Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 11, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Cosmos Holdings Inc. | ' |
Entity Central Index Key | '0001474167 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 125,585,532 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Cash and equivalents | $841,028 | $864,489 |
Accounts receivable | 1,228,050 | ' |
Prepaid expenses | 32,698 | 435 |
Other assets | 2,126 | 2,126 |
TOTAL ASSETS | 2,103,902 | 867,050 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 69,628 | 530,185 |
Unearned revenues | ' | 671 |
Salaries payable | 179,092 | 186,592 |
Notes payable, related party | 165,000 | 165,000 |
Taxes payable | 264,271 | 38,286 |
TOTAL CURRENT LIABILITIES | 677,991 | 920,734 |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock, par value $0.001, authorized 100 million shares, none issued and outstanding at June 30, 2014. | ' | ' |
Common stock, par value $0.001, authorized 300 million, 125,585,532 and 125,585,532 issued and outstanding at June 30, 2014 and December 31, 2013, respectively. | 125,586 | 125,586 |
Additional paid-in capital | -427,683 | -432,593 |
Accumulated other comprehensive (loss) income | -56,495 | 11,319 |
Retained earnings | 1,784,503 | 242,004 |
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) | 1,425,911 | -53,684 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $2,103,902 | $867,050 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 125,585,532 | 125,585,532 |
Common stock, shares, outstanding | 125,585,532 | 125,585,532 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues | ' | ' | ' | ' |
Revenues | $1,234,167 | ' | $2,015,223 | ' |
Expenses | ' | ' | ' | ' |
General and administrative expenses | 168,261 | 493,718 | 241,434 | 493,718 |
Net operating income (loss) | 1,065,906 | 493,718 | 1,773,789 | 493,718 |
Other income and (expense) | ' | ' | ' | ' |
Interest expense - related party | -2,469 | ' | -4,910 | ' |
Total other income and (expense) | -2,469 | ' | -4,910 | ' |
Income (loss) before income taxes | 1,063,437 | -493,718 | 1,768,879 | -493,718 |
Income tax expense | 135,154 | ' | 226,380 | ' |
Net income (loss) | 928,283 | -493,718 | 1,542,499 | -493,718 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Unrealized foreign currency income (loss) | -11,590 | 3,240 | -67,814 | 3,240 |
NET COMPREHENSIVE INCOME (LOSS) | $916,693 | ($490,478) | $1,474,685 | ($490,478) |
Net income (loss) per share - basic | $0.01 | $0 | $0.01 | $0 |
Net income (loss) per share - dilutive | $0.01 | $0 | $0.01 | $0 |
Weighted average number of shares outstanding - basic | 125,585,532 | 100,000,000 | 125,585,532 | 100,000,000 |
Weighted average number of shares outstanding - dilutive | 125,804,113 | 100,000,000 | 125,804,894 | 100,000,000 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (Deficit) (Unaudited) (USD $) | Common Stock | Additional Paid-In Capital | Other Comprehensive Income (Loss) | Retained Earnings | Total |
Beginning Balance, Amount at Dec. 31, 2013 | $125,586 | ($432,593) | $11,319 | $242,004 | ($53,684) |
Beginning Balance, Shares at Dec. 31, 2013 | 125,585,532 | ' | ' | ' | ' |
Imputed interest | ' | 4,910 | ' | ' | 4,910 |
Foreign currency translation effect | ' | ' | -67,814 | ' | -67,814 |
Net Loss | ' | ' | ' | 1,542,499 | 1,542,499 |
Ending Balance, Amount at Jun. 30, 2014 | $125,586 | ($427,683) | ($56,495) | $1,784,503 | $1,425,911 |
Ending Balance, Shares at Jun. 30, 2014 | 125,585,532 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income (loss) | $1,542,499 | ($493,718) |
Adjustments to reconcile net income (loss) with cash used in operations: | ' | ' |
Imputed interest | 4,910 | ' |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,228,050 | ' |
Prepaid expenses | -32,263 | ' |
Accounts payable and accrued liabilities | -468,057 | 489,075 |
Taxes payable | 225,985 | ' |
Deferred revenue | -671 | ' |
Net cash provided by / (used in) operating activities | 44,353 | -4,643 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Expenses paid by shareholders | ' | 1,403 |
Net cash provided by / (used in) financing activities | ' | 1,403 |
Foreign currency translation effect | -67,814 | 3,240 |
NET DECREASE IN CASH | -23,461 | ' |
Cash at beginning of period | 864,489 | ' |
Cash at end of period | 841,028 | ' |
SUPPLEMENTAL DISCLOSURES | ' | ' |
Cash paid for interest | ' | ' |
Cash paid for income taxes | ' | ' |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
Note 1 - BASIS OF PRESENTATION | ' |
The terms “COSM,” “we,” “the Company,” and “us” as used in this report refer to Cosmos Holdings Inc. The accompanying unaudited consolidated balance sheet as of June 30, 2014 and unaudited consolidated statements of operations for the six and three months ended June 30, 2014 and 2013 have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management of COSM, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six and three month periods ended June 30, 2014, are not necessarily indicative of the results that may be expected for the year ending December 31, 2014, or any other period. These unaudited consolidated financial statements and notes should be read in conjunction with the financial statements for each of the two years ended December 31, 2013 and 2012, included in the Company’s Annual Report on Form 10-K. The accompanying unaudited consolidated balance sheet as of December 31, 2013, has been derived from the audited financial statements filed in our Form 10-K and is included for comparison purposes in the accompanying balance sheet. Certain prior year amounts have been reclassified to conform to current year presentation. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
Note 2 - INCOME TAXES | ' |
The Company’s effective tax rate differs from the U.S. federal statutory rate primarily due to earnings taxed at the lower foreign tax rate in Cyprus. Our wholly-owned Cypriot subsidiary, Amplerissimo, Ltd. has taxable income in Cyprus, where the statutory corporate income tax rate is 12.5%. | |
