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REVISIONS | 12 Months Ended
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Dec. 31, 2019
Accounting Changes and Error Corrections [Abstract] |
Revisions | RESTATEMENTS Throughout 2019, the Company has been making efforts to remediate its material weaknesses in internal control as of December 31, 2018, including investing in new personnel that have expertise in a broad array of accounting topics. As a result of these investments and remediation efforts, the Company reevaluated the accounting for a broad array of items and discovered numerous immaterial errors. On March 12, 2020, our Management and the Audit Committee of the Board of Directors, following discussion with our predecessor independent registered public accounting firm, concluded that the Company's previously filed financial statements for the twelve months ended December, 31 2018 and the quarterly statements for the three and nine months ended September 30, 2018 and three months ended March 31, 2019, were no longer able to be relied upon as the result of the aggregation of errors identified by Management and the Company’s new accounting personnel during 2019 related to the following: As identified during preparation of the fiscal year 2019 Form 10-K:
• | The Company reevaluated its subsidiary consolidation process and discovered an inaccuracy in its accounting for the elimination of markup on intercompany sales. This resulted in the Company incorrectly including the markup in US inventory purchased from Apyx Bulgaria and resulted in an overstatement of cost of sales and a corresponding understatement of other costs and expenses when the inventory was sold, which did not have any impact on net income (loss) or financial position.
◦ | For the three months ended March 31, 2019, the total impact included increases to both gross profit and to operating expenses of approximately $113,000.
• | During the first quarter of 2020, while reconciling the 2019 income tax provision back to the corresponding records, we determined that when employees exercised non-qualified stock options, we did not collect and remit the employee’s income and payroll taxes on the exercises and did not accrue and remit the employer portion of payroll taxes. Due to statutory requirements, we have joint and several liability on the amounts that we did not withhold from employees and remit to the proper taxing authorities. While further investigating the issue, we determined that during 2018 we did not report the correct amount of income to employees on their form W-2 for both non-qualified and incentive stock option exercises and misclassified some non-qualified stock option exercises as incentive stock option exercises.
◦ | For the three and nine months ended September 30, 2018 and year ended December 31, 2018, the total aggregated impact included an increase of approximately $51,000 to operating expenses, an increase of approximately $713,000 to other losses and an increase to net loss of approximately $764,000.
◦ | For the three months ended March 31, 2019, the total aggregated impact included an increase to operating expenses of $16,000, an increase of approximately $301,000 to other losses and an increase to net loss of approximately $317,000.
• | Other minor items primarily related to the appropriate cutoff of transactions at the balance sheet date and the duplicate recording of a State income tax payment.
◦ | For the three and nine months ended September 30, 2018, the total aggregated impact included an increase of approximately $59,000 to operating expenses, operating loss and net loss.
◦ | For the year ended December 31, 2018, the total aggregated impact included a decrease to sales of $81,000, an increase to gross profit of $33,000, a decrease to operating income from continuing operations of $74,000 and a decrease to net loss from continuing operations of $56,000.
◦ | For the three months ended March 31, 2019, the total aggregated impact included a decrease to operating loss of $90,000 and an increase to net loss of $40,000.
As previously disclosed and adjusted in Form 10-Q for the three and nine months ended September 2019 filed on November 11, 2019:
• | The Company reevaluated its accounting for stock-based compensation expense and during the three months ended September 30, 2019, the Company discovered errors in its accounting for certain items included in stock-based compensation expense. These errors related to its accounting for forfeitures, the vesting periods over which the expense was recognized, modifications, fair value measurements, and other minor miscellaneous items, all of which relate to the prior year. Additionally, the Company identified an issue relating to grants in the first quarter of 2019, whereby compensation was not recognized over the correct vesting period.
◦ | For the year ended December 31, 2018, the total impact included increases to operating expenses, operating loss and net loss of approximately $582,000 each.
◦ | For the three months ended March 31, 2019, the total impact included increases to operating expenses, operating loss and net loss of approximately $453,000 each.
• | During the three months ended September 30, 2019, the Company reevaluated its accounting for pre-development activities on certain OEM contracts. In performing the review, the Company determined that the it has not completed its performance obligations on its pre-development activities in these contracts. Accordingly, the Company determined that it had prematurely recognized revenues during the first quarter relating to these activities and did not defer the accompanying costs.
