Quarterly report pursuant to Section 13 or 15(d)

Restatement Of June 30, 2016 Financial Information

v3.6.0.2
Restatement Of June 30, 2016 Financial Information
6 Months Ended
Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]  
Restatement Of June 30, 2016 Financial Information

13 RESTATEMENT OF JUNE 30, 2016 FINANCIAL INFORMATION

 

These condensed consolidated financial statements restate certain items previously reported by the Company for the three and six months ended June 30, 2016.

 

Restated balances for 2016 financial information items have been identified with the notation “Restated” where appropriate and applicable.

 

Other than the revising of the previously filed condensed consolidated financial statements relating to the restatement, these notes to the condensed consolidated financial statements speak as of the filing date of the Company’s original Form 10-Q for the three and six months ended June 30, 2016 and filed on August 23, 2016, and these notes to the condensed consolidated financial statements have not been updated to reflect other events occurring subsequent to the original filing date. These notes to the condensed consolidated financial statements should be read in their historical context, except to the extent revised as a result of this restatement.

 

Since its acquisition on October 12, 2015, and until the end of the second quarter of 2016, the accounting records of DigitizeIQ, LLC (“DIQ”) were maintained by a third-party bookkeeping service pursuant to a contract with DIQ’s prior owner. During the process of converting the DIQ records from the software used by this bookkeeping service to the software used by the Company, certain differences were noted. During the review of the balances in the deferred revenue accounts for the Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, it was noted that a correction was necessary as of March 31, 2016 and June 30, 2016. It was determined that deferred revenue was overstated $172,050 and revenue was understated by $172,050 at March 31, 2016 and that deferred revenue was overstated and revenue was understated by an additional $155,351 at June 30, 2016. The following tables summarize the changes.

 

    As Previously              
    Reported     Adjustment     As Restated  
Consolidated Balance Sheets                        
Deferred revenue   $ 493,101     $ (327,401 )   $ 165,700  
                         
Accumulated deficit   $ (3,470,712 )   $ 327,401     $ (3,143,311 )
                         
Consolidated Statement of Operations Three months ended June 30, 2016                        
Revenue   $ 851,688     $ 155,351     $ 1,007,039  
                         
Net loss   $ (1,256,211 )   $ 155,351     $ (1,100,860 )
                         
Net loss per common share, basic and diluted   $ (0.03 )           $ (0.03 )
                         
Six months ended June 30, 2016                        
Revenue   $ 2,067,185     $ 327,401     $ 2,394,586  
                         
Net loss   $ (2,042,906 )   $ 327,401     $ (1,715,505 )
                         
Net loss per common share, basic and diluted   $ (0.05 )   $ 0.01     $ (0.04 )
                         
Consolidated Statement of Cash Flows Six months ended June 30, 2016                        
Net loss   $ (2,042,906 )   $ 327,401     $ (1,715,505 )
                         
Deferred revenue (decrease)   $ (25,139 )   $ (327,401 )   $ (352,540 )