| Restatement of Quarterly Financial Information |
Note 19 – Restatement of Quarterly Financial Information (Restated and Unaudited)
In connection with the restatement explained in Note 18, the Company has restated herein its consolidated financial statements as of December 31, 2022, March 31, 2023, and June 30, 2023 and for the three months ended December 31, 2022, the three and six months ended March 31, 2023, and the three and nine months ended June 30, 2023 in accordance with ASC Topic 250, Accounting Changes and Error Corrections, for the matters discussed above.
The effects of the error corrections on the unaudited condensed consolidated balance sheets are as follows:
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As of December 31, 2022 |
|
As Reported |
|
Adjustment |
|
As Restated |
Assets |
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|
|
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|
Prepaid research and development costs |
$ |
10,416,934 |
|
$ |
(2,508,816) |
|
$ |
7,908,118 |
Total current assets |
$ |
73,008,645 |
|
$ |
(2,508,816) |
|
$ |
70,499,829 |
Total assets |
$ |
103,782,452 |
|
$ |
(2,508,816) |
|
$ |
101,273,636 |
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Liabilities and Stockholders' Equity |
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Accrued research and development costs |
$ |
12,678,176 |
|
$ |
(2,600,719) |
|
$ |
10,077,457 |
Total current liabilities |
$ |
40,080,447 |
|
$ |
(2,600,719) |
|
$ |
37,479,728 |
Total liabilities |
$ |
54,683,594 |
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$ |
(2,600,719) |
|
$ |
52,082,875 |
Accumulated deficit |
$ |
(202,416,377) |
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$ |
91,903 |
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$ |
(202,324,474) |
Total stockholders' equity |
$ |
49,098,858 |
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$ |
91,903 |
|
$ |
49,190,761 |
Total liabilities and stockholders' equity |
$ |
103,782,452 |
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$ |
(2,508,816) |
|
$ |
101,273,636 |
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As of March 31, 2023 |
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As Reported |
|
Adjustment |
|
As Restated |
Assets |
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Prepaid research and development costs |
$ |
5,787,224 |
|
$ |
83,781 |
|
$ |
5,871,005 |
Total current assets |
$ |
43,288,277 |
|
$ |
83,781 |
|
$ |
43,372,058 |
Total assets |
$ |
70,253,570 |
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$ |
83,781 |
|
$ |
70,337,351 |
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Liabilities and Stockholders' Equity |
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Accrued research and development costs |
$ |
13,786,241 |
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$ |
(5,012,054) |
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$ |
8,774,187 |
Total current liabilities |
$ |
39,259,798 |
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$ |
(5,012,054) |
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$ |
34,247,744 |
Total liabilities |
$ |
53,537,668 |
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$ |
(5,012,054) |
|
$ |
48,525,614 |
Accumulated deficit |
$ |
(241,209,283) |
|
$ |
5,095,835 |
|
$ |
(236,113,448) |
Total stockholders' equity |
$ |
16,715,902 |
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$ |
5,095,835 |
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$ |
21,811,737 |
Total liabilities and stockholders' equity |
$ |
70,253,570 |
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$ |
83,781 |
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$ |
70,337,351 |
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As of June 30, 2023 |
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As Reported |
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Adjustment |
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As Restated |
Assets |
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Prepaid research and development costs |
$ |
5,532,410 |
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$ |
(2,016,947) |
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$ |
3,515,463 |
Total current assets |
$ |
34,684,629 |
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$ |
(2,016,947) |
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$ |
32,667,682 |
Total assets |
$ |
62,221,029 |
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$ |
(2,016,947) |
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$ |
60,204,082 |
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Liabilities and Stockholders' Equity |
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Accounts payable |
$ |
18,118,594 |
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$ |
(2,174,590) |
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$ |
15,944,004 |
Accrued research and development costs |
$ |
1,112,788 |
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$ |
924,273 |
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$ |
2,037,061 |
Total current liabilities |
$ |
27,686,180 |
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$ |
(1,250,317) |
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$ |
26,435,863 |
Total liabilities |
$ |
40,808,163 |
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$ |
(1,250,317) |
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$ |
39,557,846 |
Accumulated deficit |
$ |
(247,869,464) |
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$ |
(766,630) |
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$ |
(248,636,094) |
Total stockholders' equity |
$ |
21,412,866 |
|
$ |
(766,630) |
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$ |
20,646,236 |
Total liabilities and stockholders' equity |
$ |
62,221,029 |
|
$ |
(2,016,947) |
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$ |
60,204,082 |
The effects of the error corrections on the unaudited condensed consolidated statements of operations are as follows:
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Three Months Ended December 31, 2022 |
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As Reported |
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Adjustment |
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As Restated |
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Research and development |
$ |
18,744,349 |
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$ |
1,866,778 |
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$ |
20,611,127 |
Total operating expenses |
$ |
36,290,214 |
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$ |
1,866,778 |
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$ |
38,156,992 |
Operating loss |
$ |
(35,588,159) |
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$ |
(1,866,778) |
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$ |
(37,454,937) |
Loss before income taxes |
$ |
(36,910,457) |
|
$ |
(1,866,778) |
|
$ |
(38,777,235) |
Net loss |
$ |
(36,842,179) |
|
$ |
(1,866,778) |
|
$ |
(38,708,957) |
Net loss per basic and diluted common shares outstanding |
$ |
(0.46) |
|
$ |
(0.02) |
|
$ |
(0.48) |
