Science & Technology
Science and TechnologyScience and Technology 
Tue, November 23, 2010
Mon, November 22, 2010
Left Behind Games Reports Results for the Quarter Ending September 30, 2010
LOS ANGELES--([ BUSINESS WIRE ])--[ Left Behind Games Inc. ][ (OTC:LFBG) ], a leading publisher of Christian video games, today announced its operating and financial results for the quarter ended September 30, 2010. For the 6 months ended September 30, 2010, Left Behind Games reported record net revenues of $222,872 and a net loss of $(33,056), compared to $42,396 and $(889,852) a year ago, respectively.
"We are pleased to report record revenues and our closest report to operational profitability since we were founded 8 years ago to move forward the new genre of Christian video games"
aWe are pleased to report record revenues and our closest report to operational profitability since we were founded 8 years ago to move forward the new genre of Christian video games,a said LB Games® CEO, Troy Lyndon.
Among the highlights of its quarterly filing, LB Games® reported a reduction of its current liabilities by $854,624, a 31.4% decrease. Further, this evening LB Games® Board of Directors is set to approve a policy to substantially reduce share issuances on a go forward basis.
About Left Behind Games Inc.
Left Behind Games Inc., dba Inspired Media Entertainment, is the only publicly-traded exclusive publisher of Christian video game software. They produce quality interactive entertainment products that perpetuate positive values and appeal to faith-based and mainstream audiences. For more information, go to [ www.LBGames.com ].
LB GAMES, LEFT BEHIND 3: RISE OF THE ANTICHRIST, CHARLIE CHURCH MOUSE, PRAISE CHAMPION AND KING SOLOMONa™S TRIVIA CHALLENGE are trademarks of Left Behind Games Inc. in the U.S. and other countries. All rights reserved.
LEFT BEHIND is a registered trademark of Tyndale House Publishers, Inc. in the U.S. and other countries. All rights reserved.
All other trademarks are the property of their respective holders. All rights reserved.
Caution Concerning Forward-Looking Statements
This release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or expectations of Left Behind Games. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that results may differ materially from such statements.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
LEFT BEHIND GAMES INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| September 30, | March 31, | |||||||||
| 2010 | 2010 | |||||||||
| ASSETS | (Unaudited) | (Audited) | ||||||||
| Current assets | ||||||||||
| Cash | $ | 20,227 | $ | 56,677 | ||||||
| Restricted cash | 30,000 | 30,000 | ||||||||
| Accounts receivable | -- | 6,915 | ||||||||
| Inventories, net | 45,047 | 148,058 | ||||||||
| Prepaid royalties | 7,182 | 30,426 | ||||||||
| Prepaid expenses and other current assets | 8,257 | 6,048 | ||||||||
| Total current assets | 110,713 | 278,124 | ||||||||
| Property and equipment, net | 63,827 | 68,290 | ||||||||
| Note receivable | 84,259 | 101,111 | ||||||||
| Intellectual property, net | 51,563 | 85,938 | ||||||||
| Other assets | 6,102 | 5,927 | ||||||||
| Total assets | $ | 316,464 | $ | 539,390 | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||
| Current Liabilities | ||||||||||
| Accounts payable and accrued expenses | $ | 1,527,339 | $ | 2,350,525 | ||||||
| Payroll liabilities payable | 237,867 | 161,104 | ||||||||
| Notes payable, net of discounts | 99,807 | 31,200 | ||||||||
| Notes payable in default | -- | 177,338 | ||||||||
| Advances from related parties | -- | -- | ||||||||
| Deferred revenue | 608 | 78 | ||||||||
| Total current liabilities | 1,865,621 | 2,720,245 | ||||||||
| Commitments and Contingencies | ||||||||||
| Stockholders' Deficit | ||||||||||
| Series A preferred stock, $0.001 par value; 3,586,245 shares authorized, | ||||||||||
| issued and outstanding as of September 30, 2010 and March 31, 2010; | ||||||||||
| liquidation preference of $188,500 | 3,586 | 3,586 | ||||||||
| Series B preferred stock, $0.001 par value; 16,413,755 shares authorized; | ||||||||||
10,700,929 and 11,040,929 shares issued and outstanding on September 30, 2010 | ||||||||||
and March 31, 2010 | 10,702 | 11,041 | ||||||||
| Series C preferred stock, $0.001 par value,10,000 authorized, | -- | -- | ||||||||
| issued and outstanding as of September 30, 2010 and March 31, 2010 | ||||||||||
| Series D convertible preferred stock, 1,000 shares authorized, 109 and zero | ||||||||||
| shares issued and outstanding as of September 30, 2010 and March 31, 2010 | -- | -- | ||||||||
| Common stock, par value $0.001 per share; 5,000,000,000 shares | ||||||||||
| authorized; 3,980,681,458 and 2,279,968,311 shares issued and outstanding | ||||||||||
| As of September 30, 2010 and March 31, 2010, respectively | 3,972,132 | 2,280,419 | ||||||||
| Treasury stock | 24,500 | 24,500 | ||||||||
