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Basis of Presentation

3 Months Ended

Mar. 31, 2022

Basis of Presentation

In the opinion of management, the Company’s condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the periods presented in accordance with United States of America’s Generally Accepted Accounting Principles (“U.S. GAAP”). The results of operations for the interim periods presented are not necessarily indicative of results for the full year.

Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report.

The information presented in the accompanying condensed consolidated balance sheet as of December 31, 2021 has been derived from the Company’s audited consolidated financial statements. All other information has been derived from the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2022 and March 31, 2021.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and our then wholly-owned subsidiaries, MTI Instruments and SCI, as of March 31, 2022. All intercompany balances and transactions are eliminated in consolidation.

Change in Par Value

Unless otherwise noted, all capital values, share and per share amounts in the condensed consolidated financial statements have been retroactively restated for the effects of the Company’s change in par value from $0.01 to $0.001, which became effective after the redomestication to the State of Nevada on March 29, 2021.

Reclassification

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or net assets. The reclassifications relate to the presentation of discontinued operations and a correction of an error.

Correction of an Error

The Company recorded cash preferred dividend distributions of $630 thousand in the our Annual Report presentation as an increase within accumulated deficit. However, in the absence of retained earnings, cash dividends should generally be charged to Additional-Paid-in Capital (“APIC”). This treatment is supported by Accounting Standards Codification (“ASC”) 480-10-S99-2, which requires accretion of redeemable preferred stock to be charged to APIC in the absence of retained earnings. As the Company did not have accumulated profit (i.e.: absence of retained earnings), the preferred cash dividends should have been charged to APIC.

The following tables present the effects of the correction of the prior period error to the Condensed Consolidated Statement of Equity:


	Preferred Stock				Common Stock										Treasury Stock

		Shares		Amount		Shares		Amount		Additional Paid-in Capital			Accumulated Deficit			Shares		Amount			Total Stockholders’ Equity

September 30, 2021		806,585	$	1		13,732,713	$	14	$	172,898		$	(120,419	)		1,015,493	$	(13,764	)	$	38,730

Adjustment for correction of an error-Preferred dividends		—		—		—		—		(176	)		176			—		—			—
Balance Sep tember 30, 2021-as adjusted		806,585	$	1		13,732,713	$	14	$	172,722		$	(120,243	)		1,015,493	$	(13,764	)	$	38,730
December 31, 2021		1,252,299	$	1		14,769,699	$	15	$	228,420		$	(123,684	)		1,015,493	$	(13,764	)	$	90,988

Adjustment for correction of an error-Preferred dividends		—		—		—		—		(630	)		630			—		—			—

December 31, 2021-as adjusted		1,252,299	$	1		14,769,699	$	15	$	227,790		$	(123,054	)		1,015,493	$	(13,764	)	$	90,988