Note 2 - Restatement of Previously Issued Financial Statements

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

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Note 2 - Restatement of Previously Issued Financial Statements

In accordance with Accounting Standards Codification ("ASC") 740, and pursuant to re-evaluation by the Company’s management, the Company has determined that for the three months ended June 30, 2021 the Company should have recognized a deferred income tax benefit through a partial release of the Company's valuation allowance, as well as recognizing deferred income tax expense for the six months ended June 30, 2021 through the recording of additional valuation allowance. This limitation is due to a change in control that occurred in February 2021 pursuant to the issuance of 4,199,998 shares of Company common stock.

The following tables summarize the effects of the restatements on each financial statement line item as of the date, and for the periods, indicated (in thousands except per share amounts):

	June 30, 2021
	As Previously Restated				Adjustments		As Restated
Condensed Consolidated Balance Sheet (unaudited)
Deferred tax liability, net	$	-		$	948		$	948
Total long-term liabilities		17,205			948			18,153
Total liabilities		21,422			948			22,370
Accumulated deficit		(31,916	)		(948	)		(32,864	)
Total stockholders' equity		8,926			(948	)		7,978

	For the Three Months Ended June 30, 2021
	As Previously Restated				Adjustments	As Restated
Condensed Consolidated Statement of Operations (unaudited)
Deferred income tax benefit	$	-		$	477	$	477
Loss from continuing operations		(1,910	)		477		(1,433	)
Net loss		(1,910	)		477		(1,433	)
Loss from continuing operations per common share - basic and diluted		(0.17	)		0.04		(0.13	)
Net loss per share - basic and diluted		(0.17	)		0.04		(0.13	)

	For the Six Months Ended June 30, 2021
	As Previously Restated				Adjustments		As Restated
Condensed Consolidated Statement of Operations (unaudited)
Deferred income tax expense	$	-		$	(948	)	$	(948	)
Loss from continuing operations		(4,379	)		(948	)		(5,327	)
Net loss		(4,387	)		(948	)		(5,335	)
Loss from continuing operations per common share - basic and diluted		(0.43	)		(0.09	)		(0.52	)
Net loss per share - basic and diluted		(0.43	)		(0.09	)		(0.52	)

	Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’  Equity
Consolidated Statement of Stockholders' Equity (Deficit) (unaudited)
As Previously Restated:
Net loss (for the three months ended March 31, 2021)	$	-	$	(2,477	)	$	(2,477	)
Balance at March 31, 2021		40,760		(30,006	)		10,811
Net loss (for the three months ended June 30, 2021)		-		(1,910	)		(1,910	)
Balance at June 30, 2021		40,785		(31,916	)		8,926
Adjustments:
Net loss (for the three months ended March 31, 2021)	$	-	$	(1,425	)	$	(1,425	)
Balance at March 31, 2021		-		(1,425	)		(1,425	)
Net loss (for the three months ended June 30, 2021)		-		477			477
Balance at June 30, 2021		-		477			477
As Restated:
Net loss (for the three months ended March 31, 2021)	$	-	$	(3,902	)	$	(3,902	)
Balance at March 31, 2021		40,760		(31,431	)		9,386
Net loss (for the three months ended June 30, 2021)		-		(1,433	)		(1,433	)
Balance at June 30, 2021		40,785		(32,864	)		7,978

	For the Six Months Ended June 30, 2021
	As Previously Restated				Adjustments		As Restated
Condensed Consolidated Statement of Cash Flows (unaudited)
OPERATING ACTIVITIES
Net loss	$	(4,387	)	$	(948	)	$	(5,335	)
Net loss from continuing operations		(4,379	)		(948	)		(5,327	)
Deferred income tax expense		-			948			948