RESTATEMENT

6 Months Ended

Jun. 30, 2021

Restatement

RESTATEMENT

NOTE 13 – RESTATEMENT

While preparing its annual report for the year ended December 31, 2020 the Company identified an error in the timing of recognizing certain revenues.  We erroneously recognized revenues in the amount of $234,570 in the fourth quarter of 2019 and $56,766 in the first quarter of 2020. These revenues should have been recognized during the three months ended June 30, 2020. The tables below summarize the impact of the restatements described above on financial information previously reported on the Company’s Forms 10-Q for the periods ended June 30, 2020:

	Three Months Ended June 30, 2020						Six Months Ended June 30, 2020
	As Reported			As Restated			As Reported			As Restated
Net Sales	$	1,404,028		$	1,695,364		$	2,932,428		$	3,166,998
Cost of Goods Sold		1,180,769			1,180,769			2,342,582			2,342,582
Gross Profit		223,259			514,595			589,846			824,416
Operating Expenses
Research and development		—			—			—			—
Stock based compensation - general and administrative		101,607			101,607			101,607			101,607
Selling. General and Administrative Expenses		426,677			426,677			814,875			814,875
Total Operating Expenses		528,284			528,284			916,482			916,482
Operating (Loss) Income		(305,025	)		(13,689	)		(326,636	)		(92,066	)
Other Income
Gain on settlement		—			—			—			—
Other Income		7,497			7,497			7,497			7,497
Total Other Income		7,497			7,497			7,497			7,497
(Loss) Income Before Provision for Income Taxes		(297,528	)		(6,192	)		(319,139	)		(84,569	)
Provision for Income Taxes		—			—			—			—
Net (Loss) Income		(297,528	)		(6,192	)		(319,139	)		(84,569	)
Basic and Diluted (Loss) Earnings Per Common Share	$	(0.06	)	$	—		$	(0.06	)	$	(0.02	)

These errors had a non-cash impact to cash flows from operations, as such, the statement of cash flows for the six months ended June 30, 2020 reflects an adjustment to net loss and a corresponding adjustment for the change in deferred revenue.