◦ | For the three months ended March 31, 2019, the total impact included decreases to sales of approximately $194,000, decreases to operating expenses of approximately $77,000 and increases to both operating loss and net loss of approximately $117,000.
The Company has made all of the restatement adjustments as of and for the year ending December 31, 2018 in the accompanying consolidated financial statements presented here. The Company will file 10-Q/A's for the three and nine months ended September 30, 2018 and the three months ended March 31, 2019 as soon as practicable. A reconciliation of the originally reported amounts to the restated amounts for the adjustments noted above for each of the affected periods is presented below. Consolidated Balance Sheet as of September 30, 2018:
| (In thousands) | As Originally Reported |  | Adjustments |  | As Restated
| ASSETS |  |  |  |  |
| Current assets: |  |  |  |  |
| Cash and cash equivalents | $ | 40,663 |  |  | $ | — |  |  | $ | 40,663 |
| Short term investments | 55,480 |  |  | — |  |  | 55,480 |
| Trade accounts receivable, net | 4,080 |  |  | 59 |  |  | 4,139 |
| Inventories, net | 6,037 |  |  | — |  |  | 6,037 |
| Prepaid expenses and other current assets | 627 |  |  | — |  |  | 627 |
| Total current assets | 106,887 |  |  | 59 |  |  | 106,946 |
| Property and equipment, net | 5,842 |  |  | — |  |  | 5,842 |
| Other assets* | 385 |  |  | — |  |  | 385 |
| Total assets | $ | 113,114 |  |  | $ | 59 |  |  | $ | 113,173 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
| Current liabilities: |  |  |  |  |
| Accounts payable | $ | 2,348 |  |  | $ | — |  |  | $ | 2,348 |
| Accrued expenses and other current liabilities | 19,324 |  |  | 764 |  |  | 20,088 |
| Total current liabilities | 21,672 |  |  | 764 |  |  | 22,436 |
| Related party note payable | 140 |  |  | — |  |  | 140 |
| Total liabilities | 21,812 |  |  | 764 |  |  | 22,576 |
| STOCKHOLDERS' EQUITY |  |  |  |  |
| Common stock, $0.001 par value; 75,000,000 shares authorized; 33,763,019 issued and 33,620,444 outstanding | 33 |  |  | — |  |  | 33 |
| Additional paid-in capital | 51,798 |  |  | — |  |  | 51,798 |
| Retained earnings | 39,471 |  |  | (705 | ) |  | 38,766 |
| Total stockholders’ equity | 91,302 |  |  | (705 | ) |  | 90,597 |
| Total liabilities and stockholders’ equity | $ | 113,114 |  |  | $ | 59 |  |  | $ | 113,173 |
| * The Company has condensed the presentation of amounts presented in the balance sheet to conform to presentation guidelines.
Consolidated Statement of Operations for the three months ended September 30, 2018:
(In thousands) | As Originally Reported |  | Adjustments |  | As Restated
Sales | $ | 3,672 |  |  | $ | — |  |  | $ | 3,672 |
Cost of sales | 1,151 |  |  | — |  |  | 1,151 |
Gross profit | 2,521 |  |  | — |  |  | 2,521 |
Other costs and expenses: |  |  |  |  |
Research and development | 613 |  |  | — |  |  | 613 |
Professional services | 628 |  |  | — |  |  | 628 |
Salaries and related costs | 2,119 |  |  | 51 |  |  | 2,170 |
Selling, general and administrative | 1,957 |  |  | (59 | ) |  | 1,898 |
Total other costs and expenses | 5,317 |  |  | (8 | ) |  | 5,309 |
Loss from operations | (2,796 | ) |  | 8 |  |  | (2,788 | )
Interest income (expense), net | 105 |  |  | — |  |  | 105 |
