Restatement of Financial Statements

6 Months Ended

Dec. 31, 2014

NOTE 10 - RESTATEMENT OF FINANCIAL STATEMENTS

The Company has restated its Balance Sheet as of September 30, 2014, its Statement of Operations for the three months ended September 30, 2014, its Statement of Cash Flows for the period ended September 30, 2014, and it’s Statements of Stockholders’ Equity to account properly for an investment in a JV. The Company also recalculated the derivative liability related to convertible debt outstanding.

The following are previously recorded and restated balances as of September 30, 2014 and for the period ended September 30, 2014.

NANO LABS CORP.

BALANCE SHEETS

	September 30, 2014
	Originally
ASSETS	Reported			Restated			Difference
Current Assets:
Cash		1,981			1,981
Loan Receivable	$	101,480		$	102,740		$	1,260

Total current assets		103,461			104,721			1,260
Investment in JV		155,000			-			(155,000	)
Total Assets	$	258,461		$	104,721			(153,740	)

LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable	$	161,276		$	161,276			-

Convertible notes payable		950,294			950,294			-
Derivative Liability		46,785,958			34,044,522			(12,741,436	)
Accrued interest payable		-			-			-
		47,897,528			35,156,092			(12,741,436	)

Total current liabilities		47,897,528			35,156,092			(12,741,436	)

STOCKHOLDERS' DEFICIT

Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued or outstanding at September 30, 2014		-			-			-
Common stock: $0.001 par value; 500,000,000 shares authorized; 241,192,38 shares issued and outstanding		241,192			241,192			-
Common stock issuable		-			-			-
Additional paid-in capital		807,719			18,409,312			17,601,593
Accumulated deficit		(48,687,978	)		(53,701,875	)		(5,013,897	)
Total stockholders' deficit		(47,639,067	)		(35,051,371	)		12,587,696

Total liabilities and stockholders' deficit	$	258,461		$	104,721			(153,740	)

The accompanying notes are an integral part of these financial statements.

NANO LABS CORP.

STATEMENTS OF OPERATIONS

	For the period ended September 30, 2014
	Originally
	Reported			Restated			Difference
Sales	$	-		$	-		-
Cost of goods sold		-			-		-
Gross Margin		-			-		-

Operating Expenses

General and administrative		20,922			20,922		-
Professional Fees		5,360			5,360		-
Travel		582			582		-

Total operating expenses		26,864			26,864		-

Loss from Operations		(26,864	)		(26,864	)	-

Other Income (Expenses)
Derivative		9,888,332			4,873,175		(5,015,157	)
Interest		-			1,260		1,260
Other income (expenses)		9,888,332			4,874,435		(5,013,897	)

Income before Income Taxes		9,861,468			4,847,571		(5,013,897	)

Provision for income tax		-			-		-

Net Income	$	9,861,468		$	4,847,571		(5,013,897	)
		-			-		-

The accompanying notes are an integral part of these financial statements.

NANO LABS CORP.

STATEMENTS OF CASH FLOWS

	For the Three Months September 30, 2014
	Originally
	Reported			Restated			Difference
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	9,861,468		$	4,847,571			(5,013,897	)
Adjustments to reconcile net loss to net cash used by operating activities:
Derivative interest		(9,888,332	)		(4,873,175	)		5,015,157
Debt forgiveness		-			-			-
Changes in operating assets and liabilities:
Discontinued operations		-			-			-
(Increase) in Notes Receivable		-			(1,260	)		(1,260	)
Accounts payable and accrued expenses		1,072			1,072			-
NET CASH USED IN OPERATING ACTIVITIES		(25,792	)		(25,792	)		-

CASH FLOWS FROM FINANCING ACTIVITIES:
Cash overdraft					(1	)		(1	)
Proceed from convertible notes payable		27,774			27,774			-
NET CASH PROVIDED BY FINANCING ACTIVITIES		27,774			27,773			(1	)

NET CHANGE IN CASH		1,982			1,981			(1	)

Cash at beginning of the period		-			-			-

Cash at end of the period	$	1,982		$	1,981			(1	)

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Interest paid	$	-		$	-		$	-
Income tax paid	$	-		$	-		$	-

The accompanying notes are an integral part of these financial statements.

Nano Labs Corp. 10-Q