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Restatement of Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Consolidated Financial Statements and Quarterly Financial Information (Unaudited)

2. Restatement of Previously Issued Consolidated Financial Statements

While preparing its unaudited condensed consolidated financial statements for the quarter ended June 30, 2025, the Company identified an error (the "Error") in the Company’s historical consolidated financial statements as of and for the years ended December 31, 2023 and December 31, 2024, and the quarter and year-to-date periods ended March 31, 2024, June 30, 2024, September 30, 2024, and March 31, 2025 that caused both overstatements and understatements of Other comprehensive income (loss) as reflected in the consolidated statements of comprehensive income (loss), Other income (expense) as reflected in the consolidated statements of operations, Net income (loss) as reflected in the consolidated statements of comprehensive loss and consolidated statements of operations, and Accumulated other comprehensive income (loss) and Accumulated deficit as reflected in the consolidated balance sheets and consolidated statements of stockholders' deficit. The Company determined that the Error originated from the existing material weakness related to the lack of sufficient levels of staff with public company and technical accounting experience to maintain proper control activities and perform risk assessment and monitoring activities. These adjustments were inadvertently booked in the wrong direction consistently since the fourth quarter of 2023. The Error had no impact to revenue, gross profit, operating expenses, operating loss, or cash and cash equivalents.

Additionally, the Company corrected an item that was previously identified and concluded as an immaterial error to its consolidated financial statements as of and for the fiscal years ended December 31, 2024 and 2023. This item primarily relates to Other liabilities and Other income (Expense) misclassifications.

As a result, the Company is restating the accompanying consolidated financial statements as of and for the years ended December 31, 2024 and 2023.

The effects of the restatements on the consolidated financial statements as of and for the years ended December 31, 2024 and 2023, are as follows:

As of and for the Year Ended December 31, 2024

Restated Consolidated Balance Sheet

(dollars in thousands)


	As of December 31, 2024
	As Reported			Adjustment			As Restated
Assets
Current assets:
Cash and cash equivalents	$	15,379		$	—		$	15,379
Accounts receivable, net of allowance of doubtful accounts		7,134			—			7,134
Inventory, net		3,400			—			3,400
Prepaid expenses and other current assets		1,243			—			1,243
Total current assets		27,156			—			27,156
Property and equipment, net		2,469			—			2,469
Right-of-use asset		2,079			—			2,079
Other long-term assets		1,109			—			1,109
Total assets	$	32,813		$	—		$	32,813
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	6,572		$	—		$	6,572
Current portion of lease liabilities		869			—			869
Accrued expenses and other current liabilities		11,422			—			11,422
Total current liabilities		18,863			—			18,863
Convertible notes payable		35,710			—			35,710
Warrant liabilities		4,567			—			4,567
Revenue Interest Financing liability		49,200			—			49,200
Earn-out liabilities		1,090			—			1,090
Lease liabilities, net of current portion		1,344			—			1,344
Other liabilities		17			—			17
Total liabilities		110,791			—			110,791
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value — 100,000,000 shares authorized as of December 31, 2024; and no shares issued and outstanding as of December 31, 2024		—			—			—
Common stock, $0.0001 par value - 1,000,000,000 shares authorized as of December 31, 2024; 2,710,607 shares issued and outstanding as of December 31, 2024		3			—			3
Additional paid-in capital		152,596			—			152,596
Accumulated other comprehensive income (loss)		8,370			(16,740	)		(8,370	)
Accumulated deficit		(238,947	)		16,740			(222,207	)
Total stockholders’ deficit		(77,978	)		—			(77,978	)
Total liabilities and stockholders’ deficit	$	32,813		$	—		$	32,813

Restated Consolidated Statement of Operations

(dollars in thousands)


	Year Ended December 31, 2024
	Originally Reported			Adjustment		As Restated
Revenue	$	32,110		$	—	$	32,110
Cost of revenue		10,607			—		10,607
Gross profit		21,503			—		21,503
Operating expenses:
Sales and marketing		25,933			—		25,933
Research and development		17,369			—		17,369
General and administrative		28,399			—		28,399
Total operating expenses:		71,701			—		71,701
Loss from operations		(50,198	)		—		(50,198	)
Other income (expense):
Interest expense		(2,264	)		—		(2,264	)
Changes in fair value of warrants		17,024			—		17,024
Changes in fair value of debt		8,690			9,400		18,090
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option		(14,321	)		9,550		(4,771	)
Changes in fair value of earn-out liabilities		22,900			—		22,900
Termination on convertible note side letters		—			—		—
Loss on extinguishment of debt		(8,713	)		—		(8,713	)
Other income (expense), net		1,452			—		1,452
Total other income (expense):		24,768			18,950		43,718
Income (loss) before income taxes		(25,430	)		18,950		(6,480	)
Provision for income taxes		(718	)		—		(718	)
Net Income (loss)	$	(26,148	)	$	18,950	$	(7,198	)
Net income (loss) per share
Basic and diluted	$	(11.64	)	$	8.44	$	(3.20	)
Weighted-average shares outstanding
Basic and diluted		2,247,164			—		2,247,164

Restated Consolidated Statement of Comprehensive Loss

(dollars in thousands)


	Year Ended December 31, 2024
	As Reported			Adjustment			As Restated
Net Income (loss)	$	(26,148	)	$	18,950		$	(7,198	)
Other comprehensive loss:
Change in fair value of Revenue Interest Financing due to change in credit risk		4,370			(8,740	)		(4,370	)
Change in fair value of RTW Convertible Notes due to change in credit risk		4,700			(9,400	)		(4,700	)
Comprehensive Income (loss)	$	(17,078	)	$	810		$	(16,268	)

