Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. FBEC Worldwide Inc. (1311735) 10-Q published on Feb 05, 2018 at 5:02 pm
We present both basic and diluted earnings per share (“EPS”) amounts in our financial reporting. Basic EPS excludes dilution and is computed by dividing income available to Common Stock holders by the weighted-average number of Common Stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from our convertible debt. Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period. During the three months and the nine months ended September 30, 2017 and 2016, the shares underlying the outstanding convertible debt were excluded as their effect would have been anti-dilutive.
At September 30, 2017, the Company adjusted the recorded fair value of the derivative liability to market resulting in a non-cash, non-operating loss of $675,372 and $119,897 for the three and nine months ended September 30, 2017, respectively.
Notes in default and included in Current Notes Payable were $590,526 at September 30, 2017. During the nine months ending September 30, 2017 certain conversions reflected default penalties due to our delinquency in reporting its financial information in a timely and other default provisions related to these notes payable resulting in a total of $155,416 of conversions expensed as loss on note conversion penalties in the Statements of Operations for the nine months ended September 30, 2017. We recorded an expense of $68,204 the same type of expense for the three months with the same period ending September 30, 2017.
For the nine-month periods ending September 30, 2017 and September 30, 2016, we had operating expenses totaling $258,753 and $486,508, respectively, primarily due to wages, consulting, accounting and audit fees. The $227,755 decrease in operating expenses is primarily attributable to the reduction in consulting, accounting and audit fees.
We are a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act and we are not required to provide the information required under this Item.