| Schedule of Adjustments to Income Tax Expense and Selling, General, & Administrative Expenses |
In accordance with ASC Topic 250-10 "Accounting Changes and Error Corrections", the periods presented below have been retrospectively adjusted to reflect the changes to income tax expense and selling, general, and administrative expenses. The effect of the adjustment on the line items within the Company’s unaudited interim condensed consolidated statements of operations for the three and nine months ended September 30, 2023 is as follows:
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Prior Year's Line item |
As Previously Restated |
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Amount Reclassified |
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As Adjusted |
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Three Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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Three Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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Three Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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Selling, general and administrative expenses |
$ |
18,917 |
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$ |
58,997 |
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$ |
(3,102) |
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$ |
(7,394) |
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$ |
15,815 |
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$ |
51,603 |
Income tax expense |
$ |
3,311 |
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$ |
12,552 |
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$ |
3,102 |
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$ |
7,394 |
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$ |
6,413 |
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$ |
19,946 |
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| Summary of Effects of the Adjustment on the Line items Within Consolidated Financial Statements |
The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated statement of operations for the three months ended September 30, 2023 are as follows:
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Three Months Ended September 30, 2023 |
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As reported |
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Adjustment |
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Restated |
Costs and expenses applicable to revenues |
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$ |
(25,463) |
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$ |
(4,079) |
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$ |
(29,542) |
Gross profit |
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17,427 |
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(4,079) |
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13,348 |
Loss from operations |
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(7,555) |
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(4,079) |
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(11,634) |
Loss before income tax |
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(11,792) |
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(4,079) |
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(15,871) |
Income tax expense |
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3,780 |
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(469) |
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3,311 |
Net loss |
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(15,572) |
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(3,610) |
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(19,182) |
The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated statement of operations for the nine months ended September 30, 2023 are as follows:
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Nine Months Ended September 30, 2023 |
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As reported |
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Adjustment |
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Restated |
Costs and expenses applicable to revenues |
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$ |
(67,029) |
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$ |
(4,079) |
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$ |
(71,108) |
Gross profit |
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51,329 |
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(4,079) |
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47,250 |
Loss from operations |
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(27,017) |
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(4,079) |
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(31,096) |
Loss before income tax |
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(41,295) |
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(4,079) |
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(45,374) |
Income tax expense |
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13,021 |
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(469) |
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12,552 |
Net loss |
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(54,316) |
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(3,610) |
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(57,926) |
The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated statement of changes in shareholders' deficit as of September 30, 2023 are as follows:
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September 30, 2023 |
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As reported |
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Adjustment |
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Restated |
Accumulated deficit – Balance September 30, 2023 |
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$ |
(1,305,339) |
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$ |
(3,610) |
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$ |
(1,308,949) |
Total shareholders’ deficit – Balance September 30, 2023 |
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(40,029) |
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(3,610) |
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(43,639) |
The effect of the restatement on the line items within the Company’s unaudited interim condensed consolidated statement of cash flows for the nine months ended September 30, 2023 are as follows:
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Nine Months Ended, September 30, 2023 |
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As reported |
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Adjustment |
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Restated |
CASH FLOW FROM OPERATING ACTIVITIES |
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Net loss |
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$ |
(54,316) |
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$ |
(3,610) |
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$ |
(57,926) |
Adjustments to reconcile net loss to net cash provided by (used in) operations: |
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Change in operating assets and liabilities |
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17,965 |
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3,610 |
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21,575 |
Inventory |
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(3,490) |
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4,079 |
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589 |
Accrued and other liabilities |
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18,275 |
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(469) |
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17,806 |
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| Schedule of Effects of Reclassification Adjustment of Consolidated Statements of Operations and Cash Flows Line Items |
The following table summarizes the effects of reclassification adjustments on the line items within the Company’s unaudited interim condensed consolidated statements of operations:
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Prior Year's Line item |
As Previously Restated |
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Amount Reclassified |
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As Reclassified |
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Three Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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Three Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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Three Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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(Recoveries), write-downs, and other charges, net |
$ |
(69) |
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$ |
467 |
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$ |
— |
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$ |
(512) |
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$ |
(69) |
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$ |
(45) |
Interest and other income |
$ |
(712) |
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$ |
(1,589) |
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$ |
— |
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$ |
512 |
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$ |
(712) |
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$ |
(1,077) |
The following table summarizes the effects of reclassification adjustment on the line items within the Company’s unaudited interim condensed consolidated statements of cash flows:
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Prior Year's Line item |
As Previously Restated |
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Amount Reclassified |
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As Reclassified |
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Nine Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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Nine Months Ended September 30, 2023 |
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Accounts payable |
$ |
5,236 |
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$ |
580 |
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$ |
5,816 |
Change in operating assets and liabilities: |
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21,575 |
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580 |
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22,155 |
Investment in associates |
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— |
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(580) |
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(580) |
Net cash used in investing activities |
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(3,683) |
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(580) |
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(4,263) |
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