Restatement of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

The Company has restated previously issued financial statements and related disclosures as of and for the three and six months ended June 30, 2022 included in our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the SEC) on August 4, 2022 (the Original Quarterly Report), in order to correct misstatements resulting from erroneous and duplicate billings included in revenue. The applicable Notes to Condensed Financial Statements were also updated to reflect the restatement.

Impact of Restatement

In November 2022 management determined that the Company made certain errors in revenue resulting from erroneous and duplicate billings related to changes in billing practices. The errors were due to the inadequate design and implementation and precision of internal controls and procedures to evaluate and monitor the accounting for revenue recognition. As a result, the Company determined that there were material errors in the financial statements that required a restatement of the financial statements for the three and six months ended June 30, 2022 in the Original Quarterly Report. The effect of these errors was a $1.4 million overstatement of revenue for the three and six months ended June 30, 2022; in addition to, a $0.9 million overstatement of accounts receivable and a $0.5 million understatement of other liabilities as of June 30, 2022.

The following tables reflect the impact of the restatement adjustments to the specific line items presented in our previously reported financial statements for the periods indicated. The amounts originally reported were derived from the Original Quarterly Report (in thousands, except per share amounts):


Condensed Balance Sheet	June 30, 2022
	As Originally Reported		Adjustments		As Restated
Assets
Accounts receivable, net	$	9,590	$	(875)	$	8,715
Total current assets	89,039		(875)		88,164
Total assets	107,724		(875)		106,849

Liabilities and Stockholders' Equity
Accrued and other current liabilities	5,489		481		5,970
Total current liabilities	9,573		481		10,054
Total liabilities	43,544		481		44,025
Accumulated deficit	(231,721)		(1,356)		(233,077)
Total stockholders' equity	64,180		(1,356)		62,824
Total liabilities and stockholders' equity	107,724		(875)		106,849


Condensed Statement of Operations	Three Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Revenue	$	8,962	$	(1,356)	$	7,606
Loss from operations	(12,708)		(1,356)		(14,064)
Net loss	(13,309)		(1,356)		(14,665)
Net loss per share, basic and diluted	(0.78)		(0.08)		(0.86)


Condensed Statement of Operations	Six Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Revenue	$	19,356	$	(1,356)	$	18,000
Loss from operations	(22,387)		(1,356)		(23,743)
Net loss	(23,581)		(1,356)		(24,937)
Net loss per share, basic and diluted	(1.39)		(0.07)		(1.46)


Condensed Statement of Cash Flows	Six Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Cash flows from operating activities:
Net loss	$	(23,581)	$	(1,356)	$	(24,937)
Changes in assets and liabilities:
Accounts receivable, net.	64		875		939
Accrued and other current liabilities	(1,232)		481		(751)
Net cash used in operating activities	(19,728)		—		(19,728)