| Schedule of Effects of Restatement Adjustments |
Schedule
of Effects of Restatement Adjustments
The following table presents the effects of
the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated balance
sheets as March 31, 2025:
| | |
Stated | | |
Adjustment | | |
Restated | |
| | |
March 31, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY (DEFICIT) | |
| | | |
| | | |
| | |
| Mezzanine equity | |
| | | |
| | | |
| | |
| Series C-1 Preferred Stock, $1,000.00 par value; 30,375 shares authorized; 30,375 and 30,375 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | |
$ | - | | |
$ | 30,375,000 | | |
$ | 30,375,000 | |
| Total mezzanine equity | |
| 12,983,476 | | |
| 30,375,000 | | |
| 34,353,922 | |
| | |
| | | |
| | | |
| | |
| Stockholders’ equity (deficit) | |
| | | |
| | | |
| | |
| Series C-1 Preferred Stock, $1,000.00 par value; 30,375 shares authorized; 30,375 and 30,375 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | |
| 30,375,000 | | |
| (30,375,000 | ) | |
| - | |
| Total stockholders’ equity (deficit) | |
$ | 5,848,722 | | |
$ | (30,375,000 | ) | |
$ | (27,039,635 | ) |
The following table presents the effects of
the restatement adjustments for the 2025 Financial Statement on the Company’s unaudited interim consolidated statement of stockholders’ equity (deficit)
as March 31, 2025:
| | |
As Previously Stated | |
| | |
Stockholders’
Equity (Deficit) | | |
Mezzanine Equity | |
| | |
Series C-1
Preferred Stock | | |
| | |
Series C-1
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Total | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| 30,375 | | |
$ | 30,375,000 | | |
$ | 12,747,473 | | |
| - | | |
$ | - | | |
$ | 7,457,000 | |
| Reclassification of C-1 Preferred Stock | |
| - | | |
| - | | |
| - | | |
| -- | | |
| -- | | |
| -- | |
| Balances, March 31, 2025 | |
| 30,375 | | |
$ | 30,375,000 | | |
$ | 3,335,365 | | |
| - | | |
$ | - | | |
$ | 3,978,922 | |
| | |
Restatement Adjustment | |
| | |
Stockholders’
Equity (Deficit) | | |
Mezzanine Equity | |
| | |
Series C-1
Preferred Stock | | |
| | |
Series C-1
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Total | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| - | | |
$ | - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| Reclassification of C-1 Preferred Stock | |
| (30,375 | ) | |
| (30,375,000 | ) | |
| (30,375,000 | ) | |
| 30,375 | | |
| 30,375,000 | | |
| 30,375,000 | |
| Balances, March 31, 2025 | |
| (30,375 | ) | |
$ | (30,375,000 | ) | |
$ | (30,375,000 | ) | |
| 30,375 | | |
$ | 30,375,000 | | |
$ | 30,375,000 | |
| | |
As Restated | |
| | |
Stockholders’
Equity (Deficit) | | |
Mezzanine Equity | |
| | |
Series C-1
Preferred Stock | | |
| | |
Series C-1
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Total | | |
Shares | | |
Amount | | |
Total | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Balances, December 31, 2024 | |
| 30,375 | | |
$ | 30,375,000 | | |
$ | 12,747,473 | | |
| - | | |
$ | - | | |
$ | 7,457,000 | |
| Reclassification of C-1 Preferred Stock | |
| (30,375 | ) | |
| (30,375,000 | ) | |
| (30,375,000 | ) | |
| 30,375 | | |
| 30,375,000 | | |
| 30,375,000 | |
| Balances, March 31, 2025 | |
| - | | |
$ | - | | |
$ | (27,039,635 | ) | |
| 30,375 | | |
$ | 30,375,000 | | |
$ | 34,353,922 | |
There was no impact on the Company’s unaudited
interim consolidated income statement consolidated or cash flow statement for the three ending March 31, 2025.
