Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2014 | Feb. 19, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Earth Science Tech, Inc. | |
Entity Central Index Key | 1,538,495 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2014 | |
Amendment Flag | true | |
Amendment Description | This amendment is being filed to comply with regulations. | |
Current Fiscal Year End Date | --03-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 37,661,331 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,014 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2014 | Mar. 31, 2014 |
Current Assets: | ||
Cash | $ 192,517 | $ 376,704 |
Prepaid expenses | 195,074 | $ 350,000 |
Inventory | 197,828 | |
Deposits | 66,661 | $ 178,250 |
Total current assets | 652,080 | $ 904,954 |
Fixed Assets | 53,783 | |
Other Assets: | ||
Patent | 25,000 | |
Total other assets | 25,000 | |
Total Assets | 730,863 | $ 904,954 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | $ 26,361 | 745 |
Due to related parties | 166,511 | |
Notes payable - related parties | $ 59,558 | 38,605 |
Total current liabilities | 85,919 | 205,861 |
Total liabilities | $ 85,919 | $ 205,861 |
Commitment and Contingencies | ||
Stockholders' Equity: | ||
Preferred shares, par value $0.001 per share, authorized 10,000,000 shares 10,000,000 shares authorized; 5,200,000 and 0 shares issued and outstanding as of December 31, 2014 and March 31, 2014 respectively | $ 5,200 | |
Common stock, par value $0.001 per share, 75,000,000 shares authorized; 37,7111,331 and 35,980,000 shares issued and outstanding as of December 31, 2014 and March 31, 2014 respectively | 37,711 | $ 36,733 |
Additional paid-in capital | 21,305,698 | 13,307,751 |
Accumulated deficit | (20,703,665) | (12,645,391) |
Total stockholders' equity | 644,944 | 699,093 |
Total Liabilities and Stockholders' Equity | $ 730,863 | $ 904,954 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2014 | Mar. 31, 2014 |
Condensed Balance Sheets Parenthetical | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, issued | 37,711,331 | 36,733,000 |
Common stock, outstanding | 37,711,331 | 36,733,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 5,200,000 | 0 |
Preferred stock, shares outstanding | 5,200,000 | 0 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Statements Of Operations | ||||
Revenue | $ 14,251 | $ 800 | $ 20,851 | $ 7,450 |
Cost of Revenues | 15,416 | 19,998 | 900 | |
Gross Profit (Loss) | (1,165) | $ 800 | 853 | 6,550 |
Operating Expenses: | ||||
Compensation - officers | 231,000 | 356,000 | $ 2,700 | |
Marketing | 115,402 | 293,157 | ||
General and administrative | (26,165) | $ 120 | 78,456 | $ 5,515 |
Professional fees | 7,270,971 | $ 13,111 | 7,313,348 | $ 23,701 |
Research and development | 2,681 | 14,833 | ||
Total operating expenses | 7,593,889 | $ 13,231 | 8,055,794 | $ 31,916 |
Loss from Operations | (7,595,054) | $ (12,431) | (8,054,941) | $ (25,366) |
Other Income (Expenses) | ||||
Interest expense | (3,443) | (3,443) | ||
Interest income | $ 45 | $ 110 | ||
Foreign currency transaction loss | $ (106) | |||
Total other income (expense), net | $ (3,398) | $ (3,333) | (106) | |
Net loss before provisin for income taxes | $ (7,598,452) | $ (12,431) | $ (8,058,274) | $ (25,472) |
Provision for income taxes | ||||
Net Loss | $ (7,598,542) | $ (12,431) | $ (8,058,274) | $ (25,472) |
Loss Per Common Share: | ||||
Loss per common share - Basic and Diluted | $ (0.20) | $ (.22) | ||
Weighted Average Common Shares Outstanding: | ||||
Basic and Diluted | 37,625,461 | 10,280,000 | 37,351,215 | 10,280,000 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flow From Operating Activities: | ||
Net loss | $ (8,058,274) | $ (25,472) |
Adjustments to reconcile net loss to net cash from operating activities | ||
Stock-based compensation | $ 7,860,051 | 3,600 |
Changes in operating assets and liabities: | ||
Increase in Accounts Receivable | $ (800) | |
Decrease in Deposits | $ 111,589 | |
Increase in Inventory | (197,828) | |
Decrease in accounts payable and credit card payable | 25,616 | $ 4,241 |
Net Cash Used in Operating Activities | (258,846) | $ (18,431) |
Cash Flow From Investing Activities: | ||
Fixed asset purchases | (53,783) | |
Intangible asset purchases | (25,000) | |
Net Cash Used in Investing Activities | (78,783) | |
Cash Flow from Financing Activities: | ||
Proceeds from cash issuances | 299,000 | |
Repayments on related party advances | $ (166,511) | |
Proceeds from related parties | $ 13,111 | |
Proceeds from loan payable-related parties | $ 20,953 | 564 |
Net Cash Provided by Financing Activities | 153,442 | 13,675 |
Net Decrease in Cash | (184,187) | (4,756) |
Cash - Beginning of Period | 376,704 | $ 4,756 |
Cash - End of Period | $ 192,517 | |
Supplemental Disclosure of Non Cash Investing and Financing Activities: | ||
Forgiveness of debt from stockholders and officers - accrued compensation | $ 19,800 | |
