CORRECTIONS OF IMMATERIAL ERRORS

12 Months Ended

Dec. 31, 2014

CORRECTIONS OF IMMATERIAL ERRORS [Abstract]

CORRECTIONS OF IMMATERIAL ERRORS

NOTE 3 – CORRECTIONS OF IMMATERIAL ERRORS

The Company identified the following immaterial errors in its previously issued audited financial statements as of and for the year ended December 31, 2013:

· The provision for income taxes ($48,241), deferred tax asset ($146,240) and accumulated deficit ($146,240) were understated due to the non-deductibility of a portion of stock-based compensation for tax purposes.

The errors in the accounting for the above items resulted in an understatement of provision for income taxes of $48,241 and an overstatement of net income of $48,241 for the year ended December 31, 2013. The cumulative adjustments to correct the errors in the financial statements for all periods prior to January 1, 2013 have been recorded as adjustments to accumulated deficit at December 31, 2012. The cumulative effect of those adjustments increased previously reported accumulated deficit by $97,999.

The following tables present the summary impacts of the correction of immaterial errors to our previously reported accumulated deficit at December 31, 2012 and net income for the year ended December 31, 2013:

Accumulated deficit at December 31, 2012 – as previously reported	$	(24,945,949	)
Adjustment		(97,999	)
Accumulated deficit at January 1, 2013 – as corrected	$	(25,043,948	)
	For the Year Ended December 31, 2013
Net income – as previously reported	$	341,813
Adjustment		(48,241	)
Net income – as corrected	$	293,572

The Company reviewed the accounting errors utilizing SEC Staff Accounting Bulletin No. 99, “Materiality” (“SAB 99”) and SEC Staff Accounting Bulletin No. 108, “Effects of Prior Year Misstatements on Current Financial Statements” (“SAB 108”) and determined the impact of the errors to be immaterial to any prior period’s presentation. The accompanying 2013 audited financial statements reflect the corrections of the aforementioned immaterial errors.