Annual report pursuant to Section 13 and 15(d)

Note 22 - Prior Year Restatement

v3.5.0.2
Note 22 - Prior Year Restatement
12 Months Ended
Dec. 31, 2015
Accounting Changes and Error Corrections [Abstract]  
Accounting Changes and Error Corrections [Text Block]
Note 22       – Prior Year Restatement

In connection with completing the consolidated financial statements as of December 31, 2015, the Company identified that prior to the 2014 recapitalization, personal shares of common stock had been granted by the Founder and CEO to various employees and contractors for services provided to the Company.  The shares have a grant date of September 20, 2014 and vest over a period of four years.  The corresponding 2014 and 2015 expense will be reflected within the 2015 Company’s Consolidated Statements of Operations.

In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality (“SAB 99”) and Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company has determined that the impact of adjustments relating to the corrections of this accounting error are not material to previously issued annual audited and unaudited consolidated financial statements.  Accordingly, these changes are disclosed herein and will be disclosed prospectively.

As a result of the aforementioned correction of accounting errors, the relevant quarterly and annual financial statements have been restated as follows (all amounts in $USD except per share data):

Item
 
As of
September 30, 2014 as
Previously Reported
   
As of
September 30, 2014
as Corrected
   
Difference
Increase
(Decrease)
 
Current Assets
   
6,238,952
     
6,238,952
     
-
 
Current Liabilities
   
2,175,634
     
2,175,634
     
-
 
Working Capital
   
4,063,318
     
4,063,318
     
-
 
Total Assets
   
6,498,465
     
6,498,465
     
-
 
Long Term Liabilities
   
245,756
     
245,756
     
-
 
Total Liabilities
   
2,421,390
     
2,421,390
     
-
 
Total Equity
   
4,077,075
     
4,077,075
     
-
 

Item
 
As of
December 31, 2014 as
Previously Reported
   
As of
December 31, 2014
as Corrected
   
Difference
Increase
(Decrease)
 
Current Assets
   
6,594,456
     
6,594,456
     
-
 
Current Liabilities
   
2,001,869
     
2,001,869
     
-
 
Working Capital
   
4,592,587
     
4,592,587
     
-
 
Total Assets
   
6,884,147
     
6,884,147
     
-
 
Long Term Liabilities
   
249,979
     
249,979
     
-
 
Total Liabilities
   
2,251,848
     
2,251,848
     
-
 
Total Equity
   
4,632,299
     
4,632,299
     
-
 

Item
 
As of
March 31, 2015 as
Previously Reported
   
As of
March 31, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Current Assets
   
4,862,542
     
4,862,542
     
-
 
Current Liabilities
   
2,566,956
     
2,566,956
     
-
 
Working Capital
   
2,295,586
     
2,295,586
     
-
 
Total Assets
   
14,906,830
     
14,906,830
     
-
 
Long Term Liabilities
   
4,368,495
     
4,368,495
     
-
 
Total Liabilities
   
6,935,451
     
6,935,451
     
-
 
Total Equity
   
7,971,379
     
7,971,379
     
-
 

Item
 
As of
June 30, 2015 as
Previously Reported
   
As of
June 30, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Current Assets
   
3,707,612
     
3,707,612
     
-
 
Current Liabilities
   
3,073,374
     
3,073,374
     
-
 
Working Capital
   
634,238
     
634,238
     
-
 
Total Assets
   
13,700,149
     
13,700,149
     
-
 
Long-Term Liabilities
   
690,203
     
690,203
     
-
 
Total Liabilities
   
3,763,577
     
3,763,577
     
-
 
Total Equity
   
9,936,572
     
9,936,572
     
-
 

Item
 
As of
September 30, 2015 as
Previously Reported
   
As of
September 30, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Current Assets
   
11,626,581
     
11,626,581
     
-
 
Current Liabilities
   
3,289,524
     
3,289,524
     
-
 
Working Capital
   
8,337,057
     
8,337,057
     
-
 
Total Assets
   
21,411,714
     
21,411,714
     
-
 
Long-Term Liabilities
   
13,026,037
     
13,026,037
     
-
 
Total Liabilities
   
16,315,561
     
16,315,561
     
-
 
Total Deficit
   
(5,181,709
)
   