The
following table presents the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated balance sheets
as June 30, 2025:
| | |
| | | |
| | | |
| | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| ASSETS | |
| | | |
| | | |
| | |
| Accounts receivable, net of allowances of $61,773 | |
| | | |
| | | |
| | |
| Total current assets | |
| | | |
| | | |
| | |
| Lease right of use | |
| | | |
| | | |
| | |
| Equity investments | |
| | | |
| | | |
| | |
| Note receivable from HRCFG | |
| | | |
| | | |
| | |
| Total assets | |
| | | |
| | | |
| | |
| LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY (DEFICIT) | |
| | | |
| | | |
| | |
| Derivative liability | |
$ | - | | |
$ | 815,897 | | |
$ | 815,897 | |
| Lease liability, current portion | |
| | | |
| | | |
| | |
| Convertible notes payable – current portion, net | |
| 2,888,947 | | |
| (1,091,224 | ) | |
| 1,797,723 | |
| Additional payments for acquisition, current portion | |
| 5,000,000 | | |
| (50,000 | ) | |
| 4,950,000 | |
| Total current liabilities | |
| 12,463,211 | | |
| (325,327 | ) | |
| 12,137,884 | |
| Lease liability, net of current portion | |
| | | |
| | | |
| | |
| Liability for excess losses of equity method investee | |
| | | |
| | | |
| | |
| Deferred tax liability | |
| | | |
| | | |
| | |
| Additional payments for acquisition, net of current portion | |
| 1,125,000 | | |
| (175,000 | ) | |
| 950,000 | |
| Total liabilities | |
| 16,687,766 | | |
| (500,327 | ) | |
| 16,187,439 | |
| | |
| | | |
| | | |
| | |
| Mezzanine equity | |
| | | |
| | | |
| | |
| Series C-2 Preferred Stock $1,000.00 par value; 20,000 shares
authorized; 10,719 and 8,576 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | |
| - | | |
| 10,121,922 | | |
| 10,121,922 | |
| | |
| | | |
| | | |
| | |
| Stockholders’
equity (deficit) | |
| | | |
| | | |
| | |
| Series C-2 Preferred Stock $1,000.00 par value; 20,000 shares
authorized; 10,719 and 8,576 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | |
| 10,121,922 | | |
| (10,121,922 | ) | |
| - | |
| Additional paid-in capital | |
| 82,712,709 | | |
| (1,165,562 | ) | |
| 81,547,147 | |
| Accumulated deficit | |
| (90,203,241 | ) | |
| 1,665,889 | | |
| (88,537,352 | ) |
| Total stockholders’ equity (deficit) | |
$ | 2,631,473 | | |
$ | (9,621,595 | ) | |
$ | (6,990,122 | ) |
| Total liabilities and stockholders’ equity | |
| | | |
| | | |
| | |
The
following tables present the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated income statements
for the three and six months ending June 30, 2025:
| | |
| | | |
| | | |
| | |
| | |
For the Three Months Ended June 30, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| Gain on changes in fair value | |
$ | - | | |
$ | 1,660,160 | | |
$ | 1,660,160 | |
| Interest expense | |
| (221,325 | ) | |
| (219,271 | ) | |
| (440,596 | ) |
| Loss on debt extinguishment | |
| | | |
| | | |
| | |
| Gain on settlement liability | |
| 714,500 | | |
| 225,000 | | |
| 939,500 | |
| Total other income (expense) | |
| (219,006 | ) | |
| 1,665,889 | | |
| 1,446,883 | |
| Provision for
income taxes | |
| | | |
| | | |
| | |
| Net loss from continuing operations | |
| (3,209,094 | ) | |
| 1,665,889 | | |
| (1,543,205 | ) |
| Net loss | |
$ | (5,284,858 | ) | |
$ | 1,665,889 | | |
$ | (3,618,969 | ) |
| Net loss attributable to common
shareholders | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| Net loss from continuing operations per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (318.00 | ) | |
$ | 167.66 | | |
$ | (155.31 | ) |
| Diluted | |
$ | (318.00 | ) | |
$ | 167.66 | | |
$ | (155.31 | ) |
| | |
| | | |
| | | |
| | |
| Net loss per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (532.00 | ) | |
$ | 167.66 | | |
$ | (364.23 | ) |
| Diluted | |
$ | (532.00 | ) | |
$ | 167.66 | | |
$ | (364.23 | ) |
| | |
| | | |
| | | |
| | |
| | |
For the Six Months Ended June 30, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| Gain on changes in fair value | |
$ | - | | |
$ | 1,660,160 | | |
$ | 1,660,160 | |
| Interest expense | |
| (221,325 | ) | |
| (219,271 | ) | |
| (440,596 | ) |
| Gain on settlement liability | |
| 714,500 | | |
| 225,000 | | |
| 939,500 | |
| Total other income (expense) | |
| (511,749 | ) | |
| 1,665,889 | | |
| 1,154,140 | |
| Net loss from continuing operations | |
| (4,701,365 | ) | |
| 1,665,889 | | |
| (3,035,476 | ) |
| Net Loss | |
