and outstanding
|
- | - | ||||||||||
Accumulated deficit
|
(66,252,625 | ) | (22,172,007 | ) | (88,424,632 | ) | ||||||
Total Stockholders' Deficit
|
(35,116,693 | ) | 1,825,993 | (33,290,700 | ) | |||||||
Total Liabilities and Stockholders Deficit
|
$ | 39,349,036 | $ | (812,128 | ) | $ | 38,536,908 |
BALANCE SHEET
|
As Previously
Reported
|
||||||||||||
Assets
|
Adjustment
|
As Restated
|
||||||||||
Current Assets
|
||||||||||||
Cash
|
$ | 374,652 | $ | - | $ | 374,652 | ||||||
Restricted cash held in escrow
|
476,055 | - | 476,055 | |||||||||
Prepaid expenses
|
104,383 | - | 104,383 | |||||||||
Other current assets
|
74,966 | - | 74,966 | |||||||||
Assets held for sale
|
- | 6,441,501 | 6,441,501 | |||||||||
Total Current Assets
|
1,030,056 | 6,441,501 | 7,471,557 | |||||||||
Restricted cash held for customer deposits
|
4,855,499 | - | 4,855,499 | |||||||||
Machinery and equipment, net
|
20,124,788 | (7,778,522 | ) | 12,346,266 | ||||||||
Facility under capital sublease, net
|
7,200,000 | - | 7,200,000 | |||||||||
Total Assets
|
$ | 33,210,343 | $ | (1,337,021 | ) | $ | 31,873,322 | |||||
Liabilities and Stockholders' Deficit
|
||||||||||||
Current Liabilities
|
||||||||||||
Accounts payable and accrued liabilities
|
$ | 4,420,104 | $ | 55,251 | $ | 4,475,355 | ||||||
Refundable customer deposits
|
913,700 | - | 913,700 | |||||||||
Advances due to related party
|
164,827 | - | 164,827 | |||||||||
Interest payable, current portion
|
2,122,942 | (1,993,281 | ) | 129,661 | ||||||||
Note payable, net of discount
|
1,600,000 | - | 1,600,000 | |||||||||
Notes payable due to related party, net of discount
|
- | 9,637,507 | 9,637,507 | |||||||||
Total Current Liabilities
|
9,221,573 | 7,699,477 | 16,921,050 | |||||||||
Nonrefundable customer deposits
|
14,852,183 | - | 14,852,183 | |||||||||
Interest payable, net of current portion
|
2,241,134 | 1,993,281 | 4,234,415 | |||||||||
Notes payable, net of current portion and discount
|
18,546,911 | (1,087,273 | ) | 17,459,638 | ||||||||
Notes payable due to related party, net of current portion and discount
|
10,549,348 | (9,707,957 | ) | 841,391 | ||||||||
Capital sublease obligation
|
7,500,000 | - | 7,500,000 | |||||||||
Total Liabilities
|
62,911,149 | (1,102,472 | ) | 61,808,677 | ||||||||
Commitments and contingencies (see notes to financial statements)
|
||||||||||||
Stockholders' Deficit:
|
||||||||||||
Common stock, no par value, 100,000,000 shares authorized,
|
||||||||||||
26,320,322 and 25,077,500 shares issued and outstanding
|
||||||||||||
in 2015 and 2014, respectively
|
15,075,433 | 20,819,649 | 35,895,082 | |||||||||
Preferred stock, no par value, 10,000,000 shares authorized,
|
||||||||||||
no shares issued and outstanding
|
- | - | - | |||||||||
Accumulated deficit
|
(44,776,239 | ) | (21,054,198 | ) | (65,830,437 | ) | ||||||
Total Stockholders' Deficit
|
(29,700,806 | ) | (234,549 | ) | (29,935,355 | ) | ||||||
Total Liabilities and Stockholders Deficit
|
$ | 33,210,343 | $ | (1,337,021 | ) | $ | 31,873,322 |
STATEMENT OF OPERATIONS
|
FOR THE YEAR ENDED DECEMBER 31, 2015
|
As Previously
Reported
|
||||||||||||
Adjustment
|
As Restated
|
|||||||||||
Costs and Expenses:
|
||||||||||||
Engineering, research and development costs
|
$ | 2,058,566 | $ | 27,024 | $ | 2,085,590 | ||||||
General and administrative expenses
|
5,371,464 | (915,633 | ) | 4,455,831 | ||||||||
Sales and marketing expenses
|
3,701,493 | 909,813 | 4,611,306 | |||||||||
Asset impairment charges
|
- | 1,963,448 | 1,963,448 | |||||||||
Total costs and expenses
|
11,131,523 | 1,984,652 | 13,116,175 | |||||||||
Loss From Operations
|
(11,131,523 | ) | (1,984,652 | ) | (13,116,175 | ) | ||||||
Other income (expense):
|
||||||||||||
Gain on sale of machinery and equipment
|
- | 1,365,932 | 1,365,932 | |||||||||
Gain on forgiveness of debt
|
68,399 | 68,399 | ||||||||||
Other income
|
35,441 | (29,322 | ) | 6,119 | ||||||||
Interest expense
|
(10,448,703 | ) | (469,767 | ) | (10,918,470 | ) | ||||||
Other expense
|
- | - | ||||||||||
Total other expenses, net
|
(10,344,863 | ) | 866,843 | (9,478,020 | ) | |||||||
Net Loss
|
$ | (21,476,386 | ) | $ | (1,117,809 | ) | $ | (22,594,195 | ) | |||
Weighted-average number of common shares outstanding
|
25,127,495 | - | 25,127,495 | |||||||||
Basic loss per common share:
|
$ | (0.85 | ) | $ | - | $ | (0.90 | ) |
STATEMENT OF OPERATIONS
|
FOR THE YEAR ENDED DECEMBER 31, 2014
|
As Previously
Reported
|
||||||||||||
Adjustment
|
As Restated
|
|||||||||||
Costs and Expenses:
|
||||||||||||
Engineering, research and development costs
|
$ | 5,715,716 | $ | (245,821 | ) | $ | 5,469,895 | |||||
General and administrative expenses
|
5,148,108 | 99,473 | 5,247,581 | |||||||||
Sales and marketing expenses
|
3,800,353 | 464,600 | 4,264,953 | |||||||||
Total costs and expenses
|
14,664,177 | 318,252 | 14,982,429 | |||||||||
Loss From Operations
|
(14,664,177 | ) | (318,252 | ) | (14,982,429 | ) | ||||||
Other income (expense):
|
||||||||||||
Gain on sale of machinery and equipment
|
- | 67,030 | 67,030 | |||||||||
Gain on forgiveness of debt
|
- | 180,000 | 180,000 | |||||||||
Other income
|
213,382 | - | 213,382 | |||||||||
Interest expense
|
(9,998,630 | ) | (69,587 | ) | (10,068,217 | ) | ||||||
Other expense
|
(32,016 | ) | 31,643 | (373 | ) | |||||||
Total other expenses, net
|
(9,817,264 | ) | 209,086 | (9,608,178 | ) | |||||||
Net Loss
|
$ | (24,481,441 | ) | $ | (109,166 | ) | $ | (24,590,607 | ) | |||
Weighted-average number of common shares outstanding
|
25,040,164 | - | 25,040,164 | |||||||||
Basic loss per common share:
|
$ | (0.98 | ) | $ | - | $ | (0.98 | ) |
STATEMENT OF OPERATIONS
|
FOR THE YEAR ENDED DECEMBER 31, 2013
|
As Previously
Reported
|
||||||||||||
Adjustment
|
As Restated
|
|||||||||||
Costs and Expenses:
|
||||||||||||
Engineering, research and development costs
|
$ | 6,903,023 | $ | 271,578 | $ | 7,174,601 | ||||||
General and administrative expenses
|
1,777,971 | (130,174 | ) | 1,647,797 | ||||||||
Sales and marketing expenses
|
1,269,987 | 51,964 | 1,321,951 | |||||||||
Total costs and expenses
|
9,950,981 | 193,368 | 10,144,349 | |||||||||
Loss From Operations
|
(9,950,981 | ) | (193,368 | ) | (10,144,349 | ) | ||||||
Other income (expense):
|
||||||||||||
Other income
|
69,083 | - | 69,083 | |||||||||
Interest expense
|
(3,465,980 | ) | (499,699 | ) | (3,965,679 | ) | ||||||
Other expense
|
(17,350 | ) | - | (17,350 | ) | |||||||
Total other expenses, net
|
(3,414,247 | ) | (499,699 | ) | (3,913,946 | ) | ||||||
Net Loss
|
$ | (13,365,228 | ) | $ | (693,067 | ) | $ | (14,058,295 | ) | |||
Weighted-average number of common shares outstanding
|
25,127,495 | 25,040,164 | 25,000,000 | |||||||||
Basic loss per common share:
|
$ | (0.53 | ) | $ | (0.03 | ) | $ | (0.56 | ) |
STATEMENT OF CASH FLOWS
|
As Previously
Reported
|
||||||||||||
Adjustment
|
As Restated
|
|||||||||||
Cash Flows From Operating Activities
|
||||||||||||
Net Loss
|
$ | (21,476,386 | ) | $ | (1,117,809 | ) | $ | (22,594,195 | ) | |||
Adjustments to reconcile net loss to net cash
|
||||||||||||
used in operating activities:
|
||||||||||||
Depreciation and amortization
|
278,753 | - | 278,753 | |||||||||
Amortization of discount on notes payable
|
712,200 | 1,437,965 | 2,150,165 | |||||||||
Amortization of deferred financing costs
|
202,987 | - | 202,987 | |||||||||
Accrued interest on capital sublease obligation
|
4,374,766 | (1,633,971 | ) | 2,740,795 | ||||||||
Asset impairment charges
|
- | 1,963,448 | 1,963,448 | |||||||||
Gain on sale of fixed assets
|
- | (1,365,932 | ) | (1,365,932 | ) | |||||||
Gain on forgiveness of debt
|
(68,399 | ) | - | (68,399 | ) | |||||||
Change in operating assets and liabilities:
|
- | |||||||||||
Prepaid expenses and other current assets
|
(375,506 | ) | - | (375,506 | ) | |||||||
Accounts payable and accrued liabilities
|
(801,701 | ) | 21,205 | (780,496 | ) | |||||||
Interest payable
|
3,946,784 | 665,772 | 4,612,556 | |||||||||
Net Cash Used in Operating Activities
|
(13,206,502 | ) | (29,322 | ) | (13,235,824 | ) | ||||||
Cash Flows From Investing Activities
|
||||||||||||
Purchases of machinery and equipment
|
(94,255 | ) | - | (94,255 | ) | |||||||
Proceeds from sale of machinery and equipment
|
3,614,663 | 29,322 | 3,643,985 | |||||||||
Net Cash Used in Investing Activities
|
3,520,408 | 29,322 | 3,549,730 | |||||||||
Cash Flows From Financing Activities
|
||||||||||||
Change in restricted cash
|
(4,291,231 | ) | - | (4,291,231 | ) | |||||||
Customer deposits
|
4,914,667 | 4,914,667 | ||||||||||
Issuance of common stock
|
14,913,864 | - | 14,913,864 | |||||||||
Common stock issuance costs
|
(714,752 | ) | - | (714,752 | ) | |||||||
Repayments of notes payable
|
(1,600,000 | ) | - | (1,600,000 | ) | |||||||
Payment of deferred financing costs
|
(427,159 | ) | - | (427,159 | ) | |||||||
Proceeds from convertible notes
|
5,341,560 | - | 5,341,560 | |||||||||
Repayments of advances from related party
|
(1,702,415 | ) | - | (1,702,415 | ) | |||||||
Advances to related party
|
(253,048 | ) | - | (253,048 | ) | |||||||
Net Cash Provided by Financing Activities
|
16,181,486 | - | 16,181,486 | |||||||||
Net Change in Cash
|
6,495,392 | - | 6,495,392 | |||||||||
Cash at Beginning of Year
|
374,652 | - | 374,652 | |||||||||
Cash at End of Year
|
$ | 6,870,044 | $ | - | $ | 6,870,044 | ||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during the year for interest
|
$ | 1,615,417 | $ | (403,451 | ) | $ | 1,211,966 | |||||
Cash paid during the year for income taxes
|
$ | 850 | $ | - | $ | 850 | ||||||
Supplemental disclosures of non-cash investing and financing activities:
|
||||||||||||
Amendment of capital lease resulting in change in lease
|
||||||||||||
payments
|
$ | 1,477,323 | $ | - | $ | 1,477,323 | ||||||
Discount on Convertible Notes from Beneficial
|
||||||||||||
Conversion Feature
|
$ | - | $ | 5,113,401 | $ | 5,113,401 | ||||||
Issuance of warrants
|
$ | 655,244 | $ | 252,459 | $ | 907,703 |
STATEMENT OF CASH FLOWS
|
As Previously
Reported
|