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Three Months Ended March 31, 2023 |
|
As Reported |
|
Adjustment |
|
As Restated |
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Research and development |
$ |
22,864,633 |
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$ |
(5,003,932) |
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$ |
17,860,701 |
Total operating expenses |
$ |
43,510,841 |
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$ |
(5,003,932) |
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$ |
38,506,909 |
Operating loss |
$ |
(39,418,766) |
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$ |
5,003,932 |
|
$ |
(34,414,834) |
Loss before income taxes |
$ |
(38,859,465) |
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$ |
5,003,932 |
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$ |
(33,855,533) |
Net loss |
$ |
(38,792,906) |
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$ |
5,003,932 |
|
$ |
(33,788,974) |
Net loss per basic and diluted common shares outstanding |
$ |
(0.48) |
|
$ |
0.06 |
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$ |
(0.42) |
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Six Months Ended March 31, 2023 |
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As Reported |
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Adjustment |
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As Restated |
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Research and development |
$ |
41,608,982 |
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$ |
(3,137,154) |
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$ |
38,471,828 |
Total operating expenses |
$ |
79,801,055 |
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$ |
(3,137,154) |
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$ |
76,663,901 |
Operating loss |
$ |
(75,006,925) |
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$ |
3,137,154 |
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$ |
(71,869,771) |
Loss before income taxes |
$ |
(75,769,922) |
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$ |
3,137,154 |
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$ |
(72,632,768) |
Net loss |
$ |
(75,635,085) |
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$ |
3,137,154 |
|
$ |
(72,497,931) |
Net loss per basic and diluted common shares outstanding |
$ |
(0.94) |
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$ |
0.04 |
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$ |
(0.90) |
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Three Months Ended June 30, 2023 |
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As Reported |
|
Adjustment |
|
As Restated |
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Research and development |
$ |
2,925,171 |
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$ |
5,862,465 |
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$ |
8,787,636 |
Total operating expenses |
$ |
13,828,087 |
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$ |
5,862,465 |
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$ |
19,690,552 |
Operating loss |
$ |
(7,873,846) |
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$ |
(5,862,465) |
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$ |
(13,736,311) |
Loss before income taxes |
$ |
(6,602,630) |
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$ |
(5,862,465) |
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$ |
(12,465,095) |
Net loss |
$ |
(6,660,181) |
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$ |
(5,862,465) |
|
$ |
(12,522,646) |
Net loss per basic and diluted common shares outstanding |
$ |
(0.08) |
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$ |
(0.06) |
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$ |
(0.14) |
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Nine Months Ended June 30, 2023 |
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As Reported |
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Adjustment |
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As Restated |
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Research and development |
$ |
44,534,153 |
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$ |
2,725,311 |
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$ |
47,259,464 |
Total operating expenses |
$ |
93,629,142 |
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$ |
2,725,311 |
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$ |
96,354,453 |
Operating loss |
$ |
(82,880,771) |
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$ |
(2,725,311) |
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$ |
(85,606,082) |
Loss before income taxes |
$ |
(82,372,552) |
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$ |
(2,725,311) |
|
$ |
(85,097,863) |
Net loss |
$ |
(82,295,266) |
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$ |
(2,725,311) |
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$ |
(85,020,577) |
Net loss per basic and diluted common shares outstanding |
$ |
(0.99) |
|
$ |
(0.03) |
|
$ |
(1.02) |
With respect to the statements of cash flows, all adjustments are to line items within operating cash flows and there was no impact to the subtotal of operating, investing, or financial cash flows for each period. The effect of the error corrections on the unaudited condensed consolidated statements of cash flows are as follows:
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Three Months Ended December 31, 2022 |
|
As Reported |
|
Adjustment |
|
As Restated |
OPERATING ACTIVITIES |
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Net loss |
$ |
(36,842,179) |
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$ |
(1,866,778) |
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$ |
(38,708,957) |
(Increase) decrease in prepaid expenses and other assets |
$ |
(1,084,432) |
|
$ |
1,741,249 |
|
$ |
656,817 |
Increase in accrued expenses and other current liabilities |
$ |
8,241,691 |
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$ |
125,529 |
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$ |
8,367,220 |
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Six Months Ended March 31, 2023 |
|
As Reported |
|
Adjustment |
|
As Restated |
OPERATING ACTIVITIES |
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Net loss |
$ |
(75,635,085) |
|
$ |
3,137,154 |
|
$ |
(72,497,931) |
Decrease in prepaid expenses and other assets |
$ |
4,480,405 |
|
$ |
(851,348) |
|
$ |
3,629,057 |
Increase (decrease) in accrued expenses and other current liabilities |
$ |
1,374,233 |
|
$ |
(2,285,806) |
|
$ |
(911,573) |
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|
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Nine Months Ended June 30, 2023 |
|
As Reported |
|
Adjustment |
|
As Restated |
OPERATING ACTIVITIES |
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Net loss |
$ |
(82,295,266) |
|
$ |
(2,725,311) |
|
$ |
(85,020,577) |
Decrease in prepaid expenses and other assets |
$ |
5,780,913 |
|
$ |
1,249,380 |
|
$ |
7,030,293 |
Decrease in accounts payable |
$ |
(3,884,800) |
|
$ |
(2,174,590) |
|
$ |
(6,059,390) |
Decrease in accrued expenses and other current liabilities |
$ |
(10,358,135) |
|
$ |
3,650,521 |
|
$ |
(6,707,614) |
|