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Note 16 - Quarterly Financial Information (Unaudited) | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Quarterly Financial Information [Text Block] |
16. | Quarterly Financial Information (Unaudited)
In addition to the warrant liability misstatement described in Note 2: “Restatement of Consolidated Financial Statements” , we identified the following adjustments described below for the quarters ended March 31, June 30 and September 30, 2019. On March 25, 2019 and April 1, 2019, we granted restricted stock awards with market-based vesting provisions see Note 11: “ Stock-Based Compensation ”. These awards were inappropriately valued. In the accompanying quarterly information, we valued these market-based awards using a Monte Carlo simulation. This resulted in a change in stock compensation expense decrease of $75,000, increase of $172,000 and increase of $175,000 for the quarters ended March 31, June 30, and September 30 2019. We discovered a computational error in the calculation in the fair value contingent consideration related to the Astero acquisition. The correction of this error is corrected in the consolidated balance sheet as of June 30 and September 30, 2019 presented below. This change resulted in a decrease of $439,000 in contingent consideration and increase of $439,000 in goodwill and other intangible assets as of June 30 and September 30, 2019. Financial Statement Reclassification Certain operating expenses related to cost of revenue and intangible amortization related to acquisitions were reclassified from research and development and sales and marketing to conform to the presentation of those operating expenses in the statement of operations for the year ended December 31, 2019. These reclassifications have no impact on previously reported total revenue, net income (loss), net assets, or total cash flows. The effect of the adjustments on the restated balance sheets, statements of operations, and statements of cash flows for the quarters ended March 31, June 30, and September 30, 2019 and 2018 is presented below. Earnings per shares has been corrected to reflect all adjustments including the effect of participating securities. Consolidated Balance Sheets (unaudited)
|  | Balance Sheet March 31, 2018 |
(In thousands, except share and per share data) |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 7,033 |  |  | $ | - |  |  |  | $ | 7,033 |
Accounts receivable, trade, net of allowance for doubtful accounts of $6 at March 31, 2018 |  |  | 1,043 |  |  |  | - |  |  |  |  | 1,043 |
Inventories |  |  | 1,837 |  |  |  | - |  |  |  |  | 1,837 |
Prepaid expenses and other current assets |  |  | 331 |  |  |  | - |  |  |  |  | 331 |
Total current assets |  |  | 10,244 |  |  |  | - |  |  |  |  | 10,244 |
Property and equipment, net |  |  |  |  |  |  | - |  |  |  |  |  |
Leasehold improvements |  |  | 1,284 |  |  |  | - |  |  |  |  | 1,284 |
Furniture and computer equipment |  |  | 692 |  |  |  | - |  |  |  |  | 692 |
Manufacturing and other equipment |  |  | 1,195 |  |  |  | - |  |  |  |  | 1,195 |
Subtotal |  |  | 3,171 |  |  |  | - |  |  |  |  | 3,171 |
Less: Accumulated depreciation |  |  | (2,084 | ) |  |  | - |  |  |  |  | (2,084 | )
Net property and equipment |  |  | 1,087 |  |  |  | - |  |  |  |  | 1,087 |
Investment in SAVSU |  |  | 926 |  |  |  | - |  |  |  |  | 926 |
Long-term deposits |  |  | 36 |  |  |  | - |  |  |  |  | 36 |
Total assets |  | $ | 12,293 |  |  | $ | - |  |  |  | $ | 12,293 |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 586 |  |  |  | - |  |  |  |  | 586 |
Accrued expenses and other current liabilities |  |  | 204 |  |  |  | - |  |  |  |  | 204 |
Accrued compensation |  |  | 392 |  |  |  | - |  |  |  |  | 392 |
Deferred rent, current portion |  |  | 130 |  |  |  | - |  |  |  |  |  |
Total current liabilities |  |  | 1,312 |  |  |  | - |  |  |  |  | 1,312 |
Deferred rent, long-term |  |  | 457 |  |  |  | - |  |  |  |  | 457 |
Warrant liability |  |  | - |  |  |  | 14,725 |  | (a) |  |  | 14,725 |
Other long-term liabilities |  |  | 52 |  |  |  | - |  |  |  |  | 52 |
Total liabilities |  |  | 1,821 |  |  |  | 14,725 |  |  |  |  | 16,546 |
Commitments and Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 4,250 shares issued and outstanding at March 31, 2018 |  |  | - |  |  |  | - |  |  |  |  | - |
Common stock, $0.001 par value; 150,000,000 shares authorized, 14,145,413 shares issued and outstanding at March 31, 2018 |  |  | 14 |  |  |  | - |  |  |  |  | 14 |
Additional paid-in capital |  |  | 84,518 |  |  |  | (20,501 | ) | (a) |  |  | 64,017 |
Accumulated deficit |  |  | (74,060 | ) |  |  | 5,776 |  | (a) |  |  | (68,284 | )
Total shareholders’ equity (deficit) |  |  | 10,472 |  |  |  | (14,725 | ) |  |  |  | (4,253 | )
Total liabilities and shareholders’ equity |  | $ | 12,293 |  |  | $ | - |  |  |  | $ | 12,293 |
|  | Balance Sheet June 30, 2018 |
(In thousands, except share and per share data) |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 14,167 |  |  | $ | - |  |  |  | $ | 14,167 |
Accounts receivable, trade, net of allowance for doubtful accounts of $0 at June 30, 2018 |  |  | 2,166 |  |  |  | - |  |  |  |  | 2,166 |
Inventories |  |  | 2,122 |  |  |  | - |  |  |  |  | 2,122 |
Prepaid expenses and other current assets |  |  | 352 |  |  |  | - |  |  |  |  | 352 |
Total current assets |  |  | 18,807 |  |  |  | - |  |  |  |  | 18,807 |
Property and equipment, net |  |  |  |  |  |  | - |  |  |  |  |  |
Leasehold improvements |  |  | 1,284 |  |  |  | - |  |  |  |  | 1,284 |
Furniture and computer equipment |  |  | 693 |  |  |  | - |  |  |  |  | 693 |
Manufacturing and other equipment |  |  | 1,230 |  |  |  | - |  |  |  |  | 1,230 |
Subtotal |  |  | 3,207 |  |  |  | - |  |  |  |  | 3,207 |
Less: Accumulated depreciation |  |  | (2,163 | ) |  |  | - |  |  |  |  | (2,163 | )
Net property and equipment |  |  | 1,044 |  |  |  | - |  |  |  |  | 1,044 |
Investment in SAVSU |  |  | 1,900 |  |  |  | - |  |  |  |  | 1,900 |
Long-term deposits |  |  | 36 |  |  |  | - |  |  |  |  | 36 |
Total assets |  | $ | 21,787 |  |  | $ | - |  |  |  | $ | 21,787 |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 843 |  |  |  | - |  |  |  |  | 843 |
Accrued expenses and other current liabilities |  |  | 173 |  |  |  | - |  |  |  |  | 173 |
Accrued compensation |  |  | 518 |  |  |  | - |  |  |  |  | 518 |
Deferred rent, current portion |  |  | 130 |  |  |  | - |  |  |  |  |  |
Total current liabilities |  |  | 1,664 |  |  |  | - |  |  |  |  | 1,664 |
Deferred rent, long-term |  |  | 423 |  |  |  | - |  |  |  |  | 423 |
Warrant liability |  |  | - |  |  |  | 32,599 |  | (a) |  |  | 32,599 |
Other long-term liabilities |  |  | 45 |  |  |  | - |  |  |  |  | 45 |
Total liabilities |  |  | 2,132 |  |  |  | 32,599 |  |  |  |  | 34,731 |
Commitments and Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 4,250 shares issued and outstanding at June 30, 2018 |  |  | - |  |  |  | - |  |  |  |  | - |
Common stock, $0.001 par value; 150,000,000 shares authorized, 16,107,505 shares issued and outstanding at June 30, 2018 |  |  | 16 |  |  |  | - |  |  |  |  | 16 |
Additional paid-in capital |  |  | 92,654 |  |  |  | (10,892 | ) | (a) |  |  | 81,762 |
Accumulated deficit |  |  | (73,015 | ) |  |  | (21,707 | ) | (a) |  |  | (94,722 | )
