Annual report pursuant to Section 13 and 15(d)

Restatement of Previously Filed Quarterly Form 10-Qs (Tables)

v3.24.4
Restatement of Previously Filed Quarterly Form 10-Qs (Tables)
 12 Months Ended
Dec. 31, 2023
Restatement of Previously Filed Quarterly Form 10-Qs [Abstract]  
Schedule of Unaudited Condensed Consolidated Balance Sheets - Restated
    March 31, 2023  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
Current Assets                  
Cash   $ 2,357,204     $ (329,783 )   $ 2,027,421  
Accounts receivables, net     12,473,777       1,963,189       14,436,966  
Inventory, net     32,664,029       2,753,362       35,417,391  
Prepaid and other current assets     921,178       (41,376 )     879,802  
Total Current Assets     48,416,188       4,345,392       52,761,580  
                         
Property & equipment     18,556,882       4,115       18,560,997  
Right of use assets     4,150,863      
-
       4,150,863  
Other assets     2,786,236       (792,418 )     1,993,818  
Total Assets   $ 73,910,169     $ 3,557,089     $ 77,467,258  
                         
Current Liabilities                        
Accounts payable   $ 34,975,111     $ (3,118 )   $ 34,971,993  
Accrued expenses     3,310,663       3,507,398       6,818,061  
Lease liability, current maturities     979,143      
-
       979,143  
Short term loan payable     1,241,248      
-
       1,241,248  
Warrant and preferred investment option liability     8,631,313      
-
       8,631,313  
Total Current Liabilities     49,137,478       3,504,280       52,641,758  
                         
Lease liability, net of current maturities     3,224,770      
-
       3,224,770  
Total Liabilities     52,362,248       3,504,280       55,866,528  
                         
Stockholders’ Equity                        
Common stock     1,495       (1,472 )     23  
Additional paid-in capital     174,774,641       1,472       174,776,113  
Accumulated other comprehensive income    
-
       6,078       6,078  
Accumulated deficit     (153,228,215 )     46,731     (153,181,484 )
Total Stockholders’ Equity     21,547,921       52,809       21,600,730  
Total Liabilities and Stockholders’ Equity   $ 73,910,169     $ 3,557,089     $ 77,467,258  

 

    June 30, 2023  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
Current Assets                  
Cash   $ 2,206,565     $ (361,654 )   $ 1,844,911  
Accounts Receivables, net     7,820,611       1,913,128       9,733,739  
Inventory, net     31,411,395       5,796,491       37,207,886  
Prepaid and other current assets     48,164       343,280       391,444  
Total Current Assets     41,486,735       7,691,245       49,177,980  
                         
Property & equipment     19,618,726      
-
       19,618,726  
Right of use assets     4,386,414      
-
       4,386,414  
Other assets     2,059,288       2,597       2,061,885  
Total Assets   $ 67,551,163     $ 7,693,842     $ 75,245,005  
                         
Current Liabilities                        
Accounts payable   $ 36,864,439     $ (771,360 )   $ 36,093,079  
Accrued expenses     3,433,090       9,620,070       13,053,160  
Lease liability, current maturities     1,182,351      
-
       1,182,351  
Short term loan payable     1,214,028      
-
       1,214,028  
Warrant and preferred investment option liability     4,985,387      
-
       4,985,387  
Total Current Liabilities     47,679,295       8,848,710       56,528,005  
                         
Lease liability, net of current maturities     3,383,967      
-
       3,383,967  
Total Liabilities     51,063,262       8,848,710       59,911,972  
                         
Stockholders’ Equity                        
Common stock     40      
-
       40  
Additional paid in capital     175,441,446       (185 )     175,441,261  
Accumulated other comprehensive income    
-
       47,702       47,702  
Accumulated deficit     (158,953,585 )     (1,202,385 )     (160,155,970 )
Total Stockholders’ Equity     16,487,901       (1,154,868 )     15,333,033  
Total Liabilities and Stockholders’ Equity   $ 67,551,163     $ 7,693,842     $ 75,245,005  

