10-Q 1 form10q.htm OMAGINE, INC. FORM 10-Q form10q.htm
UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 

FORM 10-Q
 
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended: June 30, 2014
 
Commission File Number: 0-17264

 
Omagine, Inc.
(Exact name of registrant as specified in its charter)
 

Delaware
 
20-2876380
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification Number)

350 Fifth Avenue, 48th Floor, New York, N.Y. 10118
(Address of principal executive offices)
 

(212) 563-4141
(Registrant’s telephone number, including area code)
 

Indicate by check mark 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.
[X] Yes [  ] No
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website every Interactive Data File required to be submitted and posted 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 and post such files).
[X] Yes [  ] No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
 
Large accelerated filer
[  ]
Accelerated filer
[  ]
 
Non accelerated filer
[  ]
Smaller reporting company
[X]
 
 
Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
[ ] Yes [X] No
 
As of July 30, 2014, the Registrant had outstanding 15,955,798 shares of common stock, par value $.001 per share (“Common Stock”).
 
 
     
Page
 
      3  
           
 
PART I - FINANCIAL INFORMATION
       
           
ITEM 1:
FINANCIAL STATEMENTS
       
           
         
      4  
           
         
      5  
           
         
      6  
           
         
      10  
           
      11  
           
ITEM 2:
    24  
           
ITEM 3:
    40  
           
ITEM 4:
    40  
           
 
PART II - OTHER INFORMATION
       
           
ITEM 1:
    40  
           
ITEM 1A:
    40  
           
ITEM 2:
    40  
           
ITEM 3:
    41  
           
ITEM 4:
    41  
           
ITEM 5:
    41  
           
ITEM 6:
    42  
           
      43  

 

 
 
Some of the statements contained in this Report that are not statements of historical facts constitute "forward-looking statements" notwithstanding that such statements are not specifically identified as such. These forward-looking statements are based on current expectations and projections about future events. The words "estimates", "projects", "plans", "believes", "expects", "anticipates", "intends", "targeted", "continue", "remain", "will", "should", "may" and other similar expressions, or the negative or other variations thereof, as well as discussions of strategy that involve risks and uncertainties, are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include but are not limited to statements about or relating to: (i) future revenues, expenses, income or loss, cash flow, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items, (ii) plans, objectives and expectations of Omagine, Inc. or its management or Board of Directors, (iii) the Company’s business plans, products or services, (iv) the probability of Omagine LLC signing the Development Agreement with the Government, (v) future economic or financial performance, and (vi) assumptions underlying such statements.
 
We urge you to be cautious of the forward-looking statements and other similar forecasts and statements of expectations since such statements (i) reflect our current beliefs with respect to future events, (ii) involve, and are subject to, known and unknown risks, uncertainties and other factors affecting our operations and growth strategy, and (iii) could cause the Company's actual results, financial or operating performance or achievements to differ from future results, financial or operating performance, or achievements expressed or implied by such forward-looking statements. Forecasts, projections and assumptions contained and expressed herein were reasonably based on information available to the Company at the time so furnished and as of the date of this Report. All such forecasts, projections and assumptions are subject to significant uncertainties and contingencies, many of which are beyond the Company's control and no assurance can be given that such forecasts, projections or assumptions will be realized. No assurance can be given regarding the achievement of future results, as our actual results may differ materially from our projected future results as a result of the risks we face, and actual future events may differ from anticipated events because of the assumptions underlying the forward-looking statements that have been made regarding such anticipated events.
 
Factors that may cause actual results, our performance or achievements, or industry results, to differ materially from those contemplated by such forward-looking statements include without limitation:
 
the uncertainty associated with whether or not the Government of the Sultanate of Oman will honor its commitment with respect to its intention to sign the agreed DA with Omagine LLC;
the uncertainty associated with political events in the Middle East and North Africa (the “MENA Region”) in general;
the success or failure of the Company’s efforts to secure additional financing, including project financing for the Omagine Project;
oversupply of residential and/or commercial property inventory in the Oman real estate market or other adverse conditions in such market;
the impact of MENA Region or international economies and/or future events (including natural disasters) on the Oman economy, on the Company’s business or operations, on tourism within or into Oman, on the oil and natural gas businesses in Oman and on other major industries operating within the Omani market;
deterioration or malaise in economic conditions or in the continuing recovery of the Oman, MENA Region and international real estate markets, including any associated impact of depressed levels of consumer and business confidence in the state of the Omani and international economies;
inflation, interest rates, movements in interest rates, securities market and monetary fluctuations;
acts of war, civil or political unrest, terrorism or political instability in Oman or the MENA Region; or
the ability to attract and retain skilled employees.
 
