Revision to Previously Reported Unaudited Financial Statements

12 Months Ended

Dec. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Revision to Previously Reported Unaudited Financial Statements

As previously disclosed in Company’s Quarterly Report on Forms 10-Q for each of the quarterly and year to date periods ended September 30, 2024, the Company concluded to revise its financial statements to treat the Series B Convertible Preferred Stock as a second class of common stock for purposes of presenting earnings per share. In accordance with the guidance in ASC 260, equity classified shares of stock need to be assessed to determine if they are preferred stock or are in substance common shares and therefore represent a second class of common shares. The rights of the Series B Convertible Preferred Stock were substantially equivalent to common shares and they did not have any material preferential rights compared to common shares. As such, the Company concluded that it should have considered the Series B Convertible Preferred Stock to be a second class of common stock for purposes of presenting earnings per share under the two-class method. Additionally, for the three and six months ended June 30, 2024, the Company previously reduced the net loss attributable to common shareholders by a deemed dividend of $4,988 thousand related to the reacquisition by the Company of the Series B Convertible Preferred Stock. This adjustment should not have been made as the guidance for adjusting the numerator to reflect the implicit gain or loss upon the re-acquisition of shares is only applicable to shares which are substantively considered preferred stock for earnings per share purposes. The impact of these errors is immaterial to the previously filed financial statements. Within our previously filed Quarterly Report on Form 10-Q for the period ended September 30, 2024, the Company revised earnings per share to separately present loss per share for common stock and for the Series B Convertible Preferred Stock and also removed the deemed dividend which previously reduced the net loss attributable to common shareholders for the three and six months ended June 30, 2024. The Company has not revised and will not revise any periods prior to January 1, 2024 because the impact to those periods is immaterial. The 2024 revisions will be reflected in the comparative 2024 periods in future filings where those periods are included with appropriate disclosures.

The impacts of the revision to the previously reported, unaudited condensed consolidated financial statements are summarized within the tables below.


Impact of the revision for the period ended March 31, 2024 (in thousands, except share and per share amounts) (Unaudited)

	Three months ended March 31, 2024 (as previously reported)		Adjustment	Three months ended March 31, 2024 (as adjusted)
Net loss	$	(11,924)	—	(11,924)
Net loss attributable to common shareholders— basic and diluted	(11,924)		25	(11,899)
Weighted shares used in calculating net loss per common share — basic and diluted	257,232,636		—	257,232,636
Net loss per share attributable to common shareholders — basic and diluted	(0.05)			(0.05)

Net loss attributable to Series B Convertible Preferred shareholders — basic and diluted	—		(25)	(25)
Weighted shares used in calculating net loss per Series B Convertible Preferred Stock — basic and diluted	—		54,745	54,745
Net loss per share attributable to Series B Convertible Preferred shareholders — basic and diluted	—			(0.46)


Impact of the revision for the periods ended June 30, 2024 (in thousands, except share and per share amounts) (Unaudited)

	Three months ended June 30, 2024 (as previously reported)		Adjustment	Three months ended June 30, 2024 (as adjusted)
Net loss	$	(15,280)	—	(15,280)
Reacquired Series B Convertible Preferred Stock	4,988		(4,988)	—
Net loss attributable to common shareholders— basic and diluted	(10,292)		(4,967)	(15,259)
Weighted shares used in calculating net loss per common share — basic and diluted	257,353,857		—	257,353,857
Net loss per share attributable to common shareholders — basic and diluted	(0.04)			(0.06)

Net loss attributable to Series B Convertible Preferred shareholders — basic and diluted	—		(21)	(21)
Weighted shares used in calculating net loss per Series B Convertible Preferred Stock — basic and diluted	—		54,745	54,745
Net loss per share attributable to Series B Convertible Preferred shareholders — basic and diluted	—			(0.38)


	Six months ended June 30, 2024 (as previously reported)		Adjustment	Six months ended June 30, 2024 (as adjusted)
Net loss	$	(27,204)	—	(27,204)
Reacquired Series B Convertible Preferred Stock	4,988		(4,988)	—
Net loss attributable to common shareholders— basic and diluted	(22,216)		(4,941)	(27,157)
Weighted shares used in calculating net loss per common share — basic and diluted	257,293,247		—	257,293,247
Net loss per share attributable to common shareholders — basic and diluted	(0.09)			(0.11)

Net loss attributable to Series B Convertible Preferred shareholders — basic and diluted	—		(47)	(47)
Weighted shares used in calculating net loss per Series B Convertible Preferred Stock — basic and diluted	—		54,745	54,745
Net loss per share attributable to Series B Convertible Preferred shareholders — basic and diluted	—			(0.86)