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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Global Digital Solutions Inc (CE) | USOTC:GDSI | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.0001 | 0.00 | 01:00:00 |
New Jersey
|
22-3392051
|
|
(State or other jurisdiction of incorporation
or organization)
|
(I.R.S. Employer
Identification No.)
|
|
777 South Flagler Drive, Suite 800 West
West Palm Beach, FL 33401
|
(561) 515-6163
|
|
(Address of principal executive offices,
including zip code)
|
(Registrant’s telephone number,
including area code)
|
The number of shares outstanding of each of the issuer’s classes of common stock as of the close of business on October 18, 2013 is as follows:
|
||
Class
|
Number of Shares
|
|
Common Stock: $0.001 Par Value
|
91,608,117
|
Page | |||||
PART I
|
FINANCIAL INFORMATION
|
||||
Item 1.
|
Financial Statements (unaudited):
|
||||
Condensed Consolidated Balance Sheets – September 30, 2013 and December 31, 2012
|
1 | ||||
Condensed Consolidated Statements of Operations – Three and nine months ended September 30, 2013 and 2012
|
2 | ||||
Condensed Consolidated Statement of Cash Flows – Nine months ended September 30, 2013 and 2012
|
3 | ||||
Notes to Condensed Consolidated Financial Statements
|
4 | ||||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
13 | |||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
23 | |||
Item 4.
|
Controls and Procedures.
|
23 | |||
PART II
|
OTHER INFORMATION
|
||||
Item 1.
|
Legal Proceedings.
|
24 | |||
Item 1A.
|
Risk Factors.
|
24 | |||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
24 | |||
Item 3.
|
Defaults Upon Senior Securities.
|
24 | |||
Item 4.
|
Mine Safety Disclosures.
|
24 | |||
Item 5.
|
Other Information.
|
24 | |||
Item 6.
|
Exhibits.
|
24 | |||
Signature
|
25 |
PART I - FINANCIAL INFORMATION
|
ITEM 1 - FINANCIAL STATEMENTS
|
GLOBAL DIGITAL SOLUTIONS, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(unuadited)
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 1,006,285 | $ | 385,141 | ||||
Notes receivable
|
1,193,741 | - | ||||||
Prepaid expenses
|
160,572 | - | ||||||
Total current assets
|
2,360,598 | 385,141 | ||||||
Assets of discontinued operations
|
- | 395,133 | ||||||
Deposits
|
198 | - | ||||||
Total assets
|
$ | 2,360,796 | $ | 780,274 | ||||
Liabilities and Stockholders' Equity (Deficit)
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$ | 29,179 | $ | 155 | ||||
Accrued expenses
|
168,394 | 191,344 | ||||||
Convertible notes payable
|
504,309 | 504,309 | ||||||
Notes payable
|
25,000 | 117,600 | ||||||
Total current liabilities
|
726,882 | 813,408 | ||||||
Liabilities of discontinued operations
|
- | 33,974 | ||||||
Total Liabilities
|
726,882 | 847,382 | ||||||
Commitments and Contingencies (Note 6)
|
||||||||
Stockholders’ equity (deficit)
|
||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding
|
- | - | ||||||
Common stock, $0.001 par value, 175,000,000
and 100,000,000
shares authorized, 91,608,117 and 52,263,451 shares issued and outstanding
|
91,609 | 52,264 | ||||||
Additional paid-in capital
|
14,467,107 | 7,326,336 | ||||||
Accumulated deficit
|
(12,924,802 | ) | (7,561,122 | ) | ||||
Total Global Digital Solutions, Inc. stockholders' equity (deficit)
|
1,633,914 | (182,522 | ) | |||||