Forgiveness of debt from stockholders and officers - advances and loan from stockholder | $ 55,684 | |
Cash paid for income taxes | ||
Cash paid for interest expense |
1. Organization and operations
1. Organization and operations | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Organization and operations | Note 1 Organization and operations Earth Science Tech, Inc. Earth Science Tech, Inc. On March 6, 2014, the Board of Directors of Ultimate Novelty Sports, Inc. approved the name change from Ultimate Novelty Sports, Inc. to Earth Science Tech, Inc. The change in the name of the Company was approved by a majority vote of the Shareholders of the Company. Subsequently, on May 28, 2014 the Financial Industry Regulatory Authority (FINRA) approved the name change of the Company to Earth Science Tech, Inc. as well as the new symbol change from UNOV to ETST. On June 16, 2014, the Company formed a wholly-owned subsidiary, Ultimate Nutrition Technologies, Inc. Ultimate Nutrition Technologies, Inc. was incorporated under the laws of the State of Florida. The name was changed to Nutrition Empire, Inc. on June 23, 2014. Change in control On March 24, 2014, the Company issued 25 million shares to Majorca Group, LTD. See Note 5 below for details. As a result of the foregoing, there was a change in control of the Company on March 24, 2014. Effective April 15, 2014, Dr. Issa El-Cheikh resigned as CEO, CFO, President, Secretary, Treasurer and Director of the Company. Harvey Katz was appointed as CEO, CFO, President, Secretary, Treasurer and Director of the Company. |
2. Summary of significant accou
2. Summary of significant accounting policies | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Summary of significant accounting policies | Note 2 Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company, and its wholly owned subsidiary Nutrition Empire, Inc. (from June 16, 2014, inception) as of December 31, 2014. The unaudited condensed consolidated interim financial statements have been All intercompany balances and transactions have been eliminated in consolidation. Use of estimates and assumptions The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification ("Paragraph 820-10-35-37") to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U. S. GAAP), and expands disclosures about fair value measurements. To increase consistency to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amount of the Company's financial assets and liabilities, such as cash, prepaid expenses, deposits, accounts payable and accrued expenses approximate their fair value because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arms-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not however practical to determine the fair value of advances from stockholders due to their related party nature. Carrying value, recoverability and impairment of long-lived assets The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Companys long-lived assets, which include office equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the assets expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Companys overall strategy with respect to the manner or use of the acquired assets or changes in the Companys overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Companys stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. Related parties Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur, The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of Judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows. Revenue recognition The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company derives its revenues from sales contracts with its customer with revenues being generated upon rendering of services. Persuasive evidence of an arrangement is demonstrated via invoice; service is considered provided when the service is delivered to the customers; and the sales price to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive. Inventories Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value. The Company's inventory represents finished goods that are sold at our retail location via our website as of December 31, 2014. Cost of Sales Components of costs of sales include product costs, shipping costs to customers and any inventory adjustments. Shipping and Handling Costs The Company includes shipping and handling fees billed to customers as revenues and shipping and handling costs for shipments to customers as cost of revenues. Income taxes The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Loss per common share The Company follows ASC Topic 260 to account for earnings per share. Basic earnings per common share (EPS) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. There were no warrants issued and outstanding as of December 31, 2014 and 2013 respectively. Recently issued accounting pronouncements The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations, or cash flows of the Company. In May 2014, the FASB issued new accounting guidance regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance, and is effective for public entities for annual and interim periods beginning after December 31, 2016. Early adoption is not permitted. We are currently evaluating the impact of this new guidance on the Company's consolidated financial statements. In June 2014, FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers". In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period." This ASU provides more explicit guidance for treating share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern", which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter, Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the consolidated financial statements, We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition. All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable. Fixed Assets Fixed assets are recorded at cost less accumulated depreciation. Depreciation is provided for on the straight line method over the estimated useful lives of the related assets as follows: Furniture and Equipment 5 years Computer equipment 5 years Signage 5 years Leaseholds and Design 10 years The cost of maintenance and repairs is charged to expense in the period incurred. Expenditures that increase the useful lives of assets are capitalized and depreciated over the remaining useful lives of the assets. When items are retired or disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in income. |
3. Going concern
3. Going concern | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Going concern | Note 3 Going Concern The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying condensed consolidated financial statements, the Company had an accumulated deficit at December 31, 2014, a net loss and net cash used in operating activities for the period then ended. There is substantial doubt about the ability of the Company to continue as a going concern. While the Company is attempting to generate sufficient revenues, the Companys cash position may not be sufficient enough to support the Companys daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Companys ability to further implement its business plan and generate sufficient revenues. The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
4. Related party transactions
4. Related party transactions | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Related party transactions | Note 4 Related Party Transactions On April 15, 2014 the Company entered into an Employment Agreement with its Chief Executive Officer Harvey Katz. The Agreement calls for issuance of 100,000 common shares per quarter to compensate his services. During the nine months ended December 31, 2014, the Company issued 300,000 common shares at fair value of $356,000 under said employment agreement (See Note 5). During the nine months ended December 31, 2014, a former stockholder provided $20,953 in notes payable to the Company. The notes are due and payable on September 30, 2014, unsecured and bear interest at 8%. As of December 31, 2014 and March 31, 2014, the Company had $59,558 and $38,605 of notes payable outstanding from a related party. As of December 31, 2014, the notes are in default. The Company is in current negotiations with the lender to extend the notes for an additional year. During the nine months ended December 31, 2014, the Company repaid $166,511 to a related party for prior year advances. During the nine months ended December 31, 2014 the Company issued 5,200,000 Preferred Class "A" stock with a fair value of $7,072,000 to our majority stockholder for services. The preferred stock is non-dilutive and shall rank senior to all classes of common stock of the Company. The preferred stock has ten votes to the common stock per one share of preferred stock. The preferred stock carries a one for one conversion right for holders of the preferred stock into common stock. Conversion right will apply after one year has passed from issuance of the preferred stock. |
5. Stockholders_ Equity
5. Stockholders’ Equity | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Stockholders’ Equity | Note 5 Stockholders Equity Shares authorized Upon formation the total number of shares for all classes of stock which the Company is authorized to issue preferred stock in the amount of ten million (10,000,000), par value $.001 per share and issue common stock in the amount of seventy-five million (75,000,000), par value $.001 per share. Common stock Effective March 17, 2014 Company issued 700,000 shares to Royal Palm Consulting Service, LLC for services to be rendered as described in a Consulting Agreement between the Company and Royal Palm Consulting Service, LLC. The shares were valued at fair value of $350,000. The term of the agreement is for one year and shall terminate on March 17, 2015. The Consultant agrees to serve as a consultant to assist the Company with bona fide consulting services in general corporate activities including, but