v3.26.1
QUARTERLY RESTATEMENTS FOR 2024
 12 Months Ended
Dec. 31, 2024
Quarterly Financial Information Disclosure [Abstract]  
QUARTERLY RESTATEMENTS FOR 2024

NOTE 11 – QUARTERLY RESTATEMENTS FOR 2024

 

As a result of the adjustments reflected in the Company’s Form 10-K/A filing for December 31, 2023 filed on June 2, 2025 and due to certain year end adjustment for calendar 2024, the Company’s previously filed quarterly financial statements have been restated. The restatements adjustment had no impact on 2024 ending quarterly cash balances. The impact on the Company’s quarterly balance sheets and income statements for each quarter of 2024 is reflected below:

 

BALANCE SHEETS

 

  As Filed   Adjustments     Restated   As Filed   Adjustments     Restated   As Filed   Adjustments     Restated 
  

March 31,

2024		         

March 31,

2024		  

June 30,

2024		         

June 30,

2024		  

September

2024		         

September

2024		 
  As Filed   Adjustments     Restated   As Filed   Adjustments     Restated   As Filed   Adjustments     Restated 
ASSETS                                                      
Current assets:                                                      
Cash and cash equivalents  $21,887         $21,887   $31,386         $31,386   $6,662         $6,662 
Prepaid expenses   21,222            21,222    12,127            12,127    3,032            3,032 
Total current assets   43,109            43,109    43,513            43,513    9,694            9,694 
Goodwill   740,469    (740,469)  (a)   -    740,469    (740,469)  (a)   -    746,368    (746,368)  (a)   - 
Intangible assets   520,004    (520,004)  (a)   -    509,171    (509,171)  (a)   -    509,171    (509,171)  (a)   - 
Total assets  $1,303,582    (1,260,473)     $43,109   $1,293,153    (1,249,640)     $43,513   $1,265,233    (1,255,539)     $9,694 
                                                       
LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                      
Current liabilities:                                                      
Accounts payable and accrued expenses  $2,953,990           $2,953,990   $3,104,926           $3,104,926   $3,303,247           $3,303,247 
Notes, payable, net   2,430,530            2,430,530    2,697,085            2,697,085    2,608,735            2,608,735 
Convertible notes   125,000            125,000    125,000            125,000    125,000            125,000 
Total current liabilities   5,509,520            5,509,520    5,927,011            5,927,011    6,036,982            6,036,982 
Other liabilities   

-

    

207,938

  

(c)

   

207,938

    

-

    

207,938

  

(c)

   

207,938

    

-

    

207,938

  

(c)

   

207,938

 
Notes payable other   13,156            13,156    12,979            12,979    12,802            12,802 
Total liabilities   5,522,676    

207,938

       5,730,614    5,939,990    207,938       6,147,928    6,049,784    207,938       6,257,722 
                 -                 -                 - 
Convertible Notes                -                 -                 - 
                                                       
Stockholders’ Deficit:                                                      
Common stock   1,071,111            1,071,111    1,981,881            1,981,881    2,312,971            2,312,971 
Additional paid in capital   40,259,135    -       40,259,135    40,609,865    -       40,609,865    40,642,224    3,032,710   (b)   43,674,934 
Accumulated deficit   (45,549,340)   (1,468,411)  (a)(c)   (47,017,751)   (47,238,583)   (1,457,578)  (a)(c)   (48,696,161)   (47,739,745)   (4,496,187)  (a)(b)(c)   (52,235,932)
Total stockholders’ deficit   (4,219,094)   (1,468,411)      (5,687,505)   (4,646,837)   (1,457,578)      (6,104,415)   (4,784,550)   (1,463,477)      (6,248,027)
Total liabilities and deficit  $1,303,582   $(1,260,473)     $43,109   $1,293,153   $(1,249,640)     $43,513   $1,265,234   $(1,255,539)     $9,694 

 

 

STATEMENTS OF OPERATIONS

 

   As filed   Adjustments     As restated   As filed   Adjustments     As restated   As filed   Adjustments     As restated 
  

Three months

ended

March 31,

2024

         

Three months

ended

March 31,

2024

  

Three months

ended

June 30,

2024

         

Three months

ended

June 30,

2024

  

Three months

ended

September 30,

2024

         

Three months

ended

September 30,

2024

 
   As filed   Adjustments     As restated   As filed   Adjustments     As restated   As filed   Adjustments     As restated 
                                              
Services  $15,806         $15,806   $9,841          $9,841   $10,299         $10,299 
Cost of services   1,525            1,525    7,733            7,733    7,361            7,361 
Gross profit   14,281            14,281    2,107            2,107    2,938            2,938 
Operating expenses:                                                      
General and administrative expenses   442,831            442,831    243,823            243,823    309,364            309,364 
Amortization   10,833    (10,833)  (a)   -    10,833    (10,833)  (a)   -    -    -       - 
Stock based compensation   463,198    -       463,198    439,487    -       439,487    (281,088)   3,032,710   (b)   2,751,622 
Total operating expenses   916,862    (10,833)      906,029    694,143    (10,833)      683,310    28,276    3,032,710       3,060,986 
Loss from operations   (902,581)   10,833       (891,748)   (692,036)   10,833       (681,203)   (25,338)   (3,032,710)      (3,058,048)
Other income (expense)                -                 -                 - 
Interest (expense)   (200,157)           (200,157)   (193,192)           (193,192)   (76,807)           (76,807)
Loss before provision of income taxes   (1,102,738)   10,833       (1,091,905)   (885,228)   10,833       (874,395)   (102,145)   (3,032,710)      (3,134,855)
Provision for income taxes (benefit)   -                 -                 -              
Net loss  $(1,102,738)   10,833      $(1,091,905)  $(885,228)   10,833      $(874,395)  $(102,145)   (3,032,710)     $(3,134,855)
                                                       
