| 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 condensed 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 an amendment rather than an extinguishment.
Impact of the Restatement
The following tables reflect the impact of the restatement to the specific line items presented in the Company’s
previously reported unaudited condensed consolidated financial statements as of and for the three months ended
March 31, 2024.
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As previously Reported (Unaudited) |
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Adjustments |
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As Restated |
| Condensed Consolidated Balance Sheets: |
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| As of March 31, 2024 |
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| Accrued liabilities |
$ |
6,500,357 |
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$ |
(352,181) |
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$ |
6,148,176 |
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| Total Current Liabilities |
$ |
14,028,307 |
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$ |
(352,181) |
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$ |
13,676,126 |
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| Notes payable - long-term, fair value option (related party) |
$ |
- |
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$ |
94,691,365 |
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$ |
94,691,365 |
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| Notes payable - long-term, net of discount (related party) |
$ |
44,949,988 |
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$ |
(33,694,528) |
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$ |
11,255,460 |
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| Notes payable - long-term, net of discount |
$ |
- |
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$ |
12,607,892 |
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$ |
12,607,892 |
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| Total Liabilities |
$ |
68,934,417 |
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$ |
73,252,548 |
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$ |
142,186,965 |
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| Accumulated deficit |
$ |
(118,378,091) |
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$ |
(73,252,548) |
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$ |
(191,630,639) |
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| Total Stockholders’ Deficit |
$ |
(39,502,929) |
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$ |
(73,252,548) |
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$ |
(112,755,477) |
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| Condensed Consolidated Statements of Operations: |
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| Three months ended March 31, 2024 |
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| Loss on extinguishment of debt |
$ |
- |
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$ |
78,734,949 |
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$ |
78,734,949 |
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| Change in fair value of new convertible debentures |
$ |
- |
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$ |
(4,504,426) |
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$ |
(4,504,426) |
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| Interest expense, net |
$ |
2,453,372 |
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$ |
(977,975) |
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$ |
1,475,397 |
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| Total other (income) expense, net |
$ |
(5,962,942) |
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$ |
73,252,548 |
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$ |
67,289,606 |
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| Net income (loss) |
$ |
413,612 |
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$ |
(73,252,548) |
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$ |
(72,838,936) |
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| Basic earnings (loss) per share |
$ |
0.01 |
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$ |
(1.64) |
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$ |
(1.63) |
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| Diluted loss per share |
$ |
(0.11) |
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$ |
(1.52) |
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$ |
(1.63) |
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| Basic weighted average shares outstanding |
44,635,720 |
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- |
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44,635,720 |
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| Diluted weighted average shares outstanding |
66,742,808 |
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(22,107,088) |
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44,635,720 |
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| Condensed Consolidated Statements of Changes of Stockholders' Deficit: |
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| Three months ended March 31, 2024 |
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| Net income (loss) |
$ |
413,612 |
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$ |
(73,252,548) |
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$ |
(72,838,936) |
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| Balance at March 31, 2024 |
$ |
(39,502,929) |
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$ |
(73,252,548) |
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$ |
(112,755,477) |
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| Condensed Consolidated Statements of Cash Flows: |
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| Three months ended March 31, 2024 |
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| Net income (loss) |
$ |
413,612 |
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$ |
(73,252,548) |
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$ |
(72,838,936) |
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| Amortization of debt discount |
$ |
1,159,596 |
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$ |
(778,004) |
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$ |
381,592 |
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| Loss on extinguishment of debt |
$ |
- |
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$ |
78,734,949 |
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$ |
78,734,949 |
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| Change in fair value of new convertible debentures |
$ |
- |
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$ |
(4,504,426) |
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$ |
(4,504,426) |
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| Changes in accounts payable and accrued liabilities |
$ |
(22,133) |
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$ |
(199,971) |
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$ |
(222,104) |
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The accompanying applicable Notes have been restated to correct for these errors.
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