Annual report pursuant to Section 13 and 15(d)

Restatement

v3.24.1
Restatement
 12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
Restatement

Note 2 - Restatement

 

The accompanying financial statements include the restatement of the Company’s previously filed balance sheet and the related statements of operations, changes in shareholder’s equity and cash flows for the year ended December 31, 2022.

 

In connection with the preparation of the Company’s condensed 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 statements of operations.

 

The categories of misstatements and their impact on previously reported financial statements for the 2022 annual period are described below:

 

Liquidated damages: The recognition, measurement and presentation and disclosure related to the liquidated damages provisions contained in the Registration Rights Agreements of certain of the Company’s equity offerings.

 

In addition to the restatement of the financial statements, certain information in Note 6 to the financial statements has been restated to reflect the corrections of misstatements discussed above as well as to add disclosure language as appropriate.

 

The financial statement misstatements reflected in previously issued financial statements did not impact cash flows from operations, investing, or financing activities in the Company’s statements of cash flows for any period previously presented.

 

Comparison of restated financial statements to financial statements as previously reported

 

The following tables compare the Company’s previously issued Balance Sheet and Statements of Operations as of and for the year ended December 31, 2022 to the corresponding restated financial statements for the respective year.

 

 

The restated balance sheet and statements of operations as of and for the year ended December 31, 2022 are as follows:

 

THUMZUP MEDIA CORPORATION

BALANCE SHEETS

 

    December 31, 2022     Restatement Adjustment     December 31, 2022  
    (As Reported)           (As Restated)  
ASSETS                        
Current assets:                        
Cash   $ 1,155,343     $ -     $ 1,155,343  
Prepaid expenses     2,903       -       2,903  
Total current assets     1,158,246       -       1,158,246  
                         
Property and equipment, net     2,553       -       2,553  
                         
Total assets   $ 1,160,799     $ -     $ 1,160,799  
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY                        
                         
Current liabilities:                        
Accounts payable and accrued expenses   $ 91,359     $ -     $ 91,359  
Liquidated damages and accrued interest     -       282,916       282,916  
Total current liabilities     91,359       282,916       374,275  
                         
Total liabilities     91,359       282,916       374,275  
                         
Commitments and contingencies     -       -       -  
                         
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; 125,865 shares issued and outstanding     126       -       126  
                         
Common stock, $0.001 par value, 250,000,000 shares authorized; 7,108,336 shares issued and outstanding     7,108       -       7,108  
Additional paid in capital     3,179,913       -       3,179,913  
Subscription receivable     (33,000 )     -       (33,000 )
Accumulated deficit     (2,084,707 )     (282,916 )     (2,367,623 )
Total stockholders’ equity     1,069,440       (282,916 )     786,524  
                         
Total liabilities and stockholders’ equity   $ 1,160,799     $ -     $ 1,160,799  

 

The accompanying notes are an integral part of these financial statements.

 

 

THUMZUP MEDIA CORPORATION

STATEMENTS OF OPERATIONS

 

   

For the

Year Ended

December 31, 2022

     Restatement Adjustment    

For the

Year Ended

December 31, 2022

  
    (As Reported)           (As Restated)  
Revenues   $ 2,421     $ -     $ 2,421  
                         
Operating Expenses:                        
Cost of revenues     439       -       439  
Sales and marketing     224,088       -       224,088  
Research and development     567,408       -       567,408  
General and administrative     418,940       -       418,940  
Depreciation and amortization     2,160       -       2,160  
Total Operating Expenses     1,213,035       -       1,213,035  
                         
Loss From Operations     (1,210,614 )     -       (1,210,614 )
                         
Other Income (Expense):                        
Expense for liquidated damages     -       (268,202 )     (268,202 )
Interest expense     (11,151 )     (14,714 )     (25,865 )
Total Other Income (Expense)     (11,151 )     (282,916 )     (294,067 )
                         
Net Loss Before Income Taxes     (1,221,765 )     (282,916 )     (1,504,681 )
                         
Provision for Income Taxes (Benefit)     -       -       -  
                         
Net Loss     (1,221,765 )     (282,916 )     (1,504,681 )
                         
Net Income (Loss) Available to Common Stockholders   $ (1,221,765 )   $ (282,916 )   $ (1,504,681 )
                         
Net Income (Loss) Per Common Share:                        
Basic   $ (0.20 )   $ (0.04 )   $ (0.24 )
Diluted   $ (0.20 )   $ (0.04 )   $ (0.24 )
                         
Weighted Average Common Shares Outstanding:                        
Basic     6,215,753               6,215,753  
Diluted     6,215,753               6,215,753