XML 23 R9.htm IDEA: XBRL DOCUMENT
v3.24.4

Restatement of Previously Issued Financial Statements | 9 Months Ended | 12 Months Ended
--- | --- | ---
Sep. 30, 2024 | Dec. 31, 2023
Restatement of Previously Issued Financial Statements [Abstract] |  |
Restatement of Previously Issued Financial Statements | Note 15. Restatement of Previously Issued Financial Statements Subsequent to the issuance of our Annual Report on Form 10-K for the year ended December 31, 2023, and our subsequent retention of BPM LLP to replace BF Borgers CPA PC as our independent registered public accounting firm, management became aware of various adjustments to be recorded to our consolidated financial statements. Accordingly, on September 11, 2024, we filed Amendment 1 to our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Amendment”), amending our consolidated balance sheets as of December 31, 2023 and 2022, and amending our consolidated statements of operations, our consolidated statements of stockholders’ equity, and our consolidated statements of cash flows for the years ended December 31, 2023 and 2022, primarily with regard to the purchase accounting of the QPhoton Merger, stock-based compensation accounting, financing costs, and other matters. The restated consolidated financial statements in the 2023 Amendment also reflect the correction of certain previously-identified errors and out-of-period adjustments that were deemed immaterial to the annual or interim period in which they were recorded and have been restated in the 2023 Amendment to properly reflect the corrections in the appropriate periods. In this Quarterly Report on Form 10-Q for the nine months ended September 30, 2024, we amended our consolidated statements of operations, our consolidated statements of stockholders’ equity, and our consolidated statements of cash flows for the nine months ended September 30, 2023, which restate and revise items in line with the disclosures and reclassifications discussed in the 2023 Amendment. The aggregate impact of these errors on our condensed consolidated statements of operations for the three and nine months ended September 30, 2023, is a decrease in net loss of approximately $1.4 million and $1.0 million, respectively. The estimated aggregate impact of these errors on the Company’s condensed consolidated balance sheet for the nine months ended September 30, 2023, is (i) decreased intangible and goodwill assets of $8.6 million; (ii) materially unchanged and increased liabilities of approximately $500 thousand; and (iii) decreased stockholder’s equity of approximately $9.1 million. | Note 3 – Restatement of Previously Issued Financial Statements Subsequent to the issuance of our Original Form 10-K and our subsequent retention of BPM to replace BF Borgers as our independent registered public accounting firm, management became aware of various adjustments to be recorded to our consolidated financial statements. Accordingly, our consolidated balance sheets as of December 31, 2023 and 2022, and our consolidated statements of operations, consolidated statements of stockholders’ equity, and our consolidated statements of cash flows for the years ended December 31, 2023 and 2022, have been restated for various errors, omissions, reclassifications or changes to accounting policy made primarily with regard to the purchase accounting of the QPhoton Merger, stock-based compensation accounting, financing costs, and other matters further described below. The restated consolidated financial statements also reflect the correction of certain previously-identified errors and out-of-period adjustments that were deemed immaterial to the annual or interim period in which they were recorded and have now been restated to properly reflect the corrections in the appropriate periods. Disclosures In Note 1, we