$ | (22,688,444 | ) | |
$ | 1,665,889 | | |
$ | (21,022,555 | ) |
| | |
| | | |
| | | |
| | |
| Net loss from continuing operations per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (628.80 | ) | |
$ | 222.78 | | |
$ | (405.93 | ) |
| Diluted | |
$ | (628.80 | ) | |
$ | 222.78 | | |
$ | (405.93 | ) |
| | |
| | | |
| | | |
| | |
| Net loss per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (3,034.00 | ) | |
$ | 222.78 | | |
$ | (2,811.31 | ) |
| Diluted | |
$ | (3,034.00 | ) | |
$ | 222.78 | | |
$ | (2,811.31 | ) |
The
following table presents the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated statement
of stockholders’ equity (deficit) as June 30, 2025:
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| As Previously Stated | |
| | |
Stockholders’
Equity (Deficit) | | |
Mezzanine Equity | |
| | |
Series C-1 | | |
Series C-2 | | |
Additional | | |
| | |
| | |
Series C-1 | | |
Series C-2 | | |
| |
| | |
Preferred Stock | | |
Preferred Stock | | |
Paid-In | | |
Accumulated | | |
| | |
Preferred Stock | | |
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 49,537,134 | | |
$ | (67,327,733 | ) | |
$ | 12,747,473 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 7,457,000 | |
| Reclassification of C-1 Preferred Stock | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| | | |
| | | |
| - | | |
| - | | |
| - | |
| Balances, March 31, 2025 | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 57,833,740 | | |
$ | (84,873,449 | ) | |
$ | 3,335,365 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
| 3,978,922 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
| - | | |
| 4,576 | | |
| 3,978,922 | | |
| - | | |
| - | | |
| 3,978,922 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Debt conversion | |
| - | | |
| - | | |
| 2,430 | | |
| 2,430,000 | | |
| 249,991 | | |
| | | |
| 2,680,000 | | |
| | | |
| | | |
| | | |
| | | |
| | |
| C-1 to C-2 exchange | |
| (2,025 | ) | |
| (2,025,000 | ) | |
| 3,213 | | |
| 3,213,000 | | |
| (837,821 | ) | |
| - | | |
| 350,179 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Divesture of NAYA | |
| (28,350 | ) | |
| (28,350,000 | ) | |
| - | | |
| - | | |
| 24,368,110 | | |
| - | | |
| (3,981,890 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Preferred stock issued | |
| - | | |
| - | | |
| 500 | | |
| 500,000 | | |
| - | | |
| - | | |
| 500,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Warrant exercise | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (5,284,858 | ) | |
| (5,284,858 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, June 30, 2025 | |
| - | | |
$ | - | | |
| 10,719 | | |
$ | 10,121,922 | | |
$ | 82,712,709 | | |
$ | (90,203,241 | ) | |
$ | 2,631,473 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Restatement Adjustment | |
| | |
Stockholders’
Equity (Deficit) | | |
Mezzanine Equity | |
| | |
Series C-1 | | |
Series C-2 | | |
Additional | | |
| | |
| | |
Series C-1 | | |
Series C-2 | | |
| |
| | |
Preferred Stock | | |
Preferred Stock | | |
Paid-In | | |
Accumulated | | |
| | |
Preferred Stock | | |
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| Reclassification of C-1 Preferred Stock | |
| (30,375 | ) | |
| (30,375,000 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| (30,375,000 | ) | |
| 30,375 | | |
| 30,375,000 | | |
| - | | |
| - | | |
| 30,375,000 | |
| Balances, March 31, 2025 | |
| (30,375 | ) | |
$ | (30,375,000 | ) | |
| - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | (30,375,000 | ) | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 30,375,000 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
| - | | |
| (4,576 | ) | |
| (3,978,922 | ) | |
| - | | |
| - | | |
| (3,978,922 | ) | |
| - | | |
| - | | |
| 4,576 | | |
| 3,978,922 | | |
| 3,978,922 | |
| Debt conversion | |
| - | | |
| - | | |
| (2,430 | ) | |
| (2,430,000 | ) | |
| (428,666 | ) | |
| - | | |
| (2,858,666 | ) | |
| - | | |
| - | | |
| 2,430 | | |
| 2,430,000 | | |
| 2,430,000 | |
| C-1 to C-2 exchange | |
| 2,025 | | |
| 2,025,000 | | |
| (3,213 | ) | |
| (3,213,000 | ) | |
| - | | |
| - | | |
| (1,188,000 | ) | |
| (2,025 | ) | |
| (2,025,000 | ) | |
| 3,213 | | |
| 3,213,000 | | |
| 1,188,000 | |
| Divesture of NAYA | |
| 28,350 | | |
| 28,350,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 28,350,000 | | |
| (28,350 | ) | |
| (28,350,000 | ) | |
| - | | |
| - | | |
| (28,350,000 | ) |
| Preferred stock issued | |
