XML 140 R32.htm IDEA: XBRL DOCUMENT v3.25.0.1
Subsequent Events (Tables)
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Subsequent Events [Abstract]    
Schedule of Aggregate Percentage Revenue and Accounts Receivable  

Schedule of Restatement of Financial Statements 

                    
   As of December 31, 2023
   As Previously Reported   Restatement Adjustments   Reclassification Adjustments (1)   As
Restated		   Ref.
Assets                       
Current assets:                       
Cash and cash equivalents  $47   $-   $-   $47    
Accounts receivable, net of allowance for credit losses of $0 and $125,233 at December 31, 2023 and December 31, 2022, respectively   152    -    -    152    
Prepaid expenses and other current assets   166    -    -    166    
Total current assets   365    -    -    365    
Deferred transaction costs   -    -    -    -    
Property and equipment, net   99    -    -    99    
Total assets  $464   $-   $-   $464    
Liabilities, temporary equity and stockholders’ deficit                       
Current liabilities:                       
Accounts payable & accrued expenses  $4,184   $498   $-   $4,682   2
Loan amount due to related parties   11    -    (11)   -    
Excise tax   113    -    (113)   -    
Deferred revenues   254    -    -    254    
Loan extensions   2,992    -    -    2,992    
Loan payable   39    -    (39)   -    
Canada Emergency Business Loan Act   45    -    (45)   -    
Income tax payable   120    -    (120)   -    
Deferred underwriter fee payable   3,525    -    -    3,525    
PIPE notes   1,550    87    -    1,637   3
Other current liabilities   -    -    283    283    
Total current liabilities   12,833    585    (45)   13,373    
Convertible promissory notes   -    -         -    
Loan, related party   465    -    -    465    
Warrant liabilities   25    -    (25)   -    
Other long-term liabilities   -    (2)   70    68   4
Total liabilities   13,323    583    -    13,906    
Commitments and contingencies (Note 13)   -    -    -    -    
Temporary equity:                       
Preferred Series A-2, par value $0.0001, 4,200,000 shares authorized, and 0 and 3,415,923 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively   -    -    -    -    
Preferred Shares A-1, par value $0.0001, 4,400,000 shares authorized, and 0 and 2,839,957 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively   -    -    -    -    
Total temporary equity    -    -    -    -    
Stockholders’ (deficit) equity:                       
Preferred Stock, par value $0.0001, 1,000,000 and 0 shares authorized at December 31, 2023 and 2022, respectively; no shares issued and outstanding at December 31, 2023 and 2022, respectively   -    -    -    -    
Common Stock, par value $0.0001, 100,000,000 shares authorized and 23,572,232 and 4,033,170 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively   3    (1)   -    2    
Additional paid-in-capital   42,221    35,775    -    77,996   5
Accumulated deficit   (55,083)   (36,357)   -    (91,440)  6
Total stockholders’ deficit    (12,859)   (583)   -    (13,442)   
Total liabilities, temporary equity, and stockholders’ deficit  $464   $-   $-   $464    

 

  1 Represents certain reclassification adjustments made to the consolidated balance sheet that are separate from the restatement but were included herein for completeness purposes.
  2 Impact of errors related to: (i) improper cutoff of miscellaneous vendor payables; and (ii) under-accruals related to the year-end bonus and taxes.
  3 Impact of errors related to the valuation of the PIPE notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO.
  4 Impact of errors related to the valuation of liability-classified warrants.
  5 Impact of errors related to the accounting for the Business Combination. Management did not properly assess the Business Combination and associated recapitalization of the shares. Additionally, an impairment charge was erroneously included in the initial filed financial statements.
  6 Cumulative and current year impacts of corrections of errors to the consolidated statements of operations, primarily related to historical adjustments within fair value of convertible debt, warrants and stock-based compensation expense.

 

 

Reconciliation of the Original and Restated Balance Sheet as of December 31, 2022

 

   As Previously Reported   Restatement Adjustments   Reclassification Adjustments 1   As
Restated		   Ref.
   As of December 31, 2022
   As Previously Reported   Restatement Adjustments   Reclassification Adjustments (1)   As
Restated		   Ref.
Assets                   
Current assets:                       
Cash and cash equivalents  $302   $(31)  $-   $271   2
Investments held in trust   29,029    (29,029)   -    -   2
Accounts receivable, net of allowance of $0 and $125,233 at December 31, 2023 and December 31, 2022, respectively   19    -    -    19    
Prepaid expenses and other current assets   101    -    -    101    
Total current assets   29,451    (29,060)   -    391    
Deferred transaction costs   900    (85)   -    815   3
Property and equipment, net   83    -    -    83    
Total assets  $30,434   $(29,145)  $-   $1,289    
Liabilities, temporary equity and stockholders’ deficit                       
Current liabilities:                       
Accounts payable & accrued expenses  $2,814    (1,637)  $-   $1,177   4
Loan amount due to related parties   12    (12)   -    -   2
Deferred revenues   184    -    -    184    
Convertible promissory notes   8,490    16,253    -    24,743   5
Income tax payable   215    (215)   -    -   2
Franchise tax payable   70    (70)   -    -   2
Total current liabilities   11,785    14,319    -    26,104    
Convertible promissory notes   1,500    -         1,500    
Canada Emergency Business Loan Act   44    -    (44)   -    
Accrued interest   691    (691)   -    -   5
Warrant liabilities   363    (363)   -    -   2
Deferred underwriter fee payable   4,025    (4,025)   -    -   2
Working capital loan   207    (207)   -    -   2
Extension loans   2,546    (2,546)   -    -   2
Other long-term liabilities   -    -    44    44    
Total liabilities   21,161    6,488    -    27,648    
Commitments and contingencies (Note 13)   28,750    (28,750)   -    -    
Temporary equity:                       
Preferred Series A-2, par value $0.0001, 4,200,000 shares authorized, and 0 and 3,415,923 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively   -    9,634    -    9,634   6
Preferred Shares A-1, par value $0.0001, 4,400,000 shares authorized, and 0 and 2,839,957 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively   -    8,010    -    8,010   6
Total temporary equity    -    17,644    -    17,644    
Stockholders’ (deficit) equity:                       
Common Stock, par value $0.0001, 100,000,000 shares authorized and 23,572,232 and 4,033,170 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively   1    (1)   -    -    
Additional paid-in-capital   24,032    (10,375)   -    13,657   7
Accumulated deficit   (43,510)   (14,150)   -    (57,660)   
Total stockholders’ deficit   9,273    (35,632)   -    (26,359)   
Total liabilities, temporary equity, and stockholders’ deficit  $30,434   $(29,145)  $-   $1,289    

 

  1 Represents reclassification adjustment made to the consolidated balance sheet that are separate from the restatement but were included herein for completeness purposes.
  2 Impact of improper inclusion of Data Knights financial information prior to the closing of the Business Combination.
  3 Impact of: (i) improper capitalization of interim review expenses; and (ii) exclusion of certain transaction-related costs for the Business Combination.
  4 Impact of (i) under-accruals related to the year-end bonus and taxes; and (ii) improper inclusion of Data Knights accounts payable and accrued expenses.
  5 Impact of errors related to the valuation of the convertible promissory notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO (including accrued interest).
  6 Impact of errors related to the accounting for historical preferred stock as temporary equity.
  7 Impact of errors related to: (i) valuation of stock compensation expense; (2) identification, classification and valuation of equity-classified warrants; and (3) improper inclusion of Data Knights APIC balances.
  8 Cumulative and current year impacts of corrections of errors to the consolidated statements of operations.

 

 

Reconciliation of the Original and Restated Statement of Operations for the Year Ended December 31, 2023

 

   As Previously Reported   Restatement Adjustments   Reclassification Adjustments 1   As
Restated		   Ref.
   For the year ended December 31, 2023
   As Previously Reported   Restatement Adjustments   Reclassification Adjustments (1)   As
Restated		   Ref.
Revenue                       
Subscription revenue  $878   $-   $-   $878    
Web imaging revenue   143    -    -    143    
Total revenue   1,021    -    -    1,021    
Cost of revenue   1,150    -    -    1,150    
Gross margin   (129)   -   -    (129)   
Operating expenses        -              
General and administrative   5,274    (1,730)   -    3,544   2
Operations   226    -    (226)   -    
Sales and marketing   1,115    -    -    1,115    
Research and development   1,632    433    -    2,065   2
Total operating expenses   8,247    (1,297)   (226)   6,724    
Loss from operations   (8,376)   1,523         (6,853)   
Other expense (income), net                       
Impairment   10,504    (10,504)   -    -   3
Interest expense   749    (738)   -    11   4
Stock warrant expense   3,572    5,635    -    9,207   5
Change in fair value of warrants   (47)   (82)   -    (129)  6
Change in fair value of PIPE Notes   -    269    -    269   7
Change in fair value of convertible promissory notes        17,517    -    17,517   4
Other expense   52    -    (18)   34    
Total other expense, net   14,830    12,097    (18)   26,909    
Loss before income taxes  $(23,206)  $(10,574)  $18   $(33,762)   
Income tax expense   -    -    18    18    
Net loss  $(23,206)  $(10,574)  $-   $(33,780)   
                        
Earnings per share:                       
Basic and diluted net loss per common share outstanding  $(0.98)  $(3.78)  $-   $(4.77)  8
                        
Basic and diluted weighted average number of common shares outstanding   23,572,232    (16,488,164)   -    7,084,068   8

 

  1 Represents certain reclassification adjustments made to the consolidated income statement that are separate from the restatement but were included herein for completeness purposes.
  2 Impact of errors related to (i) improper valuation of stock compensation expense; (ii) improper capitalization of deferred transaction costs; and (iii) under-accrued bonus and taxes.
  3 Impact of improper recognition of impairment expense upon the closing of the Business Combination with Data Knights.
  4 Impact of errors related to the valuation of the convertible promissory notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO with changes in fair value reflected in the consolidated statements of operations (including interest expense).
  5 Impact of errors related to the identification, classification and valuation of equity-classified warrants.
  6 Impact of errors related to valuation of liability classified warrant values and the corresponding changes in fair value reflected in the consolidated statements of operations.
  7 Impact of errors related to the valuation of the PIPE notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO with changes in fair value reflected in the consolidated statements of operations (including interest expense).
  8 EPS impact of corrections of errors to the consolidated statements of operations.

 

 

Reconciliation of the Original and Restated Statement of Operations for the Year Ended December 31, 2022

 

   As Previously Reported   Restatement Adjustments   Reclassification Adjustments 1   As
Restated		   Ref.
   For the year ended December 31, 2022
   As Previously Reported   Restatement Adjustments   Reclassification Adjustments (1)   As
Restated		   Ref.
Revenue                       
Subscription revenue  $678   $-   $-   $678    
Web imaging revenue   475    -    -    475    
Total revenue   1,153    1,153    -    1,153    
Cost of revenue   1,513    -    -    1,513    
Gross margin   (360)   1,153   -    (360)   
Operating expenses                       
General and administrative   8,756    (3,950)   -    4,806   2
Operations   399    -    (399)   -    
Sales and marketing   958    -    -    958    
Research and development   953    638    -    1,591   2
Total operating expenses   11,066    (3,312)   (399)   7,355    
Loss from operations   (11,426)   3,711    399    (7,715)   
Other expense (income), net                       
Income tax provision   215    (215)   -    -   3
Interest expense   403    (403)   -    -   4
Stock warrant expense   -    8,073    -    8,073   5
Change in fair value of warrants   (4,489)   4,489    -    -   3
Change in fair value of convertible promissory notes   -    14,616    -    14,616   4

Other

expense

   47    -    (17)   30    
Unrealized gain or loss   (1,372)   1,372    -    -   3
Total other expense, net   (5,196)   27,932    (17)   22,719    
Loss before income taxes  $(6,230)  $(24,221)  $416   $(30,434)   
Income tax expense   -    -    17    17    
Net loss  $(6,230)  $(24,221)  $399   $(30,451)   
                        
Earnings per share:                       
Basic and diluted net loss per common share outstanding    N/M    $(7.66)  $-   $(7.66)  6
                        
Basic and diluted weighted average number of common shares outstanding    N/M     3,973,897    -    3,973,897   6

 

  1 Represents certain reclassification adjustments made to the consolidated income statement that are separate from the restatement but were included herein for completeness purposes.
  2 Impact of errors related to (i) improper valuation of stock compensation expense; (ii) improper capitalization of deferred transaction costs; and (iii) under-accrued bonus and taxes.
  3 Impact of improper recognition of Data Knights income tax provision, liability classified warrants and unrealized gain/loss prior to the closing of the Business Combination.
  4 Impact of errors related to the valuation of the convertible promissory notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO with changes in fair value reflected in the consolidated statements of operations (including interest expense).
  5 Impact of errors related to the identification, classification and valuation of equity-classified warrants.
  6 EPS impact of corrections of errors to the consolidated statements of operations.

