Restatement of Previously Issued Financial Statement

12 Months Ended

Dec. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

Subsequent to the issuance of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Original Report”), the Company identified a material accounting error related to the timing of revenue recognition (referred to as “the Misstatement”) which impacts the Company’s consolidated financial statements as of and for the period ended December 31, 2023. Within this report, the Company has restated all impacted financial information and footnote disclosures impacted by the Misstatement. A description of the error and its impact on the previously issued financial statements is included below. In connection with the restatement, the Company determined that it was appropriate to revise the consolidated balance sheet as of December 31, 2022 and the consolidated statement of cash flows for the periods ended December 31, 2022 and 2021, as well as impacted footnote disclosures, in this Form 10-K/A to correct other unrelated immaterial errors.

Description of revenue restatement adjustments

During the first quarter of 2023, a customer cancelled two COVID-related, non-cancellable product purchase orders (“Cancelled PO’s”) in exchange for a $17.3 million one-time cash payment (the “Payment”), which was received in April 2023. At the time of cancellation, no product units had been delivered under the Cancelled PO’s and the Company had two other purchase orders from the same customer for the same product (“Open PO’s”). The Company originally accounted for the Cancelled PO’s as a single contract and recognized the $17.3 million payment as component of product revenue in the first quarter of 2023.

Subsequent to the issuance of the Original Report, the Company reassessed the accounting treatment of the Payment and concluded that the Cancelled PO’s and Open PO’s represented a combined contract such that the February 2023 transaction should have been analyzed and accounted for as a contract modification, which required the Payment to be deferred and recognized as product units were delivered under the Open PO’s. All Open PO product units were fully delivered to the customer by June 30, 2024.

The correction of the Misstatement affects certain financial statement line items in these consolidated financial statements including but not limited to product revenues, income tax provision, foreign currency translation, deferred revenues, prepaid expenses, deferred taxes and earnings-per-share.

Consolidated Financial Statements - Restatement Reconciliation Tables

The following tables present the impact of the financial statement adjustments on the Company's previously reported consolidated financial statements. The "Previously Reported" amounts in the following tables are amounts derived from the Original Report. The amounts in the columns labeled "Revenue Adjustments" represent the effect of adjustments resulting from the correction of the overstatement of revenues associated with the Payment and related tax impact. The amounts in the columns labeled "Other Adjustments" represent the effect of other adjustments that relate to other unrelated errors in previously filed financial statements that were not material, individually or in the aggregate, to those filed financial statements. The effects of both the restatement for the Revenue Adjustments and the revisions for the immaterial Other Adjustments have been corrected in all impacted tables and footnotes throughout these consolidated financial statements.


	December 31,
	2023
	As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	751,323		$	—		$	—		$	751,323
Marketable securities held to maturity		—			—			—			—
Accounts receivable, net of reserves of $2,122 and $1,365 at December 31, 2023 and December 31, 2022, respectively		124,161			—			—			124,161
Inventories, net		202,321			—			—			202,321
Prepaid expenses and other current assets		33,238			303			—			33,541
Total current assets		1,111,043			303			—			1,111,346
Noncurrent assets:
Property, plant and equipment, net		207,440			—			—			207,440
Intangible assets, net		400,486			—			6,471			406,957
Goodwill		987,120			—			—			987,120
Deferred tax assets		1,530			—			—			1,530
Operating lease right of use assets		115,515			—			—			115,515
Other noncurrent assets		1,277			—			—			1,277
Total noncurrent assets		1,713,368			—			6,471			1,719,839
Total assets	$	2,824,411		$	303		$	6,471		$	2,831,185
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	19,563		$	—		$	—		$	19,563
Operating lease liability		5,631			—			—			5,631
Current contingent consideration		12,983			—			—			12,983
Accrued liabilities		50,533			6,780			—			57,313
Convertible Senior Notes due 2024, net		69,452			—			—			69,452
Total current liabilities		158,162			6,780			—			164,942
Noncurrent liabilities:
Convertible Senior Notes due 2028, net		510,143			—			—			510,143
Deferred tax liabilities		40,466			(903	)		(239	)		39,324
Noncurrent operating lease liability		126,578			—			—			126,578
Noncurrent contingent consideration		14,070			—			—			14,070
Other noncurrent liabilities		3,789			—			7,494			11,283
Total noncurrent liabilities		695,046			(903	)		7,255			701,398
Total liabilities		853,208			5,877			7,255			866,340
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding		—			—			—			—
Common stock, $0.01 par value; 80,000,000 shares authorized; 55,766,078 shares at December 31, 2023 and 55,557,698 shares at December 31, 2022 issued and outstanding		558			—			—			558
Additional paid-in capital		1,569,227			—			—			1,569,227
Accumulated other comprehensive loss		(37,431	)		(377	)		—			(37,808	)
Accumulated earnings		438,849			(5,197	)		(784	)		432,868
Total stockholders’ equity		1,971,203			(5,574	)		(784	)		1,964,845
Total liabilities and stockholders’ equity	$	2,824,411		$	303		$	6,471		$	2,831,185