Prior to the acquisition of Amplerissimo, the Company had net operating losses in the U.S. which, although offset by a valuation allowance due to the uncertainty of profitable operations in the future, were available to be applied to future taxable income (if any). However, the IRC Section 382 limits the amount of net operating loss carry-forwards that can be utilized upon a change in control. Future tax benefits of net operating loss carryforwards generated in the U.S. by the Company represent the primary component of the Company’s deferred tax assets. Under Accounting Standards Codification (“ASC”) 740 “Accounting for Income Taxes”, the Company evaluates at every reporting period whether the benefit of such losses will more likely than not be realized. Based on the Company’s history of taxable losses in the U.S. and the potential annual limitation on future utilization if it is determined that a change in ownership as defined in IRC 382 has occurred, the Company has determined that it is not more likely than not that the tax benefit of such losses will be realized prior to their expiration. At June 30, 2014, the Company had maintained a full valuation allowance against its net deferred tax assets. | |
The Company applied the “more-likely-than-not” recognition threshold to all tax positions taken or expected to be taken in a tax return, which resulted in no unrecognized tax benefits as of June 30, 2014. | |
The Company has elected to classify interest and penalties that would accrue according to the provisions of relevant tax law as interest and other expense, respectively. | |
The Company’s tax years since inception through 2014 remain open to examination by most taxing authorities. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
Note 3 - RELATED PARTY TRANSACTIONS | ' |
At June 30, 2014, we owed $165,000 to GreenEra, Ltd., a company in which our former Chief Executive Officer and Director, Mr. Panagiotis Drakopoulos is a shareholder. | |
At June 30, 2014, our former Chairman and Principal Executive Officer, Mr. Panagiotis Drakopoulos, is owed $102,500 in unpaid salary. | |
Additionally, we owe $76,592 to Mr. Mavrogiannis, our former Chief Financial Officer in unpaid salary. | |
We believe that all related party transactions were on terms at least as favorable as we would have secured in arm’s-length transactions with third parties. Except as set forth above, we have not entered into any material transactions with any director, executive officer, and promoter, beneficial owner of five percent or more of our common stock, or family members of such persons. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
Note 4 - LEASES | ' |
The Company conducts its operations from an office located in Chicago, Illinois for which we paid rent of approximately $307 per month through November, 2013. In December, 2013 we moved our office to another location in Chicago Illinois. Beginning in February 2014, we paid rent of approximately $709 per month for our office. Rent expense for the six and three month periods ended June 30, 2014 was $5,801 and $2,895, respectively, and $1,547 and $774 for the six and three month periods ended June 30, 2013, respectively. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
Note 5 - EARNINGS PER SHARE | ' | ||||||||||||||||
Basic net income (loss) per share is computed by dividing net income (loss) attributable to the Company, decreased with respect to net income or increased with respect to net loss by dividends declared on preferred stock by using the weighted-average number of common shares outstanding. The dilutive effect of incremental common shares potentially issuable under outstanding options, warrants and restricted shares is included in diluted earnings per share utilizing the treasury stock method. The computations of basic and diluted per share data were as follows: | |||||||||||||||||
Six months ended | Three months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income (loss) | $ | 1,542,499 | - | $ | 928,283 | $ | - | ||||||||||
Weighted average common shares outstanding - basic | 125,585,532 | 100,000,000 | 125,585,532 | 100,000,000 | |||||||||||||
Option awards | 219,362 | - | 218,581 | - | |||||||||||||
Weighted average common shares outstanding - dilutive | 125,804,894 | 100,000,000 | 125,804, 113 | 100,000,000 | |||||||||||||
Net income (loss) per share - basic and diluted | 0.01 | (0.00 | ) | 0.01 | (0.00 | ) |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share Tables | ' | ||||||||||||||||
Computations of basic and diluted per share | ' | ||||||||||||||||
The computations of basic and diluted per share data were as follows: | |||||||||||||||||
Six months ended | Three months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income (loss) | $ | 1,542,499 | - | $ | 928,283 | $ | - | ||||||||||
Weighted average common shares outstanding - basic | 125,585,532 | 100,000,000 | 125,585,532 | 100,000,000 | |||||||||||||
Option awards | 219,362 | - | 218,581 | - | |||||||||||||
Weighted average common shares outstanding - dilutive | 125,804,894 | 100,000,000 | 125,804, 113 | 100,000,000 | |||||||||||||
Net income (loss) per share - basic and diluted | 0.01 | (0.00 | ) | 0.01 | (0.00 | ) |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | Jun. 30, 2014 |
Due to Related Parties, Current | $165,000 |
Chief Financial Officer [Member] | ' |
Outstanding salaries | 76,592 |
Chairman and Principal Executive Officer [Member] | ' |
Unpaid salaries | $102,500 |
LEASES_Details_Narrative
LEASES (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Leases Details Narrative | ' | ' | ' | ' |
Rent Expense | $2,895 | $774 | $5,801 | $1,547 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share Details | ' | ' | ' | ' |
Net income (loss) | $928,283 | ' | $1,542,499 | ' |
Weighted average common shares outstanding - basic | 125,585,532 | 100,000,000 | 125,585,532 | 100,000,000 |
Option awards | 218,581 | ' | 219,362 | ' |
Weighted average common shares outstanding - dilutive | 125,804,113 | 100,000,000 | 125,804,894 | 100,000,000 |
Net income (loss) per share - basic and diluted | $0.01 | $0 | $0.01 | $0 |