not limited to the following areas; Business Development, Strategies and Planning as well as Research venues for product advertisement, Identify strategic partners and retail client development. All these shares were valued at $0.50 per share, being the cash price of immediately preceding share issuance to unrelated parties. As of December 31, 2014, the Company has amortized $262,500 and the remaining balance of $87,500 is recorded as a prepaid expense. During the nine months ended December 31, 2014, the Company had sold 461,331 common shares for cash at $0.50 to $.75 per share for total proceeds of $299,000. During the nine months ended December 31, 2014, the Company issued 300,000 common shares with fair value of $356,000 to Chief Executive Officer (See Note 4). During the nine months ended December 31, 2014, the Company issued 117,000 common shares with fair value of $74,625 to non-related parties for services. During the nine months ended December 31, 2014, the Company issued 50,000 common shares with a fair value of $115,000 to an employee for services rendered. During the nine months ended December 31, 2014, the Company issued 50,000 common shares with fair value of $87,500 to a related parties for services which is recorded as a prepaid expense for consulting services. The amount will be amortized over three months per a Consulting Agreement. Preferred Stock On June 6, 2014 the Company filed with the State of Nevada Articles of Amendment creating a Preferred A class of stock with 10,000,000 Preferred A shares having a par value of $0.001 per share. On June 6, 2014 the Company filed with the State of Nevada a Certificate of Designation for the 10,000,000 Preferred A shares. The preferred stock is non-dilutive and shall rank senior to all classes of common stock of the Company. The preferred stock has ten votes to the common stock per one share of preferred stock. The preferred stock carries a one for one conversion right for holders of the preferred stock into common stock. Conversion right will apply after one year has passed from issuance of the preferred stock. During the nine months ended December 31, 2014 the Company issued 5,200,000 Preferred Class "A" stock with a fair value of $7,072,000 to our majority stockholder for services. The preferred stock is non-dilutive and shall rank senior to all classes of common stock of the Company. The preferred stock has ten votes to the common stock per one share of preferred stock. The preferred stock carries a one for one conversion right for holders of the preferred stock into common stock. Conversion right will apply after one year has passed from issuance of the preferred stock. |
6. Subsequent Events
6. Subsequent Events | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Subsequent Events | Note 6 Subsequent Events Subsequent to December 31, 2014, the Company issued 8,500 common shares with a fair value of $10,285 to non-related parties for services. Earth Science Tech, Inc. ("the Company") is presently engaged in a legal controversy with one of its suppliers, Cromogen, Cromogen's principals and a related company. Cromogen did not perform in accordance with its contract for supplying hemp oil in terms of timing, quality and consistency in the opinion of the company as a result of which the company notified Cromogen. At the same time and because the commitment to arbitrate extends only to the companies involved, the company has filed a legal action in the courts of Florida in which the principals of Cromogen have been named as Defendants and wherein fraud is alleged in connection with Cromogen's representations regarding the formulation and quality of the hemp oil it supplied and damages sought accordingly. (It is to be noted that, although the lack of performance by Cromogen has engendered litigation, the company has secured alternative sources for hemp oil and will mitigate its damages to the extent possible as a practical and legal matter). Cromogen, under the terms of the contract, demurred and filed for arbitration. That arbitration, in its very early stages, is now pending in New York (as the contract provided). Cromogen is claiming alleged damages of a direct and consequential nature. The company has filed a counterclaim for damages sustained as a proximate result of deficient and defective performance. |
7. Reclassification
7. Reclassification | 9 Months Ended |
Dec. 31, 2014 | |
Reclassification | |
Reclassification | Note 7 Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. |
8. Restatement
8. Restatement | 9 Months Ended |
Dec. 31, 2014 | |
Restatement | |
