Restated Financial Statements

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Restated Financial Statements

NOTE 5 – RESTATED FINANCIAL STATEMENTS

The condensed consolidated financial statements for the nine months ended September 30, 2013 have been amended for failure to record the acquisition of marketable securities and the related notes payable, interest, and the resulting unrealized gains and losses. An analysis of the restated September 30, 2013 Statement of Operations is as follows.

	For the Three Months Ended									For the Nine Months Ended
	September 30, 2013									September 30, 2013
	As Reported			Adjustment			As Restated			As Reported			Adjustment			As Restated
Revenues	$	364,924			—		$	364,924		$	968,992			—		$	968,992
Cost of revenues		130,690			—			130,690			312,312			—			312,312
Gross Margin		234,234			—			234,234			656,680			—			656,680
Operating Expenses:
Labor and related expenses		85,140			—			85,140			248,793			—			248,793
Rent		55,006			—			55,006			163,321			—			163,321
Depreciation		28,953			—			28,953			54,199			—			54,199
Other general and administrative		61,667			—			61,667			244,697			—			244,697
Total Operating Expenses		230,766			—			230,766			711,010			—			711,010
Net Operating Loss		3,468			—			3,468			(54,330	)		—			(54,330	)
Other Income (Expense):
Interest income		107			—			107			475			—			475
Interest expense		(30,832	)		(116,335	)1		(147,167	)		(96,427	)		(291,796	)1		(388,223	)
Unrealized gain (loss) on trading securities		(983,758	)		126,657	2		(857,101	)		1,023,002			(2,020,651	)2		(997,649	)
Gain (loss) on sale of marketable securities		1,943,004			(1,475,185	)2		467,819			3,681,075			(2,716,958	)2		964,117
Net Other Income (Expense)		928,521			(1,464,863	)		(536,342	)		4,608,125			(5,029,405	)		(421,280	)
Net Income (Loss)	$	931,989			(1,464,863	)	$	(532,874	)	$	4,553,795			(5,029,405	)	$	(475,610	)
Other Comprehensive Income (Loss):
Unrealized gain (loss) on
available-for-sale securities		154,099			2,352,341	2		2,506,440			163,579			4,872,401	2		5,035,980
Comprehensive Income	$	1,086,088			887,478		$	1,973,566		$	4,717,374			(157,004	)	$	4,560,370
Income Per Common Share:	$	0.01			—		$	(0.00	)	$	0.03			—		$	(0.00	)
Income Per Common Share, Diluted:	$	0.01			—		$	(0.00	)	$	0.03			—		$	(0.00	)
Weighted Average Common Shares:
Basic		136,627,710			—			136,627,710			136,627,710			—			136,627,710
Diluted		140,199,139			—			136,627,710			140,199,139			—			136,627,710

1 – In 2012 the Company acquired 3,500,000 shares of Plandai, Inc. valued at the FMV of $1,575,000 and 3,500,000 shares of Inscor, Inc. valued at the FMV of $3,675,000 from Berkshire Capital Management. The shares were exchanged for two demand notes, bearing an interest rate of 6% per annum.

2 – The change is due to the mark to market of the new available-for-sale securities.