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 September 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

 

ORBSAT 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

 

ORBITAL TRACKING CORP.

(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 November 14, 2019
Common Stock, $0.0001 par value   121,216

 

 

 

 
 

 

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 35
   
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 46
   
ITEM 4. CONTROLS AND PROCEDURES 46
   
PART II. OTHER INFORMATION  
   
ITEM 1. LEGAL PROCEEDINGS 47
   
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 47
   
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 47
   
ITEM 4. MINE SAFETY DISCLOSURES 47
   
ITEM 5. OTHER INFORMATION 47
   
ITEM 6. EXHIBITS 47
   
SIGNATURES 48

 

i
 

 

Part I Financial Information

 

Item 1. Financial Statements

 

The Company’s unaudited financial statements for the three and nine months ended September 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.

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS AS OF

 

    September 30, 2019     December 31, 2018  
      (unaudited)          
ASSETS                
Current assets:                
Cash   $ 91,232     $ 142,888  
Accounts receivable, net     245,441       170,526  
Inventory     448,210       269,024  
Unbilled revenue     67,993       87,080  
Prepaid expenses     37,715       1,926  
Other current assets     83,218       43,713  
Total current assets     973,809       715,157  
                 
Property and equipment, net     1,384,884       1,519,845  
Right of use    

84,181

       -  
Intangible assets, net     181,250       200,000  
                 
Total assets   $

2,624,124

     $ 2,435,002  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current liabilities:                
Accounts payable and accrued liabilities   $ 1,113,605     $ 874,466  
Contract liabilities     45,057       19,701  
Related party payable     18,171       39,027  
Lease liabilities - current    

27,087

      

-

  
Provision for income taxes     11,029       10,696  
Liabilities from discontinued operations     112,397       112,397  
Total current liabilities     1,327,246       1,056,287  
                 
Long term liabilities:                
Convertible debt, net of discount, unamortized, $702,906     102,094       -  
Note payable     121,848       -  
Lease liabilities – long term    

54,479

          
Total Liabilities    

1,605,767

       1,056,287  
                 
Stockholders’ Equity:                
Preferred Stock, $0.0001 par value; 3,333,333 shares authorized                
Series A ($0.0001 par value; 0 and 1,333 shares authorized, and no shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively)     -       -  
Series B ($0.0001 par value; 0 and 2,000 shares authorized, 0 and 222 shares issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively)     -       -  
Series C ($0.0001 par value; 0 and 266,667 shares authorized, 0 and 127,578 shares issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively)     -       13  
Series D ($0.0001 par value; 0 and 333,333 shares authorized, 0 and 192,807 shares issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively)     -       19  
Series E ($0.0001 par value; 0 and 583,067 shares authorized, 0 and 344,947 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively)     -       34  
Series F ($0.0001 par value; 0 and 73,333 shares authorized, 0 and 23,333 issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively)     -       2  
Series G ($0.0001 par value; 0 and 672,667 shares authorized, 0 and 346,840 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively)     -       35  
Series H ($0.0001 par value; 0 and 13,333 shares authorized, 0 and 916 issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively)     -       -  
Series I ($0.0001 par value; 0 and 7,663 shares authorized, 0 and 3,274 issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively)     -       -  
Series J ($0.0001 par value; 0 and 8,333 shares authorized, 0 and 4,313 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively)     -       -  
Series K ($0.0001 par value; 0 and 83,333 shares authorized, 0 and 77,124 issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively)     -       8  
Series L ($0.0001 par value; 0 and 6,667 shares authorized, 0 and 2,000 issued and outstanding as of September 30, 2019, and December 31, 2018, respectively)     -       -  
Common Shares, $0.0001 par value; 50,000,000 shares authorized, 121,216 outstanding as of September 30, 2019 and 62,435 outstanding at December 31, 2018     12       6  
Additional paid-in capital     11,757,027       11,120,193  
Accumulated (deficit)     (10,731,617 )     (9,735,423 )
Accumulated other comprehensive (income) loss     (7,065 )     (6,172 )
Total stockholders’ equity     1,018,357       1,378,715  
                 
