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Original and Further Restatement of the Consolidated Financial Statements (Tables) | 3 Months Ended
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Mar. 31, 2014
Original Restatement [Member] |
Schedule of Restatement to Previously Filed Consolidated Income Statements |
Three Months Ended March 31, 2013 |
|  |  |  |  | Original Restatement Adjustments by Category |  |  |  |
(U.S. Dollars, in thousands) |  | As Reported in the 2013 Form 10-Q Prior to Original Restatement |  |  | Distributor Revenue |  |  | Inventory Reserves |  |  | Royalties |  |  | Other |  |  | Total Original Restatement Adjustments |  |  | As Originally Restated in 2013 Form 10-Q/A |
Net sales |  | $ | 100,254 |  |  | $ | 2,963 |  |  | $ | — |  |  | $ | — |  |  | $ | 156 |  |  | $ | 3,119 |  |  | $ | 103,373 |
Cost of sales |  |  | 22,699 |  |  |  | 471 |  |  |  | 86 |  |  |  | 2,030 |  |  |  | 331 |  |  |  | 2,918 |  |  |  | 25,617 |
Gross profit |  |  | 77,555 |  |  |  | 2,492 |  |  |  | (86 | ) |  |  | (2,030 | ) |  |  | (175 | ) |  |  | 201 |  |  |  | 77,756 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 48,839 |  |  |  | (2,073 | ) |  |  | — |  |  |  | (2,030 | ) |  |  | 318 |  |  |  | (3,785 | ) |  |  | 45,054 |
General and administrative |  |  | 18,788 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (458 | ) |  |  | (458 | ) |  |  | 18,330 |
Research and development |  |  | 5,400 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 341 |  |  |  | 341 |  |  |  | 5,741 |
Amortization of intangible assets |  |  | 504 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 40 |  |  |  | 40 |  |  |  | 544 |
Charges related to U.S. Government resolutions |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 73,531 |  |  |  | (2,073 | ) |  |  | — |  |  |  | (2,030 | ) |  |  | 241 |  |  |  | (3,862 | ) |  |  | 69,669 |
Operating income |  |  | 4,024 |  |  |  | 4,565 |  |  |  | (86 | ) |  |  | — |  |  |  | (416 | ) |  |  | 4,063 |  |  |  | 8,087 |
Other income and (expense) |  |  | 4,204 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,204 |
Income before income taxes |  |  | 8,228 |  |  |  | 4,565 |  |  |  | (86 | ) |  |  | — |  |  |  | (416 | ) |  |  | 4,063 |  |  |  | 12,291 |
Income tax expense |  |  | (3,320 | ) |  |  | (1,529 | ) |  |  | 29 |  |  |  | — |  |  |  | 139 |  |  |  | (1,361 | ) |  |  | (4,681 | )
Net income from continuing operations |  | $ | 4,908 |  |  | $ | 3,036 |  |  | $ | (57 | ) |  | $ | — |  |  | $ | (277 | ) |  | $ | 2,702 |  |  | $ | 7,610 |
Further Restatement [Member] |
Schedule of Restatement to Previously Filed Consolidated Income Statements |
Three Months Ended March 31, 2014 |
|  |  |  |  | Further Restatement Adjustments by Category |  |  |  |
(U.S. Dollars, in thousands) |  | Originally Reported in 2014 Form 10-Q |  |  | Co-Pay and Self-Pay Revenue |  |  | Bad Debt Timing |  |  | Accounts Receivable Reserve |  |  | Intercompany Profit |  |  | Inventory |  |  | Other |  |  | Total Further Restatement Adjustments |  |  | Restated |
Net sales |  | $ | 101,342 |  |  | $ | (2,800 | ) |  | $ | — |  |  | $ | 1,651 |  |  | $ | — |  |  | $ | — |  |  | $ | (179 | ) |  | $ | (1,328 | ) |  | $ | 100,014 |
Cost of sales |  |  | 22,632 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,966 |  |  |  | 2,564 |  |  |  | (1,389 | ) |  |  | 4,141 |  |  |  | 26,773 |
