Document ID: 12989

Text:
Section 4.04 Unaudited Financial Statements. Complete copies of the unaudited financial statements consisting of the balance sheet of the Business as at December 31, 2016 and 2015 and the related statements of income and retained earnings, stockholders' equity and cash flow for the years then ended (the Unaudited Financial Statements) have been delivered to Buyer. The Unaudited Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the period involved, subject to normal and recurring year-end adjustments (the effect of which will not be materially adverse), the absence of notes (that, if presented, would not differ materially from those presented in audited financial statements prepared in accordance with GAAP) and adjustments related to stock-based compensation, preferred warrant expenses, discounts of convertible debt or accrued income tax assets and liabilities. The Unaudited Financial Statements are based on the books and records of the Business, and fairly present in all material respects the financial condition of the Business as of the respective dates they were prepared and the results of the operations of the Business for the periods indicated. The balance sheet of the Business as of December 31, 2016 is referred to herein as the Balance Sheet and the date thereof as the Balance Sheet Date. Seller maintains a standard system of accounting for the Business established and administered in accordance with GAAP, with the exception to FASB ASC 718 Compensation Stock Compensation, FASB ASC 505-50 Accounting for Equity Instrument that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling,

Named Entities:

Tokenized Text:
Section
4
.
04
Unaudited
Financial
Statements
.
Complete
copies
of
the
unaudited
financial
statements
consisting
of
the
balance
sheet
of
the
Business
as
at
December
31
,
2016
and
2015
and
the
related
statements
of
income
and
retained
earnings
,
stockholders
'
equity
and
cash
flow
for
the
years
then
ended
(
the
Unaudited
Financial
Statements
)
have
been
delivered
to
Buyer
.
The
Unaudited
Financial
Statements
have
been
prepared
in
accordance
with
GAAP
applied
on
a
consistent
basis
throughout
the
period
involved
,
subject
to
normal
and
recurring
year-end
adjustments
(
the
effect
of
which
will
not
be
materially
adverse
)
,
the
absence
of
notes
(
that
,
if
presented
,
would
not
differ
materially
from
those
presented
in
audited
financial
statements
prepared
in
accordance
with
GAAP
)
and
adjustments
related
to
stock-based
compensation
,
preferred
warrant
expenses
,
discounts
of
convertible
debt
or
accrued
income
tax
assets
and
liabilities
.
The
Unaudited
Financial
Statements
are
based
on
the
books
and
records
of
the
Business
,
and
fairly
present
in
all
material
respects
the
financial
condition
of
the
Business
as
of
the
respective
dates
they
were
prepared
and
the
results
of
the
operations
of
the
Business
for
the
periods
indicated
.
The
balance
sheet
of
the
Business
as
of
December
31
,
2016
is
referred
to
herein
as
the
Balance
Sheet
and
the
date
thereof
as
the
Balance
Sheet
Date
.
Seller
maintains
a
standard
system
of
accounting
for
the
Business
established
and
administered
in
accordance
with
GAAP
,
with
the
exception
to
FASB
ASC
718
Compensation
Stock
Compensation
,
FASB
ASC
505-50
Accounting
for
Equity
Instrument
that
are
Issued
to
Other
than
Employees
for
Acquiring
,
or
in
Conjunction
with
Selling
,