| 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). |
|