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Restatement of Interim Financial Statements (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of Restatement of Interim Financial Statements (Unaudited)


		(Unaudited)
		As of September 30,
		As Reported				Adjustments				As Restated
Assets
Current assets:
Cash and cash equivalents		$	761,249			$	-			$	761,249
Accounts receivable, net			132,382				-				132,382
Inventories			34,530				-				34,530
Prepaid and other current assets			38,693				-				38,693
Total current assets			966,854				-				966,854
Property and equipment, at cost			420,586				-				420,586
Less - accumulated depreciation			(340,260	)			-				(340,260	)
Property and equipment, net			80,326				-				80,326
Operating lease right of use asset, net			78,043				-				78,043
Intangible assets			110,695				-				110,695
Total assets		$	1,235,918			$	-			$	1,235,918

Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable		$	566,649			$	-			$	566,649
Accrued expenses			280,063				-				280,063
Notes payable			194,249				-				194,249
Current portion of operating lease payable			45,194				-				45,194
Customer deposits			68,972				-				68,972
Share liabilities			934,256				-				934,256
Warrant liabilities			168,269				-				168,269
Total current liabilities			2,257,652				-				2,257,652
Operating lease payable, net of current portion			39,353				-				39,353
Total liabilities			2,297,005				-				2,297,005
Stockholders’ deficit:
Convertible Series A preferred stock			-				-				-
Convertible Series Seed preferred stock			-				-				-
Common stock			5,149				-				5,149
Additional paid in capital			42,178,570				3,721,007				45,899,577
Accumulated deficit			(43,244,806	)			(3,721,007	)			(46,965,813	)
Total stockholders’ deficit			(1,061,087	)			-				(1,061,087	)
Total liabilities and stockholders’ deficit		$	1,235,918			$	-			$	1,235,918

NeurAxis, Inc.

Statements of Operations


		(Unaudited)												(Unaudited)
		For the Three Months Ended September 30, 2023												For the Nine Months Ended September 30, 2023
		As Reported				Adjustments				As Restated				As Reported				Adjustments				As Restated
Net sales		$	477,460			$	-			$	477,460			$	1,928,590			$	-			$	1,928,590
Cost of goods sold			67,287				-				67,287				231,000				-				231,000
Gross profit			410,173				-				410,173				1,697,590				-				1,697,590
Selling expenses			64,210				-				64,210				250,933				-				250,933
Research and development			44,950				-				44,950				171,536				-				171,536
General and administrative			3,323,352				-				3,323,352				6,316,411				-				6,316,411
Operating loss			(3,022,339	)			-				(3,022,339	)			(5,041,290	)			-				(5,041,290	)
Other (expense) income, net:
Financing charges			-				-				-				(2,772	)			-				(2,772	)
Interest expense			(102,628	)			-				(102,628	)			(453,869	)			-				(453,869	)
Interest income			2,103				-				2,103				2,103				-				2,103
Change in fair value of warrant liability			592,853				-				592,853				791,610				-				791,610
Change in fair value of derivative financial instruments			6,394				-				6,394				198,551				-				198,551
Amortization of debt discount and issuance cost			(1,331,030	)			-				(1,331,030	)			(4,881,622	)			-				(4,881,622	)
Extinguishment of debt liabilities			(1,058,062	)			(3,721,007	)			(4,779,069	)			71,436				(3,721,007	)			(3,649,571	)
Other income			9,931				-				9,931				11,483				-				11,483
Other expense			(1,578	)			-				(1,578	)			(9,008	)			-				(9,008	)
Total other (expense) income, net			(1,882,017	)			(3,721,007	)			(5,603,024	)			(4,272,088	)			(3,721,007	)			(7,993,095	)
Net loss		$	(4,904,356	)		$	(3,721,007	)		$	(8,625,363	)		$	(9,313,378	)		$	(3,721,007	)		$	(13,034,385	)

NeurAxis, Inc.

Statements of Cash Flows


		(Unaudited)
		For the Nine Months Ended September 30, 2023
		As Reported				Adjustments				As Restated
Cash flows from operating activities
Net loss		$	(9,313,378	)		$	(3,721,007	)		$	(13,034,385	)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization of debt discount and issuance cost			4,881,622				-				4,881,622
Depreciation and amortization			30,290				-				30,290
Provision for losses on accounts receivable			6,380				-				6,380
Non-cash lease expense			23,339				-				23,339
Non-cash interest expense			260,777				-				260,777
Stock based compensation			-				-				-
Extinguishment of derivative liability			(71,436	)			3,721,007				3,649,571
Issuance of common stock for non-cash consideration			2,550,000				-				2,550,000
Finance charges			2,772				-				2,772
Change in fair value of derivative liabilities			(198,551	)			-				(198,551	)
Change in fair value of warrant liabilities			(791,610	)			-				(791,610	)
Changes in operating assets and liabilities:
Accounts receivable			35,637				-				35,637
Inventory			13,603				-				13,603
Prepaids and other current assets			(37,967	)			-				(37,967	)
Accounts payable			(1,025,467	)			-				(1,025,467	)
Accrued expenses			(415,181	)			-				(415,181	)
Customer deposits			9,798				-				9,798
Operating lease liability			(25,047	)			-				(25,047	)
Net cash used by operating activities			(4,064,419	)			-				(4,064,419	)
Cash flows from investing activities
Additions to property and equipment			(14,741	)			-				(14,741	)
Additions to intangible assets			(41,000	)			-				(41,000	)
Net cash used by investing activities			(55,741	)			-				(55,741	)
Cash flows from financing activities
Proceeds from issuance of common stock, net of issuance costs			5,464,642				-				5,464,642
Offering costs in advance of sale of common stock			(2,417,185	)			-				(2,417,185	)
Principal payments on notes payable			(3,487,578	)			-				(3,487,578	)
Proceeds from notes payable			159,831				-				159,831
Proceeds from convertible notes, net of fees			4,908,000				-				4,908,000
Net cash provided by financing activities			4,627,710				-				4,627,710
Net decrease in cash and cash equivalents			507,550				-				507,550
Cash and cash equivalents at beginning of period			253,699				-				253,699
Cash and cash equivalents at end of period		$	761,249			$	-			$	761,249