| - | | |
| - | | |
| (500 | ) | |
| (500,000 | ) | |
| - | | |
| - | | |
| (500,000 | ) | |
| - | | |
| - | | |
| 500 | | |
| 500,000 | | |
| 500,000 | |
| Warrant exercise | |
| - | | |
| - | | |
| - | | |
| - | | |
| (736,896 | ) | |
| - | | |
| (736,896 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,665,889 | | |
| 1,665,889 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, June 30, 2025 | |
| - | | |
$ | - | | |
| (10,719 | ) | |
$ | (10,121,922 | ) | |
$ | (1,165,562 | ) | |
$ | 1,665,889 | | |
$ | (9,621,595 | ) | |
| - | | |
$ | - | | |
| 10,719 | | |
$ | 10,121,922 | | |
$ | 10,121,922 | |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| As Restated | |
| | |
Stockholders’
Equity (Deficit) | | |
Mezzanine Equity | |
| | |
Series C-1 | | |
Series C-2 | | |
Additional | | |
| | |
| | |
Series C-1 | | |
Series C-2 | | |
| |
| | |
Preferred Stock | | |
Preferred Stock | | |
Paid-In | | |
Accumulated | | |
| | |
Preferred Stock | | |
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 49,537,134 | | |
$ | (67,327,733 | ) | |
$ | 12,747,473 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 7,457,000 | |
| Reclassification of C-1 Preferred Stock | |
| (30,375 | ) | |
| (30,375,000 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| (30,375,000 | ) | |
| 30,375 | | |
| 30,375,000 | | |
| - | | |
| - | | |
| 30,375,000 | |
| Balances, March 31, 2025 | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 57,833,740 | | |
$ | (84,873,449 | ) | |
$ | (27,039,635 | ) | |
| 30,375 | | |
| 30,375,000 | | |
| - | | |
$ | - | | |
| 34,353,922 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 4,576 | | |
| 3,978,922 | | |
| 3,978,922 | |
| Debt conversion | |
| - | | |
| - | | |
| - | | |
| - | | |
| (178,675 | ) | |
| - | | |
| (178,666 | ) | |
| - | | |
| - | | |
| 2,430 | | |
| 2,430,000 | | |
| 2,430,000 | |
| C-1 to C-2 exchange | |
| - | | |
| - | | |
| - | | |
| - | | |
| (837,821 | ) | |
| - | | |
| (837,821 | ) | |
| (2,025 | ) | |
| (2,025,000 | ) | |
| 3,213 | | |
| 3,213,000 | | |
| 1,188,000 | |
| Divesture of NAYA | |
| - | | |
| - | | |
| - | | |
| - | | |
| 24,368,110 | | |
| - | | |
| 24,368,110 | | |
| (28,350 | ) | |
| (28,350,000 | ) | |
| - | | |
| - | | |
| (28,350,000 | ) |
| Preferred stock issued | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 500 | | |
| 500,000 | | |
| 500,000 | |
| Warrant exercise | |
| - | | |
| - | | |
| - | | |
| - | | |
| (736,896 | ) | |
| - | | |
| (736,896 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (3,618,969 | ) | |
| (3,618,969 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, June 30, 2025 | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 81,547,147 | | |
$ | (88,537,352 | ) | |
$ | (6,990,122 | ) | |
| - | | |
| - | | |
| 10,719 | | |
$ | 10,121,922 | | |
| 10,121,922 | |
The
following table presents the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated cash flow
statements for the six months ending June 30, 2025:
| | |
| | | |
| | | |
| | |
| | |
For the Six Months Ended June 30, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| Cash flows from operating activities: | |
| | | |
| | | |
| | |
| Net loss | |
$ | (22,688,444 | ) | |
$ | 1,665,889 | | |
$ | (21,022,555 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | |
| | | |
| | | |
| | |
| Amortization of discount on notes payable | |
| 130,908 | | |
| 219,271 | | |
| 350,179 | |
| Gain on settlement | |
| (774,500 | ) | |
| (225,000 | ) | |
| (999,500 | ) |
| Gain on changes in FV | |
$ | - | | |
$ | (1,660,160 | ) | |
$ | (1,660,160 | ) |
The
following table presents the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated balance sheets
as September 30, 2025:
| | |
| | | |
| | | |
| | |
| | |
September 30, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | | |
| | |
| Warrant liability | |
$ | - | | |
$ | 256,034 | | |
$ | 256,034 | |
| Additional payments for acquisition, current portion | |
| 4,484,500 | | |
| (375,000 | ) | |
| 4,109,500 | |
| Total current liabilities | |
| 9,244,687 | | |
| (118,966 | ) | |
| 9,125,721 | |
| Additional payments for acquisition, net of current portion | |
| 800,000 | | |
| 150,000 | | |
| 950,000 | |
| Total liabilities | |
| 12,983,476 | | |
| 31,034 | | |
| 13,014,510 | |
| | |
| | | |
| | | |
| | |
| Stockholders’ equity | |
| | | |
| | | |
| | |
| Additional paid-in capital | |
| 90,063,124 | | |
| (945,950 | ) | |
| 89,117,174 | |
| Accumulated deficit | |
| (93,092,303 | ) | |
| 914,916 | | |
| (92,177,387 | ) |
| Total stockholders’ equity | |
$ | 5,848,722 | | |
$ | (31,034 | ) | |
$ | 5,817,688 | |
The
following tables present the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated income statements
for the three and nine months ending September 30, 2025:
| | |
| | | |
| | | |
| | |
| | |
For the Three Months Ended September 30, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| Gain on changes in fair value | |
$ | - | | |
$ | (33,566 | ) | |
$ | (33,566 | ) |
| Interest Expense | |
| (145,803 | ) | |
| (176,962 | ) | |
| (322,765 | ) |
| Loss on debt extinguishment | |
| (876,165 | ) | |
| (540,445 | ) | |
| (1,416,610 | ) |
| Total other income (expense) | |
| (1,009,141 | ) | |
| (750,973 | ) | |
| (1,760,114 | ) |
| Net loss from continuing operations | |
| (2,644,625 | ) | |
| (750,973 | ) | |
| (3,395,598 | ) |
| Net Loss | |
$ | (2,644,625 | ) | |
$ | (750,973 | ) | |
$ | (3,395,598 | ) |
| | |
| | | |
| | | |
| | |
| Net loss from continuing operations per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (30.80 | ) | |
$ | (8.71 | ) | |
$ | (39.40 | ) |
| Diluted | |
$ | (30.80 | ) | |
$ | (8.71 | ) | |
$ | (39.40 | ) |
| | |
| | | |
| | | |
| | |
| Net loss per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (30.80 | ) | |
$ | (8.71 | ) | |
$ | (39.40 | ) |
| Diluted | |
$ | (30.80 | ) | |
$ | (8.71 | ) | |
$ | (39.40 | ) |
| | |
| | | |
| | | |
| | |
| | |
For the Nine Months Ended September 30, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| Gain on changes in fair value | |
$ | - | | |
$ | 1,626,594 | | |
$ | 1,626,594 | |
| Interest Expense | |
| (273,629 | ) | |
| (396,233 | ) | |
| (669,862 | ) |
| Loss on debt extinguishment | |
| (1,568,435 | ) | |
| (540,445 | ) | |
| (2,108,880 | ) |
| Gain on settlement liability | |
| 714,500 | | |
| 225,000 | | |
| 939,500 | |
| Total other income (expense) | |
| (1,520,890 | ) | |
| 914,916 | | |
| (605,974 | ) |
| Net loss from continuing operations | |
| (7,345,990 | ) | |
| 914,916 | | |
| (6,431,074 | ) |
| Net Loss | |
$ | (25,333,069 | ) | |
$ | 914,916 | | |
$ | (24,418,153 | ) |
| | |
| | | |
| | | |
| | |
| Net loss from continuing operations per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (206.80 | ) | |
$ | 25.76 | | |
$ | (181.05 | ) |
| Diluted | |
$ | (206.80 | ) | |
$ | 25.76 | | |
$ | (181.05 | ) |
| | |
| | | |
| | | |
| | |
| Net loss per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (713.20 | ) | |
$ | 25.76 | | |
$ | (687.42 | ) |
| Diluted | |
$ | (713.20 | ) | |
$ | 25.76 | | |
$ | (687.42 | ) |
The
following table presents the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated statement of
stockholders’ equity as September 30, 2025:
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| As Previously Stated | |
| | |
Stockholders’ Equity | | |
Mezzanine Equity | |
| | |
Series C-1 | | |
Series C-2 | | |
Additional | | |
| | |
| | |
Series C-1 | | |
Series C-2 | | |
| |
| | |
Preferred Stock | | |
Preferred Stock | | |
Paid-In | | |
Accumulated | | |
| | |
Preferred Stock | | |
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 49,537,134 | | |
$ | (67,327,733 | ) | |
$ | 12,747,473 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 7,457,000 | |
| Reclassification of C-1 Preferred Stock | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| | | |
| | | |
| - | | |
| - | | |
| - | |
| Balances, March 31, 2025 | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 57,833,740 | | |
$ | (84,873,449 | ) | |
$ | 3,335,365 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
| 3,978,922 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
| - | | |
| 4,576 | | |
| 3,978,922 | | |
| - | | |
| - | | |
| 3,978,922 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Debt conversion | |
| - | | |
| - | | |
| 2,430 | | |
| 2,430,000 | | |
| 249,991 | | |
| | | |
| 2,680,000 | | |
| | | |
| | | |
| | | |
| | | |
| | |
| C-1 to C-2 exchange | |
| (2,025 | ) | |
| (2,025,000 | ) | |
| 3,213 | | |
| 3,213,000 | | |
| (837,821 | ) | |
| - | | |
| 350,179 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Divesture of NAYA | |
| (28,350 | ) | |
| (28,350,000 | ) | |
| - | | |
| - | | |
| 24,368,110 | | |
| - | | |
| (3,981,890 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Preferred stock issued | |
