SCWorx, Corp. Quarterly report pursuant to Section 13 or 15(d)

Restatement of Financial Statements (Tables)

9 Months Ended

Sep. 30, 2020

	September 30,						December 31,
	2020						2019
ASSETS	(As Filed)			Adjustments			(As Restated)

Total assets	$	10,474,016		$	-		$	10,474,016

LIABILITIES AND STOCKHOLDERS’ EQUITY

Total liabilities		5,564,034			-			5,564,034

Stockholders’ equity:
Series A Convertible Preferred stock, $0.001 par value; 900,000 shares authorized; 89,872 and 578,567 shares issued and outstanding, respectively		90			-			90
Common stock, $0.001 par value; 45,000,000 shares authorized; 9,845,600 and 7,390,261 shares issued and outstanding, respectively		9,846			-			9,846
Additional paid-in capital		26,667,488	(1)		(1,338,303	)		25,329,185
Accumulated deficit		(21,779,442	)(1)		1,338,303			(20,441,139	)
Total stockholders’ equity		4,897,982			-			4,897,982

Total liabilities and stockholders’ equity	$	10,462,016		$	-		$	10,462,016

	Three months ended September 30, 2020						Three months ended September 30, 2020
	(As Filed)			Adjustments			(As Restated)


Revenue	$	1,171,399		$	-		$	1,171,399

Operating expenses:
Cost of revenues		956,203			-			956,203
General and administrative		3,573,946	(1)		(1,338,303	)		2,235,643
Total operating expenses		4,530,149			(1,338,303	)		3,191,846

Loss from operations		(3,358,750	)		1,338,303			(2,020,447	)

Other income (expenses):
Interest expense		-			-			-
Loss on settlemet of sccounts payable		(726,766	)		-			(726,766	)
Other income		-			-			-
Total other income (expense)		(726,766	)		-			(726,766	)

Net loss before income taxes		(4,085,516	)		1,338,303			(2,747,213	)

Provision for (benefit from) income taxes		-			-			-

Net loss	$	(4,085,516	)				$	(2,747,213	)

Net loss per share, basic and diluted	$	(0.42	)				$	(0.29	)

Weighted average common shares outstanding, basic and diluted		9,616,717						9,616,717

	Nine months ended September 30, 2020						Nine months ended September 30, 2020
	(As Filed)			Adjustments			(As Restated)


Revenue	$	3,739,798		$	-		$	3,739,798

Operating expenses:
Cost of revenues		2,739,737			-			2,739,737
General and administrative		8,372,491	(1)		(1,338,303	)		7,034,188
Total operating expenses		11,112,228			(1,338,303	)		9,773,925

Loss from operations		(7,372,430	)		1,338,303			(6,034,127	)

Other income (expenses):
Interest expense		-			-			-
Loss on settlemet of sccounts payable		(1,612,539	)		-			(1,612,539	)
Other income		-			-			-
Total other income (expense)		(1,612,539	)		-			(1,612,539	)

Net loss before income taxes		(8,984,969	)		1,338,303			(7,646,666	)

Provision for (benefit from) income taxes		-			-			-

Net loss	$	(8,984,969	)				$	(7,646,666	)

Net loss per share, basic and diluted	$	(1.03	)				$	(0.87	)

Weighted average common shares outstanding, basic and diluted		8,754,824						8,754,824

	Preferred Stock						Common stock				Additional paid-in			Accumulated
As Filed	Shares			$			Shares		$		capital			deficit			Total

Balances, June 30, 2020		94,872		$	95			9,490,582	$	9,491	$	23,863,806		$	(17,693,926	)	$	6,179,466
																		-
Conversion of Series A Convertible Preferred Stock into common stock		(5,000	)		(5	)		13,158		13		(8	)		-			-
Settlement of Accounts Payable		-			-			157,000		157		847,043			-			847,200
Shares issued in cashless exercise of warrants		-			-			68,715		69		(69	)		-			-
Shares issued in cashless exercise of options		-			-			28,890		29		(29	)		-			-
Shares issued to current and former employees and directors		-			-			87,255		87		142,138			-			142,225
Stock based compensation		-			-			-		-		488,304			-			488,304
Net Loss		-			-			-		-		-			(4,085,516	)		(4,085,516	)

Ending balance, September, 2020		89,872		$	90			9,845,600	$	9,846	$	25,341,185		$	(21,779,442	)	$	3,571,679

