NOTE 15. RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

On June 20, 2025, the Company's management, upon the recommendation of the Audit Committee of the Board of Directors, concluded that the Company’s previously issued unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2025 should no longer be relied upon due to an error described below, and that such financial statements should be restated. The Company evaluated the materiality of the error both qualitatively and quantitatively in accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements in Current Year Financial Statements, and determined the effect of the correction was material as of and for the three months ended March 31, 2025, and as a result, the Company is restating the unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2025, in accordance with ASC 250, Accounting Changes and Error Corrections.

We have determined that the error was a result of a material weakness in internal control over financial reporting that is reported in management’s report on internal control over financial reporting included in Item 4 of this report.

This restatement of the Company's previously issued unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2025 is for the purposes of correcting misstatements for (i) certain assumptions used to calculate the fair value of the Indigo Capital Convertible Notes accounted for under the fair value option that were not appropriate and (ii) the fair value of the Indigo Capital Convertible Notes that was not adjusted to fair value upon conversion into shares of common stock.

The restatement had no impact on total net cash flows from operating, investing or financing activities.

Condensed Consolidated Balance Sheet


	As of March 31, 2025
	Originally Reported			Indigo Convertible Notes Restatement Adjustment			As Restated
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities
Current portion of notes payable	$	3,655,568		$	1,990,256		$	5,645,824
Total current liabilities	$	38,297,826		$	1,990,256		$	40,288,082
Total liabilities	$	38,299,141		$	1,990,256		$	40,289,397
Stockholders’ Deficit
Additional paid-in capital	$	98,432,170		$	601,119		$	99,033,289
Accumulated deficit	$	(135,428,605	)	$	(2,591,375	)	$	(138,019,980	)
Total Stockholders’ Deficit	$	(36,987,668	)	$	(1,990,256	)	$	(38,977,924	)

Condensed Consolidated Statement of Operations


	Three Months Ended March 31, 2025
	Originally Reported			Indigo Convertible Notes Restatement Adjustment			As Restated
Change in fair value of debt	$	28,997		$	227,525		$	256,522
Loss on issuance of debt	$	-		$	(707,800	)	$	(707,800	)
Loss on extinguishment of debt	$	(3,386,416	)	$	(2,111,100	)	$	(5,497,516	)
Loss before provision for income taxes	$	(14,020,050	)	$	(2,591,375	)	$	(16,611,425	)
Net loss	$	(14,020,050	)	$	(2,591,375	)	$	(16,611,425	)
Net loss available to common shareholders	$	(6,698,380	)	$	(2,591,375	)	$	(9,289,755	)
Net loss per common share, basic and diluted	$	(0.20	)	$	(0.08	)	$	(0.28	)

Condensed Consolidated Statement of Stockholders' Deficit


	Three Months Ended March 31, 2025
	Originally Reported		Indigo Convertible Notes Restatement Adjustment		As Restated
Issuance of Common Stock to extinguish debt - Additional paid-in capital	$	3,783,694	$	601,119	$	4,384,813

Condensed Consolidated Statement of Cash Flows


	Three Months Ended March 31, 2025
	Originally Reported			Indigo Convertible Notes Restatement Adjustment			As Restated
Net loss	$	(14,020,050	)	$	(2,591,375	)	$	(16,611,425	)
Change in fair value of debt	$	28,997		$	227,525		$	256,522
Loss on issuance of debt	$	-		$	(707,800	)	$	(707,800	)
Loss on extinguishment of debt	$	(3,386,416	)	$	(2,111,100	)	$	(5,497,516	)