Liquidity and Financial Condition (Tables)

9 Months Ended

Sep. 30, 2017

Liquidity and Financial Condition [Abstract]

Schedule of reorganization condensed consolidated balance sheet

	Predecessor Company			Reorganization Adjustments				Fresh Start Adjustments			Successor Company
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	-		$	955,803		(1)	$	-		$	955,803
Short-term investment		30,011			-				-			30,011
Accounts receivable, net		190,893			-				-			190,893
Prepaid expenses		28,589			-				-			28,589
Inventory		40,170			-				-			40,170
Total current assets		289,663			955,803				-			1,245,466
Equipment, net		5,600			-				-			5,600
Security deposit		1,200			-				-			1,200
Goodwill		-			-				4,162,173	(7)		4,162,173
Intangible assets		-			-				3,879,000	(7)		3,879,000
Totals	$	296,463		$	955,803			$	8,041,173		$	9,293,439
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	487,699		$	(212,219	)	(2)	$	-		$	275,480
Accounts payable and accrued expenses – subject to compromise		120,325			(86,612	)	(2)		-			33,713
Accrued interest, related party – subject to compromise		43,301			(16,801	)	(2)		-			26,500
Accrued interest		173,147			(173,147	)	(2)		-			-
Related party accounts payable and accrued expenses – subject to compromise		370,151			(163,522	)	(2)		-			206,629
Related party notes payable – secured claim		73,500			-				-			73,500
Convertible debentures, net of discounts		5,405,010			(5,405,010	)	(3)		-			-
Billings in excess of costs and estimated earnings on uncompleted contracts		42,674			-				-			42,674
Deferred revenue		83,415			-				-			83,415
Convertible option liabilities		-			394,460		(4)		-			394,460
Total current liabilities		6,799,222			(5,662,851	)			-			1,136,371
Debtor in possession financing		600,000			(600,000	)	(4)		-			-
Convertible debentures, net of discounts		-			1,605,540		(4)		-			1,605,540
Total liabilities		7,399,222			(4,657,311	)			-			2,741,911
Commitments and Contingencies
Stockholders’ equity (deficit):
Successor preferred stock, $1.00 par value, 5,405,010 shares authorized; 1,801,670 issued and outstanding at June 30, 2016		-			1,801,670		(3)		-			1,801,670
Predecessor preferred stock, $0.01 par value, 5,000,000 shares authorized; 0 issued and outstanding at December 31, 2015		-			-				-			-
Successor common stock, $0.01 par value, 300,000,000 shares authorized; 163,901 issued and outstanding at June 30, 2016		-			1,639		(5)		-			1,639
Predecessor common stock, $0.01 par value, 300,000,000 shares authorized; 42,918,927 issued and outstanding at December 31, 2015		429,189			(429,189	)	(5)		-			-
Successor additional paid-in capital		-			3,561,463		(3)(6)		1,186,756	(7)		4,748,219
Predecessor additional paid-in capital		7,290,829			-				(7,290,829	) (7)		-
Accumulated deficit		(14,822,777	)		677,531				14,145,246	(7)		-
Total stockholders’ equity (deficit)		(7,102,759	)		5,613,114				8,041,173			6,551,528
Totals	$	296,463		$	955,803			$	8,041,173		$	9,293,439

1. Reflects the net cash payments recorded as of the Effective Date from implementation of the Plan:

2.	Reflects the settlement of accounts payable and accrued expenses upon our emergence from bankruptcy, as well as payments made on the Effective Date.
3.	Reflects the conversion of Convertible Debentures to Preferred Stock.
4.	Reflects the Convertible Debentures.
5.	Reflects the cancellation of Former Common Stock and the issuance of New Common Stock.
6.	Reorganization adjustment.

7. Reflects the recognition of goodwill, intangible assets and the cumulative impact of fresh-start adjustments.

Schedule of reorganization adjustments net cash payments recorded as of effective date from implementation plan

Sources:
Net proceeds from Exit Facility	$	1,319,001
Total sources		1,319,001
Uses:
Predecessor accounts payable and accrued expenses paid upon emergence		185,979
Other payments made upon emergence		177,219
Total uses		363,198
Net Sources	$	955,803

Schedule of reorganization items represent amounts incurred subsequent to bankruptcy filing

	Successor For the Three Months Ended  September 30, 2016			Predecessor  For the Six Months Ended  June 30, 2016
Professional fees	$	(64,821	)	$	(171,893	)
Net gain on reorganization items		-			713,379
Reorganization items, net	$	(64,821	)	$	541,486