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RESTATEMENT OF PREVIOUSLY REPORTED UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Tables)

9 Months Ended

Jun. 30, 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 nine months ended June 30, 2022 is presented in the following tables:

MITEK SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands except share data)

			As of June 30, 2022
			As Previously Reported						Total Adjustments						As Restated
ASSETS
Current assets:
Cash and cash equivalents			$	21,543					$	—					$	21,543
Short-term investments			49,531						—						49,531
Accounts receivable, net (iii)			29,618						(65)						29,553
Contract assets (i)			5,125						—						5,125
Prepaid expenses			3,078						—						3,078
Other current assets			3,194						—						3,194
Total current assets			112,089						(65)						112,024
Long-term investments			19,534						—						19,534
Property and equipment, net			3,802						—						3,802
Right-of-use assets (v)			5,484						189						5,673
Intangible assets, net			85,743						—						85,743
Goodwill (iv)			127,992						(829)						127,163
Deferred income tax assets (i)			12,993						564						13,557
Other non-current assets (iv), (vi)			6,959						(431)						6,528
Total assets			$	374,596					$	(572)					$	374,024
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	3,981					$	—					$	3,981
Accrued payroll and related taxes			10,276						—						10,276
Accrued liabilities			4,432						(416)						4,016
Deferred revenue, current portion (ii)			13,220						427						13,647
Lease liabilities, current portion (v)			1,902						191						2,093
Acquisition-related contingent consideration (vi)			4,980						920						5,900
Restructuring accrual			1,807						—						1,807
Income taxes payable			1,332						—						1,332
Other current liabilities (iv), (vi)			1,858						—						1,858
Total current liabilities			43,788						1,122						44,910
Convertible senior notes			126,157						—						126,157
Deferred revenue, non-current portion			1,409						—						1,409
Lease liabilities, non-current portion			4,776						—						4,776
Deferred income tax liabilities, non current portion			19,227						—						19,227
Other non-current liabilities (iv), (vi)			1,923						(90)						1,833
Total liabilities			197,280						1,032						198,312
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, 44,396,263 and 44,168,745 issued and outstanding, as of June 30, 2022 and September 30, 2021, respectively			44						—						44
Additional paid-in capital			211,212						—						211,212
Accumulated other comprehensive income (loss)			(17,856)						—						(17,856)

Accumulated deficit			(16,084)						(1,604)						(17,688)
Total stockholders’ equity			177,316						(1,604)						175,712
Total liabilities and stockholders’ equity			$	374,596					$	(572)					$	374,024

MITEK SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE (LOSS)

(amounts in thousands except per share data)

			Three Months Ended June 30, 2022
			As Previously Reported						Total Adjustments						As Restated
Revenue
Software and hardware (i), (ii)			$	19,820					$	(305)					$	19,515
Services and other (i), (ii)			19,513						167						19,680
Total revenue			39,333						(138)						39,195
Operating costs and expenses
Cost of revenue—software and hardware			508						—						508
Cost of revenue—services and other (b)			4,073						1,203						5,276
Selling and marketing			11,216						—						11,216
Research and development (b)			9,614						(1,203)						8,411
General and administrative			6,589						2						6,591
Amortization and acquisition-related costs (iv)			3,283						1,210						4,493
Restructuring costs			1,807						—						1,807
Total operating costs and expenses			37,090						1,212						38,302
Operating income			2,243						(1,350)						893
Interest expense			2,077						—						2,077
Other income, net (v)			89						—						89
Income before income taxes			255						(1,350)						(1,095)
Income tax benefit (i), (ii), (iii)			556						324						880
Net income (loss)			$	811					$	(1,026)					$	(215)
Net income (loss) per share—basic			$	0.02					$	(0.02)					$	(0.00)
Net income (loss) per share—diluted			$	0.02					$	(0.02)					$	(0.00)
Shares used in calculating net income (loss) per share—basic			44,669						—						44,669
Shares used in calculating net income (loss) per share—diluted			45,224						—						45,224
Comprehensive (loss)
Net income (loss)			$	811					$	(1,026)					$	(215)
Foreign currency translation adjustment			(13,595)						—						(13,595)
Unrealized (loss) on investments			909						—						909
Comprehensive (loss)			$	(11,875)					$	(1,026)					$	(12,901)

