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v3.23.3

Restatement of previously reported unaudited interim consolidated financial statements (Tables) | 6 Months Ended
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Mar. 31, 2023
Accounting Policies [Abstract] |
Schedule of Error Corrections and Prior Period Adjustments | The financial statement line items impacted by the respective adjustments are labeled in the tables below based on the identifiers from the paragraph above. The condensed consolidated statements of stockholders’ equity have been excluded from the financial statements presented below as they were only impacted by adjustments to net income which are presented below in the condensed consolidated statements of operations and other comprehensive income (loss) and condensed consolidated balance sheets. The impact of the restatement on the Affected Quarterly Period as of and for the three and six months ended March 31, 2022 is presented in the following tables: MITEK SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (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 (iii) | 23,858 |  |  | (76) |  |  | 23,782 |
Contract assets (i) | 4,503 |  |  | — |  |  | 4,503 |
Prepaid expenses | 2,409 |  |  | — |  |  | 2,409 |
Other current assets | 1,849 |  |  | — |  |  | 1,849 |
Total current assets | 94,513 |  |  | (76) |  |  | 94,437 |
Long-term investments | 31,493 |  |  | — |  |  | 31,493 |
Property and equipment, net | 3,938 |  |  | — |  |  | 3,938 |
Right-of-use assets (v) | 6,098 |  |  | 259 |  |  | 6,357 |
Intangible assets, net | 96,364 |  |  | — |  |  | 96,364 |
Goodwill (iv) | 135,519 |  |  | (701) |  |  | 134,818 |
Deferred income tax assets (i) | 11,003 |  |  | 240 |  |  | 11,243 |
Other non-current assets (iv), (vi) | 5,292 |  |  | (211) |  |  | 5,081 |
Total assets | $ | 384,220 |  |  | $ | (489) |  |  | $ | 383,731 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
Current liabilities: |  |  |  |  |
Accounts payable | $ | 6,688 |  |  | $ | — |  |  | $ | 6,688 |
Accrued payroll and related taxes | 8,271 |  |  | — |  |  | 8,271 |
Deferred revenue, current portion (ii) | 9,700 |  |  | 660 |  |  | 10,360 |
Lease liabilities, current portion (v) | 1,944 |  |  | 259 |  |  | 2,203 |
Acquisition-related contingent consideration (vi) | 10,790 |  |  | (590) |  |  | 10,200 |
Other current liabilities (iv), (vi) | 3,469 |  |  | (450) |  |  | 3,019 |
Total current liabilities | 40,862 |  |  | (121) |  |  | 40,741 |
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, non current portion | 20,730 |  |  | — |  |  | 20,730 |
Other non-current liabilities (iv), (vi) | 6,250 |  |  | 210 |  |  | 6,460 |
Total liabilities | 198,750 |  |  | 89 |  |  | 198,839 |
Commitments and contingencies (Note 10) |  |  |  |  |
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 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 income (loss) | (5,170) |  |  | — |  |  | (5,170) |
Accumulated deficit | (16,895) |  |  | (578) |  |  | (17,473) |
Total stockholders’ equity | 185,470 |  |  | (578) |  |  | 184,892 |
Total liabilities and stockholders’ equity | $ | 384,220 |  |  | $ | (489) |  |  | $ | 383,731 |
MITEK SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE (LOSS) (amounts in thousands except per share data)
| Three Months Ended March 31, 2022
| As Previously Reported |  | Total Adjustments |  | As Restated
Revenue |  |  |  |  |
Software and hardware (i), (ii) | $ | 19,280 |  | $ | (1,130) |  | $ | 18,150
Services and other (i), (ii) | 15,434 |  | (74) |  | 15,360
Total revenue | 34,714 |  | (1,204) |  | 33,510
Operating costs and expenses |  |  |  |  |
Cost of revenue—software and hardware | 310 |  | — |  | 310
Cost of revenue—services and other (b) | 3,000 |  | 1,141 |  | 4,141
Selling and marketing | 9,206 |  | — |  | 9,206
Research and development (b) | 8,236 |  | (1,141) |  | 7,095
General and administrative | 6,073 |  | — |  | 6,073
Amortization and acquisition-related costs (iv) | 4,385 |  | (380) |  | 4,005