Gross profit |  |  | 78,710 |  |  |  | (2,800 | ) |  |  | — |  |  |  | 1,651 |  |  |  | (2,966 | ) |  |  | (2,564 | ) |  |  | 1,210 |  |  |  | (5,469 | ) |  |  | 73,241 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 43,871 |  |  |  | (2,800 | ) |  |  | — |  |  |  | 201 |  |  |  | — |  |  |  | — |  |  |  | (101 | ) |  |  | (2,700 | ) |  |  | 41,171 |
General and administrative |  |  | 17,545 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (269 | ) |  |  | (269 | ) |  |  | 17,276 |
Research and development |  |  | 5,939 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (6 | ) |  |  | (6 | ) |  |  | 5,933 |
Amortization of intangible assets |  |  | 584 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 584 |
Costs related to the accounting review and restatement |  |  | 8,306 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,306 |
|  |  | 76,245 |  |  |  | (2,800 | ) |  |  | — |  |  |  | 201 |  |  |  | — |  |  |  | — |  |  |  | (376 | ) |  |  | (2,975 | ) |  |  | 73,270 |
Operating (loss) income |  |  | 2,465 |  |  |  | — |  |  |  | — |  |  |  | 1,450 |  |  |  | (2,966 | ) |  |  | (2,564 | ) |  |  | 1,586 |  |  |  | (2,494 | ) |  |  | (29 | )
Other income and (expense) |  |  | (747 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | 7 |  |  |  | (740 | )
Loss before income taxes |  |  | 1,718 |  |  |  | — |  |  |  | — |  |  |  | 1,450 |  |  |  | (2,966 | ) |  |  | (2,564 | ) |  |  | 1,593 |  |  |  | (2,487 | ) |  |  | (769 | )
Income tax expense |  |  | (1,940 | ) |  |  | — |  |  |  | — |  |  |  | (508 | ) |  |  | 1,039 |  |  |  | 898 |  |  |  | (668 | ) |  |  | 761 |  |  |  | (1,179 | )
Net loss from continuing operations |  | $ | (222 | ) |  | $ | — |  |  | $ | — |  |  | $ | 942 |  |  | $ | (1,927 | ) |  | $ | (1,666 | ) |  | $ | 925 |  |  | $ | (1,726 | ) |  | $ | (1,948 | )
Three Months Ended March 31, 2013 |
|  |  |  |  | Further Restatement Adjustments by Category |  |  |  |
(U.S. Dollars, in thousands) |  | As Originally Restated in 2013 Form 10-Q/A |  |  | Co-Pay and Self-Pay Revenue |  |  | Bad Debt Timing |  |  | Accounts Receivable Reserve |  |  | Intercompany Profit |  |  | Inventory |  |  | Other |  |  | Total Further Restatement Adjustments |  |  | Restated |
Net sales |  | $ | 103,373 |  |  | $ | (1,453 | ) |  | $ | — |  |  | $ | 437 |  |  | $ | — |  |  | $ | — |  |  | $ | (78 | ) |  | $ | (1,094 | ) |  | $ | 102,279 |
Cost of sales |  |  | 25,617 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (120 | ) |  |  | 820 |  |  |  | (476 | ) |  |  | 224 |  |  |  | 25,841 |
Gross profit |  |  | 77,756 |  |  |  | (1,453 | ) |  |  | — |  |  |  | 437 |  |  |  | 120 |  |  |  | (820 | ) |  |  | 398 |  |  | $ | (1,318 | ) |  |  | 76,438 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 45,054 |  |  |  | (1,453 | ) |  |  | 1,455 |  |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | 796 |  |  |  | 790 |  |  |  | 45,844 |
General and administrative |  |  | 18,330 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (89 | ) |  |  | (89 | ) |  |  | 18,241 |
Research and development |  |  | 5,741 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,741 |
Amortization of intangible assets |  |  | 544 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 544 |
|  |  | 69,669 |  |  |  | (1,453 | ) |  |  | 1,455 |  |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | 707 |  |  |  | 701 |  |  |  | 70,370 |
Operating income |  |  | 8,087 |  |  |  | — |  |  |  | (1,455 | ) |  |  | 445 |  |  |  | 120 |  |  |  | (820 | ) |  |  | (309 | ) |  |  | (2,019 | ) |  |  | 6,068 |
