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RESTATEMENT | 12 Months Ended
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Mar. 31, 2025
Accounting Changes and Error Corrections [Abstract] |
RESTATEMENT | RESTATEMENT OF UNAUDITED QUARTERLY FINANCIAL STATEMENTS The unaudited condensed consolidated financial statements for three and nine-months ended December 31, 2024 are being restated for the following. a.Service contract term - The Company identified that there were inconsistencies in the period used to recognize service and subscription revenue, which is deferred under Topic 606 and recognized ratably over the contractual term of the contract. The Company’s management reviewed and updated the periods over which revenue was being recognized to ensure consistent application for all service contracts invoiced in the fiscal year ended March 31, 2025 and the results have been applied to revenue. b.Application of Topic 606 related to standalone selling price - The Company also determined that the standalone selling price that was being used for the fiscal year ended March 31, 2025 needed to be updated resulting in an adjustment to revenue. Standalone selling price has now been refreshed for all goods and services sold in a bundled contract under Topic 606, maximizing the use of observable inputs. The following tables present the impact of the restatement for three and nine-months ended December 31, 2024:
| December 31, 2024 |
| As previously report |  | Restatement adjustments |  | Reference |  | As restated |
Assets |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 20,381 |  |  | $ | — |  |  |  |  | $ | 20,381 |  |
Restricted cash | 222 |  |  | — |  |  |  |  | 222 |  |
Accounts receivable, net of allowance for credit losses of $99 | 61,373 |  |  | — |  |  |  |  | 61,373 |  |
Manufacturing inventories | 18,861 |  |  | — |  |  |  |  | 18,861 |  |
Service parts inventories | 1,884 |  |  | — |  |  |  |  | 1,884 |  |
Prepaid expenses | 2,569 |  |  | — |  |  |  |  | 2,569 |  |
Other current assets | 8,538 |  |  | — |  |  |  |  | 8,538 |  |
Total current assets | 113,828 |  | — |  | — |  |  |  |  | 113,828 |  |
Property and equipment, net | 11,268 |  |  | — |  |  |  |  | 11,268 |  |
Goodwill | 12,969 |  |  | — |  |  |  |  | 12,969 |  |
Intangible assets, net | 509 |  |  | — |  |  |  |  | 509 |  |
Right-of-use assets | 8,670 |  |  | — |  |  |  |  | 8,670 |  |
Other long-term assets | 20,812 |  |  | — |  |  |  |  | 20,812 |  |
Total assets | $ | 168,056 |  |  | — |  |  |  |  | $ | 168,056 |  |
Liabilities and Stockholders’ Deficit |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable | $ | 34,704 |  |  | — |  |  |  |  | $ | 34,704 |  |
Accrued compensation | 11,702 |  |  | — |  |  |  |  | 11,702 |  |
Deferred revenue, current portion | 69,916 |  |  | (3,154) |  |  | a, b |  | 66,762 |  |
Term debt | 98,609 |  |  | — |  |  |  |  | 98,609 |  |
Revolving credit facility | 37,500 |  |  | — |  |  |  |  | 37,500 |  |
Warrant liabilities | 34,005 |  |  | — |  |  |  |  | 34,005 |  |
Other accrued liabilities | 19,108 |  |  | — |  |  |  |  | 19,108 |  |
Total current liabilities | 305,544 |  |  | (3,154) |  |  |  |  | 302,390 |  |
Deferred revenue, net of current portion | 35,350 |  |  | 4,721 |  |  | a, b |  | 40,071 |  |
Operating lease liabilities | 9,067 |  |  | — |  |  |  |  | 9,067 |  |
Other long-term liabilities | 13,150 |  |  | — |  |  |  |  | 13,150 |  |
Total liabilities | 363,111 |  |  | 1,567 |  |  |  |  | 364,678 |  |
