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Restatement of previously reported unaudited interim consolidated financial statements (Tables)

6 Months Ended

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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- 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
-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

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