UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2019

 

OR

 

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from ______________to _______________.

 

Commission File Number 000-25097

 

ORBITAL TRACKING CORP.

(Exact name of registrant as specified in its charter)

 

Nevada   65-0783722

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

     

18851 NE 29th Avenue, Suite 700

Aventura, FL

  33180
(Address of principal executive offices   (Zip Code)

 

(305)-560-5355

Registrant’s telephone number, including area code

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ] Accelerated filer  [  ]
Non-accelerated filer [X] Smaller reporting company [X]
  Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.

 

Class   Outstanding at August 14, 2019
Common Stock, $0.0001 par value   1,792,834

 

 

 


   
   

 

FORM 10-Q

 

INDEX

 

  Page
   
PART I: FINANCIAL INFORMATION  
   
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) 2
   
CONDENSED CONSOLIDATED BALANCE SHEETS 2
   
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 3
   
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 4
   
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 16
   
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 17
   
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36
   
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 47
   
ITEM 4. CONTROLS AND PROCEDURES 47
   
PART II. OTHER INFORMATION  
   
ITEM 1. LEGAL PROCEEDINGS 48
   
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 48
   
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 48
   
ITEM 4. MINE SAFETY DISCLOSURES 48
   
ITEM 5. OTHER INFORMATION 48
   
ITEM 6. EXHIBITS 48
   
SIGNATURES 49

 

 i 
   

 

Part I Financial Information

 

Item 1. Financial Statements

 

The Company’s unaudited financial statements for the three and six months ended June 30, 2019 and for comparable periods in the prior year are included below. The financial statements should be read in conjunction with the notes to financial statements that follow.

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS AS OF

 

   June 30, 2019   December 31, 2018 
    (unaudited)      
ASSETS          
Current assets:          
Cash  $330,451   $142,888 
Accounts receivable, net   176,967    170,526 
Inventory   359,409    269,024 
Unbilled revenue   68,056    87,080 
Prepaid expenses   47,500    1,926 
Other current assets   108,168    43,713 
Total current assets   1,090,551    715,157 
           
Property and equipment, net   1,419,165    1,519,845 
Intangible assets, net   187,500    200,000 
           
Total assets  $2,697,216   $2,435,002 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current liabilities:          
Accounts payable and accrued liabilities  $1,052,848   $874,466 
Deferred revenue   25,487    19,701 
Related party payable   18,918    39,027 
Provision for income taxes   11,398    10,696 
Liabilities from discontinued operations   112,397    112,397 
Total current liabilities   1,221,048    1,056,287 
           
Long term liabilities:          
Convertible debt, net of discount, unamortized, $770,479   34,521    - 
Note payable   121,848    - 
Total  Liabilities   1,377,417    1,056,287 
           
Stockholders’ Equity:          
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized          
Series A ($0.0001 par value; 20,000 shares authorized, and no shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)   -    - 
Series B ($0.0001 par value; 30,000 shares authorized, 0 and 3,333 shares issued and outstanding, as of June 30, 2019 and December 31, 2018, respectively)   -    1 
Series C ($0.0001 par value; 4,000,000 shares authorized, 0 and 1,913,676 shares issued and outstanding, as of June 30, 2019 and December 31, 2018, respectively)   -    191 
Series D ($0.0001 par value; 5,000,000 shares authorized, 0 and 2,892,109 shares issued and outstanding, as of June 30, 2019 and December 31, 2018, respectively)   -    289 
Series E ($0.0001 par value; 8,746,000 shares authorized, 33,840 and 5,174,200 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)   3    517 
Series F ($0.0001 par value; 1,100,000 shares authorized, 0 and 349,999 issued and outstanding, as of June 30, 2019 and December 31, 2018, respectively)   -    35 
Series G ($0.0001 par value; 10,090,000 shares authorized, 0 and 5,202,602 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)   -    520 
Series H ($0.0001 par value; 200,000 shares authorized, 0 and 13,741 issued and outstanding, as of June 30, 2019 and December 31, 2018, respectively)   -    1 
Series I ($0.0001 par value; 114,944 shares authorized, 500 and 49,110 issued and outstanding, as of June 30, 2019 and December 31, 2018, respectively)   -    5 
Series J ($0.0001 par value; 125,000 shares authorized, 0 and 64,698 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)   -    6 
Series K ($0.0001 par value; 1,250,000 shares authorized, 0 and 1,156,866 issued and outstanding, as of June 30, 2019 and December 31, 2018, respectively)   -    116 
Series L ($0.0001 par value; 100,000 shares authorized, 10,000 and 30,000, issued and outstanding as of June 30, 2019, and December 31, 2018, respectively)   1    3 
Common Shares, $0.0001 par value; 750,000,000 shares authorized, 1,765,245 outstanding as of June 30, 2019 and 936,519 outstanding at December 31, 2018   177    94 
Additional paid-in capital   11,756,858    11,118,531 
Accumulated (deficit)   (10,430,669)   (9,735,422)
Accumulated other comprehensive (income) loss   (6,571)   (6,172)
Total stockholders’ equity   1,319,799    1,378,715 
           