 

 

Reconciliation of the Original and Restated Statement of Cash Flows for the Year Ended December 31, 2023

 

   As Previously Reported   Restatement Adjustments   As
Restated		   Ref.
   For the year ended December 31, 2023
   As Previously Reported   Restatement Adjustments   As
Restated		   Ref.
Cash flows from operating activities:                  
Net loss  $(23,206)  $(10,574)  $(33,780)  1
Adjustments to reconcile net loss to net cash used in operating activities:                  
Depreciation and amortization   28    -    28    
Business combination cost   900    (900)   -   2
Cash held in trust account   29,029    (29,029)   -   3
Stock-based compensation expense   -    1,475    1,475   4
Stock warrant expense   -    9,207    9,207   5
Change in fair value of warrant liabilities   -    (129)   (129)  6
Change in fair value of PIPE Notes   -    269    269   7
Change in fair value of convertible promissory notes   -    17,517    17,517   8
Non-cash interest   -    11    11   10
Change in operating assets and liabilities:                  
Accounts receivable   (133)   -    (133)   
Prepaid expenses and other current assets   (65)   22    (43)  2, 3
Accounts payable & accrued expenses   1,372    (655)   717   2, 3, 9
Deferred revenues   70    -    70    
Excise tax liability   113    (113)   -   2, 3
Extension loan   446    (446)   -   2, 3
Franchise tax payable   (70)   70    -   2, 3
Income tax payable   (95)   95    -   2, 3
Working capital loan   (168)   168    -   2, 3
Net cash used in operating activities   8,221    (13,012)   (4,791)   
Cash flows from investing activities:                  
Purchases of property and equipment   (44)   -    (44)   
Net cash used in investing activities   (44)   -    (44)   
Cash flows from financing activities:                  
Proceeds from issuance of shareholder loans   465    (11)   454   10
Proceeds from issuance of PIPE notes   1,550    (50)   1,500   7
Common stock subject to redemption   (28,750)   28,750    -   2
Deferred underwriting fee   (500)   500    -   2
Warrant liability   (338)   338    -   2
Additional paid-in capital   18,189    (18,189)   -   2
Retained earnings adjustment   11,633    (11,633)   -   2
Proceeds (repayment) from issuance of convertible notes   (10,681)   14,856    4,175   8
Proceeds from issuance of Series A-2 preferred stock   -    16    16   2
Business Combination costs   -    (1,534)   (1,534)  2
Net cash provided by financing activities   (8,432)   13,043    4,611    
Net decrease in cash and cash equivalents   (255)   31    (224)   
Cash and cash equivalents at beginning of year   302    (31)   271    
Cash and cash equivalents at end of year  $47   $-   $47    
Supplemental disclosures of non-cash investing and financing activities:                  
Common shares issued to preferred shareholders  $-   $17,659   $17,659   2
Common shares related to convertible promissory notes  $-   $47,935   $47,935   2
Common shares issued to Data Knights shareholders  $-   $(11,937)  $(11,937)  2

 

  1 Accumulated effects of adjustments due to the restatement of the consolidated statement of operations for the year ended December 31, 2023.
  2 Includes impact of errors related to the accounting for the Business Combination. Management did not properly assess the Business Combination and associated recapitalization of the shares. Additionally, an impairment charge was erroneously included in the initial filed financial statements.
  3 Includes impact of improper inclusion of Data Knights financial information as of December 31, 2022 prior to the closing of the Business Combination.
  4 Impact of errors related to improper valuation of stock compensation expense.
  5 Impact of errors related to the identification, classification and valuation of equity-classified warrants.
  6 Impact of errors related to valuation of liability classified warrant values and the corresponding changes in fair value reflected in the consolidated statements of operations.
  7 Impact of errors related to the valuation of the PIPE notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO.
  8 Impact of errors related to the valuation of the convertible promissory notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO (including accrued interest).
  9 Includes current year and prior year impact of errors related to improper cutoff of accounts payable and accrued expenses. Refer to balance sheet restatement reconciliation for more information.
  10 Impact of improper presentation of non-cash interest expense in financing activities.