	Preferred Stock						Common stock				Additional paid-in			Accumulated
As Restated	Shares			$			Shares		$		capital			deficit			Total

Balances, June 30, 2020		94,872		$	95			9,490,582	$	9,491	$	23,863,806		$	(17,693,926	)	$	6,179,466

Conversion of Series A Convertible Preferred Stock into common stock		(5,000	)		(5	)		13,158		13		(8	)		-			-
Settlement of Accounts Payable		-			-			157,000		157		847,043			-			847,200
Shares issued in cashless exercise of warrants		-			-			68,715		69		(69	)		-			-
Shares issued in cashless exercise of options		-			-			28,890		29		(29	)		-			-
Shares issued to current and former employees and directors		-			-			87,255		87		142,138			-			142,225
Stock based compensation		-			-			-		-		488,304			-			488,304
Net Loss		-			-			-		-		-			(2,747,213	)		(2,747,213	)

Ending balance, September, 2020		89,872		$	90			9,845,600	$	9,846	$	25,341,185		$	(20,441,139	)	$	4,909,982

	Preferred Stock						Common stock				Additional paid-in			Accumulated
As Filed	Shares			$			Shares		$		capital			deficit			Total

Balances,December 31, 2019		578,567		$	579			7,390,261	$	7,391	$	19,712,115		$	(12,794,473	)	$	6,925,612

Conversion of Series A Convertible Preferred Stock into common stock		(488,695	)		(489	)		1,286,042		1,286		(797	)		-			-
Settlement of Accounts Payable								441,567		442		2,604,948			-			2,605,390
Shares issued in cashless exercise of warrants		-			-			415,904		416		(416	)		-			-
Shares issued in cashless exercise of options		-			-			86,424		86		(86	)		-			-
Warrants exercised for cash		-			-			7,000		7		38,563			-			38,570
Shares issued to current and former employees and directors		-			-			218,402		218		142,007			-			142,225
Stock based compensation		-			-			-		-		2,844,851			-			2,844,851
Net Loss		-			-			-		-		-			(8,984,969	)		(8,984,969	)

Ending balance, September 30, 2020		89,872		$	90			9,845,600	$	9,846	$	25,341,185		$	(21,779,442	)	$	3,571,679

	Preferred Stock						Common stock				Additional paid-in			Accumulated
As Restated	Shares			$			Shares		$		capital			deficit			Total

Balances,December 31, 2019		578,567		$	579			7,390,261	$	7,391	$	19,712,115		$	(12,794,473	)	$	6,925,612

Conversion of Series A Convertible Preferred Stock into common stock		(488,695	)		(489	)		1,286,042		1,286		(797	)		-			-
Settlement of Accounts Payable								441,567		442		2,604,948			-			2,605,390
Shares issued in cashless exercise of warrants		-			-			415,904		416		(416	)		-			-
Shares issued in cashless exercise of options		-			-			86,424		86		(86	)		-			-
Warrants exercised for cash		-			-			7,000		7		38,563			-			38,570
Shares issued to current and former employees and directors		-			-			218,402		218		142,007			-			142,225
Stock based compensation		-			-			-		-		2,844,851			-			2,844,851
Net Loss		-			-			-		-		-			(7,646,666	)		(7,646,666	)

Ending balance, September 30, 2020		89,872		$	90			9,845,600	$	9,846	$	25,341,185		$	(20,441,139	)	$	4,909,982

	Nine months ended September 30, 2020								Nine months ended September 30, 2020
	(As Filed)					Adjustments			(As Restated)

Cash flows from operating activities:
Net loss	$	(8,984,969	)	(1	)	$	1,338,303		$	(7,646,666	)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		29,275					-			29,275
Amortization of intangibles		28,457					-			28,457
Stock-based compensation		4,183,154		(1	)		(1,338,303	)		2,844,851
Loss on settlement of accounts payable		2,747,615					-			2,747,615
Bad debt expense		189,987					-			189,987
Changes in operating assets and liabilities		662,070					-			662,070
Net cash used in operating activities		(1,144,411	)				-			(1,144,411	)

Cash flows from investing activities:
Net cash provided by investing activities		(1,229	)				-			(1,229	)

Cash flows from financing activities:
Net cash provided by financing activities		847,542					-			847,542

Net (decrease) increase in cash		(298,098	)				-			(298,098	)

Cash, beginning of period		487,953					-			487,953

Cash, end of period	$	189,855				$	-		$	189,855