Total shareholders’ equity (deficit) |  |  | 19,655 |  |  |  | (32,599 | ) |  |  |  | (12,944 | )
Total liabilities and shareholders’ equity |  | $ | 21,787 |  |  | $ | - |  |  |  | $ | 21,787 |
|  | Balance Sheet September 30, 2018 |
(In thousands, except share and per share data) |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 32,381 |  |  | $ | - |  |  |  | $ | 32,381 |
Accounts receivable, trade, net of allowance for doubtful accounts of $0 at September 30, 2018 |  |  | 2,699 |  |  |  | - |  |  |  |  | 2,699 |
Inventories |  |  | 2,911 |  |  |  | - |  |  |  |  | 2,911 |
Prepaid expenses and other current assets |  |  | 298 |  |  |  | - |  |  |  |  | 298 |
Total current assets |  |  | 38,289 |  |  |  | - |  |  |  |  | 38,289 |
Property and equipment, net |  |  |  |  |  |  | - |  |  |  |  |  |
Leasehold improvements |  |  | 1,284 |  |  |  | - |  |  |  |  | 1,284 |
Furniture and computer equipment |  |  | 706 |  |  |  | - |  |  |  |  | 706 |
Manufacturing and other equipment |  |  | 1,511 |  |  |  | - |  |  |  |  | 1,511 |
Subtotal |  |  | 3,501 |  |  |  | - |  |  |  |  | 3,501 |
Less: Accumulated depreciation |  |  | (2,234 | ) |  |  | - |  |  |  |  | (2,234 | )
Net property and equipment |  |  | 1,267 |  |  |  | - |  |  |  |  | 1,267 |
Investment in SAVSU |  |  | 6,857 |  |  |  | - |  |  |  |  | 6,857 |
Long-term deposits |  |  | 36 |  |  |  | - |  |  |  |  | 36 |
Total assets |  | $ | 46,449 |  |  | $ | - |  |  |  | $ | 46,449 |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 1,090 |  |  |  | - |  |  |  |  | 1,090 |
Accrued expenses and other current liabilities |  |  | 162 |  |  |  | - |  |  |  |  | 162 |
Accrued compensation |  |  | 713 |  |  |  | - |  |  |  |  | 713 |
Deferred rent, current portion |  |  | 130 |  |  |  | - |  |  |  |  |  |
Total current liabilities |  |  | 2,095 |  |  |  | - |  |  |  |  | 2,095 |
Deferred rent, long-term |  |  | 386 |  |  |  | - |  |  |  |  | 386 |
Warrant liability |  |  | - |  |  |  | 50,425 |  | (a) |  |  | 50,425 |
Other long-term liabilities |  |  | 38 |  |  |  | - |  |  |  |  | 38 |
Total liabilities |  |  | 2,519 |  |  |  | 50,425 |  |  |  |  | 52,944 |
Commitments and Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 4,250 shares issued and outstanding at September 30, 2018 |  |  | - |  |  |  | - |  |  |  |  | - |
Common stock, $0.001 par value; 150,000,000 shares authorized, 18,237,425 shares issued and outstanding at September 30, 2018 |  |  | 18 |  |  |  | - |  |  |  |  | 18 |
Additional paid-in capital |  |  | 115,776 |  |  |  | (3,021 | ) | (a) |  |  | 112,755 |
Accumulated deficit |  |  | (71,864 | ) |  |  | (47,404 | ) | (a) |  |  | (119,268 | )
Total shareholders’ equity (deficit) |  |  | 43,930 |  |  |  | (50,425 | ) |  |  |  | (6,495 | )
Total liabilities and shareholders’ equity |  | $ | 46,449 |  |  | $ | - |  |  |  | $ | 46,449 |
|  | Balance Sheet March 31, 2019 |
(In thousands, except share and per share data) |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 31,824 |  |  | $ | - |  |  |  | $ | 31,824 |
Accounts receivable, trade, net of allowance for doubtful accounts of $0 at March 31, 2019 |  |  | 2,927 |  |  |  | - |  |  |  |  | 2,927 |
Inventories |  |  | 4,060 |  |  |  | - |  |  |  |  | 4,060 |
Prepaid expenses and other current assets |  |  | 346 |  |  |  | - |  |  |  |  | 346 |
Total current assets |  |  | 39,157 |  |  |  | - |  |  |  |  | 39,157 |
Property and equipment, net |  |  |  |  |  |  |  |  |  |  |  |  |
Leasehold improvements |  |  | 1,284 |  |  |  | - |  |  |  |  | 1,284 |
Furniture and computer equipment |  |  | 704 |  |  |  | - |  |  |  |  | 704 |
Manufacturing and other equipment |  |  | 1,803 |  |  |  | - |  |  |  |  | 1,803 |
Subtotal |  |  | 3,791 |  |  |  | - |  |  |  |  | 3,791 |
Less: Accumulated depreciation |  |  | (2,424 | ) |  |  | - |  |  |  |  | (2,424 | )
Net property and equipment |  |  | 1,367 |  |  |  | - |  |  |  |  | 1,367 |
Operating lease right-of-use assets |  |  | 1,196 |  |  |  | - |  |  |  |  | 1,196 |
Investment in SAVSU |  |  | 6,317 |  |  |  | - |  |  |  |  | 6,317 |
Long-term deposits |  |  | 36 |  |  |  | - |  |  |  |  | 36 |
Total assets |  | $ | 48,073 |  |  | $ | - |  |  |  | $ | 48,073 |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 1,264 |  |  |  | - |  |  |  |  | 1,264 |
Accrued expenses and other current liabilities |  |  | 142 |  |  |  | - |  |  |  |  | 142 |
Accrued compensation |  |  | 630 |  |  |  | - |  |  |  |  | 630 |
Lease liability - operating, current position |  |  | 651 |  |  |  | - |  |  |  |  | 651 |
Lease liability - financing, current position |  |  | 14 |  |  |  | - |  |  |  |  | 14 |
Total current liabilities |  |  | 2,701 |  |  |  | - |  |  |  |  | 2,701 |
Long-term lease liability - operating |  |  | 980 |  |  |  | - |  |  |  |  | 980 |
Long-term lease liability - financing |  |  | 13 |  |  |  | - |  |  |  |  | 13 |
Warrant liability |  |  | - |  |  |  | 48,106 |  | (a) |  |  | 48,106 |
Other long-term liabilities |  |  | 13 |  |  |  | - |  |  |  |  | 13 |
Total liabilities |  |  | 3,707 |  |  |  | 48,106 |  |  |  |  | 51,813 |
Commitments and Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 0 shares issued and outstanding at March 31, 2019 |  |  | - |  |  |  | - |  |  |  |  | - |
Common stock, $0.001 par value; 150,000,000 shares authorized, 18,717,095 shares issued and outstanding at March 31, 2019 |  |  | 19 |  |  |  | - |  |  |  |  | 19 |
Additional paid-in capital |  |  | 114,951 |  |  |  | (1,154 | ) | (a) |  |  | 113,797 |
Accumulated deficit |  |  | (70,604 | ) |  |  | (46,952 | ) | (a) |  |  | (117,556 | )
Total shareholders’ equity (deficit) |  |  | 44,366 |  |  |  | (48,106 | ) |  |  |  | (3,740 | )
Total liabilities and shareholders’ equity |  | $ | 48,073 |  |  | $ | - |  |  |  | $ | 48,073 |
|  | Balance Sheet June 30, 2019 |
(In thousands, except share and per share data) |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 19,617 |  |  | $ | - |  |  |  | $ | 19,617 |
Accounts receivable, trade, net of allowance for doubtful accounts of $26 at June 30, 2019 |  |  | 3,832 |  |  |  | - |  |  |  |  | 3,832 |
Inventories |  |  | 5,306 |  |  |  | - |  |  |  |  | 5,306 |
Prepaid expenses and other current assets |  |  | 384 |  |  |  | - |  |  |  |  | 384 |
Total current assets |  |  | 29,139 |  |  |  | - |  |  |  |  | 29,139 |
Property and equipment, net |  |  |  |  |  |  |  |  |  |  |  |  |
Leasehold improvements |  |  | 1,284 |  |  |  | - |  |  |  |  | 1,284 |
Furniture and computer equipment |  |  | 577 |  |  |  | - |  |  |  |  | 577 |
Manufacturing and other equipment |  |  | 1,733 |  |  |  | - |  |  |  |  | 1,733 |
Subtotal |  |  | 3,594 |  |  |  | - |  |  |  |  | 3,594 |
Less: Accumulated depreciation |  |  | (2,276 | ) |  |  | - |  |  |  |  | (2,276 | )
Net property and equipment |  |  | 1,318 |  |  |  | - |  |  |  |  | 1,318 |
Operating lease right-of-use assets |  |  | 1,079 |  |  |  | - |  |  |  |  | 1,079 |
Investment in SAVSU |  |  | 6,100 |  |  |  | - |  |  |  |  | 6,100 |
Intangible assets, net |  |  | 4,446 |  |  |  | (430 | ) | (c) |  |  | 4,016 |
Goodwill |  |  | 9,524 |  |  |  | (9 | ) | (b),(c) |  |  | 9,515 |
Long-term deposits |  |  | 136 |  |  |  | - |  |  |  |  | 136 |
Total assets |  | $ | 51,742 |  |  | $ | (439 | ) |  |  | $ | 51,303 |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 876 |  |  |  | - |  |  |  |  | 876 |
Accrued expenses and other current liabilities |  |  | 204 |  |  |  | - |  |  |  |  | 204 |
Accrued compensation |  |  | 963 |  |  |  | - |  |  |  |  | 963 |
Lease liability - operating, current position |  |  | 665 |  |  |  | - |  |  |  |  | 665 |
Lease liability - financing, current position |  |  | 14 |  |  |  | - |  |  |  |  | 14 |
Contingent consideration - current |  |  | 371 |  |  |  | 70 |  | (b) |  |  | 441 |
Total current liabilities |  |  | 3,093 |  |  |  | 70 |  |  |  |  | 3,163 |
Long-term lease liability - operating |  |  | 806 |  |  |  | - |  |  |  |  | 806 |
Long-term lease liability - financing |  |  | 10 |  |  |  | - |  |  |  |  | 10 |
Warrant liability |  |  | - |  |  |  | 44,194 |  | (a) |  |  | 44,194 |
Other long-term liabilities |  |  | 7 |  |  |  | - |  |  |  |  | 7 |
Contingent consideration - long-term |  |  | 1,560 |  |  |  | (509 | ) | (b) |  |  | 1,051 |
Total liabilities |  |  | 5,476 |  |  |  | 43,755 |  |  |  |  | 49,231 |
Commitments and Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 0 shares issued and outstanding at June 30, 2019 |  |  | - |  |  |  | - |  |  |  |  | - |
Common stock, $0.001 par value; 150,000,000 shares authorized, 18,898,609 shares issued and outstanding at June 30, 2019 |  |  | 19 |  |  |  | - |  |  |  |  | 19 |
Additional paid-in capital |  |  | 116,013 |  |  |  | (656 | ) | (a) |  |  | 115,357 |
Accumulated deficit |  |  | (69,766 | ) |  |  | (43,538 | ) | (a),(d) |  |  | (113,304 | )
Total shareholders’ equity (deficit) |  |  | 46,266 |  |  |  | (44,194 | ) |  |  |  | 2,072 |
Total liabilities and shareholders’ equity |  | $ | 51,742 |  |  | $ | (439 | ) |  |  | $ | 51,303 |
|  | Balance Sheet September 30, 2019 |
(In thousands, except share and per share data) |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 21,205 |  |  | $ | - |  |  |  | $ | 21,205 |
Accounts receivable, trade, net of allowance for doubtful accounts of $68 at September 30, 2019 |  |  | 4,313 |  |  |  | - |  |  |  |  | 4,313 |
Inventories |  |  | 5,694 |  |  |  | - |  |  |  |  | 5,694 |
Prepaid expenses and other current assets |  |  | 855 |  |  |  | - |  |  |  |  | 855 |
Total current assets |  |  | 32,067 |  |  |  | - |  |  |  |  | 32,067 |
Property and equipment, net |  |  |  |  |  |  | - |  |  |  |  |  |
Leasehold improvements |  |  | 1,599 |  |  |  | - |  |  |  |  | 1,599 |
Furniture and computer equipment |  |  | 588 |  |  |  | - |  |  |  |  | 588 |
Manufacturing and other equipment |  |  | 2,247 |  |  |  | - |  |  |  |  | 2,247 |
Subtotal |  |  | 4,434 |  |  |  | - |  |  |  |  | 4,434 |
Less: Accumulated depreciation |  |  | (2,298 | ) |  |  | - |  |  |  |  | (2,298 | )
Net property and equipment |  |  | 2,136 |  |  |  | - |  |  |  |  | 2,136 |
Assets held for rent, net |  |  | 2,976 |  |  |  |  |  |  |  |  | 2,976 |
Operating lease right-of-use assets |  |  | 1,177 |  |  |  | - |  |  |  |  | 1,177 |
Investment in SAVSU |  |  | 1,000 |  |  |  | - |  |  |  |  | 1,000 |
Intangible assets, net |  |  | 16,485 |  |  |  | (430 | ) | (c) |  |  | 16,055 |
Goodwill |  |  | 28,351 |  |  |  | (9 | ) | (b),(c) |  |  | 28,342 |
Long-term deposits |  |  | 36 |  |  |  | - |  |  |  |  | 36 |
Total assets |  | $ | 84,228 |  |  | $ | (439 | ) |  |  | $ | 83,789 |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 1,570 |  |  |  | - |  |  |  |  | 1,570 |
Accrued expenses and other current liabilities |  |  | 642 |  |  |  | - |  |  |  |  | 642 |
Accrued compensation |  |  | 1,576 |  |  |  | - |  |  |  |  | 1,576 |
Lease liability - operating, current position |  |  | 771 |  |  |  | - |  |  |  |  | 771 |
Lease liability - financing, current position |  |  | 14 |  |  |  | - |  |  |  |  | 14 |
Contingent consideration - current |  |  | 371 |  |  |  | 70 |  | (b) |  |  | 441 |
Total current liabilities |  |  | 4,944 |  |  |  | 70 |  |  |  |  | 5,014 |
Long-term lease liability - operating |  |  | 753 |  |  |  | - |  |  |  |  | 753 |
Long-term lease liability - financing |  |  | 6 |  |  |  | - |  |  |  |  | 6 |
Warrant liability |  |  | - |  |  |  | 41,771 |  | (a) |  |  | 41,771 |
Other long-term liabilities |  |  | 3 |  |  |  | - |  |  |  |  | 3 |
Contingent consideration - long-term |  |  | 1,560 |  |  |  | (509 | ) | (b) |  |  | 1,051 |
Total liabilities |  |  | 7,266 |  |  |  | 41,332 |  |  |  |  | 48,598 |
Commitments and Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 0 shares issued and outstanding at September 30, 2019 |  |  |  |  |  |  | - |  |  |  |  | - |
Common stock, $0.001 par value; 150,000,000 shares authorized, 20,344,825 shares issued and outstanding at June 30, 2019 |  |  | 20 |  |  |  | - |  |  |  |  | 20 |
Additional paid-in capital |  |  | 137,392 |  |  |  | 814 |  | (a) |  |  | 138,206 |
Accumulated deficit |  |  | (60,450 | ) |  |  | (42,585 | ) | (a),(d) |  |  | (103,035 | )
Total shareholders’ equity (deficit) |  |  | 76,962 |  |  |  | (41,771 | ) |  |  |  | 35,191 |
Total liabilities and shareholders’ equity |  | $ | 84,228 |  |  | $ | (439 | ) |  |  | $ | 83,789 |
Consolidated Statements of Operations (unaudited)
(In thousands, except per share and share data ) |  | Statement of Operations Three Months Ending March 31, 2018 |
|  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Revenue |  | $ | 3,815 |  |  | $ | - |  |  |  | $ | 3,815 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  |  | 1,364 |  |  |  | - |  |  |  |  | 1,364 |
Research and development |  |  | 346 |  |  |  | - |  |  |  |  | 346 |
Sales and marketing |  |  | 612 |  |  |  | - |  |  |  |  | 612 |
General and administrative |  |  | 1,353 |  |  |  | - |  |  |  |  | 1,353 |
Total operating expenses |  |  | 3,675 |  |  |  | - |  |  |  |  | 3,675 |
Operating income (loss) |  |  | 140 |  |  |  | - |  |  |  |  | 140 |
Other income (expenses) |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of warrant liability |  |  | - |  |  |  | 4,870 |  | (a) |  |  | 4,870 |
Interest income |  |  | 8 |  |  |  | - |  |  |  |  | 8 |
Interest expense |  |  | (1 | ) |  |  | - |  |  |  |  | (1 | )
Loss from equity-method investment in SAVSU |  |  | (144 | ) |  |  | - |  |  |  |  | (144 | )
Total other income (expenses) |  |  | (137 | ) |  |  | 4,870 |  |  |  |  | 4,733 |
Net income (loss) |  |  | 3 |  |  |  | 4,870 |  |  |  |  | 4,873 |
Less: Preferred stock dividends |  |  | (106 | ) |  |  | - |  |  |  |  | (106 | )
Net income (loss) attributable to common stockholders |  | $ | (103 | ) |  | $ | 4,870 |  |  |  | $ | 4,767 |
Net income (loss) attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (103 | ) |  | $ | 3,250 |  |  |  | $ | 3,147 |
Diluted |  | $ | (103 | ) |  | $ | (179 | ) |  |  | $ | (282 | )
Earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.01 | ) |  | $ | 0.23 |  |  |  | $ | 0.22 |
Diluted |  | $ | (0.01 | ) |  | $ | (0.01 | ) |  |  | $ | (0.02 | )
Weighted average shares used to compute earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 14,098,610 |  |  |  | - |  |  |  |  | 14,098,610 |
Diluted |  |  | 14,098,610 |  |  |  | - |  |  |  |  | 14,098,610 |
(In thousands, except per share and share data) |  | Statement of Operations Three Months Ending June 30, 2018 |  |  | Statement of Operations Six Months Ending June 30, 2018 |
|  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |  |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Revenue |  | $ | 5,178 |  |  | $ | - |  |  |  | $ | 5,178 |  |  | $ | 8,993 |  |  | $ | - |  |  |  | $ | 8,993 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  |  | 1,537 |  |  |  | - |  |  |  |  | 1,537 |  |  |  | 2,901 |  |  |  | - |  |  |  |  | 2,901 |
