I don't believe there has been any making things up going along the way. I've worked in the industry a long time. Clerks, CFO's and Accountants make mistakes. They are human. Independent audits catch these mistakes. They get corrected. I applaud the Angel investor(s) for insisting on a full audit and SOX-404 compliance.
Btw, I believe Weedmaps was making circa $60K when they started too.