Delaware
|
46-5482689
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
|
|
2525 E Arizona Biltmore Circle, Suite 237
|
|
Phoenix, AZ
|
85016
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☒
|
Emerging growth company
|
☒
|
|
|
PART I
|
|
Page
|
|
|
|
Item 1.
|
Financial Statements
|
3
|
|
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
26
|
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
31
|
|
|
|
Item 4.
|
Controls and Procedures
|
31
|
|
|
|
PART II
|
|
|
|
|
|
Item 1.
|
Legal Proceedings
|
32
|
|
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
32
|
|
|
|
Item 3.
|
Defaults Upon Senior Securities
|
32
|
|
|
|
Item 5.
|
Other Information
|
32
|
|
|
|
Item 6.
|
Exhibits
|
33
|
|
|
|
|
Signatures
|
34
|
ALPINE 4 TECHNOLOGIES, LTD. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash
|
$
|
160,177
|
$
|
207,205
|
||||
Accounts receivable
|
5,006,650
|
2,610,354
|
||||||
Inventory
|
3,054,417
|
2,175,795
|
||||||
Capitalized contract costs
|
64,234
|
64,234
|
||||||
Prepaid expenses and other current assets
|
1,002,819
|
222,200
|
||||||
Assets of discontinued operations
|
-
|
121,296
|
||||||
Total current assets
|
9,288,297
|
5,401,084
|
||||||
Property and equipment, net
|
11,912,039
|
7,990,556
|
||||||
Intangible asset, net
|
1,363,671
|
677,210
|
||||||
Right of use assets, net
|
583,761
|
-
|
||||||
Goodwill
|
3,007,453
|
3,193,861
|
||||||
Other non-current assets
|
346,655
|
290,238
|
||||||
Assets of discontinued operations
|
-
|
387,727
|
||||||
TOTAL ASSETS
|
$
|
26,501,876
|
$
|
17,940,676
|
||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
$
|
3,606,209
|
$
|
3,102,970
|
||||
Accrued expenses
|
2,653,876
|
1,254,853
|
||||||
Deferred revenue
|
-
|
25,287
|
||||||
Derivative liabilities
|
5,730,110
|
1,892,321
|
||||||
Deposits
|
12,509
|
12,509
|
||||||
Notes payable, current portion
|
6,863,646
|
3,585,603
|
||||||
Notes payable, related parties, current portion
|
209,500
|
192,000
|
||||||
Convertible notes payable, current portion, net of discount of $353,523 and $942,852
|
1,132,396
|
2,644,735
|
||||||
Financing lease obligation, current portion
|
224,002
|
105,458
|
||||||
Operating lease obligation, current portion
|
203,504
|
|||||||
Acquisition contingency
|
500,000
|
-
|
||||||
Net liabilities of discontinued operations
|
-
|
2,752,447
|
||||||
Total current liabilities
|
21,135,752
|
15,568,183
|
||||||
Notes payable, net of current portion
|
5,703,994
|
4,517,441
|
||||||
Convertible notes payable, net of current portion
|
1,971,589
|
450,000
|
||||||
Financing lease obligations, net of current portion
|
11,518,290
|
8,295,176
|
||||||
Operating lease obligations, net of current portion
|
384,410
|
-
|
||||||
Deferred tax liability
|
608,304
|
608,304
|
||||||
TOTAL LIABILITIES
|
41,322,339
|
29,439,104
|
||||||
STOCKHOLDERS' DEFICIT:
|
||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at June 30, 2019 and December 31, 2018
|
-
|
-
|
||||||
Class A Common stock, $0.0001 par value, 100,000,000 shares authorized, 62,213,334 and 26,567,410 shares issued and outstanding at June 30, 2019 and December 31, 2018
|
6,222
|
2,657
|
||||||
Class B Common stock, $0.0001 par value, 5,000,000 shares authorized, 5,000,000 and 5,000,000 shares issued and outstanding at June 30, 2019 and December 31, 2018
|
500
|
500
|
||||||
Additional paid-in capital
|
17,660,074
|
17,018,509
|
||||||
Accumulated deficit
|
(32,487,259
|
)
|
(28,520,094
|
)
|
||||
Total stockholders' deficit
|
(14,820,463
|
)
|
(11,498,428
|
)
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$
|
26,501,876
|
$
|
17,940,676
|
ALPINE 4 TECHNOLOGIES, LTD. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Revenue
|
$
|
6,475,843
|
$
|
3,621,348
|
$
|
13,601,832
|
$
|
6,227,829
|
||||||||
Cost of revenue
|
5,222,415
|
2,414,603
|
10,230,871
|
4,358,177
|
||||||||||||
Gross Profit
|
1,253,428
|
1,206,745
|
3,370,961
|
1,869,652
|
||||||||||||
Operating expenses:
|
||||||||||||||||
General and administrative expenses
|
1,303,627
|
1,240,504
|
3,770,129
|
1,867,943
|
||||||||||||
Total operating expenses
|
1,303,627
|
1,240,504
|
3,770,129
|
1,867,943
|
||||||||||||
Income (loss) from operations
|
(50,199
|
)
|
(33,759
|
)
|
(399,168
|
)
|
1,709
|
|||||||||
Other expenses
|
||||||||||||||||
Interest expense
|
(1,006,494
|
)
|
(604,110
|
)
|
(2,038,124
|
)
|
(941,448
|
)
|
||||||||
Change in value of derivative liability
|
(3,970,614
|
)
|
239,610
|
(4,078,485
|
)
|
246,025
|
||||||||||
Gain on extinguishment of debt
|
-
|
-
|
-
|
6,305
|
||||||||||||
Other income
|
70,631
|
49,811
|
128,763
|
117,659
|
||||||||||||
Total other expenses
|
(4,906,477
|
)
|
(314,689
|