Research and development |  |  | 325 |  |  |  | - |  |  |  |  | 325 |  |  |  | 671 |  |  |  | - |  |  |  |  | 671 |
Sales and marketing |  |  | 641 |  |  |  | - |  |  |  |  | 641 |  |  |  | 1,253 |  |  |  | - |  |  |  |  | 1,253 |
General and administrative |  |  | 1,390 |  |  |  | - |  |  |  |  | 1,390 |  |  |  | 2,744 |  |  |  | - |  |  |  |  | 2,744 |
Total operating expenses |  |  | 3,893 |  |  |  | - |  |  |  |  | 3,893 |  |  |  | 7,569 |  |  |  | - |  |  |  |  | 7,569 |
Operating income (loss) |  |  | 1,285 |  |  |  | - |  |  |  |  | 1,285 |  |  |  | 1,424 |  |  |  | - |  |  |  |  | 1,424 |
Other income (expenses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of warrant liability |  |  | - |  |  |  | (27,485 | ) | (a) |  |  | (27,485 | ) |  |  | - |  |  |  | (22,615 | ) | (a) |  |  | (22,615 | )
Interest income |  |  | 32 |  |  |  | - |  |  |  |  | 32 |  |  |  | 41 |  |  |  | - |  |  |  |  | 41 |
Interest expense |  |  | (1 | ) |  |  | - |  |  |  |  | (1 | ) |  |  | (1 | ) |  |  | - |  |  |  |  | (1 | )
Loss from equity-method investment in SAVSU |  |  | (177 | ) |  |  | - |  |  |  |  | (177 | ) |  |  | (321 | ) |  |  | - |  |  |  |  | (321 | )
Total other income (expenses) |  |  | (146 | ) |  |  | (27,485 | ) |  |  |  | (27,631 | ) |  |  | (281 | ) |  |  | (22,615 | ) |  |  |  | (22,896 | )
Net income (loss) |  |  | 1,139 |  |  |  | (27,485 | ) |  |  |  | (26,346 | ) |  |  | 1,143 |  |  |  | (22,615 | ) |  |  |  | (21,472 | )
Less: Preferred stock dividends |  |  | (93 | ) |  |  | - |  |  |  |  | (93 | ) |  |  | (200 | ) |  |  | - |  |  |  |  | (200 | )
Net income (loss) attributable to common stockholders |  |  | 1,046 |  |  |  | (27,485 | ) |  |  |  | (26,439 | ) |  |  | 943 |  |  |  | (22,615 | ) |  |  |  | (21,672 | )
Net income (loss) attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1,046 |  |  | $ | (27,485 | ) |  |  | $ | (26,439 | ) |  | $ | 943 |  |  | $ | (22,614 | ) |  |  | $ | (21,672 | )
Diluted |  | $ | 1,046 |  |  | $ | (27,485 | ) |  |  | $ | (26,439 | ) |  | $ | 943 |  |  | $ | (22,614 | ) |  |  | $ | (21,672 | )
Earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.07 |  |  | $ | (1.81 | ) |  |  | $ | (1.74 | ) |  | $ | 0.06 |  |  | $ | (1.54 | ) |  |  | $ | (1.48 | )
Diluted |  | $ | 0.05 |  |  | $ | (1.79 | ) |  |  | $ | (1.74 | ) |  | $ | 0.05 |  |  | $ | (1.53 | ) |  |  | $ | (1.48 | )
Weighted average shares used to compute earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 15,180,169 |  |  |  | - |  |  |  |  | 15,180,169 |  |  |  | 14,642,378 |  |  |  | - |  |  |  |  | 14,642,378 |
Diluted |  |  | 20,374,358 |  |  |  | (5,194,189 | ) |  |  |  | 15,180,169 |  |  |  | 19,063,595 |  |  |  | (4,421,217 | ) |  |  |  | 14,642,378 |
(In thousands, except per share and share data) |  | Statement of Operations Three Months Ending September 30, 2018 |  |  | Statement of Operations Nine Months Ending September 30, 2018 |
|  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |  |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Revenue |  | $ | 5,293 |  |  | $ | - |  |  |  | $ | 5,293 |  |  | $ | 14,286 |  |  | $ | - |  |  |  | $ | 14,286 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  |  | 1,606 |  |  |  | - |  |  |  |  | 1,606 |  |  |  | 4,507 |  |  |  | - |  |  |  |  | 4,507 |
Research and development |  |  | 312 |  |  |  | - |  |  |  |  | 312 |  |  |  | 983 |  |  |  | - |  |  |  |  | 983 |
Sales and marketing |  |  | 725 |  |  |  | - |  |  |  |  | 725 |  |  |  | 1,978 |  |  |  | - |  |  |  |  | 1,978 |
General and administrative |  |  | 1,455 |  |  |  | - |  |  |  |  | 1,455 |  |  |  | 4,199 |  |  |  | - |  |  |  |  | 4,199 |
Total operating expenses |  |  | 4,098 |  |  |  | - |  |  |  |  | 4,098 |  |  |  | 11,667 |  |  |  | - |  |  |  |  | 11,667 |
Operating income (loss) |  |  | 1,195 |  |  |  | - |  |  |  |  | 1,195 |  |  |  | 2,619 |  |  |  | - |  |  |  |  | 2,619 |
Other income (expenses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of warrant liability |  |  | - |  |  |  | (25,696 | ) | (a) |  |  | (25,696 | ) |  |  | - |  |  |  | (48,311 | ) | (a) |  |  | (48,311 | )
Interest income |  |  | 80 |  |  |  | - |  |  |  |  | 80 |  |  |  | 121 |  |  |  | - |  |  |  |  | 121 |
Interest expense |  |  | (1 | ) |  |  | - |  |  |  |  | (1 | ) |  |  | (4 | ) |  |  | - |  |  |  |  | (4 | )
Loss from equity-method investment in SAVSU |  |  | (43 | ) |  |  | - |  |  |  |  | (43 | ) |  |  | (363 | ) |  |  | - |  |  |  |  | (363 | )
Total other income (expenses) |  |  | 36 |  |  |  | (25,696 | ) |  |  |  | (25,660 | ) |  |  | (246 | ) |  |  | (48,311 | ) |  |  |  | (48,557 | )
Net income (loss) |  |  | 1,231 |  |  |  | (25,696 | ) |  |  |  | (24,465 | ) |  |  | 2,373 |  |  |  | (48,311 | ) |  |  |  | (45,938 | )
Less: Preferred stock dividends |  |  | (80 | ) |  |  | - |  |  |  |  | (80 | ) |  |  | (279 | ) |  |  | - |  |  |  |  | (279 | )
Net income (loss) attributable to common stockholders |  |  | 1,151 |  |  |  | (25,696 | ) |  |  |  | (24,545 | ) |  |  | 2,094 |  |  |  | (48,311 | ) |  |  |  | (46,217 | )
Net income (loss) attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1,151 |  |  | $ | (25,696 | ) |  |  | $ | (24,545 | ) |  | $ | 2,094 |  |  | $ | (48,311 | ) |  |  | $ | (46,217 | )
Diluted |  | $ | 1,151 |  |  | $ | (25,696 | ) |  |  | $ | (24,545 | ) |  | $ | 2,094 |  |  | $ | (48,311 | ) |  |  | $ | (46,217 | )
Earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.07 |  |  | $ | (1.49 | ) |  |  | $ | (1.42 | ) |  | $ | 0.13 |  |  | $ | (3.11 | ) |  |  | $ | (2.98 | )
Diluted |  | $ | 0.05 |  |  | $ | (1.47 | ) |  |  | $ | (1.42 | ) |  | $ | 0.10 |  |  | $ | (3.08 | ) |  |  | $ | (2.98 | )
Weighted average shares used to compute earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 17,273,412 |  |  |  | - |  |  |  |  | 17,273,412 |  |  |  | 15,529,026 |  |  |  | - |  |  |  |  | 15,529,026 |
Diluted |  |  | 23,656,633 |  |  |  | (6,383,221 | ) |  |  |  | 17,273,412 |  |  |  | 21,051,219 |  |  |  | (5,522,193 | ) |  |  |  | 15,529,026 |
(In thousands, except per share and share data) |  | Statement of Operations Three Months Ending March 31, 2019 |
|  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Revenue |  | $ | 5,770 |  |  | $ | - |  |  |  | $ | 5,770 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  |  | 1,647 |  |  |  | - |  | (e) |  |  | 1,647 |
Research and development |  |  | 372 |  |  |  | (13 | ) | (d),(e) |  |  | 359 |
Sales and marketing |  |  | 848 |  |  |  | (11 | ) | (d),(e) |  |  | 837 |
General and administrative |  |  | 2,204 |  |  |  | (51 | ) | (d) |  |  | 2,153 |
Acquisition Costs |  |  | 208 |  |  |  | - |  |  |  |  | 208 |
Total operating expenses |  |  | 5,279 |  |  |  | (75 | ) |  |  |  | 5,204 |
Operating income (loss) |  |  | 491 |  |  |  | 75 |  |  |  |  | 566 |
Other income (expenses) |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of warrant liability |  |  | - |  |  |  | (19,663 | ) | (a) |  |  | (19,663 | )
Interest income |  |  | 171 |  |  |  | - |  |  |  |  | 171 |
Interest expense |  |  | (3 | ) |  |  | - |  |  |  |  | (3 | )
Loss from equity-method investment in SAVSU |  |  | (232 | ) |  |  | - |  |  |  |  | (232 | )
