| Restatement of Previously Issued Financial Statements |
Restatement of Previously Issued Financial Statements In connection with the Company's audit of the condensed consolidated financial statements, the Company's management identified the following misstatements in the Company's previously reported interim financial statements included in the Company's original report:
•Correction of an error in accounting for a debt transaction that occurred in Q1 2024. The transaction was incorrectly treated like a modification rather than an extinguishment.
Impact of the Restatement
The restatement has resulted in the following adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Previously Reported (Unaudited) |
|
Adjustments |
|
As Restated |
|
|
|
|
|
| Condensed Consolidated Balance Sheets: |
|
|
|
|
|
| As of September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
| Accrued liabilities |
$ |
7,269,833 |
|
|
$ |
(3,197,205) |
|
|
$ |
4,072,628 |
|
|
|
|
|
|
| Total Current Liabilities |
$ |
13,135,564 |
|
|
$ |
(3,197,205) |
|
|
$ |
9,938,359 |
|
|
|
|
|
|
| Notes payable - long-term, fair value option (related party) |
$ |
- |
|
|
$ |
53,222,499 |
|
|
$ |
53,222,499 |
|
|
|
|
|
|
| Notes payable - long-term, net of discount (related party) |
$ |
46,148,307 |
|
|
$ |
(32,765,943) |
|
|
$ |
13,382,364 |
|
|
|
|
|
|
| Notes payable - long-term, net of discount |
$ |
- |
|
|
$ |
12,783,774 |
|
|
$ |
12,783,774 |
|
|
|
|
|
|
| Total Liabilities |
$ |
61,493,781 |
|
|
$ |
30,043,125 |
|
|
$ |
91,536,906 |
|
|
|
|
|
|
| Additional paid-in capital (As adjusted, see Note 12) |
$ |
98,628,931 |
|
|
$ |
4,006,345 |
|
|
$ |
102,635,276 |
|
|
|
|
|
|
| Accumulated deficit |
$ |
(135,108,367) |
|
|
$ |
(34,049,470) |
|
|
$ |
(169,157,837) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Stockholders’ Deficit |
$ |
(36,505,856) |
|
|
$ |
(30,043,125) |
|
|
$ |
(66,548,981) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Statements of Operations: |
|
|
|
|
|
| Three Months ended September 30, 2024 |
|
|
|
|
|
| Other (income) expense, net |
$ |
2,278,909 |
|
|
$ |
(2,135,336) |
|
|
$ |
143,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in fair value of new convertible debentures |
$ |
- |
|
|
$ |
(24,199,071) |
|
|
$ |
(24,199,071) |
|
|
|
|
|
|
| Interest expense, net |
$ |
4,111,844 |
|
|
$ |
(2,954,376) |
|
|
$ |
1,157,468 |
|
|
|
|
|
|
| Total other (income) expense, net |
$ |
(5,787,081) |
|
|
$ |
(17,714,621) |
|
|
$ |
(23,501,702) |
|
|
|
|
|
|
| Net income (loss) |
$ |
(11,356,956) |
|
|
$ |
29,288,783 |
|
|
$ |
17,931,827 |
|
|
|
|
|
|
| Basic earnings (loss) per share |
$ |
(4.24) |
|
|
$ |
10.94 |
|
|
$ |
6.70 |
|
|
|
|
|
|
| Diluted earnings (loss) per share |
$ |
(4.24) |
|
|
$ |
3.88 |
|
|
$ |
(0.36) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted weighted average shares outstanding |
2,676,003 |
|
|
12,613,160 |
|
|
15,289,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months ended September 30, 2024 |
|
|
|
|
|
| Other (income) expense, net |
$ |
2,300,710 |
|
|
$ |
(2,135,336) |
|
|
$ |
165,374 |
|
|
|
|
|
|
| Loss on extinguishment of debt |
$ |
- |
|
|
$ |
78,734,949 |
|
|
$ |