Total liabilities and stockholders’ equity   $

2,624,124

     $ 2,435,002  

 

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

 

2
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHNSIVE LOSS

 

    Three Months
Ended
September 30, 2019		     Three Months
Ended
September 30, 2018		     Nine Months
Ended
September 30, 2019		     Nine Months
Ended
September 30, 2018		  
Net sales   $ 1,746,525     $ 1,386,927     $ 4,453,906     $ 4,654,507  
                                 
Cost of sales     1,366,008       1,140,717       3,553,351       3,673,128  
                                 
Gross profit     380,517       246,210       900,555       981,379  
                                 
Operating expenses:                                
Selling and general administrative    

210,600

       162,038      

522,352

       477,698  
Salaries, wages and payroll taxes     176,762       200,675       536,504       566,626  
Stock based compensation     -       47,422       -       47,422  
Professional fees     126,565       44,309       447,908       205,277  
Depreciation and amortization     69,109       74,943       203,234       221,656  
Total operating expenses    

583,036

       529,387      

1,709,998

       1,518,679  
                                 
Loss before other expenses and income taxes     (202,519 )     (283,177 )     (809,443 )     (537,300 )
                                 
Other (income) expense                                
Change in fair value of derivative instruments, net     -       -       69,677       -  
Gain on debt extinguishment     -       -       (134,677 )     -  
Interest earned     (812 )     -       (1,576 )     -  
Interest expense     81,121       -       211,344       110  
Foreign currency exchange rate variance     18,131       32,313       41,238       47,158  
Total other expense     98,440       32,313       186,006       47,268  
                                 
Net loss before income tax expense   $ (300,959 )   $ (315,490 )   $ (995,449 )   $ (584,568 )
                                 
Provision for income taxes     (12 )     8,897       745       8,897  
                                 
Net loss     (300,947 )     (324,387 )     (996,194 )     (593,465 )
                                 
Comprehensive Income:                                
Net loss     (300,947 )     (324,387 )     (996,194 )     (593,465 )
Foreign currency translation adjustments     (494 )     (13,551 )     (893 )     (5,624 )
Comprehensive loss   $ (301,441 )   $ (337,938 )   $ (997,087 )   $ (599,089 )
                                 
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS                                
Weighted number of common shares outstanding – basic & diluted     119,876       62,435       91,359       48,924  
Basic and diluted net (loss) per share   $ (2.51 )   $ (5.20 )   $ (10.90 )   $ (12.13 )

 

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

 

3
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Nine Months Ended September 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         -     $         -       222     $          -         127,578     $      13  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Preferred shares converted to note payable     -       -       -       -       (123,526 )     (12 )
Preferred shares converted to common     -       -       (222 )     -       (4,052 )     (1 )
Exercise of options to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -       -     $ -  

 

For the Nine Months Ended September 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          -     $          -       222     $          -         127,578     $      13  
                                                 
Imputed interest expense related to related party note payable issued for recapitalization     -       -       -       -       -       -  
Sale of Preferred Stock Series J     -       -       -       -       -          
Sale of Preferred Stock Series L                                                
Stock based compensation for options granted                                                
Preferred shares converted to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2018     -     $ -       222     $ -        127,578     $ 13  

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

4
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended September 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, June 30, 2019         -     $          -             -     $         -        -     $         -  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Common issued for post-split adjustments     -       -       -       -       -       -  
Preferred shares converted to note payable     -       -       -       -       -       -  
Preferred shares converted to common     -       -       -       -       -       -  
Exercise of options to common     -       -       -       -                  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -       -     $ -  

 

For the Three Months Ended September 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, June 30, 2018                $          -       222     $          -       127,578     $     13  
                                                 
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, September 30, 2018     -     $ -       222     $ -         127,578     $ 13  