| Additional paid-in capital | 46,939,731 | 47,338,235 | ||||||||
| Accumulated deficit | (52,499,808 | ) | (51,838,636 | ) | ||||||
| (1,549,157 | ) | (2,180,855 | ) | |||||||
| Total liabilities and stockholders' deficit | $ | 316,464 | $ | 539,390 | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | ||||||||||
LEFT BEHIND GAMES INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 | ||||||||||||||||||||
| Three Months | Three Months | Six Months | Six Months | |||||||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||
| Net revenues | $ | 182,976 | $ | 18,591 | $ | 222,872 | $ | 42,396 | ||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Cost of sales a" product costs | 121,947 | 14,156 | 135,188 | 26,907 | ||||||||||||||||
| Cost of sales a" intellectual property costs | 1,178 | 3,004 | 2,571 | 7,191 | ||||||||||||||||
| Stock based compensation a" consultants | 75,657 | 149,393 | 287,261 | 299,830 | ||||||||||||||||
| General and administrative | 142,100 | 468,952 | 390,046 | 883,262 | ||||||||||||||||
| Product development | (133,477 | ) | 47,361 | 68,131 | 48,961 | |||||||||||||||
| Total costs and expenses | 207,405 | 682,866 | 883,197 | 1,266,151 | ||||||||||||||||
| Operating loss | (24,429 | ) | (664,275 | ) | (660,325 | ) | (1,223,755 | ) | ||||||||||||
| Other (income) expense: | ||||||||||||||||||||
| Interest and other debt expenses | 6,060 | 225,272 | (16,005 | ) | 498,472 | |||||||||||||||
| Other expense | 2,567 | 305 | 16,852 | 305 | ||||||||||||||||
| Total other (income) expense | 8,627 | 225,577 | 847 | 498,777 | ||||||||||||||||
| Net loss | (33,056 | ) | (889,852 | ) | (661,172 | ) | (1,722,532 | ) | ||||||||||||
| Basic and diluted profit (loss) per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||
Weighted average number of common shares outstanding | 3,251,501,634 | 799,254,783 | 2,909,326,917 | 623,060,609 | ||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | ||||||||||||||||||||
LEFT BEHIND GAMES INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 | ||||||||||
| Six Months | Six Months | |||||||||
| Ended | Ended | |||||||||
| September 30, | September 30, | |||||||||
| 2010 | 2009 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net loss | $ | (661,172 | ) | $ | (1,722,532 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
| Depreciation and amortization | 22,135 | 16,403 | ||||||||
| Recognition of deferred stock compensation | -- | 100,025 | ||||||||
| Stock based compensation - consultants | 287,261 | 299,830 | ||||||||
| Stock based compensation - employees and directors for services | -- | 60,000 | ||||||||
| Interest paid in common stock | 4,063 | -- | ||||||||
| Amortization of debt discount | 7 | 317,631 | ||||||||
| Provision for notes receivable reserve | 16,852 | -- | ||||||||
| Issuance of shares for antidilution protection | 103,742 | -- | ||||||||
| Beneficial conversion on note payable conversions | -- | 131,251 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | 6,915 | -- | ||||||||
| Inventories | 103,011 | 8,022 | ||||||||
| Prepaid expenses | 6,791 | 3,334 | ||||||||
| Other assets and prepaid royalties | 57,444 | (7,206 | ) | |||||||
| Accounts payable and accrued expenses | (519,925 | ) | 194,763 | |||||||
| Deferred income a" product sales | 530 | 1,325 | ||||||||
| Net cash used in operating activities | (572,346 | ) | (597,154 | ) | ||||||
| Cash flows from investing activities: | ||||||||||
| Purchases of property and equipment | (17,672 | ) | -- | |||||||
| Net cash used in investing activities | (17,672 | ) | -- | |||||||
| Cash flows from financing activities: | ||||||||||
| Proceeds from the issuance of notes payable | 25,000 | 25,000 | ||||||||
| Proceeds from the issuance of common stock | 528,568 | 619,006 | ||||||||
| Net cash provided by financing activities | 553,568 | 644,006 | ||||||||
| Net (decrease) increase in cash | (36,450 | ) | 46,852 | |||||||
| Cash at beginning of period | 56,677 | 7,778 | ||||||||
| Cash at end of period | $ | 20,227 | $ | 54,630 | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | ||||||||||
LEFT BEHIND GAMES INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 | ||||||||
| Six Months | Six Months | |||||||
| Ended | Ended | |||||||
| September 30, | September 30, | |||||||
| 2010 | 2009 | |||||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | -- | $ | -- | ||||
| Income taxes | $ | -- | $ | -- | ||||
| Supplemental disclosures of non-cash and investing and financing information: | ||||||||
| Issuance of common stock under license agreement | $ | -- | $ | 137,500 | ||||
| Exchange of equipment for settlement of accounts payable | $ | -- | $ | 503 | ||||
| Discount on convertible notes payable | $ | 25,000 | $ | -- | ||||
| Conversion of notes and accounts payable into common stock | $ | 337,917 | $ | 1,262.601 | ||||
| Return of common stock as treasury shares | $ | -- | $ | 24,500 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | ||||||||