Other losses | (155 | ) |  | (713 | ) |  | (868 | )
Total other losses, net | (50 | ) |  | (713 | ) |  | (763 | )
Loss from continuing operations before income taxes | (2,846 | ) |  | (705 | ) |  | (3,551 | )
Income tax benefit | (2,408 | ) |  | — |  |  | (2,408 | )
Net loss from continuing operations | (438 | ) |  | (705 | ) |  | (1,143 | )
Income from discontinued operations, net of tax | 540 |  |  | — |  |  | 540 |
Gain on sale of the Core Business, net of tax | 69,072 |  |  | — |  |  | 69,072 |
Total income from discontinued operations, net of tax | 69,612 |  |  | — |  |  | 69,612 |
Net income (loss) | $ | 69,174 |  |  | $ | (705 | ) |  | $ | 68,469 |
Loss per share from continuing operations |  |  |  |  |
Basic and Diluted | $ | (0.01 | ) |  | $ | (0.02 | ) |  | $ | (0.03 | )
Income per share from discontinued operations |  |  |  |  |
Basic | 2.09 |  |  | — |  |  | 2.09 |
Diluted | 1.99 |  |  | — |  |  | 1.99 |
Income (loss) per share from all operations |  |  |  |  |
Basic | 2.08 |  |  | (0.02 | ) |  | 2.06 |
Diluted | 1.98 |  |  | (0.02 | ) |  | 1.96 |
Weighted average number of shares outstanding basic | 33,275 |  |  | 33,275 |  |  | 33,275 |
Weighted average number of shares outstanding diluted | 34,934 |  |  | 34,934 |  |  | 34,934 |
Consolidated Statement of Operations for the nine months ended September 30, 2018:
(In thousands) | As Originally Reported |  | Adjustments |  | As Restated
Sales | $ | 10,760 |  |  | $ | — |  |  | $ | 10,760 |
Cost of sales | 3,490 |  |  | — |  |  | 3,490 |
Gross profit | 7,270 |  |  | — |  |  | 7,270 |
Other costs and expenses: |  |  |  |  |
Research and development | 1,890 |  |  | — |  |  | 1,890 |
Professional services | 1,815 |  |  | — |  |  | 1,815 |
Salaries and related costs | 5,734 |  |  | 51 |  |  | 5,785 |
Selling, general and administrative | 6,280 |  |  | (59 | ) |  | 6,221 |
Total other costs and expenses | 15,719 |  |  | (8 | ) |  | 15,711 |
Loss from operations | (8,449 | ) |  | 8 |  |  | (8,441 | )
Interest income (expense), net | 33 |  |  | — |  |  | 33 |
Other losses | (155 | ) |  | (713 | ) |  | (868 | )
Change in fair value of derivative liabilities | 20 |  |  | — |  |  | 20 |
Total other losses, net | (102 | ) |  | (713 | ) |  | (815 | )
Loss from continuing operations before income taxes | (8,551 | ) |  | (705 | ) |  | (9,256 | )
Income tax benefit | (2,384 | ) |  | — |  |  | (2,384 | )
Net loss from continuing operations | (6,167 | ) |  | (705 | ) |  | (6,872 | )
Income from discontinued operations, net of tax | 5,062 |  |  | — |  |  | 5,062 |
Gain on sale of the Core Business, net of tax | 69,072 |  |  | — |  |  | 69,072 |
Total income from discontinued operations, net of tax | 74,134 |  |  | — |  |  | 74,134 |
Net income (loss) | $ | 67,967 |  |  | $ | (705 | ) |  | $ | 67,262 |
Loss per share from continuing operations |  |  |  |  |  |
Basic and Diluted | $ | (0.19 | ) |  | $ | (0.02 | ) |  | $ | (0.21 | )
Income per share from discontinued operations |  |  |  |  |
Basic | 2.25 |  |  | — |  |  | 2.25 |
Diluted | 2.19 |  |  | — |  |  | 2.19 |
Income (loss) per share from all operations |  |  |  |  |  |
Basic | 2.06 |  |  | (0.02 | ) |  | 2.04 |
Diluted | 2.00 |  |  | (0.02 | ) |  | 1.98 |
