Quarterly report pursuant to Section 13 or 15(d)

Restated Financial Statements For The Three Months Ended March 2013

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Restated Financial Statements For The Three Months Ended March 2013
3 Months Ended
Mar. 31, 2014
Notes to Financial Statements  
Restated Financial Statements For The Three Months Ended March 2013

NOTE 6 – RESTATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2013

The consolidated financial statements for the three months ended March 31, 2013 have been amended for failure to record the acquisition of marketable securities and the related notes payable, interest, and the resulting unrealized gains and losses. An analysis of the restated March 31, 2013 Statement of Operations is as follows.

1 – In 2012 the Company acquired 3,500,000 shares of Plandai, Inc. valued at the FMV of $1,575,000 and 3,500,000 shares of Inscor, Inc. valued at the FMV of $3,675,000 from Berkshire Capital Management. The shares were exchanged for two demand notes, carrying an interest rate of 6%.

2 – The change is due to the mark to market of the new available for sale securities.

3 – Change is due to the consideration of the FMV of the marketable securities acquired in 2012.

 

  March 31,  2013
    As Reported   Adjustment   As Restated
Revenues $ 277,328 $ $ 277,328
Cost of revenues   84,554     84,554
Gross Margin   192,774     192,774
             
Operating Expenses:            
   Labor and related expenses   80,586     80,586
   Rent   56,188     56,188
   Depreciation   12,775     12,775
   Other general and administrative   95,042     95,042
      Total Operating Expenses   244,591     244,591
Net Operating Income (Loss)   (51,817)     (51,817)
             
Other Income (Expense):            
   Interest income   143     143
   Interest expense   (33,353)   (78,750) 1 (112,103)
   Unrealized gain (loss) on trading securities   303,361   1,460 2       304,821
   Gain (loss) on sale of marketable securities   131,495   (26,160) 3 105,335
Net Other Income (Expense)   401,646   (103,450)   298,196
             
Net Income (Loss) $ 349,829 $ (103,450) $ 246,379
             
Other Comprehensive Income (Loss):            
  Unrealized gain on available-for-sale securities   119,370   (541,890) 2 (422,520)
             
Comprehensive Income (Loss) $ 469,199 $ (645,340) $ (176,141)
             
Income Per Common Share: $ 0.00 $ - $ 0.00
Income Per Common Share, Diluted: $ 0.00 $   $ 0.00
Weighted Average Common Shares:            
   Basic   136,627,710   -   136,627,710
  Diluted   146,061,672   -   146,061,672