Annual report pursuant to Section 13 and 15(d)

RESTATEMENT (Tables)

v3.5.0.1
RESTATEMENT (Tables)
 12 Months Ended
Dec. 31, 2015
Restated [Member]  
Schedule of Previously issued Statement of Operations and Balance Sheet
    December 31, 2015
Current Assets:   As Reported   Adjustment     As Restated
   Cash $ 40,485  $ -   $ 40,485
   Accounts receivable   172,143   (13,661) (2)   158,482
   Inventory   503,946   -     503,946
    Prepaid consulting   16,324   -     16,324
    Prepaid and other assets   67,748   -     67,748
        Total Current Assets   800,646   (13,661)     786,985
    Deposit   10,161   -     10,161
    Property and equipment, net   35,300   -     35,300
       TOTAL ASSETS $ 846,107  $ (13,661)   $ 832,446
               
LIABILITIES              
Current Liabilities:              
   Accounts payable $ 558,941 $ (36,841)  (1) $ 522,100
    Other payables and accruals   223,615   -     223,615
    Product returns & allowances   -   609,770 (5)   609,770
    Accrued compensation   226,556   -     226,556
    Due to an officer   3,253   -      3,253
   Notes payable   370,671         370,671
       Total Liabilities   1,383,036   572,929      1,955,965
               
STOCKHOLDERS’ EQUITY (DEFICIT)              
    Common Stock   26,298   -     26,298
   Additional paid-in capital   13,506,140   -     13,506,140
   Retained deficit   (14,069,367)   (586,590)     (14,655,957)
       Total Stockholders’ Equity (Deficit)   (536,929)   (586,590)     (1,123,519)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 846,107 $ -     832,446
                 

 

 

    December 31, 2015
    As Reported   Adjustment     As Restated
Sales $ 2,069,285 $ 17,324  (1)(2) $ 2,086,609
Sales returns and allowances   -   590,023 (1)(3)   590,023
Net Revenue   2,069,285   (572,699)     1,496,586
Costs of goods sold   1,118,378   -      1,118,378
      Gross margin   950,907   (572,699)      378,208
               
Operating Expenses:              
    Compensation expense   253,272   -      253,272
    Advertising and promotion   584,061   -     584,061
    Professional fees   103,871   -     103,871
    Licensing expense   6,501,715   -     6,501,715
    General and administrative   902,732   13,891 (2)(4)   916,623
      Total Operating Expenses   8,345,651   13,891     8,359,542
Loss from operations   (7,394,744)   (586,590)     (7,981,334)
               
Other Income (Expense):              
    Interest expense   (23,184)   -     (23,184)
    Amortization of debt discount   (50,029)   -     (50,029)
    Loss on disposal of assets   (17,034)   -     (17,034)
    Loss on conversion of debt   (226,811)   -     (226,811)
    Change in fair value of derivative liability   (3,042)   -     (3,042)
    Gain on extinguishment of debt   62,859   -     62,859
Total other expense   (257,241)   -     (257,241)
Net Loss $ (7,651,985) $ (586,590)   $ (8,238,575)
Income Per Common Share: $ (0.29) $ (0.03)   $ (0.32)
Weighted Average Common Shares:              
   Basic   26,094,042   -     26,094,042
                 

 

(1) Reversal of subsequent return that was originally debited to sales. Return was reclassed to sales returns & allowance account
(2) One of the Company’s customer does not satisfy all of the revenue recognition criteria, as they only pay for product sold to the end user. The Company has reversed the revenue and receivable previously recognized on product sold to the customer but not yet to their end user.
(3) One of the Company’s customers made a large return subsequent to the year ended December 31, 2015. The total revenue previously recognized on the product returned was $209,988.
(4) Return fee associated with processing the subsequent returns. Amount has been included in the “Customer returns & allowance” account until return is received.
(5) Allowance for estimated Sales Returns & Allowances for revenue recognized where the right of return exists.