Darn thing is over 40 pages! gheez---read these pages below--one of them is the REVS....
TELKONET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2007 December 31, 2006
ASSETS
Current Assets:
Cash and cash equivalents $ 2,187,024 $ 1,644,037
Accounts Receivable: net of allowance for doubtful accounts of $207,000
and $60,000 at March 31, 2007 and December 31, 2006. 1,384,299 295,116
Income tax receivable 291,000 291,000
Note receivable 37,562 -
Inventory 2,530,623 1,306,593
Prepaid expenses and deposits 473,291 229,333
Total current assets 6,903,799 3,766,079
Property and Equipment:
Furniture and equipment, at cost 1,384,538 1,370,780
Less: accumulated depreciation 599,497 577,759
Total property and equipment, net 785,041 793,021
Equipment under Operating Leases:
Capitalized equipment, at cost 4,218,582 4,026,255
Less: accumulated depreciation 738,660 568,721
Total equipment under operating leases, net 3,479,922 3,457,534
Other Assets:
Long-term investments 193,847 193,847
Intangible assets, net of accumulated amortization of $367,656and $282,325
at March 31, 2007 and December 31, 2006, respectively 4,096,271 2,181,602
Note receivable 17,974 -
Goodwill 17,775,662 1,977,768
Deposits and other 157,802 146,665
Total other assets 22,241,556 4,499,882
TOTAL ASSETS $ 33,410,318 $ 12,516,516
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 3,908,835 $ 2,859,863
Note payable - officer 80,444 80,444
Income tax refund due to officer 291,000 291,000
Deferred revenue 207,397 160,125
Note payable under subsidiary acquisition - 900,000
Customer deposits and other 70,439 5,281
Total current liabilities 4,558,115 4,296,713
Long Term Liabilities:
Deferred revenue 29,473 42,019
Deferred lease liability Other 52,727 42,561
Total long term liabilities 82,200 84,580
Commitments and Contingencies - -
Minority Interest - -
Stockholders' Equity :
Preferred stock, par value $.001 per share; 15,000,000 shares authorized;
none issued and outstanding at March 31, 2007 and December 31, 2006 - -
Common stock, par value $.001 per share; 100,000,000 shares authorized;
66,710,183 and 56,992,301 shares issued and outstanding at March 31, 2007
and December 31, 2006, respectively 66,710 56,992
Additional paid-in-capital 104,529,437 78,502,900
Accumulated deficit (75,826,144 ) (70,424,669 )
Stockholders' equity 28,770,003 8,135,223
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 33,410,318 $ 12,516,516
See accompanying footnotes to the unaudited condensed consolidated financial information
3
TELKONET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For The Three Months
Ended March 31,
2007 2006
Revenues, net:
Product $ 637,856 $ 1,549,975
Rental 608,413 393,937
Total Revenue 1,246,269 1,943,912
Cost of Sales:
Product 429,468 983,651
Rental 886,993 311,919
Total Cost of Sales 1,316,461 1,295,570
Gross Profit (70,192 ) 648,342
Costs and Expenses:
Research and Development 474,603 432,569
Selling, General and Administrative 4,260,111 3,092,043
Non-Employee Stock Options and Warrants - 277,344
Employee Stock Based Compensation 354,186 376,281
Depreciation and Amortization 151,147 119,227
Total Operating Expense 5,240,047 4,297,464
Loss from Operations (5,310,239 ) (3,649,122 )
Other Income (Expenses):
Interest Income 42,347 102,684
Interest Expense (133,584 ) (720,253 )
Total Other Income (Expenses) (91,237 ) (617,569 )
Loss Before Provision for Income Taxes (5,401,476 ) (4,266,691 )
Provision for Income Taxes -
Loss Before Minority Interest (5,401,476 ) (4,266,691 )
Minority Interest - 19,569
Net Loss $ (5,401,476 ) $ (4,247,122 )
Loss per common share (basic and assuming dilution) $ (0.09 ) $ (0.09 )
Weighted average common shares outstanding 58,606,420 46,187,202
See accompanying footnotes to the unaudited condensed consolidated financial information
4
TELKONET, INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2007
Preferred Shares Preferred Stock
Amount Common Shares Common Stock Amount Additional
Paid in Capital Accumulated Deficit Total
Balance at January 1, 2007 - - 56,992,301 $ 56,992 $ 78,502,900 $ (70,424,669 ) $ 8,135,223
Shares issued for employee stock options exercised at $1.00 per share - - 31,000 31 30,969 - 31,000
Issuance of shares for purchase of subsidiary - - 2,227,273 2,227 5,997,773 - 6,000,000
