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CORRECTION OF ERRORS IN 2022 INTERIM FINANCIAL INFORMATION | 5 Months Ended
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Jun. 30, 2023
Accounting Changes and Error Corrections [Abstract] |
CORRECTION OF ERRORS IN 2022 INTERIM FINANCIAL INFORMATION | NOTE 6. CORRECTION OF ERRORS IN 2022 INTERIM FINANCIAL INFORMATION Subsequent to the initial issuance of the Company's 2022 financial statements on February 27, 2023, management discovered that the previously issued interim financial statements for the three and six months ended June 30, 2022 and the nine months ended September 30, 2022 did not properly record the following items in accordance with US GAAP:
| (a) | the statement of cash flows inaccurately presented costs associated with the Initial Public Offering in the operating section, instead of the financing section and
| (b) | a charge of $152,653 for the exercise of warrants at the time of the Initial Public Offering was incorrectly recorded as expense.
Additionally, management introduced various reclassifications within the statement of cash flows to present in accordance with US GAAP. The following tables summarize the impacts of these error corrections on the Company's interim financial statements for each of the interim periods presented below: SCHEDULE OF ERROR CORRECTIONS
Condensed Balance Sheets |  | For the six months ended June 30, 2022 (unaudited) |
|  | As previously reported |  |  | Adjustments |  |  | As Restated |
Total assets |  | $ | 5,620,989 |  |  | $ | – |  |  | $ | 5,620,989 |
Total current liabilities |  |  | 1,381,419 |  |  |  | – |  |  |  | 1,381,419 |
Additional paid-in capital |  |  | 41,184,654 |  |  |  | (152,653 | ) |  |  | 41,032,001 |
Accumulated deficit |  |  | (36,945,162 | ) |  |  | 152,653 |  |  |  | (36,792,509 | )
Other |  |  | 78 |  |  |  | – |  |  |  | 78 |
Total stockholders’ equity |  |  | 4,239,570 |  |  |  | – |  |  |  | 4,239,570 |
Total liabilities and stockholders’ equity |  | $ | 5,620,989 |  |  | $ | – |  |  | $ | 5,620,989 |
Condensed Statements of Operations |  | For the six months ended June 30, 2022 (unaudited) |
|  | As previously reported |  |  | Adjustments |  |  | As Restated |
Gross profit (loss) |  | $ | (11,279 | ) |  | $ | – |  |  | $ | (11,279 | )
Sales and marketing |  |  | 194,067 |  |  |  | – |  |  |  | 194,067 |
Research and development |  |  | 558,029 |  |  |  | – |  |  |  | 558,029 |
General and administrative |  |  | 2,375,126 |  |  |  | (152,653 | ) |  |  | 2,222,473 |
Total operating expenses |  |  | 3,127,222 |  |  |  | (152,653 | ) |  |  | 2,974,569 |
Total other income (expense) |  |  | (1,505,102 | ) |  |  | – |  |  |  | (1,505,102 | )
Net income (loss) |  | $ | (4,643,603 | ) |  | $ | 152,653 |  |  | $ | (4,490,950 | )
Net (loss) allocable to common stockholders |  | $ | (5,059,126 | ) |  | $ | 152,653 |  |  | $ | (4,906,473 | )
(Loss) per share |  | $ | (1.16 | ) |  | $ | 0.04 |  |  | $ | (1.12 | )
Weighted Average common shares outstanding |  |  | 4,363,600 |  |  |  | 10,068 |  |  |  | 4,373,668 |
Condensed Statements of Operations |  | For the three months ended June 30, 2022 (unaudited) |
|  | As previously reported |  |  | Adjustments |  |  | As Restated |
Gross profit (loss) |  | $ | (3,573 | ) |  | $ | – |  |  | $ | (3,573 | )
Sales and marketing |  |  | 124,759 |  |  |  | – |  |  |  | 124,759 |
Research and development |  |  | 353,226 |  |  |  | – |  |  |  | 353,226 |
General and administrative |  |  | 1,883,843 |  |  |  | (152,653 | ) |  |  | 1,731,190 |
Total operating expenses |  |  | 2,361,828 |  |  |  | (152,653 | ) |  |  | 2,209,175 |
Total other income (expense) |  |  | (1,342,114 | ) |  |  | – |  |  |  | (1,342,114 | )
Net income (loss) |  | $ | (3,707,515 | ) |  | $ | 152,653 |  |  | $ | (3,554,862 | )
Net (loss) allocable to common stockholders |  | $ | (3,835,723 | ) |  | $ | 152,653 |  |  | $ | (3,683,070 | )
(Loss) per share |  | $ | (0.49 | ) |  | $ | 0.02 |  |  | $ | (0.47 | )
Weighted Average common shares outstanding |  |  | 7,821,515 |  |  |  | – |  |  |  | 7,821,515 |
Condensed Statements of Cash Flows |  | For the six months ended June 30, 2022 (unaudited) |
|  | As previously reported |  |  | Adjustments |  |  | As Restated |
Net income (loss) |  | $ | (4,643,603 | ) |  | $ | 152,653 |  |  | $ | (4,490,950 | )
Adjustments to reconcile net income (loss) to net cash used in operation activities |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 94,705 |  |  |  | (25,000 | ) |  |  | 69,705 |
Non-cash charge settled in equity |  |  | – |  |  |  | 1,299,507 |  |  |  | 1,299,507 |
Prepaids and other current assets |  |  | (308,052 | ) |  |  | (140,382 | ) |  |  | (448,434 | )
Accrued and other liabilities |  |  | 728,399 |  |  |  | (921,718 | ) |  |  | (193,320 | )
Other |  |  | 1,047,540 |  |  |  | – |  |  |  | 1,047,540 |
Net cash (used in) operations |  |  | (3,081,011 | ) |  |  | 365,060 |  |  |  | (2,715,951 | )
Net cash (used in) investing activities |  |  | (120,957 | ) |  |  | – |  |  |  | (120,957 | )
IPO Issuance costs |  |  | – |  |  |  | (365,060 | ) |  |  | (365,060 | )
Others |  |  | 6,552,318 |  |  |  | – |  |  |  | 6,552,318 |
Net cash provided by financing activities |  |  | 6,552,318 |  |  |  | (365,060 | ) |  |  | 6,187,258 |
Net cash increase (decrease) for period |  | $ | 3,350,350 |  |  | $ | – |  |  | $ | 3,350,350 |
Condensed Statements of Changes in Stockholders’ Equity |  | June 30, 2022 (unaudited) |
|  | As previously reported |  |  | Adjustments |  |  | As Restated |
Common Stock |  | $ | 78 |  |  | $ | – |  |  | $ | 78 |
Additional paid-in capital |  |  | 41,184,654 |  |  |  | (152,653 | ) |  |  | 41,032,001 |
Accumulated deficit |  |  | (36,945,162 | ) |  |  | 152,653 |  |  |  | (36,792,509 | )
Total stockholders’ equity |  | $ | 4,239,570 |  |  | $ | – |  |  | $ | 4,239,570 |

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