Other income and (expense) |  |  | 4,204 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 18 |  |  |  | 18 |  |  |  | 4,222 |
Income before income taxes |  |  | 12,291 |  |  |  | — |  |  |  | (1,455 | ) |  |  | 445 |  |  |  | 120 |  |  |  | (820 | ) |  |  | (291 | ) |  |  | (2,001 | ) |  |  | 10,290 |
Income tax expense |  |  | (4,681 | ) |  |  | — |  |  |  | 509 |  |  |  | (156 | ) |  |  | (42 | ) |  |  | 287 |  |  |  | (281 | ) |  |  | 317 |  |  |  | (4,364 | )
Net income from continuing operations |  | $ | 7,610 |  |  | $ | — |  |  | $ | (946 | ) |  | $ | 289 |  |  | $ | 78 |  |  | $ | (533 | ) |  | $ | (572 | ) |  | $ | (1,684 | ) |  | $ | 5,926 |
T
Effects of Further Restatement on Condensed Consolidated Balance Sheet | The effects of the Further Restatement on our condensed consolidated balance sheet as of March 31, 2014 are as follows:
|  | As of March 31, 2014 |
(Unaudited, U.S. Dollars, in thousands, except share data) |  | Originally Reported in 2014 Form 10-Q |  |  | Further Restatement Adjustments |  |  | Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 26,747 |  |  | $ | (1,630 | ) |  | $ | 25,117 |
Restricted cash |  |  | 19,270 |  |  |  | — |  |  |  | 19,270 |
Trade accounts receivable, less allowances of $8,841 at March 31, 2014 |  |  | 76,917 |  |  |  | (3,470 | ) |  |  | 73,447 |
Inventories |  |  | 92,753 |  |  |  | (22,076 | ) |  |  | 70,677 |
Deferred income taxes |  |  | 33,956 |  |  |  | 6,051 |  |  |  | 40,007 |
Prepaid expenses and other current assets |  |  | 28,781 |  |  |  | 2,269 |  |  |  | 31,050 |
Total current assets |  |  | 278,424 |  |  |  | (18,856 | ) |  |  | 259,568 |
Property, plant and equipment, net |  |  | 52,532 |  |  |  | 124 |  |  |  | 52,656 |
Patents and other intangible assets, net |  |  | 8,518 |  |  |  | — |  |  |  | 8,518 |
Goodwill |  |  | 53,565 |  |  |  | — |  |  |  | 53,565 |
Deferred income taxes |  |  | 18,758 |  |  |  | 4,058 |  |  |  | 22,816 |
Other long-term assets |  |  | 6,743 |  |  |  | 107 |  |  |  | 6,850 |
Total assets |  | $ | 418,540 |  |  | $ | (14,567 | ) |  | $ | 403,973 |
Liabilities and shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts payable |  | $ | 14,022 |  |  | $ | — |  |  | $ | 14,022 |
Other current liabilities |  |  | 41,467 |  |  |  | 2,233 |  |  |  | 43,700 |
Total current liabilities |  |  | 55,489 |  |  |  | 2,233 |  |  |  | 57,722 |
Long-term debt |  |  | 20,000 |  |  |  | — |  |  |  | 20,000 |
Deferred income taxes |  |  | 13,307 |  |  |  | (106 | ) |  |  | 13,201 |
Other long-term liabilities |  |  | 12,487 |  |  |  | — |  |  |  | 12,487 |
Total liabilities |  |  | 101,283 |  |  |  | 2,127 |  |  |  | 103,410 |
Contingencies (Note 16) |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Common shares $0.10 par value; 50,000,000 shares authorized; 18,365,910 issued and outstanding as of March 31, 2014 |  |  | 1,836 |  |  |  | — |  |  |  | 1,836 |
Additional paid-in capital |  |  | 223,630 |  |  |  | (274 | ) |  |  | 223,356 |
Retained earnings |  |  | 88,550 |  |  |  | (17,161 | ) |  |  | 71,389 |
Accumulated other comprehensive income |  |  | 3,241 |  |  |  | 741 |  |  |  | 3,982 |
Total shareholders’ equity |  |  | 317,257 |  |  |  | (16,694 | ) |  |  | 300,563 |
Total liabilities and shareholders’ equity |  | $ | 418,540 |  |  | $ | (14,567 | ) |  | $ | 403,973 |
The effects of the Further Restatement on our condensed consolidated balance sheet as of December 31, 2013 are as follows:
|  | As of December 31, 2013 |
