Quarterly report pursuant to sections 13 or 15(d)

Restatements

v2.4.0.6
Restatements
3 Months Ended
Mar. 31, 2012
Text Block [Abstract]  
Restatements

NOTE 10 – RESTATEMENTS

The Company’s consolidated balance sheet has been restated for the three months ended March 31, 2012:

 
a)
To correct the value of the 10 million shares of the Company’s common stock as consideration to Pershing in connection with an Option Agreement. The Company originally recorded the10 million common stock at $0.50 per share based from the recent selling price of the Company’s common stock at a private placement resulting to a value of $5 million and was recognized as a deposit pursuant to the terms of the Option Agreement. However, pursuant to ASC 805-50-30-2 “Business Combinations”, the Company subsequently determined that if the consideration paid is not in the form of cash, the measurement may be based on either (i) the cost which is measured based on the fair value of the consideration given or (ii) the fair value of the assets (or net assets) acquired, whichever is more clearly evident and thus more reliably measurable. The Company determined that the fair value of the net assets acquired was a better indicator thus more reliably measurable than the fair value of the common stock issued. The Company has subsequently determined that such issuance of 10 million shares to Pershing should have been valued at par value and not at $0.50 per share. As a result, the excess of $4,999,000 over the par value previously recorded to deposit should have not been recorded.

 
b)
To correct the calculation of the weighted average common shares calculation for the three months ended March 31, 2012 and for the period from inception (April 30, 2011) to March 31, 2012.
 
   
March 31, 2012
   
Adjustments
   
March 31, 2012
 
   
As Previously Reported
   
To Restate
   
As Restated
 
                         
Consolidated Balance Sheet:
                       
                         
Deposit pursuant to an option agreement
  $ 6,000,000     $ (4,999,000 )  
(a)
    $ 1,001,000  
Total current assets
    10,168,499       (4,999,000 )  
(a)
      5,169,499  
Total assets
    10,493,499       (4,999,000 )  
(a)
      5,494,499  
                               
Total liabilities
    149,260       -       -       149,260  
                                 
Additional paid-in capital
    13,484,108       (4,999,000 )  
(a)
      8,485,108  
Total Stockholders' Equity
    10,344,239       (4,999,000 )  
(a)
      5,345,239  
                                 
For the Three Months Ended March 31, 2012
                               
Consolidated Statement of Operations:
                               
                                 
Net loss
  $ (2,959,879 )   $ -             $ (2,959,879 )
                                 
Weighted average common shares
                               
  Outstanding - Basic and Diluted
    32,894,061       -    
(b)
      30,810,728  
Net loss per common share
                               
  Basic and diluted
    (0.09 )     -    
(b)
      (0.10 )
                                 
For the Period from Inception
                               
  (April 30, 2011) to March 31, 2012
                               
Consolidated Statement of Operations:
                               
                                 
Net loss
  $ (3,069,201 )   $ -             $ (3,069,201 )
                                 
Weighted average common shares
                               
  Outstanding - basic and diluted
    21,623,409       -    
(b)
      15,574,302  
Net loss per common share
                               
  Basic and diluted
    (0.14 )     -    
(b)
      (0.20 )
                                 
For the Three Months Ended March 31, 2012
                               
Consolidated Statement of Cashflows:
                               
                                 
SUPPLEMENTAL DISCLOSURE OF NON-CASH
                               
   INVESTING AND FINANCING ACTIVITIES:
                               
                                 
Issuance of common stock in connection with an option agreement
  $ 5,000,000     $ (4,999,000 )  
(a)
    $ 1,000