Nevada | 2810 | 45-4030261 |
(State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer |
incorporation or organization) | Classification Code Number) | Identification Number) |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer (Do not check if a smaller reporting company) | o | Smaller reporting company | x |
CALCULATION OF REGISTRATION FEE | CALCULATION OF REGISTRATION FEE | CALCULATION OF REGISTRATION FEE | ||||||||||||||||||||||||||||||
Title of each class of securities to be registered | Amount to be registered (1) | Proposed maximum offering price per share (2) | Proposed maximum aggregate offering price (2) | Amount of registration fee | Amount to be registered (1) | Proposed maximum offering price per share (2) | Proposed maximum aggregate offering price (2) | Amount of registration fee | ||||||||||||||||||||||||
Common Stock, par value $0.0001 per share | 53,272,150(3) | $ | 0.65 | $ | 34,626,898 | $ | 4,459.94 | 36,344,824 (3) | $ | 0. 73 | $ | 26,531,721.52 | $ | 3,417.29 |
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Indexes to Financial Statements | |
Common stock outstanding prior to the offering | ||
Common stock offered by selling shareholders | ||
Common stock to be outstanding after the offering | ||
Use of proceeds | We will not receive any proceeds from the sale of common stock by the selling stockholders participating in this offering. The selling stockholders will receive all of the net proceeds from the sale of their respective shares of common stock in this offering. | |
OTCQB Symbol | GLYE | |
Risk Factors | See “Risk Factors” on page 5 of this prospectus for a discussion of factors you should carefully consider before deciding to invest in our common stock. | |
n | remain informed of and maintain compliance with federal, state, local, and foreign government regulations; |
n | acquire a sufficient number of customers and generate adequate revenue to achieve profitability; and |
n | overcome resistance to change by customers |
n | the demand for, and prices of, our products, licenses, or services are reduced as a result of actions by our competitors or otherwise; or |
n | our financial counterparts or other contractual counterparties are unable to, or do not, meet their contractual commitments to us. |
n | that a broker or dealer approve a person's account for transactions in penny stocks; and |
n | the broker or dealer receives from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased. |
n | obtain financial information and investment experience objectives of the person; and |
n | make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. |
n | sets forth the basis on which the broker or dealer made the suitability determination; and |
n | that the broker or dealer received a signed, written agreement from the investor prior to the transaction. |
· | any projections of earnings, revenue or other financial items; |
· | any statements of the plans, strategies and objectives of management for future operations; |
· | any statements concerning proposed new products, services or developments; |
· | any statements regarding future economic conditions or performance; |
· | any statements or belief; and |
· | any statements of assumptions underlying any of the foregoing. |
High ($) | Low ($) | |||||||
2012 | ||||||||
1st Quarter | $ | 1.50 | $ | 1.01 | ||||
2nd Quarter | $ | 2.99 | $ | 1.26 | ||||
3rd Quarter | $ | 2.30 | $ | 1.76 | ||||
4th Quarter | $ | 1.90 | $ | 1.20 |
2013 | ||||||||
1st Quarter | $ | 1.99 | $ | 0.99 | ||||
2nd Quarter | $ | 1.39 | $ | 0.90 | ||||
3rd Quarter | $ | 1.35 | $ | 0.90 | ||||
4th Quarter | $ | 1.40 | $ | 1.03 |
2014 | ||||||||||||||||
1st Quarter | $ | 1.22 | $ | 0.77 | $ | 1.22 | $ | 0.77 | ||||||||
2nd Quarter | $ | 1.06 | $ | 0.57 |
For the Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
Net cash (used in) operating activities | $ | (1,704,027 | ) | $ | (690,219 | ) | ||
Net cash (used in) investing activities | $ | (1,627,987 | ) | $ | (83,988 | ) | ||
Net cash (used in) provided by financing activities | $ | (70,547 | ) | $ | 1,660,997 | |||
Net increase (decrease) in cash and cash equivalents | $ | (3,402,561 | ) | $ | 886,790 | |||
Cash - beginning of period | $ | 4,393,299 | $ | 1,153,941 | ||||
Cash - end of period | $ | 990,738 | $ | 2,040,731 |
For the Six Months Ended | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
Net cash (used in) operating activities | $ | (1,653,954 | ) | $ | (1,122,660 | ) | ||
Net cash (used in) investing activities | $ | (2,409,313 | ) | $ | (448,598 | ) | ||
Net cash provided by financing activities | $ | 1,667,650 | $ | 1,618,914 | ||||
Net increase (decrease) in cash and cash equivalents | $ | (2,395,617 | ) | $ | 47,656 | |||
Cash - beginning of period | $ | 4,393,299 | $ | 1,153,941 | ||||
Cash - end of period | $ | 1,997,682 | $ | 1,201,597 |
2013 | ||||
Weighted average of fair value for options granted | $ | 0.44 | ||
Weighted average assumptions used: | ||||
Expected dividend yield | 0.0 | % | ||
Expected volatility | 40 | % | ||
Risk-free interest rate | 0.16 to 0.70% | |||
Expected life (in years) | 3 to 5 |
· | expected term is determined under the plain vanilla method using an average of the contractual term and vesting period of the award as appropriate statistical data required to properly estimate the expected term was not available; |
· | expected volatility is measured using the historical daily changes in the market price of similar |
· | risk-free interest rate is used to approximate the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and |
· | forfeitures are based on the history of cancellations of options granted by us and our analysis of potential future forfeitures. |
● | Minnesota Processing Center relocated from a 2,000 square foot multi-tenant space to a |
● | Indiana Processing Center has completed initial upgrades, including improved filtration systems, advanced pre-treatment equipment, increased storage capacity, and an additional delivery truck. Processing capacity increased by approximately 150% in 2013. |
● | Florida Processing Center has completed initial upgrades, including an improved vacuum distillation system, advanced post treatment equipment, and additional pumps and piping. Processing capacity has increased by 10,000 gallons. An additional collection truck was added to the business, allowing for expansion of our customer base. Secondary containment increased to 110% of state, local and U.S. required compliancy codes. Additional upgrades are planned to further expand production capabilities. |
● | New Jersey Processing Center has completed initial upgrades of the proprietary GlyEco |
● | South Carolina Processing Center has completed initial upgrades, including the installation of a tri-flow reflux nozzle, advanced pre-treatment equipment, advanced post-treatment equipment, and expanded tank capacity of 43,500 gallons. Production capability increased over 25% in 2013. These technology and equipment upgrades enable the South Carolina Processing Center to process waste polyester by-product into high quality recycled material in commercial quantities. Customer base increased approximately 265% during 2013. |
● | South Dakota Processing Center has completed initial upgrades, including a steam cooler, pumps, piping, and additional equipment. Processing capacity has increased by 14,000 gallons. Additional upgrades are in process and due to be completed in 2014. Customer base increased approximately 8.75% during 2013. |
● | Maryland Processing Center has completed initial upgrades, installing additional equipment, pumps and piping. Production capacity has increased by approximately 26,000 gallons. Secondary containment increased to 110% of state, local and U.S. required compliancy codes. |
(1) | Pre-Treatment - As waste glycol arrives, a sample is tested to determine the types and levels of impurities to be removed. Pre-treatment is custom scaled to each batch of material and consists of a unique chemical precipitation that removes sulfates and esters. Testing and pretreatment maximize efficiency and save overall processing costs, allowing cleaner material to be fed into primary treatment. |
(2) | Primary Treatment – Our primary treatment uses distillation. |
(3) | Post Treatment - Our proprietary post-treatment systems remove any remaining impurities in an innovative and proprietary application of ion exchange resins, removing the last traces of chlorides, sulfates, esters, glycolates, and formates. ASTM has established maximum allowable concentrations of chlorides and sulfates for automotive antifreeze grade recycled materials. Standards for maximum allowable levels of esters, glycolates, and formates are in development. We believe our GlyEco Technology™ will remove contaminants to meet future standards. Finally, the materials that we recycle pass through our GlyEco Quality Assurance Program, which includes in-house and independent lab purity testing. After successfully completing this testing, the recycled materials will be considered GlyEco Certified® recycled glycol and will be staged for delivery to our customers. |
1. | Automotive – Glycols are used as antifreeze in vehicles and other equipment with a combustion engine. |
2. | HVAC - Glycols are in the heat transfer fluids used to warm and cool buildings. |
3. | Textiles – Glycols are used as a raw material in the manufacturing of polyester fiber and plastics (e.g. water bottles). |
4. | Airline – Glycols are used in aircraft deicing fluid to avoid accumulation of moisture on aircraft wings. |
5. | Medical – Glycols are used for equipment sterilization in the medical industry. |
Name | Age | Position | Director Since | ||||
John Lorenz | Chief Executive Officer, President and Chairman | November 28, 2011 | |||||
Michael Jaap | 58 | Director | November 28, 2011 | ||||
Richard Q. Opler | 59 | Director | July 29, 2013 | ||||
Keri Smith | 49 | Director | July 29, 2013 | ||||
Dwight Mamanteo | 44 | Director | January 15, 2014 | ||||
Alicia Williams Young | Chief Financial Officer, Secretary, and VP of Internal Operations | - | |||||
Richard Geib | 67 | Chief Technical Officer | - | ||||
Todd Smith | 52 | Chief Operating Officer | - | ||||
Janet Carnell Lorenz | 52 | Chief Business Development Officer | - |
● | monitors the integrity of our financial statements, our compliance with legal and regulatory requirements, our independent registered public accounting firm’s qualifications and independence, and the performance of our internal audit function and independent registered public accounting firm; | |
● | assumes direct responsibility for the appointment, compensation, retention and oversight of the work of any independent registered public accounting firm engaged for the purpose of performing any audit, review or attest services and for dealing directly with any such accounting firm; | |
● | provides a medium for consideration of matters relating to any audit issues; and | |
● | prepares the audit committee report that the rules require be included in our filings with the SEC. |
Name & Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($)(15) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Non- Qualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) | ||||||||||||||||||||||||||
John Lorenz, President and CEO (PEO) | 2013 | $ | 175,000 | $ | 30,000 | $ | - | $ | 108,079 | (1) | $ | - | $ | - | $ | 2,100 | (8) | $ | 315,179 | ||||||||||||||||
2012 | $ | 137,500 | - | - | 18,068 | (1) | - | - | $ | 13,000 | (9) | $ | 168,568 | ||||||||||||||||||||||
Kevin Conner, CFO (PFO) | 2013 | - | - | - | 1,004 | (2) | - | - | $ | 31,775 | (10) | $ | 32,779 | ||||||||||||||||||||||
2012 | - | - | - | 2,008 | (2) | - | 72,245 | (10) | 74,253 | ||||||||||||||||||||||||||
Alicia Williams Young, CFO | 2013 | 100,500 | 17,500 | - | 73,157 | (3) | - | - | 191,157 | ||||||||||||||||||||||||||
2012 | 58,500 | 1,500 | - | 14,253 | (3) | - | - | 19,500 | (11) | 93,753 | |||||||||||||||||||||||||
Richard Geib, Chief Technical Officer | 2013 | - | - | 17,210 | (4) | 22,010 | (5) | - | - | - | 39,220 | ||||||||||||||||||||||||
2012 | - | - | 4,940 | (4) | - | - | - | - | 4,940 | ||||||||||||||||||||||||||
Janet Carnell Lorenz, Chief Business Development Officer | 2013 | - | 5,000 | - | 73,056 | (6) | - | - | 108,000 | (12) | 186,056 | ||||||||||||||||||||||||
2012 | - | - | 14,053 | (6) | - | - | 77,000 | (13) | 91,053 | ||||||||||||||||||||||||||
Todd Smith, Chief Operating Officer | 2013 | 120,000 | 5,000 | - | 74,562 | (7) | - | - | 199,562 | ||||||||||||||||||||||||||
2012 | 69,000 | - | 17,064 | (7) | - | - | 21,000 | (14) | 107,064 |
Name & Principal Position | Year | Salary ($) | Bonus ($) | Warrant Awards ($) | Option Awards ($)(15) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Non- Qualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) | ||||||||||||||||||||||||||||
John Lorenz, President and CEO (PEO) | 2013 | $ | 175,000 | $ | 30,000 | $ | - | $ | 198,090 | (1) | $ | - | $ | - | $ | 2,100 | (8) | $ | 405,190 | ||||||||||||||||||
2012 | 137,500 | - | - | 36,135 | (1) | - | - | 13,000 | (9) | 186,635 | |||||||||||||||||||||||||||
Kevin Conner, CFO (PFO) | 2013 | - | - | - | - | - | 31,775 | (10) | 31,775 | ||||||||||||||||||||||||||||
2012 | - | - | - | 4,015 | (2) | - | 72,245 | (10) | 76,260 | ||||||||||||||||||||||||||||
Alicia Williams Young, CFO | 2013 | 100,500 | 17,500 | - | 132,060 | (3) | - | - | 250,060 | ||||||||||||||||||||||||||||
2012 | 58,500 | 1,500 | - | 28,507 | (3) | - | - | 19,500 | (11) | 108,007 | |||||||||||||||||||||||||||
Richard Geib, Chief Technical Officer | 2013 | - | - | 58,000 | (4) | 44,020 | (5) | - | - | - | 102020 | ||||||||||||||||||||||||||
2012 | - | - | 4,940 | (4) | - | - | - | - | 4,940 | ||||||||||||||||||||||||||||
Janet Carnell Lorenz, Chief Business Development Officer | 2013 | - | 5,000 | - | 132,060 | (6) | - | - | 108,000 | (12) | 245,060 | ||||||||||||||||||||||||||
2012 | - | - | 28,105 | (6) | - | - | 77,000 | (13) | 105,105 | ||||||||||||||||||||||||||||
Todd Smith, Chief Operating Officer | 2013 | 120,000 | 5,000 | - | 132,060 | (7) | - | - | 257,060 | ||||||||||||||||||||||||||||
2012 | 69,000 | - | 34,128 | (7) | - | - | 21,000 | (14) | 124,128 |
(1) | The estimated value of the options issued to Mr. John Lorenz is based on the Black-Scholes method. See the disclosure below under “Option/SAR Grants in Fiscal |
(2) | The estimated value of the options issued to Mr. Kevin Conner is based on the Black-Scholes method. See the disclosure below under “Option/SAR Grants in Fiscal |
(3) | The estimated value of options issued to Ms. Williams Young is based on the Black-Scholes method. See disclosure below under “Option/SAR Grants in the Fiscal |
(4) | The estimated value of the warrants issued to Mr. Geib is based on the Black-Scholes method. See disclosure below under “Options/SAR Grants in the Fiscal |
(5) | The estimated value of the options issued to Mr. Geib is based on the Black-Scholes method. See disclosure below under “Options/SAR Grants in the Fiscal |
(6) | The estimated value of the options issued to Ms. Carnell Lorenz is based on the Black-Scholes method. See disclosure below under “Options/SAR Grants in the Fiscal Year Ended December 31, 2012 and 2013.” |
(7) | The estimated value of the options issued to Mr. Smith is based on the Black-Scholes method. See disclosure below under “Options/SAR Grants in the Fiscal |
(8) | Consisted $2,100 paid to Mr. Lorenz as compensation for being a Director. |
(9) | Consisted of consulting service fees paid to Mr. Lorenz by the Company. Mr. Lorenz provided management consulting services to the Company through Barcid Investment Group (Barcid), a corporation solely owned by Mr. Lorenz. Neither Barcid nor Mr. Lorenz has a formal written consulting agreement with the Company. Mr. Lorenz, by and through Barcid, was paid on a monthly basis and earned $12,500 for consulting services rendered to the Company in January of 2012. Mr. Lorenz became an employee of the Company in February of 2012. In addition, Mr. Lorenz was paid $500 for compensation for being a Director. |
(10) | Consisted of consulting service fees paid to Mr. Conner by the Company. Mr. Conner provided accounting and management consulting services to the Company through Conner LLP. Conner LLP has a formal written consulting agreement with the Company, by which it is paid on a monthly basis. |
(11) | Consisted of consulting service fees paid to Ms. Williams Young by the Company. Ms. Williams Young provided accounting and business management consulting services to the Company through AJile Concepts LLC, a company owned by Ms. Williams Young and her husband. Neither Ms. Williams Young nor AJile Concepts has a formal written consulting agreement with the Company. Ms. Williams Young, by and through AJile Concepts, was paid on a monthly basis and earned $6,500 for consulting services rendered to the Company from January 2012 to March 2012. Ms. Williams Young became an employee of the Company in |
(12) | Consisted of consulting service fees paid to Ms. Carnell Lorenz by the Company. Ms. Carnell Lorenz provided marketing consulting services to the Company through Market Tactics, Inc., a corporation solely owned by Ms. Carnell Lorenz. Neither Ms. Carnell Lorenz nor Market Tactics has a formal written consulting agreement with the Company. Ms. Carnell Lorenz, by and through Market Tactics, was paid on a monthly basis and earned $7,500 from January 2013 to March 2013 and $9,500 from April 2013 to December 2013. |
(13) | Consisted of consulting service fees paid to Ms. Carnell Lorenz by the Company. Ms. Carnell Lorenz provided marketing consulting services to the Company through CyberSecurity, Inc., a corporation solely owned by Ms. Carnell Lorenz. Neither Ms. Carnell Lorenz nor CyberSecurity has a formal written consulting agreement with the Company. Ms. Carnell Lorenz, by and through CyberSecurity, was paid on a monthly basis and earned $5,500 in January 2013 and $6,500 from February 2013 to December 2013. |
(14) | Consisted of consulting service fees paid to Mr. Smith by the Company. Mr. Smith provided operations consulting services to the Company through Ocean State Absorbents, a company owned solely by Mr. Smith. Neither Mr. Smith nor Ocean State Absorbents has a formal written consulting agreement with the Company. Mr. Smith, by and through Ocean State Absorbents, was paid on a monthly basis and earned $7,000 for consulting services rendered to the Company from January 2012 to March 2012. Mr. Smith became an employee of the Company in April |
(15) | These amounts represent full grant date fair value of these awards, in accordance with the Financial Accounting Standard Board’s (“FASB”) ASC Topic 718. Assumptions used in the calculation of dollar amounts of these awards are included in Note 11 of our audited financial statements for the fiscal year ended December 31, 2013. |
