Correction of Immaterial Errors

12 Months Ended

Dec. 31, 2022

Correction Of Immaterial Errors

Correction of Immaterial Errors

14. Correction of Immaterial Errors

During the year ending December 31, 2022, management identified and corrected certain immaterial errors in the Company’s historical financial statements associated with the cost of revenues provided by a subcontractor. The errors understated the cost of revenue and overstated the sales and marketing operating expenses by equal amounts in the Consolidated Statement of Operations. The error had no impact on operating losses, net losses, and net loss per share nor any other financial statement amount. Further these errors had no impact on the consolidated balance sheets, statements of changes in stockholders’ equity (deficit), and statement of cash flows. These corrections do not affect any of the metrics used to calculate and evaluate management’s compensation and had no impact on bonuses, commissions, stock-based compensation, or any other employee renumeration. Historical amounts have been corrected and are presented on a comparable basis.

The below table presents the effect of the correction for the year ended December 31, 2021: 

	Year Ended December 31, 2021
	As Reported			Adjustments			As Corrected
Revenue	$	7,277		$	–		$	7,277
Cost of Revenue		2,625			996			3,621
Gross Profit		4,652			(996	)		3,656
Operating Expenses
Sales and marketing		11,931			(996	)		10,935
Research and development		6,328			–			6,328
General and administrative		5,896			–			5,896
Operating Loss	$	(19,503	)	$	–		$	(19,503	)