During August 2026, the Company identified errors in its previously issued financial statements for the quarter ended March 31, 2026, specifically related to a misapplication of ASC 820, Fair Value Measurements, related to certain Level 3 fair value measurements of the Company’s convertible debt, including valuation methodologies, specific valuation assumptions, and inputs, in the Company’s previously issued condensed consolidated financial statements for the first quarter of 2026. Specifically, the valuation inputs related to provisions in a subordination agreement related to the convertible debt entered into in January 2026, including extended payoff terms and a conversion rate reset feature, were not properly reflected in the valuation.

As a result of the corrected application of the fair value measurement guidance, the Company corrected its calculation of the fair value of its convertible notes. Due to these changes in the Company’s accounting for the fair value of its convertible notes, the Company corrected its financial statements as of and for the three months ended March 31, 2026. As a result, the following items have been restated: (i) convertible debt which is included in total liabilities as of March 31, 2026, (ii) accumulated other comprehensive income as of March 31, 2026, (iii) accumulated deficit as of March 31, 2026, and (iv) change in fair value of convertible debt, (v) total other (expense) income, (vi) net loss and net loss per share and (vii) change in fair value of convertible debt due to instrument credit risk for the three months ended March 31, 2026.

The impact of the restatement on the condensed consolidated financial statements for March 31, 2026 is presented below. The accompanying notes to the unaudited consolidated interim financial statements have been restated as applicable. The restatement had no impact on net cash flows from operating, investing or financing activities.


	March 31, 2026
	As Previously Reported		Adjustments		As Restated
Convertible debt	$	23,283	$	15,836	$	39,119
Total liabilities	110,276		15,836		126,112
Accumulated other comprehensive income	3,189		(1,001)		2,188
Accumulated deficit	(75,032)		(14,835)		(89,867)
Total stockholders' equity	35,102		(15,836)		19,266


	Three Months Ended March 31, 2026
	As Previously Reported		Adjustments		As Restated
Change in fair value of convertible debt	$	5,203	$	(14,835)	$	(9,632)
Total other (expense) income	2,850		(14,835)		(11,985)
Net loss before provision for income taxes	(10,238)		(14,835)		(25,073)
Net loss	(10,238)		(14,835)		(25,073)
Net loss per common share - basic and diluted	$	(3.09)	(4.48)		$	(7.57)

Other comprehensive income:
Change in fair value of convertible debt due to instrument credit risk	$	3,189	(1,001)		$	2,188
Comprehensive loss	(7,049)		(15,836)		(22,885)


	Three Months Ended March 31, 2026
	As Previously Reported		Adjustments		As Restated
Change in fair value of convertible debt due to instrument credit risk	$	3,189	$	(1,001)	$	2,188
Net loss	(10,238)		(14,835)		(25,073)
Accumulated other comprehensive income at March 31, 2026	3,189		(1,001)		2,188
Accumulated deficit at March 31, 2026	(75,032)		(14,835)		(89,867)
Total stockholders' equity at March 31, 2026	35,102		(15,836)		19,266


	Three Months Ended March 31, 2026
	As Previously Reported		Adjustments		As Restated
Net loss	$	(10,238)	$	(14,835)	$	(25,073)
Change in fair value of convertible notes	(5,203)		14,835		9,632