Restated Consolidated Statement of Cash Flows

(dollars in thousands)


	Year Ended December 31, 2024
	As Reported			Adjustment			As Restated
Operating Activities:
Net loss	$	(26,148	)	$	18,950		$	(7,198	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash lease expense		765			—			765
Depreciation and amortization		997			—			997
Stock-based compensation		3,056			—			3,056
Provision for uncollectible accounts		1,418			—			1,418
Unrealized exchange gain (loss)		594			—			594
Provision for inventory		2,228			—			2,228
Change in fair value of warrant liabilities		(17,024	)		—			(17,024	)
Change in fair value of derivative liabilities		(1,895	)		—			(1,895	)
Change in fair value of debt		(8,690	)		(9,400	)		(18,090	)
Change in fair value of Revenue Interest Financing and PIPE Conversion Option		14,321			(9,550	)		4,771
Change in fair value of earn-out liabilities		(22,900	)		—			(22,900	)
Interest paid on debt recorded at fair value		(3,098	)		—			(3,098	)
Non-cash interest expense		1,464			—			1,464
Non-cash termination of convertible note side letters		—			—			—
Loss on extinguishment of debt		8,713			—			8,713
Non-cash issuance of common stock for commitment shares		—			—			—
Debt issuance costs associated with debt recorded at fair value		1,357			—			1,357
Issuance costs associated with warrants recorded at fair value		942			—			942
Changes in operating assets and liabilities:					—
Accounts receivable		8,977			—			8,977
Inventory		543			—			543
Prepaid expenses, other current and long-term assets		913			—			913
Lease liabilities		(836	)		—			(836	)
Accounts payable		(3,924	)		—			(3,924	)
Accrued expenses and other current liabilities		(4,073	)		—			(4,073	)
Net cash used in operating activities	$	(42,300	)	$	—		$	(42,300	)
Investing Activities:
Purchases of property and equipment		(611	)		—			(611	)
Net cash used in investing activities	$	(611	)	$	—		$	(611	)
Financing Activities:
Proceeds from issue of convertible notes		48,000			—			48,000
Proceeds from Private Placement, net of issuance costs		2,592			—			2,592
Proceeds from Public Offering, net of issuance costs		17,660			—			17,660
Proceeds from issuance of convertible notes - net		—			—			—
Proceeds from term loan - net		—			—			—
Payment of debt issuance costs		(1,357	)		—			(1,357	)
Proceeds from Business Combination, net of transaction costs		—			—			—
Proceeds from Revenue Interest Financing		—			—			—
Repayment of 2021 Term Loan		—			—			—
Repayment of Fortress Term Loan		(47,720	)		—			(47,720	)
Repayment of promissory note assumed in Business Combination		—			—			—
Proceeds from option and warrant exercises		26			—			26
Repayment of convertible notes		—			—			—
Proceeds from equity line financing		1,007			—			1,007
Net cash provided by financing activities	$	20,208		$	—		$	20,208
Net increase (decrease) in cash and cash equivalents and restricted cash		(22,703	)		—			(22,703	)
Cash and cash equivalents and restricted cash at beginning of period		38,421			—			38,421
Cash and cash equivalents and restricted cash at end of period	$	15,718		$	—		$	15,718
Supplemental disclosure of cash flow information
Cash paid for interest	$	2,672		$	—		$	2,672
Supplemental cash flow information on non-cash investing and financing activities
Deferred financing costs in accounts payable and accrued expenses	$	323		$	—		$	323
Change in fair value of RTW Convertible Notes through OCI		4,700			(9,400	)		(4,700	)
Change in fair value of Revenue Interest Financing through OCI		4,370			(8,740	)		(4,370	)
Conversion of Series A Preferred Stock into Common Stock		(979	)		—			(979	)
Exercise of PIPE Conversion Option		(547	)		—			(547	)

As of and for the Year Ended December 31, 2023

Restated Consolidated Balance Sheet

(dollars in thousands)


	As of December 31, 2023
	As Reported			Adjustment			As Restated
Assets
Current assets:
Cash and cash equivalents	$	38,037		$	—		$	38,037
Accounts receivable, net of allowance of doubtful accounts		18,194			—			18,194
Inventory, net		6,171			—			6,171
Prepaid expenses and other current assets		2,414			—			2,414
Total current assets		64,816			—			64,816
Property and equipment, net		3,381			—			3,381
Right-of-use asset		3,010			—			3,010
Other long-term assets		505			—			505
Total assets	$	71,712		$	—		$	71,712
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	10,379		$	—		$	10,379
Current portion of term loan		38,643			—			38,643
Current portion of lease liabilities		908			—			908
Accrued expenses and other current liabilities		15,495			—			15,495
Total current liabilities		65,425			—			65,425
Warrant liabilities		6,765			—			6,765
Revenue Interest Financing liability		36,200			—			36,200
Earn-out liabilities		23,990			—			23,990
Lease liabilities, net of current portion		2,306			—			2,306
Other liabilities		7,513			810			8,323
Total liabilities		142,199			810			143,009
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value — 100,000,000 shares authorized as of December 31, 2023; and no shares issued and outstanding as of December 31, 2023		—			—			—
Common stock, $0.0001 par value — 1,000,000,000 shares authorized as of December 31, 2023; and 1,907,529 shares issued and outstanding as of December 31, 2023		2			—			2
Additional paid-in capital		143,010			—			143,010
Accumulated other comprehensive income (loss)		(700	)		1,400			700
Accumulated deficit		(212,799	)		(2,210	)		(215,009	)
Total stockholders’ deficit		(70,487	)		(810	)		(71,297	)
Total liabilities and stockholders’ deficit	$	71,712		$	—		$	71,712

