Quarterly report pursuant to Section 13 or 15(d)

2. Revision of Prior Period Financial Statements (Tables)

v3.20.2
2. Revision of Prior Period Financial Statements (Tables)
 9 Months Ended
Sep. 30, 2020
Accounting Changes and Error Corrections [Abstract]  
Restatement

Condensed consolidated statement of operations for the three months ended September 30, 2019

 

    Previously reported           Revised  
    For the three months ended           For the three months ended  
    9/30/2019     Adjustment     9/30/2019  
Revenue   $ 324,870     $ 107,118     $ 431,988  
Revenue - related party     7,300       –       7,300  
Total revenue     332,170       107,118       439,288  
                         
Cost of Revenue     348,371       211,104       559,475  
                         
Gross Profit     (16,201 )     (103,986 )     (120,187 )
                         
Operating Expenses:                        
Selling     93,904       (81,637 )     12,267  
Compensation - officers     44,905       (4,905 )     40,000  
Research and development     66,282       7       66,289  
Professional fees     399,650       (1,700 )     397,950  
General and administrative     269,961       52,840       322,801  
Total Operating Expenses     874,702       (35,395 )     839,307  
                         
Loss from Operations     (890,903 )     (68,591 )     (959,494 )
                         
Other Income (Expense):                        
Interest income (expense), net     (232 )     (16 )     (248 )
Other income     8,460       1,183       9,643  
Total other expense     8,228       1,167       9,395  
                         
Loss before income taxes     (882,675 )     (67,424 )     (950,099 )
                         
Tax expense     –       –       –  
                         
Net Loss   $ (882,675 )   $ (67,424 )   $ (950,099 )

 

Condensed consolidated statement of operations for the nine months ended September 30, 2019

 

    Previously reported           Revised  
    For the nine months ended           For the nine months ended  
    9/30/2019     Adjustment     9/30/2019  
Revenue   $ 984,945     $ 116,445     $ 1,101,390  
Revenue - related party     10,300       –       10,300  
Total revenue     995,245       116,445       1,111,690  
                         
Cost of Revenue     752,451       315,495       1,067,946  
                         
Gross Profit     242,794       (199,050 )     43,744  
                         
Operating Expenses:                        
Selling     183,570       (159,547 )     24,023  
Compensation - officers     106,580       3,420       110,000  
Research and development     193,002       7       193,009  
Professional fees     971,789       (13,452 )     958,337  
General and administrative     619,131       56,804       675,935  
Total Operating Expenses     2,074,072       (112,768 )     1,961,304  
                         
Loss from Operations     (1,831,278 )     (86,282 )     (1,917,560 )
                         
Other Income (Expense):                        
Interest income (expense), net     836       (16 )     820  
Other income     10,440       1,183       11,623  
Total other expense     11,276       1,167       12,443  
                         
Loss before income taxes     (1,820,002 )     (85,115 )     (1,905,117 )
                         
Tax expense     –       –       –  
                         
Net Loss   $ (1,820,002 )   $ (85,115 )   $ (1,905,117 )

 

Condensed consolidated statement of cash flows

 

    Previously reported           Revised  
    For the nine months ended           For the nine months ended  
    9/30/2019     Adjustment     9/30/2019  
Cash flows from operating activities:                        
Net Loss   $ (1,820,002 )   $ (85,115 )   $ (1,905,117 )
Adjustments to reconcile net loss to net cash from operating activities:                        
Inventories reserve     3,601       –       3,601  
Depreciation expense     112,107       –       112,107  
Amortization of intangible assets     16,521       –       16,521  
Amortization of right-of-use assets     48,569       (48,865 )     (296 )
Stock-based compensation     59,964       –       59,964  
Stock option compensation     172,900       –       172,900  
Changes in operating assets and liabilities:                        
Accounts receivable     262,099       (68,373 )     193,726  
Accounts receivable - related party     39,625       –       39,625  
Inventories     (5,210 )     –       (5,210 )
Other receivable     (3,625 )     –       (3,625 )
Prepaid expenses     68,914       –       68,914  
Deposit     7,210       –       7,210  
Accounts payable and accrued liabilities     (22,860 )     184,324       161,464  
Accounts payable - related party     (4,921 )     –       (4,921 )
Other liabilities     (7,210 )     –       (7,210 )
Customer deposit     (5,348 )     (30,836 )     (36,184 )
Net cash flows used in operating activities     (1,077,666 )     (48,865 )     (1,126,531 )
                         
Cash flows from investing activities:                        
Cash from acquisition     201,482       –       201,482  
Purchase of property and equipment     (220,793 )     –       (220,793 )
Cash paid for acquisition     (550,000 )     –       (550,000 )
Net cash flows used in investing activities     (569,311 )     –       (569,311 )
                         
Cash flows from financing activities:                        
Payment on long term debt and finance lease obligation     (48,865 )     48,865       –  
Net cash flows used in financing activities     (48,865 )     48,865       –  
                         
Net change in cash     (1,695,842 )     –       (1,695,842 )
                         
Cash beginning of period     4,455,751       –       4,455,751  
                         
Cash end of period   $ 2,759,909     $ –     $ 2,759,909