Quarterly report pursuant to Section 13 or 15(d)

Restatement of Condensed Consolidated Balance Sheet and Related Statements of Operations and Comprehensive Loss and Cash Flows

v3.8.0.1
Restatement of Condensed Consolidated Balance Sheet and Related Statements of Operations and Comprehensive Loss and Cash Flows
 6 Months Ended
Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]  
Restatement of Condensed Consolidated Balance Sheet and Related Statements of Operations and Comprehensive Loss and Cash Flows

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 June 30, 2017 and the related statements of operations and cash flows for the three and six month periods ended June 30, 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 the issuance of 333,750 common stock warrants during January 2017 that were previously recorded as equity. The impact of this change for the three and six months periods ended June 30, 2017 is as follows (in thousands, except share and per share data):

 

    Three months ended June 30, 2017  
   

As Previously

Reported

     As Restated  
Total other income (expense), net   $ (382 )   $ 21  
Total net loss     (2,106 )     (1,703 )
Deemed dividend related to beneficial conversion feature and accretion of a discount on Series A Preferred Stock     -       -  
Net loss attributable to common stockholders   $ (2,106 )   $ (1,703 )
Net loss per share attributable to common stockholders:
Basic and diluted 		  $ (0.06 )   $ (0.56 )
Weighted average common shares outstanding:
Basic and diluted 		    3,022,073       3,022,073  
Common stock, $0.01 par value   $ 30     $ 30  
Additional paid-in capital     231,404       225,491  
Accumulated deficit     (217,391 )     (213,254 )
Total stockholders’ equity   $ 14,043     $ 22,650  
Derivative liabilities, current portion   $ -     $ 1,776  

 

    Six months ended June 30, 2017  
   

As Previously

Reported

     As Restated  
Total other income (expense), net   $ (730 )   $ 1,311  
Total net loss     (4,256 )     (2,215 )
Deemed dividend related to beneficial conversion feature and accretion of a discount on Series A Preferred Stock     -       -  
Net loss attributable to common stockholders   $ (4,256 )   $ (2,215 )
Net loss per share attributable to common stockholders:
Basic and diluted 		  $ (0.12 )   $ (0.76 )
Weighted average common shares outstanding:
Basic and diluted 		    2,918,240       2,918,240  
Common stock, $0.01 par value   $ 30     $ 30  
Additional paid-in capital     231,404       225,491  
Accumulated deficit     (217,391 )     (213,254 )
Total stockholders’ equity   $ 14,043     $ 12,267  
Derivative liabilities, current portion   $ -     $ 1,776  

 

For the six months ended June 30, 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.