Restatement | Note 8 - Restatement The Company had restated the March 31, 2014 balance sheet, income statement and cash flow statement as originally presented in its financial statement filed with its 2014 10-K filed on July 16, 2014 to correct the common shares issued pursuant to the agreements with Officer and consultants and to properly record the value of common shares issued at fair value. Changes to Consolidated Balance Sheet March 31, 2014 As Previously As Reported Adjustment Restated Prepaid Expense $ - $ 350,000 $ 350,000 Services Receivable $ (12,850,000 ) $ 12,850,000 $ - Accumulated Deficit $ (145,391 ) $ (12,500,000 ) $ (12,645,391 ) Changes to Consolidated Statement of Operations For the Year Ended March 31, 2014 As Previously Reported Adjustment As Restated Professional Fees $ 36,711 $ 12,500,000 $ 12,536,711 Changes to Consolidated Statement of Cash Flow For the Year Ended March 31, 2014 As Previously As Reported Adjustment Restated Net loss $ (39,823 ) $ (12,500,000 ) $ (12,539,823 ) Stock-based compensation $ - $ 12,500,000 $ 12,500,000 Changes in advances from officers $ 198,150 $ (198,150 ) $ - Proceeds from notes payable - related party $ 39,169 $ (27,645 ) $ 11,524 Forgiveness of amounts due to related parties $ - $ 75,484 $ 75,484 Advances from related parties $ - $ 150,311 $ 150,311 Net Cash Used in Operating Activities $ (43,721 ) $ (198,150 ) $ (241,871 ) Net Cash Used in Financing Activities $ 415,669 $ 198,150 $ 613,819 The Company had restated the December 31, 2014 balance sheet, income statement and cash flow statement as originally presented in its financial statement filed with its 2014 10-Q filed on February 23, 2015 to correct the common shares issued pursuant to the agreements with Officer and consultants and to properly record the value of common shares issued at fair value. Changes to Consolidated Balance Sheet December 31, 2014 As Previously As Reported Adjustment Restated Cash $ 194,613 $ (2,096 ) $ 192,517 Accounts Receivable, net $ 5,031 $ (5,031 ) $ - Prepaid Expenses $ 180,080 $ 14,994 $ 195,074 Inventory $ 213,773 $ (15,945 ) $ 197,828 Deposits $ 62,841 $ 3,820 $ 66,661 Fixed Assets $ 62,135 $ (8,352 ) $ 53,783 Accounts Payable and Accrued Liabilities $ 17,293 $ 9,068 $ 26,361 Common Stock $ 37,661 $ 50 $ 37,711 Additional Paid in Capital $ 21,081,873 $ 223,825 $ 21,305,698 Accumulated Deficit $ (20,458,112 ) $ (245,553 ) $ (20,703,665 ) Changes to Consolidated Statement of Operations For the Nine Months Ended December 31, 2014 As Previously As Reported Adjustment Restated Revenue $ 20,983 $ (132 ) $ 20,851 Cost of revenues $ 11,032 $ 8,966 $ 19,998 Compensation - Officers $ 300,000 $ 56,000 $ 356,000 Professional Fees $ 19,663,563 $ (12,350,215 ) $ 7,313,348 Marketing $ 292,343 $ 814 $ 293,157 General and administrative $ 43,360 $ 35,096 $ 78,456 Travel expense $ 5,227 $ (5,227 ) $ - For the Three Months Ended December 31, 2014 As Previously As Reported Adjustment Restated Revenue $ 14,383 $ (132 ) $ 14,251 Cost of revenues $ 6,450 $ 8,966 $ 15,416 Compensation - Officers $ 150,000 $ 81,000 $ 231,000 Professional Fees $ 7,093,761 $ 177,210 $ 7,270,971 Marketing $ 116,238 $ (836 ) $ 115,402 General and administrative $ 16,610 $ (42,775 ) $ (26,165 ) Travel expense $ 705 $ (705 ) $ - Changes to Consolidated Statement of Cash Flow For the Nine Months Ended December 31, 2014 As Previously As Reported Adjustment Restated Net loss $ (20,312,721 ) $ 12,254,447 $ (8,058,274 ) Stock-based compensation $ 19,981,251 $ (12,121,200 ) $ 7,860,051 Increase in accounts receivable $ (5,031 ) $ 5,031 $ - Decrease in deposits $ (76,091 ) $ 187,680 $ 111,589 Decrease in prepaid expenses $ 169,920 $ (169,920 ) $ - Increase in inventory $ (22,273 ) $ (175,555 ) $ (197,828 ) Decrease in accounts payable and credit card payable $ 16,547 $ 9,069 $ 25,616 Fixed asset purchase $ (62,135 ) $ 8,352 $ (53,783 ) Net Cash Used in Operating Activities $ (248,398 ) $ (10,448 ) $ (258,846 ) Net Cash Used in Investing Activities $ (87,135 ) $ 8,352 $ (78,783 ) |
2. Summary of significant acc14
2. Summary of significant accounting policies (Policies) | 9 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company, and its wholly owned subsidiary Nutrition Empire, Inc. (from June 16, 2014, inception) as of December 31, 2014. The unaudited condensed consolidated interim financial statements have been All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification ("Paragraph 820-10-35-37") to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U. S. GAAP), and expands disclosures about fair value measurements. To increase consistency to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amount of the Company's financial assets and liabilities, such as cash, prepaid expenses, deposits, accounts payable and accrued expenses approximate their fair value because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arms-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not however practical to determine the fair value of advances from stockholders due to their related party nature. |
