XML 26 R19.htm IDEA: XBRL DOCUMENT
v3.25.2

Restatement of Previously Issued Financial Statements | 6 Months Ended
--- | ---
Jun. 30, 2025
Accounting Changes and Error Corrections [Abstract] |
Restatement of Previously Issued Financial Statements | Note 11. R estatement of Previously Issued Financial Statements In the course of preparing the Company’s Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2025, the Company reassessed the rights and preferences of its Preferred Stock, and concluded that, because they are substantially identical to those of its common stock, $0.001 par value, the Preferred Stock should be treated as a separate class of common stock for purposes of calculating earnings per share in accordance with ASC 260-10, “Earnings Per Share.” As a result, the Company determined that it should have presented earnings per share under the two-class method in prior reporting periods. Additionally, in connection with this reassessment, the Company concluded that it had incorrectly classified the Preferred Stock as permanent equity in the consolidated balance sheets. The Preferred Stock includes a provision that, upon the occurrence of a fundamental transaction (which includes a third-party tender or exchange offer) in which more than 50 percent of the common stockholders receive cash or other assets, entitles holders of Preferred Stock, upon any subsequent conversion, are entitled to receive the same form of consideration, even if they did not participate in the original transaction. Because this feature may result in settlement in cash or other non-equity consideration upon an event outside the Company’s control, the Preferred Stock does not meet the criteria for permanent equity classification and is instead classified as temporary equity under ASC 480-10-S99-3A. Although a tender offer is not considered probable as of the current reporting date and redemption is not deemed probable, the existence of this provision requires classification as temporary equity. The Preferred Stock is not subsequently remeasured to its redemption value because redemption is not considered probable. As a result of these conclusions, the Company determined that a correction was necessary with respect to the classification of Preferred Stock as temporary equity and the presentation of earnings per share under the two-class method. Accordingly, the accompanying financial statements as of and for the three and six months ended June 30, 2024, have been restated to correct the classification of the Preferred Stock as temporary equity and to include EPS calculations under the two-class method. The impact of the correction of the misstatements is summarized below (in thousands):
|  | As of June 30, 2024 |
|  | As Previously Reported |  |  | Restatement Impacts |  |  | As Restated |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) |  |  |  |  |  |  |  |  |
Convertible preferred stock, 5,000,000 shares authorized at June 30, 2024 and December 31, 2023: |  |  |  |  |  |  |  |  |
Series X 1 non-voting convertible preferred stock, $0.001 par value, 515,000 shares designated; 110,086 shares issued and outstanding at June 30, 2024 and December 31, 2023 |  | $ | — |  |  | $ | 53,543 |  |  | $ | 53,543 |
Series X non-voting convertible preferred stock, $0.001 par value, 10,000 shares designated; 4,422 shares issued and outstanding at June 30, 2024 and December 31, 2023 |  |  | — |  |  |  | 2,151 |  |  |  | 2,151 |
Stockholders’ equity (deficit): |  |  |  |  |  |  |  |  |
Convertible preferred stock, 5,000,000 shares authorized at June 30, 2024 and December 31, 2023: |  |  |  |  |  |  |  |  |
Series X 1 non-voting convertible preferred stock, $0.001 par value, 515,000 shares designated; 110,086 shares issued and outstanding at June 30, 2024 and December 31, 2023 |  |  | — |  |  |  | — |  |  |  | — |
Series X non-voting convertible preferred stock, $0.001 par value, 10,000 shares designated; 4,422 shares issued and outstanding at June 30, 2024 and December 31, 2023 |  |  | — |  |  |  | — |  |  |  | — |
Additional paid-in capital |  |  | 379,400 |  |  |  | (55,694 | ) |  |  | 323,706 |
Total stockholders’ equity (deficit) |  | $ | (8,501 | ) |  | $ | (55,694 | ) |  | $ | (64,195 | )
|  | For the Three Months Ended June 30, 2024 |  |  | For the Six Months Ended June 30, 2024 |
|  | As Previously Reported |  |  | As Restated |  |  | As Previously Reported |  |  | As Restated |
Basic and diluted earnings per share of common stock |  | $ | (1.06 | ) |  | $ | (0.92 | ) |  | $ | (1.90 | ) |  | $ | (1.61 | )
Basic and diluted earnings per share of Series X and Series X 1 non-voting convertible preferred stock |  | $ | — |  |  | $ | (51.29 | ) |  | $ | — |  |  | $ | (89.60 | )
Weighted-average shares outstanding of Series X and Series X 1 non-voting convertible preferred stock, basic and diluted |  |  | — |  |  |  | 114,508 |  |  |  | — |  |  |  | 114,508 |

X
- References No definition available. + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting error correction. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483443/250-10-50-7 + Details
Name: | us-gaap_ErrorCorrectionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration