DELAWARE | 23-2517953 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
Emerging Growth Company | ☐ |
AFTERMASTER, INC. | ||
INDEX | ||
PART I - FINANCIAL INFORMATION | ||
PAGE NUMBER | ||
Item 1. | Financial Statements | 3 |
Condensed Consolidated Balance Sheets | 3 | |
Condensed Consolidated Statements of Operations - For the three and nine months ended | 4 | |
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - For the three and nine months ended March 31, 2019 and 2018 (unaudited) | 5 | |
Condensed Consolidated Statements of Cash Flows - For the three and nine months ended | ||
Notes to Condensed Consolidated Financial Statements (unaudited) | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosure About Market Risks | |
Item 4T. | Controls and Procedures |
PART II - OTHER INFORMATION | ||
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Submission of Matters to a Vote of Security Holders | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
SIGNATURES |
AFTERMASTER, INC. | ||
Condensed Consolidated Balance Sheets | ||
September 30, | June 30, | |
2018 | 2018 | |
(Unaudited) | ||
ASSETS | ||
Current Assets | ||
Cash and cash equivalents | $135,873 | $390,191 |
Accounts receivable | 265,126 | 203,720 |
Prepaid expenses | 809,273 | 388,374 |
Total Current Assets | 1,210,272 | 982,285 |
Property and equipment, net | 119,893 | 143,360 |
Deposits | 24,217 | 25,117 |
Total Assets | $1,354,382 | $1,150,762 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Current Liabilities | ||
Accounts payable and other accrued expenses | $1,503,642 | $1,592,257 |
Accrued interest | 523,585 | 351,189 |
Deferred revenue | 2,400 | 2,400 |
Accrued consulting services - related party | 107,925 | 70,621 |
Derivative Liability | 2,864,661 | 2,815,520 |
Notes payable - related party | 115,000 | 76,000 |
Notes payable, net of discount of $51,902 and $77,090, respectively | 790,098 | 642,910 |
Convertible notes payable - related party, net of discount of $2,853 and $4,422, respectively | 116,647 | 115,078 |
Convertible notes payable, net of discount of $1,098,455 and $812,306, respectively | 3,176,667 | 2,959,457 |
Total Current Liabilities | 9,200,625 | 8,625,432 |
Commitments and Contingencies | - | - |
Total Liabilities | 9,200,625 | 8,625,432 |
Stockholders' Deficit | ||
Convertible preferred stock, Series A; $0.001 par value; 100,000 shares authorized, 15,500 shares issued and outstanding | 16 | 16 |
Convertible preferred stock, Series A-1; $0.001 par value; 3,000,000 shares authorized 2,585,000 shares issued and outstanding, respectively | 2,585 | 2,585 |
Convertible preferred stock, Series B; $0.001 par value; 200,000 shares authorized, 3,500 shares issued and outstanding | 3 | 3 |
Convertible preferred stock, Series C; $0.001 par value; 1,000,000 shares authorized, 13,404 shares issued and outstanding | 13 | 13 |
Convertible preferred stock, Series D; $0.001 par value; 375,000 shares authorized, 130,000 shares issued and outstanding | 130 | 130 |
Convertible preferred stock, Series E; $0.001 par value; 1,000,000 shares authorized, 275,000 shares issued and outstanding | 275 | 275 |
Convertible preferred stock, Series P; $0.001 par value; 600,000 shares authorized, 86,640 shares issued and outstanding | 87 | 87 |
Convertible preferred stock, Series S; $0.001 par value; 50,000 shares authorized, -0- shares issued and outstanding | - | - |
Common stock, authorized 250,000,000 shares, | ||
par value $0.001, 162,067,599 and 133,741,227 shares issued | ||
and outstanding, respectively | 162,068 | 133,742 |
Common stock to be issued, 32,106,165 and 28,552,939, respectively | 32,106 | 28,553 |
Additional paid in capital | 70,639,756 | 68,916,676 |
Accumulated Deficit | (78,683,282) | (76,556,750) |
Total Stockholders' Deficit | (7,846,243) | (7,474,670) |
Total Liabilities and Stockholders' Deficit | $1,354,382 | $1,150,762 |
AFTERMASTER, INC. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
March 31, | June 30, | |
2019 | 2018 | |
ASSETS | ||
Current Assets | ||
Cash and cash equivalents | $94,277 | $390,191 |
Accounts receivable, net | 365,581 | 203,720 |
Prepaid expenses | 358,271 | 388,374 |
Total Current Assets | 818,129 | 982,285 |
Property and equipment, net | 75,580 | 143,360 |
Deposits | 24,217 | 25,117 |
Total Assets | $917,926 | $1,150,762 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Current Liabilities | ||
Accounts payable and other accrued expenses | $1,788,518 | $1,592,257 |
Accrued interest | 706,933 | 351,189 |
Deferred revenue | 421 | 2,400 |
Accrued consulting services - related party | 128,373 | 70,621 |
Derivative Liability | 7,046,737 | 2,815,520 |
Notes payable - related party | 213,000 | 76,000 |
Notes payable, net of discount of $484 and $77,090, respectively | 1,027,516 | 642,910 |
Convertible notes payable - related party, net of discount of $0 and $4,422, respectively | 119,500 | 115,078 |
Convertible notes payable, net of discount of $852,853 and $812,306, respectively | 4,013,401 | 2,959,457 |
Total Current Liabilities | 15,044,399 | 8,625,432 |
Total Liabilities | 15,044,399 | 8,625,432 |
Commitments and Contingencies | ||
Stockholders' Deficit | ||
Convertible preferred stock, Series A; $0.001 par value; 100,000 shares authorized, 15,500 shares issued and outstanding | 16 | 16 |
Convertible preferred stock, Series A-1; $0.001 par value; 3,000,000 shares authorized 2,585,000 shares issued and outstanding, respectively | 2,585 | 2,585 |
Convertible preferred stock, Series B; $0.001 par value; 200,000 shares authorized, 3,500 shares issued and outstanding | 3 | 3 |
Convertible preferred stock, Series C; $0.001 par value; 1,000,000 shares authorized, 13,404 shares issued and outstanding | 13 | 13 |
Convertible preferred stock, Series D; $0.001 par value; 375,000 shares authorized, 130,000 shares issued and outstanding | 130 | 130 |
Convertible preferred stock, Series E; $0.001 par value; 1,000,000 shares authorized, 275,000 shares issued and outstanding | 275 | 275 |
Convertible preferred stock, Series H; $0.001 par value; 5 shares authorized, 2 shares issued and outstanding | - | - |
Convertible preferred stock, Series P; $0.001 par value; 600,000 shares authorized, 86,640 shares issued and outstanding | 87 | 87 |
Convertible preferred stock, Series S; $0.001 par value; 50,000 shares authorized, -0- shares issued and outstanding | - | - |
Common stock, authorized 513,407,666 shares, | ||
par value $0.001, 239,531,194 and 133,446,521 shares issued | ||
and outstanding, respectively | 239,537 | 133,742 |
Common stock to be issued, 3,885,000 and 28,841,381, respectively | 3,885 | 28,553 |
Additional paid In capital | 72,169,472 | 68,916,676 |
Accumulated Deficit | (86,542,476) | (76,556,750) |
Total Stockholders' Deficit | (14,126,473) | (7,474,670) |
Total Liabilities and Stockholders' Deficit | $917,926 | $1,150,762 |
The accompanying notes are an integral part of these condensed consolidated financial statements. |
AFTERMASTER, INC. | ||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||
(Unaudited) | ||
For the Three Months Ended | ||
September 30, | ||
2018 | 2017 | |
REVENUES | ||
AfterMaster Revenues | $145,413 | $120,715 |
Product Revenues | 389,109 | 94,681 |
Total Revenues | 534,522 | 215,396 |
COSTS AND EXPENSES | ||
Cost of Revenues (Exclusive of Depreciation and Amortization) | 417,757 | 156,328 |
Depreciation and Amortization Expense | 23,467 | 38,969 |
Research and Development | 2,600 | 2,194 |
Advertising and Promotion Expense | 54,369 | 2,016 |
Legal and Professional Expense | 11,030 | 14,190 |
Non-Cash Consulting Expense | 65,116 | 76,438 |
General and Administrative Expenses | 849,187 | 786,990 |
Total Costs and Expenses | 1,423,526 | 1,077,125 |
Loss from Operations | (889,004) | (861,729) |
Other Income (Expense) | ||
Interest Expense | (806,650) | (855,451) |
Derivative Expense | (1,043,090) | (137,466) |
Change in Fair Value of Derivative | 612,212 | 202,820 |
Gain on Extinguishment of Debt | - | 90,042 |
Total Other Income (Expense) | (1,237,528) | (700,055) |
Loss Before Income Taxes | (2,126,532) | (1,561,784) |
Income Tax Expense | - | - |
NET LOSS | $(2,126,532) | $(1,561,784) |
Preferred Stock Accretion and Dividends | (56,367) | (56,367) |
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS | $(2,182,899) | $(1,618,151) |
Basic and diluted Loss Per Share of Common Stock | $(0.01) | $(0.01) |
Weighted Average Number of Shares Outstanding | 171,607,750 | 119,459,942 |
Other Comprehensive Income, net of tax | ||
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS | (2,182,899) | (1,618,151) |
Unrealized loss on Available for Sale Securities | - | (75,660) |
COMPREHENSIVE LOSS | $(2,182,899) | $(1,693,811) |
The accompanying notes are an integral part of these condensed consolidated financial statements. |
AFTERMASTER, INC. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
For the Three Months Ended | ||
September 30, | ||
2018 | 2017 | |
OPERATING ACTIVITIES | ||
Net Loss | $(2,126,532) | $(1,561,784) |
Adjustments to reconcile net loss to cash from operating activities: | ||
Depreciation and amortization | 23,467 | 38,969 |
Share-based compensation - Common Stock | 65,047 | 100,589 |
Common stock issued for services | 366,015 | - |
Common stock issued for charitable contribution | - | 16,897 |
Amortization of debt discount and issuance costs | 500,457 | 401,895 |
(Gain)/Loss on extinguishment of debt | - | (90,042) |
Derivative expense | 1,043,090 | 137,466 |
(Gain)/Loss remeasurement of derivative | (612,212) | (202,820) |
Changes in Operating Assets and Liabilities: | ||
Accounts receivables | (58,838) | (55,774) |
Inventory | (2,568) | (101,657) |
Other assets | (300,899) | 76,438 |
Deposits | 900 | - |
Accounts payable and accrued expenses | (88,615) | 60,453 |
Payment made on accrued interest | (102,217) | 0 |
Accrued interest | 396,192 | 443,455 |
Deferred revenue | - | (3,931) |
Accrued consulting services - related party | 37,304 | 11,385 |
Net Cash Used in Operating Activities | (859,409) | (728,461) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | - | (546) |
Purchase of intangible assets | - | (3,150) |
Net Cash Used in Investing Activities | - | (3,696) |
FINANCING ACTIVITIES | ||
Common Stock issued for cash | - | 168,500 |
Proceeds from notes payable | 125,000 | 175,000 |
Repayments of notes payable | (10,000) | - |
Proceeds from notes payable - related party | 39,000 | 18,000 |
Repayments of notes payable - related party | - | (10,000) |
Proceeds from convertible notes payable | 577,850 | 438,500 |
Repayments of convertible notes payable | (126,759) | (220,000) |
Lease Payable | - | (1,937) |
Net Cash Provided by Financing Activities | 605,091 | 568,063 |
NET CHANGE IN CASH | (254,318) | (164,094) |
CASH AT BEGINNING OF PERIOD | 390,191 | 250,728 |
CASH AT END OF PERIOD | $135,873 | $86,634 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
CASH PAID FOR: | ||
Interest | $102,217 | $- |
Taxes | $- | $- |
NON CASH FINANCING ACTIVITIES: | ||
Beneficial conversion feature | $274,310 | $30,000 |
Conversion of notes and Interest into common stock | $90,000 | $34,000 |
Derivative Liability | $577,850 | $326,898 |
Conversion of Derivative Liability | $959,587 | $- |
Mark To Market on Available for Sale securities | $366,015 | $75,660 |
Common stock issued with convertible debt | $- | $15,963 |
Common stock issued for prepaid expenses | $- | $22,800 |
Convertible notes payable issued for prepaid expenses | $120,000 | $- |
Original Issue Discount | $102,000 | $111,735 |
Assignment of Debt | $11,238 | $- |
Conversion of accrued interest into common stock | $- | $217,628 |
The accompanying notes are an integral part of these condensed consolidated financial statements. |
AFTERMASTER, INC. | ||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||
(Unaudited) | ||||
For the Three Months Ended | For the Nine Months Ended | |||
March 31, | March 31, | |||
2019 | 2018 | 2019 | 2018 | |
REVENUES | ||||
AfterMaster Revenues | $185,042 | $132,291 | $457,414 | $371,910 |
Product Revenues | 21,590 | 308,905 | 691,804 | 529,748 |
Total Revenues | 206,632 | 441,196 | 1,149,218 | 901,658 |
COSTS AND EXPENSES | ||||
Cost of Revenues (Exclusive of Depreciation and Amortization) | 137,958 | 365,407 | 1,016,911 | 876,747 |
Depreciation and Amortization Expense | 22,792 | 41,800 | 69,687 | 125,307 |
Research and Development | - | 8,793 | 5,623 | 10,987 |
Advertising and Promotion Expense | 10,252 | 28,939 | 76,820 | 47,604 |
Legal and Professional Expense | 17,736 | 28,915 | 32,546 | 66,105 |
Non-Cash Consulting Expense | 406,661 | 75,914 | 710,508 | 167,949 |
General and Administrative Expenses | 625,452 | 588,816 | 2,260,986 | 2,193,848 |
Total Costs and Expenses | 1,220,851 | 1,138,584 | 4,173,081 | 3,488,547 |
Loss from Operations | (1,014,219) | (697,388) | (3,023,863) | (2,586,889) |
Other Income (Expense) | ||||
Interest Expense | (686,510) | (734,221) | (2,225,076) | (2,199,709) |
Derivative Expense | (239,733) | (1,328,142) | (1,595,079) | (1,668,421) |
Change in Fair Value of Derivative | (3,736,445) | 169,584 | (3,141,708) | 1,278,948 |
Gain Available for Sale Securities | - | 240,000 | - | 240,000 |
Gain on Extinguishment of Debt | - | 4,681,469 | - | 4,771,511 |
Total Other Income (Expense) | (4,662,688) | 3,028,690 | (6,961,863) | 2,422,329 |
Income (Loss) Before Income Taxes | (5,676,907) | 2,331,302 | (9,985,726) | (164,560) |
Income Tax Expense | - | - | - | - |
NET INCOME (LOSS) | $(5,676,907) | $2,331,302 | $(9,985,726) | $(164,560) |
Preferred Stock Accretion and Dividends | (57,595) | (56,367) | (170,329) | (169,101) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $(5,734,502) | $2,274,935 | $(10,156,055) | $(333,661) |
Basic Income (Loss) Per Share of Common Stock | $(0.03) | $0.02 | $(0.05) | $(0.00) |
Weighted Average Number of Shares Outstanding | 188,064,556 | 130,950,689 | 165,404,715 | 124,785,081 |
Diluted Loss Per Share of Common Stock | $(0.03) | $0.01 | $(0.05) | $(0.00) |
Diluted Weighted Average Number of Shares Outstanding | 188,064,566 | 182,810,706 | 165,404,715 | 124,785,081 |
Other Comprehensive Income, net of tax | ||||
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS | (5,734,502) | 2,274,935 | (10,156,055) | (333,661) |
Unrealized Gain (Loss) on AFS Securities | - | 64,800 | - | - |
COMPREHENSIVE INCOME (LOSS) | $(5,734,502) | $2,339,735 | $(10,156,055) | $(333,661) |
The accompanying notes are an integral part of these condensed consolidated financial statements. |
AFTERMASTER, INC. | |||||||||
Consolidated Statements of Stockholders' Equity (Deficit) | |||||||||
Additional | Total | ||||||||
Preferred Stock | Common Stock | Paid In | Common Stock to | Accumulated | Accumulated Other | Stockholders' | |||
Shares | Amount | Shares | Amount | Capital | be Issued | Deficit | Comprehensive Income | Equity | |
Balance, June 30, 2017 | 3,109,044 | $3,109 | 118,486,728 | $118,493 | $63,627,987 | $- | $(72,303,551) | $93,600 | $(8,460,362) |
Common Stock Sold for Cash, net of offering costs of $1,500 | - | - | 1,625,000 | 1,625 | 166,875 | - | - | - | 168,500 |
Share-Based Compensation to Directors and Employees- Common shares | - | - | 591,692 | 2 | 99,997 | 590 | - | - | 100,589 |
Total Stock Issued for Consulting Services and Rent | - | - | 120,000 | 120 | 22,680 | - | - | - | 22,800 |
Common stock issued as incentive with Convertible debt | - | - | 115,500 | 116 | 15,847 | - | - | - | 15,963 |
Common stock issued for conversion of debt | - | - | 340,000 | 340 | 33,660 | - | - | - | 34,000 |
Common stock issued for interest expense | - | - | 1,280,162 | - | 216,348 | 1,280 | - | - | 217,628 |
Common stock issued for extension of notes | - | - | 115,000 | - | 16,782 | 115 | - | - | 16,897 |
Accumulated other comprehensive income from Available for Sale Securities | - | - | - | - | - | - | - | (75,660) | (75,660) |
Beneficial Conversion Feature | - | - | - | - | 111,735 | - | - | - | 111,735 |
Share-Based Compensation - Warrants and options | - | - | - | - | (6,019) | - | - | - | (6,019) |
Net loss for the quarter ended September 30, 2017 | - | - | - | - | - | (1,561,784) | - | (1,561,784) | |
Balance, September 30, 2017 | 3,109,044 | $3,109 | 122,674,082 | $120,696 | $64,305,892 | $1,985 | $(73,865,335) | $17,940 | $(9,415,713) |
Common Stock Sold for Cash, net of offering costs of $3,250 | - | - | 575,000 | 575 | 53,675 | - | - | - | 54,250 |
Share-Based Compensation to Directors and Employees- Common shares | - | - | 756,833 | - | 86,277 | 757 | - | - | 87,034 |
Common stock issued as incentive with Convertible debt | - | - | 2,895,006 | 2,672 | 174,037 | 224 | - | - | 176,933 |
Accumulated other comprehensive income from Available for Sale Securities | - | - | - | - | - | - | - | 10,860 | 10,860 |
Beneficial Conversion Feature | - | - | - | - | 73,086 | - | - | - | 73,086 |
Share-Based Compensation - Warrants and options | - | - | - | - | (10,513) | - | - | - | (10,513) |
Net loss for the year ended December 31, 2017 | - | - | - | �� - | - | (934,078) | - | (934,078) | |
Balance, December 31, 2017 | 3,109,044 | $3,109 | 126,900,921 | $123,943 | $64,682,454 | $2,966 | $(74,799,413) | $28,800 | $(9,958,141) |
Common Stock Sold for Cash, net of offering costs of $4,750 | - | - | 6,366,666 | 641 | 184,634 | 5,726 | - | - | 191,001 |
Share-Based Compensation to Directors and Employees- Common shares | - | - | 1,075,107 | - | 63,430 | 1,075 | - | - | 64,505 |
Total Stock Issued for Consulting Services and Rent | - | - | 295,000 | 295 | 26,195 | - | - | - | 26,490 |
Common stock issued as incentive with Convertible debt | - | - | 3,087,595 | - | 121,277 | 3,088 | - | - | 124,365 |
Common stock issued for conversion of debt | - | - | 9,259,958 | 6,675 | 234,006 | 2,584 | - | - | 243,265 |
Common Stock cancelled in extinquishment of debt | - | - | (14,837,251) | (14,550) | 14,838 | (288) | - | - | - |
Accumulated other comprehensive income from Available for Sale Securities | - | - | - | - | - | - | - | (28,800) | (28,800) |
Beneficial Conversion Feature | - | - | - | - | 3,700 | - | - | - | 3,700 |
Derivative liability | - | - | - | - | 437,607 | - | - | - | 437,607 |
Net Income for the year ended March 31, 2018 | - | - | - | - | - | 2,331,302 | - | 2,331,302 | |
Balance, March 31, 2018 | 3,109,044 | $3,109 | 132,147,996 | $117,004 | $65,768,141 | $15,151 | $(72,468,111) | $- | $(6,564,706) |
AFTERMASTER, INC. | |||||||||
Consolidated Statements of Stockholders' Equity (Deficit) | |||||||||
Additional | Total | ||||||||
Preferred Stock | Common Stock | Paid In | Common Stock to | Accumulated | Accumulated Other | Stockholders' | |||
Shares | Amount | Shares | Amount | Capital | be Issued | Deficit | Comprehensive Income | Equity | |
Balance, June 30, 2018 | 3,109,044 | $3,109 | 133,446,521 | $133,742 | $68,916,676 | $28,553 | $(76,556,750) | $- | $(7,474,670) |
Share-Based Compensation to Directors and Employees- Common shares | - | - | - | - | 62,879 | 2,168 | - | - | 65,047 |
Total Stock Issued for Consulting Services and Rent | - | - | 8,000,000 | 8,000 | 356,630 | 1,385 | - | - | 366,015 |
Common stock issued for conversion of debt | - | - | 17,326,372 | 17,326 | 256,984 | - | - | - | 274,310 |
Common stock issued for interest expense | - | - | 3,000,000 | 3,000 | 87,000 | - | - | - | 90,000 |
Derivative liability | - | - | - | - | 959,587 | - | - | - | 959,587 |
Net loss for the quarter ended September 30, 2018 | - | - | - | - | - | (2,126,532) | - | (2,126,532) | |
Balance, September 30, 2018 | 3,109,044 | $3,109 | 161,772,893 | $162,068 | $70,639,756 | $32,106 | $(78,683,282) | $- | $(7,846,243) |
Share-Based Compensation to Directors and Employees- Common shares | - | - | - | - | 57,598 | 3,031 | - | - | 60,629 |
Total Stock Issued for Consulting Services and Rent | - | - | - | - | 47,250 | 2,500 | - | - | 49,750 |
Common stock issued for conversion of debt | - | - | - | 5,397 | 51,626 | - | - | - | 57,023 |
Derivative liability | - | - | - | - | 203,869 | - | - | - | 203,869 |
Net loss for the quarter ended December 31, 2018 | - | - | - | - | - | (2,182,287) | - | (2,182,287) | |
Balance, December 31, 2018 | 3,109,044 | $3,109 | 167,170,130 | $167,465 | $71,000,099 | $37,637 | $(80,865,569) | $- | $(9,657,259) |
Common Stock Sold for Cash, net of offering costs of $0 | - | - | 9,750,000 | 9,750 | 87,750 | - | - | - | 97,500 |
Share-Based Compensation to Directors and Employees- Common shares | - | - | 7,541,033 | 7,541 | 143,280 | - | - | - | 150,821 |
Total Stock Issued for Consulting Services and Rent | - | - | 3,750,000 | 3,750 | 56,250 | - | - | - | 60,000 |
Preferred H stock issued for conversion of debt | 2 | - | - | - | 198,116 | - | - | - | 198,116 |
Common stock issued for conversion of debt | - | - | 17,278,951 | 17,279 | 89,513 | - | - | - | 106,792 |
Common Stock Issued from stock to be issued | - | - | 34,041,080 | 33,752 | - | (33,752) | - | - | - |
Derivative liability | - | - | - | - | 594,464 | - | - | - | 594,464 |
Net loss for the quarter ended March 31, 2019 | - | - | - | - | - | (5,676,907) | - | (5,676,907) | |
Balance, March 31, 2019 | 3,109,046 | $3,109 | 239,531,194 | $239,537 | $72,169,472 | $3,885 | $(86,542,476) | $- | $(14,126,473) |
The accompanying notes are an integral part of these consolidated financial statements. |
AFTERMASTER, INC. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
For the Nine Months Ended | ||
March 31, | ||
2019 | 2018 | |
OPERATING ACTIVITIES | ||
Net Loss | $(9,985,726) | $(164,560) |
Adjustments to reconcile net loss to cash from operating activities: | ||
Depreciation and amortization | 69,687 | 125,308 |
Share-based compensation - Common Stock | 276,497 | 252,128 |
Share Based Compensation - preferred stock | 148,116 | - |
Common stock issued for services | 303,874 | - |
Common stock issued as incentive with convertible debt | - | 16,897 |
Amortization of debt discount and issuance costs | 1,602,061 | 1,338,202 |
(Gain)/Loss on extinguishment of debt | - | (4,714,005) |
Derivative expense | 1,595,079 | 1,668,421 |
(Gain)/Loss remeasurement of derivative | 3,141,707 | (1,278,948) |
Gain on Available for Sale Securities | - | (220,000) |
Changes in Operating Assets and Liabilities: | ||
Accounts receivables | (161,862) | 26,125 |
Inventory | - | (18,049) |
Other assets | 321,994 | 129,554 |
Deposits | 900 | - |
Accounts payable and accrued expenses | 196,264 | 235,862 |
Accrued interest | 528,138 | 865,274 |
Deferred revenue | (1,979) | (270,623) |
Accrued consulting services - related party | 107,752 | 59,278 |
Net Cash Used in Operating Activities | (1,857,498) | (1,949,136) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (1,907) | (5,424) |
Sale of available for sale securities | - | 250,000 |
Purchase of intangible assets | - | (3,150) |
Net Cash Used in Investing Activities | (1,907) | 241,426 |
FINANCING ACTIVITIES | ||
Common Stock issued for cash | 97,500 | 413,750 |
Proceeds from notes payable | 325,000 | 694,375 |
Repayments of notes payable | (47,000) | (255,000) |
Proceeds from notes payable - related party | 137,000 | 85,500 |
Repayments of notes payable - related party | - | (245,000) |
Proceeds from convertible notes payable - related party | - | 84,500 |
Proceeds from convertible notes payable | 1,252,350 | 1,511,085 |
Repayments of convertible notes payable | (201,359) | (650,000) |
Lease Payable | - | (1,937) |
Net Cash Provided by Financing Activities | 1,563,491 | 1,637,273 |
NET CHANGE IN CASH | (295,914) | (70,437) |
CASH AT BEGINNING OF PERIOD | 390,191 | 250,728 |
CASH AT END OF PERIOD | $94,277 | $180,291 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
CASH PAID FOR: | ||
Interest | $- | $- |
Taxes | $- | $- |
NON CASH FINANCING ACTIVITIES: | ||
Beneficial conversion feature | $- | $188,521 |
Conversion of notes and Interest into common stock | $518,125 | $277,265 |
Conversion of related party payables into preferred stock | $50,000 | $- |
Derivative Liability | $1,252,350 | $907,001 |
Conversion of Derivative Liability | $1,757,920 | $437,607 |
Market To Market on Available For Sale securities | $- | $64,800 |
Common stock issued with notes payable | $- | $317,261 |
Common stock issued for prepaid expenses | $475,765 | $49,290 |
Convertible notes payable issued for prepaid expenses | $120,000 | $- |
Cancellation of common shares as part of settlement of debt | $- | $14,838 |
Original Issue Discount | $199,146 | $115,365 |
Common stock issued from stock to be issued | $28,553 | $- |
Assignment of Debt | $11,238 | $- |
Conversion of accrued interest into common stock | $- | $217,628 |
The accompanying notes are an integral part of these condensed consolidated financial statements. |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
For the Three Months Ended March 31, 2019 | |||
Geography | Professional | Transaction | Total |
services | based | ||
North America | $185,042 | $21,590 | $206,632 |
International | - | - | - |
Total | $185,042 | $21,590 | $206,632 |
For the Nine Months Ended March 31, 2019 | |||
Geography | Professional | Transaction | Total |
services | based | ||
North America | $457,414 | $691,804 | $1,149,218 |
International | - | - | - |
Total | $457,414 | $691,804 | $1,149,218 |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
As of March 31, 2019 | |||
Condensed Consolidated Balance Sheets | As Reported | Previous Accounting Guidance | Impact from Adopting Topic 606 |
ASSETS | |||
Accounts receivable | 365,581 | 414,912 | 49,331 |
Total Current Assets | 818,129 | 867,460 | 49,331 |
Total Assets | $917,926 | $967,257 | $49,331 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Accounts payable and other accrued expenses | 1,788,518 | 1,828,528 | 40,010 |
Total Current Liabilities | 15,044,399 | 15,084,409 | 40,010 |
Total Liabilities | $15,044,399 | $15,084,409 | $40,010 |
Accumulated Deficit | (86,542,476) | (86,502,466) | 40,010 |
Total Stockholders' Deficit | (14,126,473) | (14,117,152) | 9,321 |
Total Liabilities and Stockholders' Deficit | $917,926 | $967,257 | $49,331 |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||
Three months ended March 31, 2019 | Nine months ended March 31, 2019 | |||||
As Reported | Previous Accounting Guidance | Impact from Adopting Topic 606 | As Reported | Previous Accounting Guidance | Impact from Adopting Topic 606 | |
Product Revenues | $21,590 | $70,921 | $49,331 | $691,804 | $741,135 | $49,331 |
Total Revenues | 206,632 | 255,963 | 49,331 | 1,149,218 | 1,198,549 | 49,331 |
Cost of Revenues (Exclusive of Depreciation and Amortization) | 137,958 | 177,968 | 40,010 | 1,016,911 | 1,056,921 | 40,010 |
Total Costs and Expenses | 1,220,851 | 1,260,861 | 40,010 | 4,173,081 | 4,213,091 | 40,010 |
Total Loss | (1,014,219) | (1,004,898) | 9,321 | (3,023,863) | (3,014,542) | 9,321 |
Loss Before Income Taxes | (5,676,907) | (5,667,586) | 9,321 | (9,985,726) | (9,976,405) | 9,321 |
NET LOSS | (5,676,907) | (5,667,586) | 9,321 | (9,985,726) | (9,976,405) | 9,321 |
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS | (5,734,502) | (5,725,181) | 9,321 | (10,156,055) | (10,146,734) | 9,321 |
COMPREHENSIVE LOSS | (5,734,502) | (5,725,181) | 9,321 | (10,156,055) | (10,146,734) | 9,321 |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
Convertible Notes Payable – Related Parties | ||
September 30, | June 30, | |
2018 | 2018 | |
$30,000 face value, issued in August 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures June 2019. | $30,000 | $30,000 |
$5,000 face value, issued in September 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures June 2019, net amortized discount of $0 and $607 as of September 30, 2018 and June 30, 2018, respectively. | 5,000 | 4,393 |
$10,000 face value, issued in November 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures June 2019. | 10,000 | 10,000 |
$25,000 face value, issued in December 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures December 2018, net amortized discount of $1,414 and $1,890 as of September 30, 2018 and June 30, 2018, respectively. | 23,586 | 23,110 |
$10,000 face value, issued in January 2018, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures January 2019, net unamortized discount of $399 and $534 as of September 30, 2018 and June 30, 2018, respectively. | 9,601 | 9,466 |
$15,000 face value, issued in January 2018, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures January 2019, net unamortized discount of $$1,040 and $1,391 as of September 30, 2018 and June 30, 2018, respectively. | 13,960 | 13,609 |
$24,500 face value, issued in February 2018, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures February 2019. | 24,500 | 24,500 |
Total convertible notes payable – related parties | 116,647 | 115,078 |
Less current portion | 116,647 | 115,078 |
Convertible notes payable – related parties, long-term | $- | $- |
Convertible Notes Payable – Related Parties | ||
March 31, | June 30, | |
2019 | 2018 | |
$30,000 face value, issued in August 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures June 2019 net unamortized discount of $0 as of March 31, 2019 and June 30, 2018, respectively. | $30,000 | $30,000 |
$5,000 face value, issued in September 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures June 2019, net unamortized discount of $0 and $607 as of March 31, 2019 and June 30, 2018, respectively. | 5,000 | 4,393 |
$10,000 face value, issued in November 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures June 2019. | 10,000 | 10,000 |
$25,000 face value, issued in December 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures June 2019, net unamortized discount of $0 and $1,890 as of March 31, 2019 and June 30, 2018, respectively. | 25,000 | 23,110 |
$10,000 face value, issued in January 2018, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures January 2019, net unamortized discount of $0 and $534 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 10,000 | 9,466 |
$15,000 face value, issued in January 2018, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures January 2019, net unamortized discount of $0 and $1,391 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 15,000 | 13,609 |
$24,500 face value, issued in February 2018, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures February 2019. The note is currently in default. | 24,500 | 24,500 |
Total convertible notes payable – related parties | 119,500 | 115,078 |
Less current portion | 119,500 | 115,078 |
Convertible notes payable – related parties, long-term | $- | $- |
AFTERMASTER, INC. | ||
Notes to Consolidated Financial Statements | ||
March 31, 2019 (Unaudited) |
Convertible Notes Payable - Non-Related Parties | ||
March 31, | June 30, | |
2019 | 2018 | |
$7,000 face value, issued in July 2014, interest rate of 6% and is convertible into shares of the Company’s common stock at $0.10 per share, matures February 2019. The note is currently in default. | $7,000 | $7,000 |
$100,000 face value, issued in February 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.30 per share, matures February 2019. The note is currently in default. | 100,000 | 100,000 |
$25,000 face value, issued in February 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures February 2019. The note is currently in default. | 25,000 | 25,000 |
$100,000 face value, issued in March 2016, interest rate of 10%, matured October 2018. The note is currently in default. | 100,000 | 100,000 |
$10,000 face value, issued in March 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured October 2018. The note is currently in default. | 10,000 | 10,000 |
$50,000 face value, issued in July 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured October 2018. The note is currently in default. | 50,000 | 50,000 |
$50,000 face value, issued in August 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured October 2018. The note is currently in default. | 50,000 | 50,000 |
$1,000,000 face value, issued in September 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured October 2018. The note is currently in default. | 1,000,000 | 1,000,000 |
$149,000 face value, issued in February 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids twenty (20) days prior to the conversion date or $0.40 per share, matured June 2018, of which $67,237 was converted. The note is currently in default. | 81,763 | 79,340 |
$224,000 face value, issued in February 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids twenty (20) days prior to the conversion date or $0.40 per share, matured June 2018, of which $119,166 was converted. The note is currently in default. | 104,834 | 98,508 |
$265,000 face value, issued in May 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $.31 and 60% of the lowest closing bids twenty-five (25) days prior to the conversion date, matured February 2018, of which 116,328 was converted. The note is currently in default. | 148,672 | 200,412 |
$100,000 face value, issued in June 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $.17 per share, matured June 2018. The note is currently in default. | 100,000 | 100,000 |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
$78,000 face value, issued in July 2017, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured May 2018, of which $72,000 was converted. The note is currently in default. | 6,000 | 6,000 |
$10,000 face value, issued in August 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matured August 2018. The note currently is in default. | 10,000 | 9,271 |
$53,000 face value, issued in August 2017, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured June 2018. The note currently is in default. | 53,000 | 53,000 |
$10,000 face value, issued in September 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured September 2018, net unamortized discount of $0 and $4,400 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 10,000 | 5,600 |
$100,000 face value, issued in October 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured October 2018, net unamortized discount of $0 and $22,333 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 100,000 | 77,667 |
$115,000 face value, issued in November 2017, interest rate of 10% and s convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids thirty (30) days prior to the conversion per share, matured August 2018, net unamortized discount of $0 and $50,584 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 115,000 | 64,416 |
$50,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured December 2018. The note is currently in default. | 50,000 | 50,000 |
$66,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured November 2018, net unamortized discount of $0 and $17,085 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 66,000 | 48,915 |
$100,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids twenty (20) days prior to the conversion per share, matured November 2018, net unamortized discount of $0 and $39,452 as of March 31, 2019 and June 30, 2018, respectively, $100,000 was transferred to a new note. | - | 60,548 |
$5,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured November 2018, net unamortized discount of $0 and $1,932 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 5,000 | 3,068 |
$53,000 face value, issued in November 2017, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest closing bids fifteen (15) days prior to the conversion per share, matured July 2018, net unamortized discount of $0 and $4,649 as of March 31, 2019 and June 30, 2018, respectively, $53,000 was converted. | - | 13,821 |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
$100,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured December 2018, net unamortized discount of $0 and $20,137 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 100,000 | 79,863 |
