Quarterly report pursuant to Section 13 or 15(d)

Restatement

v3.20.2
Restatement
3 Months Ended
Mar. 31, 2020
RESTATEMENT

NOTE 10 - RESTATEMENT


The Company, while undergoing the review of its consolidated financial statements for the six months ended June 30, 2020, commenced an evaluation of its accounting in connection with the Note (as defined in Note 4) for derivative accounting in accordance with ASC 815. Management originally deemed these agreements to be fixed in nature and a derivative would not need be recognized. On August 12, 2020, under the authority of the board of directors, the Company determined that these agreements and underlying warrants should have been recorded as a derivative with changes in the fair value of the derivate to be recorded in the condensed consolidated statement of operations and comprehensive loss (see Note 4). Accordingly, the Company has restated the condensed consolidated interim financial statements and included the required disclosures for the three months ended March 31, 2020.


The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Condensed Consolidated Balance Sheet at March 31, 2020:  


    March 31, 2020  
    As Reported     Adjustment     As Restated  
Convertible notes payable, net   $ 565,781     $ (159,299 )   $ 406,482  
Derivative liabilities   $ -     $ 571,843     $ 571,843  
Current liabilities   $ 1,467,171     $ 412,544     $ 1,879,715  
Total liabilities   $ 1,467,171     $ 412,544     $ 1,879,715  
Accumulated deficit   $ (4,211,193 )   $ (412,544 )   $ (4,623,737 )
Total stockholders’ deficit   $ 1,419,785     $ (412,544 )   $ (1,832,329 )

The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2020:


    March 31, 2020  
    As Reported     Adjustment     As Restated  
Interest expense   $ (88,291 )   $ (365,325 )   $ (453,616 )
Change in fair market value of derivative liabilities   $ -     $ (47,219 )   $ (47,219 )
Net Loss   $ (539,116 )   $ (412,544 )   $ (951,660 )
Total comprehensive loss   $ (540,169 )   $ (412,544 )   $ (952,713 )
Net loss per common share, basic and diluted   $ (0.03 )   $ (0.02 )   $ (0.05 )