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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 12 Months Ended
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Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract] |
Restatement of Previously Issued Financial Statements | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS As described in Note 1: Description of Business and Significant Accounting Policies, and as further described below, in November 2023, the Company determined that it was necessary to re-evaluate its application of standalone selling price under Topic 606. The Company concluded that its application of Topic 606 related to standalone selling price was inconsistent with the generally accepted application of the guidance. The Company’s management reperformed the determination of standalone selling price with the support of external advisors, and the resulting calculations have been applied to the revenue allocations in the fiscal years ended March 31, 2024, March 31, 2023 and March 31, 2022. The Company additionally identified contractual terms contained within outstanding warrant agreements issued to its prior and current lenders in 2018, 2020 and 2023, which required further evaluation under Topic 815. After consulting with external advisors and completing an extensive review process, management concluded that the classification of warrants as equity was not consistent with Topic 815 and has restated them as a liability. This also resulted in the requirement to account for the change in the fair value of the warrants through the Statement of Operations. As a result of these errors, the Company is restating the financial statements for the years ended March 31, 2023 and 2022. The nature of the restatement adjustments and their impact on previously reported consolidated financial statements is as follows: 1.Application of Topic 606 related to standalone selling price - The Company historically used invoice price as the standalone selling price for all goods and services. This was partly because of the high level of customization for each product sold and because the pricing for individual performance obligations is highly variable. Standalone selling price has now been established for all goods and services sold in a bundled contract using the adjusted market assessment approach or the cost plus a reasonable margin approach and maximizing the use of observable inputs. The impact on the consolidated statement of operations and comprehensive loss for the fiscal years ended March 31, 2022 and March 31, 2023 is an increase to product revenue of $7.1 million and $8.3 million respectively, an increase to service revenue of $3.6 million and $1.0 million respectively, and a decrease to pre-tax loss of $10.6 million and $9.3 million respectively. The impact to the consolidated balance sheet at March 31, 2022 and March 31, 2023 is an increase to short term deferred revenue of $0.6 million as at March 31, 2022, a decrease to short term deferred revenue of $2.7 million as at March 31, 2023, and a decrease to long term deferred revenue of $1.8 million and $7.8 million, respectively. 