INTERIM FINANCIAL STATEMENTS DISCLOSURES

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

INTERIM FINANCIAL STATEMENTS DISCLOSURES

13. INTERIM FINANCIAL STATEMENTS DISCLOSURES

Interim financial statements disclosures for the quarterly periods in the years ended December 31, 2016 and 2017 are as follows:

INTERIM BALANCE SHEETS
	September 30, 2016			June 30, 2016			March 31, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	211,281		$	142,395		$	23,142
Accounts receivable - net of allowance for doubtful accounts		160,701			4,521			49,454
Prepaid expenses		55,885			57,473			15,887
Total Current Assets		427,867			204,389			88,483
Property and equipment, net		168,809			138,866			146,193
Goodwill		1,057,509			-			-
TOTAL ASSETS	$	1,654,186		$	343,255		$	234,676

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	330,255		$	305,547		$	205,906
Accrued compensation and related benefits		503,808			473,005			485,229
Related party notes payable		196,905			123,905			46,905
Deferred revenue		127,225			113,493			1,845
Notes payable – from acquisition		25,748			-			-
Convertible notes payable - net of discount		162,868			87,868			97,868
Preferred dividends payable		18,621			18,621			18,621
Unit redemption payable		302,500			302,500			302,500

TOTAL LIABILITIES		1,667,931			1,424,939			1,158,874

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, $.001 par value, 20,000,000 shares authorized - issued and outstanding - 1,461,853, 1,461,853, 1,441,853 - September 30, 2016, June 30, 2016 and March 31, 2016 respectively		1,461			1,461			1,441
Common stock, $.001 par value, 500,000,000 shares authorized - issued and outstanding - 110,289,022, 98,289,022, 98,289,022 - September 30, 2016, June 30, 2016 and March 31, 2016 respectively		186,872			148,289			99,489
Additional paid-in capital		3,023,305			1,926,713			1,905,513
Accumulated deficit		(3,225,384	)		(3,158,148	)		(2,930,661	)
Total stockholders’ equity (deficit)		(13,745	)		(1,081,685	)		(924,198	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,654,186		$	343,255		$	234,676

STATEMENTS OF OPERATIONS	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
	2016			2015			2016			2015
REVENUE	$	728,921		$	163,614		$	1,313,203		$	663,255
DIRECT COSTS		458,417			116,111			847,937			415,015
GROSS PROFIT		270,504			47,503			465,267			248,240
OPERATING EXPENSES
Wages and benefits		190,678			93,630			498,255			210,758
Professional fees		60,791			67,789			298,962			123,891
Bad debts (recovered)		(183	)		9,810			(60,253	)		9,810
General and administrative		80,155			444,579			209,257			928,416
Total Operating Expenses		331,441			615,808			946,220			1,272,875
Loss from operations		(60,937	)		(568,305	)		(480,953	)		(1,024,635	)
OTHER INCOME (EXPENSE)
Interest income (expense)		(6,299	)		(208,875	)		(26,297	)		(221,513	)
NET INCOME(LOSS)	$	(67,236	)	$	(777,180	)	$	(507,251	)	$	(1,246,148	)
Weighted average shares outstanding - Basic and fully diluted		166,598,261			100,264,022			137,350,518			100,264,022
Net loss per share - basic and fully diluted	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.01	)

STATEMENTS OF OPERATIONS	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
	2016			2015			2016			2015
REVENUE	$	300,832		$	2,220		$	584,282		$	27,401
DIRECT COSTS		222,923			14,494			389,520			14,494
GROSS PROFIT		77,909			(12,274	)		194,763			12,907
OPERATING EXPENSES
Wages and benefits		201,149			38,351			307,577			117,129
Professional fees		103,426			16,489			238,171			56,102
Bad debts (recovered)		(60,071	)		-			(60,071	)		-
General and administrative		55,679			33,646			129,102			33,645
Total Operating Expenses		300,183			88,486			614,779			206,876
Income (loss) from operations		(222,274	)		(100,760	)		(420,016	)		(193,969	)
Interest income (expense)		(5,212	)		-			(19,999	)		-
NET INCOME(LOSS)	$	(227,271	)	$	(100,760	)	$	(439,799	)	$	(193,969	)
Weighted average shares outstanding - Basic and fully diluted		145,642,868			99,485,734			122,565,945			99,485,734
Net loss per share - basic and fully diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

STATEMENTS OF OPERATIONS	THREE MONTHS ENDED MARCH 31,
	2016			2015
REVENUE	$	283,450		$	25,181
DIRECT COSTS		166,597			78,778
GROSS PROFIT		116,853			(53,597	)
OPERATING EXPENSES
Wages and benefits		106,427			-
Professional fees		134,744			39,612
General and administrative		73,424			-

Total Operating Expenses		314,596			39,612

INCOME(LOSS) FROM OPERATIONS	$	(197,742	)	$	(93,209	)
Interest income (expense)		(14,786	)		-

NET INCOME (LOSS)		(212,528	)		(93,209	)

Weighted average shares outstanding Basic and fully diluted		99,485,734			99,485,734
Net loss per share - basic and fully diluted	$	(0.00	)	$	(0.00	)

