| Restatement of Previously Issued Financial Statements |
4.
Restatement of Previously Issued Financial Statements
In
connection with an improved accounts payable estimation process and the preparation of the Company’s financial statements for
the fiscal year ended December 31, 2025, the Company discovered an error related to the prior year. The Company had recorded
expenses of $1.6
million that were related to 2024 that were not accounted for as accounts payable related to research and development expenses. The
error became material due to the large global Phase III clinical trial underway and the unexpectedly large increase in screening and patient
enrollment in 2024 and 2025. This rapid expansion led to unanticipated delays in receiving invoices from clinical
trial partners in Europe. The restatement results in an increase of accounts payable of $1.6 million
for the year ended December 31, 2024 and increase in research and development expenses for the year ended December 31, 2024 and a corresponding
decrease in research and development expenses for the March 31, 2025, June 30, 2025, and September 30, 2025 and year ended December 31,
2025 financial statements.
In
addition, the Company reclassified cash compensation and options expense between research and development and general and
administration in 2024 and 2025, which does not contribute to the change in total operating expenses for any period and follows the
nature of the increased clinical trial activities of employees, management, directors, and consultants. The reclassification of cash
compensation and options expense between research and development and general and administration results in an increase to research
and development expense and a decrease to general and administrative expense.
There were no impacts to net cash used in operating activities for any period. The
impacts of the restatement are summarized below in Section 4a for 2024 and Section 4b for 2025 financials.
4a. Restatement to December 31, 2024
Financials
Schedule
Impacts of the Restatement are Summarized Below
| |
|
As Previously
Reported |
|
|
Impact of Restatement |
|
|
As
Restated
|
|
| |
|
For the Year Ended December 31,
2024 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| Research and development(1) |
|
$ |
12,952,029 |
|
|
$ |
2,528,188 |
|
|
$ |
15,480,217 |
|
| General and administrative(1) |
|
|
3,059,788 |
|
|
|
(902,778 |
) |
|
|
2,157,010 |
|
| Total operating expenses |
|
|
16,011,817 |
|
|
|
1,625,410 |
|
|
|
17,637,227 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(15,788,809 |
) |
|
|
(1,625,410 |
) |
|
|
(17,414,219 |
) |
| Net loss per common share, basic and diluted |
|
|
(1.21 |
) |
|
|
(0.13 |
) |
|
|
(1.34 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
(7,266,543 |
) |
|
|
— |
|
|
|
(7,266,543 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
1,559,733 |
|
|
|
1,625,410 |
|
|
|
3,185,143 |
|
| Total liabilities and stockholders’ equity |
|
$ |
4,093,769 |
|
|
$ |
— |
|
|
$ |
4,093,769 |
|
| (1) |
Includes
reclassification of cash compensation and options expense between research and development and general and administration in 2024,
which does not contribute to the change in total operating expenses for any period. |
All
referenced amounts for prior periods in these financial statements and the notes herein reflect the balances and amounts on a
restated basis.
4b.
Restatement to March 31, 2025, June 30, 2025, and September 30, 2025 Financials
GREENWICH
LIFESCIENCES, INC.