2.Application of Topic 815 related to classification of outstanding warrants - The Company inappropriately classified the warrants issued in 2018, 2020 and 2023 as equity. The impact on the consolidated statement of operations and comprehensive loss for the fiscal years ended March 31, 2022 and March 31, 2023 is an increase to the change in value of warrant liabilities of $60.0 million and $10.2 million, respectively, and a decrease to pre-tax loss of $60.0 million and $10.2 million respectively. The impact to the consolidated balance sheet at March 31, 2022 and March 31, 2023 is a decrease to warrant liabilities of $18.2 million and $8.0 million, respectively, and a decrease to additional paid-in capital of $20.2 million and $20.2 million, respectively. Below are our restated consolidated balance sheets as of March 31, 2023 and 2022, and the restated consolidated statements of operations and comprehensive loss, statements of stockholders’ equity, and statements of cash flows for each of the years ended March 31, 2023 and 2022. QUANTUM CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)
| March 31, 2023
| As previously reported |  | Restatement adjustments |  | Reference |  | As restated
Assets |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 25,963 |  |  | $ | — |  |  |  |  | $ | 25,963 |
Restricted cash | 212 |  |  | — |  |  |  |  | 212 |
Accounts receivable, net of allowance for credit losses of $201 | 72,464 |  |  | — |  |  |  |  | 72,464 |
Manufacturing inventories | 19,441 |  |  | — |  |  |  |  | 19,441 |
Service parts inventories | 25,304 |  |  | — |  |  |  |  | 25,304 |
Prepaid expenses | 4,158 |  |  | — |  |  |  |  | 4,158 |
Other current assets | 5,513 |  |  | — |  |  |  |  | 5,513 |
Total current assets | 153,055 |  |  | — |  |  |  |  | 153,055 |
Property and equipment, net | 16,555 |  |  | — |  |  |  |  | 16,555 |
Intangible assets, net | 4,941 |  |  | — |  |  |  |  | 4,941 |
Goodwill | 12,969 |  |  | — |  |  |  |  | 12,969 |
Right-of-use assets, net | 10,291 |  |  | — |  |  |  |  | 10,291 |
Other long-term assets | 15,846 |  |  | — |  |  |  |  | 15,846 |
Total assets | $ | 213,657 |  |  | $ | — |  |  |  |  | $ | 213,657 |
Liabilities and Stockholders’ Deficit |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |
Accounts payable | $ | 35,716 |  |  | $ | — |  |  |  |  | 35,716 |
Accrued compensation | 15,710 |  |  | — |  |  |  |  | 15,710 |
Deferred revenue, current portion | 82,504 |  |  | (2,697) |  |  | (a) |  | 79,807 |
Term debt, current portion | 5,000 |  |  | — |  |  |  |  | 5,000 |
Warrant liabilities | — |  |  | 7,989 |  |  | (b) |  | 7,989 |
Other accrued liabilities | 13,666 |  |  | — |  |  |  |  | 13,666 |
Total current liabilities | 152,596 |  |  | 5,292 |  |  |  |  | 157,888 |
Deferred revenue, net of current portion | 43,306 |  |  | (7,811) |  |  |  |  | 35,495 |
Revolving credit facility | 16,750 |  |  | — |  |  |  |  | 16,750 |
Term debt, net of current portion | 66,354 |  |  | — |  |  |  |  | 66,354 |
Operating lease liabilities | 10,169 |  |  | — |  |  |  |  | 10,169 |
Other long-term liabilities | 11,370 |  |  | — |  |  |  |  | 11,370 |
Total liabilities | 300,545 |  |  | (2,519) |  |  |  |  | 298,026 |
Stockholders’ deficit |  |  |  |  |  |  |
Preferred stock: |  |  |  |  |  |  |
Preferred stock, 20,000 shares authorized; no shares issued | — |  |  | — |  |  |  |  | — |
Common stock: |  |  |  |  |  |  |
Common stock, $0.01 par value; 225,000 shares authorized; 4,678 shares issued and outstanding | 47 |  |  | — |  |  |  |  | 47 |
Additional paid-in capital | 723,492 |  |  | (20,233) |  |  | (b) |  | 703,259 |
Accumulated deficit | (808,846) |  |  | 22,752 |  |  | (a) (b) |  | (786,094) |
Accumulated other comprehensive loss | (1,581) |  |  | — |  |  |  |  | (1,581) |
Total stockholders' deficit | (86,888) |  |  | 2,519 |  |  |  |  | (84,369) |
Total liabilities and stockholders' deficit | $ | 213,657 |  |  | $ | — |  |  |  |  | $ | 213,657 |
QUANTUM CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)
| March 31, 2022
