Quarterly report pursuant to Section 13 or 15(d)

2. Revision of Prior Period Financial Statements (Tables)

v3.20.1
2. Revision of Prior Period Financial Statements (Tables)
3 Months Ended
Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]  
Restatement
    Previously reported       Revised
    For the three months ended       For the three months ended
    3/31/2019   Adjustment   3/31/2019
Revenue   $ 239,738     $ (88,855 )   $ 150,883  
Revenue - related party     3,000               3,000  
Total revenue     242,738       (88,855 )     153,883  
                         
Cost of Revenue     122,128       9,603       131,731  
                         
Gross Profit     120,610       (98,458 )     22,152  
                         
Operation Expenses:                        
Selling     9,209       (9,209 )      
Compensation - officers     31,675       3,325       35,000  
Research and development     62,004               62,004  
Professional fees     355,274       (4,875 )     350,399  
General and administrative     110,456       197       110,653  
Total Operating Expenses     568,618       (10,562 )     558,056  
                         
Loss from Operations     (448,008 )     (87,896 )     (535,904 )
                         
Other Income (Expense)                        
Interest income (expense), net     725               725  
Total other expense     725               725  
                         
Loss before income taxes     (447,283 )     (87,896 )     (535,179 )
                         
Tax expense                    
                         
Net Loss   $ (447,283 )   $ (87,896 )   $ (535,179 )

 

 

 

 

 

Condensed consolidated statement of cash flows

 

    Previously reported       Revised
    For the three months ended       For the three months ended
    3/31/2019   Adjustment   3/31/2019
Cash flows from operating activities:                        
Net Loss   $ (447,283 )     (87,896 )   $ (535,179 )
Adjustments to reconcile net loss to net cash from operating activities:                        
Inventories reserve     26,435               26,435  
Depreciation expense     32,925               32,925  
Amortization of right-of-use assets     2,033               2,033  
Stock-based compensation     35,999               35,999  
Changes in operating assets and liabilities:                        
Accounts receivable     (99,176 )             (99,176 )
Accounts receivable - related party     37,625               37,625  
Inventories     9,187               9,187  
Other receivable     (2,151 )             (2,151 )
Prepaid expenses     46,671               46,671  
Accounts payable and accrued liabilities     11,216       (959 )     10,257  
Accounts payable - related party     (4,921 )             (4,921 )
Other current liabilities     (7,210 )             (7,210 )
Customer deposit     (10,467 )     88,855       78,388  
Net cash flows used in operating activities     (369,117 )             (369,117 )
                         
Cash flows from investing activities:                        
Cash from acquisition     201,482               201,482  
Purchase of property and equipment     (181,121 )             (181,121 )
Cash paid for acquisition     (550,000 )             (550,000 )
Net cash flows used in investing activities     (529,639 )             (529,639 )
                         
Cash flows from financing activities:                        
Payment on long term debt and finance lease obligation     (2,021 )             (2,021 )
Net cash flows used in financing activities     (2,021 )             (2,021 )
                         
Net change in cash     (900,776 )             (900,776 )
                         
Cash beginning of period     4,455,751               4,455,751  
                         
Cash end of period   $ 3,554,975             $ 3,554,975