 

 

Reconciliation of the Original and Restated Statement of Cash Flows for the Year Ended December 31, 2022

 

   As Previously Reported   Restatement Adjustments   As
Restated		   Ref.
   For the year ended December 31, 2022
   As Previously Reported   Restatement Adjustments   As
Restated		   Ref.
Cash flows from operating activities:                  
Net loss  $(6,230)  $(24,221)  $(30,451)  1
Adjustments to reconcile net loss to net cash used in operating activities:                  
Depreciation and amortization   25    -    25    
Stock-based compensation expense   1,600    265    1,865   3
Cash held in trust account   88,292    (88,292)   -   2
Stock warrant expense   -    8,073    8,073   4
Board of director warrant expense   -    1,198    1,198   4
Change in fair value of convertible promissory notes   -    14,616    14,616   6
Change in operating assets and liabilities:                  
Accounts receivable   73    -    73    
Prepaid expenses and other current assets   (876)   817    (59)  2
Accounts payable & accrued expenses   1,929    (1,514)   415   2, 7
Deferred revenues   (458)   -    (458)   
Amount due to related party   12    (12)   -   2
Extension loan   2,546    (2,546)   -   2
Franchise tax payable   (94)   94    -   2
Income tax payable   215    (215)   -   2
Working capital loan   207    (207)   -   2
Net cash used in operating activities   87,241    (91,944)   (4,703)   
Cash flows from investing activities:        -         
Purchases of property and equipment   (58)   -    (58)   
Net cash used in investing activities   (58)   -    (58)   
Cash flows from financing activities:                  
Payments of Canada Emergency Business Loan Act   (3)   3    -   N/M
Common stock subject to redemption   (88,550)   88,550    -   2
Warrant liability   (4,489)   4,489    -   2
Additional paid-in capital   2,826    (2,826)   -   2
Retained earnings adjustment   (3,360)   3,360    -   2
Proceeds from issuance of convertible notes   5,543    (403)   5,140   6
Proceeds from exercise of stock options   -    8    8   N/M
Business Combination Costs   -    (815)   (815)  2
Net cash provided by financing activities   (88,033)   92,366    4,333    
Net decrease in cash and cash equivalents   (850)   422    (428)   
Cash and cash equivalents at beginning of year   1,152    (453)   699    
Cash and cash equivalents at end of year  $302    (31)  $271    

 

  1 Accumulated effects of adjustments due to the restatement of the consolidated statement of operations for the year ended December 31, 2022.
  2 Impact of improper inclusion of Data Knights financial information as of December 31, 2022 prior to the closing of the Business Combination.
  3 Impact of errors related to improper valuation of stock compensation expense.
  4 Impact of errors related to the identification, classification and valuation of equity-classified warrants.
  5 Impact of errors related to valuation of liability classified warrant values and the corresponding changes in fair value reflected in the consolidated statements of operations.
  6 Impact of errors related to the valuation of the convertible promissory notes containing certain embedded features that were not previously considered, which are now accounted for under the FVO (including accrued interest).
  7 Current year and prior year impact of errors related to improper cutoff of accounts payable and accrued expenses. Refer to balance sheet restatement reconciliation for more information.
  8 Improper presentation of Business Combination costs as well as errors identified related to capitalization of such costs. Refer to balance sheet restatement reconciliation for more information.

 

 

 

Reconciliation of the Original and Restated Statement of Changes in Temporary Equity and Stockholders’ Deficit as of December 31, 2023

 