$20,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured December 2018, net unamortized discount of $0 and $4,689 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 20,000 | 15,311 |
$75,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured December 2018, net unamortized discount of $0 and $23,180 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 75,000 | 51,820 |
$20,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matured December 2018, net unamortized discount of $0 and $6,181 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 20,000 | 13,819 |
$115,000 face value, issued in January 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $.12 and 57.5% of the lowest trading price during the prior thirty (30) days, matured October 2018, net unamortized discount of $0 and $42,967 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 115,000 | 72,033 |
$20,000 face value, issued in February 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures February 2019, net unamortized discount of $0 and $4,847 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 20,000 | 15,153 |
$75,075 face value, issued in February 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the lowest sales price for common stock on principal market during the twenty-five (25)consecutive trading days including the immediately preceding the conversion date, matured November 2018, net unamortized discount of $0 as of March 31, 2019 and June 30, 2018, of which $75,075 was transferred to two new notes. | - | 75,075 |
$6,000 face value, issued in February 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures June 2019. | 6,000 | 6,000 |
$10,000 face value, issued in March 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures March 2019, net unamortized discount of $0 and $2,267 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 10,000 | 7,733 |
$15,000 face value, issued in March 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures March 2019, net unamortized discount of $0 and $2,780 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 15,000 | 12,220 |
$100,000 face value, issued in March 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures March 2019, net unamortized discount of $0 and $21,696 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 100,000 | 78,304 |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
Convertible Notes Payable - Non-Related Parties | ||
September 30, | June 30, | |
2018 | 2018 | |
$7,000 face value, issued in July 2014, interest rate of 6% and is convertible into shares of the Company’s common stock at $0.10 per share, matures February 2019. | $7,000 | $7,000 |
$100,000 face value, issued in February 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.50 per share, matures February 2019. | 100,000 | 100,000 |
$25,000 face value, issued in February 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures February 2019. | 25,000 | 25,000 |
$100,000 face value, issued in March 2016, interest rate of 10%, matures October 2018. The note is currently in default. | 100,000 | 100,000 |
$10,000 face value, issued in March 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures October 2018. The note is currently in default. | 10,000 | 10,000 |
$50,000 face value, issued in July 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures October 2018. The note is currently in default. | 50,000 | 50,000 |
$50,000 face value, issued in August 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures October 2018. The note is currently in default. | 50,000 | 50,000 |
$1,000,000 face value, issued in September 2016, interest rate of 10% and is convertible into shares of the Company’s Common stock at $0.40 per share, matures October 2018. The note is currently in default. | 1,000,000 | 1,000,000 |
$149,000 face value, issued in February 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids 20 days prior to the conversion date, matures June 2018, of which $55,238 was converted. The note is currently in default. | 93,762 | 79,340 |
$224,000 face value, issued in February 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids 20 days prior to the conversion date, matures June 2018, of which $99,458 was converted. The note is currently in default. | 124,542 | 98,508 |
$265,000 face value, issued in May 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $.31 and 60% of the lowest closing bids 25 days prior to the conversion date, matures February 2018, of which 95,208 was converted. The note is currently in default. | 169,792 | 200,412 |
$100,000 face value, issued in June 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $.17 per share, matures June 2018. The note is currently in default. | 100,000 | 100,000 |
$26,000 face value, issued from an assignment in March 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 60% the lowest trading price during the previous twenty (20) days to the date of conversion, matured October 2018, net unamortized discount of $0 as of March 31, 2019 and June 30, 2018, of which $26,000 has been paid. | - | 26,000 |
$150,000 face value, issued in April 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.05 and 57.5% of the lowest closing bids twenty (20) days prior to the conversion date, matured January 2019, net unamortized discount of $0 and $105,818 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 160,000 | 44,182 |
$400,000 face value, issued from an assignment in April 2018 of $355,000 in principal and an OID of $45,000, interest rate of 10% and is convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior three (3) trading days, matures April 2019, net unamortized discount of $2,712 and $36,000 as of March 31, 2019 and June 30, 2018, respectively, of which $223,198 has been converted. The note is currently in default. | 174,090 | 140,802 |
$15,000 face value, issued in April 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior three (3) trading days, matures April 2019, net unamortized discount of $740 and $12,000 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 14,260 | 3,000 |
$150,086 face value, issued in May 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures May 2019, net unamortized discount of $13,981 and $116,522 as of March 31, 2019 and June 30, 2018, of which $57,200 has been paid and $14,150 has been converted. | 64,755 | 21,564 |
$135,700 face value, issued in May 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures May 2019, net unamortized discount of $20,448 and $111,499 as of March 31, 2019 and June 30, 2018, of which $57,200 has been paid. | 58,052 | 12,201 |
$15,651 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 60% the lowest trading price during the previous twenty (20) days to the date of conversion, matures June 2019. | 15,651 | 15,651 |
$55,718 face value, issued from an assignment in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured October 2018, net unamortized discount of $0 as of March 31, 2019 and June 30, 2018, of which $55,718 has been converted. | - | 55,718 |
$161,000 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures June 2019, net unamortized discount of $39,699 and $160,558 as of March 31, 2019 and June 30, 2018, respectively, of which 45,200 was paid. | 76,101 | 442 |
$120,000 face value, issued in July 2018 for prepaid services, interest rate of 15% and is convertible into shares of the Company's common stock at 70% of the lowest closing price during the twenty (20) days prior to the conversion per share, matures July 2019. | 120,000 | - |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
$78,000 face value, issued in July 2017, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures May 2018, of which $72,000 was converted. The note is currently in default. | 6,000 | 6,000 |
$10,000 face value, issued in August 2017, interest rate of 0% and is convertible into shares of the Company’s common stock at $0.10 per share, matures August 2018. The note currently is in default. | 10,000 | 9,271 |
$53,000 face value, issued in August 2017, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures June 2018. The note currently is in default. | 53,000 | 53,000 |
$10,000 face value, issued in September 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures September 2018, net amortized discount of $0 and $4,400 as of September 30, 2018 and June 30, 2018, respectively. The note is currently in default. | 10,000 | 5,600 |
$100,000 face value, issued in October 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures October 2018, net amortized discount of $16,704 and $22,333 as of September 30, 2018 and June 30, 2018, respectively. The note is currently in default. | 83,296 | 77,667 |
$115,000 face value, issued in November 2017, interest rate of 10% and s convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids 30 days prior to the conversion per share, matures August 2018, net amortized discount of $9,073 and $50,584 as of September 30, 2018 and June 30, 2018, respectively. The note is currently in default. | 105,927 | 64,416 |
