Wyoming
|
45-2477894
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer File Number)
|
5340 N. Federal Highway
Suite 206
Lighthouse Point, FL
|
33064 |
(Address of principal executive offices) | (zip code) |
Large accelerated filer o
|
Accelerated filer o
|
Non-accelerated filer o (Do not check if a smaller reporting company)
|
Smaller reporting company þ
|
PART I FINANCIAL INFORMATION | Page | |
Item 1.
|
Financial Statements for the three and nine months ended September 30, 2016
|
|
Balance Sheets (Unaudited)
|
3
|
|
Statements of Operations (Unaudited)
|
4
|
|
Statements of Cash Flows (Unaudited)
|
5
|
|
Notes to Unaudited Financial Statements
|
6
|
|
Item 2.
|
Management’s Discussion and Analysis and Plan of Operation
|
10
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
13
|
Item 4.
|
Controls and Procedures
|
13
|
|
|
|
PART II OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
14
|
Item 1A.
|
Risk Factors
|
14
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
14
|
Item 3.
|
Defaults Upon Senior Securities
|
14
|
Item 4.
|
Mine Safety Disclosures
|
14
|
Item 5.
|
Other Information
|
14
|
Item 6.
|
Exhibits
|
15
|
|
|
|
Signatures
|
16
|
NEXUS ENTERPRISE SOLUTIONS, INC.
|
||||||||
Balance Sheets
|
||||||||
(Unaudited)
|
||||||||
September 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash
|
$
|
130
|
$
|
18,842
|
||||
Accounts receivable, net of allowance for doubtful accounts
|
76,880
|
173,203
|
||||||
Total Current Assets
|
77,010
|
192,045
|
||||||
Property and equipment, net of accumulated depreciation
|
-
|
547
|
||||||
Intangible assets
|
275,000
|
275,000
|
||||||
TOTAL ASSETS
|
$
|
352,010
|
$
|
467,592
|
||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable and accrued expenses
|
$
|
199,505
|
$
|
239,293
|
||||
Accrued expenses to related parties
|
221,839
|
211,721
|
||||||
Current portion of convertible debt, net of unamortized discount
|
86,369
|
170,500
|
||||||
Notes payable to related parties
|
139,985
|
127,485
|
||||||
Derivative liabilities
|
58,316
|
-
|
||||||
Total Current Liabilities
|
706,014
|
748,999
|
||||||
Long-term portion of convertible debt
|
-
|
15,000
|
||||||
TOTAL LIABILITIES
|
706,014
|
763,999
|
||||||
STOCKHOLDERS' DEFICIT
|
||||||||
Preferred stock, 10,000,000 shares authorized,
|
||||||||
no par value, no shares issued and outstanding
|
-
|
-
|
||||||
Common stock, 500,000,000 shares authorized; $.001 par
|
||||||||
value, 19,242,144 and 19,007,144 shares issued and
|
||||||||
outstanding, respectively
|
19,242
|
19,007
|
||||||
Additional paid-in capital
|
1,576,369
|
1,542,270
|
||||||
Accumulated deficit
|
(1,949,615
|
)
|
(1,857,684
|
)
|
||||
Total Stockholders' Deficit
|
(354,004
|
)
|
(296,407
|
)
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$
|
352,010
|
$
|
467,592
|
||||
The accompanying notes are an integral part of these unaudited financial statements.
|
NEXUS ENTERPRISE SOLUTIONS, INC.
|
||||||||||||||||
Statements of Operations
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
REVENUES
|
$
|
266,852
|
$
|
312,409
|
$
|
964,702
|
$
|
1,374,577
|
||||||||
COST OF SALES
|
152,891
|
187,394
|
548,798
|
786,220
|
||||||||||||
GROSS PROFIT
|
113,961
|
125,015
|
415,904
|
588,357
|
||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
General and administrative
|
11,688
|
21,187
|
112,688
|
75,720
|
||||||||||||
Consulting and professional fees
|
125,330
|
117,439
|
357,344
|
392,761
|
||||||||||||
Total Operating Expenses
|
137,018
|
138,626
|
470,032
|
468,481
|
||||||||||||
(LOSS) INCOME FROM OPERATIONS
|
(23,057
|
)
|
(13,611
|
)
|
(54,128
|
)
|
119,876
|
|||||||||
OTHER INCOME (EXPENSES)
|
||||||||||||||||
Gain on derivative
|
8,692
|
-
|
8,692
|
-
|
||||||||||||
Interest expense
|
(38,825
|
)
|
(5,530
|
)
|
(46,495
|
)
|
(19,592
|
)
|
||||||||
NET (LOSS) INCOME
|
$
|
(53,190
|
)
|
$
|
(19,141
|
)
|
$
|
(91,931
|
)
|
$
|
100,284
|
|||||
NET (LOSS) INCOME PER COMMON SHARE -
|
||||||||||||||||
BASIC AND DILUTED
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
0.01
|
|||||
WEIGHTED AVERAGE NUMBER OF COMMON
|
||||||||||||||||
SHARES OUTSTANDING -
|
||||||||||||||||
BASIC AND DILUTED
|
19,242,144
|
19,007,144
|
19,092,053
|
18,921,430
|
||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
|
NEXUS ENTERPRISE SOLUTIONS, INC.
