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Corrections to Previously Issued Consolidated Financial Statements
 12 Months Ended
Sep. 30, 2016
Corrections to Previously Issued Consolidated Financial Statements [Abstract]  
CORRECTIONS TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

2. CORRECTIONS TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

 

The Company discovered that it had erroneously stated that the research and development expenses were understated during the year ended September 30, 2016. Instead, our research and development expenses were $10,000,000 for the year ended September 30, 2016 and were restated in the Adjustments No. 1 column. Moreover, there were typographical errors on Selling, General and Administration expenses which were corrected in the Adjustments No. 2 column. For the year ended September 30, 2015, the Net cash used in the operating activities was mistyped from $(715) to $(517) and was corrected in this restatement.

 

The following tables present the effect of the corrections discussed above and other adjustments on selected line items of our previously reported consolidated financial statements as of and for the year ended September 30, 2016,

 

  Previously 
Reported on Form 10K		  Adjustments No.1  Adjustments No.2  Restated 
             
Consolidated Balance Sheet            
As of September 30, 2016            
Due to related party  -   6,500,000   -   6,500,000 
Total Liabilities  56,470   6,500,000   -   6,556,470 
Additional paid-in capital  4,733,401   -   60   4,733,461 
Accumulated deficit  (4,823,401)  (6,500,000)  -   (11,323,401)
Total equity (deficit)  120,882   (6,500,000)  -   (6,379,118)
                 
Consolidated Statements of Operations and Comprehensive Loss                
For the year ended September 30, 2016                
Selling, general and administrative expenses  4,497,263   (3,500,060)  60   997,263 
Research and development expenses  -   10,000,000   -   10,000,000 
Net loss from operations  (4,497,295)  (6,499,940)  (60)  (10,997,295)
Loss from continuing operations before income taxes  (4,506,963)  (6,499,940)  (60)  (11,006,963)
Net Loss  (4,507,799)  (6,499,940)  (60)  (11,007,799)
Basic and diluted loss per share  (0.00)  (0.06)  (0.00)  (0.06)
                 

Consolidated Statements of Cash Flow

For the year ended September 30, 2016

                
Net loss from continuing operations  (4,507,799)  (6,499,940)  (60)  (11,007,799)
Issuance of common stock for compensation  1,295,324   (60)  60   1,295,324 
(Decrease) increase in due to related party  (22,517)  6,500,000       6,477,483 
                 
Consolidated Statements of Cash Flow                
For the year ended September 30, 2015                
Net cash used in operating activities  (517)  -   (198)  (715)

 

As a result of the restatement of the consolidated balance sheets as of September 30, 2016, Due to related party and Total liabilities were increased by $6,500,000; changed from $0 to $6,500,000 and from $56,470 to $6,556,470. Additional paid in capital was increased by $60 and changed from $4,733,401 to $4,733,461. Accumulated deficit was increased by $6,500,000 and changed from $(4,823,401) to $(11,323,401). Total equity (deficit) was decreased by $6,500,000 and changed from $120,882 to $(6,379,118).

 

As a result of the restatement of the consolidated statements of operations and comprehensive loss for the year ended September 30, 2016, Selling, general and administrative expenses were decreased by $3,500,000 and changed from $4,497,263 to $997,263. Research and development expenses were increased by $10,000,000 and changed from $0 to $10,000,000. Net loss from operations was increased by $6,500,000 and changed from $(4,497,295) to $(10,997,295) Loss from continuing operations before taxes was increased by $6,500,000 and changed from $(4,506,963) to $(11,006,963). Net loss was increased by $6,500,000 and changed from $(4,507,799) to $(11,007,799). Basic and diluted loss per share were also increased by 0.06 and changed from $0 to $(0.06).

 

As a result of the restatement of the consolidated statements of cash flow for the year ended September 30, 2016, Net loss from continuing operations was increased by $6,500,000; changed from $(4,507,799) to $(11,007,799). Issuance of common stock for compensation did not have changes and stated as $1,295,324. (Decrease) increase in due to related party was increased by $6,500,000 and changed from $(22,517) to $6,477,483. There were no changes in Net cash used in operating activities.

 

As a result of the restatement of the consolidated statements of cash flow for the year ended September 30, 2015, Net cash used in operating activities was increased by $198 and changed from $(517) to $(715).