Issuance of shares for purchase of subsidiary - - 3,459,609 3,460 9,752,637 - 9,756,097
Shares issued in connection with a private placement, net of costs - - 4,000,000 4,000 9,606,000 - 9,610,000
Warrants issued in exchange for interest expenses - - - - 131,009 - 131,009
Stock-based compensation expense related to employee stock options - - - - 354,186 - 354,186
Stock options granted to directors in exchange for accrued service fees - - - - 153,963 - 153,963
Net Loss - - (5,401,476 ) (5,401,476 )
Balance at March 31, 2007 - $ - 66,710,183 $ 66,710 $ 104,529,437 $ (75,826,144 ) $ 28,770,003
See accompanying footnotes to the unaudited condensed consolidated financial information
5
TELKONET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For The Three Months
Ended March 31,
2007 2006
Cash Flows from Operating Activities:
Net loss from operating activities $ (5,401,476 ) $ (4,247,122 )
Adjustments to reconcile net loss from operations to cash used in operating activities -
Minority interest - (19,569 )
Amortization of financing costs 100,225
Write-off of fixed assets in conjunction with loss on sublease 64,608 -
Value of additional warrants issued for senior convertible debenture 131,009 -
Amortization of debt discount - beneficial conversion feature of convertible debentures - 121,586
Amortization of debt discount - value of warrants attached to convertible debentures - 239,943
Stock options and warrants issued in exchange for services rendered 508,149 653,625
Common stock issued in exchange for services rendered - 81,271
Depreciation, including depreciation of equipment under operating leases 321,146 215,537
Increase / decrease in:
Accounts receivable 42,132 (320,083 )
Inventory (130,631 ) 157,727
Prepaid expenses and deposits (286,327 ) 2,220
Customer deposits and other current liability 9,683 (66,996 )
Accounts payable and accrued expenses (33,447 ) (155,536 )
Deferred revenue (37,848 ) 97,963
Deferred lease liability - 245
Net Cash (Used in) Operating Activities (4,813,002 ) (3,138,964 )
Cash Flows from Investing Activities:
Costs of equipment under operating leases (276,292 ) (316,716 )
Proceeds from sale of equipment under operating lease - 340,130
Payment of note payable under subsidiary acquisition (900,000 ) (1,017,822 )
Net cash acquired from MST - 59,384
Investment in subsidiaries (2,875,000 ) -
Investment in affiliate - (44 )
Purchase of property and equipment, net (34,760 ) (134,704 )
Net Cash (Used in) Investing Activities (4,086,052 ) (1,069,772 )
Cash Flows from Financing Activities:
Repayment of convertible debentures - (1,250,000 )
Proceeds from sale of common stock, net of costs 9,610,000 -
Proceeds from exercise of stock options and warrants 31,000 974,503
Repayment of subsidiary loans (198,959 ) (409,675 )
Net Cash Provided by (Used in) Financing Activities 9,442,041 (685,172 )
Net Increase (Decrease) in Cash and Cash Equivalents 542,987 (4,893,908 )
Cash and cash equivalents at the beginning of the period 1,644,037 8,422,079
Cash and cash equivalents at the end of the period $ 2,187,024 $ 3,528,171
See accompanying footnotes to the unaudited condensed consolidated financial information
6
TELKONET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For The Three Months
Ended March 31,
2007 2006
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for interest $ - $ 622,530
Income taxes paid - -
Non-cash transactions:
Note payable under subsidiary acquisition - 900,000
Issuance of shares for purchase of subsidiary 15,756,097 1,800,000
Employee stock-based compensation 508,149 376,281
Warrants issued in exchange for interest expense 131,009 -
Issuance of stock options and warrants in exchange for services rendered - 277,344
Common stock issued for services rendered - 81,271
Acquisition of subsidiary (Note B):
Assets acquired $ 4,386,762 $ 4,120,600
Goodwill (including purchase price contingency) 15,797,894 6,477,767
Minority Interest - (19,569 )
Liabilities assumed (1,303,559 ) (1,460,976 )
Common stock issued (15,756,097 ) (1,800,000 )
Notes payable issued - (900,000 )
Purchase price contingency - (5,400,000 )
Direct acquisition costs (250,000 ) (117,822 )
Cash paid for acquisition $ (2,875,000 ) $ (900,000 )
See accompanying footnotes to the unaudited condensed consolidated financial information
News 
Market Data 
Discover 
AI