(Unaudited, U.S. Dollars, in thousands, except share data) |  | Originally Reported in 2014 Form 10-Q |  |  | Further Restatement Adjustments |  |  | Restated |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 30,486 |  |  | $ | (1,562 | ) |  | $ | 28,924 |
Restricted cash |  |  | 23,761 |  |  |  | — |  |  |  | 23,761 |
Trade accounts receivable, less allowances of $9,111 at December 31, 2013 |  |  | 75,567 |  |  |  | (4,756 | ) |  |  | 70,811 |
Inventories |  |  | 90,577 |  |  |  | (17,899 | ) |  |  | 72,678 |
Deferred income taxes |  |  | 33,947 |  |  |  | 6,052 |  |  |  | 39,999 |
Prepaid expenses and other current assets |  |  | 25,906 |  |  |  | 3,027 |  |  |  | 28,933 |
Total current assets |  |  | 280,244 |  |  |  | (15,138 | ) |  |  | 265,106 |
Property, plant and equipment, net |  |  | 54,606 |  |  |  | (234 | ) |  |  | 54,372 |
Patents and other intangible assets, net |  |  | 9,046 |  |  |  | — |  |  |  | 9,046 |
Goodwill |  |  | 53,565 |  |  |  | — |  |  |  | 53,565 |
Deferred income taxes |  |  | 18,336 |  |  |  | 4,058 |  |  |  | 22,394 |
Other long-term assets |  |  | 7,385 |  |  |  | 107 |  |  |  | 7,492 |
Total assets |  | $ | 423,182 |  |  | $ | (11,207 | ) |  | $ | 411,975 |
Liabilities and shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts payable |  | $ | 20,674 |  |  | $ | — |  |  | $ | 20,674 |
Other current liabilities |  |  | 46,146 |  |  |  | 3,530 |  |  |  | 49,676 |
Total current liabilities |  |  | 66,820 |  |  |  | 3,530 |  |  |  | 70,350 |
Long-term debt |  |  | 20,000 |  |  |  | — |  |  |  | 20,000 |
Deferred income taxes |  |  | 13,132 |  |  |  | (106 | ) |  |  | 13,026 |
Other long-term liabilities |  |  | 12,736 |  |  |  | — |  |  |  | 12,736 |
Total liabilities |  |  | 112,688 |  |  |  | 3,424 |  |  |  | 116,112 |
Contingencies (Note 16) |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Common shares $0.10 par value; 50,000,000 shares authorized; 18,102,335 issued and outstanding as of December 31, 2013 |  |  | 1,810 |  |  |  | — |  |  |  | 1,810 |
Additional paid-in capital |  |  | 216,653 |  |  |  | — |  |  |  | 216,653 |
Retained earnings |  |  | 89,332 |  |  |  | (15,435 | ) |  |  | 73,897 |
Accumulated other comprehensive income |  |  | 2,699 |  |  |  | 804 |  |  |  | 3,503 |
Total shareholders’ equity |  |  | 310,494 |  |  |  | (14,631 | ) |  |  | 295,863 |
Total liabilities and shareholders’ equity |  | $ | 423,182 |  |  | $ | (11,207 | ) |  | $ | 411,975 |
Effects of Further Restatement of Consolidated Statement of Operations and Comprehensive Income (Loss) | The effects of the Further Restatement on our condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2014 are as follows:
|  | Three Months Ended March 31, 2014 |
(Unaudited, U.S. Dollars, in thousands, except share and per share data) |  | Originally Reported in 2014 Form 10-Q |  |  | Further Restatement Adjustments |  |  | Restated |
Product sales |  | $ | 89,684 |  |  | $ | (1,384 | ) |  | $ | 88,300 |
Marketing service fees |  |  | 11,658 |  |  |  | 56 |  |  |  | 11,714 |
Net sales |  |  | 101,342 |  |  |  | (1,328 | ) |  |  | 100,014 |
Cost of sales |  |  | 22,632 |  |  |  | 4,141 |  |  |  | 26,773 |
Gross profit |  |  | 78,710 |  |  |  | (5,469 | ) |  |  | 73,241 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 43,871 |  |  |  | (2,700 | ) |  |  | 41,171 |
General and administrative |  |  | 17,545 |  |  |  | (269 | ) |  |  | 17,276 |
Research and development |  |  | 5,939 |  |  |  | (6 | ) |  |  | 5,933 |
Amortization of intangible assets |  |  | 584 |  |  |  | — |  |  |  | 584 |
