RESTATEMENT OF PREVIOUSLY FILED FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables show the unaudited quarterly condensed consolidated financial information for the three months ended March 31, 2024. The accompanying applicable notes have been updated to reflect the effects of the restatement.

The amounts in the "As Reported" columns are amounts derived from the Company's previously filed financial statements in its Quarterly Report on Form 10-Q for the three month period ended March 31, 2024, originally filed with the Securities and Exchange Commission on April 30, 2024 (the “Original Form 10-Q”). The amounts in the "Restatement Adjustments" columns present the impact of the adjustments arising from the re-audit of the Company’s 2023 financial statements and re-review of the Company’s unaudited quarterly condensed consolidated financial information for the three months ended March 31, 2024. The amounts in the "As Restated" columns are the updated amounts including the impact from the Restatement Adjustments.

	As of March 31, 2024
	As		Restatement		As
ASSETS	Reported		Adjustments		Restated
Current assets:
Cash	$	692,680	$	(44,083)	$	648,597
Accounts receivable, net	18,754,870		(429,692)		18,325,178
Contract receivables	10,174,845		(2,094,696)		8,080,149
Prepaid expenses and other current assets	3,606,595		(1,051,536)		2,555,059
Total current assets	33,228,990		(3,620,007)		29,608,983
Non-current assets:
Property and equipment, net	1,255,557		—		1,255,557
Operating lease right of use assets, net	1,918,532		—		1,918,532
Goodwill	15,572,050		(5,883,075)		9,688,975
Intangible assets, net	4,155,175		(898,554)		3,256,621
Total non-current assets	22,901,314		(6,781,629)		16,119,685
Total assets	$	56,130,304	$	(10,401,636)	$	45,728,668
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	24,987,061		(1,144,267)		23,842,794
Contract liabilities	3,093,242		482,287		3,575,529
Accrued expenses	3,632,874		1,437,761		5,070,635
Customer deposits	555,676		—		555,676
Contingent consideration	49,830		—		49,830
Notes payable	2,490,486		—		2,490,486
Operating lease liabilities	673,920		—		673,920
Total current liabilities	35,483,089		775,781		36,258,870
Non-current liabilities:
Operating lease liabilities, net of current portion	1,292,500		—		1,292,500
Deferred tax liability	769,036		(773,106)		(4,070)
Total non-current liabilities	2,061,536		(773,106)		1,288,430
Total liabilities	$	37,544,625	$	2,675	$	37,547,300
Commitments and contingencies (note 11)
Shareholders’ equity:
Preferred stock, $0.10 par value; 3,000,000 shares authorized; 0 and 0 shares issued and outstanding	—		—		—
Common stock, $0.001 par value; 30,000,000 shares authorized; 13,768,594 issued and 12,318,761 outstanding as of March 31, 2024, and 13,522,669 issued and 12,072,836 outstanding as of December 31, 2023	13,769		—		13,769
Additional paid-in capital	89,557,913		(511,827)		89,046,086
Treasury shares, cost basis: 1,449,833 shares as of March 31, 2024 and as of December 31, 2023	(12,045,542)		—		(12,045,542)
Accumulated deficit	(58,940,461)		(9,892,484)		(68,832,945)
Total shareholders’ equity	18,585,679		(10,404,311)		8,181,368
Total liabilities and shareholders’ equity	$	56,130,304	$	(10,401,636)	$	45,728,668

	Three Months Ended March 31, 2024
	As			Restatement			As
	Reported			Adjustments			Restated
Revenues:
Equipment systems	$	2,508,287		$	—		$	2,508,287
Services	3,133,793			—			3,133,793
Construction design-build	9,825,457			(141,643)			9,683,814
Other	75,141			—			75,141
Total revenues and other income	15,542,678			(141,643)			15,401,035
Cost of revenues:
Equipment systems	2,172,383			67			2,172,450
Services	1,508,449			—			1,508,449
Construction design-build	8,692,432			(17,152)			8,675,280
Other	53,399			—			53,399
Total cost of revenues	12,426,663			(17,085)			12,409,578
Gross profit	3,116,015			(124,558)			2,991,457
	20		%	88		%	108		%
Operating expenses:
General and administrative	4,745,192			332,672			5,077,864
Depreciation and Amortization	434,595			(44,345)			390,250
Total operating expenses	5,179,787			288,327			5,468,114
Loss from operations	(2,063,772)			(412,885)			(2,476,657)
Non-operating income (expenses):
Interest expense	(99,306)			—			(99,306)
Interest income	81			—			81
Contingent consideration	—			—			—
Write-down of investment	—			—			—
Loss on settlement	—			—			—
Other income (expense)	(26,889)			(6,175)			(33,064)
Total non-operating income (expenses)	(126,114)			(6,175)			(132,289)
Loss before income taxes	(2,189,886)			(419,060)			(2,608,946)
Income tax benefit	48,383			—			48,383
Net loss	$	(2,141,503)		$	(419,060)		$	(2,560,563)
Comprehensive loss	$	(2,141,503)		$	(419,060)		$	(2,560,563)
Loss per share – basic and diluted	$	(0.18)		$	(0.03)		$	(0.21)
Weighted average shares – basic and diluted	12,075,619			12,075,619			12,075,619

	For the Three Months Ended March 31, 2024
	As		Restatement		As
	Reported		Adjustments		Restated
Cash flows from operating activities:
Net loss	$	(2,141,503)	$	(419,060)	$	(2,560,563)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	434,595		(44,345)		390,250
Amortization of right-of-use assets	—		134,054		134,054
Stock-based compensation expense	656,576		—		656,576
Impairment of investment	—		—		—
Change in fair value of contingent consideration	—		—		—
PPP loan forgiveness	—		—		—
Interest income on investments	137,973		(137,973)		—
Changes in operating assets and liabilities (net of acquired amounts):
Accounts receivable and contract receivables	8,083,975		(4,403,834)		3,680,141
Prepaid expenses and other assets and property and equipment	(746,995)		249,246		(497,749)
Accounts payable, contract liabilities, customer deposits, and accrued expenses	(5,888,371)		4,891,775		(996,596)
Change in contingent consideration from indemnification	—		—		—
Operating lease liability	(158,644)		29,463		(129,181)
Deferred tax liability	(48,383)		—		(48,383)
Customer deposits	—		—		—
Net cash used in operating activities	329,223		299,326		628,549
Cash flows from investing activities:
Sale of investment	—		—		—
Refunds/(Purchases) of property and equipment	8,487		(1)		8,486
Business combinations, net of cash acquired	—		—		—
Net cash provided by (used in) investing activities	8,487		(1)		8,486
Cash flows from financing activities:
Proceeds from issuance of common stock	—		—		—
Repurchase of common stock	—		—		—
Additions to notes payable	3,024,223		(1,024,223)		2,000,000
Repayment of notes payable	(3,738,577)		718,477		(3,020,100)
Repayment of finance lease liability	(43,180)		—		(43,180)
Payments to settle contingent consideration	—		—		—
Net cash used in financing activities	(757,534)		(305,746)		(1,063,280)
Net change in cash	(419,824)		(6,421)		(426,245)
Cash at beginning of period	1,112,504		(37,662)		1,074,842
Cash at end of period	$	692,680	$	(44,083)	$	648,597