16. Restatement of Prior Period Financials (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Changes and Error Corrections [Abstract]

Effect of Corrections

Effect of Corrections	As Previously						As
	Reported		Adjustments				Restated
Balance Sheet as of December 31, 2013
Convertible notes payable (net of debt discount) – current portion	$	2,930	$	2,426		(1)	$	5,356
Total current liabilities		46,142		2,426		(1)		48,568
Convertible notes payable (net of debt discount), less current portion		341,907		268,043		(1)		609,950
Total long-term liabilities		343,157		268,043		(1)		611,200
Common stock		1,204,096		(270,469	)	(2)		933,627
Total stockholders’ equity		493,134		(270,469	)	(2)		222,665
Statement of Changes in Stockholders’ Equity for the Period from June 5, 2013 (Inception) to December 31, 2013
Discount on convertible notes December 27, 2013		289,811		(270,469	)	(2)		19,342
Common stock		1,204,096		(270,469	)	(2)		933,627
Total stockholders’ equity		493,134		(270,469	)	(2)		222,665

Effect of Corrections	As Previously
	Reported				Adjustments				As Restated
Balance Sheet as of March 31, 2014:
Deferred financing costs, net		$	115,000		$	(6,000	)	(3)	$	109,000
Total Assets			2,532,925			(6,000	)	(8)		2,526,925
Derivative liability			-			1,147,640		(5)		1,147,640
Accounts payable and accrued expenses			32,813			(6,000	)	(3)		26,813
Total current liabilities			38,740			1,141,640		(8)		1,180,380
Convertible notes payable, net			402,595			254,888		(1)		657,483
Total long-term liabilities			403,845			254,888		(8)		658,733
Total liabilities			442,585			1,396,528		(8)		1,839,113
Common stock			3,375,165			(770,469	)	(11)		2,604,696
Deficit accumulated during the development stage			(1,284,825	)		(632,059	)	(10)		(1,916,884	)
Total Stockholders' Equity			2,090,340			(1,402,528	)	(8)		687,812
Total Liabilities & Stockholders' Equity			2,532,925			(6,000	)	(8)		2,526,925
Statement of Operations for the three months ended March 31, 2014:
Amortization of debt discount			(320,422	)		15,581		(4)		(304,841	)
Gain (loss) on derivative liability, net			-			(647,640	)	(8)		(647,640	)
Total other expense			(369,696	)		(632,059	)	(8)		(1,001,755	)
Net loss			(573,863	)		(632,059	)	(8)		(1,205,922	)
Net loss per share - basic and diluted			(0.04	)		(0.05	)	(9)		(0.09	)
Statement of Operations for the period from Inception (June 5, 2013) to March 31, 2014
Amortization of debt discount			(321,216	)		15,581		(4)		(305,635	)
Gain (loss) on derivative liability, net			-			(647,640	)	(6)		(647,640	)
Total other expense			(371,361	)		(632,059	)	(8)		(1,003,420	)
Loss from continuing operations			(1,286,782	)		(632,059	)	(8)		(1,918,841	)
Net loss			(1,284,825	)		(632,059	)	(8)		(1,916,884	)
Statement of Cash Flows for the three months ended March 31, 2014:
Net loss			(573,863	)		(632,059	)	(8)		(1,205,922	)
Amortization of debt discount			320,422			(15,581	)	(4)		304,841
Amortization of deferred financing costs			-			6,000		(3)		6,000
(Gain) loss on derivative liability, net			-			647,640		(6)		647,640
Increase/ (decrease) in accounts payable and accrued expenses			(11,193	)		(5,206	)	(3)		(16,399	)
Net cash provided by (used in) operating activities – continuing operations			(330,777	)		794		(8)		(329,983	)
Net cash provided by (used in) operating activities			(330,777	)		794		(8)		(329,983	)
Principal repayment on convertible notes payable			(943	)		(794	)	(4)		(1,737	)
Statement of Cash Flows for the period from Inception (June 5, 2013) to March 31, 2014:
Net loss			(1,284,825	)		(632,059	)	(8)		(1,916,884	)
Amortization of debt discount			321,216			(15,581	)	(4)		305,635
Amortization of deferred financing costs			-			6,000		(3)		6,000
(Gain) loss on derivative liability, net			-			647,640		(6)		647,640
Increase/ (decrease) in accounts payable and accrued expenses			32,019			(5,206	)	(3)		26,813
Net cash provided by (used in) operating activities – continuing operations			(809,977	)		794		(8)		(809,183	)
Net cash provided by (used in) operating activities			(819,848	)		794		(8)		(819,054	)
Principal repayment on convertible notes payable			(943	)		(794	)	(4)		(1,737	)
Statement of Changes in Stockholders' Equity for the period from Inception (June 5, 2013) to March 31, 2014:
Discount on convertible notes issued December 27, 2013			289,811			(270,469	)	(2)		19,342
Common stock at December 31 , 2013			1,204,096			(270,469	)	(8)		933,627
Warrants sold to Full Circle January, 2014 in financing transaction			500,000			(500,000	)	(7)		-
Common stock at March 31, 2014			3,375,165			(770,469	)	(8)		2,604,696
Net loss for three months ended March 31, 2014			(573,863	)		(632,059	)	(8)		(1,205,922	)
Total Stockholders' Equity			2,090,340			(1,402,528	)	(8)		687,812

(1)   To reclassify debt discount, net of amortization, previously recognized as a beneficial conversion feature to current and noncurrent convertible notes payable from discount on convertible notes and common stock.

(2)   To reclassify debt discount, net of amortization, previously recognized as a beneficial conversion feature from discount on convertible notes and common stock to current and noncurrent convertible notes payable.

(3)   To present amortization expense recognized on deferred financing costs as its own line item in the statement of cash flows and reclassify it from Increase/ (decrease) in accounts payable and accrued expenses.

(4)   To recognize amortization of debt discount and reclassify amounts repaid on the principal of the convertible notes.

(5)   To record derivative liability at March 31, 2014.

(6)   To present the loss on the warrant derivative liability.

(7)   To derecognize the warrants sold to Full Circle which were erroneously recorded as adjustments to common stock.

(8)   To present the cumulative impact of adjustments discussed above.  This is a line item is a subtotal or total balance on the financial statements.

(9)   To present the cumulative impact of adjustments on the net loss per share.

(10)   To present the cumulative impact of adjustments on the Company’s deficit accumulated during the development stage.

(11)   To present the cumulative impact of adjustments relating to items (7) and (2).