v3.26.1
Restatement of Previously Issued Quarterly Financial Statements
 12 Months Ended
Sep. 30, 2025
Restatement of Previously Issued Quarterly Financial Statements [Abstract]  
Restatement of Previously Issued Quarterly Financial Statements [Text Block]

NOTE 3: Restatement of Previously Issued Quarterly Financial Statements

 

The errors described above, other than error ID 11, also affected the Company’s previously issued unaudited consolidated financial statements for the interim periods presented below. Accordingly, the Company has restated its previously issued unaudited consolidated financial statements for the three and nine months ended June 30, 2025, the three and six months ended March 31, 2025, and the three months ended December 31, 2024. The following tables present the impact of the restatement adjustments on the Company’s previously reported consolidated balance sheets, statements of operations, statements of cash flows, and statements of stockholders’ equity for those interim periods. The restatement corrects the identified errors in the previously issued financial statements for the Affected Periods, including the following interim-period error that did not impact the Company’s annual financial statements

 

12. Stock-based compensation – The issuance of our stock based compensation awards were improperly presented within financing activities in the statement of cash flows.

 

13. Issuance of shares – The issuance of shares for our intangible asset acquisition, share-based payments to employees and nonemployees, and transfers to (from) ESOP trust were recognized in incorrect interim periods.

 

Restated Unaudited Consolidated Balance Sheet – As of June 30, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Inventory   $ 1,482     $ (256 )     8     $ 1,226  
Total current assets     88,851       (256 )     *       88,595  
Property and equipment, net     5,164       216       7       5,380  
Intangible assets, net     11,532       (964 )     9,13       10,568  
Total assets     107,329       (1,004 )     *       106,325  
Warrant liability     -       7,406       2,3       7,406  
Total current liabilities     739       7,406       *       8,145  
Deferred income taxes     -       108       10       108  
Total liabilities     1,378       7,514       *       8,892  
Mezzanine equity     -       975       1       975  
Additional paid-in capital     126,114       3,325       1,2,3,4,13       129,439  
Retained earnings     (20,099 )     (12,818 )     *       (32,917 )
Total stockholders’ equity     105,951       (9,493 )     *       96,458  
Total liabilities, mezzanine equity and stockholders’ equity   $ 107,329     $ (1,004 )     *     $ 106,325  

 

Restated Unaudited Consolidated Balance Sheet – As of March 31, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Inventory   $ 1,491     $ (195 )     7,8     $ 1,296  
Total current assets     45,139       (195 )     *       44,944  
Property and equipment, net     816       165       7       981  
Intangible assets, net     9,384       1,481       9,13       10,865  
Total assets     57,179       1,451       *       58,630  
Warrant liability     -       7,120       2,3       7,120  
Total current liabilities     596       7,120       *       7,716  
Deferred income taxes     -       108       10       108  
Total liabilities     1,320       7,228       *       8,548  
Mezzanine equity     -       975       1       975  
Additional paid-in capital     71,913       8,488       1,2,3,4,13       80,401  
Retained earnings     (16,027 )     (15,240 )     *       (31,267 )
Total stockholders’ equity     55,859       (6,752 )     *       49,107  
Total liabilities, mezzanine equity and stockholders’ equity   $ 57,179     $ 1,451       *     $ 58,630  

 

Restated Unaudited Consolidated Balance Sheet – As of December 31, 2024

 

Line item   As Previously Reported
on 10-Q		     Restatement Adjustment     ID     As Restated  
Inventory   $ 1,396     $ (180 )     7,8     $ 1,216  
Total current assets     39,458       (180 )     *       39,278  
Property and equipment, net     802       158       7       960  
Intangible assets, net     9,576       1,481       9,13       11,057  
Total assets     51,424       1,459       *       52,883  
Warrant liability     -       20,564       2,3       20,564  
Total current liabilities     993       20,564       *       21,557  
Deferred income taxes     -       108       10       108  
Total liabilities     1,555       20,672       *       22,227  
Mezzanine equity     -       786       1       786  
Additional paid-in capital     61,366       (776 )     1,2,3,4,13       60,590  
Retained earnings     (11,487 )     (19,224 )     *       (30,711 )
Total stockholders’ equity     49,869       (19,999 )     *       29,870  
Total liabilities, mezzanine equity and stockholders’ equity   $ 51,424     $ 1,459       *     $ 52,883  

 

Restated Consolidated Statement of Operations – Three Months Ended June 30, 2025

 

Line item   As Previously Reported
on 10-Q		     Restatement Adjustment     ID     As Restated  
Cost of revenues   $ 301     $ 445       5,8     $ 746  
Gross profit     876       (445 )     *       431  
General and administrative     4,562       (3,153 )     5,6,7,13       1,409  
Total operating expenses     5,383       (3,153 )     *       2,230  
Loss from operations     (4,507 )     2,707       *       (1,800 )
Other income (loss)     -       (286 )     2,3       (286 )
Total other expenses     404       (286 )     *       118  
Loss before income tax expense     (4,103 )     2,422       *       (1,681 )
Income tax benefit/(expense)     -       (9 )     *       (9 )
Consolidated net loss     (4,103 )     2,413       *       (1,690 )
Net loss attributable to common stockholders   $ (4,063 )   $ 2,413       *     $ (1,650 )
Basic and diluted net loss per share of common stock   $ (0.04 )                   $ (0.01 )

 

Restated Consolidated Statement of Operations – Nine Months Ended June 30, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Cost of revenues   $ 878     $ 1,113       5,8     $ 1,991  
Gross profit     2,723       (1,113 )     *       1,610  
General and administrative     13,827       (3,647 )     5,6,7,13       10,180  
Total operating expenses     16,067       (3,647 )     *       12,420  
Loss from operations     (13,344 )     2,534       *       (10,810 )
Other income (loss)     -       (22,123 )     2,3       (22,123 )
Total other expenses     1,115       (22,123 )     *       (21,008 )
Loss before income tax expense     (12,229 )     (19,589 )     *       (31,818 )
Consolidated net loss     (12,238 )     (19,589 )     *       (31,827 )
Net loss attributable to common stockholders   $ (12,151 )   $ (19,598 )     *     $ (31,749 )
Basic and diluted net loss per share of common stock   $ (0.11 )                   $ (0.29 )

 

Restated Consolidated Statement of Operations – Three Months Ended March 31, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Cost of revenues   $ 454     $ 348       5,8     $ 802  
Gross profit     713       (348 )     *       365  
General and administrative     4,962       (205 )     5,6,7,13       4,757  
Total operating expenses     5,652       (205 )     *       5,447  
Loss from operations     (4,939 )     (143 )     *       (5,082 )
Other income (loss)     -       4,128       2,3       4,128  
Total other expenses     382       4,128       *       4,510  
Loss before income tax expense     (4,557 )     3,985       *       (572 )
Consolidated net loss     (4,557 )     3,985       *       (572 )
Net loss attributable to common stockholders   $ (4,540 )   $ 3,985       *     $ (555 )
Basic and diluted net loss per share of common stock   $ (0.04 )                   $ (0.00 )

 

Restated Consolidated Statement of Operations – Six Months Ended March 31, 2025

 

Line item   As Previously Reported
on 10-Q		     Restatement Adjustment     ID     As Restated  
Cost of revenues   $ 577     $ 668       5,8     $ 1,245  
Gross profit     1,847       (668 )     *       1,179  
General and administrative     9,265       (494 )     5,6,7,13       8,771  
Total operating expenses     10,684       (494 )     *       10,190  
Loss from operations     (8,837 )     (174 )      *       (9,011 )
Other income (loss)     -       (21,837 )     2,3       (21,837 )
Total other expenses     711       (21,837 )     *       (21,126 )
Loss before income tax expense     (8,126 )     (22,011 )     *       (30,137 )
Consolidated net loss     (8,126 )     (22,011 )     *       (30,137 )
Net loss attributable to common stockholders   $ (8,088 )   $ (22,011 )     *     $ (30,099 )
Basic and diluted net loss per share of common stock   $ (0.08 )                   $ (0.29 )

 

Restated Consolidated Statement of Operations – Three Months Ended December 31, 2024

