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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