Restatement of Previously Issued Unaudited Condensed Financial Statements

6 Months Ended

Mar. 31, 2026

Restatement of Previously Issued Unaudited Condensed Financial Statements [Abstract]

Restatement of Previously Issued Unaudited Condensed Financial Statements

NOTE 2 - Restatement of Previously Issued Unaudited Condensed Financial Statements

The unaudited condensed financial statements as of March 31, 2026 and for the three and six months ended March 31, 2026 have been restated to reflect the correction of misstatements. The Company also restated all amounts impacted within the notes to the financial statements. A description of the adjustments and their impact on the previously issued unaudited condensed financial statements are included below. The error was identified after a customer questioned the validity of certain invoices related to product shipments made on March 31, 2026. Management’s subsequent review of the related purchase orders, order modifications, packing slips, and invoices determined that revenue and cost of product revenue had been recognized for certain invoices that should have been cancelled under the modified customer order arrangement.

Nature of the Errors

The errors resulted in an overstatement of product revenue of $0.5 million and a corresponding overstatement of accounts receivable of $0.5 million as well as an overstatement of cost of product revenue of $0.2 million and a corresponding understatement of inventory of $0.2 million in the periods presented. The net overstatement was $0.3 million for the three and six months ended March 31, 2026. These errors did not affect the Company’s cash or cash flows from operations, and did not involve any intentional misconduct by the Company, its management, or its employees.

In accordance with Accounting Standards Codification (ASC) 250, Accounting Changes and Error Corrections, the Company is restating the previously issued unaudited condensed balance sheet, statement of operations, stockholders’ equity, and cash flows to reflect the effects of the misstatements.

Impact of the Restatement

The following tables summarize the impact of the restatement on the Company’s previously issued unaudited condensed financial statements:

Condensed Balance Sheet as of March 31, 2026 (Excerpt)

	As Previously
	Reported			Adjustment			As Restated
Accounts receivable	$	2,426,518		$	(529,135	)	$	1,897,383
Inventory, net	$	1,866,633		$	232,782		$	2,099,415
Total current assets	$	7,403,798		$	(296,353	)	$	7,107,445
Total assets	$	7,864,958		$	(296,353	)	$	7,568,605
Accumulated deficit	$	(82,133,346	)	$	(296,353	)	$	(82,429,699	)
Total stockholders’ equity	$	5,373,636		$	(296,353	)	$	5,077,283
Total liabilities and stockholders’ equity	$	7,864,958		$	(296,353	)	$	7,568,605

Condensed Statement of Operations - Three Months Ended March 31, 2026 (Excerpt)

	As Previously
	Reported			Adjustment			As Restated
Product revenue	$	2,391,185		$	(529,135	)	$	1,862,050
Cost of product revenue	$	1,104,568		$	(232,782	)	$	871,786
Product gross profit	$	1,286,617		$	(296,353	)	$	990,264
Loss from operations	$	(2,100,844	)	$	(296,353	)	$	(2,397,197	)
Loss before income taxes	$	(2,085,669	)	$	(296,353	)	$	(2,382,022	)
Net loss	$	(2,085,669	)	$	(296,353	)	$	(2,382,022	)
Net loss per share, basic and diluted	$	(0.25	)	$	(0.03	)	$	(0.28	)

Condensed Statement of Stockholders’ Equity - Three Months Ended March 31, 2026 (Excerpt)

	As Previously
	Reported			Adjustment			As Restated
Net loss	$	(2,085,669	)	$	(296,353	)	$	(2,382,022	)
Accumulated deficit	$	(82,133,346	)	$	(296,353	)	$	(82,429,699	)
Total stockholders’ equity	$	5,373,636		$	(296,353	)	$	5,077,283

Condensed Statement of Operations - Six Months Ended March 31, 2026 (Excerpt)

	As Previously
	Reported			Adjustment			As Restated
Product revenue	$	5,283,820		$	(529,135	)	$	4,754,685
Cost of product revenue	$	2,429,375		$	(232,782	)	$	2,196,593
Product gross profit	$	2,854,445		$	(296,353	)	$	2,558,092
Loss from operations	$	(3,808,151	)	$	(296,353	)	$	(4,104,504	)
Loss before income taxes	$	(3,523,559	)	$	(296,353	)	$	(3,819,912	)
Net loss	$	(3,523,559	)	$	(296,353	)	$	(3,819,912	)
Net loss per share, basic	$	(0.42	)	$	(0.03	)	$	(0.45	)
Net loss per share, diluted	$	(0.44	)	$	(0.03	)	$	(0.47	)

Condensed Statement of Cash Flows - Six Months Ended March 31, 2026 (Excerpt)

	As Previously
	Reported			Adjustment			As Restated
Net loss	$	(3,523,559	)	$	(296,353	)	$	(3,819,912	)
Accounts receivable	$	(1,161,713	)	$	529,135		$	(632,578	)
Inventory	$	360,172		$	(232,782	)	$	127,390
Net cash used in operating activities	$	(4,444,546	)	$	-		$	(4,444,546	)