XML 21 R11.htm IDEA: XBRL DOCUMENT v3.21.1
Restatement of Financial Statements
12 Months Ended
Dec. 31, 2020
Investments, All Other Investments [Abstract]  
Restatement of Financial Statements

5. RESTATEMENT OF FINANCIAL STATEMENTS

 

In accordance with ASC 250-10-50-7, the Company has restated the Balance Sheet as of December 31, 2019. As reported, on the Balance Sheet, under Current Assets, stated $1,266 of accrued revenue, and under Property and Equipment, stated Property and Equipment at net in the amount of $12,000. As restated, the accrued revenue is now titled “asset held for sale” in the amount of $1,266. In addition, as restated, the Property and Equipment shows the description of the asset as cryptocurrency miners and the cost of these cryptocurrency miners of $15,000, and shows the amount of accumulated depreciation of $3,000, totaling $12,000. (See Note 7) This restatement of the Balance Sheet as of December 31, 2019 had no effect on Accumulated deficit as of December 31, 2019 and Net Loss for the year ended December 31, 2019.

 

In accordance with ASC 250-10-50-7, the Company has restated the Statement of Operations for the year ended December 31, 2019. As reported, on the Statement of Operations, the Cost of revenues was -0-, and the Gross Profit was $8,378. In addition, the Operating expenses were stated at $28,793. As restated, the Cost of revenues is $3,000, the Gross profit is $5,378 and the Operating expenses are $25,793. This restatement is due to a reclassification of depreciation from operating expense to cost of revenue, since the only revenue received is from crypto mining, therefore the crypto mining equipment is considered to be a cost of revenue and not an operating expense. This restatement of the Statement of Operations for the year ended December 31, 2019 had no effect on Accumulated deficit as of December 31, 2019, and no effect on Loss from Operations and Net Loss for the year ended December 31, 2019.

 

In accordance with ASC 250-10-50-7, the Company has restated the Statement of Cash Flows for the year ended December 31, 2019. As reported, under Operating Activities: 1) Adjustments to reconcile net loss to net cash used in operating activities included Common stock issued for service and debt reduction of $38,700; and 2) Changes in operating assets and liabilities included Due to related party of $14,000. As reported, the Net cash provided by operating activities was $30,259. In addition, as reported, Financing Activities included Principal paid on Notes payable-related parties of $26,700, and Net cash used in financing activities, as reported, was $20,000. During 2020, the Company discovered that $26,700 of the $38,700 reported as Common stock issued for service and debt reduction was Common stock issued to reduce debt and therefore should not have been included in both Operating Activities and Financing Activities. The Company also discovered the Due to related party of $14,000 should not have been included in Operating Activities but should have been included in Financing Activities. The Statement of Cash Flow for the year ended December 31, 2019 was restated to correct these items. The restated Statement of Cash Flows removed $26,700 of Common stock issued for debt reduction, and $14,000 of Due to related party from the Operating Activities, resulting in Net cash used in operating activities of $10,441. In addition, the restated Statement of Cash Flows includes Due to related party of $14,000 in Financing Activities and removes $26,700 of Principal paid on Notes payable-related parties of $26,700 (since this was common stock issued for debt reduction and therefore a non-cash transaction) from Financing Activities, resulting in Net cash provided by financing activities of $20,700. These changes had no effect on the Net decrease in cash on the Statement of Cash Flows. The restatement of the Statement of Cash Flows for the year ended December 31, 2019 had no effect on Accumulated deficit at December 31, 2019 and Net Loss for the year ended December 31, 2019.