Restated Consolidated Statement of Operations

(dollars in thousands)


	Year Ended December 31, 2023
	As Reported			Adjustment			As Restated
Revenue	$	53,467		$	—		$	53,467
Cost of revenue		11,970			—			11,970
Gross profit		41,497			—			41,497
Operating expenses:
Sales and marketing		46,857			—			46,857
Research and development		27,694			—			27,694
General and administrative		46,024			—			46,024
Total operating expenses:		120,575			—			120,575
Loss from operations		(79,078	)		—			(79,078	)
Other income (expense):
Interest expense		(10,566	)		—			(10,566	)
Changes in fair value of warrants		8,364			—			8,364
Changes in fair value of debt		(3,751	)		—			(3,751	)
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option		(2,192	)		(2,210	)		(4,402	)
Changes in fair value of earn-out liabilities		29,050			—			29,050
Termination of convertible note side letters		(17,598	)		—			(17,598	)
Loss on extinguishment of debt		(3,929	)		—			(3,929	)
Other income (expense), net		(643	)		—			(643	)
Total other income (expense):		(1,265	)		(2,210	)		(3,475	)
Income (loss) before income taxes		(80,343	)		(2,210	)		(82,553	)
Provision for income taxes		(264	)		—			(264	)
Net loss	$	(80,607	)	$	(2,210	)	$	(82,817	)
Cumulative undeclared preferred dividends		(1,697	)		—			(1,697	)
Net loss attributable to common shareholders	$	(82,304	)	$	(2,210	)	$	(84,514	)
Net loss per share
Basic and Diluted	$	(57.83	)	$	(1.55	)	$	(59.38	)
Weighted-average shares outstanding
Basic and Diluted		1,423,275			—			1,423,275

Restated Consolidated Statement of Comprehensive Loss

(dollars in thousands)


	Year Ended December 31, 2023
	As Reported			Adjustment			As Restated
Net loss	$	(80,607	)	$	(2,210	)	$	(82,817	)
Other comprehensive income (loss):
Change in fair value of Revenue Interest Financing due to change in credit risk		(700	)		1,400			700
Comprehensive loss	$	(81,307	)	$	(810	)	$	(82,117	)

Restated Consolidated Statement of Cash Flows

(dollars in thousands)


	Year Ended December 31, 2023
	As Reported			Adjustment			As Restated
Operating Activities:
Net loss	$	(80,607	)	$	(2,210	)	$	(82,817	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash lease expense		824			—			824
Depreciation and amortization		746			—			746
Stock-based compensation		8,357			—			8,357
Provision for uncollectible accounts		12,675			—			12,675
Unrealized exchange gain (loss)		(180	)		—			(180	)
Provision for inventory		1,399			—			1,399
Change in fair value of warrant liabilities		(8,364	)		—			(8,364	)
Change in fair value of derivative liabilities		1,730			—			1,730
Change in fair value of debt		3,751			—			3,751
Change in fair value of Revenue Interest Financing and PIPE Conversion Option		2,192			2,210			4,402
Change in fair value of earn-out liabilities		(29,050	)		—			(29,050	)
Interest paid on debt recorded at fair value		(1,092	)		—			(1,092	)
Non-cash interest expense		2,083			—			2,083
Non-cash termination of convertible note side letters		16,098			—			16,098
Loss on extinguishment of debt		3,929			—			3,929
Non-cash issuance of common stock for commitment shares		123			—			123
Debt issuance costs associated with debt recorded at fair value		1,210			—			1,210
Changes in operating assets and liabilities:					—
Accounts receivable		(1,318	)		—			(1,318	)
Inventory		(3,705	)		—			(3,705	)
Prepaid expenses, other current and long-term assets		285			—			285
Lease liabilities		(789	)		—			(789	)
Accounts payable		4,664			—			4,664
Accrued expenses and other current liabilities		1,057			—			1,057
Net cash used in operating activities	$	(63,982	)	$	—		$	(63,982	)
Investing Activities:
Purchases of property and equipment		(1,606	)		—			(1,606	)
Net cash used in investing activities	$	(1,606	)	$	—		$	(1,606	)
Financing Activities:
Proceeds from issuance of convertible notes - net		28,700			—			28,700
Proceeds from term loan - net		59,780			—			59,780
Payment of debt issuance costs		(3,450	)		—			(3,450	)
Proceeds from Business Combination, net of transaction costs		61,652			—			61,652
Proceeds from Revenue Interest Financing		40,000			—			40,000
Repayment of 2021 Term Loan		(57,659	)		—			(57,659	)
Repayment of Fortress Term Loan		(20,000	)		—			(20,000	)
Repayment of promissory note assumed in Business Combination		(2,500	)		—			(2,500	)
Proceeds from option and warrant exercises		213			—			213
Repayment of convertible notes		(10,750	)		—			(10,750	)
Proceeds from equity line financing		—			—			—
Net cash provided by financing activities	$	95,986		$	—		$	95,986
Net increase (decrease) in cash and cash equivalents and restricted cash		30,398			—			30,398
Cash and cash equivalents and restricted cash at beginning of period		8,023			—			8,023
Cash and cash equivalents and restricted cash at end of period	$	38,421		$	—		$	38,421
Supplemental disclosure of cash flow information
Cash paid for interest	$	8,035		$	—		$	8,035
Supplemental cash flow information on non-cash investing and financing activities
Purchase of property and equipment included in accounts payable	$	134		$	—		$	134
Deferred financing costs in accounts payable and accrued expenses		580			—			580
Recognition of assumed warrant liability		13,762			—			13,762
Recognition of earn-out liabilities		53,040			—			53,040
Issuance of common stock upon conversion of convertible notes		25,569			—			25,569
Change in fair value of Revenue Interest Financing through OCI		(700	)		1,400			700

