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Note 2 - Restatement of Consolidated Financial Statements | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Accounting Changes and Error Corrections [Text Block] |
2. | Restatement of Consolidated Financial Statements
Background In March 2014, pursuant to a registered public offering and note conversion agreement with certain note holders of the Company, the Company issued warrants (“Warrants”) to purchase common stock of the Company. These Warrants were initially classified as equity. The Warrants included a cash settlement feature that could arise in certain very limited events, therefore, the Company is now of the view that the Warrants should have been accounted for as a liability, recorded at fair value at the date of issuance, and marked to market at each reporting period. All changes in fair value should have been recorded in earnings. The company has evaluated the financial statement impact of changing the warrant classification from equity to liability for previously reported periods and concluded that this impact is material. As a result, the amounts previously reported for the periods ended March 31, June 30, September 30 and December 31, 2018 and March 31, June 30, and September 30 2019 are restated in these financial statements, collectively known as the “Affected Periods.” See Note 16: “ Quarterly Financial Information (Unaudited) ” for more information on further restatements affecting quarterly periods. Impact of the Restatement The cumulative effect of these adjustments on the Company’s previously-reported accumulated deficit and total shareholders’ equity was an increase of $27.4 million and a decrease of $28.5 million, respectively, as of the beginning of the fiscal year ended December 31, 2018. These adjustments do not impact the amounts previously reported for the Company’s cash and cash equivalents, net cash used for operating activities, revenue or operating expenses in any of the Affected Periods. All of the following adjustments relate to marking the Warrants to fair value at period end. The effects of the restatement on the following financial statement line items as of and for the periods indicated are summarized in the following tables:
|  | Balance Sheet |
(In thousands ) |  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Warrant liability |  | $ | — |  |  | $ | 28,516 |  |  | $ | 28,516 |
Total liabilities |  | $ | 2,319 |  |  | $ | 28,516 |  |  | $ | 30,835 |
Additional paid in capital |  | $ | 114,160 |  |  | $ | (1,152 | ) |  | $ | 113,008 |
Accumulated deficit |  | $ | (71,031 | ) |  | $ | (27,364 | ) |  | $ | (98,395 | )
Total shareholders’ equity |  | $ | 43,148 |  |  | $ | (28,516 | ) |  | $ | 14,632 |
|  | Statement of Operations |
(In thousands, except per share data) |  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
For the year ended December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of warrants |  | $ | — |  |  | $ | (28,271 | ) |  | $ | (28,271 | )
Total other expense |  | $ | (396 | ) |  | $ | (28,271 | ) |  | $ | (28,667 | )
Net income (loss) before provision for income taxes |  | $ | 3,266 |  |  | $ | (28,271 | ) |  | $ | (25,005 | )
Net income (loss) |  | $ | 3,266 |  |  | $ | (28,271 | ) |  | $ | (25,005 | )
Net income (loss) attributable to common stockholders |  | $ | 2,927 |  |  | $ | (28,271 | ) |  | $ | (25,344 | )
Basic net income (loss) per common share |  | $ | 0.18 |  |  | $ | (1.74 | ) |  | $ | (1.56 | )
Diluted net income (loss) per common share |  | $ | 0.14 |  |  | $ | (1.70 | ) |  | $ | (1.56 | )
|  | Statement of Shareholders’ Equity / Deficit |
(In thousands) |  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
From March 31, 2014 to January 1, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Additional paid-in capital |  | $ | 84,036 |  |  | $ | (20,531 | ) |  | $ | 63,505 |
Accumulated deficit |  | $ | (73,958 | ) |  | $ | 907 |  |  | $ | (73,051 | )
Total shareholders’ equity / (deficit) |  | $ | 10,092 |  |  | $ | (19,624 | ) |  | $ | (9,532 | )
|  | Statement of Cash Flows |
(In thousands ) |  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
For the year ended December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 3,266 |  |  | $ | (28,271 | ) |  | $ | (25,005 | )
Change in fair value of warrant liability |  | $ | — |  |  | $ | 28,271 |  |  | $ | 28,271 |

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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