12. Restatement of Condensed Consolidated Balance Sheet and Related Statements of Operations and Cash Flows

The requirement to restate the Company’s condensed consolidated balance sheet as of March 31, 2017 and the related statements of operations and cash flows for the three month period ended March 31, 2017 is due to the failure to record a derivative liability from the issuance of 1,054,167 common stock warrants during July 2016 and issuance of 333,750 common stock warrants during January 2017 that were previously recorded as equity. The impact of this change for the three month period ended March 31, 2017 is as follows (in thousands, except share and per share data):

For the three months ended March 31, 2017, the condensed consolidated statement of cash flows changed from that which was previously reported as follows: An approximate $131,000 positive addback for offering costs was recorded to offset an approximate $131,000 increase to net loss, with no net cash impact on cash flows from operating activities. In addition, the allocation of proceeds among common stock, preferred stock and derivative liability changed, with no net cash flow impact on cash flows from financing activities.