Revision of Prior Year Financial Statements

9 Months Ended

Sep. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Year Financial Statements

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:

	December 31, 2019
	As Previously
	Reported			Adjustment			As Revised
Balance Sheet
Other Assets
Operating lease right of use asset, net	$	-		$	286,163		$	286,163
Total Other Assets		17,405,998			286,163			17,692,161
Total Assets	$	25,005,152		$	286,163		$	25,291,315
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