Revision of Prior Year Financial Statements

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Year Financial Statements

NOTE 16. Revision of Prior Financial Statements:

The Company’s corrections of the financial statements as of March 31, 2020 and the three months then ended were a result of the adoption of FASB ASU 2016-02 “Leases” (Topic 842) and the implementation of the guidance for a lease that was executed as of April 1, 2019.

In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality and Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements the Company determined that previously issued financial statements be revised to reflect the correction of these errors.

The following tables summarize the effects of the revisions on the specific items presented in the Company’s historical condensed consolidated financial statements previously included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020:

	March 31, 2020
	As Previously Reported			Adjustment			As Revised
Balance Sheet
Other Assets
Operating lease right of use asset, net	$	-		$	918,903		$	918,903
Total Other Assets		16,892,220			918,903			17,811,123
Total Assets	$	27,136,179		$	918,903		$	28,055,082
Current Liabilities
Current portion – operating lease liability	$	-		$	186,389		$	186,389
Total Current Liabilities		16,913,062			186,389			17,074,498
Long-term Liabilities
Operating lease liability, net		-			739,977			739,977
Total Long-term Liabilities		-			739,977			739,977
Total Liabilities	$	16,913,062		$	926,372		$	17,814,498
Stockholders’ Equity
Accumulated Deficit	$	(42,400,593	)	$	(7,469	)	$	(42,408,062	)
Total Stockholders’ Equity		10,223,117			(7,469	)		10,215,648
Total Liabilities and Stockholders’ Equity	$	27,136,179		$	918,903		$	28,055,082

	For the three months ended March 31, 2020
	As Previously Reported			Adjustments			As Revised
Statement of Operations
Interest expense	$	(160,060	)	$	(3,681	)	$	(163,741	)
Total other income (expenses)		(160,060	)		(3,681	)		(163,741
Loss before income taxes		(1,762,635	)		(3,681	)		(1,766,316	)
Net loss		(1,784,527	)		(3,681	)		(1,788,208	)
Net loss attributable to common stockholders		(1,892,362	)		(3,681	)		(1,896,043	)
Total comprehensive loss	$	(1,927,865	)	$	(3,681	)	$	(1,931,546	)
Basic and diluted loss per share	$	(0.60	)	$	-		$	(0.60	)
Statements of Cash Flows
Net loss	$	(1,784,527	)	$	(3,681	)	$	(1,788,208	)
Amortization of right of use asset
Net Cash Used in Operating Activities	$	(2,293,105	)	$	-		$	(2,293,105	)

	For the three months ended March 31, 2020
	As Previously Reported			Adjustments			As Revised
Statement of Stockholders’ Deficit
Net loss	$	(1,784,527	)	$	(3,681	)	$	(1,788,208	)
Accumulated deficit ending balance	$	(42,400,593	)	$	(7,469	)	$	(42,408,062	)
Total stockholders’ equity ending balance	$	10,223,117		$	(7,469	)	$	10,215,648

NOTE 17. Revision of Prior Year Financial Statements

The Company’s corrections of the financial statements as of December 31, 2019 and the year then ended were a result of the adoption of FASB ASU 2016-02 “Leases” (Topic 842) and the implementation of the guidance for a lease that was executed as of April 1, 2019.

In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality and Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements the Company determined that previously issued financial statements be revised to reflect the correction of these errors.

As a result of the aforementioned correction of accounting errors, the relevant financial statements have been revised as follows:

The following tables summarize the effects of the revisions on the specific items presented in the Company’s historical consolidated financial statements previously included in the Company’s Annual Report for the year ended December 31, 2019 and the Company’s Quarterly Reports on Form 10-Q for the periods ended June 30, 2019 and September 30, 2019:

	December 31, 2019
	As Previously Reported			Adjustment			As Revised
Balance Sheet
Other Assets
Operating lease right of use asset, net	$	-		$	286,161		$	286,161
Total Other Assets		17,405,998			286,161			4,763,000
Total Assets	$	25,005,152		$	286,161		$	7,667,771
Current Liabilities
Current portion – operating lease liability	$	-		$	120,052		$	120,052
Total Current Liabilities		14,383,605			120,052			14,503,657
Long-term Liabilities
Operating lease liability, net		-			169,897			169,897
Total Long-term Liabilities		-			169,897			169,897
Total Liabilities	$	14,383,605		$	289,949		$	14,673,554
Stockholders’ Equity
Accumulated Deficit	$	(40,508,231	)	$	(3,788	)	$	(40,512,019	)
Total Stockholders’ Equity		10,621,547			(3,788	)		10,617,764
Total Liabilities and Stockholders’ Equity	$	25,005,152			286,163			25,291,315

	For the year ended December 31, 2019
	As Previously Reported			Adjustments			As Revised
Statement of Operations
Interest expense	$	(691,138	)	$	(3,788	)	$	(694,926	)
Total other income (expenses)		1,109,576			(3,788	)		1,105,788
Loss before income taxes		(5,215,318	)		(3,788	)		(5,219,106	)
Net loss		(5,603,975	)		(3,788	)		(5,607,763	)
Net loss attributable to common stockholders		(6,029,978	)		(3,788	)		(6,033,766	)
Total comprehensive loss		(6,056,963	)		(3,788	)		(6,060,751	)
Comprehensive loss attributable to Company	$	(6,056,963	)	$	(3,788	)	$	(6,060,751	)
Basic and diluted loss per share	$	(2.83	)	$	-		$	(2.83	)
Statements of Cash Flows
Net loss	$	(6,029,978	)	$	(3,788	)	$	(6,033,766	)
Amortization of right of use asset		-			3,788			3,788
Net Cash Used in Operating Activities	$	(2,453,123	)	$	-		$	(2,453,123	)

	For the year ended December 31, 2019
	As Previously Reported			Adjustments			As Revised
Statement of Stockholders’ Deficit
Net loss	$	(6,029,978	)	$	(3,788	)	$	(6,033,766	)
Accumulated deficit ending balance	$	(40,508,231	)	$	(3,788	)	$	(40,512,019	)
Total stockholders’ equity ending balance	$	10,621,547		$	(3,788	)	$	10,617,764

F-49

The following tables summarize the effects of the revisions on the specific items presented in the Company’s historical unaudited condensed consolidated balance sheets previously included in the Company’s Quarterly Reports on Form 10-Q for the periods ended June 30, 2019 and September 30, 2019:

	September 30, 2019
	As Previously Reported			Adjustment		As Revised
Balance Sheet
Other Assets
Operating lease right of use asset, net	$	-		$	315,187	$	315,187
Total Other Assets		18,511,902			315,187		18,827,089
Total Assets	$	29,477,833		$	315,187	$	29,793,020
Current Liabilities
Current portion – operating lease liability	$	-		$	116,665	$	116,665
Total Current Liabilities		14,365,829			116,665		14,482,494
Long-term Liabilities
Operating lease liability, net		-			198,522		198,522
Total Long-term Liabilities		4,251,103			198,522		4,449,625
Total Liabilities	$	18,616,932		$	315,187	$	18,932,119
Stockholders’ Equity
Accumulated Deficit	$	(37,806,731	)	$	-	$	(37,806,731	)
Total Stockholders’ Equity		10,860,901			-		10,860,901
Total Liabilities and Stockholders’ Equity	$	29,477,833		$	315,187	$	29,793,020

	June 30, 2019
	As Previously Reported			Adjustment		As Revised
Balance Sheet
Other Assets
Operating lease right of use asset, net	$	-		$	343,715	$	343,715
Total Other Assets		17,967,963			343,715		18,311,678
Total Assets	$	26,656,309		$	343,715	$	27,000,024
Current Liabilities
Current portion – operating lease liability	$	-		$	113,338	$	113,338
Total Current Liabilities		13,408,946			113,338		13,522,284
Long-term Liabilities
Operating lease liability, net		-			230,377		230,377
Total Long-term Liabilities		-			230,377		230,377
Total Liabilities	$	13,408,946		$	343,715	$	13,752,661
Stockholders’ Equity
Accumulated Deficit	$	(37,872,197	)	$	-	$	(37,872,197	)
Total Stockholders’ Equity		13,247,363			-		13,247,363
Total Liabilities and Stockholders’ Equity	$	26,656,309		$	343,715	$	27,000,024