|
||||||||
Statements of Cash Flows
|
||||||||
(Unaudited)
|
||||||||
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2016
|
2015
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net (loss) income
|
$
|
(91,931
|
)
|
$
|
100,284
|
|||
Adjustments to reconcile net (loss) income to net cash used in
operating activities:
|
||||||||
Depreciation expense
|
547
|
-
|
||||||
Amortization of debt discount
|
36,377
|
-
|
||||||
Derivative gain
|
(8,692
|
)
|
-
|
|||||
Stock-based compensation
|
34,334
|
43,719
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
96,323
|
133,017
|
||||||
Accrued expenses
|
10,118
|
19,592
|
||||||
Accounts payable
|
(39,788
|
)
|
(116,012
|
)
|
||||
Net Cash Provided by Operating Activities
|
37,288
|
180,600
|
||||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from related party note payable
|
61,000
|
-
|
||||||
Repayment of related party notes payable
|
(48,500
|
)
|
-
|
|||||
Repayment of third party notes payable
|
(68,500
|
)
|
(207,500
|
)
|
||||
Net Cash Used In Financing Activities
|
(56,000
|
)
|
(207,500
|
)
|
||||
NET DECREASE IN CASH
|
(18,712
|
)
|
(26,900
|
)
|
||||
CASH AT BEGINNING OF PERIOD
|
18,842
|
31,575
|
||||||
CASH AT END OF PERIOD
|
$
|
130
|
$
|
4,675
|
||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES
|
||||||||
Debt discount resulting from derivative liability
|
$
|
67,008
|
-
|
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
CASH PAID FOR:
|
||||||||
Interest
|
$
|
-
|
$
|
-
|
||||
Income taxes
|
-
|
-
|
||||||
|
Nine Months Ended September 30,
|
|
|
2016
|
|
Volatility
|
43.10 % - 107.35%
|
|
Risk-free interest rate
|
0.45% - 0.59%
|
|
Expected dividends
|
-%
|
|
Expected term
|
0.38 – 0.71 years
|
|
Level 1
|
Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
|
Level 2
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
|
Fair Value Measurements as of
September 30, 2016 |
|||||||||||
|
Level 1
|
Level 2
|
Level 3
|
|||||||||
Assets
|
||||||||||||
None
|
$ | - | $ | - | $ | - | ||||||
Total assets
|
-
|
-
|
-
|
|||||||||
Liabilities
|
||||||||||||
Conversion option derivative liability
|
-
|
-
|
58,316
|
|||||||||
Total liabilities
|
$
|
-
|
$
|
-
|
$
|
58,316
|
Significant Unobservable Inputs (Level 3) Nine Months Ended September 30, 2016
|
||||
Beginning balance
|
$
|
-
|
||
Additions recognized as debt discount
|
67,008
|
|||
Change in fair value
|
(8,692
|
)
|
||
Ending balance
|
$
|
58,316
|
Exhibit
Number
|
|
Description
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Section 302
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Section 302
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer pursuant to Section 906
|
|
|
|
32.2
|
|
Certification of Chief Financial Officer pursuant to Section 906
|
|
|
|
101.INS**
|
|
XBRL Instance Document
|
|
|
|
101.SCH**
|
|
XBRL Taxonomy Schema
|
|
|
|
101.CAL**
|
|
XBRL Taxonomy Calculation Linkbase
|
|
|
|
101.DEF**
|
|
XBRL Taxonomy Definition Linkbase
|
|
|
|
101.LAB**
|
|
XBRL Taxonomy Label Linkbase
|
|
|
|
101.PRE **
|
|
XBRL Taxonomy Presentation Linkbase
|
Nexus Enterprise Solutions, Inc.
|
|||
By:
|
/s/ James Bayardelle
|
||
James Bayardelle, President
|
/s/ James Bayardelle
|
President, Chief Executive Officer,
Principal Accounting Officer,
Chief Financial Officer and Director
|
November 19, 2016
|
|||
James Bayardelle
|
Title
|
Date
|
|||