| Correction of Previously Issued Financial Statements |
Note 2 – Correction of Previously Issued Financial Statements
In the course of preparing its fiscal year 2022 financial statements,
the Company identified errors in the financial statements for the year ended December 31, 2021 and its unaudited financial statements
for the periods ended March 31, 2022, June 30, 2022, and September 30, 2022. The errors pertain to understatements in research and development
expenses and accrued expenses amounting to $458,622 for the year ended December 31, 2021 and $367,439 for the three months ended March
31, 2022, the six months ended June 30, 2022 and the nine months ended September 30, 2022 resulting from additional trial sites costs
which were not reported to the Company by our CRO.
The Company assessed the materiality of these misstatements on prior
periods’ financial statements in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality, codified in
ASC 250 (“ASC 250”), Presentation of Financial Statements, and concluded that these misstatements were not material to any prior
annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements), the Financial Statements as of December 31, 2021, and the year then ended,
which are presented herein, have been revised. The following are selected line items from the Company's balance sheets, statements of
operations and statements of cash flows for the affected periods illustrating the effect of these corrections:
| Schedule of restatements |
|
|
|
| Balance Sheet |
|
As of December 31,
2021 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
1,522,823 |
|
|
$ |
458,622 |
|
|
$ |
1,981,445 |
|
| Total current liabilities |
|
|
2,135,566 |
|
|
|
458,622 |
|
|
|
2,594,188 |
|
| Total liabilities |
|
|
2,135,566 |
|
|
|
458,622 |
|
|
|
2,594,188 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated deficit |
|
|
(34,982,921 |
) |
|
|
(458,622 |
) |
|
|
(35,441,543 |
) |
| Total stockholders' equity |
|
|
6,621,819 |
|
|
|
(458,622 |
) |
|
|
6,163,197 |
|
| |
|
|
|
Balance Sheet
(Unaudited) |
|
As of March 31,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
489,716 |
|
|
$ |
826,061 |
|
|
$ |
1,315,777 |
|
| Total current liabilities |
|
|
1,069,300 |
|
|
|
826,061 |
|
|
|
1,895,361 |
|
| Total liabilities |
|
|
1,069,300 |
|
|
|
826,061 |
|
|
|
1,895,361 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated deficit |
|
|
(37,767,260 |
) |
|
|
(826,061 |
) |
|
|
(38,593,321 |
) |
| Total stockholders' equity |
|
|
14,802,567 |
|
|
|
(826,061 |
) |
|
|
13,976,506 |
|
| |
|
|
|
Balance Sheet
(Unaudited) |
|
As of June 30,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
490,886 |
|
|
$ |
826,061 |
|
|
$ |
1,316,947 |
|
| Total current liabilities |
|
|
923,856 |
|
|
|
826,061 |
|
|
|
1,749,917 |
|
| Total liabilities |
|
|
923,856 |
|
|
|
826,061 |
|
|
|
1,749,917 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated deficit |
|
|
(41,333,212 |
) |
|
|
(826,061 |
) |
|
|
(42,159,273 |
) |
| Total stockholders' equity |
|
|
11,523,456 |
|
|
|
(826,061 |
) |
|
|
10,697,395 |
|
| |
|
|
|
Balance Sheet
(Unaudited) |
|
As of September 30,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
1,005,043 |
|
|
$ |
826,061 |
|
|
$ |
1,831,104 |
|
| Total current liabilities |
|
|
1,244,303 |
|
|
|
826,061 |
|
|
|
2,070,364 |
|
| Total liabilities |
|
|
1,244,303 |
|
|
|
826,061 |
|
|
|
2,070,364 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated deficit |
|
|
(44,752,765 |
) |
|
|
(826,061 |
) |
|
|
(45,578,826 |
) |
| Total stockholders' equity |
|
|
8,393,624 |
|
|
|
(826,061 |
) |
|
|
7,567,563 |
|
| |
|
|
|
| Statement of Operations |
|
For the year ended December 31,
