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Revision of Financial Statements
6 Months Ended
Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]  
Accounting Changes and Error Corrections [Text Block]
Note 10 Revision of Financial Statements for the Quarter Ended March 31, 2018
 
During the course of preparing the quarterly report on Form 10-Q for the quarter ended June 30, 2018, the Company identified certain errors related to cost of revenue not being recorded in connection with a product sale to a customer, which resulted in the understatement of its net loss for the three months ended March 31, 2018. The reason for the error was related to certain information not being provided to the Company’s accounting staff as a result of the Company’s transition of certain accounting duties from its then-Interim Chief Financial Officer, who left the Company in the first quarter of 2018.
 
The following tables reconcile the prior period as reported balances to the as revised balances:
 
 
 
March 31, 2018
 
 
 
As Reported
 
 
Adjustment
 
 
As Revised
 
Condensed Consolidated Balance Sheet:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Current Assets
 
$
698,092
 
 
$
(27,957
)
 
$
670,135
 
Total Assets
 
$
735,964
 
 
$
(27,957
)
 
$
708,007
 
Total Current Liabilities
 
$
560,545
 
 
$
50,644
 
 
$
611,189
 
Total Liabilities
 
$
560,545
 
 
$
50,644
 
 
$
611,189
 
Total Stockholders' Equity
 
$
175,419
 
 
$
(78,601
)
 
$
96,818
 
 
 
 
For The Three Months Ended
 
 
 
March 31, 2018
 
 
 
As Reported
 
 
Adjustment
 
 
As Revised
 
Condensed Consolidated Statement of Operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
228,040
 
 
$
-
 
 
$
228,040
 
Cost of Revenue
 
$
49,346
 
 
$
100,601
 
 
$
149,947
 
Operating Expenses
 
$
925,924
 
 
$
(22,000
)
 
$
903,924
 
Loss From Operations
 
$
(747,230
)
 
$
(78,601
)
 
$
(825,831
)
Net Loss
 
$
(747,244
)
 
$
(78,601
)
 
$
(825,845
)
Net Loss Per Share - Basic and Diluted
 
$
(0.01
)
 
$
-
 
 
$
(0.01
)
Weighted Average Number of Common Shares Outstanding - Basic and Diluted
 
 
77,219,168
 
 
 
-
 
 
 
77,219,168
 
 
 
 
For The Three Months Ended
 
 
 
March 31, 2018
 
 
 
As Reported
 
 
Adjustment
 
 
As Revised
 
Condensed Consolidated Statement of Cash Flows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Operating Activities:
 
 
 
 
 
 
 
 
 
 
 
 
Net Loss
 
$
(747,244
)
 
$
(78,601
)
 
$
(825,845
)
Adjustments to reconcile net loss to net cash used in operating activities
 
$
276,874
 
 
$
78,601
 
 
$
355,475
 
Net Cash Used In Operating Activities
 
$
(470,370
)
 
$
-
 
 
$
(470,370
)
 
In accordance with SEC Staff Accounting Bulletin No 108, the Company has evaluated this error, based on an analysis of quantitative and qualitative factors, as to whether it was material to the condensed consolidated statement of operations for the three months ended March 31, 2018 and if amendments of previously filed financial statements with the SEC are required. The Company has determined that quantitatively and qualitatively, the error has no material impact to the condensed consolidated statement of operations for the three months ended March 31, 2018 or other prior periods.