The impacts of the restatements have been reflected throughout these consolidated financial statements, including Notes 9, 10, 11, 12, 14, and 18.

21. Restatement of Quarterly Financial Information (Unaudited)

As discussed in greater detail in Note 2, the Company determined to restate its previously issued unaudited condensed consolidated financial statements for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. The following tables summarize the impacts of the results on the Company's previously reported condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of cash flows, and condensed consolidated statements of stockholders' deficit included in the Company's Quarterly Reports on Form 10-Q for each respective period.

As of and for the Three and Nine Months Ended September 30, 2024

Restated Condensed Consolidated Balance Sheet

(dollars in thousands)


	As of September 30, 2024
	As Reported			Adjustment			As Restated
Assets
Current assets:
Cash and cash equivalents	$	28,654		$	—		$	28,654
Accounts receivable, net of allowance of doubtful accounts		9,935			—			9,935
Inventory, net		4,568			—			4,568
Prepaid expenses and other current assets		1,672			—			1,672
Total current assets		44,829			—			44,829
Property and equipment, net		3,080			—			3,080
Right-of-use asset		2,283			—			2,283
Other long-term assets		507			—			507
Total assets	$	50,699		$	—		$	50,699
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	10,393		$	—		$	10,393
Current portion of lease liabilities		878			—			878
Accrued expenses and other current liabilities		7,973			—			7,973
Total current liabilities		19,244			—			19,244
Warrant liabilities		7,381			—			7,381
Revenue Interest Financing liability		38,500			—			38,500
Earn-out liabilities		1,850			—			1,850
Convertible notes payable		36,090			—			36,090
Lease liabilities, net of current portion		1,578			—			1,578
Other liabilities		9,867			—			9,867
Total liabilities		114,510		$	—			114,510
Commitments and Contingencies
Redeemable convertible preferred stock
Series A redeemable convertible preferred stock, $0.0001 par value — 100,000,000 shares authorized as of September 30, 2024; and 2,260,159 shares issued and outstanding as of September 30, 2024		979			—			979
Stockholders’ deficit:
Common stock, $0.0001 par value — 1,000,000,000 shares authorized as of September 30, 2024; and 2,574,783 shares issued and outstanding as of September 30, 2024		3			—			3
Additional paid-in capital		150,696			—			150,696
Accumulated other comprehensive income (loss)		2,890			(5,780	)		(2,890	)
Accumulated deficit		(218,379	)		5,780			(212,599	)
Total stockholders’ deficit		(64,790	)		—			(64,790	)
Total liabilities and stockholders’ deficit	$	50,699		$	—		$	50,699

Restated Condensed Consolidated Statement of Operations

(dollars in thousands)


	Three months ended September 30, 2024								Nine months ended September 30, 2024
	As Reported			Adjustment		As Restated			As Reported			Adjustment		As Restated
Revenue	$	5,367		$	—	$	5,367		$	26,519		$	—	$	26,519
Cost of revenue		2,256			—		2,256			7,549			—		7,549
Gross profit		3,111			—		3,111			18,970			—		18,970
Operating expenses:
Sales and marketing		5,197			—		5,197			18,060			—		18,060
Research and development		3,212			—		3,212			13,247			—		13,247
General and administrative		7,043			—		7,043			20,746			—		20,746
Total operating expenses:		15,452			—		15,452			52,053			—		52,053
Loss from operations		(12,341	)		—		(12,341	)		(33,083	)		—		(33,083	)
Other income (expense):
Interest expense		—			—		—			(2,264	)		—		(2,264	)
Changes in fair value of warrants		9,703			—		9,703			14,210			—		14,210
Changes in fair value of debt		1,790			6,140		7,930			10,020			5,980		16,000
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option		(11,104	)		11,600		496			(9,608	)		2,010		(7,598	)
Changes in fair value of earn-out liabilities		2,260			—		2,260			22,140			—		22,140
Loss on extinguishment of debt		—			—		—			(8,713	)		—		(8,713	)
Termination of convertible note side letters		—			—		—			—			—		—
Other income (expense), net		757			—		757			1,928			—		1,928
Total other income (expense):		3,406			17,740		21,146			27,713			7,990		35,703
Income (loss) before income taxes		(8,935	)		17,740		8,805			(5,370	)		7,990		2,620
Provision for income taxes		(69	)		—		(69	)		(210	)		—		(210	)
Net Income (loss)	$	(9,004	)	$	17,740	$	8,736		$	(5,580	)	$	7,990	$	2,410
Net income (loss) per share
Basic	$	(3.51	)	$	6.92	$	3.41		$	(2.62	)	$	3.75	$	1.13
Diluted	$	(3.51	)	$	6.91	$	3.40		$	(2.62	)	$	0.20	$	(2.42	)
Weighted-average shares outstanding
Basic		2,563,459			—		2,563,459			2,132,416			—		2,132,416
Diluted		2,563,459			2,862		2,566,321			2,132,416			259,786		2,392,202

Restated Condensed Consolidated Statement of Comprehensive Loss

(dollars in thousands)


	Three months ended September 30, 2024									Nine months ended September 30, 2024
	As Reported			Adjustment			As Restated			As Reported			Adjustment			As Restated
Net Income (loss)	$	(9,004	)	$	17,740		$	8,736		$	(5,580	)	$	7,990		$	2,410
Other comprehensive loss:
Change in fair value of Revenue Interest Financing due to change in credit risk		5,800			(11,600	)		(5,800	)		600			(1,200	)		(600	)
Change in fair value of RTW Convertible Notes due to change in credit risk		3,070			(6,140	)		(3,070	)		2,990			(5,980	)		(2,990	)
Comprehensive Income (loss)	$	(134	)	$	—		$	(134	)	$	(1,990	)	$	810		$	(1,180	)

Restated Condensed Consolidated Statement of Cash Flows

(dollars in thousands)


	Nine Months Ended September 30, 2024
	As Reported			Adjustment			As Restated
Operating Activities:
Net loss	$	(5,580	)	$	7,990		$	2,410
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Non-cash lease expense		561			—		561
Depreciation and amortization		778			—		778
Stock-based compensation		2,217			—			2,217
Provision for uncollectible accounts		1,065			—			1,065
Unrealized exchange (gain) or loss		(29	)		—			(29	)
Provision for inventory		1,052			—			1,052
Change in fair value of warrant liabilities		(14,210	)		—			(14,210	)
Change in fair value of derivative liabilities		(1,895	)		—			(1,895	)
Change in fair value of Revenue Interest Financing and PIPE Conversion Option		9,608			(2,010	)		7,598
Change in fair value of earn-out liabilities		(22,140	)		—			(22,140	)
Interest paid on debt recorded at fair value		(2,458	)		—			(2,458	)
Change in fair value of debt		(10,020	)		(5,980	)		(16,000	)
Debt issuance costs associated with debt recorded at fair value		1,357			—			1,357
Non-cash interest expense		1,464			—			1,464
Loss on term loan extinguishment		8,713			—			8,713
Issuance costs associated with warrants recorded at fair value		942			—			942
Changes in operating assets and liabilities:					—
Accounts receivable		7,199			—			7,199
Inventory		551			—			551
Prepaid expenses, other current and long-term assets		747			—			747
Lease liabilities		(593	)		—			(593	)
Accounts payable		(578	)		—			(578	)
Accrued expenses and other current liabilities		(7,777	)		—			(7,777	)
Net cash used in operating activities	$	(29,026	)	$	—		$	(29,026	)
Investing Activities:
Purchases of property and equipment		(611	)		—			(611	)
Net cash used in investing activities	$	(611	)	$	—		$	(611	)
Financing Activities:
Proceeds from issuance of convertible notes		48,000			—			48,000
Proceeds from Fortress Term Loan - net		—			—			—
Proceeds from Business Combination, net of transaction costs		—			—			—
Proceeds from Revenue Interest Financing		—			—			—
Proceeds from option and warrant exercises		26			—			26
Proceeds from equity line financing		378			—			378
Repayment of convertible notes		—			—			—
Proceeds from Private Placement, net of issuance costs		2,685			—			2,685
Proceeds from Public Offering, net of issuance costs		18,249			—			18,249
Payment of debt issuance costs		(1,357	)		—			(1,357	)
Repayment of 2021 Term Loan		—			—			—
Repayment of promissory note assumed in Business Combination		—			—			—
Repayment of Fortress term loan		(47,720	)		—			(47,720	)
Net cash provided by financing activities	$	20,261		$	—		$	20,261
Net (decrease) increase in cash and cash equivalents and restricted cash	$	(9,376	)				$	(9,376	)
Cash and cash equivalents and restricted cash at beginning of period		38,421			—			38,421
Cash and cash equivalents and restricted cash at end of period	$	29,045		$	—		$	29,045
Supplemental disclosure of cash flow information
Cash paid for interest	$	2,672		$	—		$	2,672
Supplemental cash flow information on non-cash investing and financing activities


Purchase of property and equipment included in accounts payable	$	—	$	—		$	—
Deferred financing costs in accounts payable and accrued expenses		1,004		—			1,004
Change in fair value of Revenue Interest Financing through other comprehensive income		600		(1,200	)		(600	)
Change in fair value of RTW Convertible Notes through other comprehensive income		2,990		(5,980	)		(2,990	)

As of and for the Three and Six Months Ended June 30, 2024

Restated Condensed Consolidated Balance Sheet

(dollars in thousands)


