Inhibikase Therapeutics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Correction of Prior Period Immaterial Error

Correction of Prior Period Immaterial Error

6 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Correction of Prior Period Immaterial Error:

14. Correction of Prior Period Immaterial Error:

The Company has identified an immaterial error in the Company's previously issued consolidated financial statements related to net loss per share and weighted-average number of common shares outstanding. The error pertains to the exclusion of pre-funded warrants from the January 2023 transaction in the weighted-average number of common shares used in the calculation of net loss per share, the effect of which improves net loss per share.

In evaluating whether the previously issued Consolidated Financial Statements were materially misstated for the interim or annual periods prior to December 31, 2023, the Company applied the guidance of ASC 250, Accounting Changes and Error Corrections, SEC Staff Accounting Bulletin (“SAB”) Topic 1.M, Assessing Materiality and SAB Topic 1.N, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and concluded that the effect of the errors on prior period annual financial statements was immaterial. The guidance states that prior-year misstatements which, if corrected in the current year would materially misstate the current year’s financial statements, must be corrected by adjusting prior year financial statements, even though such correction previously was and continues to be immaterial to the prior-year financial statements. This is because if left uncorrected over time the difference to weighted-average shares outstanding could have grown to be material. Correcting prior-year financial statements for such immaterial misstatements does not require previously filed reports to be amended.

The adjustment required to correct the misstatement in the financial statements for the three and six months ended June 30, 2023 is reflected in these consolidated statements of operations which are presented on a comparative basis with those for the three and six months ended June 30, 2024.

In accordance with ASC 250, Accounting Changes and Error Correction, the Company is hereby reporting the correction of the weighted-average common shares outstanding and net loss per share line items of its consolidated interim statements of operations for 2023 and its consolidated 2023 statement of operations.

The Company's consolidated statements of operations have been revised from the amounts previously reported to correct the error as shown in the tables below.


	As Previously Reported			As Adjusted
	Three Months Ended March 31,			Three Months Ended March 31,
	2023			2023
Numerator:
Net loss	$	(4,477,778	)	$	(4,477,778	)
Denominator:
Weighted-average number of common shares outstanding – basic and diluted		4,585,013			5,582,631
Net loss per share applicable to common stockholders – basic and diluted	$	(0.98	)	$	(0.80	)


	As Previously Reported			As Adjusted
	Three Months Ended June 30,			Three Months Ended June 30,
	2023			2023
Numerator:
Net loss	$	(5,777,966	)	$	(5,777,966	)
Denominator:
Weighted-average number of common shares outstanding – basic and diluted		5,226,101			6,162,280
Net loss per share applicable to common stockholders – basic and diluted	$	(1.11	)	$	(0.94	)


	As Previously Reported			As Adjusted
	Six Months Ended June 30,			Six Months Ended June 30,
	2023			2023
Numerator:
Net loss	$	(10,255,744	)	$	(10,255,744	)
Denominator:
Weighted-average number of common shares outstanding – basic and diluted		4,918,206			5,883,895
Net loss per share applicable to common stockholders – basic and diluted	$	(2.09	)	$	(1.74	)


	As Previously Reported			As Adjusted
	Three Months Ended September 30,			Three Months Ended September 30,
	2023			2023
Numerator:
Net loss	$	(4,595,199	)	$	(4,595,199	)
Denominator:
Weighted-average number of common shares outstanding – basic and diluted		5,342,337			6,162,671
Net loss per share applicable to common stockholders – basic and diluted	$	(0.86	)	$	(0.75	)


	As Previously Reported			As Adjusted
	Nine Months Ended September 30,			Nine Months Ended September 30,
	2023			2023
Numerator:
Net loss	$	(14,850,943	)	$	(14,850,943	)
Denominator:
Weighted-average number of common shares outstanding – basic and diluted		5,060,447			5,977,841
Net loss per share applicable to common stockholders – basic and diluted	$	(2.93	)	$	(2.48	)


	As Previously Reported			As Adjusted
	Year ended December 31,			Year ended December 31,
	2023			2023
Numerator:
Net loss	$	(19,028,883	)	$	(19,028,883	)
Denominator:
Weighted-average number of common shares outstanding – basic and diluted (restated)		5,333,096			6,028,210
Net loss per share applicable to common stockholders – basic and diluted (restated)	$	(3.57	)	$	(3.16	)