Total liabilities and stockholders’ equity  $2,697,216   $2,435,002 

 

See the accompanying notes to the unaudited condensed consolidated financial statements.

 

 2 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHNSIVE LOSS

 

   Three Months
Ended
June 30, 2019
   Three Months
Ended
June 30, 2018
   Six Months
Ended
June 30, 2019
   Six Months
Ended
June 30, 2018
 
Net sales  $1,409,010   $1,599,642   $2,707,381   $3,267,580 
                     
Cost of sales   1,134,901    1,243,569    2,187,343    2,532,411 
                     
Gross profit   274,109    356,073    520,038    735,169 
                     
Operating expenses:                    
Selling and general administrative   172,749    160,668    311,752    315,660 
Salaries, wages and payroll taxes   186,423    185,231    359,742    365,951 
Professional fees   218,148    51,776    321,343    160,968 
Depreciation and amortization   66,911    71,440    134,125    146,713 
Total operating expenses   644,231    469,115    1,126,962    989,292 
                     
Loss before other expenses and income taxes   (370,122)   (113,042)   (606,924)   (254,123)
                     
Other (income) expense                    
Change in fair value of derivative instruments, net   32,752   -    

69,677

    - 

Gain on debt extinguishment

   

(134,677

)   -    

(134,677

)   - 
Interest earned   (764)   -    (764)   - 
Interest expense   111,004    34    130,223    110 
Foreign currency exchange rate variance   8,430    10,544    23,107    14,845 
Total other expense   16,745    10,578    87,566    14,955 
                     
Net loss before income tax expense  $(386,867)  $(123,620)  $(694,490)  $(269,078)
                     
Provision for income taxes   757    -    757    - 
                     
Net loss  (387,624)  (123,620)   (695,247)  (269,078) 
                     
Comprehensive Income:                    
Net loss   (387,624)   (123,620)   (695,247)   (269,078)
Foreign currency translation adjustments   (218)   (12,127)   (399)   (7,127)
Comprehensive loss  $(387,842)  $(135,747)  $(695,646)  $(276,205)
                     
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS                    
Weighted number of common shares outstanding – basic & diluted   1,549,377    936,519    1,153,282    733,865 
Basic and diluted net (loss) per share  $(0.25)  $(0.14)  $(0.60)  $(0.38)

 

See the accompanying notes to the unaudited condensed consolidated financial statements.

 

 3 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Six Months Ended June 30, 2019

 

   Preferred Stock - Series A   Preferred Stock - Series B  

Preferred Stock -

Series C

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2018     -   $     -    3,333   $    1      1,913,676   $191 
                               
Beneficial conversion feature of convertible debt   -    -    -    -    -    - 
Preferred shares converted to note payable   -    -    -    -    (1,852,894)   (185)
Preferred shares converted to common   -    -    (3,333)   (1)   (60,782)   (6)
Exercise of options to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    -   $-    -   $- 

 

For the Six Months Ended June 30, 2018

 

   Preferred Stock - Series A   Preferred Stock - Series B  

Preferred Stock -

Series C

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2017     -   $    -    3,333   $     1    1,913,676   $191 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   -    -    -    -    -      
Sale of Preferred Stock Series L                              
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018   -   $-    3,333   $1      1,913,676   $191 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 4 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended June 30, 2019