Potential investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
 

 
PART 1 – FINANCIAL INFORMATION
 
ITEM 1 : FINANCIAL STATEMENTS
 
OMAGINE, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTITY)
CONSOLIDATED BALANCE SHEETS

   
June 30,
   
December 31,
 
   
2014
   
2013
 
   
(Unaudited)
       
ASSETS
           
             
CURRENT ASSETS:
           
     Cash
  $ 486,809     $ 19,723  
     Prepaid expenses and other current assets
    17,940       10,275  
          Total Current Assets
    504,749       29,998  
                 
PROPERTY AND EQUIPMENT:
               
     Office and computer equipment
    150,170       150,170  
     Less accumulated depreciation and amortization
    (141,274 )     (138,908 )
      8,896       11,262  
                 
Other assets
    29,982       29,982  
                 
TOTAL ASSETS
  $ 543,627     $ 71,242  
                 
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
                 
CURRENT LIABILITIES:
               
     Convertible notes payable and accrued interest
  $ 356,565     $ 347,935  
     Note payable and accrued interest - YA Global Master SPV, Ltd.
       
       (less unamortized discount of $31,633 and $13,332, respectively)
    422,066       163,126  
     Accounts payable
    185,315       246,857  
     Accrued officers payroll
    585,422       727,612  
     Accrued expenses and other current liabilities
    116,250       117,373  
                                    Total Current Liabilities
    1,665,618       1,602,903  
                                    Long Term Liabilities
    -       -  
                 
TOTAL LIABILITIES
    1,665,618       1,602,903  
                 
                 
STOCKHOLDERS' DEFICIT
               
                 
     Preferred stock:
               
     $0.001 par value
               
     Authorized:  850,000 shares
               
     Issued and outstanding: - none
    -       -  
                 
     Common stock:
               
     $0.001 par value
               
     Authorized: 50,000,000 shares
               
     Issued and outstanding:
               
       15,955,798 shares in 2014 and 14,935,038 in 2013
    15,956       14,935  
     Capital in excess of par value
    27,599,193       25,987,795  
Deficit accumulated prior to development stage
         
        commencing on October 11, 2005
    (9,201,144 )     (9,201,144 )
Deficit accumulated during the development stage
         
        commencing October 11, 2005
    (19,480,721 )     (18,307,295 )
     Total Omagine, Inc. stockholders' deficit
    (1,066,716 )     (1,505,709 )
     Noncontrolling interests in Omagine LLC
    (55,275 )     (25,952 )
                 
Total Stockholders' Deficit
    (1,121,991 )     (1,531,661 )
                 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
  $ 543,627     $ 71,242  
                 
           
See accompanying notes to consolidated financial statements.


 
4

 
OMAGINE, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTITY )
 
   
Three Months Ended June 30,
   
Six Months Ended June 30,
   
From the Period October 11, 2005 (Inception of Development Stage) to June 30,
 
   
2014
   
2013
   
2014
   
2013
   
2014
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
                               
REVENUE:
                             
Total revenue
  $ -     $ -     $ -     $ -     $ -  
                                         
OPERATING EXPENSES:
                                       
                                         
     Officers and directors compensation (including stock-based
                                       
           compensation of  $96,452, $216,081, $296,842, $508,412,
                                       
           and $3,324,878, respectively)
    173,952       292,331       450,592       660,912       5,447,795  
     Professional fees(including stock-based compensation of $0, $0,
                                 
