TNF Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restatement of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2017

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

Note 2 – Restatement of Previously Issued Financial Statements

As previously disclosed, the Company determined that certain revenue transactions did not qualify for revenue recognition under generally accepted accounting principles. In the process of this determination, the Company discovered information that existed at June 30, 2017 which affected the revenue and an obligation. The Company concluded that the correction of these errors and misstatements has a material impact on the condensed consolidated financial statements as of and for the nine months ended September 30, 2017. There is no impact on the condensed consolidated financial statements for the three months ended September 30, 2017. As a result, the Company is restating its condensed consolidated financial statements as of and for the nine months ended September 30, 2017. See below for a reconciliation of the previously reported amounts to the restated amounts.

The table below sets forth the condensed consolidated balance sheets, including the balances originally reported, corrections and the as restated balances:

	As of September 30, 2017
	As Reported			Correction			As Restated
Trade Receivables – Related Party, net		125,001			(125,001	)		-
Inventories, net		2,085,867			62,140			2,148,007
Total Current Assets		3,983,292			(62,861	)		3,920,431
Total Assets		5,528,333			(62,861	)		5,465,472
Trade and Other Payables		1,549,047			88,500			1,637,547
Total Current Liabilities		1,581,792			88,500			1,670,292
Total Liabilities		1,581,792			88,500			1,670,292
Accumulated Deficit		(100,673,108	)		(151,361	)		(100,824,469	)
Total Stockholder’s Equity		3,946,541			(151,361	)		3,795,180
Total Liabilities and Stockholders’ Equity		5,528,333			(62,861	)		5,465,472

The table below sets for the condensed consolidated statements of income, including the balances originally reported, corrections, and the restated amounts:

	For the nine months ended September 30, 2017
	As Reported			Correction			As Restated
Product revenue	$	2,378,811		$	(370	)	$	2,378,441
Product revenue – Related party		124,631			(124,631	)		-
Product Cost of Sales		(846,487	)		(26,360	)		(872,847	)
Gross Income		1,694,455			(151,361	)		1,543,094
Loss from Operations		(3,209,039	)		(151,361	)		(3,360,400	)
Loss Before Income Taxes		(3,193,571	)		(151,361	)		(3,344,932	)
Net Loss Attributable to Common Stockholders		(3,193,571	)		(151,361	)		(3,344,932	)
Comprehensive Loss		(3,193,571	)		(151,361	)		(3,344,932	)
Loss per share	$	(0.39	)	$	(0.01	)	$	(0.40	)

The table below sets forth the condensed consolidated statements of shareholders' equity, including the balances originally reported, corrections and the as restated balances:

	As Reported			Correction			As Restated
Net loss, for the nine months ended September 30, 2017	$	(3,193,571	)	$	(151,361	)	$	(3,344,932	)
Accumulated Deficit, as of September 30, 2017		(100,673,108	)		(151,361	)		(100,824,469	)
Total Equity, as of September 30, 2017		3,946,541			(151,361	)		3,795,180

The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances originally reported, corrections and the as restated balances:

	For the nine months ended September 30, 2017
	As Reported			Correction			As Restated
Net loss	$	(3,193,571	)	$	(151,361	)	$	(3,344,932	)
(Increase)/Decrease in trade receivables – related party		(93,109	)		125,001			31,892
Increase in inventories		(49,346	)		(62,140	)		(111,486	)
Decrease in trade and other payables		85,685			88,500			174,185
Net cash used in operating activities		(3,654,858	)		-			(3,654,858	)

The restatement had no impact on cash flows from investing activities or financing activities.

In addition to the restated condensed consolidated financial statements, the information contained in Notes 3, 6, 7, 10, 15, 16, 17 and 20 has been restated.