Quarterly report pursuant to Section 13 or 15(d)

Restated Financial Statements For The Three Months Ended March 2014

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

NOTE 7 – RESTATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2014

 

The consolidated financial statements for the three months ended March 31, 2014 have been amended to correct the use of a valuation date subsequent to period end to value its marketable securities.

An analysis of the restated March 31, 2014 Statement of Operations is as follows.

1 – Change is due to a material departure from GAAP due to the Company using the valuation date subsequent to period end to value its marketable securities.

 

    March 31,  2014
Current Assets:   As Reported   Adjustment   As Restated
   Cash and cash equivalents   $ 7,825,865     $ —       $ 7,825,865  
   Accounts receivable     2,487       —         2,487  
   Inventory     16,500       —         16,500  
   Prepaid expense     17,477       —         17,477  
   Prepaid stock purchase     —         81,250 1     81,250  
   Security deposit     15,000       —         15,000  
   Trading securities     2,968,569       —         2,968,569  
   Available-for-sale securities     10,793,820       (448,300 )1     10,345,520  
   Deferred income taxes - current     758,000       —         758,000  
       Total Current Assets     22,397,718       (367,050 )     22,030,668  
                         
   Property and equipment, net     209,232       —         209,232  
   Deferred income taxes – non-current     282,000       —         282,000  
                         
       TOTAL ASSETS   $ 22,888,950     $ (367,050 )   $ 22,521,900  
                         
LIABILITIES                        
Current Liabilities:                        
   Accounts payable and accrued liabilities   $ 64,552     $ —       $ 64,552  
  Due for stock purchase     27,500       (27,500 )     —    
   Related party notes payable     1,911,028       —         1,911,028  
       Total Current Liabilities     2,003,080       (27,500 )     1,975,580  
  Noncurrent related party notes payable     8,680,183       —         8,680,183  
          Total Liabilities     10,683,263       (27,500 )     10,655,763  
                         
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     6,562,471       (339,550 )1     6,222,921  
   Retained deficit     (8,420,166 )     —         (8,420,166 )
                         
       Total Stockholders’ Equity (Deficit)     12,205,687       (339,550 )     11,866,137  
                         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)   $ 22,888,950     $ (367,050 )   $ 22,521,900  

 

 

    March 31,  2014
    As Reported   Adjustment   As Restated
Revenues   $ 337,171     $ —       $ 337,171  
Cost of revenues     105,710       —         105,710  
Gross Margin     231,461       —         231,461  
                         
Operating Expenses:                        
   Labor and related expenses     92,270       —         92,270  
   Rent     52,431       —         52,431  
   Depreciation     18,066       —         18,066  
   Other general and administrative     192,611       —         192,611  
      Total Operating Expenses     355,378       —         355,378  
Net Operating Income (Loss)     (123,917 )     —         (123,917 )
                         
Other Income (Expense):                        
   Interest income     1,238       —         1,238  
   Interest expense     (146,209 )     —         (146,209 )
   Unrealized gain (loss) on trading securities     1,684,865       —         1,684,865  
   Gain (loss) on sale of marketable securities     5,819,432       —         5,819,432  
Net Other Income (Expense)     7,359,326       —         7,359,326  
                         
Net Income (Loss)   $ 7,235,409     $ —       $ 7,235,409  
                         
Other Comprehensive Income (Loss):                        
  Unrealized gain on available-for-sale securities     1,701,712       5,806,218 1     7,507,930  
                         
Comprehensive Income (Loss)   $ 8,937,121     $ 5,806,218     $ 14,743,339  
                         
Income Per Common Share:   $ 0.05     $ —       $ 0.05  
Income Per Common Share, Diluted:   $ 0.05     $ —       $ 0.05  
Weighted Average Common Shares:                        
   Basic     136,627,710       —         136,627,710  
  Diluted     146,061,672       —         146,061,672