           $10,436, $0 and $10,436, respectively)
    78,563       65,722       96,234       74,813       1,571,174  
     Consulting fees (including stock-based compensation
                                       
           of $100,330, $146,341, $197,504, $421,627, and
                                       
           $1,715,461, respectively)
    129,245       147,104       232,892       429,699       2,997,926  
     Commitment fees (all stock-based compensation)
    150,000       -       150,000       -       450,000  
     Travel
    41,318       27,233       57,640       61,358       1,155,162  
     Occupancy
    37,636       37,292       76,989       68,212       1,088,326  
     Other selling general and administrative
    55,185       48,252       87,997       108,774       2,017,539  
     Total Costs and Expenses
    665,899       617,934       1,152,344       1,403,768       14,727,922  
                                         
OPERATING LOSS
    (665,899 )     (617,934 )     (1,152,344 )     (1,403,768 )     (14,727,922 )
                                         
  OTHER (EXPENSE) INCOME
                                       
     Settlement of Qatar Real Estate development dispute
    -       -       -       -       1,004,666  
     Impairment of goodwill
    -       -       -       -       (5,079,919 )
     Amortization of Debt discount
    (18,367 )     -       (20,699 )     -       (123,777 )
     Interest income
    -       -       -       -       8,805  
     Interest expense
    (17,948 )     (7,177 )     (29,706 )     (13,958 )     (309,653 )
     Other (Expense) - Net
    (36,315 )     (7,177 )     (50,405 )     (13,958 )     (4,499,878 )
                                         
                                         
NET LOSS FROM DEVELOPMENT STAGE ENTITY - CONTINUING
                                 
     OPERATIONS DEVELOPMENT
    (702,214 )     (625,111 )     (1,202,749 )     (1,417,726 )     (19,227,800 )
                                         
Add net loss attributable to noncontrolling interests in Omagine LLC
    23,930       13,085       29,323       19,657       120,847  
                                         
NET LOSS ATTRIBUTABLE TO OMAGINE, INC.
    (678,284 )     (612,026 )     (1,173,426 )     (1,398,069 )     (19,106,953 )
                                         
LOSS FROM DISCONTINUED OPERATIONS - SPORTS
                                       
      APPAREL
    -       -       -       -       (345,990 )
                                         
NET LOSS ACCUMULATED DURING DEVELOPMENT STAGE
    (678,284 )     (612,026 )     (1,173,426 )     (1,398,069 )     (19,452,943 )
                                         
Net preferred stock dividends
    -       -       -       -       (27,778 )
                                         
LOSS APPLICABLE TO COMMON SHAREHOLDERS
  $ (678,284 )   $ (612,026 )   $ (1,173,426 )   $ (1,398,069 )   $ (19,480,721 )
                                         
                                         
LOSS PER SHARE - BASIC AND DILUTED
  $ (0.04 )   $ (0.05 )   $ (0.08 )   $ (0.10 )   $ (1.95 )
LOSS PER SHARE - CONTINUING OPERATIONS - REAL ESTATE
                                 
     DEVELOPMENT
  $ (0.04 )   $ (0.05 )   $ (0.08 )   $ (0.10 )   $ (1.91 )
LOSS PER SHARE DISCONTINUED OPERATIONS - SPORTS APPAREL   $ -     $ -     $ -     $ -     $ (0.04 )
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
                                 
     - BASIC AND DILUTED
    16,239,569       14,684,472       15,660,180       14,522,943       9,990,113  
                                         
                                         
See accompanying notes to consolidated financial statements.
 
 
OMAGINE, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTITY)
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
 
                Deficit Deficit    
               
Accumulated
Accumulated    
               
Prior to
During the    
               
Development
Development    
       
          Common Stock
 
Stage
Stage
   
 
          Preferred Stock 
       Issued and Outstanding
     Committed to be issued
Capital in
Commencing
Commencing
Noncontrolling  
  $0.001 Par
$0.001 Par
$0.001 Par
Excess of
October 11, October 11,
Interests in
 
 
Shares
Value
Shares
Value
Shares
Value
Par Value
2005
2005
Omagine LLC
Total
                       
Balances at October 11, 2005
                     
(inception of development stage)
       108,350
 $            108
              5,667,569
 $               5,668
                     -
                             -
 $         13,797,424
 $       (9,201,144)
                            -
                               -
 $                4,602,056
                       
Conversion of preferred stock for common stock
         (1,250)
                  (1)
                   10,000
                       10
                     -
                             -
                          (9)
                         -
                            -
                               -
                               -
                       