expanded disclosures (i) for risks and uncertainties, valuation of goodwill, impairment of long-lived assets, income taxes, and net loss and (ii) to clearly indicate that depreciation and amortization expenses are included in cost of revenue, but that the amounts are not material. In Note 2, we expanded and revised disclosures (i) to clarify (a) that software development costs incurred subsequent to the establishment of technological feasibility for software intended to be sold, licensed or otherwise marketed to customers will be capitalized, but development costs not meeting the criteria for capitalization are expensed as incurred, (b) that with respect to internal use software, the Company will capitalize such development costs incurred during the application development stage, and (c) that through December 31, 2023, the Company has not incurred any material capitalizable development costs, (ii) to appropriately detail the methodology and computation of basic and diluted loss per share and (iii) to reflect the Company’s change in accounting policy election for stock based compensation to no longer estimate forfeitures, but rather to account for forfeitures as they occur. In Note 3, we explained the drivers of the restatements of the Previously Issued Financial Statements. In Note 12, we clarified the basis for calculating the number of reported warrants to purchase shares of the Company’s common stock issued in connection with the QPhoton Merger. In Note 14, we expanded the disclosure to clarify that the interest rates implicit in our leases are not readily determinable and therefore that is the basis for using our incremental borrowing rate as the discount rate for our leases. Reclassifications We have made certain reclassifications. In the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, we reclassified certain ATM facility-related financing fees and Series A Preferred Stock dividends, which were each previously presented as Interest Expense in Other Income and Expense and have been reclassified as direct deductions to equity and shown as cash used for financing activities. We additionally revised the presentation of operating expenses to classify expenses as (1) Research and Development, (2) Sales and Marketing, and (3) General and Administrative, as compared to previously-reported categories that included (1) Salaries and Benefits, (2) Professional Services, (3) Research & Development, (4) Stock Based Compensation, and (5) Selling General & Administrative. For the Consolidated Balance Sheets, we made certain reclassifications related to (1) right-of-use assets and operating liabilities and (2) other current liabilities for litigation reserves. Adjustments The following is a description of the areas in which the errors were identified and for which we made correcting adjustments to our consolidated financial statements. (1) QPhoton purchase accounting – We adjusted the final purchase price accounting for identifiable intangibles and the value attributable to the QPhoton Warrants, as defined below, including associated mark-to-market quarterly adjustments. (2) Stock-based compensation – We adjusted expenses and prior period retained earnings to reflect the change in our accounting policy election to account for forfeitures as they occur, as well as to refine assumptions used in calculating the fair value. We also ensured all such expenditures were accrued and accounted for in the appropriate periods based on vesting schedules and underlying agreements. (3) Debt issuance costs – We corrected errors to appropriately accrete issuance costs for the Streeterville Unsecured Note, as defined below, over the life of the loan. (4) Uncollectable reserve – We identified a reserve for collection risk related to notes receivable. (5) Accrued Expenses – We identified and corrected