RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

9 Months Ended

Sep. 30, 2017

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

3 RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

Fixed Assets

The Company reclassified certain kiosk assets used in the production of income, previously recorded in inventory as fixed assets and applied an appropriate depreciation policy to these kiosks.

The restated Unaudited Condensed Consolidated Balance Sheet as of September 30, 2016 and the related Consolidated Statements of Operations and Comprehensive loss and the Statement of Cash Flows for the three and nine months ended September 30, 2016, is presented below:

CONDENSED CONSOLIDATED BALANCE SHEET

September 30, 2016

	As Previously Reported			Adjustments			Notes	As Restated
	(Unaudited)							(Unaudited)
Assets
Current Assets
Cash	$	25,638						$	25,638
Accounts receivable		59,059							59,059
Inventory		480,046			(188,240	)	(A)		291,806
Recoverable IVA taxes and credits		358,521							358,521
Other current assets		149,778							149,778
Total Current Assets		1,073,042			(188,240	)			884,802
Non-Current Assets
Plant and equipment, net		45,205			139,149		(A)		184,354
Intangibles, net		179,167							179,167
Investment		3,000							3,000
Other assets		10,447							10,447
Total Non-Current Assets		237,819			139,149				376,968
Total Assets	$	1,310,861		$	(49,091	)		$	1,261,770
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable	$	237,159						$	237,159
Notes payable		172,328							172,328
IVA and other taxes payable		111,686							111,686
Advances from customers		8,324							8,324
Total Current Liabilities		529,497			—				529,497
Total Liabilities		529,497			—				529,497
Stockholders’ Equity
Common stock, $0.0001 par value; 100,000,000 shares authorized, 55,394,000 shares issued and outstanding as of September 30, 2016		5,540							5,540
Additional paid-in-capital		8,239,527							8,239,527
Accumulated deficit		(8,031,286	)		(49,091	)	(A)		(8,080,377	)
Accumulated other comprehensive income		567,583							567,583
Total stockholder’s equity - controlling interest		781,364			(49,091	)			732,273
Non-controlling interest		—			—				—
Total Stockholders’ Equity		781,364			(49,091	)			732,273
Total Liabilities and Stockholders’ Equity	$	1,310,861		$	(49,091	)		$	1,261,770

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

Three Months Ended September 30, 2016

	As Previously Reported			Adjustments			Notes	As Restated
Revenues
Airtime	$	736,937						$	736,937
Kiosk sales		16,428							16,428
Commissions on services		16,532							16,532
Other		—							—
		769,897			—				769,897
Cost of Goods Sold
Airtime		723,137							723,137
Kiosk sales		5,337							5,337
Depreciation		—			7,111		(B)		7,111
Other		7,547							7,547
		736,021			7,111				743,132
Gross Profit		33,876			(7,111	)			26,765
General and administrative		536,156							536,156
Depreciation and amortization		19,345			(388	)	(A)		18,957
Total Expense		555,501			(388	)			555,113
Loss from Operations		(521,625	)		(6,723	)			(528,348	)
Other income		636			—				636
Interest expense, net		(3,025	)						(3,025	)
Foreign currency loss		(101,854	)						(101,854	)
Loss before Provision for Income Taxes		(625,868	)		(6,723	)			(632,591	)
Provision for Income Taxes		—			—				—
Net Loss		(625,868	)		(6,723	)			(632,591	)
Net loss attributable to non-controlling interest		—							—
Net Loss Attributable to Controlling Interest	$	(625,868	)	$	(6,723	)		$	(632,591	)
Net Loss Per Share - Basic and Diluted	$	(0.01	)	$	(0.00	)		$	(0.01	)
Weighted Average Number of Shares Outstanding - Basic and Diluted		55,344,870			55,344,870				55,344,870
Other Comprehensive income
Foreign currency translation adjustment		55,418			—				55,418
Total Comprehensive loss		(570,450	)		(6,723	)			(577,173	)
Comprehensive loss attributable to non-controlling interest		—			—				—
Comprehensive Loss Attributable to Controlling Interest	$	(570,450	)	$	(6,723	)		$	(577,173	)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

