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RESTATEMENT OF SEP30,2015

9 Months Ended

Sep. 30, 2015

RESTATEMENTOF SEP 30,2015

RESTATEMENT of september 30, 2015

NOTE 1 – RESTATEMENT

Restatement of September 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 September 30, 2015 and for the nine months then ended. The adjustments were as follows:

	As Previously						As
Balance Sheet Amounts	Reported			Restatement			restated
September 30, 2015
Accounts receivable, net of allowance	$	11,779,405		$	(3,759,533	)	$	8,019,872
Total current assets		39,857,891			(3,759,533	)		36,098,358
Total assets		112,683,073			8,401,413			121,084,486
Deferred revenue		-			2,431,114			2,431,114
Total liabilities		25,869,225			(2,431,114	)		28,300,339
Retained earnings		46,610,873			6,422,928			40,187,945
Accumulated other comprehensive income - foreign
currency translation adjustment		16,569,191			(232,281	)		16,801,472
Total stockholders' equity		86,813,848			6,190,647			80,623,201
Total liabilities and stockholders' equity	$	112,683,073		$	3,759,533		$	108,923,540

Statement of Operations and	As Previously						As
Comprehensive Income Amounts	Reported			Restatement			restated
For the nine months ended September 30, 2015
Bad debt expense	$	13,125,809		$	(7,080,457	)	$	6,045,352
Total operating expenses		18,339,345			(7,080,457	)		11,258,888
Loss from operations		(15,358,362	)		7,080,457			(8,277,905	)
Loss before income taxes		(16,180,410	)		7,080,457			(9,099,953	)
Net loss		(16,238,028	)		7,080,457			(9,157,571	)
Other comprehensive income - foreign
currency translation adjustment		(3,201,969	)		242,621			(2,959,348	)
Basic and diluted loss per share	$	(0.37	)		0.16		$	(0.21	)


	As Previously						As
Statement of Cash Flows Amounts	Reported			Restatement			restated
For the nine months ended September 30, 2015
Net loss	$	(16,238,028	)		7,080,457		$	(9,157,571	)
Bad debt expense		13,125,809			(7,080,457	)		6,045,352