High Wire Networks Files 10-Q/A for Q2 2024

TL;DR

HWIN filed an amended Q2 report. Check financials.

AI Summary

High Wire Networks, Inc. filed an amendment (10-Q/A) on November 22, 2024, for the quarterly period ended June 30, 2024. The company, previously known as HWN, Inc. and Spectrum Global Solutions, Inc., is incorporated in Nevada and operates in the telephone communications sector.

Why It Matters

This filing provides updated financial information for High Wire Networks, Inc. for the second quarter of 2024, which is crucial for investors to assess the company's performance and financial health.

Risk Assessment

Risk Level: low — This is a routine amendment to a quarterly report, not indicating new material adverse events.

Key Players & Entities

• HIGH WIRE NETWORKS, INC. (company) — Registrant
• 000-53461 (company) — SEC File Number
• June 30, 2024 (date) — Quarterly period end date
• November 22, 2024 (date) — Filing date
• HWN, INC. (company) — Former company name
• Spectrum Global Solutions, Inc. (company) — Former company name
• 30 North Lincoln Street, Batavia, IL 60510 (address) — Business and mailing address

FAQ

Key Financial Figures

• $686,390 — e and six months ended June 30, 2024 of $686,390, with additional accounts payable of $5
• $536,906 — 90, with additional accounts payable of $536,906 and additional loans payable of $149,48
• $149,484 — 536,906 and additional loans payable of $149,484 outstanding as of that date. The Compan

Filing Documents

• ea0222061-10qa1_high.htm (10-Q/A) — 1402KB
• ea022206101ex31-1_high.htm (EX-31.1) — 10KB
• ea022206101ex31-2_high.htm (EX-31.2) — 9KB
• ea022206101ex32-1_high.htm (EX-32.1) — 3KB
• ea022206101ex32-2_high.htm (EX-32.2) — 3KB
• 0001213900-24-101608.txt ( ) — 9776KB
• hwni-20240630.xsd (EX-101.SCH) — 93KB
• hwni-20240630_cal.xml (EX-101.CAL) — 67KB
• hwni-20240630_def.xml (EX-101.DEF) — 460KB
• hwni-20240630_lab.xml (EX-101.LAB) — 775KB
• hwni-20240630_pre.xml (EX-101.PRE) — 478KB
• ea0222061-10qa1_high_htm.xml (XML) — 1354KB

Financial Statements

Financial Statements The Company is filing this Amendment No. 1 on Form 10-Q/A (the "Amendment") to restate the following items of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which was originally filed with the Securities and Exchange Commission on August 23, 2024 (the "Original Form 10-Q"): Item 1 of Part I "Financial Information" Item 2 of Part I "Financial Information" The Company has also updated the signature page, the certifications of its Chief Executive Officer and Chief Financial Officer in Exhibits 31.1, 31.2, 32.1, and 32.2, and its financial statements formatted in Extensible Business Reporting Language (XBRL). No other sections were affected, but for the convenience of the reader, the report on Form 10-Q/A restates in its entirety, as amended, the Company's Original Form 10-Q. The errors leading to this misstatement relate to the settlement agreements that took place during the quarter as discussed in the Loans Payable note which was accounted for under ASC 470-60 "Troubled debt restructuring. The Company did not properly account for the related fees owed to a consultant for negotiating the settlements. The effect of the errors is that the Company recorded an additional loss on settlement of debt for the three and six months ended June 30, 2024 of $686,390, with additional accounts payable of $536,906 and additional loans payable of $149,484 outstanding as of that date. The Company also reclassified certain operating expenses between general and administrative and salaries and wages which was unrelated to the errors. Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 3.

Quantitative and Qualitative Disclosures About Market

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 43

- OTHER INFORMATION

PART II - OTHER INFORMATION 44 Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 44

SIGNATURES

SIGNATURES 45 i PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements The unaudited interim condensed consolidated financial statements of our company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars, unless otherwise noted. High Wire Networks, Inc. Page Number Condensed consolidated balance sheets as of June 30, 2024 (unaudited) (as restated) and December 31, 2023 2 Condensed consolidated statements of operations for the six months ended June 30, 2024 (as restated) and 2023 (unaudited) (as restated) 3 Condensed consolidated statements of stockholders' equity (deficit) for the six months ended June 30, 2024 (as restated) and 2023 (unaudited) (as restated) 4 Condensed consolidated statements of cash flows for the six months ended June 30, 2024 (as restated) and 2023 (unaudited)(as restated) 5 Notes to unaudited condensed consolidated financial statements 6 1 High Wire Networks, Inc. Condensed consolidated balance sheets June 30, December 31, 2024 2023 (Unaudited) (As restated) ASSETS Current assets: Cash $ 4,185,310 $ 328,282 Accounts receivable, net of allowances of $ 71,647 and $ 81,359 , respectively, and unbilled revenue of $ 73,000 and $ 99,916 , respectively 1,374,335 670,388 Prepaid expenses and other current assets 213,795 117,030 Current assets of discontinued operations - 1,629,011 Total current assets 5,773,440 2,744,711 Property and equipment, net of accumulated depreciation of $ 604,055 and $ 477,763 , respectively 913,325 1,026,293 Goodwill 1,812,818 3,162,499 Intangible assets, net of accumulated amortization of $ 1,236,885 and $ 2,350,059 , respectively 3,202,861 3,620,256 Operating lease right-of-use assets 226,763 277,995 Total assets $ 11,929,207 $ 10,831,754 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable and accrued liabilities 6,222,904 5,189,996 Contract liabilities

Financial Statements

Financial Statements In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company's financial position and the results of its operations and its cash flows for the periods shown. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year. Basis of Presentation/Principles of Consolidation These unaudited condensed consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States. These unaudited condensed consolidated financial statements include the accounts of the Company as well as High Wire and its subsidiaries, SVC and OCL. All subsidiaries are wholly-owned. All inter-company balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, equity component of convertible debt, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience,

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View this 10-Q/A filing on SEC EDGAR