 

    September 30, 2023  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
Current Assets                  
Cash   $ 1,834,305     $ 107,659     $ 1,941,964  
Accounts receivables, net     8,992,889       3,194,315       12,187,204  
Inventory, net     28,070,889       4,861,332       32,932,221  
Prepaid and other current assets     543,343       (123,040 )     420,303  
Total Current Assets     39,441,426       8,040,266       47,481,692  
                         
Property & equipment     18,904,135      
-
       18,904,135  
Right of use assets     4,021,988      
-
       4,021,988  
Other assets     2,165,301       1,482       2,166,783  
Total Assets     64,532,850       8,041,748       72,574,598  
                         
Current Liabilities                        
Accounts payable     41,091,115       5,933,524       47,024,639  
Accrued expenses     4,461,713       3,549,633       8,011,346  
Lease Liability, current maturities     1,247,062      
-
       1,247,062  
Short term loan payable     707,625       5,606       713,231  
Warrant and preferred investment option liability     5,740,899      
-
       5,740,899  
Total Current Liabilities     53,248,414       9,488,763       62,737,177  
                         
Lease liability, net of current maturities     3,013,214      
-
       3,013,214  
Total Liabilities     56,261,628       9,488,763       65,750,391  
                         
Stockholders’ Equity                        
Common stock     57               57  
Additional paid in capital     181,473,324      
-
       181,473,324  
Accumulated other comprehensive income    
-
       23,783       23,783  
Accumulated deficit     (173,202,159 )     (1,470,798 )     (174,672,957 )
Total Stockholders’ Equity (Deficit)     8,271,222       (1,447,015 )     6,824,207  
Total Liabilities and Stockholders’ Equity   $ 64,532,850     $ 8,041,748     $ 72,574,598  

 
Schedule of Unaudited Condensed Statements of Operations - Restated
    Three Months Ended
March 31, 2023		  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
Revenues, Net of Allowances                  
Metal goods   $ 8,449,294     $ (1,495,144 )   $ 6,954,150  
Soft goods     9,807,138       268,008       10,075,146  
Electronic goods     1,956,279       (124,041 )     1,832,238  
Total Revenues, Net of Allowances     20,212,711       (1,351,177 )     18,861,534  
                         
Cost of Goods Sold                        
Metal goods     6,965,287       (1,160,407 )     5,804,880  
Soft goods     7,712,538       641,397       8,353,935  
Electronic goods     1,977,614       (73,405 )     1,904,209  
Total Cost of Goods Sold     16,655,439       (592,415 )     16,063,024  
                         
Gross Profit     3,557,272       (758,762 )     2,798,510  
                         
Operating Expenses                        
Selling, general and administrative     15,090,116       (805,493 )     14,284,623  
Research and development     3,527,521      
-
       3,527,521  
Total Operating Expenses     18,617,637       (805,493 )     17,812,144  
                         
Income (Loss) from Operations     (15,060,365 )     (46,731 )     (15,013,634 )
                         
Other Income (Expense)                        
Change in the fair value of warrant and preferred investment option liabilities     7,484,960      
-
       7,484,960  
Interest expense     (699,757 )    
-
       (699,757 )
Total Other Income (Expense)     6,785,203      
-
       6,785,203  
                         
Net Income (Loss) Before Income Tax Provision     (8,275,162 )     (46,731 )     (8,228,431 )
                         
Income tax    
-
      
-
      
-
  
                         
Net Income (Loss)   $ (8,275,162 )   $ (46,731 )   $ (8,228,431 )
                         
Redemption of Series D Preferred Stock deemed dividend    
-
      
-
      
-
  
Common Stock deemed dividend    
-
      
-
      
-
  
Net Income (Loss) attributable to common stockholders   $ (8,275,162 )   $ (46,731 )   $ (8,228,431 )
                         
