Revisions of Previously Issued Financial Statements |
Note 18. Revisions of Previously Issued
Financial Statements
As noted in Note 4. “Acquisitions”, on
May 26, 2021, the Company acquired 100% of the equity interests of Whinstone. The Whinstone Acquisition
was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations, which requires
recognition of assets acquired and liabilities assumed at their respective fair values on the date of acquisition. During
the third quarter of 2022, the Company discovered a classification error in its reported allocation of acquisition date fair value to
property and equipment, which resulted in an understatement of property and equipment and an equal overstatement of goodwill as of the
balance sheet dates outlined below.
In accordance with Staff Accounting Bulletin (“SAB”)
99, Materiality, and SAB 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current
Year Financial Statements, the Company evaluated the materiality of the error from qualitative and quantitative perspectives, and
concluded that the error was immaterial to any prior annual or interim financial statements. Notwithstanding
this conclusion, management has revised the accompanying condensed consolidated financial statements and related notes included herein
to correct this error for all periods presented.
The following tables present the effect of correcting
this error on the Company’s previously issued financial statements. There were no changes to the statements of stockholders’
equity that have not otherwise been reflected in the balance sheets and statements of operations as detailed in the tables below.
|
|
As of June 30, 2021 |
|
Condensed Consolidated Balance Sheet |
|
As previously reported |
|
|
Adjustment |
|
|
As revised |
|
Property & equipment, net |
|
$ |
128,815 |
|
|
$ |
13,500 |
|
|
$ |
142,315 |
|
Goodwill |
|
|
267,409 |
|
|
|
(13,500 |
) |
|
|
253,909 |
|
Total assets |
|
|
906,369 |
|
|
|
— |
|
|
|
906,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2021 |
|
|
Condensed Consolidated Balance Sheet |
|
|
As previously reported |
|
|
|
Adjustment |
|
|
|
As revised |
|
Property & equipment, net |
|
$ |
200,751 |
|
|
$ |
13,500 |
|
|
$ |
214,251 |
|
Goodwill |
|
|
267,237 |
|
|
|
(13,500 |
) |
|
|
253,737 |
|
Total assets |
|
|
954,407 |
|
|
|
— |
|
|
|
954,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
|
|
Consolidated Balance Sheet |
|
|
As previously reported |
|
|
|
Adjustment |
|
|
|
As revised |
|
Property & equipment, net |
|
$ |
262,980 |
|
|
$ |
13,500 |
|
|
$ |
276,480 |
|
Goodwill |
|
|
349,063 |
|
|
|
(13,500 |
) |
|
|
335,563 |
|
Total assets |
|
|
1,530,939 |
|
|
|
— |
|
|
|
1,530,939 |
|
|
|
|
As of March 31, 2022 |
|
|
Condensed Consolidated Balance
Sheet |
|
|
As previously reported |
|
|
|
Adjustment |
|
|
|
As revised |
|
Property & equipment, net |
|
$ |
325,132 |
|
|
$ |
13,500 |
|
|
$ |
338,632 |
|
Goodwill |
|
|
349,148 |
|
|
|
(13,500 |
) |
|
|
335,648 |
|
Total assets |
|
|
1,549,755 |
|
|
|
— |
|
|
|
1,549,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2022 |
|
|
Condensed Consolidated Balance Sheet |
|
|
As previously reported |
|
|
|
Adjustment |
|
|
|
As revised |
|
Property & equipment, net |
|
$ |
411,244 |
|
|
$ |
13,500 |
|
|
$ |
424,744 |
|
Goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total assets |
|
|
1,436,225 |
|
|
|
13,500 |
|
|
|
1,449,725 |
|
Accumulated deficit |
|
|
(568,543 |
) |
|
|
13,500 |
|
|
|
(555,043 |
) |
Total stockholders’ equity |
|
|
1,288,565 |
|
|
|
13,500 |
|
|
|
1,302,065 |
|
Total liabilities and stockholders’ equity |
|
|
1,436,225 |
|
|
|
13,500 |
|
|
|
1,449,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2022 |
|
|
Condensed Consolidated Statement of
Operations |
|
|
As previously reported |
|
|
|
Adjustment |
|
|
|
As revised |
|
Impairment of goodwill |
|
$ |
349,148 |
|
|
$ |
(13,500 |
) |
|
$ |
335,648 |
|
Total costs and expenses |
|
|
438,960 |
|
|
|
(13,500 |
) |
|
|
425,460 |
|
Operating income (loss) |
|
|
(366,013 |
) |
|
|
13,500 |
|
|
|
(352,513 |
) |
Net income (loss) before taxes |
|
|
(372,533 |
) |
|
|
13,500 |
|
|
|
(359,033 |
) |
Net income (loss) |
|
|
(366,334 |
) |
|
|
13,500 |
|
|
|
(352,834 |
) |
Basic net income (loss) per share |
|
|
(2.81 |
) |
|
|
0.10 |
|
|
|
(2.71 |
) |
Diluted net income (loss) per share |
|
|
(2.81 |
) |
|
|
0.10 |
|
|
|
(2.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
|
|
Condensed Consolidated Statement of
Operations |
|
|
As previously reported |
|
|
|
Adjustment |
|
|
|
As revised |
|
Impairment of goodwill |
|
$ |
349,148 |
|
|
$ |
(13,500 |
) |
|
$ |
335,648 |
|
Total costs and expenses |
|
|
480,838 |
|
|
|
(13,500 |
) |
|
|
467,338 |
|
Operating income (loss) |
|
|
(328,104 |
) |
|
|
13,500 |
|
|
|
(314,604 |
) |
Net income (loss) before taxes |
|
|
(336,592 |
) |
|
|
13,500 |
|
|
|
(323,092 |
) |
Net income (loss) |
|
|
(330,705 |
) |
|
|
13,500 |
|
|
|
(317,205 |
) |
Basic net income (loss) per share |
|
|
(2.67 |
) |
|
|
0.11 |
|
|
|
(2.56 |
) |
Diluted net income (loss) per share |
|
|
(2.67 |
) |
|
|
0.11 |
|
|
|
(2.56 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
|
|
Condensed Consolidated Statement of
Cash Flows |
|
|
As previously reported |
|
|
|
Adjustment |
|
|
|
As revised |
|
Net income (loss) |
|
$ |
(330,705 |
) |
|
$ |
13,500 |
|
|
$ |
(317,205 |
) |
Impairment of goodwill |
|
|
349,148 |
|
|
|
(13,500 |
) |
|
|
335,648 |
|
Net cash used in operating activities |
|
|
(14,393 |
) |
|
|
— |
|
|
|
(14,393 |
) |
|