| Restatements | NOTE 7 RESTATEMENT The Companys consolidated
financial statements have been restated as of March 31, 2015 and for the three and six months ended March 31, 2015. In preparing
the Companys Form 10-Q for the period ended June 30, 2015, it was determined that the information contained in the Companys
previously filed 10-Q for the period ended March 31, 2015 resulted in a material misstatement of financial results due to accounting
error. Accordingly, the Companys consolidated balance sheet as of March 31, 2014 and the Companys consolidated statement
of operation and comprehensive income (loss) for the three and six months ended March 31, 2014, have been restated herein. The effect of correcting this
error in the Companys consolidated balance sheet and statement of operations as of March 31, 2015 and for the three and
six months ended March 31, 2015 are shown in the following tables: Consolidated Balance Sheet as
of March 31, 2015 (Unaudited)
As
previously reported Adjustments Restated
ASSETS
Current Assets
Cash $ 586,025 $ 251 (1) $ 586,276
Accounts Receivable 0 1,603 (2) 1,603
Deposits and Prepayments 10,000 1,500 (3) 11,500
Total Current Assets 596,025 3,354 599,379
Property Plant & Equipment (net of
depreciation) 12,082 (302) (4) 11,780
Long-Term Investments (Subsidiaries) 0 50,000 (5) 50,000
Intangible Assets 33,677 1,008,532 (6) 1,042,209
TOTAL ASSETS $ 641,784 $ 1,061,584 $ 1,703,368
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Related Party Accounts Payable $ 0 $ 0 $ 0
Accounts Payable 9,275 (5,855) (7) 3,420
Current Portion of long term debt - Related
Party 0 0 0
Total Current Liabilities 9,275 643,965 653,240
Long Term Liabilities 0
Accrued Interest Related Party 0 274 (8) 274
Notes Payable to Related Parties 616,368 33,452 (9) 649,820
Total Long Term Liabilities 616,368 (616,094) 274
Total Liabilities 625,643 27,871 653,514
Stockholder's Equity (Deficit)
Preferred Stock 10,000,000 shares authorized having a par value
of $0.001 per share with no shares issued and outstanding as of March 31, 2015 and September 30, 2014 respectively. 0 0 0
Common Stock 90,000,000 shares authorized having a par value of
$0.001 per share; 11,971,600 issued and outstanding as of March 31, 2015 and 8,968,000 shares issued and outstanding as of
September 30, 2014 8,968 6,029 (10) 14,997
Additional Paid-In Capital 183,875 1,018,972 (11) 1,202,847
Accumulated Deficit $ (176,703) $ 8,713 $ (167,990)
Total Stockholder's Equity $ 16,140 $ 1,033,714 $ 1,049,854
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 641,784 $ 1,061,584 $ 1,703,368 Footnotes to Consolidated and
Adjusted Balance Sheet as of March 31, 2015: (1) The cash
balance was misstated by $251 due to an accounting error. (2) Accounts
receivable was misstated by $1,603 due to the receivable from our ATM service was booked in April when the statement was received
rather than in March when the income was earned. (3) We prepaid
our ATM service provider $1,500 for the month of April and booked that as an expense when the expense should have been booked
in April. (4) We booked
depreciation expense of $302 which was not reflected in our prior report. (5) On January
5, 2015, we acquired a 30% interest in Las Vegas Cannabis Info Center as disclosed on our Form 8-K dated January 6, 2015. The
journal entry for that acquisition omitted from accounting system for the Company which affected items on both the income statement
and balance sheet, including the omission of a $50,000 entry to long-term investments (subsidiaries). The journal entry for the
transaction is as follows:
Debit Credit
Long-Term Investment Ownership Interest LVCIC 50,000
Capital Stock 25
Paid In Capital 24,975
Note, related party 25,000 (6) On January
5, 2015, we acquired hempcoin assets and intellectual property, including 2,300,000,000 units of the crypto currency hempcoin
(HMP) as disclosed on our Form 8-K dated January 6, 2015. The journal entry for that acquisition omitted from accounting system
for the Company which affected items on both the income statement and balance sheet, including the omission of a $50,000 entry
to long-term investments (subsidiaries). The journal entry for the transaction is as follows:
Debit Credit
Hemp Coin Assets 1,000,000
Capital Stock 3,000
Paid In Capital 997,000 (7) Accounts
payable was misstated by $5,855, primarily as a result of intercompany accounting coordination with its parent company, Weed Growth
Fund, Inc. (8) Accrued
interest related party was misstated by $274 due to an accounting error. (9) Note
payable to related party was misstated by $33,452 as a result of payments made on behalf of the Company by its parent company.
Moreover, the Original Form 10-Q indicated that the Company received a Loan from its parent in the amount of $575,000, when in
fact, that money was a loan to the Company resulting in a change to the sub-account classification, but still appearing in Notes
Payable to Related Parties. (10) Capital
Stock was adjusted by 6,029 to reflect the actual amount of outstanding shares of common stock. (11) Additional
Paid-in Capital was adjusted by 1,018,972 as a result of the foregoing adjustments. Consolidated Statement of Operations:
For
the Three Months Ended March
31, 2015 (Unaudited) For
the Six Months Ended March
31, 2015 (Unaudited)
As
Previously As
Previously
Reported Adjustments Restated Reported Adjustment Restated
Revenue $ 5,870 $ (1,044) (a) $ 4,826 $ 10,277 $ (1,045) $ 9,232
Total Revenue 5,870 (1,044) 4,826 10,277 (1,045) 9,232
Operating Expenses
General and Administrative 10,691 8,860 (b) 19,551 23,190 6,656 29,846
Depreciation 0 302 (c) 302 0 302 302
Service, related party 4,500 4,500 6,703 272 6,975
Total Operating Expense 15,191 9,163 24,354 29,893 7,230 37,123
Operating Loss (9,321) (10,206) (19,527) (19,616) (8,275) (27,891)
Interest Expense, finance of
ATMs 0 0 0 0
Interest Expense, related party 0 274 (d) 274 0 271 271
Net Loss $ (9,321) $ (10,480) $ (19,801) $ (19,616) $ (8,546) $ (28,162)
Loss per Common Share - Basic
& Diluted $ (0.01) $ $ (0.01) $ (0.01) $ $ (0.01)
Weighted Average Shares Outstanding
- Basic and Diluted 14,971,600
14,971,600
14,971,600
14,971,600
Footnotes to Consolidated and
Adjusted Statement of Operations: (a) Adjustment to properly match
income with the period it was earned. (b) Adjustment resulting from
expenses paid for by the Companys parent, Weed Growth Fund, Inc. which were properly allocable to the Company. (c) Adjustment to book depreciation
expense. (d) Adjustment to book interest
expense associated with related party loans. |