| As previously reported |  | Restatement adjustments |  | Reference |  | As restated
Assets |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 5,210 |  |  | $ | — |  |  |  |  | $ | 5,210 |
Restricted cash | 283 |  |  | — |  |  |  |  | 283 |
Accounts receivable, net of allowance for credit losses of $422 | 69,354 |  |  | — |  |  |  |  | 69,354 |
Manufacturing inventories | 33,546 |  |  | — |  |  |  |  | 33,546 |
Service parts inventories | 24,254 |  |  | — |  |  |  |  | 24,254 |
Prepaid expenses | 7,853 |  |  | — |  |  |  |  | 7,853 |
Other current assets | 4,697 |  |  | — |  |  |  |  | 4,697 |
Total current assets | 145,197 |  |  | — |  |  |  |  | 145,197 |
Property and equipment, net | 12,853 |  |  | — |  |  |  |  | 12,853 |
Intangible assets, net | 9,584 |  |  | — |  |  |  |  | 9,584 |
Goodwill | 12,969 |  |  | — |  |  |  |  | 12,969 |
Right-of-use assets, net | 11,107 |  |  | — |  |  |  |  | 11,107 |
Other long-term assets | 9,925 |  |  | — |  |  |  |  | 9,925 |
Total assets | $ | 201,635 |  |  | $ | — |  |  |  |  | $ | 201,635 |
Liabilities and Stockholders’ Deficit |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |
Accounts payable | $ | 34,220 |  |  | $ | — |  |  |  |  | 34,220 |
Accrued compensation | 16,141 |  |  | — |  |  |  |  | 16,141 |
Deferred revenue, current portion | 86,517 |  |  | 611 |  |  | (a) |  | 87,128 |
Term debt, current portion | 4,375 |  |  | — |  |  |  |  | 4,375 |
Warrant liabilities | — |  |  | 18,237 |  |  | (b) |  | 18,237 |
Other accrued liabilities | 16,562 |  |  | — |  |  |  |  | 16,562 |
Total current liabilities | 157,815 |  |  | 18,848 |  |  |  |  | 176,663 |
Deferred revenue, net of current portion | 41,580 |  |  | (1,792) |  |  |  |  | 39,788 |
Revolving credit facility | 17,735 |  |  | — |  |  |  |  | 17,735 |
Term debt, net of current portion | 89,448 |  |  | — |  |  |  |  | 89,448 |
Operating lease liabilities | 9,891 |  |  | — |  |  |  |  | 9,891 |
Other long-term liabilities | 11,849 |  |  | — |  |  |  |  | 11,849 |
Total liabilities | 328,318 |  |  | 17,056 |  |  |  |  | 345,374 |
Stockholders’ deficit |  |  |  |  |  |  |
Preferred stock: |  |  |  |  |  |  |
Preferred stock, 20,000 shares authorized; no shares issued | — |  |  | — |  |  |  |  | — |
Common stock: |  |  |  |  |  |  |
Common stock, $0.01 par value; 225,000 shares authorized; 3,021 shares issued and outstanding | 30 |  |  | — |  |  |  |  | 30 |
Additional paid-in capital | 645,613 |  |  | (20,233) |  |  | (b) |  | 625,380 |
Accumulated deficit | (770,903) |  |  | 3,177 |  |  | (a) (b) |  | (767,726) |
Accumulated other comprehensive loss | (1,423) |  |  | — |  |  |  |  | (1,423) |
Total stockholders' deficit | (126,683) |  |  | (17,056) |  |  |  |  | (143,739) |
Total liabilities and stockholders' deficit | $ | 201,635 |  |  | $ | — |  |  |  |  | $ | 201,635 |
QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share amounts)
| Year Ended March 31, 2023 |  |
| As previously reported |  | Restatement adjustments |  | Reference |  | As restated |  |
Revenue |  |  |  |  |  |  |  |  |
Product | $ | 266,537 |  |  | $ | 8,317 |  |  | (a) |  | $ | 274,854 |  |  |
Service and subscription | 132,510 |  | 1,008 |  |  | (a) |  | 133,518 |  |  |
Royalty | 13,705 |  | — |  |  |  |  | 13,705 |  |  |
Total revenue | 412,752 |  |  | 9,325 |  |  |  |  | 422,077 |  |  |
Cost of revenue |  |  |  |  |  |  |  |  |
Product | 220,031 |  | — |  |  |  |  | 220,031 |  |  |
Service and subscription | 58,782 |  | — |  |  |  |  | 58,782 |  |  |
Total cost of revenue | 278,813 |  |  | — |  |  |  |  | 278,813 |  |  |
Gross profit | 133,939 |  |  | 9,325 |  |  |  |  | 143,264 |  |  |