CASH FLOW STATEMENTS	NINE MONTHS PERIODS ENDED SEPTEMBER 30,
	2016			2015
Cash Flows from Operating Activities
Net income (loss)	$	(507,251	)	$	(1,246,148	)
Adjustments to reconcile net loss
Depreciation		32,326			8,484
Loss (gain) on disposal of asset		-			1,873
Stock based compensation		38,553			-
Interest expense		1,800			218,064
Discount amortization		10,606
Changes in operating assets and liabilities
Accounts receivable		(121,128	)		76,204
Other current assets		-			1,091
Loan receivable from member		-			261,573
Prepaid expenses		(31,315	)		-
Accounts payable		88,617			44,104
Accrued compensation		60,924			218,712
Other accrued expenses		-			(57,286	)
Customer deposits		-			(58,226	)
Accrued vacation		-			(3,865	)
Deferred revenue		59,774			-

Cash Used In Operating Activities		(367,093	)		(535,423	)

Cash Flows from Investing Activities
Purchase of Big Al’s		(350,000	)		-
Purchase of furniture, vehicles and equipment		(9,928	)		(141,429	)
Proceeds from disposal asset					14,128

Cash Used In Investing Activities		(359,928	)		(127,301	)

Cash Flows from Financing Activities
Proceeds from issuance of shares		643,170			429,000
Proceeds from subscription receivable		-			2,250
Note payables		238,200			472,405
Redeemable units		-			(247,500	)

Cash Provided by Financing Activities		881,370			656,155

Change in Cash and Cash Equivalents		154,350			(6,569	)

Cash and Cash Equivalents - Beginning of period		56,932			42,525

Cash and Cash Equivalents -End of period	$	211,281		$	35,956

CASH FLOW STATEMENTS	SIX MONTHS PERIOD ENDED JUNE 30,
	2016			2015
Cash Flows from Operating Activities
Net loss	$	(440,015	)	$	(193,969	)
Adjustments to reconcile net loss
Depreciation		14,653			-
Stock based compensation		15,998			-
Interest expense		1,200			-
Discount amortization		10,606
Changes in operating assets and liabilities
Accounts receivable		35,052			(27,401	)
Prepaid expenses		(32,902	)		-
Accounts payable		63,909			99,157
Accrued compensation		30,121			47,487
Deferred revenue		46,042			-

Cash Used in Operating Activities		(256,062	)		(74,726	)

Cash Flows from Investing Activities
Purchase of furniture, vehicles and equipment		(726	)		-

Cash Used in Investing Activities		(726	)		-

Cash Flows from Financing Activities
Issuance of shares		250,725			-
Note payable		90,800			69,642

Cash Provided by Financing Activities		341,525			69,642

Change in Cash and Cash Equivalents		85,464			(5,084	)

Cash and Cash Equivalents - Beginning of period		56,932			(1,870	)

Cash and Cash Equivalents -End of period	$	142,395		$	(6,954	)

CASH FLOW STATEMENTS	THREE MONTHS PERIOD ENDED MARCH 31,
	2016			2015
Cash Flows from Operating Activities
Net loss	$	(212,528	)		(93,209	)
Adjustments to reconcile net loss
Depreciation		7,327			-
Stock based compensation		7,999			-
Interest expense		600			-
Discount amortization		10,606			-
Changes in operating assets and liabilities
Accounts receivable		(9,881	)		(25,181	)
Prepaid expenses		8,683			-
Accounts payable		(35,732	)		39,613
Accruals		42,345			42,034
Deferred revenue		(65,606	)		-

Cash Used in Operating Activities		(246,187	)		(36,743	)

Cash Flows from Investing Activities
Purchase of furniture, vehicles and equipment		(727	)		-

Cash Used in Investing Activities		(726	)		-

Cash Flows from Financing Activities
Issuance of shares		188,724			-
Note payable		24,400			36,743

Cash Provided by Financing Activities		213,124			36,743

Change in Cash and Cash Equivalents		(33,790	)		-

Cash and Cash Equivalents - Beginning of period		56,932			(1,870	)

Cash and Cash Equivalents -End of period	$	23,142		$	(1,870	)

INTERIM BALANCE SHEETS
ASSETS	June 30, 2017			March 31, 2017
Current Assets
Cash and cash equivalents	$	5,299		$	10,160
Accounts receivable (net of allowance for doubtful accounts)		101,632			-
Prepaid expenses		59,769			59,548
Total Current Assets		166,700			261,201
Property and equipment, net		138,896			151,911
Goodwill		1,057,509			1,057,509

TOTAL ASSETS	$	1,363,104		$	1,470,621
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	400,721		$	387,571
Accrued compensation and related benefits		5,652			87,809
Related party notes payable		485,911			534,816
Deferred revenue		(20,045	)		-
Taxes payable		97,128			103,143
Notes payable		74,654			86,650
Preferred dividends payable		18,621			18,621
Unit redemption payable		302,500			302,500