errors to record liabilities for performance-based bonus expenditures and state franchise fees to reflect the expenses in the appropriate period. (6) Financing Expenditures – We corrected the presentation of Series A Preferred Stock dividends and ATM proceeds and adjusted the valuation of the Series A convertible preferred stock warrants. (7) Other - We corrected certain classifications, previously identified errors and out of period adjustments that were deemed immaterial to the annual or interim period in which they were recorded and restated prior periods to reflect these corrections in the appropriate periods. The following table presents the effect of the aforementioned adjustments on our Consolidated Balance Sheets as of December 31, 2023 and 2022 and indicates the category of the adjustments by reference to the above descriptions of the errors for which we made corrections:
|  | Year Ended December 31, 2023 |
|  | As Previously |  |  |  |  |  | Description of |  |  |  |
|  | Reported |  |  | Adjustments |  |  | Adjustments |  |  | As restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,059 |  |  | $ | - |  |  |  |  |  |  | $ | 2,059 |
Accounts receivable |  |  | 65 |  |  |  | - |  |  |  |  |  |  |  | 65 |
Inventory |  |  | 73 |  |  |  | - |  |  |  |  |  |  |  | 73 |
Loans receivable, net of provision for credit losses |  |  | 557 |  |  |  | (278 | ) |  |  | (4 | ) |  |  | 279 |
Prepaid expenses and other current assets |  |  | 427 |  |  |  | (247 | ) |  |  | (7 | ) |  |  | 180 |
Total current assets |  |  | 3,181 |  |  |  | (525 | ) |  |  |  |  |  |  | 2,656 |
Property and equipment, net |  |  | 2,870 |  |  |  | - |  |  |  |  |  |  |  | 2,870 |
Operating lease right-of-use assets |  |  | 800 |  |  |  | 251 |  |  |  | (7 | ) |  |  | 1,051 |
Intangible Assets, net |  |  | 11,388 |  |  |  | 688 |  |  |  | (1 | ) |  |  | 12,076 |
Goodwill |  |  | 60,360 |  |  |  | (4,787 | ) |  |  | (1 | ) |  |  | 55,573 |
Other non-current assets |  |  | 129 |  |  |  | - |  |  |  |  |  |  |  | 129 |
Total assets |  | $ | 78,728 |  |  | $ | (4,373 | ) |  |  |  |  |  | $ | 74,355 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,462 |  |  | $ | - |  |  |  |  |  |  | $ | 1,462 |
Accrued expenses |  |  | 411 |  |  |  | 228 |  |  |  | (2)(5 | ) |  |  | 639 |
Financial liabilities, current, net of issuance costs |  |  | 2,496 |  |  |  | (571 | ) |  |  | (3 | ) |  |  | 1,925 |
Other current liabilities |  |  | 250 |  |  |  | 536 |  |  |  | (7 | ) |  |  | 786 |
Total current liabilities |  |  | 4,619 |  |  |  | 193 |  |  |  |  |  |  |  | 4,812 |
Operating lease liabilities |  |  | 840 |  |  |  | - |  |  |  |  |  |  |  | 840 |
Total liabilities |  |  | 5,459 |  |  |  | 193 |  |  |  |  |  |  |  | 5,652 |
Stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |
Common stock |  |  | 8 |  |  |  | - |  |  |  |  |  |  |  | 8 |
Additional paid-in capital |  |  | 222,980 |  |  |  | (22,345 | ) |  |  | (1)(2)(6)(7 | ) |  |  | 200,635 |
Accumulated deficit |  |  | (149,719 | ) |  |  | 17,779 |  |  |  | (1)(2)(3)(4)(5)(6)(7 | ) |  |  | (131,940 | )
Total stockholders’ equity |  |  | 73,269 |  |  |  | (4,566 | ) |  |  |  |  |  |  | 68,703 |
Total liabilities and stockholders’ equity |  | $ | 78,728 |  |  | $ | (4,373 | ) |  |  |  |  |  | $ | 74,355 |
|  | Year Ended December 31, 2022 |
|  | As Previously |  |  |  |  |  | Description of |  |  |  |
|  | Reported |  |  | Adjustments |  |  | Adjustments |  |  | As restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 5,308 |  |  | $ | - |  |  |  |  |  |  | $ | 5,308 |
Accounts receivable |  |  | 13 |  |  |  | - |  |  |  |  |  |  |  | 13 |
Prepaid expenses and other current assets |  |  | 408 |  |  |  | (279 | ) |  |  | (7 | ) |  |  | 129 |
Total current assets |  |  | 5,729 |  |  |  | (279 | ) |  |  |  |  |  |  | 5,450 |