Mr. Lorenz was granted on September 20, 2013, 450,000 shares of Common Stock issuable upon the exercise of options at $1.00 per share until September 20, 2023. 225,000 of the options granted vested immediately upon |
Ms. Williams Young was granted |
Ms. |
Mr. Smith was granted on September 20, 2013, 300,000 shares of Common Stock issuable upon the exercise of options at $1.00 per share until September 20, 2023. |
Mr. Lorenz was granted on December 5, 2012, 450,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022. Of these, 225,000 vested immediately upon |
Mr. Conner was granted on December 5, 2012, 50,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022. Of these, 25,000 vested immediately upon |
Ms. Williams Young was granted on December 5, 2012, 355,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022. Of these, 177,500 vested immediately upon Mr. Geib was granted pursuant to his consulting agreement on May 3, 2012, 100,000 shares of Common Stock issuable upon the exercise of warrants at $0.50 per share until May 3, 2017. The aggregate grant date estimated fair value of these warrants, determined by the Black-Scholes method, was $4,940. |
Ms. Carnell Lorenz was granted on December 5, 2012, 350,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022. Of these, 175,000 vested immediately upon |
Mr. Smith was granted on December 5, 2012, 425,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022. Of these, 212,500 vested immediately upon |
Name | Number of Securities underlying Unexercised Options (#) Exercisable | Number of Securities underlying Unexercised Unearned Options (#) Unexercisable | Option Exercise Price ($/Sh) | Option Expiration Date | ||||||||||
John Lorenz | 119,172 | - | $ | 1.00 | 6/27/2021 | |||||||||
318,356 | - | $ | 1.00 | 6/27/2021 | ||||||||||
488,750 | 86,250 | $ | 0.50 | 10/25/2021 | (1) | |||||||||
337,500 | 112,500 | $ | 0.50 | 12/5/2022 | (2) | |||||||||
225,000 | 225,000 | $ | 1.00 | 9/20/2023 | (3) | |||||||||
Kevin Conner | 63,750 | 11,250 | $ | 0.50 | 10/25/2021 | (1) | ||||||||
37,500 | 12,500 | $ | 0.50 | 12/5/2022 | (2) | |||||||||
Alicia Williams Young | 15,000 | - | $ | 1.00 | 6/27/2021 | |||||||||
212,500 | 37,500 | $ | 0.50 | 10/25/2021 | (1) | |||||||||
266,250 | 88,750 | $ | 0.50 | 12/5/2022 | (2) | |||||||||
150,000 | 150,000 | $ | 1.00 | 9/20/2023 | (3) | |||||||||
Richard Geib | 60,000 | - | $ | 1.00 | 6/27/2021 | |||||||||
127,500 | 22,500 | $ | 0.50 | 10/25/2021 | (1) | |||||||||
50,000 | 50,000 | $ | 1.00 | 9/20/2023 | (3) | |||||||||
Todd Smith | 255,000 | 45,000 | $ | 0.50 | 10/25/2021 | (1) | ||||||||
318,750 | 106,250 | $ | 0.50 | 12/5/2022 | (2) | |||||||||
150,000 | 150,000 | $ | 1.00 | 9/20/2023 | (3) | |||||||||
Janet Carnell Lorenz | 80,000 | - | $ | 1.00 | 6/27/2021 | |||||||||
180,000 | - | $ | 1.00 | 6/27/2021 | ||||||||||
255,000 | 45,000 | $ | 0.50 | 10/25/2021 | (1) | |||||||||
262,500 | 87,500 | $ | 0.50 | 12/5/2022 | (2) | |||||||||
150,000 | 150,000 | $ | 1.00 | 9/20/2023 | (3) |
(1) | The unearned options vest on October 25, 2014 |
(2) | The unearned options vest on December 5, 2014 |
(3) | The unearned options vest 50% on September 20, 2014 and 50% on September 20, 2015. |
Director | Fees Earned or Paid in Cash | All Other Compensation | Stock Awards | Total | Fees Earned or Paid in Cash | All Other Compensation | Stock Awards | Total | |||||||||||||||||||||||
John Lorenz | $ | 2,100 | (1) | $ | 205,000 | (1) | $ | 108,079 | (1) | $ | 315,179 | $ | 2,100 | (1) | $ | 205,000 | (1) | $ | 198,090 | (1) | $ | 405,190 | |||||||||
James Flach | $ | 1,000 | (2) | $ | $ | - | $ | 1,000 | $ | 1,000 | (2) | $ | $ | - | $ | 1,000 | |||||||||||||||
Michael Jaap | $ | 2,100 | (3) | $ | 2,000 | (3) | $ | 25,021 | (3) | $ | 29,121 | $ | 2,100 | (3) | $ | 2,000 | (3) | $ | 44,020 | (3) | $ | 48,120 | |||||||||
William Miller | $ | 1,000 | (4) | $ | 71,000 | (4) | $ | - | $ | 73,000 | $ | 1,000 | (4) | $ | 72 ,000 | (4) | $ | - | $ | 73,000 | |||||||||||
Joseph Ioia | $ | 2,100 | (5) | $ | 74,069 | (5) | $ | 22,010 | (5) | $ | 98,179 | $ | 2,100 | (5) | $ | 74,069 | (5) | $ | 44,020 | (5) | $ | 120,189 | |||||||||
Rick Opler | $ | 600 | (6) | $ | $ | 11,050 | (6) | $ | 11,650 | $ | 600 | (6) | $ | $ | 22,010 | (6) | $ | 22,610 | |||||||||||||
Keri Smith | $ | 600 | (7) | $ | $ | 11,050 | (7) | $ | 11,650 | $ | 600 | (7) | $ | $ | 22,010 | (7) | $ | 22,610 |
(1) | Mr. Lorenz was paid $205,000 in salaries and bonuses for his position as CEO, in addition to the $2,100 he was paid for sitting on the Board of Directors. |
(2) | Mr. Flach was paid $1,000 as compensation for sitting on the Board of Directors. Mr. Flach served on the Board of Directors from November 28, 2011, to July 29, 2013. |
(3) | Mr. Jaap was paid $2,000 in consulting services for his work on a special project, in addition to the $2,100 he was paid for sitting on the Board of Directors. |
(4) | Mr. Miller was paid $72,000 in consulting services for his work on a special project, in addition to the $1,000 he was paid for sitting on the Board of Directors. Mr. Miller served on the Board of Directors from November 28, 2011, to July 29, 2013. |
(5) | Mr. Ioia, who until August 22, 2014, was a member of our Board of Directors, was paid $74,069 pursuant to his consulting agreement, in addition to his compensation of $2,100 for sitting on the Board of Directors. On September 23, 2013, Mr. Ioia was granted 100,000 shares of Common Stock issuable upon the exercise of options at $1.00 per share until September 20, 2023. |
(6) | Mr. Opler was paid $600 as compensation for sitting on the Board of Directors. On September 20, 2013, Mr. Opler was granted 50,000 shares of Common Stock issuable upon the exercise of options at $1.00 per share until September 20, 2023. |
(7) | Ms. Smith was paid $600 as compensation for sitting on the Board of Directors. On September 20, 2013, Ms. Smith was granted 50,000 shares of Common Stock issuable upon the exercise of options at $1.00 per share until September 20, 2023. |
Name and Address of Beneficial Owner (1) | Number of Shares Beneficially Owned | Percentage of Outstanding Common Stock (2) | ||||||
Executive Officers and Directors | ||||||||
John Lorenz --CEO, President, and Chairman of the Board of Directors | 5,943,730 | (3) | 10.91% | |||||
Alicia Williams Young --Chief Financial Officer, Secretary, and VP of Internal Operations | 843,790 | (4) | 1.60% | |||||
Richard Geib --Chief Technical Officer | 809,900 | (5) | 1.54% | |||||
Todd Smith --Chief Operating Officer | 1,469,752 | (6) | 2.79% | |||||
Janet Carnell Lorenz --Chief Business Development Officer | 5,943,730 | (7) | 10.91% | |||||
Michael Jaap --Director | 333,500 | (8) | * | |||||
Joseph A. Ioia --Director | 3,559,354 | (9) | 6.82% | |||||
Keri Smith --Director | 72,200 | (10) | * | |||||
Richard Q. Opler --Director | 179,700 | (11) | * |
Name and Address of Beneficial Owner (1) | Number of Shares Beneficially Owned | Percentage of Outstanding Common Stock (2) | ||||||
Executive Officers and Directors | ||||||||
John Lorenz --CEO, President, and Chairman of the Board of Directors | 6,152,751 | (3) | 10. 09 % | |||||
Alicia Williams Young --Chief Financial Officer, Secretary, and VP of Internal Operations | 940,311 | (4) | 1.60% | |||||
Richard Geib --Chief Technical Officer | 2,084 ,900 | (5) | 3.47 % | |||||
Todd Smith --Chief Operating Officer | 1, 544 ,752 | (6) | 2. 62 % | |||||
Janet Carnell Lorenz --Chief Business Development Officer | 6,152,751 | (7) | 10. 09 % | |||||
Michael Jaap --Director | 358 ,500 | (8) | * | |||||
Keri Smith --Director | 84,700 | ( 9 ) | * | |||||
Richard Q. Opler --Director | 192,200 | ( 10 ) | * |
Dwight Mamanteo --Director | 175,000 | ( 11 ) | * | |||||
Executive Officers and Directors as a group ( 9 persons) | 11,533,114 | (12) | 17.76 % | |||||
5% Stockholders | ||||||||
Leonid Frenkel 401 City Avenue, Suite 528 Bala Cynwyd, PA 19004 | 8, 753,656 | ( 13 ) | 13.94 % | |||||
Ralph M. Amato 2098 Cherry Creek Circle Summerlin, NV 89135 | 7, 321 ,600 | ( 14 ) | 12.42 % |
Wynnefield Capital Management, LLC 450 Seventh Avenue, Suite 509 New York, NY 10123 | 4,481, 339 | ( 15 ) | 7.70 % |
Everett Alexander --Director | 850,000 | (12) | 1.61% | |||||
Dwight Mamanteo --Director | 175,000 | (13) | * | |||||
Executive Officers and Directors as a group (11 persons) | 20,180,656 | 33.51% | ||||||
5% Stockholders | ||||||||
Leonid Frenkel 401 City Avenue, Suite 528 Bala Cynwyd, PA 19004 | 8,734,906 | (14) | 15.46% | |||||
Ralph M. Amato 2098 Cherry Creek Circle Summerlin, NV 89135 | 7,821,600 | (15) | 14.82% |
(1) | Unless otherwise indicated, the business address of each individual named is 4802 East Ray Road, Suite 23-408, Phoenix, Arizona 85044 |
(2) | Based on |
(3) | Includes an aggregate of (i) 437,528 shares of Common Stock issuable upon the exercise of options at $1.00 per share until June 27, 2021, (ii) 488,750 shares of Common Stock issuable upon the exercise of options at $0.50 per share until October 25, 2021, (iii) 337,500 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022, (iv) |
(4) | Includes (i) 15,000 shares of Common Stock issuable upon the exercise of |
(5) | Includes an aggregate of (i) 100,000 shares of Common Stock issuable upon the exercise of warrants at $0.50 per share until May 3, 2016, (ii) 40,000 shares of Common Stock issuable upon exercise of a warrant at $1.00 per share until June 27, 2021, (iii) 60,000 shares of Common Stock issuable upon exercise of options at $1.00 per share until June 27, 2021, (iv) 127,500 shares of Common Stock issuable upon the exercise of options at $0.50 per share until October 25, 2021, (v) |
(6) | Includes (i) 255,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until October 25, 2021, (ii) 318,750 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022, and (iii) |
(7) | Includes (i) 180,000 shares of Common Stock issuable upon the exercise of warrants at $1.00 per share until June 27, 2021 (ii) 255,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until October 25, 2021, (iii) 262,500 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022, |
(8) | Includes (i) 85,000 shares of Common Stock issuable upon the exercise of options at $0.50 per share until October 25, 2021, (ii) 112,500 shares of Common Stock issuable upon the exercise of options at $0.50 per share until December 5, 2022, (iii) |
(9) | Includes |
Includes (i) 20,000 shares of Common Stock issuable upon the exercise of warrants at $1.00 per share until June 27, 2021 (ii) 42,500 shares of Common Stock issuable upon the exercise of options at $0.50 per share until October 25, 2021, and (iii) |
Includes |
Includes 7,266,120 shares that all Directors and Executive Officers as a group have the right to acquire within 60 days of the date of the table set forth above. The 6,152,751 shares of Common Stock that are deemed to be beneficially owned by both John and Janet Lorenz, and that are included in the total beneficial ownership of Common Stock reported for each of them, are only counted once in the total number of shares of Common Stock reported as beneficially owned by the Executive Officers and Directors. |
( 13 ) | Consists of (i) 1,000,000 shares of Common Stock issuable upon the exercise of a warrant at a purchase price of $0.0001 per share until May 25, 2015, (ii) 940,000 shares of Common Stock issuable upon the exercise of a warrant at a purchase price of $1.00 until February 15, 2016, (iii) 2,605,513 shares of Common Stock issuable upon exercise of a warrant at a purchase price of $1.00 until March 14, 2017, and (iv) |
Includes (i) | |
Name | Common Shares Held | Shares Underlying Warrants | Total | Shares of Common Stock in Prospectus | Beneficial Ownership After Offering(1) | Percentage of Beneficial Ownership After Offering | ||||||||||||||||||
James Abel | 3,000 | 0 | 3,000 | 3,000 | 0 | 0 | ||||||||||||||||||
J. Abeles | 0 | 100,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Susan Adair | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
Jonathon Adams | 75 | 0 | 75 | 0 | 0 | 0 | ||||||||||||||||||
Alert Industries Defined Benefit Pension Plan | 100,000 | 0 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Asghar Ali | 20,000 | 0 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Byron A. Allen, Jr. | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Alpha Capital | 350,000 | 175,000 | 525,000 | 525,000 | 0 | 0 | ||||||||||||||||||
Alvin Fund | 200,000 | 900,000 | 1,100,000 | 1,100,000 | 0 | 0 | ||||||||||||||||||
Diana Amato | 21 | 0 | 21 | 21 | 0 | 0 | ||||||||||||||||||
Bradley C. Anderson | 31,000 | 31,000 | 62,000 | 62,000 | 0 | 0 |
Name | No . of Shares Beneficially Owned | No. of Shares Offered | Beneficial Ownership After Offering(1) | Percentage of Beneficial Ownership After Offering | ||||||||||||
James Abel * | 3,000 | 3,000 | 0 | 0 | ||||||||||||
Susan Adair + | 50 | 50 | 0 | 0 | ||||||||||||
Jonathon Adams + | 75 | 75 | 0 | 0 | ||||||||||||
Alert Industries Defined Benefit Pension Plan * (2) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
Asghar Ali (3) | 20,000 | 20,000 | 0 | 0 | ||||||||||||
Byron A. Allen, Jr. (4) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Alpha Capital (5) | 175,000 | 175 ,000 | 0 | 0 | ||||||||||||
Alvin Fund (6) | 1,100,000 | 1,100,000 | 0 | 0 | ||||||||||||
Diana Amato + | 21 | 21 | 0 | 0 | ||||||||||||
Bradley C. Anderson (7) | 31,000 | 31,000 | 0 | 0 |
Nicholas Aristomenis Aretakis * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
Sharad & Mellisa Arora * | 28,000 | 28,000 | 0 | 0 | ||||||||||||
Lee M. Arthurs (8) | 400,000 | 400,000 | 0 | 0 | ||||||||||||
ArthurSteinberg + | 295 | 295 | 0 | 0 | ||||||||||||
James Athas (9) | 50,000 | 50 ,000 | 0 | 0 | ||||||||||||
Bank of Commerce FBO Steven Demko IRA + (10) | 25 | 25 | 0 | 0 | ||||||||||||
Barcid Investment Group ( 11 ) | 156,000 | 156,000 | 0 | 0 | ||||||||||||
Bard Micro-Cap Value Fund (12) | 200,000 | 200,000 | 0 | 0 | ||||||||||||
Rick L. Barnet* | 1,600 | 1,600 | 0 | 0 | ||||||||||||
Victor Basanec + | 25 | 25 | 0 | 0 | ||||||||||||
Randy Beasley + | 25 | 25 | 0 | 0 | ||||||||||||
Norman R. Beaudoin & Lorrie A. Beaudoin, JTWROS * | 10,000 | 10,000 | 0 | 0 | ||||||||||||
Helmar and Kaarina Beregszaszy JTWROS * | 20,000 | 20,000 | 0 | 0 | ||||||||||||
George E. Berkner Living Trust * (13) | 20,000 | 20,000 | 0 | 0 | ||||||||||||
Todd Bernard (14) | 68,750 | 68,750 | 0 | 0 | ||||||||||||
Todd M. Bernard Family Trust (15) | 200,000 | 200,000 | 0 | 0 | ||||||||||||
Marshall G. Berol (16) | 7,500 | 7,500 | 0 | 0 | ||||||||||||
Cassandra W. Borchers * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
Bourquin Family Trust (17) | 50,000 | 50,000 | 0 | 0 |
Nicholas Aristomenis Aretakis | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Arntz Builders Profits Sharing Plan and Trust | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Sharad & Mellisa Arora | 28,000 | 28,000 | 28,000 | 0 | 0 | |||||||||||||||||||
Lee M. Arthurs | 400,000 | 400,000 | 800,000 | 800,000 | 0 | 0 | ||||||||||||||||||
ArthurSteinberg | 295 | 0 | 295 | 295 | 0 | 0 | ||||||||||||||||||
James Athas | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Bank of Commerce FBO Steven Demko IRA | 25 | 0 | 25 | 25 | 0 | 0 | ||||||||||||||||||
Barcid Investment Group (2) | 156,000 | 156,000 | 312,000 | 312,000 | 0 | 0 | ||||||||||||||||||
Bard Micro-Cap Value Fund | 200,000 | 200,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
Rick L. Barnett | 1,600 | 0 | 1,600 | 1,600 | 0 | 0 | ||||||||||||||||||
Victor Basanec | 25 | 0 | 25 | 25 | 0 | 0 | ||||||||||||||||||
Randy Beasley | 25 | 0 | 25 | 25 | 0 | 0 | ||||||||||||||||||
Norman R. Beaudoin & Lorrie A. Beaudoin, JTWROS | 10,000 | 0 | 10,000 | 10,000 | 0 | 0 | ||||||||||||||||||
Helmar and Kaarina Beregszaszy JTWROS | 20,000 | 0 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
George E. Berkner Living Trust | 20,000 | 0 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Todd Bernard | 68,750 | 0 | 68,750 | 68,750 | 0 | 0 | ||||||||||||||||||
Todd M. Bernard Family Trust | 200,000 | 0 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Marshall G. Berol | 0 | 7,500 | 7,500 | 7,500 | 0 | 0 | ||||||||||||||||||
Michael Bird | 0 | 35,500 | 35,500 | 35,500 | 0 | 0 | ||||||||||||||||||
Cassandra W. Borchers | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Bourquin Family Trust | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 |
Anne R. Brown (18) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Cambridge Capital Holdings, Ltd .+ (19) | 125 | 125 | 0 | 0 | ||||||||||||
Albert A. Cannella J* | 2,000 | 2,000 | 0 | 0 | ||||||||||||
Steven Capelli (20) | 150 ,000 | 150,000 | 0 | 0 | ||||||||||||
Thomas Carey + | 10 | 10 | 0 | 0 | ||||||||||||
Christa Verla Carnell * | 2,000 | 2,000 | 0 | 0 | ||||||||||||
Eric Matthew Carnell * | 2,000 | 2,000 | 0 | 0 | ||||||||||||
Janet Lynn Carnell * (21 ) | 2,726,668 | 2, 726 ,668 | 0 | 0 | ||||||||||||
Jeffrey Glenn Carnell * | 2,000 | 2,000 | 0 | 0 | ||||||||||||
Wilda Carnell * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
Greg & Nola Casserly Trust (22) | 1,400,000 | 1,400,000 | 0 | 0 | ||||||||||||
Cduno Consulting * (23) | 20,000 | 20,000 | 0 | 0 | ||||||||||||
Lewis Chin + | 250 | 250 | 0 | 0 | ||||||||||||
Vernon G. Chu + | 5 | 5 | 0 | 0 | ||||||||||||
Jonathan L. Clarke & Margaret A. Clarke * | 6,000 | 6,000 | 0 | 0 | ||||||||||||
Gordon Clements (24) | 53,500 | 53 ,500 | 0 | 0 | ||||||||||||
Christina D. Collier, Trustee, Adam Boyd Sellers Irrevocable Trust (25) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Kevin J. Conner ( 26 ) | 12,598 | 12,598 | 0 | 0 | ||||||||||||
Sandra R. Cooney * | 600 | 600 | 0 | 0 |
Brio Capital Master Fund | 0 | 150,000 | 150,000 | 150,000 | 0 | 0 | ||||||||||||||||||
Anne R. Brown | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Cambridge Capital Holdings, Ltd. | 125 | 0 | 125 | 125 | 0 | 0 | ||||||||||||||||||
Albert A. Cannella Jr. | 2,000 | 0 | 2,000 | 2,000 | 0 | 0 | ||||||||||||||||||
Steven Capelli | 100,000 | 50,000 | 150,000 | 150,000 | 0 | 0 | ||||||||||||||||||
Thomas Carey | 10 | 0 | 10 | 10 | 0 | 0 | ||||||||||||||||||
Christa Verla Carnell | 2,000 | 0 | 2,000 | 2,000 | 0 | 0 | ||||||||||||||||||
Eric Matthew Carnell | 2,000 | 0 | 2,000 | 2,000 | 0 | 0 | ||||||||||||||||||
Janet Lynn Carnell (3) | 2,726,668 | 180,000 | 2,906,668 | 2,906,668 | 0 | 0 | ||||||||||||||||||
Jeffrey Glenn Carnell | 2,000 | 0 | 2,000 | 2,000 | 0 | 0 | ||||||||||||||||||
Wilda Carnell | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Greg & Nola Casserly Trust | 1,400,000 | 1,400,000 | 2,800,000 | 2,800,000 | 0 | 0 | ||||||||||||||||||
Cduno Consulting | 20,000 | 0 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Charles Goldberg Revocable Trust | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Civic Capital | 0 | 154,000 | 154,000 | 154,000 | 0 | 0 | ||||||||||||||||||
Lewis Chin | 250 | 0 | 250 | 250 | 0 | 0 | ||||||||||||||||||
Vernon G. Chu | 5 | 0 | 5 | 5 | 0 | 0 | ||||||||||||||||||
Jonathan L. Clarke & Margaret A. Clarke | 6,000 | 0 | 6,000 | 6,000 | 0 | 0 | ||||||||||||||||||
