INCREASED IMPAIRMENT CHARGE OF LONG-LIVED ASSETS

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

INCREASED IMPAIRMENT CHARGE OF LONG-LIVED ASSETS

INCREASED IMPAIRMENT CHARGE OF LONG-LIVED ASSETS

As discussed in the Explanatory Note to this Amendment, the Company has restated its unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2024, to reflect the impact of the Restatement of its financial results for the quarter ended June 30, 2024.

The Restatement relates to an understatement of an impairment charge associated with the Company’s Clarksville Property. During the year-end closing process, the Company identified a discrepancy in its Q2 2024 impairment assessment related to the Clarksville Property. A third-party valuation has been conducted at the time for the asset group of Clarksville Property including building and auxiliary machinery such as clean rooms and other assets. However, in calculating the carrying value of the asset group, the Company inadvertently excluded the clean rooms from the calculation. Since the carrying value of the asset group did not reflected the full asset base, the excess amount of carrying value over fair value was understated, leading to an understatement of the impairment charge recorded in the three-month period ended June 30, 2024.

The Company determined that an additional impairment charge of $23,115 should have been recorded in the three-month period ended June 30, 2024, increasing the total impairment charge of Q2 2024 from $64,912 to $88,027. This adjustment aligns the carrying value of the Clarksville Property with the third-party appraisal and ensures consistency in the impairment assessment.

This adjustment also impacted the year-to-date results presented in the Q3 2024 financial statements, requiring a corresponding amendment to reflect the corrected figures. As a result, the impairment charge for the nine-month period ended September 30, 2024, increased from $64,924 to $88,039.

This Restatement does not affect the Company’s ongoing operations or liquidity, and the effects of the Restatement on the unaudited consolidated financial statements as of and for the three and nine-month period ended September 30, 2024 are as follows:

NOTE 2. INCREASED IMPAIRMENT CHARGE OF LONG-LIVED ASSETS - continued

	Nine Months Ended September 30, 2024
	As Reported		As Restated
Statement of Income
Impairment loss of long-lived assets	(64,924)		(88,039)
Net loss	(90,019)		(113,134)
Net loss per common share
Net loss	(90,019)		(113,134)
Basic and diluted	$	(0.28)	$	(0.36)
Statement of Cash Flows
Net loss	(90,019)		(113,134)
Impairment loss from long-lived asset	64,924		88,039
	Three Months Ended September 30, 2024
	Accumulated deficit
Statements of Changes in Shareholders' Equity	As Reported		As Restated
Balance as of June 30, 2024	(1,000,767)		(1,023,882)
Net profit	13,247		13,247
Balance as of September 30, 2024	(987,520)		(1,010,635)
	Nine Months Ended September 30, 2024
	Accumulated deficit
Statements of Changes in Shareholders' Equity	As Reported		As Restated
Balance as of December 31, 2023	(897,501)		(897,501)
Net loss	(90,019)		(113,134)
Balance as of September 30, 2024	(987,520)		(1,010,635)
	September 30, 2024
Balance Sheet	As Reported		As Restated
Property, plant and equipment, net	527,160		504,045
Accumulated deficit	(987,520)		(1,010,635)