Operating expenses |  |  |  |  |  |  |  |  |
Sales and marketing | 66,034 |  | — |  |  |  |  | 66,034 |  |  |
General and administrative | 47,752 |  | — |  |  |  |  | 47,752 |  |  |
Research and development | 44,555 |  | — |  |  |  |  | 44,555 |  |  |
Restructuring charges | 1,605 |  | — |  |  |  |  | 1,605 |  |  |
Total operating expenses | 159,946 |  |  | — |  |  |  |  | 159,946 |  |  |
Income (loss) from operations | (26,007) |  |  | 9,325 |  |  |  |  | (16,682) |  |  |
Other income, net | 1,956 |  |  | — |  |  |  |  | 1,956 |  |  |
Interest expense | (10,560) |  |  | — |  |  |  |  | (10,560) |  |  |
Change in fair value of warrant liability | — |  |  | 10,250 |  |  | (b) |  | 10,250 |  |  |
Loss on debt extinguishment, net | (1,392) |  |  | — |  |  |  |  | (1,392) |  |  |
Net income (loss) before income taxes | (36,003) |  |  | 19,575 |  |  |  |  | (16,428) |  |  |
Income tax provision | 1,940 |  | — |  |  |  |  | 1,940 |  |  |
Net income (loss) | $ | (37,943) |  |  | $ | 19,575 |  |  |  |  | $ | (18,368) |  |  |
Deemed dividend on warrants | (389) |  |  | 389 |  |  | (b) |  | — |  |  |
Net income (loss) attributable to common stockholders | $ | (38,332) |  |  | $ | 19,964 |  |  |  |  | $ | (18,368) |  |  |
Net income (loss) per share attributable to common stockholders- basic | $ | (8.49) |  |  | $ | 4.42 |  |  |  |  | $ | (4.07) |  |  |
Net income (loss) per share attributable to common stockholders - diluted | $ | (8.49) |  |  | $ | 2.85 |  |  |  |  | $ | (5.64) |  |  |
Weighted average shares - basic | 4,517 |  | 4,517 |  |  |  | 4,517 |  |
Weighted average shares - diluted | 4,517 |  | 4,559 |  |  |  | 4,559 |  |
Net income (loss) | $ | (37,943) |  |  | $ | 19,575 |  |  |  |  | $ | (18,368) |  |  |
Foreign currency translation adjustments, net | (158) |  |  | — |  |  |  |  | (158) |  |  |
Total comprehensive income (loss) | $ | (38,101) |  |  | $ | 19,575 |  |  |  |  | $ | (18,526) |  |  |
QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share amounts)
| Year Ended March 31, 2022 |  |
| As previously reported |  | Restatement adjustments |  | Reference |  | As restated |  |
Revenue |  |  |  |  |  |  |  |  |
Product | $ | 223,761 |  |  | $ | 7,053 |  |  | (a) |  | $ | 230,814 |  |  |
Service and subscription | 133,689 |  |  | 3,552 |  |  | (a) |  | 137,241 |  |  |
Royalty | 15,377 |  |  | — |  |  |  |  | 15,377 |  |  |
Total revenue | 372,827 |  |  | 10,605 |  |  |  |  | 383,432 |  |  |
Cost of revenue |  |  |  |  |  |  |  |  |
Product | 169,780 |  |  | — |  |  |  |  | 169,780 |  |  |
Service and subscription | 56,012 |  |  | — |  |  |  |  | 56,012 |  |  |
Total cost of revenue | 225,792 |  |  | — |  |  |  |  | 225,792 |  |  |
Gross profit | 147,035 |  |  | 10,605 |  |  |  |  | 157,640 |  |  |
Operating expenses |  |  |  |  |  |  |  |  |
Research and development | 51,812 |  |  | — |  |  |  |  | 51,812 |  |  |
Sales and marketing | 62,957 |  |  | — |  |  |  |  | 62,957 |  |  |
General and administrative | 45,256 |  |  | — |  |  |  |  | 45,256 |  |  |
Restructuring charges | 850 |  |  | — |  |  |  |  | 850 |  |  |
Total operating expenses | 160,875 |  |  | — |  |  |  |  | 160,875 |  |  |
Income (loss) from operations | (13,840) |  |  | 10,605 |  |  |  |  | (3,235) |  |  |
Other expense, net | (251) |  |  | — |  |  |  |  | (251) |  |  |
Interest expense | (11,888) |  |  | — |  |  |  |  | (11,888) |  |  |
Change in fair value of warrant liabilities | — |  |  | 60,030 |  |  | (b) |  | 60,030 |  |  |
Loss on debt extinguishment, net | (4,960) |  |  | — |  |  |  |  | (4,960) |  |  |
Net income (loss) before income taxes | (30,939) |  |  | 70,635 |  |  |  |  | 39,696 |  |  |
Income tax provision | 1,341 |  |  | — |  |  |  |  | 1,341 |  |  |
Net income (loss) | $ | (32,280) |  |  | $ | 70,635 |  |  |  |  | $ | 38,355 |  |  |
Net income (loss) per share - basic | $ | (10.96) |  |  | $ | 23.99 |  |  |  |  | $ | 13.03 |  |  |
Net income (loss) per share - diluted | $ | (10.96) |  |  | $ | 4.48 |  |  |  |  | $ | (6.48) |  |  |
Weighted average shares - basic | 2,944 |  | 2,944 |  |  |  | 2,944 |  |  |
Weighted average shares - diluted | 2,944 |  | 3,301 |  |  |  | 3,301 |  |  |
Net income (loss) | $ | (32,280) |  |  | $ | 70,635 |  |  |  |  | $ | 38,355 |  |  |
Foreign currency translation adjustments, net | (567) |  |  | — |  |  |  |  | (567) |  |  |
Total comprehensive income (loss) | $ | (32,847) |  |  | $ | 70,635 |  |  |  |  | $ | 37,788 |  |  |
QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
| Year Ended March 31, 2023
| As previously reported |  | Restatement adjustments |  | Reference |  | As restated
Operating activities |  |  |  |  |  |  |
Net income (loss) | $ | (37,943) |  |  | $ | 19,575 |  |  | (a) (b) |  | $ | (18,368) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |  |  |  |  |
Depreciation and amortization | 10,118 |  |  | — |  |  |  |  | 10,118 |
Amortization of debt issuance costs | 1,624 |  |  | — |  |  |  |  | 1,624 |
Long-term debt related costs | 992 |  |  | — |  |  |  |  | 992 |
Provision for manufacturing and service inventories | 18,052 |  |  | — |  |  |  |  | 18,052 |
Stock-based compensation | 10,750 |  |  | — |  |  |  |  | 10,750 |
Change in fair value of warrant liabilities | — |  |  | (10,250) |  |  | (b) |  | (10,250) |
Other non-cash | (2,067) |  |  | — |  |  |  |  | (2,067) |
Changes in assets and liabilities, net of effect of acquisitions: |  |  |  |  |  |  |
Accounts receivable | (2,966) |  |  | — |  |  |  |  | (2,966) |
Manufacturing inventories | (1,839) |  |  | — |  |  |  |  | (1,839) |
Service parts inventories | (3,503) |  |  | — |  |  |  |  | (3,503) |
Accounts payable | 1,158 |  |  | — |  |  |  |  | 1,158 |
Prepaid expenses | 3,695 |  |  | — |  |  |  |  | 3,695 |
Deferred revenue | (2,286) |  |  | (9,325) |  |  | (a) |  | (11,611) |
Accrued compensation | (431) |  |  | — |  |  |  |  | (431) |
Other assets | (1,270) |  |  | — |  |  |  |  | (1,270) |
Other liabilities | 1,022 |  |  | — |  |  |  |  | 1,022 |
Net cash used in operating activities | (4,894) |  |  | — |  |  |  |  | (4,894) |
Investing activities |  |  |  |  |  |  |
Purchases of property and equipment | (12,581) |  |  | — |  |  |  |  | (12,581) |
Business acquisitions | (3,020) |  |  | — |  |  |  |  | (3,020) |
Net cash used in investing activities | (15,601) |  |  | — |  |  |  |  | (15,601) |
Financing activities |  |  |  |  |  |  |
Borrowings of long-term debt, net of debt issuance costs | — |  |  | — |  |  |  |  | — |
Repayments of long-term debt | (24,596) |  |  | — |  |  |  |  | (24,596) |
Borrowings of credit facility | 497,280 |  |  | — |  |  |  |  | 497,280 |
Repayments of credit facility | (498,665) |  |  | — |  |  |  |  | (498,665) |
Borrowings of paycheck protection program | — |  |  | — |  |  |  |  | — |
Proceeds from secondary offering, net | — |  |  | — |  |  |  |  | — |
Payment of taxes due upon vesting of restricted stock | — |  |  | — |  |  |  |  | — |
Proceeds from issuance of common stock | 67,146 |  |  | — |  |  |  |  | 67,146 |
Net cash provided by financing activities | 41,165 |  |  | — |  |  |  |  | 41,165 |
Effect of exchange rate changes on cash and cash equivalents | 12 |  |  | — |  |  |  |  | 12 |