Gordon Clements | 30,000 | 53,500 | 83,500 | 83,500 | 0 | 0 | ||||||||||||||||||
Christina D. Collier, Trustee, Adam Boyd Sellers Irrevocable Trust | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Timothy Collins (4) | 0 | 41,573 | 41,573 | 41,573 | 0 | 0 | ||||||||||||||||||
Kevin J. Conner (5) | 12,598 | 0 | 12,598 | 12,598 | 0 | 0 | ||||||||||||||||||
Sandra R. Cooney | 600 | 0 | 600 | 600 | 0 | 0 |
Mark & Jackeline Cooperman (27) | 30,770 | 30,770 | 0 | 0 | ||||||||||||
Melissa Cooperman * | 7,500 | 7,500 | 0 | 0 | ||||||||||||
Gerad Crawford + | 50 | 50 | 0 | 0 | ||||||||||||
Mark E. Curtis * | 4,800 | 4,800 | 0 | 0 | ||||||||||||
Daniel Long Fine Arts, LLC (28) | 50,000 | 50 ,000 | 0 | 0 | ||||||||||||
Milton Datsopoulos (29) | 400,000 | 400,000 | 0 | 0 | ||||||||||||
William S. Daughterty (30) | 51,000 | 51,000 | 0 | 0 | ||||||||||||
Gina Dawson + | 100 | 100 | 0 | 0 | ||||||||||||
Dennis Degori + | 25 | 25 | 0 | 0 | ||||||||||||
Bruce P. DeLaurentis (31) | 75,000 | 75,000 | 0 | 0 | ||||||||||||
DeReelTech, LLC * (32 ) | 26,000 | 26,000 | 0 | 0 | ||||||||||||
Marie Elaine Detzer * | 4,000 | 4,000 | 0 | 0 | ||||||||||||
Nicholas DeVito (33) | 250 ,000 | 250,000 | 0 | 0 | ||||||||||||
Katharine B. Dickson Mark A. Dickson JTWROS (34) | 200,000 | 200,000 | 0 | 0 | ||||||||||||
Lewis H. Dowdy VI (35) | 75,000 | 75,000 | 0 | 0 | ||||||||||||
Kevin P. DuLieu * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
Essex Capital Holdings, Ltd .+ (36) | 1,163 | 1,163 | 0 | 0 | ||||||||||||
Edward Evans + | 50 | 50 | 0 | 0 | ||||||||||||
Marvin Faber (37) | 20,000 | 20,000 | 0 | 0 | ||||||||||||
Fairfield Investment Group, LLC (38) | 25,000 | 25,000 | 0 | 0 |
Mark & Jackeline Cooperman | 30,770 | 30,770 | 61,540 | 61,540 | 0 | 0 | ||||||||||||||||||
Melissa Cooperman | 7,500 | 0 | 7,500 | 7,500 | 0 | 0 | ||||||||||||||||||
Gerad Crawford | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
Mark E. Curtis | 4,800 | 0 | 4,800 | 4,800 | 0 | 0 | ||||||||||||||||||
Daniel Long Fine Arts, LLC | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
John Darcy | 0 | 5,000 | 5,000 | 5,000 | 0 | 0 | ||||||||||||||||||
Milton Datsopoulos | 200,000 | 200,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
William S. Daughterty | 0 | 51,000 | 51,000 | 51,000 | 0 | 0 | ||||||||||||||||||
Gina Dawson | 100 | 0 | 100 | 100 | 0 | 0 | ||||||||||||||||||
Dennis Degori | 25 | 0 | 25 | 25 | 0 | 0 | ||||||||||||||||||
Anders A. de Jounge (31) | 0 | 3,234 | 3,234 | 3,234 | 0 | 0 | ||||||||||||||||||
Bruce P. DeLaurentis | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Del Rey Management, L.P. | 0 | 400,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
DeReelTech, LLC (6) | 26,000 | 0 | 26,000 | 26,000 | 0 | 0 | ||||||||||||||||||
Marie Elaine Detzer | 4,000 | 0 | 4,000 | 4,000 | 0 | 0 | ||||||||||||||||||
Nicholas DeVito | 100,000 | 250,000 | 350,000 | 350,000 | 0 | 0 | ||||||||||||||||||
Katharine B. Dickson Mark A. Dickson JTWROS | 200,000 | 200,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
Lewis H. Dowdy VI | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Kevin P. DuLieu | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Essex Capital Holdings, Ltd. | 1,163 | 0 | 1,163 | 1,163 | 0 | 0 | ||||||||||||||||||
Edward Evans | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
EWM | 0 | 8,000 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Marvin Faber | 0 | 20,000 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Fairfield Investment Group, LLC | 0 | 25,000 | 25,000 | 25,000 | 0 | 0 |
The Jason H. Fane 2012 Irrevocable Trust (39) | 50,000 | 50 ,000 | 0 | 0 | ||||||||||||
Lindsey Faniel + | 100 | 100 | 0 | 0 | ||||||||||||
James R. Flach * (40 ) | 325,000 | 325,000 | 0 | 0 | ||||||||||||
Paul L. Foster (41) | 76,923 | 76,923 | 0 | 0 | ||||||||||||
Judeth & Alfonso Frallicciardi * | 6,000 | 6,000 | 0 | 0 | ||||||||||||
Robert Frome (42) | 135 ,000 | 135,000 | 0 | 0 | ||||||||||||
Kathleen B. Fuld * | 760,000 | 760,000 | 0 | 0 | ||||||||||||
Lee A. Galtman * | 80,000 | 80,000 | 0 | 0 | ||||||||||||
Gary Gee + | 20 | 20 | 0 | 0 | ||||||||||||
Richard S. & Jennifer S. Geib * (43 ) | 32,400 | 32,400 | 0 | 0 | ||||||||||||
Richard S. Geib * (44 ) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
Joseph Getz (45) | 227,500 | 227,500 | 0 | 0 | ||||||||||||
Deborah Gintoli + | 100 | 100 | 0 | 0 | ||||||||||||
Gold Mountain Management, LLC (46) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
John G. Goode (47) | 200,000 | 200,000 | 0 | 0 | ||||||||||||
F.B. Gretsch, Inc .* (48) | 120,000 | 120,000 | 0 | 0 | ||||||||||||
Fred B. Gretsch, Sr. Family Trust * (49) | 2,800 | 2,800 | 0 | 0 | ||||||||||||
Ross Grossman + | 8 | 8 | 0 | 0 | ||||||||||||
Jon D and Linda W Gruber Trust (50) | 750 ,000 | 750,000 | 0 | 0 | ||||||||||||
Jon & Linda Gruber Trust (51) | 460,000 | 460,000 | 0 | 0 | ||||||||||||
J. Colbert Gutierrez + | 50 | 50 | 0 | 0 | ||||||||||||
Jeffrey D. Hall (52) | 90,000 | 90,000 | 0 | 0 |
The Jason H. Fane 2012 Irrevocable Trust | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Lindsey Faniel | 100 | 0 | 100 | 100 | 0 | 0 | ||||||||||||||||||
Braden Ferrari (7) | 0 | 107,750 | 107,750 | 107,750 | 0 | 0 | ||||||||||||||||||
James R. Flach (8) | 325,000 | 0 | 325,000 | 325,000 | 0 | 0 | ||||||||||||||||||
Paul L. Foster | 76,923 | 76,923 | 153,846 | 153,846 | 0 | 0 | ||||||||||||||||||
Judeth & Alfonso Frallicciardi | 6,000 | 0 | 6,000 | 6,000 | 0 | 0 | ||||||||||||||||||
Leon Frenkel (9) | 0 | 3,545,513 | 3,545,513 | 3,545,513 | 0 | 0 | ||||||||||||||||||
Robert Frome | 90,000 | 45,000 | 135,000 | 135,000 | 0 | 0 | ||||||||||||||||||
Kathleen B. Fuld | 760,000 | 0 | 760,000 | 760,000 | 0 | 0 | ||||||||||||||||||
Lee A. Galtman | 80,000 | 0 | 80,000 | 80,000 | 0 | 0 | ||||||||||||||||||
Dean Gardner | 10,000 | 5,000 | 15,000 | 15,000 | 0 | 0 | ||||||||||||||||||
Marlice Gardner | 0 | 15,000 | 15,000 | 15,000 | 0 | 0 | ||||||||||||||||||
Gary Gee | 20 | 0 | 20 | 20 | 0 | 0 | ||||||||||||||||||
Richard S. & Jennifer S. Geib (10) | 32,400 | 0 | 32,400 | 32,400 | 0 | 0 | ||||||||||||||||||
Richard S. Geib (10) | 100,000 | 440,000 | 540,000 | 540,000 | 0 | 0 | ||||||||||||||||||
Joseph Getz | 227,500 | 0 | 227,500 | 227,500 | 0 | 0 | ||||||||||||||||||
Deborah Gintoli | 100 | 0 | 100 | 100 | 0 | 0 | ||||||||||||||||||
John G. Goode | 100,000 | 100,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
F.B. Gretsch, Inc. | 120,000 | 0 | 120,000 | 120,000 | 0 | 0 | ||||||||||||||||||
Fred B. Gretsch, Sr. Family Trust | 2,800 | 0 | 2,800 | 2,800 | 0 | 0 | ||||||||||||||||||
Ross Grossman | 8 | 0 | 8 | 8 | 0 | 0 | ||||||||||||||||||
Jon D and Linda W Gruber Trust | 450,000 | 725,000 | 1,175,000 | 1,175,000 | 0 | 0 | ||||||||||||||||||
Jon & Linda Gruber Trust | 460,000 | 0 | 460,000 | 460,000 | 0 | 0 | ||||||||||||||||||
J. Colbert Gutierrez | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
H Family LLP | 0 | 115,100 | 115,100 | 115,100 | 0 | 0 | ||||||||||||||||||
Jeffrey D. Hall | 90,000 | 45,000 | 135,000 | 135,000 | 0 | 0 | ||||||||||||||||||
Gary L. Hamilton (11) | 0 | 59,325 | 59,325 | 59,325 | 0 | 0 | ||||||||||||||||||
Hannahlu Ventures LP | 0 | 25,000 | 25,000 | 25,000 | 0 | 0 |
Hawk Engineering + (53) | 38 | 38 | 0 | 0 | ||||||||||||
John Hawley (54) | 575,000 | 575,000 | 0 | 0 | ||||||||||||
Leonard M. Herman, TTEE, Leonard M. Herman Trust UAD 5/3/1993 (55) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
Sidney N. Herman (56) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
Bianca Hodge + | 100 | 100 | 0 | 0 | ||||||||||||
Joseph A. Ioia ( 57 ) | 3, 443,554 | 3, 443,554 | 0 | 0 | ||||||||||||
Integral Spine Solutions, Inc. (58) | 500 ,000 | 500 ,000 | 0 | 0 | ||||||||||||
Jaap Family Trust ( 59 ) | 30,000 | 30,000 | 0 | 0 | ||||||||||||
Jaidin Consulting Group LLC + (60) | 260 | 260 | 0 | 0 | ||||||||||||
Janal, LLLP (61) | 400,000 | 400,000 | 0 | 0 | ||||||||||||
Jil M. Janda * | 100,000 | 100,000 | 0 | 0 | ||||||||||||
JCC, LLC * (62) | 108,000 | 108 ,000 | 0 | 0 | ||||||||||||
Alexis B. Johnson (63) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
John Yadegar & Associates + (64) | 88 | 88 | 0 | 0 | ||||||||||||
T. Michael Johnson & Patricia R. Johnson (65) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Timothy B. Johnson (66) | 200,000 | 200,000 | 0 | 0 | ||||||||||||
JR Sandell Wedbush Securities Inc. Ctdn. IRA Contributory 09/14/13 (67) | 25 ,000 | 25,000 | 0 | 0 | ||||||||||||
Marco A. Juarez (68) | 36,842 | 36,842 | 0 | 0 |
Hawk Engineering | 38 | 0 | 38 | 38 | 0 | 0 | ||||||||||||||||||
John Hawley | 0 | 575,000 | 575,000 | 575,000 | 0 | 0 | ||||||||||||||||||
HEPA, LLC | 0 | 30,668 | 30,668 | 30,668 | 0 | 0 | ||||||||||||||||||
Leonard M. Herman, TTEE, Leonard M. Herman Trust UAD 5/3/1993 | 100,000 | 100,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Sidney N. Herman | 100,000 | 100,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Bianca Hodge | 100 | 0 | 100 | 100 | 0 | 0 | ||||||||||||||||||
Joseph A. Ioia (12) | 3,254,677 | 254,677 | 3,509,354 | 3,509,354 | 0 | 0 | ||||||||||||||||||
Ariel Imas (13) | 0 | 107,750 | 107,750 | 107,750 | 0 | 0 | ||||||||||||||||||
IRA FBO Leonid Frenkel (14) | 0 | 1,000,000 | 1,000,000 | 1,000,000 | 0 | 0 | ||||||||||||||||||
IVIP Capital, LLC | 300,000 | 150,000 | 450,000 | 450,000 | 0 | 0 | ||||||||||||||||||
Jaap Family Trust (15) | 30,000 | 30,000 | 60,000 | 60,000 | 0 | 0 | ||||||||||||||||||
Jaidin Consulting Group LLC | 260 | 0 | 260 | 260 | 0 | 0 | ||||||||||||||||||
Janal, LLLP | 200,000 | 200,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
Jil M. Janda | 100,000 | 0 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
JCC, LLC | 108,000 | 20,000 | 128,000 | 128,000 | 0 | 0 | ||||||||||||||||||
Alexis B. Johnson | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
John Yadegar & Associates | 88 | 0 | 88 | 88 | 0 | 0 | ||||||||||||||||||
Stephen H. Johnson | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
T. Michael Johnson & Patricia R. Johnson | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Timothy B. Johnson | 200,000 | 200,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
Byron Jones | 0 | 110,000 | 110,000 | 110,000 | 0 | 0 | ||||||||||||||||||
JR Sandell Wedbush Securities Inc. Ctdn. IRA Contributory 09/14/13 | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Marco A. Juarez | 36,842 | 0 | 36,842 | 36,842 | 0 | 0 |
Marco Antonio & Jessica Noelle Juarez * | 4,000 | 4,000 | 0 | 0 | ||||||||||||
Reed Kaelin + | 126 | 126 | 0 | 0 | ||||||||||||
Jane L. Kaplan Revocable Trust UAD 9/6/2000 (69) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Craig Kaufman + | 25 | 25 | 0 | 0 | ||||||||||||
John Kelley (70) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
William K. Kellogg 1992 Trust (71) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
Arthur Kramer (72) | 75,000 | 75,000 | 0 | 0 | ||||||||||||
K. H. Wm. Krueger (73) | 217,500 | 217,500 | 0 | 0 | ||||||||||||
Menka Lamba (74) | 60,000 | 60 ,000 | 0 | 0 | ||||||||||||
Robert M. Laren & Norma C. Laren, JTWROS * | 4,002 | 4 ,002 | 0 | 0 | ||||||||||||
Daniela Lazar + | 8 | 8 | 0 | 0 | ||||||||||||
Ken Leung * | 1,000 | 1,000 | 0 | 0 | ||||||||||||
David Levine (75) | 40,000 | 40 ,000 | 0 | 0 | ||||||||||||
Elaine Levine (76) | 30,000 | 30,000 | 0 | 0 | ||||||||||||
Dwight Lorenz Trust * (77) | 8,000 | 8,000 | 0 | 0 | ||||||||||||
John d'Arc Lorenz II * (78 ) | 488,334 | 488,334 | 0 | 0 | ||||||||||||
Ronn & Patricia Lorenz, JTWROS * | 66,000 | 66,000 | 0 | 0 |
Marco Antonio & Jessica Noelle Juarez | 4,000 | 0 | 4,000 | 4,000 | 0 | 0 | ||||||||||||||||||
Reed Kaelin | 126 | 0 | 126 | 126 | 0 | 0 | ||||||||||||||||||
Jane L. Kaplan Revocable Trust UAD 9/6/2000 | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Craig Kaufman | 25 | 0 | 25 | 25 | 0 | 0 | ||||||||||||||||||
John Kelley | 0 | 100,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
William K. Kellogg 1992 Trust | 100,000 | 100,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Reginal King (16) | 0 | 29,443 | 29,443 | 29,443 | 0 | 0 | ||||||||||||||||||
Scott Kirschbaum | 0 | 90,000 | 90,000 | 90,000 | 0 | 0 | ||||||||||||||||||
Brian & Jacqueline Kloss | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Arthur Kramer | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
K. H. Wm. Krueger | 0 | 217,500 | 217,500 | 217,500 | 0 | 0 | ||||||||||||||||||
Menka Lamba | 60,000 | 30,000 | 90,000 | 90,000 | 0 | 0 | ||||||||||||||||||
Robert M. Laren & Norma C. Laren, JTWROS | 4,002 | 0 | 40,002 | 40,002 | 0 | 0 | ||||||||||||||||||
Daniela Lazar | 8 | 0 | 8 | 8 | 0 | 0 | ||||||||||||||||||
Jennifer L. Lefere | 0 | 20,000 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Ken Leung | 1,000 | 0 | 1,000 | 1,000 | 0 | 0 | ||||||||||||||||||
David Levine | 40,000 | 90,000 | 130,000 | 130,000 | 0 | 0 | ||||||||||||||||||
Elaine Levine | 30,000 | 30,000 | 60,000 | 60,000 | 0 | 0 | ||||||||||||||||||
Yang Li (17) | 0 | 11,300 | 11,300 | 11,300 | 0 | 0 | ||||||||||||||||||
Staffan Lofgren | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Delight Lorenz Trust | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
John d'Arc Lorenz II (18) | 488,334 | 318,356 | 806,690 | 806,690 | 0 | 0 | ||||||||||||||||||
Ronn & Patricia Lorenz, JTWROS | 66,000 | 0 | 66,000 | 66,000 | 0 | 0 | ||||||||||||||||||
William Ronn Lorenz | 0 | 30,000 | 30,000 | 30,000 | 0 | 0 |
Kurt E. Maier & Jaina Maier 2001 Trust DTD 04/13/01 (79) | 75,000 | 75,000 | 0 | 0 | ||||||||||||
Dwight Mamanteo ( 80 ) | 150,000 | 150,000 | 0 | 0 | ||||||||||||
Laurie Manulis (81) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Gennaro J. Botta & Anna C. Marchese * | 7,200 | 7,200 | 0 | 0 | ||||||||||||
Market Surveys International, Inc .+ (82) | 750 | 750 | 0 | 0 | ||||||||||||
Gary Marlin + | 100 | 100 | 0 | 0 | ||||||||||||
Matrix Advisors (83) | 200,000 | 200,000 | 0 | 0 | ||||||||||||
Johanna Mattox + | 8 | 8 | 0 | 0 | ||||||||||||
Shawn McKinney + | 75 | 75 | 0 | 0 | ||||||||||||
Stephen A. McConnel * | 45,592 | 45,592 | 0 | 0 | ||||||||||||
David L. McLamb, Inc. (84) | 77,000 | 77,000 | 0 | 0 | ||||||||||||
Thomas McManus * | 10,000 | 10,000 | 0 | 0 | ||||||||||||
Eric W. Menkhus (85) | 58,960 | 58,960 | 0 | 0 | ||||||||||||
Dale Merski & Lisa Merski * | 2,400 | 2,400 | 0 | 0 | ||||||||||||
Glenn Michaels & Dionne M. Michaels * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
Edward C. Mikkelsen * | 10,000 | 10,000 | 0 | 0 | ||||||||||||
Brian M. & Samantha A. Miller, JTWROS * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
Joseph Minieri + | 20 | 20 | 0 | 0 |
James Magowan (19) | 0 | 41,573 | 41,573 | 41,573 | 0 | 0 | ||||||||||||||||||
Kurt E. Maier & Jaina Maier 2001 Trust DTD 04/13/01 | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Dwight Mamanteo (20) | 100,000 | 50,000 | 150,000 | 150,000 | 0 | 0 | ||||||||||||||||||
Laurie Manulis | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Gennaro J. Botta & Anna C. Marchese | 7,200 | 0 | 7,200 | 7,200 | 0 | 0 | ||||||||||||||||||
Market Surveys International, Inc. | 750 | 0 | 750 | 750 | 0 | 0 | ||||||||||||||||||
Gary Marlin | 100 | 0 | 100 | 100 | 0 | 0 | ||||||||||||||||||
Matrix Advisors | 200,000 | 200,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
Johanna Mattox | 8 | 0 | 8 | 8 | 0 | 0 | ||||||||||||||||||
Shawn McKinney | 75 | 0 | 75 | 75 | 0 | 0 | ||||||||||||||||||
Stephen A. McConnel | 45,592 | 0 | 45,592 | 45,592 | 0 | 0 | ||||||||||||||||||
David L. McLamb, Inc. | 77,000 | 0 | 77,000 | 77,000 | 0 | 0 | ||||||||||||||||||
Thomas McManus | 10,000 | 0 | 10,000 | 10,000 | 0 | 0 | ||||||||||||||||||
Eric W. Menkhus | 49,960 | 9,000 | 58,960 | 58,960 | 0 | 0 | ||||||||||||||||||
Dale Merski & Lisa Merski | 2,400 | 0 | 2,400 | 2,400 | 0 | 0 | ||||||||||||||||||
Glenn Michaels & Dionne M. Michaels | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Edward C. Mikkelsen | 10,000 | 0 | 10,000 | 10,000 | 0 | 0 | ||||||||||||||||||
Brian M. & Samantha A. Miller, JTWROS | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Howard Miller | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Faizan Arif Minhas | 0 | 25,000 | 25,000 | 25,000 | 0 | 0 | ||||||||||||||||||
Joseph Minieri | 20 | 0 | 20 | 20 | 0 | 0 | ||||||||||||||||||
MJ Fil Investments LLC | 0 | 12,500 | 12,500 | 12,500 | 0 | 0 |
MMT Technologies, Inc. (86) | 204,750 | 204,750 | 0 | 0 | ||||||||||||
Margaret Ann Monsor * | 1,000 | 1,000 | 0 | 0 | ||||||||||||
Matthew Moog (87) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Lou Anne Moore (88) | 15,000 | 15,000 | 0 | 0 | ||||||||||||
Nicholas Steven Morgenstern + | 13 | 13 | 0 | 0 | ||||||||||||
Sandra E. Morse (89) | 66,800 | 66,800 | 0 | 0 | ||||||||||||
MSP 32 Trust (90) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Anil Nayar (91) | 50,000 | 50 ,000 | 0 | 0 | ||||||||||||
Marc E. Nicholson (92) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Jeena Nijjar + | 8 | 8 | 0 | 0 | ||||||||||||
Olde Monmouth Stock Transfer Co., Inc .+ (93) | 226 | 226 | 0 | 0 | ||||||||||||
Olivenhein Holdings, LLC ( 94 ) | 100,000 | 100 ,000 | 0 | 0 | ||||||||||||
Richard Q. Opler * (95 ) | 80,000 | 80 ,000 | 0 | 0 | ||||||||||||
Martin Osber + | 13 | 13 | 0 | 0 | ||||||||||||
Andrew Osborne * | 20,000 | 20,000 | 0 | 0 | ||||||||||||
Osher Capital Partners, LLC (96) | 25 ,000 | 25,000 | 0 | 0 | ||||||||||||
Stan F. Osofsky Trust + (97) | 25 | 25 | 0 | 0 | ||||||||||||
James F. Palacek, TTEE FBO James F. Palacek + (98) | 100 | 100 | 0 | 0 | ||||||||||||
Robert Pallozzi + | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Mark Pears + | 50 | 50 | 0 | 0 | ||||||||||||
Frank J. Pena + (99) | 400 ,000 | 400 ,000 | 0 | 0 |
MMT Technologies, Inc. | 204,750 | 0 | 204,750 | 204,750 | 0 | 0 | ||||||||||||||||||
Margaret Ann Monsor | 1,000 | 0 | 1,000 | 1,000 | 0 | 0 | ||||||||||||||||||
Matthew Moog | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Lou Anne Moore | 10,000 | 5,000 | 15,000 | 15,000 | 0 | 0 | ||||||||||||||||||
Nicholas Steven Morgenstern | 13 | 0 | 13 | 13 | 0 | 0 | ||||||||||||||||||
Sandra E. Morse | 66,800 | 0 | 66,800 | 66,800 | 0 | 0 | ||||||||||||||||||
MSP 32 Trust | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Anil Nayar | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Marc E. Nicholson | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Jeena Nijjar | 8 | 0 | 8 | 8 | 0 | 0 | ||||||||||||||||||
Olde Monmouth Stock Transfer Co., Inc. | 226 | 0 | 226 | 226 | 0 | 0 | ||||||||||||||||||
Olivenhein Holdings, LLC (21) | 100,000 | 50,000 | 150,000 | 150,000 | 0 | 0 | ||||||||||||||||||
David N. Olson (32) | 0 | 43,268 | 43,268 | 43,268 | 0 | 0 | ||||||||||||||||||
Richard Q. Opler (22) | 80,000 | 20,000 | 100,000 | 100,000 | 0 | 0 | ||||||||||||||||||
Option Opportunities Corp. | 0 | 30,000 | 30,000 | 30,000 | 0 | 0 | ||||||||||||||||||
Martin Osber | 13 | 0 | 13 | 13 | 0 | 0 | ||||||||||||||||||
Andrew Osborne | 20,000 | 0 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Osher Capital Partners, LLC | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