)
|
(5,987,846
|
)
|
(571,459
|
)
|
||||||||
Loss before income tax
|
(4,956,676
|
)
|
(348,448
|
)
|
(6,387,014
|
)
|
(569,750
|
)
|
||||||||
Income tax (benefit)
|
-
|
-
|
-
|
-
|
||||||||||||
Loss from continuing operations
|
(4,956,676
|
)
|
(348,448
|
)
|
(6,387,014
|
)
|
(569,750
|
)
|
||||||||
Discontinued operations:
|
||||||||||||||||
Loss from operations of discontinued operations
|
-
|
(228,846
|
)
|
(95,179
|
)
|
(668,622
|
)
|
|||||||||
Gain on disposition of discontinued operations
|
-
|
-
|
2,515,028
|
-
|
||||||||||||
Total discontinued operations
|
-
|
(228,846
|
)
|
2,419,849
|
(668,622
|
)
|
||||||||||
Net income (loss)
|
$
|
(4,956,676
|
)
|
$
|
(577,294
|
)
|
$
|
(3,967,165
|
)
|
$
|
(1,238,372
|
)
|
||||
Weighted average shares outstanding :
|
||||||||||||||||
Basic
|
38,675,118
|
27,942,042
|
35,347,086
|
26,642,693
|
||||||||||||
Diluted
|
38,675,118
|
27,942,042
|
35,347,086
|
26,642,693
|
||||||||||||
Basic Income (loss) per shares
|
||||||||||||||||
Continuing operations
|
$
|
(0.13
|
)
|
$
|
(0.01
|
)
|
$
|
(0.18
|
)
|
$
|
(0.02
|
)
|
||||
Discontinued operations
|
-
|
$
|
(0.01
|
)
|
0.07
|
$
|
(0.03
|
)
|
||||||||
|
$
|
(0.13
|
)
|
(0.02
|
)
|
$
|
(0.11
|
)
|
(0.05
|
)
|
||||||
Diluted income (loss) per shares
|
||||||||||||||||
Continuing operations
|
$
|
(0.13
|
)
|
$
|
(0.01
|
)
|
$
|
(0.18
|
)
|
$
|
(0.02
|
)
|
||||
Discontinued operations
|
-
|
$
|
(0.01
|
)
|
0.07
|
$
|
(0.03
|
)
|
||||||||
|
$
|
(0.13
|
)
|
(0.02
|
)
|
$
|
(0.11
|
)
|
(0.05
|
)
|
ALPINE 4 TECHNOLOGIES, LTD. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
|
||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||
Additional
|
Total
|
|||||||||||||||||||||||||||
Class A Common Stock
|
Class B Common Stock
|
Paid-in
|
Accumulated
|
Stockholders'
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Deficit
|
||||||||||||||||||||||
Balance, December 31, 2018
|
26,567,410
|
$
|
2,657
|
5,000,000
|
$
|
500
|
$
|
17,018,509
|
$
|
(28,520,094
|
)
|
$
|
(11,498,428
|
)
|
||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest
|
1,670,000
|
167
|
-
|
-
|
26,421
|
-
|
26,588
|
|||||||||||||||||||||
Derivative liability resolution
|
-
|
-
|
-
|
-
|
10,993
|
-
|
10,993
|
|||||||||||||||||||||
Share-based compensation expense
|
-
|
-
|
-
|
-
|
19,341
|
- |
19,341
|
|||||||||||||||||||||
Net income for the three months
|
-
|
-
|
-
|
-
|
-
|
989,511
|
989,511
|
|||||||||||||||||||||
Balance, March 31, 2019
|
28,237,410
|
2,824
|
5,000,000
|
500
|
17,075,264
|
(27,530,583
|
)
|
(10,451,995
|
)
|
|||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest
|
33,975,924
|
3,398
|
-
|
-
|
232,551
|
-
|
235,949
|
|||||||||||||||||||||
Derivative liability resolution
|
-
|
-
|
-
|
-
|
332,703
|
-
|
332,703
|
|||||||||||||||||||||
Share-based compensation expense
|
-
|
-
|
-
|
-
|
19,556
|
-
|
19,556
|
|||||||||||||||||||||
Net loss for the three months
|
-
|
-
|
-
|
-
|
-
|
(4,956,676
|
)
|
(4,956,676
|
)
|
|||||||||||||||||||
Balance, June 30, 2019
|
62,213,334
|
$
|
6,222
|
5,000,000
|
$
|
500
|
$
|
17,660,074
|
$
|
(32,487,259
|
)
|
$
|
(14,820,463
|
)
|
||||||||||||||
Balance, December 31, 2017
|
23,222,087
|
$
|
2,322
|
1,600,000
|
$
|
160
|
$
|
16,573,632
|
$
|
(20,433,875
|
)
|
$
|
(3,857,761
|
)
|
||||||||||||||
Adoption of ASC 606
|
-
|
-
|
-
|
-
|
-
|
(178,202
|
)
|
(178,202
|
)
|
|||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest
|
120,000
|
12
|
-
|
-
|
15,588
|
-
|
15,600
|
|||||||||||||||||||||
Issuance of common stock for modification of debt
|
100,000
|
10
|
-
|
-
|
14,990
|
-
|
15,000
|
|||||||||||||||||||||
Issuance of shares for debt discount
|
333,333
|
33
|
-
|
-
|
56,633
|
-
|
56,666
|
|||||||||||||||||||||
Reclassification of shares from mezzanine
|
379,403
|
38
|
-
|
-
|
(38
|
)
|
-
|
-
|
||||||||||||||||||||
Derivative liability resolution
|
-
|
-
|
-
|
-
|
125,759
|
-
|
125,759
|
|||||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
-
|
15,840
|
- |
|
15,840
|
||||||||||||||||||||
Change in fair value of warrant modification
|
-
|
-
|
-
|
-
|
4,310
|
-
|
4,310
|
|||||||||||||||||||||
Net loss for the three months
|
-
|
-
|
-
|
-
|
-
|
(661,078
|
)
|
(661,078
|
)
|
|||||||||||||||||||
Balance, March 31, 2018
|
24,154,823
|
2,415
|
1,600,000
|
160
|
16,806,714
|
(21,273,155
|
)
|
(4,463,866
|
)
|
|||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest
|
713,033
|
72
|
-
|
-
|
16,762
|
-
|
16,834
|
|||||||||||||||||||||
Derivative liability resolution
|
-
|
-
|
-
|
-
|
(182,425
|
)
|
-
|
(182,425
|
)
|
|||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
-
|
17,555
|
-
|
17,555
|
|||||||||||||||||||||
Shares issued for employee compensation
|
-
|
-