Property and equipment, net |  |  | 975 |  |  |  | - |  |  |  |  |  |  |  | 975 |
Operating lease right-of-use assets |  |  | 1,187 |  |  |  | 86 |  |  |  | (7 | ) |  |  | 1,273 |
Intangible assets, net |  |  | 22,224 |  |  |  | (7,044 | ) |  |  | (1 | ) |  |  | 15,180 |
Goodwill |  |  | 59,126 |  |  |  | (3,553 | ) |  |  | (1 | ) |  |  | 55,573 |
Other non-current assets |  |  | 60 |  |  |  | - |  |  |  |  |  |  |  | 60 |
Total assets |  | $ | 89,301 |  |  | $ | (10,790 | ) |  |  |  |  |  | $ | 78,511 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 872 |  |  | $ | - |  |  |  |  |  |  | $ | 872 |
Accrued expenses |  |  | 3,780 |  |  |  | (819 | ) |  |  | (2)(5 | ) |  |  | 2,961 |
Financial liabilities, current |  |  | 536 |  |  |  | (536 | ) |  |  | (7 | ) |  |  | - |
Other current liabilities |  |  | 132 |  |  |  | 628 |  |  |  | (6)(7 | ) |  |  | 760 |
Total current liabilities |  |  | 5,320 |  |  |  | (727 | ) |  |  |  |  |  |  | 4,593 |
Financial liabilities, net of issuance costs |  |  | 7,858 |  |  |  | (670 | ) |  |  | (3 | ) |  |  | 7,188 |
Warrant liability |  |  | - |  |  |  | 528 |  |  |  | (1 | ) |  |  | 528 |
Operating lease liabilities |  |  | 1,226 |  |  |  | (148 | ) |  |  | (7 | ) |  |  | 1,078 |
Total liabilities |  |  | 14,404 |  |  |  | (1,017 | ) |  |  |  |  |  |  | 13,387 |
Stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |
Common stock |  |  | 6 |  |  |  | - |  |  |  |  |  |  |  | 6 |
Additional paid-in capital |  |  | 194,879 |  |  |  | (25,704 | ) |  |  | (1)(2)(6)(7 | ) |  |  | 169,175 |
Accumulated deficit |  |  | (119,988 | ) |  |  | 15,931 |  |  |  | (1)(2)(3)(4)(5)(6)(7 | ) |  |  | (104,057 | )
Total stockholders’ equity |  |  | 74,897 |  |  |  | (9,773 | ) |  |  |  |  |  |  | 65,124 |
Total liabilities and stockholders’ equity |  | $ | 89,301 |  |  | $ | (10,790 | ) |  |  |  |  |  | $ | 78,511 |
The following tables present the effect of the aforementioned reclassifications and adjustments on our consolidated statements of operations for the years ended December 31, 2023 and 2022 and indicate the category of the adjustments by reference to the above descriptions of the errors for which we made corrections:
|  | Year Ended December 31, 2023 |
|  | As Previously |  |  |  |  |  | Description of |  |  |  |
|  | Reported |  |  | Adjustments |  |  | Adjustments |  |  | As restated |
Total revenue |  | $ | 358 |  |  | $ | - |  |  |  |  |  |  | $ | 358 |
Cost of revenue |  |  | 196 |  |  |  | - |  |  |  |  |  |  |  | 196 |
Gross profit |  |  | 162 |  |  |  | - |  |  |  |  |  |  |  | 162 |
Operating expenses |  |  | 27,384 |  |  |  | (979 | ) |  |  | (2)(5 | ) |  |  | 26,405 |
Loss from operations |  |  | (27,222 | ) |  |  | 979 |  |  |  |  |  |  |  | (26,243 | )
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and other income |  |  | 295 |  |  |  | - |  |  |  |  |  |  |  | 295 |
Interest expense, net |  |  | (2,804 | ) |  |  | 1,202 |  |  |  | (3)(6 | ) |  |  | (1,602 | )
Change in value of warrant liability |  |  | - |  |  |  | 528 |  |  |  | (1 | ) |  |  | 528 |
Loss before income tax provision |  |  | (29,731 | ) |  |  | 2,709 |  |  |  |  |  |  |  | (27,022 | )
Income tax provision |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |
Net loss |  |  | (29,731 | ) |  |  | 2,709 |  |  |  |  |  |  |  | (27,022 | )
Less: Series A convertible preferred stock dividends |  |  | - |  |  |  | (861 | ) |  |  | (6 | ) |  |  | (861 | )
Net loss available to common stockholders |  | $ | (29,731 | ) |  | $ | 1,848 |  |  |  |  |  |  | $ | (27,883 | )
Loss per share – basic and diluted |  | $ | (0.38 | ) |  | $ | (0.04 | ) |  |  |  |  |  | $ | (0.42 | )
Weighted average shares used in computing net loss per common share – basic and dilutive |  |  | 77,451 |  |  |  | (10,840 | ) |  |  |  |  |  |  | 66,611 |
|  | Year Ended December 31, 2022 |