Total other income (expenses) |  |  | (64 | ) |  |  | (19,663 | ) |  |  |  | (19,727 | )
Income (loss) before provision for income taxes |  |  | 427 |  |  |  | (19,588 | ) |  |  |  | (19,161 | )
Income taxes |  |  | - |  |  |  | - |  |  |  |  | - |
Net income (loss) |  |  | 427 |  |  |  | (19,588 | ) |  |  |  | (19,161 | )
Net income (loss) attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 427 |  |  | $ | (19,588 | ) |  |  | $ | (19,161 | )
Diluted |  | $ | 427 |  |  | $ | (19,588 | ) |  |  | $ | (19,161 | )
Earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.02 |  |  | $ | (1.05 | ) |  |  | $ | (1.03 | )
Diluted |  | $ | 0.02 |  |  | $ | (1.05 | ) |  |  | $ | (1.03 | )
Weighted average shares used to compute earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 18,648,397 |  |  |  | - |  |  |  |  | 18,648,397 |
Diluted |  |  | 24,358,475 |  |  |  | (5,710,078 | ) |  |  |  | 18,648,397 |
(In thousands, except per share and share data) |  | Statement of Operation Three Months Ending June 30, 2019 |  |  | Statement of Operations Six Months Ending June 30, 2019 |
|  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |  |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Revenue |  | $ | 6,701 |  |  | $ | - |  |  |  | $ | 6,701 |  |  | $ | 12,471 |  |  | $ | - |  |  |  | $ | 12,471 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of product revenue (exclusive of intangible assets amortization) |  |  | 1,958 |  |  |  | 10 |  | (d),(e) |  |  | 1,968 |  |  |  | 3,606 |  |  |  | 10 |  | (d),(e) |  |  | 3,616 |
Research and development |  |  | 739 |  |  |  | (48 | ) | (d),(e) |  |  | 691 |  |  |  | 1,111 |  |  |  | (61 | ) | (d),(e) |  |  | 1,050 |
Sales and marketing |  |  | 928 |  |  |  | 17 |  | (d),(e) |  |  | 945 |  |  |  | 1,776 |  |  |  | 6 |  | (d),(e) |  |  | 1,782 |
General and administrative |  |  | 2,118 |  |  |  | 89 |  | (d) |  |  | 2,207 |  |  |  | 4,321 |  |  |  | 38 |  | (d) |  |  | 4,359 |
Amort of Intangibles |  |  | - |  |  |  | 104 |  | (e) |  |  | 104 |  |  |  | - |  |  |  | 104 |  | (e) |  |  | 104 |
Acquisition Costs |  |  | 39 |  |  |  | - |  |  |  |  | 39 |  |  |  | 247 |  |  |  | - |  |  |  |  | 247 |
Total operating expenses |  |  | 5,782 |  |  |  | 172 |  |  |  |  | 5,954 |  |  |  | 11,061 |  |  |  | 97 |  |  |  |  | 11,158 |
Operating income (loss) |  |  | 919 |  |  |  | (172 | ) |  |  |  | 747 |  |  |  | 1,410 |  |  |  | (97 | ) |  |  |  | 1,313 |
Other income (expenses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of warrant liability |  |  | - |  |  |  | 3,586 |  | (a) |  |  | 3,586 |  |  |  | - |  |  |  | (16,077 | ) | (a) |  |  | (16,077 | )
Interest income |  |  | 137 |  |  |  | - |  |  |  |  | 137 |  |  |  | 307 |  |  |  | - |  |  |  |  | 307 |
Interest expense |  |  | (1 | ) |  |  | - |  |  |  |  | (1 | ) |  |  | (4 | ) |  |  | - |  |  |  |  | (4 | )
Other Expense |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |
Loss from equity-method investment in SAVSU |  |  | (217 | ) |  |  | - |  |  |  |  | (217 | ) |  |  | (448 | ) |  |  | - |  |  |  |  | (448 | )
Gain on Acquisition of SAVSU |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |
Total other income (expenses) |  |  | (81 | ) |  |  | 3,586 |  |  |  |  | 3,505 |  |  |  | (145 | ) |  |  | (16,077 | ) |  |  |  | (16,222 | )
Income (loss) before provision for income taxes |  |  | 838 |  |  |  | 3,414 |  |  |  |  | 4,252 |  |  |  | 1,265 |  |  |  | (16,174 | ) |  |  |  | (14,909 | )
Income taxes |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |
Net income (loss) |  |  | 838 |  |  |  | 3,414 |  |  |  |  | 4,252 |  |  |  | 1,265 |  |  |  | (16,174 | ) |  |  |  | (14,909 | )
Net income (loss) attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 838 |  |  | $ | 2,587 |  |  |  | $ | 3,425 |  |  | $ | 1,265 |  |  | $ | (16,174 | ) |  |  | $ | (14,909 | )
Diluted |  | $ | 838 |  |  | $ | (293 | ) |  |  | $ | 545 |  |  | $ | 1,265 |  |  | $ | (16,174 | ) |  |  | $ | (14,909 | )
Earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.04 |  |  | $ | 0.14 |  |  |  | $ | 0.18 |  |  | $ | 0.07 |  |  | $ | (0.87 | ) |  |  | $ | (0.80 | )
Diluted |  | $ | 0.03 |  |  | $ | (0.01 | ) |  |  | $ | 0.02 |  |  | $ | 0.05 |  |  | $ | (0.85 | ) |  |  | $ | (0.80 | )
Weighted average shares used to compute earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 18,819,459 |  |  |  | - |  |  |  |  | 18,819,459 |  |  |  | 18,734,401 |  |  |  | - |  |  |  |  | 18,734,401 |
Diluted |  |  | 24,539,299 |  |  |  | - |  |  |  |  | 24,539,299 |  |  |  | 24,439,959 |  |  |  | (5,705,558 | ) |  |  |  | 18,734,401 |
(In thousands, except per share and share data) |  | Statement of Operations Three Months Ending September 30, 2019 |  |  | Statement of Operations Nine Months Ending September 30, 2019 |
|  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |  |  | As Previously Reported |  |  | Adjustments |  |  |  | As Restated |
Revenue |  | $ | 6,604 |  |  | $ | - |  |  |  | $ | 6,604 |  |  | $ | 19,075 |  |  | $ | - |  |  |  | $ | 19,075 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of product and rental revenue (exclusive of intangible assets amortization) |  |  | 2,084 |  |  |  | 10 |  | (d),(e) |  |  | 2,094 |  |  |  | 5,690 |  |  |  | 20 |  | (d),(e) |  |  | 5,710 |
Research and development |  |  | 1,309 |  |  |  | (277 | ) | (d),(e) |  |  | 1,032 |  |  |  | 2,420 |  |  |  | (338 | ) | (d),(e) |  |  | 2,082 |
Sales and marketing |  |  | 1,259 |  |  |  | (9 | ) | (d),(e) |  |  | 1,250 |  |  |  | 3,035 |  |  |  | (3 | ) | (d),(e) |  |  | 3,032 |
General and administrative |  |  | 2,258 |  |  |  | 90 |  | (d) |  |  | 2,348 |  |  |  | 6,579 |  |  |  | 128 |  | (d) |  |  | 6,707 |
Amort of Intangibles |  |  | - |  |  |  | 361 |  | (e) |  |  | 361 |  |  |  | - |  |  |  | 465 |  | (e) |  |  | 465 |
Acquisition Costs |  |  | 291 |  |  |  | - |  |  |  |  | 291 |  |  |  | 538 |  |  |  | - |  |  |  |  | 538 |
Total operating expenses |  |  | 7,201 |  |  |  | 175 |  |  |  |  | 7,376 |  |  |  | 18,262 |  |  |  | 272 |  |  |  |  | 18,534 |
Operating income (loss) |  |  | (597 | ) |  |  | (175 | ) |  |  |  | (772 | ) |  |  | 813 |  |  |  | (272 | ) |  |  |  | 541 |
Other income (expenses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of warrant liability |  |  | - |  |  |  | 1,128 |  | (a) |  |  | 1,128 |  |  |  | - |  |  |  | (14,949 | ) | (a) |  |  | (14,949 | )
Interest income |  |  | 110 |  |  |  | - |  |  |  |  | 110 |  |  |  | 417 |  |  |  | - |  |  |  |  | 417 |
Interest expense |  |  | (1 | ) |  |  | - |  |  |  |  | (1 | ) |  |  | (5 | ) |  |  | - |  |  |  |  | (5 | )
Other Expense |  |  | (13 | ) |  |  | - |  |  |  |  | (13 | ) |  |  | (13 | ) |  |  | - |  |  |  |  | (13 | )
Loss from equity-method investment in SAVSU |  |  | (291 | ) |  |  | - |  |  |  |  | (291 | ) |  |  | (739 | ) |  |  | - |  |  |  |  | (739 | )
Gain on Acquisition of SAVSU |  |  | 10,108 |  |  |  | - |  |  |  |  | 10,108 |  |  |  | 10,108 |  |  |  | - |  |  |  |  | 10,108 |
Total other income (expenses) |  |  | 9,913 |  |  |  | 1,128 |  |  |  |  | 11,041 |  |  |  | 9,768 |  |  |  | (14,949 | ) |  |  |  | (5,181 | )
Income (loss) before provision for income taxes |  |  | 9,316 |  |  |  | 953 |  |  |  |  | 10,269 |  |  |  | 10,581 |  |  |  | (15,221 | ) |  |  |  | (4,640 | )
Income taxes |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |
Net income (loss) |  |  | 9,316 |  |  |  | 953 |  |  |  |  | 10,269 |  |  |  | 10,581 |  |  |  | (15,221 | ) |  |  |  | (4,640 | )
Net income (loss) attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 9,316 |  |  | $ | (936 | ) |  |  | $ | 8,380 |  |  | $ | 10,581 |  |  | $ | (15,221 | ) |  |  | $ | (4,640 | )
Diluted |  |  | 9,316 |  |  |  | (454 | ) |  |  |  | 8,862 |  |  |  | 10,581 |  |  |  | (15,221 | ) |  |  |  | (4,640 | )
Earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.47 |  |  | $ | (0.05 | ) |  |  | $ | 0.42 |  |  | $ | 0.55 |  |  | $ | (0.79 | ) |  |  | $ | (0.24 | )
Diluted |  | $ | 0.37 |  |  | $ | (0.02 | ) |  |  | $ | 0.35 |  |  | $ | 0.43 |  |  | $ | (0.67 | ) |  |  | $ | (0.24 | )
Weighted average shares used to compute earnings per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 19,735,364 |  |  |  | - |  |  |  |  | 19,735,364 |  |  |  | 19,071,722 |  |  |  | - |  |  |  |  | 19,071,722 |
Diluted |  |  | 25,343,112 |  |  |  | - |  |  |  |  | 25,343,112 |  |  |  | 24,705,424 |  |  |  | (5,633,702 | ) |  |  |  | 19,071,722 |
Consolidated Statements of Cash Flows (unaudited)
|  | Three Months Ended March 30, 2018 |
(In thousands) |  | As Previously Reported |  |  | Adjustments |  |  |  | Restated |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 3 |  |  | $ | 4,870 |  | (a) |  | $ | 4,873 |
Adjustments to reconcile net income to net cash provided by operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 78 |  |  |  | - |  |  |  |  | 78 |
Stock-based compensation |  |  | 373 |  |  |  | - |  |  |  |  | 373 |
Amortization of deferred rent related to lease incentives |  |  | (32 | ) |  |  | - |  |  |  |  | (32 | )
Amortization of debt discount |  |  | - |  |  |  | - |  |  |  |  | - |
Loss from equity method investment in SAVSU |  |  | 144 |  |  |  | - |  |  |  |  | 144 |
Change in fair value of warrant liability |  |  | - |  |  |  | (4,870 | ) | (a) |  |  | (4,870 | )
Change in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, trade, net |  |  | (23 | ) |  |  | - |  |  |  |  | (23 | )
Inventories |  |  | 10 |  |  |  | - |  |  |  |  | 10 |
Prepaid expenses and other current assets |  |  | 12 |  |  |  | - |  |  |  |  | 12 |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | (69 | ) |  |  | - |  |  |  |  | (69 | )
Accrued compensation and other current liabilities |  |  | (101 | ) |  |  | - |  |  |  |  | (101 | )
Deferred rent |  |  | (3 | ) |  |  | - |  |  |  |  | (3 | )
Net cash provided by operating activities |  |  | 392 |  |  |  | - |  |  |  |  | 392 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  | (41 | ) |  |  | - |  |  |  |  | (41 | )
Net cash used in investing activities |  |  | (41 | ) |  |  | - |  |  |  |  | (41 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Payments on equipment loan |  |  | (2 | ) |  |  | - |  |  |  |  | (2 | )
Payments on capital lease obligation |  |  | (3 | ) |  |  | - |  |  |  |  | (3 | )
Proceeds from exercise of common stock options and warrants |  |  | 130 |  |  |  | - |  |  |  |  | 130 |
Payments of preferred stock dividends |  |  | (106 | ) |  |  | - |  |  |  |  | (106 | )
Net cash provided by financing activities |  |  | 19 |  |  |  | - |  |  |  |  | 19 |
Net increase (decrease) in cash and cash equivalents |  |  | 370 |  |  |  | - |  |  |  |  | 370 |
|  |  |  |  |  |  |  |  |  |  |  | - |
Cash and cash equivalents – beginning of period |  |  | 6,663 |  |  |  | - |  |  |  |  | 6,663 |
Cash and cash equivalents – end of year |  | $ | 7,033 |  |  | $ | - |  |  |  | $ | 7,033 |
Non-cash investing and financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Stock issued for services provided in prior period included in liabilities at year-end |  | $ | 36 |  |  | $ | - |  |  |  | $ | 36 |
Purchase of equipment with debt |  |  | 18 |  |  |  | - |  |  |  |  | 18 |
Series A preferred stock dividends accrued not yet paid |  |  | 106 |  |  |  | - |  |  |  |  | 106 |
Reclassification of warrant liabilities to equity upon exercise |  | $ | - |  |  | $ | 29 |  |  |  | $ | 29 |
|  | Six Months Ended June 30, 2018 |
(In thousands ) |  | As Previously Reported |  |  | Adjustments |  |  |  | Restated |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 1,143 |  |  | $ | (22,615 | ) | (a) |  | $ | (21,472 | )
Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 161 |  |  |  | - |  |  |  |  | 161 |
Stock-based compensation |  |  | 748 |  |  |  | - |  |  |  |  | 748 |
Stock issued for services |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of deferred rent related to lease incentives |  |  | (63 | ) |  |  | - |  |  |  |  | (63 | )
Loss from equity method investment in SAVSU |  |  | 321 |  |  |  | - |  |  |  |  | 321 |
Change in fair value of warrant liability |  |  | - |  |  |  | 22,615 |  | (a) |  |  | 22,615 |
Change in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, trade, net |  |  | (1,145 | ) |  |  | - |  |  |  |  | (1,145 | )
Inventories |  |  | (275 | ) |  |  | - |  |  |  |  | (275 | )
Prepaid expenses and other current assets |  |  | (103 | ) |  |  | - |  |  |  |  | (103 | )
Accounts payable |  |  | 168 |  |  |  | - |  |  |  |  | 168 |
Accrued compensation and other current liabilities |  |  | 6 |  |  |  | - |  |  |  |  | 6 |
Deferred rent |  |  | (6 | ) |  |  | - |  |  |  |  | (6 | )
Net cash provided by operating activities |  |  | 955 |  |  |  | - |  |  |  |  | 955 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in equity investment SAVSU |  |  | (1,000 | ) |  |  | - |  |  |  |  | (1,000 | )
Purchase of property and equipment |  |  | (61 | ) |  |  | - |  |  |  |  | (61 | )
Net cash used in investing activities |  |  | (1,061 | ) |  |  | - |  |  |  |  | (1,061 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Payments on equipment loan |  |  | (5 | ) |  |  | - |  |  |  |  | (5 | )
Payments on capital lease obligation |  |  | (7 | ) |  |  | - |  |  |  |  | (7 | )
Proceeds from exercise of common stock options and warrants |  |  | 8,899 |  |  |  | - |  |  |  |  | 8,899 |
Payments of preferred stock dividends |  |  | (213 | ) |  |  | - |  |  |  |  | (213 | )
Payments for redemption of preferred stock |  |  | (1,063 | ) |  |  | - |  |  |  |  | (1,063 | )
Net cash provided by financing activities |  |  | 7,611 |  |  |  | - |  |  |  |  | 7,611 |
Net increase (decrease) in cash and cash equivalents |  |  | 7,505 |  |  |  | - |  |  |  |  | 7,505 |
|  |  |  |  |  |  |  |  |  |  |  | - |
Cash and cash equivalents – beginning of period |  |  | 6,663 |  |  |  | - |  |  |  |  | 6,663 |
Cash and cash equivalents – end of year |  | $ | 14,168 |  |  | $ | - |  |  |  | $ | 14,168 |
Non-cash investing and financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Series A preferred stock dividends accrued not yet paid |  | $ | 93 |  |  | $ | - |  |  |  | $ | 93 |
Stock issued for services provided in prior period included in liabilities at year-end |  |  | 36 |  |  |  | - |  |  |  |  | 36 |
Receivables converted to equity investment in SAVSU |  |  | 150 |  |  |  | - |  |  |  |  | 150 |
Purchase of equipment with debt |  |  | 18 |  |  |  | - |  |  |  |  | 18 |
Purchase of property and equipment not yet paid |  |  | 20 |  |  |  | - |  |  |  |  | 20 |
Reclassification of warrant liabilities to equity upon exercise |  | $ | - |  |  | $ | 9,639 |  |  |  | $ | 9,639 |
|  | Nine Months Ended September 30, 2018 |
