Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements

3 Months Ended

Mar. 31, 2024

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As described in Notes 2 and 16 to our Consolidated Financial Statements included within Part II, Item 8 contained on Form 10-K for the fiscal year ended December 31, 2023, the Company restated its consolidated financial statements as and for the year ended December 31, 2022 and the unaudited interim condensed consolidated financial statements for each of interim periods within the year ended December 31, 2023.

Description of Restatement Errors

The errors identified as of and for the three months ended March 31, 2023 are as follows:

a.Rental revenue - The Company determined that it miscalculated sales tax payable related to certain customer lease payments going back multiple years. The Company performed an assessment of its sales tax liability across all jurisdictions for potential additional exposure and determined that there was an overstatement of rental revenue and an understatement of sales tax payable included in accrued liabilities. The impact to our condensed consolidated financial statements is as follows:

i.Condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2023 is a decrease to rental revenue of $593

ii.Condensed consolidated balance sheet as of March 31, 2023 is an increase to sales tax payable included in accrued liabilities of $5,981

b.Cost of revenue- Correction to depreciation expense related to property held for lease, net of accumulated depreciation and impairment, included in cost of revenue, of $1,040 for certain leases originated on or before December 31, 2022. Impact to the balance sheet to correct this error is a decrease to property held for lease, net of accumulated depreciation and impairment of $995 and a decrease to prepaid expenses and other current assets of $45.

c.Other errors - There are other errors not described in items (a) or (b) of this note. These errors and related restatement adjustments were not material for the three months ended March 31, 2023. See Notes 2 and 16 to our Consolidated Financial Statements included within Part II, Item 8 contained in the 2023 Annual Report for more details.

The following tables present a reconciliation of the as previously reported condensed consolidated financial statements to the restated amounts as of and for the three months ended March 31, 2023 which include the following: (1) as restated condensed consolidated balance sheet, (2) as restated condensed consolidated statement of operations and comprehensive loss and (3) as restated condensed consolidated statement of cash flows. Presented below are the changes to each financial statement line item which changed as a result of the restatement.

Condensed Consolidated Balance Sheet


	As of March 31, 2023
	As Previously Reported		Restatement Adjustments		As Restated




Property held for lease, net of accumulated depreciation and impairment	$	52,801	$	(1,268)	$	51,533
Prepaid expenses and other current assets	$	5,737	$	(745)	$	4,992
Total current assets	$	103,487	$	(2,013)	$	101,474




Total assets	$	106,760	$	(2,013)	$	104,747



Accrued liabilities	$	14,040	$	5,981	$	20,021
Unearned revenue	$	2,002	$	2,631	$	4,633

Total current liabilities	$	17,901	$	8,612	$	26,513




Total liabilities	$	102,759	$	8,612	$	111,371



Accumulated deficit	$	(85,790)	$	(10,625)	$	(96,415)
Total stockholders' (deficit) equity	$	4,001	$	(10,625)	$	(6,624)
Total liabilities and stockholders' (deficit) equity	$	106,760	$	(2,013)	$	104,747

Condensed Consolidated Statement of Operations and Comprehensive Loss


	Three Months Ended March 31, 2023
	As Previously Reported		Restatement Adjustments		As Restated

Rental revenue	$	54,724	$	(593)	$	54,131

Total revenue	$	55,676	$	(593)	$	55,083
Cost of revenue	$	42,173	$	1,040	$	43,213
Gross profit	$	13,503	$	(1,633)	$	11,870





Compensation costs	$	7,057	$	(202)	$	6,855

Total operating expenses	$	15,769	$	(202)	$	15,567
Loss from operations	$	(2,266)	$	(1,431)	$	(3,697)




Loss before income taxes	$	(9,094)	$	(1,431)	$	(10,525)

Net loss	$	(9,114)	$	(1,431)	$	(10,545)



Net loss per common share - basic and diluted	$	(2.29)	$	(0.36)	$	(2.65)

Condensed Consolidated Statement of Cash Flow


	Three Months Ended March 31, 2023
	As Previously Reported		Restatement Adjustments		As Restated

Net loss	$	(9,114)	$	(1,431)	$	(10,545)

Depreciation and amortization	$	29,012	$	665	$	29,677
Net book value of property held for lease buyouts	$	6,452	$	295	$	6,747
Impairment on property held for lease expense	$	5,223	$	35	$	5,258








Property held for lease	$	(43,013)	$	(286)	$	(43,299)
Prepaid expenses and other current assets	$	2,778	$	331	$	3,109


Accrued liabilities	$	(985)	$	391	$	(594)



Net cash used in operating activities	$	(2,906)	$	—	$	(2,906)

The impact to the unaudited interim condensed consolidated statement of stockholders’deficit for the three months ended March 31, 2023 is an increase to accumulated deficit of $10,625.