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RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3 - RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

The following tables present the effects of the Restatement described in Note 2 - Summary of Significant Accounting Policies – Restatement of Previously Issued Consolidated Financial Statements on the Company’s unaudited interim condensed consolidated financial statements for the periods indicated.

 

The following tables present the effects of the Restatement on the Company’s unaudited interim condensed consolidated balance sheets as of the dates indicated:

 

SCHEDULE OF RESTATEMENTS OF THE COMPANY’S UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS

    As Previously     Restatement     As  
    March 31, 2022  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
Current liabilities                        
Derivative liabilities   $ -     $ 14,205,418     $ 14,205,418  
Total current liabilities   $ 493,829     $ 14,205,418     $ 14,699,247  
Total liabilities   $ 762,186     $ 14,205,418     $ 14,967,604  
Stockholders’ equity                        
Additional paid-in capital   $ 159,103,184     $ (21,901,000 )   $ 137,202,184  
Accumulated deficit   $ (138,962,278 )   $ 7,695,582     $ (131,266,696 )
Total stockholders’ equity   $ 20,156,702     $ (14,205,418 )   $ 5,951,284  
Total liabilities and stockholders’ equity   $ 20,918,888     $ -     $ 20,918,888  

 

 

    As Previously     Restatement     As  
    June 30, 2022  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
Current liabilities                        
Derivative liabilities   $ -     $ 6,430,025     $ 6,430,025  
Total current liabilities   $ 621,781     $ 6,430,025     $ 7,051,806  
Total liabilities   $ 855,841     $ 6,430,025     $ 7,285,866  
Stockholders’ equity                        
Additional paid-in capital   $ 162,207,334     $ (21,901,000 )   $ 140,306,334  
Accumulated deficit   $ (143,637,519 )   $ 15,470,975     $ (128,166,544 )
Total stockholders’ equity   $ 18,585,612     $ (6,430,025 )   $ 12,155,587  
Total liabilities and stockholders’ equity   $ 19,441,453     $ -     $ 19,441,453  

 

    As Previously     Restatement     As  
    September 30, 2022  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
Current liabilities                        
Derivative liabilities   $ -     $ 7,220,748     $ 7,220,748  
Total current liabilities   $ 717,179     $ 7,220,748     $ 7,937,927  
Total liabilities   $ 915,903     $ 7,220,748     $ 8,136,651  
Stockholders’ equity                        
Additional paid-in capital   $ 165,281,862     $ (21,901,000 )   $ 143,380,862  
Accumulated deficit   $ (148,293,344 )   $ 14,680,252     $ (133,613,092 )
Total stockholders’ equity   $ 17,004,315     $ (7,220,748 )   $ 9,783,567  
Total liabilities and stockholders’ equity   $ 17,920,218     $ -     $ 17,920,218  

 

    As Previously     Restatement     As  
    March 31, 2023  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
Current liabilities                        
Derivative liabilities   $ -     $ 7,030,083     $ 7,030,083  
Total current liabilities   $ 470,391     $ 7,030,083     $ 7,500,474  
Total liabilities   $ 593,927     $ 7,030,083     $ 7,624,010  
Stockholders’ equity                        
Additional paid-in capital   $ 171,796,596     $ (21,901,000 )   $ 149,895,596  
Accumulated deficit   $ (158,325,119 )   $ 14,870,917     $ (143,454,202 )
Total stockholders’ equity   $ 13,487,037     $ (7,030,083 )   $ 6,456,954  
Total liabilities and stockholders’ equity   $ 14,080,964     $ -     $ 14,080,964  

 

 

