NOTE 5 – RESTATEMENT

We restated our financial statements to correct the way we accounted for certain items related to stock based compensation, revenue share expense, and revenue recognition. The full impact of the restatement was reflected in the December 31, 2014 financial statements at the end of the year. The table below reflects the impact on the 2014 period reflected in this report.

The restated Consolidated Statement of Operations and Consolidated Statement of Cash Flows for the three and six months ended June 30, 2014, as applicable, is as follows:

Three months ended June 30, 2014					Previously
Financial Statement	Line Item	Corrected			Stated
Income statement	Revenue		1,426,808			1,454,214
Income statement	Cost of Sales	$	730,140		$	540,048
Income statement	Operating expenses		896,529			967,070
Income statement	Loss from operations	$	(199,861	)	$	(52,904	)
Income statement	Loss before income taxes	$	(199,638	)	$	(52,681	)
Income statement	Net loss	$	(199,638	)	$	(52,681	)

Six months ended June 30, 2014					Previously
Financial Statement	Line Item	Corrected			Stated
Income statement	Revenue		2,716,236			2,771,560
Income statement	Cost of Sales	$	1,291,551		$	1,038,858
Income statement	Operating expenses		2,386,747			2,439,028
Income statement	Loss from operations	$	(962,062	)	$	(706,326	)
Income statement	Loss before income taxes	$	(961,733	)	$	(705,996	)
Income statement	Net loss	$	(961,733	)	$	(705,996	)
Statement of cash flows	Net loss	$	(961,733	)	$	(705,996	)
Statement of cash flows	Stock and options issued for services	$	627,344		$	654,634
Statement of cash flows	Increase in accounts payable	$	203,714		$	173,889
Statement of cash flows	Decrease in revenue share payable	$	(311,776	)	$	(686,760	)
Statement of cash flows	Increase in deferred revenue	$	19,651		$	38,656