(In thousands) |  | As Previously Reported |  |  | Adjustments |  |  |  | Restated |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 2,373 |  |  | $ | (48,311 | ) | (a) |  | $ | (45,938 | )
Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 245 |  |  |  | - |  |  |  |  | 245 |
Stock-based compensation |  |  | 1,131 |  |  |  | - |  |  |  |  | 1,131 |
Stock issued for services |  |  |  |  |  |  |  |  |  |  |  |  |
Write off of deferred financing costs |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of deferred rent related to lease incentives |  |  | (95 | ) |  |  | - |  |  |  |  | (95 | )
Loss from equity method investment in SAVSU |  |  | 363 |  |  |  | - |  |  |  |  | 363 |
Change in fair value of warrant liability |  |  | - |  |  |  | 48,311 |  | (a) |  |  | 48,311 |
Change in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, trade, net |  |  | (1,678 | ) |  |  | - |  |  |  |  | (1,678 | )
Inventories |  |  | (1,064 | ) |  |  | - |  |  |  |  | (1,064 | )
Prepaid expenses and other current assets |  |  | (49 | ) |  |  | - |  |  |  |  | (49 | )
Accounts payable |  |  | 343 |  |  |  | - |  |  |  |  | 343 |
Accrued compensation and other current liabilities |  |  | 205 |  |  |  | - |  |  |  |  | 205 |
Deferred rent |  |  | (11 | ) |  |  | - |  |  |  |  | (11 | )
Net cash provided by operating activities |  |  | 1,763 |  |  |  | - |  |  |  |  | 1,763 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in equity investment SAVSU |  |  | (6,000 | ) |  |  | - |  |  |  |  | (6,000 | )
Purchase of property and equipment |  |  | (339 | ) |  |  | - |  |  |  |  | (339 | )
Net cash used in investing activities |  |  | (6,339 | ) |  |  | - |  |  |  |  | (6,339 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from private equity transaction |  |  | 20,000 |  |  |  | - |  |  |  |  | 20,000 |
Payments on equipment loan |  |  | (9 | ) |  |  | - |  |  |  |  | (9 | )
Payments on capital lease obligation |  |  | (10 | ) |  |  | - |  |  |  |  | (10 | )
Proceeds from exercise of common stock options and warrants |  |  | 11,725 |  |  |  | - |  |  |  |  | 11,725 |
Payments of preferred stock dividends |  |  | (306 | ) |  |  | - |  |  |  |  | (306 | )
Payments for redemption of preferred stock |  |  | (1,063 | ) |  |  | - |  |  |  |  | (1,063 | )
Deferred costs related to security issuance |  |  | (43 | ) |  |  | - |  |  |  |  | (43 | )
Net cash provided by financing activities |  |  | 30,294 |  |  |  | - |  |  |  |  | 30,294 |
Net increase (decrease) in cash and cash equivalents |  |  | 25,718 |  |  |  | - |  |  |  |  | 25,718 |
|  |  |  |  |  |  |  |  |  |  |  | - |
Cash and cash equivalents – beginning of period |  |  | 6,663 |  |  |  | - |  |  |  |  | 6,663 |
Cash and cash equivalents – end of year |  | $ | 32,381 |  |  | $ | - |  |  |  | $ | 32,381 |
Non-cash investing and financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Series A preferred stock dividends accrued not yet paid |  | $ | 80 |  |  | $ | - |  |  |  | $ | 80 |
Stock issued for services provided in prior period included in liabilities at year-end |  |  | 36 |  |  |  | - |  |  |  |  | 36 |
Receivables converted to equity investment in SAVSU |  |  | 150 |  |  |  | - |  |  |  |  | 150 |
Purchase of equipment with debt |  |  | 18 |  |  |  | - |  |  |  |  | 18 |
Legal fees for private equity transaction not yet paid |  |  | 43 |  |  |  | - |  |  |  |  | 43 |
Purchase of property and equipment not yet paid |  |  | 49 |  |  |  | - |  |  |  |  | 49 |
Reclassification of warrant liabilities to equity upon exercise |  | $ | - |  |  | $ | 17,509 |  |  |  | $ | 17,509 |
|  | Three Months Ended March 30, 2019 |
(In thousands) |  | As Previously Reported |  |  | Adjustments |  |  |  | Restated |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 427 |  |  | $ | (19,588 | ) | (a) |  | $ | (19,161 | )
Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 98 |  |  |  | - |  |  |  |  | 98 |
Stock-based compensation |  |  | 606 |  |  |  | (75 | ) | (d) |  |  | 531 |
Amortization of operating lease liability |  |  | (43 | ) |  |  | - |  |  |  |  | (43 | )
Interest expense - finance type lease |  |  | 2 |  |  |  | - |  |  |  |  | 2 |
Loss from equity method investment in SAVSU |  |  | 232 |  |  |  | - |  |  |  |  | 232 |
Change in fair value of warrant liability |  |  | - |  |  |  | 19,663 |  | (a) |  |  | 19,663 |
Change in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, trade, net |  |  | 118 |  |  |  | - |  |  |  |  | 118 |
Inventories |  |  | (551 | ) |  |  | - |  |  |  |  | (551 | )
Prepaid expenses and other current assets |  |  | 6 |  |  |  | - |  |  |  |  | 6 |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 553 |  |  |  | - |  |  |  |  | 553 |
Accrued compensation and other current liabilities |  |  | (302 | ) |  |  | - |  |  |  |  | (302 | )
Net cash provided by operating activities |  |  | 1,146 |  |  |  | - |  |  |  |  | 1,146 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  | (156 | ) |  |  | - |  |  |  |  | (156 | )
Net cash used in investing activities |  |  | (156 | ) |  |  | - |  |  |  |  | (156 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Payments on equipment loan |  |  | (4 | ) |  |  | - |  |  |  |  | (4 | )
Payments on capital lease obligation |  |  | (4 | ) |  |  | - |  |  |  |  | (4 | )
Proceeds from exercise of common stock options and warrants |  |  | 185 |  |  |  | - |  |  |  |  | 185 |
Net cash provided by financing activities |  |  | 177 |  |  |  | - |  |  |  |  | 177 |
Net increase (decrease) in cash and cash equivalents |  |  | 1,167 |  |  |  | - |  |  |  |  | 1,167 |
Cash and cash equivalents – beginning of period |  |  | 30,657 |  |  |  | - |  |  |  |  | 30,657 |
Cash and cash equivalents – end of year |  | $ | 31,824 |  |  | $ | - |  |  |  | $ | 31,824 |
Non-cash investing and financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Stock issued for services provided in prior period included in liabilities at year-end |  | $ | - |  |  | $ | - |  |  |  | $ | - |
Purchase of equipment with debt |  |  | - |  |  |  | - |  |  |  |  | - |
Series A preferred stock dividends accrued not yet paid |  |  | - |  |  |  | - |  |  |  |  | - |
Purchase of property and equipment not yet paid |  |  | 46 |  |  |  | - |  |  |  |  | 46 |
Reclassification of warrant liabilities to equity upon exercise |  | $ | - |  |  | $ | 73 |  |  |  | $ | 73 |
|  | Six Months Ended June 30, 2019 |
(In thousands) |  | As Previously Reported |  |  | Adjustments |  |  |  | Restated |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 1,265 |  |  | $ | (16,174 | ) | (a) |  | $ | (14,909 | )
Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 209 |  |  |  | - |  |  |  |  | 209 |
Stock-based compensation |  |  | 1,252 |  |  |  | 97 |  | (d) |  |  | 1,349 |
Amortization of deferred rent related to lease incentives |  |  | - |  |  |  | - |  |  |  |  | - |
Amortization of operating lease liability |  |  | (87 | ) |  |  | - |  |  |  |  | (87 | )
Interest expense - finance type lease |  |  | 2 |  |  |  | - |  |  |  |  | 2 |
Loss from equity method investment in SAVSU |  |  | 448 |  |  |  | - |  |  |  |  | 448 |
Amortization of intangible assets |  |  | 104 |  |  |  | - |  |  |  |  | 104 |
Change in fair value of warrant liability |  |  | - |  |  |  | 16,077 |  | (a) |  |  | 16,077 |
Change in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, trade, net |  |  | (632 | ) |  |  | - |  |  |  |  | (632 | )