Costs related to the accounting review and restatement |  |  | 8,306 |  |  |  | — |  |  |  | 8,306 |
|  |  | 76,245 |  |  |  | (2,975 | ) |  |  | 73,270 |
Operating income (loss) |  |  | 2,465 |  |  |  | (2,494 | ) |  |  | (29 | )
Other income and expense |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (486 | ) |  |  | 18 |  |  |  | (468 | )
Other (loss) income |  |  | (261 | ) |  |  | (11 | ) |  |  | (272 | )
|  |  | (747 | ) |  |  | 7 |  |  |  | (740 | )
Income (loss) before income taxes |  |  | 1,718 |  |  |  | (2,487 | ) |  |  | (769 | )
Income tax expense |  |  | (1,940 | ) |  |  | 761 |  |  |  | (1,179 | )
Net loss from continuing operations |  |  | (222 | ) |  |  | (1,726 | ) |  |  | (1,948 | )
Discontinued operations (Note 15) |  |  |  |  |  |  |  |  |  |  |  |
Loss from discontinued operations |  |  | (794 | ) |  |  | — |  |  |  | (794 | )
Income tax benefit |  |  | 234 |  |  |  | — |  |  |  | 234 |
Net loss from discontinued operations |  |  | (560 | ) |  |  | — |  |  |  | (560 | )
Net loss |  | $ | (782 | ) |  | $ | (1,726 | ) |  | $ | (2,508 | )
Net loss per common share—basic: |  |  |  |  |  |  |  |  |  |  |  |
Net loss from continuing operations |  | $ | (0.01 | ) |  | $ | (0.10 | ) |  | $ | (0.11 | )
Net loss from discontinued operations |  |  | (0.03 | ) |  |  | — |  |  |  | (0.03 | )
Net loss per common share—basic |  | $ | (0.04 | ) |  | $ | (0.10 | ) |  | $ | (0.14 | )
Net loss per common share—diluted: |  |  |  |  |  |  |  |  |  |  |  |
Net loss from continuing operations |  | $ | (0.01 | ) |  | $ | (0.10 | ) |  | $ | (0.11 | )
Net loss from discontinued operations |  |  | (0.03 | ) |  |  | — |  |  |  | (0.03 | )
Net loss per common share—diluted |  | $ | (0.04 | ) |  | $ | (0.10 | ) |  | $ | (0.14 | )
Weighted average number of common shares: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 18,197,363 |  |  |  | — |  |  |  | 18,197,363 |
Diluted |  |  | 18,197,363 |  |  |  | — |  |  |  | 18,197,363 |
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gain (loss) on cross-currency swap, net of tax |  |  | 103 |  |  |  | — |  |  |  | 103 |
Foreign currency translation adjustment |  |  | 439 |  |  |  | (63 | ) |  |  | 376 |
Comprehensive loss |  | $ | (240 | ) |  | $ | (1,789 | ) |  | $ | (2,029 | )
The effects of the Original Restatement and the Further Restatement on our condensed consolidated statement of operations and comprehensive income (loss) for the three months ended March 31, 2013 are as follows:
|  | Three Months Ended March 31, 2013 |
(U.S. Dollars, in thousands, except share and per share data) |  | As Reported in the 2013 Form 10-Q Prior to Original Restatement |  |  | Original Restatement Adjustments |  |  | As Originally Restated in the 2013 Form 10- Q/A |  |  | Further Restatement Adjustments |  |  | Restated |
Product sales |  | $ | 88,358 |  |  | $ | 2,978 |  |  | $ | 91,336 |  |  |  | (1,095 | ) |  | $ | 90,241 |
Marketing service fees |  |  | 11,896 |  |  |  | 141 |  |  |  | 12,037 |  |  |  | 1 |  |  |  | 12,038 |
Net sales |  |  | 100,254 |  |  |  | 3,119 |  |  |  | 103,373 |  |  |  | (1,094 | ) |  |  | 102,279 |
Cost of sales |  |  | 22,699 |  |  |  | 2,918 |  |  |  | 25,617 |  |  |  | 224 |  |  |  | 25,841 |
Gross profit |  |  | 77,555 |  |  |  | 201 |  |  |  | 77,756 |  |  |  | (1,318 | ) |  |  | 76,438 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 48,839 |  |  |  | (3,785 | ) |  |  | 45,054 |  |  |  | 790 |  |  |  | 45,844 |
General and administrative |  |  | 18,788 |  |  |  | (458 | ) |  |  | 18,330 |  |  |  | (89 | ) |  |  | 18,241 |
Research and development |  |  | 5,400 |  |  |  | 341 |  |  |  | 5,741 |  |  |  | — |  |  |  | 5,741 |
Amortization of intangible assets |  |  | 504 |  |  |  | 40 |  |  |  | 544 |  |  |  | — |  |  |  | 544 |
|  |  | 73,531 |  |  |  | (3,862 | ) |  |  | 69,669 |  |  |  | 701 |  |  |  | 70,370 |
Operating income |  |  | 4,024 |  |  |  | 4,063 |  |  |  | 8,087 |  |  |  | (2,019 | ) |  |  | 6,068 |
Other income and (expense) |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | (560 | ) |  |  | — |  |  |  | (560 | ) |  |  | 18 |  |  |  | (542 | )
Other income |  |  | 4,764 |  |  |  | — |  |  |  | 4,764 |  |  |  | — |  |  |  | 4,764 |
|  |  | 4,204 |  |  |  | — |  |  |  | 4,204 |  |  |  | 18 |  |  |  | 4,222 |
Income before income taxes |  |  | 8,228 |  |  |  | 4,063 |  |  |  | 12,291 |  |  |  | (2,001 | ) |  |  | 10,290 |
Income tax expense |  |  | (3,320 | ) |  |  | (1,361 | ) |  |  | (4,681 | ) |  |  | 317 |  |  |  | (4,364 | )
Net income from continuing operations |  |  | 4,908 |  |  |  | 2,702 |  |  |  | 7,610 |  |  |  | (1,684 | ) |  |  | 5,926 |
Discontinued operations (Note 15) |  |  |  |  |  |  |  |  |  |  |  |
Loss from discontinued operations |  |  | (4,432 | ) |  |  | (2 | ) |  |  | (4,434 | ) |  |  | 474 |  |  |  | (3,960 | )
Income tax benefit (expense) |  |  | 1,640 |  |  |  | (316 | ) |  |  | 1,324 |  |  |  | 157 |  |  |  | 1,481 |
Net loss from discontinued operations |  |  | (2,792 | ) |  |  | (318 | ) |  |  | (3,110 | ) |  |  | 631 |  |  |  | (2,479 | )
Net income |  |  | 2,116 |  |  | $ | 2,384 |  |  | $ | 4,500 |  |  |  | (1,053 | ) |  | $ | 3,447 |
Net income (loss) per common share—basic: |  |  |  |  |  |  |  |  |  |  |  |
Net income from continuing operations |  | $ | 0.25 |  |  | $ | 0.14 |  |  | $ | 0.39 |  |  |  | (0.09 | ) |  | $ | 0.30 |
Net loss from discontinued operations |  |  | (0.14 | ) |  |  | (0.02 | ) |  |  | (0.16 | ) |  |  | 0.04 |  |  |  | (0.12 | )
Net income per common share—basic |  | $ | 0.11 |  |  | $ | 0.12 |  |  | $ | 0.23 |  |  |  | (0.05 | ) |  | $ | 0.18 |
Net income (loss) per common share—diluted: |  |  |  |  |  |  |  |  |  |  |  |
Net income from continuing operations |  | $ | 0.25 |  |  | $ | 0.14 |  |  | $ | 0.39 |  |  |  | (0.09 | ) |  | $ | 0.30 |
Net loss from discontinued operations |  |  | (0.14 | ) |  |  | (0.02 | ) |  |  | (0.16 | ) |  |  | 0.04 |  |  |  | (0.12 | )
Net income per common share—diluted: |  | $ | 0.11 |  |  | $ | 0.12 |  |  | $ | 0.23 |  |  |  | (0.05 | ) |  | $ | 0.18 |
Weighted average number of common shares: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 19,431,093 |  |  |  | — |  |  |  | 19,431,093 |  |  |  | — |  |  |  | 19,431,093 |
Diluted |  |  | 19,691,141 |  |  |  | — |  |  |  | 19,691,141 |  |  |  | — |  |  |  | 19,691,141 |
Other comprehensive (loss) income, before tax: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gain on derivative instrument |  |  | (318 | ) |  |  | — |  |  |  | (318 | ) |  |  | — |  |  |  | (318 | )
Translation adjustment |  |  | (2,814 | ) |  |  | 106 |  |  |  | (2,708 | ) |  |  | 29 |  |  |  | (2,679 | )
Comprehensive (loss) income |  | $ | (1,016 | ) |  | $ | 2,490 |  |  | $ | 1,474 |  |  | $ | (1,024 | ) |  | $ | 450 |
Effects of Further Restatement of Condensed Consolidated Statement of Cash Flow | The effects of the Further Restatement on our condensed consolidated statement of cash flows for the three months ended March 31, 2014 are as follows:
|  | Three Months Ended March 31, 2014 |
(Unaudited, U.S. Dollars, in thousands) |  | Originally Reported in 2014 Form 10-Q |  |  | Further Restatement Adjustments |  |  | Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (782 | ) |  | $ | (1,726 | ) |  | $ | (2,508 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 6,004 |  |  |  | (258 | ) |  |  | 5,746 |
Amortization of debt costs |  |  | 180 |  |  |  | — |  |  |  | 180 |
Amortization of exclusivity agreements |  |  | 346 |  |  |  | — |  |  |  | 346 |
Provision for doubtful accounts |  |  | 2,579 |  |  |  | (2,471 | ) |  |  | 108 |
Deferred income taxes |  |  | (246 | ) |  |  | — |  |  |  | (246 | )
Share-based compensation |  |  | 1,461 |  |  |  | (274 | ) |  |  | 1,187 |
Excess income tax benefit on employee stock-based awards |  |  | (29 | ) |  |  | — |  |  |  | (29 | )
Other |  |  | 166 |  |  |  | (152 | ) |  |  | 14 |
Change in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | (3,780 | ) |  |  | 1,173 |  |  |  | (2,607 | )
Inventories |  |  | (1,690 | ) |  |  | 4,177 |  |  |  | 2,487 |
Prepaid expenses and other current assets |  |  | (2,806 | ) |  |  | (658 | ) |  |  | (3,464 | )
Trade accounts payable |  |  | (6,670 | ) |  |  | — |  |  |  | (6,670 | )
Other current liabilities |  |  | (4,761 | ) |  |  | 155 |  |  |  | (4,606 | )
Long-term assets |  |  | 130 |  |  |  | — |  |  |  | 130 |
Long-term liabilities |  |  | (280 | ) |  |  | — |  |  |  | (280 | )
Net cash used in operating activities |  |  | (10,178 | ) |  |  | (34 | ) |  |  | (10,212 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures for property, plant and equipment |  |  | (3,691 | ) |  |  | — |  |  |  | (3,691 | )
Capital expenditures for intangible assets |  |  | (46 | ) |  |  | — |  |  |  | (46 | )
Sale of other investments |  |  | — |  |  |  | 32 |  |  |  | 32 |
Net cash used in investing activities |  |  | (3,737 | ) |  |  | 32 |  |  |  | (3,705 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Net proceeds from issuance of common shares |  |  | 5,542 |  |  |  | — |  |  |  | 5,542 |
(Repayment of) proceeds from bank borrowings, net |  |  | — |  |  |  | — |  |  |  | — |
Changes in restricted cash |  |  | 4,502 |  |  |  | — |  |  |  | 4,502 |
Excess income tax benefit on employee stock-based awards |  |  | 29 |  |  |  | — |  |  |  | 29 |
Net cash provided by financing activities |  |  | 10,073 |  |  |  | — |  |  |  | 10,073 |
Effect of exchange rate changes on cash |  |  | 103 |  |  |  | (66 | ) |  |  | 37 |
Net decrease in cash and cash equivalents |  |  | (3,739 | ) |  |  | (68 | ) |  |  | (3,807 | )
Cash and cash equivalents at the beginning of the period |  |  | 30,486 |  |  |  | (1,562 | ) |  |  | 28,924 |
Cash and cash equivalents at the end of the period |  | $ | 26,747 |  |  | $ | (1,630 | ) |  | $ | 25,117 |
The effects of the Original Restatement and the Further Restatement on our condensed consolidated statement of cash flows for the three months ended March 31, 2013 are as follows:
|  | Three Months Ended March 31, 2013 |
(Unaudited, U.S. Dollars, in thousands) |  | As Reported in the 2013 Form 10-Q Prior to Original Restatement |  |  | Original Restatement Adjustments |  |  | As Originally Restated in the 2013 Form 10-Q/A |  |  | Further Restatement Adjustments |  |  | Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 2,116 |  |  | $ | 2,384 |  |  | $ | 4,500 |  |  | $ | (1,053 | ) |  | $ | 3,447 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 4,995 |  |  |  | 34 |  |  |  | 5,029 |  |  |  | 38 |  |  |  | 5,067 |
