Ecosphere Technologies, Inc.

Financials

v3.5.0.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current assets    
Cash $ 9,896 $ 94
Restricted cash 10,000
Accounts receivable, net 31,949 50,806
Inventory 1,168,004 799,323
Prepaid expenses and other current assets 119,383 21,295
Total current assets 1,339,232 871,518
Property and equipment, net 694,938 846,974
Slow moving inventory 200,000 215,786
Patents, net 176,510 179,610
Deposits 58,483 21,340
Total assets 2,469,163 2,135,228
Current liabilities    
Accounts payable 1,542,803 1,323,127
Bank overdraft 37,319
Accrued liabilities 2,375,216 1,632,310
Customer deposits 1,563,400 1,301,400
Current portion of deferred revenue 25,000 25,000
Convertible notes payable, net of discounts 140,000 5,662,900
Current portion of notes payable, net of discounts 218,816 70,429
Related party notes payable 159,733 54,000
Current portion of financing obligations 27,114 70,337
Current portion of capital lease obligation 16,120 16,762
Fair value of liability of derivative instruments 190,543
Total current liabilities 6,258,745 10,193,584
Deferred revenue, net of current portion 432,292 451,042
Convertible notes payable, net of current portion and net of discounts 6,314,679
Notes payable, net of current portion 923,833 81,720
Financing obligations, net of current portion 21,560 29,111
Capital lease obligations, net of current portion 4,160 13,852
Total liabilities 13,955,269 10,769,309
Total redeemable convertible cumulative preferred stock 3,948,095 3,886,031
Commitments and contingencies (Note 11)
Ecosphere Technologies, Inc. stockholders' deficit    
Common stock, $0.01 par value; 300,000,000 shares authorized; 173,713,046 and 165,168,894 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively 1,737,129 1,651,689
Common stock issuable, $0.01 par value; 0 and 500,000 issuable at September 30, 2016 and December 31, 2015, respectively 5,000
Additional paid-in capital 122,102,540 118,522,429
Accumulated deficit (138,530,829) (132,397,790)
Total Ecosphere Technologies, Inc. stockholders' deficit (14,691,160) (12,218,672)
Noncontrolling interest in consolidated subsidiaries (743,041) (301,440)
Total deficit (15,434,201) (12,520,112)
Total liabilities, redeemable convertible cumulative preferred stock and deficit 2,469,163 2,135,228
Series A Preferred Stock [Member]    
Current liabilities    
Redeemable convertible cumulative preferred stock 1,265,369 1,248,494
Series B Preferred Stock [Member]    
Current liabilities    
Redeemable convertible cumulative preferred stock $ 2,682,726 $ 2,637,537
v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues        
Equipment sales and licensing $ 6,250 $ 6,250 $ 18,750 $ 17,708
Royalties 20,968 20,968
Field services 33,854
Aftermarket part and product sales 21,414 8,990 28,489 8,990
Aftermarket part sales, related party 8,506
Total revenues 48,632 15,240 102,061 35,204
Costs and expenses        
Equipment sales and licensing costs (exclusive of depreciation shown below) 11,102 0 24,055 18,772
Field services costs (exclusive of depreciation shown below) 27,307
Aftermarket part and product costs (exclusive of depreciation shown below) 25,979 9,938 29,558 19,466
Selling, general and administrative 979,145 1,217,852 3,782,762 3,402,471
Depreciation and amortization 60,977 91,337 211,016 277,435
Bad debt 162,240 3,643 162,240
Total costs and expenses 1,077,203 1,481,367 4,078,341 3,880,384
Loss from operations (1,028,571) (1,466,127) (3,976,280) (3,845,180)
Loss and impairment on investment in unconsolidated investee (12,177,415) (12,668,298)
Other income (expense)        
Interest expense (315,323) (1,069,448) (781,332) (3,132,067)
Gain (loss) on debt extinguishment 17,993 (1,515,320) (1,988,742) (1,696,007)
Change in fair value of derivative instruments 274,672 258,164
Loss on abandonment of lease (87,994)
Other, net 643 1,544 1,775
Total other expense, net (22,658) (2,584,125) (2,598,360) (4,826,299)