Issuance of preferred stock dividends in common stock
                 -
                  -
                        348
                       -
                     -
                             -
                     1,457
                         -
                            -
                               -
                          1,457
                       
Beneficial conversion feature of Convertible Debenture
                 -
                  -
                           -
                       -
                     -
                             -
                 132,208
                         -
                            -
                               -
                      132,208
                       
Value of warrant attached to Convertible Debenture
                 -
                  -
                           -
                       -
                     -
                             -
                   69,421
                         -
                            -
                               -
                        69,421
                       
Reduction of preferred stock dividends accrual
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
                  116,705
                               -
                      116,705
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (5,534,319)
                               -
                 (5,534,319)
                       
Balances at December 31, 2005
       107,100
               107
              5,677,917
                  5,678
                     -
                             -
            14,000,501
          (9,201,144)
             (5,417,614)
                               -
                    (612,472)
                       
Issuance of common stock for cash
                 -
                  -
                   10,000
                       10
                     -
                             -
                   19,990
                         -
                            -
                               -
                        20,000
                       
Issuance of common stock upon conversion of debentures
                 -
                  -
                 495,032
                     495
                     -
                             -
                 196,882
                         -
                            -
                               -
                      197,377
                       
Conversion of preferred stock for common stock
       (20,163)
                (20)
                 161,300
                     161
                     -
                             -
                      (141)
                         -
                            -
                               -
                               -
                       
Issuance of preferred stock dividends in common stock
                 -
                  -
                   78,343
                       78
                     -
                             -
                   63,946
                         -
                            -
                               -
                        64,024
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
                   56,791
                         -
                            -
                               -
                        56,791
                       
Beneficial conversion feature of Convertible Debenture
                 -
                  -
                           -
                       -
                     -
                             -
                   52,778
                         -
                            -
                               -
                        52,778
                       
Preferred stock dividends
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
                  (21,042)
                               -
                      (21,042)
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
                (767,951)
                               -
                    (767,951)
                       
Balances at December 31, 2006
         86,937
                 87
              6,422,592
                  6,422
                     -
                             -
            14,390,747
          (9,201,144)
             (6,206,607)
                               -
                 (1,010,495)
                       
Issuance of common stock for consulting services
                 -
                  -
                     1,250
                         1
                     -
                             -
                        749
                         -
                            -
                               -
                             750
                       
Issuance of common stock for cash
                 -
                  -
                 570,000
                     570
                     -
                             -
                 754,430
                         -
                            -
                               -
                      755,000
                       
Purchase of common stock for cash
                 -
                  -
                           (2)
                       -
                     -
                             -
                          (3)
                         -
                            -
                               -
                               (3)
                       
Issuance of common stock upon conversion of debentures
                 -
                  -
                 547,526
                     548
                     -
                             -
                 126,396
                         -
                            -
                               -
                      126,944
                       
Issuance of common stock in payment of accounts payable
                 -
                  -
                 560,067
                     560
                     -
                             -
                 341,470
                         -
                            -
                               -
                      342,030
                       
Issuance of common stock upon exercise of warrants
                 -
                  -
                 295,866
                     296
                     -
                             -
              1,038,829
                         -
                            -
                               -
                   1,039,125
 
 
OMAGINE, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTITY)
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (CONTINUED)
 
                       
Preferred stock and dividends converted to common stock
       (86,937)
                (87)
                 720,188
                     720
                     -
                             -
                 122,808
                         -
                            -
                               -
                      123,441
                       
Cancellation of common stock issued for consulting services
                 -
                  -
                    (9,000)
                       (9)
                     -
                             -
                 (10,942)
                         -
                            -
                               -
                      (10,951)
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
                   20,187
                         -
                            -
                               -
                        20,187
                       
Preferred stock dividends
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
                (123,441)
                               -
                    (123,441)
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (1,043,190)
                               -
                 (1,043,190)
                       
Balances at December 31, 2007
                 -
                  -
              9,108,487
                  9,108
                     -
                             -
            16,784,671
          (9,201,144)
             (7,373,238)
                               -
                      219,397
                       
Issuance of common stock for consulting services
                 -
                  -
                     2,230
                         3
                     -
                             -
                     7,498
                         -
                            -
                               -
                          7,501
                       
