Restatement of Previously Issued Consolidated Financial Statements

12 Months Ended

Dec. 31, 2023

Restatement of Previously Issued Consolidated Financial Statements

Restatement of Previously Issued Consolidated Financial Statements

Note 2:  Restatement of Previously Issued Consolidated Financial Statements

The Company restated the previously issued consolidated financial statement in its Form 10-K for the year ended December 31, 2022 to correct historical error related to accounts payable and accumulated deficit as of January 1, 2022 and for the year then ended.  This misstatement consisted of underreported accounts payable and an understatement of accumulated deficit, which related to years which occurred prior to 2020 and carried forward to 2022. Please refer to the Explanatory Note prior to Part I of this Form 10-K.  Also shown in the Explanatory Note is a table showing the effect of the restated amount to the consolidated balance sheet as of that date.

Description of Restatement Tables

The following tables represent our restated consolidated balance sheets, consolidated statements of operations, and consolidated statements of cash flows as of December 31, 2022 and for the year then ended.

Following the restated consolidated financial statement tables, we have presented a reconciliation from our prior periods as previously reported to the restated values. The values as previously reported for the year ended December 31, 2022 were derived from our 2022 Annual Report on Form 10-K, filed on April 13, 2023.

Balance Sheet as of December 31, 2022

	As Filed			As Restated
Total current assets	$	3,032,303		$	3,032,303
Net property and equipment		4,713,208			4,713,208
All other assets		10,597,687			10,597,687
Total assets		18,343,198			18,343,198
Accounts payable and accrued expenses		650,582			1,807,035
All other current liabilities		1,665,831			1,665,831
Total current liabilities		2,316,413			3,472,866
All long-term liabilities		14,160,123			14,160,123
Common stock		24,819,736			24,819,736
Accumulated deficit		(22,953,074	)		(24,109,527	)
Total liability and stockholders equity	$	18,343,198		$	18,343,198

Consolidated Statement of Operations for the year ended December 31, 2022

	As Filed			As Restated
Total revenue	$	14,452,765		$	14,452,765
Total operating expenses		11,406,821			11,406,821
Other expenses		2,618,228			2,618,228
Operating income		427,716			427,716
Interest		1,626,221			1,884,147
Net income (loss) before taxes		(1,198,505	)		(1,456,431	)
Income tax (benefit)		(142,435	)		(142,435	)
Net (loss)	$	(1,156,070	)	$	(1,313,996	)

Consolidated Statement of Cash Flows for the year ended December 31, 2022

	As Filed			As Restated
Net (loss)	$	(1,056,070	)	$	(1,313,996	)
Depreciation and amortization, deferred contract revenue, deferred contract cost, amortization of lease in excess of cash paid, deferred income taxes, accounts receivable, inventories, prepaid expenses and other assets		1,008,985			1,008,985
Accounts payable and accrued expenses		76,669			334,595
Cash provided by operating activity		29,584			29,584
Cash used in investing activities		(507,575	)		(507,575	)
Cash used in financing activities		-			-
(Decrease) in cash		(477,991	)		(477,991	)
Cash at beginning of year		1,263,513			1,263,513
Cash at end of year	$	785,522		$	785,522