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Restatement (Tables)

6 Months Ended

Mar. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The impact of the restatement on the Company’s financial statements is reflected in the following tables (in thousands, except share and per share amounts):

MITEK SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(amounts in thousands except share data)

			As of March 31, 2022
			As Previously Reported						Total Adjustments			As Restated
ASSETS
Current assets:
Cash and cash equivalents			$	23,984					$	—		$	23,984
Short-term investments			37,910						—			37,910
Accounts receivable, net			23,858						—			23,858
Contract assets			4,503						—			4,503
Prepaid expenses			2,409						—			2,409
Other current assets			1,849						—			1,849
Total current assets			94,513						—			94,513
Long-term investments			31,493						—			31,493
Property and equipment, net			3,938						—			3,938
Right-of-use assets			6,098						—			6,098
Intangible assets, net			96,364						—			96,364
Goodwill			136,889						(1,370)			135,519
Deferred income tax assets			10,572						431			11,003
Other non-current assets			5,292						—			5,292
Total assets			$	385,159					$	(939)		$	384,220
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	5,359					$	1,329		$	6,688
Accrued payroll and related taxes			8,271						—			8,271
Deferred revenue, current portion			9,700						—			9,700
Lease liabilities, current portion			1,944						—			1,944
Acquisition-related contingent consideration			10,790						—			10,790
Other current liabilities			3,469						—			3,469
Total current liabilities			39,533						1,329			40,862
Convertible senior notes			124,370						—			124,370
Deferred revenue, non-current portion			1,053						—			1,053
Lease liabilities, non-current portion			5,485						—			5,485
Deferred income tax liabilities			22,100						(1,370)			20,730
Other non-current liabilities			6,250						—			6,250
Total liabilities			198,791						(41)			198,750
Stockholders’ equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding			—						—			—
Common stock, $0.001 par value, 120,000,000 and 60,000,000 shares authorized, 44,344,361 and 44,168,745 issued and outstanding, as of March 31, 2022 and September 30, 2021, respectively			44						—			44
Additional paid-in capital			207,491						—			207,491
Accumulated other comprehensive loss			(5,170)						—			(5,170)
Accumulated deficit			(15,997)						(898)			(16,895)
Treasury stock, at cost, no shares and 7,773 shares as of March 31, 2022 and September 30, 2021, respectively			—						—			—
Total stockholders’ equity			186,368						(898)			185,470
Total liabilities and stockholders’ equity			$	385,159					$	(939)		$	384,220

MITEK SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)  

(Unaudited)

(amounts in thousands except per share data)

			Three Months Ended March 31, 2022
			As Previously Reported						Total Adjustments						As Restated
Revenue
Software and hardware			$	19,280					$	—					$	19,280
Services and other			15,434						—						15,434
Total revenue			34,714						—						34,714
Operating costs and expenses
Cost of revenue—software and hardware			310						—						310
Cost of revenue—services and other			3,000						—						3,000
Selling and marketing			9,206						—						9,206
Research and development			8,236						—						8,236
General and administrative			6,073						—						6,073
Acquisition-related costs and expenses			3,056						1,329						4,385
Total operating costs and expenses			29,881						1,329						31,210
Operating income			4,833						(1,329)						3,504
Interest expense			2,040						—						2,040
Other income, net			(231)						—						(231)
Income before income taxes			2,562						(1,329)						1,233
Income tax provision			(651)						431						(220)
Net income			$	1,911					$	(898)					$	1,013
Net income per share—basic			$	0.04					$	(0.02)					$	0.02
Net income per share—diluted			$	0.04					$	(0.02)					$	0.02
Shares used in calculating net income per share—basic			44,775						—						44,775
Shares used in calculating net income per share—diluted			46,097						—						46,097
Comprehensive loss
Net income			$	1,911					$	(898)					$	1,013
Foreign currency translation adjustment			(1,862)						—						(1,862)
Unrealized loss on investments			(828)						—						(828)
Comprehensive loss			$	(779)					$	(898)					$	(1,677)

