Note 13 - Restatement to Previously Issued Condensed Consolidated Financial Statements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Reclassifications [Text Block]

NOTE

13:

RESTATEMENT TO PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company 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 required us to allocate the proceeds from the

May 2018

financing to the warrants and preferred stock issued in the financing and to 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.

As a result, the Company also incorrectly stated the net loss attributable to common shareholders for the

three

and

six

months ended

June 30, 2018

as

$8,924,677

and

$10,799,059,

rather than

$15,621,885

and

$17,496,267.

This also had the effect of incorrectly stating the basic and diluted net loss per common share for the

three

and

six

months ended

June 30, 2018

as

$2.90

and

$3.77,

rather than

$5.08

and

$6.11.

The corrections resulted from the application of technical accounting rules and did 

not

impact cash or operations.