Note 3 - Restatement | The Company is restated its December 31, 2015 financial statements and is restating the interim financial statements for the three months ended March 31, 2016, the six months ended June 30, 2016 and nine months ended September 30, 2016 in order to account for embedded derivatives within the Redwood Notes, rather than beneficial conversion feature discounts. The financial statements will be restated prospectively during 2017. The Company determined that it had not properly recognized embedded derivative liabilities within the Redwood Notes that originated on various dates between December 28, 2015 and May 27, 2016. The Company has recognized a derivative liability in lieu of the previously recognized beneficial conversion feature and the related change in derivative liabilities and amortization of the debt discount expenses have been adjusted to correct this error. The following adjustments were made to the June 30, 2016 Restated Balance Sheet: PREMIER BIOMEDICAL, INC. BALANCE SHEET As Originally Reported As Restated June 30, June 30, 2016 Adjustments 2016 ASSETS Current assets: Cash $ 38,588 $ - $ 38,588 Prepaid expenses 11,545 - 11,545 Total current assets 50,133 - 50,133 Property and equipment, net 6,157 - 6,157 Total assets $ 56,290 $ - $ 56,290 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 143,703 $ - $ 143,703 Accounts payable, related parties 51,298 - 51,298 Accrued interest 22,079 - 22,079 Accrued interest, related parties 2,370 - 2,370 Judgment payable 340,647 - 340,647 Convertible notes payable, net of discounts of $334,869 210,548 (27,283 ) 183,265 Notes payable, related parties 30,000 - 30,000 Derivative liabilities - 507,352 507,352 Total current liabilities 800,645 480,069 1,280,714 Total liabilities 800,645 480,069 1,280,714 Commitments and contingencies - - - Stockholders' equity (deficit): Preferred stock, $0.001 par value, 10,000,000 shares authorized, 2,000,000 shares issued and outstanding 2,000 - 2,000 Common stock, $0.00001 par value, 1,000,000,000 shares authorized, 125,714,852 shares issued and outstanding 1,257 - 1,257 Additional paid in capital 11,167,420 (383,637 ) 10,783,783 Accumulated deficit (11,915,032 ) (96,432 ) (12,011,464 ) Total stockholders' equity (deficit) (744,355 ) (480,069 ) (1,224,424 ) Total liabilities and stockholders' equity (deficit) $ 56,290 $ - $ 56,290 The following adjustments were made to the Six Months Ended June 30, 2016 Restated Statement of Operations: PREMIER BIOMEDICAL, INC. STATEMENT OF OPERATIONS As Originally Reported As Restated June 30, June 30, 2016 Adjustments 2016 Revenue $ - $ - $ - Operating expenses: Research and development 59,686 - 59,686 General and administrative 91,466 - 91,466 Professional fees 225,959 - 225,959 Total operating expenses 377,111 - 377,111 Net operating loss (377,111 ) - (377,111 ) Other expense: Interest expense (419,477 ) 10,666 (408,811 ) Other expense (340,647 ) - (340,647 ) Change in derivative liabilities - (87,862 ) (87,862 ) Total other expenses (760,124 ) (77,196 ) (837,320 ) Net loss $ (1,137,235 ) $ (77,196 ) $ (1,214,431 ) The following adjustments were made to the Three Months Ended June 30, 2016 Restated Statement of Operations: PREMIER BIOMEDICAL, INC. STATEMENT OF OPERATIONS As Originally Reported As Restated June 30, June 30, 2016 Adjustments 2016 Revenue $ - $ - $ - Operating expenses: Research and development 49,545 - 49,545 General and administrative 41,981 - 41,981 Professional fees 87,511 - 87,511 Total operating expenses 179,037 - 179,037 Net operating loss (179,037 ) - (179,037 ) Other expense: Interest expense (202,402 ) (33,122 ) (235,524 ) Other expense (340,647 ) - (340,647 ) Change in derivative liabilities - (189,191 ) (189,191 ) Total other expenses (543,049 ) (222,313 ) (765,362 ) Net loss $ (722,086 ) $ (222,313 ) $ (944,399 ) The following adjustments were made to the June 30, 2016 Restated Statement of Cash Flows: PREMIER BIOMEDICAL, INC. STATEMENT OF CASH FLOWS As Originally Reported As Restated June 30, June 30, 2016 Adjustments 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (1,137,235 ) $ (77,196 ) $ (1,214,431 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 1,026 - 1,026 Change in fair market value of derivative liabilities - 87,862 87,862 Amortization of debt discounts 383,229 (10,666 ) 372,563 Stock based compensation, related parties 13,014 - 13,014 Stock based compensation 75,866 - 75,866 Decrease (increase) in assets: Prepaid expenses (2,379 ) - (2,379 ) Increase (decrease) in liabilities: Accounts payable (44,562 ) - (44,562 ) Accounts payable, related parties 10,395 - 10,395 Accrued interest 35,048 - 35,048 Accrued interest, related parties 1,200 - 1,200 Judgment payable 340,647 - 340,647 Net cash used in operating activities (323,751 ) - (323,751 ) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (3,536 ) - (3,536 ) Net cash used in investing activities (3,536 ) - (3,536 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of warrants, related party 2,000 - 2,000 Proceeds from convertible notes payable 417,500 - 417,500 Repayments from convertible notes payable (89,039 ) - (89,039 ) Net cash provided by financing activities 330,461 - 330,461 NET CHANGE IN CASH 3,174 - 3,174 CASH AT BEGINNING OF PERIOD 35,414 - 35,414 CASH AT END OF PERIOD $ 38,588 $ - $ 38,588 SUPPLEMENTAL INFORMATION: Interest paid $ 13,539 $ - $ 13,539 Income taxes paid $ - $ - $ - NON-CASH INVESTING AND FINANCING ACTIVITIES: Discount on beneficial conversion feature on convertible note $ 364,220 $ (364,220 ) $ - Value of debt discounts $ - $ 110,583 $ 110,583 Value of shares issued for conversion of debt $ 200,338 $ - $ 200,338 Cashless exercise of common stock warrants $ 22 $ - $ 22 Common stock issued for settlement of accounts payable $ 13,765 $ - $ 13,765 |