Weighted average number of shares outstanding basic | 33,014 |  |  | 33,014 |  |  | 33,014 |
Weighted average number of shares outstanding diluted | 33,952 |  |  | 33,952 |  |  | 33,952 |
Consolidated Balance Sheet as of December 31, 2018:
| (In thousands) | As Originally Reported |  | Adjustments |  | As Restated
| ASSETS |  |  |  |  |
| Current assets: |  |  |  |  |
| Cash and cash equivalents | $ | 16,466 |  |  | $ | 130 |  |  | $ | 16,596 |
| Short term investments | 61,678 |  |  | — |  |  | 61,678 |
| Trade accounts receivable, net** | 3,656 |  |  | 65 |  |  | 3,721 |
| Other receivables** | 1,359 |  |  | — |  |  | 1,359 |
| Inventories, net** | 3,061 |  |  | 85 |  |  | 3,146 |
| Prepaid expenses and other current assets** | 3,297 |  |  | 38 |  |  | 3,335 |
| Total current assets | 89,517 |  |  | 318 |  |  | 89,835 |
| Property and equipment, net | 5,788 |  |  | — |  |  | 5,788 |
| Other assets* | 305 |  |  | — |  |  | 305 |
| Total assets | $ | 95,610 |  |  | $ | 318 |  |  | $ | 95,928 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
| Current liabilities: |  |  |  |  |
| Accounts payable | $ | 1,423 |  |  | $ | — |  |  | $ | 1,423 |
| Accrued expenses and other current liabilities* | 6,279 |  |  | 909 |  |  | 7,188 |
| Total current liabilities | 7,702 |  |  | 909 |  |  | 8,611 |
| Related party note payable | 140 |  |  | — |  |  | 140 |
| Total liabilities | 7,842 |  |  | 909 |  |  | 8,751 |
| STOCKHOLDERS' EQUITY |  |  |  |  |
| Common stock, $0.001 par value; 75,000,000 shares authorized; 33,847,100 issued and 33,704,525 outstanding | 34 |  |  | — |  |  | 34 |
| Additional paid-in capital | 52,221 |  |  | 699 |  |  | 52,920 |
| Retained earnings | 35,513 |  |  | (1,290 | ) |  | 34,223 |
| Total stockholders’ equity | 87,768 |  |  | (591 | ) |  | 87,177 |
| Total liabilities and stockholders’ equity | $ | 95,610 |  |  | $ | 318 |  |  | $ | 95,928 |
| * The Company has condensed the presentation of amounts presented in the balance sheet to conform to presentation guidelines.
| ** The Company has reclassified balances to conform to current presentation.
Consolidated Statement of Operations for the year ended December 31, 2018:
(In thousands) | As Originally Reported |  | Adjustments |  | As Restated
Sales | $ | 16,686 |  |  | $ | (81 | ) |  | $ | 16,605 |
Cost of sales | 5,893 |  |  | (114 | ) |  | 5,779 |
Gross profit | 10,793 |  |  | 33 |  |  | 10,826 |
Other costs and expenses: |  |  |  |  |
Research and development | 2,469 |  |  | 80 |  |  | 2,549 |
Professional services | 3,072 |  |  | 61 |  |  | 3,133 |
Salaries and related costs | 8,673 |  |  | 599 |  |  | 9,272 |
Selling, general and administrative | 9,438 |  |  | (31 | ) |  | 9,407 |
Severance and related expense | 741 |  |  | — |  |  | 741 |
Total other costs and expenses | 24,393 |  |  | 709 |  |  | 25,102 |
Loss from operations | (13,600 | ) |  | (676 | ) |  | (14,276 | )
Interest income | 616 |  |  | — |  |  | 616 |
Interest expense | (104 | ) |  | — |  |  | (104 | )
Other losses | (203 | ) |  | (744 | ) |  | (947 | )
Change in fair value of derivative liabilities | 20 |  |  | — |  |  | 20 |
Total other income (losses), net | 329 |  |  | (744 | ) |  | (415 | )
Loss from continuing operations before income taxes | (13,271 | ) |  | (1,420 | ) |  | (14,691 | )