| - | | |
| - | | |
| 500 | | |
| 500,000 | | |
| - | | |
| - | | |
| 500,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Warrant exercise | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (5,284,858 | ) | |
| (5,284,858 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, June 30, 2025 | |
| - | | |
$ | - | | |
| 10,719 | | |
$ | 10,121,922 | | |
$ | 82,712,709 | | |
$ | (90,203,241 | ) | |
$ | 2,631,473 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | | |
$ | - | | |
| - | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| Debt conversion | |
| - | | |
| - | | |
| 2,959 | | |
| 2,959,000 | | |
| 739,892 | | |
| - | | |
| 3,698,960 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Fair value of warrants issued with notes | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (2,644,625 | ) | |
| (2,644,625 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, September 30, 2025 | |
| - | | |
$ | - | | |
| 9,475 | | |
$ | 8,877,359 | | |
$ | 90,063,124 | | |
$ | (93,092,303 | ) | |
$ | 5,848,722 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Restatement Adjustment | |
| | |
Stockholders’ Equity | | |
Mezzanine Equity | |
| | |
Series C-1 | | |
Series C-2 | | |
Additional | | |
| | |
| | |
Series C-1 | | |
Series C-2 | | |
| |
| | |
Preferred Stock | | |
Preferred Stock | | |
Paid-In | | |
Accumulated | | |
| | |
Preferred Stock | | |
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| Reclassification of C-1 Preferred Stock | |
| (30,375 | ) | |
| (30,375,000 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| (30,375,000 | ) | |
| 30,375 | | |
| 30,375,000 | | |
| - | | |
| - | | |
| 30,375,000 | |
| Balances, March 31, 2025 | |
| (30,375 | ) | |
$ | (30,375,000 | ) | |
| - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | (30,375,000 | ) | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 30,375,000 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
$ | - | | |
| (4,576 | ) | |
$ | (3,978,922 | ) | |
$ | - | | |
$ | - | | |
$ | (3,978,922 | ) | |
| - | | |
$ | - | | |
| 4,576 | | |
$ | 3,978,922 | | |
$ | 3,978,922 | |
| Debt conversion | |
| - | | |
| - | | |
| (2,430 | ) | |
| (2,430,000 | ) | |
| (428,666 | ) | |
| - | | |
| (2,858,666 | ) | |
| - | | |
| - | | |
| 2,430 | | |
| 2,430,000 | | |
| 2,430,000 | |
| C-1 to C-2 exchange | |
| 2,025 | | |
| 2,025,000 | | |
| (3,213 | ) | |
| (3,213,000 | ) | |
| - | | |
| - | | |
| (1,188,000 | ) | |
| (2,025 | ) | |
| (2,025,000 | ) | |
| 3,213 | | |
| 3,213,000 | | |
| 1,188,000 | |
| Divesture of NAYA | |
| 28,350 | | |
| 28,350,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 28,350,000 | | |
| (28,350 | ) | |
| (28,350,000 | ) | |
| - | | |
| - | | |
| (28,350,000 | ) |
| Preferred stock issued | |
| - | | |
| - | | |
| (500 | ) | |
| (500,000 | ) | |
| - | | |
| - | | |
| (500,000 | ) | |
| - | | |
| - | | |
| 500 | | |
| 500,000 | | |
| 500,000 | |
| Warrant exercise | |
| - | | |
| - | | |
| - | | |
| - | | |
| (736,896 | ) | |
| - | | |
| (736,896 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,665,889 | | |
| 1,665,889 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, June 30, 2025 | |
| - | | |
$ | - | | |
| (10,719 | ) | |
$ | (10,121,922 | ) | |
$ | (1,165,562 | ) | |
$ | 1,665,889 | | |
$ | (9,621,595 | ) | |
| - | | |
$ | - | | |
| 10,719 | | |
$ | 10,121,922 | | |
$ | 10,121,922 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
$ | - | | |
| 10,719 | | |
$ | 10,121,922 | | |
$ | - | | |
$ | - | | |
$ | 10,121,922 | | |
| - | | |
$ | - | | |
| (10,719 | ) | |
$ | (10,121,922 | ) | |
$ | (10,121,922 | ) |
| Debt conversion | |
| - | | |
| - | | |
| - | | |
| - | | |
| 51,749 | | |
| - | | |
| 51,749 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Fair value of warrants issued with notes | |
| - | | |
| - | | |
| - | | |
| - | | |
| 167,863 | | |
| - | | |
| 167,863 | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net loss | |
| | | |
| | | |
| | | |
| | | |
| | | |
| (750,973 | ) | |
| (750,973 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, September 30, 2025 | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | (945,950 | ) | |
$ | 914,916 | | |
$ | (31,034 | ) | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| As Restated | |
| | |
Stockholders’ Equity | | |
Mezzanine Equity | |
| | |
Series C-1 | | |
Series C-2 | | |
Additional | | |
| | |
| | |
Series C-1 | | |