Stan F. Osofsky Trust | 25 | 0 | 25 | 25 | 0 | 0 | ||||||||||||||||||
James F. Palacek, TTEE FBO James F. Palacek | 100 | 0 | 100 | 100 | 0 | 0 | ||||||||||||||||||
Robert Pallozzi | 50,000 | 0 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Pamaron Investments LP | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Mark Pears | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
Frank J. Pena | 300,000 | 300,000 | 600,000 | 600,000 | 0 | 0 |
Charles John Philport & Gail Ann Philport, JTWROS * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
Jennifer Powell + | 8 | 8 | 0 | 0 | ||||||||||||
RDA Equities, LLC ( 100 ) | 6, 500 ,000 | 6,500 ,000 | 0 | 0 | ||||||||||||
Deborah Marie Reece * | 4,000 | 4,000 | 0 | 0 | ||||||||||||
Ronald Reel ( 101 ) | 400,000 | 400 ,000 | 0 | 0 | ||||||||||||
Eric Reese + | 25 | 25 | 0 | 0 | ||||||||||||
Philippe Y & Francoise J. Reyns Revocable Trust * (102) | 40,000 | 40,000 | 0 | 0 | ||||||||||||
Richard A. Ritter (103) | 45 ,000 | 45 ,000 | 0 | 0 | ||||||||||||
The Roberts Family Trust Agreement * (104) | 30,000 | 30,000 | 0 | 0 | ||||||||||||
Sharalynn A. Rocha * | 2,000 | 2,000 | 0 | 0 | ||||||||||||
Roy Rogers TTEE UTD 1/21/81 FBO The Rogers Family Trust (105) | 1, 500 ,000 | 1, 500 ,000 | 0 | 0 | ||||||||||||
Roy Rogers TTEE UTD 9/28/89 FBO Roy & Ruth Rogers Uni Trust (106) | 150,000 | 150,000 | 0 | 0 | ||||||||||||
Roma Cafй, Inc .+ (107) | 115 | 115 | 0 | 0 | ||||||||||||
Kurt Rosauer (108) | 246,563 | 246,563 | 0 | 0 | ||||||||||||
Martin Rosauer (109) | 209,063 | 209,063 | 0 | 0 | ||||||||||||
Hannah Rosauer (110) | 1,000 | 1,000 | 0 | 0 | ||||||||||||
Mariel Rosauer (111) | 1,000 | 1,000 | 0 | 0 | ||||||||||||
Travis Rosauer (112) | 10,000 | 10,000 | 0 | 0 | ||||||||||||
Anne H. Ross (113) | 50,000 | 50,000 | 0 | 0 |
Charles John Philport & Gail Ann Philport, JTWROS | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Jennifer Powell | 8 | 0 | 8 | 8 | 0 | 0 | ||||||||||||||||||
RDA Equities, LLC (23) | 6,900,000 | 850,000 | 7,750,000 | 7,750,000 | 0 | 0 | ||||||||||||||||||
Recycle Business Advisors | 0 | 365,000 | 365,000 | 365,000 | 0 | 0 | ||||||||||||||||||
Deborah Marie Reece | 4,000 | 0 | 4,000 | 4,000 | 0 | 0 | ||||||||||||||||||
Ronald Reel (21) | 400,000 | 200,000 | 600,000 | 600,000 | 0 | 0 | ||||||||||||||||||
Eric Reese | 25 | 0 | 25 | 25 | 0 | 0 | ||||||||||||||||||
Phillipe Y & Francoise J. Reyns Revocable Trust | 40,000 | 0 | 40,000 | 40,000 | 0 | 0 | ||||||||||||||||||
Richard A. Ritter | 25,000 | 25,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
The Roberts Family Trust Agreement | 30,000 | 0 | 30,000 | 30,000 | 0 | 0 | ||||||||||||||||||
Sharalynn A. Rocha | 2,000 | 0 | 2,000 | 2,000 | 0 | 0 | ||||||||||||||||||
Roy Rogers TTEE UTD 1/21/81 FBO The Rogers Family Trust | 1,000,000 | 900,000 | 1,900,000 | 1,900,000 | 0 | 0 | ||||||||||||||||||
Roy Rogers TTEE UTD 9/28/89 FBO Roy & Ruth Rogers Uni Trust | 100,000 | 50,000 | 150,000 | 150,000 | 0 | 0 | ||||||||||||||||||
Roma Café, Inc. | 115 | 0 | 115 | 115 | 0 | 0 | ||||||||||||||||||
Kurt Rosauer | 246,563 | 0 | 246,563 | 246,563 | 0 | 0 | ||||||||||||||||||
Martin Rosauer | 209,063 | 0 | 209,063 | 209,063 | 0 | 0 | ||||||||||||||||||
Hannah Rosauer | 1,000 | 0 | 1,000 | 1,000 | 0 | 0 | ||||||||||||||||||
Mariel Rosauer | 1,000 | 0 | 1,000 | 1,000 | 0 | 0 | ||||||||||||||||||
Travis Rosauer | 10,000 | 0 | 10,000 | 10,000 | 0 | 0 | ||||||||||||||||||
Anne H. Ross | 50,000 | 50,000 | 100,000 | 100,000 | 0 | 0 |
Bradley Rotter (114) | 77,000 | 77,000 | 0 | 0 | ||||||||||||
Grant Sahag (115) | 10 ,000 | 10 ,000 | 0 | 0 | ||||||||||||
Sahag Consulting, LLC * (116) | 40,000 | 40,000 | 0 | 0 | ||||||||||||
Dennis Scott (117) | 246,563 | 246,563 | 0 | 0 | ||||||||||||
M. Edward Sellers Suzan D. Boyd JTWROS (118) | 200,000 | 200,000 | 0 | 0 | ||||||||||||
Edward W. & Maria Renee Serreze * | 4,000 | 4,000 | 0 | 0 | ||||||||||||
Seville Enterprises, LP (119) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
William Shirk + | 50 | 50 | 0 | 0 | ||||||||||||
Keri Smith * (120 ) | 47,200 | 47,200 | 0 | 0 | ||||||||||||
Todd Lester Smith * (121 ) | 680,000 | 680,000 | 0 | 0 | ||||||||||||
Dale F. Snavely Trust UAD 3/30/1993 (122) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
Mike Sommer (123) | 40,000 | 40,000 | 0 | 0 | ||||||||||||
Southwell Capital (124) | 125,000 | 125,000 | 0 | 0 | ||||||||||||
Jess and Sandra Starkey * | 9,120 | 9,120 | 0 | 0 | ||||||||||||
John Stein (125) | 227,500 | 227,500 | 0 | 0 | ||||||||||||
R. Steinbaum S. Garfinkle TTEE Catherine Konner Trust U/W C. Konner FBO H. Garfinkle (126) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Steinbaum Family Trust (127) | 100,000 | 100 ,000 | 0 | 0 | ||||||||||||
Robert Strecker (128) | 80,000 | 80,000 | 0 | 0 |
Bradley Rotter | 0 | 77,000 | 77,000 | 77,000 | 0 | 0 | ||||||||||||||||||
Grant Sahag | 0 | 15,000 | 15,000 | 15,000 | 0 | 0 | ||||||||||||||||||
Sahag Consulting, LLC | 40,000 | 0 | 40,000 | 40,000 | 0 | 0 | ||||||||||||||||||
Mark Schultis | 0 | 70,000 | 70,000 | 70,000 | 0 | 0 | ||||||||||||||||||
Dennis Scott | 246,563 | 0 | 246,563 | 246,563 | 0 | 0 | ||||||||||||||||||
Security Research Associates, Inc. (24) | 0 | 137,395 | 137,395 | 137,395 | 0 | 0 | ||||||||||||||||||
M. Edward Sellers Suzan D. Boyd JTWROS | 200,000 | 200,000 | 400,000 | 400,000 | 0 | 0 | ||||||||||||||||||
Serenity Now | 0 | 20,000 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Edward W. & Maria Renee Serreze | 4,000 | 0 | 4,000 | 4,000 | 0 | 0 | ||||||||||||||||||
Seville Enterprises, LP | 100,000 | 100,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
William Shirk | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
Keri Smith (25) | 47,200 | 0 | 47,200 | 47,200 | 0 | 0 | ||||||||||||||||||
Todd Lester Smith (26) | 680,000 | 0 | 680,000 | 680,000 | 0 | 0 | ||||||||||||||||||
Dale F. Snavely Trust UAD 3/30/1993 | 100,000 | 100,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Mike Sommer | 40,000 | 0 | 40,000 | 40,000 | 0 | 0 | ||||||||||||||||||
Southwell Capital | 0 | 125,000 | 125,000 | 125,000 | 0 | 0 | ||||||||||||||||||
Jess and Sandra Starkey | 9,120 | 0 | 9,120 | 9,120 | 0 | 0 | ||||||||||||||||||
Ben Steger | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
John Stein | 227,500 | 0 | 227,500 | 227,500 | 0 | 0 | ||||||||||||||||||
R. Steinbaum S. Garfinkle TTEE Catherine Konner Trust U/W C. Konner FBO H. Garfinkle | 50,000 | 0 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Steinbaum Family Trust | 100,000 | 50,000 | 150,000 | 150,000 | 0 | 0 | ||||||||||||||||||
Mark A. Sternad | 0 | 200,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Mark A. Sternad SEP/IRA | 0 | 200,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Robert Strecker | 0 | 80,000 | 80,000 | 80,000 | 0 | 0 |
Jeff Stuber + | 135 | 135 | 0 | 0 | ||||||||||||
Suns Associates Group + | 175 | 175 | 0 | 0 | ||||||||||||
Brian G. Swift ( 129 ) | 136,750 | 136,750 | 0 | 0 | ||||||||||||
Dana Zweig & Charles Syintsakos, JTWROS * | 10,000 | 10,000 | 0 | 0 | ||||||||||||
Tech Valley Capital Group, Inc. (130) | 50,000 | 50,000 | 0 | 0 | ||||||||||||
Brian Teske (131) | 30,000 | 30,000 | 0 | 0 | ||||||||||||
Eric Tjaden (132) | 15,385 | 15 ,385 | 0 | 0 | ||||||||||||
The Arthur V. Adams Trust + (133) | 125 | 125 | 0 | 0 | ||||||||||||
Henry J. Underwood Trust (134) | 100,000 | 100,000 | 0 | 0 | ||||||||||||
Trafalgar Trust + (135) | 250 | 250 | 0 | 0 | ||||||||||||
Christina R. Valauri * | 8,000 | 8,000 | 0 | 0 | ||||||||||||
D. Michael Wallen (136) | 22,500 | 22,500 | 0 | 0 | ||||||||||||
Jacob Watkins + | 50 | 50 | 0 | 0 | ||||||||||||
Scot Webber + | 50 | 50 | 0 | 0 | ||||||||||||
WFOULSHAM Fund A * (137) | 20,000 | 20,000 | 0 | 0 | ||||||||||||
Micah J. Whitman * | 30,000 | 30,000 | 0 | 0 |
Jeff Stuber | 135 | 0 | 135 | 135 | 0 | 0 | ||||||||||||||||||
Suns Associates Group | 175 | 0 | 175 | 175 | 0 | 0 | ||||||||||||||||||
Brian G. Swift (27) | 0 | 136,750 | 136,750 | 136,750 | 0 | 0 | ||||||||||||||||||
Dana Zweig & Charles Syintsakos, JTWROS | 10,000 | 0 | 10,000 | 10,000 | 0 | 0 | ||||||||||||||||||
Tech Valley Capital Group, Inc. | 0 | 50,000 | 50,000 | 50,000 | 0 | 0 | ||||||||||||||||||
Brian Teske | 0 | 30,000 | 30,000 | 30,000 | 0 | 0 | ||||||||||||||||||
Eric Tjaden | 15,385 | 65,385 | 80,770 | 80,770 | 0 | 0 | ||||||||||||||||||
Tolles Living Family Trust | 0 | 25,000 | 25,000 | 25,000 | 0 | 0 | ||||||||||||||||||
Kiet T. Tran | 0 | 38,461 | 38,461 | 38,461 | 0 | 0 | ||||||||||||||||||
TriPoint Global Equities, LLC (28) | 0 | 56,700 | 56,700 | 56,700 | 0 | 0 | ||||||||||||||||||
The Arthur V. Adams Trust | 125 | 0 | 125 | 125 | 0 | 0 | ||||||||||||||||||
Henry J. Underwood Trust | 100,000 | 100,000 | 200,000 | 200,000 | 0 | 0 | ||||||||||||||||||
Trafalgar Trust | 250 | 0 | 250 | 250 | 0 | 0 | ||||||||||||||||||
Christina R. Valauri | 8,000 | 0 | 8,000 | 8,000 | 0 | 0 | ||||||||||||||||||
Richard Vratanina | 0 | 61,539 | 61,539 | 61,539 | 0 | 0 | ||||||||||||||||||
D. Michael Wallen | 15,000 | 7,500 | 22,500 | 22,500 | 0 | 0 | ||||||||||||||||||
Warberg Opportunistic Fund | 0 | 37,500 | 37,500 | 37,500 | 0 | 0 | ||||||||||||||||||
Edward J. Waters | 0 | 25,000 | 25,000 | 25,000 | 0 | 0 | ||||||||||||||||||
Jacob Watkins | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
Scot Webber | 50 | 0 | 50 | 50 | 0 | 0 | ||||||||||||||||||
WFOULSHAM Fund A | 20,000 | 0 | 20,000 | 20,000 | 0 | 0 | ||||||||||||||||||
Micah J. Whitman | 30,000 | 0 | 30,000 | 30,000 | 0 | 0 |
Kenneth M. Williams * | 10,000 | 10,000 | 0 | 0 | ||||||||||||
Winston Capital Partners, LP (138) | 50,000 | 50 ,000 | 0 | 0 | ||||||||||||
W.R. Valentine, LLC (139) | 150,000 | 150,000 | 0 | 0 | ||||||||||||
Wright Investment Partnership (140) | 25,000 | 25,000 | 0 | 0 | ||||||||||||
Wynnefield Partners Small Cap Value, L.P.I. ( 141 ) | 1,593,675 | 1,593,675 | 0 | 0 | ||||||||||||
Wynnefield Partners Small Cap Value, LP ( 142 ) | 1,016,213 | 1,016,213 | 0 | 0 | ||||||||||||
Wynnefield Small Cap Value Offshore Fund, Ltd. ( 143 ) | 765,113 | 765,113 | 0 | 0 | ||||||||||||
Dan Xu (144) | 10 ,000 | 10,000 | 0 | 0 | ||||||||||||
Lydia A. Yacino * | 1,700 | 1,700 | 0 | 0 | ||||||||||||
Alicia Williams & John Young, CPWROS * (145 ) | 200,040 | 200 ,040 | 0 | 0 | ||||||||||||
Mimi Young + | 8 | 8 | 0 | 0 |
Kenneth M. Williams | 10,000 | 0 | 10,000 | 10,000 | 0 | 0 | ||||||||||||||||||
Winston Capital Partners, LP | 50,000 | 25,000 | 75,000 | 75,000 | 0 | 0 | ||||||||||||||||||
W.R. Valentine, LLC | 150,000 | 150,000 | 300,000 | 300,000 | 0 | 0 | ||||||||||||||||||
Wright Investment Partnership | 0 | 25,000 | 25,000 | 25,000 | 0 | 0 | ||||||||||||||||||
Wynnefield Partners Small Cap Value, L.P.I. (29) | 1,062,450 | 531,225 | 1,593,675 | 1,593,675 | 0 | 0 | ||||||||||||||||||
Wynnefield Partners Small Cap Value, LP (29) | 677,475 | 338,738 | 1,016,213 | 1,016,213 | 0 | 0 | ||||||||||||||||||
Wynnefield Small Cap Value Offshore Fund, Ltd. (29) | 510,075 | 255,038 | 765,113 | 765,113 | 0 | 0 | ||||||||||||||||||
Dan Xu | 20,000 | 10,000 | 30,000 | 30,000 | 0 | 0 | ||||||||||||||||||
Lydia A. Yacino | 1,700 | 0 | 1,700 | 1,700 | 0 | 0 | ||||||||||||||||||
Alicia Williams & John Young, CPWROS (30) | 200,040 | 15,000 | 215,040 | 215,040 | 0 | 0 | ||||||||||||||||||
Mimi Young | 8 | 0 | 8 | 8 | 0 | 0 |
- | fixed prices; |
- | prevailing market prices at the time of sale; |
- | varying prices determined at the time of sale; or |
- | negotiated prices. |
- | a block trade in which a broker-dealer attempts to sell the shares of the registered securities as agent but may resell a portion of the block as principal to facilitate the transaction; |
- | a purchase by a broker-dealer as principal and resale by the broker-dealer for its account under this prospectus; |
- | an exchange distribution in accordance with the rules of the exchange; |
- | ordinary brokerage transactions and transactions in which a broker solicits purchasers; |
- | privately negotiated transactions, including directly to investors; and |
- | a combination of any of the above transactions. |
- | the name of the selling shareholders and the participating broker-dealer; |
- | the number of shares of the registered securities involved; |
- | the price at which the shares of the registered securities are sold; |
- | the commissions paid or discounts or concessions allowed to the broker-dealer; |
- | that the broker-dealer did not conduct any investigation to verify the information contained or incorporated by reference in this prospectus; and |
- | other facts material to the transaction. |
CONTENTS | Page |
2013 | 2012 | 2013 | 2012 | |||||||||||||
ASSETS | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash | $ | 4,393,299 | $ | 1,153,941 | $ | 4,393,299 | $ | 1,153,941 | ||||||||
Accounts receivable, net | 898,934 | 116,963 | 898,934 | 116,963 | ||||||||||||
Due from related parties | 34,868 | - | 34,868 | - | ||||||||||||
Prepaid expenses | 53,732 | 12,550 | 53,732 | 12,550 | ||||||||||||
Inventories | 268,191 | 58,719 | 268,191 | 58,719 | ||||||||||||
Total current assets | 5,649,024 | 1,342,173 | 5,649,024 | 1,342,173 | ||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Machinery and equipment | 3,719,344 | 756,047 | 3,719,344 | 756,047 | ||||||||||||
Leasehold improvements | 7,641 | - | 7,641 | - | ||||||||||||
Accumulated depreciation | (328,803 | ) | (70,641 | ) | (328,803 | ) | (70,641 | ) | ||||||||
3,398,182 | 685,406 | 3,398,182 | 685,406 | |||||||||||||
Construction in process | 2,117,001 | - | 2,117,001 | - | ||||||||||||
Total property, plant and equipment | 5,515,183 | 685,406 | 5,515,183 | 685,406 | ||||||||||||
Other Assets | ||||||||||||||||
Deposits | 80,708 | - | 80,708 | - | ||||||||||||
Goodwill | 779,303 | 159,484 | 779,303 | 159,484 | ||||||||||||
Other intangibles, net | 3,673,190 | 3,500,000 | 3,673,190 | 3,500,000 | ||||||||||||
Total other assets, net | 4,533,201 | 3,659,484 | 4,533,201 | 3,659,484 | ||||||||||||
Total assets | $ | 15,697,408 | $ | 5,687,063 | $ | 15,697,408 | $ | 5,687,063 | ||||||||
LIABILITIES, MEZZANINE, AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable and accrued expenses | $ | 1,271,674 | $ | 184,134 | $ | 1,271,674 | $ | 184,134 | ||||||||
Due to related parties | 582,682 | 470,443 | 582,682 | 470,443 | ||||||||||||
Accrued interest | - | 616,462 | - | 616,462 | ||||||||||||
Convertible note payable | - | 1,000,000 | - | 1,000,000 | ||||||||||||
Note payable | 6,504 | - | 6,504 | - | ||||||||||||
Capital lease obligation, related party | 285,363 | - | 285,363 | - | ||||||||||||
Total current liabilities | 2,146,223 | 2,271,039 | 2,146,223 | 2,271,039 | ||||||||||||
Non-Current Liabilities | ||||||||||||||||
Note payable | 9,877 | - | 9,877 | - | ||||||||||||
Capital lease obligation, related party | 1,189,574 | - | 1,189,574 | - | ||||||||||||
Total non-current liabilities | 1,199,451 | - | 1,199,451 | - | ||||||||||||
Total liabilities | 3,345,674 | 2,271,039 | 3,345,674 | 2,271,039 | ||||||||||||
Commitments and contingencies | ||||||||||||||||
Mandatorily redeemable Series AA convertible preferred stock, 2,342,740 shares issues and outstanding | 1,171,375 | - | 1,171,375 | - | ||||||||||||
Stockholders' Equity | ||||||||||||||||
Preferred stock: 40,000,000 shares authorized; $0.0001 par value; 2,342,740 Series AA (above) issued and outstanding as of December 31, 2013 and none issued and outstanding as of December 31, 2012 | - | - | - | - | ||||||||||||
Common stock: 300,000,000 shares authorized; $0.0001 par value; 48,834,916 and 36,149,985 shares issued and outstanding as of December 31, 2013 and 2012, respectively | 4,884 | 3,615 | 4,884 | 3,615 | ||||||||||||
Additional paid-in capital | 24,541,809 | 12,765,616 | 24,541,809 | 12,765,616 | ||||||||||||
Accumulated deficit | (13,366,334 | ) | (9,353,207 | ) | (13,366,334 | ) | (9,353,207 | ) | ||||||||
Total stockholders' equity | 11,180,359 | 3,416,024 | 11,180,359 | 3,416,024 | ||||||||||||
Total liabilities, mezzanine, and stockholders' equity | $ | 15,697,408 | $ | 5,687,063 | $ | 15,697,408 | $ | 5,687,063 |
2013 | 2012 | |||||||
Net sales | $ | 5,538,005 | $ | 1,266,295 | ||||
Cost of goods sold ($2,274,345 related party for 2013) | 5,193,445 | 1,021,332 | ||||||
Gross profit | 344,560 | 244,963 | ||||||
Operating expenses | ||||||||
Consulting fees ($496,438 and $161,945 related party for 2013 and 2012, respectively) | 680,196 | 623,949 | ||||||
Salaries and wages | 830,677 | 467,023 | ||||||
Share-based compensation | 1,065,288 | 124,660 | ||||||
Legal and professional fees | 286,728 | 300,674 | ||||||
General and administrative ($48,123 related party for 2013) | 900,463 | 414,133 | ||||||
Total operating expenses | 3,763,352 | 1,930,439 | ||||||
Loss from operations | (3,418,792 | ) | (1,685,476 | ) | ||||
Other (income) and expenses | ||||||||
Interest income | (2,496 | ) | (1,206 | ) | ||||
Interest expense ($392,170 warrants issued for convertible note for 2013; $176,862 related party for 2013) | 592,788 | 185,561 | ||||||
Other | 4,043 | - | ||||||
Total other income and expenses | 594,335 | 184,355 | ||||||
Loss before provision for income taxes | (4,013,127 | ) | (1,869,831 | ) | ||||
Provision for income taxes | - | - | ||||||
Net loss | $ | (4,013,127 | ) | $ | (1,869,831 | ) | ||
Basic and diluted loss per share | $ | (0.09 | ) | $ | (0.07 | ) | ||
Weighted average common shares outstanding (basic and diluted) | 45,527,044 | 26,402,477 |
Additional | Additional | Total | ||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Stockholders' | Common Stock | Paid-In | Accumulated | Stockholders' | |||||||||||||||||||||||||||||||||
Shares | Par Value | Capital | Deficit | Equity | Shares | Par Value | Capital | Deficit | Equity | |||||||||||||||||||||||||||||||
Balance, December 31, 2011 | 22,858,235 | $ | 2,286 | $ | 5,880,271 | $ | (7,483,376 | ) | $ | (1,600,819 | ) | 22,858,235 | $ | 2,286 | $ | 5,880,271 | $ | (7,483,376 | ) | $ | (1,600,819 | ) | ||||||||||||||||||
Common shares for acquisition | 4,171,750 | 417 | 2,357,333 | - | 2,357,750 | 4,171,750 | 417 | 2,357,333 | - | 2,357,750 | ||||||||||||||||||||||||||||||
Common shares for cash | 8,920,000 | 892 | 4,303,372 | - | 4,304,264 | 8,920,000 | 892 | 4,303,372 | - | 4,304,264 | ||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 124,660 | - | 124,660 | - | - | 124,660 | - | 124,660 | ||||||||||||||||||||||||||||||
Warrants and options exercised | 200,000 | 20 | 99,980 | - | 100,000 | 200,000 | 20 | 99,980 | - | 100,000 | ||||||||||||||||||||||||||||||
Net loss | - | - | - | (1,869,831 | ) | (1,869,831 | ) | - | - | - | (1,869,831 | ) | (1,869,831 | ) | ||||||||||||||||||||||||||
Balance, December 31, 2012 | 36,149,985 | 3,615 | 12,765,616 | (9,353,207 | ) | 3,416,024 | 36,149,985 | 3,615 | 12,765,616 | (9,353,207 | ) | 3,416,024 | ||||||||||||||||||||||||||||
Common shares for acquisition | 835,810 | 84 | 1,118,089 | - | 1,118,173 | 835,810 | 84 | 1,118,089 | - | 1,118,173 | ||||||||||||||||||||||||||||||
