XML 31 R10.htm IDEA: XBRL DOCUMENT
v3.23.1

Restatement of Previously Issued Consolidated Financial Statements | 12 Months Ended
--- | ---
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract] |
Restatement of Previously Issued Consolidated Financial Statements | Restatement of Previously Issued Consolidated Financial Statements As previously disclosed in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on March 24, 2023, certain of the Company’s previously filed interim unaudited and annual audited consolidated financial statements should no longer be relied upon and a restatement is required for these previously issued consolidated financial statements. The consolidated financial statements for the year ended December 31, 2022 include restated consolidated financial statements for the years ended December 31, 2021 and 2020. In addition, we have restated our unaudited quarterly financial data for the first three quarters of the year ended December 31, 2022 and for each quarter of the years ended December 31, 2021 and 2020 as presented in Note 21, Quarterly Financial Information. We have also restated impacted amounts within the notes to the consolidated financial statements, as applicable. Restatement Background Understatement of End-User Liability The Company identified an error in its end-user liability balance, which is included in other current liabilities on the consolidated balance sheets. The error was the result of a design deficiency in the Company’s reconciliation process for the end-user liability balance. If uncorrected, the error would have resulted in an understatement of sales and marketing expense, an overstatement of revenue and an understatement of other current liabilities in the consolidated financial statements. As a result, sales and marketing expense for the years ended December 31, 2021 and 2020 was understated by $1.8 million and $2.3 million, respectively, and revenue for the years ended December 31, 2021 and 2020 was overstated by $0.1 million in the Company’s previously reported consolidated statements of operations and comprehensive loss. The impact on the consolidated balance sheets was an understatement of other current liabilities by $8.2 million and $6.3 million as of December 31, 2021 and 2020, respectively. Reserve for Indirect Tax Liabilities During 2022, the Company determined that it is liable for indirect taxation in various jurisdictions within the United States and other countries around the world based on its operations. As a result, the Company determined that it should accrue for indirect taxes, and the related interest and penalties, in the current and prior years. The error was due to the lack of appropriate risk assessment to identify the potential for a material indirect tax exposure. The error if uncorrected would have resulted in an overstatement of revenue, an understatement of general and administrative expenses and an understatement of other current liabilities in the Company’s consolidated financial statements. As a result, revenue was overstated by $3.8 million and $1.0 million for the years ended December 31, 2021 and 2020, respectively, and general and administrative expense was understated by $0.7 million, and $0.2 million for the years ended December 31, 2021 and 2020, respectively, in the consolidated statements of operations and comprehensive loss. The impact on the consolidated balance sheets was an understatement of other current liabilities of $6.2 million and $1.7 million as of December 31, 2021 and 2020, respectively. Other Adjustments In addition to the misstatements identified above, the Company has corrected other immaterial errors. While these other errors are quantitatively and qualitatively immaterial, individually and in the aggregate, because the Company is correcting for the material errors, the Company has decided to correct these other errors as well. These include adjustments to correct errors in the purchase price allocation and subsequent accounting associated with the acquisition of Aarki. Upon the acquisition, we had previously incorrectly recorded a liability for and continued to accrue for the Aarki bonus program liability as well as incorrectly recorded Aarki finance leases under ASC 842. If uncorrected, the error would have resulted in an understatement of Goodwill and an understatement of accumulated deficit in the consolidated financial