    As Previously     Restatement     As  
    June 30, 2023  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
Current liabilities                        
Derivative liabilities   $ -     $ 9,758,930     $ 9,758,930  
Total current liabilities   $ 812,853     $ 9,758,930     $ 10,571,783  
Total liabilities   $ 896,433     $ 9,758,930     $ 10,655,363  
Stockholders’ equity                        
Additional paid-in capital   $ 173,695,154     $ (21,901,000 )   $ 151,794,154  
Accumulated deficit   $ (161,305,671 )   $ 12,142,070     $ (149,163,601 )
Total stockholders’ equity   $ 12,403,864     $ (9,758,930 )   $ 2,644,934  
Total liabilities and stockholders’ equity   $ 13,300,297     $ -     $ 13,300,297  

 

    As Previously     Restatement     As  
    September 30, 2023  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
Current liabilities                        
Derivative liabilities   $ -     $ 2,065,177     $ 2,065,177  
Total current liabilities   $ 932,619     $ 2,065,177     $ 2,997,796  
Total liabilities   $ 975,033     $ 2,065,177     $ 3,040,210  
Stockholders’ equity                        
Additional paid-in capital   $ 177,042,781     $ (21,901,000 )   $ 155,141,781  
Accumulated deficit   $ (164,231,163 )   $ 19,835,823     $ (144,395,340 )
Total stockholders’ equity   $ 12,826,068     $ (2,065,177 )   $ 10,760,891  
Total liabilities and stockholders’ equity   $ 13,801,101     $ -     $ 13,801,101  

 

The following tables present the effect of the Restatement on the Company’s unaudited interim condensed consolidated statements of operations for the periods indicated:

 

    As Previously     Restatement     As  
    For the Three Months Ended  
    March 31, 2022  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
                   
Change in fair value of derivative liabilities   $ -     $ 3,391,212     $ 3,391,212  
Total other (income) expense   $ (237,643 )   $ 3,391,212     $ 3,153,569  
Net loss   $ (4,816,150 )   $ (3,391,212 )   $ (8,207,362 )
                         
Earnings (loss) per share - basic and diluted   $ (1.37 )   $ (0.96 )   $ (2.33 )

 

    As Previously     Restatement     As     As Previously     Restatement     As  
    For the Three Months Ended     For the Six Months Ended  
    June 30, 2022     June 30, 2022  
    As Previously     Restatement     As     As Previously     Restatement     As  
    Stated     Adjustments     Restated     Stated     Adjustments     Restated  
    (unaudited)           (unaudited)     (unaudited)           (unaudited)  
                                     
Change in fair value of derivative liabilities   $ -     $ (7,775,393 )   $ (7,775,393 )   $ -     $ (4,384,181 )   $ (4,384,181 )
Total other (income) expense   $ 46,613     $ (7,775,393 )   $ (7,728,780 )   $ (191,030 )   $ (4,384,181 )   $ (4,575,211 )
Net (loss) income   $ (4,675,241 )   $ 7,775,393     $ 3,100,152     $ (9,491,391 )   $ 4,384,181     $ (5,107,210 )
                                                 
Earnings (loss) per share - basic:   $ (1.28 )   $ 2.14     $ 0.85     $ (2.65 )   $ 1.22     $ (1.43 )
Weighted average common shares oustanding - diluted     3,638,383       5,818,645       9,457,028       3,581,110       -       3,581,110  
Earnings (loss) per share - diluted   $ (1.28 )   $ 0.82     $ 0.33     $ (2.65 )   $ 1.22     $ (1.43 )

 

    As Previously     Restatement     As     As Previously     Restatement     As  
    For the Three Months Ended     For the Nine Months Ended  
    September 30, 2022     September 30, 2022  
    As Previously     Restatement     As     As Previously     Restatement     As  
    Stated     Adjustments     Restated     Stated     Adjustments     Restated  
    (unaudited)           (unaudited)     (unaudited)           (unaudited)  
                                     
Change in fair value of derivative liabilities   $ -     $ 790,723     $ 790,723     $ -     $ (3,593,458 )   $ (3,593,458 )
Total other expense (income)   $ 46,125     $ 790,723     $ 836,848     $ (144,905 )   $ (3,593,458 )   $ (3,738,363 )
Net (loss) income   $ (4,655,825 )   $ (790,723 )   $ (5,446,548 )   $ (14,147,216 )   $ 3,593,458     $ (10,553,758 )
                                                 
