Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENT OF CONDENSED FINANCIAL STATEMENTS (Tables)

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RESTATEMENT OF CONDENSED FINANCIAL STATEMENTS (Tables)
6 Months Ended
Jun. 30, 2012
Notes to Financial Statements  
RECONCILIATION OF CONDENSED BALANCE SHEETS

Our condensed financial statements presented in this Quarterly Report on Form 10-Q/A has been restated to reflect the impact from the restatement adjustments described above as follows:

 

RECONCILIATION OF CONDENSED BALANCE SHEETS  
                   
    As of June 30, 2012  
    As              
    Reported           As  
    Previously     Adjustments     Restated  
Assets                  
    Current Assets:                  
      Cash   $ 6,053     $       $ 6,053  
      Accounts receivable, net     91,256       (5,000 )     86,256  
      Inventories, net     331,161       (1,855 )     329,306  
      Current portion of notes receivable, net of allowance     -               -  
      Prepaid Inventory     -       29,070       29,070  
            Total Current Assets     428,470       22,215       450,685  
Property and equipment, net     47,610       (694 )     46,916  
Deposits     5,000       (5,000 )     -  
            Total Assets   $ 481,080     $ 16,521     $ 497,601  
                         
Liabilities and Stockholders' Equity                        
    Current Liabilities                        
      Accounts payable and accrued expenses   $ 230,079     $ (3,391 )   $ 226,688  
      Note payable     279,982               279,982  
      Loans from Related Party     179,190               179,190  
            Total Current Liabilities     689,251       (3,391 )     685,860  
                         
Commitment and Contingencies                        
Stockholders' Equity                        
Preferred stock, Convertible Series A, Par value $0.001;                        
      authorized and issued 100 shares as of June 30, 2012     -               -  
Preferred stock, Convertible Series B, Par value $0.001;                        
      authorized 24,999,900 shares; issued and outstanding                        
      14,750,000 shares as of June 30, 2012     14,750               14,750  
Common stock, Par value $0.001; authorized 350,000,000                        
      shares; issued 82,038,520 shares as of June 30, 2012     82,039               82,039  
      Additional paid-in capital     2,911,638       5,000,000       7,911,638  
      Accumulated Deficit     (3,216,598 )     (4,980,088 )     (8,196,686 )
         Total Stockholders' Equity     (208,171 )     19,912       (188,259 )
                         
            Total Liabilities and Stockholders' Equity   $ 481,080     $ 16,521     $ 497,601  

  

RECONCILIATION OF CONDENSED BALANCE SHEETS  
                   
    As of December 31, 2011  
    As              
    Reported           As  
    Previously     Adjustments     Restated  
Assets                  
    Current Assets:                  
      Cash   $ 10,217     $ (1,078 )   $ 9,139  
      Accounts receivable, net     34,191       (1,810 )     32,381  
      Inventories, net     417,115       97,899       515,014  
      Current portion of notes receivable, net of allowance     38,656       (38,656 )     -  
      Prepaid Inventory     3,938       10,838       14,776  
            Total Current Assets     504,117       67,193       571,310  
Property and equipment, net     55,541       (722 )     54,819  
Deposits     5,000               5,000  
            Total Assets   $ 564,658     $ 66,471     $ 631,129  
                         
Liabilities and Stockholders' Equity                        
    Current Liabilities                        
      Accounts payable and accrued expenses   $ 147,236     $ 22,964     $ 170,200  
      Note payable     250,000               250,000  
      Loans from Related Party     150,000               150,000  
      Due to officers     -       500       500  
            Total Current Liabilities     547,236       23,464       570,700  
                         
Commitment and Contingencies                        
Stockholders' Equity                        
Preferred stock, Convertible Series A, Par value $0.001;                        
      authorized and issued 100 shares as of December 31, 2011     -               -  
Preferred stock, Convertible Series B, Par value $0.001;                        
      authorized 24,999,900 shares; issued and outstanding                        
      12,750,000 shares as of December 31, 2011     12,750       -       12,750  
Common stock, Par value $0.001; authorized 350,000,000                        
      shares; issued 33,848,520 shares as of December 31, 2011     33,849       -       33,849  
      Additional paid-in capital     2,866,427       1       2,866,428  
      Accumulated Deficit     (2,895,604 )     43,006       (2,852,598 )
         Total Stockholders' Equity     17,422       43,007       60,429  
                         
            Total Liabilities and Stockholders' Equity   $ 564,658     $ 66,471     $ 631,129  

 

 

RECONCILIATION OF CONDENSED STATEMENT OF OPERATIONS

 

RECONCILIATION OF CONDENSED STATEMENT OF OPERATIONS  
                                     
    Three Months Ended June 30, 2012     Three Months Ended June 30, 2011  
    As                 As              
    Reported           As     Reported           As  
    Previously     Adjustments     Restated     Previously     Adjustments     Restated  
                                     
