Note 15 - Restatement to Previously Issued Condensed Consolidated Financial Statements

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Reclassifications [Text Block]

NOTE

15:

  RESTATEMENT TO PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company has corrected an inadvertent error in the calculation of the deemed dividend on Series B convertible preferred stock in the financial statements for the

three

and

six

months ended

June 30, 2018

that were included in the Company’s Form

10

-Q filed on

August 13, 2018 (

the “Original Form

10

-Q”). Accounting principles generally accepted in the United States of America require that we allocate the proceeds from the

May 2018

financing to the warrants and preferred stock issued in the financing and that we estimate and record any discount on the securities as a deemed dividend. In the financial statements included in the Original Form

10

-Q, we did

not

properly allocate the proceeds to the warrants, and we did

not

properly record the deemed dividend related to the warrant discount as additional paid in capital to common stock. The Company incorrectly stated the deemed dividend for the

three

and

six

months ended

June 30, 2018

as

$4,782,100,

rather than

$11,479,308.

The corrections result from application of technical accounting rules and do

not

impact cash or operations.

In accordance with applicable generally accepted accounting principles, the Company has calculated and recognized adjustments accordingly. The following table shows the effect of the restatement on certain line items within the Company’s Condensed Consolidated Statement of Operations for the

three

months and

six

months ended

June 30, 2018:  

	For the Three Months Ended June 30, 2018						For the Six Months Ended June 30, 2018
	Previously Reported			Restated			Previously Reported			Restated
Deemed dividend attributable to preferred stock	$	(4,782,100	)	$	(11,479,308	)	$	(4,782,100	)	$	(11,479,308	)
Net loss applicable to common stockholders	$	(8,924,677	)	$	(15,621,885	)	$	(10,799,059	)	$	(17,496,267	)
Loss per common share -basic and diluted	$	(2.90	)	$	(5.08	)	$	(3.77	)	$	(6.11	)

The following table shows the effect of the restatement on certain line items within the Company’s Condensed Consolidated Statement of Stockholders’ Equity for the

six

months ended

June 30, 2018:  

	Preferred Stock Additional Paid-in Capital						Common Stock Additional Paid-in Capital
	Previously Reported			Restated			Previously Reported			Restated
Issuance of Series B convertible preferred stock, net of issuance costs	$	12,290,537		$	6,926,778		$	0		$	5,363,759
Deemed Dividend on Series B convertible preferred stock	$	4,782,100		$	11,479,308		$	(4,782,100	)	$	(11,479,308	)
Conversion of Series B convertible preferred stock to common stock	$	(7,056,421	)	$	(7,821,992	)	$	6,656,442		$	7,422,013