Issuance of common stock for cash
                 -
                  -
                 109,500
                     110
                     -
                             -
                 235,090
                         -
                            -
                               -
                      235,200
                       
Contribution of common stock to 401(k) Plan
                 -
                  -
                   20,192
                       20
                     -
                             -
                   52,480
                         -
                            -
                               -
                        52,500
                       
Issuance of common stock for SEDA commitment fees
                 -
                  -
                   45,830
                       46
                     -
                             -
                 149,954
                         -
                            -
                               -
                      150,000
                       
Cancellation of common stock
                 -
                  -
                    (8,712)
                       (9)
                     -
                             -
                            9
                         -
                            -
                               -
                               -
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
                   60,629
                         -
                            -
                               -
                        60,629
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (1,307,630)
                               -
                 (1,307,630)
                       
Balances at December 31, 2008
                 -
                  -
              9,277,527
                  9,278
                     -
                             -
            17,290,331
          (9,201,144)
             (8,680,868)
                               -
                    (582,403)
                       
Issuance of common stock for cash
                 -
                  -
                     2,000
                         2
                     -
                             -
                     1,398
                         -
                            -
                               -
                          1,400
                       
Contribution of common stock to 401(k) Plan
                 -
                  -
                   72,500
                       72
                     -
                             -
                   72,428
                         -
                            -
                               -
                        72,500
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
                 112,328
                         -
                            -
                               -
                      112,328
                       
Sale of common stock under Standby Equity Distribution Agreement
                 -
                  -
              1,308,877
                  1,309
                     -
                             -
                 553,691
                         -
                            -
                               -
                      555,000
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (1,114,409)
                               -
                 (1,114,409)
                       
Balances at December 31, 2009
                 -
                  -
            10,660,904
                10,661
                     -
                             -
            18,030,176
          (9,201,144)
             (9,795,277)
                               -
                    (955,584)
                       
Adjustment for stock splits
                 -
                  -
                          22
                       -
                     -
                             -
                          -
                         -
                            -
                               -
                               -
                       
Issuance of common stock for cash
                 -
                  -
                 336,972
                     337
                     -
                             -
                 304,163
                         -
                            -
                               -
                      304,500
                       
Contribution of common stock to 401(k) Plan
                 -
                  -
                 289,996
                     290
                     -
                             -
                   72,210
                         -
                            -
                               -
                        72,500
                       
Issuance of common stock in payment of salaries payable
                 -
                  -
                   82,305
                       82
                     -
                             -
                   99,918
                         -
                            -
                               -
                      100,000
                       
Issuance of common stock for stockholder investor relations
                 -
                  -
                 118,750
                     119
                     -
                             -
                   47,381
                         -
                            -
                               -
                        47,500
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
                 110,040
                         -
                            -
                               -
                      110,040
 
 
OMAGINE, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTITY)
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (CONTINUED)
 
                       
Sale of common  stock under Standby Equity Distribution Agreement
                 -
                  -
                 618,697
                     619
                     -
                             -
                 249,381
                         -
                            -
                               -
                      250,000
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (1,277,001)
                               -
                 (1,277,001)
                       
Balances at December 31, 2010
                 -
                  -
            12,107,646
                12,108
                     -
                             -
            18,913,269
          (9,201,144)
           (11,072,278)
                               -
                 (1,348,045)
                       
Issuance of common stock for cash
                 -
                  -
                 130,438
                     131
                     -
                             -
                 264,869
                         -
                            -
                               -
                      265,000
                       
Contribution of common stock to 401(k) Plan
                 -
                  -
                   51,784
                       52
                     -
                             -
                   72,448
                         -
                            -
                               -
                        72,500
                       
Issuance of common stock for SEDA commitment fees
                 -
                  -
                 244,216
                     244
                     -
                             -
                 299,756
                         -
                            -
                               -
                      300,000
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
                   92,498
                         -
                            -
                               -
                        92,498
                       
Sale of common stock under Standby Equity Distribution Agreement (Old)
                 -
                  -
                 193,442
                     193
                     -
                             -
                 164,807
                         -
                            -
                               -
                      165,000
                       
Sale of common stock under Standby Equity Distribution Agreement (New)
                 -
                  -
                 111,175
                     111
                     -
                             -
                 229,889
                         -
                            -
                               -
                      230,000
                       