Series C-2 | | |
| |
| | |
Preferred Stock | | |
Preferred Stock | | |
Paid-In | | |
Accumulated | | |
| | |
Preferred Stock | | |
Preferred Stock | | |
| |
| | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Total | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Total | |
| Balances, December 31, 2024 | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 49,537,134 | | |
$ | (67,327,733 | ) | |
$ | 12,747,473 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 7,457,000 | |
| Reclassification of C-1 Preferred Stock | |
| (30,375 | ) | |
| (30,375,000 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| (30,375,000 | ) | |
| 30,375 | | |
| 30,375,000 | | |
| - | | |
| - | | |
| 30,375,000 | |
| Balances, March 31, 2025 | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 57,833,740 | | |
$ | (84,873,449 | ) | |
$ | (27,039,635
| ) | |
| 30,375 | | |
$ | 30,375,000 | | |
| - | | |
$ | - | | |
$ | 34,353,922 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
| - | | |
$ | - | | |
| 4,576 | | |
$ | 3,978,922 | | |
$ | 3,978,922 | |
| Debt conversion | |
| - | | |
| - | | |
| - | | |
| - | | |
| (178,675 | ) | |
| - | | |
| (178,666 | ) | |
| - | | |
| - | | |
| 2,430 | | |
| 2,430,000 | | |
| 2,430,000 | |
| C-1 to C-2 exchange | |
| - | | |
| - | | |
| - | | |
| - | | |
| (837,821 | ) | |
| - | | |
| (837,821 | ) | |
| (2,025 | ) | |
| (2,025,000 | ) | |
| 3,213 | | |
| 3,213,000 | | |
| 1,188,000 | |
| Divesture of NAYA | |
| - | | |
| - | | |
| - | | |
| - | | |
| 24,368,110 | | |
| - | | |
| 24,368,110 | | |
| (28,350 | ) | |
| (28,350,000 | ) | |
| - | | |
| - | | |
| (28,350,000 | ) |
| Preferred stock issued | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 500 | | |
| 500,000 | | |
| 500,000 | |
| Warrant exercise | |
| - | | |
| - | | |
| - | | |
| - | | |
| (736,896 | ) | |
| - | | |
| (736,896 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (3,618,969 | ) | |
| (3,618,969 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, June 30, 2025 | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | 81,547,147 | | |
$ | (88,537,352 | ) | |
$ | (6,990,122 | ) | |
| - | | |
$ | - | | |
| 10,719 | | |
$ | 10,121,922 | | |
$ | 10,121,922 | |
| Reclassification of Series C-2 Preferred stock | |
| - | | |
$ | - | | |
| 10,719 | | |
$ | 10,121,922 | | |
$ | - | | |
$ | - | | |
$ | 10,121,922 | | |
| - | | |
$ | - | | |
| (10,719 | ) | |
$ | (10,121,922 | ) | |
$ | (10,121,922 | ) |
| Debt conversion | |
| - | | |
| - | | |
| 2,959 | | |
| 2,959,000 | | |
| 791,641 | | |
| - | | |
| 3,750,709 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Fair value of warrants issued with notes | |
| - | | |
| - | | |
| - | | |
| - | | |
| 167,863 | | |
| - | | |
| 167,863 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (3,395,598 | ) | |
| (3,395,598 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| Balances, September 30, 2025 | |
| - | | |
$ | - | | |
| 9,475 | | |
$ | 8,877,359 | | |
$ | 89,117,174 | | |
$ | (92,177,387 | ) | |
$ | 5,817,688 | | |
| - | | |
$ | - | | |
| - | | |
$ | - | | |
$ | - | |
The
following table presents the effects of the restatement adjustments for the 2025 Financial Statement Errors on the Company’s unaudited interim consolidated cash flow statements
for the nine months ending September 30, 2025:
| | |
| | | |
| | | |
| | |
| | |
For the Nine Months Ended September 30, 2025 | |
| | |
As Previously | | |
Restatement | | |
As | |
| | |
Stated | | |
Adjustment | | |
Restated | |
| Cash flows from operating activities: | |
| | | |
| | | |
| | |
| Net loss | |
$ | (25,333,069 | ) | |
$ | 914,916 | | |
$ | (24,418,153 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | |
| | | |
| | | |
| | |
| Amortization of discount on notes payable | |
| 132,644 | | |
| 396,233 | | |
| 528,877 | |
| Loss from debt extinguishment | |
| 1,568,435 | | |
| 540,445 | | |
| 2,108,880 | |
| Gain on changes in FV | |
| - | | |
| (1,626,594 | ) | |
| (1,626,594 | ) |
| Gain on settlement | |
$ | (1,615,000 | ) | |
$ | (225,000 | ) | |
$ | (1,840,000 | ) |
The
following table presents the effects of the revision on the Company’s consolidated balance sheet as of December 31, 2024:
| | |
As Previously | | |
Revision | | |
As | |
| | |
December 31, 2024 | |
| | |
As Previously | | |
Revision | | |
As | |
| | |
Stated | | |
Adjustment | | |
Revised | |
| ASSETS | |
| | |
| | |
| |
