The restatements to balance sheet accounts as of December 31, 2012 are as follows:
|
|
| As of December 31, 2012 |
| ||||
|
|
| As Reported |
| Adjustments |
| As Restated |
|
| CURRENT ASSETS |
|
|
|
|
|
|
|
| Cash |
| $ 10,847 |
| $ - |
| $ 10,847 |
|
| Accounts receivable, net |
| 44,311 |
| (28,640) | (1) | 15,671 |
|
| Prepaid expenses and other current assets |
| 6,403 |
| - |
| 6,403 |
|
|
|
|
|
|
|
|
|
|
| Total current assets |
| 61,561 |
| (28,640) |
| 32,921 |
|
|
|
|
|
|
|
|
|
|
| PROPERTY AND EQUIPMENT, net |
| 61,299 |
| (5,463) | (2) | 55,836 |
|
|
|
|
|
|
|
|
|
|
| OTHER ASSETS AND INTANGIBLE ASSETS |
| 5,250 |
| 11,608 | (1) | 16,858 |
|
|
|
|
|
|
|
|
|
|
| TOTAL ASSETS |
| $ 128,110 |
| $ (22,495) |
| $ 105,615 |
|
|
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
|
|
|
| Accounts payable |
| $ 482,286 |
| $ - |
| $ 482,286 |
|
| Accrued and other liabilities, current portion |
| 281,808 |
| 795,215 | (3) | 1,077,023 |
|
| Convertible notes payable, related party - current portion |
| 304,206 |
| - |
| 304,206 |
|
| Deferred revenue |
| 198,837 |
| - |
| 198,837 |
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
| 1,267,137 |
| 795,215 |
| 2,062,352 |
|
|
|
|
|
|
|
|
|
|
| ACCRUED AND OTHER LIABILITIES, less current portion |
| 784,225 |
| (784,225) | (3) | - |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
| 2,051,362 |
| 10,990 |
| 2,062,352 |
|
|
|
|
|
|
|
|
|
|
| STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
| Common stock |
| 91 |
| - |
| 91 |
|
| Additional paid-in capital |
| 8,417,050 |
| - |
| 8,417,050 |
|
| Accumulated deficit |
| (10,340,393) |
| (33,485) |
| (10,373,878) |
|
|
|
|
|
|
|
|
|
|
| Total stockholders’ deficit |
| (1,923,252) |
| (33,485) |
| (1,956,737) |
|
|
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
| $ 128,110 |
| $ (22,495) |
| $ 105,615 |
|
——————————
(1) To correct an error in the recording of certain assets which were mistakenly recorded as accounts receivable instead of intangible assets.
(2) To correct an error in the calculation of depreciation expense.
(3) Reclassifications to conform to the presentation of the current period.
The restatements to income statement accounts for the year ended December 31, 2012 are as follows:
|
|
| Year ended December 31, 2012 |
| ||||
|
| As Reported | Adjustments |
As Restated |
| |||
| REVENUES |
|
|
|
|
|
|
|
| Access service revenues |
| $ 159,692 |
| $ - |
| $ 159,692 |
|
| Co-location and other revenues |
| 1,434,540 |
| - |
| 1,434,540 |
|
|
|
|
|
|
|
|
|
|
| Total revenues |
| 1,594,232 |
| - |
| 1,594,232 |
|
|
|
|
|
|
|
|
|
|
| OPERATING COSTS AND EXPENSES |
|
|
|
|
|
|
|
| Cost of access service revenues |
| 135,051 |
| (9,090) | (3) | 125,961 |
|
| Cost of co-location and other revenues |
| 348,133 |
| 9.090 | (3) | 357,223 |
|
| Selling, general and administrative expenses |
| 1,246,363 |
| (5,736) | (1) | 1,240,627 |
|
| Depreciation and amortization |
| 31,694 |
| 7,926 | (2) | 39,620 |
|
| Impairment expense |
| - |
| 31,295 | (1) | 31,295 |
|
| Total operating costs and expenses |
| 1,761,241 |
| 33,485 |
| 1,794,726 |
|
|
|
|
|
|
|
|
|
|
| LOSS FROM OPERATIONS |
| (167,009) |
| (33,485) |
| (200,494) |
|
|
|
|
|
|
|
|
|
|
| INTEREST EXPENSE |
| (22,604) |
| - |
| (22,604) |
|
|
|
|
|
|
|
|
|
|
| LOSS before income taxes |
| (189,613) |
| (33,485) |
| (223,098) |
|
|
|
|
|
|
|
|
|
|
| NET LOSS |
| $ (189,613) |
| $ (33,485) |
| $ (223,098) |
|