RESTATEMENT

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

NOTE 10. RESTATEMENT

In June 2023, the Company entered into a consulting agreement with Chartered Services LLC (“Consultant”). As compensation for signing this agreement, the Company issued to the Consultant warrants to purchase up to 300,000 shares of common stock at an exercise price of $2 per share.

The warrant was valued at approximately $361,724 using the Black Scholes pricing model relying on the following assumptions: volatility 69.13%; annual dividend rate 0%; discount rate 3.96%.

As a result of the warrant expense not being included in the six months ended June 30, 2023, the Company’s selling, general and administrative expenses were understated by $361,724, in addition to an understatement of Additional Paid-In Capital in the same amount.

SCHEDULE OF FINANCIAL STATEMENTS

SCRIPPS SAFE, INC

CONSOLIDATED BALANCE SHEETS

	As Previously Reported			Restatement Impacts			As Restated
	June 30, 2023
ASSETS	As Previously Reported			Restatement Impacts			As Restated
Current assets:
Cash and cash equivalents	$	16,134		$	-		$	16,134
Accounts receivable, net		110,876			-			110,876
Other current assets		14,000			-			14,000
Total current assets		141,010			-			141,010

NON-CURRENT ASSETS:
Right-of-use lease asset		97,435			-			97,435
Property, plant and equipment, net		6,079			-			6,079
Other assets		28,000			-			28,000
Total non-current assets		131,514			-			131,514

Total assets	$	272,524		$	-		$	272,524

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities	$	88,475		$	-		$	88,475
Lease liability - Current		23,203			-			23,203
Notes payable		170,000			-			170,000
Line of credit		39,191			-			39,191
Total current liabilities		320,869			-			320,869

Non-current liabilities:
Lease liability		76,151			-			76,151
Government grant		445,400			-			445,400
Notes payable, net of discount $0 and $5,694, respectively		-			-			-
Total non-current liabilities		521,551			-			521,551

Total liabilities		842,420			-			842,420

Stockholders’ deficit:
Common stock, par value $.01; 15,000,000 shares authorized; 9,485,000 shares and 15,000,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		94,850			-			94,850
Subscription receivables		(25,000	)		-			(25,000	)
Additional paid-in capital		4,617,448			361,724			4,979,172
Accumulated deficit		(5,257,194	)		(361,724	)		(5,618,918	)
Total stockholders’ deficit		(569,896	)		-			(569,896	)

Total liabilities and stockholders’ deficit	$	272,524		$	-		$	272,524

SCRIPPS SAFE, INC

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

	As Previously Reported			Restatement Impacts			As Restated
	For the three months ended June 30, 2023
	As Previously Reported			Restatement Impacts			As Restated

Sales	$	170,551		$	-		$	170,551
Total revenue		170,551			-			170,551
Cost of revenue		(134,261	)		-			(134,261	)
Gross profit		36,290			-			36,290

Operating expenses:

Depreciation		606			-			606
Selling, general and administrative		988,073			361,724			1,349,797
Total operating expenses		988,679			361,724			1,350,403

Income (loss) from operations		(952,389	)		(361,724	)		(1,314,113	)

Other income (expenses):
Other income		690			-			690
Charitable Donation		-			-			-
Interest expense		(23,118	)		-			(23,118	)
Amortization of debt discount		-			-			-
Total other (expenses)		(22,428	)		-			(22,428	)

Income (loss) from operations before income taxes		(974,817	)		(361,724	)		(1,336,541	)

Provision for income taxes		-			-			-

Net Income/(loss)		(974,817	)		(361,724	)		(1,336,541	)

Basic net income(loss) per common share		(0.15	)		-			(0.15	)

Weighted average number of common shares outstanding - Basic		9,116,401			-			9,116,401

Diluted net income(loss) per common share		(0.15	)		-			(0.15	)

Weighted average number of common shares outstanding - Diluted		9,116,401			-			9,116,401

	As Previously Reported			Restatement Impacts			As Restated
	For the six months ended June 30, 2023
	As Previously Reported			Restatement Impacts			As Restated

Sales	$	241,829		$	-		$	241,829
Total revenue		241,829			-			241,829
Cost of revenue		(188,285	)		-			(188,285	)
Gross profit		53,544			-			53,544

Operating expenses:

Depreciation		1,101			-			1,101
Selling, general and administrative		4,477,811			361,724			4,839,535
Total operating expenses		4,478,912			361,724			4,840,636

Income (loss) from operations		(4,425,368	)		(361,724	)		(4,787,092	)

Other income (expenses):
Other income		799			-			799
Charitable Donation		(80,000	)		-			(80,000	)
Interest expense		(42,175	)		-			(42,175	)
Amortization of debt discount		(5,694	)		-			(5,694	)
Total other (expenses)		(127,070	)		-			(127,070	)

