v3.26.1
Restatement of Interim Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2025
Restatement of Interim Financial Information (Unaudited)  
Restatement of Interim Financial Information (Unaudited)

Note 12: Restatement of Interim Financial Information (Unaudited)

As described in Note 2, the Company identified errors related to certain inputs and assumptions used in the valuation models for its SAFE Notes and stock-based compensation expense. These errors resulted in an overstatement of the fair value of SAFE Notes and an understatement of stock-based compensation expense in previously issued financial statements.

The Company has restated the previously issued quarterly (unaudited) financial data for the six-month periods ended June 30, 2024 and 2025, and the three- and nine-month periods ended September 30, 2024 and 2025, to correct these errors. The impacts of the restatement on the Company’s interim Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Stockholders’ Equity (Deficit) and Consolidated Statements of Cash Flows for each of the affected quarterly periods are presented below. The misstatements did not have a material impact on reported cash flows during the period, as the valuations pertained to non-cash transactions.

Consolidated Balance Sheet – As of June 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

SAFE Notes subscription receivable

$

$

33,000

$

33,000

Total assets

$

4,926,231

$

33,000

$

4,959,231

Liabilities

SAFE Notes

$

20,463,632

$

(4,917,505)

$

15,546,127

Total liabilities

$

20,564,519

$

(4,917,505)

$

15,647,014

Total stockholders’ deficit

$

(15,638,288)

$

4,950,505

$

(10,687,783)

Consolidated Balance Sheet – As of September 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

SAFE Notes subscription receivable

$

$

28,000

$

28,000

Total assets

$

30,524,544

$

28,000

$

30,552,544

Liabilities

SAFE Notes

$

$

$

Total liabilities

$

605,325

$

138,977

$

744,302

Total stockholders’ equity

$

29,919,219

$

(110,977)

$

29,808,242

Consolidated Statement of Operations – For the six months ended June 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Operating expenses:

General and administrative expenses

$

752,535

$

892,601

$

1,645,136

Research and development expenses

$

135,930

$

77,832

$

213,762

Other non-operating income (expense):

 

  ​

 

  ​

 

  ​

Change in fair value of SAFE notes

$

(1,251,721)

$

1,409,741

$

158,020

Net loss

$

(2,129,151)

$

439,308

$

(1,689,843)

Basic and diluted weighted average shares outstanding of common stock

 

658,569

 

4,826,068

 

5,484,637

Basic and diluted net loss per share of common stock

$

(3.23)

$

2.92

$

(0.31)

Consolidated Statement of Operations – For the three months ended September 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Operating expenses:

 

  ​

 

  ​

 

  ​

General and administrative expenses

$

486,151

$

101,016

$

587,167

Research and development expenses

$

219,478

$

(72,754)

$

146,724

Other non-operating income (expense):

 

  ​

 

  ​

 

  ​

Change in fair value of SAFE notes

$

(1,248,279)

$

752,928

$

(495,351)

Net loss

$

(1,944,963)

$

724,667

$

(1,220,296)

Basic and diluted weighted average shares outstanding of common stock

 

16,182,268

 

(2,992,451)

 

13,189,817

Basic and diluted net loss per share of common stock

$

(0.12)

$

0.03

$

(0.09)

Consolidated Statement of Operations – For the nine months ended September 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Operating expenses:

General and administrative expenses

$

1,238,686

$

993,617

$

2,232,303

Research and development expenses

$

355,408

$

5,078

$

360,486

Other non-operating income (expense):

 

  ​

 

  ​

 

  ​

Change in fair value of SAFE notes

$

(2,500,000)

$

2,162,669

$

(337,331)

Net loss

$

(4,074,114)

$

1,163,975

$

(2,910,139)

Basic and diluted weighted average shares outstanding of common stock

 

13,006,041

 

(4,329,737)

 

8,676,304

Basic and diluted net loss per share of common stock

$

(0.31)

$

(0.02)

$

(0.33)

Consolidated Statement of Operations – For the six months ended June 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Operating expenses:

General and administrative expenses

$

2,718,780

$

(450,018)

$

2,268,762

Research and development expenses

$

780,517

$

769,258

$

1,549,775

Other non-operating income (expense):

 

  ​

 

  ​

 

  ​

Change in fair value of SAFE notes

$

(3,638,167)

$

519,225

$

(3,118,942)

Net loss

$

(7,136,460)

$

199,985

$

(6,936,475)

Basic and diluted weighted average shares outstanding of common stock

 

16,237,748

 

(2,180,399)

 

14,057,349

Basic and diluted net loss per share of common stock

$

(0.44)

$

(0.05)

$

(0.49)

Consolidated Statement of Operations – For the three months ended September 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Operating expenses:

 

  ​

 

  ​

 

  ​

General and administrative expenses

$

6,700,416

$

93,626

$

6,794,042

Research and development expenses

$

2,104,021

$

(183,649)

$

1,920,372

Other non-operating income (expense):

 

  ​

 

  ​

 

  ​

Change in fair value of SAFE notes

$

(31,601,632)

$

(5,113,475)

$

(36,715,107)

Net loss

$

(40,390,883)

$

(5,023,452)

$

(45,414,335)

Basic and diluted weighted average shares outstanding of common stock

 

31,316,149

 

