|
LAPOLLA
INDUSTRIES, INC.
STATEMENTS
OF CASH FLOWS
|
|
|
Year
Ended December 31,
|
|
|
|
|
2008
|
|
|
2007
|
|
|
Cash
Flows From Operating Activities
|
|
|
|
|
|
|
|
Net
(Loss):
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$ |
(3,534,317 |
) |
|
$ |
(5,062,615 |
) |
|
Adjustments
to Reconcile Net (Loss) to Net Cash (Used in) Operating
Activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
and Amortization
|
|
|
577,128 |
|
|
|
268,604 |
|
|
Provision
for Losses on Accounts Receivable
|
|
|
879,360 |
|
|
|
199,916 |
|
|
Amortization
of Discount on Convertible Term and Revolving Credit Notes
|
|
|
492,566 |
|
|
|
263,553 |
|
|
Share
Based Compensation Expense
|
|
|
900,620 |
|
|
|
1,186,595 |
|
|
Gain
on Extinguishment of Debt
|
|
|
(481,832 |
) |
|
|
— |
|
|
Changes
in Assets and Liabilities, Net of Effects from AirTight Asset
Purchase:
|
|
|
|
|
|
|
|
|
|
Trade
Receivables
|
|
|
(6,834,963 |
) |
|
|
45,361 |
|
|
Inventories
|
|
|
(1,594,933 |
) |
|
|
184,140 |
|
|
Prepaid
Expenses and Other Current Assets
|
|
|
(893,318 |
) |
|
|
5,021 |
|
|
Deposits
and Other Non Current Assets
|
|
|
(4,452 |
) |
|
|
(77,083 |
) |
|
Accounts
Payable
|
|
|
3,022,869 |
|
|
|
(2,646,853 |
) |
|
Accrued
Expenses and Other Current Liabilities
|
|
|
93,802 |
|
|
|
174,586 |
|
|
Other
Liabilities
|
|
|
— |
|
|
|
(216 |
) |
|
Net
Operating Activities of Discontinued Operations
|
|
|
— |
|
|
|
(9,152 |
) |
|
Net
Cash (Used in) Operating Activities
|
|
|
(7,377,470 |
) |
|
|
(5,468,143 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows From Investing Activities
|
|
|
|
|
|
|
|
|
|
Additions
to Property, Plant and Equipment
|
|
|
(158,792 |
) |
|
|
(1,381,955 |
) |
|
Payment
for AirTight Asset Purchase, Net of Cash Acquired
|
|
|
(100,000 |
) |
|
|
— |
|
|
Net
Cash (Used in) Investing Activities
|
|
$ |
(
258,792 |
) |
|
$ |
(1,381,955 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows From Financing Activities
|
|
|
|
|
|
|
|
|
|
Proceeds
from the Issuance of Preferred Stock
|
|
|
— |
|
|
|
— |
|
|
Proceeds
from Revolving Credit Note
|
|
|
3,400,000 |
|
|
|
5,000,000 |
|
|
Proceeds
from Convertible Term Note
|
|
|
1,676,600 |
|
|
|
2,000,000 |
|
|
Principal
Repayments to Convertible Term Note
|
|
|
(400,000 |
) |
|
|
(200,000 |
) |
|
Proceeds
from Line of Credit
|
|
|
— |
|
|
|
1,398,000 |
|
|
Payments
to Line of Credit
|
|
|
— |
|
|
|
(2,405,120 |
) |
|
Proceeds
from Loans Payable – Related Party
|
|
|
3,800,000 |
|
|
|
3,386,224 |
|
|
Payments
to Loans Payable – Related Party
|
|
|
(1,000,000 |
) |
|
|
(1,838,800 |
) |
|
Proceeds
from Note Payable – Other
|
|
|
— |
|
|
|
— |
|
|
Payments
to Note Payable – Other
|
|
|
— |
|
|
|
— |
|
|
Principal
Repayments on Long Term Debt
|
|
|
(117,348 |
) |
|
|
(191,270 |
) |
|
Payment
of Preferred Stock Dividends
|
|
|
(20,000 |
) |
|
|
(15,068 |
) |
|
Net
Financing Activities of Discontinued Operations
|
|
|
— |
|
|
|
(326,129 |
) |
|
Net
Cash Provided by Financing Activities
|
|
|
7,339,252 |
|
|
|
6,807,837 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Increase (Decrease) In Cash
|
|
|
(297,010 |
) |
|
|
(42,261 |
) |
|
Cash
at Beginning of Year
|
|
|
339,855 |
|
|
|
382,116 |
|
|
Cash
at End of Year
|
|
$ |
42,845 |
|
|
$ |
339,855 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
Cash
Payments for Income Taxes
|
|
$ |
-0- |
|
|
$ |
-0- |
|
|
Cash
Payments for Interest
|
|
|
661,955 |
|
|
|
447,317 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Non Cash Investing and Financing Activities:
|
|
|
|
|
|
|
|
|
|
Property,
Plant and Equipment acquired via Issuance/Acquisition of Long Term
Debt
|
|
$ |
269,245 |
|
|
$ |
34,989 |
|
|
Common
Stock Issued – Director Fees and Other Compensation
|
|
|
— |
|
|
|
27,521 |
|
|
Common
Stock Issued – AirTight Asset Purchase Agreement
|
|
|
1,480,000 |
|
|
|
— |
|
|
Common
Stock Issued – Cancellation of Indebtedness
|
|
|
2,138,850 |
|
|
|
1,571,841 |
|
|
Common
Stock Issued – Payment for Accrued Preferred Stock
Dividends
|
|
|
— |
|
|
|
788,859 |
|
The
Accompanying Notes are an Integral Part of the Financial Statements
|
