Annual report pursuant to Section 13 and 15(d)

Restatement of previously issued financial statements (unaudited) (Tables)

v3.21.1
Restatement of previously issued financial statements (unaudited) (Tables)
12 Months Ended
Dec. 31, 2020
Related Party  
Schedule of Condensed Financial Statements

CONDENSED 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 )

    

CONDENSED 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

 

  

CONDENSED 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 )

                 

CONDENSED 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 )

 

CONDENSED 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

 

                     

CONDENSED 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

 

 

$ (384,906 )

 

$ 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 )

 

 

3,412,204

 

 

 

-

 

Total costs and expenses

 

 

4,446,648

 

 

 

(46,883 )

 

 

4,399,765

 

 

 

10,219,042

 

 

 

3,283,145

 

 

 

13,502,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$ (850,541 )

 

$ 46,883

 

 

$ (803,658 )

 

$ (1,325,865 )

 

$ (3,283,145 )

 

$ (4,609,010 )

Net loss per common share-basic and diluted:

 

$ (0.01 )

 

$ -

 

 

$ (0.01 )

 

$ (0.02 )

 

$ (0.04 )

 

$ (0.06 )

        

CONDENSED 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

)

                                  

CONDENSED 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 )