| Restatement to Previously Issued 2017 Condensed Consolidated Financial Statements |
14. Restatement to Previously Issued
2017 Condensed Consolidated Financial Statements
Subsequent to the issuance of the condensed
consolidated financial statements as of March 31, 2017, June 30, 2017 and September 30, 2017, and for the three, six and nine-month
periods then ended, the Company identified errors related to a 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 to the Company’s previously issued condensed consolidated financial statements
as of and for the above outlined periods were restated in amended Quarterly Reports on Form 10-Q/A. The impact of these changes
for the above-mentioned periods are repeated below (in thousands, except share and per share data):
March 31, 2017
| |
|
Three months ended March 31, 2017 |
|
| |
|
As Previously
Reported
|
|
|
As Restated |
|
| Total other income (expense), net |
|
$ |
(348 |
) |
|
$ |
1,290 |
|
| Total net loss |
|
|
(2,150 |
) |
|
|
(512 |
) |
| Deemed dividend related to beneficial conversion feature and accretion of a discount on Series A Preferred Stock |
|
|
- |
|
|
|
- |
|
| Net loss attributable to common stockholders |
|
$ |
(2,150 |
) |
|
$ |
(512 |
) |
| Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
| Basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.18 |
) |
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
| Basic and diluted |
|
|
2,826,469 |
|
|
|
2,826,469 |
|
| Common stock, $0.01 par value |
|
$ |
30 |
|
|
$ |
30 |
|
| Additional paid-in capital |
|
|
231,345 |
|
|
|
225,432 |
|
| Accumulated deficit |
|
|
(215,285 |
) |
|
|
(211,511 |
) |
| Total stockholders’ equity |
|
$ |
16,090 |
|
|
$ |
13,911 |
|
| Derivative liabilities, current portion |
|
$ |
- |
|
|
$ |
2,179 |
|
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.
June 30, 2017
| |
|
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 three and 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.
September 30, 2017
| |
|
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 three and 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.
|