| Accounts receivable, net of allowances of $61,773 | |
$ | 174,881 | | |
$ | (61,773 | ) | |
$ | 113,108 | |
| Total current assets | |
| 1,318,331 | | |
| (61,773 | ) | |
| 1,256,558 | |
| Lease right of use | |
| 2,283,784 | | |
| (790,164 | ) | |
| 1,493,620 | |
| Equity investments | |
| 740,759 | | |
| (740,759 | ) | |
| - | |
| Note receivable from HRCFG | |
| - | | |
| 1,220,528 | | |
| 1,220,528 | |
| Total assets | |
$ | 46,449,182 | | |
$ | (372,168 | ) | |
$ | 46,077,014 | |
| | |
| | | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | | |
| | |
| Lease liability, current portion | |
$ | 239,125 | | |
$ | (57,993 | ) | |
$ | 181,132 | |
| Total current liabilities | |
| 17,926,441 | | |
| (57,993 | ) | |
| 17,868,448 | |
| Lease liability, net of current portion | |
| 2,189,555 | | |
| (793,943 | ) | |
| 1,395,612 | |
| Liability for excess losses of equity method investee | |
| - | | |
| 479,768 | | |
| 479,768 | |
| Deferred tax liability | |
| - | | |
| 163,115 | | |
| 163,115 | |
| Total liabilities | |
| 26,244,709 | | |
| (209,053 | ) | |
| 26,035,656 | |
| | |
| | | |
| | | |
| | |
| Stockholders’ equity | |
| | | |
| | | |
| | |
| Accumulated deficit | |
| (67,164,618 | ) | |
| (163,115 | ) | |
| (67,327,733 | ) |
| Total stockholders’ equity | |
| 12,747,473 | | |
| (163,115 | ) | |
| 12,584,358 | |
| Total liabilities and stockholders’ equity | |
$ | 46,449,182 | | |
$ | (372,168 | ) | |
$ | 46,077,014 | |
The
following table presents the effects of the revision on the Company’s consolidated income statement as of December 31, 2024:
| | |
| | | |
| | | |
| | |
| | |
For
the Year Ended December 31, 2024 | |
| | |
As Previously | | |
Revision | | |
As | |
| | |
Stated | | |
Adjustment | | |
Revised | |
| Provision for
income taxes | |
$ | (22,913 | ) | |
$ | 163,115 | | |
$ | 140,202 | |
| Net loss from continuing operations | |
| (7,576,838 | ) | |
| (163,115 | ) | |
| (7,739,953 | ) |
| Net Loss | |
| (9,095,838 | ) | |
| (163,115 | ) | |
| (9,258,953 | ) |
| Net loss attributable to common
shareholders | |
$ | (9,346,473 | ) | |
$ | (163,115 | ) | |
$ | (9,509,588 | ) |
| | |
| | | |
| | | |
| | |
| Net loss from continuing operations
per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (3,013.82 | ) | |
$ | (64.88 | ) | |
$ | (3,078.74 | ) |
| Diluted | |
$ | (3,013.82 | ) | |
$ | (64.88 | ) | |
$ | (3,078.74 | ) |
| | |
| | | |
| | | |
| | |
| Net loss per common share: | |
| | | |
| | | |
| | |
| Basic | |
$ | (3,717.73 | ) | |
$ | (64.88 | ) | |
$ | (3,782.65 | ) |
| Diluted | |
$ | (3,717.73 | ) | |
$ | (64.88 | ) | |
$ | (3,782.65 | ) |
The
following table presents the effects of the revision on the Company’s consolidated statement of stockholders’ equity as of
December 31, 2024:
| | |
Deficit | | |
Total | | |
Deficit | | |
Total | | |
Deficit | | |
Total | |
| | |
Stockholders’ Equity | |
| | |
As Previously Stated | | |
Restatement Adjustment | | |
As Restated | |
| | |
Accumulated | | |
| | |
Accumulated | | |
| | |
Accumulated | | |
| |
| | |
Deficit | | |
Total | | |
Deficit | | |
Total | | |
Deficit | | |
Total | |
| Balances, December 31, 2023 | |
$ | (57,818,145 | ) | |
$ | 892,825 | | |
$ | - | | |
$ | - | | |
$ | (57,818,145 | ) | |
$ | 892,825 | |
| Net loss | |
| (9,095,838 | ) | |
| (9,095,838 | ) | |
| (163,115 | ) | |
| (163,115 | ) | |
| (9,258,953 | ) | |
| (9,258,953 | ) |
| Balances, December 31, 2024 | |
$ | (67,164,618 | ) | |
$ | 12,747,473 | | |
$ | (163,115 | ) | |
$ | (163,115 | ) | |
$ | (67,327,733 | ) | |
$ | 12,584,358 | |
The
following table presents the effects of the revision on the Company’s consolidated statement of cash flows for the year ended December
31, 2024:
| | |
As Previously | | |
Revision | | |
As | |
| | |
For the Year Ended December 31, 2024 | |
| | |
As Previously | | |
Revision | | |
As | |
| | |
Stated | | |
Adjustment | | |
Revised | |
| Cash flows from operating activities: | |
| | | |
| | | |
| | |
| Net loss | |
$ | (9,095,838 | ) | |
$ | (163,115 | ) | |
$ | (9,258,953 | ) |
| Changes in assets and liabilities: | |
| | | |
| | | |
| | |
| Accounts receivable | |
| (34,331 | ) | |
| 61,773 | | |
| 27,442 | |
| Leasehold liability | |
| 25,869 | | |
| (61,773 | ) | |
| (35,904 | ) |
| Deferred tax liability | |
| - | | |
| 163,115 | | |
| 163,115 | |
| Net cash (used in) provided by operating activities | |
$ | (2,974,400 | ) | |
$ | - | | |
$ | (2,974,400 | ) |
|