			Six Months Ended March 31, 2022
			As Previously Reported						Total Adjustments						As Restated
Revenue
Software and hardware			$	34,725					$	—					$	34,725
Services and other			32,461						—						32,461
Total revenue			67,186						—						67,186
Operating costs and expenses
Cost of revenue—software and hardware			688						—						688
Cost of revenue—services and other			5,978						—						5,978
Selling and marketing			17,644						—						17,644
Research and development			15,842						—						15,842
General and administrative			12,037						—						12,037
Acquisition-related costs and expenses			5,335						1,329						6,664
Total operating costs and expenses			57,524						1,329						58,853
Operating income			9,662						(1,329)						8,333
Interest expense			4,048						—						4,048
Other income, net			(96)						—						(96)
Income before income taxes			5,518						(1,329)						4,189
Income tax provision			(483)						431						(52)
Net income			$	5,035					$	(898)					$	4,137
Net income per share—basic			$	0.11					$	(0.02)					$	0.09
Net income per share—diluted			$	0.11					$	(0.02)					$	0.09
Shares used in calculating net income per share—basic			44,795						—						44,795
Shares used in calculating net income per share—diluted			46,206						—						46,206
Comprehensive income (loss)
Net income			$	5,035					$	(898)					$	4,137
Foreign currency translation adjustment			(3,129)						—						(3,129)
Unrealized loss on investments			(1,098)						—						(1,098)
Comprehensive income (loss)			$	808					$	(898)					$	(90)

MITEK SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(amounts in thousands)

			Six Months Ended March 31,
			As Previously Reported						Total Adjustments						2022 As Restated
Operating activities:
Net income			$	5,035					$	(898)					$	4,137
Adjustments to reconcile net income to net cash provided by operating activities:									—
Stock-based compensation expense			6,429						—						6,429
Amortization of intangible assets			4,525						—						4,525
Depreciation and amortization			555						—						555
Amortization of investment premiums & other			1,109						—						1,109
Accretion and amortization on debt securities			3,453						—						3,453
Net changes in estimated fair value of acquisition-related contingent consideration			(780)						—						(780)
Deferred taxes			(92)						(431)						(523)
Changes in assets and liabilities:									—
Accounts receivable			(6,171)						—						(6,171)
Contract assets			345						—						345
Other assets			498						—						498
Accounts payable			2,440						1,329						3,769
Accrued payroll and related taxes			(4,693)						—						(4,693)
Deferred revenue			(3,126)						—						(3,126)
Other liabilities			159						—						159
Net cash provided by operating activities			9,686						—						9,686
Investing activities:
Purchases of investments			(47,818)						—						(47,818)
Sales and maturities of investments			173,316						—						173,316
Acquisitions, net of cash acquired			(126,607)						—						(126,607)
Purchases of property and equipment			(634)						—						(634)
Net cash used in investing activities			(1,743)						—						(1,743)
Financing activities:
Proceeds from the issuance of equity plan common stock			1,128						—						1,128
Repurchases and retirements of common stock			(14,828)						—						(14,828)
Principal payments on other borrowings			(36)						—						(36)
Net cash provided by (used in) financing activities			(13,736)						—						(13,736)
Foreign currency effect on cash and cash equivalents			(535)						—						(535)
Net increase (decrease) in cash and cash equivalents			(6,328)						—						(6,328)
Cash and cash equivalents at beginning of period			30,312						—						30,312
Cash and cash equivalents at end of period			$	23,984					$	—					$	23,984
Supplemental disclosures of cash flow information:
Cash paid for interest			$	582					$	—					$	582
Cash paid for income taxes			$	597					$	—					$	597
Supplemental disclosures of non-cash investing and financing activities:
Reclassification of convertible senior notes hedge and embedded conversion derivative to additional paid-in capital			$	42,821					$	—					$	42,821
Unrealized holding gain (loss) on available-for-sale investments			$	(1,098)					$	—					$	(1,098)

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- References

No definition available.

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X

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

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