RESTATEMENT OF FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Restatement Of Financial Statements

Disclosure of adjustment to financial statements of operation

Below are adjustments to financial statements for the three and six months ended June 30, 2017:

	Three Months						Three Months
	June 30, 2017						June 30, 2017
	(Original						(Corrected
	Amount)			(Adjustments)			Amount)
Revenue	$	41,000			-		$	41,000
Operating costs:
Direct cost of revenue		-			65,000	(A)		65,000
General and administrative expenses		367,000			(57,000	)(B)		310,000
Research and development		(658,000	)		(11,000	)(A)(B)		(669,000	)
Total operating costs and expenses		(291,000	)					(294,000	)
Loss from operations before other income and expenses		332,000						335,000
Other income and (expenses):
Gain from change in accounting treatment of investment		8,758,000			(8,758,000	)(B)		-
Loss attributed to noncontrolling interest		(330,000	)		330,000	(B)		-
Gain/(loss) on forgiveness of debt		(6,739,000	)		6,739,000	(B)		-
(Loss) on fair value adjustment of investments		-			203,000	(B)		203,000
Gain on deconsolidation of subsidiary		-			7,940,000	(B)		7,940,000
Interest and other expenses		96,000			-			96,000
NET INCOME (LOSS) INCLUDING NONCONTROLLABLE INTEREST		2,117,000						8,574,000
Net (loss) attributable to noncontrolling interest		-			472,000	(B)		472,000
NET INCOME (LOSS) ATTRIBUTABLE TO MANHATTAN SCIENTIFICS, INC.		2,117,000						9,046,000
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE:
Weighted average number of common shares outstanding (Basic)		533,781,064						533,781,064
Basic income (loss) per common share	$	0.00					$	0.02
Weighted average number of common shares outstanding (Diluted)		581,036,064						581,036,064
Diluted income (loss) per common share	$	0.00					$	0.02

(A) Reclassification from research and development to direct cost of revenue

(B) Deconsolidation of Imagion Biosystems, Inc. and recording investment at fair value

	Six Months						Six Months
	June 30, 2017						June 30, 2017
	(Original						(Corrected
	Amount)			(Adjustments)			Amount)
Revenue	$	83,000					$	83,000
Operating costs:
Direct cost of revenue		-			127,000	(A)		127,000
General and administrative expenses		1,143,000			(119,000	)(A)		1,024,000
Research and development		166,000			(11,000	)(A)(B)		155,000
Total operating costs and expenses		1,309,000						1,306,000
Loss from operations before other income and expenses		(1,226,000	)					(1,223,000	)
Other income and (expenses):
Gain from change in accounting treatment of investment		8,758,000			(8,758,000	)(B)		-
Loss attributed to noncontrolling interest		(330,000	)		330,000	(B)		-
Gain/(loss) on forgiveness of debt		(6,739,000	)		6,739,000	(B)		-
(Loss) on fair value adjustment of investments		-			203,000	(B)		203,000
Gain on deconsolidation of subsidiary		-			7,940,000	(B)		7,940,000
Interest and other expenses		-			-			-
NET INCOME (LOSS) INCLUDING NONCONTROLLABLE INTEREST		463,000						6,920,000
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE:
Weighted average number of common shares outstanding (Basic)		533,781,064						533,781,064
Basic income (loss) per common share	$	0.00					$	0.01
Weighted average number of common shares outstanding (Diluted)		581,036,064						581,036,064
Diluted income (loss) per common share	$	0.00					$	0.01

(A) Reclassification from general and admininstrative and research and development to direct cost of revenue

(B) Deconsolidation of Imagion Biosystems, Inc. and recording investment at fair value

Disclosure of adjustment to financial statements of cash flow

	Six Months June 30, 2017						Six Months June 30, 2017
	(Original						(Corrected
	Amount)			(Adjustments)			Amount)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) attributable to Manhattan Scientifics, Inc.	$	463,000			6,457,000	(A)	$	6,920,000
Adjustments to reconcile net income/(loss) to net cash provided by (used in) operating activities:
Stock options issued/vested for services		-			-			-
Depreciation and amortization		428,000			-			428,000
Treasury stock cancelled and returned to authorized		-			-			-
(Gain)/Loss on forgiveness of debt		6,739,000			(6,739,000	)(A)		-
Gain on FV of Investments		-			(203,000	)(A)		(203,000	)
Gain on deconsolidation of subsidiary		-			(7,940,000	)(A)		(7,940,000	)
Changes in:
Accounts receivable		30,000			-			30,000
Prepaid expenses		(3,000	)		-			(3,000	)
Accounts payable and accrued expenses		(40,000	)		340,000	(A)		300,000
Accrued interest and expenses, related parties		(1,000	)		-			(1,000	)
Net cash provided by/(used in) operating activities		7,616,000						(469,000	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Adjustment for noncontrolling interest		(8,758,000	)		8,758,000	(A)		-
Reduction of assets due to deconsolidation of noncontrolling interest		696,000			(696,000	)(A)		-
Purchase of fixed assets		(23,000	)		23,000	(A)		-
Net cash used in investing activities		(8,085,000	)					-
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from note payable - related party		-			-			-
Payments on notes payable other		-			-			-
Proceeds from issuance of common stock		-			-			-
Repurchase of common stock for treasury		-			-			-
Net cash (used in)/provided by financing activities		-						-
NET INCREASE IN CASH AND CASH EQUIVALENTS		(469,000	)					(469,000	)
Cash and cash equivalents, beginning of year		1,068,000						1,068,000
CASH AND CASH EQUIVALENTS, END OF YEAR	$	599,000					$	599,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	$	-					$	-
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Conversion of debt to preferred stock by shareholder	$	-					$	-
Loss on forgiveness of debt	$	-					$	-
Gain in change in accounting treatment	$	-					$	(7,940,000	)

(A) Deconsolidation of Imagion Biosystems, Inc. and recording investment at fair value