	As of June 30, 2024
	As Reported			Adjustment			As Restated
Assets
Current assets:
Cash and cash equivalents	$	19,258		$	—		$	19,258
Accounts receivable, net of allowance of doubtful accounts		13,357			—			13,357
Inventory, net		4,788			—			4,788
Prepaid expenses and other current assets		2,902			—			2,902
Total current assets		40,305			—			40,305
Property and equipment, net		3,254			—			3,254
Right-of-use asset		2,481			—			2,481
Other long-term assets		510			—			510
Total assets	$	46,550		$	—		$	46,550
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	7,984		$	—		$	7,984
Current portion of lease liabilities		850			—			850
Accrued expenses and other current liabilities		14,724			—			14,724
Total current liabilities		23,558			—			23,558
Public warrant liabilities		2,113			—			2,113
Revenue Interest Financing liability		39,000			—			39,000
Earn-out liabilities		4,110			—			4,110
Convertible notes payable		40,950			—			40,950
Lease liabilities, net of current portion		1,788			—			1,788
Other liabilities		5,613			—			5,613
Total liabilities		117,132			—			117,132
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value — 100,000,000 shares authorized as of June 30, 2024; and no shares issued and outstanding as of June 30, 2024		—			—			—
Common stock, $0.0001 par value — 1,000,000,000 shares authorized as of June 30, 2024; and 1,918,927 shares issued and outstanding as of June 30, 2024		2			—			2
Additional paid-in capital		144,771			—			144,771
Accumulated other comprehensive income (loss)		(5,980	)		11,960			5,980
Accumulated deficit		(209,375	)		(11,960	)		(221,335	)
Total stockholders’ deficit		(70,582	)		—			(70,582	)
Total liabilities and stockholders’ deficit	$	46,550		$	—		$	46,550

Restated Condensed Consolidated Statement of Operations

(dollars in thousands)


	Three months ended June 30, 2024									Six months ended June 30, 2024
	As Reported			Adjustment			As Restated			As Reported			Adjustment			As Restated
Revenue	$	11,766		$	—		$	11,766		$	21,152		$	—		$	21,152
Cost of revenue		2,773			—			2,773			5,293			—			5,293
Gross profit		8,993			—			8,993			15,859			—			15,859
Operating expenses:
Sales and marketing		6,718			—			6,718			12,863			—			12,863
Research and development		4,310			—			4,310			10,035			—			10,035
General and administrative		7,311			—			7,311			13,697			—			13,697
Total operating expenses:		18,339			—			18,339			36,595			—			36,595
Loss from operations		(9,346	)		—			(9,346	)		(20,736	)		—			(20,736	)
Other income (expense):
Interest expense		(339	)		—			(339	)		(2,270	)		—			(2,270	)
Changes in fair value of warrants		1,376			—			1,376			4,507			—			4,507
Changes in fair value of debt		8,230			(160	)		8,070			8,230			(160	)		8,070
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option		6			(6,000	)		(5,994	)		1,496			(9,590	)		(8,094	)
Changes in fair value of earn-out liabilities		5,690			—			5,690			19,880			—			19,880
Loss on extinguishment of debt		(8,713	)		—			(8,713	)		(8,713	)		—			(8,713	)
Other income (expense), net		999			—			999			1,171			—			1,171
Total other income (expense):		7,249			(6,160	)		1,089			24,301			(9,750	)		14,551
Income (loss) before income taxes		(2,097	)		(6,160	)		(8,257	)		3,565			(9,750	)		(6,185	)
Provision for income taxes		(65	)		—			(65	)		(141	)		—			(141	)
Net income (loss)	$	(2,162	)	$	(6,160	)	$	(8,322	)	$	3,424		$	(9,750	)	$	(6,326	)
Net income (loss) per share
Basic	$	(1.13	)	$	(3.21	)	$	(4.34	)	$	1.79		$	(5.09	)	$	(3.30	)
Diluted	$	(1.13	)	$	(3.21	)	$	(4.34	)	$	1.67		$	(4.97	)	$	(3.30	)
Weighted-average shares outstanding
Basic		1,917,872			—			1,917,872			1,914,527			—			1,914,527
Diluted		1,917,872			—			1,917,872			1,959,881			(45,354	)		1,914,527

Restated Condensed Consolidated Statement of Comprehensive Loss

(dollars in thousands)


	Three months ended June 30, 2024									Six months ended June 30, 2024
	As Reported			Adjustment			As Restated			As Reported			Adjustment			As Restated
Net income (loss)	$	(2,162	)	$	(6,160	)	$	(8,322	)	$	3,424		$	(9,750	)	$	(6,326	)
Other comprehensive loss:
Change in fair value of Revenue Interest Financing due to change in credit risk		(3,000	)		6,000		$	3,000			(5,200	)		10,400			5,200
Change in fair value of RTW Convertible Notes due to change in credit risk		(80	)		160		$	80			(80	)		160			80
Comprehensive Income (loss)	$	(5,242	)	$	—		$	(5,242	)	$	(1,856	)	$	810		$	(1,046	)

Restated Condensed Consolidated Statement of Cash Flows

(dollars in thousands)


