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RESTATEMENT

6 Months Ended

Jun. 30, 2015

NOTE 1 – RESTATEMENT

Restatement of June 30, 2015 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 revenue 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 June 30, 2015 and for the six months then ended. The adjustments were as follows:

	As Previously						As
Balance Sheet Amounts	Reported			Restatement			restated
June 30, 2015
Accounts receivable, net of allowance	$	17,175,376		$	(5,823,769	)	$	11,351,607
Total current assets		44,348,339			(5,823,769	)		38,524,570
Total assets		121,236,142			(5,823,769	)		115,412,373
Deferred revenue		-			2,536,923			2,536,923
Total liabilities		26,236,179			(2,536,923	)		28,773,102
Retained earnings		50,759,606			8,260,711			42,498,895
Accumulated other comprehensive income - foreign
currency translation adjustment		20,606,573			99,981			20,506,592
Total stockholders' equity		94,999,963			8,360,692			86,639,271
Total liabilities and stockholders' equity	$	121,236,142		$	5,823,769		$	115,412,373

Statement of Operations and	As Previously						As
Comprehensive Income Amounts	Reported			Restatement			restated
For the six months ended June 30, 2015
Bad debt expense		9,206,214			(5,242,674	)		3,963,540
Total operating expenses		12,474,763			(5,242,674	)		7,232,089
Loss from operations		(11,471,463	)		5,242,674			(6,228,789	)
Loss before income taxes		(12,050,583	)		5,242,674			(6,807,909	)
Net loss		(12,089,295	)		5,242,674			(6,846,621	)
Other comprehensive income - foreign
currency translation adjustment		835,413			(89,641	)		745,772
Basic and diluted loss per share	$	(0.28	)		0.12		$	(0.16	)


	As Previously						As
Statement of Cash Flows Amounts	Reported			Restatement			restated
For the six months ended June 30, 2015
Net loss	$	(12,089,295	)		5,242,674		$	(6,846,621	)
Bad debt expense		9,206,214			(5,242,674	)		3,963,540