RESTATEMENT OF FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Restatement Of Financial Statements

Financial statements

Unaudited Tables detailing the effect of the error on the Company’s previously filed financial statements for the quarter ended March 31, 2014 are included below.

FREEZE TAG, INC.

(A DELAWARE CORPORATION)

MARCH 31, 2014 BALANCE SHEET

	As filed			Adjustments			Restated
ASSETS
Current Assets
Cash	$	42,841		$	-		$	42,841
Accounts Receivable, Net		15,397			-			15,397
(Net of Allowance of $5,600)
Deferred Financing Costs		948			-			948
Prepaid Royalties		5,670			-			5,670
Prepaid Expenses		484			-			484
Total Current Assets		65,340			-			65,340
Fixed Assets, Net		528			-			528
(Net of depreciation of $9,249)
Other Long-term Assets, Net		6,120			-			6,120
(Net of amortization of $40,580)
TOTAL ASSETS	$	71,988		$	-		$	71,988
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable	$	103,411		$	-			103,411
Accrued Compensation		77,638			-			77,638
Accrued Royalties		402,011			-			402,011
Accrued Interest		40,480			-			40,480
Accrued Expenses		556			-			556
Technology Payable		18,000			-			18,000
Unearned Royalties		209,521			-			209,521
Convertible Note Payable, Related Party, Net		1,174,473			-			1,174,473
(Net of debt discount of $279,674)
Convertible Note Payable		93,087			10,951			93,087
(Net of debt discount of $168,356)
Derivatives		-			325,939			325,939
Total Current Liabilities		2,119,177			336,890			2,456,067
Total Liabilities		2,119,177			336,890			2,456,067
Equity (Deficit)
Preferred Stock		-			-			-
$0.001 par value per share, 10,000,000 shares authorized, 1000 shares issued and outstanding as of March 31, 2014 and December 31, 2013
Common Stock		99,938			-			99,938
$0.001 par value per share, 500,000,000 shares authorized, 99,938,817 and 99,938,817 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively
Additional Paid-In Capital		3,884,563			(200,000	)		3,684,563
Preferred Stock Payable		30,700			-			30,700
Common Stock Payable		16,800			-			16,800
Retained Deficit		(6,079,190	)		(136,890	)		(6,216,080	)
Total Equity (Deficit)		(2,047,189	)		(336,890	)		(2,384,079	)
TOTAL LIABILITIES & EQUITY (DEFICIT)	$	71,988		$	-		$	71,988

FREEZE TAG, INC.

(A DELAWARE CORPORATION)

STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2014

(Unaudited)

	As Filed			Adjustments			Restated
Revenues	$	14,842		$	-		$	14,842
Costs and Expenses:
Cost of Sales - Product Development		21,075			-			21,075
Cost of Sales - Licensing		2,465			-			2,465
General & Administrative		138,878			-			138,878
Sales & Marketing		1,746			-			1,746
Amortization & Depreciation		129,463			136,890			266,353
Total Expense		293,627			136,890			430,517
Net Ordinary Income/Loss		(278,785	)		(136,890	)		(415,675	)
Interest Income/(Expense), net		(40,335	)		-			(40,335	)
Net Income/Loss before taxes		(319,120	)		(136,890	)		(456,010	)
Income Tax Expense		1,267			-			1,267
Net Income/Loss	$	(320,387	)		(136,890	)	$	(457,277	)
Weighted number of common shares outstanding-basic and fully diluted		99,938,817			99,938,817			99,938,817
Income/ (Loss) per share-basic and fully diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)