Income tax benefit | (3,777 | ) |  | (130 | ) |  | (3,907 | )
Net loss from continuing operations | (9,494 | ) |  | (1,290 | ) |  | (10,784 | )
Income from discontinued operations, net of tax | 5,099 |  |  | — |  |  | 5,099 |
Gain on sale of the Core Business, net of tax | 68,404 |  |  | — |  |  | 68,404 |
Total income from discontinued operations, net of tax | 73,503 |  |  | — |  |  | 73,503 |
Net income (loss) | $ | 64,009 |  |  | $ | (1,290 | ) |  | $ | 62,719 |
Loss per share from continuing operations |  |  |  |  |  |
Basic and Diluted | $ | (0.29 | ) |  | $ | (0.04 | ) |  | $ | (0.32 | )
Income per share from discontinued operations |  |  |  |  |
Basic | 2.21 |  |  | — |  |  | 2.21 |
Diluted | 2.14 |  |  | — |  |  | 2.14 |
Income (loss) per share from all operations |  |  |  |  |  |
Basic | 1.93 |  |  | (0.04 | ) |  | 1.89 |
Diluted | 1.86 |  |  | (0.04 | ) |  | 1.83 |
Weighted average number of shares outstanding basic | 33,185 |  |  | 33,185 |  |  | 33,185 |
Weighted average number of shares outstanding diluted | 34,366 |  |  | 34,366 |  |  | 34,366 |
Consolidated Balance Sheet as of March 31, 2019:
| (In thousands) | As Originally Reported |  | Adjustments |  | As Restated
| ASSETS |  |  |  |  |
| Current assets: |  |  |  |  |
| Cash and cash equivalents | $ | 32,415 |  |  | $ | — |  |  | $ | 32,415 |
| Short term investments | 40,885 |  |  | — |  |  | 40,885 |
| Trade accounts receivable, net** | 4,006 |  |  | 38 |  |  | 4,044 |
| Other receivables** | 925 |  |  | — |  |  | 925 |
| Inventories, net** | 3,013 |  |  | — |  |  | 3,013 |
| Prepaid expenses and other current assets** | 3,996 |  |  | 38 |  |  | 4,034 |
| Total current assets | 85,240 |  |  | 76 |  |  | 85,316 |
| Property and equipment, net** | 6,015 |  |  | — |  |  | 6,015 |
| Operating lease right-of-use assets** | 178 |  |  | — |  |  | 178 |
| Other assets* | 270 |  |  | 77 |  |  | 347 |
| Total assets | $ | 91,703 |  |  | $ | 153 |  |  | $ | 91,856 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
| Current liabilities: |  |  |  |  |
| Accounts payable | $ | 1,504 |  |  | $ | — |  |  | $ | 1,504 |
| Accrued expenses and other current liabilities* | 5,868 |  |  | 1,141 |  |  | 7,009 |
| Current portion of operating lease liabilities** | 103 |  |  | — |  |  | 103 |
| Total current liabilities | 7,475 |  |  | 1,141 |  |  | 8,616 |
| Related party note payable | 140 |  |  | — |  |  | 140 |
| Long-term portion of operating lease liabilities | 75 |  |  | — |  |  | 75 |
| Other long-term liabilities | — |  |  | 194 |  |  | 194 |
| Total liabilities | 7,690 |  |  | 1,335 |  |  | 9,025 |
| STOCKHOLDERS' EQUITY |  |  |  |  |
| Common stock, $0.001 par value; 75,000,000 shares authorized; 34,033,255 issued and 33,891,255 outstanding | 34 |  |  | — |  |  | 34 |
| Additional paid-in capital | 53,147 |  |  | 1,035 |  |  | 54,182 |
| Retained earnings | 30,832 |  |  | (2,217 | ) |  | 28,615 |
| Total stockholders’ equity | 84,013 |  |  | (1,182 | ) |  | 82,831 |
| Total liabilities and stockholders’ equity | $ | 91,703 |  |  | $ | 153 |  |  | $ | 91,856 |
| * The Company has condensed the presentation of amounts presented in the balance sheet to conform to presentation guidelines.
| ** The Company has reclassified balances to conform to current presentation.
