Schedule of Condensed Financial Statements |
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
| MARCH 31, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
|
|
|
|
Profit Share liability
|
| $ | - |
|
| $ | 1,991,940 |
|
| $ | 1,991,940 |
|
Unsecured note payable, net of discount and issuance costs
|
|
| 8,403,968 |
|
|
| (1,981,568 | ) |
|
| 6,422,400 |
|
Total liabilities
|
|
| 14,801,425 |
|
|
| 10,372 |
|
|
| 14,811,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
| 42,785,990 |
|
|
| 3,412,204 |
|
|
| 46,198,194 |
|
Accumulated deficit
|
|
| (49,197,401 | ) |
|
| (3,422,576 | ) |
|
| (52,619,977 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ deficit
|
|
| (6,335,165 | ) |
|
| (10,372 | ) |
|
| (6,345,537 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ deficit
|
| $ | 8,466,260 |
|
| $ | - |
|
| $ | 8,466,260 |
|
MIDWEST ENERGY EMISSIONS CORP. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
| FOR THE THREE MONTHS ENDED MARCH 31, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense & letter of credit fees
|
| $ | 529,193 |
|
| $ | (27,185 | ) |
| $ | 502,008 |
|
Loss on change in fair value of profit share
|
|
| - |
|
|
| 37,557 |
|
|
| 37,557 |
|
Gain on debt restructuring
|
|
| (3,412,204 | ) |
|
| 3,412,204 |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
| 423,524 |
|
|
| 3,422,576 |
|
|
| 3,846,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
| $ | 2,363,797 |
|
| $ | (3,422,576 | ) |
| $ | (1,058,779 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and diluted:
|
| $ | 0.03 |
|
| $ | (0.04 | ) |
| $ | (0.01 | ) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
| FOR THE THREE MONTHS ENDED MARCH 31, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
| $ | 2,363,797 |
|
| $
| (3,422,576 | ) |
| $ | (1,058,779 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of discount of notes payable
|
|
| 303,697 |
|
|
| (27,185 | ) |
|
| 276,512 |
|
Loss on change in fair value of profit share
|
|
| - |
|
|
| 37,557 |
|
|
| 37,557 |
|
Gain on debt restructuring
|
|
| (3,412,204 | ) |
|
| 3,412,204 |
|
|
| - |
|
Net cash provided by (used in) operating activities
|
| $ | 68,245 |
|
| $
| - |
|
| $ | 68,245 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
| JUNE 30, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
|
|
|
|
Profit Share liability
|
| $ | - |
|
| $ | 2,097,655 |
|
| $ | 2,097,655 |
|
Secured note payable
|
|
| 271,686 |
|
|
| - |
|
|
| 271,686 |
|
Unsecured note payable, net of discount and issuance costs
|
|
| 9,095,119 |
|
|
| (2,179,831 | ) |
|
| 6,915,288 |
|
Total liabilities
|
|
| 16,654,136 |
|
|
| (82,176 | ) |
|
| 16,571,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
| 44,745,926 |
|
|
| 3,412,204 |
|
|
| 48,158,130 |
|
Accumulated deficit
|
|
| (52,036,522 | ) |
|
| (3,330,028 | ) |
|
| (55,366,550 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ deficit
|
|
| (7,213,886 | ) |
|
| 82,176 |
|
|
| (7,131,710 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ deficit
|
| $ | 9,440,250 |
|
| $ | - |
|
| $ | 9,440,250 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
| FOR THE THREE MONTHS ENDED JUNE 30, 2019
|
|
| FOR THE SIX MONTHS ENDED JUNE 30, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense & letter of credit fees
|
| $ | 763,873 |
|
| $ | (198,263 | ) |
| $ | 565,610 |
|
| $ | 1,293,067 |
|
| $ | (225,448 | ) |
| $ | 1,067,619 |
|
Loss on change in fair value of profit share
|
|
| - |
|
|
| 105,715 |
|
|
| 105,715 |
|
|
| - |
|
|
| 143,272 |
|
|
| 143,272 |
|
(Gain)/Loss on debt restructuring
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (3,412,204 | ) |
|
| 3,412,204 |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
| 5,348,871 |
|
|
| (92,548 | ) |
|
| 5,256,323 |
|
|
| 5,772,394 |
|
|
| 3,330,028 |
|
|
| 9,102,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
| $ | (2,839,121 | ) |
| $ | 92,548 |
|
| $ | (2,746,573 | ) |
| $ | (475,324 | ) |
| $ | (3,330,028 | ) |
| $ | (3,805,352 | ) |
Net loss per common share - basic and diluted:
|
| $ | (0.04 | ) |
| $ | (0.00 | ) |
| $ | (0.04 | ) |
| $ | (0.01 | ) |
| $ | (0.04 | ) |
| $ | (0.05 | ) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
| FOR THE SIX MONTHS ENDED JUNE 30, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net loss
|
| $ | (475,324 | ) |
| $ | (3,330,028 | ) |
| $ | (3,805,352 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of discount of notes payable
|
|
| 938,532 |
|
|
| (225,448 | ) |
|
| 713,084 |
|
Loss on change in fair value of profit share
|
|
| - |
|
|
| 143,272 |
|
|
| 143,272 |
|
Gain on debt restructuring
|
|
| (3,412,204 | ) |
|
| 3,412,204 |
|
|
| - |
|
Net cash used in operating activities
|
| $ | (506,674 | ) |
| $ | - |
|
| $ | (506,674 | ) |
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
| SEPTEMBER 30, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Profit Share liability
|
| $ | - |