||||||||||||
Adjustment
|
As Restated
|
|||||||||||
Cash Flows From Operating Activities
|
||||||||||||
Net Loss
|
$ | (24,481,441 | ) | $ | (109,166 | ) | $ | (24,590,607 | ) | |||
Adjustments to reconcile net loss to net cash
|
||||||||||||
used in operating activities:
|
||||||||||||
Depreciation and amortization
|
300,000 | - | 300,000 | |||||||||
Amortization of discount on notes payable
|
2,107,366 | 110,294 | 2,217,660 | |||||||||
Amortization of deferred financing costs
|
264,628 | - | 264,628 | |||||||||
Accrued interest on capital sublease obligation
|
2,241,134 | - | 2,241,134 | |||||||||
Gain on sale of fixed assets
|
- | (67,030 | ) | (67,030 | ) | |||||||
Gain on forgiveness of debt
|
- | (180,000 | ) | (180,000 | ) | |||||||
Common stock issued for services
|
- | 725,000 | 725,000 | |||||||||
Change in operating assets and liabilities:
|
||||||||||||
Prepaid expenses and other current assets
|
256,310 | - | 256,310 | |||||||||
Accounts payable and accrued liabilities
|
5,495,653 | (589,825 | ) | 4,905,828 | ||||||||
Interest payable
|
2,127,217 | (38,629 | ) | 2,088,588 | ||||||||
Net Cash Used in Operating Activities
|
(11,689,133 | ) | (149,356 | ) | (11,838,489 | ) | ||||||
Cash Flows From Investing Activities
|
||||||||||||
Proceeds from sale of machinery and equipment
|
215,381 | (31,642 | ) | 183,739 | ||||||||
Net Cash Used in Investing Activities
|
215,381 | (31,642 | ) | 183,739 | ||||||||
Cash Flows From Financing Activities
|
||||||||||||
Change in restricted cash
|
(3,359,796 | ) | - | (3,359,796 | ) | |||||||
Customer deposits
|
12,949,433 | - | 12,949,433 | |||||||||
Issuance of common stock
|
150,000 | - | 150,000 | |||||||||
Repayments of notes payable
|
(9,850,000 | ) | 9,850,000 | - | ||||||||
Payment of deferred financing costs
|
(364,274 | ) | 998 | (363,276 | ) | |||||||
Proceeds from convertible notes
|
- | - | - | |||||||||
Advances received from related party
|
11,750,500 | (9,850,000 | ) | 1,900,500 | ||||||||
Repayments of advances from related party
|
(221,600 | ) | 180,000 | (41,600 | ) | |||||||
Advances to related party
|
(74,966 | ) | - | (74,966 | ) | |||||||
Net Cash Provided by Financing Activities
|
10,979,297 | 180,998 | 11,160,295 | |||||||||
Net Change in Cash
|
(494,454 | ) | - | (494,455 | ) | |||||||
Cash at Beginning of Year
|
869,107 | - | 869,107 | |||||||||
Cash at End of Year
|
$ | 374,652 | $ | - | $ | 374,652 | ||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during the year for interest
|
$ | 5,561,257 | $ | (2,305,050 | ) | $ | 3,256,207 | |||||
Supplemental disclosures of non-cash investing and financing activities:
|
||||||||||||
Issuance of warrants
|
$ | - | $ | 1,224,188 | $ | 1,224,188 | ||||||
Convertible notes payable converted to equity
|
$ | 336,838 | $ | - | $ | 336,838 | ||||||
Conversion of accounts payable to note payable
|
$ | 1,600,000 | $ | - | $ | 1,600,000 | ||||||
Expense recognized under equity grant
|
$ | 375,000 | $ | 350,000 | $ | 725,000 |
STATEMENT OF CASH FLOWS
|
As Previously
Reported
|
||||||||||||
Adjustment
|
As Restated
|
|||||||||||
Cash Flows From Operating Activities
|
||||||||||||
Net Loss
|
$ | (13,365,228 | ) | $ | (693,067 | ) | $ | (14,058,295 | ) | |||
Adjustments to reconcile net loss to net cash
|
||||||||||||
used in operating activities:
|
||||||||||||
Amortization of discount on notes payable
|
1,189,335 | 396,445 | 1,585,780 | |||||||||
Amortization of deferred financing costs
|
312,520 | - | 312,520 | |||||||||
Change in operating assets and liabilities:
|
- | |||||||||||
Prepaid expenses and other current assets
|
(354,693 | ) | 1,111,834 | 757,141 | ||||||||
Accounts payable and accrued liabilities
|
889,451 | 377,138 | 1,266,589 | |||||||||
Interest payable
|
25,650 | 41,704 | 67,354 | |||||||||
Net Cash Used in Operating Activities
|
(11,302,965 | ) | 1,234,054 | (10,068,911 | ) | |||||||
Cash Flows From Investing Activities
|
||||||||||||
Purchases of machinery and equipment
|
(3,000,000 | ) | 3,000,000 | - | ||||||||
Proceeds from sale of machinery and equipment
|
- | - | - | |||||||||
Net Cash Used in Investing Activities
|
(3,000,000 | ) | 3,000,000 | - | ||||||||
Cash Flows From Financing Activities
|
||||||||||||
Change in restricted cash
|
(1,866,740 | ) | 876,230 | (990,510 | ) | |||||||
Customer deposits
|
2,808,100 | - | 2,808,100 | |||||||||
Issuance of common stock
|
7,422,506 | 77,494 | 7,500,000 | |||||||||
Common stock issuance costs
|
- | (15,945 | ) | (15,945 | ) | |||||||
Proceeds from notes payable
|
9,850,000 | (6,149,600 | ) | 3,700,400 | ||||||||
Repayments of notes payable
|
(2,678,509 | ) | 723,200 | (1,955,309 | ) | |||||||
Payment of deferred financing costs
|
(529,043 | ) | 254,567 | (274,476 | ) | |||||||
Repayments of advances from related party
|
(84,732 | ) | - | (84,732 | ) | |||||||
Net Cash Provided by Financing Activities
|
14,921,582 | (4,234,054 | ) | 10,687,528 | ||||||||
Net Change in Cash
|
618,618 | - | 618,618 | |||||||||
Cash at Beginning of Year
|
250,490 | - | 250,490 | |||||||||
Cash at End of Year
|
$ | 869,107 | $ | - | $ | 869,107 | ||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during the year for interest
|
$ | 1,938,475 | $ | 61,550 | $ | 2,000,025 | ||||||
Supplemental disclosures of non-cash investing and financing activities:
|
||||||||||||
Convertible notes payable converted to equity
|
$ | 26,000,000 | $ | (26,000,000 | ) | $ | - | |||||
Conversion of accounts payable to note payable
|
$ | 7,500,000 | $ | (7,500,000 | ) | $ | - | |||||
Expense recognized under equity grant
|
$ | 5,659,831 | $ | (5,659,831 | ) | $ | - | |||||
Acquisition of equipment through issuance of note payable
|
$ | - | $ | 26,000,000 | $ | 26,000,000 | ||||||
Acquisition of facility under capital sublease obligation
|
$ | - | $ | 7,500,000 | $ | 7,500,000 |
2015
|
2014
|
|||||||
Facility under capital sublease
|
$ | 6,022,677 | $ | 7,500,000 | ||||
Machinery and equipment
|
12,346,266 | 12,346,266 | ||||||
Vehicles
|
39,500 | - | ||||||
Computer equipment and software
|
54,755 | - | ||||||
Total property and equipment
|
18,463,198 | 19,846,266 | ||||||
Less: accumulated depreciation and amortization
|
(578,753 | ) | (300,000 | ) | ||||
Machinery and equipment, net
|
$ | 12,435,481 | $ | 12,346,266 | ||||
Facility under capital sublease, net
|
$ | 5,448,964 | $ | 7,200,000 |
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Warrant liabilities
|
$ | - | $ | - | $ | 907,703 | $ | 907,703 | ||||||||
Assets held for sale
|
$ | - | $ | - | $ | 2,200,000 | $ | 2,200,000 |
Fair Value at
|
Valuation
Techniques
|
Unobservable Input
|
Weighted
Average
|
|||||||||||||
Warrant liabilities
|
$ | 907,703 |
Monte Carlo option pricing method
|
Risk-free rate
Time to liquidity event
|
1.69%
4.84
yrs.
|
|||||||||||
Dividend
yield
|
0.00%
|
|||||||||||||||
Volatility
|
80.16%
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets held for sale
|
$ | - | $ | - | $ | 6,441,501 | $ | 6,441,501 |
Years ending December 31,
|
||||
$ | 10,144,512 | |||
2017
|
21,126,147 | |||
2018
|
- | |||
2019
|
- | |||
2020
|
- | |||
Thereafter
|
5,341,560 | |||
Total
|
36,612,219 | |||
Less: amount representing imputed interest
|
(2,195,310 | ) | ||
Less: amount representing deferred issuance costs
|
(221,655 | ) | ||
Less: amounts representing discount on debt
|
(540,994 | ) | ||
Less: amount representing beneficial conversion feature
|
(4,849,870 | ) | ||
28,804,390 | ||||
Less: current portion notes payable due to related party, net of discount
|
(9,525,231 | ) | ||
Long-term portion convertible notes payable, net of discounts
|
401,013 | |||
Long-term portion notes payable, net of current portion and discounts
|
$ | 18,878,146 |
Years ending December 31,
|
||||
$ | 2,742,773 | |||
2017
|
2,992,116 | |||
2018
|
2,992,116 | |||
2019
|
2,992,116 | |||
2020
|
2,992,116 | |||
Thereafter
|
55,849,042 | |||
Total minimum sublease payments
|
70,560,279 | |||
Less: amount representing interest
|
(64,537,602 | ) | ||
$ | 6,022,677 |
Dividend yield
|
0.00%
|
Volatility
|
82.00%
|
Risk free interest rate
|
1.30% - 1.34%
|
Expected life
|
3 years
|
Dividend yield
|
0.00%
|
Volatility
|
80.00%
|
Risk free interest rate
|
1.72%
|
Expected life
|
5 years
|
Dividend yield
|
0.00%
|
Volatility
|
87.00%
|
Risk free interest rate
|
0.40%
|
Expected life
|
10.5 years
|
2015
|
2014
|
|||||||
Federal statutory rate
|
34.0 | % | 34.0 | % | ||||
State income taxes, net of federal tax benefit
|
1.5 | 1.5 | ||||||
Permanent differences
|
(1.5 | ) | 0.0 | |||||
Valuation allowance adjustments
|
(28.4 | ) | (35.5 | ) | ||||
Others
|
(5.6 | ) | - | |||||
Effective tax rate
|
0.0 | % | 0.0 | % |
2015
|
2014
|
|||||||
Non-current deferred tax assets:
|
||||||||
Property and equipment
|
$ | 2,869,000 | $ | 2,100,000 | ||||
Nonrefundable customer deposits
|
5,405,000 | 5,401,000 | ||||||
Net operating losses
|
14,257,000 | 7,452,000 | ||||||
Others
|
- | 84,000 | ||||||
Total non-current deferred tax assets
|
22,531,000 | 15,037,000 | ||||||
Valuation allowance
|
(22,531,000 | ) | (13,776,000 | ) | ||||
Non-current deferred tax liabilities:
|
||||||||
Imputed interest
|
(548,000 | ) | (901,000 | ) | ||||
Deferred state taxes
|
(533,000 | ) | (360,000 | ) | ||||
Total non-current deferred tax liabilities
|
(1,081,000 | ) | (1,261,000 | ) | ||||
Total non-current deferred tax assets
|
$ | - | $ | - | ||||
Net deferred income taxes
|
$ | - | $ | - |
(Unaudited)
|
(Audited)
|
|||||||
Assets
|
(As Restated)
|
(As Restated)
|
||||||
Current Assets
|
||||||||
Cash
|
$ | 2,909,373 | $ | 6,870,044 | ||||
Restricted cash held in escrow
|
2,626,334 | 3,806,378 | ||||||
Restricted cash held in customer deposits
|
4,000,000 | 4,000,000 | ||||||
Prepaid expenses
|
2,104,154 | 471,170 | ||||||
Other current assets
|
429,022 | 336,733 | ||||||
Assets held for sale
|
1,576,798 | 2,200,000 | ||||||
Deferred loan costs
|
170,627 | 170,628 | ||||||
Total Current Assets
|
13,816,308 | 17,854,953 | ||||||
Restricted cash held for customer deposits
|