Commitments and contingencies |  |  |  |  |  |  |  |
Stockholders' deficit |  |  |  |  |  |  |  |
Preferred stock, 20,000 shares authorized; no shares issued and outstanding | — |  |  | — |  |  |  |  | — |  |
Common stock, $0.01 par value; 225,000 shares authorized; 5,307 and 4,792 shares issued and outstanding | 53 |  |  | — |  |  |  |  | 53 |  |
Additional paid-in capital | 740,521 |  |  | — |  |  |  |  | 740,521 |  |
Accumulated deficit | (933,160) |  |  | (1,567) |  |  | a, b |  | (934,727) |  |
Accumulated other comprehensive loss | (2,469) |  |  | — |  |  |  |  | (2,469) |  |
Total stockholders’ deficit | (195,055) |  |  | (1,567) |  |  |  |  | (196,622) |  |
Total liabilities and stockholders’ deficit | $ | 168,056 |  |  | — |  |  |  |  | $ | 168,056 |  |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share amounts, unaudited)
| FY 2025
| Three Months Ended December 31 |  | Nine Months Ended December 31
| As previously report |  | Adjustments |  | Reference |  | As restated |  | As previously report |  | Adjustments |  | Reference |  | As restated
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product | $ | 38,610 |  |  | $ | 24 |  |  | b |  | $ | 38,634 |  |  | $ | 116,389 |  |  | $ | 4,176 |  |  | b |  | $ | 120,565 |
Service and subscription | 31,615 |  |  | (3,891) |  |  | a, b |  | 27,724 |  |  | 90,383 |  |  | (5,743) |  |  | a, b |  | 84,640 |
Royalty | 2,326 |  |  | — |  |  |  |  | 2,326 |  |  | 7,592 |  |  | — |  |  |  |  | 7,592 |
Total revenue | 72,551 |  |  | (3,867) |  |  |  |  | 68,684 |  |  | 214,364 |  |  | (1,567) |  |  |  |  | 212,797 |
Cost of revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product | 30,922 |  |  | — |  |  |  |  | 30,922 |  |  | 93,251 |  |  | — |  |  |  |  | 93,251 |
Service and subscription | 9,874 |  |  | — |  |  |  |  | 9,874 |  |  | 33,954 |  |  | — |  |  |  |  | 33,954 |
Total cost of revenue | 40,796 |  |  | — |  |  |  |  | 40,796 |  |  | 127,205 |  |  | — |  |  |  |  | 127,205 |
Gross profit | 31,755 |  |  | (3,867) |  |  |  |  | 27,888 |  |  | 87,159 |  |  | (1,567) |  |  |  |  | 85,592 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing | 12,448 |  |  | — |  |  |  |  | 12,448 |  |  | 39,321 |  |  | — |  |  |  |  | 39,321 |
General and administrative | 14,142 |  |  | — |  |  |  |  | 14,142 |  |  | 49,186 |  |  | — |  |  |  |  | 49,186 |
Research and development | 7,683 |  |  | — |  |  |  |  | 7,683 |  |  | 24,255 |  |  | — |  |  |  |  | 24,255 |
Restructuring charges | 1,342 |  |  | — |  |  |  |  | 1,342 |  |  | 2,916 |  |  | — |  |  |  |  | 2,916 |
Total operating expenses | 35,615 |  |  | — |  |  |  |  | 35,615 |  |  | 115,678 |  |  | — |  |  |  |  | 115,678 |
Loss from operations | (3,860) |  |  | (3,867) |  |  |  |  | (7,727) |  |  | (28,519) |  |  | (1,567) |  |  |  |  | (30,086) |
Other income (expense), net | 967 |  |  | — |  |  |  |  | 967 |  |  | (408) |  |  | — |  |  |  |  | (408) |
Interest expense | (6,840) |  |  | — |  |  |  |  | (6,840) |  |  | (16,761) |  |  | — |  |  |  |  | (16,761) |
Change in fair value of warrant liabilities | (61,630) |  |  | — |  |  |  |  | (61,630) |  |  | (56,414) |  |  | — |  |  |  |  | (56,414) |
Loss on debt extinguishment | — |  |  | — |  |  |  |  | — |  |  | (3,003) |  |  | — |  |  |  |  | (3,003) |
Net loss before income taxes | (71,363) |  |  | (3,867) |  |  |  |  | (75,230) |  |  | (105,105) |  |  | (1,567) |  |  |  |  | (106,672) |
Income tax provision | 70 |  |  | — |  |  |  |  | 70 |  |  | 675 |  |  | — |  |  |  |  | 675 |