78,734,949 |
|
|
|
|
|
|
| Change in fair value of new convertible debentures |
$ |
- |
|
|
$ |
(36,113,800) |
|
|
$ |
(36,113,800) |
|
|
|
|
|
|
| Interest expense, net |
$ |
10,234,639 |
|
|
$ |
(6,436,343) |
|
|
$ |
3,798,296 |
|
|
|
|
|
|
| Total other (income) expense, net |
$ |
(815,101) |
|
|
$ |
34,049,470 |
|
|
$ |
33,234,369 |
|
|
|
|
|
|
| Net (loss) |
$ |
(16,316,664) |
|
|
$ |
(34,049,470) |
|
|
$ |
(50,366,134) |
|
|
|
|
|
|
| Basic earnings (loss) per share |
$ |
(8.54) |
|
|
$ |
(17.82) |
|
|
$ |
(26.36) |
|
|
|
|
|
|
| Diluted earnings (loss) per share |
$ |
(8.54) |
|
|
$ |
(17.82) |
|
|
$ |
(26.36) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Statements of Comprehensive Income: |
|
|
|
|
|
| Three Months ended September 30, 2024 |
|
|
|
|
|
| Net income (loss) |
$ |
(11,356,956) |
|
|
$ |
29,288,783 |
|
|
$ |
17,931,827 |
|
|
|
|
|
|
| Comprehensive income (loss) |
$ |
(11,383,939) |
|
|
$ |
29,288,783 |
|
|
$ |
17,904,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months ended September 30, 2024 |
|
|
|
|
|
| Net income (loss) |
$ |
(16,316,664) |
|
|
$ |
(34,049,470) |
|
|
$ |
(50,366,134) |
|
|
|
|
|
|
| Comprehensive loss |
$ |
(16,343,647) |
|
|
$ |
(34,049,470) |
|
|
$ |
(50,393,117) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Statements of Changes of Stockholders' Deficit: |
|
|
|
|
|
| Three Months ended September 30, 2024 |
|
|
|
|
|
| Additional Paid-In Capital |
$ |
98,628,931 |
|
|
$ |
4,006,345 |
|
|
$ |
102,635,276 |
|
|
|
|
|
|
| Accumulated deficit |
$ |
(135,108,367) |
|
|
$ |
(34,049,470) |
|
|
$ |
(169,157,837) |
|
|
|
|
|
|
| Net income (loss) |
$ |
(11,356,956) |
|
|
$ |
29,288,783 |
|
|
$ |
17,931,827 |
|
|
|
|
|
|
| Balance at September 30, 2024 |
$ |
(36,505,856) |
|
|
$ |
(30,043,125) |
|
|
$ |
(66,548,981) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months ended September 30, 2024 |
|
|
|
|
|
| Additional Paid-In Capital |
$ |
98,628,931 |
|
|
$ |
4,006,345 |
|
|
$ |
102,635,276 |
|
|
|
|
|
|
| Accumulated deficit |
$ |
(135,108,367) |
|
|
$ |
(34,049,470) |
|
|
$ |
(169,157,837) |
|
|
|
|
|
|
| Net income (loss) |
$ |
(16,316,664) |
|
|
$ |
(34,049,470) |
|
|
$ |
(50,366,134) |
|
|
|
|
|
|
| Balance at September 30, 2024 |
$ |
(36,505,856) |
|
|
$ |
(30,043,125) |
|
|
$ |
(66,548,981) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Statements of Cash Flows: |
|
|
|
|
|
| Nine Months ended September 30, 2024 |
|
|
|
|
|
| Net income (loss) |
$ |
(16,316,664) |
|
|
$ |
(34,049,470) |
|
|
$ |
(50,366,134) |
|
|
|
|
|
|
| Amortization of debt discount |
$ |
5,694,378 |
|
|
$ |
(5,292,768) |
|
|
$ |
401,610 |
|
|
|
|
|
|
| Loss on extinguishment of debt |
$ |
- |
|
|
$ |
78,734,949 |
|
|
$ |
78,734,949 |
|
|
|
|
|
|
| Change in fair value of new convertible debentures |
$ |
- |
|
|
$ |
(36,113,800) |
|
|
$ |
(36,113,800) |
|
|
|
|
|
|
| Changes in accounts payable and accrued liabilities |
$ |
(1,072,317) |
|
|
$ |
(3,184,547) |
|
|
$ |
(4,256,864) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
|
|
| Conversion of convertible secured debentures to common stock |
$ |
5,758,926 |
|
|
$ |
4,006,346 |
|
|
$ |
9,765,272 |
|
|
|
|
|
|
|