Quarterly report pursuant to Section 13 or 15(d)

Reclassification

v3.19.3
Reclassification
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
RECLASSIFICATION

NOTE 19 – RECLASSIFICATION

 

During the three months ended June 30, 2019, the Company inadvertently estimated the fair value of the warrants using an incorrect assumption for volatility. The impact of the incorrect assumption was an understatement of the derivative liability and an overstatement of equity by approximately $700,000. The incorrect assumption had an immaterial impact on the Company’s statement of operations and cash flows. The Company’s June 30, 2019 balance sheet has been restated for the impact of this reclassification as follows:

 

    As Originally Reported     As Reclassification  
Derivative liabilities   $ 3,055,748     $ 3,755,748  
Total liabilities   $ 5,090,541     $ 5,790,541  
Total Equity   $ 8,542,198     $ 7,842,198