|  | As Previously |  |  |  |  |  | Description of |  |  |  |
|  | Reported |  |  | Adjustments |  |  | Adjustments |  |  | As restated |
Total revenue |  | $ | 136 |  |  | $ | - |  |  |  |  |  |  | $ | 136 |
Cost of revenue |  |  | 61 |  |  |  | - |  |  |  |  |  |  |  | 61 |
Gross profit |  |  | 75 |  |  |  | - |  |  |  |  |  |  |  | 75 |
Operating expenses |  |  | 36,654 |  |  |  | (7,934 | ) |  |  | (2 | )(5) |  |  | 28,720 |
Loss from operations |  |  | (36,579 | ) |  |  | 7,934 |  |  |  |  |  |  |  | (28,645 | )
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and other income |  |  | 47 |  |  |  | - |  |  |  |  |  |  |  | 47 |
Interest expense, net |  |  | (2,062 | ) |  |  | 1,290 |  |  |  | (3 | )(6) |  |  | (772 | )
Change in value of warrant liability |  |  | - |  |  |  | 3,392 |  |  |  | (1 | ) |  |  | 3,392 |
Loss before income tax provision |  |  | (38,594 | ) |  |  | 12,616 |  |  |  |  |  |  |  | (25,978 | )
Income tax provision |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |
Net loss |  |  | (38,594 | ) |  |  | 12,616 |  |  |  |  |  |  |  | (25,978 | )
Less: Series A convertible preferred stock dividends |  |  | - |  |  |  | (889 | ) |  |  | (6 | ) |  |  | (889 | )
Net loss available to common stockholders |  | $ | (38,594 | ) |  | $ | 11,727 |  |  |  |  |  |  | $ | (26,867 | )
Loss per share – basic and diluted |  | $ | (0.69 | ) |  | $ | (0.04 | ) |  |  |  |  |  | $ | (0.73 | )
Weighted average shares used in computing net loss per common share – basic and dilutive |  |  | 55,963 |  |  |  | (19,283 | ) |  |  |  |  |  |  | 36,680 |
The following tables present the effect of the aforementioned adjustments on our consolidated statements of cash flows for the years ended December 31, 2023 and 2022 and indicate the category of the adjustments by reference to the above descriptions of the errors for which we made corrections:
|  | Year Ended December 31, 2023 |
|  | As Previously |  |  |  |  |  | Description of |  |  |  |
|  | Reported |  |  | Adjustments |  |  | Adjustments |  |  | As restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (29,731 | ) |  |  | 2,709 |  |  |  |  |  |  |  | (27,022 | )
Adjustments to reconcile net loss to net cash from operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and intangibles amortization |  |  | 1,958 |  |  |  | 1,349 |  |  |  | (1 | ) |  |  | 3,307 |
Amortization of issuance costs |  |  | - |  |  |  | 925 |  |  |  | (3 | ) |  |  | 925 |
Change in fair value of warrant liabilities |  |  | - |  |  |  | (528 | ) |  |  | (1 | ) |  |  | (528 | )
Provision for credit losses |  |  | - |  |  |  | 279 |  |  |  | (4 | ) |  |  | 279 |
Other recognized losses (gains) |  |  | 4 |  |  |  | 1 |  |  |  | (7 | ) |  |  | 5 |
Stock-based compensation expense |  |  | 8,723 |  |  |  | (4,452 | ) |  |  | (2 | ) |  |  | 4,271 |
Stock-based compensation expense for services |  |  | - |  |  |  | 284 |  |  |  | (2 | ) |  |  | 284 |
Changes in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | (52 | ) |  |  | - |  |  |  |  |  |  |  | (52 | )
Inventory |  |  | (70 | ) |  |  | - |  |  |  |  |  |  |  | (70 | )
Prepaid expenses and other current assets |  |  | (78 | ) |  |  | (32 | ) |  |  | (7 | ) |  |  | (110 | )
Other non-current assets |  |  | 318 |  |  |  | (165 | ) |  |  | (7 | ) |  |  | 153 |
Accounts payable |  |  | 583 |  |  |  | 13 |  |  |  |  |  |  |  | 596 |
Accrued expenses and other current liabilities |  |  | (985 | ) |  |  | 1,095 |  |  |  | (2)(7 | ) |  |  | 110 |
Other long-term liabilities |  |  | (611 | ) |  |  | 148 |  |  |  | (7 | ) |  |  | (463 | )
Net cash used in operating activities |  |  | (19,941 | ) |  |  | 1,626 |  |  |  |  |  |  |  | (18,315 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  | (2,118 | ) |  |  | (6 | ) |  |  | (7 | ) |  |  | (2,112 | )
Issuance of loan receivable |  |  | (500 | ) |  |  | - |  |  |  |  |  |  |  | (500 | )