   Ref.   Shares   Amount   Shares   Amount   Amount   Shares   Amount   Commitments   Capital   Deficit   Deficit 
               Total                     
       Series A-2   Series A-1   Temporary           Additional       Total 
       Preferred Stock   Preferred Stock   Equity   Common Stock       Paid-in   Accumulated   Stockholders’ 
   Ref.   Shares   Amount   Shares   Amount   Amount   Shares   Amount   Commitments   Capital   Deficit   Deficit 
As Previously Reported                                                
Balances as of December 31, 2022        3,853,797   $-    3,204,000   $-   $-    9,388,958   $1   $28,750   $24,032   $(43,510)  $9,273 
Issuance of common shares in exchange for services        -    -    -    -    -    -    -    -         -    - 
Issuance of Series A-2 Preferred Stock        -    -    -    -    -    -    -    -         -    - 
Issuance of OMN warrants in conjunction with convertible promissory notes        -    -    -    -    -    -    -    -         -    - 
Exercise of OMN stock options upon Business Combination        -    -    -    -    -    612,670    -    -    613    -    613 
Exercise of OMN warrants upon Business Combination        -    -    -    -    -    3,859,464    -    -    3,859    -    3,859 
Conversion of OMN convertible loans upon Business Combination        -    -    -    -    -    6,177,229    1    -    6,177    -    6,178 
Conversion of OMN convertible promissory notes upon Business Combination        (3,853,797)   -    (3,204,000)   -    -    7,057,797    1    -    7,057    -    7,058 
Private OneMedNet to ONMD Public Shares        -    -    -    -    -    (2,257,326)   -    -    (2,257)   -    (2,257)
Issuance of PIPE warrants        -    -    -    -    -    -    -    -    101    -    101 
Issuance of common stock upon Business Combination with Data Knights, net of liabilities assumed and transaction costs        -    -    -    -    -    (1,266,560)   -    -    746    -    746 
Common stock redemption        -    -    -    -    -    -    -    (28,750)        -    (28,750)
Stock-based compensation expense        -    -    -    -    -    -    -    -    1,893    -    1,893 
Retained earnings adjustment        -    -    -    -    -    -    -    -         11,633    11,633 
Net loss        -    -    -    -    -    -    -    -         (23,206)   (23,206)
Balances as of December 31, 2023 (as previously reported)        -   $-    -   $-   $-    23,572,232   $3   $-   $42,221   $(55,083)  $(12,859)
                                                             
Restatement Adjustments                                                            
Balances as of December 31, 2022   1    (437,874)  $9,634    (364,043)  $8,010   $17,644    (5,355,788)  $(1)  $(28,750)  $(10,375)  $(14,150)  $(35,632)
Issuance of common shares in exchange for services   2    -    -    -    -    -    265,914    -    -    -    -    - 
Issuance of Series A-2 Preferred Stock   2    5,673    16    -    -    16    -    -    -    -    -    16 
Issuance of OMN warrants in conjunction with convertible promissory notes   3    -    -    -    -    -    -    -    -    9,207    -    9,207 
Exercise of OMN stock options upon Business Combination   4    -    -    -    -    -    (69,614)   -    -    (613)   -    (613)
Exercise of OMN warrants upon Business Combination   4    -    -    -    -    -    (438,519)   -    -    (3,859)   -    (3,859)
Conversion of OMN convertible promissory notes upon Business Combination   4    -    -    -    -    -    (701,867)   -    -    41,758    -    41,758 
Conversion of preferred stock to common stock upon Business Combination   4    432,201    (9,650)   364,043    (8,010)   (17,660)   (796,244)   -    -    10,602    -    (7,058)
Private OneMedNet to ONMD Public Shares   4    -    -    -    -    -    2,257,326    -    -    2,257    -    2,257 
Issuance of PIPE warrants   3    -    -    -    -    -    -    -    -    (101)   -    (101)
Issuance of common stock upon Business Combination with Data Knights, net of liabilities assumed and transaction costs   1    -    -    -    -    -    4,838,792    -    -    (12,683)   -    (12,683)
Common stock redemption   1    -    -    -    -    -    -    -    28,750    -    -    28,750 
Stock-based compensation expense   5    -    -    -    -    -    -    -    -    (418)   -    (418)
Retained earnings adjustment   1    -    -    -    -    -    -    -    -    -    (11,633)   (11,633)
Net loss   6    -    -    -    -    -    -    -    -    -    (10,574)   (10,574)
Balances as of December 31, 2023 (restatement adjustments)        -   $-    -   $-   $-    -   $(1)  $-   $35,775   $(36,357)  $(583)
                                                             
