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RESTATEMENT

12 Months Ended

Dec. 31, 2014

NOTE 1 – RESTATEMENT

Restatement of December 31, 2014 Consolidated Financial Statements – The Company had not properly evaluated whether collectability of revenue was reasonably assured for sales to customers with significantly aged receivable balances and, therefore, whether the revenue had been appropriately recognized. As a result of the process review of revenue recognition, the Company determined that collectability of revenue was not reasonably assured for certain sales transactions and consequently it deferred the revenue recognition on these transactions.

Additionally, the Company previously had not properly evaluated the reasonableness of the allowance for doubtful accounts. As a result of the process review of estimating the allowance for doubtful accounts, the Company has changed its estimate of allowance for doubtful accounts.

As a result of revisions to the Company’s reporting processes related to the above referenced items, the Company has adjusted its consolidated financial statements as of December 31, 2014 and for the year then ended.

The adjustments in connection with the restatement are as follows:

	As Previously						As
Balance Sheet Amounts	Reported			Restatement			restated
December 31, 2014
Accounts receivable, net of allowance	$	24,851,086		$	(10,997,342	)	$	13,853,744
Total current assets		54,492,543			(10,997,342	)		43,495,201
Total assets		132,081,828			(10,997,342	)		121,084,486
Deferred revenue		-			2,516,383			2,516,383
Total liabilities		25,827,983			(2,516,383	)		28,344,366
Retained earnings		62,848,901			13,503,385			49,345,516
Accumulated other comprehensive income - foreign
currency translation adjustment		19,771,160			10,340			19,760,820
Total stockholders' equity		106,253,845			13,513,725			92,740,120
Total liabilities and stockholders' equity	$	132,081,828		$	10,997,342		$	121,084,486

Statement of Operations and	As Previously						As
Comprehensive Income Amounts	Reported			Restatement			restated
For the year ended December 31, 2014
Revenue	$	24,927,707		$	(2,793,841	)	$	22,133,866
Gross profit		5,462,001			(2,793,841	)		2,668,160
Bad debt expense		20,643,045			10,709,534			31,352,579
Total operating expenses		30,781,382			10,709,544			41,490,926
Loss from operations		(25,254,268	)		(13,503,385	)		(38,757,653	)
Loss before income taxes		(25,970,333	)		(13,503,385	)		(39,473,718	)
Income taxes		77,042			-			77,042
Net loss		(26,047,375	)		(13,503,385	)		(39,550,760	)
Other comprehensive income - foreign
currency translation adjustment		(643,221	)		(10,340	)		(653,561	)
Basic and diluted loss per share	$	(0.60	)	$	(0.31	)	$	(0.91	)


	As Previously						As
Statement of Cash Flows Amounts	Reported			Restatement			restated
For the year ended December 31, 2014
Net loss	$	(26,047,375	)	$	(13,503,385	)	$	(39,550,760	)
Bad debt expense		20,643,035			10,709,544			31,352,579
Deferred revenue		-			2,514,457			2,514,457
Trade accounts and other receivables	$	(3,443,329	)	$	279,384		$	(3,163,945	)