Consolidated Statement of Operations for the three months ended March 31, 2019:
(In thousands) | As Originally Reported |  | Adjustments |  | As Restated
Sales | $ | 5,823 |  |  | $ | (194 | ) |  | $ | 5,629 |
Cost of sales | 2,103 |  |  | (37 | ) |  | 2,066 |
Gross profit | 3,720 |  |  | (157 | ) |  | 3,563 |
Other costs and expenses: |  |  |  |  |
Research and development | 810 |  |  | (80 | ) |  | 730 |
Professional services | 1,791 |  |  | 327 |  |  | 2,118 |
Salaries and related costs | 3,221 |  |  | 267 |  |  | 3,488 |
Selling, general and administrative | 3,101 |  |  | (144 | ) |  | 2,957 |
Total other costs and expenses | 8,923 |  |  | 370 |  |  | 9,293 |
Loss from operations | (5,203 | ) |  | (527 | ) |  | (5,730 | )
Interest income | 423 |  |  | — |  |  | 423 |
Other losses | (25 | ) |  | (270 | ) |  | (295 | )
Total other losses, net | 398 |  |  | (270 | ) |  | 128 |
Loss from continuing operations before income taxes | (4,805 | ) |  | (797 | ) |  | (5,602 | )
Income tax (benefit) expense | (124 | ) |  | 130 |  |  | 6 |
Net loss | $ | (4,681 | ) |  | $ | (927 | ) |  | $ | (5,608 | )
Loss per share |  |  |  |  |
Basic and Diluted | $ | (0.14 | ) |  | $ | (0.03 | ) |  | $ | (0.17 | )
Weighted average number of shares outstanding basic and diluted | 33,343 |  |  | 33,343 |  |  | 33,343 |
REVISIONS As a part of the efforts discussed in Note 4, the Company discovered additional errors in the consolidated financial statements for the three and six months ended June 30, 2019 and the three and nine months ended September 30, 2019. The Company has determined that the aggregated effects of correcting these errors are immaterial to the financial statements for the three and six month periods ending June 30, 2019 and the three and nine months ended September 30, 2019 but would materially misstate the three month period ended December 31, 2019 if recorded then, and has accordingly corrected the errors by revising the previously reported amounts for the three and six month periods ended June 30, 2019 and the three and nine month period ended September 30, 2019 in the following tables. The revised amounts below will be disclosed in the next filing discussing the periods that were subject to the revision. A summary of the revisions as of each reporting period affected is as follows: For the three months ended June 30, 2019:
(In thousands) | As Reported |  | Adjustments |  | As Revised |  |
Balance Sheet |  |  |  |  |  |  |
Trade accounts receivable, net | $ | 5,233 |  |  | $ | 59 |  |  | $ | 5,292 |  |  | [3]
Accrued and other liabilities | 6,149 |  |  | 1,081 |  |  | 7,230 |  |  | [1]
Retained earnings | 25,342 |  |  | (1,022 | ) |  | 24,320 |  |  | [1],[3]
Statement of Operations |  |  |  |  |  |  |
Sales | $ | 6,568 |  |  | $ | 81 |  |  | $ | 6,649 |  |  | [3]
Cost of sales | 2,096 |  |  | (121 | ) |  | 1,975 |  |  | [2],[3]
Professional services | 1,633 |  |  | 28 |  |  | 1,661 |  |  | [2]
Salaries and related costs | 3,333 |  |  | 177 |  |  | 3,510 |  |  | [2]
Selling, general and administrative | 3,083 |  |  | (46 | ) |  | 3,037 |  |  | [2]
Loss per share - all | $ | (0.13 | ) |  | $ | — |  |  | $ | (0.13 | ) |  | [2],[3]
Gross profit | 4,472 |  |  | 202 |  |  | 4,674 |  |  | [2]
Gross profit % | 68.1 | % |  | 2.2 | % |  | 70.3 | % |  | [2]
[1] Adjustments relate to payroll tax corrections |  |  |  |  |  |  |
[2] Adjustments relate to intercompany gross profit |  |  |  |  |  |  |
[3] Other corrections primarily related to balance sheet cutoff |  |  |  |  |  |  |
For the six months ended June 30, 2019:
(In thousands) | As Reported |  | Adjustments |  | As Revised |  |
Balance Sheet |  |  |  |  |  |  |
Trade accounts receivable, net | $ | 5,233 |  |  | $ | 59 |  |  | $ | 5,292 |  |  | [3]
Accrued and other liabilities | 6,149 |  |  | 1,081 |  |  | 7,230 |  |  | [1]