1,956,937 | 1,816,407 | ||||||
Machinery and equipment, net
|
12,435,831 | 12,435,481 | ||||||
Facility under capital sublease, net
|
5,389,736 | 5,448,964 | ||||||
Deferred loan costs
|
938,446 | 981,103 | ||||||
Total Assets
|
$ | 34,537,258 | $ | 38,536,908 | ||||
Liabilities and Stockholders' Deficit
|
||||||||
Current Liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$ | 4,071,374 | $ | 3,694,861 | ||||
Refundable customer deposits
|
1,114,900 | 1,092,750 | ||||||
Interest payable, current portion
|
5,222,353 | 4,959,444 | ||||||
Derivative liabilities - fair value of warrants
|
1,768,824 | 907,703 | ||||||
Notes payable due to related party, net of discount
|
9,762,888 | 9,525,231 | ||||||
Total Current Liabilities
|
21,940,339 | 20,179,989 | ||||||
Nonrefundable customer deposits
|
20,961,900 | 19,587,800 | ||||||
Interest payable, net of current portion
|
6,869,657 | 6,757,983 | ||||||
Convertible notes payable, net of discount
|
436,795 | 401,013 | ||||||
Notes payable, net of current portion and discount
|
19,242,135 | 18,878,146 | ||||||
Capital sublease obligation
|
6,022,677 | 6,022,677 | ||||||
Total Liabilities
|
75,473,503 | 71,827,608 | ||||||
Commitments and contingencies (see notes to financial statements)
|
||||||||
Stockholders' Deficit:
|
||||||||
Common stock, no par value, 100,000,000 shares authorized,
|
||||||||
26,512,893 and 26,320,322 shares issued and outstanding
|
||||||||
on March 31, 2016 and December 31, 2015, respectively
|
56,982,659 | 55,133,932 | ||||||
Preferred stock, no par value, 10,000,000 shares authorized,
|
||||||||
no shares issued and outstanding
|
- | - | ||||||
Accumulated deficit
|
(97,918,904 | ) | (88,424,632 | ) | ||||
Total Stockholders' Deficit
|
(40,936,245 | ) | (33,290,700 | ) | ||||
Total Liabilities and Stockholders Deficit
|
$ | 34,537,258 | $ | 38,536,908 |
Three Months Ended
|
Three Months Ended
|
|||||||
(As Restated)
|
(As Restated)
|
|||||||
Costs and Expenses:
|
||||||||
Engineering, research and development costs
|
$ | 3,700,641 | $ | 23,646 | ||||
General and administrative expenses
|
1,819,354 | 1,095,371 | ||||||
Sales and marketing expenses
|
1,354,878 | 941,873 | ||||||
Total costs and expenses
|
6,874,873 | 2,060,890 | ||||||
Loss from operations
|
(6,874,873 | ) | (2,060,890 | ) | ||||
Other income (expense):
|
||||||||
Gain on sale of machinery and equipment
|
- | 161,566 | ||||||
Interest income
|
4,463 | 2 | ||||||
Interest expense
|
(1,893,159 | ) | (2,895,666 | ) | ||||
Loss on change in fair value of derivative liability
|
(730,703 | ) | - | |||||
Total other income and expenses
|
(2,619,399 | ) | (2,734,098 | ) | ||||
Net Loss
|
$ | (9,494,272 | ) | $ | (4,794,988 | ) | ||
Weighted-average number of common shares outstanding
|
26,410,717 | 25,077,500 | ||||||
Basic loss per share:
|
$ | (0.36 | ) | $ | (0.19 | ) |
Three Months Ended
|
Three Months Ended
|
|||||||
(As Restated)
|
(As Restated)
|
|||||||
Cash Flows From Operating Activities
|
||||||||
Net Loss
|
$ | (9,494,272 | ) | $ | (4,794,988 | ) | ||
Adjustments to reconcile net loss to net cash
|
||||||||
used in operating activities:
|
||||||||
Depreciation and amortization
|
61,833 | 75,000 | ||||||
Amortization of discount on notes payable
|
737,235 | 423,781 | ||||||
Amortization of deferred financing costs
|
88,348 | 49,765 | ||||||
Accrued interest on capital sublease obligation
|
743,329 | 657,986 | ||||||
Gain on sale of fixed assets
|
- | (161,566 | ) | |||||
Loss on change in fair value of derivative liability
|
730,703 | - | ||||||
Change in operating assets and liabilities:
|
||||||||
Prepaid expenses and other current assets
|
(1,624,265 | ) | 5,392 | |||||
Accounts payable and accrued liabilities
|
376,519 | 630,918 | ||||||
Interest payable
|
(363,311 | ) | 1,404,457 | |||||
Net Cash Used in Operating Activities
|
(8,743,881 | ) | (1,709,255 | ) | ||||
Cash Flows From Investing Activities
|
||||||||
Purchases of machinery and equipment
|
(2,956 | ) | - | |||||
Proceeds from sale of machinery and equipment
|
623,202 | 357,265 | ||||||
Net Cash Provided by Investing Activities
|
620,246 | 357,265 | ||||||
Cash Flows from Financing Activities
|
||||||||
Change in restricted cash
|
1,039,513 | (317,738 | ) | |||||
Customer deposits
|
1,396,250 | 1,433,048 | ||||||
Issuance of common stock
|
2,006,712 | - | ||||||
Common stock issuance costs
|
(178,503 | ) | - | |||||
Repayments of notes payable
|
- | (277,000 | ) | |||||
Payment of deferred financing costs
|
- | (19,126 | ) | |||||
Proceeds from convertible notes
|
- | 180,000 | ||||||
Repayments of advances from related party
|
- | (400 | ) | |||||
Advances to related party
|
(101,008 | ) | 12,000 | |||||
Net Cash Provided by Financing Activities
|
4,162,964 | 1,010,784 | ||||||
Net Change in Cash and Cash Equivalents
|
(3,960,671 | ) | (341,206 | ) | ||||
Cash and Cash Equivalents at Beginning of Period
|
6,870,044 | 374,652 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 2,909,373 | $ | 33,446 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the year for interest
