Restatement of Previously Issued Condensed Consolidated Financial Statements

3 Months Ended

Mar. 31, 2026

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Condensed Consolidated Financial Statements

Note 16 - Restatement of Previously Issued Condensed Consolidated Financial Statements

For the three months ended March 31, 2026, the Company determined that it had not appropriately presented its condensed consolidated balance sheets, statement of operations, statement of shareholders’ equity (deficit), and statement of cash flows due to the errors related to revenue, cost of goods sold and deferred revenue.

Based on an analysis of FASB ASC 250, Accounting Changes and Error Corrections, Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company concluded that these errors were material to the previously issued interim condensed consolidated financial statements and therefore required a restatement.

The restatement impacts to the Company’s condensed consolidated balance sheet were as shown below (amount in thousands):


	As of March 31, 2026
	As Previously
	Reported			Adjustments			As Restated
ASSETS
Current assets
Prepaid expenses and other current assets	$	1,469		$	(263	)	$	1,206
Total current assets		3,113			(263	)		2,850
TOTAL ASSETS	$	58,730		$	(263	)	$	58,467

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		14,169			385			14,554
Deferred revenue		1,840			(827	)		1,013
Total current liabilities		56,108			(442	)		55,666
Total liabilities		59,344			(442	)		58,902

Stockholders’ equity (deficit)
Accumulated deficit		(78,490	)		179			(78,311	)
Total stockholders’ equity (deficit)		(614	)		179			(435	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	58,730		$	(263	)	$	58,467

The restatement impacts to the Company’s condensed consolidated statements of operations were as shown below (amount in thousands, except per share amounts):


	For the three months ended
	March 31, 2026
	As Previously
	Reported			Adjustments			As Restated
Revenues, net	$	478		$	691		$	1,169
Cost of revenues		311			563			874
Gross profit		167			128			295

Operating expenses:
General and administration		2,772			(51	)		2,721
Loss from operations		(2,605	)		179			(2,426	)

Loss from operations before income taxes		(3,980	)		179			(3,801	)
Loss from continuing operations after income taxes		(5,354	)		179			(5,175	)
Net loss	$	(5,354	)	$	179		$	(5,175	)

Net earnings (loss) per share:
Loss from continuing operations, basic and diluted	$	(0.43	)	$	0.01		$	(0.42	)
Net loss (earnings) per share, basic and diluted	$	(0.43	)	$	0.01		$	(0.42	)

The restatement impacts to the Company’s condensed consolidated statements of changes in stockholders’ equity were as shown below (amount in thousands):

	Accumulated Deficit			Total Stockholders’ Deficit
	For the three months ended
	March 31, 2026
	Accumulated Deficit			Total Stockholders’ Deficit
As Previously Reported
Net loss	$	(5,354	)	$	(5,354	)
Balance at March 31, 2026	$	(78,490	)	$	(614	)

Adjustments	$	179		$	179

As Restated
Net loss	$	(5,175	)	$	(5,175	)
Balance at March 31, 2026	$	(78,311	)	$	(435	)

The restatement impacts to the Company’s condensed consolidated statement of cash flows were as shown below (amount in thousands):


	For the three months ended
	March 31, 2026
	As Previously
	Reported			Adjustments			As Restated
Cash flows from operating activities:
Net loss from continuing operations	$	(5,354	)	$	179		$	(5,175	)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(104	)		263			159
Accounts payable and accrued expenses		1,180			385			1,565
Deferred revenue		484			(827	)		(343	)
Net cash used in operating activities - continuing operations		(748	)		-			(748	)
Net cash used in operating activities	$	(748	)	$	-		$	(748	)