Net change in cash, cash equivalents, and restricted cash | 20,682 |  |  | — |  |  |  |  | 20,682 |
Cash, cash equivalents, and restricted cash at beginning of period | 5,493 |  |  | — |  |  |  |  | 5,493 |
Cash, cash equivalents, and restricted cash at end of period | $ | 26,175 |  |  | $ | — |  |  |  |  | $ | 26,175 |
Supplemental disclosure of cash flow information |  |  |  |  |  |  |
Cash paid for interest | $ | 8,701 |  |  | $ | — |  |  |  |  | $ | 8,701 |
Cash paid for income taxes, net of refunds | $ | 1,418 |  |  | $ | — |  |  |  |  | $ | 1,418 |
Non-cash transactions |  |  |  |  |  |  |
Purchases of property and equipment included in accounts payable | $ | 1,049 |  |  | $ | — |  |  |  |  | $ | 1,049 |
Transfer of manufacturing inventory to services inventory | $ | 4,045 |  |  | $ | — |  |  |  |  | $ | 4,045 |
Transfer of manufacturing inventory to property and equipment | $ | 343 |  |  | $ | — |  |  |  |  | $ | 343 |
Payment of litigation settlements with insurance proceeds | $ | — |  |  | $ | — |  |  |  |  | $ | — |
Paid-in-kind interest | $ | 319 |  |  | $ | — |  |  |  |  | $ | 319 |
Deemed dividend | $ | 389 |  |  | $ | (389) |  |  | (b) |  | $ | — |
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 | $ | 25,963 |  |  | $ | — |  |  |  |  | $ | 25,963 |
Restricted cash, current | 212 |  |  | — |  |  |  |  | 212 |
Total cash, cash equivalents and restricted cash at the end of period | $ | 26,175 |  |  | $ | — |  |  |  |  | $ | 26,175 |
QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
| Year Ended March 31, 2022
| As previously reported |  | Restatement adjustments |  | Reference |  | As adjusted
Operating activities |  |  |  |  |  |  |
Net income (loss) | $ | (32,280) |  |  | $ | 70,635 |  |  | (a) (b) |  | $ | 38,355 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |  |  |  |  |
Depreciation and amortization | 9,418 |  |  | — |  |  |  |  | 9,418 |
Amortization of debt issuance costs | 2,414 |  |  | — |  |  |  |  | 2,414 |
Long-term debt related costs | 8,471 |  |  | — |  |  |  |  | 8,471 |
Provision for manufacturing and service inventories | 5,740 |  |  | — |  |  |  |  | 5,740 |
Gain on PPP loan extinguishment | (10,000) |  |  | — |  |  |  |  | (10,000) |
Stock-based compensation | 13,829 |  |  |  |  |  |  | 13,829 |
Change in fair value of warrant liabilities | — |  |  | (60,030) |  |  | (b) |  | (60,030) |
Other non-cash | (832) |  |  | — |  |  |  |  | (832) |
Changes in assets and liabilities, net of effect of acquisitions: |  |  |  |  |  |  |
Accounts receivable | 3,651 |  |  | — |  |  |  |  | 3,651 |
Manufacturing inventories | (12,069) |  |  | — |  |  |  |  | (12,069) |
Service parts inventories | (4,400) |  |  | — |  |  |  |  | (4,400) |
Accounts payable | (1,939) |  |  | — |  |  |  |  | (1,939) |
Prepaid expenses | (3,959) |  |  | — |  |  |  |  | (3,959) |
Deferred revenue | (2,514) |  |  | (10,605) |  |  | (a) |  | (13,119) |
Accrued restructuring charges | (580) |  |  | — |  |  |  |  | (580) |
Accrued compensation | (3,073) |  |  | — |  |  |  |  | (3,073) |
Other assets | (2,602) |  |  | — |  |  |  |  | (2,602) |
Other liabilities | (3,003) |  |  | — |  |  |  |  | (3,003) |
Net cash used in operating activities | (33,728) |  |  | — |  |  |  |  | (33,728) |
Investing activities |  |  |  |  |  |  |
Purchases of property and equipment | (6,316) |  |  | — |  |  |  |  | (6,316) |
Business acquisitions | (7,808) |  |  | — |  |  |  |  | (7,808) |
Net cash used in investing activities | (14,124) |  |  | — |  |  |  |  | (14,124) |
Financing activities |  |  |  |  |  |  |
Borrowings of long-term debt, net of debt issuance costs | 94,961 |  |  | — |  |  |  |  | 94,961 |
