| Note 11. Explanation of our Restatement |
The Company is filing a restatement of its three and six month Statements of Operations for the period ending July 31, 2019, which was filed with the Securities and Exchange Commission (“SEC”) on September 13, 2019 (the “Original Report”). The financial statements contained in our Quarterly Report on Form 10-Q for the period ended July 31, 2019 require restatement in order to correct the presentation of amortization of the software as a cost of good that had been previously impaired. In addition, certain other expenses were adjusted accordingly with a realization of income from discontinued operations added. The changes in our consolidated Statements of Operations are summarized, below. |
|
| For the three months ended
|
|
| For the six months ended
|
|
|
|
| July 31, 2019
|
|
| July 31, 2019
|
|
|
|
| Original
|
|
| Change
|
|
| Restated
|
|
| Original
|
|
| Change
|
|
| Restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation expense
|
| $ | 121,159 |
|
| $ | (121,159 | ) |
| $ | - |
|
| $ | 242,318 |
|
| $ | (242,318 | ) |
| $ | - |
|
| Total cost of sales
|
|
| 121,159 |
|
|
| (121,159 | ) |
|
| - |
|
|
| 242,318 |
|
|
| (242,318 | ) |
|
| - |
|
| Gross loss
|
| $ | 121,159 |
|
| $ | (121,159 | ) |
| $ | - |
|
| $ | 242,318 |
|
| $ | (242,318 | ) |
| $ | - |
|
| Selling, general, and administrative
|
|
| 3,818 |
|
|
| 1,672 |
|
|
| 5,490 |
|
|
| 4,560 |
|
|
| 17,929 |
|
|
| 22,489 |
|
| Professional fees
|
|
| (7,365 | ) |
|
| 7,455 |
|
|
| 90 |
|
|
| 5,257 |
|
|
| - |
|
|
| 5,257 |
|
| Rent
|
|
| - |
|
|
| 207 |
|
|
| 207 |
|
|
| - |
|
|
| 414 |
|
|
| 414 |
|
| Consultant fees
|
|
| 42,000 |
|
|
| - |
|
|
| 42,000 |
|
|
| 84,000 |
|
|
| - |
|
|
| 84,000 |
|
| Bad debt expense
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 4,500 |
|
|
| (4,500 | ) |
|
| - |
|
| Amortization & depreciation expense
|
|
| 646 |
|
|
| (646 | ) |
|
| - |
|
|
| 1,292 |
|
|
| (1,292 | ) |
|
| - |
|
| Total operating expenses
|
| $ | 39,099 |
|
| $ | 8,688 |
|
| $ | 47,787 |
|
| $ | 99,609 |
|
| $ | 12,551 |
|
| $ | 112,160 |
|
| Net loss from operations
|
|
| (160,258 | ) |
|
| 112,471 |
|
|
| (47,787 | ) |
|
| (341,927 | ) |
|
| 229,767 |
|
|
| (112,160 | ) |
| Other income (expense)
|
| $ | (1 | ) |
| $ | 6,570 |
|
| $ | 6,569 |
|
| $ | (2 | ) |
| $ | 2 |
|
| $ | - |
|
| Net income (loss) before discontinued operations
|
|
| (160,259 | ) |
|
| 119,041 |
|
|
| (41,218 | ) |
|
| (341,929 | ) |
|
| 229,769 |
|
|
| (112,160 | ) |
| Income from discontinued operations
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 8,497 |
|
|
| 8,497 |
|
| Net loss
|
| $ | (160,259 | ) |
| $ | 119,041 |
|
| $ | (41,218 | ) |
| $ | (341,929 | ) |
| $ | 238,266 |
|
| $ | (103,663 | ) |
|