TOTAL LIABILITIES		1,365,141			1,521,110

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, $.001 par value, 20,000,000 shares authorized - issued and outstanding - 1,461,853, 1,461,853, 1,441,853 - September 30, 2016, June 30, 2016 and March 31, 2016 respectively		1,461			1,461
Common stock, $.001 par value, 500,000,000 shares authorized - issued and outstanding - 110,289,022, 98,289,022, 98,289,022 - September 30, 2016, June 30, 2016 and March 31, 2016 respectively		132,452			126,352
Additional paid-in capital		4,115,920			3,770,479
Accumulated deficit		(4,251,870	)		(3,927,806	)
Total stockholders’ equity (deficit)		(2,037	)		(29,514	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,363,104		$	1,461,596

STATEMENTS OF OPERATIONS	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
	2017			2016			2017			2016
REVENUE	$	851,044		$	300,832		$	1,908,280		$	584,282
DIRECT COSTS		642,286			222,923			1,490,466			389,520

GROSS PROFIT		208,758			77,909			417,815			194,762

OPERATING EXPENSES
Wages and benefits		131,580			209,149			243,784			307,577
Professional fees		46,541			104,426			93,081			238,171
Bad debts (recovered)		-			(60,071	)		-			(60,071	)
General and administrative		354,702			55,679			721,591			129,102

Total Operating Expenses		532,822			300,183			1,058,456			614,779
Income (loss) from operations		(324,064	)		(222,274	)		(640,641	)		(420,016	)
Interest income (expense)		-			(5,212	)		-			(19,999	)

NET INCOME(LOSS)	$	(324,064	)	$	(227,486	)	$	(640,641	)	$	(440,014	)
Weighted average shares outstanding - Basic and fully diluted		132,369,537			99,485,734			131,179,352			99,485,734
Net loss per share - basic and fully diluted	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)

STATEMENTS OF OPERATIONS	deferred tax assets consist MARCH 31,
	2017			2016
REVENUE	$	1,057,237		$	283,450
DIRECT COSTS		848,180			166,597

GROSS PROFIT		209,057			116,853

OPERATING EXPENSES
Wages and benefits		112,204			106,427
Professional fees		46,541			134,744
General and administrative		366,889			73,424

Total Operating Expenses		525,634			314,596
Income (loss) from operations		(316,578	)		(197,742	)
Interest income (expense)		-			(14,786	)

NET INCOME(LOSS)	$	(316,578	)	$	(212,528	)

Weighted average shares outstanding Basic and fully diluted		126,351,955			99,485,734
Net loss per share - basic and fully diluted	$	(0.00	)	$	(0.00	)

CASH FLOW STATEMENTS	SIX MONTHS PERIOD ENDED JUNE 30,
	2017			2016
Cash Flows from Operating Activities
Net loss	$	(666,117	)	$	(440,015	)
Adjustments to reconcile net loss
Depreciation		31,886			14,653
Stock based compensation		93,081			15,998
Interest expense					1,200
Discount amortization		-			10,606
Changes in operating assets and liabilities
Accounts receivable		120,962			35,052
Prepaid expenses		57,748			(32,903	)
Accounts payable		(22,374	)		63,909
Accrued compensation		2,016			30,121
Deferred revenue		-			46,042

Cash Used in Operating Activities		(402,843	)		(255,336	)

Cash Flows from Investing Activities
Purchase of furniture, vehicles and equipment		(7,089	)		(727	)

Cash Used in Investing Activities		(7,089	)		(727	)

Cash Flows from Financing Activities
Issuance of shares		-			250,725
Note payable - related party		310,000			90,800
Convertible notes		102,814			-
Lien notes payable		(2,259	)

Cash Provided by Financing Activities		410,555			341,525

Change in Cash and Cash Equivalents		623			85,464

Cash and Cash Equivalents - Beginning of period		(24,196	)		56,932

Cash and Cash Equivalents -End of period	$	(23,573	)	$	142,395

CASH FLOW STATEMENTS	THREE MONTHS PERIOD ENDED MARCH 31
	2017			2016
Cash Flows from Operating Activities
Net loss	$	(334,119	)	$	(212,528	)
Adjustments to reconcile net loss
Depreciation		18,280			7,326
Stock based compensation		46,541			7,999
Interest expense					600
Discount amortization		-			10,606
Changes in operating assets and liabilities
Accounts receivable		49,814			(9,881	)
Prepaid expenses		28,874			8,683
Accounts payable		22,495			(35,732	)
Accrued compensation		90,188			42,345
Deferred revenue		-			(65,606	)

Cash Used in Operating Activities		(77,927	)		(246,187	)

Cash Flows from Investing Activities
Purchase of furniture, vehicles and equipment		(7,089	)		(727	)

Cash Used in Investing Activities		7,089	)		(727	)

Cash Flows from Financing Activities
Issuance of shares		-			188,724
Lien notes payable		(877	)		-
Note payable		102,814			24,400

Cash Provided by Financing Activities		101,937			213,124

Change in Cash and Cash Equivalents		16,921			(33,789	)

Cash and Cash Equivalents - Beginning of period		(24,196	)		56,932

Cash and Cash Equivalents -End of period	$	(7,275	)	$23,142

CSA HOLDINGS INC. 10-K