Non-controlling interest
|
- | 115,414 | ||||||
Total stockholders’ equity (deficit)
|
1,633,914 | (67,108 | ) | |||||
Total liabilities and stockholders' equity (deficit)
|
$ | 2,360,796 | $ | 780,274 |
GLOBAL DIGITAL SOLUTIONS, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited)
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Revenue
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Cost of revenue
|
- | - | - | 300 | ||||||||||||
Gross profit (loss)
|
- | - | - | (300 | ) | |||||||||||
Operating expenses
|
||||||||||||||||
Selling, general and administrative expenses
|
2,399,223 | 112,785 | 4,446,917 | 256,636 | ||||||||||||
Other (income)/expense
|
||||||||||||||||
Gain on extinguishment of debt
|
(31,712 | ) | - | (31,712 | ) | - | ||||||||||
Interest income
|
(18,623 | ) | - | (30,944 | ) | - | ||||||||||
Interest expense
|
- | - | 708,198 | - | ||||||||||||
Total costs and expenses
|
2,348,888 | 112,785 | 5,092,459 | 256,636 | ||||||||||||
Loss from continuing operations before provision for income taxes
|
(2,348,888 | ) | (112,785 | ) | (5,092,459 | ) | (256,936 | ) | ||||||||
Provision for income taxes
|
- | - | - | - | ||||||||||||
Loss from continuing operations
|
(2,348,888 | ) | (112,785 | ) | (5,092,459 | ) | (256,936 | ) | ||||||||
Loss from discontinued operations
|
- | (53,100 | ) | (271,221 | ) | (282,774 | ) | |||||||||
Net loss
|
(2,348,888 | ) | (165,885 | ) | (5,363,680 | ) | (539,710 | ) | ||||||||
Loss attributable to the non-controlling interest
|
- | (26,019 | ) | - | (132,658 | ) | ||||||||||
Net loss attributable to Global Digital Solutions, Inc.
|
$ | (2,348,888 | ) | $ | (139,866 | ) | $ | (5,363,680 | ) | $ | (407,052 | ) | ||||
Loss per common share attributable to Global Digital Solutions, Inc.
common stockholders - basic and diluted:
|
||||||||||||||||
Loss from continuing operations
|
$ | (0.03 | ) | $ | (0.00 | ) | $ | (0.07 | ) | $ | (0.01 | ) | ||||
Loss from discontinued operations
|
- | - | - | (0.01 | ) | |||||||||||
Loss attributable to the non-controlling interest
|
- | - | - | - | ||||||||||||
Net loss
|
$ | (0.03 | ) | $ | (0.00 | ) | $ | (0.08 | ) | $ | (0.01 | ) | ||||
Shares used in computing net loss per share:
|
||||||||||||||||
Basic and diluted
|
88,827,524 | 48,389,442 | 68,674,770 | 43,077,547 |
GLOBAL DIGITAL SOLUTIONS, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited)
|
For the Nine Months Ended
|
||||||||
September 30,
|
||||||||
2013
|
2012
|
|||||||
Operating Activities
|
||||||||
Net loss
|
$ | (5,363,680 | ) | $ | (539,710 | ) | ||
Adjustments to reconcile net loss to net cash used
in operating activities:
|
||||||||
Stock- based compensation expense
|
2,984,797 | - | ||||||
Debt guaranty settled by issuing common stock
|
360,000 | - | ||||||
Common stock issued in payment of services
|
542,732 | 15,000 | ||||||
Amortization of debt discount
|
676,487 | - | ||||||
Changes in operating assets and liabilities:
|
||||||||
Prepaid expenses
|
(160,572 | ) | - | |||||
Accounts payable
|
29,024 | 123,332 | ||||||
Accrued expenses
|
(22,950 | ) | - | |||||
Cash provided by discontinued operations
|
245,745 | 168,979 | ||||||
Net cash used in operating activities
|
(708,417 | ) | (232,399 | ) | ||||
Investing Activities
|
||||||||
Loans to Airtronic USA, Inc.
