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Revision of Previously Issued Financial Statements

12 Months Ended

Dec. 31, 2021

Revision of Previously Issued Financial Statements

Revision of Previously Issued Financial Statements

Note 3 – Revision of Previously Issued Financial Statements

We have revised amounts reported in previously issued financial statements for the periods presented in this Annual Report on Form 10-K related to immaterial errors. The errors relate to certain costs directly related to the production and distribution of hardware products. The costs were not properly categorized in prior periods, which led to an understatement of product and license cost of goods sold and an overstatement of sales and marketing expense. There was no impact to previously reported revenue or net income.

We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2020 and 2019, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly periods ended September 30, 2021, June 30, 2021, and March 31, 2021.

The following tables present the effects of the aforementioned revisions on our consolidated statements of operations for the years ended December 31, 2020 and 2019.

Consolidated Statements of Operations


	Year Ended December 31, 2020						Year Ended December 31, 2019
in thousands	As Previously Reported		Adjustments		As Revised		As Previously Reported		Adjustments		As Revised
Cost of goods sold
Product and license	$	41,820	$	4,193	$	46,013	$	63,393	$	3,684	$	67,077
Total cost of goods sold		63,439		4,193		67,632		81,962		3,684		85,646

Gross profit		152,252		(4,193)		148,059		171,522		(3,684)		167,838

Operating costs
Sales and marketing		60,856		(4,193)		56,663		61,503		(3,684)		57,819
Total operating costs		157,510		(4,193)		153,317		157,333		(3,684)		153,649