(5,181,709
)
   
-
 

Item
 
Quarter Ended
September 30, 2014
as Previously Reported
   
Quarter Ended
September 30, 2014
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
2,709,066
     
2,709,066
     
-
 
Cost of revenues
   
1,713,409
     
1,713,409
     
-
 
Gross margin
   
995,657
     
995,657
     
-
 
Operating expenses
   
874,389
     
1,038,358
     
163,969
 
Income (loss) from operations
   
121,268
     
(42,701
)
   
(163,969
)
Other expense
   
(81,934
)
   
(81,934
)
   
-
 
Income (loss) before tax expense
   
39,334
     
(124,635
)
   
(163,969
)
Net income (loss)
   
31,589
     
(132,380
)
   
(163,969
)
Basic EPS
   
-
     
-
     
-
 
Diluted EPS
   
-
     
-
     
-
 

Item
 
Year-to-date
September 30, 2014
as Previously Reported
   
Year-to-date
September 30, 2014
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
8,299,053
     
8,299,053
     
-
 
Cost of revenues
   
4,952,021
     
4,952,021
     
-
 
Gross margin
   
3,347,032
     
3,347,032
     
-
 
Operating expenses
   
2,504,776
     
2,668,745
     
163,969
 
Income from operations
   
842,256
     
678,287
     
(163,969
)
Other expense
   
(163,371
)
   
(163,371
)
   
-
 
Income before tax expense
   
678,885
     
514,916
     
(163,969
)
Net income
   
731,007
     
567,038
     
(163,969
)
Basic EPS
   
0.02
     
0.02
     
-
 
Diluted EPS
   
0.02
     
0.02
     
-
 

Item
 
Quarter Ended
December 31, 2014
as Previously Reported
   
Year Ended
December 31, 2014
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
3,498,760
     
3,498,760
     
-
 
Cost of revenues
   
2,473,836
     
2,473,836
     
-
 
Gross margin
   
1,024,924
     
1,024,924
     
-
 
Operating expenses
   
1,373,299
     
1,563,739
     
190,440
 
Loss from operations
   
(348,375
)
   
(538,815
)
   
(190,440
)
Other expense
   
(21,200
)
   
(21,200
)
   
-
 
Loss before tax benefit
   
(369,575
)
   
(560,015
)
   
(190,440
)
Net loss
   
(260,442
)
   
(450,882
)
   
(190,440
)
Basic EPS
   
(0.01
)
   
(0.01
)
   
-
 
Diluted EPS
   
(0.01
)
   
(0.01
)
   
-
 

Item
 
Year-to-date
December 31, 2014
as Previously Reported
   
Year-to-date
December 31, 2014
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
11,797,813
     
11,797,813
     
-
 
Cost of revenues
   
7,425,857
     
7,425,857
     
-
 
Gross margin
   
4,371,956
     
4,371,956
     
-
 
Operating expenses
   
3,878,075
     
4,232,484
     
354,409
 
Income from operations
   
493,881
     
139,472
     
(354,409
)
Other expense
   
(184,571
)
   
(184,571
)
   
-
 
Income before tax expense
   
309,310
     
(45,099
)
   
(354,409
)
Net income
   
470,565
     
116,156
     
(354,409
)
Basic EPS
   
0.01
     
0.01
     
-
 
Diluted EPS
   
0.01
     
0.01
     
-
 

Item
 
Quarter Ended
March 31, 2015
as Previously Reported
   
Quarter Ended
March 31, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
3,275,585
     
3,275,585
     
-
 
Cost of revenues
   
1,903,828
     
1,903,828
     
-
 
Gross margin
   
1,371,757
     
1,371,757
     
-
 
Operating expenses
   
1,900,615
     
2,082,247
     
181,632
 
Loss from operations
   
(528,858
)
   
(710,490
)
   
(181,632
)
Other expense
   
(33,004
)
   
(33,004
)
   
