2. Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8.03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP applicable for annual financial statements. In the opinion of management, all adjustments (consisting of normal accruals) considered for a fair presentation of the consolidated financial position of the Company as of September 30, 2016 and the consolidated results of its operations and cash flows for the nine months ended September 30, 2016 and September 30, 2015, have been included. The Company has evaluated subsequent events from the balance sheet date through the issuance of these financial statements. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016 or any other interim or future period. The accompanying condensed consolidated financial statements and these notes should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2016.

The Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 includes the impact of the restatement on the applicable unaudited financial information for the nine months ended September 30, 2015. The restatement relates to the overstatement of revenue on one customer contract during the three months ended June 30, 2015 which was identified by the Company and corrected in the third quarter of 2015 and had no impact on the statement of operations and cash flows for the year ended December 31, 2015.

The effect of the restatement on previously issued quarterly financial information as of and for the nine months ended September 30, 2015 is set forth as follows:

Condensed Consolidated Statements of Operations (unaudited)

	For the Nine Months ended September 30, 2015
					As Restated in
					this Quarterly
	As Previously		Restatement		Report on Form
	Reported		Adjustments		10-Q
Revenues:
Sale of software	$	474,219	$	(25,000)	$	449,219
Total revenues		1,792,919		(25,000)		1,767,919
Gross profit		1,426,243		(25,000)		1,401,243
Loss from operations		(753,483)		(25,000)		(778,483)
Net loss	$	(1,105,173)	$	(25,000)	$	(1,130,173)

Basic and diluted net loss per share:	$	(0.16)			$	(0.16)

	For the Nine Months ended September 30, 2015
					As Restated in
					this Quarterly
	As Previously		Restatement		Report on Form
	Reported		Adjustments		10-Q
Cash flows from operating activities:
Net loss	$	(1,105,173)	$	(25,000)	$	(1,130,173)
Adjustments to reconcile net loss to net cash Changes in operating assets and liabilities:
Accounts receivable		(191,616)		25,000		(166,616)
Total adjustments		(694,062)		25,000		(669,062)
Net cash used in operating activities	$	(411,111)	$		$	(411,111)

Previously filed Quarterly Reports on Form 10-Q for quarterly periods ended prior to December 31, 2015 have not been and will not be amended.