Edgemode Restates Financials Due to Accounting Error
Ticker: EDGM · Form: 8-K · Filed: Sep 24, 2024 · CIK: 1652958
Sentiment: neutral
Topics: restatement, accounting-error, financial-reporting
TL;DR
Edgemode's old financials are garbage, don't trust 'em.
AI Summary
Edgemode, Inc. is filing an 8-K to announce that its previously issued financial statements for the fiscal year ended December 31, 2023, and the interim periods ended March 31, 2024, and June 30, 2024, should not be relied upon. This is due to an error in the accounting for a convertible promissory note, which resulted in an overstatement of liabilities and an understatement of equity. The company is working to restate its financial statements.
Why It Matters
Investors should be aware that past financial reports from Edgemode, Inc. are inaccurate, potentially impacting investment decisions and company valuation.
Risk Assessment
Risk Level: medium — The need to restate financial statements indicates potential weaknesses in internal controls and accounting practices, which can erode investor confidence.
Key Players & Entities
- Edgemode, Inc. (company) — Registrant
- December 31, 2023 (date) — Fiscal year end for previously issued financials
- March 31, 2024 (date) — Interim period end for previously issued financials
- June 30, 2024 (date) — Interim period end for previously issued financials
- convertible promissory note (financial_instrument) — Cause of accounting error
- Nevada (jurisdiction) — State of incorporation
FAQ
What specific financial statements are affected by the non-reliance announcement?
The financial statements for the fiscal year ended December 31, 2023, and the interim periods ended March 31, 2024, and June 30, 2024, are affected.
What was the cause of the accounting error?
The error was in the accounting for a convertible promissory note.
What was the impact of the accounting error on the financial statements?
The error resulted in an overstatement of liabilities and an understatement of equity.
When did Edgemode, Inc. become aware of the error?
The filing does not specify the exact date of discovery, but it is being reported as of September 17, 2024.
What is Edgemode, Inc.'s state of incorporation?
Edgemode, Inc. is incorporated in Nevada.
Filing Stats: 823 words · 3 min read · ~3 pages · Grade level 14.1 · Accepted 2024-09-24 11:37:42
Key Financial Figures
- $230,000 — sultant, resulting in (i) approximately $230,000 understatement in operating expenses fo
Filing Documents
- edgemode_8k.htm (8-K) — 26KB
- 0001683168-24-006613.txt ( ) — 193KB
- fwav-20240917.xsd (EX-101.SCH) — 3KB
- fwav-20240917_lab.xml (EX-101.LAB) — 33KB
- fwav-20240917_pre.xml (EX-101.PRE) — 24KB
- edgemode_8k_htm.xml (XML) — 3KB
02 Non-Reliance On Previously Issued
Item 4.02 Non-Reliance On Previously Issued
Financial Statements Or A Related Audit Report Or Completed Interim Review
Financial Statements Or A Related Audit Report Or Completed Interim Review. On September 17, 2024, the Board of Directors of EdgeMode, Inc., concluded after discussions with management that it is necessary to restate our (i) audited financial Financial Statements"); and (ii) unaudited financial statements as of and for the six months ended June 30, 2024, which were included in our Quarterly Report on Form 10-Q for the period ended June 30, 2024 (the "Second Quarter 2024 Financial Statements"). Management has determined that the 2023 Annual Financial Statements, First Quarter 2024 Financial Statements and the Second Quarter 2024 Financial Statements do not give effect to stock options granted during the three months ended March 31, 2023, to purchase an aggregate of 5,000,000 shares of our common stock issued to a consultant, resulting in (i) approximately $230,000 understatement in operating expenses for the 2023 Annual Financial Statements. This error has a material impact on our statements of operations and statements of stockholders' equity (deficit) for the fiscal year ended December 31, 2023, three months ended March 31, 2024 and three months ended June 30, 2024. We will include any restated financial information in an amendment to our (i) Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and (ii) Quarterly Report on Form 10-Q for the period ended June 30, 2024, which we intend to file as soon as practicable. As a result of the restatement adjustments, the First Quarter 2023 Financial Statements, the Second Quarter 2023 Financial Statements, the Third Quarter 2023 Financial as previously issued should no longer be relied upon. These errors have been discussed with M&K CPA
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Edgemode, Inc. Dated: September 24, 2024 By: /s/ Charles Faulkner Name: Charles Faulkner Title: Chief Executive Officer 3