-
 
Loss before tax benefit
   
(561,862
)
   
(743,494
)
   
(181,632
)
Net loss
   
(379,445
)
   
(561,077
)
   
(181,632
)
Basic EPS
   
(0.01
)
   
(0.01
)
   
-
 
Diluted EPS
   
(0.01
)
   
(0.01
)
   
-
 

Item
 
Quarter Ended
June 30, 2015
as Previously Reported
   
Quarter Ended
June 30, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
3,220,343
     
3,220,343
     
-
 
Cost of revenues
   
2,041,679
     
2,041,679
     
-
 
Gross margin
   
1,178,664
     
1,178,664
     
-
 
Operating expenses
   
3,064,487
     
3,175,577
     
111,090
 
Loss from operations
   
(1,885,823
)
   
(1,996,913
)
   
(111,090
)
Other expense
   
(148,024
)
   
(148,024
)
   
-
 
Loss before tax benefit
   
(2,033,847
)
   
(2,144,937
)
   
(111,090
)
Net loss
   
(1,762,637
)
   
(1,873,727
)
   
(111,090
)
Basic EPS
   
(0.02
)
   
(0.02
)
   
-
 
Diluted EPS
   
(0.02
)
   
(0.02
)
   
-
 

Item
 
Year-to-date
June 30, 2015
as Previously Reported
   
Year-to-date
June 30, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
6,495,928
     
6,495,928
     
-
 
Cost of revenues
   
3,945,507
     
3,945,507
     
-
 
Gross margin
   
2,550,421
     
2,550,421
     
-
 
Operating expenses
   
4,965,102
     
5,257,824
     
292,722
 
Loss from operations
   
(2,414,681
)
   
(2,707,403
)
   
(292,722
)
Other expense
   
(181,028
)
   
(181,028
)
   
-
 
Loss before tax benefit
   
(2,595,709
)
   
(2,888,431
)
   
(292,722
)
Net loss
   
(2,142,082
)
   
(2,434,804
)
   
(292,722
)
Basic EPS
   
(0.04
)
   
(0.04
)
   
-
 
Diluted EPS
   
(0.04
)
   
(0.04
)
   
-
 

Item
 
Quarter Ended
September, 30 2015
as Previously Reported
   
Quarter Ended
September 30, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
3,115,726
     
3,115,726
     
-
 
Cost of revenues
   
1,857,173
     
1,857,173
     
-
 
Gross margin
   
1,258,553
     
1,258,553
     
-
 
Operating expenses
   
3,194,060
     
3,298,985
     
104,925
 
Loss from operations
   
(1,935,507
)
   
(2,040,432
)
   
(104,925
)
Other expense
   
(4,479,676
)
   
(4,479,676
)
   
-
 
Loss before tax benefit
   
(6,415,183
)
   
(6,520,108
)
   
(104,925
)
Net loss
   
(6,408,718
)
   
(6,513,643
)
   
(104,925
)
Basic EPS
   
(0.22
)
   
(0.22
)
   
-
 
Diluted EPS
   
(0.22
)
   
(0.22
)
   
-
 

Item
 
Year-to-date
September 30, 2015
as Previously Reported
   
Year-to-date
September 30, 2015
as Corrected
   
Difference
Increase
(Decrease)
 
Revenues
   
9,611,654
     
9,611,654
     
-
 
Cost of revenues
   
5,802,680
     
5,802,680
     
-
 
Gross margin
   
3,808,974
     
3,808,974
     
-
 
Operating expenses
   
8,159,162
     
8,556,809
     
397,647
 
Loss from operations
   
(4,350,188
)
   
(4,747,835
)
   
(397,647
)
Other expense
   
(4,660,704
)
   
(4,660,704
)
   
-
 
Loss before tax benefit
   
(9,010,892
)
   
(9,408,539
)
   
(397,647
)
Net loss
   
(8,550,800
)
   
(8,948,447
)
   
(397,647
)
Basic EPS
   
(0.25
)
   
(0.25
)
   
-
 
Diluted EPS
   
(0.25
)
   
(0.25
)
   
-