Net loss (1,051,229) (16,227,667) (6,574,640) (21,339,777)
Preferred stock dividends (20,688) (20,688) (62,064) (62,064)
Net loss applicable to common stock before allocation to non controlling interest (1,071,917) (16,248,355) (6,636,704) (21,401,841)
Less: net (income) loss applicable to non-controlling interest in consolidated subsidiaries (54,977) 71,998 441,601 74,940
Net loss applicable to Ecosphere Technologies, Inc. common stock $ (1,126,894) $ (16,176,357) $ (6,195,103) $ (21,326,901)
Net loss per common share applicable to common stock        
Basic $ (0.01) $ (0.10) $ (0.04) $ (0.13)
Diluted $ (0.01) $ (0.10) $ (0.04) $ (0.13)
Weighted average number of common shares outstanding        
Basic 172,840,726 165,168,894 168,825,113 165,090,568
Diluted 172,840,726 165,168,894 168,825,113 165,090,568
v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Operating Activities:    
Net loss applicable to Ecosphere Technologies, Inc. common stock $ (6,195,103) $ (21,326,901)
Adjustments to reconcile net loss applicable to Ecosphere Technologies, Inc. common stock to net cash used in operating activities:    
Preferred stock dividends 62,064 62,064
Depreciation and amortization 211,016 277,435
Non-controlling interest in loss of consolidated subsidiaries (441,601) (74,940)
Amortization of discount on notes payable 166,552 2,624,803
Stock-based compensation expense 1,054,763 349,948
Gain from change in fair value of derivative measurements (258,164)
Loss and impairment on investment in unconsolidated investee 12,668,298
Warrants granted for services 43,306
Modification of warrants and options 41,701
Shares issued for note extension 47,826
Loss on debt extinguishment 1,988,742 1,696,007
Loss on abandonment of lease 87,994
Bad debt expense 3,643 162,240
Changes in operating assets and liabilities:    
Decrease (increase) in accounts receivable 15,214 (107,190)
(Increase) decrease in prepaid expenses and other current assets (101,378) 63,955
Increase in inventory (352,895) (998,457)
Increase in accounts payable 236,286 778,153
Increase (decrease) in accrued liabilities 749,156 399,114
Increase in customer deposits 262,000 1,450,171
Increase in deposits (37,143)
(Decrease) increase in deferred revenue (18,750) 482,292
Net cash used in operating activities (2,524,298) (1,403,481)
Investing Activities:    
Purchase of property and equipment (201,681) (2,396)
Transfer to restricted cash (10,000)
Cash receipts from sale of fixed assets 50,000
Payment of patent costs (5,525) (1,865)
Net cash used in investing activities (167,206) (4,261)
Financing Activities:    
Proceeds from issuance of convertible notes payable and warrants 1,704,000 1,225,000
Proceeds from issuance of related party note payable 109,733 50,000
Proceeds from note payable 990,000 150,000
Proceeds from sale of stock in consolidated subsidiary 100,000
Repayments of related party notes payable (4,000)
Bank overdraft fee (37,319)
Repayments of notes payable and insurance financing (88,309)
Repayments of capital lease obligation (10,334) (12,029)
Repayments of insurance premiums, vehicle and equipment financing (50,774) (43,898)
Net cash provided by financing activities 2,701,306 1,380,764
Net increase (decrease) in cash 9,802 (26,978)
Cash at beginning of period 94 31,800
Cash at end of period 9,896 4,822
Supplemental disclosures of cash flow information:    
Cash paid for interest 17,169 67,097
Cash paid for income taxes
Schedule of non-cash investing and financing activities:    
Accrued preferred stock dividends 62,064 62,064
Beneficial conversion feature on convertible debt and convertible debt modifications charged to additional paid in capital 702,095 1,231,669
Modification of warrants and options 41,701
Conversion of convertible debt 392,422
Reclassification of embedded conversion option liability upon conversion of debt 94,876
Insurance premium finance contract recorded as a prepaid asset $ 24,469 $ 99,588

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