| Effects of the restatement on the Company’s consolidated financial statements |
Consolidated Statement of Operations for the Three Months Ended September 30, 2011: | | | As Originally Reported | | | Effect of Restatement | | | As Restated | | Mark-to-market adjustment on warrant liability | | $ | - | | | $ | 632,475 | | | $ | 632,475 | | Net loss before income tax | | | (511,290) | | | | 632,475 | | | | 121,185 | | Net loss | | | (511,290) | | | | 632,475 | | | | 121,185 | | Net loss per share - Basic and diluted | | | (0.01) | | | | 0.01 | | | | 0.00 | |
Consolidated Statement of Operations for the Nine Months Ended September 30, 2011: | | | As Originally Reported | | | Effect of Restatement | | | As Restated | | Mark-to-market adjustment on warrant liability | | $ | - | | | $ | 2,014,575 | | | $ | 2,014,575 | | Net loss before income tax | | | (2,064,903) | | | | 2,014,575 | | | | (50,328) | | Net loss | | | (2,064,903) | | | | 2,014,575 | | | | (50,328) | | Net loss per share - Basic and diluted | | | (0.06) | | | | 0.06 | | | | (0.00) | |
Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2011: | | | As Originally Reported | | | Effect of Restatement | | | As Restated | | Net loss | | $ | (2,064,903) | | | $ | 2,014,575 | | | $ | (50,328) | | Mark-to-market adjustment on warrant liability | | | - | | | | (2,014,575) | | | | (2,014,575) | |
|
Consolidated Balance Sheet as of December 31, 2011:
| |
|
As Originally Reported
|
|
|
Effect of Restatement
|
|
|
As Restated
|
|
|
Warrant liability
|
|
$
|
-
|
|
|
$
|
937,000
|
|
|
$
|
937,000
|
|
|
Total liabilities
|
|
|
5,154,442
|
|
|
|
937,000
|
|
|
|
6,091,442
|
|
|
Additional paid-in capital
|
|
|
11,231,864
|
|
|
|
(2,975,000)
|
|
|
|
8,256,864
|
|
|
Accumulated deficit
|
|
|
(5,722,743)
|
|
|
|
2,038,000
|
|
|
|
(3,684,743)
|
|
|
Total Stockholders' Equity
|
|
|
5,547,701
|
|
|
|
(937,000)
|
|
|
|
4,610,701
|
|
Consolidated Statements of Operations for the Year Ended December 31, 2011:
| |
|
As Originally Reported
|
|
|
Effect of Restatement
|
|
|
As Restated
|
|
|
Mark-to-market adjustment on warrant liability
|
|
$
|
-
|
|
|
$
|
2,038,000
|
|
|
$
|
2,038,000
|
|
|
Total Other Income (Expense)
|
|
|
32,767
|
|
|
|
2,038,000
|
|
|
|
2,070,767
|
|
|
Loss Before Provision For Income Taxes
|
|
|
(3,631,173)
|
|
|
|
2,038,000
|
|
|
|
(1,593,173)
|
|
|
Net Loss
|
|
|
(3,631,173)
|
|
|
|
2,038,000
|
|
|
|
(1,593,173)
|
|
|
Net Loss Per Share - Basic and diluted
|
|
|
(0.10)
|
|
|
|
0.06
|
|
|
|
(0.04)
|
|
Consolidated Statement of Changes in Stockholders' Equity for the Year Ended December 31, 2011:
| |
|
As Originally Reported
|
|
|
Effect of Restatement
|
|
|
As Restated
|
|
|
Additional paid-in capital
|
|
$
|
11,231,864
|
|
|
$
|
(2,975,000)
|
|
|
$
|
8,256,864
|
|
|
Accumulated deficit
|
|
|
(5,722,743)
|
|
|
|
2,038,000
|
|
|
|
(3,684,743)
|
|
|
Total Stockholders' Equity
|
|
|
5,547,701
|
|
|
|
(937,000)
|
|
|
|
4,610,701
|
|
Consolidated Statements of Cash Flows for the Year Ended December 31, 2011:
| |
|
As Originally Reported
|
|
|
Effect of Restatement
|
|
|
As Restated
|
|
|
Net Loss
|
|
$
|
(3,631,173)
|
|
|
$
|
2,038,000
|
|
|
$
|
(1,593,173)
|
|
|
Mark-to-market adjustment on warrant liability
|
|
|
-
|
|
|
|
(2,038,000)
|
|
|
|
(2,038,000)
|
|
|