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RESTATEMENT

3 Months Ended

Mar. 31, 2015

NOTE 1 – RESTATEMENT

Restatement of March 31, 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 March 31, 2015 and for the three months then ended. The adjustments were as follows:

	As Previously						As
Balance Sheet Amounts	Reported			Restatement			restated
March 31, 2015
Accounts receivable, net of allowance	$	18,806,377		$	(7,128,548	)	$	11,677,829
Total current assets		48,109,049			(7,128,548	)		40,980,501
Total assets		125,163,673			(7,128,548	)		118,035,125
Deferred revenue		-			3,179,390			3,179,390
Total liabilities		26,397,205			(3,179,390	)		29,576,595
Retained earnings		54,874,958			10,246,017			44,628,941
Accumulated other comprehensive income - foreign
currency translation adjustment		20,257,726			61,921			20,195,805
Total stockholders' equity		98,766,468			10,307,938			88,458,530
Total liabilities and stockholders' equity	$	125,163,673		$	7,128,548		$	118,035,125

Statement of Operations and	As Previously						As
Comprehensive Income Amounts	Reported			Restatement			restated
For the three months ended March 31, 2015
Bad debt expense		7,104,656			(3,904,653	)		3,200,003
Total operating expenses		8,726,866			(3,904,653	)		4,822,213
Loss from operations		(7,667,739	)		3,904,653			(3,763,086	)
Loss before income taxes		(7,954,659	)		3,904,653			(4,050,006	)
Net loss		(7,973,943	)		3,904,653			(4,069,290	)
Other comprehensive income - foreign
currency translation adjustment		486,566			(51,086	)		435,480
Basic and diluted loss per share	$	(0.18	)		0.09		$	(0.09	)


	As Previously						As
Statement of Cash Flows Amounts	Reported			Restatement			restated
For the three months ended March 31, 2015
Net loss	$	(7,973,943	)		3,904,653		$	(4,069,290	)
Bad debt expense		7,104,656			(3,904,653	)		3,200,003