As Restated                                                            
Balances as of December 31, 2022        3,415,923   $9,634    2,839,957   $8,010   $17,644    4,033,170   $-   $-   $13,657   $(57,660)  $(26,359)
Issuance of common shares in exchange for services        -    -    -    -    -    265,914    -    -    -    -    - 
Issuance of Series A-2 Preferred Stock        5,673    16              16                             16 
Issuance of OMN warrants in conjunction with convertible promissory notes        -    -    -    -    -    -    -    -    9,207    -    9,207 
Exercise of OMN stock options upon Business Combination        -    -    -    -    -    543,056    -    -    -    -    - 
Exercise of OMN warrants upon Business Combination        -    -    -    -    -    3,420,945    -    -    -    -    - 
Conversion of OMN convertible promissory notes upon Business Combination                                 5,475,362    1         47,935         47,936 
Conversion of preferred stock to common stock upon Business Combination        (3,421,596)   (9,650)   (2,839,957)   (8,010)   (17,660)   6,261,553    1         17,659         - 
Private OneMedNet to ONMD Public Shares        -    -    -    -    -    -    -    -    -    -    - 
Issuance of PIPE warrants        -    -    -    -    -    -    -    -    -    -    - 
Issuance of common stock upon Business Combination with Data Knights, net of liabilities assumed and transaction costs        -    -    -    -    -    3,572,232    -    -    (11,937)   -    (11,937)
Common stock redemption        -    -    -    -    -    -    -    -    -    -    - 
Stock-based compensation expense        -    -    -    -    -    -    -    -    1,475    -    1,475 
Retained earnings adjustment        -    -    -    -    -    -    -    -    -    -    - 
Net loss        -    -    -    -    -    -    -    -    -    (33,780)   (33,780)
Balances as of December 31, 2023 (as restated)        -   $-    -   $-   $-    23,572,232   $2   $-   $77,996   $(91,440)  $(13,442)

 

  1 Cumulative impact of corrections of errors to the prior year.
  2 Impact of errors related to the accounting and presentation of the recapitalization.
  3 Impact of errors related to identification, classification and valuation of equity-classified warrants.
  4 Includes impact of errors related to the accounting for the Business Combination. Management did not properly assess the Business Combination and associated recapitalization of the shares. Additionally, an impairment charge was erroneously included in the initial filed financial statements.
  5 Impact of errors related to improper valuation of stock compensation expense.
  6 Current year impact of corrections of errors to the consolidated statements of operations.

 

 

Reconciliation of the Original and Restated Statement of Changes in Temporary Equity and Stockholders’ Deficit as of December 31, 2022

 

   Ref.   Shares   Amount   Shares   Amount   Amount   Shares   Amount   Commitments   Capital   Deficit   Deficit 
               Total                     
       Series A-2   Series A-1   Temporary           Additional       Total 
       Preferred Stock   Preferred Stock   Equity   Common Stock       Paid-in   Accumulated   Stockholders’ 
   Ref.   Shares   Amount   Shares   Amount   Amount   Shares   Amount   Commitments   Capital   Deficit   Deficit 
As Previously Reported                                                
Balances as of December 31, 2021        3,853,797   $-    3,204,000   $-   $-    7,802,941   $1   $28,750   $19,607   $(33,920)  $14,438 
Retroactive application of recapitalization due to Business Combination        -    -    -    -    -    1,378,517    -    -    2,826    (3,360)   (534)
Issuance of common shares in exchange for services        -    -    -    -    -    200,000    -    -    200    -    200 
Exercise of stock options        -    -    -    -    -    7,500    -    -    7    -    7 
Issuance of OMN warrants in conjunction with convertible promissory notes        -    -    -    -    -    -    -    -    -    -    - 
Issuance of OMN warrants to board of directors        -    -    -    -    -    -    -    -    -    -    - 
Stock-based compensation expense        -    -    -    -    -    -    -    -    1,392    -    1,392 
Net loss        -    -    -    -    -    -    -    -    -    (6,230)   (6,230)
Balances as of December 31, 2022 (as previously reported)        3,853,797   $-    3,204,000   $-   $-    9,388,958   $1   $28,750   $24,032   $(43,510)  $9,273 
                                                             