Net loss per share  $(0.00)          $(0.00)  $(0.00)          $(0.00)  $(0.00)          $(0.00)
Weighted average shares basic and dilutes   902,542,121            902,542,121    1,981,881,172            1,981,881,172    2,007,990,481            2,007,990,481 

 

Adjustments

 

(a)To reflect the write-off of the goodwill and intangible assets of BTA which was written off pursuant to the Company’s June 2, 2024 10-K/A filing for the year ended December 31, 2023
  
(b)To reflect the value of voting preferred stock of $3,302,710 granted to the Company’s CEO
  
(c) To record the reclassification of $207,938 initially recorded as revenue in 2023 that was reclassified to other liabilities due the Company’s inability to support revenue recognition under the guidelines of ASC 606

 

 

Additionally, the Company determined that it had not recorded a derivative liability on its convertible notes as of December 31, 2024. The impact of this change is reflected in table below.

 

THE CRYPTO COMPANY

CONSOLIDATED BALANCE SHEETS

 

          
   December 31, 2024 
   As Reported   Restatement Adjustments   As restated 
             
ASSETS               
CURRENT ASSETS               
Cash and cash equivalents  $1,763        $1,763 
Accounts receivable, net   -         - 
Prepaid expenses   -         - 
Total current assets   1,763    -    1,763 
Fixed assets   -         - 
Goodwill   -         - 
Intangible assets   -         - 
TOTAL ASSETS  $1,763    -   $1,763 
                
LIABILITIES AND STOCKHOLDERS’ DEFICIT               
                
CURRENT LIABILITIES               
Accounts payable and accrued expenses  $3,549,339        $3,549,339 
Other liabilities   207,938         207,938 
Notes payable, net   2,805,253    

 

    2,805,253 
Derivative liability        1,319,366    1,319,366 
Convertible debt   125,000         125,000 
Total current liabilities   6,687,530    1,319,366    8,006,897 
Notes payable - other   12,625         12,625 
TOTAL LIABILITIES   6,700,155    1,319,366    8,019,522 
                
STOCKHOLDERS’ EQUITY               
Preferred A voting stock, $0.001 par value; 10 shares authorized 10 and -0- shares issued and outstanding, respectively as of December 31, 2024 and 2023   -    -    - 
                
Common stock, $0.001 par value; 19,000,000,000 shares authorized, 3,032,357,577 and 565,709,873 shares issued and outstanding, respectively   3,032,746         3,032,746 
Additional paid-in-capital   43,675,323         43,675,323 
Accumulated deficit   (53,406,461)   (1,319,366)   (54,725,828)
TOTAL STOCKHOLDERS’ DEFICIT   (6,698,392)   (1,319,366)   (8,017,759)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $1,763    -   $1,763 

 

 

THE CRYPTO COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

 

          
   For the year ended December 31, 2024 
   As Reported   Restatement Adjustments   As Adjusted 
             
Revenue:               
Services  $44,814   $-   $44,814 
Cost of services   9,394    -    9,394 
Gross margin   35,419    -    35,419 
                
Operating expenses:               
General and administrative expenses   890,435    -    890,435 
Share-based compensation - employee   4,383,005    -    4,383,005 
Share-based compensation - non-employee   902,685    -    902,685 
Total Operating Expenses   6,176,125    -    6,176,125 
Operating loss   (6,140,706)   -    (6,140,706)
Derivative liability   -    (1,319,366)   (1,319,366)
Interest expense   (503,003)   -    (503,003)
                
Loss before provision for income taxes   (6,643,709)   (1,319,366)   (7,963,077)
Provision for income taxes   -    -    - 
Net income(loss)   (6,643,709)   (1,319,366)   (7,963,077)
                
Net income (loss) per share  $(0.00)  $(0.00)  $(0.00)
Weighted average common shares outstanding – basic and diluted   1,943,159,789    1,943,159,789    1,943,159,789 

 

 

THE CRYPTO COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

          
   For the Year Ended December 31, 2024 
   As Reported   Restatement Adjustments   As Restated 
             
Cash flows from operating activities:             
Net income (loss)  $(6,643,709)  $(1,319,366)  $(7,963,077)
Adjustments to reconcile net loss to net cash used in operations:               
Depreciation and amortization   -         - 
Share-based compensation   5,285,690         5,285,690 
Note discount                          
Debt discount for warrants   17,998         17,998 
Change in derivative liability        1,319,366    1,319,366 
Impairment of goodwill   -         - 
Loss on disposal of equipment   -         - 
Accounts payable and accrued expenses   526,474         526,474 
Other liabilities   -         - 
Net cash provided by/used in operating activities   (813,548)   -    (813,548)
                
Cash flows from financing activities:               
Proceeds from issuance of notes payable   742,339         742,339 
Proceeds from common stock issuance   -         - 
Net cash provided by financing activities   742,339    -    742,339 
                
Effect of exchange rate changes on cash   -    -    - 
Net (decrease) increase in cash and cash equivalents   (71,207)   -    (71,207)
Cash and cash equivalents at the beginning of the period   72,970    -    72,970 
Cash and cash equivalents at the end of the period  $1,763   $-   $1,763 
                
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:               
Common stock issued for convertible debt  $2,823,314   $-   $2,823,314