Total operating costs and expenses | 31,210 |  | (380) |  | 30,830
Operating income | 3,504 |  | (824) |  | 2,680
Interest expense | 2,040 |  | — |  | 2,040
Other income (expense), net (v) | (231) |  | 6 |  | (225)
Income before income taxes | 1,233 |  | (818) |  | 415
Income tax benefit (provision) (i), (ii), (iii) | (220) |  | 240 |  | 20
Net income | $ | 1,013 |  | $ | (578) |  | $ | 435
Net income per share—basic | $ | 0.02 |  | $ | (0.01) |  | $ | 0.01
Net income per share—diluted | $ | 0.02 |  | $ | (0.01) |  | $ | 0.01
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 | $ | 1,013 |  | $ | (578) |  | $ | 435
Foreign currency translation adjustment | (1,862) |  | — |  | (1,862)
Unrealized (loss) on investments | (828) |  | — |  | (828)
Comprehensive (loss) | $ | (1,677) |  | $ | (578) |  | $ | (2,255)
MITEK SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE (LOSS) (amounts in thousands except per share data)
| Six Months Ended March 31, 2022
| As Previously Reported |  | Total Adjustments |  | As Restated
Revenue |  |  |  |  |
Software and hardware (i), (ii) | $ | 34,725 |  | $ | (1,130) |  | $ | 33,595
Services and other (i), (ii) | 32,461 |  | (74) |  | 32,387
Total revenue | 67,186 |  | (1,204) |  | 65,982
Operating costs and expenses |  |  |  |  |
Cost of revenue—software and hardware | 688 |  | — |  | 688
Cost of revenue—services and other (b) | 5,978 |  | 2,340 |  | 8,318
Selling and marketing | 17,644 |  | — |  | 17,644
Research and development (b) | 15,842 |  | (2,340) |  | 13,502
General and administrative | 12,037 |  | — |  | 12,037
Amortization and acquisition-related costs (iv) | 6,664 |  | (380) |  | 6,284
Total operating costs and expenses | 58,853 |  | (380) |  | 58,473
Operating income | 8,333 |  | (824) |  | 7,509
Interest expense | 4,048 |  | — |  | 4,048
Other income (expense), net (v) | (96) |  | 6 |  | (90)
Income before income taxes | 4,189 |  | (818) |  | 3,371
Income tax benefit (provision) (i), (ii), (iii) | (52) |  | 240 |  | 188
Net income | $ | 4,137 |  | $ | (578) |  | $ | 3,559
Net income per share—basic | $ | 0.09 |  | $ | (0.01) |  | $ | 0.08
Net income per share—diluted | $ | 0.09 |  | $ | (0.01) |  | $ | 0.08
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 (loss) |  |  |  |  |
Net income | $ | 4,137 |  | $ | (578) |  | $ | 3,559
Foreign currency translation adjustment | (3,129) |  | — |  | (3,129)
Unrealized (loss) on investments | (1,098) |  | — |  | (1,098)
Comprehensive (loss) | $ | (90) |  | $ | (578) |  | $ | (668)
MITEK SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands)
| Six Months Ended March 31, 2022
| As Previously Reported |  | Total Adjustments |  | As Restated
Operating activities: |  |  |  |  |
Net income | $ | 4,137 |  |  | $ | (578) |  |  | $ | 3,559 |
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 (vi) | (780) |  |  | (590) |  |  | (1,370) |
Deferred taxes (i), (ii), (iii) | (523) |  |  | (240) |  |  | (763) |
Changes in assets and liabilities, net of acquisitions: |  |  |  |  |
Accounts receivable (iii) | (6,171) |  |  | 76 |  |  | (6,095) |
Contract assets | 345 |  |  | — |  |  | 345 |
Other assets (iv), (vi) | 498 |  |  | (48) |  |  | 450 |
Accounts payable | 3,769 |  |  | — |  |  | 3,769 |
Accrued payroll and related taxes | (4,693) |  |  | — |  |  | (4,693) |
Deferred revenue (i), (ii), (iii) | (3,126) |  |  | 911 |  |  | (2,215) |
Other liabilities (iv), (vi) | 159 |  |  | 469 |  |  | 628 |
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 (loss) on available-for-sale investments | $ | (1,098) |  |  | $ | — |  |  | $ | (1,098) |

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- 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 -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-8 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-7 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-9 + Details
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