 

   Preferred Stock - Series A   Preferred Stock - Series B  

Preferred Stock -

Series C

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, March 31, 2019     -   $     -    3,333   $    1      1,913,676   $191 
                               
Beneficial conversion feature of convertible debt   -    -    -    -    -    - 
Preferred shares converted to note payable   -    -    (3,333)   (1)   (1,852,894)   (185)
Preferred shares converted to common   -    -    -    -    (60,782)   (6)
Exercise of options to common   -    -    -    -           
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    -   $-    -   $- 

 

For the Three Months Ended June 30, 2018

 

   Preferred Stock - Series A   Preferred Stock - Series B  

Preferred Stock -

Series C

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, March 31, 2018          $    -    3,333   $      1    1,913,676   $191 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   -    -    -    -    -    - 
Sale of Preferred Stock Series L   -    -    -    -    -    - 
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018   -   $-    3,333   $1      1,913,676   $191 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 5 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Six Months Ended June 30, 2019

 

  

Preferred Stock -

Series D

  

Preferred Stock -

Series E

  

Preferred Stock -

Series F

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2018     2,892,109   $289      5,174,200   $517      349,999   $35 
                               
Beneficial conversion feature of convertible debt   -    -    -    -    -    - 
Preferred shares converted to note payable   (2,213,660)   (221)   -    -    -    - 
Preferred shares converted to common   (678,449)   (68)   (5,140,360)   (514)   (349,999)   (35)
Exercise of options to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    33,840   $3   $-   $- 

 

For the Six Months Ended June 30, 2018

 

  

Preferred Stock -

Series D

  

Preferred Stock -

Series E

  

Preferred Stock -

Series F

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2017   2,892,109   $289    5,174,200   $517    349,999   $   35 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   -    -    -    -           
Sale of Preferred Stock Series L   -    -    -    -    -    - 
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018     2,892,109   $289      5,174,200   $517   $  349,999   $35 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 6 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended June 30, 2019

 

  

Preferred Stock -

Series D

  

Preferred Stock -

Series E

  

Preferred Stock -

Series F

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, March 31, 2019     2,892,109   $289      5,174,200   $517      349,999   $35 
                               
Beneficial conversion feature of convertible debt   -    -    -    -    -    - 
Preferred shares converted to note payable   (2,213,660)   (221)   -    -    (349,999)   (35)
Preferred shares converted to common   (678,449)   (68)   (5,140,360)   (514)   -    - 
Exercise of options to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    33,840   $3    -   $- 

 

For the Three Months Ended June 30, 2018

 

  

Preferred Stock -

Series D

  

Preferred Stock -

Series E

  

Preferred Stock -

Series F

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, March 31, 2018   2,892,109   $289    5,174,200   $517    349,999   $   35 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   -    -    -    -    -    - 
Sale of Preferred Stock Series L   -    -    -    -    -    - 
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018     2,892,109   $289    5,174,200   $517      349,999   $35 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 7 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Six Months Ended June 30, 2019

 

  

Preferred Stock –

Series G

   Preferred Stock – Series H   Preferred Stock – Series I 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2018   5,202,602   $520    13,741   $   1    49,110   $    5 
                               
Beneficial conversion feature of convertible debt   -    -    -    -    -    - 
Preferred shares converted to note payable     (5,202,602)   (520)   (13,741)   (1)   (48,610)   (5)
Preferred shares converted to common   -    -    -    -    -    - 
Exercise of options to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    -   $-    500   $- 

 

For the Six Months Ended June 30, 2018

 

  

Preferred Stock -

Series G

  

Preferred Stock -

Series H

  

Preferred Stock -

Series I

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2017   5,202,602   $520    13,741   $     1    49,110   $      5 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   -    -    -    -    -    - 
Sale of Preferred Stock Series L   -    -    -    -    -    - 
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018      5,202,602   $520    13,741   $1    49,110   $5 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 8 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended June 30, 2019

 