	December 31,
	2022
	As Previously Reported		Other Adjustments		As Revised
ASSETS
Intangible assets, net	$	353,676	$	6,942	$	360,618
Total noncurrent assets		1,526,540		6,942		1,533,482
Total assets	$	2,524,658	$	6,942	$	2,531,600
LIABILITIES AND STOCKHOLDERS' EQUITY
Other noncurrent liabilities	$	3,814	$	6,942	$	10,756
Total noncurrent liabilities		209,762		6,942		216,704
Total liabilities		613,958		6,942		620,900
Total liabilities and stockholders’ equity	$	2,524,658	$	6,942	$	2,531,600


	Year Ended December 31, 2023
	As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
Revenue:
Products	$	638,381		$	(6,402	)	$	—		$	631,979
Royalty and other revenue		383			—			—			383
Total revenue		638,764			(6,402	)		—			632,362
Costs and operating expenses:								—
Cost of product revenue		353,922			—			—			353,922
Research and development		42,722			—			—			42,722
Selling, general and administrative		218,113			—			471			218,584
Contingent consideration		(30,569	)		—			—			(30,569	)
Total costs and operating expenses		584,188			—			471			584,659
Income from operations		54,576			(6,402	)		(471	)		47,703
Other income (expenses):
Investment income		24,135			—			—			24,135
Interest expense		(1,951	)		—			(552	)		(2,503	)
Loss on extinguishment of debt		(12,676	)		—			—			(12,676	)
Amortization of debt issuance costs		(8,075	)		—			—			(8,075	)
Other income (expenses)		8,123			—			—			8,123
Other income (expenses), net		9,556			—			(552	)		9,004
Income before income taxes		64,132			(6,402	)		(1,023	)		56,707
Income tax provision		22,555			(1,205	)		(239	)		21,111
Net income	$	41,577		$	(5,197	)	$	(784	)	$	35,596
Earnings per share:								—
Basic	$	0.75		$	(0.09	)	$	(0.02	)	$	0.64
Diluted (Note 3)	$	0.74		$	(0.09	)	$	(0.02	)	$	0.63
Weighted average common shares outstanding:
Basic		55,720			—			—			55,720
Diluted (Note 3)		56,377			—			—			56,377

Net income	$	41,577		$	(5,197	)	$	(784	)	$	35,596
Other comprehensive income (loss):
Foreign currency translation adjustment		(3,037	)		(377	)		—			(3,414	)
Comprehensive income	$	38,540		$	(5,574	)	$	(784	)	$	32,182


	Accumulated Other Comprehensive Loss											Accumulated Earnings										Total Stockholders' Equity
	As Previously Reported			Revenue Adjustments			Other Adjustments		As Restated			As Previously Reported		Revenue Adjustments			Other Adjustments			As Restated		As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
	$			$			$		$			$		$			$			$		$			$			$			$
Balance at December 31, 2022		(34,394	)		—			—		(34,394	)		397,272		—			—			397,272		1,910,700			—			—			1,910,700
Net income		—			—			—		—			41,577		(5,197	)		(784	)		35,596		41,577			(5,197	)		(784	)		35,596
Translation adjustment		(3,037	)		(377	)		—		(3,414	)		—		—			—			—		(3,037	)		(377	)		—			(3,414	)
Balance at December 31, 2023		(37,431	)		(377	)		—		(37,808	)		438,849		(5,197	)		(784	)		432,868		1,971,203			(5,574	)		(784	)		1,964,845