Basic and diluted net loss per share attributable to common stockholders   $ (36.54 )   $ (0.21 )   $ (36.33 )
Basic and diluted weighted average common shares outstanding     226,466               226,466  

 

    For the Three Months Ended
June 30, 2023		     For the Six Months Ended
June 30, 2023		  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		     As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
Revenues, Net of Allowances                                    
Metal goods   $ 8,012,855     $ (619,314 )   $ 7,393,541     $ 17,280,949     $ (2,933,258 )   $ 14,347,691  
Soft goods     9,913,780       (1,167,195 )     8,746,585       18,897,537       (75,806 )     18,821,731  
Electronic goods     952,934       (116,704 )     836,230       2,913,793       (245,325 )     2,668,468  
Total Revenues, Net of Allowances     18,879,569       (1,903,213 )     16,976,356       39,092,279       (3,254,389 )     35,837,890  
                                                 
Cost of Goods Sold                                                
Metal goods     5,453,794       49,214       5,503,008       12,576,597       (1,268,709 )     11,307,888  
Soft goods     6,726,078       (893,541 )     5,832,537       14,613,702       (427,230 )     14,186,472  
Electronic goods     858,724       (45,314 )     813,410       2,503,737       213,882       2,717,619  
Total Cost of Goods Sold     13,038,596       (889,641 )     12,148,955       29,694,036       (1,482,057 )     28,211,979  
                                                 
Gross Profit     5,840,973       (1,013,572 )     4,827,401       9,398,243       (1,772,332 )     7,625,911  
                                                 
Operating Expenses                                                
Selling, general and administrative     14,967,257       384,580       15,351,837       30,046,444       (409,984 )     29,636,460  
Research and development     2,913,403       (119,587 )     2,793,816       6,440,924       (119,587 )     6,321,337  
Total Operating Expenses     17,880,660       264,993       18,145,653       36,487,368       (529,571 )     35,957,797  
                                                 
Income (Loss) from Operations     (12,039,687 )     1,278,565       (13,318,252 )     (27,089,125 )     1,242,761       (28,331,886 )
                                                 
Other Income (Expense)                                                
Warrant issuance cost     (351,768 )    
-
       (351,768 )     (351,768 )    
-
       (351,768 )
Change in the fair value of warrant and preferred investment option liabilities     7,242,510      
-
       7,242,510       14,727,470      
-
       14,727,470  
Interest expense     (576,425 )     (29,450 )     (546,975 )     (1,287,109 )     (40,377 )     (1,246,732 )
Total Other Income (Expense)     6,314,317       (29,450 )     6,343,767       13,088,593       (40,377 )     13,128,970  
                                                 
Net Income (Loss) Before Income Tax Provision     (5,725,370 )     1,249,115       (6,974,485 )     (14,000,532 )     1,202,384       (15,202,916 )
                                                 
Income tax    
-
      
-
      
-
      
-
      
-
      
-
  
                                                 
Net Income (Loss)   $ (5,725,370 )   $ 1,249,115     $ (6,974,485 )   $ (14,000,532 )   $ 1,202,384     $ (15,202,916 )
                                                 
Redemption of Series D Preferred Stock deemed dividend    
-
      
-
      
-
      
-
      
-
      
-
  
Common Stock deemed dividend    
-
      
-
      
-
      
-
      
-
      
-
  
Net Income (Loss) attributable to common stockholders   $ (5,725,370 )   $ 1,249,115     $ (6,974,485 )   $ (14,000,532 )   $ 1,202,384     $ (15,202,916 )
                                                 
Basic and diluted net loss per share attributable to common stockholders   $ (23.57 )   $ 5.14     $ (28.71 )   $ (59.64 )   $ 5.12     $ (64.76 )
Basic and diluted weighted average common shares outstanding     242,934               242,934       234,745               234,745  

 

    For the Three Months Ended
September 30, 2023		     For the Nine Months Ended
September 30, 2023		  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		     As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
Revenues, Net of Allowances                                    
Metal goods   $ 12,754,504     $ (4,288,179 )   $ 8,466,325     $ 30,475,518     $ (7,661,502 )   $ 22,814,016  
Soft goods     6,035,706       4,145,891       10,181,597       25,938,923       3,064,405       29,003,328  
Electronic goods     1,839,997       (784,742 )     1,055,255       3,308,045       415,678       3,723,723  
Total Revenues, Net of Allowances     20,630,207       (927,030 )     19,703,177       59,722,486       (4,181,419 )     55,541,067  
                                                 
Cost of Goods Sold                                                
Metal goods     10,351,690       (4,040,275 )     6,311,415       25,732,707       (8,113,404 )     17,619,303  
Soft goods     3,646,862       4,220,740       7,867,602       16,528,326       5,525,748       22,054,074  
Electronic goods     1,718,681       (521,874 )     1,196,807       3,150,236       764,190       3,914,426  
Total Cost of Goods Sold     15,717,233       (341,409 )     15,375,824       45,411,269       (1,823,466 )     43,587,803  
                                                 
Gross Profit     4,912,974       (585,621 )     4,327,353       14,311,217       (2,357,953 )     11,953,264  
                                                 
Operating Expenses                                                
Selling, general and administrative     12,572,066       2,286,759       14,858,825       42,618,510       1,876,775       44,495,285  
Research and development     2,916,349       (2,587,157 )     329,192       9,357,273       (2,706,744 )     6,650,529  
Total Operating Expenses     15,488,415       (300,398 )     15,188,017       51,975,783       (829,969 )     51,145,814  
                                                 
Income (Loss) from Operations     (10,575,441 )     285,223       (10,860,664 )     (37,664,566 )     1,527,984       (39,192,550 )
                                                 
Other Income (Expense)                                                
Warrant issuance cost     (186,450 )    
-
       (186,450 )     (538,218 )    
-
       (538,218 )
Change in the fair value of warrant and preferred investment option liabilities     3,033,537      
-
       3,033,537       17,761,007      
-
       17,761,007  
Inducement expense     (6,373,353 )     -       (6,373,353 )     (6,373,353 )    
-
       (6,373,353 )
Interest expense     (146,867 )     (16,809 )     (130,058 )     (1,433,975 )     (57,185 )     (1,376,790 )
Total Other Income (Expense)     (3,673,133 )     (16,809 )     (3,656,324 )     9,415,461       (57,185 )     9,472,646  
                                                 
Net Income (Loss) Before Income Tax Provision     (14,248,574 )     268,414       (14,516,988 )     (28,249,105 )     1,470,799       (29,719,904 )
                                                 
Income tax    
-
      
-
      
-
      
-
      
-
      
-
  
                                                 
Net Income (Loss)   $ (14,248,574 )   $ 268,414     $ (14,516,988 )   $ (28,249,105 )   $ 1,470,799     $ (29,719,904 )
                                                 
Redemption of Series D Preferred Stock deemed dividend    
-
      
-
      
-
      
-
      
-
      
-
  
Common Stock deemed dividend    
-
      
-
      
-
      
-
      
-
      
-
  
Net Income (Loss) attributable to common stockholders   $ (14,248,574 )   $ 268,414     $ (14,516,988 )   $ (28,249,105 )   $ 1,470,799     $ (29,719,904 )
                                                 
Basic and diluted net loss per share attributable to common stockholders   $ (29.59 )   $ 0.55     $ (30.15 )   $ (88.86 )   $ 4.63     $ (93.49 )
Basic and diluted weighted average common shares outstanding     481,508               481,508       317,904               317,904  

