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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 determined that the total amount of $70,000 as a result of a consulting service provided to a Company’s shareholder, LionGene Corporation (see Note 6) should be recorded as additional paid-in capital as of December 31, 2016 since the Company and LionGene Corporation are related parties and under common control by a controlling beneficiary shareholder of YuanGene Corporation, and should be treated as the correction of error as of December 31, 2016.

 

The Company restated the consolidated financial statements as of December 31, 2016 and for the three-month period then ended. The item Additional paid-in-capital adjusted up with $70,000 while the Accumulated deficit adjusted down with ($70,000). Revenues, gross profit, net loss from operations, loss from continuing operations before income taxes, and net loss were also adjusted on the Statement of Operations accordingly. Net loss from continuing operations, net cash used in operating activities, capital contribution form related parties under common control, and net cash provided by financing activities were also adjusted on the statements of cash flows accordingly.

 

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 three months ended December 31, 2016,

 

ITEMS

 

  As of and for the Period Ended 
December 31, 2016		  
    Previously  Reported     Adjustments     Restated  
                   
Consolidated Balance Sheets                  
Additional paid-in-capital     4,733,461       70,000       4,803,461  
Accumulated deficit     (11,463,738 )     (70,000 )     (11,533,738 )
                         
Consolidated Statements of Operations                        
Revenues     70,000       (70,000 )     -  
Gross profit     70,000       (70,000 )     -  
Net loss from operations     (140,386 )     (70,000 )     (210,386 )
Loss from continuing operations before income taxes     (140,337 )     (70,000 )     (210,337 )
Net loss     (140,337 )     (70,000 )     (210,337 )
                         
Consolidated Statements of Cash Flow                        
Cash flows from operating activities                        
Net loss from continuing operations     (140,337 )     (70,000 )     (210,337 )
Net cash used in operating activities     (154,892 )     (70,000 )     (224,892 )
Cash flows from financing activities                        
Capital contribution from related parties under common control     -       70,000       70,000  
Net cash provided by financing activities     -       70,000       70,000  

 

As a result of the restatement of the consolidated balance sheets as of December 31, 2016, additional paid-in capital was increased by $70,000 and changed from $4,733,461 to $4,803,461. Accumulated deficit was increased by $70,000 and changed from $(11,463,738) to $(11,533,738).

 

As a result of the restatement of the consolidated statements of operations for the three months ended December 31, 2016, revenues were decreased by $70,000 and changed from $70,000 to $0. Gross profit was decreased by $70,000 and changed from $70,000 to $0. Net loss from operations was increased by $70,000 and changed from $(140,386) to $(210,386). Loss from continuing operations before income taxes was increased by $70,000 and changed from $(140,337) to $(210,337). Net loss was increased by $70,000 and changed from $(140,337) to $(210,337). Basic and diluted loss per share were also increased by $(0.00) and changed from $(0.00) to $(0.00).

 

As a result of the restatement of the consolidated statements of cash flow for the three months ended December 31, 2016, Net loss from continuing operations was increased by $70,000 and changed from $(140,337) to $(210,337). Net cash used in operating activities was increased by $70,000 and changed from $(154,892) to $(224,892). Capital contribution from related parties under common control under Cash flows from financing activities was increased by $70,000 and changed from $0 to $70,000. Net cash provided by financing activities was increased by $70,000 and changed from $0 to $70,000.