|
(1,193,741 | ) | - | |||||
Deposits
|
(198 | ) | - | |||||
Net cash used in investing activities
|
(1,193,939 | ) | - | |||||
Financing Activities
|
||||||||
Proceeds from the sale of common stock
|
1,916,100 | 75,000 | ||||||
Proceeds from the exercise of warrants
|
300,000 | - | ||||||
Proceeds from short-term debt
|
374,900 | 195,000 | ||||||
Payments on short-term debt
|
(67,500 | ) | (35,000 | ) | ||||
Net cash provided by financing activities
|
2,523,500 | 235,000 | ||||||
Net increase in cash and cash equivalents
|
621,144 | 2,601 | ||||||
Cash and cash equivalents at beginning of year
|
385,141 | 668 | ||||||
Cash and cash equivalents at end of period
|
$ | 1,006,285 | $ | 3,269 | ||||
Supplementary disclosure of non-cash investing and financing activities
|
||||||||
Debt settled with shares of common stock
|
$ |
750,000
|
$ | - | ||||
Purchase of Bronco with shares of common stock
|
- | 150,116 |
2013
|
2012
|
|||||||
Cash in bank
|
$ | 1,006,285 | $ | 385,141 | ||||
Cash and cash equivalents
|
$ | 1,006,285 | $ | 385,141 |
Type
|
Collateral
(If any)
|
Interest Rate
|
Monthly Payment
|
Maturity
|
2013
|
2012
|
|||||||||||||
Laurus Master Fund
|
None
|
0.00 | % | $ | - |
May-13
|
$ | 504,309 | $ | 504,309 |
Type |
Collateral
(if any)
|
Interest Rate
|
Monthly
Payments
|
Maturity
|
2013
|
2012
|
|||||||||||||
Private
|
Assets
|
8.25 | % | $ | - |
May-13
|
$ | - | $ | 375,100 | |||||||||
Private
|
None
|
10.00 | % | $ | - |
May-13
|
20,000 | 50,000 | |||||||||||
Private
|
None
|
10.00 | % | $ | - |
Dec -13
|
- | 37,500 | |||||||||||
Private
|
None
|
5.00 | % | $ | - |
Demand
|
5,000 | 5,000 | |||||||||||
25,000 | 467,600 | ||||||||||||||||||
Less: Unamortized debt discount
|
- | (350,000 | ) | ||||||||||||||||
Notes payable
|
$ | 25,000 | $ | 117,600 |
In Consideration For
|
Date of Issue
|
Number of Shares
|
Price
|
Value
|
||||||||||
Services
|
1/1/13
|
1,000,666 | $ | 0.100 | $ | 99,700 | ||||||||
Stock-based compensation
|
1/10/13
|
11,000,000 | $ | 0.120 | * | 11,000 | ||||||||
Services
|
4/15/13
|
500,000 | $ | 0.100 | 50,000 | |||||||||
Private placement
|
4/15/13
|
250,000 | $ | 0.100 | 25,000 | |||||||||
Private placement
|
5/31/13
|
200,000 | $ | 0.250 | 50,000 | |||||||||
Private placement
|
6/6/13
|
2,150,000 | $ | 0.250 | 537,500 | |||||||||
Services
|
6/25/13
|
310,000 | $ | 0.500 | 155,000 | |||||||||
Stock based compensation
|
6/25/13
|
15,000,000 | $ | 0.260 | * | 15,000 | ||||||||
Private placement
|
6/25/13
|
408,000 | $ | 0.450 | 183,600 | |||||||||
Private placement
|
6/30/13
|
260,000 | $ | 0.500 | 130,000 | |||||||||
Note conversion
|
7/1/13
|
3,000,000 | $ | 0.250 | 750,000 | |||||||||
Warrant exercise
|
8/19/13
|
3,000,000 | $ | 0.100 | 300,000 | |||||||||
Private Placement
|
9/20/13
|
1,100,000 | $ | 0.450 | 495,000 | |||||||||
Private Placement
|
9/25/13
|
1,100,000 | $ | 0.450 | 495,000 | |||||||||
Services
|
9/25/13
|
66,000 | $ | 0.450 | 29,700 | |||||||||
39,344,666 | $ | 3,326,500 |
Warrant
|
Issued in connection with or for
|
Number
|
Exercise
Price
|
Date of Issue
|
Date Vest
|
Date of
Expiration
|
||||||
A-2
|
Services
|
1,000,000
|
$.15
|
May 2013
|
May 2014
|
May 2018
|
||||||
A-3
|
Services
|
500,000
|
$.50
|
June 2013
|
June 2014
|
June 2018
|
Warrant
|
Fair Value
|
Dividend
Yield
|
Volatility
|
Contractual
Lives (Yrs.)
