10-Q/A: FIEE, Inc. Amends Q3 2024 Report, Restates Financials Due to Share Count Errors
Quarterly Report Amendment
FIEE, Inc. filed an amended quarterly report for Q3 2024, restating financial statements due to errors in common stock shares outstanding and earnings per share.
Summary
- FIEE, Inc. (formerly MINIM, Inc.) filed an Amendment No. 1 to its Quarterly Report on Form 10-Q for the period ended September 30, 2024, which was originally filed on November 19, 2024.
- The amendment restates certain items in Part I, Item 1 (Financial Statements) and Part II, Item 6 (Exhibits) to include updated certifications.
- The restatement was initiated by the Audit Committee, in consultation with management, due to errors in the recording and reporting of common stock shares outstanding, including earnings per share.
- Previously released financial statements for the period ended September 30, 2024, should no longer be relied upon.
- The error involved incorrect reporting of common stock shares outstanding for the fiscal year ended December 31, 2023, and the period ended September 30, 2024.
- For December 31, 2023, outstanding shares were incorrectly reported as 2,632,809 and are now corrected to 2,789,020.
- For September 30, 2024, outstanding shares were incorrectly reported as 3,557,581 and are now corrected to 3,713,792.
- The error did not impact the period ended September 30, 2023.
- Weighted average common shares for the three months ended September 30, 2024, are restated to 3,022,805 from the original 2,866,594.
- Basic and diluted net loss per share for the three months ended September 30, 2024, is restated to $0.21 from the original $0.22.
- Weighted average common shares for the nine months ended September 30, 2024, are restated to 2,972,118 from the original 2,815,907.
- Basic and diluted net loss per share for the nine months ended September 30, 2024, is restated to $1.47 from the original $1.55.
- As of September 30, 2024, total assets are $433,196, total liabilities are $992,050, and total stockholders' equity (deficit) is $(558,854).
- Net sales for the three months ended September 30, 2024, were $0, a significant decrease from $6,696,187 for the same period in 2023.
- Net sales for the nine months ended September 30, 2024, were $639,893, a significant decrease from $24,642,728 for the same period in 2023.
- Net loss for the three months ended September 30, 2024, was $(625,067), compared to $(6,820,287) for the same period in 2023.
- Net loss for the nine months ended September 30, 2024, was $(4,371,934), compared to $(16,488,425) for the same period in 2023.
Sentiment
Score: 3
Explanation: While the restatement technically resulted in a slightly lower per-share loss, the underlying reason is a material error in financial reporting, which raises significant concerns about internal controls and the reliability of past financial statements. The substantial decline in sales and negative equity also contribute to a negative outlook.
Positives
- Restated basic and diluted net loss per share for the three months ended September 30, 2024, improved to $0.21 from the originally reported $0.22.
- Restated basic and diluted net loss per share for the nine months ended September 30, 2024, improved to $1.47 from the originally reported $1.55.
- The company is proactively addressing and correcting financial reporting errors through this amendment.
Negatives
- Previously filed financial statements for the period ended September 30, 2024, should no longer be relied upon due to identified errors.
- Errors were identified in the recording and reporting of common stock shares outstanding, including earnings per share, indicating potential internal control weaknesses.
- The company reported zero net sales for the three months ended September 30, 2024, a substantial decline from $6,696,187 in the prior year period.
- Net sales for the nine months ended September 30, 2024, significantly decreased to $639,893 from $24,642,728 in the prior year period.
- The company has a total stockholders' equity deficit of $(558,854) as of September 30, 2024.
- Current liabilities ($992,050) significantly exceed current assets ($215,831) as of September 30, 2024, indicating liquidity concerns.
Risks
- Reliance on previously filed financial statements for the period ended September 30, 2024, is no longer advised due to identified errors, which could impact investor confidence.
- The errors in common stock shares outstanding and earnings per share indicate potential material weaknesses in internal controls over financial reporting.
- Significant decline in net sales for both the three and nine months ended September 30, 2024, compared to the prior year, signals severe operational challenges and potential market share loss.
- Negative stockholders' equity and a high current liabilities to current assets ratio suggest financial distress and significant liquidity risks.
Future Outlook
No specific forward-looking statements or guidance are provided in this amendment.
Management Comments
- The Audit Committee, after consultation with management, concluded that the previously filed financial statements for the period ended September 30, 2024, should no longer be relied upon due to errors in recording and reporting common stock shares outstanding, including earnings per share.
- Management identified an error in the shares of common stock outstanding during the preparation of the financial statements for the fiscal year ended December 31, 2023.
Industry Context
This filing is an amendment focused on correcting internal financial reporting errors and does not provide broader industry analysis or context.
Comparison to Industry Standards
- NA
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Financial Reporting Reliability | The Audit Committee, in consultation with management, concluded that previously filed financial statements for Q3 2024 should no longer be relied upon due to errors in common stock shares outstanding and earnings per share. | 2024-09-30 | Indicates a need for strengthened internal controls over financial reporting to ensure accuracy and reliability of future disclosures. |
| Compliance Certifications | The filing includes updated certifications from the Principal Executive Officer and Principal Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. | 2025-07-28 | Ensures compliance with regulatory requirements following the financial restatement. |
Legal Proceedings
- NA
Related Party Transactions
- NA
Stakeholder Impact
- Shareholders: Impacted by the unreliability of previously reported financial statements and the need to rely on restated figures, which could affect investment decisions and confidence.
- Investors: Requires re-evaluation of the company's financial health based on corrected data, potentially leading to a reassessment of valuation and risk.
- Regulatory Authorities: The restatement addresses compliance requirements, but the underlying error may prompt further scrutiny regarding the company's internal controls and financial reporting practices.
Next Steps
- NA
Key Dates
| Date | Description |
|---|---|
| 2022-12-31 | Balance of Stockholders Equity |
| 2023-03-31 | Balance of Stockholders Equity |
| 2023-06-30 | Balance of Stockholders Equity |
| 2023-09-30 | End of quarterly period and financial statement period; Balance of Stockholders Equity |
| 2023-12-31 | Balance Sheet date, end of fiscal year, and Balance of Stockholders Equity |
| 2024-03-31 | Balance of Stockholders Equity |
| 2024-06-30 | Balance of Stockholders Equity |
| 2024-09-30 | End of quarterly period, balance sheet date, and financial statement period |
| 2024-11-19 | Original Form 10-Q filed with the SEC |
| 2025-07-25 | Number of shares outstanding of common stock was 6,224,389 shares |
| 2025-07-28 | Date of signing for the Form 10-Q/A and certifications |
Recommendation
sellThe restatement of financial statements due to errors in common stock shares outstanding and earnings per share indicates significant weaknesses in internal financial controls, which is a major red flag for investors. While the restated net loss per share is marginally better, the fundamental issue of unreliable reporting, coupled with a dramatic decline in net sales (to zero for the quarter) and a negative stockholders' equity position, points to severe operational and financial distress. These factors suggest a high level of risk and a deteriorating business outlook, making the stock a strong candidate for divestment.
Keywords
SEC filing, 10-Q/A, financial restatement, common stock, shares outstanding, earnings per share, financial reporting, corporate governance, FIEE Inc., MINIM Inc., quarterly report, financial statements, audit committee, internal controls
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