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||
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.
The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.
Reference 1: http://www.xbrl.org/2003/role/presentationRef