Quarterly report pursuant to Section 13 or 15(d)

Restatement of Previously Issued Financial Statements

v3.20.2
Restatement of Previously Issued Financial Statements
9 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

9. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

Our Consolidated Balance Sheet as of September 30, 2019 and our beginning balances in the Condensed Consolidated Statements of Changes in Stockholders' Equity for the nine months ended June 30, 2020 and 2019, have been restated for errors made with regard to deferred tax liability, goodwill and accumulated deficit as further described below.

We determined that a deferred tax liability should have been recorded in the amount of $7,760,000 related to recording of the in-process research and development, in connection with the acquisition of LMB in March 2016 (see Note 1), which would have resulted in additional goodwill being recorded in the same amount of $7,760,000. Had the deferred tax liability been recorded upon acquisition of LMB, in 2018 we would have also recognized an income tax benefit of $2,774,200 as a result of the Tax Cuts and Jobs Act enacted into law on December 21, 2017 lowering the U.S. corporate tax rate from 35% to 21%.

Below indicates the impact of restatements at September 30, 2019:

    As of Year Ended September 30, 2019  
    As Previously Recorded     Adjustment     As Restated  
ASSETS                  
Goodwill   $ 1,586,796     $ 7,760,000     $ 9,346,796  
Total Assets   $ 28,986,394     $ 7,760,000     $ 36,746,394  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Deferred Tax Liability   $ -       $ 4,985,000     $ 4,985,000  
Total Liabilities   $ -       $ 4,985,000     $ 4,985,000  
                         
Stockholders' Equity:                        
Accumulated deficit   $ (55,819,982 )   $ 2,774,200     $ (53,045,782 )
Total Stockholders' Equity   $ 24,378,672     $ 2,774,200     $ 27,152,872  
Total Liabilities and Stockholders' Equity   $ 28,986,394     $ 7,760,000     $ 36,746,394