Net loss | $ | (71,433) |  |  | $ | (3,867) |  |  |  |  | $ | (75,300) |  |  | $ | (105,780) |  |  | $ | (1,567) |  |  |  |  | $ | (107,347) |
Net loss per share - basic and diluted | $ | (14.56) |  |  | $ | (0.79) |  |  |  |  | $ | (15.35) |  |  | $ | (21.90) |  |  | $ | (0.32) |  |  |  |  | $ | (22.22) |
Weighted average shares - basic and diluted | 4,907 |  |  | — |  |  |  |  | 4,907 |  |  | 4,831 |  |  | — |  |  |  |  | 4,831 |
Net loss | $ | (71,433) |  |  | $ | (3,867) |  |  |  |  | $ | (75,300) |  |  | $ | (105,780) |  |  | $ | (1,567) |  |  |  |  | $ | (107,347) |
Foreign currency translation adjustments, net | (1,077) |  |  | — |  |  |  |  | (1,077) |  |  | (276) |  |  | — |  |  |  |  | (276) |
Total comprehensive loss | $ | (72,510) |  |  | $ | (3,867) |  |  |  |  | $ | (76,377) |  |  | $ | (106,056) |  |  | $ | (1,567) |  |  |  |  | $ | (107,623) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
| Nine Months Ended December 31, 2024 |  |
| As previously reported |  | Restatement adjustments |  | Reference |  | As restated |  |
Operating activities |  |  |  |  |  |  |  |  |
Net loss | $ | (105,780) |  |  | $ | (1,567) |  |  |  |  | $ | (107,347) |  |  |
Adjustments to reconcile net loss to net cash used in operating activities |  |  |  |  |  |  |  |  |
Depreciation and amortization | 4,440 |  |  | — |  |  |  |  | 4,440 |  |  |
Amortization of debt issuance costs | 3,704 |  |  | — |  |  |  |  | 3,704 |  |  |
Non-cash lease expense | 1,342 |  |  | — |  |  |  |  | 1,342 |  |  |
Loss on debt extinguishment | 3,003 |  |  | — |  |  |  |  | 3,003 |  |  |
Provision for product and service inventories | 1,165 |  |  | — |  |  |  |  | 1,165 |  |  |
Stock-based compensation | 2,376 |  |  | — |  |  |  |  | 2,376 |  |  |
Paid in kind interest | 3,515 |  |  | — |  |  |  |  | 3,515 |  |  |
Change in fair value of warrant liabilities | 56,408 |  |  | — |  |  |  |  | 56,408 |  |  |
Other non-cash | (281) |  |  | — |  |  |  |  | (281) |  |  |
Changes in assets and liabilities: |  |  | — |  |  |  |  | — |  |  |
Accounts receivable, net | 6,337 |  |  | — |  |  |  |  | 6,337 |  |  |
Manufacturing inventories | (2,347) |  |  | — |  |  |  |  | (2,347) |  |  |
Service parts inventories | 7,972 |  |  | — |  |  |  |  | 7,972 |  |  |
Prepaid expenses | (382) |  |  | — |  |  |  |  | (382) |  |  |
Operating lease liabilities | (813) |  |  | — |  |  |  |  | (813) |  |  |
Accounts payable | 9,406 |  |  | — |  |  |  |  | 9,406 |  |  |
Accrued compensation | (6,512) |  |  | — |  |  |  |  | (6,512) |  |  |
Deferred revenue | (11,421) |  |  | 1,567 |  |  | a, b |  | (9,854) |  |  |
Other current assets | 1,243 |  |  | — |  |  |  |  | 1,243 |  |  |
Other current liabilities | 6,280 |  |  | — |  |  |  |  | 6,280 |  |  |
Net cash used in operating activities | (20,345) |  |  | — |  |  |  |  | (20,345) |  |  |
Investing activities |  |  |  |  |  |  |  |  |
Purchases of property and equipment | (4,324) |  |  | — |  |  |  |  | (4,324) |  |  |
Net cash used in investing activities | (4,324) |  |  | — |  |  |  |  | (4,324) |  |  |
Financing activities |  |  |  |  |  |  |  |  |
Borrowings of long-term debt, net of debt issuance costs | 25,000 |  |  | — |  |  |  |  | 25,000 |  |  |
Repayments of long-term debt | (14,092) |  |  | — |  |  |  |  | (14,092) |  |  |
Borrowings of credit facility | 311,135 |  |  | — |  |  |  |  | 311,135 |  |  |
Repayments of credit facility | (302,628) |  |  | — |  |  |  |  | (302,628) |  |  |
Net cash provided by financing activities | 19,415 |  |  | — |  |  |  |  | 19,415 |  |  |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) |  |  | — |  |  |  |  | (3) |  |  |
