Quarterly report pursuant to Section 13 or 15(d)

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

v3.8.0.1
Restatement of Condensed Consolidated Balance Sheet and Related Statements of Operations and Cash Flows
9 Months Ended
Sep. 30, 2017
Equity [Abstract]  
Restatement of Condensed Consolidated Balance Sheet and Related Statements of Operations and Cash Flows

11. 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 September 30, 2017 and the related statements of operations and cash flows for the three and nine month periods ended September 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 nine month periods ended September 30, 2017 is as follows (in thousands, except share and per share data):

 

    Three months ended September 30, 2017  
   

As Previously

Reported

    As Restated  
Total other income (expense), net   $ (259 )   $ 487  
Total net loss     (2,815 )     (2,069 )
Deemed dividend related to beneficial conversion feature and accretion of a discount on Series A Preferred Stock     -       -  
Net loss attributable to common stockholders   $ (2,815 )   $ (2,069 )
Net loss per share attributable to common stockholders: 
Basic and diluted
  $ (0.93 )   $ (0.68 )
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     231,647       225,733  
Accumulated deficit     (220,206 )     (215,323 )
Total stockholders’ equity   $ 11,471     $ 10,440  
Derivative liabilities, current portion   $ -     $ 1,031  

 

    Nine months ended September 30, 2017  
   

As Previously

Reported

    As Restated  
Total other expense, net   $ (989 )   $ 1,797  
Total net loss     (7,070 )     (4,284 )
Deemed dividend related to beneficial conversion feature and accretion of a discount on Series A Preferred Stock     -       -  
Net loss attributable to common stockholders   $ (7,070 )   $ (4,284 )
Net loss per share attributable to common stockholders: 
Basic and diluted
  $ (2,42 )   $ (1.47 )
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     231,647       225,733  
Accumulated deficit     (220,206 )     (215,323 )
Total stockholders’ equity   $ 11,471     $ 10,440  
Derivative liabilities, current portion   $ -     $ 1,031  

 

For the nine months ended September 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.