Quarterly report pursuant to Section 13 or 15(d)

4. Reclassifications and Restatements

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4. Reclassifications and Restatements
 9 Months Ended
Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Reclassifications and Restatements

Note 4:          Reclassifications and Restatements

        

Our previously issued consolidated financial statements for quarter and nine months ended September 30, 2017 and year ended December 31, 2016 have been reclassified and restated.

 

We did not record the deferred tax liability associated with the purchase of the intangible assets of GeoTraq at time of acquisition. The Company determined that Intangible asset associated with GeoTraq should have been increased by $10,133, with a corresponding increase to deferred tax liability.

 

We did not record the beneficial conversion amount related to the issuance of the Series A convertible preferred shares in the amount of $2,641. The beneficial conversion feature reduced the Series A convertible preferred and increased additional paid in capital of the same amount $2,641. 

 

We reclassified additional paid in capital of $12,322 for the issuance of the Series A convertible preferred stock amount less par value of .001 per Series A convertible preferred share.

 

We reclassified $22,430 from common stock to additional paid in capital now that the common stock has a par value of .001 with the Company’s recent reincorporation in the state of Nevada.

 

Fiscal Quarter Ended September 30, 2017

 

    As              
In Thousands   Previously              
    Reported     Change     (Restated)  
                   
Balance Sheet Changes
                   
Intangible assets, net   $ 15,748     $ 10,133     $ 25,881  
Deferred taxes     1,305       (1,305 )     –  
Total assets     46,191       8,828       55,019  
                         
Deferred tax liability     –       8,828       8,828  
Total liabilities     15,353       8,828       24,181  
                         
Preferred stock, series A     14,963       (14,963 )     –  
Common stock     22,437       (22,430 )     7  
Additional paid in capital     –       37,393       37,393  
Total liabilities and equity     46,191       8,828       55,019  
                         
Cash Flow Statement Changes Thirty Nine Weeks Ended September 30, 2017  
                         
Non-cash disclosures:                        
Series A convertible preferred stock issued   $ 14,963     $ (2,641 )   $ 12,322  
Beneficial conversion feature Series A convertible preferred stock     –       2,641       2,641  
Resatement

Fiscal Quarter Ended September 30, 2017

 

    As              
In Thousands   Previously              
    Reported     Change     (Restated)  
                   
Balance Sheet Changes
                   
Intangible assets, net   $ 15,748     $ 10,133     $ 25,881  
Deferred taxes     1,305       (1,305 )     –  
Total assets     46,191       8,828       55,019  
                         
Deferred tax liability     –       8,828       8,828  
Total liabilities     15,353       8,828       24,181  
                         
Preferred stock, series A     14,963       (14,963 )     –  
Common stock     22,437       (22,430 )     7  
Additional paid in capital     –       37,393       37,393  
Total liabilities and equity     46,191       8,828       55,019  
                         
Cash Flow Statement Changes Thirty Nine Weeks Ended September 30, 2017  
                         
Non-cash disclosures:                        
Series A convertible preferred stock issued   $ 14,963     $ (2,641 )   $ 12,322  
Beneficial conversion feature Series A convertible preferred stock     –       2,641       2,641