Repayments of long-term debt | (94,301) |  |  | — |  |  |  |  | (94,301) |
Borrowings of credit facility | 309,000 |  |  | — |  |  |  |  | 309,000 |
Repayments of credit facility | (291,265) |  |  | — |  |  |  |  | (291,265) |
Proceeds from issuance of common stock | 1,762 |  |  |  |  |  |  | 1,762 |
Net cash provided by financing activities | 20,157 |  |  | — |  |  |  |  | 20,157 |
Effect of exchange rate changes on cash and cash equivalents | 51 |  |  | — |  |  |  |  | 51 |
Net change in cash, cash equivalents, and restricted cash | (27,644) |  |  | — |  |  |  |  | (27,644) |
| Year Ended March 31, 2022
| As previously reported |  | Restatement adjustments |  | Reference |  | As adjusted
Cash, cash equivalents, and restricted cash at beginning of period | 33,137 |  |  | — |  |  |  |  | 33,137 |
Cash, cash equivalents, and restricted cash at end of period | $ | 5,493 |  |  | $ | — |  |  |  |  | $ | 5,493 |
Supplemental disclosure of cash flow information |  |  |  |  |  |  |
Cash paid for interest | $ | 9,140 |  |  | $ | — |  |  |  |  | $ | 9,140 |
Cash paid for income taxes, net of refunds | $ | 944 |  |  | $ | — |  |  |  |  | $ | 944 |
Non-cash transactions |  |  |  |  |  |  |
Purchases of property and equipment included in accounts payable | $ | 147 |  |  | $ | — |  |  |  |  | $ | 147 |
Transfer of manufacturing inventory to services inventory | $ | 211 |  |  | $ | — |  |  |  |  | $ | 211 |
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 | $ | 5,210 |  |  | $ | — |  |  |  |  | $ | 5,210 |
Restricted cash, current | 283 |  |  | — |  |  |  |  | 283 |
Total cash, cash equivalents and restricted cash at the end of period | $ | 5,493 |  |  | $ | — |  |  |  |  | $ | 5,493 |
QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (in thousands)
|  |  | Common Stock |  | Additional Paid-in Capital |  | Accumulated Deficit |  | Accumulated Other Comprehensive Loss |  | Total Stockholders' Deficit
| Reference |  | Shares |  | Amount |  |  |  |
As previously reported |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, March 31, 2022 |  |  | 3,021 |  |  | $ | 30 |  |  | $ | 645,613 |  |  | $ | (770,903) |  |  | $ | (1,423) |  |  | $ | (126,683) |
Net loss |  |  | — |  |  | — |  |  | — |  |  | (37,943) |  |  | — |  |  | (37,943) |
Foreign currency translation adjustments, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (158) |  |  | (158) |
Shares issued under employee stock purchase plan |  |  | 30 |  |  | 1 |  |  | 896 |  |  | — |  |  | — |  |  | 897 |
Shares issued under employee incentive plans, net |  |  | 109 |  |  | 1 |  |  | (1) |  |  | — |  |  | — |  |  | — |
Shares issued in connection with rights offering, net |  |  | 1,500 |  |  | 15 |  |  | 66,234 |  |  | — |  |  | — |  |  | 66,249 |
Shares issued in connection with business acquisition |  |  | 18 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation |  |  | — |  |  | — |  |  | 10,750 |  |  | — |  |  | — |  |  | 10,750 |
Balance, March 31, 2023 |  |  | 4,678 |  |  | $ | 47 |  |  | $ | 723,492 |  |  | $ | (808,846) |  |  | $ | (1,581) |  |  | $ | (86,888) |
Adjustments |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2022 | (a) (b) |  | — |  |  | — |  |  | (20,233) |  |  | 3,177 |  |  | — |  |  | (17,056) |
Net loss | (a) (b) |  | — |  |  | — |  |  | — |  |  | 19,575 |  |  | — |  |  | 19,575 |
March 31, 2023 |  |  | — |  |  | $ | — |  |  | $ | (20,233) |  |  | $ | 22,752 |  |  | $ | — |  |  | $ | 2,519 |
As restated |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2022 |  |  | 3,021 |  |  | $ | 30 |  |  | $ | 625,380 |  |  | $ | (767,726) |  |  | $ | (1,423) |  |  | $ | (143,739) |
