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)
 6 Months Ended
Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]  
Restatement

Condensed consolidated statement of operation for the three months ended June 30, 2019

 

    Previously reported           Revised  
    For the three months ended           For the three months ended  
    6/30/2019     Adjustment     6/30/2019  
Revenue   $ 420,337     $ 98,182     $ 518,519  
Revenue - related party     –       –       –  
Total revenue     420,337       98,182       518,519  
                         
Cost of Revenue     281,952       94,788       376,740  
                         
Gross Profit     138,385       3,394       141,779  
                         
Operating  Expenses:                        
Selling     80,457       (68,701 )     11,756  
Compensation - officers     30,000       5,000       35,000  
Research and development     64,716       –       64,716  
Professional fees     216,865       (6,877 )     209,988  
General and administrative     238,714       3,767       242,481  
Total Operating Expenses     630,752       (66,811 )     563,941  
                         
Loss from Operations     (492,367 )     70,205       (422,162 )
                         
Other Income                        
Interest income     343       –       343  
Other income     1,980       –       1,980  
Total other income     2,323       –       2,323  
                         
Loss before income taxes     (490,044 )     70,205       (419,839 )
                         
Tax expense     –       –       –  
                         
Net Loss   $ (490,044 )   $ 70,205     $ (419,839 )

 

 

Condensed consolidated statement of operation for the six months ended June 30, 2019

 

    Previously reported           Revised  
    For the six months ended           For the six months ended  
    6/30/2019     Adjustment     6/30/2019  
Revenue   $ 660,075     $ 9,327     $ 669,402  
Revenue - related party     3,000       –       3,000  
Total revenue     663,075       9,327       672,402  
                         
Cost of Revenue     404,080       104,391       508,471  
                         
Gross Profit     258,995       (95,064 )     163,931  
                         
Operating  Expenses:                        
Selling     89,666       (77,910 )     11,756  
Compensation - officers     61,675       8,325       70,000  
Research and development     126,720       –       126,720  
Professional fees     572,139       (11,752 )     560,387  
General and administrative     349,170       3,964       353,134  
Total Operating Expenses     1,199,370       (77,373 )     1,121,997  
                         
Loss from Operations     (940,375 )     (17,691 )     (958,066 )
                         
Other Income                        
Interest income     1,068       –       1,068  
Other income     1,980       –       1,980  
Total other income     3,048       –       3,048  
                         
Loss before income taxes     (937,327 )     (17,691 )     (955,018 )
                         
Tax expense     –       –       –  
                         
Net Loss   $ (937,327 )   $ (17,691 )   $ (955,018 )

 

  

Condensed consolidated statement of cash flows

 

    Previously reported           Revised  
    For the six months ended           For the six months ended  
    6/30/2019     Adjustment     6/30/2019  
Cash flows from operating activities:                        
Net Loss   $ (937,327 )     (17,691 )   $ (955,018 )
Adjustments to reconcile net loss to net cash from operating activities:                        
Inventories reserve     (12,654 )     –       (12,654 )
Depreciation expense     71,168       –       71,168  
Amortization of intangible assets     –       475       475  
Amortization of right-of-use assets     14,337       –       14,337  
Stock-based compensation     48,000       –       48,000  
Changes in operating assets and liabilities:                        
Accounts receivable     146,269       (59,435 )     86,834  
Accounts receivable - related party     39,625       –       39,625  
Inventories     5,242       –       5,242  
Other receivable     (2,151 )     –       (2,151 )
Prepaid expenses     88,838       –       88,838  
Deposit     7,210       –       7,210  
Accounts payable and accrued liabilities     15,129       –       15,129  
Accounts payable - related party     (4,921 )     –       (4,921 )
Other payable     (7,210 )     –       (7,210 )
Customer deposit     77,539       76,651       154,190  
Net cash flows used in operating activities     (450,906 )     –       (450,906 )
                         
Cash flows from investing activities:                        
Cash from acquisition     201,482       –       201,482  
Purchase of property and equipment     (217,292 )     –       (217,292 )
Cash paid for acquisition     (550,000 )     –       (550,000 )
Net cash flows used in investing activities     (565,810 )     –       (565,810 )
                         
Cash flows from financing activities:                        
Payment on long term debt and finance lease obligation     (14,256 )     –       (14,256 )
Net cash flows used in financing activities     (14,256 )     –       (14,256 )
                         
Net change in cash     (1,030,972 )     –       (1,030,972 )
                         
Cash beginning of period     4,455,751       –       4,455,751  
                         
Cash end of period   $ 3,424,779       –     $ 3,424,779