 
Schedule of Unaudited Condensed Consolidated Statements of Cash Flows - Restated
    March 31, 2023  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
Net loss   $ (8,275,162 )   $ 46,731     $ (8,228,431 )
Adjustments to reconcile from net loss to net cash provided by operating activities:                        
Depreciation     1,152,353      
-
       1,152,353  
Amortization or right of use     264,996      
-
       264,996  
Change in fair value of warrant and preferred investment option liability     (7,484,960 )    
-
       (7,484,960 )
Stock-based compensation expense     115,139      
-
       115,139  
Changes in operating assets and liabilities                        
Accounts receivable, net     4,336,882       (1,963,189 )     2,373,693  
Inventory     7,701,257       (2,753,362 )     4,947,895  
Prepaid assets     (551,386 )     41,376       (510,010 )
Other assets     (895,456 )     792,418       (103,038 )
Accounts payable     4,352,612       (3,118 )     4,349,494  
Accrued expenses     299,749       3,503,283       3,803,032  
Lease liability     (233,097 )    
-
       (233,097 )
Net cash provided by operating activities     782,927       (335,861 )     447,066  
                         
Cash flows from investing activities:                        
Purchases of property and equipment     (1,257,625 )     -       (1,257,625 )
Net cash used in investing activities     (1,257,625 )     -       (1,257,625 )
                         
Cash flows from financing activities:                        
Proceeds from loan payable     412,589      
-
       412,589  
Repayments of loan payable     (144,924 )    
-
       (144,924 )
Net cash provided by financing activities     267,665      
-
       267,665  
                         
Effect of exchange rate on cash    
-
       6,078       6,078  
                         
Net decrease in cash     (207,033 )     (329,783 )     (536,816 )
Cash, beginning of period     2,564,237      
-
       2,564,237  
Cash, end of period   $ 2,357,204     $ (329,783 )   $ 2,027,421  
                         
Supplemental disclosure of cash flow information:                        
Cash paid during the period for:                        
Interest   $ 699,757             $ 699,757  
Income taxes   $
-
             $
-
  
                         
Supplemental disclosure of non-cash investing and financing activities:                        
Purchase of property and equipment in accounts payable   $ 951,227             $ 951,227  
Repayment of short-term loan payable in exchange of new short-term loan payable   $ 714,411             $ 714,411  

 

    June 30, 2023  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As
Restated		  
                   
Cash flows from operating activities:                  
Net loss   $ (14,000,532 )   $ (1,202,384 )   $ (15,202,916 )
Adjustments to reconcile from net loss to net cash used in operating activities:                        
Depreciation     2,608,776      
-
       2,608,776  
Provision for credit losses     1,300,000      
-
       1,300,000  
Amortization or right of use assets     734,405      
-
       734,405  
Warrant issuance cost     351,768      
-
       351,768  
Loss on sale of property and equipment    
-
       16,652       16,652  
Change in fair value of warrant and preferred investment option liability     (14,727,470 )    
-
       (14,727,470 )
Stock-based compensation expense     228,656      
-
       228,656  
Changes in operating assets and liabilities                        
Accounts receivable, net     7,690,048       (1,913,128 )     5,776,920  
Inventory     8,953,891       (5,796,491 )     3,157,400  
Prepaid assets     321,628       (343,280 )     (21,652 )
Other assets     (168,508 )     (2,597 )     (171,105 )
Accounts payable     4,715,352       (771,361 )     3,943,991  
Accrued expenses     422,177       9,603,417       10,025,594  
Lease liability     (575,652 )    
-
       (575,652 )
Net cash used in operating activities     (2,145,461 )     (409,172 )     (2,554,633 )
                         
Cash flows from investing activities:                        
Purchases of property and equipment     (2,249,304 )     -       (2,249,304 )
Net cash used in investing activities     (2,249,304 )     -       (2,249,304 )
                         
Cash flows from financing activities:                        
Proceeds from short term loan payable     412,589      
-
       412,589  
Repayments of short-term loan payable     (172,144 )    
-
       (172,144 )
Proceeds from issuance of common stock, net of costs     3,796,648       (184 )     3,796,464  
Net cash provided by financing activities     4,037,093       (184 )     4,036,909  
                         
Effect of exchange rate on cash    
-
       47,702       47,702  
                         
Net decrease in cash     (357,672 )     (361,654 )     (719,326 )
Cash, beginning of period     2,564,237      
-
       2,564,237  
Cash, end of period   $ 2,206,565     $ (361,654 )   $ 1,844,911  
                         
Supplemental disclosures of cash flow information:                        
Cash paid during the period for:                        
Interest   $ 1,261,457             $ 1,261,457  
Income taxes   $
-
             $
-
  
                         
Supplemental disclosures of non-cash investing and financing activities:                        
Initial fair value of warrants and preferred investment options   $ 3,596,484             $ 3,596,584  
Initial value of lease liability   $ 704,960             $ 704,960  
Purchase of property and equipment in accounts payable   $ 2,477,816             $ 2,477,816  
Repayment of short-term loan payable in exchange of new short-term loan payable   $ 714,411             $ 714,411  

 

    For the Nine Months Ended
September 30, 2023		  
    As
Previously
Reported		     Restatement
Impact
Increase
(Decrease)		     As Restated  
Cash flows from operating activities:                  
Net loss   $ (28,249,105 )   $ (1,470,799 )   $ (29,719,904 )
Adjustments to reconcile from net loss to net cash used in operating activities:                        
Depreciation     4,088,358      
-
       4,088,358  
Provision for credit losses     2,943,671       662,687       3,606,358  
Loss on sale of property and equipment    
-
       16,652       16,652  
Inducement expense     6,373,353      
-
       6,373,353  
Amortization of right of use assets     1,098,831      
-
       1,098,831  
Change in fair value of warrant and preferred investment option liability     (17,761,007 )    
-
       (17,761,007 )
Warrant issuance cost     538,218      
-
       538,218  
Stock-based compensation expense     328,127       -       328,127  
Changes in operating assets and liabilities                        
Accounts receivable, net     4,874,099       (3,857,002 )     1,017,097  
Inventory     12,294,396       (4,861,331 )     7,433,065  
Prepaid assets     (173,551 )     123,040       (50,511 )
Other assets     (274,520 )     (1,483 )     (276,003 )
Accounts payable     9,240,985       5,933,524       15,174,509  
Accrued expenses     1,450,799       3,532,981       4,983,780  
Lease liability     (881,694 )    
-
       (881,694 )
Net cash used in operating activities     (4,109,040 )     78,270       (4,030,770 )
                         
Cash flows from investing activities:                        
Purchases of property and equipment     (3,313,252 )     -       (3,313,252 )
Net cash used in investing activities     (3,313,252 )             (3,313,252 )
                         
Cash flows from financing activities:                        
Proceeds from issuance of stock, net of costs     6,958,318      
-
       6,958,318  
Proceeds from short term loan payable     779,795      
-
       779,795  
Repayments of short-term loan payable     (1,045,753 )     5,606       (1,040,147 )
Net cash provided by financing activities     6,692,360       5,606       6,697,966  
                         
Effect of currency fluctuation on cash    
-
       23,783       23,783  
                         
Net (decrease) in cash     (729,932 )     107,660       (622,273 )
Cash, beginning of period     2,564,237      
-
       2,564,237  
Cash, end of period     1,834,305       107,660       1,941,964  
                         
Supplemental disclosures of cash flow information:                        
Cash paid during the period for:                        
Interest   $ 1,433,976     $ (42,461 )   $ 1,391,515  
Income taxes   $
-
     $
-
     $
-
  
                         
Supplemental disclosures of non-cash investing and financing activities:                        
Initial fair value of warrant and preferred investment option liability   $ 9,916,393     $
-
     $ 9,916,393  
Initial value of lease liability   $ 704,960     $
-
     $ 704,960  
Repayment of short-term loan payable in exchange for new short-term loan payable   $ 1,601,205     $ (1,254,000 )   $ 347,205  
Purchase of property and equipment in accounts payable   $ 2,178,858     $
-
     $ 2,178,858