Give em the full story read the last paragraph as of 9/30/13 a loss of 2.6 mil how can they have no debt ?????
Total revenues generated from the sales of the Company's products for the nine months ended September 30, 2013 totaled $1,504,626, an increase of $1,104,336 from the nine months ended September 30, 2012 which totaled $400,290. The primary reason was due the revenue generated from Edible Gardens.
At this stage in the Company's development, revenues are not yet sufficient to cover ongoing operating expenses.
Gross profits for the nine months ended September 30, 2013 amounted to $7,431. Gross profits decreased $26,058 or 78% for the nine months ended September 30, 2013 compared to $33,489 for the nine months ended September 30, 2012. The decrease in the gross margin was due to management lowering the selling price of certain products so that cash would be raised.
Selling, general and administrative expenses for the nine months ended September 30, 2013 were $1,789,804, an increase of $1,005,445 from the nine months ended September 30, 2012 which totaled $784,359. Professional services increased by $671,924 which was paid for with common stock. Legal costs increased by $125,584 due to the company defending against claimants. Warrant expense increased by $247,605 due to additional warrants being issued in 2013. The Company had incurred an impairment of goodwill in connection with the reverse merger on the amount of $4,799,965 in the prior year versus zero in the current year.
The Company had a loss on derivative of $1,562,000 versus zero in the prior year, due to convertible notes issued in 2013. The Company had a gain on the fair market valuation of derivatives in the amount of $1,225,700 versus zero from the prior year, since no derivatives were outstanding then. Interest expense totaled $519,768 for the nine months ended September 30, 2013 versus $48,136 in the nine months ended September 30, 2012. The increase is due to more debt outstanding at higher rates in the nine months ended September 30, 2013.
The net result for the nine months ended September 30, 2013 was a loss of $2,640,091 or $0.03 per share compared to a loss of $5,601,171 or $0.07 for the nine months ended September 30, 2012.
