Restatements of Previously Issued Condensed Consolidated Interim Financial Statements (Unaudited)

3 Months Ended

Mar. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Restatements of Previously Issued Condensed Consolidated Interim Financial Statements (Unaudited)

The Company, while undergoing the audit of its consolidated financial statements for the year ended December 31, 2018, commenced an evaluation of its accounting in connection with the Merger for i) lock-up agreements entered into with the holders of the Notes (see Note 7), and ii) shares of common stock issued to Alpha Capital Anstalt and Palladium Capital Advisors (see Note 10, Service Based Common Stock). These agreements, which management originally deemed to be primarily equity in nature and would not be recognized as compensatory, were recorded as a debit and credit to additional paid in capital. On March 29, 2019, under the authority of the board of directors, the Company determined that these agreements should have been recorded as compensatory in nature which gives rise to an adjustment in the amount of $1,119,294 for the periods ended March 31, 2018, June 30, 2018, and September 30, 2018. Accordingly, the Company will restate those condensed consolidated interim financial statements and include the required disclosures.

The following tables sets forth the effects of the adjustments on affected items within the Company’s previously reported Condensed Consolidated Interim Balance Sheet at March 31, 2018, had the adjustments been made in the corresponding quarter and includes a reclassification adjustment for the stock split of $650:

	March 31, 2018
	As reported			Adjustment			As restated
Additional paid in capital	$	25,080,301		$	1,119,994		$	26,200,245
Accumulated deficit	$	(12,966,338	)	$	(1,119,294	)	$	(14,085,632	)

The following tables sets forth the effects of the adjustments on affected items within the Company’s previously reported Condensed Consolidated Interim Statement of Operations for the three months ended March 31, 2018, had the adjustments been made in the appropriate quarter:

	Three Months Ended March 31, 2018
	As reported			Adjustment			As Restated			Discontinued Operations			As Restated
Selling, general and administrative expense	$	3,067,308		$	447,150		$	3,514,458		$	(603,661	)	$	2,910,797
Total operating expenses	$	3,203,658		$	447,150		$	3,650,808		$	(546,618	)	$	3,104,190
Operating loss	$	(2,951,188	)	$	(447,150	)	$	(3,398,338	)	$	(309,558	)	$	(3,707,896	)
Interest income (expense), net	$	(410,253	)	$	(672,144	)	$	(1,082,397	)	$	180		$	(1,082,217	)
Net loss	$	(3,361,441	)	$	(1,119,294	)	$	(4,480,735	)	$	-		$	(4,480,735	)
Income from discontinued operations	$	-		$	-		$	-		$	309,378		$	309,378
Net loss per common shares, basic and diluted	$	(3.33	)	$	(1.11	)	$	(4.44	)	$	-		$	(4.44	)