RESTATEMENT

3 Months Ended

Mar. 31, 2017

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT

NOTE 9 – RESTATEMENT

The Company is restating its balance sheet as of March 31, 2017, and the income statement, statement of cash flow, and statement of stockholder’s equity (deficit) for the period ended March 31, 2017. The restatement shows the previously filed financial statements, the restatement adjustment and as restated columns for the balance sheet as of March 31, 2017, and the income statement, statement of cash flow, and statement of stockholder’s equity (deficit) for the period ended March 31, 2017.

On February 20, 2017, the Company foreclosed on collateral securing a note owed to the Company by Advanced Tactical Armament Concepts, LLC, a Nevada Limited Liability Company. The fair market value of the foreclosed assets was less than the balance due on the note. The difference was originally recorded as goodwill and the Company has now revised that treatment to record the uncollectible difference as a loss.

The following table represents the balance sheet as previously reported, restatement adjustment, and as restated as of March 31, 2017:

				Restatement
	As Previously Filed			Adjustment			As Restated
	(Unaudited)						(Unaudited)
ASSETS
Current Assets:
Cash	$	100,135					$	100,135
Accounts receivable		16,419						16,419
Other receivables		23,276						23,276
Vendor notes receivable, net of allowance for doubtful		-						-
collection of $360,993		-						-
Vendor advances receivable		-						-
Inventories, at lower cost or market, principally average cost method		1,493,872						1,493,872
Prepaid expense		170,834						170,834
Total Current Assets		1,804,536			-			1,804,536
Equipment, net of accumulated depreciation of $13,500		218,739			346,843			565,582
Other Assets:		-						-
Licensing agreement, net of $6,250 of accumulated amortization in 2017		118,750						118,750
Goodwill		1,770,221			(1,770,221	)		-
TOTAL ASSETS	$	3,912,246		$	(1,423,378	)	$	2,488,868
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	331,790					$	331,790
Accounts payable - related parties		66,383						66,383
Accrued liabilities		86,785						86,785
Convertible note payable, net of debt discount of $356,250 in 2016		1,875,000						1,875,000
Note payable - related party		598,000						598,000
Insurance premium note payable		101,433						101,433
Total Current Liabilities		3,059,391			-			3,059,391
Stockholders' Equity (Deficit):
Common Stock, $0.001 par value, 100,000,000 shares authorized
17,976,175 and 15,754,000 shares issued and outstanding at
March 31, 2017 and  December 31, 2016, respectively		17,976						17,976
Additional paid-in capital		2,087,333						2,087,333
Stock subscription receivable		-						-
Accumulated (Deficit)		(1,252,454	)		(1,423,378	)		(2,675,832	)
Total Stockholders' Equity (Deficit)		852,855			(1,423,378	)		(570,523	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	3,912,246		$	(1,423,378	)	$	2,488,868

The following table represents the income statement as previously reported, restatement adjustment, and as restated as of March 31, 2017:

				Restatement
	As Previously Filed			Adjustment			As Restated
Gross Sales	$	653,784					$	653,784
Customer incentives, discounts, returns, and allowances		-						-
Net sales		653,784			-			653,784
Cost of Goods Sold, includes depreciation and amortization of $18,920
for the three months ended March 31, 2017		466,433			8,457			474,890
Gross Margin		187,351			(8,457	)		178,894
Operating Expenses
Selling and marketing		116,833						116,833
Corporate general and administrative		578,402						578,402
Employee salaries and related expenses		167,987						167,987
Depreciation expense		379						379
Total operating expenses		863,601			-			863,601
Loss from Operations		(676,250	)		(8,457	)		(684,707	)
Other Income (Expenses)
Loss on vendor notes receivable collectibility		-			1,414,921			1,414,921
Interest expense		421,180						421,180
Profit (Loss) before Income Taxes		(1,097,430	)		(1,423,378	)		(2,520,808	)
Provision for Income Taxes
Net Profit (Loss)	$	(1,097,430	)	$	(1,423,378	)	$	(2,520,808	)
Loss per share
Basic and fully diluted:
Weighted average number of shares outstanding		17,118,431			17,118,431			17,118,431
Loss per share	$	(0.06	)	$	(0.09	)	$	(0.15	)

