Restatement of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2025

Restatement of Previously Issued Financial Statements [Abstract]

Restatement of Previously Issued Financial Statements

(2) Restatement of Previously Issued Financial Statements

In connection with a nexus study conducted with an external tax advisor, the Company’s management identified errors in previously issued financial statements. Management prepared a quantitative and qualitative analysis of the errors described below, in accordance with the SEC Staff's Accounting Bulletin ("SAB") Nos. 99 Materiality and No. 108, Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, and concluded the aggregate impact of all the errors is material to the Company's previously reported financial statements as of and for the three and nine months ended September 30, 2025 and 2024. As a result, the Company’s management and the Audit Committee of the Company’s Board of Directors concluded that it is appropriate to restate the Company’s previously issued unaudited condensed financial statements as of and for the three and nine months ended September 30, 2025 and 2024, as previously reported in its Form 10-Q.

The accompanying condensed financial statements as of and for the three and nine months ended September 30, 2025 and 2024 have been restated from amounts previously reported. The restated classification and reported values of the errors noted from the nexus study are included in the condensed financial statements herein. The Company has also restated related amounts within the accompanying footnotes to the condensed financial statements to conform to the corrected amounts in the condensed financial statements.

Description of Restatement Errors

Based on a nexus study, the Company determined that it had economic and physical nexus in state and local jurisdictions where it historically had not been collecting and remitting sales and use tax and filing income taxes. As a result, the Company concluded that it had a historical state sales and use tax liability and income tax liability related to prior periods. The Company subsequently pursued Voluntary Disclosure Agreements (“VDAs”) to address this liability and to mitigate future exposure based on counsel of its tax advisor.

The liability includes an estimate for each state, to account for any interest that is due on the base tax amount owed. The error resulted in an understatement of accrued expenses for state and local sales tax and income tax, including related interest in the previously issued financial statements as of and for the three and nine months ended September 30, 2025 and 2024. As a result of correcting this liability, selling, general and administrative expenses; income tax expense; and interest expense were increased in the affected periods. The underlying sales tax obligations are appropriately recognized and the Company is in various stages of VDA review, submission, acceptance and payment with the states impacted. The Company has subsequently engaged an independent third-party provider of automated sales tax solutions to support with compliance through continuous identification, monitoring and evaluation of our transaction activity and physical presence.

Financial Statements - Restatement Reconciliation Tables

In accordance with Accounting Standards Codification ("ASC") 250, Accounting Changes and Error Corrections, the Company has corrected this error by restating previously issued financial statements.

The following tables summarize the effect of the restatement on each financial statement line item as of the dates, and for the periods indicated. The amounts in the "As Restated" columns are the updated amounts including the impacts from the restatement. Financial statement line items and subtotals that were not impacted by the restatement adjustments have been omitted for enhanced clarity.

Balance Sheet – as of December 31, 2024:

	As Previously Reported			Adjustment			As Restated

Accrued expenses	$	1,931,281		$	1,260,238		$	3,191,519
Total current liabilities		13,137,858			1,260,238			14,398,096
Deferred tax liabilities, net		481,420			(274,112	)		207,308
Total liabilities		13,770,752			986,126			14,756,878

Accumulated deficit		(19,072,209	)		(986,126	)		(20,058,335	)
Total stockholders’ equity	$	11,141,746		$	(986,126	)	$	10,155,620

Balance Sheet – as of September 30, 2025:

	As Previously Reported			Adjustment			As Restated

Accrued expenses	$	2,083,662		$	1,640,794		$	3,724,456
Total current liabilities		13,199,789			1,640,794			14,840,583
Deferred tax liabilities, net		481,420			(274,112	)		207,308
Total liabilities		13,921,470			1,366,682			15,288,152

Accumulated deficit		(18,438,752	)		(1,366,682	)		(19,805,434	)
Total stockholders’ equity	$	11,945,366		$	(1,366,682	)	$	10,578,684

Statement of Operations – Three Months Ended September 30, 2025:

	As Previously Reported			Adjustment			As Restated

Selling, general, and administrative expenses	$	2,697,192		$	111,089		$	2,808,281
Total operating expenses		4,967,317			111,089			5,078,406
Income from operations		127,419			(111,089	)		16,330
Other income, net		193,222			(28,966	)		164,256
Income before income taxes		320,641			(140,055	)		180,586
Provision for income taxes		(75,773	)		20,456			(55,317	)
Net income		244,868			(119,599	)		125,269

Net income per share – Basic and diluted	$	0.02		$	(0.01	)	$	0.01

Statement of Operations – Three Months Ended September 30, 2024:

	As Previously Reported			Adjustment			As Restated

Selling, general, and administrative expenses	$	2,256,732		$	134,640		$	2,391,372
Total operating expenses		4,560,116			134,640			4,694,756
Income from operations		449,254			(134,640	)		314,614
Other income, net		267,092			(17,907	)		249,185
Income before income taxes		716,346			(152,547	)		563,799
Provision for income taxes		(164,764	)		(11,886	)		(176,650	)
Net income		551,582			(164,433	)		387,149

Net income per share – Basic and diluted	$	0.05		$	(0.01	)	$	0.04

Statement of Operations – Nine Months Ended September 30, 2025:

	As Previously Reported			Adjustment			As Restated

Selling, general, and administrative expenses	$	7,801,311		$	377,397		$	8,178,708
Total operating expenses		14,751,634			377,397			15,129,031
Income (loss) from operations		274,056			(377,397	)		(103,341	)
Other income, net		553,739			(77,818	)		475,921
Income before income taxes		827,795			(455,215	)		372,580
Provision for income taxes		(194,338	)		74,659			(119,679	)
Net income		633,457			(380,556	)		252,901

Net income per share – Basic and diluted	$	0.06		$	(0.04	)	$	0.02

Statement of Operations – Nine Months Ended September 30, 2024:

	As Previously Reported			Adjustment			As Restated

Selling, general, and administrative expenses	$	7,505,751		$	396,918		$	7,902,669
Total operating expenses		14,364,077			396,918			14,760,995
Income (loss) from operations		387,768			(396,918	)		(9,150	)
Other income, net		664,587			(44,787	)		619,800
Income before income taxes		1,052,355			(441,705	)		610,650
Provision for income taxes		(244,180	)		(35,658	)		(279,838	)
Net income		808,175			(477,363	)		330,812

Net income per share – Basic and diluted	$	0.08		$	(0.05	)	$	0.03

Statements of Stockholders' Equity – Three Months Ended September 30, 2025:

	As Previously Reported			Adjustment			As Restated

Balance as of July 1, 2025
Accumulated deficit	$	(18,683,620	)	$	(1,247,083	)	$	(19,930,703	)
Total stockholders’ equity		11,677,738			(1,247,083	)		10,430,655

Balance as of September 30, 2025
Accumulated deficit	$	(18,438,752	)	$	(1,366,682	)	$	(19,805,434	)
Total stockholders’ equity		11,945,366			(1,366,682	)		10,578,684

Statements of Stockholders' Equity – Three Months Ended September 30, 2024:

	As Previously Reported			Adjustment			As Restated

Balance as of July 1, 2024
Accumulated deficit	$	(20,490,518	)	$	(930,747	)	$	(21,421,265	)
Total stockholders’ equity		9,672,092			(930,747	)		8,741,345

Balance as of September 30, 2024
Accumulated deficit	$	(19,938,936	)	$	(1,095,180	)	$	(21,034,116	)
Total stockholders’ equity		10,249,953			(1,095,180	)		9,154,773

Statements of Stockholders' Equity – Nine Months Ended September 30, 2025:

	As Previously Reported			Adjustment			As Restated

Balance as of January 1, 2025
Accumulated deficit	$	(19,072,209	)	$	(986,126	)	$	(20,058,335	)
Total stockholders’ equity		11,141,746			(986,126	)		10,155,620

Balance as of September 30, 2025
Accumulated deficit	$	(18,438,752	)	$	(1,366,682	)	$	(19,805,434	)
Total stockholders’ equity		11,945,366			(1,366,682	)		10,578,684

Statements of Stockholders' Equity – Nine Months Ended September 30, 2024:

	As Previously Reported			Adjustment			As Restated

Balance as of January 1, 2024
Accumulated deficit	$	(20,747,111	)	$	(617,817	)	$	(21,364,928	)
Total stockholders’ equity		9,367,886			(617,817	)		8,750,069

Balance as of September 30, 2024
Accumulated deficit	$	(19,938,936	)	$	(1,095,180	)	$	(21,034,116	)
Total stockholders’ equity		10,249,953			(1,095,180	)		9,154,773

Statements of Cash Flows – Nine Months Ended September 30, 2025:

	As Previously Reported		Adjustment			As Restated

Cash flows from operating activities:
Net income	$	633,457	$	(380,556	)	$	252,901

Changes in operating assets and liabilities:
Accrued expenses		152,381		380,556			532,937

Statements of Cash Flows – Nine Months Ended September 30, 2024:

	As Previously Reported		Adjustment			As Restated

Cash flows from operating activities:
Net income	$	808,175	$	(477,363	)	$	330,812

Changes in operating assets and liabilities:
Accrued expenses		291,619		477,363			768,982