Restatement of Previously Issued Financial Statements (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Summary of Restated Financial Statements

The following tables present the restated financial statements as of and for the year ended December 31, 2015. All the adjustments are a result of removing BHCA from the Company’s consolidated financial statements.

ACCELERA INNOVATIONS, INC.

BALANCE SHEET

AS OF DECEMBER 31, 2015

	As Originally			Amount of
	Presented			Restatement			As Restated

ASSETS

Current Assets:
Cash	$	474,564		$	(474,564	)	$	0
Prepaid expenses		29,793			0			29,793
Total current assets		504,357			(474,564	)		29,793

Property and equipment, net		8,889			0			8,889
Security deposit		1,805			0			1,805

TOTAL ASSETS	$	515,051		$	(474,564	)	$	40,487

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities:
Cash overdraft	$	0		$	6,624		$	6,624
Short-term note payable		901,521			0			901,521
Subordinated unsecured note payable		4,550,000			(4,550,000	)		0
Advanced from related party		243,799			0			243,799
Accounts payable		474,510			(65,591	)		408,919
Accrued expenses		427,764			(105,183	)		322,581
Derivative liability		302,580			0			302,580
Total current liabilities		6,900,174			(4,714,150	)		2,186,024

Convertible note		15,434			0			15,434

TOTAL LIABILITIES		6,915,608			(4,714,150	)		2,201,458


STOCKHOLDERS’ DEFICIT
Preferred stock		20			0			20
Common stock		4,501			0			4,501
Additional paid-in capital		57,522,043			0			57,522,043
Accumulated deficit		(63,927,121	)		4,239,586			(59,687,535	)
Total stockholders’ deficit		(6,400,557	)		4,239,586			(2,160,971	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	515,051		$	(474,564	)	$	40,487

ACCELERA INNOVATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2015

	As Originally			Amount of
	Presented			Restatement			As Restated

Revenues	$	3,623,131		$	(2,489,416	)	$	1,133,715
Cost of revenues		1,856,401			(1,698,690	)		157,711
Gross profit		1,766,730			(790,726	)		976,004

Operating expenses:
General and administrative expenses		14,892,236			(899,715	)		13,992,521
Total operating expenses		14,892,236			(899,715	)		13,992,521
Loss from operations		(13,125,506	)		108,989			(13,016,517	)

Other income (expense)
Interest expense and financing costs		(1,801,903	)		0			(1,801,903	)
Change in fair value of derivative liability		2,745			0			2,745
Total other income (expenses)		(1,799,158	)		0			(1,799,158	)

Loss before provision for taxes		(14,924,664	)		108,989			(14,815,675	)

Provision for income taxes		0			0			0

Net loss	$	(14,924,664	)	$	108,989		$	(14,815,675	)

Preferred stock dividend		41,413			0			41,413

Net loss attributed to common stockholders	$	(14,966,077	)	$	108,989		$	(14,857,088	)

Weighted average shares outstanding - basic and diluted		42,919,132			0			42,919,132

Loss per share - basic and diluted	$	(0.35	)	$	0.00		$	(0.35	)

ACCELERA INNOVATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2015

	As Originally			Amount of
	Presented			Restatement			As Restated

OPERATING ACTIVITIES:
Net loss	$	(14,924,664	)	$	108,989		$	(14,815,675	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		1,259			0			1,259
Stock options expense		4,265,889			0			4,265,889
Shares issued for services		7,731,493			0			7,731,493
Shares issued for extending loan payment terms		1,437,487			0			1,437,487
Amortization of debt discount		15,434			0			15,434
Change in fair value of derivative liability		(2,745	)		0			(2,745	)
Financing costs associated with convertible note		136,640			0			136,640
Offering cost for preferred stock subscription		141,430			0			141,430
Change in current assets and liabilities:					0
Accounts receivable		605,796			(452,318	)		153,478
Prepaid expenses and current assets		(23,767	)		0			(23,767	)
Accounts payable		385,821			(65,591	)		320,230
Accrued expenses		200,708			(5,721	)		194,987
Net cash used in operating activities		(29,219	)		(414,641	)		(443,860	)

INVESTING ACTIVITIES:
Purchase of property and equipment		(3,767	)		0			(3,767	)
Net cash used in investing activities		(3,767	)		0			(3,767	)

FINANCING ACTIVITIES:
Proceeds from the sale of stock		15,000			0			15,000
Proceeds from convertible notes		50,000			0			50,000
Proceeds from notes payable		250,000			0			250,000
Payment on notes payable		(74,301	)		0			(74,301	)
Cash overdraft		0			(5,061	)		(5,061	)
Advances from (payments to) related parties		211,989			0			211,989
Net cash provided by financing activities		452,688			(5,061	)		447,627

NET INCREASE (DECREASE) IN CASH		419,702			(419,702	)		0

CASH, BEGINNING BALANCE		54,862			(54,862	)		0

CASH, ENDING BALANCE	$	474,564		$	(474,564	)	$	0

CASH PAID FOR:
Interest	$	0		$	0		$	0
Income taxes	$	0		$	0		$	0

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Convertible notes and accrued interest converted to common stock	$	0		$	0		$	0
Convertible note issued for liabilities	$	118,685		$	0		$	118,685

ACCELERA INNOVATIONS, INC. 10-K