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Cost of revenues   $ 123     $ 320       5,8     $ 443  
Gross profit     1,134       (320 )     *       814  
General and administrative     4,303       (289 )     5,6,7,13       4,014  
Total operating expenses     5,032       (289 )     *       4,743  
Loss from operations     (3,898 )     (31 )     *       (3,929 )
Other income (loss)     -       (25,965 )     2       (25,965 )
Total other expenses     329       (25,965 )     *       (25,636 )
Loss before income tax expense     (3,569 )     (25,996 )     *       (29,565 )
Consolidated net loss     (3,569 )     (25,996 )     *       (29,565 )
Net loss attributable to common stockholders   $ (3,548 )   $ (25,996 )     *     $ (29,544 )
Basic and diluted net loss per share of common stock   $ (0.04 )                   $ (0.31 )

  

Restated Consolidated Statement of Equity – Nine Months Ended June 30, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Additional paid-in capital   $ 126,114     $ 3,325       *     $ 129,439  
Additional paid-in capital, issuance of common shares for intangible asset acquisition     5,378       (1,677 )     13       3,701  
Additional paid-in capital, issuance of shares upon exercise of warrants for cash     16,858       21,656       2,3       38,514  
Additional paid-in capital, shares issued to employees     1,380       (475 )     13       905  
Additional paid-in capital, shares issued for services     4,080       (1,556 )     13       2,524  
Retained earnings     (20,099 )     (12,818 )     *       (32,917 )
Net loss attributable to common stockholders     (12,151 )     (19,598 )     *       (31,749 )
Total stockholders’ equity   $ 105,951     $ (9,493 )     *     $ 96,458  

 

Restated Consolidated Statement of Equity – Three Months Ended June 30, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Additional paid-in capital   $ 126,114     $ 3,325       *     $ 129,439  
Additional paid-in capital, issuance of common shares for intangible asset acquisition     2,924       (2,924 )     13       -  
Additional paid-in capital, shares issued to employees     -       212       13       212  
Additional paid-in capital, shares issued for services     2,591       (2,451 )     13       140  
Retained earnings     (20,099 )     (12,818 )     *       (32,917 )
Net loss attributable to common stockholders     (4,063 )     2,413       *       (1,650 )
Total stockholders’ equity   $ 105,951     $ (9,493 )     *     $ 96,458  

 

Restated Consolidated Statement of Equity – Six Months Ended March 31, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Additional paid-in capital   $ 71,913     $ 8,488       *     $ 80,401  
Additional paid-in capital, issuance of common shares for intangible asset acquisition     2,454       1,247       13       3,701  
Additional paid-in capital, issuance of shares upon exercise of warrants for cash     16,858       21,656       2,3       38,514  
Additional paid-in capital, shares issued to employees     867       (175 )     13       692  
Additional paid-in capital, transfer to ESOP trust     513       (513 )     13       0  
Additional paid-in capital, shares issued for services     1,175       1210       13       2,385  
Retained earnings     (16,027 )     (15,240 )     *       (31,267 )
Net loss attributable to common stockholders     (8,088 )     (22,011 )     *       (30,099 )
Total stockholders’ equity   $ 55,859     $ (6,752 )     *     $ 49,107  

 

Restated Consolidated Statement of Equity – Three Months Ended March 31, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Additional paid-in capital   $ 71,913     $ 8,488       *     $ 80,401  
Additional paid-in capital, issuance of shares upon exercise of warrants for cash     8,794       9,316       2,3       18,110  
Additional paid-in capital, transfer to ESOP trust     513       (513 )     13       0  
Additional paid-in capital, shares issued for services     1,175       283       13       1,458  
Retained earnings     (16,027 )     (15,240 )     *       (31,267 )
Net loss attributable to common stockholders     (4,540 )     3,985       *       (555 )
Total stockholders’ equity   $ 55,859     $ (6,752 )     *     $ 49,107  

 

Restated Consolidated Statement of Equity – Three Months Ended December 31, 2024

 