Stock grant to consultant
                 -
                  -
                   15,000
                       15
                     -
                             -
                     6,735
                         -
                            -
                               -
                          6,750
                       
Stock options exercised by officers
                 -
                  -
                           -
                       -
           150,000
                          150
                 187,350
                         -
                            -
                               -
                      187,500
                       
Stock grants to foreign consultants
                 -
                  -
                           -
                       -
           215,000
                          215
                 299,495
                         -
                            -
                               -
                      299,710
                       
Adjustments for noncontrolling interests in Omagine LLC
                 -
                  -
                           -
                       -
                     -
                             -
                   90,429
                         -
                            -
                        45,416
                      135,845
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (1,804,451)
                               -
                 (1,804,451)
                       
Balances at December 31, 2011
                 -
                  -
            12,853,701
12,854
           365,000
365
20,621,545
(9,201,144)
(12,876,729)
45,416
(1,397,693)
                       
Issuance of Common Stock committed for stock options
                 
          exercised by officers
                 -
                  -
150,000
150
         (150,000)
                         (150)
                          -
                         -
                            -
                               -
                               -
                       
Stock grants to foreign consultants
                 -
                  -
215,000
215
         (215,000)
                         (215)
                          -
                         -
                            -
                               -
                               -
                       
Stock Grant to consultant for services rendered
                 -
                  -
1,994
2
                     -
                             -
                     3,248
                         -
                            -
                               -
                          3,250
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
              1,761,076
                         -
                            -
                               -
                   1,761,076
                       
Issuance of Common Stock under New Standby Equity
                 
          Distribution Agreement (New SEDA)
                 -
                  -
68,480
68
                     -
                             -
                   89,932
                         -
                            -
                               -
                        90,000
                       
Stock Grants to a stockholder relations agent for fees
15,000
15
           107,500
                          107
                 177,955
                         -
                            -
                               -
                      178,077
                       
Issuance of Common Stock for Rights Offering
                 -
                  -
                           -
                       -
        1,014,032
                       1,014
              1,266,526
                         -
                            -
                               -
                   1,267,540
                       
Issuance of Common Stock committed for Rights Offering
                 -
                  -
1,014,032
1,014
      (1,014,032)
                      (1,014)
                          -
                         -
                            -
                               -
                               -
                       
Contribution of Common Stock to 401(k) Plan
                 -
                  -
50,834
51
                     -
                             -
                   76,199
                         -
                            -
                               -
                        76,250
                       
Adjustments for noncontrolling interests in
                     
          Omagine LLC
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
                            -
                      (35,997)
                      (35,997)
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (2,789,976)
                               -
                 (2,789,976)
                       
Balances at December 31, 2012
                   -
                  -
            14,369,041
                14,369
           107,500
                          107
            23,996,481
          (9,201,144)
           (15,666,705)
                          9,419
                    (847,473)
                       
Issuance of Common Stock committed to stockholder
               
            relations agent for fees
                 -
                  -
                 107,500
107
         (107,500)
                         (107)
                          -
                         -
                            -
                               -
                               -
 
 
OMAGINE, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTITY)
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (CONTINUED)
 
                       
Issuance of Common Stock for cash
                 -
                  -
                 100,000
                     100
                     -
                             -
                 124,900
                         -
                            -
                               -
                      125,000
                       
Stock option expense
                 -
                  -
                           -
                       -
                     -
                             -
              1,445,744
                         -
                            -
                               -
                   1,445,744
                       
                       
Issuance of Common Stock  for 401(k) Plan contribution
                 -
                  -
                   55,253
                       55
                     -
                             -
                   76,195
                         -
                            -
                               -
                        76,250
                       
Stock options exercised by Director's Estate
                 -
                  -
                     4,000
                         4
                     -
                             -
                     2,716
                         -
                            -
                               -
                          2,720
                       
Issuance of Common Stock for cash
                 -
                  -
                   71,162
                       71
                     -
                             -
                   74,929
                         -
                            -
                               -
                        75,000
                       
Stock grant to consultant for services renderred
                 -
                  -
                     5,000
                         5
                     -
                             -
                     5,325
                         -
                            -
                               -
                          5,330
                       