|
Risk-Free Rate
|
|||||
A-2
|
$ 300,000
|
0.00%
|
593.00%
|
5.0
|
0.84%
|
|||||
A-3
|
$ 250,000
|
0.00%
|
598.12%
|
5.0
|
1.20%
|
Outstanding
|
Exercisable
|
||||||||||||||||
Range of Exercise
Prices
|
Weighted
Average
Number
Outstanding
at 9/30/13
|
Outstanding
Remaining
Contractual
Life (in yrs.)
|
Weighted
Average
Exercise
Price
|
Number
Exercisable
at 9/30/13
|
Weighted
Average
Exercise
Price
|
||||||||||||
$
|
0.15
|
1,000,000
|
4.50
|
$
|
0.15
|
-
|
-
|
||||||||||
$
|
0.50
|
500,000
|
4.75
|
$
|
0.50
|
-
|
-
|
||||||||||
$
|
0.27
|
1,500,000
|
4.65
|
$
|
0.27
|
-
|
$
|
-
|
2013
|
2012
|
|||||||
Warrants
|
1,500,000 | - | ||||||
Preferred stock
|
- | 1,000,000 | ||||||
Total common stock equivalents
|
1,500,000 | 1,000,000 |
|
1.
|
The outstanding balance of principal, accrued interest and other amounts then due and owing under the terms of Original Note, as defined below.
|
|
2.
|
The total amount of cash and the value of the Company’s shares of common stock that we shall make available for the settlement of any class of claim or claim pursuant to Airtronic’s approved Plan of Reorganization in its bankruptcy proceeding, as discussed below; and
|
|
3.
|
All other amounts funded or advanced by the Company to or for the benefit of Airtronic prior to the closing date of the Merger.
|
Three-Months Ended
|
Nine-Months Ended
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
2012
|
2013
|
2012
|
||||||||||
Net sales
|
$ | - | $ | - | $ | 149,917 | ||||||
Cost of goods sold
|
20,204 | - | 124,929 | |||||||||
Gross profit
|
(20,204 | ) | - | 24,988 | ||||||||
Selling, general and administrative expenses
|
32,896 | 25,477 | 300,762 | |||||||||
Loss on sale of assets of discontinued operations
|
- | 245,744 | - | |||||||||
Interest expense
|
- | - | 7,000 | |||||||||
Loss before provision for income taxes
|
(53,100 | ) | (271,221 | ) | (282,774 | ) | ||||||
Provision for income taxes
|
- | - | - | |||||||||
Loss from discontinued operations
|
$ | (53,100 | ) | $ | (271,221 | ) | $ | (282,774 | ) |
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
our ability to fund our operations and continue as a going concern;
|
•
|
our ability to have excess cash available for future actions;
|
|
our ability or inability to implement our business plan, including the completion of the acquisition of Airtronic;
|
•
|
anticipated trends in our business and demographics;
|
•
|
relationships with and dependence on technological partners;
|
•
|
our future profitability and liquidity and the impact of the Airtronic Merger on our financial condition, results of operations and cash flows;
|
•
|
our ability to preserve our intellectual property and trade secrets and operate without infringing on the proprietary rights of third parties;
|
•
|
regulatory, competitive or other economic influences;
|
•
|
our operational strategies including, without limitation, our ability to develop or diversify into new businesses;
|
•
|
our expectation that we will not suffer costly or material product liability claims and claims that our products infringe the intellectual property rights of others;
|
•
|
our ability to comply with current and future regulations relating to our businesses;
|
•
|
our ability or inability to obtain the funds necessary to fund Airtronic’s operations;
|
•
|
the impact of new accounting pronouncements;
|
•
|
our ability to establish and maintain proper and effective internal accounting and financial controls;
|
•
|
the potential of further dilution to our common stock based on transactions effected involving issuance of shares; and
|
•
|
our actual results may differ materially from those reflected in forward-looking statements as a result of (i) the risk factors described under the heading “Risk Factors” beginning on page 5 of our Registration Statement on Form 10/A filed with the Securities and Exchange Commission (“SEC”) on October 7, 2013, (ii) general economic, market or business conditions, (iii) the opportunities (or lack thereof) that may be presented to and pursued by us, (iv) competitive actions by other companies, (v) changes in laws, and (vi) other factors, many of which are beyond our control.
