XML 16 R8.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Restatement of Previously Issued Financial Statements | 3 Months Ended
--- | ---
Mar. 31, 2022
Condensed Financial Information Disclosure [Abstract] |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 1A. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company concluded it should restate its previously issued financial statements by amending its Quarterly Report on Form 10-Q for the three-month period ended March 31, 2022, filed with the Securities and Exchange Commission (the “SEC”) on May 12, 2022, to reflect the accrual of approximately $222,000 of deferred compensation expense (consisting of earned and unused paid time off) during the first quarter of 2022. This change increases the Company’s administrative expenses and accrued expenses by approximately $222,000 with no impact on its cash position. There has been no change to previously disclosed product sales. In accordance with SEC Staff Accounting Bulletin No. 99 “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the correction and has determined that the related impact was material to the previously issued financial statements that contained the error, reported in the Company’s Form 10-Q for the three-month period ended March 31, 2022 (the “Affected Quarterly Period”). Therefore, the Company concluded that the Affected Quarterly Period should be restated to present the reclassification. As such, the Company is reporting the restatement to the period in this Form 10-Q/A.
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Unaudited Balance Sheet As of March 31, 2022 |  |  |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 1,293,769 |  |  | $ | 222,379 |  |  | $ | 1,516,148 |
Total current liabilities |  | $ | 2,351,100 |  |  | $ | 222,379 |  |  | $ | 2,573,479 |
Total liabilities |  | $ | 13,326,957 |  |  | $ | 222,379 |  |  | $ | 13,549,336 |
Accumulated deficit |  | $ | (3,003,028 | ) |  | $ | (222,379 | ) |  | $ | (3,225,407 | )
Total stockholders’ equity |  | $ | 33,372,539 |  |  | $ | (222,379 | ) |  | $ | 33,150,160 |
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Unaudited Statement of Operations During the Three-Month Period Ended March 31, 2022 |  |  |  |  |  |  |  |  |
Administrative expenses |  | $ | 462,800 |  |  | $ | 222,379 |  |  | $ | 685,179 |
Operating expenses |  | $ | 2,310,235 |  |  | $ | 222,379 |  |  | $ | 2,532,614 |
Net operating income |  | $ | 792,988 |  |  | $ | (222,379 | ) |  | $ | 570,609 |
Income before income taxes |  | $ | 736,814 |  |  | $ | (222,379 | ) |  | $ | 514,435 |
Net income |  | $ | 735,666 |  |  | $ | (222,379 | ) |  | $ | 513,287 |
Basic net income per share |  | $ | 0.10 |  |  | $ | (0.03 | ) |  | $ | 0.07 |
Diluted net income per share |  | $ | 0.09 |  |  | $ | (0.02 | ) |  | $ | 0.07 |
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Unaudited Statement of Stockholders’ Equity During the Three-Month Period Ended March 31, 2022 |  |  |  |  |  |  |  |  |
Accumulated Deficit – Net income |  | $ | 735,666 |  |  | $ | (222,379 | ) |  | $ | 513,287 |
Accumulated Deficit – Balance, March 31, 2022 |  | $ | (3,003,028 | ) |  | $ | (222,379 | ) |  | $ | (3,225,407 | )
Total Stockholders’ Equity – Net income |  | $ | 735,666 |  |  | $ | (222,379 | ) |  | $ | 513,287 |
Total Stockholders’ Equity – Balance, March 31, 2022 |  | $ | 33,372,539 |  |  | $ | (222,379 | ) |  | $ | 33,150,160 |
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Unaudited Statement of Cash Flows During the Three-Month Period Ended March 31,2022 |  |  |  |  |  |  |  |  |
Net income |  | $ | 735,666 |  |  | $ | (222,379 | ) |  | $ | 513,287 |
Accounts payable and accrued expenses |  | $ | (368,382 | ) |  | $ | 222,379 |  |  | $ | (146,003 | )
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Notes to Unaudited Financial Statements – (n) Net Income Per Common Share During the Three-Month Period Ended March 31, 2022 |  |  |  |  |  |  |  |  |
Net income attributable to stockholders |  | $ | 735,666 |  |  | $ | (222,379 | ) |  | $ | 513,287 |
Income per share: Basic |  | $ | 0.10 |  |  | $ | (0.03 | ) |  | $ | 0.07 |
Income per share: Diluted |  | $ | 0.09 |  |  | $ | (0.02 | ) |  | $ | 0.07 |
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Notes to Unaudited Financial Statements – 9. Accounts Payable and Accrued Expenses As of March 31, 2022 |  |  |  |  |  |  |  |  |
Accrued payroll |  | $ | 322,033 |  |  | $ | 222,379 |  |  | $ | 544,412 |
Total |  | $ | 1,293,769 |  |  | $ | 222,379 |  |  | $ | 1,516,148 |
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Notes to Unaudited Financial Statements – 17. Segment Information During the Three-Month Period Ended March 31, 2022 |  |  |  |  |  |  |  |  |
Other – Administrative expenses |  | $ | 462,800 |  |  | $ | 222,379 |  |  | $ | 685,179 |
Other – Operating activities |  | $ | 508,190 |  |  | $ | 222,379 |  |  | $ | 730,569 |
Other – Net operating loss |  | $ | (515,513 | ) |  | $ | (222,379 | ) |  | $ | (737,892 | )
Total – Administrative expenses |  | $ | 462,800 |  |  | $ | 222,379 |  |  | $ | 685,179 |
Total – Operating activities |  | $ | 2,310,235 |  |  | $ | 222,379 |  |  | $ | 2,532,614 |
Total – Net operating income |  | $ | 792,988 |  |  | $ | (222,379 | ) |  | $ | 570,609 |
|  | As Reported |  |  | Adjustment |  |  | As Restated |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources As of March 31, 2022 |  |  |  |  |  |  |  |  |
Net working capital |  | $ | 15,948 |  |  | $ | (222 | ) |  | $ | 15,726 |
Increase - Amount |  | $ | 2,218 |  |  | $ | (223 | ) |  | $ | 1,995 |
Increase - % |  |  | 16 | % |  |  | (1 | )% |  |  | 15 | %
Stockholders’ equity |  | $ | 33,373 |  |  | $ | (223 | ) |  | $ | 33,150 |
Increase - Amount |  | $ | 796 |  |  | $ | (223 | ) |  | $ | 573 |

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

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI https://asc.fasb.org/extlink&oid=126898705&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=126929396&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration