Restatement of previously issued financial statements

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Restatement of previously issued financial statements

The Company restated its previously issued Condensed Consolidated Financial Statements as of and for the three month ended March 31, 2023. In connection with the preparation of our second quarter 2023 condensed consolidated financial statements, Travelzoo realized that the non-controlling interest (NCI) classification during the first quarter of 2022, the second quarter of 2022, the third quarter of 2022, the year ended December 31, 2022 and the first quarter of 2023 had not been correctly updated. When the put/call option in the Company’s stock purchase agreement with JFC Travel Group Co. expired in January 2022, the Company did not reclassify the NCI from temporary equity to permanent equity. The reclassification of NCI from temporary equity to permanent equity reduced temporary equity and increased permanent equity by $4.6 million but did not have any impact on the Company's previously reported total assets, total liabilities and stockholders’ equity, results of operations or cash flows.

The impacts from the restatement as of and for the three months ended March 31, 2023 are as follows (in thousands):

Condensed Consolidated Balance Sheet:


	March 31, 2023
	As Reported		Adjustments		As Restated
Non-controlling interest	$	4,603	$	(4,603)	$	—
Stockholders’ equity:
Total Travelzoo stockholders’ equity	8,219		—		8,219
Non-controlling interest	—		4,603		4,603
Total stockholders’ equity	$	8,219	$	4,603	$	12,822

Condensed Consolidated Statement of Stockholders’ Equity:


	March 31, 2023
	As Reported		Adjustments		As Restated
Total Travelzoo stockholders’ equity	$	8,219	$	—	$	8,219
Non-controlling interest	—		4603		4,603
Total stockholders’ equity	$	8,219	$	4,603	$	12,822