$50,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures December 2018. | 50,000 | 50,000 |
$66,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures November 2018, net amortized discount of $12,779 and $17,085 as of September 30, 2018 and June 30, 2018, respectively. | 53,221 | 48,915 |
$100,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids 20 days prior to the conversion per share, matures November 2018, net amortized discount of $0 and $39,452 as of September 30, 2018 and June 30, 2018, respectively, $100,000 was transferred to a new note. | - | 60,548 |
$5,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures November 2018, net amortized discount of $1,445 and $1,932 as of September 30, 2018 and June 30, 2018, respectively. | 3,555 | 3,068 |
$53,000 face value, issued in November 2017, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest closing bids 15 days prior to the conversion per share, matures July 2018, net amortized discount of $0 and $4,649 as of September 30, 2018 and June 30, 2018, respectively, $53,000 was converted. | - | 13,821 |
$23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company's common stock at 55% of the average of the three (3) lowest closing price during the 25 days prior to the conversion per share, matures August 2019, net unamortized discount of $8,948 as of March 31, 2019. | 14,052 | - |
$575,000 face value, issued in August 2018 of $496,000 in principal and an OID of $79,000, interest rate of 10% and is convertible into shares of the Company’s common stock at equal the lesser of $0.12 and 70% of the lowest Trading Price for the Common Stock during the thirty (30)Trading Day period ending on the latest complete Trading Day prior to the Conversion Date, matures August 2019, net unamortized discount of $201,644 as of March 31, 2019. | 373,356 | - |
$23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior fifteen (15)trading days including the immediately preceding the conversion date, matures August 2019, net unamortized discount of $8,948 as of March 31, 2019. | 14,052 | - |
$41,850 face value, issued in August 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior fifteen (15) trading days to the date of conversion, matures August 2019, net unamortized discount of $14,218 as of March 31, 2019. | 27,632 | - |
$290,323 face value, issued in October 2018 of $249,750 in principal and an OID of $40,573, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.12 or 70% of the lowest Trading Price for the Common Stock during the thirty (30) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date, matures October 2019, net amortized discount of $160,672 as of March 31, 2019. | 129,651 | - |
$290,323 face value, issued in December 2018 of $249,750 in principal and an OID of $40,573, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.12 or 70% of the lowest Trading Price for the Common Stock during the thirty (30) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date, matures December 2019, net unamortized discount of $199,647 as of March 31, 2019. | 90,676 | - |
$89,000 face value, issued in March 2019 of $80,000 in principal and an OID of $9,000, interest rate of 10% and is convertible into shares of the Company’s common stock at 58% of the lowest Trading Price for the Common Stock during the twenty-five (25) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date, matures March 2020, net unamortized discount of $88,027 as of March 31, 2019. | 973 | - |
$100,000 face value, issued in March 2019 of $95,000 in principal and an OID of $5,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 58% of the lowest Trading Price for the Common Stock during the twenty-five (25) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date, matures March 2020, net unamortized discount of $93,169 as of March 31, 2019. | 6,831 | - |
Total convertible notes payable – non-related parties | 4,013,401 | 2,959,457 |
Less current portion | 4,013,401 | 2,959,456 |
Convertible notes payable – non-related parties, long-term | $- | $- |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
$100,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures December 2018, net amortized discount of $15,061 and $20,137 as of September 30, 2018 and June 30, 2018, respectively. | 84,939 | 79,863 |
$20,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures December 2018, net amortized discount of $3,507 and $4,689 as of September 30, 2018 and June 30, 2018, respectively. | 16,493 | 15,311 |
$75,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures December 2018, net amortized discount of $17,337 and $23,180 as of September 30, 2018 and June 30, 2018, respectively. | 57,663 | 51,820 |
$20,000 face value, issued in December 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures December 2018, net amortized discount of $4,623 and $6,181 as of September 30, 2018 and June 30, 2018, respectively. | 15,377 | 13,819 |
$115,000 face value, issued in January 2018, interest rate of 10% and s convertible into shares of the Company’s common stock at the lesser of $.12 and 57.5% of the lowest trading price during the prior 30 days, matures October 2018, net amortized discount of $28,487 and $42,967 as of September 30, 2018 and June 30, 2018, respectively. | 86,513 | 72,033 |
$20,000 face value, issued in February 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures February 2019, net amortized discount of $3,629 and $4,847 as of September 30, 2018 and June 30, 2018, respectively. | 16,371 | 15,153 |
$75,075 face value, issued in February 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the lowest sales price for common stock on principal market during the twenty-five consecutive trading days including the immediately preceding the conversion date, matures November 2018, net amortized discount of $0 as of September 30, 2018 and June 30, 2018, of which $75,075 was transferred to two new notes. | - | 75,075 |
$6,000 face value, issued in February 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures June 2019. | 6,000 | 6,000 |
$10,000 face value, issued in March 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures March 2019, net amortized discount of $1,696 and $2,267 as of September 30, 2018 and June 30, 2018, respectively. | 8,304 | 7,733 |
$15,000 face value, issued in March 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures March 2019, net amortized discount of $2,079 and $2,780 as of September 30, 2018 and June 30, 2018, respectively. | 12,921 | 12,220 |
$100,000 face value, issued in March 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at $0.10 per share, matures March 2019, net amortized discount of $16,227 and $21,696 as of September 30, 2018 and June 30, 2018, respectively. | 83,773 | 78,304 |
$120,000 face value, issued in July 2018 for prepaid services, interest rate of 15% and is convertible into shares of the Company's common stock at 70% of the lowest closing price during the 20 days prior to the conversion per share, matures July 2019. | 120,000 | |
$26,000 face value, issued from an assignment in March 2018, interest rate of 0% and is convertible into shares of the Company’s common stock at 60% the lowest trading price during the previous twenty (2) days to the date of conversion, matures October 2018, net amortized discount of $0 as of September 30, 2018 and June 30, 2018. The note is currently in default. | 26,000 | 26,000 |
$160,000 face value, issued in April 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.05 and 57.5% of the lowest closing bids 20 days prior to the conversion date, matures January 2019, net amortized discount of $70,417 and $105,818 as of September 30, 2018 and June 30, 2018, respectively. | 89,583 | 44,182 |
$400,000 face value, issued from an assignment in April 2018 of $355,000 in principal and an OID of $45,000, interest rate of 10% and is convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior 3 trading days, matures April 2019, net amortized discount of $31,507 and $36,000 as of September 30, 2018 and June 30, 2018, respectively, of which $223,198 has been converted. | 145,295 | 140,802 |
$15,000 face value, issued in April 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior 3 trading days, matures April 2019, net amortized discount of $8,975 and $12,000 as of September 30, 2018 and June 30, 2018, respectively. | 6,025 | 3,000 |
$150,086 face value, issued in May 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures January 2020, net amortized discount of $87,152 and $116,522 as of September 30, 2018 and June 30, 2018, of which $41,000 has been paid. | 21,934 | 21,564 |
$135,700 face value, issued in May 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures May 2019, net amortized discount of $83,395 and $111,499 as of September 30, 2018 and June 30, 2018, of which $41,000 has been paid. | 11,304 | 12,201 |
$15,651 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 60% the lowest trading price during the previous twenty (2) days to the date of conversion, matures June 2019. | 15,651 | 15,651 |
