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REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
 6 Months Ended
Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]  
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

6. REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

 

In connection with the preparation of our consolidated interim financial statements for the quarter ended June 30, 2020, we identified a revision as of December 31, 2019 in the calculation of the tax expense related to the Equity Transaction. The revision resulted in a net loss for tax purposes and created additional deferred tax assets related to these tax losses, as well as a reduction in the income tax expense, all recorded as part of discontinued operations. The recognition of additional deferred tax assets requires an increase to the valuation allowance as at December 31, 2019, consistent with the Company’s position on the future realization of these assets.

 

In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the revision and determined that the related impact was not material to our results of operations or financial position for any prior annual or interim period, but that correcting the $407 cumulative impact of the revision would be material to our results of operations for the three months ended June 30, 2020. Accordingly, we have corrected the consolidated balance sheets and consolidated statement of operations as of December 31, 2019.

 

The impact to the consolidated balance sheets and consolidated statements of operations as of December 31, 2019 is as follows:

 

   As of December 31, 2019
Consolidated Balance Sheets  As Reported  Adjustment  As Revised
Income taxes receivable  $—     $360   $360 
Total current assets   20,014    360    20,374 
Total assets   28,119    360    28,479 
Income taxes payable   543    (47)   496 
Total current liabilities   9,891    (47)   9,844 
Total liabilities   11,684    (47)   11,637 
Accumulated deficit   (7,566)   407    (7,159)
Total stockholders’ equity   16,435    407    16,842 
                
Consolidated Statements of Operations               
Income tax expense from discontinued operations  $737   $(407)  $330 
Income from discontinued operations, net of income taxes   10,598    407    11,005 
Net loss   (1,439)   407    (1,032)
Basic and diluted loss from continuing operations   (1.38)   —      (1.38)
Basic and diluted income from discontinued operations   1.21    0.05    1.26 
Basic and diluted net loss   (0.17)   0.05    (0.12)

 

Subsequent to the December 31, 2019 revision described above, the March 31, 2020 consolidated balance sheet was also revised to reflect an increase in other currents assets of $360 to $16,533, a decrease in other current liabilities of $47 to $8,698, and an increase to stockholders’ equity of $407 to $13,923.

 

The identified adjustment does not impact any other prior periods.