Annual report pursuant to Section 13 and 15(d)

Restated Financial Statements (Tables)

v2.4.0.8
Restated Financial Statements (Tables)
12 Months Ended
Dec. 31, 2013
Notes to Financial Statements  
Summary Of The Effect Of The Restatement

 

 

    December 31, 2012
Current Assets:   As Reported   Adjustment   As Restated
   Cash and cash equivalents   $ 382,946     $ —       $ 382,946  
   Accounts receivable     882       —         882  
   Inventory     13,400       —         13,400  
   Prepaid expense     17,725       —         17,725  
   Security deposit     15,000       —         15,000  
   Trading securities     200,556       —         200,556  
   Available-for-sale securities     292,320        350,000  5      642,320  
   Deferred income taxes - current     —          601,000      601,000  
       Total Current Assets     922,829       951,000       1,873,829  
                         
   Property and equipment, net     297,464       —         297,464  
   Deferred income taxes – non-current            618,000  3      618,000  
                         
       TOTAL ASSETS   $ 1,220,293     $ 1,569,000     $ 2,789,293  
                         
LIABILITIES                        
Current Liabilities:                        
   Accounts payable and accrued liabilities   $ 43,453     $ —       $ 43,453  
   Related party notes payable     2,521,026       —         2,521,026  
       Total Current Liabilities     2,564,479       —         2,564,479  
  Noncurrent related party notes payable     —          5,545.021 1      5,545,021  
          Total Liabilities     2,564,479       5,545,021       8,109,500  
                         
STOCKHOLDERS’ EQUITY (DEFICIT)                        
   Preferred stock     2       —         2  
    Common Stock     13,663       —         13,663  
   Additional paid-in capital     13,747,780       —         13,747,780  
   Unrealized gain (loss) on available-for-sale securities     93,820        (4,900,000  )6      (4,806,180 )
   Retained deficit     (15,199,451 )     923,979       (14,275,472 )
                         
       Total Stockholders’ Equity (Deficit)     (1,344,186 )     (3,976,021 )     (5,320,207 )
                         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)   $ 1,220,293     $ 1,569,000       2,789.293  

 

 

 

    December 31,  2012
    As Reported   Adjustment   As Restated
Revenues   $ 1,118,330     $ —       $ 1,118,330  
Cost of revenues     375,775       —         375,775  
Gross Margin     742,555       —         742,555  
                         
Operating Expenses:                        
   Labor and related expenses     357,149       —         357,149  
   Rent     234,396       —         234,396  
   Depreciation     50,423       —         50,423  
   Other general and administrative     415,414       —         415,414  
      Total Operating Expenses     1,057,382       —         1,057,382  
Net Operating Income (Loss)     (314,827 )     —         (314,827 )
                         
Other Income (Expense):                        
   Interest income     1,410       —         1,410  
   Interest expense     (135,278 )      (295,021  )1      (430,299 )
   Unrealized gain (loss) on trading securities     97,977       —         97,977  
   Gain (loss) on sale of marketable securities     (80,456 )     —         (80,456 )
Net Other Income (Expense)     (116,347 )     (295,021 )     (411,368 )
                         
Net loss before income taxes     (431,174 )     —         (726,195 )
Deferred Income tax (expense) benefit     —          1,219,000  3      1,219,000  
                         
Net Income (loss) before extraordinary items   $ (431,174 )   $ 923,979   $ 492,805  
                         
   Gain on extinguishment of debt (net of income tax of $0)     2,354,988       —         2,354,988  
                         
Net Income   $ 1,923,814     $ 923,979     $ 2,847,793  
                         
Other Comprehensive Income (Loss):                        
  Unrealized gain (loss) on available-for-sale securities     (18,840 )      (4,900,000  )6      (4,918,840 )
                         
Comprehensive Income   $ 1,904,974     $ (3,976,021 )   $ (2,071,047 )
                         
