Note 3: Restatement

12 Months Ended

Dec. 31, 2016

Notes

Note 3: Restatement

NOTE 3: RESTATEMENT

The Company restated the December 31, 2015 financial statements in order to correct the following errors:

1) Reclassification of certain property, plant and equipment items that was previously expensed. 2) Reclassification of certain debt instruments previously presented as equity based on the nature of the instrument (although its legal form is a debt instrument). 3) Measurement of stock-based compensation for the Company's 2015 stock grants. 4) Accounting for notes receivable for share allotment in 2015.

The following is the effect of the restatement on the Company’s financial statements as of December 31, 2015 and for the year then ended:

F-37

Consolidated balance sheet as of December 31, 2015:

	As previously reported	Adjustments	As presented in these financial statements
	U.S. Dollar
Property and equipment, net	14,445	57,190	71,635
Notes payable and loans	78,740	100,000	178,740
Common stock	50	1,332	1,382
Treasury stock	(29)	23	(6)
Additional paid-in capital	1,333,995	807,744	2,141,739
Stock payable	456,741	(456,741)	-
Notes receivable for share allotment	(1,532)	(165,000)	(166,532)
Accumulated deficit	(1,628,804)	(230,167)	(1,858,971)

Consolidated statement of operations and comprehensive loss for the year ended December 31, 2015:

	As previously reported	Adjustments	As presented in these financial statements
	U.S. Dollar
Research and development	329,223	69,732	398,955
General and administrative	164,955	160,435	325,390
Net loss for the year	(536,823)	(230,167)	(766,990)
Comprehensive loss	(575,624)	(230,167)	(805,791)
Loss per share – Basic and diluted	(0.049)	(0.013)	(0.062)

Consolidated statements of cash flows for the year ended December 31, 2015:

	As previously reported	Adjustments	As presented in these financial statements
	U.S. Dollar
Net cash used in operating activities	(449,346)	44,113	(405,233)
Net cash used in investing activities	(15,711)	(61,652)	(77,363)
Net cash provided by financing activities:	512,699	-	512,699
Issuance of common stock	512,699	(100,000)	412,699
Proceeds of funds on account of reverse merger	-	100,000	100,000