Common shares for payment of goods and services | 793,679 | 79 | 553,281 | - | 553,360 | 793,679 | 79 | 553,281 | - | 553,360 | ||||||||||||||||||||||||||||||
Common shares for note conversion | 940,000 | 94 | 469,906 | - | 470,000 | 940,000 | 94 | 469,906 | - | 470,000 | ||||||||||||||||||||||||||||||
Warrants issued in conjunction with note conversion | - | - | 392,170 | - | 392,170 | - | - | 392,170 | - | 392,170 | ||||||||||||||||||||||||||||||
Common shares for cash, net | 9,357,578 | 936 | 8,177,535 | - | 8,178,471 | 9,357,578 | 936 | 8,177,535 | - | 8,178,471 | ||||||||||||||||||||||||||||||
Warrants and options exercised | 757,864 | 76 | (76 | ) | - | - | 757,864 | 76 | (76 | ) | - | - | ||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 1,065,288 | - | 1,065,288 | - | - | 1,065,288 | - | 1,065,288 | ||||||||||||||||||||||||||||||
Net loss | - | - | - | (4,013,127 | ) | (4,013,127 | ) | - | - | - | (4,013,127 | ) | (4,013,127 | ) | ||||||||||||||||||||||||||
Balance, December 31, 2013 | 48,834,916 | $ | 4,884 | $ | 24,541,809 | $ | (13,366,334 | ) | $ | 11,180,359 | 48,834,916 | $ | 4,884 | $ | 24,541,809 | $ | (13,366,334 | ) | $ | 11,180,359 |
2013 | 2012 | |||||||
Net cash flows from operating activities | ||||||||
Net loss | $ | (4,013,127 | ) | $ | (1,869,831 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||
Depreciation | 258,162 | 70,641 | ||||||
Amortization | 183,310 | - | ||||||
Stock-based compensation expense | 1,065,288 | 124,660 | ||||||
Stock issued for conversion of accrued interest | 24,913 | - | ||||||
Warrants issued in conjunction with note conversion | 392,170 | - | ||||||
Stock and warrants issued for goods and services | 553,360 | - | ||||||
Other | 4,043 | - | ||||||
(Increase) decrease in operating assets and liabilities: | ||||||||
Accounts receivable, net | (689,651 | ) | (81,865 | ) | ||||
Due from related parties | (34,868 | ) | - | |||||
Prepaid expenses | (121,890 | ) | (12,550 | ) | ||||
Inventories | (185,238 | ) | (58,719 | ) | ||||
Accounts payable and accrued expenses | 989,597 | (28,615 | ) | |||||
Due to related party | 112,239 | (98,160 | ) | |||||
Accrued interest | - | 184,770 | ||||||
Other | 9,000 | - | ||||||
Net cash used in operating activities | (1,452,692 | ) | (1,769,669 | ) | ||||
Investing activities | ||||||||
Cash paid for acquisitions | (539,304 | ) | - | |||||
Purchase of equipment | (593,738 | ) | (57,781 | ) | ||||
Construction in process | (2,117,001 | ) | - | |||||
Proceeds from sale of fixed assets | 6,278 | - | ||||||
Purchase of intangible assets | - | (2,000,000 | ) | |||||
Net cash used in investing activities | (3,243,765 | ) | (2,057,781 | ) | ||||
Financing activities | ||||||||
Repayment of debt | (3,619 | ) | - | |||||
Repayment of capital lease | (239,037 | ) | - | |||||
Proceeds from the sale of common stock | 8,546,386 | 4,404,264 | ||||||
Stock issuance costs | (367,915 | ) | - | |||||
Net cash provided by financing activities | 7,935,815 | 4,404,264 | ||||||
Increase (decrease) in cash for year | 3,239,358 | 576,814 | ||||||
Cash at the beginning of the year | 1,153,941 | 577,127 | ||||||
Cash at end of the year | $ | 4,393,299 | $ | 1,153,941 | ||||
Supplemental disclosure of cash flow information | ||||||||
Interest paid during year | $ | 122,510 | $ | 792 | ||||
Taxes paid during year | $ | - | $ | - | ||||
Supplemental disclosure of non-cash investing and financing items | ||||||||
Common stock issued for acquisition | $ | 1,118,173 | $ | 2,357,750 | ||||
Common stock for goods and services | $ | 553,360 | $ | 698,266 | ||||
Common stock issued for convertible note, principal and interest | $ | 470,000 | $ | - | ||||
Series AA Preferred Stock issued for convertible note, principal and interest | $ | 1,171,375 | $ | - | ||||
Equipment under capital lease | $ | 1,714,974 | $ | - | ||||
Equipment purchased with debt | $ | 20,000 | $ | - |
Leasehold improvements | 5 years | ||
Machinery and Equipment | 3-25 years |
● | Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date; |
● | Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and |
● | Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions that market participants would use in pricing an asset or liability. Valuation is generated from model-based techniques with the unobservable assumptions reflecting our own estimate of assumptions that market participants would use in pricing the asset or liability. |
2013 | 2012 | |||||||
Beginning balance as of January 1, | $ | 4,892 | - | |||||
Bad debt expense | 44,198 | 4,892 | ||||||
Charge offs, net | (1,163 | ) | - | |||||
Ending balance as of December 31, | $ | 47,927 | 4,892 |
December 31, | 2013 | 2012 | ||||||
Raw materials | $ | 76,165 | $ | 18,039 | ||||
Work in process | 47,106 | 31,569 | ||||||
Finished goods | 144,920 | 9,111 | ||||||
Total inventories | $ | 268,191 | $ | 58,719 |
December 31, | 2013 | 2012 | ||||||
Machinery and equipment | $ | 3,719,344 | $ | 756,047 | ||||
Leasehold improvements | 7,641 | - | ||||||
Accumulated depreciation | (328,803 | ) | (70,641 | ) | ||||
3,398,182 | 685,406 | |||||||
Construction in process | 2,117,001 | - | ||||||
Total property, plant and equipment | $ | 5,515,183 | $ | 685,406 |
Cash | $ | 539,304 | ||
Equity instruments (635,810 common shares of the Company) issued | 894,173 | |||
Assets acquired under capital lease | 1,714,974 | |||
Equity instruments held in escrows (200,000 common shares of the Company) | 224,000 | |||
Fair value of total consideration transferred | $ | 3,372,451 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Financial assets (primarily accounts receivable) | $ | 92,320 | ||
Inventory | 24,234 | |||
Property, plant, and equipment | 2,377,521 | |||
Identifiable intangible assets | 356,500 | |||
Financial liabilities | (97,943 | ) | ||
Total identifiable net assets | 2,752,632 | |||
Goodwill | 619,819 | |||
$ | 3,372,451 |
Revenue | Earnings (Loss) | |||||||
Actual from date of Transaction 12/31/2013 | $ | 3,057,071 | $ | 569,697 | ||||
Pro forma (unaudited) supplemental information as if the Transactions had occurred at the beginning of the period is approximately, as shown below: | ||||||||
Supplemental (unaudited) pro forma for 1/1/2013 - 12/31/13 | $ | 6,420,000 | $ | (3,420,000 | ) | |||
Supplemental (unaudited) pro forma for 1/1/2012 - 12/31/12 | $ | 5,200,000 | $ | (1,275,000 | ) |
Balance at | Balance at | |||||||||||||||||||||
Estimated | December 31, | Current Year | December 31, | Accumulated | ||||||||||||||||||
Useful Life | 2012 | Additions | 2013 | Amortization | Net | |||||||||||||||||
Finite live intangible assets: | ||||||||||||||||||||||
Customer list and trade name | 5 years | $ | - | $ | 24,500 | $ | 24,500 | $ | 1,810 | $ | 22,690 | |||||||||||
Non-compete agreements | 5 years | - | 332,000 | 332,000 | 41,500 | 290,500 | ||||||||||||||||
Intellectual property | 25 years | 3,500,000 | - | 3,500,000 | 140,000 | 3,360,000 | ||||||||||||||||
Total intangible assets | $ | 3,500,000 | $ | 356,500 | $ | 3,856,500 | $ | 183,310 | $ | 3,673,190 | ||||||||||||
Goodwill | Indefinite | $ | 159,484 | $ | 619,819 | $ | 779,303 | $ | - | $ | 779,303 |
For the Year Ending December 31, | Estimated Amortization Expense | |||
2014 | $ | 209,380 | ||
2015 | 209,380 | |||
2016 | 209,380 | |||
2017 | 209,380 | |||
2018 | 166,355 | |||
Thereafter | 2,669,315 | |||
$ | 3,673,190 |
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred tax assets – NOL | $ | 3,480,000 | $ | 2,250,000 | ||||
Valuation allowance | (3,480,000 | ) | (2,250,000 | ) | ||||
Net deferred tax assets | $ | - | $ | - |
Federal statutory tax rate | 35 | % | ||
Permanent difference and valuation allowance | (35 | )% | ||
Effective tax rate | 0 | % |
Year Ended December 31, | Principal | Interest | ||||||
2014 | $ | 285,363 | $ | 109,437 | ||||
2015 | 312,125 | 82,675 | ||||||
2016 | 341,396 | 53,404 | ||||||
2017 | 373,413 | 21,387 | ||||||
2018 | 162,640 | 245 | ||||||
Total minimum lease payments | $ | 1,474,937 | $ | 267,148 |
Year Ended December 31, | ||||
2014 | $ | 6,504 | ||
2015 | 6,905 | |||
2016 | 2,972 | |||
Total minimum note payments | $ | 16,381 |
Number of Common | Value of Common | |||||||
Shares Issued | Shares as Recorded | |||||||
Common Shares for Acquisition | 835,810 | $ | 1,118,173 | |||||
Common Shares for Goods and Services | 793,679 | $ | 553,360 | |||||
Common Shares for Convertible Note | 940,000 | $ | 470,000 | |||||
Common Shares for Cash | 9,357,578 | $ | 8,178,471 | |||||
Warrants and Options Exercised | 757,864 | $ | - |
Weighted | ||||||||
Options for | Average | |||||||
Shares | Exercise Price | |||||||
Outstanding as of December 31, 2011 | 3,717,606 | $ | 0.60 | |||||
Granted | 3,285,000 | 0.59 | ||||||
Exercised | (165,000 | ) | 0.50 | |||||
Forfeited | - | - | ||||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of December 31, 2012 | 6,837,606 | $ | 0.59 | |||||
Outstanding as of December 31, 2012 | 6,837,606 | $ | 0.59 | |||||
Granted | 3,445,900 | 1.00 | ||||||
Exercised | (150,000 | ) | 0.50 | |||||
Forfeited | - | - | ||||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of December 31, 2013 | 10,133,506 | $ | 0.74 |
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Expected volatility | 40 | % | 10 | % | ||||||||
Risk-free interest rate | 0.16 | – | 0.70 | % | 0.60 | – | 0.70 | % | ||||
Expected dividends | 0.00 | % | 0.00 | % | ||||||||
Expected term in years | 3 | – | 5 | 5 | – | 10 |
Weighted | ||||||||
Warrants for | Average | |||||||
Shares | Exercise Price | |||||||
Outstanding as of December 31, 2011 | 4,410,991 | $ | 0.64 | |||||
Granted | 7,946,500 | 1.00 | ||||||
Exercised | (35,000 | ) | 0.50 | |||||
Forfeited | - | - | ||||||
Cancelled | (14,933 | ) | 2.50 | |||||
Expired | - | - | ||||||
Outstanding as of December 31, 2012 | 12,307,558 | $ | 0.86 | |||||
Outstanding as of December 31, 2012 | 12,307,558 | 0.86 | ||||||
Granted | 8,187,817 | 1.31 | ||||||
Exercised | (680,000 | ) | 0.03 | |||||
Forfeited | (284,934 | ) | 0.48 | |||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of December 31, 2013 | 19,530,441 | 1.08 |
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Expected volatility | 40 | % | 10 | % | ||||||||
Risk-free interest rate | 0.60 | – | 0.70 | % | 0.60 | – | 0.70 | % | ||||
Expected dividends | 0.00 | % | 0.00 | % | ||||||||
Expected term in years | 3 | – | 5 | 3 | – | 5 |
Warrants and Options Outstanding | Warrants and Options Exercisable | |||||||||||||||||||||
Range of Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (years) | Range of Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$ | 0.0001 | 1,000,000 | 2.5 | $ | 0.0001 | 1,000,000 | $ | 0.0001 | ||||||||||||||
$ | 0.025 | 680,000 | 0.3 | $ | 0.025 | 680,000 | $ | 0.025 | ||||||||||||||
$ | 0.50 | 6,360,000 | 9.0 | $ | 0.50 | 3,975,000 | $ | 0.50 | ||||||||||||||
$ | 0.625 | 220,000 | 0.1 | $ | 0.625 | 220,000 | $ | 0.625 | ||||||||||||||
$ | 1.00 | 10,420,230 | 9.0 | $ | 1.00 | 10,370,230 | $ | 1.00 | ||||||||||||||
$ | 1.50 | 300,000 | 2.5 | $ | 1.50 | 300,000 | $ | 1.50 | ||||||||||||||
$ | 2.45 | 100,000 | 5.0 | $ | 2.45 | 20,000 | $ | 2.45 | ||||||||||||||
$ | 2.50 | 64,934 | 0.5 | $ | 2.50 | 64,934 | $ | 2.50 | ||||||||||||||
19,145,164 | 16,630,164 |
Warrants and Options Outstanding | Warrants and Options Exercisable | |||||||||||||||||||||
Range of Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (years) | Range of Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$ | 0.0001 | 1,000,000 | 1.4 | $ | 0.0001 | 1,000,000 | 0.0001 | |||||||||||||||
$ | 0.50 | 6,410,800 | 8.1 | $ | 0.50 | 5,182,300 | 0.50 | |||||||||||||||
$ | 1.00 | 15,036,830 | 4.2 | $ | 1.00 | 13,414,330 | 1.00 | |||||||||||||||
$ | 1.25 | 2,912,716 | 2.2 | $ | 1.25 | 2,912,716 | 1.25 | |||||||||||||||
$ | 1.50 | 4,203,601 | 4.7 | $ | 1.50 | 4,203,601 | 1.50 | |||||||||||||||
$ | 2.45 | 100,000 | 8.5 | $ | 2.45 | 40,000 | 2.45 | |||||||||||||||
29,663,947 | 26,752,947 |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | 211,800 | $ | 278,800 | ||||
Monies owed | 87,069 | 12,500 | ||||||
Monies paid | (184,435 | ) | (79,500 | ) | ||||
Ending balance as of December 31, 2013 | $ | 114,434 | $ | 211,800 |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | 41,000 | ||||
Monies owed | 145,011 | 77,000 | ||||||
Monies paid | (128,953 | ) | (118,000 | ) | ||||
Ending balance as of December 31, 2013 | $ | 16,058 | $ | - |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||
Monies owed | 57,272 | - | ||||||
Monies paid | (41,134 | ) | - | |||||
Ending balance as of December 31, 2013 | $ | 16,138 | $ | - |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||
Monies owed | 2,832,046 | - | ||||||
Monies paid | (2,405,994 | ) | - | |||||
Ending balance as of December 31, 2013 | $ | 426,052 | $ | - |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||
Monies owed | 10,000 | - | ||||||
Monies paid | - | - | ||||||
Ending balance as of December 31, 2013 | $ | 10,000 | $ | - |
Year Ended December 31, | ||||
2014 | $ | 652,670 | ||
2015 | 645,687 | |||
2016 | 650,652 | |||
2017 | 564,251 | |||
2018 | 73,097 | |||
Total minimum lease payments | $ | 2,586,357 |
· | Cash and cash equivalents – Financial instruments that subject the Company to credit risk are cash balances maintained in excess of federal depository insurance limits. At December 31, 2013, the Company had $3,828,685 in cash which was not guaranteed by the Federal Deposit Insurance Corporation. To date, the Company has not experienced any losses in such accounts and believes the exposure is minimal. |
· | Major customers and accounts receivable – Major customers represent any customer that accounts for more than 10% of revenues for the year. During 2013, the Company had two customers that accounted for 23% and 29% of revenues and whose accounts receivable balance (unsecured) accounted for approximately 23% and 7% of accounts receivable at December 31, 2013. During 2012, the Company had one customer that accounted for approximately 62% of revenues. |
Number of Common Shares Issued | Value of Common Shares | |||||||
Common Shares for Acquisition | 204,750 | $ | 210,893 | |||||
Common Shares for Performance Plan | 204,689 | $ | 212,877 | |||||
Common Shares for Conversion of Series AA Preferred Shares | 2,605,513 | $ | 1,302,757 | |||||
Warrants and Options Exercised | 24,167 | $ | 26,100 |
CONTENTS | Page |
ASSETS | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Current assets | ||||||||
Cash | $ | 990,738 | $ | 4,393,299 | ||||
Accounts receivable, net | 1,168,970 | 898,934 | ||||||
Due from related parties | - | 34,868 | ||||||
Prepaid expenses | 281,399 | 53,732 | ||||||
Inventories | 401,884 | 268,191 | ||||||
Total current assets | 2,842,991 | 5,649,024 | ||||||
Equipment | ||||||||
Equipment | 3,901,137 | 3,719,344 | ||||||
Leasehold improvements | 7,641 | 7,641 | ||||||
Accumulated depreciation | (409,276 | ) | (328,803 | ) | ||||
3,499,502 | 3,398,182 | |||||||
Construction in process | 3,718,097 | 2,117,001 | ||||||
Total equipment, net | 7,217,599 | 5,515,183 | ||||||
Other assets | ||||||||
Deposits | - | 80,708 | ||||||
Goodwill | 835,295 | 779,303 | ||||||
Other intangible assets, net | 3,619,732 | 3,673,190 | ||||||
Total other assets | 4,455,027 | 4,533,201 | ||||||
Total assets | $ | 14,515,617 | $ | 15,697,408 | ||||
LIABILITIES, MEZZANINE AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 711,673 | $ | 1,271,674 | ||||
Due to related parties | 540,001 | 582,682 | ||||||
Note payable | 6,602 | 6,504 | ||||||
Capital lease obligation | 291,830 | 285,363 | ||||||
Total current liabilities | 1,550,106 | 2,146,223 | ||||||
Non-current liabilities | ||||||||
Note payable | 8,191 | 9,877 | ||||||
Capital lease obligation | 1,114,148 | 1,189,574 | ||||||
Total non-current liabilities | 1,122,339 | 1,199,451 | ||||||
Total liabilities | 2,672,445 | 3,345,674 | ||||||
Commitments and contingencies | ||||||||
Mandatorily redeemable Series AA convertible preferred stock, 2,342,740 shares issued and outstanding | - | 1,171,375 | ||||||
Stockholders' equity | ||||||||
Preferred stock; $0.0001 par value; 40,000,000 shares authorized and zero shares issued and outstanding as of March 31, 2014 and 2,342,740 shares Series AA (above) issued and outstanding as of December 31, 2013 | - | - | ||||||
Common stock, $.0001 par value; 51,874,035 and 48,834,916 shares issued and outstanding as of March 31, 2014 and | 5,187 | 4,884 | ||||||
Additional paid in capital | 28,639,958 | 24,541,809 | ||||||
Accumulated deficit | (16,801,973 | ) | (13,366,334 | ) | ||||
Total stockholders' equity | 11,843,172 | 11,180,359 | ||||||
Total liabilities, mezzanine, and stockholders' equity | $ | 14,515,617 | $ | 15,697,408 |
ASSETS | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Current assets | ||||||||
Cash | $ | 1,997,682 | $ | 4,393,299 | ||||
Accounts receivable, net | 601,045 | 898,934 | ||||||
Due from related parties | 19,968 | 34,868 | ||||||
Prepaid expenses | 153,910 | 53,732 | ||||||
Inventories | 506,077 | 268,191 | ||||||
Total current assets | 3,278,682 | 5,649,024 | ||||||
Equipment | ||||||||
Equipment | 4,235,521 | 3,719,344 | ||||||
Leasehold improvements | 201,364 | 7,641 | ||||||
Accumulated depreciation | (521,421 | ) | (328,803 | ) | ||||
3,915,464 | 3,398,182 | |||||||
Construction in process | 3,971,315 | 2,117,001 | ||||||
Total equipment, net | 7,886,779 | 5,515,183 | ||||||
Other assets | ||||||||
Deposits | - | 80,708 | ||||||
Goodwill | 835,295 | 779,303 | ||||||
Other intangible assets, net | 3,567,276 | 3,673,190 | ||||||
Total other assets | 4,402,571 | 4,533,201 | ||||||
Total assets | $ | 15,568,032 | $ | 15,697,408 | ||||
LIABILITIES, MEZZANINE, AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 880,972 | $ | 1,271,674 | ||||
Due to related parties | 557,703 | 582,682 | ||||||
Note payable | 6,702 | 6,504 | ||||||
Capital lease obligation | 308,825 | 285,363 | ||||||
Total current liabilities | 1,754,202 | 2,146,223 | ||||||
Non-current liabilities | ||||||||
Note payable | 121,476 | 9,877 | ||||||
Capital lease obligation | 1,048,783 | 1,189,574 | ||||||
Total non-current liabilities | 1,170,259 | 1,199,451 | ||||||
Total liabilities | 2,924,461 | 3,345,674 | ||||||
Commitments and contingencies | ||||||||
Mandatorily redeemable Series AA convertible preferred stock, 2,342,740 shares issued and outstanding | - | 1,171,375 | ||||||
Stockholders' equity | ||||||||
Preferred stock; $0.0001 par value; 10,000,000 shares authorized and zero shares issued and outstanding as of June 30, 2014 and 2,342,740 Series AA (above) as of December 31, 2013 | - | - | ||||||
Common stock, $.0001 par value; 51,922,009 and 48,834,916 shares issued and outstanding as of June 30, 2014 and December 31, 2013 respectively | 5,192 | 4,884 | ||||||
Additional paid in capital | 30,551,893 | 24,541,809 | ||||||
Accumulated deficit | (17,913,514 | ) | (13,366,334 | ) | ||||
Total stockholders' equity | 12,643,571 | 11,180,359 | ||||||