(7,881,883)

 

23,434,266

Basic and diluted net loss per share of common stock

$

(1.29)

$

(0.65)

$

(1.94)

Consolidated Statement of Operations – For the nine months ended September 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Operating expenses:

 

  ​

 

  ​

 

  ​

General and administrative expenses

$

9,419,196

$

(356,392)

$

9,062,804

Research and development expenses

$

2,884,538

$

585,609

$

3,470,147

Other non-operating income (expense):

 

  ​

 

  ​

 

  ​

Change in fair value of SAFE notes

$

(35,239,799)

$

(4,594,250)

$

(39,834,049)

Net loss

$

(47,527,343)

$

(4,823,467)

$

(52,350,810)

Basic and diluted weighted average shares outstanding of common stock

 

21,282,445

 

(3,891,242)

 

17,391,203

Basic and diluted net loss per share of common stock

$

(2.23)

$

(0.78)

$

(3.01)

Consolidated Statement of stockholders’ equity (deficit) for six months ended June 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Balance at December 31, 2023

$

(630,192)

$

1,090,453

$

460,261

Stock-based compensation

 

140,730

 

965,135

 

1,105,865

Net loss

 

(2,129,151)

 

439,308

 

(1,689,843)

Balance at June 30, 2024

$

(2,618,613)

$

2,494,896

$

(123,717)

Consolidated Statement of stockholders’ equity (deficit) for nine months ended September 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Balance at December 31, 2023

$

(630,192)

$

1,090,453

$

460,261

Stock-based compensation

 

145,273

 

993,302

 

1,138,575

Net loss

 

(4,074,114)

 

1,163,975

 

(2,910,139)

Balance at September 30, 2024

$

(4,559,033)

$

3,247,730

$

(1,311,303)

Consolidated Statement of stockholders’ equity (deficit) for three months ended September 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Balance at June 30, 2024

$

(2,618,613)

$

2,494,896

$

(123,717)

Stock-based compensation

 

4,543

 

28,167

 

32,710

Net loss

 

(1,944,963)

 

724,667

 

(1,220,296)

Balance at September 30, 2024

$

(4,559,033)

$

3,247,730

$

(1,311,303)

Consolidated Statement of stockholders’ equity (deficit) for six months ended June 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Balance at December 31, 2024

$

(8,513,101)

$

4,431,280

$

(4,081,821)

Stock-based compensation

 

11,273

 

216,400

 

227,673

Net loss

 

(7,136,460)

 

199,985

 

(6,936,475)

Balance at June 30, 2025

$

(15,638,288)

$

4,847,665

$

(10,790,623)

Consolidated Statement of stockholders’ equity (deficit) for nine months ended September 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Balance at December 31, 2024

$

(8,513,101)

$

4,431,280

$

(4,081,821)

Stock-based compensation

 

5,567,153

 

97,296

 

5,664,449

Issuance of Common Stock upon conversion of SAFE Notes

 

53,328,419

 

182,815

 

53,511,234

Net loss

 

(47,527,343)

 

(4,823,467)

 

(52,350,810)

Balance at September 30, 2025

$

29,919,219

$

(110,977)

$

29,808,242

Consolidated Statement of stockholders’ equity (deficit) for three months ended September 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Balance at June 30, 2025

$

(15,638,288)

$

4,848,486

$

(10,789,802)

Stock-based compensation

 

5,555,880

 

(119,104)

 

5,436,776

Issuance of Common Stock upon conversion of SAFE Notes

 

53,328,419

 

182,815

 

53,511,234

Net loss

 

(40,390,883)

 

(5,023,451)

 

(45,414,334)

Balance at September 30, 2025

$

29,919,219

$

(110,977)

$

29,808,242

Consolidated Statement of cash flows for the six months ended June 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Cash flows from operating activities:

Net loss

$

(2,129,151)

$

439,308

$

(1,689,843)

Change in fair value of SAFE Notes

 

1,251,721

 

(1,409,741)

 

(158,020)

Stock-based compensation

 

135,432

 

970,433

 

1,105,865

Consolidated Statement of cash flows for the nine months ended September 30, 2024

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Cash flows from operating activities:

Net loss

$

(4,074,114)

$

1,163,975

$

(2,910,139)

Change in fair value of SAFE Notes

 

2,500,000

 

(2,004,649)

 

495,351

Stock-based compensation

 

139,880

 

998,695

 

1,138,575

Consolidated Statement of cash flows for the six months ended June 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Cash flows from operating activities:

 

  ​

 

  ​

 

  ​

Net loss

$

(7,136,460)

$

199,985

$

(6,936,475)

Change in fair value of SAFE Notes

 

3,638,167

 

(519,225)

 

3,118,942

Stock-based compensation

 

10,452

 

217,221

 

227,673

Consolidated Statement of cash flows for the nine months ended September 30, 2025

  ​ ​ ​

As Previously Reported

  ​ ​ ​

Adjustment

  ​ ​ ​

As Restated

Cash flows from operating activities:

Net loss

$

(47,527,343)

$

(4,823,467)

$

(52,350,810)

Change in fair value of SAFE Notes

 

35,239,799

 

4,594,250

 

39,834,049

Stock-based compensation

 

5,567,153

 

97,296

 

5,664,449