Carrying value, recoverability and impairment of long-lived assets | Carrying value, recoverability and impairment of long-lived assets The Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards Codification for its long-lived assets. The Companys long-lived assets, which include office equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the assets expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Companys overall strategy with respect to the manner or use of the acquired assets or changes in the Companys overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Companys stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. |
Related parties | Related parties Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. |
Commitments and contingencies | Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur, The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of Judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows. |
Revenue recognition | Revenue recognition The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company derives its revenues from sales contracts with its customer with revenues being generated upon rendering of services. Persuasive evidence of an arrangement is demonstrated via invoice; service is considered provided when the service is delivered to the customers; and the sales price to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive. |
Inventories | Inventories Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value. The Company's inventory represents finished goods that are sold at our retail location via our website as of December 31, 2014. |
Cost of Sales | Cost of Sales Components of costs of sales include product costs, shipping costs to customers and any inventory adjustments. |
Shipping and Handling Costs | Shipping and Handling Costs The Company includes shipping and handling fees billed to customers as revenues and shipping and handling costs for shipments to customers as cost of revenues. |
Income taxes | Income taxes The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. |
Loss per common share | Loss per common share The Company follows ASC Topic 260 to account for earnings per share. Basic earnings per common share (EPS) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. There were no warrants issued and outstanding as of December 31, 2014 and 2013 respectively. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations, or cash flows of the Company. In May 2014, the FASB issued new accounting guidance regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance, and is effective for public entities for annual and interim periods beginning after December 31, 2016. Early adoption is not permitted. We are currently evaluating the impact of this new guidance on the Company's consolidated financial statements. In June 2014, FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers". In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period." This ASU provides more explicit guidance for treating share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern", which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter, Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the consolidated financial statements, We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition. All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable. |
Fixed Assets | Fixed Assets Fixed assets are recorded at cost less accumulated depreciation. Depreciation is provided for on the straight line method over the estimated useful lives of the related assets as follows: Furniture and Equipment 5 years Computer equipment 5 years Signage 5 years Leaseholds and Design 10 years The cost of maintenance and repairs is charged to expense in the period incurred. Expenditures that increase the useful lives of assets are capitalized and depreciated over the remaining useful lives of the assets. When items are retired or disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in income. |
2. Summary of significant acc15
2. Summary of significant accounting policies (Table Text Block) | 9 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies Table Text Block | |
Schedule of fixed assets | Furniture and Equipment 5 years Computer equipment 5 years Signage 5 years Leaseholds and Design 10 years |
8. Restatement (Table Text Bloc
8. Restatement (Table Text Block) | 9 Months Ended |
Dec. 31, 2014 | |
Restatement Table Text Block | |
Schedule of changes to balance sheet | Changes to Consolidated Balance Sheet March 31, 2014 As Previously As Reported Adjustment Restated Prepaid Expense $ - $ 350,000 $ 350,000 Services Receivable $ (12,850,000 ) $ 12,850,000 $ - Accumulated Deficit $ (145,391 ) $ (12,500,000 ) $ (12,645,391 ) December 31, 2014 As Previously As Reported Adjustment Restated Cash $ 194,613 $ (2,096 ) $ 192,517 Accounts Receivable, net $ 5,031 $ (5,031 ) $ - Prepaid Expenses $ 180,080 $ 14,994 $ 195,074 Inventory $ 213,773 $ (15,945 ) $ 197,828 Deposits $ 62,841 $ 3,820 $ 66,661 Fixed Assets $ 62,135 $ (8,352 ) $ 53,783 Accounts Payable and Accrued Liabilities $ 17,293 $ 9,068 $ 26,361 Common Stock $ 37,661 $ 50 $ 37,711 Additional Paid in Capital $ 21,081,873 $ 223,825 $ 21,305,698 Accumulated Deficit $ (20,458,112 ) $ (245,553 ) $ (20,703,665 ) |