statements. As a result, as of and for the year ended December 31, 2021, goodwill was overstated by $1.0 million, cost of revenue was understated by $0.5 million, research and development expense was understated by $0.2 million, sales and marketing expense was understated by $0.2 million, and general and administrative expense was understated by $0.1 million in the Company’s previously reported consolidated financial statements. Other immaterial adjustments resulted in an overstatement of sales and marketing expense of $0.7 million for the year ended December 31, 2021. There were no other adjustments identified for the year ended December 31, 2020. These misstatements, both individually and in the aggregate, had no impact to previously reported total cash flows from operating, investing or financing activities, or the timing of cash payments. Below are our restated consolidated balance sheets as of December 31, 2021 and 2020 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 December 31, 2021 and 2020. The amounts as previously reported for the years ended December 31, 2021 and 2020 were derived from our Annual Report on Form 10-K for the year ended December 31, 2021, filed on March 1, 2022. Consolidated Statements of Operations and Comprehensive Loss
|  | Year Ended December 31, 2021
|  | As Reported |  | End-User Liability |  | Indirect Taxes |  |  |  |  |  | Other Adjustments |  | As Restated
Revenue |  | $ | 384,089 |  |  | $ | (138) |  |  | $ | (3,797) |  |  |  |  |  |  | $ | — |  |  | $ | 380,154 |
Cost of revenue |  | 24,711 |  |  | — |  |  | — |  |  |  |  |  |  | 532 |  |  | 25,243 |
Research and development |  | 46,017 |  |  | — |  |  | — |  |  |  |  |  |  | 215 |  |  | 46,232 |
Sales and marketing |  | 465,457 |  |  | 1,780 |  |  | — |  |  |  |  |  |  | (546) |  |  | 466,691 |
General and administrative |  | 135,026 |  |  | — |  |  | 691 |  |  |  |  |  |  | 85 |  |  | 135,802 |
Total costs and expenses |  | 671,211 |  |  | 1,780 |  |  | 691 |  |  |  |  |  |  | 286 |  |  | 673,968 |
Loss from operations |  | (287,122) |  |  | (1,918) |  |  | (4,488) |  |  |  |  |  |  | (286) |  |  | (293,814) |
Loss before income taxes |  | (200,373) |  |  | (1,918) |  |  | (4,488) |  |  |  |  |  |  | (286) |  |  | (207,065) |
Benefit for income taxes |  | (18,996) |  |  | — |  |  | — |  |  |  |  |  |  | (144) |  |  | (19,140) |
Net loss |  | $ | (181,377) |  |  | $ | (1,918) |  |  | $ | (4,488) |  |  |  |  |  |  | $ | (142) |  |  | $ | (187,925) |
Net loss per share attributable to common stockholders: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.47) |  |  | $ | — |  |  | $ | (0.01) |  |  |  |  |  |  | $ | — |  |  | $ | (0.49) |
Diluted |  | $ | (0.69) |  |  | $ | — |  |  | $ | (0.01) |  |  |  |  |  |  | $ | — |  |  | $ | (0.71) |
Total comprehensive loss |  | $ | (181,625) |  |  | $ | (1,918) |  |  | $ | (4,488) |  |  |  |  |  |  | $ | (142) |  |  | $ | (188,173) |
(1) Due to differences in rounding to the nearest cent per basic or diluted share, totals may not equal the sum of the line items.
|  | Year Ended December 31, 2020
|  | As Reported |  | End-User Liability |  | Indirect Taxes |  |  |  | Other Adjustments |  | As Restated
Revenue |  | $ | 230,115 |  |  | $ | (87) |  |  | $ | (981) |  |  |  |  | $ | — |  |  | $ | 229,047 |
Cost of revenue |  | 12,281 |  |  | — |  |  | — |  |  |  |  | — |  |  | 12,281 |
Research and development |  | 23,225 |  |  | — |  |  | — |  |  |  |  | — |  |  | 23,225 |
Sales and marketing |  | 251,941 |  |  | 2,328 |  |  | — |  |  |  |  | — |  |  | 254,269 |
General and administrative |  | 42,289 |  |  | — |  |  | 173 |  |  |  |  | — |  |  | 42,462 |
Total costs and expenses |  | 329,736 |  |  | 2,328 |  |  | 173 |  |  |  |  | — |  |  | 332,237 |
Loss from operations |  | (99,621) |  |  | (2,415) |  |  | (1,154) |  |  |  |  | — |  |  | (103,190) |
Loss before income taxes |  | (145,395) |  |  | (2,415) |  |  | (1,154) |  |  |  |  | — |  |  | (148,964) |
Net loss |  | $ | (145,510) |  |  | $ | (2,415) |  |  | $ | (1,154) |  |  |  |  | $ | — |  |  | $ | (149,079) |
Net loss per share attributable to common stockholders:(1) |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.49) |  |  | $ | (0.01) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | (0.51) |
Diluted |  | $ | (0.49) |  |  | $ | (0.01) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | (0.51) |