2021 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Research and development |
|
$ |
9,346,453 |
|
|
$ |
458,622 |
|
|
$ |
9,805,075 |
|
| Total operating expenses |
|
|
14,027,293 |
|
|
|
458,622 |
|
|
|
14,485,915 |
|
| Loss from operations |
|
|
(14,027,293 |
) |
|
|
(458,622 |
) |
|
|
(14,485,915 |
) |
| Net loss |
|
|
(14,036,578 |
) |
|
|
(458,622 |
) |
|
|
(14,495,200 |
) |
| Loss per share - basic and diluted |
|
|
(15.98 |
) |
|
|
(0.52 |
) |
|
|
(16.50 |
) |
| |
|
|
|
Statement of Operations
(Unaudited) |
|
For the three months ended March 31,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Research and development |
|
$ |
1,521,364 |
|
|
$ |
367,439 |
|
|
$ |
1,888,803 |
|
| Total operating expenses |
|
|
2,781,773 |
|
|
|
367,439 |
|
|
|
3,149,212 |
|
| Loss from operations |
|
|
(2,781,773 |
) |
|
|
(367,439 |
) |
|
|
(3,149,212 |
) |
| Net loss |
|
|
(2,784,339 |
) |
|
|
(367,439 |
) |
|
|
(3,151,778 |
) |
| Loss per share - basic and diluted |
|
|
(2.15 |
) |
|
|
(0.28 |
) |
|
|
(2.44 |
) |
Statement of Operations
(Unaudited) |
|
For the six months ended June 30,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Research and development |
|
$ |
3,742,703 |
|
|
$ |
367,439 |
|
|
$ |
4,110,142 |
|
| Total operating expenses |
|
|
6,346,114 |
|
|
|
367,439 |
|
|
|
6,713,553 |
|
| Loss from operations |
|
|
(6,346,114 |
) |
|
|
(367,439 |
) |
|
|
(6,713,553 |
) |
| Net loss |
|
|
(6,350,291 |
) |
|
|
(367,439 |
) |
|
|
(6,717,730 |
) |
| Loss per share - basic and diluted |
|
|
(4.83 |
) |
|
|
(0.28 |
) |
|
|
(5.11 |
) |
Statement of Operations
(Unaudited) |
|
For the nine months ended September 30,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Research and development |
|
$ |
5,950,616 |
|
|
$ |
367,439 |
|
|
$ |
6,318,055 |
|
| Total operating expenses |
|
|
9,765,129 |
|
|
|
367,439 |
|
|
|
10,132,568 |
|
| Loss from operations |
|
|
(9,765,129 |
) |
|
|
(367,439 |
) |
|
|
(10,132,568 |
) |
| Net loss |
|
|
(9,769,844 |
) |
|
|
(367,439 |
) |
|
|
(10,137,283 |
) |
| Loss per share - basic and diluted |
|
|
(7.40 |
) |
|
|
(0.27 |
) |
|
|
(7.67 |
) |
| |
|
|
|
| Statement of Cash Flows |
|
For the year ended December 31,
2021 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(14,036,578 |
) |
|
$ |
(458,622 |
) |
|
$ |
(14,495,200 |
) |
| Accounts payable |
|
|
576,493 |
|
|
|
458,622 |
|
|
|
1,035,115 |
|
| Net cash used in operating activities |
|
|
(13,538,309 |
) |
|
|
– |
|
|
|
(13,538,309 |
) |
| |
|
|
|
Statement of Cash Flows
(Unaudited) |
|
For the three months ended March 31,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(2,784,339 |
) |
|
$ |
(367,439 |
) |
|
$ |
(3,151,778 |
) |
| Accounts payable |
|
|
(1,033,107 |
) |
|
|
367,439 |
|
|
|
(665,668 |
) |
| Net cash used in operating activities |
|
|
(3,077,199 |
) |
|
|
– |
|
|
|
(3,077,199 |
) |
| |
|
|
|
Statement of Cash Flows
(Unaudited) |
|
For the six months ended June 30,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(6,350,291 |
) |
|
$ |
(367,439 |
) |
|
$ |
(6,717,730 |
) |
| Accounts payable |
|
|
(1,031,937 |
) |
|
|
367,439 |
|
|
|
(664,498 |
) |
| Net cash used in operating activities |
|
|
(6,439,733 |
) |
|
|
– |
|
|
|
(6,439,733 |
) |
| |
|
|
|
Statement of Cash Flows
(Unaudited) |
|
For the nine months ended September 30,
2022 |
|
| |
|
As Reported |
|
|
Adjustment |
|
|
As Revised |
|
| |
|
|
|
|
|
|
|
|
|
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(9,769,844 |
) |
|
$ |
(367,439 |
) |
|
$ |
(10,137,283 |
) |
| Accounts payable |
|
|
(517,780 |
) |
|
|
367,439 |
|
|
|
(150,341 |
) |
| Net cash used in operating activities |
|
|
(8,252,492 |
) |
|
|
– |
|
|
|
(8,252,492 |
) |
|