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- Material Weakness (worsened) — Material weakness that baseline reported as remediated is now disclosed as NOT remediated, with expanded scope covering equity-linked instruments and derivative accounting.
- Restatement (new) — Company restated multiple periods (FY2024 through Q1 FY2026) for material errors in warrant accounting, stock compensation, SEPA transactions, revenue recognition, and asset classification.
- Securities Litigation (new) — Federal securities class action filed February 2026 alleging violations related to January 27, 2026 press release; case at early stage with unspecified damages sought.
RR restates Q1 FY2026 results: gross margin collapses to 2.8% from 64.8% on warrant, stock-comp errors
Filed August 7, 2026 · Period ending December 31, 2025 · Compared to 10-Q Feb 12, 2026 · ~2 min read
Key Financials
SEC XBRLPeriod financials are unchanged from the original 10-Q (same period end Dec 31, 2025). This amendment updates disclosure only — see the diff below.
Key Changes
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high
Gross margin collapsed from 64.8% to 2.8% (-6200 bp) as cost of revenue surged 135% to $1,041k; revenue fell 14.7% to $1,071k. Restatement corrects inventory timing and cost classification errors.
MD&A: Gross Profit verify on EDGAR → -
high
Material weakness previously reported as remediated is now disclosed as NOT remediated; scope expanded to equity instruments and derivative accounting. Enhanced controls not yet tested for effectiveness.
Controls & Procedures verify on EDGAR → -
high
Restatement corrects warrant accounting (liability vs. equity classification), stock-based compensation (employee RSAs and non-employee warrants), SEPA transactions, and revenue recognition across FY2024–Q1 FY2026.
Explanatory Note / Notes view on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 19, 2026 · How we verify