|
1.
|
The outstanding balance of principal, accrued interest and other amounts then due and owing under the terms of $700,000 Bridge Loan which, with accrued interest thru September 30, 2013, totaled $726,437.
|
2.
|
The total amount of cash and the value of the Company’s shares of common stock that we shall make available for the settlement of any class of claim or claim pursuant to Airtronic’s approved Plan of Reorganization (“Plan”). We estimate that the maximum amount of cash required to settle these class 5 liabilities is approximately $26,131 as of September 30, 2013. As of September 30, 2013, class 6 creditors with claims totaling $1,180,905 have elected to take shares of our common stock in settlement of their class 6 claims; and
|
3.
|
All other amounts funded or advanced by the Company to or for the benefit of Airtronic prior to the closing date of the Merger. These amounts include administrative expenses such as legal fees and trustee fees and are not expected to exceed $200,000.
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(unaudited)
|
||||||||||||||||
Revenue
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Cost of revenue
|
- | - | - | 300 | ||||||||||||
Gross profit (loss)
|
- | - | - | (300 | ) | |||||||||||
Operating expenses
|
||||||||||||||||
Selling, general and administrative expenses
|
2,399,223 | 112,785 | 4,446,917 | 256,636 | ||||||||||||
Other (income)/expense
|
||||||||||||||||
Gain on extinguishment of debt
|
(31,712 | ) | - | (31,712 | ) | - | ||||||||||
Interest income
|
(18,623 | ) | - | (30,944 | ) | - | ||||||||||
Interest expense
|
- | - | 708,198 | - | ||||||||||||
Total costs and expenses
|
2,348,888 | 112,785 | 5,092,459 | 256,636 | ||||||||||||
Loss from continuing operations before provision for income taxes
|
(2,348,888 | ) | (112,785 | ) | (5,092,459 | ) | (256,936 | ) | ||||||||
Provision for income taxes
|
- | - | - | - | ||||||||||||
Loss from continuing operations
|
(2,348,888 | ) | (112,785 | ) | (5,092,459 | ) | (256,936 | ) | ||||||||
Loss from discontinued operations
|
- | (53,100 | ) | (271,221 | ) | (282,774 | ) | |||||||||
Net loss
|
(2,348,888 | ) | (165,885 | ) | (5,363,680 | ) | (539,710 | ) | ||||||||
Loss attributable to the non-controlling interest
|
- | (26,019 | ) | - | (132,658 | ) | ||||||||||
Net loss attributable to Global Digital Solutions, Inc.
|
$ | (2,348,888 | ) | $ | (139,866 | ) | $ | (5,363,680 | ) | $ | (407,052 | ) | ||||
Loss per common share attributable to Global Digital Solutions, Inc.
common stockholders - basic and diluted:
|
||||||||||||||||
Loss from continuing operations
|
$ | (0.03 | ) | $ | (0.00 | ) | $ | (0.07 | ) | $ | (0.01 | ) | ||||
Loss from discontinued operations
|
- | - | - | (0.01 | ) | |||||||||||
Loss attributable to the non-controlling interest
|
- | - | - | - | ||||||||||||
Net loss
|
$ | (0.03 | ) | $ | (0.00 | ) | $ | (0.08 | ) | $ | (0.01 | ) | ||||
Shares used in computing net loss per share:
|
||||||||||||||||
Basic and diluted
|
88,827,524 | 48,389,442 | 68,674,770 | 43,077,547 |
Three Months Ended September 30,
|
||||||||||||||||
2013
|
2012
|
Increase/ (decrease)
|
% Change
|
|||||||||||||
Compensation and benefits
|
$ | 1,921,410 | $ | 50,000 | $ | 1,871,410 | 3,742.8 | % | ||||||||
Professional and filing fees
|
175,605 | 4,282 | 171,323 | 4,001.0 | % | |||||||||||
Loan and placement fees
|
156,129 | - | 156,129 | 100.0 | % | |||||||||||
Investor relations and marketing
|
115,292 | 54,256 | 61,036 | 112.5 | % | |||||||||||
Travel and entertainment
|
15,119 | 1,425 | 13,694 | 961.0 | % | |||||||||||
Office supply and support
|
11,110 | 1,817 | 9,293 | 511.4 | % | |||||||||||
Communications
|
2,785 | 1,005 | 1,780 | 177.1 | % | |||||||||||
Facility costs
|
1,773 | - | 1,773 | 100.0 | % | |||||||||||
$ | 2,399,223 | $ | 112,785 | $ | 2,286,438 | 2,027.3 | % |
●
|
Accounting and auditing fees of $7,650;
|
●
|
Consulting fees of $109,149;
|
●
|
Legal fees of $51,468;
|
●
|
Transfer agent fees of $1,304; and
|
●
|
Public company/SEC related fees of $6,034.