Schedule of changes to statement of operations | Changes to Consolidated Statement of Operations For the Year Ended March 31, 2014 As Previously Reported Adjustment As Restated Professional Fees $ 36,711 $ 12,500,000 $ 12,536,711 For the Nine Months Ended December 31, 2014 As Previously As Reported Adjustment Restated Revenue $ 20,983 $ (132 ) $ 20,851 Cost of revenues $ 11,032 $ 8,966 $ 19,998 Compensation - Officers $ 300,000 $ 56,000 $ 356,000 Professional Fees $ 19,663,563 $ (12,350,215 ) $ 7,313,348 Marketing $ 292,343 $ 814 $ 293,157 General and administrative $ 43,360 $ 35,096 $ 78,456 Travel expense $ 5,227 $ (5,227 ) $ - For the Three Months Ended December 31, 2014 As Previously As Reported Adjustment Restated Revenue $ 14,383 $ (132 ) $ 14,251 Cost of revenues $ 6,450 $ 8,966 $ 15,416 Compensation - Officers $ 150,000 $ 81,000 $ 231,000 Professional Fees $ 7,093,761 $ 177,210 $ 7,270,971 Marketing $ 116,238 $ (836 ) $ 115,402 General and administrative $ 16,610 $ (42,775 ) $ (26,165 ) Travel expense $ 705 $ (705 ) $ - |
Schedule of changes to statement of cash flow | Changes to Consolidated Statement of Cash Flow For the Year Ended March 31, 2014 As Previously As Reported Adjustment Restated Net loss $ (39,823 ) $ (12,500,000 ) $ (12,539,823 ) Stock-based compensation $ - $ 12,500,000 $ 12,500,000 Changes in advances from officers $ 198,150 $ (198,150 ) $ - Proceeds from notes payable - related party $ 39,169 $ (27,645 ) $ 11,524 Forgiveness of amounts due to related parties $ - $ 75,484 $ 75,484 Advances from related parties $ - $ 150,311 $ 150,311 Net Cash Used in Operating Activities $ (43,721 ) $ (198,150 ) $ (241,871 ) Net Cash Used in Financing Activities $ 415,669 $ 198,150 $ 613,819 For the Nine Months Ended December 31, 2014 As Previously As Reported Adjustment Restated Net loss $ (20,312,721 ) $ 12,254,447 $ (8,058,274 ) Stock-based compensation $ 19,981,251 $ (12,121,200 ) $ 7,860,051 Increase in accounts receivable $ (5,031 ) $ 5,031 $ - Decrease in deposits $ (76,091 ) $ 187,680 $ 111,589 Decrease in prepaid expenses $ 169,920 $ (169,920 ) $ - Increase in inventory $ (22,273 ) $ (175,555 ) $ (197,828 ) Decrease in accounts payable and credit card payable $ 16,547 $ 9,069 $ 25,616 Fixed asset purchase $ (62,135 ) $ 8,352 $ (53,783 ) Net Cash Used in Operating Activities $ (248,398 ) $ (10,448 ) $ (258,846 ) Net Cash Used in Investing Activities $ (87,135 ) $ 8,352 $ (78,783 ) |
2. Summary of significant acc17
2. Summary of significant accounting policies (Details) | 9 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies Details | |
Furniture and Equipment | 5 years |
Computer equipment | 5 years |
Signage | 5 years |
Leaseholds and Design | 10 years |
4. Related Party Transactions (
4. Related Party Transactions (Details Narrative) - USD ($) | 9 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2014 | |
Related Party Loans Outstanding | $ 59,558 | $ 38,605 |
Loan from related party | ||
Loan Amount | $ 20,953 | |
Interest rate, loan | 8.00% |
5. Stockholders_ equity (defici
5. Stockholders’ equity (deficit) (Details Narrative) | 9 Months Ended |
Dec. 31, 2014USD ($)$ / sharesshares | |
Stockholders Equity Deficit Details Narrative | |
Total shares sold | shares | 461,331 |
Total proceeds from shares sold | $ 299,000 |
Value of per share of stock issued, max | $ / shares | $ 0.50 |
Value of per share of stock issued, min | $ / shares | $ 0.75 |
Stock issued for services, stock | shares | 117,000 |
Stock issued for services, value | $ 74,625 |
Stock issued to Chief Executive Officer, stock | shares | 300,000 |
Stock issued to Chief Executive Officer, value | $ 356,000 |
8. Restatement - Balance Sheet
8. Restatement - Balance Sheet (Details) - USD ($) | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
Cash | $ 192,517 | $ 376,704 | $ 4,756 | |
Accounts Receivable, net | ||||
Prepaid Expenses | 195,074 | $ 350,000 | ||
Inventory | 197,828 | |||
Deposits | 66,661 | $ 178,250 | ||
Fixed Assets | 53,783 | |||
Accounts Payable and Accrued Liabilities | 26,361 | $ 745 | ||
Common Stock | 37,711 | 36,733 | ||
Additional Paid in Capital | 21,305,698 | 13,307,751 | ||
Prepaid Expense | 195,074 | $ 350,000 | ||
Scenario, Previously Reported | ||||
Cash | 194,613 | |||
Accounts Receivable, net | 5,031 | |||
Prepaid Expenses | 180,080 | |||
Inventory | 213,773 | |||
Deposits | 62,841 | |||
Fixed Assets | 62,135 | |||
Accounts Payable and Accrued Liabilities | 17,293 | |||
Common Stock | 37,661 | |||
Additional Paid in Capital | 21,081,873 | |||
Prepaid Expense | 180,080 | |||
Services Receivable | $ (12,850,000) | |||
Accumulated Deficit | (20,458,112) | (145,391) | ||
Adjustment | ||||
Cash | (2,096) | |||
Accounts Receivable, net | (5,031) | |||
Prepaid Expenses | 14,994 | 350,000 | ||
Inventory | (15,945) | |||
Deposits | 3,820 | |||
Fixed Assets | (8,352) | |||
Accounts Payable and Accrued Liabilities | 9,068 | |||
Common Stock | 50 | |||
Additional Paid in Capital | 223,825 | |||
Prepaid Expense | 14,994 | 350,000 | ||
Services Receivable | 12,850,000 | |||
Accumulated Deficit | (245,553) | (12,500,000) | ||
As Restated | ||||
Cash | $ 192,517 | |||
Accounts Receivable, net | ||||
Prepaid Expenses | $ 195,074 | 350,000 | ||
Inventory | 197,828 | |||
Deposits | 66,661 | |||
Fixed Assets | 53,783 | |||
Accounts Payable and Accrued Liabilities | 26,361 | |||
Common Stock | 37,711 | |||
Additional Paid in Capital | 21,305,698 | |||
Prepaid Expense | 195,074 | $ 350,000 | ||
Services Receivable | ||||
Accumulated Deficit | $ (20,703,665) | $ (12,645,391) |
8. Restatement - Statement of O
8. Restatement - Statement of Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Revenues | $ 14,251 | $ 800 | $ 20,851 | $ 7,450 | ||
Cost of Revenues | 15,416 | 19,998 | 900 | |||
Compensation - Officers | 231,000 | 356,000 | 2,700 | |||
Professional Fees | 7,270,971 | $ 13,111 | 7,313,348 | $ 23,701 | ||
Marketing Expense | 115,402 | 293,157 | ||||
General and administrative | $ (26,165) | $ 120 | 78,456 | $ 5,515 | ||
Scenario, Previously Reported | ||||||
Revenues | $ 14,383 | 20,983 | ||||
Cost of Revenues | 6,450 | 11,032 | ||||
Compensation - Officers | 150,000 | 300,000 | ||||
Professional Fees | 7,093,761 | 19,663,563 | $ 36,711 | |||
Marketing Expense | 116,238 | 292,343 | ||||
General and administrative | 16,610 | 43,360 | ||||
Travel Expense | 705 | 5,227 | ||||
Adjustment | ||||||
Revenues | (132) | (132) | ||||
Cost of Revenues | 8,966 | 8,966 | ||||
Compensation - Officers | 81,000 | 56,000 | ||||
Professional Fees | 177,210 | (12,350,215) | 12,500,000 | |||
Marketing Expense | (836) | 814 | ||||
General and administrative | (42,775) | 35,096 | ||||
Travel Expense | (705) | (5,227) | ||||
As Restated | ||||||
Revenues | 14,251 | 20,851 | ||||
Cost of Revenues | 15,416 | 19,998 | ||||
Compensation - Officers | 231,000 | 356,000 | ||||
Professional Fees | 7,270,971 | 7,313,348 | $ 12,536,711 | |||
Marketing Expense | 115,402 | 293,157 | ||||
General and administrative | $ (26,165) | $ 78,456 | ||||
Travel Expense |
8. Restatement - Statement of C
8. Restatement - Statement of Cash Flow (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Net loss | $ (7,598,542) | $ (12,431) | $ (8,058,274) | $ (25,472) | |
Increase in accounts receivable | $ (800) | ||||
Decrease in deposits | $ 111,589 | ||||
Increase in inventory | (197,828) | ||||
Decrease in accounts payable and credit card payable | 25,616 | $ 4,241 | |||
Fixed asset purchases | $ (53,783) | ||||
Proceeds from notes payable - related party | $ 13,111 | ||||
Net Cash Used in Operating Activities | $ (258,846) | (18,431) | |||
Net Cash Used in Financing Activities | 153,442 | $ 13,675 | |||
Scenario, Previously Reported | |||||
Net loss | (20,312,721) | $ (39,823) | |||
Stock-based compensation | 19,981,251 | ||||
Increase in accounts receivable | (5,031) | ||||
Changes in advances from officers | $ 198,150 | ||||
Decrease in deposits | (76,091) | ||||
Decrease in prepaid expenses | 169,920 | ||||
Increase in inventory | (22,273) | ||||
Decrease in accounts payable and credit card payable | 16,547 | ||||
Fixed asset purchases | (62,135) | ||||
Proceeds from notes payable - related party | $ 39,169 | ||||
Forgiveness of amounts due to related party | |||||
Advances from related parties | |||||
Net Cash Used in Operating Activities | (248,398) | $ (43,721) | |||
Net Cash Used in Financing Activities | (87,135) | 415,669 | |||
Adjustment | |||||
Net loss | 12,254,447 | (12,500,000) | |||
Stock-based compensation | (12,121,200) | 12,500,000 | |||
Increase in accounts receivable | 5,031 | ||||
Changes in advances from officers | (198,150) | ||||
Decrease in deposits | 187,680 | ||||
Decrease in prepaid expenses | (169,920) | ||||
Increase in inventory | (175,555) | ||||
Decrease in accounts payable and credit card payable | 9,069 | ||||
Fixed asset purchases | 8,352 | ||||
Proceeds from notes payable - related party | (27,645) | ||||
Forgiveness of amounts due to related party | 75,484 | ||||
Advances from related parties | 150,311 | ||||
Net Cash Used in Operating Activities | (10,448) | (198,150) | |||
Net Cash Used in Financing Activities | 8,352 | 198,150 | |||
As Restated | |||||
Net loss | (8,058,274) | (12,539,823) | |||
Stock-based compensation | $ 7,860,051 | $ 12,500,000 | |||
Increase in accounts receivable | |||||
Changes in advances from officers | |||||
Decrease in deposits | $ 111,589 | ||||
Decrease in prepaid expenses | |||||
Increase in inventory | $ (197,828) | ||||
Decrease in accounts payable and credit card payable | 25,616 | ||||
Fixed asset purchases | (53,783) | ||||
Proceeds from notes payable - related party | $ 11,524 | ||||
Forgiveness of amounts due to related party | 75,484 | ||||
Advances from related parties | 150,311 | ||||
Net Cash Used in Operating Activities | (258,846) | (241,871) | |||
Net Cash Used in Financing Activities | $ (78,783) | $ 613,819 |