|
$ | 659,694 | $ | 1,017,662 | ||||
Supplemental disclosures of non-cash investing
|
||||||||
and financing activities:
|
||||||||
Convertible notes payable converted to equity
|
$ | 150,936 | $ | - | ||||
Issuance of warrants
|
$ | 3,095 | $ | - | ||||
Exercise of warrants
|
$ | 133,512 | $ | - |
BALANCE SHEET
|
||||||||||||
As Previously
|
||||||||||||
Assets
|
Reported
|
Adjustment
|
As Restated
|
|||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||
Current Assets
|
||||||||||||
Cash
|
$ | 2,909,373 | $ | - | $ | 2,909,373 | ||||||
Restricted cash held in escrow
|
2,626,334 | - | 2,626,334 | |||||||||
Restricted cash held for customer deposits
|
- | 4,000,000 | 4,000,000 | |||||||||
Prepaid expenses
|
2,104,154 | - | 2,104,154 | |||||||||
Other current assets
|
429,022 | - | 429,022 | |||||||||
Assets held for sale
|
1,474,071 | 102,727 | 1,576,798 | |||||||||
Deferred loan costs
|
- | 170,627 | 170,627 | |||||||||
Total Current Assets
|
9,542,954 | 4,273,354 | 13,816,308 | |||||||||
Restricted cash held for customer deposits
|
5,956,937 | (4,000,000 | ) | 1,956,937 | ||||||||
Machinery and equipment, net
|
14,502,418 | (2,066,587 | ) | 12,435,831 | ||||||||
Facility under capital sublease, net
|
5,389,736 | - | 5,389,736 | |||||||||
Deferred loan costs
|
- | 938,446 | 938,446 | |||||||||
Total Assets
|
$ | 35,392,045 | $ | (854,787 | ) | $ | 34,537,258 | |||||
Liabilities and Stockholders' Deficit
|
||||||||||||
Current Liabilities
|
||||||||||||
Accounts payable and accrued liabilities
|
$ | 3,816,562 | $ | 254,812 | $ | 4,071,374 | ||||||
Refundable customer deposits
|
1,114,900 | - | 1,114,900 | |||||||||
Interest payable, current portion
|
2,306,080 | 2,916,273 | 5,222,353 | |||||||||
Derivative liabilities - fair value of warrants
|
1,555,766 | 213,058 | 1,768,824 | |||||||||
Notes payable due to related party, net of discount
|
9,891,638 | (128,750 | ) | 9,762,888 | ||||||||
Total Current Liabilities
|
18,684,946 | 3,255,393 | 21,940,339 | |||||||||
Nonrefundable customer deposits
|
20,961,900 | - | 20,961,900 | |||||||||
Interest payable, net of current portion
|
9,785,994 | (2,916,337 | ) | 6,869,657 | ||||||||
Convertible notes payable, net of discount
|
2,463,928 | (2,027,133 | ) | 436,795 | ||||||||
Notes payable, net of current portion and discount
|
19,736,020 | (493,885 | ) | 19,242,135 | ||||||||
Capital sublease obligation
|
6,022,677 | - | 6,022,677 | |||||||||
Total Liabilities
|
77,655,465 | (2,181,962 | ) | 75,473,503 | ||||||||
Commitments and contingencies (see notes to financial statements)
|
||||||||||||
Stockholders' Deficit:
|
||||||||||||
Common stock, no par value, 100,000,000 shares authorized,
|
||||||||||||
26,320,322 and 25,077,500 shares issued and outstanding
|
||||||||||||
in 2015 and 2014, respectively
|
33,039,884 | 23,942,775 | 56,982,659 | |||||||||
Preferred stock, no par value, 10,000,000 shares authorized,
|
||||||||||||
no shares issued and outstanding
|
- | - | ||||||||||
Accumulated deficit
|
(75,303,304 | ) | (22,615,600 | ) | (97,918,904 | ) | ||||||
Total Stockholders' Deficit
|
(42,263,420 | ) | 1,327,175 | (40,936,245 | ) | |||||||
Total Liabilities and Stockholders Deficit
|
$ | 35,392,045 | $ | (854,787 | ) | $ | 34,537,258 |
BALANCE SHEET
|
||||||||||||
As Previously
|
||||||||||||
Assets
|
Reported
|
Adjustment
|
As Restated
|
|||||||||
Current Assets
|
||||||||||||
Cash
|
$ | 6,870,044 | $ | - | $ | 6,870,044 | ||||||
Restricted cash held in escrow
|
3,806,378 | - | 3,806,378 | |||||||||
Restricted cash held for customer deposits
|
- | 4,000,000 | 4,000,000 | |||||||||
Prepaid expenses
|
471,170 | - | 471,170 | |||||||||
Other current assets
|
336,733 | - | 336,733 | |||||||||
Assets held for sale
|
2,100,000 | 100,000 | 2,200,000 | |||||||||
Deferred loan costs
|
- | 170,628 | 170,628 | |||||||||
Total Current Assets
|
13,584,325 | 4,270,628 | 17,854,953 | |||||||||
Restricted cash held for customer deposits
|
5,816,407 | (4,000,000 | ) | 1,816,407 | ||||||||
Machinery and equipment, net
|
14,499,340 | (2,063,859 | ) | 12,435,481 | ||||||||
Facility under capital sublease, net
|
5,448,964 | - | 5,448,964 | |||||||||
Deferred loan costs
|
- | 981,103 | 981,103 | |||||||||
Total Assets
|
$ | 39,349,036 | $ | (812,128 | ) | $ | 38,536,908 | |||||
Liabilities and Stockholders' Deficit
|
||||||||||||
Current Liabilities
|
||||||||||||
Accounts payable and accrued liabilities
|
$ | 3,618,403 | $ | 76,458 | $ | 3,694,861 | ||||||
Refundable customer deposits
|
1,092,750 | - | 1,092,750 | |||||||||
Interest payable, current portion
|
4,959,444 | - | 4,959,444 | |||||||||
Derivative liabilities - fair value of warrants
|
655,244 | 252,459 | 907,703 | |||||||||
Notes payable due to related party, net of discount
|
9,701,983 | (176,752 | ) | 9,525,231 | ||||||||
Total Current Liabilities
|
20,027,824 | 152,165 | 20,179,989 | |||||||||
Nonrefundable customer deposits
|
19,587,800 | - | 19,587,800 | |||||||||