Retained earnings | 25,342 |  |  | (1,022 | ) |  | 24,320 |  |  | [1],[3]
Statement of Operations |  |  |  |  |  |  |
Sales | $ | 12,197 |  |  | $ | 81 |  |  | $ | 12,278 |  |  | [3]
Cost of sales | 4,199 |  |  | (158 | ) |  | 4,041 |  |  | [2],[3]
Research and development | 1,698 |  |  | (80 | ) |  | 1,618 |  |  | [2],[3]
Professional services | 3,760 |  |  | 19 |  |  | 3,779 |  |  | [2],[3]
Salaries and related costs | 6,671 |  |  | 327 |  |  | 6,998 |  |  | [1],[2]
Selling, general and administrative | 6,107 |  |  | (113 | ) |  | 5,994 |  |  | [2],[3]
Other income (losses), net | (225 | ) |  | (270 | ) |  | (495 | ) |  | [1],[3]
Loss per share - all | $ | (0.29 | ) |  | $ | (0.01 | ) |  | $ | (0.30 | ) |  | [1],[3]
Gross profit | 7,998 |  |  | 239 |  |  | 8,237 |  |  | [2],[3]
Gross profit % | 65.6 | % |  | 1.5 | % |  | 67.1 | % |  | [2],[3]
[1] Adjustments relate to payroll tax corrections |  |  |  |  |  |  |
[2] Adjustments relate to intercompany gross profit |  |  |  |  |  |  |
[3] Other corrections primarily related to balance sheet cutoff |  |  |  |  |  |  |
For the three months ended September 30, 2019:
(In thousands) | As Reported |  | Adjustments |  | As Revised |  |
Balance Sheet |  |  |  |  |  |  |
Accrued expenses and other liabilities | $ | 7,285 |  |  | $ | 1,081 |  |  | $ | 8,366 |  |  | [1]
Retained earnings | 21,031 |  |  | (1,081 | ) |  | 19,950 |  |  | [1]
Statement of Operations |  |  |  |  |  |  |
Cost of sales | $ | 2,558 |  |  | $ | (277 | ) |  | $ | 2,281 |  |  | [2]
Research and development | 936 |  |  | 80 |  |  | 1,016 |  |  | [2]
Professional services | 1,996 |  |  | 43 |  |  | 2,039 |  |  | [2]
Salaries and related costs | 3,020 |  |  | 139 |  |  | 3,159 |  |  | [2]
Selling, general and administrative | 3,762 |  |  | 74 |  |  | 3,836 |  |  | [2],[3]
Loss per share - all | $ | (0.13 | ) |  | $ | — |  |  | $ | (0.13 | ) |  | [3]
Gross profit | 5,017 |  |  | 277 |  |  | 5,294 |  |  | [2]
Gross profit % | 66.2 | % |  | 3.7 | % |  | 69.9 | % |  | [2]
[1] Adjustments relate to payroll tax corrections |  |  |  |  |  |  |
[2] Adjustments relate to intercompany gross profit |  |  |  |  |  |  |
[3] Other corrections primarily related to balance sheet cutoff |  |  |  |  |  |  |
For the nine months ended September 30, 2019:
(In thousands) | As Reported |  | Adjustments |  | As Revised |  |
Balance Sheet |  |  |  |  |  |  |
Accrued expenses and other liabilities | $ | 7,285 |  |  | $ | 1,081 |  |  | $ | 8,366 |  |  | [1]
Retained earnings | 21,031 |  |  | (1,081 | ) |  | 19,950 |  |  | [1]
Statement of Operations |  |  |  |  |  |  |
Sales | $ | 19,772 |  |  | $ | 81 |  |  | $ | 19,853 |  |  | [3]
Cost of sales | 6,757 |  |  | (435 | ) |  | 6,322 |  |  | [2],[3]
Research and development | 2,634 |  |  | — |  |  | 2,634 |  |  | [2],[3]
Professional services | 5,756 |  |  | 62 |  |  | 5,818 |  |  | [2],[3]
Salaries and related costs | 9,691 |  |  | 466 |  |  | 10,157 |  |  | [1],[2]
Selling, general and administrative | 9,869 |  |  | (39 | ) |  | 9,830 |  |  | [2],[3]
Other income (losses), net | 5 |  |  | (270 | ) |  | (265 | ) |  | [1],[3]
Loss per share - all | $ | (0.41 | ) |  | $ | (0.01 | ) |  | $ | (0.42 | ) |  | [1], [3]
Gross profit | 13,015 |  |  | 516 |  |  | 13,531 |  |  | [2],[3]
Gross profit % | 65.8 | % |  | 2.4 | % |  | 68.2 | % |  | [2],[3]
[1] Adjustments relate to payroll tax corrections |  |  |  |  |  |  |
[2] Adjustments relate to intercompany gross profit |  |  |  |  |  |  |
[3] Other corrections primarily related to balance sheet cutoff |  |  |  |  |  |  |

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- References No definition available. + Details
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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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