The following table represents the statement of stockholder’s equity (deficit) as previously reported, and as restated as of March 31, 2017:

	Common Shares				Additional Paid-In			Preferred		Subscription			Accumulated
	Number		Par Value		Capital			Shares		Receivable			(Deficit)			Total
Balance as of January 1, 2017		15,754,000	$	15,754	$	799,180				$	(167,500	)	$	(155,024	)	$	492,410
Reverse merger and recapitalization		601,375		601		(601	)										0
Subscriptions collected											167,500						167,500
Common stock issued for founder shares		625,000		625		-											625
Common stock issued for cash @ $1.25 per share		946,200		946		1,181,804											1,182,750
Organizational and fund raising costs		-		-		(17,000	)										(17,000	)
Common stock issued for payment of legal fees @ $2.50 per share		49,600		50		123,950											124,000
Net loss for period ended March 31, 2017 (Restated)		-		-		-		-			-			(2,520,808	)		(2,520,808	)
Balance as of March 31, 2017 (Restated)		17,976,175	$	17,976	$	2,087,333		$	-	$	-		$	(2,675,832	)	$	(570,523	)

The following table represents the statement of cash flow as previously reported, restatement adjustment, and as restated as of March 31, 2017:

				Restatement
	As Previously Filed			Adjustment			As Restated
Cash flows from operating activities:
Net (Loss)	$	(1,097,430	)	$	(1,423,378	)	$		(2,520,808	)
Adjustments to reconcile Net (Loss) to Net Cash provided by operations:
Debt discount amortization		356,250			-				356,250
Depreciation and amortization		11,343			8,457				19,800
Common stock issued for legal fees		124,000			-				124,000
Uncollectible vendor notes receivable		-			1,414,921				1,414,921
Changes in Current Assets and Liabilities
Vendor advances receivable		186,486			-				186,486
Accounts receivable		4,546			-				4,546
Other receivables		(2,465	)		-				(2,465	)
Inventories		(765,320	)		-				(765,320	)
Prepaid expenses		9,927			-				9,927
Accounts payable		252,984			-				252,984
Accounts payable		66,383			-				66,383
Accrued liabilities		86,785			-				86,785
Net cash used in operating activities		(766,511	)						(766,511	)
Cash flows from investing activities
Purchase of equipment		(36,017	)		-				(36,017	)
Net cash used in investing activities		(36,017	)		-				(36,017	)
Cash flow from financing activities
Note payment - related party		(362,000	)		-				(362,000	)
Insurance premium note payments		(79,328	)		-				(79,328	)
Sale of common stock		1,350,875			-				1,350,875
Organization and fundraising costs		(17,000	)		-				(17,000	)
Net cash provided by financing activities		892,547			-				892,547
Net increase in cash		90,019			-				90,019
Cash, beginning of period		10,116			-				10,116
Cash, end of period	$	100,135		$	-		$		100,135
Supplemental cash flow disclosures
Cash paid during the period for -
Interest	$	1,297		$	-			$	1,297
Income taxes	$	-		$	-			$	-

Non-cash investing and financing activities:
Vendor note receivable foreclosure -
Vendor notes receivable	$	2,585,000		$	(1,414,921	)	$	1,170,079
Vendor advances receivable		(96,552	)					(96,552	)
Accounts receivable		(20,965	)					(20,965	)
Inventories		(509,447	)					(509,447	)
Equipment		(187,815	)		(355,300	)		(543,115	)
Goodwill		(1,770,221	)		1,770,221			-
Other receivables		(20,811	)					(20,811	)
Accounts payable		20,811						20,811
Insurance premium note payable		180,761						180,761
Prepaid expenses		(180,761	)					(180,761	)
Common stock		601						601
Additional paid-in-capital		(601	)					(601	)
	$	-		$	-		$	-