NOTES
TO FINANCIAL STATEMENTS
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| |
|
Three Months Ended March 31, 2025 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| Research and development(1) |
|
$ |
2,601,122 |
|
|
$ |
(329,974 |
) |
|
$ |
2,271,148 |
|
| General and administrative(1) |
|
|
681,210 |
|
|
|
(183,608 |
) |
|
|
497,602 |
|
| Total operating expenses |
|
|
3,282,332 |
|
|
|
(513,582 |
) |
|
|
2,768,750 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(3,258,362 |
) |
|
|
513,582 |
|
|
|
(2,744,780 |
) |
| Net loss per common share, basic and diluted |
|
|
(0.25 |
) |
|
|
0.04 |
|
|
|
(0.21 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
(1,834,454 |
) |
|
|
— |
|
|
|
(1,834,454 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
1,438,524 |
|
|
|
1,111,828 |
|
|
|
2,550,352 |
|
| Total liabilities and stockholders’ equity |
|
$ |
2,750,835 |
|
|
$ |
— |
|
|
$ |
2,750,835 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| |
|
Three Months Ended June 30, 2025 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| Research and development(1) |
|
$ |
3,507,906 |
|
|
$ |
(91,429 |
) |
|
$ |
3,416,477 |
|
| General and administrative(1) |
|
|
538,047 |
|
|
|
(185,209 |
) |
|
|
352,838 |
|
| Total operating expenses |
|
|
4,045,953 |
|
|
|
(276,638 |
) |
|
|
3,769,315 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(4,025,278 |
) |
|
|
276,638 |
|
|
|
(3,748,640 |
) |
| Net loss per common share, basic and diluted |
|
|
(0.30 |
) |
|
|
0.02 |
|
|
|
(0.28 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
N/A |
|
|
|
- |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
1,685,609 |
|
|
|
835,190 |
|
|
|
2,520,799 |
|
| Total liabilities and stockholders’ equity |
|
$ |
3,125,101 |
|
|
$ |
— |
|
|
$ |
3,125,101 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| |
|
Six Months Ended June 30, 2025 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| Research and development(1) |
|
$ |
6,109,028 |
|
|
$ |
(421,403 |
) |
|
$ |
5,687,625 |
|
| General and administrative(1) |
|
|
1,219,257 |
|
|
|
(368,817 |
) |
|
|
850,440 |
|
| Total operating expenses |
|
|
7,328,285 |
|
|
|
(790,220 |
) |
|
|
6,538,065 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(7,283,640 |
) |
|
|
790,220 |
|
|
|
(6,493,420 |
) |
| Net loss per common share, basic and diluted |
|
|
(0.55 |
) |
|
|
0.06 |
|
|
|
(0.49 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
(4,067,557 |
) |
|
|
— |
|
|
|
(4,067,557 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
1,685,609 |
|
|
|
835,190 |
|
|
|
2,520,799 |
|
| Total liabilities and stockholders’ equity |
|
$ |
3,125,101 |
|
|
$ |
— |
|
|
$ |
3,125,101 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| |
|
Three Months Ended September 30, 2025
|
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| Research and development(1) |
|
$ |
3,521,576 |
|
|
$ |
(254,436 |
) |
|
$ |
3,267,140 |
|
| General and administrative(1) |
|
|
653,066 |
|
|
|
(186,140 |
) |
|
|
466,926 |
|
| Total operating expenses |
|
|
4,174,642 |
|
|
|
(440,576 |
) |
|
|
3,734,066 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(4,151,845 |
) |
|
|
440,576 |
|
|
|
(3,711,269 |
) |
| Net loss per common share, basic and diluted |
|
|
(0.30 |
) |
|
|
0.03 |
|
|
|
(0.27 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
N/A |
|
|
|
- |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
1,622,001 |
|
|
|
394,614 |
|
|
|
2,016,615 |
|
| Total liabilities and stockholders’ equity |
|
$ |
3,806,978 |
|
|
$ |
— |
|
|
$ |
3,806,978 |
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| |
|
Nine Months Ended September 30, 2025
|
|
| |
|
As Previously
Reported |
|
|
Impact of
Restatement
|
|
|
As
Restated
|
|
| Research and development(1) |
|
$ |
9,630,604 |
|
|
$ |
(675,839 |
) |
|
$ |
8,954,765 |
|
| General and administrative(1) |
|
|
1,872,323 |
|
|
|
(554,957 |
) |
|
|
1,317,366 |
|
| Total operating expenses |
|
|
11,502,927 |
|
|
|
(1,230,796 |
) |
|
|
10,272,131 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(11,435,485 |
) |
|
|
1,230,796 |
|
|
|
(10,204,689 |
) |
| Net loss per common share, basic and diluted |
|
|
(0.85 |
) |
|
|
0.09 |
|
|
|
(0.76 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
(6,738,796 |
) |
|
|
— |
|
|
|
(6,738,796 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
1,622,001 |
|
|
|
394,614 |
|
|
|
2,016,615 |
|
| Total liabilities and stockholders’ equity |
|
$ |
3,806,978 |
|
|
$ |
— |
|
|
$ |
3,806,978 |
|
| (1) |
Includes
reclassification of cash compensation and options expense between research and development and general and administration in 2025, which
does not contribute to the change in total operating expenses for any period. |
All
referenced amounts for prior periods in these financial statements and the notes herein reflect the balances and amounts on a
restated basis.
GREENWICH
LIFESCIENCES, INC.
NOTES
TO FINANCIAL STATEMENTS
|