Earnings (loss) per share - basic and diluted   $ (1.28 )   $ (0.22 )   $ (1.50 )   $ (3.93 )   $ 1.00     $ (2.93 )

 

 

    As Previously     Restatement     As  
    For the Three Months Ended  
    March 31, 2023  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
                   
Change in fair value of derivative liabilities   $ -     $ 1,488,350     $ 1,488,350  
Total other income   $ (94,876 )   $ 1,488,350     $ 1,393,474  
Net (loss) income   $ (5,684,222 )   $ (1,488,350 )   $ (7,172,572 )
                         
Earnings (loss) per share - basic and diluted   $ (1.53 )   $ (0.40 )   $ (1.93 )

 

    As Previously     Restatement     As     As Previously     Restatement     As  
    For the Three Months Ended     For the Six Months Ended  
    June 30, 2023     June 30, 2023  
    As Previously     Restatement     As     As Previously     Restatement     As  
    Stated     Adjustments     Restated     Stated     Adjustments     Restated  
    (unaudited)           (unaudited)     (unaudited)           (unaudited)  
Change in fair value of derivative liabilities   $ -     $ 2,728,847     $ 2,728,847     $ -     $ 4,217,197     $ 4,217,197  
Total other income   $ (135,999 )   $ 2,728,847     $ 2,592,848     $ (230,875 )   $ 4,217,197     $ 3,986,322  
Net (loss) income   $ (2,980,552 )   $ (2,728,847 )   $ (5,709,399 )   $ (8,664,774 )   $ (4,217,197 )   $ (12,881,971 )
                                                 
Earnings (loss) per share - basic and diluted   $ (0.77 )   $ (0.70 )   $ (1.47 )   $ (2.28 )   $ (1.11 )   $ (3.39 )

 

    As Previously     Restatement     As     As Previously     Restatement     As  
    For the Three Months Ended     For the Nine Months Ended  
    September 30, 2023     September 30, 2023  
    As Previously     Restatement     As     As Previously     Restatement     As  
    Stated     Adjustments     Restated     Stated     Adjustments     Restated  
    (unaudited)           (unaudited)     (unaudited)           (unaudited)  
                                     
Change in fair value of derivative liabilities   $ -     $ (7,693,753 )   $ (7,693,753 )   $ -     $ (3,476,556 )   $ (3,476,556 )
Total other income   $ (178,951 )   $ (7,693,753 )   $ (7,872,704 )   $ (409,826 )   $ (3,476,556 )   $ (3,886,382 )
Net (loss) income   $ (2,925,492 )   $ 7,693,753     $ 4,768,261     $ (11,590,266 )   $ 3,476,556     $ (8,113,710 )
                                                 
Earnings (loss) per share - basic:   $ (0.64 )   $ 1.68     $ 1.04     $ (2.85 )   $ 0.85     $ (2.00 )
Weighted average common shares oustanding - diluted     4,570,843       7,753,923       12,324,766       4,061,975       -       4,061,975  
Earnings (loss) per share - diluted   $ (0.64 )   $ 1.03     $ 0.39     $ (2.85 )   $ 0.85     $ (2.00 )

 

The following tables present the effect of the Restatement on the Company’s unaudited interim condensed consolidated statements of changes in stockholders’ equity for the periods indicated:

 

    Additional              
    Paid-In     Accumulated        
    Capital     Deficit     Total  
                   
Balance - March 31, 2022 (as previously reported)   $ 159,103,184     $ (138,962,278 )   $ 20,156,702  
                         
Adjustment due to cumulative error correction     (21,901,000 )     11,086,794       (10,814,206 )
                         
Change in fair value of derivative liability     -       (3,391,212 )     (3,391,212 )
                         