Inventories |  |  | (1,341 | ) |  |  | - |  |  |  |  | (1,341 | )
Prepaid expenses and other current assets |  |  | (32 | ) |  |  | - |  |  |  |  | (32 | )
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  | - |
Accounts payable |  |  | (36 | ) |  |  | - |  |  |  |  | (36 | )
Accrued compensation and other current liabilities |  |  | (20 | ) |  |  | - |  |  |  |  | (20 | )
Deferred rent |  |  | - |  |  |  | - |  |  |  |  | - |
Other liabilities |  |  | (53 | ) |  |  | - |  |  |  |  | (53 | )
Net cash provided by operating activities |  |  | 1,079 |  |  |  | - |  |  |  |  | 1,079 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Payments related to the Astero Bio Acquisition, net of cash acquired |  |  | (12,438 | ) |  |  | - |  |  |  |  | (12,438 | )
Investment in equity investment SAVSU |  |  | - |  |  |  | - |  |  |  |  | - |
Purchase of property and equipment |  |  | (267 | ) |  |  | - |  |  |  |  | (267 | )
Net cash used in investing activities |  |  | (12,705 | ) |  |  | - |  |  |  |  | (12,705 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Payments on equipment loan |  |  | (8 | ) |  |  | - |  |  |  |  | (8 | )
Payments on capital lease obligation |  |  | (7 | ) |  |  | - |  |  |  |  | (7 | )
Proceeds from exercise of common stock options and warrants |  |  | 600 |  |  |  | - |  |  |  |  | 600 |
Net cash provided by financing activities |  |  | 585 |  |  |  | - |  |  |  |  | 585 |
Net increase (decrease) in cash and cash equivalents |  |  | (11,041 | ) |  |  | - |  |  |  |  | (11,041 | )
Cash and cash equivalents – beginning of period |  |  | 30,657 |  |  |  | - |  |  |  |  | 30,657 |
Cash and cash equivalents – end of year |  | $ | 19,616 |  |  | $ | - |  |  |  | $ | 19,616 |
Non-cash investing and financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Series A preferred stock dividends accrued not yet paid |  | $ | - |  |  | $ | - |  |  |  | $ | - |
Stock issued for services provided in prior period included in liabilities at year-end |  |  | - |  |  |  | - |  |  |  |  | - |
Receivables converted to equity investment in SAVSU |  |  | - |  |  |  | - |  |  |  |  | - |
Purchase of equipment with debt |  |  | - |  |  |  | - |  |  |  |  | - |
Purchase of property and equipment not yet paid |  |  | 4 |  |  |  | - |  |  |  |  | 4 |
Reclassification of warrant liabilities to equity upon exercise |  | $ | - |  |  | $ | 400 |  |  |  | $ | 400 |
|  | Nine Months Ended September 30, 2019 |
(In thousands) |  | As Previously Reported |  |  | Adjustments |  |  |  | Restated |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 10,581 |  |  | $ | (15,221 | ) | (a) |  | $ | (4,640 | )
Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 373 |  |  |  | - |  |  |  |  | 373 |
Loss on disposal of property and equipment |  |  | 13 |  |  |  | - |  |  |  |  | 13 |
Stock-based compensation |  |  | 1,907 |  |  |  | 272 |  | (d) |  |  | 2,179 |
Amortization of operating lease liability |  |  | (132 | ) |  |  | - |  |  |  |  | (132 | )
Interest expense - finance type lease |  |  | 2 |  |  |  | - |  |  |  |  | 2 |
Loss from equity method investment in SAVSU |  |  | 739 |  |  |  | - |  |  |  |  | 739 |
Gain on acquisition of SAVSU |  |  | (10,108 | ) |  |  | - |  |  |  |  | (10,108 | )
Amortization of intangible assets |  |  | 465 |  |  |  | - |  |  |  |  | 465 |
Change in fair value of warrant liability |  |  | - |  |  |  | 14,949 |  | (a) |  |  | 14,949 |
Change in operating assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, trade, net |  |  | (372 | ) |  |  | - |  |  |  |  | (372 | )
Inventories |  |  | (1,730 | ) |  |  | - |  |  |  |  | (1,730 | )
Prepaid expenses and other current assets |  |  | (272 | ) |  |  | - |  |  |  |  | (272 | )
Other assets, net |  |  | (87 | ) |  |  | - |  |  |  |  | (87 | )
(Increase) Decrease in |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 377 |  |  |  | - |  |  |  |  | 377 |
Accrued compensation and other current liabilities |  |  | 558 |  |  |  | - |  |  |  |  | 558 |
Other liabilities |  |  | (98 | ) |  |  | - |  |  |  |  | (98 | )
Net cash provided by operating activities |  |  | 2,216 |  |  |  | - |  |  |  |  | 2,216 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Cash acquired on acquisition of SAVSU |  |  | 1,251 |  |  |  | - |  |  |  |  | 1,251 |
Payments related to the Astero Bio Acquisition, net of cash acquired |  |  | (12,439 | ) |  |  | - |  |  |  |  | (12,439 | )
Investment in iVexSol |  |  | (1,000 | ) |  |  | - |  |  |  |  | (1,000 | )
Purchase of property and equipment |  |  | (356 | ) |  |  | - |  |  |  |  | (356 | )
Purchase of assets held for rent |  |  | (453 | ) |  |  | - |  |  |  |  | (453 | )
Net cash used in investing activities |  |  | (12,997 | ) |  |  | - |  |  |  |  | (12,997 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from private equity transaction |  |  |  |  |  |  | - |  |  |  |  | - |
Payments of costs related to Stock Issuances |  |  | (44 | ) |  |  | - |  |  |  |  | (44 | )
Payments on equipment loan |  |  | (12 | ) |  |  | - |  |  |  |  | (12 | )
Payments on finance lease obligation |  |  | (9 | ) |  |  | - |  |  |  |  | (9 | )
Proceeds from exercise of common stock options and warrants |  |  | 1,394 |  |  |  | - |  |  |  |  | 1,394 |
Net cash provided by financing activities |  |  | 1,329 |  |  |  | - |  |  |  |  | 1,329 |
Net increase (decrease) in cash and cash equivalents |  |  | (9,452 | ) |  |  | - |  |  |  |  | (9,452 | )
|  |  |  |  |  |  |  |  |  |  |  | - |
Cash and cash equivalents – beginning of period |  |  | 30,657 |  |  |  | - |  |  |  |  | 30,657 |
Cash and cash equivalents – end of year |  | $ | 21,205 |  |  | $ | - |  |  |  | $ | 21,205 |
Non-cash investing and financing activities |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of equipment with debt |  | $ | 146 |  |  | $ | - |  |  |  | $ | 146 |
Purchase of property and equipment not yet paid |  |  | 53 |  |  |  | - |  |  |  |  | 53 |
Stock issued as consideration to acquire SAVSU |  |  | 19,932 |  |  |  | - |  |  |  |  | 19,932 |
Reclassification of warrant liabilities to equity upon exercise |  | $ | - |  |  | $ | 1,695 |  |  |  | $ | 1,695 |
| a. | Adjustments related to recording certain warrants as liabilities, see Note 2: “ Restatement of Consolidated Financial Statements ”.
| b. | Adjustments related to change in fair value of Astero contingent consideration at acquisition.
| c. | Adjustments related to change in valuation of in-process research and development acquired technology from the Astero acquisition
| d. | Adjustments related to change in valuation method of market-based restricted stock awards.
| e. | Adjustments related to cost of revenue and intangible amortization were reclassified from research and development and sales and marketing to conform to the presentation of those operating expenses in the statement of operations for the year ended December 31, 2019

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- Definition The entire disclosure for quarterly financial data. Includes, but is not limited to, tabular presentation of financial information for fiscal quarters, effect of year-end adjustments, and an explanation of matters or transactions that affect comparability of the information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -URI http://asc.fasb.org/topic&trid=2126967 + Details
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