|
2012
|
||||
Net sales
|
$ | - | ||
Cost of goods sold
|
20,204 | |||
Gross profit
|
(20,204 | ) | ||
Selling, general and administrative expenses
|
32,896 | |||
Loss on sale of assets of discontinued operations
|
||||
Interest expense
|
||||
Loss before provision for income taxes
|
(53,100 | ) | ||
Provision for income taxes
|
- | |||
Loss from discontinued operations
|
$ | (53,100 | ) |
2013
|
2012
|
Increase/
(decrease)
|
% Change
|
|||||||||||||
Compensation and benefits
|
$ | 3,034,797 | $ | 157,480 | $ | 2,877,317 | 1,827.1 | % | ||||||||
Professional and filing fees
|
427,928 | 8,921 | 419,007 | 4,696.9 | % | |||||||||||
Loan and placement fees
|
661,310 | - | 661,310 | 100.0 | % | |||||||||||
Investor relations and marketing
|
269,349 | 83,463 | 185,886 | 222.7 | % | |||||||||||
Travel and entertainment
|
21,336 | 2,688 | 18,648 | 693.8 | % | |||||||||||
Office supply and support
|
19,617 | 3,079 | 16,538 | 537.1 | % | |||||||||||
Facility costs
|
8,358 | - | 8,358 | 100.0 | % | |||||||||||
Communications
|
4,222 | 1,005 | 3,217 | 320.1 | % | |||||||||||
$ | 4,446,917 | $ | 256,636 | $ | 4,190,281 | 1,632.8 | % |
●
|
Accounting and auditing fees of $38,150;
|
●
|
Consulting fees of $226,321;
|
●
|
Legal fees of $155,588;
|
●
|
Transfer agent fees of $1,835; and
|
●
|
Public company/SEC related fees of $6,034.
|
●
|
Loan fees of $560,000; and
|
●
|
Private placement fees of $101,310.
|
●
|
Investor relations fees and expenses paid in common stock of $218,332;
|
●
|
Public relations and marketing paid in shares of our common stock of $30,774;
|
●
|
Press release fees of $13,921; and
|
●
|
Other of $6,322.
|
Nine-Months Ended
|
||||||||
September 30,
|
||||||||
2013
|
2012
|
|||||||
Net sales
|
$ | - | $ | 149,917 | ||||
Cost of goods sold
|
- | 124,929 | ||||||
Gross profit
|
- | 24,988 | ||||||
Selling, general and administrative expenses
|
25,477 | 300,762 | ||||||
Loss on sale of assets of discontinued operations
|
245,744 | - | ||||||
Interest expense
|
- | 7,000 | ||||||
Loss before provision for income taxes
|
(271,221 | ) | (282,774 | ) | ||||
Provision for income taxes
|
- | - | ||||||
Loss from discontinued operations
|
$ | (271,221 | ) | $ | (282,774 | ) |
1.
|
The outstanding balance of principal, accrued interest and other amounts then due and owing under the terms of $700,000 Bridge Loan which, with accrued interest thru September 30, 2013, totaled $726,437.
|
2.
|
The total amount of cash and the value of the Company’s shares of common stock that we shall make available for the settlement of any class of claim or claim pursuant to Airtronic’s approved Plan of Reorganization (“Plan”). We estimate that the maximum amount of cash required to settle these class 5 liabilities is approximately $26,131 as of September 30, 2013. As of September 30, 2013, class 6 creditors with claims totaling $1,180,905 have elected to take shares of our common stock in settlement of their class 6 claims; and
|
3.
