NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (RESTATED): Restatement of Previously Issued Financial Statements (Policies)

12 Months Ended

Dec. 31, 2021

Policies

Restatement of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

Subsequent to the Company’s filing of its Annual Report on Form 10-K for the year ended December 31, 2021, with the Securities and Exchange Commission on April 14, 2022, the Company performed an evaluation of its accounting in connection with the employment agreement entered into between Mycotopia and Ben Kaplan, the Company’s CEO. Management determined that the Original Form 10-K does not give effect to $288,000 cash compensation and the issuance of a warrant (the “Warrant”) to purchase shares 5% of the fully diluted common stock outstanding of Mycotopia. The cash compensation and Warrant was granted to the Chief Executive Officer of the Company pursuant to his consulting agreement (the “Consulting Agreement”) with Mycotopia entered into on November 17, 2021. Management concluded on April 25, 2023 that it has identified errors in its calculation of compensation in relation to the Consulting Agreement. Accordingly, the Company restates its consolidated financial statements in this Form 10-K/A as outlined further below and in Note 4 - Related Party Transactions.

The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported consolidated balance sheets for the year ended December 31, 2021, and includes an increase to accounts payable of $288,000, an increase to additional paid-in capital of $2,029,861, and an increase to accumulated deficit of $2,317,861.

	As Reported		Reclass		Adjustment		As Restated
Accounts payable	$	171,031	$	(50,000)	$	-	$	121,031
Accrued expenses – related party	$	-	$	50,000	$	288,000	$	338,000
Total current liabilities	$	306,370	$	-	$	288,000	$	594,370
Total liabilities	$	929,995	$	-	$	288,000	$	1,217,995
Additional paid-in capital	$	3,175,959	$	-	$	2,029,861	$	5,205,820
Accumulated deficit	$	(2,849,904)	$	-	$	(2,317,861)	$	(5,167,765)
Total stockholders’ equity	$	340,021	$	-	$	(288,000)	$	52,021

The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported consolidated statements of operations for the year ended December 31, 2021, and includes an increase to general and administrative expense, total operating expenses, loss from operations and net loss of $2,317,861 and an increase  to basic and diluted net loss per share of $0.17.

	As Reported		Adjustment		As Restated
General and administrative	$	2,669,109	$	2,317,861	$	4,986,970
Total operating expenses	$	2,669,109	$	2,317,861	$	4,986,970
Loss from operations	$	(2,669,109)	$	(2,317,861)	$	(4,986,970)
Net loss before provision from income taxes	$	(2,820,730)	$	(2,317,861)	$	(5,138,591)
Net loss	$	(2,820,730)	$	(2,317,861)	$	(5,138,591)
Basic and diluted loss per share	$	(0.21)	$	(0.17)	$	(0.38)

Additionally, please refer to Note 4 – Related Party Transactions, where the Company has included additional disclosure related to the CEO’s consulting agreement with the Company.