Income (loss) from operations before income taxes		(4,552,438	)		(361,724	)		(4,914,162	)

Provision for income taxes		-			-			-

Net Income/(loss)		(4,552,438	)		(361,724	)		(4,914,162	)

Basic net income(loss) per common share		(0.56	)		-			(0.56	)

Weighted average number of common shares outstanding - Basic		8,748,301			-			8,748,301

Diluted net income(loss) per common share		(0.56	)		-			(0.56	)

Weighted average number of common shares outstanding - Diluted		8,748,301			-			8,748,301

SCRIPPS SAFE, INC

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

	Shares		Amount		Subscription Receivables			Additional Paid- in Capital		Accumulated Deficit			Total Stockholders’ Deficit
	Common Share
	Shares		Amount		Subscription Receivables			Additional Paid- in Capital		Accumulated Deficit			Total Stockholders’ Deficit
Balance as of June 30, 2023 (As Previously Reported)
Balance, March 31, 2023		9,062,500	$	90,625	$	(75,000	)	$	3,791,673	$	(4,282,366	)	$	(475,068	)
Shareholders’ distribution		-		-		-			-		(11	)		(11	)
Stock compensation		370,000		3,700		-			736,300		-			740,000
Stock issuance for cash		52,500		525		50,000			89,475		-			140,000
Issuance of warrants
Net Loss		-		-		-			-		(974,817	)		(974,817	)
Balance, June 30, 2023		9,485,000	$	94,850	$	(25,000	)	$	4,617,448	$	(5,257,194	)	$	(569,896	)

Balance as of June 30, 2023 (As Restated)
Balance, March 31, 2023		9,062,500	$	90,625	$	(75,000	)	$	3,791,673	$	(4,282,366	)	$	(475,068	)
Shareholders’ distribution		-		-		-			-		(11	)		(11	)
Stock compensation		370,000		3,700		-			736,300		-			740,000
Stock issuance for cash		52,500		525		50,000			89,475		-			140,000
Issuance of warrants		-		-		-			361,724		-			361,724
Net Loss		-		-		-			-		(1,336,541	)		(1,336,541	)
Balance, June 30, 2023		9,485,000	$	94,850	$	(25,000	)	$	4,979,172	$	(5,618,918	)	$	(569,896	)

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED STATEMENT OF CASHFLOWS

	As Previously Reported			Restatement Impacts			As Restated
	For the six months ended June 30, 2023
	As Previously Reported			Restatement Impacts			As Restated
Cash flows from operating activities:
Net income (loss)	$	(4,552,438	)	$	(361,724	)	$	(4,914,162	)
Adjustments to reconcile net loss to net cash provided by operating activities:								-
Stock compensation		4,120,000			-			4,120,000
Stock charitable donation		80,000			-			80,000
Issuance of warrants		-			361,724			361,724
Depreciation		1,101			-			1,101
Amortization of debt discount		5,694			-			5,694
Changes in operating assets and liabilities:								-
Accounts receivable		(77,392	)		-			(77,392	)
Right-of-use asset		11,428			-			11,428
Other current assets		7,086			-			7,086
Other asset		(25,000	)		-			(25,000	)
Accounts payable and accrued liabilities		(41,702	)		-			(41,702	)
Deferred revenue		17,506			-			17,506
Right-of-use liabilities		(10,784	)		-			(10,784	)

Net cash used in operating activities		(464,501	)		-			(464,501	)

Cash flows from investing activities:
Purchase of fixed assets		(1,900	)		-			(1,900	)

Net cash used in investing activities		(1,900	)		-			(1,900	)

Cash flows from financing activities:
Proceeds from SBA EIDL loan		-			-			-
Repayments of line of credit		(7,654	)		-			(7,654	)
Stock issuance for cash		480,000			-			480,000
Owner Investment		-			-			-
Borrowings in debt		-			-			-
Principal payments on debt		-			-			-
Shareholders’ distributions		(140	)		-			(140	)

Net cash provided by financing activities		472,206			-			472,206

Net change in cash		5,805			-			5,805

Cash and cash equivalents, beginning of period		10,329			-			10,329

Cash and cash equivalents, end of period	$	16,134		$	-		$	16,134

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	$	-		$	-		$	-
Cash paid for taxes	$	-		$	-		$	-

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Debt discount related to loans payable	$	-		$	-		$	-
Loan forgiveness and reclassified to NCI	$	-		$	-		$	-

NON-CASH ACTIVITIES
Reclassification of long-term loan to short term loan	$	170,000		$	-		$	170,000
Cancellation of common stocks - related party	$	78,800		$	-		$	78,800
Stock issued for subscription receivable	$	25,000		$	-		$	25,000

Scripps Safe, Inc. S-1/A