Restatement of Previously Issued Financial Statements (Tables)

12 Months Ended

Dec. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Schedule of Restatement of Previously Issued Financial Statement

The following table presents the effect of the Restatement Items on the Company’s consolidated balance sheet for the period indicated:

		As Previously Reported				Restatement Adjustment				As Restated
		As of December 31, 2024
		As Previously Reported				Restatement Adjustment				As Restated
ASSETS
Current assets:
Cash		$	504,189			$	-			$	504,189
Accounts receivable, net			28,030				-				28,030
Prepaid expenses and other current assets			152,122				-				152,122
Note receivable, net			-				-				-
Assets of discontinued operations			-				-				-
Total current assets			684,341				-				684,341

Property and equipment, net			904,680				-				904,680

Total assets		$	1,589,021			$	-			$	1,589,021

LIABILITIES AND STOCKHOLDERS’ (DEFICIT)

Current liabilities:
Accounts payable and accrued expenses		$	2,714,102			$	3			$	2,714,105
Dividends payable			1,250,979				(755,458	)			495,521
Liabilities of discontinued operations			4,017,920				-				4,017,920
Total current liabilities			7,983,001				(755,455	)			7,227,546

Commitment and Contingencies - Note 12			-				-				-

Stockholders’ deficit:
Preferred stock - $0.001 par value, 5,000,000 authorized, Preferred stock at September 30, 2024 and 4,550 at December 31, 2023 issued and outstanding.			51				-				51
Common stock - $0.001 par value, 60,000,000 authorized; 2,013,199 at September 30, 2024 and 1,148,321 at December 31, 2023 issued and outstanding.			1,168				-				1,168
Additional paid-in capital			58,588,953				755,455				59,344,408
Accumulated deficit			(64,984,152	)			-				(64,984,152	)
Total stockholders’ deficit			(6,393,980	)			755,455				(5,638,525	)

Total liabilities and stockholders’ deficit		$	1,589,021			$	-			$	1,589,021

The following table presents the effect of the Restatement Items on the Company’s consolidated statement of operations for the year indicated:

		As Previously Reported				Restatement Adjustment				As Restated
		Year Ended December 31, 2024
		As Previously Reported				Restatement Adjustment				As Restated
Revenues, net			72,050				-				72,050
Cost of revenues			305,248				-				305,248
Gross profit			(233,198	)			-				(233,198	)

Operating expenses:

General and administrative			5,390,069				-				5,390,069
Total operating expenses			5,390,069				-				5,390,069

Operating loss			(5,623,267	)			-				(5,623,267	)

Other income (expense):
Interest income			3,470				-				3,470
Interest expense			(677,981	)			-				(677,981	)
Total other income (expenses)			(674,511	)			-				(674,511	)

Net loss before income taxes			(6,297,778	)			-				(6,297,778	)

Income taxes			-				-				-

Net loss from continuing operations			(6,297,778	)			-				(6,297,778	)

Net income (loss) from discontinued operations			(2,748,049	)			-				(2,748,049	)

Net loss			(9,045,827	)			-				(9,045,827	)

Preferred dividends			(1,250,979	)			(1,881,671	)			(3,132,650	)

Net loss available to common stockholders		$	(10,296,806	)		$	(1,881,671	)		$	(12,178,477	)

Net loss per share from continuing operations - Basic and diluted		$	(4.01	)		$	(2.00	)		$	(6.01	)

Income (Loss) per share from discontinued operations - Basic and diluted		$	(1.75	)		$	-			$	(1.75	)

Net loss per share - Basic and diluted		$	(5.76	)		$	(2.00	)		$	(7.76	)

Weighted average common shares outstanding
Basic and diluted			1,569,627				-				1,569,627

The following table presents the effect of the Restatement Items on the Company’s consolidated statement of stockholders’ equity:

		Number of Shares				Par				Number of Shares				Par				Additional Paid-In-Capital				Accumulated Deficit				Total
BALANCE - December 31, 2024			50,502			$	51				2,029,832			$	1,168			$	58,588,953			$	(64,984,152	)		$	(6,393,980	)
Cumulative adjustments			-				-				-				-				755,455				-				755,455
BALANCE - December 31, 2024 (As Restated)			50,502			$	51				2,029,832			$	1,168			$	59,344,408			$	(64,984,152	)		$	(5,638,525	)

The following table presents the effect of the Restatement Items on the Company’s consolidated statement of cash flows:

		As Previously Reported				Restatement Adjustment				As Restated
		Year Ended December 31, 2024
		As Previously Reported				Restatement Adjustment				As Restated
Cash flows from operating activities:
Net loss		$	(9,045,827	)		$	-			$	(9,045,827	)
Net income (loss) from discontinued operations			(2,748,049	)			-				(2,748,049	)
Net loss from continuing operations			(6,297,778	)			-				(6,297,778	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			139,182				-				139,182
Interest expense - OID			640,000				-				640,000
Share based compensation, net			35,415				-				35,415
Changes in operating assets and liabilities:
Accounts receivable			(28,030	)			-				(28,030	)
Prepaid expenses and other current assets			33,360				-				33,360
Accounts payable and accrued expenses			5,063,810				-				5,063,810
Net cash provided (used) in operating activities from continuing operations			(414,041	)			-				(414,041	)
Net cash provided (used) in operating activities from discontinued operations			(2,748,049	)			-				(2,748,049	)
Net cash used in operating activities			(3,162,090	)			-				(3,162,090	)

Cash flows from investing activities:
Note receivable			(375,000	)			-				(375,000	)
Net cash used in investing activities			(375,000	)			-				(375,000	)

Cash flows from financing activities:
Proceeds from issuance of preferred stock, net of offering costs			2,221,492				-				2,221,492
Proceeds from notes payable			1,600,000				-				1,600,000
Payments on finance lease obligation			(1,724	)			-				(1,724	)
Net cash provided in financing activities			3,819,768				-				3,819,768

Net increase (decrease) in cash			282,678				-				282,678

Cash, beginning of period			221,511				-				221,511

Cash, end of period		$	504,189			$	-			$	504,189

Supplemental cash flow information:
Interest paid		$	-			$	-			$	-
Income tax		$	-			$	-			$	-

Non-cash investing and financial activities:
Preferred stock conversion		$	2			$	-			$	2
Converted accrued C1 dividends		$	-			$	29,000			$	29,000
Accrued dividends		$	1,251,000			$	(1,251,000	)		$	-
Preferred dividends accrued – C-1 & C-2		$	-			$	306,000			$	306,000
Preferred dividends accrued – B-1		$	-			$	88,000			$	88,000
Preferred dividends accrued converted into C-1		$	-			$	(218,000	)		$	(218,000	)
Capitalized dividends – D, E, F & G		$	-			$	2,738,000			$	2,738,000
Settlement of notes receivable in connection with asset purchase agreement		$	1,044,000			$	-			$	1,044,000