Quarterly report pursuant to Section 13 or 15(d)

Restatement

v3.23.2
Restatement
 3 Months Ended
Mar. 31, 2023
Restatement  
Restatement

Note 2 - Restatement

 

In connection with the preparation of the Company’s condensed consolidated interim financial statements as of and for the fiscal quarter ended June 30, 2023, the Company identified inadvertent errors in the accounting for certain equity transactions, specifically the liquidated damages provisions contained in certain of the Company’s equity offerings. Upon further evaluation, the Company determined that the liquidated damages should have been accounted for as liabilities and losses for the liquidated damages recorded in the Company’s consolidated statements of operations.

 

The categories of misstatements and their impact on previously reported consolidated financial statements for the period ended March 31, 2023 are described below:

 

Liquidated damages: The recognition, measurement and presentation and disclosure related to the liquidated damages provisions in contained in the Registration Rights Agreements of certain of the Company’s equity offerings, in the Form of the Registration Rights Agreement initially filed as Exhibit 10.3, of the S-1 filed on April 29, 2021, as amended.

 

 

In addition to the restatement of the financial statements, certain information within the following notes to the financial statements have been restated to reflect the corrections of misstatements discussed above as well as to add disclosure language as appropriate:

 

THUMZUP MEDIA CORPORATION

BALANCE SHEETS

 

    March 31, 2023     Restatement Adjustment     March 31, 2023  
      (Unaudited)               (Unaudited)  
      (As Reported)               (As Restated)  
ASSETS                        
Current assets:                        
Cash   $ 528,330     $ -     $ 528,330  
Prepaid expenses     2,903       -       2,903  
Total current assets     531,233       -       531,233  
                         
Property and equipment, net     2,013       -       2,013  
Capitalized software costs, net     50,421       -       50,421  
                         
Total assets   $ 583,667     $ -     $ 583,667  
                         
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
                         
Current liabilities:                        
Accounts payable and accrued expenses   $ 69,532     $ -     $ 69,532  
Liquidated damages and accrued interest     -       471,402       471,402  
Total current liabilities     69,532       471,402       540,934  
                         
Total liabilities     69,532       471,402       540,934  
                         
Commitments and contingencies (See Note 5)                        
                         
Stockholders’ equity:                        
Preferred stock - 20,000,000 shares authorized:                        
Preferred stock - Series A, $0.001 par value, $45,000 stated value, 1,000,000 shares authorized; 128,312 shares issued and outstanding     128       126       128  
Common stock, $0.001 par value, 250,000,000 shares authorized; 7,126,336 shares issued and outstanding     7,126       7,108       7,126  
Additional paid in capital     3,314,340       3,179,913       3,314,340  
Subscriptions receivable     -       (33,000 )     -  
Accumulated deficit     (2,807,459 )     (2,084,707 )     (3,278,861 )
Total stockholders’ equity     514,135       1,069,440       42,733  
                         
Total liabilities and stockholders’ equity   $ 583,667     $ 1,540,842     $ 583,667  

 

 

THUMZUP MEDIA CORPORATION

STATEMENTS OF OPERATIONS

(Unaudited)

 

    For the Three Months Ended March 31, 2023     Restatement Adjustment     For the Three Months Ended March 31, 2023  
    (As Reported)           (As Restated)  
                   
Revenues   $ 1,770     $ -     $ 1,770  
                         
Operating Expenses:                        
Cost of revenues     116       -       116  
Sales and marketing     268,717       -       268,717  
Research and development     125,881       -       125,881  
General and administrative     324,954       -       324,954  
Depreciation and amortization     2,407       -       2,407  
Total Operating Expenses     722,075       -       722,075  
                         
Loss From Operations     (720,305 )     -       (720,305 )
                         
Other Income (Expense):                        
Liquidated damages expense     -       (176,117 )     (176,117 )
Interest expense     -       (12,368 )     (12,368 )
Total Other Income (Expense)     -       (188,485 )     (188,485 )
                         
Net Loss Before Income Taxes     (720,305 )     (188,485 )     (908,790 )
                         
Provision for Income Taxes (Benefit)     -       -       -  
                         
Net Loss   $ (720,305 )   $ (188,485 )   $ (908,790 )
Dividends on preferred stock     (2,447 )     -       (2,447 )
                         
Net Loss Attributable to Common Stockholders   $ (722,752 )   $ (188,485 )   $ (911,237 )
                         
Net Income (Loss) Per Common Share:                        
Basic   $ (0.10 )   $ (0.03 )   $ (0.13 )
Diluted   $ (0.10 )   $ (0.03 )   $ (0.13 )
                         
Weighted Average Common Shares Outstanding:                        
Basic     7,118,933               7,118,933  
Diluted     7,118,933               7,118,933