Note 1. General Organization and Business

First Titan Corp. (the "Company"), a Florida corporation, was formed to design and manufacture both panel and engineered/tooled custom vacuum formed instrument panels and wiring harnesses, required for the monitoring of any final product that utilizes a gas or diesel engine source. The Company is currently primarily an oil and gas exploration company.

The Company was incorporated on September 16, 2010 with our corporate headquarters located in Bradenton, Florida. Our year-end is September 30.

On September 16, 2011, First Titan Corporation created First Titan Energy, LLC to invest in oil and gas properties, greenfield projects and in the development of cutting edge exploration and production technologies.

On September 16, 2011, we formed a new subsidiary company -First Titan Technical, LLC-to commence business operations designing and marketing automotive electronics custom-designed for heavy-duty vehicles.

Restatement

In July 2014, the Company determined that due to an error in accounting for the acquisition of available for sale securities, the Company's consolidated financial statements as of and for the periods ended December 31, 2013 and March 31, 2014 should no longer be relied upon. The purpose of the restatement was to correct the accounting for our purchase of the common stock of BioFuels Power Corp. The Company had originally written off its investment in the common stock of BioFuels Power Corp. However, since the common stock is quoted on a public market, the investment in the common stock should have been accounted for as an investment in available for sale securities. As a result of the restatement, the common stock was recorded at its fair market value on each balance sheet date. Changes in the fair market value of the securities are recognized in other comprehensive income.

The Company restated the consolidated statements of operations and comprehensive loss for the three months ended December 31, 2013 and for the six months and three months ended March 31, 2014 as follows:


	Three months ended December 31, 2013
	As originally reported			Adjustments		As Restated

OIL AND GAS SALES, net	$	32,210				$	32,210

OPERATING EXPENSES
Lease operating expense		3,817					3,817
Depletion, depreciation and amortization		22,900					22,900
Accretion expense		348					348
Impairment of investments		25,000		(25,000	) (1)		-
General and administrative expense		165,068					165,068

LOSS FROM OPERATIONS		(184,923	)				(159,923	)

OTHER EXPENSE:
Interest expense		(195,598	)				(195,598	)

Net loss	$	(380,521	)			$	(355,521	)

Change in fair value of available for sale securities		-		4,640	(2)		4,640

Comprehensive loss	$	(380,521	)			$	(350,881	)

Net loss per common share - basic and diluted	$	(0.03	)			$	(0.03	)

Weighted average number of common shares outstanding- basic and diluted		11,741,447					11,741,447


	Six months ended March 31, 2014
	As originally reported			Adjustments		As Restated

OIL AND GAS SALES, net	$	54,069				$	54,069

OPERATING EXPENSES
Lease operating expense		11,324					11,324
Depletion, depreciation and amortization		30,630					30,630
Accretion expense		526					526
Impairment of investments		35,000		(35,000	) (1)		-
General and administrative expense		276,313					276,313

LOSS FROM OPERATIONS		(299,724	)				(264,724	)

OTHER EXPENSE:
Interest expense		(262,359	)				(262,359	)

Net loss	$	(562,083	)			$	(527,083	)

Change in fair value of available for sale securities		-		23,220	(2)		23,220

Comprehensive loss	$	(562,083	)			$	(503,863	)

Net loss per common share - basic and diluted	$	(0.04	)			$	(0.04	)

Weighted average number of common shares outstanding- basic and diluted		12,744,225					12,744,225


	Three months ended March 31, 2014
	As originally reported			Adjustments		As Restated

OIL AND GAS SALES, net	$	21,859				$	21,859

OPERATING EXPENSES
Lease operating expense		7,507					7,507
Depletion, depreciation and amortization		7,730					7,730
Accretion expense		178					178
Impairment of investments		10,000		(10,000	) (1)		-
General and administrative expense		111,245					111,245

LOSS FROM OPERATIONS		(114,801	)				(104,801	)

OTHER EXPENSE:
Interest expense		(66,761	)				(66,761	)

Net loss	$	(181,562	)			$	(171,562	)

Change in fair value of available for sale securities		-		18,580	(2)		18,580

Comprehensive loss	$	(181,562	)			$	(152,982	)

Net loss per common share - basic and diluted	$	(0.01	)			$	(0.01	)

Weighted average number of common shares outstanding- basic and diluted		13,769,286					13,769,286

Adjustments to consolidated financial statements:

(1) Reverse impairment of investment.

(2) Recognize change in fair value of available for sale securities.