Prior Period Effect of 2009 Restatement
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Dec. 31, 2011
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Prior Period Effect of 2009 Restatement |
As disclosed in the Company's 2010 Annual Report on Form 10-K, Management restated the Company's financial statements to reflect a prior period adjustment effective January 1, 2009, which resulted in a decrease to additional paid-in capital of $6,399,805, an increase of the accumulated deficit of $1,092,021, and an increase in warrant and put feature on common stock liabilities of $5,307,784. Management had determined that the warrants and anti-dilution make whole provisions, as described in Notes 13 and 14, respectively, issued to investors from offerings occurring in December 2007 and March, 2008, were misclassified as equity, and should have been treated as liabilities at inception.
The Company has recorded this adjustment for the years ended December 31, 2008 and 2007 on the Statement of Stockholders' Equity (Deficit) and Comprehensive Loss, as follows:
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