XML 50 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
(13) Restatement of Consolidated Financial Statements
 12 Months Ended
Dec. 31, 2017
Notes  
(13) Restatement of Consolidated Financial Statements

(13) Restatement of Consolidated Financial Statements

On April 2, 2018, the Company was notified by our independent auditors that their opinion was inadvertently filed without their consent the statement of cash flow was incorrectly stated for the period ending December 31, 2017. The Company concluded that in addition the Company’s previously filed financial statements for December 31, 2017, should no longer be relied upon. As such, the Company is restating in this Annual Report its financial statements for December 31, 2017.

Impact of the Restatement – December 31, 2017

 

Year Ended December 31, 2017

 

 

 

As Previously

 

 

 

 

 

Reported

 

Adjustment

 

As Restated

Statement of Cash Flow 

Cash flows from operating activities

Net loss

 

$

(7,385,372)

 

 $                 -

 

 

 $         (7,385,372)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Amortization of debt discount interest expense on notes payable

 

 

37,433

 

        (10,614)

 

 

                   48,047

Conversion of notes payable and accrued interest to capital

 

 

672,952

 

        672,952

 

 

                           -  

Common stock issued for services

 

 

280,150

 

                  -  

 

 

                 280,150

Common stock issued for compensation

 

 

3,050,000

 

                  -  

 

 

              3,050,000

Derivative expense related to convertible note payable

 

 

1,787,063

 

        717,741

 

 

              1,069,322

Loss on change in fair value of derivative liability

 

 

                 -

 

      (707,127)

 

 

                 707,127

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

273,844

 

        (77,436)

 

 

                 351,280

Unearned revenue

 

 

3,042

 

                  -  

 

 

                     3,042

Loss on impairment of assets

 

 

629,270

 

                  -  

 

 

                 629,270

Deposits

 

 

(235.00)

 

                  -  

 

 

                      (235)

Net cash used in operating activities

 

 

(651,853)

 

        595,516

 

 

            (1,247,369)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

               -  

 

                  -  

 

 

                           -  

Net cash used in investing activities

 

 

          -  

 

                  -  

 

 

                   -  

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Repayments on convertible notes payable

 

 

(572,500)

 

      (572,500)

 

 

                           -  

Proceeds from convertible notes payable

 

 

369,900

 

                  -  

 

 

                 369,900

Repayments on related party notes payable

 

 

(53,344)

 

        (23,016)

 

 

                 (30,328)

Proceeds from related party notes payable

 

 

83,672

 

                  -  

 

 

                   83,672

Proceeds from stock and warrant purchases

 

 

498,940

 

                  -  

 

 

                 498,940

Proceeds from exercise of warrant

 

 

180,000

 

                  -  

 

 

                 180,000

Net cash provided by financing activities

 

 

506,668

 

      (595,516)

 

 

              1,102,184

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

(145,186)

 

                  -  

 

 

               (145,186)

Cash, beginning of the period

 

 

202,169

 

                  -  

 

 

                 202,169

Cash, end of the period

 

$

56,983

 

                  -  

 

$

                   56,983

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Income taxes paid

 

$

               -  

 

                  -  

 

$

                           -  

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing transactions:

 

 

 

 

 

Conversion of related party debt to capital

 

$

               -  

 

                    -

 

$

                             -

Conversion of notes payable and accrued interest to capital

 

 

672,952

 

                  -  

 

 

                 672,952

Debt discount on convertible notes

 

 

324,121

 

        (48,047)

 

 

                 372,168