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
i |
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 | |||||||||||||||