v3.26.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Schedule of condensed consolidated balance sheet
            
Line Item  As Previously Reported   Adjustment   As Revised 
Derivative liability (current)  $–   $1,321   $1,321 
Total current liabilities   1,212    1,321    2,533 
Total liabilities   1,212    1,321    2,533 
Temporary equity -- Series 2 Preferred Stock   –    4,187    4,187 
Additional paid-in capital   60,191    (6,204)   53,987 
Accumulated deficit   (51,281)   695    (50,586)
Total stockholders' equity   8,910    (5,508)   3,402 
Total liabilities, temporary equity, and stockholders' equity   10,122    –    10,122 
Schedule of condensed consolidated statement of operations
            
Line Item  As Previously Reported   Adjustment   As Revised 
Change in fair value of derivative liabilities  $–   $415   $415 
Preferred dividends   (83)   83    – 
Net loss   (2,513)   498    (2,015)
Deemed dividends on Convertible Preferred Stock   –    (301)   (301)
Net loss available to common stockholders   (2,513)   197    (2,316)
Net loss per share available to common stockholders -- basic and diluted   (0.00017)   0.14583    (0.15)
Schedule of condensed consolidated statement of cash flows
            
Line Item  As Previously Reported   Adjustment   As Revised 
Net loss  $(2,513)  $498   $(2,015)
Change in fair value of derivative liabilities   –    (415)   (415)
Preferred dividends payable   83    (83)   – 
Net cash used in operating activities   (2,484)   83    (2,401)
Net cash provided by financing activities   9,359    (83)   9,276 
Schedule of condensed consolidated statements of temporary equity and stockholders’ equity deficit
         
Balance as of December 31, 2024  As Previously Reported  Adjustment  As Revised
Temporary equity preferred stock (shares)   –    8,285    8,285 
Temporary equity preferred stock (amount)  $–   $6,223   $6,223 
Additional paid-in capital   50,254    (8,426)   41,828 
Accumulated deficit   (43,369)   114    (43,255)
Total stockholders' equity (deficit)   6,887    8,313    (1,426)
Total   6,887    (2,090)   4,797 

 

Effect of Revisions on the Condensed Consolidated Statements of Temporary Equity and Stockholders’ Equity (Deficit) (Unaudited) (As Revised) for the Three Months Ended March 31, 2026

 

(in thousands)

          
Balance as of December 31, 2025  As Previously Reported  Adjustment  As Revised
Temporary equity preferred stock (amount)  $–   $4,187   $4,187 
Common stock, Class A (shares)   24,107,300    (201,740)   23,905,560 
Common stock, Class A (amount)  $2   $1   $3 
Additional paid-in capital   60,191    (6,204)   53,987 
Accumulated deficit   (51,281)   695    (50,586)
Total stockholders’ equity (deficit)  $8,910    (5,508)   3,402 

 

Reclassification of Operating Expenses

 

In connection with the preparation of these condensed consolidated interim financial statements, the Company changed the presentation of operating expenses on the condensed consolidated statements of operations. In prior periods, the Company presented stock-based compensation, depreciation, and certain other non-cash charges as a single aggregated line item (“Non-cash expenses”) within operating expenses. Beginning with these financial statements, the Company has allocated these charges to the functional expense categories to which they relate (general and administrative, research and development, sales and marketing, and operations) and has added an operations category to better reflect the Company's current organizational structure. The Company also reclassified certain personnel and overhead costs among functional categories to align with how costs are managed and evaluated by the CODM. This change in presentation provides a more faithful depiction of the nature and function of the Company's operating expenses and is consistent with Regulation S-X, Rule 5-03. Prior period amounts have been reclassified to conform to the current period presentation. Total operating expenses for the three months ended March 31, 2025, were not affected by these reclassifications.

 
Schedule of fair value hierarchy
                
   Level 1   Level 2   Level 3   Total 
As of March 31, 2026:                    
Derivative liability  $–   $–   $1,392,433   $1,392,433 
As of December 31, 2025:                    
Derivative liability (As Revised)  $–   $–   $1,321,205   $1,321,205 
Schedule of derivative liability roll forward
          
   Three Months Ended 
   March 31, 2026   December 31, 2025 
         (As Revised) 
Beginning balance  $1,321,205   $– 
Issuances (day-1 bifurcation of embedded derivative)   20,805    4,764,474 
Total (gains) losses included in earnings (a)   127,742    (548,879)
Settlements (conversions to Class A common stock)   (77,319)   (2,894,390)
Purchases   –    – 
Sales   –    – 
Transfers into Level 3   –    – 
Transfers out of Level 3   –    – 
Ending balance  $1,392,433   $1,321,205 
Schedule of significant unobservable inputs
      
Significant Unobservable Input  March 31, 2026  Valuation Impact
90-day trailing realized equity volatility  110%  Higher volatility increases fair value
Estimated sell-rate (% of average daily trading volume)  20%  Higher sell-rate decreases fair value
Contractual floor price  $0.20  Lower floor price increases fair value