Asia Equity Exchange Group, Inc. (OTCMKTS:AEEX) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim ReviewItem 4.02(a). Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
On November 17, 2017, our Board of Directors, after considering the recommendation of management and discussion with Beijing Yongtuo CPAs (Special general partner) Shenzhen Branch, our independent registered public accounting firm, decided it was necessary to restate our previously issued consolidated financial statements for the fiscal year ended December 31, 2016 and the quarterly periods ended March 31, 2017 and June 30, 2017. We are stating our previously issued consolidated financial statements due to the fact that we discovered that we had incorrectly accounted for goodwill arising from reverse acquisition of a public shell corporation as an asset instead of charging it to the capital deficiency account in accordance with the United States generally accepted accounting principles.
The following table illustrates the correction as it is associated with certain line items in the financial statements:
| As of December 31, 2016 | ||||||
| As reported | As restated | |||||
| ASSETS | ||||||
| Goodwill | $ | 1,189,921 | $ | – | ||
| STOCKHOLDERS’ DEFICIT | ||||||
| Capital Deficiency | $ | (23,713 | ) | $ | (1,213,634 | ) |
The Company determined that the error of adopting an incorrect accounting policy for goodwill was material to financial statements for the fiscal year ended December 31, 2016 and the quarterly periods ended March 31, 2017 and June 30, 2017, which therefore required restatement. Accordingly, our previously issued consolidated financial statements for these periods should no longer be relied upon, and we will amend our December 31, 2016 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2017 and June 30, 2017.
About Asia Equity Exchange Group, Inc. (OTCMKTS:AEEX)
Asia Equity Exchange Group, Inc., formerly I In The Sky, Inc., operates in the online equity information industry. The Company through its subsidiary, Asia Equity Exchange Group Company Limited, offers an international equity assistance and information service platform designed to provide member registration services, equity investment financing information to enterprises in Asia, mainly in China. Its member registration services refer to companies seeking to join its equity investment and financing information dissemination platform. The Company through its indirect subsidiaries, AEEX (HK) International Finance Service Limited and Yinfu Guotai Investment Consultant (Shenzhen) Co. Ltd., is also engaged in the provision of investment and corporate management consultancy services. The Company’s original business plan was to manufacture and market global positioning system (GPS) tracking devices and software to businesses and families.
