Quarterly report pursuant to Section 13 or 15(d)

Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements

v3.24.0.1
Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements
9 Months Ended
Sep. 30, 2023
Prior Period Adjustment [Abstract]  
Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements

Note 15 - Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements

Subsequent to filing the Original Form 10-Q, the Company identified an error related to its financial reporting process in connection with an intercompany consolidation of two wholly-owned subsidiaries and in the valuation of inventory, both resulting in an overstatement of inventory in its previously issued unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2023. As a result, the Company has restated its unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2023 to reflect the impact of this material error.

The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated balance sheet as of September 30, 2023, are as follows:

 

 

 

September 30, 2023

 

 

As reported

 

Adjustment

 

Restated

Inventories

 

$

31,650

 

$

(4,079)

 

$

27,571

Current assets

 

 

54,726

 

 

(4,079)

 

 

50,647

Total assets

 

 

290,193

 

 

(4,079)

 

 

286,114

Accrued and other current liabilities

 

 

94,467

 

 

(469)

 

 

93,998

Current liabilities

 

 

133,769

 

 

(469)

 

 

133,300

Total liabilities

 

 

330,222

 

 

(469)

 

 

329,753

Accumulated deficit

 

 

(1,305,339)

 

 

(3,610)

 

 

(1,308,949)

Total shareholders’ deficit

 

 

(40,029)

 

 

(3,610)

 

 

(43,639)

Total liabilities and shareholders’ deficit

 

 

290,193

 

 

(4,079)

 

 

286,114

 

The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated income statement for the three and nine months ended September 30, 2023 are as follows:

 

 

 

Three Months Ended September 30, 2023

 

 

As reported

 

Adjustment

 

Restated

Costs and expenses applicable to revenues

 

$

(25,463)

 

$

(4,079)

 

$

(29,542)

Gross profit

 

 

17,427

 

 

(4,079)

 

 

13,348

Loss from operations

 

 

(7,555)

 

 

(4,079)

 

 

(11,634)

Loss before income tax

 

 

(11,792)

 

 

(4,079)

 

 

(15,871)

Income tax expense

 

 

3,780

 

 

(469)

 

 

3,311

Net loss

 

 

(15,572)

 

 

(3,610)

 

 

(19,182)

Earnings per share

 

 

(0.00)

 

 

(0.00)

 

 

(0.00)

 

 

 

Nine Months Ended September 30, 2023

 

 

As reported

 

Adjustment

 

Restated

Costs and expenses applicable to revenues

 

$

(67,029)

 

$

(4,079)

 

$

(71,108)

Gross profit

 

 

51,329

 

 

(4,079)

 

 

47,250

Loss from operations

 

 

(27,017)

 

 

(4,079)

 

 

(31,096)

Loss before income tax

 

 

(41,295)

 

 

(4,079)

 

 

(45,374)

Income tax expense

 

 

13,021

 

 

(469)

 

 

12,552

Net loss

 

 

(54,316)

 

 

(3,610)

 

 

(57,926)

Earnings per share

 

 

(0.01)

 

 

(0.00)

 

 

(0.01)

 

The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated statement of changes in shareholders' deficit as of September 30, 2023 are as follows:

 

 

 

September 30, 2023

 

 

As reported

 

Adjustment

 

As revised

Accumulated deficit – Balance September 30, 2023

 

$

(1,305,339)

 

$

(3,610)

 

$

(1,308,949)

Total shareholders’ deficit – Balance September 30, 2023

 

 

(40,029)

 

 

(3,610)

 

 

(43,639)

 

The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated statement of cash flows for the nine months ended September 30, 2023 are as follows:

 

 

 

Nine Months Ended, September 30, 2023

 

 

As reported

 

Adjustment

 

Restated

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net loss

 

$

(54,316)

 

$

(3,610)

 

$

(57,926)

   Adjustments to reconcile net loss to net cash provided by (used in) operations:

 

 

 

 

 

 

 

 

 

Change in operating assets and liabilities

 

 

17,965

 

 

3,610

 

 

21,575

Inventory

 

 

(3,490)

 

 

4,079

 

 

589

Accrued and other liabilities

 

 

18,275

 

 

(469)

 

 

17,806

 

 

The effect of the restatements also impacts the following notes to the unaudited interim condensed consolidated financial statements:

 

- Note 3 Inventories

- Note 7 Income Taxes

- Note 8 Segment Information

- Note 13 Unaudited Interim Condensed Consolidated Statements of Cash Flows Supplemental Information