1A. RESTATEMENT OF PREVIOUSLY REPORTED INFORMATION
|6 Months Ended|
Oct. 31, 2015
|Restatement of Prior Year Income [Abstract]|
|1A. RESTATEMENT OF PREVIOUSLY REPORTED INFORMATION||
PharmaCyte Biotech, Inc. (Company) restated its condensed consolidated financial statements as of and for the period ended October 31, 2015 to reflect adjustments made due to the correction of the treatment of the issuance of certain shares of the Companys common stock, $0.0001 par value per share (common stock), warrants and certain other matters, as further described below, resulting in a material understatement to assets, a material overstatement to liabilities and a material understatement to stockholders equity. The nature and impact of these adjustments are described in more detail below.
The adjustments described above relate to the Companys issuance of certain warrants to purchase common stock with a cashless exercise feature (cashless warrants) in connection with its entry into a marketing and consulting agreement (Consultant Agreement) with a consultant during the fourth quarter of the prior fiscal year ended April 30, 2015 (for more information, see the amendment (Amended Form 10-K)) to our Annual Report on Form 10-K for the year ended April 30, 2015, originally filed July 29, 2015 (Original Form 10-K). The Company accounted for the cashless warrants as a derivative liability in the Original Form 10-K. However, upon further analysis, the Company determined that the cashless warrants should have been accounted for as equity in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) in the Original Form 10-K. Additionally, the Company determined that the issuance of shares of common stock to the consultant pursuant to the Consultant Agreement and the issuance of certain warrants to purchase common stock with a cash exercise feature (cash warrants) and the cashless warrants to the consultant should have been recorded as a prepaid asset and amortized over the term of the Consultant Agreement in accordance with U.S. GAAP in the Original Form 10-K. As a result of the Companys determination that the cashless warrants should be accounted for as equity, and that the Consultant Agreement, stock issuance, cash warrants and cashless warrants should be accounted for as a prepaid asset, the Company increased general and administrative expenses by the net amount of $506,573 and $1,013,146 on its condensed consolidated statements of operations for the three and six months ended October 31, 2015, respectively, and increased prepaid expenses and other assets by the amount of $335,878, net of amortization, on its condensed consolidated balance sheet as of October 31, 2015, as set forth in the Restated Financial Statements. As a result of these adjustments, and the adjustments to our consolidated financial statements for the fiscal year ended April 30, 2015, as set forth in the Amended Form 10-K, the Company recorded a net increase to its accumulated deficit in the amount of $578,382 and an increase to total stockholders equity in the amount of $335,878.
As set forth in the Restated Financial Statements, the effect of the timing of the recognition of the cashless warrant expense resulted in a decrease of $29,746 and $492,049 to total other income, an increase to general and administrative expenses of $506,573 and $1,013,146 (amortization of prepaid expenses) and an increase to reported net loss in the amount of $536,319 and $1,505,195 for the three and six months ended October 31, 2015, respectively.
The impact of the adjustments to the Companys condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive loss, condensed consolidated statements of stockholders equity (deficiency) and condensed consolidated statements of cash flows for the three and six months ending October 31, 2015 is as follows: