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CORRECTION OF ERRORS IN 2022 INTERIM FINANCIAL INFORMATION

5 Months Ended

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