Interest payable, net of current portion
|
6,757,983 | - | 6,757,983 | |||||||||
Convertible notes payable, net of discount
|
2,504,346 | (2,103,333 | ) | 401,013 | ||||||||
Notes payable, net of current portion and discount
|
19,565,099 | (686,953 | ) | 18,878,146 | ||||||||
Capital sublease obligation
|
6,022,677 | - | 6,022,677 | |||||||||
Total Liabilities
|
74,465,729 | (2,638,121 | ) | 71,827,608 | ||||||||
Commitments and contingencies (see notes to financial statements)
|
||||||||||||
Stockholders' Deficit:
|
||||||||||||
Common stock, no par value, 100,000,000 shares authorized,
|
||||||||||||
26,320,322 and 25,077,500 shares issued and outstanding
|
||||||||||||
in 2015 and 2014, respectively
|
31,135,932 | 23,998,000 | 55,133,932 | |||||||||
Preferred stock, no par value, 10,000,000 shares authorized,
|
||||||||||||
no shares issued and outstanding
|
- | - | ||||||||||
Accumulated deficit
|
(66,252,625 | ) | (22,172,007 | ) | (88,424,632 | ) | ||||||
Total Stockholders' Deficit
|
(35,116,693 | ) | 1,825,993 | (33,290,700 | ) | |||||||
Total Liabilities and Stockholders Deficit
|
$ | 39,349,036 | $ | (812,128 | ) | $ | 38,536,908 |
STATEMENT OF OPERATIONS
|
||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2016
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
Adjustment
|
As Restated
|
||||||||||
Costs and Expenses:
|
||||||||||||
Engineering, research and development costs
|
$ | 3,598,364 | $ | 102,277 | $ | 3,700,641 | ||||||
General and administrative expenses
|
1,539,136 | 280,218 | 1,819,354 | |||||||||
Sales and marketing expenses
|
1,557,720 | (202,842 | ) | 1,354,878 | ||||||||
Total costs and expenses
|
6,695,220 | 179,653 | 6,874,873 | |||||||||
Loss From Operations
|
(6,695,220 | ) | (179,653 | ) | (6,874,873 | ) | ||||||
Other income (expense):
|
||||||||||||
Interest income
|
4,463 | 4,463 | ||||||||||
Interest expense
|
(1,533,299 | ) | (359,860 | ) | (1,893,159 | ) | ||||||
Loss on change in fair value of derivative liability
|
(826,623 | ) | 95,920 | (730,703 | ) | |||||||
Total other expenses, net
|
(2,355,459 | ) | (263,940 | ) | (2,619,399 | ) | ||||||
Net Loss
|
$ | (9,050,679 | ) | $ | (443,593 | ) | $ | (9,494,272 | ) | |||
Weighted-average number of common shares outstanding
|
26,410,717 | - | 26,410,717 | |||||||||
Basic loss per common share:
|
$ | (0.34 | ) | $ | - | $ | (0.36 | ) |
STATEMENT OF OPERATIONS
|
||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
Adjustment
|
As Restated
|
||||||||||
Costs and Expenses:
|
||||||||||||
Engineering, research and development costs
|
$ | 20,529 | $ | 3,117 | $ | 23,646 | ||||||
General and administrative expenses
|
1,115,274 | (19,903 | ) | 1,095,371 | ||||||||
Sales and marketing expenses
|
925,088 | 16,786 | 941,874 | |||||||||
Total costs and expenses
|
2,060,890 | - | 2,060,890 | |||||||||
Loss From Operations
|
(2,060,890 | ) | - | (2,060,890 | ) | |||||||
Other income (expense):
|
||||||||||||
Gain on sale of machinery and equipment
|
- | 161,566 | 161,566 | |||||||||
Interest income
|
2 | - | 2 | |||||||||
Interest expense
|
(2,207,476 | ) | (688,190 | ) | (2,895,666 | ) | ||||||
Total other expenses, net
|
(2,207,474 | ) | (526,624 | ) | (2,734,098 | ) | ||||||
Net Loss
|
$ | (4,268,364 | ) | $ | (526,624 | ) | $ | (4,794,988 | ) | |||
Weighted-average number of common shares outstanding
|
26,410,717 | - | 26,410,717 | |||||||||
Basic loss per common share:
|
$ | (0.16 | ) | - | $ | (0.18 | ) |
STATEMENT OF CASH FLOWS
|
||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2016
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
Adjustment
|
As Restated
|
||||||||||
Cash Flows From Operating Activities
|
||||||||||||
Net Loss
|
$ | (9,050,679 | ) | $ | (443,593 | ) | $ | (9,494,272 | ) | |||
Adjustments to reconcile net loss to net cash
|
||||||||||||
used in operating activities:
|
||||||||||||
Depreciation and amortization
|
61,833 | - | 61,833 | |||||||||
Amortization of discount on notes payable
|
388,317 | 348,918 | 737,235 | |||||||||
Amortization of deferred financing costs
|
77,343 | 11,005 | 88,348 | |||||||||
Accrued interest on capital sublease obligation
|
743,329 | - | 743,329 | |||||||||
Loss on change in fair value of derivative liability
|
826,623 | (95,920 | ) | 730,703 | ||||||||
Change in operating assets and liabilities:
|
||||||||||||
Prepaid expenses and other current assets
|
(1,624,265 | ) | - | (1,624,265 | ) | |||||||
Accounts payable and accrued liabilities
|
198,158 | 178,361 | 376,519 | |||||||||
Interest payable
|
(363,247 | ) | (64 | ) | (363,311 | ) | ||||||
Net Cash Used in Operating Activities
|
(8,742,588 | ) | (1,293 | ) | (8,743,881 | ) | ||||||
Cash Flows From Investing Activities
|
||||||||||||
Purchases of machinery and equipment
|
(5,683 | ) | 2,727 | (2,956 | ) | |||||||
Proceeds from sale of machinery and equipment
|
625,929 | (2,727 | ) | 623,202 | ||||||||
Net Cash Used in Investing Activities
|
620,246 | - | 620,246 | |||||||||
Cash Flows From Financing Activities
|
||||||||||||
