this group that pumped (CHMD ) one is over on txhd doing the same thing ,,from what i am being told . both company have ties.. read the last ten 10-q and state your opinion ..do not let these scums bags rip more people off many were burned with (CHMD ) NOW SAME GROUP ARE DOING THE SAME WITH TXHD. GOOD LUCK. THESE PEOPLE ARE SCUM BAGS AND CROOKS.
TEXTMUNICATION HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
(UNAUDITED)
NOTE 8 – SUBSEQUENT EVENTS
Our operating expenses were $3,069,358 for the nine months ended September 30, 2015, as compared with $358,996 for the nine months ended September 30, 2014. Our operating expenses consisted of general and administrative expenses for all periods.
Our general and administrative expenses for the nine months ended September 30, 2015 mainly consisted of consulting fees of management compensation of $2,823,231,
The major reason for the increase in operating expenses in 2015 over 2014 was a result of $2,700,000 in stock issued to consultants.
Other Expenses
We had other expenses of $814,245 for the three months ended September 30, 2015, as compared with $45,675 for the same period ended September 30, 2014. Other expenses for the three months ended September 30, 2015 consisted of $701,805 due to the loss on change of derivative liabilities, $97,241 in amortization of debt discount and $15,199 in interest expenses. Other expenses for the three months ended September 30, 2014 consisted of $26,376 in amortization of debt discount and $19,299 in interest expenses.
Net Loss
We had a net loss of $923,749 for the three months ended September 30, 2015, as compared with net loss of $216,561 for the three months ended September 30, 2014. We had a net loss of $3,943,213 for the nine months ended September 30, 2015, as compared with net loss of $319,284 for the nine months ended September 30, 2014.
Liquidity and Capital Resources
As of September 30, 2015, we had total current assets of $14,969. Our total current liabilities as of September 30, 2015 were $1,568,830. We had a working capital deficit of $1,553,861 as of September 30, 2015.
Cash Flows from Operating Activities
Operating activities used $258,012 in cash the nine months ended September 30, 2015, compared with $105,575 for the nine months ended September 30, 2014. Our net loss of $3,943,213 and accounts payable and accrued expenses of $37,627 were the main component of our negative operating cash flow, offset mainly by share based compensation of $2,748,000 the loss on derivative liabilities of $830,750 and amortization of debt discount of $143,487.
Cash Flows from Financing Activities
Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We anticipate needing approximately $1,000,000 in the next 12 months. This includes needed expenditures and as well as our growth plans. We only have $7,167 in cash as of September 30, 2015 and this amount is not sufficient for our needs.
Our optimum level of growth for success will be achieved if we are able to raise $1,000,000 in the next twelve months. However, funds are difficult to raise in today’s economic environment. If we are unable to raise $1,000,000 our ability to implement our business plan and achieve our goals will be significantly diminished.
We expect that we will not be able to continue operations beyond 6 months with our current available capital resources, which consists of limited cash and our monthly revenues, without obtaining additional funding or generating more revenues. We will need at a minimum $250,000 in capital to fund operations in the next 12 months.
We are dependent on investment capital to continue our survival. We have raised money through convertible debt, almost always on unfavorable terms. To date, we have not been successful in acquiring our goal of $1,000,000. There is no guarantee that these small convertible loans will be available to us in the future or on terms acceptable to us.
Going Concern
As of September 30, 2015, we have an accumulated deficit of $4,565,795. Our ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and our ability to achieve and maintain profitable operations. While we are expanding our best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.