Net loss |  |  | — |  |  | — |  |  | — |  |  | (18,368) |  |  | — |  |  | (18,368) |
Foreign currency translation adjustments, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (158) |  |  | (158) |
Shares issued under employee stock purchase plan |  |  | 30 |  |  | 1 |  |  | 896 |  |  | — |  |  | — |  |  | 897 |
Shares issued under employee incentive plans, net |  |  | 109 |  |  | 1 |  |  | (1) |  |  | — |  |  | — |  |  | — |
Shares issued in connection with rights offering, net |  |  | 1,500 |  |  | 15 |  |  | 66,234 |  |  | — |  |  | — |  |  | 66,249 |
Shares issued in connection with business acquisition |  |  | 18 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation |  |  | — |  |  | — |  |  | 10,750 |  |  | — |  |  | — |  |  | 10,750 |
March 31, 2023 |  |  | 4,678 |  |  | $ | 47 |  |  | $ | 703,259 |  |  | $ | (786,094) |  |  | $ | (1,581) |  |  | $ | (84,369) |
QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (in thousands)
|  |  | Common Stock |  | Additional Paid-in Capital |  | Accumulated Deficit |  | Accumulated Other Comprehensive Loss |  | Total Stockholders' Deficit
| Reference |  | Shares |  | Amount |  |  |  |
As previously reported |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, March 31, 2021 |  |  | 2,846 |  |  | $ | 28 |  |  | $ | 627,206 |  |  | $ | (738,623) |  |  | $ | (856) |  |  | $ | (112,245) |
Net loss |  |  | — |  |  | — |  |  | — |  |  | (32,280) |  |  | — |  |  | (32,280) |
Foreign currency translation adjustments, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (567) |  |  | (567) |
Shares issued under employee stock purchase plan |  |  | 19 |  |  | — |  |  | 1,762 |  |  | — |  |  | — |  |  | 1,762 |
Shares issued under employee incentive plans, net |  |  | 115 |  |  | 1 |  |  | (1) |  |  | — |  |  | — |  |  | — |
Shares issued in connection with business acquisition |  |  | 41 |  |  | 1 |  |  | 2,817 |  |  | — |  |  | — |  |  | 2,818 |
Stock-based compensation |  |  | — |  |  | — |  |  | 13,829 |  |  | — |  |  | — |  |  | 13,829 |
Balance, March 31, 2022 |  |  | 3,021 |  |  | $ | 30 |  |  | $ | 645,613 |  |  | $ | (770,903) |  |  | $ | (1,423) |  |  | $ | (126,683) |
Adjustments |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2021 | (a) (b) |  | — |  |  | — |  |  | (20,233) |  |  | (67,458) |  |  | — |  |  | (87,691) |
Net loss | (a) (b) |  | — |  |  | — |  |  | — |  |  | 70,635 |  |  | — |  |  | 70,635 |
March 31, 2022 |  |  | — |  |  | $ | — |  |  | $ | (20,233) |  |  | $ | 3,177 |  |  | $ | — |  |  | $ | (17,056) |
As restated |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2021 |  |  | 2,846 |  |  | $ | 28 |  |  | $ | 606,973 |  |  | $ | (806,081) |  |  | $ | (856) |  |  | $ | (199,936) |
Net loss |  |  | — |  |  | — |  |  | — |  |  | 38,355 |  |  | — |  |  | 38,355 |
Foreign currency translation adjustments, net |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (567) |  |  | (567) |
Shares issued under employee stock purchase plan |  |  | 19 |  |  | — |  |  | 1,762 |  |  | — |  |  | — |  |  | 1,762 |
Shares issued under employee incentive plans, net |  |  | 115 |  |  | 1 |  |  | (1) |  |  | — |  |  | — |  |  | — |
Shares issued in connection with business acquisition |  |  | 41 |  |  | 1 |  |  | 2,817 |  |  | — |  |  | — |  |  | 2,818 |
Stock-based compensation |  |  | — |  |  | — |  |  | 13,829 |  |  | — |  |  | — |  |  | 13,829 |
March 31, 2022 |  |  | 3,021 |  |  | $ | 30 |  |  | $ | 625,380 |  |  | $ | (767,726) |  |  | $ | (1,423) |  |  | $ | (143,739) |

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