	Six Months Ended June 30, 2024
	Originally Reported			Adjustment			As Restated
Operating Activities:
Net income (loss)	$	3,424		$	(9,750	)	$	(6,326	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Non-cash lease expense		362			—		362
Depreciation and amortization		564			—		564
Stock-based compensation		1,357			—			1,357
Unrealized exchange (gain) or loss		373			—			373
Provision for inventory		369			—			369
Change in fair value of warrant liabilities		(4,507	)		—			(4,507	)
Change in fair value of derivative liabilities		(1,895	)		—			(1,895	)
Change in fair value of Revenue Interest Financing and PIPE Conversion Option		(1,496	)		9,590			8,094
Change in fair value of earn-out liabilities		(19,880	)		—			(19,880	)
Interest paid on debt recorded at fair value		(1,054	)		—			(1,054	)
Change in fair value of debt		(8,230	)		160			(8,070	)
Debt issuance costs associated with debt recorded at fair value		1,357			—			1,357
Non-cash interest expense		1,464			—			1,464
Loss on term loan extinguishment		8,713			—			8,713
Changes in operating assets and liabilities:					—
Accounts receivable		4,412			—			4,412
Inventory		1,014			—			1,014
Prepaid expenses, other current and long-term assets		718			—			718
Lease liabilities		(411	)		—			(411	)
Accounts payable		(2,504	)		—			(2,504	)
Accrued expenses and other current liabilities		(1,713	)		—			(1,713	)
Net cash used in operating activities	$	(17,563	)	$	—		$	(17,563	)
Investing Activities:
Purchases of property and equipment		(539	)		—			(539	)
Net cash used in investing activities	$	(539	)	$	—		$	(539	)
Financing Activities:
Proceeds from issuance of convertible notes		48,000			—			48,000
Proceeds from option and warrant exercises		26			—			26
Proceeds from equity line financing		378			—			378
Repayment of convertible notes		—			—			—
Payment of deferred financing costs		—			—			—
Payment of debt issuance costs		(1,357	)		—			(1,357	)
Repayment of Fortress term loan		(47,720	)		—			(47,720	)
Net cash provided by (used in) financing activities	$	(673	)	$	—		$	(673	)
Net decrease in cash and cash equivalents and restricted cash		(18,775	)		—			(18,775	)
Cash and cash equivalents and restricted cash at beginning of period		38,421			—			38,421
Cash and cash equivalents and restricted cash at end of period	$	19,646		$	—		$	19,646
Supplemental disclosure of cash flow information
Cash paid for interest	$	2,672		$	—		$	2,672
Supplemental cash flow information on non-cash investing and financing activities							0
Purchase of property and equipment included in accounts payable	$	31		$	—		$	31
Deferred financing costs in accounts payable and accrued expenses		1,207			—			1,207
Change in fair value of RTW Convertible Notes through OCI		—			80			80
Change in fair value of Revenue Interest Financing through OCI		(5,280	)		10,480			5,200

As of and for the Three Months Ended March 31, 2024

Restated Condensed Consolidated Balance Sheet

(dollars in thousands)


	As of March 31, 2024
	As Reported			Adjustment			As Restated
Assets
Current assets:
Cash and cash equivalents	$	29,682		$	—		$	29,682
Accounts receivable, net of allowance of doubtful accounts		16,159			—			16,159
Inventory, net		5,631			—			5,631
Prepaid expenses and other current assets		2,167			—			2,167
Total current assets		53,639			—			53,639
Property and equipment, net		3,180			—			3,180
Right-of-use asset		2,659			—			2,659
Other long-term assets		510			—			510
Total assets	$	59,988		$	—		$	59,988
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	11,944		$	—		$	11,944
Current portion of term loan		38,957			—			38,957
Current portion of lease liabilities		814			—			814
Accrued expenses and other current liabilities		14,506			—			14,506
Total current liabilities		66,221			—			66,221
Public warrant liabilities		3,329			—			3,329
Revenue Interest Financing liability		35,000			—			35,000
Earn-out liabilities		9,800			—			9,800
Lease liabilities, net of current portion		2,011			—			2,011
Other liabilities		9,789			—			9,789
Total liabilities		126,150			—			126,150
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value — 100,000,000 shares authorized as of March 31, 2024; and no shares issued and outstanding as of March 31, 2024		-			—			-
Common stock, $0.0001 par value — 1,000,000,000 shares authorized as of March 31, 2024; and 1,915,956 shares issued and outstanding as of March 31, 2024		2			—			2
Additional paid-in capital		143,949			—			143,949
Accumulated other comprehensive income (loss)		(2,900	)		5,800			2,900
Accumulated deficit		(207,213	)		(5,800	)		(213,013	)
Total stockholders’ deficit		(66,162	)		—			(66,162	)
Total liabilities and stockholders’ deficit	$	59,988		$	—		$	59,988

Restated Condensed Consolidated Statement of Operations

(dollars in thousands)


	Three months ended March 31, 2024
	As Reported			Adjustment			As Restated
Revenue	$	9,386		$	—		$	9,386
Cost of revenue		2,520			—			2,520
Gross profit		6,866			—			6,866
Operating expenses:
Sales and marketing		6,145			—			6,145
Research and development		5,725			—			5,725
General and administrative		6,386			—			6,386
Total operating expenses:		18,256			—			18,256
Loss from operations		(11,390	)		—			(11,390	)
Other income (expense):
Interest expense		(1,931	)		—			(1,931	)
Changes in fair value of warrants		3,131			—			3,131
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option		1,490			(3,590	)		(2,100	)
Changes in fair value of earn-out liabilities		14,190			—			14,190
Other income (expense), net		172			—			172
Total other income (expense):		17,052			(3,590	)		13,462
Income (loss) before income taxes		5,662			(3,590	)		2,072
Provision for income taxes		(76	)		—			(76	)
Net income (loss)	$	5,586		$	(3,590	)	$	1,996
Net income (loss) per share
Basic	$	2.92		$	(1.88	)	$	1.04
Diluted	$	2.78		$	(1.82	)	$	0.96
Weighted-average shares outstanding
Basic		1,911,181			—			1,911,181
Diluted		1,967,885			—			1,967,885

