v3.25.2
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