v2.4.0.8

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
REVENUES
Net sales	$ 370,063	$ 333,027	$ 968,325	$ 800,504
Net sales to related party	106,918	95,641	338,061	391,646
Cost of sales	351,733	412,579	979,663	912,178
Gross profit	125,248	16,089	326,723	279,972
COSTS AND EXPENSES:
General and administrative	238,632	682,550	1,405,463	1,508,341
Professional fees	127,517	135,916	394,074	363,706
Depreciation expense	45,750	45,750	137,250	137,250
TOTAL EXPENSES	411,899	864,216	1,936,787	2,009,297
LOSS FROM OPERATIONS	(286,651)	(848,127)	(1,610,064)	(1,729,325)
OTHER INCOME (EXPENSE)
Loss on sale of discontinued operations	0	0	(443,183)	0
Loss from conversion agreement true-up	0	0	0	(233,381)
Change in fair value of derivative liabilities	0	0	0	363
Interest expense, net	(118,410)	(111,469)	(350,617)	(379,986)
NET OTHER INCOME (EXPENSE)	(118,410)	(111,469)	(793,800)	(613,004)
NET LOSS FROM CONTINUING OPERATIONS	(405,061)	(959,596)	(2,403,864)	(2,342,329)
Net income (loss) from discontinued operations	0	(86,065)	(6,831)	(60,785)
Loss on sale of discontinued operations			6,831	60,785
NET LOSS	(405,061)	(1,045,661)	(2,410,695)	(2,403,114)
Other comprehensive income	(5,280,000)	0	3,641,000	0
TOTAL COMPREHENSIVE INCOME (LOSS)	$ (5,685,061)	$ (1,045,661)	$ 1,230,305	$ (2,403,114)
NET LOSS PER SHARE:
Basic and Diluted from continuing operations	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Basic and Diluted from discontinued operations	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Basic and Diluted from net loss	$ 0.00	$ 0.00	$ 0.00	$ 0.00
WEIGHTED AVERAGE SHARES:
Basic and Diluted	739,126,430	519,340,666	715,897,618	597,936,763

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

World Surveillance Group Inc. 10-Q