|
| $ | 2,210,230 |
|
| $ | 2,210,230 |
|
Unsecured note payable, net of discount and issuance costs
|
|
| 9,752,882 |
|
|
| (2,339,289 | ) |
|
| 7,413,593 |
|
Total liabilities
|
|
| 17,177,693 |
|
|
| (129,059 | ) |
|
| 17,048,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
| 44,882,209 |
|
|
| 3,412,204 |
|
|
| 48,294,413 |
|
Accumulated deficit
|
|
| (52,887,063 | ) |
|
| (3,283,145 | ) |
|
| (56,170,208 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ deficit
|
|
| (7,928,107 | ) |
|
| 129,059 |
|
|
| (7,799,048 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ deficit
|
| $ | 9,249,586 |
|
| $ | - |
|
| $ | 9,249,586 |
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
|
| FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019
|
|
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense & letter of credit fees
|
| $ | 782,695 |
|
| $ | (159,458 | ) |
| $ | 623,237 |
|
| $ | 2,075,761 |
|
| $ | (529,918 | ) |
| $ | 1,690,855 |
|
Loss on change in fair value of profit share
|
|
| - |
|
|
| 112,575 |
|
|
| 112,575 |
|
|
| - |
|
|
| 255,847 |
|
|
| 255,847 |
|
(Gain)/Loss on debt restructuring
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (3,412,204.00 | ) |
|
| 3,412,204.00 |
|
|
| - |
|
Total costs and expenses
|
|
| 4,446,648 |
|
|
| (46,883 | ) |
|
| 4,399,765 |
|
|
| 10,219,042 |
|
|
| 3,138,133 |
|
|
| 13,502,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
| $ | (850,541 | ) |
| $ | 46,883 |
|
| $ | (803,658 | ) |
| $ | (1,325,865 | ) |
| $ | (3,138,133 | ) |
| $ | (4,609,010 | ) |
Net loss per common share-basic and diluted:
|
| $ | (0.01 | ) |
| $ | - |
|
| $ | (0.01 | ) |
| $ | (0.02 | ) |
| $ | (0.04 | ) |
| $ | (0.06 | ) |
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
|
|
|
| As previously reported
|
|
| Adjustment
|
|
| As restated
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net loss
|
| $ | (1,325,865 | ) |
| $ | (3,283,145 | ) |
| $ | (4,609,010 | ) |
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of discount of notes payable
|
|
| 1,585,686 |
|
|
| (384,906 | ) |
|
| 1,200,780 |
|
Loss on change in fair value of profit share
|
|
|
|
|
|
| 255,847 |
|
|
| 255,847 |
|
Gain on debt restructuring
|
|
| (3,412,204 | ) |
|
| 3,412,204 |
|
|
| - |
|
Net cash used in operating activities
|
| $ | (1,304,626 | ) |
| $ | - |
|
| $ | (1,304,626 | ) |
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT
|
FOR THE MONTHS ENDED MARCH 31, 2019, THE SIX MONTHS ENDED JUNE 30, 2019 AND THE NINE MONTHS ENDED SEPTEMBER 30, 2019
|
(Restated)
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| Common Stock
|
|
| Additional
|
|
| Accumulated
|
|
| |
|
|
| Shares
|
|
| Par Value
|
|
| Paid-in Capital
|
|
| (Deficit)
|
|
| Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - January 1, 2019
|
|
| 76,246,113 |
|
| $ | 76,246 |
|
| $ | 42,785,990 |
|
| $ | (51,483,332 | ) |
| $ | (8,621,096 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative effect of change in accounting principle related to accounting for leases
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (77,866 | ) |
|
| (77,866 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital contribution
|
|
| - |
|
|
| - |
|
|
| 3,412,204 |
|
|
| - |
|
|
| 3,412,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (1,058,779 | ) |
|
| (1,058,779 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - March 31, 2019
|
|
| 76,246,113 |
|
| $ | 76,246 |
|
| $ | 46,198,194 |
|
| $ | (52,619,977 | ) |
| $ | (6,345,537 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued per resignation agreements
|
|
| 464,517 |
|
|
| 464 |
|
|
| 118,076 |
|
|
| - |
|
|
| 118,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of stock options
|
|
| - |
|
|
| - |
|
|
| 898,207 |
|
|
| - |
|
|
| 898,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extension of certain stock option expiration
|
|
| - |
|
|
| - |
|
|
| 745,989 |
|
|
| - |
|
|
| 745,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of warrants, recorded as discount on convertible notes payable
|
|
| - |
|
|
| - |
|
|
| 197,664 |
|
|
| - |
|
|
| 197,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (2,746,573 | ) |
|
| (2,746,573 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - June 30, 2019
|
|
| 76,710,630 |
|
| $ | 76,710 |
|
| $ | 48,158,130 |
|
| $ | (55,366,550 | ) |
| $ | (7,131,710 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued upon cashless warrant exercise
|
|
| 37,120 |
|
|
| 37 |
|
|
| (37 | ) |
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of warrants, recorded as discount on convertible notes payable
|
|
| - |
|
|
| - |
|
|
| 136,320 |
|
|
| - |
|
|
| 136,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (803,658 | ) |
|
| (803,658 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - September 30, 2019
|
|
| 76,747,750 |
|
| $ | 76,747 |
|
| $ | 48,294,413 |
|
| $ | (56,170,208 | ) |
| $ | (7,799,048 | ) |
|