Net change in cash, cash equivalents and restricted cash | (5,257) |  |  | — |  |  |  |  | (5,257) |  |  |
Cash, cash equivalents, and restricted cash at beginning of period | 25,860 |  |  | — |  |  |  |  | 25,860 |  |  |
Cash, cash equivalents, and restricted cash at end of period | $ | 20,603 |  |  | $ | — |  |  |  |  | $ | 20,603 |  |  |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows: |  |
Cash and cash equivalents | 20,381 |  |  | — |  |  |  |  | 20,381 |  |  |
Restricted cash, current | 222 |  |  | — |  |  |  |  | 222 |  |  |
Cash, cash equivalents and restricted cash at the end of period | $ | 20,603 |  |  | $ | — |  |  |  |  | $ | 20,603 |  |  |
Supplemental disclosure of cash flow information |  |  |  |  |  |  |  |  |
Cash paid for interest | $ | 8,841 |  |  | $ | — |  |  |  |  | $ | 8,841 |  |  |
Cash paid for income taxes, net | $ | 1,798 |  |  | $ | — |  |  |  |  | $ | 1,798 |  |  |
Non-cash transactions |  |  |  |  |  |  |  |  |
Purchases of property and equipment included in accounts payable | $ | 88 |  |  | $ | — |  |  |  |  | $ | 88 |  |  |
Right-of-use assets obtained in exchange for new lease liabilities | $ | 538 |  |  | $ | — |  |  |  |  | $ | 538 |  |  |
Paid-in-kind interest | $ | 3,515 |  |  | $ | — |  |  |  |  | $ | 3,515 |  |  |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (in thousands, unaudited)
|  | Common Stock |  | Additional Paid-in Capital |  | Accumulated Deficit |  | Accumulated Other Comprehensive Loss |  | Total Stockholders' Deficit
Three Months Ended |  | Shares |  | Amount |  |  |  |
Balance, September 30, 2024, As Revised |  | 4,792 |  |  | $ | 48 |  |  | $ | 709,667 |  |  | $ | (859,427) |  |  | $ | (1,392) |  |  | $ | (151,104) |
Net loss |  | — |  |  | — |  |  | — |  |  | (75,300) |  |  | — |  |  | (75,300) |
Foreign currency translation adjustments, net |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,077) |  |  | (1,077) |
Shares issued under employee incentive plans, net |  | 109 |  |  | 1 |  |  | (1) |  |  | — |  |  | — |  |  | — |
Warrants exercised related to long-term debt |  | 406 |  |  | 4 |  |  | 30,119 |  |  | — |  |  | — |  |  | 30,123 |
Stock-based compensation |  | — |  |  | — |  |  | 736 |  |  | — |  |  | — |  |  | 736 |
Balance, December 31, 2024, As Restated |  | 5,307 |  |  | $ | 53 |  |  | $ | 740,521 |  |  | $ | (934,727) |  |  | $ | (2,469) |  |  | $ | (196,622) |
|  | Common Stock |  | Additional Paid-in Capital |  | Accumulated Deficit |  | Accumulated Other Comprehensive Loss |  | Total Stockholders' Deficit
Nine Months Ended |  | Shares |  | Amount |  |  |  |
Balance, March 31, 2024 |  | 4,792 |  |  | $ | 48 |  |  | $ | 708,027 |  |  | $ | (827,380) |  |  | $ | (2,193) |  |  | $ | (121,498) |
Net loss |  | — |  |  | — |  |  | — |  |  | (107,347) |  |  | — |  |  | (107,347) |
Foreign currency translation adjustments, net |  | — |  |  | — |  |  | — |  |  | — |  |  | (276) |  |  | (276) |
Shares issued under employee incentive plans, net |  | 109 |  |  | 1 |  |  | (1) |  |  | — |  |  | — |  |  | — |
Warrants exercised related to long-term debt |  | 406 |  |  | 4 |  |  | 30,119 |  |  | — |  |  | — |  |  | 30,123 |
Stock-based compensation |  | — |  |  | — |  |  | 2,376 |  |  | — |  |  | — |  |  | 2,376 |
Balance, December 31, 2024 As Restated |  | 5,307 |  |  | $ | 53 |  |  | $ | 740,521 |  |  | $ | (934,727) |  |  | $ | (2,469) |  |  | $ | (196,622) |

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