	Year Ended December 31, 2023
	As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
Cash flows from operating activities:
Net income	$	41,577		$	(5,197	)	$	(784	)	$	35,596
Adjustments to reconcile net income to net cash provided by operating activities:
Inventory step-up charges		1,238			—			—			1,238
Depreciation and amortization		68,085			—			471			68,556
Amortization of debt discount and issuance costs		2,448			—			—			2,448
Stock-based compensation		25,575			—			—			25,575
Deferred income taxes, net		2,317			(903	)		(239	)		1,175
Contingent consideration		(30,569	)		—			—			(30,569	)
Non-cash interest income		(2,023	)		—			—			(2,023	)
Loss on extinguishment of debt		12,676			—			—			12,676
Operating lease right of use asset amortization		14,059			—			3,499			17,558
Other		1,231			—			552			1,783
Changes in operating assets and liabilities, excluding impact of acquisitions:
Accounts receivable		(3,312	)		—			—			(3,312	)
Inventories		40,973			—			—			40,973
Prepaid expenses and other assets		(13,030	)		(303	)		—			(13,333	)
Other assets		(461	)		—			—			(461	)
Accounts payable		(9,803	)		—			—			(9,803	)
Accrued expenses		(27,921	)		6,403			—			(21,518	)
Operating lease liability		(9,229	)		—			(3,499	)		(12,728	)
Long-term liabilities		87			—			—			87
Total cash provided by operating activities		113,918			—			—			113,918
Cash flows from investing activities:
Redemption of marketable securities		102,323			—			—			102,323
Additions to capitalized software costs		(2,766	)		—			—			(2,766	)
Acquisitions, net of cash acquired		(186,642	)		—			—			(186,642	)
Purchases of property, plant and equipment		(36,222	)		—			—			(36,222	)
Purchase of intellectual property		—			—			—			—
Other investing activities		32			—			—			32
Total cash used in investing activities		(123,275	)		—			—			(123,275	)
Cash flows from financing activities:
Repurchase of common stock		(14,386	)		—			—			(14,386	)
Proceeds from issuance of 2023 Convertible Senior Notes		290,094			—			—			290,094
Proceeds from exercise of stock options		1,076			—			—			1,076
Payment of debt issuance costs		(7,253	)		—			—			(7,253	)
Payment of tax withholding obligation on vesting of restricted stock		(13,227	)		—			—			(13,227	)
Payment of earnout consideration		(7,298	)		—			—			(7,298	)
Other financing activities		(45	)		—			—			(45	)
Total cash provided by (used in) financing activities		248,961			—			—			248,961
Effect of exchange rate changes on cash and cash equivalents		(11,739	)		—			—			(11,739	)
Net increase (decrease) in cash and cash equivalents		227,865			—			—			227,865
Cash and cash equivalents, beginning of period		523,458			—			—			523,458
Cash and cash equivalents, end of period	$	751,323		$	—		$	—		$	751,323
Supplemental disclosure of cash flow information:
Income taxes paid	$	26,963		$	—		$	—		$	26,963
Interest paid	$	988		$	—		$	—		$	988
Supplemental disclosure of non-cash investing and financing activities:				$	—		$	—
Assets acquired under operating leases	$	4,335		$	—		$	—		$	4,335
Fair value of shares of common stock issued for acquisitions	$	13,569		$	—		$	—		$	13,569
Fair value of shares of common stock issued for contingent consideration earnouts	$	7,229		$	—		$	—		$	7,229
Acquisition date fair value of contingent consideration earnouts	$	6,640		$	—		$	—		$	6,640
Issuance of 2023 Notes in exchange of 2019 Notes	$	42,179		$	—		$	—		$	42,179
Extinguished 2019 Notes	$	29,634		$	—		$	—		$	29,634


	Year Ended December 31, 2022
	As Previously Reported			Other Adjustments			As Revised
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Operating lease right of use asset amortization	$	(24,549	)	$	30,576		$	6,027
Changes in operating assets and liabilities, excluding impact of acquisitions:
Operating lease liability	$	28,623		$	(30,576	)	$	(1,953	)
Total cash provided by operating activities	$	172,083		$	—		$	172,083
Supplemental disclosure of non-cash investing and financing activities:
Acquisition of intangible assets and issuance of financing liability	$	—		$	6,948		$	6,948


	Year Ended December 31, 2021
	As Previously Reported			Other Adjustments			As Revised
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Operating lease right of use asset amortization	$	(4,315	)	$	14,870		$	10,555
Changes in operating assets and liabilities, excluding impact of acquisitions:
Operating lease liability	$	6,958		$	(14,870	)	$	(7,912	)
Total cash provided by operating activities	$	119,016		$	—		$	119,016