Restated Condensed Consolidated Statement of Comprehensive Income

(dollars in thousands)


	Three months ended March 31, 2024
	As Reported			Adjustment			As Restated
Net income (loss)	$	5,586		$	(3,590	)	$	1,996
Other comprehensive income (loss):
Change in fair value of Revenue Interest Financing due to change in credit risk		(2,200	)		4,400			2,200
Comprehensive income	$	3,386		$	810		$	4,196

Restated Condensed Consolidated Statement of Cash Flows

(dollars in thousands)


	Three Months Ended March 31, 2024
	As Reported			Adjustment			As Restated
Operating Activities:
Net income (loss)	$	5,586		$	(3,590	)	$	1,996
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Non-cash lease expense		199			—		199
Depreciation and amortization		367			—		367
Stock-based compensation		552			—		552
Unrealized exchange (gain) or loss		314			—			314
Provision for inventory		209			—			209
Change in fair value of warrant liabilities		(3,131	)		—			(3,131	)
Change in fair value of derivative liabilities		62			—		62
Change in fair value of Revenue Interest Financing and PIPE Conversion Option		(1,490	)		3,590			2,100
Change in fair value of earn-out liabilities		(14,190	)		—			(14,190	)
Non-cash interest expense		315			—		315
Changes in operating assets and liabilities:					—
Accounts receivable		1,673			—			1,673
Inventory		330			—			330
Prepaid expenses, other current and long-term assets		244			—			244
Lease liabilities		(238	)		—			(238	)
Accounts payable		1,551			—			1,551
Accrued expenses and other current liabilities		(989	)		—			(989	)
Net cash used in operating activities	$	(8,636	)	$	—		$	(8,636	)
Investing Activities:
Purchases of property and equipment		(104	)		—			(104	)
Net cash used in investing activities	$	(104	)	$	—		$	(104	)
Financing Activities:
Proceeds from issuance of convertible notes - net		—			—			—
Proceeds from option and warrant exercises		9			—			9
Proceeds from equity line financing		378			—			378
Payment of deferred financing costs		—			—			—
Net cash provided by financing activities	$	387		$	—		$	387
Net increase (decrease) in cash and cash equivalents and restricted cash		(8,353	)		—			(8,353	)
Cash and cash equivalents and restricted cash at beginning of period		38,421			—			38,421
Cash and cash equivalents and restricted cash at end of period	$	30,068		$	—		$	30,068
Supplemental disclosure of cash flow information
Cash paid for interest	$	1,831		$	—		$	1,831
Supplemental cash flow information on non-cash investing and financing activities
Purchase of property and equipment included in accounts payable	$	73		$	—		$	73
Change in fair value of Revenue Interest Financing through OCI		(2,200	)		4,400			2,200

Restated Condensed Consolidated Statement of Stockholders' Deficit

(dollars in thousands)


	Redeemable Preferred Stock				Common Stock				Additional Paid-		Accumulated Other			Accumulated			Stockholders’
	Shares		Amount		Shares		Amount		in Capital		Comprehensive Loss			Deficit			Deficit
Balance as of January 1, 2024 (Restated)		—	$	—		1,907,529	$	2	$	143,010	$	700		$	(215,009	)	$	(71,297	)
Exercise of stock options		—		—		186		—		9		—			—			9
Issuance of common stock for the exercise of Public Warrants		—		—		6		—		—		—			—			—
Issuance of common stock from equity line financing (Note 12)		—		—		5,730		—		378		—			—			378
Issuance of common stock in connection with vesting of RSU awards		—		—		2,505		—		—		—			—			—
Stock-based compensation expense		—		—		—		—		552		—			—			552
Other comprehensive income (Restated)		—		—		—		—		—		2,200						2,200
Net income (Restated)		—		—		—		—		—		—			1,996			1,996
Balance as of March 31, 2024 (Restated)		—		—		1,915,956		2		143,949		2,900			(213,013	)		(66,162	)
Exercise of stock options		—		—		460		—		16		—			—			16
Issuance of common stock in connection with vesting of RSU awards		—		—		2,505		—		1		—			—			1
Issuance of common stock for the exercise of Public Warrants		—		—		6		—		—		—			—			—
Stock-based compensation expense		—		—		—		—		805		—			—			805
Other comprehensive income (Restated)		—		—		—		—		—		3,080			—			3,080
Net loss (Restated)		—		—		—		—		—		—			(8,322	)		(8,322	)
Balance as of June 30, 2024 (Restated)		—		—		1,918,927	$	2	$	144,771	$	5,980		$	(221,335	)	$	(70,582	)
Exercise of stock options		—		—		—		—		—		—			—			—
Issuance of common stock for the exercise of warrants		—		—		—		—		—		—			—			—
Issuance of common stock in connection with vesting of RSU awards		—		—		2,505		—		—		—			—			—
Stock-based compensation expense		—		—		—		—		860		—			—			860
Issuance of preferred stock in connection with Private Placement, net of issuance costs		2,260,159		979		—		—		—		—			—			—
Issuance of common stock in connection with Public Offering, net of issuance costs		—		—		653,351		1		5,065		—			—			5,066
Other comprehensive loss (Restated)		—		—		—		—		—		(8,870	)		—			(8,870	)
Net income (Restated)		—		—		—		—		—		—			8,736			8,736
Balance as of September 30, 2024 (Restated)		2,260,159	$	979		2,574,783	$	3	$	150,696	$	(2,890	)	$	(212,599	)	$	(64,790	)