| Schedule of Error Corrections and Prior Period Adjustments |
The following table sets forth the effects of the adjustments discussed above on the consolidated balance sheet as at June 30, 2015. | | | Previously | | Increase | | | | | | | | Reported | | (Decrease) | | Restated | | | | | $ | | $ | | $ | | | Liabilities | | | | | | | | | | | | Derivative liabilities, net of current portion | | | 6,344,817 | | | (6,344,817) | | | - | | | Total long-term liabilities | | | 7,491,377 | | | (6,344,817) | | | 1,146,560 | | | Total liabilities | | | 9,383,266 | | | (6,344,817) | | | 3,038,449 | | | | | | | | | | | | | | | Stockholders’ deficit | | | | | | | | | | | | Additional paid-in capital | | | 8,566,193 | | | 5,721,957 | | | 14,288,150 | | | Accumulated deficit | | | (14,624,760) | | | (622,860) | | | (14,001,900) | | | Total stockholders’ deficit | | | (6,065,411) | | | 6,344,817 | | | 279,406 | | The following table sets forth the effects of the adjustments discussed above on the consolidated statement of operations for the three and nine months ended June 30, 2015 | | | Three months ended | | Nine Months Ended | | | | | Previously
Reported | | Increase
(Decrease) | | Restated | | Previously
Reported | | Increase
(Decrease) | | Restated | | | | | $ | | $ | | $ | | $ | | $ | | $ | | | (Increase)/decrease to fair value of derivative | | | (925,384) | | | (622,860) | | | (302,524) | | | 2,924,064 | | | (622,860) | | | 3,546,924 | | | Total other income (expense) | | | (57,016) | | | (622,860) | | | 565,844 | | | 2,013,925 | | | (622,860) | | | 2,636,785 | | | Net (loss)/income | | | (1,395,245) | | | (622,860) | | | (772,385) | | | (1,850,066) | | | (622,860) | | | (1,227,206) | | The following table sets forth the effects of the adjustments discussed above on the consolidated statement of cash flow as at June 30, 2015 | | | Previously
Reported | | Increase
(Decrease) | | Restated | | | | | $ | | $ | | $ | | | Net (loss) | | | (1,850,066) | | | (622,860) | | | (1,277,206) | | | Decrease to fair value of derivative | | | (2,924,064) | | | 622,860 | | | (3,546,924) | |
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