Total liabilities, mezzanine, and stockholders' equity | $ | 15,568,032 | $ | 15,697,408 |
Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Sales, net | $ | 3,260,031 | $ | 2,650,140 | ||||
Cost of goods sold | 3,290,680 | 2,107,446 | ||||||
Gross (loss) profit | (30,649 | ) | 542,694 | |||||
Operating expenses | ||||||||
Consulting fees | 285,910 | 348,715 | ||||||
Stock-based compensation | 711,532 | - | ||||||
Salaries and wages | 515,154 | 348,557 | ||||||
Legal and professional | 236,301 | 122,176 | ||||||
General and administrative | 430,683 | 296,767 | ||||||
Total operating expenses | 2,179,580 | 1,116,215 | ||||||
Loss from operations | (2,210,229 | ) | (573,521 | ) | ||||
Other (income) and expenses | ||||||||
Interest income | (644 | ) | (957 | ) | ||||
Interest expense | 90,443 | 105,799 | ||||||
Total other income and expenses | 89,799 | 104,842 | ||||||
Loss before provision for income taxes | (2,300,028 | ) | (678,363 | ) | ||||
Provision for income taxes | 3,742 | - | ||||||
Net loss | $ | (2,303,770 | ) | $ | (678,363 | ) | ||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | - | ||||||
Net loss available to common stockholders | $ | (4,547,180 | ) | (678,363 | ) | |||
Basic and diluted loss per share | $ | (0.09 | ) | (0.02 | ) | |||
Weighted average number of common shares outstanding (basic and diluted) | 50,707,479 | 40,564,341 |
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Sales, net | $ | 1,653,041 | $ | 1,232,667 | ||||
Cost of goods sold ($479,507 and $462,900 related party for 2014 and 2013, respectively) | 1,661,423 | 1,165,582 | ||||||
Gross (loss) profit | (8,382 | ) | 67,085 | |||||
Operating expenses | ||||||||
Consulting fees ($20,100 and $24,000 related party for 2014 and 2013, respectively) | 141,166 | 158,742 | ||||||
Share-based compensation | 472,774 | - | ||||||
Salaries and wages | 271,575 | 157,517 | ||||||
Legal and professional | 36,913 | 63,575 | ||||||
General and administrative ($18,533 and $18,692 related party for 2014 and 2013, respectively) | 215,754 | 108,177 | ||||||
Total operating expenses | 1,138,182 | 488,011 | ||||||
Loss from operations | (1,146,564 | ) | (420,926 | ) | ||||
Other (income) and expenses | ||||||||
Interest income | (578 | ) | (528 | ) | ||||
Interest expense ($29,739 and $23,611 related party for 2014 and 2013, respectively) | 44,977 | 58,530 | ||||||
Total other income and expenses | 44,399 | 58,002 | ||||||
Loss before provision for income taxes | (1,190,963 | ) | (478,928 | ) | ||||
Provision for income taxes | 1,266 | - | ||||||
Net loss | $ | (1,192,229 | ) | $ | (478,928 | ) | ||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | - | ||||||
Net loss available to common stockholders | $ | (3,435,639 | ) | (478,928 | ) | |||
Basic and diluted loss per share | $ | (0.07 | ) | (0.01 | ) | |||
Weighted average common shares outstanding (basic and diluted) | 49,486,052 | 38,387,216 |
Additional | Total | |||||||||||||||||||
Common Stock | Paid -In | Accumulated | Stockholders' | |||||||||||||||||
Shares | Par Value | Capital | Deficit | Equity | ||||||||||||||||
Balance, December 31, 2013 | 48,834,916 | $ | 4,884 | $ | 24,541,809 | $ | (13,366,334 | ) | $ | 11,180,359 | ||||||||||
Common shares for acquisition | 204,750 | 20 | 210,873 | 210,893 | ||||||||||||||||
Common shares for note conversion | 2,605,513 | 261 | 3,414,524 | 3,414,785 | ||||||||||||||||
Warrants and options exercised | 72,141 | 7 | 1,673,175 | 1,673,182 | ||||||||||||||||
Share-based compensation | 204,689 | 20 | 711,512 | 711,532 | ||||||||||||||||
Premium on Series AA Preferred conversion to common shares | (2,243,410 | ) | (2,243,410 | ) | ||||||||||||||||
Net loss | (2,303,770 | ) | (2,303,770 | ) | ||||||||||||||||
Balance, June 30, 2014 | 51,922,009 | $ | 5,192 | $ | 30,551,893 | $ | (17,913,514 | ) | $ | 12,643,571 |
Additional | ||||||||||||||||||||
Common Stock | Paid -In | Accumulated | Stockholders' | |||||||||||||||||
Shares | Par Value | Capital | Deficit | Equity | ||||||||||||||||
Balance, December 31, 2013 | 48,834,916 | $ | 4,884 | $ | 24,541,809 | $ | (13,366,334 | ) | $ | 11,180,359 | ||||||||||
Common shares issued for acquisition | 204,750 | 20 | 210,873 | 210,893 | ||||||||||||||||
Common shares issued for note conversion | 2,605,513 | 261 | 3,414,524 | 3,414,785 | ||||||||||||||||
Warrants and options exercised | 24,167 | 2 | (2 | ) | - | |||||||||||||||
Share-based compensation | 204,689 | 20 | 472,754 | 472,774 | ||||||||||||||||
Premium on Series AA Preferred conversion to common shares | (2,243,410 | ) | (2,243,410 | ) | ||||||||||||||||
Net loss | (1,192,229 | ) | (1,192,229 | ) | ||||||||||||||||
Balance, March 31, 2014 (unaudited) | 51,874,035 | $ | 5,187 | $ | 28,639,958 | $ | (16,801,973 | ) | $ | 11,843,172 |
Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Net cash flow from operating activities | ||||||||
Net loss | $ | (2,303,770 | ) | $ | (678,363 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||
Depreciation and amortization | 298,532 | 119,139 | ||||||
Stock-based compensation expense | 711,532 | 17,586 | ||||||
Stock issued for conversion of accrued interest | - | 24,913 | ||||||
Stock issued for lease payment | - | 80,000 | ||||||
(Increase) decrease in assets: | ||||||||
Accounts receivable | 297,889 | (1,386,927 | ) | |||||
Due from related party | 14,900 | - | ||||||
Prepaid expenses | (100,178 | ) | (75,639 | ) | ||||
Inventories | (237,886 | ) | (376,895 | ) | ||||
Deposits | 80,708 | - | ||||||
Increase (decrease) in liabilities: | ||||||||
Accounts payable and accrued expenses | (390,702 | ) | 252,729 | |||||
Due to related party | (24,979 | ) | 900,797 | |||||
Net cash used in operating activities | (1,653,954 | ) | (1,122,660 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of equipment | (554,999 | ) | (448,598 | ) | ||||
Construction in process | (1,854,314 | ) | - | |||||
Net cash used in investing activities | (2,409,313 | ) | (448,598 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowing / (repayment) of debt | 111,797 | (509 | ) | |||||
Repayment of capital lease | (117,329 | ) | (40,866 | ) | ||||
Proceeds from sale of common stock | - | 1,737,826 | ||||||
Stock issuance costs | - | (77,537 | ) | |||||
Proceeds from warrant exercise | 1,673,182 | - | ||||||
Net cash provided by financing activities | 1,667,650 | 1,618,914 | ||||||
Increase (decrease) in cash | (2,395,617 | ) | 47,656 | |||||
Cash at the beginning of the period | 4,393,299 | 1,153,941 | ||||||
Cash at end of the period | $ | 1,997,682 | $ | 1,201,597 | ||||
Supplemental disclosure of cash flow information | ||||||||
Interest paid during period | $ | 90,443 | $ | - | ||||
Taxes paid during period | $ | - | $ | - | ||||
Supplemental disclosure of non-cash items | ||||||||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | |||||||
Common stock issued for acquisition | 210,893 | 188,686 | ||||||
Common stock issued for property, plant and equipment | - | 40,000 | ||||||
Common stock issued for capital lease, principal and interest | - | 65,800 | ||||||
Common stock issued for convertible note, principal and interest | - | 470,000 | ||||||
Series AA Preferred Stock issued for convertible note, principal and interest | - | 1,171,375 | ||||||
Equipment purchased with capital lease | - | 1,714,974 | ||||||
Equipment purchased with debt | - | 20,000 |
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Net cash flow from operating activities | ||||||||
Net loss | $ | (1,192,229 | ) | $ | (478,928 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||
Depreciation and amortization | 133,930 | 56,893 | ||||||
Share-based compensation expense | 472,774 | - | ||||||
Stock issued for conversion of accrued interest | - | 48,524 | ||||||
(Increase) decrease in assets: | ||||||||
Accounts receivable | (270,036 | ) | (596,673 | ) | ||||
Due from related party | 34,868 | - | ||||||
Prepaid expenses | (227,667 | ) | 2,620 | |||||
Inventories | (133,693 | ) | (29,390 | ) | ||||
Deposits | 80,708 | - | ||||||
Increase (decrease) in liabilities: | 86,097 | |||||||
Accounts payable and accrued expenses | (560,001 | ) | 220,638 | |||||
Due to related party | (42,681 | ) | - | |||||
Net cash used in operating activities | (1,704,027 | ) | (690,219 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of equipment | (26,891 | ) | (83,988 | ) | ||||
Construction in process | (1,601,096 | ) | - | |||||
Net cash used in investing activities | (1,627,987 | ) | (83,988 | ) | ||||
Cash flows from financing activities | ||||||||
Repayment of debt | (1,588 | ) | - | |||||
Repayment of capital lease | (68,959 | ) | - | |||||
Proceeds from sale of common stock | - | 1,660,997 | ||||||
Net cash (used) provided by financing activities | (70,547 | ) | 1,660,997 | |||||
Increase (decrease) in cash | (3,402,561 | ) | 886,790 | |||||
Cash at the beginning of the period | 4,393,299 | 1,153,941 | ||||||
Cash at end of the period | $ | 990,738 | $ | 2,040,731 | ||||
Supplemental disclosure of cash flow information | ||||||||
Interest paid during period | $ | 44,977 | $ | 58,530 | ||||
Taxes paid during period | $ | 1,266 | $ | - | ||||
Supplemental disclosure of non-cash items | ||||||||
Redemption of Series AA Preferred by conversion to common shares | 3,414,785 | - | ||||||
Common stock issued for acquisition | 210,893 | 188,686 | ||||||
Common stock issued for property, plant and equipment | - | 40,000 | ||||||
Common stock issued for capital lease, principal and interest | - | 65,800 | ||||||
Common stock issued for convertible note, principal and interest | - | 470,000 | ||||||
Series AA Preferred Stock issued for convertible note, principal and interest | - | 1,171,375 |
2013 | 2012 | |||||||
Beginning balance as of January 1, | $ | 4,892 | - | |||||
Bad debt expense | 44,198 | 4,892 | ||||||
Charge offs, net | (1,163 | ) | - | |||||
Ending balance as of December 31, | $ | 47,927 | 4,892 |
December 31, | 2013 | 2012 | ||||||
Raw materials | $ | 76,165 | $ | 18,039 | ||||
Work in process | 47,106 | 31,569 | ||||||
Finished goods | 144,920 | 9,111 | ||||||
Total inventories | $ | 268,191 | $ | 58,719 |
December 31, | 2013 | 2012 | ||||||
Machinery and equipment | $ | 3,719,344 | $ | 756,047 | ||||
Leasehold improvements | 7,641 | - | ||||||
Accumulated depreciation | (328,803 | ) | (70,641 | ) | ||||
3,398,182 | 685,406 | |||||||
Construction in process | 2,117,001 | - | ||||||
Total property, plant and equipment | $ | 5,515,183 | $ | 685,406 |
Cash | $ | 539,304 | ||
Equity instruments (635,810 common shares of the Company) issued | 894,173 | |||
Assets acquired under capital lease | 1,714,974 | |||
Equity instruments held in escrows (200,000 common shares of the Company) | 224,000 | |||
Fair value of total consideration transferred | $ | 3,372,451 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Financial assets (primarily accounts receivable) | $ | 92,320 | ||
Inventory | 24,234 | |||
Property, plant, and equipment | 2,377,521 | |||
Identifiable intangible assets | 356,500 | |||
Financial liabilities | (97,943 | ) | ||
Total identifiable net assets | 2,752,632 | |||
Goodwill | 619,819 | |||
$ | 3,372,451 |
Revenue | Earnings (Loss) | |||||||
Actual from date of Transaction 12/31/2013 | $ | 3,057,071 | $ | 569,697 | ||||
Pro forma (unaudited) supplemental information as if the Transactions had occurred at the beginning of the period is approximately, as shown below: | ||||||||
Supplemental (unaudited) pro forma for 1/1/2013 - 12/31/13 | $ | 6,420,000 | $ | (3,420,000 | ) | |||
Supplemental (unaudited) pro forma for 1/1/2012 - 12/31/12 | $ | 5,200,000 | $ | (1,275,000 | ) |
Balance at | Balance at | |||||||||||||||||||||
Estimated | December 31, | Current Year | December 31, | Accumulated | ||||||||||||||||||
Useful Life | 2012 | Additions | 2013 | Amortization | Net | |||||||||||||||||
Finite live intangible assets: | ||||||||||||||||||||||
Customer list and trade name | 5 years | $ | - | $ | 24,500 | $ | 24,500 | $ | 1,810 | $ | 22,690 | |||||||||||
Non-compete agreements | 5 years | - | 332,000 | 332,000 | 41,500 | 290,500 | ||||||||||||||||
Intellectual property | 25 years | 3,500,000 | - | 3,500,000 | 140,000 | 3,360,000 | ||||||||||||||||
Total intangible assets | $ | 3,500,000 | $ | 356,500 | $ | 3,856,500 | $ | 183,310 | $ | 3,673,190 | ||||||||||||
Goodwill | Indefinite | $ | 159,484 | $ | 619,819 | $ | 779,303 | $ | - | $ | 779,303 |
For the Year Ending December 31, | Estimated Amortization Expense | |||
2014 | $ | 209,380 | ||
2015 | 209,380 | |||
2016 | 209,380 | |||
2017 | 209,380 | |||
2018 | 166,355 | |||
Thereafter | 2,669,315 | |||
$ | 3,673,190 |
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred tax assets – NOL | $ | 3,480,000 | $ | 2,250,000 | ||||
Valuation allowance | (3,480,000 | ) | (2,250,000 | ) | ||||
Net deferred tax assets | $ | - | $ | - |
Federal statutory tax rate | 35 | % | ||
Permanent difference and valuation allowance | (35 | )% | ||
Effective tax rate | 0 | % |
Year Ended December 31, | Principal | Interest | ||||||
2014 | $ | 285,363 | $ | 109,437 | ||||
2015 | 312,125 | 82,675 | ||||||
2016 | 341,396 | 53,404 | ||||||
2017 | 373,413 | 21,387 | ||||||
2018 | 162,640 | 245 | ||||||
Total minimum lease payments | $ | 1,474,937 | $ | 267,148 |
Year Ended December 31, | ||||
2014 | $ | 6,504 | ||
2015 | 6,905 | |||
2016 | 2,972 | |||
Total minimum note payments | $ | 16,381 |
Number of Common | Value of Common | |||||||
Shares Issued | Shares as Recorded | |||||||
Common Shares for Acquisition | 835,810 | $ | 1,118,173 | |||||
Common Shares for Goods and Services | 793,679 | $ | 553,360 | |||||
Common Shares for Convertible Note | 940,000 | $ | 470,000 | |||||
Common Shares for Cash | 9,357,578 | $ | 8,178,471 | |||||
Warrants and Options Exercised | 757,864 | $ | - |
Weighted | ||||||||
Options for | Average | |||||||
Shares | Exercise Price | |||||||
Outstanding as of December 31, 2011 | 3,717,606 | $ | 0.60 | |||||
Granted | 3,285,000 | 0.59 | ||||||
Exercised | (165,000 | ) | 0.50 | |||||
Forfeited | - | - | ||||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of December 31, 2012 | 6,837,606 | $ | 0.59 | |||||
Outstanding as of December 31, 2012 | 6,837,606 | $ | 0.59 | |||||
Granted | 3,445,900 | 1.00 | ||||||
Exercised | (150,000 | ) | 0.50 | |||||
Forfeited | - | - | ||||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of December 31, 2013 | 10,133,506 | $ | 0.74 |
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Expected volatility | 40 | % | 10 | % | ||||||||
Risk-free interest rate | 0.16 | – | 0.70 | % | 0.60 | – | 0.70 | % | ||||
Expected dividends | 0.00 | % | 0.00 | % | ||||||||
Expected term in years | 3 | – | 5 | 5 | – | 10 |
Weighted | ||||||||
Warrants for | Average | |||||||
Shares | Exercise Price | |||||||
Outstanding as of December 31, 2011 | 4,410,991 | $ | 0.64 | |||||
Granted | 7,946,500 | 1.00 | ||||||
Exercised | (35,000 | ) | 0.50 | |||||
Forfeited | - | - | ||||||
Cancelled | (14,933 | ) | 2.50 | |||||
Expired | - | - | ||||||
Outstanding as of December 31, 2012 | 12,307,558 | $ | 0.86 | |||||
Outstanding as of December 31, 2012 | 12,307,558 | 0.86 | ||||||
Granted | 8,187,817 | 1.31 | ||||||
Exercised | (680,000 | ) | 0.03 | |||||
Forfeited | (284,934 | ) | 0.48 | |||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of December 31, 2013 | 19,530,441 | 1.08 |
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Expected volatility | 40 | % | 10 | % | ||||||||
Risk-free interest rate | 0.60 | – | 0.70 | % | 0.60 | – | 0.70 | % | ||||
Expected dividends | 0.00 | % | 0.00 | % | ||||||||
Expected term in years | 3 | – | 5 | 3 | – | 5 |
Warrants and Options Outstanding | Warrants and Options Exercisable | |||||||||||||||||||||
Range of Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (years) | Range of Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$ | 0.0001 | 1,000,000 | 2.5 | $ | 0.0001 | 1,000,000 | $ | 0.0001 | ||||||||||||||
$ | 0.025 | 680,000 | 0.3 | $ | 0.025 | 680,000 | $ | 0.025 | ||||||||||||||
$ | 0.50 | 6,360,000 | 9.0 | $ | 0.50 | 3,975,000 | $ | 0.50 | ||||||||||||||
$ | 0.625 | 220,000 | 0.1 | $ | 0.625 | 220,000 | $ | 0.625 | ||||||||||||||
$ | 1.00 | 10,420,230 | 9.0 | $ | 1.00 | 10,370,230 | $ | 1.00 | ||||||||||||||
$ | 1.50 | 300,000 | 2.5 | $ | 1.50 | 300,000 | $ | 1.50 | ||||||||||||||
$ | 2.45 | 100,000 | 5.0 | $ | 2.45 | 20,000 | $ | 2.45 | ||||||||||||||
$ | 2.50 | 64,934 | 0.5 | $ | 2.50 | 64,934 | $ | 2.50 | ||||||||||||||
19,145,164 | 16,630,164 |
Warrants and Options Outstanding | Warrants and Options Exercisable | |||||||||||||||||||||
Range of Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (years) | Range of Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$ | 0.0001 | 1,000,000 | 1.4 | $ | 0.0001 | 1,000,000 | 0.0001 | |||||||||||||||
$ | 0.50 | 6,410,800 | 8.1 | $ | 0.50 | 5,182,300 | 0.50 | |||||||||||||||
$ | 1.00 | 15,036,830 | 4.2 | $ | 1.00 | 13,414,330 | 1.00 | |||||||||||||||
$ | 1.25 | 2,912,716 | 2.2 | $ | 1.25 | 2,912,716 | 1.25 | |||||||||||||||
$ | 1.50 | 4,203,601 | 4.7 | $ | 1.50 | 4,203,601 | 1.50 | |||||||||||||||
$ | 2.45 | 100,000 | 8.5 | $ | 2.45 | 40,000 | 2.45 | |||||||||||||||
29,663,947 | 26,752,947 |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | 211,800 | $ | 278,800 | ||||
Monies owed | 87,069 | 12,500 | ||||||
Monies paid | (184,435 | ) | (79,500 | ) | ||||
Ending balance as of December 31, 2013 | $ | 114,434 | $ | 211,800 |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | 41,000 | ||||
Monies owed | 145,011 | 77,000 | ||||||
Monies paid | (128,953 | ) | (118,000 | ) | ||||
Ending balance as of December 31, 2013 | $ | 16,058 | $ | - |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||
Monies owed | 57,272 | - | ||||||
Monies paid | (41,134 | ) | - | |||||
Ending balance as of December 31, 2013 | $ | 16,138 | $ | - |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||
Monies owed | 2,832,046 | - | ||||||
Monies paid | (2,405,994 | ) | - | |||||
Ending balance as of December 31, 2013 | $ | 426,052 | $ | - |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||
Monies owed | 10,000 | - | ||||||
Monies paid | - | - | ||||||
Ending balance as of December 31, 2013 | $ | 10,000 | $ | - |
Year Ended December 31, | ||||
2014 | $ | 652,670 | ||
2015 | 645,687 | |||
2016 | 650,652 | |||
2017 | 564,251 | |||
2018 | 73,097 | |||
Total minimum lease payments | $ | 2,586,357 |
· | Cash and cash equivalents – Financial instruments that subject the Company to credit risk are cash balances maintained in excess of federal depository insurance limits. At December 31, 2013, the Company had $3,828,685 in cash which was not guaranteed by the Federal Deposit Insurance Corporation. To date, the Company has not experienced any losses in such accounts and believes the exposure is minimal. |
