| Schedule of Restatement Adjustments to Financial Statements |
The table below sets forth the amounts as originally reported for the categories presented in the condensed statements of operations that were affected by the Restatement, the effect of the Restatement and the restated amounts for the three and nine months ended September 30, 2016:
|
|
|
Three Months Ended
September 30, 2016
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
Statements of Income
|
|
As originally
reported
|
|
|
Impact of
restatement
|
|
|
As restated
|
|
|
As originally
reported
|
|
|
Impact of
restatement
|
|
|
As restated
|
|
|
Selling, general and
administrative
|
|
$
|
1,576,480
|
|
|
$
|
(22,924
|
)
|
|
$
|
1,553,556
|
|
|
$
|
4,850,785
|
|
|
$
|
(31,412
|
)
|
|
$
|
4,819,373
|
|
|
Provision for income taxes
|
|
|
(602,619
|
)
|
|
|
251,207
|
|
|
|
(351,412
|
)
|
|
|
(990,639
|
)
|
|
|
116,871
|
|
|
|
(873,768
|
)
|
|
Foreign currency exchange
(losses) gains
|
|
|
—
|
|
|
|
(5,926
|
)
|
|
|
(5,926
|
)
|
|
|
—
|
|
|
|
354,301
|
|
|
|
354,301
|
|
|
Loss on extinguishment of
debt
|
|
|
(87,578
|
)
|
|
|
(427,459
|
)
|
|
|
(515,037
|
)
|
|
|
(87,578
|
)
|
|
|
(427,459
|
)
|
|
|
(515,037
|
)
|
|
Net income
|
|
|
820,972
|
|
|
|
(159,254
|
)
|
|
|
661,718
|
|
|
|
1,577,867
|
|
|
|
75,125
|
|
|
|
1,652,992
|
|
The table below sets forth the amounts as originally reported for the categories presented in the condensed statements of cash flows that were affected by the Restatement, the effect of the Restatement and the restated amounts for the nine months ended September 30, 2016:
|
Statement of Cash Flow
|
|
As originally
reported
|
|
|
Impact of
restatement
|
|
|
As restated
|
|
|
Net income
|
|
$
|
1,577,867
|
|
|
$
|
75,125
|
|
|
$
|
1,652,992
|
|
|
Loss on extinguishment of debt
|
|
|
87,578
|
|
|
|
427,459
|
|
|
|
515,037
|
|
|
Deferred income tax provision
|
|
|
54,370
|
|
|
|
(54,370
|
)
|
|
|
—
|
|
|
Unrealized foreign exchange losses on cash and cash equivalents
|
|
|
—
|
|
|
|
31,886
|
|
|
|
31,886
|
|
|
Increase in accounts receivable
|
|
|
(107,969
|
)
|
|
|
(705
|
)
|
|
|
(108,674
|
)
|
|
Decrease in other current assets
|
|
|
43,017
|
|
|
|
(43,017
|
)
|
|
|
—
|
|
|
Decrease in prepaid expenses and other current assets
|
|
|
6,608
|
|
|
|
2,314
|
|
|
|
8,922
|
|
|
Decrease in accounts payable
|
|
|
(858,954
|
)
|
|
|
550
|
|
|
|
(858,404
|
)
|
|
Increase in income taxes payable
|
|
|
936,269
|
|
|
|
(113,787
|
)
|
|
|
822,482
|
|
|
Increase in accrued expenses
|
|
|
141,841
|
|
|
|
11,030
|
|
|
|
152,871
|
|
|
Net cash provided by operating activities
|
|
|
3,321,274
|
|
|
|
336,485
|
|
|
|
3,657,759
|
|
|
Principal payments on notes payable
|
|
|
(2,873,437
|
)
|
|
|
(336,485
|
)
|
|
|
(3,209,922
|
)
|
|
Net cash used in financing activities
|
|
|
(1,993,009
|
)
|
|
|
(336,485
|
)
|
|
|
(2,329,494
|
)
|
|