RESTATEMENT OF PRIOR FINANCIALS

3 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PRIOR FINANCIALS

NOTE 11-              RESTATEMENT OF PRIOR FINANCIAL STATEMENTS

The Company has restated its financial statements for the period ended March 31, 2015 for the correction of an error to properly account for its accounting for the acquisition of Breathe eCigs Corp. (formerly Breathe LLC) as a reverse merger. As a result of the reverse merger, the accounting acquirer was Breathe eCigs Corp. (formerly Breathe LLC), and therefore, the historical financial statements (2014) are those of Breathe eCigs Corp (formerly Breathe LLC). In addition, the three-month period ended March 31, 2015 as well as the March 31, 2015 consolidated balance sheet have been restated to properly reflect the activity of only Breathe eCigs Corp. (formerly Breathe LLC). All references to DNA Precious Metals, Inc. and the activity of DNA Precious Metals, Inc. have been excluded from the restated presentation. The effect of this restatement adjustment on the net loss for the three months ended March 31, 2015 was a decrease in the net loss from $1,020,857 to $1,000,304, a change of $20,553. The change in stockholders’ deficit was $9,050,606, from $8,651,706 to ($398,900), the result of the removal of goodwill in the original business combination.

The following charts reflect the changes of the individual line items changed in the consolidated financial statements.

March 31, 2015
Net loss prior to restatement		$	(1,020,857	)
	(1)		20,553
Net loss after restatement		$	(1,000,304	)
	(2)	$	8,651,706
Accumulated deficit – prior to restatement			(9,050,606	)
Accumulated deficit – after restatement		$	(398,900	)
(1) Reflects removal of the former discontinued operations related to the DNA Precious Metals, Inc. business
(2) Reflects correction of an error related to the is this combination accounting

March 31, 2015	Previously reported			Restated			Change
Statement of Operations
Loss from discontinued operations	$	(20,553	)	$	-		$	(20,553	)
Net loss		(1,020,857	)		(1,000,304	)		20,553
Balance Sheet
Goodwill		9,050,606			-			(9,050,606	)
Additional paid in capital		(17,166,547	)		(362,311	)		16,804,236
Accumulated deficit		8,791,194			1,037,564			(7,753,630	)
Statement of Cash Flow
Net loss		(1,020,857	)		(1,000,304	)		20,553
Depreciation and amortization		3,254			3,179			(75	)
Change and prepaid expenses		(104,632	)		(101,171	)		3,461
Change in accounts payable		(31,363	)		(18,017	)		13,346
Repayment of notes payable		(2,073	)		(5,000	)		(2,927	)
Effect on foreign currency		(6,109	)		-			6,109
Cash –Beginning of year		53,813			13,346			(40,467	)