Total comprehensive loss |  | $ | (145,510) |  |  | $ | (2,415) |  |  | $ | (1,154) |  |  |  |  | $ | — |  |  | $ | (149,079) |
(1) Due to differences in rounding to the nearest cent per basic or diluted share, totals may not equal the sum of the line items. Consolidated Balance Sheets
|  | Year Ended December 31, 2021
|  | As Reported |  | End-User Liability |  | Indirect Taxes |  |  |  | Other Adjustments |  | As Restated
Accounts receivable, net |  | $ | 13,497 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (728) |  |  | $ | 12,769 |
Total current assets |  | 590,588 |  |  | — |  |  | — |  |  |  |  | (728) |  |  | 589,860 |
Goodwill |  | 86,845 |  |  | — |  |  | — |  |  |  |  | (973) |  |  | 85,872 |
Total assets |  | 1,022,825 |  |  | — |  |  | — |  |  |  |  | (1,701) |  |  | 1,021,124 |
Other current liabilities |  | 64,969 |  |  | 8,168 |  |  | 6,232 |  |  |  |  | (1,416) |  |  | 77,953 |
Total current liabilities |  | 86,832 |  |  | 8,168 |  |  | 6,232 |  |  |  |  | (1,416) |  |  | 99,816 |
Other long-term liabilities |  | 13,544 |  |  | — |  |  | — |  |  |  |  | (144) |  |  | 13,400 |
Total liabilities |  | 399,125 |  |  | 8,168 |  |  | 6,232 |  |  |  |  | (1,560) |  |  | 411,965 |
Accumulated deficit |  | (419,692) |  |  | (8,168) |  |  | (6,232) |  |  |  |  | (141) |  |  | (434,233) |
Total stockholders' equity |  | 623,700 |  |  | (8,168) |  |  | (6,232) |  |  |  |  | (141) |  |  | 609,159 |
Total liabilities and stockholders' equity |  | $ | 1,022,825 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (1,701) |  |  | $ | 1,021,124 |
|  | Year Ended December 31, 2020
|  | As Reported |  | End-User Liability |  | Indirect Taxes |  |  |  | Other Adjustments |  | As Restated
Other current liabilities |  | $ | 25,317 |  |  | $ | 6,250 |  |  | $ | 1,744 |  |  |  |  | $ | (1) |  |  | $ | 33,310 |
Total current liabilities |  | 47,356 |  |  | 6,250 |  |  | 1,744 |  |  |  |  | (1) |  |  | 55,349 |
Total liabilities |  | 225,634 |  |  | 6,250 |  |  | 1,744 |  |  |  |  | (1) |  |  | 233,627 |
Accumulated deficit |  | (238,315) |  |  | (6,250) |  |  | (1,744) |  |  |  |  | 1 |  |  | (246,308) |
Total stockholders' equity |  | $ | 56,787 |  |  | $ | (6,250) |  |  | $ | (1,744) |  |  |  |  | $ | 1 |  |  | $ | 48,794 |
Consolidated Statements of Stockholders’ Equity
Accumulated Deficit |  | As Reported |  | End-User Liability |  | Indirect Taxes |  |  |  | Other Adjustments |  | As Restated
Balance at December 31, 2019 (1) |  | $ | (90,256) |  |  | $ | (3,835) |  |  | $ | (590) |  |  |  |  | $ | 1 |  |  | $ | (94,680) |
Net loss |  | (145,510) |  |  | (2,415) |  |  | (1,154) |  |  |  |  | — |  |  | (149,079) |
Balance at December 31, 2020 |  | $ | (238,315) |  |  | $ | (6,250) |  |  | $ | (1,744) |  |  |  |  | $ | 1 |  |  | $ | (246,308) |
Net loss |  | (181,377) |  |  | (1,918) |  |  | (4,488) |  |  |  |  | (142) |  |  | (187,925) |
Balance at December 31, 2021 |  | $ | (419,692) |  |  | $ | (8,168) |  |  | $ | (6,232) |  |  |  |  | $ | (141) |  |  | $ | (434,233) |
(1) The cumulative impact of the misstatements related to the years ended prior to January 1, 2020 is reflected in this line. Consolidated Statements of Cash Flows
|  | Year Ended December 31, 2021
|  | As Reported |  | End-User Liability |  | Indirect Taxes |  | Other Adjustments |  | As Restated
Net loss |  | $ | (181,377) |  |  | $ | (1,918) |  |  | $ | (4,488) |  |  | $ | (142) |  |  | $ | (187,925) |
Depreciation and amortization |  | $ | 11,133 |  |  | $ | — |  |  | $ | — |  |  | $ | 532 |  |  | $ | 11,665 |
Deferred income taxes |  | $ | (19,233) |  |  | $ | — |  |  | $ | — |  |  | $ | (144) |  |  | $ | (19,377) |
Accounts receivable, net |  | $ | 203 |  |  | $ | — |  |  | $ | — |  |  | $ | 728 |  |  | $ | 931 |
Other accruals and liabilities |  | $ | 23,228 |  |  | $ | 1,918 |  |  | $ | 4,488 |  |  | $ | (974) |  |  | $ | 28,660 |
|  | Year Ended December 31, 2020
|  | As Reported |  | End-User Liability |  | Indirect Taxes |  | Other Adjustments |  | As Restated
Net loss |  | $ | (145,510) |  |  | $ | (2,415) |  |  | $ | (1,154) |  |  | $ | — |  |  | $ | (149,079) |
Other accruals and liabilities |  | $ | 12,045 |  |  | $ | 2,415 |  |  | $ | 1,154 |  |  | $ | — |  |  | $ | 15,614 |

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 -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794 + Details
Name: | us-gaap_ErrorCorrectionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration