| Adjustments in accounting |
| |
|
As
previously reported |
|
|
Adjustment |
|
|
As
restated |
|
| Accounts receivable (a) |
|
$ |
1,671,438 |
|
|
$ |
(192,625 |
) |
|
$ |
1,478,813 |
|
| Prepaid inventory (b) |
|
|
194,206 |
|
|
|
1,260,510 |
|
|
|
1,454,716 |
|
| Inventory (a) (f) |
|
|
725,000 |
|
|
|
125,027 |
|
|
|
850,027 |
|
| Intangible assets (net) (c) (d) |
|
|
33,656,833 |
|
|
|
(29,683,833 |
) |
|
|
3,973,000 |
|
| Goodwill (d) |
|
|
– |
|
|
|
1,855,512 |
|
|
|
1,855,512 |
|
| Amount due under the PhytoSPHERE Agreement (e) |
|
|
30,500,000 |
|
|
|
(23,572,360 |
) |
|
|
6,927,640 |
|
| Additional paid in capital (e) |
|
|
4,643,357 |
|
|
|
(3,407,640 |
) |
|
|
1,235,717 |
|
| Retained earnings (a) (c) |
|
|
193,725 |
|
|
|
344,592 |
|
|
|
538,317 |
|
The effect of theses adjustments on the condensed statement of operations for the three months ended March 31, 2013 is as follows:
| |
|
As
previously reported |
|
|
Adjustment |
|
|
As
restated |
|
| Revenue (a) |
|
$ |
1,275,000 |
|
|
$ |
(192,625 |
) |
|
$ |
1,082,375 |
|
| Cost of goods sold (a) |
|
|
501,500 |
|
|
|
(296,050 |
) |
|
|
205,450 |
|
| General and administrative expenses (c) |
|
|
435,559 |
|
|
|
(241,167 |
) |
|
|
194,392 |
|
| Net income (a) (c) |
|
|
337,941 |
|
|
|
344,592 |
|
|
|
682,533 |
|
| Earnings per share (a) (c) |
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.09 |
|
The effect of theses
adjustments on the condensed statement of cash flows for the three months ended March 31, 2013 is as follows:
| |
|
As
previously reported |
|
|
Adjustment |
|
|
As
restated |
|
| Net income (a) (c) |
|
$ |
337,941 |
|
|
$ |
344,592 |
|
|
$ |
682,533 |
|
| Amortization expense (c) |
|
|
378,167 |
|
|
|
(241,167 |
) |
|
|
137,000 |
|
| Prepaid inventory (b) |
|
|
– |
|
|
|
(194,206 |
) |
|
|
(194,206 |
) |
| Inventory (a) (f) |
|
|
(402,707 |
) |
|
|
(101,843 |
) |
|
|
(504,550 |
) |
| Accounts receivable (a) |
|
|
(1,275,000 |
) |
|
|
192,625 |
|
|
|
(1,082,375 |
) |
|