| Schedule of Adjustment in Financial Statements |
The revised principal balances on
these notes resulted in following adjustments;
Convertible notes
| | |
Adjustment |
| Settled notes | |
$ | (400,000 | ) |
| Debt discount of settled notes | |
| 144,657 | |
| New assigned notes | |
| 590,082 | |
| Debt discount of new assigned notes | |
| (522,759 | ) |
| | |
$ | (188,020 | ) |
Accrued interest
| | |
Adjustment |
| Settled accrued interest | |
$ | (23,787 | ) |
| Accrued interest from new assigned notes | |
| 4,937 | |
| | |
$ | (18,850 | ) |
Interest expense and amortization
of debt discount
| | |
Adjustment |
| Amortization of settled notes | |
$ | 144,657 | |
| Amortization of new assigned notes | |
| 67,323 | |
| Interest expense from new assigned notes | |
| 4,937 | |
| | |
$ | 216,917 | |
Derivative liabilities
| | |
Adjustment |
| Derivative liabilities from settled notes | |
$ | (1,202,512 | ) |
| Derivative liabilities from new assigned notes | |
| 1,688,499 | |
| | |
$ | 485,987 | |
Change in fair value of derivative
| | |
Adjustment |
| Gain on change in fair value of derivative from settled notes | |
$ | 1,202,512 | |
| Loss on change in fair value of derivative from new assigned notes | |
| (82,872 | ) |
| Day 1 loss from new assigned notes | |
| (1,015,545 | ) |
| | |
$ | 104,095 |
|
| Schedule of Restated Financial Statement Balances |
Except as described above, the Amendment
does not modify any other disclosures presented in, or exhibits to, the Original Filing in any way.
| | |
March 31, 2019 (Unaudited as Filed) | |
March 31, 2019 (Adjustments) | |
March 31, 2019 (Unaudited and Restated) |
| Balance Sheet | |
| |
|
| Other current assets | |
$ | 51 | | |
$ | (51 | ) | |
$ | — | |
| Total assets | |
| 1,485,637 | | |
| (51 | ) | |
| 1,485,586 | |
| | |
| | | |
| | | |
| | |
| Accrued interest | |
| 26,813 | | |
| (18,850 | ) | |
| 7,963 | |
| Derivative liabilities | |
| 1,559,814 | | |
| 485,987 | | |
| 2,045,801 | |
| Convertible notes payable | |
| 292,709 | | |
| (188,020 | ) | |
| 104,689 | |
| Total liabilities | |
| 4,591,628 | | |
| 279,119 | | |
| 4,870,747 | |
| | |
| | | |
| | | |
| | |
| Accumulated deficit | |
| (5,302,562 | ) | |
| (279,168 | ) | |
| (5,581,732 | ) |
| Total shareholders' deficit | |
$ | (2,566,707 | ) | |
$ | (279,168 | ) | |
$ | (2,845,877 | ) |
| | |
March 31, 2019 (Unaudited as Filed) | |
March 31, 2019 (Adjustments) | |
March 31, 2019 (Unaudited and Restated) |
| Statements of Operations (Unaudited) | |
| |
|
| General and administrative expense | |
$ | 103,161 | | |
$ | 51 | | |
$ | 103,212 | |
| Total operating expenses | |
| 131,626 | | |
| 51 | | |
| 131,677 | |
| Interest expense and amortization of debt discount | |
| (804,507 | ) | |
| (216,917 | ) | |
| (1,021,424 | ) |
| Change in fair value of derivative liability | |
| (418,664 | ) | |
| 104,095 | | |
| (314,569 | ) |
| Loss on extinguishment of debt | |
| (32,108 | ) | |
| (166,295 | ) | |
| (198,403 | ) |
| Total other expenses | |
| (1,261,468 | ) | |
| (279,117 | ) | |
| (1,540,585 | ) |
| NET LOSS | |
$ | (1,819,106 | ) | |
$ | (279,168 | ) | |
$ | (2,098,274 | ) |
| | |
March 31, 2019 (Unaudited as Filed) | |
March 31, 2019 (Adjustments) | |
March 31, 2019 (Unaudited and Restated) |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | | |
| | | |
| | |
| Net Loss | |
$ | (1,819,106 | ) | |
$ | (279,168 | ) | |
$ | (2,098,274 | ) |
| Adjustment to reconcile net income (loss) to net cash provided operating activities: | |
| | | |
| | | |
| | |
| (Gain) loss on extinguishment of debt | |
| 32,108 | | |
| 166,295 | | |
| 198,403 | |
| Amortization of debt discount | |
| 555,717 | | |
| 211,980 | | |
| 767,697 | |
| (Gain) loss in fair value of derivative | |
| 418,664 | | |
| (104,095 | ) | |
| 314,569 | |
| Write-off of other current asset | |
| — | | |
| 51 | | |
| 51 | |
| Change in operating assets and liabilities: | |
| | | |
| | | |
| | |
| Accrued interest | |
| 8,956 | | |
| 4,937 | | |
| 13,893 | |
| Net cash used in operating activities | |
$ | (95,805 | ) | |
$ | — | | |
$ | (95,805 | ) |
|