REVISED AND RESTATED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2024

Accounting Changes and Error Corrections [Abstract]

REVISED AND RESTATED FINANCIAL STATEMENTS

2. REVISED AND RESTATED FINANCIAL STATEMENTS

During the three months ended June 30, 2025, as part of the Company’s ongoing enhancements to internal controls over financial reporting, a detailed review of its interest expense-related cash flow classification was performed. As a result, the Company restated certain amounts within the condensed consolidated statement of cash flows for the year ended December 31, 2024. This reclassification corrects the presentation of $3,092,350 of non-cash interest accrual adjustments related to the Company’s line of credit as of December 31, 2024. These amounts, previously presented within net proceeds from the line of credit in financing activities, are now presented within operating activities. This change in presentation has no impact on the Company’s condensed consolidated balance sheets, condensed consolidated statements of operations, or total cash flows for any related period. Additionally, there was no material impact on the condensed consolidated statement of cash flows for the year ended December 31, 2023.

The following table summarizes the impact of the correction on the Company’s condensed consolidated statement of cash flows for the period ending December 31, 2024.

	Impact of correction of error
Twelve months ended December 31, 2024	As previousy reported			Adjustments			As restated
Net cash used in operating activities of continuing operations	$	(5,858,147	)	$	3,092,350		$	(2,765,797	)
Net cash provided by financing activities of continuing operations	$	6,068,077		$	(3,092,350	)	$	2,975,727

During the preparation of the financial statements for the three months ended March 31, 2024, the Company identified and revised its classification for all its outstanding common stock amount per par value of $0.001 with additional paid-in-capital related with a 1-for-75,000 reverse split executed on January 9, 2024. The impact of this adjustment decreased $1,804,774 to common stock and offsetting increase to additional paid-in-capital as of December 31, 2023. Additionally, the Company identified and revised its series B and series C preferred stock values which increased its preferred stock by $20,004 and decreased additional paid-in-capital by the same amount as of December 31, 2023.

The following tables summarize the impact of the corrections on the Company’s condensed consolidated balance sheet as of December 31, 2023:

Consolidated balance sheet

	Impact of revision
December 31, 2023	As previously reported			Adjustments			As restated
Preferred stock	$	76,976,716		$	20,004		$	76,996,720
Common stock		1,804,799			(1,804,774	)		25
Additional paid-in-capital		(9,365,982	)		1,784,770			(7,581,212	)
Total stockholders' equity	$	731,418		$	–		$	731,418

During a review of the year ended December 31, 2023 financial statements, the Company identified and corrected its classification of bad debt expense in its consolidated statements of cash flows. Bad debt expense was previously included as part of the change in accounts receivable in the consolidated statements of cash flows. Bad debt expense is now disclosed as a separate line on the consolidated statements of cash flows.