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Note 12 - Restatement of Previously Issued (Unaudited) Interim Financial Statements

6 Months Ended

Jun. 30, 2024

Note 12. Restatement of Previously Issued (Unaudited) Interim Financial Statements

While undergoing a review of its unaudited condensed consolidated interim financial statements, the Company determined it had incorrectly expensed costs directly associated with the Merger during various periods in 2023. Fees such as accounting and legal related to the Merger should have been capitalized and net against proceeds of the Merger. This impacted previously reported amounts for deferred offering costs and general and administrative expense, among other line items in the unaudited condensed consolidated interim financial statements as of and for the three and six months ended June 30, 2023.

The following tables set forth the effects of the error corrections on affected items within the Company’s previously reported unaudited interim condensed consolidated balance sheet as of the periods indicated had the adjustments been made in the corresponding quarter:

	June 30, 2023
	As reported			Adjusted		As restated
Deferred offering costs	$	-		$	1,059,768	$	1,059,768
Accumulated deficit	$	(55,288,521	)	$	1,059,768	$	(54,228,753	)
Total assets	$	2,304,448		$	1,059,768	$	3,364,216
Total liabilities	$	14,188,409		$	—	$	14,188,409
Total convertible preferred stock	$	24,287,211		$	—	$	24,287,211
Total stockholders’ equity (deficit)	$	(36,171,172	)	$	1,059,768	$	(35,111,404	)

The following tables set forth the effects of the error corrections on affected items within the Company’s previously reported unaudited interim condensed consolidated statements of operations and comprehensive loss for the periods indicated had the adjustments been made in the corresponding quarters:

	Six Months Ended June 30, 2023
	As reported			Adjusted			As restated
General and administrative expense	$	3,053,234		$	(1,059,768	)	$	1,993,466
Total operating expenses	$	6,844,896		$	(1,059,768	)	$	5,785,128
Loss from operations	$	(3,717,084	)	$	1,059,768		$	(2,657,316	)
Net loss	$	(3,019,605	)	$	1,059,768		$	(1,959,837	)
Net loss per share of common stock, basic and diluted	$	(5.83	)	$	2.05		$	(3.78	)

	Three Months Ended June 30, 2023
	As reported			Adjusted			As restated
General and administrative expense	$	1,414,303		$	(421,750	)	$	992,553
Total operating expenses	$	3,372,691		$	(421,750	)	$	2,950,941
Loss from operations	$	(1,652,747	)	$	421,750		$	(1,230,997	)
Net loss	$	(1,847,251	)	$	421,750		$	(1,425,501	)
Net loss per share of common stock, basic and diluted	$	(3.57	)	$	0.82		$	(2.75	)