Restatement of Prior Periods (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of effect of the restatement on the consolidated balance sheets, the consolidated statements of income and consolidated statements of cash flows

The effect of the restatement on the consolidated balance sheets, the consolidated statements of income and consolidated statements of cash flows for the fiscal year ended December 31, 2014 are presented in the following tables:

ASSETS	As originally reported at DEC 31, 2014			Adjustments			As restated DEC 31, 2014
TOTAL ASSETS	$	20,019,405			—		$	20,019,405

Derivative liability		—			1,189,718	⁽¹⁾		1,189,718
Convertible notes, net of discount		701,206			(135,555	)⁽¹⁾		565,651
Other liabilities		19,665,343			—			19,665,343
TOTAL LIABILITIES	$	20,366,549			1,054,163		$	21,420,712
EQUITY
Common stock		4,020						4,020
Additional paid in capital		15,398,073			(473,074	)⁽¹⁾		14,924,999
Stock payable		33,278			—			33,278
Accumulated deficit		(15,782,515	)		(581,089	)⁽¹⁾		(16,363,604	)
TOTAL EQUITY		(347,144	)		1,054,163			(1,401,307	)
TOTAL LIABILITIES AND STOCKHOLDER’S DEFICIT	$	20,019,405					$	20,019,405

(1) Adjustment reflects correction of an error.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	As originally reported at DEC 31, 2014			Adjustments			As restated DEC 31, 2014
TOTAL OPERATING INCOME	$	762,856		$	—		$	762,856

OTHER (INCOME) / EXPENSE
Other income		(77,169	)		—			(77,169	)
Gain on extinguishment of debt		(10,334	)		—			(10,334	)
Gain on bargain purchase acquisition of JD		(1,620,071	)		—			(1,620,071	)
Interest expense, net		1,584,028			632,261	⁽¹⁾		2,216,289
Gain on change in fair value of derivative liabilities		—			(51,172	)⁽¹⁾		(51,172	)
Loss on disposal of fixed assets		574,312			—			574,312
TOTAL OTHER (INCOME) / EXPENSE		450,766			581,089			1,031,855
NET INCOME (LOSS)	$	312,090					$	(268,999	)
BASIC (LOSS) INCOME PER SHARE	$	0.08					$	(0.07	)
DILUTED (LOSS) INCOME PER SHARE	$	0.06					$	(0.07	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC		3,705,626						3,705,626
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTIVE		5,319,186						3,705,626

(1) Adjustment reflects correction of an error.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	As originally reported at DEC 31, 2014			Adjustments			As restated DEC 31, 2014
Net (loss) income	$	312,090			(581,089	)⁽¹⁾	$	(268,999	)
Cash used by operating activities
Amortization of debt discount on notes payable		—			25,880	⁽¹⁾		25,880
Change in fair value of derivative		—			586,418	⁽¹⁾		586,418
Accretion of convertible notes BCF		31,209			(31,209	)⁽¹⁾		—
Depreciation and amortization		1,255,574			—			1,255,574
Cash provided (used) by operating activities		2,826,035			—			2,826,035

Cash used for investing activities		353,697			—			353,697

Cash (used) provided by financing activities		(3,125,263	)		—			(3,125,263	)

Increase (decrease) in cash		54,469			—			54,469
Cash at beginning of the year		17,696			—			17,696
Cash at the end of the year	$	72,165					$	72,165

SUPPLEMENTAL DISCLOSURE OF NON CASH INVESTING AND FINANCING TRANSACTIONS
Debt discount on convertible debt	$	—		$	602,580	⁽¹⁾	$	602,580
Beneficial conversion feature on convertible debt	$	(473,072	)	$	473,072	⁽¹⁾	$	—
Derivative liability	$	—		$	603,300	⁽¹⁾	$	603,300

(1) Adjustment reflects correction of an error.

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