Net cash used in investing activities |  |  | (2,618 | ) |  |  | (6 | ) |  |  |  |  |  |  | (2,612 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payments of financial liabilities, net of interest |  |  | (6,187 | ) |  |  | - |  |  |  |  |  |  |  | (6,187 | )
Series A Preferred dividend payments |  |  | - |  |  |  | (865 | ) |  |  | (6 | ) |  |  | (865 | )
Proceeds from stock issuance related to ATM facility |  |  | 25,496 |  |  |  | (766 | ) |  |  | (6 | ) |  |  | 24,730 |
Net cash provided by financing activities |  |  | 19,309 |  |  |  | (1,631 | ) |  |  |  |  |  |  | 17,678 |
Net decrease in cash |  |  | (3,249 | ) |  |  | - |  |  |  |  |  |  |  | (3,249 | )
Cash and cash equivalents, beginning of period |  |  | 5,308 |  |  |  | - |  |  |  |  |  |  |  | 5,308 |
Cash and cash equivalents, end of period |  | $ | 2,059 |  |  | $ | - |  |  |  |  |  |  | $ | 2,059 |
|  | Year Ended December 31, 2022 |
|  | As Previously |  |  |  |  |  | Description of |  |  |  |
|  | Reported |  |  | Adjustments |  |  | Adjustments |  |  | As restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (38,594 | ) |  |  | 12,616 |  |  |  |  |  |  |  | (25,978 | )
Adjustments to reconcile net loss to net cash from operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 3,433 |  |  |  | (1,570 | ) |  |  | (1 | ) |  |  | 1,863 |
Amortization of issuance costs |  |  | - |  |  |  | 547 |  |  |  | (3 | ) |  |  | 547 |
Change in fair value of warrant liabilities |  |  | - |  |  |  | (3,392 | ) |  |  | (1 | ) |  |  | (3,392 | )
Other recognized losses (gains) |  |  | - |  |  |  | 78 |  |  |  | (7 | ) |  |  | 78 |
Stock-based compensation expense |  |  | 17,761 |  |  |  | (8,438 | ) |  |  | (2 | ) |  |  | 9,323 |
Stock-based compensation expense for services |  |  | - |  |  |  | 2,350 |  |  |  | (2 | ) |  |  | 2,350 |
Changes in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | (13 | ) |  |  | - |  |  |  |  |  |  |  | (13 | )
Prepaid expenses and other current assets |  |  | 92 |  |  |  | (237 | ) |  |  | (7 | ) |  |  | (145 | )
Other non-current assets |  |  | (1,128 | ) |  |  | (86 | ) |  |  | (7 | ) |  |  | (1,214 | )
Accounts payable |  |  | 219 |  |  |  | - |  |  |  |  |  |  |  | 219 |
Accrued expenses and other current liabilities |  |  | (462 | ) |  |  | 143 |  |  |  | (2)(7 | ) |  |  | (319 | )
Other long-term liabilities |  |  | 1,451 |  |  |  | (148 | ) |  |  | (7 | ) |  |  | 1,303 |
Net cash used in operating activities |  |  | (17,241 | ) |  |  | 1,863 |  |  |  |  |  |  |  | (15,378 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  | (870 | ) |  |  | - |  |  |  |  |  |  |  | (870 | )
Net cash used for QPhoton, Inc. Merger |  |  | (1,356 | ) |  |  | - |  |  |  |  |  |  |  | (1,356 | )
Net cash used in investing activities |  |  | (2,226 | ) |  |  | - |  |  |  |  |  |  |  | (2,226 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds raised from financial liabilities, net of issuance costs |  |  | 8,036 |  |  |  | (1,076 | ) |  |  | (3 | ) |  |  | 6,960 |
Series A Preferred dividend payments |  |  | - |  |  |  | (787 | ) |  |  | (6 | ) |  |  | (787 | )
Net cash provided by financing activities |  |  | 8,036 |  |  |  | (1,863 | ) |  |  |  |  |  |  | 6,173 |
Net decrease in cash |  |  | (11,431 | ) |  |  | - |  |  |  |  |  |  |  | (11,431 | )
Cash and cash equivalents, beginning of period |  |  | 16,739 |  |  |  | - |  |  |  |  |  |  |  | 16,739 |
Cash and cash equivalents, end of period |  | $ | 5,308 |  |  | $ | - |  |  |  |  |  |  | $ | 5,308 |

X
- Definition The entire disclosure for reporting error correction. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483443/250-10-50-7 + Details
Name: | us-gaap_ErrorCorrectionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_PriorPeriodAdjustmentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration