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Corrections to Previously Issued Consolidated Financial Statements
 3 Months Ended
Dec. 31, 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 there was a delay of accrual for the two payments in total of $10,000,000 as set forth in the Collaborative Agreement: 1) 3.5% of total payment related to the upfront payment shall be made upon the execution of the Collaborative Agreement; and 2) 6.5% of the total payment shall be made upon the first IND submission (which was submitted in March 2016). It had erroneously stated that the research and development expenses were $0 and $0 for the three and six months ended March 31, 2016. Instead, our research and development expenses were $6,500,000 and $10,000,000 for the three and six months ended March 31, 2016.

 

The Company restated the consolidated financial statements for December 31, 2016 as a consequence of the carryover changes from the year ended September 30, 2016. The item Additional paid-in-capital adjusted up with $60 while the Accumulated deficit adjusted down with ($60). The change of the following items offset each other and no other items in the consolidated balance sheet have been changed.

 

ITEMS   As of and for the Period Ended 
December 31, 2016		  
    Previously 
Reported		     Adjustments     Restated  
                   
Consolidated Balance Sheets                  
Additional paid-in-capital     4,733,401       60       4,733,461  
Accumulated deficit     (11,463,678 )     (60 )     (11,463,738 )

 

The Company discovered that it had erroneously stated that the research and development expenses were understated during the year ended September 30, 2016. Corrections had been made and there were some changes in the liabilities and shareholders’ equity item of the consolidated balance sheet.

 

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 September 30, 2016,

 

ITEMS  

As of and for the Year Ended 
September 30, 2016

  
    Previously 
Reported		     Adjustments     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 )

 

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).