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REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

9 Months Ended

Sep. 30, 2022

Accounting Changes and Error Corrections [Abstract]

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

4. REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

In connection with the preparation of our consolidated interim financial statements for the quarter ended September 30, 2022, we completed an analysis of one of our customer contracts under ASC 606 and, as a result, we determined that the performance obligations are satisfied over time. See “Note 3 – Revenues in Notes to Consolidated Financial Statements” in Part I of this Quarterly Report on Form 10-Q. As a result of the analysis, we identified additional revenues to be recognized of $326 and $574 related to the three months ended March 31, 2022 and June 30, 2022, respectively, along with the additional related cost of revenues of $278 and $592, respectively.

The following tables reconcile the balances as previously reported in the Quarterly Reports on Form 10-Q as of and for the three months ended March 31, 2022 and as of and for the three and six months ended June 30, 2022 to the as revised balances:


	For The Three Months Ended
	March 31, 2022
Condensed Consolidated Statements of Operations (Unaudited)	As Reported			Adjustment		As Revised
Revenues	$	6,036		$	326	$	6,362
Cost of goods sold	$	5,161		$	278	$	5,439
Gross profit	$	875		$	48	$	923
Net loss	$	(788	)	$	48	$	(740	)
Loss per share - basic and diluted	$	(0.08	)		—	$	(0.08	)
Weighted average common shares outstanding - basic and diluted		9,641			—		9,641


	For The Three Months Ended
	June 30, 2022
Condensed Consolidated Statements of Operations (Unaudited)	As Reported			Adjustment			As Revised
Revenues	$	4,289		$	574		$	4,863
Cost of goods sold	$	4,208		$	592		$	4,800
Gross profit	$	81		$	(19	)	$	62
Net loss	$	(2,517	)	$	(19	)	$	(2,536	)
Loss per share - basic and diluted	$	(0.26	)		—		$	(0.26	)
Weighted average common shares outstanding - basic and diluted		9,728			—			9,728


	For The Six Months Ended
	June 30, 2022
Condensed Consolidated Statements of Operations (Unaudited)	As Reported			Adjustment		As Revised
Revenues	$	10,325		$	900	$	11,225
Cost of goods sold	$	9,369		$	870	$	10,239
Gross profit	$	956		$	30	$	986
Net loss	$	(3,305	)	$	30	$	(3,275	)
Loss per share - basic and diluted	$	(0.34	)		—	$	(0.34	)
Weighted average common shares outstanding - basic and diluted		9,685			—		9,685


	March 31, 2022
Condensed Consolidated Balance Sheet (Unaudited)	As Reported		Adjustment			As Revised
Total current assets	$	32,162	$	(278	)	$	31,884
Total assets		34,983		(278	)		34,705
Total current liabilities		14,719		(326	)		14,393
Total liabilities		16,145		(326	)		15,819
Total stockholders’ equity		18,838		48			18,886


	June 30, 2022
Condensed Consolidated Balance Sheet (Unaudited)	As Reported		Adjustment			As Revised
Total current assets	$	31,080	$	(870	)	$	30,210
Total assets		34,116		(870	)		33,246
Total current liabilities		15,696		(900	)		14,796
Total liabilities		17,136		(900	)		16,236
Total stockholders’ equity		16,980		30			17,010


	For The Three Months Ended
	March 31, 2022
Cash Flows From Operating Activities (Unaudited)	As Reported			Adjustment			As Revised
Net loss	$	(788	)	$	48		$	(740	)
Changes in current operating assets and liabilities:
Inventories		(2,805	)		278			(2,527	)
Deferred revenue		4,895			(326	)		4,569
Net cash provided by operating activities		2,087			—			2,087


	For The Six Months Ended
	June 30, 2022
Cash Flows From Operating Activities (Unaudited)	As Reported			Adjustment			As Revised
Net loss	$	(3,305	)	$	30		$	(3,275	)
Changes in current operating assets and liabilities:
Inventories		(4,857	)		870			(3,987	)
Deferred revenue		6,866			(900	)		5,966
Net cash used in operating activities		(1,621	)		—			(1,621	)


	For The Three Months Ended
	March 31, 2022
Consolidated Statement of Stockholders’ Equity (Unaudited)	As Reported			Adjustment		As Revised
Accumulated deficit	$	(13,100	)	$	48	$	(13,052	)
Total stockholders’ equity		18,838			48		18,886


	For The Six Months Ended
	June 30, 2022
Consolidated Statement of Stockholders’ Equity (Unaudited)	As Reported			Adjustment		As Revised
Accumulated deficit	$	(15,617	)	$	30	$	(15,587	)
Total stockholders’ equity		16,980			30		17,010

In accordance with SEC Staff Accounting Bulletin No. 108, we evaluated this revision based on an analysis of quantitative and qualitative factors as to whether it was material to the consolidated statements of operations for the three months ended March 31, 2022 and June 30, 2022 and if amendments of previously filed financial statements with the SEC are required. We determined that the adjustment is neither quantitatively nor qualitatively material and, therefore, the revision does not have a material impact to the consolidated statements of operations for the three months ended March 31, 2022, the three and six months ended June 30, 2022 or other prior periods.