RESTATEMENT

9 Months Ended

Sep. 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. The Company 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 nine months ended September 30, 2020 (note that there was no impact to the previously reported three months ended September 30, 2020 results):

	Nine Months Ended
	September 30,
	2020
	As Reported			As Restated
Net Sales	$	4,493,061		$	4,727,631
Cost of Goods Sold		3,825,037			3,825,037
Gross Profit		668,024			902,594
Operating Expenses
Research and development		65,037			65,037
Stock based compensation - general and administrative		381,314			381,314
Selling, General, and Administrative Expenses		1,443,276			1,443,276
Total Operating Expenses		1,889,627			1,889,627
Operating Loss		(1,221,603	)		(987,033	)
Other Income		11,905			11,905
Loss Before Provision for Income Taxes		(1,209,698	)		(975,128	)
Provision for Income Taxes		—			—
Net Loss		(1,209,698	)		(975,128	)
Basic and Diluted Loss Per Common Share	$	(0.24	)	$	(0.19	)

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