RESTATEMENT OF PRIOR FINANCIALS

3 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PRIOR FINANCIALS

NOTE 14- RESTATEMENT OF PRIOR FINANCIAL STATEMENTS

The Company has restated its financial statements for the six and three months ended June 30, 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 six and three months ended June 30, 2015 as well as the June 30, 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 six and three months ended June 30, 2015 was a decrease in the net loss from $6,696,333 to $6,675,780 for the six months ended June 30, 2015 and a decrease in the net loss from $5,696,029 to $5,675,476, a change in both periods of $20,553. The change in stockholders’ deficit was $9,050,606, from $8,708,513 to ($342,093), 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.

	Six Months			Three Months
	June 30, 2015			June 30, 2015
Net loss prior to restatement	$	(6,696,333	)	$	(5,696,029	)
(1)		20,553			20,553
Net loss after restatement	$	(6,675,780	)	$	(5,675,476	)
Accumulated deficit - prior to restatement	$	8,708,513
(2)		(9,050,606	)
Accumulated deficit - after restatement	$	(342,093	)
(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 business combination accounting

Six Months Ended June 30, 2015
	Previously
Statement of Operations	Reported			Restated			Change
Loss from discontinued operations		(20,553	)		-			(20,553	)
Net loss		(6,696,333	)		(6,675,780	)		20,553
Balance Sheet
Goodwill		9,050,606			-			(9,050,606	)
Additional paid in capital		(22,832,946	)		(6,028,710	)		16,804,236
Accumulated deficit		14,466,670			6,713,040			(7,753,630	)
Statement of Cash Flow
Net loss		(6,696,333	)		(6,675,780	)		20,553
Depreciation and amortization		12,524			12,449			(75	)
Change in prepaid expenses		(866,717	)		(865,528	)		1,189
Change in inventory		(118,884	)		(120,072	)		(1,188	)
Change in accounts payable		245,420			262,226			16,806
Repayments of notes payable		(29,573	)		(32,500	)		(2,927	)
Effect on foreign currency		(6,109	)		-			6,109
Cash - Beginning of the year		53,813			13,346			(40,467	)
Three Months Ended June 30, 2015
	Previously
Statement of Operations	Reported			Restated			Change
Net loss		(5,696,029	)		(5,675,476	)		20,553