|
All other amounts funded or advanced by the Company to or for the benefit of Airtronic prior to the closing date of the Merger. These amounts include administrative expenses such as legal fees and trustee fees and are not expected to exceed $200,000.
|
Note
|
Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | |||||||||||||||||||||||||||||||||||||
Projected sources of cash
|
||||||||||||||||||||||||||||||||||||||||||||||||
Projected equity raises
|
$ | 990,000 | $ | 7,500,000 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||||
Projected Airtronic revenue
|
1,168,330 | 2,178,550 | 2,652,650 | 4,431,945 | 3,413,327 | 4,875,140 | 5,362,653 | 5,898,919 | 6,488,811 | 7,137,692 | 7,851,461 | |||||||||||||||||||||||||||||||||||||
Total projected cash inflows
|
2,158,330 | 9,678,550 | 2,652,650 | 4,431,945 | 3,413,327 | 4,875,140 | 5,362,653 | 5,898,919 | 6,488,811 | 7,137,692 | 7,851,461 | |||||||||||||||||||||||||||||||||||||
Projected uses of cash
|
||||||||||||||||||||||||||||||||||||||||||||||||
Projected cash required to fund Airtronic operations
|
1 | 973,374 | 1,995,901 | 2,597,910 | 4,027,869 | 4,383,359 | 3,900,112 | 4,321,811 | 4,678,038 | 5,102,117 | 5,500,457 | 5,935,276 | ||||||||||||||||||||||||||||||||||||
Projected cash required to fund Airtronic development of MK 777
|
1 | 500,000 | 680,000 | 500,000 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Projected cash required to fund Airtronic Administrative Expenses
|
2 | 200,000 | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Projected cash required to fund Airtronic Class 5 Creditors
|
3 | 27,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Projected cash required to settle creditors claims from profits
|
- | - | - | - | - | - | 267,331 | - | - | - | 267,331 | |||||||||||||||||||||||||||||||||||||
Projected cash to fund corporate overhead
|
315,784 | 396,536 | 866,687 | 869,190 | 868,186 | 885,550 | 903,261 | 921,326 | 939,753 | 958,548 | 977,719 | |||||||||||||||||||||||||||||||||||||
Total projected cash outflows
|
2,016,158 | 3,072,437 | 3,964,597 | 4,897,059 | 5,251,545 | 4,785,662 | 5,492,403 | 5,599,364 | 6,041,869 | 6,459,005 | 7,180,325 | |||||||||||||||||||||||||||||||||||||
Projected increase/(decrease) in cash for the period
|
|
142,172 | 6,606,113 | (1,311,947 | ) | (465,114 | ) | (1,838,218 | ) | 89,478 | (129,750 | ) | 299,555 | 446,941 | 678,687 | 671,136 | ||||||||||||||||||||||||||||||||
Projected cash, beginning of period
|
100,000 | 242,172 | 6,848,286 | 5,536,339 | 5,071,225 | 3,233,007 | 3,322,485 | 3,192,735 | 3,492,290 | 3,939,232 | 4,617,918 | |||||||||||||||||||||||||||||||||||||
Projected cash, end of period
|
$ | 242,172 | $ | 6,848,286 | $ | 5,536,339 | $ | 5,071,225 | $ | 3,233,007 | $ | 3,322,485 | $ | 3,192,735 | $ | 3,492,290 | $ | 3,939,232 | $ | 4,617,918 | $ | 5,289,054 |
Item 3.
|
Quantitative And Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Item 3.
|
Defaults Upon Senior Securities.
|
Item 4.
|
Mine Safety Disclosures.
|
Global Digital Solutions, Inc.
(Registrant)
|
||
Date:
October 22, 2013
|
By:
|
/s/
David A. Loppert
|
Chief Financial Officer
|
||
(Duly Authorized Officer and
Principal Financial Officer)
|
1 Year Global Digital Solutions (CE) Chart |
1 Month Global Digital Solutions (CE) Chart |
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