GrowLife, Inc. and Subsidiaries (formerly Phototron Holdings, Inc.)
Condensed Consolidated Balance Sheets
March 31, 2013 December 31, 2012
(Unaudited)
ASSETS
Current Assets
Cash $ 246,640 $ 36,602
Restricted cash 46,400 46,400
Accounts receivable, net 4,456 15,036
Inventory, net 337,073 357,976
Prepaid expenses 10,952 —
Deposits 15,990 15,990
Total current assets 661,511 472,004
Property and equipment, net 16,529 19,372
Intangibles 481,351 508,600
Goodwill 279,515 279,515
Total Assets $ 1,438,906 $ 1,279,491
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable $ 216,043 $ 293,020
Accrued expenses 50,758 19,368
Deferred revenue 20,501 33,638
Note payable & accrued interest 193,180
Note payable & accrued interest, related party 25,070 —
Total current liabilities 312,372 539,206
6% Senior secured convertible notes, net of discount 954,193 1,077,640
Total liabilities 1,266,565 1,616,846
Stockholders' Equity (Deficit)
Preferred stock, $0.0001 par value, zero and 3,000,000
shares authorized and outstanding, respectively — 300
Common Stock, $0.0001 par value, 1,000,000,000
shares authorized, 496,109,264 and 157,000,000
shares issued and outstanding, respectively 49,611 38,970
Additional Paid-in-Capital (1) 4,326,258 2,643,941
Accumulated deficit (4,203,528 ) (3,020,566 )
Total stockholders' equity (deficit) 172,341 (337,355 )
Total liabilities and stockholders' equity (deficit) $ 1,438,906 $ 1,279,491
See accompanying notes to these condensed consolidated financial statements.
(1) The December 31, 2012 capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction. See Note 2.
-2-
GrowLife, Inc. and Subsidiaries (formerly Phototron Holdings, Inc.)
Condensed Consolidated Statement of Operations
(Unaudited)
For the Three-Month Period Ended,
March 31, 2013 March 31, 2012
Net revenue $ 760,709 $ 91,809
Cost of Goods Sold 511,583 83,767
Gross Profit 249,126 8,042
General and administrative 708,869 125,144
Loss from operations (459,743 ) (117,102 )
Other income (expense)
Amortization of intangible assets (27,249 ) —
Loss on extinguishment of debt (2,750 ) —
Change in fair value of derivative (169,753 ) —
Interest expense, net (523,467 ) (4,584 )
Net loss $ (1,182,962 ) $ (121,686 )
Net loss per share (basic and diluted) $ (0.00 ) $ (0.00 )
Weighted average shares outstanding (basic and diluted) (2) 443,605,824 157,000,000
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