Stock grants to stockholder relation agents for fees
                 -
                  -
                   40,000
                       40
                     -
                             -
                   38,500
                         -
                            -
                               -
                        38,540
                       
Issuance of Common Stock under New Standby Equity
                 
          Distribution Agreement (New SEDA)
                 -
                  -
                 163,094
                     164
                     -
                             -
                 204,836
                         -
                            -
                               -
                      205,000
                       
Stock grant to IT consultants for fees
                 -
                  -
                   19,988
                       20
                     -
                             -
                   18,169
                         -
                            -
                               -
                        18,189
                       
Adjustments for noncontrolling interests in
                     
          Omagine LLC
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
                            -
                      (35,371)
                      (35,371)
                       
Net loss
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (2,640,590)
                               -
                 (2,640,590)
                       
Balances at December 31, 2013
                   -
                  -
            14,935,038
                14,935
                     -
                             -
            25,987,795
          (9,201,144)
           (18,307,295)
                      (25,952)
                 (1,531,661)
                       
Stock grant issued to law firm in satisfaction of
                 
             $15,812 of accounts payable
                 -
                  -
34,374
34
                     -
                             -
26,214
                         -
                            -
                               -
                        26,248
                       
Issuance of Common Stock under New Standby Equity
                 
            Distribution Agreement (New SEDA)
                 -
                  -
218,941
219
                     -
                             -
309,781
                         -
                            -
                               -
                      310,000
                       
Issuance of Common Stock for SEDA commitment fees
85,822
86
   
149,914
     
                      150,000
                       
Issuance of Common Stock for 401(k) Plan contribution
                 -
                  -
73,315
73
                     -
                             -
76,177
                         -
                            -
                               -
                        76,250
                       
Issuance of Common Stock for cash
                 -
                  -
582,308
582
                     -
                             -
641,518
                         -
                            -
                               -
                      642,100
                       
Stock grant to consultant for services rendered
                 -
                  -
26,000
27
                     -
                             -
36,141
                         -
                            -
                               -
                        36,168
                       
Stock Option expense
                 -
                  -
                           -
                       -
                     -
                             -
371,653
                         -
                            -
                               -
                      371,653
                       
Adjustments for noncontrolling interests in
                     
          Omagine LLC
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
                            -
                      (29,323)
                      (29,323)
                       
Net loss (Unaudited)
                 -
                  -
                           -
                       -
                     -
                             -
                          -
                         -
             (1,173,426)
                               -
                 (1,173,426)
                       
Balances at June 30, 2014 (Unaudited)
                 -
 $               -
            15,955,798
 $             15,956
                     -
 $                          -
 $         27,599,193
 $       (9,201,144)
 $        (19,480,721)
 $                   (55,275)
 $              (1,121,991)
 
See accompanying notes to consolidated financial statements.
 
 
OMAGINE, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTITY)
CONSOLIDATED STATEMENT OF CASH FLOWS
 
               
October 11, 2005
 
               
(Inception of
 
               
Development
 
               
Stage) to
 
   
Six Months Ended June 30,
   
June 30,
 
   
2014
   
2013
   
2014
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
CASH FLOWS FROM OPERATING ACTIVITIES:
                 
                   
Net loss attributable to Omagine, Inc.
  $ (1,173,426 )   $ (1,398,069 )   $ (19,106,953 )
Adjustments to  reconcile net loss to net cash flows
                       
   used by operating activities:
                       
      Loss from discontinued operations - Sports Apparel
    -       -       (345,990 )
     Net loss attributable to noncontrolling interests in
                       
   Omagine LLC
    (29,323 )     (19,657 )     (120,847 )
     Depreciation and amortization
    23,065       1,613       195,981  
     Impairment of Goodwill
    -       -       5,079,919  
     Stock-based compensation related to stock options
    371,653       713,466       4,030,946  
     Stock-based compensation related to issuance of Common Stock                    
   for stockholder investor relations, including amortization of $10,275
                 
   and $140,323 in 2014 and 2013 respectively, arising from grants to
                 
           service providers
    10,275       140,323       415,817  
     Issuance of Common Stock for finders' fees on restricted common stock sales
    36,168       -       36,168  
 Issuance of Common Stock for consulting fees