Total Revenues   $ 64,185     $ 19,000     $ 83,185     $ 139,306     $ (1,462 )   $ 137,844  
  Cost of Goods Sold     91,608       (18,160 )     73,448       51,030       (13,755 )     37,275  
      (27,423 )     37,160       9,737       88,276       12,293       100,569  
Selling, general and administrative expenses     130,640       (2,807 )     127,833       209,813       22,270       232,083  
Loss from operations     (158,063 )     39,967       (118,096 )     (121,537 )     (9,977 )     (131,514 )
                                                 
Other Income (Expenses)                                                
  Interest Expense     (17,278 )     914       (16,364 )     -       -       -  
Total Other Income (Expense)     (17,278 )     914       (16,364 )     -       -       -  
Loss before Provision of Income Taxes     (175,341 )     40,881       (134,460 )     (121,537 )     (9,977 )     (131,514 )
  Provision for income taxes     -               -       800       -       800  
Net Loss applicable to common shareholders   $ (175,341 )   $ 40,881     $ (134,460 )   $ (122,337 )   $ (9,977 )   $ (132,314 )
                                                 
Net Loss per Common Share Basic and Diluted   $ -     $ -     $ -     $ (0.01 )   $ -     $ (0.01 )
                                                 
Weighted Average Number of Common Shares                                                
  Outstanding - Basic and Diluted     82,024,454       82,024,454       82,024,454       18,540,316       18,540,316       18,540,316  

 

RECONCILIATION OF CONDENSED STATEMENT OF OPERATIONS  
                   
    Six Months Ended June 30, 2012  
    As              
    Reported           As  
    Previously     Adjustments     Restated  
                   
Total Revenues   $ 276,076     $ 19,000     $ 295,076  
  Cost of Goods Sold     226,053       44,321       270,374  
      50,023       (25,321 )     24,702  
Selling, general and administrative expenses     336,393       199,223       535,616  
Impairment of goodwill     -       4,799,965       4,799,965  
Loss from operations     (286,370 )     (5,024,509 )     (5,310,879 )
                         
Other Income (Expenses)                        
  Interest Expense     (33,245 )     914       (32,331 )
Total Other Income (Expense)     (33,245 )     914       (32,331 )
Loss before Provision of Income Taxes     (319,615 )     (5,023,595 )     (5,343,210 )
  Provision for income taxes     879       (1 )     878  
Net Loss applicable to common shareholders   $ (320,494 )   $ (5,023,594 )   $ (5,344,088 )
                         
Net Loss per Common Share Basic and Diluted   $ -     $ (0.07 )   $ (0.07 )
                         
Weighted Average Number of Common Shares                        
  Outstanding - Basic and Diluted     71,447,755       71,447,755       71,447,755  

 

RECONCILIATION OF CONDENSED STATEMENT OF CASH FLOW
RECONCILIATION OF CONDENSED STATEMENT OF CASH FLOW  
                   
    As of June 30, 2012  
    As              
    Reported           As  
    Previously     Adjustments     Restated  
CASH FLOWS FROM OPERATING ACTIVITIES:                  
Net Loss   $ (320,994 )   $ (5,023,094 )   $ (5,344,088 )
Adjustments to reconcile net loss to net cash                        
  used in operating activities:                        
Depreciation     7,931       (28 )     7,903  
Change in notes receivable reserve     40,000       (35,466 )     4,534  
Warrants issued with common stock     15,400               15,400  
Preferred stock issued for compensation     -       200,000       200,000  
Impairment of goodwill     -       4,799,965       4,799,965  
                         
Changes in operating assets and liabilities:                        
  Accounts receivable     (77,065 )     18,656       (58,409 )
  Inventory     85,954       99,754       185,708  
  Prepaid inventory     3,938       (18,232 )     (14,294 )
  Notes receivable     18,656       (18,656 )     -  
  Deposits     -       5,000       5,000  
  Accounts payable     82,844       (26,356 )     56,488  
  Due to officers     -       (500 )     (500 )
    Net cash used in operations     (143,336 )     1,043       (142,293 )
                         
CASH FLOW FROM INVESTING ACTIVITIES:                        
  Purchase of property and equipment     -               -  
  Cash assumed in reverse merger     -       35       35  
  Net cash used in investing activities     -       35       35  
                         
CASH FLOWS FROM FINANCING ACTIVITIES:                        
  Proceeds from issuance of notes payable     29,982               29,982  
  Proceeds from issuance of notes payable to                        
    related parties     44,190               44,190  
Payments on notes payable     -               -  
Payments on notes payable to related parties     (15,000 )             (15,000 )
Proceeds from issuance of common stock and                        
    warrants     80,000               80,000  
      Net cash provided by financing activities     139,172       -       139,172  
                         
NET CHANGE IN CASH AND CASH EQUIVALENTS     (4,164 )     1,078       (3,086 )
CASH AND CASH EQUIVALENTS, beginning     10,217       (1,078 )     9,139  
  of period                        
CASH AND CASH EQUIVALENTS, end of period   $ 6,053     $ -     $ 6,053