| Change in accounting policy and accounting estimates, and correction of a prior period error |
| BALANCE SHEET |
|
Actual |
|
|
Correction of Error |
|
|
Restated Actual |
|
| Cash |
|
|
513,272 |
|
|
|
- |
|
|
|
513,272 |
|
| Account Receivable |
|
|
8,186 |
|
|
|
- |
|
|
|
8,186 |
|
| Total Current Assets |
|
$ |
521,458 |
|
|
|
- |
|
|
$ |
521,458 |
|
| Deferred Loan Costs |
|
|
- |
|
|
|
3,227 |
|
|
|
3,227 |
|
| Total Assets |
|
$ |
521,458 |
|
|
$ |
3,227 |
|
|
$ |
524,685 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts Payable |
|
|
1,149,320 |
|
|
|
- |
|
|
|
1,149,320 |
|
| Employee/Contractor Payables |
|
|
703,531 |
|
|
|
- |
|
|
|
703,531 |
|
| Common Stock Payable |
|
|
- |
|
|
|
107,572 |
|
|
|
107,572 |
|
| Related Party Payable |
|
|
638,785 |
|
|
|
- |
|
|
|
638,785 |
|
| Share Based Compensation Liability |
|
|
- |
|
|
|
880,700 |
|
|
|
880,700 |
|
| Current Portion of Long Term Debt |
|
|
4,820,361 |
|
|
|
- |
|
|
|
4,820,361 |
|
| Total Current Liabilities |
|
$ |
7,311,997 |
|
|
$ |
988,272 |
|
|
$ |
8,300,269 |
|
| Warrants |
|
|
5,999,435 |
|
|
|
- |
|
|
|
5,999,435 |
|
| Total Liabilities |
|
$ |
13,311,432 |
|
|
$ |
988,272 |
|
|
$ |
14,299,704 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
|
997,299 |
|
|
|
|
|
|
|
997,299 |
|
| Additional Paid In Capital |
|
|
41,445,027 |
|
|
|
|
|
|
|
41,445,027 |
|
| Accumulated Deficit |
|
|
(55,232,300 |
) |
|
|
(985,045 |
) |
|
|
(56,217,345 |
) |
| Total Stock holders Deficit |
|
$ |
(12,789,974 |
) |
|
$ |
(985,045 |
) |
|
$ |
(13,775,019 |
) |
| Total Liabilities and Stockholders Deficit |
|
$ |
521,458 |
|
|
$ |
3,227 |
|
|
$ |
524,685 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| STATEMENT OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
105,692 |
|
|
|
- |
|
|
|
105,692 |
|
| Cost of Sales |
|
|
17,787 |
|
|
|
- |
|
|
|
17,787 |
|
| Gross Profit |
|
$ |
87,905 |
|
|
|
- |
|
|
$ |
87,905 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| General and Administrative |
|
|
7,289,916 |
|
|
|
880,700 |
|
|
|
8,170,616 |
|
| Acquisition Expense |
|
|
400,016 |
|
|
|
- |
|
|
|
400,016 |
|
| Impairment of Goodwill |
|
|
59,400 |
|
|
|
- |
|
|
|
59,400 |
|
| Depreciation and Amortization |
|
|
14,179 |
|
|
|
- |
|
|
|
14,179 |
|
| Bad Debt Expense |
|
|
94,832 |
|
|
|
- |
|
|
|
94,832 |
|
| Impairment of Technology Asset |
|
|
1,257,058 |
|
|
|
- |
|
|
|
1,257,058 |
|
| Total Operating Expenses |
|
$ |
9,115,401 |
|
|
|
880,700 |
|
|
$ |
9,996,101 |
|
| Loss From Operations |
|
$ |
(9,027,496 |
) |
|
$ |
(880,700 |
) |
|
$ |
(9,908,196 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gain (Loss) on Debt Settlement |
|
|
(49,672 |
) |
|
|
- |
|
|
|
(49,672 |
) |
| Change in Fair Value of Derivative Liabilities |
|
|
3,157,821 |
|
|
|
- |
|
|
|
3,157,821 |
|
| Interest Expense |
|
|
(1,326,074 |
) |
|
|
(104,345 |
) |
|
|
(1,430,419 |
) |
| Total Other Income |
|
$ |
1,782,075 |
|
|
$ |
(104,345 |
) |
|
$ |
1,677,730 |
|
| Net Loss |
|
$ |
(7,245,421 |
) |
|
$ |
(985,045 |
) |
|
$ |
(8,230,466 |
) |
For the Year Ending June 30, 2013, the Company did not consider items
relating to common stock payable of 50 million shares to Sonoran Pacific for a July 1, 2012 line of credit modification or common
stock due Genesis for a loan extension. The recognition creates a $107,572 common stock payable liability, a $3,227
loan cost asset, and $104,345 of loan cost amortization expense.
Further the warrant awarded to former CEO, Zolla, to purchase 5 Preferred
B shares was valued at the issue date of June 1, 2013 and again on June 30, 2013 and resulted in compensation expense and share
based compensation liability of $153,887. Additional share based liability and compensation expense was a result of
valuing a warrant for 100 million common shares amounting to $726,813 at June 1 and June 30, 2013. The Company has restated
its financial statements for the year ended June 30, 2013 to reflect the proper accounting treatment.
|