· | Major customers and accounts receivable – Major customers represent any customer that accounts for more than 10% of revenues for the year. During 2013, the Company had two customers that accounted for 23% and 29% of revenues and whose accounts receivable balance (unsecured) accounted for approximately 23% and 7% of accounts receivable at December 31, 2013. During 2012, the Company had one customer that accounted for approximately 62% of revenues. |
Number of Common Shares Issued | Value of Common Shares | |||||||
Common Shares for Acquisition | 204,750 | $ | 210,893 | |||||
Common Shares for Performance Plan | 204,689 | $ | 212,877 | |||||
Common Shares for Conversion of Series AA Preferred Shares | 2,605,513 | $ | 1,302,757 | |||||
Warrants and Options Exercised | 24,167 | $ | 26,100 |
CONTENTS | Page |
103 | |
104 | |
105 | |
106 | |
107 |
ASSETS | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Current assets | ||||||||
Cash | $ | 1,997,682 | $ | 4,393,299 | ||||
Accounts receivable, net | 601,045 | 898,934 | ||||||
Due from related parties | 19,968 | 34,868 | ||||||
Prepaid expenses | 153,910 | 53,732 | ||||||
Inventories | 506,077 | 268,191 | ||||||
Total current assets | 3,278,682 | 5,649,024 | ||||||
Equipment | ||||||||
Equipment | 4,235,521 | 3,719,344 | ||||||
Leasehold improvements | 201,364 | 7,641 | ||||||
Accumulated depreciation | (521,421 | ) | (328,803 | ) | ||||
3,915,464 | 3,398,182 | |||||||
Construction in process | 3,971,315 | 2,117,001 | ||||||
Total equipment, net | 7,886,779 | 5,515,183 | ||||||
Other assets | ||||||||
Deposits | - | 80,708 | ||||||
Goodwill | 835,295 | 779,303 | ||||||
Other intangible assets, net | 3,567,276 | 3,673,190 | ||||||
Total other assets | 4,402,571 | 4,533,201 | ||||||
Total assets | $ | 15,568,032 | $ | 15,697,408 | ||||
LIABILITIES, MEZZANINE, AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 880,972 | $ | 1,271,674 | ||||
Due to related parties | 557,703 | 582,682 | ||||||
Note payable | 6,702 | 6,504 | ||||||
Capital lease obligation | 308,825 | 285,363 | ||||||
Total current liabilities | 1,754,202 | 2,146,223 | ||||||
Non-current liabilities | ||||||||
Note payable | 121,476 | 9,877 | ||||||
Capital lease obligation | 1,048,783 | 1,189,574 | ||||||
Total non-current liabilities | 1,170,259 | 1,199,451 | ||||||
Total liabilities | 2,924,461 | 3,345,674 | ||||||
Commitments and contingencies | ||||||||
Mandatorily redeemable Series AA convertible preferred stock, 2,342,740 shares issued and outstanding | - | 1,171,375 | ||||||
Stockholders' equity | ||||||||
Preferred stock; $0.0001 par value; 10,000,000 shares authorized and zero shares issued and outstanding as of June 30, 2014 and 2,342,740 Series AA (above) as of December 31, 2013 | - | - | ||||||
Common stock, $.0001 par value; 51,922,009 and 48,834,916 shares issued and outstanding as of June 30, 2014 and December 31, 2013 respectively | 5,192 | 4,884 | ||||||
Additional paid in capital | 30,551,893 | 24,541,809 | ||||||
Accumulated deficit | (17,913,514 | ) | (13,366,334 | ) | ||||
Total stockholders' equity | 12,643,571 | 11,180,359 | ||||||
Total liabilities, mezzanine, and stockholders' equity | $ | 15,568,032 | $ | 15,697,408 |
Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Sales, net | $ | 3,260,031 | $ | 2,650,140 | ||||
Cost of goods sold | 3,290,680 | 2,107,446 | ||||||
Gross (loss) profit | (30,649 | ) | 542,694 | |||||
Operating expenses | ||||||||
Consulting fees | 285,910 | 348,715 | ||||||
Stock-based compensation | 711,532 | - | ||||||
Salaries and wages | 515,154 | 348,557 | ||||||
Legal and professional | 236,301 | 122,176 | ||||||
General and administrative | 430,683 | 296,767 | ||||||
Total operating expenses | 2,179,580 | 1,116,215 | ||||||
Loss from operations | (2,210,229 | ) | (573,521 | ) | ||||
Other (income) and expenses | ||||||||
Interest income | (644 | ) | (957 | ) | ||||
Interest expense | 90,443 | 105,799 | ||||||
Total other income and expenses | 89,799 | 104,842 | ||||||
Loss before provision for income taxes | (2,300,028 | ) | (678,363 | ) | ||||
Provision for income taxes | 3,742 | - | ||||||
Net loss | $ | (2,303,770 | ) | $ | (678,363 | ) | ||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | - | ||||||
Net loss available to common stockholders | $ | (4,547,180 | ) | (678,363 | ) | |||
Basic and diluted loss per share | $ | (0.09 | ) | (0.02 | ) | |||
Weighted average number of common shares outstanding (basic and diluted) | 50,707,479 | 40,564,341 |
Additional | Total | |||||||||||||||||||
Common Stock | Paid -In | Accumulated | Stockholders' | |||||||||||||||||
Shares | Par Value | Capital | Deficit | Equity | ||||||||||||||||
Balance, December 31, 2013 | 48,834,916 | $ | 4,884 | $ | 24,541,809 | $ | (13,366,334 | ) | $ | 11,180,359 | ||||||||||
Common shares for acquisition | 204,750 | 20 | 210,873 | 210,893 | ||||||||||||||||
Common shares for note conversion | 2,605,513 | 261 | 3,414,524 | 3,414,785 | ||||||||||||||||
Warrants and options exercised | 72,141 | 7 | 1,673,175 | 1,673,182 | ||||||||||||||||
Share-based compensation | 204,689 | 20 | 711,512 | 711,532 | ||||||||||||||||
Premium on Series AA Preferred conversion to common shares | (2,243,410 | ) | (2,243,410 | ) | ||||||||||||||||
Net loss | (2,303,770 | ) | (2,303,770 | ) | ||||||||||||||||
Balance, June 30, 2014 | 51,922,009 | $ | 5,192 | $ | 30,551,893 | $ | (17,913,514 | ) | $ | 12,643,571 |
Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Net cash flow from operating activities | ||||||||
Net loss | $ | (2,303,770 | ) | $ | (678,363 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||
Depreciation and amortization | 298,532 | 119,139 | ||||||
Stock-based compensation expense | 711,532 | 17,586 | ||||||
Stock issued for conversion of accrued interest | - | 24,913 | ||||||
Stock issued for lease payment | - | 80,000 | ||||||
(Increase) decrease in assets: | ||||||||
Accounts receivable | 297,889 | (1,386,927 | ) | |||||
Due from related party | 14,900 | - | ||||||
Prepaid expenses | (100,178 | ) | (75,639 | ) | ||||
Inventories | (237,886 | ) | (376,895 | ) | ||||
Deposits | 80,708 | - | ||||||
Increase (decrease) in liabilities: | ||||||||
Accounts payable and accrued expenses | (390,702 | ) | 252,729 | |||||
Due to related party | (24,979 | ) | 900,797 | |||||
Net cash used in operating activities | (1,653,954 | ) | (1,122,660 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of equipment | (554,999 | ) | (448,598 | ) | ||||
Construction in process | (1,854,314 | ) | - | |||||
Net cash used in investing activities | (2,409,313 | ) | (448,598 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowing / (repayment) of debt | 111,797 | (509 | ) | |||||
Repayment of capital lease | (117,329 | ) | (40,866 | ) | ||||
Proceeds from sale of common stock | - | 1,737,826 | ||||||
Stock issuance costs | - | (77,537 | ) | |||||
Proceeds from warrant exercise | 1,673,182 | - | ||||||
Net cash provided by financing activities | 1,667,650 | 1,618,914 | ||||||
Increase (decrease) in cash | (2,395,617 | ) | 47,656 | |||||
Cash at the beginning of the period | 4,393,299 | 1,153,941 | ||||||
Cash at end of the period | $ | 1,997,682 | $ | 1,201,597 | ||||
Supplemental disclosure of cash flow information | ||||||||
Interest paid during period | $ | 90,443 | $ | - | ||||
Taxes paid during period | $ | - | $ | - | ||||
Supplemental disclosure of non-cash items | ||||||||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | |||||||
Common stock issued for acquisition | 210,893 | 188,686 | ||||||
Common stock issued for property, plant and equipment | - | 40,000 | ||||||
Common stock issued for capital lease, principal and interest | - | 65,800 | ||||||
Common stock issued for convertible note, principal and interest | - | 470,000 | ||||||
Series AA Preferred Stock issued for convertible note, principal and interest | - | 1,171,375 | ||||||
Equipment purchased with capital lease | - | 1,714,974 | ||||||
Equipment purchased with debt | - | 20,000 |
March 31, 2014 (unaudited) | March 31, 2013 (unaudited) | |||||||
Anti-dilutive securities excluded from diluted loss per share: | ||||||||
Stock options | 10,188,506 | 6,834,406 | ||||||
Warrants | 22,135,954 | 16,739,136 | ||||||
Convertible Series AA preferred stock | - | 2,342,750 | ||||||
Total | 32,324,460 | 25,916,292 |
2013 | 2012 | |||||||
Beginning balance as of January 1, | $ | 4,892 | - | |||||
Bad debt expense | 44,198 | 4,892 | ||||||
Charge offs, net | (1,163 | ) | - | |||||
Ending balance as of December 31, | $ | 47,927 | 4,892 |
March 31, | 2014 | |||
Raw materials | $ | 133,289 | ||
Work in process | 69,777 | |||
Finished goods | 198,818 | |||
Total inventories (unaudited) | $ | 401,884 |
December 31, | 2013 | 2012 | ||||||
Raw materials | $ | 76,165 | $ | 18,039 | ||||
Work in process | 47,106 | 31,569 | ||||||
Finished goods | 144,920 | 9,111 | ||||||
Total inventories | $ | 268,191 | $ | 58,719 |
March 31, | 2014 | |||
Machinery and equipment | $ | 3,901,137 | ||
Leasehold improvements | 7,641 | |||
Accumulated depreciation | (409,276 | ) | ||
3,499,502 | ||||
Construction in process | 3,718,097 | |||
Total property, plant and equipment, net (unaudited) | $ | 7,217,599 |
December 31, | 2013 | 2012 | ||||||
Machinery and equipment | $ | 3,719,344 | $ | 756,047 | ||||
Leasehold improvements | 7,641 | - | ||||||
Accumulated depreciation | (328,803 | ) | (70,641 | ) | ||||
3,398,182 | 685,406 | |||||||
Construction in process | 2,117,001 | - | ||||||
Total property, plant and equipment | $ | 5,515,183 | $ | 685,406 |
Cash | $ | 539,304 | ||
Equity instruments (635,810 common shares of the Company) issued | 894,173 | |||
Assets acquired under capital lease | 1,714,974 | |||
Equity instruments held in escrows (200,000 common shares of the Company) | 224,000 | |||
Fair value of total consideration transferred | $ | 3,372,451 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Financial assets (primarily accounts receivable) | $ | 92,320 | ||
Inventory | 24,234 | |||
Property, plant, and equipment | 2,377,521 | |||
Identifiable intangible assets | 356,500 | |||
Financial liabilities | (97,943 | ) | ||
Total identifiable net assets | 2,752,632 | |||
Goodwill | 619,819 | |||
$ | 3,372,451 |
Cash | $ | 50,000 | ||
Equity instruments (104,750 common shares of the Company) issued | 107,893 | |||
Equity instruments held in escrows (100,000 common shares of the Company) | 103,000 | |||
Fair value of total consideration transferred | $ | 260,893 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Property, plant, and equipment | $ | 204,901 | ||
Total identifiable net assets | 204,901 | |||
Goodwill | 55,992 | |||
$ | 260,893 |
Revenue | Earnings (Loss) | |||||||
Actual from date of Transaction 12/31/2013 | $ | 3,057,071 | $ | 569,697 | ||||
Pro forma (unaudited) supplemental information as if the Transactions had occurred at the beginning of the period is approximately, as shown below: | ||||||||
Supplemental (unaudited) pro forma for 1/1/2013 - 12/31/13 | $ | 6,420,000 | $ | (3,420,000 | ) | |||
Supplemental (unaudited) pro forma for 1/1/2012 - 12/31/12 | $ | 5,200,000 | $ | (1,275,000 | ) |
Balance at | Balance at | Balance at | Balance at | ||||||||||||||||||||||||||||||||||||||||
Estimated | December 31, | Current Year | March 31, | Accumulated | Estimated | December 31, | Current Year | December 31, | Accumulated | ||||||||||||||||||||||||||||||||||
Useful Life | 2013 | Additions | 2014 (unaudited) | Amortization | Net | Useful Life | 2012 | Additions | 2013 | Amortization | Net | ||||||||||||||||||||||||||||||||
Finite live intangible assets: | |||||||||||||||||||||||||||||||||||||||||||
Customer list and trade name | 5 years | $ | 24,500 | $ | - | $ | 24,500 | $ | 3,168 | $ | 21,332 | 5 years | $ | - | $ | 24,500 | $ | 24,500 | $ | 1,810 | $ | 22,690 | |||||||||||||||||||||
Non-compete agreements | 5 years | 332,000 | - | 332,000 | 58,600 | 273,400 | 5 years | - | 332,000 | 332,000 | 41,500 | 290,500 | |||||||||||||||||||||||||||||||
Intellectual property | 25 years | 3,500,000 | - | 3,500,000 | 175,000 | 3,325,000 | 25 years | 3,500,000 | - | 3,500,000 | 140,000 | 3,360,000 | |||||||||||||||||||||||||||||||
Total intangible assets | $ | 3,856,500 | $ | - | $ | 3,856,500 | $ | 236,768 | $ | 3,619,732 | $ | 3,500,000 | $ | 356,500 | $ | 3,856,500 | $ | 183,310 | $ | 3,673,190 | |||||||||||||||||||||||
�� | |||||||||||||||||||||||||||||||||||||||||||
Goodwill | Indefinite | $ | 779,303 | $ | 55,992 | $ | 835,295 | $ | - | $ | 835,295 | Indefinite | $ | 159,484 | $ | 619,819 | $ | 779,303 | $ | - | $ | 779,303 |
For the Year Ending December 31, | Estimated Amortization Expense | |||
2014 | $ | 155,922 | ||
2015 | 209,380 | |||
2016 | 209,380 | |||
2017 | 209,380 | |||
2018 | 166,355 | |||
Thereafter | 2,669,315 | |||
$ | 3,619,732 |
For the Year Ending December 31, | Estimated Amortization Expense | |||
2014 | $ | 209,380 | ||
2015 | 209,380 | |||
2016 | 209,380 | |||
2017 | 209,380 | |||
2018 | 166,355 | |||
Thereafter | 2,669,315 | |||
$ | 3,673,190 |
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred tax assets – NOL | $ | 3,480,000 | $ | 2,250,000 | ||||
Valuation allowance | (3,480,000 | ) | (2,250,000 | ) | ||||
Net deferred tax assets | $ | - | $ | - |
Federal statutory tax rate | 35 | % | ||
Permanent difference and valuation allowance | (35 | )% | ||
Effective tax rate | 0 | % |
Year Ended December 31, | Principal | Interest | ||||||
2014 | $ | 285,363 | $ | 109,437 | ||||
2015 | 312,125 | 82,675 | ||||||
2016 | 341,396 | 53,404 | ||||||
2017 | 373,413 | 21,387 | ||||||
2018 | 162,640 | 245 | ||||||
Total minimum lease payments | $ | 1,474,937 | $ | 267,148 |
Year Ended December 31, | ||||
2014 | $ | 6,504 | ||
2015 | 6,905 | |||
2016 | 2,972 | |||
Total minimum note payments | $ | 16,381 |
Number of Common Shares Issued | Value of Common Shares | |||||||
Common Shares for Acquisition | 204,750 | $ | 210,893 | |||||
Common Shares for Performance Plan | 204,689 | $ | 334,534 | |||||
Common Shares for Conversion of Series AA Preferred Shares | 2,605,513 | $ | 2,657,623 | |||||
Warrants and Options Exercised | 24,167 | $ | 26,100 |
Number of Common | Value of Common | |||||||
Shares Issued | Shares as Recorded | |||||||
Common Shares for Acquisition | 835,810 | $ | 1,118,173 | |||||
Common Shares for Goods and Services | 793,679 | $ | 553,360 | |||||
Common Shares for Convertible Note | 940,000 | $ | 470,000 | |||||
Common Shares for Cash | 9,357,578 | $ | 8,178,471 | |||||
Warrants and Options Exercised | 757,864 | $ | - |
Weighted | Weighted | |||||||||||||||
Options for | Average | Options for | Average | |||||||||||||
Shares | Exercise Price | Shares | Exercise Price | |||||||||||||
Outstanding as of December 31, 2013 | 10,133,506 | $ | 0.74 | |||||||||||||
Outstanding as of December 31, 2011 | 3,717,606 | $ | 0.60 | |||||||||||||
Granted | 100,000 | 1.04 | 3,285,000 | 0.59 | ||||||||||||
Exercised | (45,000 | ) | 0.72 | (165,000 | ) | 0.50 | ||||||||||
Forfeited | - | - | - | - | ||||||||||||
Cancelled | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding as of March 31, 2014 | 10,188,506 | $ | 0.74 | |||||||||||||
Outstanding as of December 31, 2012 | 6,837,606 | $ | 0.59 | |||||||||||||
Outstanding as of December 31, 2012 | 6,837,606 | $ | 0.59 | |||||||||||||
Granted | 3,445,900 | 1.00 | ||||||||||||||
Exercised | (150,000 | ) | 0.50 | |||||||||||||
Forfeited | - | - | ||||||||||||||
Cancelled | - | - | ||||||||||||||
Expired | - | - | ||||||||||||||
Outstanding as of December 31, 2013 | 10,133,506 | $ | 0.74 |
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Expected volatility | 40 | % | 10 | % | ||||||||
Risk-free interest rate | 0.16 | – | 0.70 | % | 0.60 | – | 0.70 | % | ||||
Expected dividends | 0.00 | % | 0.00 | % | ||||||||
Expected term in years | 3 | – | 5 | 5 | – | 10 |
Weighted | Weighted | |||||||||||||||
Warrants for | Average | Warrants for | Average | |||||||||||||
Shares | Exercise Price | Shares | Exercise Price | |||||||||||||
Outstanding as of December 31, 2013 | 19,530,441 | $ | 1.08 | |||||||||||||
Outstanding as of December 31, 2011 | 4,410,991 | $ | 0.64 | |||||||||||||
Granted | 2,605,513 | 1.00 | 7,946,500 | 1.00 | ||||||||||||
Exercised | - | - | (35,000 | ) | 0.50 | |||||||||||
Forfeited | - | - | - | - | ||||||||||||
Cancelled | - | - | (14,933 | ) | 2.50 | |||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding as of March 31, 2014 (Unaudited) | 22,135,954 | $ | 1.07 | |||||||||||||
Outstanding as of December 31, 2012 | 12,307,558 | $ | 0.86 | |||||||||||||
Outstanding as of December 31, 2012 | 12,307,558 | 0.86 | ||||||||||||||
Granted | 8,187,817 | 1.31 | ||||||||||||||
Exercised | (680,000 | ) | 0.03 | |||||||||||||
Forfeited | (284,934 | ) | 0.48 | |||||||||||||
Cancelled | - | - | ||||||||||||||
Expired | - | - | ||||||||||||||
Outstanding as of December 31, 2013 | 19,530,441 | 1.08 |
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Expected volatility | 40 | % | 10 | % | ||||||||
Risk-free interest rate | 0.60 | – | 0.70 | % | 0.60 | – | 0.70 | % | ||||
Expected dividends | 0.00 | % | 0.00 | % | ||||||||
Expected term in years | 3 | – | 5 | 3 | – | 5 |
Warrants and Options Outstanding | Warrants and Options Exercisable | |||||||||||||||||||||
Range of Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (years) | Range of Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$ | 0.0001 | 1,000,000 | 2.5 | $ | 0.0001 | 1,000,000 | $ | 0.0001 | ||||||||||||||
$ | 0.025 | 680,000 | 0.3 | $ | 0.025 | 680,000 | $ | 0.025 | ||||||||||||||
$ | 0.50 | 6,360,000 | 9.0 | $ | 0.50 | 3,975,000 | $ | 0.50 | ||||||||||||||
$ | 0.625 | 220,000 | 0.1 | $ | 0.625 | 220,000 | $ | 0.625 | ||||||||||||||
$ | 1.00 | 10,420,230 | 9.0 | $ | 1.00 | 10,370,230 | $ | 1.00 | ||||||||||||||
$ | 1.50 | 300,000 | 2.5 | $ | 1.50 | 300,000 | $ | 1.50 | ||||||||||||||
$ | 2.45 | 100,000 | 5.0 | $ | 2.45 | 20,000 | $ | 2.45 | ||||||||||||||
$ | 2.50 | 64,934 | 0.5 | $ | 2.50 | 64,934 | $ | 2.50 | ||||||||||||||
19,145,164 | 16,630,164 |
Warrants and Options Outstanding | Warrants and Options Exercisable | |||||||||||||||||||||
Range of Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (years) | Range of Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||||||||
$ | 0.0001 | 1,000,000 | 1.4 | $ | 0.0001 | 1,000,000 | 0.0001 | |||||||||||||||
$ | 0.50 | 6,410,800 | 8.1 | $ | 0.50 | 5,182,300 | 0.50 | |||||||||||||||
$ | 1.00 | 15,036,830 | 4.2 | $ | 1.00 | 13,414,330 | 1.00 | |||||||||||||||
$ | 1.25 | 2,912,716 | 2.2 | $ | 1.25 | 2,912,716 | 1.25 | |||||||||||||||
$ | 1.50 | 4,203,601 | 4.7 | $ | 1.50 | 4,203,601 | 1.50 | |||||||||||||||
$ | 2.45 | 100,000 | 8.5 | $ | 2.45 | 40,000 | 2.45 | |||||||||||||||
29,663,947 | 26,752,947 |
2014 | 2013 | 2012 | ||||||||||
Beginning balance as of December 31, 2013 | $ | 114,434 | ||||||||||
Beginning balance as of December 31, 2012 | $ | 211,800 | $ | 278,800 | ||||||||
Monies owed | 7,679 | 87,069 | 12,500 | |||||||||
Monies paid | (22,113 | ) | (184,435 | ) | (79,500 | ) | ||||||
Ending balance as of March 31, 2014 (Unaudited) | $ | 100,000 | ||||||||||
Ending balance as of December 31, 2013 | $ | 114,434 | $ | 211,800 |
2014 | 2013 | 2012 | ||||||||||
