Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATION

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CONSOLIDATION
6 Months Ended
May. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
CONSOLIDATION

The consolidated financial statements include the accounts of Avalanche International, Corp. and its wholly-owned subsidiary Smith and Ramsay Brands, LLC. A separate presentation of each Company as of May 31, 2015 and for the six months ended May 31, 2015 is as follows.

 

  Avalanche International, Corp.   Smith and Ramsay Brands, LLC   Elimination   Consolidated
Current Assets:                              
Cash $ 546     $ 1,001     $ —       $ 1,547  
Accounts receivable   —         16,919       —         16,919  
Prepaids   6,395       —         —         6,395  
Prepaid stock for services   188,417       —         —         188,417  
Loan receivable   150,000       —         —         150,000  
Intercompany   284,728       —         284,728       —    
Total current assets   630,086       17,920       284,728       363,278  
Other assets   —         705       —         705  
Product license   —         54,000       —         54,000  
     Total assets $ 630,086     $ 72,625     $ 284,728     $ 417,983  
                               
Current Liabilities                              
Accounts payable and accrued expenses $ 75,420     $ 8,848     $ —       $ 84,268  
Accounts payable, related party   —         37,901       —         37,901  
Accrued interest   6,271       727       —         6,998  
Accrued compensation   1,000       2,647       —         3,647  
Due to related parties   3,532       1,360       —         4,892  
Derivative liability   444,783       —         —         444,783  
Convertible note payable, net of discount   84,178       —         —         84,178  
Loans payable   12,500       15,000       —         27,500  
Intercompany   —         284,728       284,728       —    
Total current liabilities   627,684       351,211       284,728       694,167  
     Total liabilities   627,684       351,211       284,728       694,167  
                               
Stockholders' Equity (Deficit)                              
      Preferred stock   29       —         —         29  
Common stock   5,553       —         —         5,553  
Additional paid-in capital   872,435       —         —         872,435  
Accumulated deficit   (875,615 )     (278,586 )     —         (1,154,201 )
Total stockholders’ equity (deficit)   2,402       (278,586 )     —         (276,184 )
      Total liabilities and stockholders’ equity $ 630,086     $ 72,625     $ 284,728     $ 417,983  

  

  Avalanche
International, Corp
  Smith and Ramsay Brands, LLC   Consolidated
Revenue $ —       $ 38,662     $ 38,662  
Cost of revenue   —         29,292       29,292  
Gross margin   —         9,370       9,370  
                       
Operating Expenses:                      
Advertising and marketing   1,750       4,614       6,364  
Salary expense   13,400       23,335       36,735  
Professional fees   56,493       —         56,493  
Stock for services   251,833       —         251,833  
General and administrative   22,853       169,821       192,674  
  Total operating expense   346,329       197,770       544,099  
                       
Net loss from operations   (346,329 )     (188,400 )     (534,729 )
                       
Other income (expense):                      
      Interest expense   (10,141 )     (714 )     (10,855 )
Interest expense – debt discount   (84,178 )     —         (84,178 )
Derivative expense   (301,309 )     —         (301,309 )
 Gain on derivative   182,776       —         182,776  
Total other expense   (212,852 )     (714 )     (213,566 )
Loss before income tax   (559,181 )     (189,114 )     (748,295 )
Provision for income taxes   —         —         —    
Net Loss $ (559181 )   $ (189114 )   $ (748295 )