Quarterly report pursuant to Section 13 or 15(d)

Restatement of Financial Statements

v3.8.0.1
Restatement of Financial Statements
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Restatement of Financial Statements

NOTE 4 – RESTATEMENT OF FINANCIAL STATEMENTS

 

-On April 24, 2018, the Registrant’s Board of Directors met to review and discuss the Company’s previously issued financial statements for the period ending June 30, 2017. The Board determined that there were errors in the financial statements, and determined that because of such errors, the financial statements should not be relied upon. The Company filed Form 8-K on April 27, 2018.

Specifically, the errors included the failure to disclose current liabilities as of June 30, 2017, related to our respective investments in the Bougainville Ventures, Inc. Joint Venture (“Bougainville”), the GateC Research, Inc. Joint Venture (“GateC”), MoneyTrac Technologies, Inc. (“MoneyTrac”) and Conveniant Hemp Mart, LLC (“Conveniant”).

In the Company’s Form 10-Q for the period ending June 30, 2017, we chose not to classify the Company’s entire $1 million funding obligation, undertaken pursuant to the Bougainville Joint Venture agreement, as a current liability. We chose not to classify as a current liability the Company’s entire $1.5 million funding obligation in the GateC Joint Venture agreement. We also chose not to classify as current liabilities our total investments in MoneyTrac and Conveniant. We previously determined, given the funding schedules pertaining to both joint ventures and the MoneyTrac and Conveniant investments, that the Company’s disclosures of current liabilities would be accrued as the funding obligations were respectively incurred. Upon further review, we determined that these obligations should have been recorded in the June 30, 2017 financial statements.