Balance - March 31, 2022 (as restated)   $ 137,202,184     $ (131,266,696 )   $ 5,951,284  
                         
Balance - June 30, 2022 (as previously reported)   $ 162,207,334     $ (143,637,519 )   $ 18,585,612  
                         
Adjustment due to cumulative error correction     (21,901,000 )     11,086,794       (10,814,206 )
                         
Change in fair value of derivative liability     -       4,384,181       4,384,181  
                         
Balance - June 30, 2022 (as restated)   $ 140,306,334     $ (128,166,544 )   $ 12,155,587  
                         
Balance - September 30, 2022 (as previously reported)   $ 165,281,862     $ (148,293,344 )   $ 17,004,315  
                         
Adjustment due to cumulative error correction     (21,901,000 )     11,086,794       (10,814,206 )
                         
Change in fair value of derivative liability     -       3,593,458       3,593,458  
                         
Balance - September 30, 2022 (as restated)   $ 143,380,862     $ (133,613,092 )   $ 9,783,567  

 

 

 

The following tables present the effect of the Restatement on the Company’s unaudited interim condensed consolidated statements of cash flows for the periods indicated:

 

                (unaudited)  
    March 31, 2022  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
                (unaudited)  
Cash Flows From Operating Activities:                        
Net (loss) income   $ (4,816,150 )   $ (3,391,212 )   $ (8,207,362 )
Adjustments to reconcile net loss to net cash provided by operating activities:                        
Change in fair value of derivative liability   $ -     $ 3,391,212     $ 3,391,212  
Net Cash Used In Operating Activities   $ (1,594,634 )   $ -     $ (1,594,634 )

 

    (unaudited)           (unaudited)  
    June 30, 2022  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
Cash Flows From Operating Activities:                        
Net (loss) income   $ (9,491,391 )   $ 4,384,181     $ (5,107,210 )
Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
Change in fair value of derivative liability   $ -     $ (4,384,181 )   $ (4,384,181 )
Net Cash Used In Operating Activities   $ (2,845,756 )   $ -     $ (2,845,756 )

 

 

    (unaudited)           (unaudited)  
    September 30, 2022  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
Cash Flows From Operating Activities:                        
Net (loss) income   $ (14,147,216 )   $ 3,593,458     $ (10,553,758 )
Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
Change in fair value of derivative liability   $ -     $ (3,593,458 )   $ (3,593,458 )
Net Cash Used In Operating Activities   $ (4,297,412 )   $ -     $ (4,297,412 )

 

    (unaudited)           (unaudited)  
    March 31, 2023  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
Cash Flows From Operating Activities:                        
Net (loss) income   $ (5,684,222 )   $ (1,488,350 )   $ (7,172,572 )
Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
Change in fair value of derivative liability   $ -     $ 1,488,350     $ 1,488,350  
Net Cash Used In Operating Activities   $ (2,348,740 )   $ -     $ (2,348,740 )

  

    (unaudited)           (unaudited)  
    June 30, 2023  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
Cash Flows From Operating Activities:                        
Net (loss) income   $ (8,664,774 )   $ (4,217,197 )   $ (12,881,971 )
Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
Change in fair value of derivative liability   $ -     $ 4,217,197     $ 4,217,197  
Net Cash Used In Operating Activities   $ (3,479,065 )   $ -     $ (3,479,065 )

  

    (unaudited)           (unaudited)  
    September 30, 2023  
    As Previously     Restatement     As  
    Stated     Adjustments     Restated  
    (unaudited)           (unaudited)  
Cash Flows From Operating Activities:                        
Net (loss) income   $ (11,590,266 )   $ 3,476,556     $ (8,113,710 )
Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
Change in fair value of derivative liability   $ -     $ (3,476,556 )   $ (3,476,556 )
Net Cash Used In Operating Activities   $ (4,656,785 )   $ -     $ (4,656,785 )