Restatement of Previously Issued Financial Statements | NOTE 11. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS Subsequent to the original issuance of Regen’s annual financial statements for the period ended September 30, 2015 the Company determined that the recognition of $8,984,432 of expenses recognized during the year ended September 30, 2015 resulting from the issuance for less than fair value of common shares in satisfactions of convertible notes issued by the Company should not have been recognized. The following tables reflect the corrections: REGEN BIOPHARMA , INC. BALANCE SHEET As of September 30, 2015 Adjustments As of September 30, 2015 (restated) ASSETS CURRENT ASSETS Cash 38,620 38,620 Note Receivable 12,051 12,051 Prepaid Expenses 10,000 10,000 Accrued Interest Receivable 1,381 1,381 Total Current Assets 62,052 62,052 OTHER ASSETS Available for Sale Securities 158,400 158,400 Total Other Assets 158,400 158,400 TOTAL ASSETS 220,452 220,452 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Bank Overdraft 0 0 Accounts payable 25,854 25,854 Notes Payable 222,751 222,751 Accrued payroll taxes 1,940 1,940 Accrued Interest 21,093 21,093 Accrued Rent 10,000 10,000 Accrued Payroll 36,001 36,001 Total Current Liabilities 317,639 317,639 Total Liabilities 317,639 317,639 STOCKHOLDERS' EQUITY (DEFICIT) Common Stock ($.0001 par value) 500,000,000 shares authorized; 114,753,938 issued and outstanding as of September 30, 2015 and 51,907,917 shares issued and outstanding September 30, 2014 11,474 11,474 Preferred Stock, 0.0001 par value, 100,000,000 authorized and Five Million authorized as of September 30, 2015 and September 30, 2014 respectively Series A Preferred 90,000,000 Authorized and 0 authorized, 60,981,697 and 0 outstanding as of September 30, 2105 and September 30, 2014 respectively 60,981,697 and 0 outstanding as of September 30, 2105 and September 30, 2014 respectively 6,098 6,098 Series AA Preferred $0.0001 par value 600,000 authorized and 30, 000 and 0 outstanding as of September 30, 2015 and September 30, 2014 respectively 3 3 Additional Paid in capital 11,663,905 (8,984,432 ) 2,679,473 Contributed Capital 728,658 728,658 Retained Earnings (Deficit) accumulated during the development stage (12,473,725 ) 8,984,432 (3,489,293 ) Accumulated Other Comprehensive Income (33,600 ) (33,600 ) Total Stockholders' Equity (Deficit) (97,187 ) (97,187 ) TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) 220,452 220,452 REGEN BIOPHARMA , INC. STATEMENT OF OPERATIONS Year Ended September 30, 2015 Adjustments Year Ended September 30, 2015 Restated REVENUES 192,000 192.000 COST AND EXPENSES Research and Development 282,295 282,295 General and Administrative 1,314,208 1,314,208 Consulting and Professional Fees 516,701 516,701 Rent 58,071 58,071 Total Costs and Expenses 2,171,276 2,171,276 OPERATING LOSS (1,979,276 ) (1,979,276 ) OTHER INCOME & (EXPENSES) Interest Income 1,148 1,148 Refunds of amounts previously paid 0 0 Interest Expense (21,688 ) (21,688 ) Capital contribution tp parent Loss on issuance of common shares for less than fair value (9,191,857 ) 8,984,432 (207,425 ) Preferred shres issued pursuant to contractual obligations (3,475 ) (3,475 ) TOTAL OTHER INCOME (EXPENSE) (9,215,872 ) (231,440 ) NET INCOME (LOSS) (11,195,147 ) (2,210,715 ) BASIC AND FULLY DILUTED EARNINGS (LOSS) PER SHARE (0.1270 ) (0.0251 ) WEIGHTED AVERAGE NUMBER OF COMMON 88,185,098 88,185,098 SHARES OUTSTANDING REGEN BIOPHARMA, INC. STATEMENT OF COMPREHENSIVE INCOME Year Ended September 30, (as restated) 2015 Adjustments 2015 Net Income (Loss) $ (11,195,147 ) 8,984,432 $ (2,210,716 ) Add: Unrealized Gains on Securities 0 0 Less: Unrealized Losses on Securities (33,600 ) (33,600 ) Total Other Comprehensive Income (Loss) (33,600 ) (33,600 ) Comprehensive Income $ (11,228,747 ) (2,244,316 ) REGEN BIOPHARMA , INC. STATEMENT OF CASH FLOWS Year Ended September 30, 2015 Adjustments Year Ended September 30, 2015 (Restated) CASH FLOWS FROM OPERATING ACTIVITIES Net Income (loss) (11,195,147 ) 8,984,432 (2,210,716 ) Adjustments to reconcile net Income to net cash Securities Received as Payment for Services (192,000 ) (192,000 ) Preferred Stock issued for Expenses 100 100 Predrred Stock issued for interest 891 891 Common Stock issued for expenses Preferred Stock issued pursuant to contractual obligations 3,475 3,475 Common Stock issued to Consultants 307,955 307,955 Preferred Stock issued to Consultants 450 450 Changes in operating assets and liabilities: Increase (Decrease) in Accounts Payable 22,549 22,549 (Increase) Decrease in Notes Receivable (1,629 ) (1,629 ) (Increase) Decrease in Interest Receivable (1,148 ) (1,148 ) Increase ( Decrease) in Bank Overdraft (6,137 ) (6,137 ) Increase (Decrease) in accrued Expenses 58,359 58,359 (Increase) Decrease in Prepaid Expenses (10,000 ) (10,000 ) Increase in issuance of stock below fair value 9,191,857 (8,984,432 ) 207,425 Increase in Additional Paid in Capital 627,778 627,778 Net Cash Provided by (Used in) Operating Activities (1,192,648 ) (1,192,648 ) CASH FLOWS FROM FINANCING ACTIVITIES Common Stock issued for Cash 33,333 33,333 Preferred Stock issued for Cash 16,667 16,667 Increase in Contributed Capital 70,000 70,000 Increase ( Decrease) in Notes Payable 138,582 138,582 Increase in Convertible Notes payable 972,686 972,686 Net Cash Provided by (Used in) Financing Activities 1,231,268 1,231,268 Net Increase (Decrease) in Cash $ 38,620 38,620 Cash at Beginning of Period 0 0 Cash at End of Period $ 38,620 38,620 Supplemental Disclosure of Noncash investing and financing activities: Common Shares Issued for Debt $ 1,002,686 Preferred Shares issued for Debt $ 6,000 Cash Paid for Interest 0 Cash Paid for Income Tax 0 |