Beginning balance as of December 31, 2013 | $ | 16,058 | ||||||||||
Beginning balance as of December 31, 2012 | $ | - | $ | 41,000 | ||||||||
Monies owed | 23,113 | 145,011 | 77,000 | |||||||||
Monies paid | (39,171 | ) | (128,953 | ) | (118,000 | ) | ||||||
Ending balance as of March 31, 2014 (Unaudited) | $ | - | ||||||||||
Ending balance as of December 31, 2013 | $ | 16,058 | $ | - |
2014 | ||||
Beginning balance as of December 31, 2013 | $ | 16,138 | ||
Monies owed | - | |||
Monies paid | (16,138 | ) | ||
Ending balance as of March 31, 2014 | $ | - |
2013 | 2012 | |||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||
Monies owed | 57,272 | - | ||||||
Monies paid | (41,134 | ) | - | |||||
Ending balance as of December 31, 2013 | $ | 16,138 | $ | - |
2014 | 2013 | 2012 | ||||||||||
Beginning balance as of December 31, 2013 | $ | 426,052 | ||||||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||||||
Monies owed | 593,100 | 2,832,046 | - | |||||||||
Monies paid | (579,151 | ) | (2,405,994 | ) | - | |||||||
Ending balance as of March 31, 2014 (Unaudited) | $ | 440,001 | ||||||||||
Ending balance as of December 31, 2013 | $ | 426,052 | $ | - |
2014 | 2013 | 2012 | ||||||||||
Beginning balance as of December 31, 2013 | $ | 10,000 | ||||||||||
Beginning balance as of December 31, 2012 | $ | - | $ | - | ||||||||
Monies owed | 7,500 | 10,000 | - | |||||||||
Monies paid | (17,500 | ) | - | - | ||||||||
Ending balance as of March 31, 2014 (Unaudited) | $ | - | ||||||||||
Ending balance as of December 31, 2013 | $ | 10,000 | $ | - |
Year Ended December 31, | ||||
2014 | $ | 652,670 | ||
2015 | 645,687 | |||
2016 | 650,652 | |||
2017 | 564,251 | |||
2018 | 73,097 | |||
Total minimum lease payments | $ | 2,586,357 |
· | Cash and cash equivalents – Financial instruments that subject the Company to credit risk are cash balances maintained in excess of federal depository insurance limits. At December 31, 2013, the Company had $3,828,685 in cash which was not guaranteed by the Federal Deposit Insurance Corporation. To date, the Company has not experienced any losses in such accounts and believes the exposure is minimal. |
· | Major customers and accounts receivable – Major customers represent any customer that accounts for more than 10% of revenues for the year. During 2013, the Company had two customers that accounted for 23% and 29% of revenues and whose accounts receivable balance (unsecured) accounted for approximately 23% and 7% of accounts receivable at December 31, 2013. During 2012, the Company had one customer that accounted for approximately 62% of revenues. |
Number of Common Shares Issued | Value of Common Shares | |||||||
Common Shares for Acquisition | 204,750 | $ | 210,893 | |||||
Common Shares for Performance Plan | 204,689 | $ | 212,877 | |||||
Common Shares for Conversion of Series AA Preferred Shares | 2,605,513 | $ | 1,302,757 | |||||
Warrants and Options Exercised | 24,167 | $ | 26,100 |
CONTENTS | Page |
103 | |
104 | |
105 | |
106 | |
107 |
ASSETS | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Current assets | ||||||||
Cash | $ | 1,997,682 | $ | 4,393,299 | ||||
Accounts receivable, net | 601,045 | 898,934 | ||||||
Due from related parties | 19,968 | 34,868 | ||||||
Prepaid expenses | 153,910 | 53,732 | ||||||
Inventories | 506,077 | 268,191 | ||||||
Total current assets | 3,278,682 | 5,649,024 | ||||||
Equipment | ||||||||
Equipment | 4,235,521 | 3,719,344 | ||||||
Leasehold improvements | 201,364 | 7,641 | ||||||
Accumulated depreciation | (521,421 | ) | (328,803 | ) | ||||
3,915,464 | 3,398,182 | |||||||
Construction in process | 3,971,315 | 2,117,001 | ||||||
Total equipment, net | 7,886,779 | 5,515,183 | ||||||
Other assets | ||||||||
Deposits | - | 80,708 | ||||||
Goodwill | 835,295 | 779,303 | ||||||
Other intangible assets, net | 3,567,276 | 3,673,190 | ||||||
Total other assets | 4,402,571 | 4,533,201 | ||||||
Total assets | $ | 15,568,032 | $ | 15,697,408 | ||||
LIABILITIES, MEZZANINE, AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 880,972 | $ | 1,271,674 | ||||
Due to related parties | 557,703 | 582,682 | ||||||
Note payable | 6,702 | 6,504 | ||||||
Capital lease obligation | 308,825 | 285,363 | ||||||
Total current liabilities | 1,754,202 | 2,146,223 | ||||||
Non-current liabilities | ||||||||
Note payable | 121,476 | 9,877 | ||||||
Capital lease obligation | 1,048,783 | 1,189,574 | ||||||
Total non-current liabilities | 1,170,259 | 1,199,451 | ||||||
Total liabilities | 2,924,461 | 3,345,674 | ||||||
Commitments and contingencies | ||||||||
Mandatorily redeemable Series AA convertible preferred stock, 2,342,740 shares issued and outstanding | - | 1,171,375 | ||||||
Stockholders' equity | ||||||||
Preferred stock; $0.0001 par value; 10,000,000 shares authorized and zero shares issued and outstanding as of June 30, 2014 and 2,342,740 Series AA (above) as of December 31, 2013 | - | - | ||||||
Common stock, $.0001 par value; 51,922,009 and 48,834,916 shares issued and outstanding as of June 30, 2014 and December 31, 2013 respectively | 5,192 | 4,884 | ||||||
Additional paid in capital | 30,551,893 | 24,541,809 | ||||||
Accumulated deficit | (17,913,514 | ) | (13,366,334 | ) | ||||
Total stockholders' equity | 12,643,571 | 11,180,359 | ||||||
Total liabilities, mezzanine, and stockholders' equity | $ | 15,568,032 | $ | 15,697,408 |
Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Sales, net | $ | 3,260,031 | $ | 2,650,140 | ||||
Cost of goods sold | 3,290,680 | 2,107,446 | ||||||
Gross (loss) profit | (30,649 | ) | 542,694 | |||||
Operating expenses | ||||||||
Consulting fees | 285,910 | 348,715 | ||||||
Stock-based compensation | 711,532 | - | ||||||
Salaries and wages | 515,154 | 348,557 | ||||||
Legal and professional | 236,301 | 122,176 | ||||||
General and administrative | 430,683 | 296,767 | ||||||
Total operating expenses | 2,179,580 | 1,116,215 | ||||||
Loss from operations | (2,210,229 | ) | (573,521 | ) | ||||
Other (income) and expenses | ||||||||
Interest income | (644 | ) | (957 | ) | ||||
Interest expense | 90,443 | 105,799 | ||||||
Total other income and expenses | 89,799 | 104,842 | ||||||
Loss before provision for income taxes | (2,300,028 | ) | (678,363 | ) | ||||
Provision for income taxes | 3,742 | - | ||||||
Net loss | $ | (2,303,770 | ) | $ | (678,363 | ) | ||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | - | ||||||
Net loss available to common stockholders | $ | (4,547,180 | ) | (678,363 | ) | |||
Basic and diluted loss per share | $ | (0.09 | ) | (0.02 | ) | |||
Weighted average number of common shares outstanding (basic and diluted) | 50,707,479 | 40,564,341 |
Additional | Total | |||||||||||||||||||
Common Stock | Paid -In | Accumulated | Stockholders' | |||||||||||||||||
Shares | Par Value | Capital | Deficit | Equity | ||||||||||||||||
Balance, December 31, 2013 | 48,834,916 | $ | 4,884 | $ | 24,541,809 | $ | (13,366,334 | ) | $ | 11,180,359 | ||||||||||
Common shares for acquisition | 204,750 | 20 | 210,873 | 210,893 | ||||||||||||||||
Common shares for note conversion | 2,605,513 | 261 | 3,414,524 | 3,414,785 | ||||||||||||||||
Warrants and options exercised | 72,141 | 7 | 1,673,175 | 1,673,182 | ||||||||||||||||
Share-based compensation | 204,689 | 20 | 711,512 | 711,532 | ||||||||||||||||
Premium on Series AA Preferred conversion to common shares | (2,243,410 | ) | (2,243,410 | ) | ||||||||||||||||
Net loss | (2,303,770 | ) | (2,303,770 | ) | ||||||||||||||||
Balance, June 30, 2014 | 51,922,009 | $ | 5,192 | $ | 30,551,893 | $ | (17,913,514 | ) | $ | 12,643,571 |
Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Net cash flow from operating activities | ||||||||
Net loss | $ | (2,303,770 | ) | $ | (678,363 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||
Depreciation and amortization | 298,532 | 119,139 | ||||||
Stock-based compensation expense | 711,532 | 17,586 | ||||||
Stock issued for conversion of accrued interest | - | 24,913 | ||||||
Stock issued for lease payment | - | 80,000 | ||||||
(Increase) decrease in assets: | ||||||||
Accounts receivable | 297,889 | (1,386,927 | ) | |||||
Due from related party | 14,900 | - | ||||||
Prepaid expenses | (100,178 | ) | (75,639 | ) | ||||
Inventories | (237,886 | ) | (376,895 | ) | ||||
Deposits | 80,708 | - | ||||||
Increase (decrease) in liabilities: | ||||||||
Accounts payable and accrued expenses | (390,702 | ) | 252,729 | |||||
Due to related party | (24,979 | ) | 900,797 | |||||
Net cash used in operating activities | (1,653,954 | ) | (1,122,660 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of equipment | (554,999 | ) | (448,598 | ) | ||||
Construction in process | (1,854,314 | ) | - | |||||
Net cash used in investing activities | (2,409,313 | ) | (448,598 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowing / (repayment) of debt | 111,797 | (509 | ) | |||||
Repayment of capital lease | (117,329 | ) | (40,866 | ) | ||||
Proceeds from sale of common stock | - | 1,737,826 | ||||||
Stock issuance costs | - | (77,537 | ) | |||||
Proceeds from warrant exercise | 1,673,182 | - | ||||||
Net cash provided by financing activities | 1,667,650 | 1,618,914 | ||||||
Increase (decrease) in cash | (2,395,617 | ) | 47,656 | |||||
Cash at the beginning of the period | 4,393,299 | 1,153,941 | ||||||
Cash at end of the period | $ | 1,997,682 | $ | 1,201,597 | ||||
Supplemental disclosure of cash flow information | ||||||||
Interest paid during period | $ | 90,443 | $ | - | ||||
Taxes paid during period | $ | - | $ | - | ||||
Supplemental disclosure of non-cash items | ||||||||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | |||||||
Common stock issued for acquisition | 210,893 | 188,686 | ||||||
Common stock issued for property, plant and equipment | - | 40,000 | ||||||
Common stock issued for capital lease, principal and interest | - | 65,800 | ||||||
Common stock issued for convertible note, principal and interest | - | 470,000 | ||||||
Series AA Preferred Stock issued for convertible note, principal and interest | - | 1,171,375 | ||||||
Equipment purchased with capital lease | - | 1,714,974 | ||||||
Equipment purchased with debt | - | 20,000 |
June 30, | 2014 | |||
Raw materials | $ | 181,194 | ||
Work in process | 119,474 | |||
Finished goods | 205,409 | |||
Total inventories (unaudited) | $ | 506,077 |
Weighted | ||||||||
Options for | Average | |||||||
Shares | Exercise Price | |||||||
Outstanding as of December 31, 2013 | 10,133,506 | $ | 0.74 | |||||
Granted | 537,172 | 0.75 | ||||||
Exercised | (146,250 | ) | 0.77 | |||||
Forfeited | - | - | ||||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of June 30, 2014 (unaudited) | 10,524,428 | $ | 0.74 |
Weighted | ||||||||
Warrants for | Average | |||||||
Shares | Exercise Price | |||||||
Outstanding as of December 31, 2013 | 19,530,441 | $ | 1.08 | |||||
Granted | 2,705,513 | 1.00 | ||||||
Exercised | - | - | ||||||
Forfeited | - | - | ||||||
Cancelled | - | - | ||||||
Expired | - | - | ||||||
Outstanding as of June 30, 2014 (Unaudited) | 22,235,954 | $ | 1.07 |
Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Cost of goods sold | 882,668 | 1,002,139 | ||||||
Operating expenses | 96,958 | 114,690 | ||||||
Interest expense | 87,916 | 82,834 |
2014 | ||||
Beginning balance as of December 31, 2013 | $ | 114,434 | ||
Monies owed | 7,679 | |||
Monies paid | (22,113 | ) | ||
Ending balance as of June 30, 2014 (Unaudited) | $ | 100,000 |
2014 | ||||
Beginning balance as of December 31, 2013 | $ | 16,058 | ||
Monies owed | 53,698 | |||
Monies paid | (68,776 | ) | ||
Ending balance as of June 30, 2014 (Unaudited) | $ | 980 |
2014 | ||||
Beginning balance as of December 31, 2013 | $ | 426,052 | ||
Monies owed | 1,046,494 | |||
Monies paid | (1,015,823 | ) | ||
Ending balance as of June 30, 2014 (Unaudited) | $ | 456,723 |
SEC Registration Fee | $ | 4,450.72 | ||
Printing Fees and Expenses | $ | 3,000.00 | ||
Accounting Fees and Expenses | $ | 5,000.00 | ||
Legal Fees and Expenses | $ | 7,500.00 | ||
Total | $ | 19,950.72 |
SEC Registration Fee | $ | 3 , 417 . 29 | ||
Printing Fees and Expenses | $ | 3,000.00 | ||
Accounting Fees and Expenses | $ | 5,000.00 | ||
Legal Fees and Expenses | $ | 7,500.00 | ||
Total | $ | 18 , 91 7. 29 |
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
(i) | To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; |
(ii) | to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
(iii) | to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. |
(2) | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(4) | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
(5) | Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. |
Pursuant to the requirement of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Phoenix, State of Arizona, on | ||
GLYECO, INC. | ||
By | /s/ John Lorenz | |
John Lorenz President, Chief Executive Officer and Chairman (Principal Executive Officer) |
Signature | Capacity | Date | ||
/s/ John Lorenz | ||||
John Lorenz | President, Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) | September 9 , 2014 | ||
/s/ Alicia Williams Young | ||||
Alicia Williams Young | Chief Financial Officer, Secretary, and VP of Internal Operations | September 9 , 2014 | ||
(Principal Financial Officer and Principal Accounting Officer) | ||||
/s/ | ||||
Michael Jaap | Director | September 9 , 2014 | ||
/s/ | ||||
Richard Q. Opler | Director | September 9 , 2014 | ||
/s/ | ||||
Keri Smith | Director | September 9 , 2014 |
/s/ | ||||
Dwight Mamanteo | Director | September 9 , 2014 |
* /s/ John Lorenz | ||||
John Lorenz, as attorney-in-fact | ||||
Exhibit No. | Description | |
2.1(1) | Agreement and Plan of Merger, dated October 31, 2011, between Environmental Credits, Ltd. and GlyEco, Inc., effective November 21, 2011 | |
2.2(1) | Agreement and Plan of Merger, dated November 21, 2011, by and among GlyEco, Inc., GRT Acquisition, Inc. and Global Recycling Technologies, Ltd. | |
3.1(1) | Articles of Incorporation of GlyEco, Inc., dated and filed with the Secretary of state of Nevada on October 21, 2011 | |
3.2(1) | Certificate of Incorporation of GRT Acquisition, Inc., dated November 3, 2011, filed with the Secretary of State on November 7, 2011 | |
3.3(1) | Certificate of Incorporation of Global Recycling Technologies, Ltd., dated and filed with the Secretary of State of Delaware on January 28, 2008 | |
3.4(1) | First and Amended Certificate of Incorporation of Global Recycling Technologies, Ltd., dated and filed with the Secretary of State of Delaware on October 10, 2008 | |
3.5(1) | Second and Amended Certificate of Incorporation of Global Recycling Technologies, Ltd., dated and filed with the Secretary of State of Delaware on August 31, 2011. | |
Amended and Restated Bylaws of GlyEco, | ||
3.7(1) | GRT Acquisition, Inc. Bylaws | |
3.8(1) | Global Recycling Technologies Ltd. Bylaws | |
3.9(1) | Certificate of Merger, dated October 31, 2011, executed by Environmental Credits Ltd. and GlyEco, Inc., filed with the Secretary of State of Delaware on November 8, 2011 and effective November 21, 2011 | |
3.10(1) | Articles of Merger, dated October 31, 2011, executed by Environmental Credits, Ltd. and GlyEco., filed with the Secretary of State of Nevada on November 3, 2011 and effective November 21, 2011 | |
3.11(1) | Certificate of Merger, dated November 21, 2011, executed by GRT Acquisition, Inc. and Global Recycling Technologies, Inc., filed with the Secretary of State of Delaware and effective November 28, 2011 | |
3.12(8) | Certificate of Designation of Series AA Preferred Stock | |
4.1(2) | Note Purchase Agreement, dated August 9, 2008, by and between Global Recycling Technologies, Ltd. and IRA FBO Leonid Frenkel, Pershing LLC , as Custodian. | |
4.2(2) | Forbearance Agreement, dated August 11, 2010, by Global Recycling Technologies, Ltd. and IRA FBO Leonid Frenkel, Pershing LLC, as Custodian | |
4.3(2) | Second Forbearance Agreement, dated May 25, 2011, Global Recycling Technologies, Ltd. and IRA FBO Leonid Frenkel, Pershing LLC, as Custodian | |
4.4(3) | 2007 Stock Option Plan | |
4.5(3) | 2012 Equity Incentive Plan | |
4.6(4) | First Amendment to GlyEco, Inc. 2012 Equity Incentive Plan | |
5.1(12) |
10.1(5) | Asset Purchase Agreement, dated December 31, 2012, by and among Evergreen Recycling Co., Inc., an Indiana corporation (the Seller), Thomas Shiveley (the Selling Principal), and GlyEco Acquisition Corp. #2, an Arizona corporation and wholly-owned subsidiary of GlyEco, Inc. (the Buyer). | |
10.2(6) | Assignment of Intellectual Property, dated December 10, 2012, by and among Joseph A. Ioia and GlyEco Acquisition Corp. #4, Inc. | |
10.3(7) | Agreement and Plan of Merger, dated September 27, 2013, by and among GlyEco, Inc., a Nevada corporation, GlyEco Acquisition Corp. #7, an Arizona corporation and wholly owned subsidiary of GlyEco, Inc., GSS Automotive Recycling, Inc., a Maryland corporation, Joseph Getz, an individual, and John Stein, an individual. | |
Letter from Jorgensen & Co. to the Commission | ||
21.1(10) | List of Subsidiaries of the Company | |
Consent of Jorgensen & Co. | ||
23.3(12) | Consent of Squire Patton Boggs (US) LLP (filed with Exhibit 5.1) | |
(1) | Filed as an exhibit to the Form 8-K filed by the Company with the Commission on November 28, 2011, and incorporated by reference herein (File No. 000-30396, Film No. 111228615). |
(2) | Filed as an exhibit to the Form 8-K/A filed by the Company with the Commission on January 18, 2012, and incorporated by reference herein (File No. 000-30396, Film No. 12532774). |
(3) | Filed as an exhibit to the Form 10-K filed by the Company with the Commission on April 16, 2012, and incorporated by reference herein (File No. 000-30396, Film No. 12760852). |
(4) | Filed as an exhibit to the Form 10-Q filed by the Company with the Commission on August 14, 2012, and incorporated by reference herein (File No. 000-30396, Film No. 121033368). |
(5) | Filed as an exhibit to the Form 8-K filed by the Company with the Commission on January 4, 2013, and incorporated by reference herein (File No. 000-30396, Film No. 13509486). |
(6) | Filed as an exhibit to the Form 8-K filed by the Company with the Commission on December 13, 2012, and incorporated by reference herein (File No. 000-30396, Film No. 121260031). |
(7) | Filed as an exhibit to the Form 8-K filed by the Company with the Commission on October 2, 2013 and incorporated by reference herein (File No. 000-30396, Film No. 131130767). |
(8) | Filed as an exhibit to the Form 8-K filed by the Company with the Commission on May 30, 2012, and incorporated by reference herein (File No. 000-30396, Film No. 12875699). |
(9) | Filed as an exhibit to the Form 8-K filed by the Company with the Commission on July 24, 2013, and incorporated by reference herein (File No. 000-30396, Film No. 13984185). |
(10) | Filed as an exhibit to the Form 10-K filed by the Company with the Commission on April 15, 2014, and incorporated by reference herein (File No. 000-30396, Film No. 14764935). |
(11) | Filed |
(12) | |
Filed herewith. |