Line item   As Previously Reported
on 10-Q		     Restatement Adjustment     ID     As Restated  
Additional paid-in capital   $ 61,366     $ (776 )     2     $ 60,590  
Additional paid-in capital, issuance of common shares for intangible asset acquisition     2,454       1,243       13       3,697  
Additional paid-in capital, issuance of shares upon exercise of warrants for cash     8,064       12,342       2       20,406  
Additional paid-in capital, shares issued to employees     867       (351 )     13       516  
Additional paid-in capital, shares issued for services     314       614       13       928  
Retained earnings     (11,487 )     (19,224 )     *       (30,711 )
Net loss attributable to common stockholders     (3,548 )     (25,996 )     *       (29,544 )
Total stockholders’ equity   $ 49,869     $ (19,999 )     *     $ 29,870  

 

Restated Consolidated Statement of Cash Flows – Nine Months Ended June 30, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Consolidated net loss   $ (12,238 )   $ (19,591 )     *     $ (31,827 )
Gain/loss on change in fair value of warrant liability     -       22,123       2,3       22,123  
Issuance costs accrued related to warrants     -       189       1       189  
Inventory     (334 )     331       8       (3 )
Stock-based compensation     -       3,429       12,13       3,429  
Depreciation and amortization     1,635       (694 )     7,9       941  
Net cash used by operating activities     (11,197 )     5,788       *       (5,409 )
Purchase of property and equipment     (4,509 )     (330 )     8       (4,839 )
Purchase of intangible assets     (100 )     16       *       (84 )
Purchase of long-term investments     (247 )     105       *       (142 )
Net cash used in investing activities     (41,532 )     (209 )     *       (41,741 )
Payment of issuance cost of ordinary shares     -       (1,180 )     12       (1,180 )
Proceeds from warrants exercise     -       18,038       12       18,038  
Proceeds from issuance of ordinary shares     71,087       (22,437 )     12       48,650  
Net Cash used in financing activities   $ 71,056     $ (5,579 )     *     $ 65,477  

 

Restated Consolidated Statement of Cash Flows – Six Months Ended March 31, 2025

 

Line item   As
Previously
Reported
on 10-Q		     Restatement
Adjustment		     ID     As Restated  
Consolidated net loss   $ (8,126 )   $ (22,011 )     *     $ (30,137 )
Gain/loss on change in fair value of warrant liability     -       21,837       2,3       21,837  
Issuance costs accrued related to warrants     -       189       1       189  
Allowance for credit loss     -       (94 )     *       (94 )
Inventory     (343 )     270       8       (73 )
Stock based compensation     -       3,077       12,13       3,077  
Depreciation and amortization     730       (225 )     7,9       505  
Accounts receivable     (321 )     94       *       (227 )
Accrued expenses     (91 )     3       *       (88 )
Net cash used by operating activities     (8,076 )     3,139       *       (4,937 )
Purchase of property and equipment     (116 )     (270 )     8       (386 )
Net cash used by investing activities     (15,130 )     (205 )     *       (15,335 )
Payment of issuance cost of ordinary shares     0       (1180 )     12       (1180 )
Proceeds from issuance of ordinary shares     19,792       (1,754 )     12       18,038  
Net cash provided by financing activities     19,766       (2,934 )     *       16,832  

 

 

Restated Consolidated Statement of Cash Flows – Three Months Ended December 31, 2024

 

Line item   As
Previously
Reported
on 10-Q		     Restatement Adjustment     ID     As Restated  
Consolidated net loss   $ (3,548 )   $ (26,017 )     *     $ (29,565 )
Gain/loss on change in fair value of warrant liability     -       25,965       2       25,965  
Inventory     (248 )     60       8       (188 )
Stock based compensation     -       1,444       12,13       1,444  
Depreciation and amortization     513       (232 )     7,9       281  
Net cash used by operating activities     (3,578 )     1,220       *       (2,358 )
Purchase of property and equipment     (78 )     (60 )     8       (138 )
Net cash used in investing activities     (380 )     (60 )     *       (440 )
Contributions from non-controlling interests     (21 )     21       *       -  
Proceeds from issuance of ordinary shares     9,244       (1,181 )     12       8,063  
Net cash used in financing activities   $ 9,219     $ (1,160 )     *     $ 8,059  

 

* Represents the downstream effects of the identified restatement adjustments and other individually immaterial changes.