4. SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Except for the items mentioned below, no other balance sheet opening balances were materially impacted at January 1, 2017 for the adoption of Topic 606.

Deferred Costs

The Company’s prepaid expenses and other assets at March 31, 2018 and 2017 included deferred costs (in thousands) incurred to fulfill contracts with customers of $4,688 and $3,180, respectively. The amount of total deferred costs amortized (in thousands) during the three months ended March 31, 2018 and 2017 was $6,999 and $13,015, respectively. There were no material impairment losses incurred during these periods.

The opening balance of deferred cost (in thousands) was $2,991 and $3,668 at January 1, 2018 and 2017, respectively.

Deferred Revenue

The Company recognized revenue (in thousands) of $3,683 and $4,655 during the three months ended March 31, 2018 and 2017, respectively, that was included in deferred revenue balances at the beginning of the respective periods.

The opening balance of deferred revenue (in thousands) was $6,314 and $5,385 at January 1, 2018 and 2017, respectively.

Adjustments to Condensed Consolidated Financial Statements

The following tables reflect the adjustments applied to our condensed consolidated financial statements related to both the adoption of Topic 606 and the 5% stock dividend discussed in Note 9.

Select line items from the Company’s Condensed Consolidated Balance Sheets which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands):


	December 31, 2017
	As Previously Reported		Topic 606 Adjustments		Stock Dividend Adjustments		As Adjusted
Current assets:
Accounts receivable, net	$	33,138	$	18			$	33,156
Prepaid expenses and other current assets	$	4,677	$	2,663			$	7,340
Current liabilities:
Deferred revenue	$	3,699	$	2,615			$	6,314
Stockholders' equity:
Common Stock	$	218			$	11	$	229
Additional paid-in capital	$	143,835			$	8,046	$	151,881
Retained deficit	$	(2,021)	$	66	$	(8,057)	$	(10,012)

Select line items from the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands except share and per share data):


	Three Months Ended March 31, 2017
	As Previously Reported		Topic 606 Adjustments		Stock Dividend Adjustments		As Adjusted
Operating revenues	$	41,927	$	439			$	42,366
Operating costs:
Operating expenses	$	39,537	$	437			$	39,974
Loss from operations	$	(12,141)	$	2			$	(12,139)
Net loss	$	(9,154)	$	2			$	(9,152)
Basic and diluted loss per share of common stock	$	(0.42)	$	—	$	0.02	$	(0.40)
Weighted average equivalent common shares
outstanding and outstanding - assuming dilution		21,659,539				1,082,977		22,742,516

Select line items from the Company’s Condensed Consolidated Statements of Cash Flows which reflect the adoption of the new standard are as follows (in thousands):


	Three Months Ended March 31, 2017
	As Previously Reported		Topic 606 Adjustments			As Adjusted
Cash flows from operating activities:
Net loss	$	(9,154)	$	2	$	(9,152)
Change in current assets and liabilities:
Increase in accounts receivable	$	(8,003)	$	(99)	$	(8,102)
Increase in prepaid expenses and other current assets	$	(308)	$	261	$	(47)
Increase in accounts payable	$	1,248	$	176	$	1,424
Decrease in deferred revenue	$	(791)	$	(340)	$	(1,131)
Net cash used in operating activities	$	(6,749)	$	—	$	(6,749)