$55,718 face value, issued from an assignment in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures October 2018, net amortized discount of $0 as of September 30, 2018 and June 30, 2018, of which $55,718 has been converted. | - | 55,718 |
$161,000 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matures June 2018, net amortized discount of $120,089 and $160,558 as of September 30, 2018 and June 30, 2018, respectively, of which 29,000 was paid. | 11,911 | 441 |
$23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company's common stock at 55% of the average of the 3 lowest closing price during the 25 days prior to the conversion per share, matures August 2019, net amortized discount of $20,416 as of September 30, 2018. | 2,584 | - |
$106,795 face value, issued from an assignment in August 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids 20 days prior to the conversion per share, matures August 2019, net amortized discount of $0 as of September 30, 2018, of which $69,857 has been converted. | 36,938 | - |
$575,000 face value, issued from an assignment in August 2018 of $496,000 in principal and an OID of $79,000, interest rate of 10% and is convertible into shares of the Company’s common stock at equal the lesser of $0.12 and 70% of the lowest Trading Price for the Common Stock during the thirty Trading Day period ending on the latest complete Trading Day prior to the Conversion Date, matures August 2019, net amortized discount of $488,356 as of September 30, 2018. | 86,644 | - |
$23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior fifteen trading days including the immediately preceding the conversion date, matures August 2019, net amortized discount of $20,416 as of September 30, 2018. | 2,584 | - |
$41,850 face value, issued in August 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior 15 trading days to the date of conversion, matures August 2019, net amortized discount of $35,085 as of September 30, 2018. | 6,765 | - |
Total convertible notes payable – non-related parties | 3,176,667 | 2,959,456 |
Less current portion | 3,176,667 | 2,959,456 |
Convertible notes payable – non-related parties, long-term | $- | $- |
Notes Payable – Related Parties | ||||
September 30, | June 30, | March 31, | June 30, | |
2018 | 2019 | 2018 | ||
Various term notes with total face value of $30,000 issued from November 16 to February 17, interest rates of 0%, of which $5,000 has been paid. | $25,000 | |||
Various term notes with total face value of $30,000 issued from November 16 to February 17, 2019 interest rates of 0%, of which $5,000 has been paid. | $25,000 | |||
$18,000 face value, issued in September 2017, interest rate of 0%, matures June 2019. | 18,000 | 18,000 | ||
$15,000 face value, issued in October 2017, interest rate of 0%, matures June 2019. | 15,000 | 15,000 | ||
$10,000 face value, issued in June 2018, interest rate of 0%, matures June 2019. | 10,000 | 10,000 | ||
$8,000 face value, issued in June 2018, interest rate of 0%, matures June 2019. | 8,000 | 8,000 | ||
$6,000 face value, issued in July 2018, interest rate of 0%, matures June 2019. | 6,000 | - | 6,000 | - |
$6,000 face value, issued in July 2018, interest rate of 0%, matures June 2019. | 6,000 | - | 6,000 | - |
$12,000 face value, issued in August 2018, interest rate of 0%, matures June 2019. | 12,000 | - | 12,000 | - |
$15,000 face value, issued in September 2018, interest rate of 0%, matures June 2019. | 15,000 | - | 15,000 | - |
$18,500 face value, issued in October 2018, interest rate of 0%, matures June 2019. | 18,500 | - | ||
$15,000 face value, issued in November 2018, interest rate of 0%, matures June 2019. | 15,000 | - | ||
$20,000 face value, issued in November 2018, interest rate of 0%, matures June 2019. | 20,000 | - | ||
$20,000 face value, issued in December 2018, interest rate of 0%, matures June 2019. | 20,000 | - | ||
$10,000 face value, issued in January 2019, interest rate of 0%, matures June 2019. | 10,000 | - | ||
$12,000 face value, issued in January 2019, interest rate of 0%, matures June 2019. | 12,000 | - | ||
$2,500 face value, issued in February 2019, interest rate of 0%, matures June 2019. | 2,500 | - | ||
Total notes payable – related parties | 115,000 | 76,000 | 213,000 | 76,000 |
Less current portion | 115,000 | 76,000 | 213,000 | 76,000 |
Notes payable - related parties, long term | $- | $- |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
Notes Payable – Non-Related Parties | ||
September 30, | June 30, | |
2018 | 2018 | |
$52,000 face value, issued in August 2017, interest rate of 0%, matures October 2017 net of unamortized discount of $0 as of September 30, 2018 and June 30, 2018. | $52,000 | $52,000 |
$52,000 face value, issued in August 2017, interest rate of 0%, matures December 2018 net of unamortized discount of $0 and $4,901 as of September 30, 2018 and June 30, 2018, respectively. | 52,000 | 47,099 |
$81,000 face value, issued in September 2017, interest rate of 96%, matures September 2018 net of unamortized discount of $0 as of September 30, 2018 and June 30, 2018. | 81,000 | 81,000 |
$50,000 face value, issued in March 2017, interest rate of 10%, matures January 2018, net amortized discount of $0 as of September 30, 2018 and June 30, 2018. | 50,000 | 50,000 |
$225,000 face value, issued in March 2018, interest rate of 30%, matures March 2019 net of unamortized discount of $46,756 and $62,512 as of September 30, 2018 and June 30, 2018, respectively. | 178,244 | 162,488 |
$260,000 face value, issued in June 2018, interest rate of 0%, matures July 2018 net of unamortized discount of $0 and $9,677 as of September 30, 2018 and June 30, 2018, respectively, of which $10,000 has been paid. | 250,000 | 250,323 |
$52,000 face value, issued in August 2018, interest rate of 0%, matures November 2018 net of unamortized discount of $979 as of September 30, 2018. | 51,021 | - |
$80,000 face value, issued in September 2018, interest rate of 0%, matures October 2018 net of unamortized discount of $4,167 as of September 30, 2018. | 75,833 | - |
Total note payable – non-related parties | 790,098 | 642,910 |
Less current portion | 790,098 | 642,910 |
Notes payable – non-related parties, long-term | $- | $- |
Notes Payable – Non-Related Parties | ||
March 31, | June 30, | |
2019 | 2018 | |
$52,000 face value, issued in August 2017, interest rate of 0%, matured December 2018 net of unamortized discount of $0 as of March 31, 2019 and June 30, 2018. The note is currently in default. | $52,000 | $52,000 |
$52,000 face value, issued in August 2017, interest rate of 10%, matures February 2019 net of unamortized discount of $0 as of March 31, 2019 and June 30, 2018. The note is currently in default. | 52,000�� | 47,099 |
$81,000 face value, issued in September 2017, interest rate of 8% per month, matured September 2018 net of unamortized discount of $0 as of March 31, 2019 and June 30, 2018. The note is currently in default. | 81,000 | 81,000 |
$50,000 face value, issued in March 2018, interest rate of 10%, matured December 2018, net unamortized discount of $0 as of March 31, 2019 and June 30, 2018. The note is currently in default. | 50,000 | 50,000 |
$225,000 face value, issued in March 2018, interest rate of 30%, matures March 2019 net of unamortized discount of $0 and $62,512 as of March 31, 2019 and June 30, 2018, respectively. The note is currently in default. | 225,000 | 162,488 |
$260,000 face value, issued in June 2018, an additional $21,000 was added to principal by the noteholder, interest rate of 0%, matured December 2018 net of unamortized discount of $0 and $9,677 as of March 31, 2019 and June 30, 2018, respectively, of which $31,000 has been paid. The note is currently in default. | 250,000 | 250,323 |
$52,000 face value with an OID of $2,000, issued in August 2018, interest rate of 0%, matured November 2018 net of unamortized discount of $0 as of March 31, 2019. The note is currently in default. | 52,000 | - |
$80,000 face value with an OID of $5,000, issued in September 2018, interest rate of 0%, matured October 2018 net of unamortized discount of $0 as of March 31, 2019. The note is currently in default. | 80,000 | - |
$16,000 face value with an OID of $1,000, issued in October 2018, interest rate of 0%, matured November 2018 net of unamortized discount of $0 as of March 31, 2019, of which $16,000 has been paid. | - | - |
$160,000 face value, issued in November 2018, interest rate of 5% per month, matures February 2019 net of unamortized discount of $0 as of March 31, 2019. The note is currently in default. | 160,000 | - |
$26,000 face value with an OID of $1,000, issued in March 2019, interest rate of 8% per month, matures April 2019 net of unamortized discount of $484 as of March 31, 2019. The note is currently in default. | 25,516 | - |
Total note payable – non-related parties | 1,027,516 | 642,910 |
Less current portion | 1,027,516 | 642,910 |
