Freeze Tag Inc (FRZT)

[iPickle]

8k out! On or about August 11, 2014, management and the Company concluded that the Company should restate derivative related charges in connection with convertible debt issued during the first quarter of 2014. The Company’s method of valuing the convertible debt did not include recognition of derivative liabilities associated with the issuance of the convertible debt. The determination was made in connection with the preparation of the Form 10-Q for the second quarter ended June 30, 2014 (the “Form 10-Q”), at the advice of M&K CPAS, PLLC, the Company’s engaged independent registered public accounting firm (“M&K”). The cumulative effect of this change through March 31, 2014 is a $10,951 increase in convertible debts payable, a $325,939 increase in derivatives, a $336,890 increase in current and total liabilities, a decrease of $200,000 in additional paid-in capital, and a $136,890 increase in the Company’s net loss. The change had no effect on the Company's reported cash flows.

The Company expects to include the restatements in the Form 10-Q which is expected to be filed no later than August 14, 2014.