|
3,400,000
|
340
|
176,460
|
-
|
176,800
|
|||||||||||||||||||||
Net loss for the three months
|
-
|
-
|
-
|
-
|
-
|
(577,294
|
)
|
(577,294
|
)
|
|||||||||||||||||||
Balance, June 30, 2018
|
24,867,856
|
$
|
2,487
|
5,000,000
|
$
|
500
|
$
|
16,835,066
|
$
|
(21,850,449
|
)
|
$
|
(5,012,396
|
)
|
ALPINE 4 TECHNOLOGIES, LTD. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(unaudited)
|
||||||||
Six Months Ended June 30,
|
||||||||
2019
|
2018
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(3,967,165
|
)
|
$
|
(1,238,372
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation
|
471,494
|
428,500
|
||||||
Amortization
|
103,539
|
37,706
|
||||||
Gain on extinguishment of debt
|
-
|
(136,300
|
)
|
|||||
Loss on disposal of fixed assets
|
-
|
356,933
|
||||||
Change in fair value of derivative liabilities
|
4,078,485
|
(246,025
|
)
|
|||||
Stock issued for services
|
-
|
176,800
|
||||||
Employee stock compensation
|
38,897
|
33,395
|
||||||
Amortization of debt issuance costs
|
-
|
53,499
|
||||||
Amortization of debt discounts
|
692,329
|
302,837
|
||||||
Gain on disposal of discontinued operations
|
(2,515,028
|
)
|
-
|
|||||
Issuance of convertible debentures for penalty interest
|
128,777
|
-
|
||||||
Operating lease expense
|
93,183
|
-
|
||||||
Change in current assets and liabilities:
|
||||||||
Accounts receivable
|
(883,089
|
)
|
(892,773
|
)
|
||||
Inventory
|
(424,781
|
)
|
(367,940
|
)
|
||||
Capitalized contracts costs
|
-
|
37,300
|
||||||
Prepaid expenses and other assets
|
58,451
|
182,028
|
||||||
Accounts payable
|
174,854
|
21,285
|
||||||
Accrued expenses
|
1,389,162
|
175,687
|
||||||
Operating lease liability
|
(89,030
|
)
|
-
|
|||||
Deferred revenue
|
(25,287
|
)
|
(149,407
|
)
|
||||
Net cash used in operating activities
|
(675,209
|
)
|
(1,224,847
|
)
|
||||
INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(28,679
|
)
|
(143,480
|
)
|
||||
Proceeds from insurance claim on automobiles and trucks
|
-
|
229,257
|
||||||
Cash paid for acquisitions, net of cash acquired
|
(1,967,606
|
)
|
(1,976,750
|
)
|
||||
Net cash used in financing activities
|
(1,996,285
|
)
|
(1,890,973
|
)
|
||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from issuances of notes payable, related party
|
37,500
|
125,000
|
||||||
Proceeds from issuances of notes payable, non-related party
|
500,000
|
779,750
|
||||||
Proceeds from issuances of convertible notes payable
|
103,000
|
700,500
|
||||||
Proceeds from financing lease
|
3,267,000
|
1,900,000
|
||||||
Repayments of notes payable, related party
|
(20,000
|
)
|
(11,500
|
)
|
||||
Repayments of notes payable, non-related party
|
(1,376,670
|
)
|
(201,978
|
)
|
||||
Repayments of convertible notes payable
|
(601,200
|
)
|
(745,959
|
)
|
||||
Proceeds from line of credit, net
|
795,983
|
892,866
|
||||||
Cash paid on financing lease obligations
|
(81,147
|
)
|
(121,934
|
)
|
||||
-
|
||||||||
Net cash provided by financing activities
|
2,624,466
|
3,316,745
|
||||||
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH
|
(47,028
|
)
|
200,925
|
|||||
CASH AND RESTRICTED CASH, BEGINNING BALANCE
|
414,516
|
335,823
|
||||||
CASH AND RESTRICTED CASH, ENDING BALANCE
|
$
|
367,488
|
$
|
536,748
|
||||
CASH PAID FOR:
|
||||||||
Interest
|
$
|
1,474,484
|
$
|
634,400
|
||||
Income taxes
|
$
|
-
|
$
|
-
|
||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
|
||||||||
Common stock issued for convertible note payable and accrued interest
|
$
|
262,537
|
$
|
22,850
|
||||
Common stock issued for convertible note discount
|
$
|
-
|
$
|
9,584
|
||||
Issuance of convertible payable for acquisition
|
$
|
-
|
$
|
450,000
|
||||
Issuance of note payable for acquisition
|
$
|
3,450,000
|
$
|
1,950,000
|
||||
Debt discount due to derivative liabilities
|
$
|
103,000
|
$
|
524,470
|
||||
Notes payable and redeemable common stock restructuring
|
$
|
-
|
$
|
3,197,538
|
||||
Release of derivative liability
|
$
|
343,696
|
$
|
-
|
||||
ROU asset and operating lease obligation recognized upon adoption of Topic 842
|
$
|
676,944
|
$
|
-
|
||||
Goodwill adjustment to intangible asset for APF acquisition
|
$
|
790,000
|
$
|
-
|
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Cash
|
$
|
160,177
|
$
|
207,205
|
||||
Restricted cash included in other non-current assets
|
207,311
|
207,311
|
||||||
Total cash and restricted cash shown in statement of cash flows
|
$
|
367,488
|
$
|
414,516
|
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Raw materials
|
$
|
1,425,343
|
$
|
676,621
|
||||
WIP
|
14,558
|
-
|
||||||
Finished goods
|
1,614,516
|
1,499,174
|
||||||
$
|
3,054,417
|
$
|
2,175,795
|
Automobiles & Trucks
|
10 to 20 years
|
Buildings
|
39 years
|
Leasehold Improvements
|
15 years or time remaining on lease (whichever is shorter)
|
Equipment
|
10 years
|
June 30,
|
December 31,
|
|||||||
|
2019
|
2018
|
||||||
Automobiles and trucks
|
$
|
155,179
|
$
|
155,179
|
||||
Machinery and equipment
|
3,638,018
|
2,548,855
|
||||||
Office furniture and fixtures
|
114,867
|
109,619
|
||||||
Building
|
9,062,000
|
5,795,000
|
||||||
Leasehold improvements
|
303,841
|
261,608
|
||||||
Less: Accumulated depreciation
|
(1,361,866
|
)
|
(879,705
|
)
|
||||
|
$
|
11,912,039
|
$
|
7,990,556
|
Customer lists
|
15 years
|
Non-compete agreements
|
15 years
|
Software development
|
5 years
|
June 30,
|
December 31,
|
|||||||
|
2019
|
2018
|
||||||
Software
|
$
|
278,474
|
$
|
278,474
|
||||
Noncompete
|
100,000
|
100,000
|
||||||
Customer lists
|
1,321,187
|
531,187
|
||||||
Less: Accumulated amortization
|
(335,990
|
)
|
(232,451
|
)
|
||||
|
$
|
1,363,671
|
$
|
677,210
|
Twelve Months Ending June 30,
|
||||
2020
|
132,627
|
|||
2021
|
132,627
|
|||
2022
|
132,627
|
|||
2023
|
99,028
|
|||
2024
|
99,028
|
|||
Thereafter
|
767,734
|
|||
Total
|
1,363,671
|
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Restricted Cash
|
$
|
207,311
|
$
|
207,311
|
||||
Deposits
|
105,927
|
50,927
|
||||||
Other
|
33,417
|
32,000
|
||||||
$
|
346,655
|
$
|
290,238
|
Finance
|
Operating
|
|||||||
Twelve Months Ending June 30,
|
Leases
|
Leases
|
||||||
2020
|
$
|
1,199,692
|
$
|
278,230
|
||||
2021
|
1,224,603
|
286,577
|
||||||
2022
|
1,242,009
|
145,406
|
||||||
2023
|
1,266,282
|
-
|
||||||
2024
|
1,254,146
|
-
|
||||||
Thereafter
|
12,158,252
|
-
|
||||||
Total
|
18,344,984
|
710,213
|
||||||
Less: current lease obligation
|
(224,002
|
)
|
(203,504
|
)
|
||||
Less: imputed interest
|
(6,602,692
|
)
|
(122,299
|
)
|
||||
Non-current capital leases obligations
|
$
|
11,518,290
|
$
|
384,410
|
Assets
|
Classification on Balance Sheet
|
June 30,
2019
|
|||
Operating lease assets
|
Operating lease right of use assets
|
$
|
583,761
|
||
Total lease assets
|
$
|
583,761
|
|||
Liabilities
|
|||||
Current liabilities
|
|||||
Operating lease liability
|
Current operating lease liability
|
$
|
203,504
|
||
Noncurrent liabilities
|
|||||
Operating lease liability
|
Long-term operating lease liability
|
384,410
|
|||
Total lease liability
|
$
|
587,914
|
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Lines of credit, current portion
|
$
|
3,300,424
|
$
|
2,504,440
|
||||
Equipment loans, current portion
|
213,747
|
260,301
|
||||||
Term notes, current portion
|
3,349,475
|
820,862
|
||||||
Total current
|
6,863,646
|
3,585,603
|
||||||
Long-term portion
|
5,703,994
|
4,517,441
|
||||||
Total notes payable
|
$
|
12,567,640
|
$
|
8,103,044
|
Twelve Months Ending June 30,
|
||||
2020
|
$
|
6,863,646
|
||
2021
|
2,759,780
|
|||
2022
|
2,804,214
|
|||
2023
|
80,000
|
|||
2024
|
60,000
|
|||
Total
|
$
|
12,567,640
|
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Notes payable; non-interest bearing; due upon demand; unsecured
|
$
|
4,500
|
$
|
4,500
|
||||
Note payable; bearing interest at 8% per annum; due June 30, 2017; unsecured
|
7,500
|
7,500
|
||||||
Series of notes payable, bearing interest at rates from 10% to 20% per annum, with maturity dates from April 2018 to August 2019, unsecured
|
197,500
|
180,000
|
||||||
Total notes payable - related parties
|
$
|
209,500
|
$
|
192,000
|
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Series of convertible notes payable issued prior to December 31, 2016, bearing interest at rates of 8% - 20% per annum, with due dates ranging from April 2016 through
October 2017. The outstanding principal and interest balances are convertible into shares of Class A common stock at the option of the debt holder at exercise prices ranging from $0.10 to $1 per share.
|
$
|
25,000
|
$
|
25,000
|
||||
Secured convertible notes payable issued to the sellers of QCA on April 1, 2016 for an aggregate of $2,000,000, bearing interest at 5% per annum, due in monthly payments starting on July 1,
2016 and due in full on July 1, 2019. In June 2019, one note with a balance of $843,685 was extended to December 31, 2022. The outstanding principal and interest balances are convertible after 12 months into Class A common stock at the
option of the debt holder at a conversion price of $1 per share.
|
1,521,587
|
1,654,588
|
||||||
Convertible note payable issued in January 2017, bearing interest at rates of 10% per annum, and due in January 2018. The outstanding principal and interest balances are
convertible into shares of Class A common stock at the option of the debt holder at an exercise price of $1 per share.
|
10,000
|
10,000
|
||||||
On January 10, 2018, the Company entered into a variable convertible note for $150,000 with net proceeds of $135,000. The note is due October 1, 2018 and bears interest
at 12% per annum. The note is immediately convertible into shares of Class A common stock at the lesser of $0.16 per share or 60% of the lowest trading price the previous 25 days prior to conversion. The Company can prepay the note within
the first 90 days following January 10, 2018 with a prepayment penalty equal to 145% of the total outstanding balance. The Company issued 333,333 shares to the lender with this note, which has been recorded as a discount.
|
-
|
95,000
|
||||||
On April 5, 2018, the Company entered into convertible promissory notes for an aggregate principal amount of $450,000 as part of the consideration for the acquisition of
APF (see Note 9). The convertible notes are due in full in 36 months and bear interest at 4.25% per annum, and are convertible into shares of Class A common stock after 6 months from the issuance date at a rate of $1 per share.
|
450,000
|
450,000
|
||||||
On April 9, 2018, the Company entered into a variable convertible note for $124,199 with net proceeds of $115,000. The note is due January 9, 2019 and bears interest at
12% per annum. After 180 days, the note is convertible into shares of the Company's Class A common stock at a discount of 35% to the average of the three lowest trading closing prices of the stock for ten days prior to conversion. In
connection with this variable convertible note, the Company issued 76,670 shares of its Class A common stock, along with warrants to purchase 153,340 shares of Class A common stock at an exercise price of $1 per share which are immediately
vested and have a 3 years contractual life. The value of the common stock and warrants have been recorded as a discount.
|
500
|
61,699
|
||||||
On April 9, 2018, the Company entered into a variable convertible note for $37,800 with net proceeds of $35,000. The note is due January 9, 2019 and bears interest at
12% per annum. After 180 days, the note is convertible into shares of the Company's Class A common stock at a discount of 35% to the average of the three lowest trading closing prices of the stock for ten days prior to conversion.
|
75,434
|
37,800
|
||||||
On June 4, 2018, the Company entered into a variable convertible note for $165,000 with net proceeds of $151,500. The note is due December 4, 2019 and bears interest at
10% per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 42% to the average of the two lowest trading closing prices of the stock for ten days prior to conversion. The Company
issued 850,000 shares of Class A common stock to the note holder which are returnable if no event of default has occurred and the note is paid in full within 180 days of the note date.
|
148,980
|
165,000
|
||||||
On July 18, 2018, the Company entered into a variable convertible note for $88,000 with net proceeds of $88,000. The note is due April 30, 2019 and bears interest at 12%
per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 42% to the average of the two lowest trading closing prices of the stock for ten days prior to conversion.
|
-
|
88,000
|
||||||
On August 30, 2018, the Company entered into a variable convertible note for $337,500 with net proceeds of $303,750. The note is due February 28, 2019 and bears interest
at 10% per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 42% to the average of the two lowest trading closing prices of the stock for ten days prior to conversion.
|
292,907
|
337,500
|
||||||
On September 27, 2018, the Company entered into a variable convertible note for $93,000 with net proceeds of $93,000. The note is due July 15, 2019 and bears interest at
12% per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 42% to the average of the two lowest trading closing prices of the stock for ten days prior to conversion.
|
-
|
93,000
|
||||||
On October 23, 2018, the Company entered into a variable convertible note for $220,000 with net proceeds of $198,000. The note is due December 14,2018 and bears interest
at 10% per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 42% to the average of the two lowest trading closing prices of the stock for ten days prior to conversion.
|
49,000
|
220,000
|
||||||
On November 12, 2018, the Company entered into a variable convertible note for $670,000 with net proceeds of $636,000. The note is due November 12, 2019 and bears
interest at 10% per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 35% to the average of the three lowest trading closing prices of the stock for ten days prior to conversion.
|
657,100
|
670,000
|
||||||
On December 7, 2018, the Company entered into a variable convertible note for $130,000 with net proceeds of $122,200. The note is due September 7, 2019 and bears
interest at 12% per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 40% to the lowest trading closing prices of the stock for 20 days prior to conversion.
|
124,000
|
130,000
|
||||||
On February 5, 2019, the Company entered into a variable convertible note for $103,000 with net proceeds of $103,000. The note is due November 30, 2019 and bears
interest at 12% per annum. The note is immediately convertible into shares of the Company's Class A common stock at a discount of 42% to the average of the two lowest trading closing prices of the stock for ten days prior to conversion.
|
103,000
|
-
|
||||||
Total convertible notes payable
|
3,457,508
|
4,037,587
|
||||||
Less: discount on convertible notes payable
|
(353,523
|
)
|
(942,852
|
)
|
||||
Total convertible notes payable, net of discount
|
3,103,985
|
3,094,735
|
||||||
Less: current portion of convertible notes payable
|
(1,132,396
|
)
|
(2,644,735
|
)
|
||||
Long-term portion of convertible notes payable
|
$
|
1,971,589
|
$
|
450,000
|
Balance outstanding, December 31, 2018
|
$
|
3,094,735
|
||
Issuance of convertible notes payable for cash
|
103,000
|
|||
Issuance of convertible notes payable for penalty interest
|
128,777
|
|||
Repayment of notes
|
(601,200
|
)
|
||
Conversion of notes payable to common stock
|
(210,656
|
)
|
||
Discount from derivative liability
|
(103,000
|
)
|
||
Amortization of debt discounts
|
692,329
|
|||
Balance outstanding, June 30, 2019
|
$
|
3,103,985
|
|
Weighted-
|
|||||||||||||||
|
Weighted-
|
Average
|
||||||||||||||
|
Average
|
Remaining
|
Aggregate
|
|||||||||||||
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||||
|
Options
|
Price
|
Life (Years)
|
Value
|
||||||||||||
|
||||||||||||||||
Outstanding at December 31, 2018
|
1,790,000
|
$
|
0.19
|
9.10
|
$
|
-
|
||||||||||
Granted
|
-
|
|||||||||||||||
Forfeited
|
-
|
|||||||||||||||
Exercised
|
||||||||||||||||
Outstanding at June 30, 2019
|
1,790,000
|
$
|
0.19
|
8.85
|
$
|
-
|
||||||||||
|
||||||||||||||||
Vested and expected to vest at June 30, 2019
|
1,790,000
|
$
|
0.19
|
8.60
|
$
|
-
|
||||||||||
|
||||||||||||||||
Exercisable at June 30, 2019
|
615,719
|
$
|
0.27
|
8.33
|
$
|
-
|
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||
Exercise
|
Number
|
Remaining
|
Exercise
|
Number
|
Exercise
|
|||||||||||||||||
Price
|
of Shares
|
Life (Years)
|
Price
|
of Shares
|
Price
|
|||||||||||||||||
$
|
0.05
|
979,000
|
9.13
|
$
|
0.05
|
210,375
|
$
|
0.05
|
||||||||||||||
0.10
|
85,000
|
9.04
|
0.10
|
21,250
|
0.10
|
|||||||||||||||||
0.13
|
388,500
|
8.34
|
0.13
|
194,250
|
0.13
|
|||||||||||||||||
0.26
|
114,000
|
8.10
|
0.26
|
64,125
|
0.26
|
|||||||||||||||||
0.90
|
223,500
|
8.02
|
0.90
|
125,719
|
0.90
|
|||||||||||||||||
1,790,000
|
615,719
|
|
Purchase
Allocation
|
|||
Cash
|
$
|
192,300
|
||
Accounts receivable
|
1,498,591
|
|||
Inventory
|
453,841
|
|||
Prepaid expenses and other current assets
|
858,456
|
|||
Property and equipment
|
4,214,965
|
|||
Goodwill
|
603,592
|
|||
Accounts payable
|
(234,236
|
)
|
||
Accrued expenses
|
(443,908
|
)
|
||
Notes payable
|
(1,033,695
|
)
|
||
|
$
|
6,109,906
|
Cash
|
2,159,906
|
|||
Seller notes
|
3,450,000
|
|||
Acquisition contingency
|
500,000
|
|||
$
|
6,109,906
|
|
Purchase
Allocation
|
|||
Accounts receivable
|
$
|
945,050
|
||
Inventory
|
675,074
|
|||
Prepaid expenses and other current assets
|
250,040
|
|||
Property and equipment
|
3,300,000
|
|||
Customer list
|
790,000
|
|||
Goodwill
|
440,100
|
|||
Accounts payable
|
(1,234,328
|
)
|
||
Accrued expenses
|
(154,186
|
)
|
||
Line of credit
|
(165,000
|
)
|
||
Deferred tax liability
|
(470,000
|
)
|
||
|
$
|
4,376,750
|
Six Months Ended
June 30,
|
||||||||
2019
|
2018
|
|||||||
Sales
|
$
|
13,601,832
|
$
|
12,545,597
|
||||
Cost of goods sold
|
10,230,871
|
9,706,527
|
||||||
Gross profit
|
3,370,961
|
2,839,070
|
||||||
Operating expenses
|
3,770,129
|
3,006,447
|
||||||
Loss from operations
|
(399,168
|
)
|
(167,377
|
)
|
||||
Net loss from continuing operations
|
(6,387,014
|
)
|
(621,621
|
)
|
||||
Loss per share
|
(0.18
|
)
|
(0.02
|
)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Revenue
|
||||||||||||||||
QCA
|
$
|
2,326,135
|
$
|
2,499,853
|
$
|
4,803,677
|
$
|
4,945,746
|
||||||||
APF
|
1,249,463
|
961,597
|
2,958,455
|
961,597
|
||||||||||||
Morris
|
2,870,574
|
-
|
5,741,371
|
-
|
||||||||||||
Unallocated and eliminations
|
29,671
|
159,898
|
98,329
|
320,486
|
||||||||||||
|
$
|
6,475,843
|
$
|
3,621,348
|
$
|
13,601,832
|
$
|
6,227,829
|
||||||||
Gross profit
|
||||||||||||||||
QCA
|
$
|
714,282
|
$
|
956,859
|
$
|
1,372,676
|
$
|
1,682,383
|
||||||||
APF
|
185,697
|
103,641
|
885,897
|
103,641
|
||||||||||||
Morris
|
323,778
|
-
|
1,044,944
|
-
|
||||||||||||
Unallocated and eliminations
|
29,671
|
146,245
|
67,444
|
83,628
|
||||||||||||
|
$
|
1,253,428
|
$
|
1,206,745
|
$
|
3,370,961
|
$
|
1,869,652
|
||||||||
Income (loss) from operations
|
||||||||||||||||
QCA
|
$
|
68,354
|
$
|
916,126
|
$
|
67,875
|
$
|
731,871
|
||||||||
APF
|
40,134
|
|
(148,080
|
)
|
451,536
|
(148,080
|
)
|
|||||||||
Morris
|
62,786
|
|
-
|
84,079
|
-
|
|||||||||||
Unallocated and eliminations
|
(221,473
|
)
|
(801,805
|
)
|
(1,002,658
|
)
|
(582,082
|
)
|
||||||||
|
$
|
(50,199
|
)
|
$
|
(33,759
|
)
|
$
|
(399,168
|
)
|
$
|
1,709
|
|||||
Depreciation and amortization
|
||||||||||||||||
QCA
|
$
|
84,397
|
$
|
72,610
|
$
|
168,794
|
$
|
145,221
|
||||||||
APF
|
134,897
|
95,817
|
203,605
|
95,817
|
||||||||||||
Morris
|
94,109
|
-
|
185,968
|
-
|
||||||||||||
Unallocated and eliminations
|
8,333
|
105,626
|
16,666
|
225,168
|
||||||||||||
|
$
|
321,736
|
$
|
274,053
|
$
|
575,033
|
$
|
466,206
|
||||||||
Interest Expenses
|
||||||||||||||||
QCA
|
$
|
177,656
|
$
|
147,597
|
$
|
358,238
|
$
|
298,583
|
||||||||
APF
|
168,509
|
28,706
|
168,509
|
28,706
|
||||||||||||
Morris
|
106,755
|
-
|
152,586
|
-
|
||||||||||||
Unallocated and eliminations
|
553,574
|
427,807
|
1,358,791
|
614,159
|
||||||||||||
|
$
|
1,006,494
|
$
|
604,110
|
$
|
2,038,124
|
$
|
941,448
|
||||||||
Net income (loss)
|
||||||||||||||||
QCA
|
$
|
(36,171
|
)
|
$
|
652,065
|
$
|
(166,613
|
)
|
$
|
550,948
|
||||||
APF
|
(128,375
|
)
|
(176,786
|
)
|
283,027
|
(176,786
|
)
|
|||||||||
Morris
|
(46,469
|
)
|
-
|
(63,882
|
)
|
-
|
||||||||||
Unallocated and eliminations
|
(4,745,661
|
)
|
(823,727
|
)
|
(6,439,546
|
)
|
(943,912
|
)
|
||||||||
|
$
|
(4,956,676
|
)
|
$
|
(348,448
|
)
|
$
|
(6,387,014
|
)
|
$
|
(569,750
|
)
|
||||
As of
|
As of
|
|||||||||||||||
June 30,
|
December 31,
|
|||||||||||||||
2019
|
2018
|
|||||||||||||||
Total Assets
|
||||||||||||||||
QCA
|
$
|
13,317,973
|
$
|
10,767,883
|
||||||||||||
APF
|
11,631,473
|
6,159,098
|
||||||||||||||
Morris
|
15,353,023
|
-
|
||||||||||||||
Unallocated and eliminations
|
(13,800,593
|
)
|
1,013,695
|
|||||||||||||
$
|
26,501,876
|
$
|
17,940,676
|
|||||||||||||
Goodwill
|
||||||||||||||||
QCA
|
$
|
1,963,761
|
$
|
1,963,761
|
||||||||||||
APF
|
440,100
|
1,230,100
|
||||||||||||||
Morris
|
603,592
|
-
|
||||||||||||||
Unallocated and eliminations | - |
- |
||||||||||||||
$
|
3,007,453
|
$
|
3,193,861
|
|||||||||||||
Accounts receivable, net
|
||||||||||||||||
QCA
|
$
|
1,769,615
|
$
|
1,649,701
|
||||||||||||
APF
|
1,279,427
|
958,153
|
||||||||||||||
Morris
|
1,810,795
|
-
|
||||||||||||||
Unallocated and eliminations
|
146,813
|
2,500
|
||||||||||||||
$
|
5,006,650
|
$
|
2,610,354
|
June 30,
2019
|
December 31,
2018
|
||||
Risk free rate
|
2.04 to 2.51%
|
1.89
|
%
|
||
Volatility
|
231% to 321%
|
200
|
%
|
||
Expected terms (years)
|
0.5 to 1.77
|
1.3 to 2.53
|
|||
Dividend rate
|
0%
|
0
|
%
|
|
Fair Value
|
Fair Value Measurements at
|
||||||||||||||
|
As of
|
June 30, 2019
|
||||||||||||||
Description
|
June 30, 2019
|
Using Fair Value Hierarchy
|
||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Conversion feature on convertible notes
|
$
|
5,730,110
|
$
|
-
|
$
|
-
|
$
|
5,730,110
|
||||||||
|
||||||||||||||||
|
Fair Value
|
Fair Value Measurements at
|
||||||||||||||
|
As of
|
December 31, 2018
|
||||||||||||||
Description
|
December 31, 2018
|
Using Fair Value Hierarchy
|
||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Conversion feature on convertible notes
|
$
|
1,892,321
|
$
|
-
|
$
|
-
|
$
|
1,892,321
|
Derivative liability balance, December 31, 2018
|
$
|
1,892,321
|
||
Issuance of derivative liability during the period
|
103,000
|
|||
Derivative liability resolution
|
(343,696
|
)
|
||
Change in derivative liability during the period
|
4,078,485
|
|||
Derivative liability balance, June 30, 2019
|
$
|
5,730,110
|
Six Months Ended
June 30,
|
||||||||
2019
|
2018
|
|||||||
Revenue
|
$
|
-
|
$
|
2,485,475
|
||||
Cost of revenue
|
-
|
2,120,051
|
||||||
Gross Profit
|
-
|
365,424
|
||||||
Operating expenses
|
95,179
|
1,097,930
|
||||||
Loss from operations
|
(95,179
|
)
|
(732,506
|
)
|
||||
Other income (expenses)
|
-
|
63,884
|
||||||
Net loss
|
$
|
(95,179
|
)
|
$
|
(668,622
|
)
|
June 30,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Current assets
|
$
|
-
|
$
|
121,296
|
||||
Property and equipment
|
-
|
387,727
|
||||||
Total assets
|
$
|
-
|
$
|
509,023
|
||||
Current liabilities
|
$
|
-
|
$
|
2,493,049
|
||||
Notes payable - related party
|
-
|
43,500
|
||||||
Notes payable
|
-
|
215,898
|
||||||
Total liabilities
|
$
|
-
|
$
|
2,752,447
|
-
|
Alpine 4 Mini MBA program; and
|
-
|
An Alpine 4 developed ERP (Enterprise Resource Planning system) and collaboration system called SPECTRUMebos. SPECTRUMebos is what we are defining as an Enterprise
Business Operating System (ebos). This system will combine the key technology software components of Accounting and Financial Reporting, an Enterprise Resource Planning System (ERP), a Document Management System (DMS), a Business
Intelligence (BI) platform and a Customer Resource Management (CRM) hub which will be tethered to management reporting and collaboration toolsets. Management believes that these tools will help drive real-time information in two directions:
first, to the front lines by empowering customer-facing stakeholders; and second, back to management for planning, problem solving, and integration. Management believes that SPECTRUMebos will be the technology "secret sauce" in managing
our portfolio of companies and, in time, may be offered to external customers.
|
Three Months
Ended
June 30,
2019
|
Three Months
Ended
June 30,
2018
|
$ Change
|
||||||||||
Revenue
|
$
|
6,475,843
|
$
|
3,621,348
|
$
|
2,854,495
|
||||||
Cost of revenue
|
5,222,415
|
2,414,603
|
2,807,812
|
|||||||||
Gross Profit
|
1,253,428
|
1,206,745
|
46,683
|
|||||||||
Operating expenses:
|
||||||||||||
General and administrative expenses
|
1,303,627
|
1,240,504
|
63,123
|
|||||||||
Total operating expenses
|
1,303,627
|
1,240,504
|
63,123
|
|||||||||
Loss from operations
|
(50,199
|
)
|
(33,759
|
)
|
(16,440
|
)
|
||||||
Other expenses
|
||||||||||||
Interest expense
|
1,006,494
|
604,110
|
402,384
|
|||||||||
Change in value of derivative liabilities
|
3,970,614
|
(239,610
|
)
|
4,210,224
|
||||||||
Other (income)
|
(70,631
|
)
|
(49,811
|
)
|
(20,820
|
)
|
||||||
Total other expenses
|
4,906,477
|
314,689
|
4,591,788
|
|||||||||
Loss before income tax
|
(4,956,676
|
)
|
(348,448
|
)
|
(4,608,228
|
)
|
||||||
Income tax expense
|
-
|
-
|
-
|
|||||||||
Loss from continuing operations
|
(4,956,676
|
)
|
(348,448
|
)
|
(4,608,228
|
)
|
||||||
Discontinue operations
|
-
|
(228,846
|
)
|
228,846
|
||||||||
Net loss
|
$
|
(4,956,676
|
)
|
$
|
(577,294
|
)
|
$
|
(4,379,382
|
)
|
Three Months Ended
June 30,
|
||||||||
2019
|
2018
|
|||||||
Revenue
|
$
|
-
|
$
|
1,459,548
|
||||
Cost of revenue
|
-
|
1,250,210
|
||||||
Gross Profit
|
-
|
209,338
|
||||||
Operating expenses
|
-
|
389,225
|
||||||
Loss from operations
|
-
|
(179,887
|
)
|
|||||
Other income (expenses)
|
-
|
(48,959
|
)
|
|||||
Net loss
|
$
|
-
|
$
|
(228,846
|
)
|
Six Months
Ended
June 30,
2019
|
Six Months
Ended
June 30,
2018
|
$ Change
|
||||||||||
Revenue
|
$
|
13,601,832
|
$
|
6,227,829
|
$
|
7,374,003
|
||||||
Cost of revenue
|
10,230,871
|
4,358,177
|
5,872,694
|
|||||||||
Gross Profit
|
3,370,961
|
1,869,652
|
1,501,309
|
|||||||||
Operating expenses:
|
||||||||||||
General and administrative expenses
|
3,770,129
|
1,867,943
|
1,902,186
|
|||||||||
Total operating expenses
|
3,770,129
|
1,867,943
|
1,902,186
|
|||||||||
Loss from operations
|
(399,168
|
)
|
1,709
|
(400,877
|
)
|
|||||||
Other expenses
|
||||||||||||
Interest expense
|
2,038,124
|
941,448
|
1,096,676
|
|||||||||
Change in value of derivative liabilities
|
4,078,485
|
(246,025
|
)
|
4,324,510
|
||||||||
Gain on extinguishment of debt
|
-
|
(6,305
|
)
|
6,305
|
||||||||
Other (income)
|
(128,763
|
)
|
(117,659
|
)
|
(11,104
|
)
|
||||||
Total other expenses
|
5,987,846
|
571,459
|
5,416,387
|
|||||||||
Loss before income tax
|
(6,387,014
|
)
|
(569,750
|
)
|
(5,817,264
|
)
|
||||||
Income tax expense
|
-
|
-
|
-
|
|||||||||
Loss from continuing operations
|
(6,387,014
|
)
|
(569,750
|
)
|
(5,817,264
|
)
|
||||||
Discontinue operations
|
2,419,849
|
(668,622
|
)
|
3,088,471
|
||||||||
Net loss
|
$
|
(3,967,165
|
)
|
$
|
(1,238,372
|
)
|
$
|
(2,728,793
|
)
|
Six Months Ended
June 30,
|
||||||||
2019
|
2018
|
|||||||
Revenue
|
$
|
-
|
$
|
2,485,475
|
||||
Cost of revenue
|
-
|
2,120,051
|
||||||
Gross Profit
|
-
|
365,424
|
||||||
Operating expenses
|
95,179
|
1,097,930
|
||||||
Loss from operations
|
(95,179
|
)
|
(732,506
|
)
|
||||
Other income (expenses)
|
-
|
63,884
|
||||||
Net loss
|
$
|
(95,179
|
)
|
$
|
(668,622
|
)
|
3.1
|
Certificate of Incorporation (previously filed with the Commission as an exhibit to the Company's Form 10 and incorporated herein by reference)
|
|
|
3.2
|
Bylaws (previously filed with the Commission as an exhibit to the Company's Form 10 and incorporated herein by reference)
|
|
|
3.3
|
|
|
|
3.4
|
|
|
|
10.13
|
|
|
|
10.14
|
|
|
|
10.15
|
|
|
|
10.16
|
|
|
|
10.17
|
|
31
|
|
|
|
32
|
|
|
|
101.INS*
|
XBRL Instance Document
|
|
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase Definition
|
|
Alpine 4 Technologies Ltd.
|
|
|
Dated: August 19, 2019
|
|
|
|
|
By: /s/ Kent B. Wilson
|
|
Kent B. Wilson
|
|
Chief Executive Officer, Chief Financial Officer, President and Director (Principal Executive Officer, Principal Accounting Officer)
|
I, Kent B. Wilson, certify that:
|
||
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Alpine 4 Technologies Ltd.;
|
|
|
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
|
|
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the
registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
|
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
|
|
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report financial information; and
|
|
|
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: August 19, 2019
|
By: /s/ Kent B. Wilson
|
|
Kent B. Wilson
|
|
Chief Executive Officer, Chief Financial Officer
|