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

5
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Nine Months Ended September 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      192,807     $ 19         344,947     $     34        23,333     $         2  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Common issued for post-split adjustments     -       -       -       -       -       -  
Preferred shares converted to note payable     (147,577 )          (15 )     -       -       -       -  
Preferred shares converted to common     (45,230 )     (4 )     (344,947 )     (34 )     (23,333 )     (2 )
Exercise of options to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -     $ -     $ -  

 

For the Nine Months Ended September 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       192,807     $       19       344,947     $       34         23,333     $        2  
                                                 
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, September 30, 2018      192,807     $ 19        344,947     $ 34     $  23,333     $ 2  

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

6
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended September 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, June 30, 2019                 -     $          -            2,256     $          -                    -     $        -  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Common issued for post-split adjustments     -       -       -       -       -       -  
Preferred shares converted to note payable     -       -       -       -       -       -  
Preferred shares converted to common     -       -       (2,256 )     -       -       -  
Exercise of options to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -       -     $ -  

 

For the Three Months Ended September 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, June 30, 2018     192,807     $     19        344,947     $      34        23,333     $       2  
                                                 
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, September 30, 2018      192,807     $ 19       344,947     $ 34        23,333     $ 2  

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

7
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Nine Months Ended September 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       346,840     $     35       916     $        -       3,274     $        -  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Common issued for post-split adjustments     -       -       -       -       -       -  
Preferred shares converted to note payable      (346,840 )     (35 )     (916 )     -       (3,274 )     -  
Preferred shares converted to common     -       -       -       -       -       -  
Exercise of options to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -       -     $ -  

 

For the Nine Months Ended September 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       346,840     $      35       916     $           -       3,274     $          -  
                                                 
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, September 30, 2018      346,840     $ 35       916     $ -       3,274     $ -  

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

8
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended September 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, June 30, 2019         -     $          -            -     $         -       33     $        -  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Common issued for post-split adjustments     -       -       -       -       -       -  
Preferred shares converted to note payable     -       -       -       -       (33 )     -  
Preferred shares converted to common     -       -       -       -       -       -  
Exercise of options to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -       -     $ -  

 

For the Three Months Ended September 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 June 30, 2018      346,840     $     35       916     $          -        3,274     $          -  
                                                 
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, September 30, 2018     346,840     $ 35        916     $ -       3,274     $ -  

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

9
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Nine Months Ended September 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       4,313     $          -        77,124     $          8       2,000     $          -  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Common issued for post-split adjustments     -       -       -       -       -       -  
Preferred shares converted to note payable     (4,296 )     -       (70,571 )     (7 )     (2,000 )     -  
Preferred shares converted to common     (17 )     -       (6,553 )     (1 )     -       -  
Exercise of options to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -        -     $ -  

 

For the Nine Months Ended September 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     2,980     $          -       77,124     $         8       -     $          -  
                                                 
Imputed interest expense related to related party note payable issued for recapitalization     -       -       -       -       -       -  
Sale of Preferred Stock Series J     1,333       -       -       -       -       -  
Sale of Preferred Stock Series L     -       -       -       -       2,000       -  
Preferred shares converted to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2018      4,313     $ -        77,124     $ 8       2,000     $ -  

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

10
 

 

ORBSAT CORP AND SUBSIDIARIES

FKA: ORBITAL TRACKING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Three Months Ended September 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, June 30, 2019           -     $           -            -     $          -        667     $          -  
                                                 
Beneficial conversion feature of convertible debt     -       -       -       -       -       -  
Common issued for post-split adjustments     -       -       -       -       -       -  
Preferred shares converted to note payable     -       -       -       -       (667 )     -  
Preferred shares converted to common     -       -       -       -                  
Exercise of options to common     -       -       -       -       -       -  
Comprehensive loss     -       -       -       -       -       -  
Net loss     -       -       -       -       -       -  
                                                 
Balance, September 30, 2019     -     $ -       -     $ -       -     $ -  

 

For the Three Months Ended September 30, 2018

 

   

Preferred Stock -

Series J

    

Preferred Stock -

Series K