IMMATERIAL CORRECTION OF AN ERROR IN PRIOR PERIODS

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Note 2 - IMMATERIAL CORRECTION OF AN ERROR IN PRIOR PERIODS

During the year ended December 31, 2015, the Company identified errors related to an understatement of warrants modification expenses for the modification of the 6,909,000 common share purchase warrants to extend their maturity date to September 7, 2017 from the quarterly period ended September 30, 2014 through September 30, 2015. In accordance with Financial Accounting Standards Board Accounting Standards Codification 250, Accounting Changes and Error Corrections, we evaluated the materiality of the errors from quantitative and qualitative perspectives, and concluded that the errors were immaterial to the Company's prior period interim and annual consolidated financial statements. Since these revisions were not material to any prior period interim or annual financial statements, no amendments to previously filed interim or annual periodic reports are required. Consequently, the Company has adjusted for these errors by revising its historical financial statements presented herein. Regarding the 2014 extension of warrants terms, the Company recognized the cumulative effect of the error on periods prior to those that are presented herein by increasing warrants modification expense by$23,963, increasing additional paid-in capital and reducing accumulated deficit by $23,963 for the quarter ended September 30, 2014, for the fiscal year ended December 31, 2014, and as of the beginning of fiscal year 2015. Regarding the 2015 extension of warrants terms, the Company recognized the warrants modification expense of $14,684 by increasing additional paid-in capital and reducing accumulated deficit by $14,684 for the quarter ended September 30, 2015.

The following table presents the effects of the immaterial error correction on the balance sheet for the periods and year indicated:

Impact of the Restatement

	As of September 30, 2014
		As Previously Reported			Adjustment			As Adjusted
Balance Sheet Data (unaudited):
Additional paid-in capital		$	2,564,655			23,963		$	2,588,618
Accumulated deficit		$	(1,470,804	)		(23,963	)	$	(1,494,767	)
Total stockholders' equity		$	1,077,543			-		$	1,077,543

	As of December 31, 2014
	As Previously Reported			Adjustment			As Adjusted
Balance Sheet Data:
Additional paid-in capital	$	2,562,160			23,963		$	2,586,123
Accumulated deficit	$	(5,123,747	)		(23,963	)	$	(5,147,710	)
Total stockholders' equity	$	1,050,721			-		$	1,050,721
	As of March 31, 2015
	As Previously Reported			Adjustment			As Adjusted
Balance Sheet Data (unaudited):
Additional paid-in capital	$	2,562,160			23,963		$	2,586,123
Accumulated deficit	$	(5,147,563	)		(23,963	)	$	(5,171,526	)
Total stockholders' equity	$	1,026,905			-		$	1,026,905
	As of June 30, 2015
	As Previously Reported			Adjustment			As Adjusted
Balance Sheet Data (unaudited):
Additional paid-in capital	$	2,562,160			23,963		$	2,586,123
Accumulated deficit	$	(5,166,084	)		(23,963	)	$	(5,190,047	)
Total stockholders' equity	$	1,008,384			-		$	1,008,384

	As of September 30, 2015
		As Previously Reported			Adjustment			As Adjusted
Balance Sheet Data (unaudited):
Additional paid-in capital		$	2,562,160			38,647		$	2,600,807
Accumulated deficit		$	(5,182,903	)		(38,647	)	$	(5,221,550	)
Total stockholders' equity		$	991,565			-		$	991,565

The following tables present the effects of the immaterial error correction on the statements of income for the periods and year indicated:

	Three Months Ended September 30, 2014
	As Previously Reported			Adjustment				As Adjusted
Statement of Operations Data (unaudited):
Warrants modification expense	$				(23,963	)		$	(23,963	)
Net loss	$	(46,057	)		(23,963	)		$	(70,020	)
Net loss per share, basic and diluted	$	(0.00	)					$	(0.00	)
	Nine Months Ended September 30, 2014
	As Previously Reported			Adjustment				As Adjusted
Statement of Operations Data (unaudited):
Warrants modification expense	$				(23,963	)	$		(23,963	)
Net loss	$	(131,245	)		(23,963	)		$	(155,208	)
Net loss per share, basic and diluted	$	(0.01	)					$	(0.01	)
	Year Ended December 31, 2014
	As Previously Reported			Adjustment				As Adjusted
Statement of Operations Data:
Warrants modification expense	$	-			(23,963	)		$	(23,963	)
Net loss	$	(158,067	)		(23,963	)		$	(182,030	)
Net loss per share, basic and diluted	$	(0.01	)		-			$	(0.01	)
	Three Months Ended September 30, 2015
	As Previously Reported			Adjustment				As Adjusted
Statement of Operations Data (unaudited):
Warrants modification expense	$	-			(14,684	)		$	(14,684	)
Net loss	$	(16,819	)		(14,684	)		$	(31,503	)
Net loss per share, basic and diluted	$	(0.00	)		-			$	(0.00	)
	Nine Months Ended September 30, 2015
	As Previously Reported			Adjustment				As Adjusted
Statement of Operations Data (unaudited):
Warrants modification expense	$	-			(14,684	)		$	(14,684	)
Net loss	$	(59,156	)		(14,684	)		$	(73,840	)
Net loss per share, basic and diluted	$	(0.00	)		-			$	(0.00	)