Income Per Common Share:                        
Income (loss) before extraordinary item   $     $ 0.01   $  
   Extraordinary Item   $ 0.02     $     $ 0.02  
Income (loss) per Common Share - Basic   0.02     0.01     0.03  
Income (loss) per common share - Diluted     0.02       0.01     0.02  
Weighted Average Common Shares:                        
   Basic     106,906,125       —         106,906,125  
  Diluted     121,612,007       —         121,612,007  

 

  

 

    December 31, 2013
Current Assets:   As Reported   Adjustment   As Restated
   Cash and cash equivalents   $ 1,628,529     $ —       $ 1,628,529  
   Accounts receivable     1,093       —         1,093  
   Inventory     16,500       —         16,500  
   Prepaid expense     17,477       —         17,477  
   Prepaid stock purchase     —         43,750 4     43,750  
   Security deposit     15,000       —         15,000  
   Trading securities     1,717,438       —         1,717,438  
   Available-for-sale securities     9,089,608       (6,189,518 )4     2,900,090  
   Deferred income taxes - current     758,000               758,000  
       Total Current Assets     13,243,645       (6,145,768 )     7,097,877  
                         
   Property and equipment, net     227,298       —         227,298  
   Deferred income taxes – non-current     282,000               282,000  
                         
       TOTAL ASSETS   $ 13,752,943     $ (6,145,768 )   $ 7,607,175  
                         
LIABILITIES                        
Current Liabilities:                        
   Accounts payable and accrued liabilities   $ 39,374     $ —       $ 39,374  
   Related party notes payable     1,882,648       —         1,882,648  
       Total Current Liabilities     1,922,022       —         1,922,022  
  Noncurrent related party notes payable     8,562,355       —         8,562,355  
          Total Liabilities     10,484,377       —         10,484,377  
                         
STOCKHOLDERS’ EQUITY (DEFICIT)                        
   Preferred stock     2       —         2  
    Common Stock     13,663       —         13,663  
   Additional paid-in capital     14,049,717       —         14,049,717  
   Unrealized gain (loss) on available-for-sale securities     4,860,759       (6,145,768 )4     (1,285,009 )
   Retained deficit     (15,655,575 )     —         (15,655,575 )
                         
       Total Stockholders’ Equity (Deficit)     3,268,566       (6,145,768 )     (2,877,202 )
                         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)   $ 13,752,943     $ (6,145,768 )     7,607,175  

 

    December 31,  2013
    As Reported   Adjustment   As Restated
Revenues   $ 1,306,864     $ —       $ 1,306,864  
Cost of revenues     442,174       —         442,174  
Gross Margin     864,690       —         864,690  
                         
Operating Expenses:                        
   Labor and related expenses     331,899       —         331,899  
   Rent     215,729       —         215,729  
   Depreciation     72,394       —         72,394  
   Other general and administrative     302,615       —         302,615  
      Total Operating Expenses     922,637       —         922,637  
Net Operating Income (Loss)     (57,947 )     —         (57,947 )
                         
Other Income (Expense):                        
   Interest income     584       —         584  
   Interest expense     (535,674 )     —         (535,674 )
   Unrealized gain (loss) on trading securities     (1,725,771 )     —         (1,725,771 )
   Gain (loss) on sale of marketable securities     1,117,705       —         1,117,705  
Net Other Income (Expense)     (1,143,156 )     —         (1,143,156 )
                         
Net loss before income taxes     (1,201,103 )     —         (1,201,103 )
Deferred Income tax (expense) benefit     (179,000 )     —         (179,000 )
                         
Net Income (loss) before extraordinary items   $ (1,380,103 )   $ —       $ (1,380,103 )
                         
Net Income (loss)   $ (1,380,103 )   $ —       $ (1,380,103 )
                         
Other Comprehensive Income (Loss):                        
  Unrealized gain (loss) on available-for-sale securities     8,384,099       (4,859,928 )4     3,524,171  
                         
Comprehensive Income   $ 7,003,996     $ (4,859,928 )   $ 2,144,068  
                         
Income Per Common Share:                        
Income (loss) per common share – Basic     (0.01 )     —         (0.01 )
Weighted Average Common Shares:                        
   Basic     136,627,710       —         136,627,710