Change in restricted cash
|
1,039,513 | - | 1,039,513 | |||||||||
Customer deposits
|
1,396,250 | 1,396,250 | ||||||||||
Issuance of common stock
|
2,006,712 | - | 2,006,712 | |||||||||
Common stock issuance costs
|
(179,796 | ) | 1,293 | (178,503 | ) | |||||||
Advances to related party
|
(101,008 | ) | - | (101,008 | ) | |||||||
Net Cash Provided by Financing Activities
|
4,161,671 | 1,293 | 4,162,964 | |||||||||
Net Change in Cash
|
(3,960,671 | ) | - | (3,960,671 | ) | |||||||
Cash at Beginning of Year
|
6,870,044 | - | 6,870,044 | |||||||||
Cash at End of Year
|
$ | 2,909,373 | $ | - | $ | 2,909,373 |
STATEMENT OF CASH FLOWS
|
||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
Adjustment
|
As Restated
|
||||||||||
Cash Flows From Operating Activities
|
||||||||||||
Net Loss
|
$ | (4,268,365 | ) | $ | (526,623 | ) | $ | (4,794,988 | ) | |||
Adjustments to reconcile net loss to net cash
|
||||||||||||
used in operating activities:
|
||||||||||||
Depreciation and amortization
|
75,000 | - | 75,000 | |||||||||
Amortization of discount on notes payable
|
393,579 | 30,202 | 423,781 | |||||||||
Amortization of deferred financing costs
|
49,881 | (116 | ) | 49,765 | ||||||||
Accrued interest on capital sublease obligation
|
- | 657,986 | 657,986 | |||||||||
Gain on sale of fixed assets
|
- | (161,566 | ) | (161,566 | ) | |||||||
Change in operating assets and liabilities:
|
- | |||||||||||
Prepaid expenses and other current assets
|
5,392 | - | 5,392 | |||||||||
Accounts payable and accrued liabilities
|
630,918 | - | 630,918 | |||||||||
Interest payable
|
1,404,457 | - | 1,404,457 | |||||||||
Net Cash Used in Operating Activities
|
(1,709,138 | ) | (117 | ) | (1,709,255 | ) | ||||||
Cash Flows From Investing Activities
|
||||||||||||
Purchases of machinery and equipment
|
- | - | - | |||||||||
Proceeds from sale of machinery and equipment
|
357,265 | - | 357,265 | |||||||||
Net Cash Used in Investing Activities
|
357,265 | - | 357,265 | |||||||||
Cash Flows From Financing Activities
|
||||||||||||
Change in restricted cash
|
(317,738 | ) | - | (317,738 | ) | |||||||
Customer deposits
|
1,433,048 | - | 1,433,048 | |||||||||
Issuance of common stock
|
- | - | - | |||||||||
Common stock issuance costs
|
- | - | - | |||||||||
Repayments of notes payable
|
(277,000 | ) | - | (277,000 | ) | |||||||
Payment of deferred financing costs
|
(19,243 | ) | 117 | (19,126 | ) | |||||||
Proceeds from convertible notes
|
180,000 | - | 180,000 | |||||||||
Repayments of advances from related party
|
(400 | ) | - | (400 | ) | |||||||
Advances to related party
|
12,000 | - | 12,000 | |||||||||
Net Cash Provided by Financing Activities
|
1,010,667 | 117 | 1,010,784 | |||||||||
Net Change in Cash
|
(341,206 | ) | - | (341,206 | ) | |||||||
Cash at Beginning of Year
|
374,652 | - | 374,652 | |||||||||
Cash at End of Year
|
$ | 33,446 | $ | - | $ | 33,446 |
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Warrant liabilities
|
$ | - | $ | - | $ | 1,768,824 | $ | 1,768,824 | ||||||||
Assets held for sale
|
$ | - | $ | - | $ | 1,576,798 | $ | 1,576,798 |
Fair Value
at March 31,
|
Valuation
Techniques
|
Unobservable Input
|
Weighted
Average
|
|||||||||
Warrant liabilities
|
$ | 1,768,824 |
Black-Scholes
|
Risk-free rate
Time to liquidity
Dividend yield
Volatility
|
1.69%
4.79 yrs.
0.00%
80.16%
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Warrant liabilities
|
$ | - | $ | - | $ | 907,703 | $ | 907,703 | ||||||||
Assets held for sale
|
$ | - | $ | - | $ | 2,200,000 | $ | 2,200,000 |
Balance at January 1, 2016
|
$ | 907,703 | ||
Issuance of warrants
|
133,513 | |||
Change in fair value of warrants included in earnings
|
730,703 | |||
Exercise of warrants
|
(3,095 | ) | ||
Balance at March 31, 2016
|
$ | 1,768,824 |
This ‘10-12B’ Filing | Date | Other Filings | ||
---|---|---|---|---|
6/29/25 | ||||
12/15/24 | ||||
9/30/22 | ||||
5/10/21 | ||||
1/1/19 | ||||
12/15/17 | ||||
7/1/17 | ||||
12/31/16 | ||||
12/15/16 | ||||
9/1/16 | ||||
8/1/16 | ||||
7/31/16 | ||||
Filed on: | 7/25/16 | |||
7/20/16 | ||||
7/18/16 | 1-U/A | |||
7/14/16 | ||||
6/30/16 | ||||
6/1/16 | ||||
5/31/16 | 1-U | |||
5/23/16 | ||||
5/18/16 | ||||
5/10/16 | ||||
5/3/16 | 1-U | |||
4/25/16 | ||||
3/31/16 | 1-U, 1-U/A | |||
2/28/16 | ||||
2/24/16 | ||||
2/16/16 | ||||
2/1/16 | ||||
1/1/16 | ||||
12/31/15 | 1-K, 1-K/A | |||
12/17/15 | ||||
12/10/15 | ||||
11/20/15 | 1-A/A | |||
10/21/15 | 1-A/A | |||
8/28/15 | 1-A | |||
8/1/15 | ||||
7/31/15 | ||||
7/20/15 | ||||
7/9/15 | ||||
6/29/15 | ||||
3/31/15 | ||||
3/17/15 | ||||
3/13/15 | ||||
3/2/15 | ||||
1/15/15 | ||||
1/1/15 | ||||
12/31/14 | ||||
12/27/14 | ||||
12/15/14 | ||||
12/5/14 | ||||
12/2/14 | ||||
11/10/14 | ||||
9/2/14 | ||||
8/1/14 | ||||
7/31/14 | ||||
7/17/14 | ||||
6/20/14 | ||||
6/19/14 | ||||
5/31/14 | ||||
5/30/14 | ||||
4/17/14 | ||||
4/8/14 | ||||
3/6/14 | ||||
2/28/14 | ||||
2/27/14 | ||||
12/31/13 | ||||
12/27/13 | ||||
11/1/13 | ||||
3/3/13 | ||||
2/28/13 | ||||
12/31/12 | ||||
10/26/09 | ||||
List all Filings |