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RESTATEMENT OF FINANCIAL STATEMENTS
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12 Months Ended |
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Sep. 30, 2011
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| Notes to Financial Statements | |
| RESTATEMENT OF FINANCIAL STATEMENTS |
NOTE 13 RESTATEMENT OF FINANCIAL STATEMENTS
On January 13, 2012, management discovered an inadvertent footing error within the Companys statement of stockholders equity (deficit). Management concluded that the Companys audited consolidated financial statements for the year ended September 30, 2011 should be restated to correct the error.
The error relates to 572,021 shares of Series B preferred stock that were erroneously recorded as outstanding as of September 30, 2006. As shown in the statement, these shares were, in fact, convertible preferred shares and were duplicated in the incorrect column. This error was then added throughout the table resulting in an ending balance of Series B preferred stock of 6,155,357. This restatement corrects the balance to be 5,583,336. The error did not affect valuations of the preferred shares or other items within the Companys statement of stockholders equity. Thus, there is no affect on the Companys balance sheets, statements of operations, and statements of cash flows as originally reported.
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