MITEK SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE (LOSS)

(amounts in thousands except per share data)

			Nine Months Ended June 30, 2022
			As Previously Reported						Total Adjustments						As Restated
Revenue
Software and hardware (i), (ii)			$	54,545					$	(1,435)					$	53,110
Services and other (i), (ii)			51,975						93						52,068
Total revenue			106,520						(1,342)						105,178
Operating costs and expenses
Cost of revenue—software and hardware			1,196						—						1,196
Cost of revenue—services and other (b)			10,051						3,543						13,594
Selling and marketing			28,859						—						28,859
Research and development (b)			25,457						(3,543)						21,914
General and administrative			18,626						2						18,628
Amortization and acquisition-related costs (iv)			9,947						830						10,777
Restructuring costs			1,807						—						1,807
Total operating costs and expenses			95,943						832						96,775
Operating income			10,577						(2,174)						8,403
Interest expense			6,125						—						6,125
Other income (expense), net (v)			(8)						6						(2)
Income before income taxes			4,444						(2,168)						2,276
Income tax benefit (i), (ii), (iii)			504						564						1,068
Net income			$	4,948					$	(1,604)					$	3,344
Net income per share—basic			$	0.11					$	(0.04)					$	0.07
Net income per share—diluted			$	0.11					$	(0.04)					$	0.07
Shares used in calculating net income per share—basic			44,721						—						44,721
Shares used in calculating net income per share—diluted			45,793						—						45,793
Comprehensive (loss)
Net income			$	4,948					$	(1,604)					$	3,344
Foreign currency translation adjustment			(16,724)						—						(16,724)
Unrealized (loss) on investments			(189)						—						(189)
Comprehensive (loss)			$	(11,965)					$	(1,604)					$	(13,569)

MITEK SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

			Nine Months Ended June 30, 2022
			As Previously Reported						Total Adjustments						As Restated
Operating activities:
Net income			$	4,948					$	(1,604)					$	3,344
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense			10,117						—						10,117
Amortization of intangible assets			9,176						—						9,176
Depreciation and amortization			1,064						—						1,064
Amortization of investment premiums & other			1,348						—						1,348
Accretion and amortization on debt securities			5,239						—						5,239
Net changes in estimated fair value of acquisition-related contingent consideration (vi)			(2,198)						920						(1,278)
Deferred taxes (i), (ii), (iii)			(1,141)						(564)						(1,705)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable (iii)			(12,298)						65						(12,233)
Contract assets			(1,737)						—						(1,737)
Other assets (iv), (vi)			(1,090)						242						(848)
Accounts payable			1,147						—						1,147
Accrued payroll and related taxes			(2,643)						—						(2,643)
Deferred revenue (i), (ii), (iii)			1,077						840						1,917
Restructuring accrual			1,900						—						1,900
Other liabilities (iv), (vi)			1,104						101						1,205
Net cash provided by operating activities			16,013						—						16,013
Investing activities:
Purchases of investments			(47,818)						—						(47,818)
Sales and maturities of investments			173,198						—						173,198
Acquisitions, net of cash acquired			(126,607)						—						(126,607)
Purchases of property and equipment			(929)						—						(929)
Net cash used in investing activities			(2,156)						—						(2,156)
Financing activities:
Proceeds from the issuance of equity plan common stock			1,162						—						1,162
Repurchases and retirements of common stock			(14,828)						—						(14,828)
Payment of acquisition-related contingent consideration			(6,770)						—						(6,770)
Loans made to non-executive employees			(1,041)						—						(1,041)
Principal payments on other borrowings			(36)						—						(36)
Net cash provided by (used in) financing activities			(21,513)						—						(21,513)
Foreign currency effect on cash and cash equivalents			(1,113)						—						(1,113)
Net increase (decrease) in cash and cash equivalents			(8,769)						—						(8,769)
Cash and cash equivalents at beginning of period			30,312						—						30,312
Cash and cash equivalents at end of period			$	21,543					$	—					$	21,543
Supplemental disclosures of cash flow information:
Issuance of common stock for acquisition-related contingent consideration			$	2,722					$	—					$	2,722
Cash paid for interest			597						—						597
Cash paid for income taxes			819						—						819
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			(189)						—						(189)

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- References

No definition available.

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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

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