Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENTS (Tables)

v2.4.1.9
RESTATEMENTS (Tables)
9 Months Ended
Sep. 30, 2014
Accounting Changes and Error Corrections [Abstract]  
Restatements

The Company’s consolidated financial statements have been restated for the three and nine months ended September 30, 2014:

 

a) to revise the Company’s accounting treatment related to $178,345 liabilities owed to various vendors which we had previously recorded as extinguished and recognized as other income. As a result, the extinguishment of these payables to vendors for an aggregate amount $178,345 and previously recorded other income should have not been recorded;

 

b) the Company reclassified previously recorded gain from forgiveness of debt in connection with the execution of the Mutual and Release Agreement with our former CEO in August 2014 to offset against payroll expenses. The Company determined that the unpaid salaries of $195,000 to Mr. Avery were extinguished and should have been recorded as an offset against payroll expenses during the nine months ended September 30, 2014.

 

 

 

    September 30, 2014   Adjustments       September 30, 2014
    As Previously Reported   To Restate       As Restated
                 
Consolidated Balance Sheet:                
                             
Accounts payable and accrued expenses   $ 571,772     $ 65,948      (a)   $ 637,720  
Liabilities for discontinued operations     —         112,397      (a)     112,397  
Total liabilities     786,652       178,345      (a)     964,997  
                             
Accumulated deficit     (49,169,598 )     (178,345 )    (a)     (49,347,943 )
Total Stockholders' Deficit     (386,552 )     (178,345 )    (a)     (564,897 )
                             
                             
For the Nine Months Ended September 30, 2014                            
Consolidated Statement of Operations:                            
                             
Payroll expense     195,000       (195,000 )    (b)     —    
Total operating expenses     580,961       (195,000 )    (b)     385,961  
Other income     178,345       (178,345 )    (a)     —    
Gain from forgiveness of debt     195,000       (195,000 )    (b)     —    
Total other income (expenses) - net     380,407       (373,345 )    (a) (b)     7,062  
Net loss     (200,554 )     (178,345 )    (a)     (378,899 )
                             
Net loss per common share, basic and diluted:   $ (0.13 )               $ (0.25 )
                             
                             
For the Three Months Ended  September 30, 2014                            
Consolidated Statement of Operations:                            
                             
Payroll expense     45,000       (195,000 )    (b)     (150,000 )
Total operating expenses     82,993       (195,000 )    (b)     (112,007 )
Other income     178,345       (178,345 )    (a)     —    
Gain from forgiveness of debt     195,000       (195,000 )    (b)     —    
Total other income (expenses) - net     393,112       (373,345 )    (a) (b)     19,767  
Net income (loss)     310,119       (178,345 )    (a)     131,774  
                             
Net income (loss) per common share, basic and diluted:   $ 0.19                 $ 0.08  
                             
                             
Consolidated Statement of Cash Flows:                            
Cash flows from operating activities:                            
Net loss     (200,554 )     (178,345 )    (a)     (378,899 )
Increase in accounts payable and accrued expenses     366,227       (195,000 )    (b)     171,227  
Gain from forgiveness of debt     (195,000 )     195,000      (b)     —    
Non-cash other income   $ (178,345 )   $ 178,345      (a)   $ —