Notes payable – non-related parties, long-term | $- | $- |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
Shares | Liquidation | Shares | Liquidation | |||
Allocated | Outstanding | Preference | Allocated | Outstanding | Preference | |
Series A Convertible Preferred | 100,000 | 15,500 | $- | 100,000 | 15,500 | $- |
Series A-1 Convertible Preferred | 3,000,000 | 2,585,000 | 3,581,964 | 3,000,000 | 2,585,000 | 3,663,824 |
Series B Convertible Preferred | 200,000 | 3,500 | 35,000 | 200,000 | 3,500 | 35,000 |
Series C Convertible Preferred | 1,000,000 | 13,404 | - | 1,000,000 | 13,404 | - |
Series D Convertible Preferred | 375,000 | 130,000 | - | 375,000 | 130,000 | - |
Series E Convertible Preferred | 1,000,000 | 275,000 | - | 1,000,000 | 275,000 | - |
Series H Preferred | 5 | 2 | - | |||
Series P Convertible Preferred | 600,000 | 86,640 | - | 600,000 | 86,640 | - |
Series S Convertible Preferred | 50,000 | - | 50,000 | - | ||
Total Preferred Stock | 6,325,000 | 3,109,044 | $3,616,964 | 6,325,005 | 3,109,046 | $3,698,824 |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
AFTERMASTER, INC. |
Notes to Consolidated Financial Statements |
March 31, 2019 (Unaudited) |
Date Issued | Number of Options | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Expiration Date (yrs) | Value if Exercised |
Balance June 30, 2018 | 525,000 | $0.05 | $0.16 | 3.81 | $93,750 |
Granted | - | - | - | - | - |
Exercised | - | - | - | - | - |
Cancelled/Expired | (25,000) | - | - | - | (3,750) |
Outstanding as of September 30, 2018 | 500,000 | $0.05 | $0.17 | 3.75 | $90,000 |
Date Issued | Number of Options | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Expiration Date (yrs) | Value if Exercised |
Balance June 30, 2018 | 525,000 | $0.05 | $0.16 | 3.81 | $93,750 |
Granted | - | - | - | - | - |
Exercised | - | - | - | - | - |
Cancelled/Expired | (25,000) | - | - | - | (3,750) |
Outstanding as of March 31, 2019 | 500,000 | $0.05 | $0.17 | 3.25 | $90,000 |
September 30, 2018 | June 30, 2018 | March 31, 2019 | June 30, 2018 | |||||
Expected volatility | 125-211% | 105-304% | 125-322% | 105-304% | ||||
Expected dividends | 0% | 0% | 0% | 0% | ||||
Expected term | 0-5 Years | 0-5 Years | 0-5 Years | 0-5 Years | ||||
Risk-free interest rate | 2.00-2.91% | 0.96-2.73% | 2.00-3.05% | 0.96-2.73% |
Number of Warrants | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Expiration Date (yrs) | Value if Exercised | |
Balance June 30, 2018 | 41,759,597 | $0.32 | $0.40 | 3.01 | $13,291,022 |
Granted | 6,593,750 | 0.07 | 0.04 | 4.09 | 443,750 |
Exercised | - | - | - | - | - |
Cancelled/Expired | (3,628,068) | 0.33 | - | - | (1,214,034) |
Outstanding as of September 30, 2018 | 44,725,279 | $0.28 | $0.33 | 3.17 | $12,520,738 |
Number of Warrants | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Expiration Date (yrs) | Value if Exercised | |
Balance June 30, 2018 | 41,759,597 | $0.32 | $0.40 | 3.01 | $13,291,022 |
Granted | 10,422,782 | 0.07 | 0.04 | 4.37 | 85,581 |
Exercised | - | - | - | - | - |
Cancelled/Expired | (8,284,470) | 0.52 | - | - | (3,816,254) |
Outstanding as of March 31, 2019 | 43,897,909 | $0.22 | $0.34 | 3.13 | $9,560,349 |
Level 1 | Level 2 | Level 3 | Total | |
Fair value of derivatives | $- | $- | $2,864,661 | $2,864,661 |
Level 1 | Level 2 | Level 3 | Total | |
Fair value of derivatives | $- | $- | $7,046,737 | $7,046,737 |
Series H Preferred Stock | $- | $198,116 | $- | $198,116 |
Level 1 | Level 2 | Level 3 | Total | |
Fair value of derivatives | $- | $- | $2,815,520 | $2,815,520 |
Year | Lease Payments | Lease Payments |
2019 | 110,833 | $31,649 |
2020 | 131,475 | 126,596 |
2021 | 24,077 | 105,496 |
2022 | - | - |
2023 | - | - |
Total | $266,385 | $263,741 |
● | the sufficiency of existing capital resources and our ability to raise additional capital to fund cash requirements for future operations; |
● | uncertainties involved in growth and growth rate of our operations, business, revenues, operating margins, costs, expenses and acceptance of any products or services; |
● | uncertainties involved in growth and growth rate of our operations, business, revenues, operating margins, costs, expenses and acceptance of any products or services; |
● | volatility of the stock market, particularly within the technology sector; |
● | our dilution related to all equity grants to employees and non-employees; |
● | that we will continue to make significant capital expenditure investments; |
● | that we will continue to make investments and acquisitions; |
● | the sufficiency of our existing cash and cash generated from operations; |
● | the increase of sales and marketing and general and administrative expenses in the future; |
● | the growth in advertising revenues from our websites and studios will be achievable and sustainable; |
● | that seasonal fluctuations in Internet usage and traditional advertising seasonality are likely to affect our business; and |
● | general economic conditions. |
Revenues | ||
For the Three Months Ended | ||
March 31, | ||
2019 | 2018 | |
AfterMaster Revenues | $185,042 | $132,291 |
Product Revenues | 21,590 | 308,905 |
Total Revenues | $206,632 | $441,196 |
Revenues | ||
For the Nine Months Ended | ||
March 31, | ||
2019 | 2018 | |
AfterMaster Revenues | $457,414 | $371,910 |
Product Revenues | 691,804 | 529,748 |
Total Revenues | $1,149,218 | $901,658 |
RESULTS OF OPERATIONS | ||
Revenues | ||
For the Three Months Ended | ||
September 30, | ||
2018 | 2017 | |
Aftermaster Revenues | $145,413 | $120,715 |
Product Revenues | 389,109 | 94,681 |
Total Revenues | $534,522 | $215,396 |
Cost of Revenues | ||||
For the Years Ended | For the Three Months Ended | |||
March 31, | March 31, | |||
2018 | 2017 | 2019 | 2018 | |
Cost of Revenues (excluding depreciation and amortization) | $417,757 | $156,328 | $137,958 | $365,407 |
Cost of Revenues | ||
For the Nine Months Ended | ||
March 31, | ||
2019 | 2018 | |
Cost of Revenues (excluding depreciation and amortization) | $ 1,016,911 | $876,747 |
Other Operating Expenses | ||||
For the Three Months Ended | For the Three Months Ended | |||
September 30, | March 31, | |||
2018 | 2017 | 2019 | 2018 | |
Depreciation and Amortization Expense | $23,467 | $38,969 | $22,792 | $41,800 |
Research and Development | 2,600 | 2,194 | - | 8,793 |
Advertising and Promotion Expense | 54,369 | 2,016 | 10,252 | 28,939 |
Legal and Professional Expense | 11,030 | 14,190 | 17,736 | 28,915 |
Non-Cash Consulting Expense | 65,116 | 76,438 | 406,661 | 75,914 |
General and Administrative Expenses | 849,187 | 786,990 | 625,452 | 588,816 |
Total | $1,005,769 | $920,797 | $1,082,893 | $773,177 |
Other Operating Expenses | ||
For the Nine Months Ended | ||
March 31, | ||
2019 | 2018 | |
Depreciation and Amortization Expense | $69,687 | $125,307 |
Research and Development | 5,623 | 10,987 |
Advertising and Promotion Expense | 76,820 | 47,604 |
Legal and Professional Expense | 32,546 | 66,105 |
Non-Cash Consulting Expense | 710,508 | 167,949 |
General and Administrative Expenses | 2,260,986 | 2,193,848 |
Total | $3,156,170 | $2,611,800 |
Other Expense | ||||
Other Income (Expense) | ||||
For the Three Months Ended | For the Three Months Ended | |||
September 30, | March 31, | |||
2018 | 2017 | 2019 | 2018 | |
Interest Expense | $(806,650) | $(855,451) | $(686,510) | $(734,221) |
Derivative Expense | (1,043,090) | (137,466) | (239,733) | (1,328,142) |
Change in Fair Value of Derivative | 612,212 | 202,820 | (3,736,445) | 169,584 |
Gain on Available for Sale Securities | - | 240,000 | ||
Gain on Extinguishment of Debt | - | 90,042 | - | 4,681,469 |
Total | $(1,237,528) | $(700,055) | $(4,662,688) | $3,028,690 |
Other Income (Expense) | ||
For the Nine Months Ended | ||
March 31, | ||
2019 | 2018 | |
Interest Expense | $(2,225,076) | $(2,199,709) |
Derivative Expense | (1,595,079) | (1,668,421) |
Change in Fair Value of Derivative | (3,141,708) | 1,278,948 |
Loss on Available for Sale Securities | - | 240,000 |
Gain on Extinguishment of Debt | - | 4,771,511 |
Total | $(6,967,863) | $2,422,329 |
Net Loss | ||
For the Three Months Ended | ||
September 30, | ||
2018 | 2017 | |
Net Loss | $(2,126,532) | $(1,561,784) |
Net Income (Loss) | ||
For the Three Months Ended | ||
March 31, | ||
2019 | 2018 | |
Net Income (Loss) | $(5,676,907) | $2,331,302 |
Net Loss | ||
For the Nine Months Ended | ||
March 31, | ||
2019 | 2018 | |
Net Loss | $ (9,985,726) | $(164,560) |
NO. | TITLE |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase |
101.LAB* | XBRL Taxonomy Extension Label Linkbase |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase |
AFTERMASTER, INC. | ||
Date: | By: | /s/ Larry Ryckman |
Larry Ryckman, | ||
Title: President and Chief Executive Officer |
AFTERMASTER, INC. | ||
Date: | By: | /s/ Larry Ryckman |
Larry Ryckman, | ||
Title: Director, President, Chief Executive Officer |
AFTERMASTER, INC. | ||
Date: | By: | /s/ Mirella Chavez |
Mirella Chavez | ||
Title: Chief Financial Officer, Secretary |