Restatement Adjustments                                                            
Balances as of December 31, 2021   1    -   $9,634    -   $8,010   $17,644    (3,460,275)  $(1)  $(28,750)  $(17,094)  $6,711   $(21,490)
Retroactive application of recapitalization due to Business Combination   2    (437,874)   -    (364,043)   -    -    (1,871,937)   -    -    (2,826)   3,360    534 
Issuance of common shares in exchange for services   2    -    -    -    -    -    (22,724)   -    -    (200)   -    (200)
Exercise of stock options   2    -    -    -    -    -    (852)   -    -    1    -    1 
Issuance of OMN warrants in conjunction with convertible promissory notes   3    -    -    -    -    -    -    -    -    8,073    -    8,073 
Issuance of OMN warrants to board of directors   4    -    -    -    -    -    -    -    -    1,198    -    1,198 
Stock-based compensation expense   5    -    -    -    -    -    -    -    -    473    -    473 
Net loss   6    -    -    -    -    -    -    -    -    -    (24,221)   (24,221)
Balances as of December 31, 2022 (restatement adjustments)        (437,874)  $9,634    (364,043)  $8,010   $17,644    (5,355,788)  $(1)  $(28,750)  $(10,375)  $(14,150)  $(35,632)
                                                             
As Restated                                                            
Balances as of December 31, 2021        3,853,797   $9,634    3,204,000   $8,010   $17,644    4,342,666   $-   $-   $2,513   $(27,209)  $(7,052)
Retroactive application of recapitalization due to Business Combination        (437,874)   -    (364,043)   -    -    (493,420)   -    -    -    -    - 
Issuance of common shares in exchange for services        -    -    -    -    -    177,276    -    -    -    -    - 
Exercise of stock options        -    -    -    -    -    6,648    -    -    8    -    8 
Issuance of OMN warrants in conjunction with convertible promissory notes        -    -    -    -    -    -    -    -    8,073    -    8,073 
Issuance of OMN warrants to board of directors                                                1,198    -    1,198 
Stock-based compensation expense        -    -    -    -    -    -    -    -    1,865    -    1,865 
Net loss        -    -    -    -    -    -    -    -    -    (30,451)   (30,451)
Balances as of December 31, 2022 (as restated)        3,415,923   $9,634    2,839,957   $8,010   $17,644    4,033,170   $-   $-   $13,657   $(57,660)  $(26,359)

 

  1 Cumulative impact of corrections of errors to the prior year.
  2 Impact of errors related to the accounting and presentation of the recapitalization.
  3 Impact of errors related to identification, classification and valuation of equity-classified warrants.
  4 Impact of error related to identificatoin and recognition of board of director warrante expense.
  5 Impact of errors related to improper valuation of stock compensation expense.
  6 Current year impact of corrections of errors to the consolidated statements of operations.

 

 
Schedule of Aggregate Percentage Revenue and Accounts Receivable    
Schedule of Aggregate Percentage Revenue and Accounts Receivable  

 

   2023   2022 
   For the year ended December 31, 
   2023   2022 
Customer 1   51%   29%
Customer 2   0%   22%
Aggregate percent of revenue   51%   51%

 

As of December 31, 2023, three customers accounted for more than 10% of the Company’s accounts receivable balance, and four customers accounted for over 10% of the Company’s accounts receivable balance at December 31, 2022. The following table represents these customers’ aggregate percent of total accounts receivable:

 

   2023   2022 
   As of December 31, 
   2023   2022 
Customer 1   36%   0%
Customer 2   33%   0%
Customer 3   27%   0%
Customer 4   0%   39%
Customer 5   0%   32%
Customer 6   0%   16%
Customer 7   0%   13%
Aggregate percent of total accounts receivable   96%   100%
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss

 

   2024   2023 
  

Nine Months Ended

September 30,

 
   2024   2023 
Options to purchase Common Stock   147,000    913,856 
Unvested restricted stock units and awards   1,371,950    177,275 
Warrants for Common Stock   12,314,114    3,112,165 
Series A-1 preferred stock   -    2,839,957 
Series A-2 preferred stock   -    3,415,923 
Convertible promissory notes   1,118,735    4,643,325 
Total   14,951,799    15,102,501 

   2023   2022 (1) 
   For the year ended December 31, 
   2023   2022 (1) 
Employee stock options   -    913,856 
Restricted stock awards   -    177,276 
Warrants for common stock   12,181,019    2,367,607 
Series A-1 preferred stock   -    2,839,957 
Series A-2 preferred stock   -    3,415,923 
Convertible promissory notes   -    3,786,610 
Total common stock equivalents   12,181,019    13,501,229 

 

(1)Retroactively restated for the reverse recapitalization in Note 3.