Correction of Error

6 Months Ended

Jun. 30, 2014

Accounting Changes and Error Corrections [Abstract]

Correction of Error

 10. Correction of Error

These financial statements originally recorded certain expenses as selling, general and administrative instead of including them as cost of revenues. The Company has corrected this presentation to reflect the appropriate amounts in each classification.

The impact of this adjustment resulting from the correction of the error in our financial position and results of operation are summarized below:

Income Statement for the six months ended June 30, 2014 (in thousands):

	As Originally				Effect of
	Recorded		As Adjusted		Change
Net Sales	$	5,909	$	5,909	$	-
Operating Expenses
Cost of Revenues		2,938		3,258		320
Depreciation Expense		78		78		-
Research and development		445		445		-
Selling, general and administrative		1,962		1,642		(320)
Total cost and expenses		5,423		5,423		-
Operating Income (loss)		486		486		-
Other Expenses		301		301		-
Income (loss) from operations before income taxes		185		185		-
Income taxes (benefit)		16		16		-
Net Income (loss)		169		169		-
Preferred Dividend		36		36		-
Net Income (loss) to common stockholders	$	133	$	133	$	-
Pro forma basic and diluted earnings per share	$	0.00	$	0.00	$	-
Pro forma weighted average basic and diluted shares outstanding		1,552,762,369		1,552,762,369		-

No change necessary for the period ended June 30, 2013