XML 46 R35.htm IDEA: XBRL DOCUMENT v3.6.0.2
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Current Assets        
Cash $ 135,060 $ 832,159 $ 15,391 $ 173,828
Accounts receivable 387,667 242,075    
Inventory 508,441 668,567    
Recoverable IVA taxes and credits 342,084 417,897    
Other current assets 24,745 52,014    
Total Current Assets 1,397,997 2,212,712    
Non-Current Assets        
Plant and equipment, net 53,800 70,537    
Intangibles, net 189,917 211,417    
Investment 3,000    
Other assets 12,131 11,712    
Total Non-Current Assets 258,848 293,666    
Total Assets 1,656,845 2,506,378    
Current Liabilities        
Accounts payable 142,185 38,372    
Notes payable 109,307 103,320    
IVA and other taxes payable 88,195 192,044    
Advances from customers 70,342 1,986    
Total Current Liabilities 410,029 335,722    
Total Liabilities 410,029 335,722    
Stockholders' Equity        
Common stock, $0.0001 par value; 100,000,000 shares authorized, 55,254,000 and 44,784,000 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively 5,526 4,478    
Additional paid-in-capital 8,134,541 5,735,861    
Accumulated deficit (7,405,415) (3,989,689)    
Accumulated other comprehensive income 512,164 420,006    
Total stockholder's equity - controlling interest 1,246,816 2,170,656    
Non-controlling interest    
Total Stockholders' Equity 1,246,816 2,170,656    
Total Liabilities and Stockholders' Equity 1,656,845 2,506,378    
Scenario, Previously Reported [Member]        
Current Assets        
Cash 135,060 833,612 15,391 $ 173,828
Accounts receivable 387,667 242,075    
Inventory 508,441 668,567    
Recoverable IVA taxes and credits 286,282 412,143    
Other current assets 1,667 20,509    
Total Current Assets 1,319,117 2,176,906    
Non-Current Assets        
Plant and equipment, net 53,800 70,537    
Intangibles, net 189,917 211,417    
Investment 3,000      
Other assets 12,131 11,712    
Total Non-Current Assets 258,848 293,666    
Total Assets 1,577,965 2,470,572    
Current Liabilities        
Accounts payable 142,185 41,372    
Notes payable 109,307 103,320    
IVA and other taxes payable 23,727 181,946    
Advances from customers 110,468 1,986    
Total Current Liabilities 385,687 328,624    
Total Liabilities 385,687 328,624    
Stockholders' Equity        
Common stock, $0.0001 par value; 100,000,000 shares authorized, 55,254,000 and 44,784,000 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively 5,526 4,981    
Additional paid-in-capital 8,134,541 5,733,811    
Accumulated deficit (7,463,276) (4,019,428)    
Accumulated other comprehensive income 515,487 422,584    
Total stockholder's equity - controlling interest 1,192,278 2,141,948    
Non-controlling interest    
Total Stockholders' Equity 1,192,278 2,141,948    
Total Liabilities and Stockholders' Equity 1,577,965 2,470,572    
Adjustments [Member]        
Current Assets        
Cash (1,453) [1]  
Recoverable IVA taxes and credits [2],[3] 55,802 5,754    
Other current assets [2] 23,078 31,505    
Total Current Assets 78,880 35,806    
Non-Current Assets        
Total Non-Current Assets    
Total Assets 78,880 35,806    
Current Liabilities        
Accounts payable [1]   (3,000)    
IVA and other taxes payable [2],[3] 64,468 10,098    
Advances from customers (40,126)      
Total Current Liabilities 24,342 7,098    
Total Liabilities 24,342 7,098    
Stockholders' Equity        
Common stock, $0.0001 par value; 100,000,000 shares authorized, 55,254,000 and 44,784,000 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively [1]   (503)    
Additional paid-in-capital [1]   2,050    
Accumulated deficit 57,861 29,739    
Accumulated other comprehensive income [4] (3,323) (2,578)    
Total stockholder's equity - controlling interest 54,538 28,708    
Non-controlling interest    
Total Stockholders' Equity 54,538 28,708    
Total Liabilities and Stockholders' Equity $ 78,880 $ 35,806    
[1] To reflect the adjustments necessary to record the effect of the acquisition of the net assets and liabilities and the common shares retained by the shareholders of Asiya Pearls, Inc., on the effective date of the transaction, May 12, 2016, previously this was disclosed effective the earliest date presented in our financial statements.
[2] Management noted an error in recording of cost of goods sold of prepaid services sold to end users. Purchases of prepaid services from providers are recorded as a prepaid asset, which is subsequently expensed to cost of goods sold when the service is sold and the risks and rewards of ownership passed to end users. The cost of goods sold was incorrectly recorded as equal to revenue on all service sales. The gross profit on these revenue transactions had passed to end-users but remained on our balance sheet in prepaid expenditure. The restated financial statements reduced the costs of goods sold recorded by the gross profit earned on these transactions with a corresponding reduction in prepaid expenditure. The net value added tax effect on these transactions was restated and we have brought this restatement to the attention of the Mexican revenue authorities and are in the process of correcting our tax returns.
[3] Management noted an error in the recording of transactions related to a consumer's use of kiosks to pay for certain services such as utilities through our kiosks. In these transactions, the Company earns a payment processing fee as an agent, on either a percentage of transaction value or a fixed fee per transaction basis. This revenue was previously recorded at gross value, the full value of the transaction was recorded as revenue and the full value of the service provided to our end users was recognized as cost of goods sold. The value-added taxation on both the revenue and cost of goods sold was recorded as due to and due from, the Mexican revenue authorities, respectively. The Restated financial statements reversed the difference between the gross revenue recorded and the payment processing fee actually earned on these transactions; and the cost of goods sold entries originally recorded were reversed. The value-added taxation recorded has been restated and we have brought this restatement to the attention of the Mexican revenue authorities and are in the process of correcting our tax returns.
[4] Represents the restatement of the foreign currency translation adjustment directly related to the restatement of revenues and cost of goods sold discussed in A and B above.