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Correction of Immaterial Errors | 12 Months Ended
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Dec. 31, 2022
Correction Of Immaterial Errors |
Correction of Immaterial Errors | 14. Correction of Immaterial Errors During the year ending December 31, 2022, management identified and corrected certain immaterial errors in the Company’s historical financial statements associated with the cost of revenues provided by a subcontractor. The errors understated the cost of revenue and overstated the sales and marketing operating expenses by equal amounts in the Consolidated Statement of Operations. The error had no impact on operating losses, net losses, and net loss per share nor any other financial statement amount. Further these errors had no impact on the consolidated balance sheets, statements of changes in stockholders’ equity (deficit), and statement of cash flows. These corrections do not affect any of the metrics used to calculate and evaluate management’s compensation and had no impact on bonuses, commissions, stock-based compensation, or any other employee renumeration. Historical amounts have been corrected and are presented on a comparable basis. The below table presents the effect of the correction for the year ended December 31, 2021:
Schedule of effect of the correction |  |  |  |  |  |  |  |  |
|  | Year Ended December 31, 2021 |
|  | As Reported |  |  | Adjustments |  |  | As Corrected |
Revenue |  | $ | 7,277 |  |  | $ | – |  |  | $ | 7,277 |
Cost of Revenue |  |  | 2,625 |  |  |  | 996 |  |  |  | 3,621 |
Gross Profit |  |  | 4,652 |  |  |  | (996 | ) |  |  | 3,656 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 11,931 |  |  |  | (996 | ) |  |  | 10,935 |
Research and development |  |  | 6,328 |  |  |  | – |  |  |  | 6,328 |
General and administrative |  |  | 5,896 |  |  |  | – |  |  |  | 5,896 |
Operating Loss |  | $ | (19,503 | ) |  | $ | – |  |  | $ | (19,503 | )

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