Nine Months Ended September 30, 2016

	As Previously Reported			Adjustments			Notes	As Restated
Revenues
Airtime	$	1,830,238						$	1,830,238
Kiosk sales		165,751							165,751
Commissions on services		30,112							30,112
Other		147							147
		2,026,248			—				2,026,248
Cost of Goods Sold
Airtime		1,788,338							1,788,338
Kiosk sales		129,005							129,005
Depreciation		—			26,333		(B)		26,333
Other		25,614							25,614
		1,942,957			26,333				1,969,290
Gross Profit		83,291			(26,333	)			56,958
General and administrative		3,845,798							3,845,798
Depreciation and amortization		58,033			(820	)	(A)		57,214
Total Expense		3,903,831			(820	)			3,903,012
Loss from Operations		(3,820,540	)		(25,513	)			(3,846,054	)
Other income		4,651			—				4,651
Interest expense, net		(9,008	)						(9,008	)
Foreign currency loss		(216,699	)						(216,699	)
Loss before Provision for Income Taxes		(4,041,596	)		(25,513	)			(4,067,110	)
Provision for Income Taxes		—			—				—
Net Loss		(4,041,596	)		(25,513	)			(4,067,110	)
Net loss attributable to non-controlling interest		—							—
Net Loss Attributable to Controlling Interest	$	(4,041,596	)	$	(25,513	)		$	(4,067,110	)
Net Loss Per Share - Basic and Diluted	$	(0.08	)	$	(0.00	)		$	(0.08	)
Weighted Average Number of Shares Outstanding - Basic and Diluted		54,226,382			54,226,382				54,226,382
Other Comprehensive income
Foreign currency translation adjustment		147,577							147,577
Total Comprehensive loss		(3,894,019	)		(25,513	)			(3,919,533	)
Comprehensive loss attributable to non-controlling interest		—			—				—
Comprehensive Loss Attributable to Controlling Interest	$	(3,894,019	)	$	(25,513	)		$	(3,919,533	)

CONSOLIDATED STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2016

	As Previously Reported			Adjustments			Notes	As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss attributable to the company	$	(4,041,597	)	$	(25,513	)	(A)	$	(4,067,110	)
Less: loss attributable to non-controlling interest		—							—
Net loss		(4,041,597	)		(25,513	)			(4,067,110	)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation expense		25,246			58,301		(A) (C)		83,547
Amortization expense		32,788							32,788
Provision for bad debt		103,888							103,888
Equity based compensation charge		144,000							144,000
Shares issued for services		2,032,275							2,032,275
Non- cash investment in affiliates		(3,000	)						(3,000	)
Changes in Assets and Liabilities
Accounts receivable		79,130							79,130
Inventory		188,521							188,521
Recoverable IVA taxes and credits		59,376							59,376
Other current assets		(97,765	)						(97,765	)
Other assets		1,265							1,265
Accounts payable and accrued expenses		198,786							198,786
IVA and other taxes payable		(80,358	)						(80,358	)
Advances from customers		6,338							6,338
Interest accruals		9,009							9,009
CASH USED IN OPERATING ACTIVITIES		(1,342,098	)		32,788				(1,309,310	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Reverse merger net liabilities		(1,547	)						(1,547	)
Purchase of property and equipment		(453	)						(453	)
NET CASH USED IN INVESTING ACTIVITIES		(2,000	)		—				(2,000	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds on common stock issued		330,000							330,000
Proceeds from loans payable		60,000							60,000
NET CASH PROVIDED BY FINANCING ACTIVITIES		390,000			—				390,000
Effect of exchange rate changes on cash and cash equivalents		147,577			32,788		(C)		114,789
NET DECREASE IN CASH		(806,521	)						(806,521	)
CASH AT BEGINNING OF PERIOD		832,159							832,159
CASH AT END OF PERIOD	$	25,638		$	—			$	25,638
CASH PAID FOR INTEREST AND TAXES:
Cash paid for income taxes	$	—						$	—
Cash paid for interest	$	—						$	—

NOTES

A. To correct an error in classifying kiosks acquired in 2015 as inventory and available for sale, to property and equipment, along with the recording of related accumulated depreciation and depreciation expense.

B.	To reclassify depreciation of kiosks utilized to generate revenues to cost of goods sold
C.	Foreign currency translation difference arising on depreciation calculated at average rates compared to the balance sheet depreciation calculated at closing rates.