Amortization of debt costs |  |  | 180 |  |  |  | — |  |  |  | 180 |  |  |  | — |  |  |  | 180 |
Amortization of exclusivity agreements |  |  | 311 |  |  |  | — |  |  |  | 311 |  |  |  | — |  |  |  | 311 |
Provision for doubtful accounts |  |  | 3,227 |  |  |  | (1,853 | ) |  |  | 1,374 |  |  |  | (6 | ) |  |  | 1,368 |
Deferred income taxes |  |  | (744 | ) |  |  | 738 |  |  |  | (6 | ) |  |  | — |  |  |  | (6 | )
Share-based compensation |  |  | 1,943 |  |  |  | — |  |  |  | 1,943 |  |  |  | — |  |  |  | 1,943 |
Excess income tax benefit on employee stock-based awards |  |  | (78 | ) |  |  | — |  |  |  | (78 | ) |  |  | — |  |  |  | (78 | )
Other |  |  | (345 | ) |  |  | 736 |  |  |  | 391 |  |  |  | 30 |  |  |  | 421 |
Change in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | 13,779 |  |  |  | (5,190 | ) |  |  | 8,589 |  |  |  | 1,076 |  |  |  | 9,665 |
Inventories |  |  | (4,230 | ) |  |  | 2,130 |  |  |  | (2,100 | ) |  |  | (6 | ) |  |  | (2,106 | )
Prepaid expenses and other current assets |  |  | (179 | ) |  |  | 2,874 |  |  |  | 2,695 |  |  |  | 2,148 |  |  |  | 4,843 |
Trade accounts payable |  |  | (7,242 | ) |  |  | (5 | ) |  |  | (7,247 | ) |  |  | — |  |  |  | (7,247 | )
Other current liabilities |  |  | 4,478 |  |  |  | (2,408 | ) |  |  | 2,070 |  |  |  | (2,232 | ) |  |  | (162 | )
Long-term assets |  |  | (2,014 | ) |  |  | 461 |  |  |  | (1,553 | ) |  |  | — |  |  |  | (1,553 | )
Long-term liabilities |  |  | (743 | ) |  |  | (296 | ) |  |  | (1,039 | ) |  |  | — |  |  |  | (1,039 | )
Net cash provided by operating activities |  |  | 15,454 |  |  |  | (395 | ) |  |  | 15,059 |  |  |  | (5 | ) |  |  | 15,054 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures for property, plant and equipment |  |  | (6,029 | ) |  |  | — |  |  |  | (6,029 | ) |  |  | — |  |  |  | (6,029 | )
Capital expenditures for intangible assets |  |  | (439 | ) |  |  | 395 |  |  |  | (44 | ) |  |  | — |  |  |  | (44 | )
Purchase of other investments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (506 | ) |  |  | (506 | )
Net cash used in investing activities |  |  | (6,468 | ) |  |  | 395 |  |  |  | (6,073 | ) |  |  | (506 | ) |  |  | (6,579 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net proceeds from issuance of common shares |  |  | 2,143 |  |  |  | — |  |  |  | 2,143 |  |  |  | — |  |  |  | 2,143 |
(Repayment of) proceeds from bank borrowings, net |  |  | (15 | ) |  |  | — |  |  |  | (15 | ) |  |  | — |  |  |  | (15 | )
Changes in restricted cash |  |  | (8,141 | ) |  |  | — |  |  |  | (8,141 | ) |  |  | — |  |  |  | (8,141 | )
Excess income tax benefit on employee stock-based awards |  |  | 78 |  |  |  | — |  |  |  | 78 |  |  |  | — |  |  |  | 78 |
Net cash used in financing activities |  |  | (5,935 | ) |  |  | — |  |  |  | (5,935 | ) |  |  | — |  |  |  | (5,935 | )
Effect of exchange rate changes on cash |  |  | (431 | ) |  |  | — |  |  |  | (431 | ) |  |  | (2 | ) |  |  | (433 | )
Net increase in cash and cash equivalents |  |  | 2,620 |  |  |  | — |  |  |  | 2,620 |  |  |  | (513 | ) |  |  | 2,107 |
Cash and cash equivalents at the beginning of the period |  |  | 31,055 |  |  |  | — |  |  |  | 31,055 |  |  |  | (288 | ) |  |  | 30,767 |
Cash and cash equivalents at the end of the period |  | $ | 33,675 |  |  | $ | — |  |  | $ | 33,675 |  |  |  | (801 | ) |  | $ | 32,874 |

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