   Preferred Stock –
Series G
   Preferred Stock – Series H   Preferred Stock – Series I 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, March 31, 2019     5,202,602   $520    13,741   $     1    49,110   $      5 
                               
Beneficial conversion feature of convertible debt   -    -    -    -    -    - 
Preferred shares converted to note payable   (5,202,602)   (520)   (13,741)   (1)   (48,610)   (5)
Preferred shares converted to common   -    -    -    -    -    - 
Exercise of options to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    -   $-    500   $- 

 

For the Three Months Ended June 30, 2018

 

  

Preferred Stock -

Series G

   Preferred Stock - Series H   Preferred Stock - Series I 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance March 31, 2018     5,202,602   $520    13,741   $    1      49,110   $     5 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   -    -    -    -    -    - 
Sale of Preferred Stock Series L   -    -    -    -    -    - 
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018   5,202,602   $520      13,741   $1    49,110   $5 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 9 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Six Months Ended June 30, 2019

 

   Preferred Stock – Series J  

Preferred Stock –

Series K

   Preferred Stock – Series L 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2018     64,698   $        6      1,156,866   $116    30,000   $        3 
                               
Beneficial conversion feature of convertible debt   -    -    -    -           
Preferred shares converted to note payable   (64,442)   (6)   (1,058,569)   (106)   (20,000)   (2)
Preferred shares converted to common   (256)   -    (98,297)   (10)   -    - 
Exercise of options to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    -   $-      10,000   $1 

 

For the Six Months Ended June 30, 2018

 

   Preferred Stock – Series J  

Preferred Stock –

Series K

   Preferred Stock – Series L 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, December 31, 2017   44,698   $        4    1,156,866   $116    -   $      - 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   20,000    2    -    -    -    - 
Sale of Preferred Stock Series L   -    -    -    -    30,000    3 
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018     64,698   $6      1,156,866   $116    30,000   $3 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 10 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended June 30, 2019

 

   Preferred Stock - Series J  

Preferred Stock -

Series K

   Preferred Stock - Series L 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, March 31, 2019     64,698   $      6      1,156,866   $116      30,000   $    3 
                               
Beneficial conversion feature of convertible debt   -    -    -    -    -    - 
Preferred shares converted to note payable   (64,442)   (6)   (1,058,569)   (106)   (20,000)   (2)
Preferred shares converted to common   (256)   -    (98,297)   (10)          
Exercise of options to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2019   -   $-    -   $-    10,000   $1 

 

For the Three Months Ended June 30, 2018

 

  

Preferred Stock -

Series J

  

Preferred Stock -

Series K

  

Preferred Stock -

Series L

 
   $0.0001 Par Value   $0.0001 Par Value   $0.0001 Par Value 
   Shares   Amount   Shares   Amount   Shares   Amount 
Balance, March 31, 2018   44,698   $      4    1,156,866   $116    -   $     - 
                               
Imputed interest expense related to related party note payable issued for recapitalization   -    -    -    -    -    - 
Sale of Preferred Stock Series J   20,000    2    -    -    30,000    3 
Sale of Preferred Stock Series L   -    -    -    -           
Preferred shares converted to common   -    -    -    -    -    - 
Comprehensive loss   -    -    -    -    -    - 
Net loss   -    -    -    -    -    - 
                               
Balance, June 30, 2018     64,698   $6      1,156,866   $116      30,000   $3 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 11 

 

 

ORBITAL TRACKING CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Six Months Ended June 30, 2019

 

   Common Stock   Additional    
   $0.0001 Par Value   Paid in   Accumulated 
   Shares   Amount   Capital   Deficit 
Balance, December 31, 2018   936,519   $94   $11,118,531   $(9,735,422)
                     
Beneficial conversion feature of convertible debt   -    -    805,000    - 
Preferred shares converted to note payable   -    -    (167,188)   - 
Preferred shares converted to common   504,441    50    547    - 
Exercise of options to common   324,285    32    (32)   - 
Comprehensive loss   -    -    -    - 
Net loss   -    -    -    (695,247)
                     
Balance, June 30, 2019   1,765,245   $177   $  11,756,858   $  (10,430,669)

 

For the Six Months Ended June 30, 2018

 

   Common Stock   Additional