Revision to Previously Reported Financial Information

12 Months Ended

Dec. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Revision to Previously Reported Financial Information

5. Revision to Previously Reported Financial Information

In conjunction with our close process for the second quarter of 2023, we identified accounting errors related to an indemnification receivable and duplicate billing errors impacting prior periods. In the third quarter of 2022, due to the expiration of the statute of limitations of an Uncertain Tax Position (“UTP”), we released the liability for this UTP, but failed to write-off the related indemnification receivable previously obtained from the seller of an acquired business, resulting in an overstatement of operating income during the period. In addition, the Company identified billing errors in 2022 and 2021 that resulted in an overstatement of revenue and trade receivables.

The following table presents the impact of correcting the errors on the affected line items of our consolidated balance sheet as of December 31, 2022:

	December 31, 2022
	As Reported		Adjustments			As Revised
	(In thousands)
Trade receivables, net	$	91,504	$	(643	)	$	90,861
Other current assets		34,359		(1,921	)		32,438
Total current assets		752,588		(2,564	)		750,024
Total assets		972,515		(2,564	)		969,951
Total stockholders’ equity		874,916		(2,564	)		872,352

The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of income (loss) for the twelve months ended December 31, 2022:

	Twelve months ended December 31, 2022
	As Reported		Adjustments			As Revised
	(In thousands, except per share data)
Total revenues	$	362,070	$	(146	)	$	361,924
Restructuring and other charges		11,443		1,921			13,364
Operating income		2,521		(2,067	)		454
Income before income taxes		6,770		(2,067	)		4,703
Net income (loss)		443		(2,067	)		(1,624	)
Net income (loss) per common share:
Basic		0.01		(0.06	)		(0.05	)
Diluted		0.01		(0.06	)		(0.05	)

The following table presents the impact of correcting the errors on the affected line items of our consolidated balance sheet as of December 31, 2021:

	December 31, 2021
	As Reported		Adjustments			As Revised
	(In thousands)
Trade receivables, net	$	100,987	$	(497	)	$	100,490
Total current assets		745,549		(497	)		745,052
Total assets		1,010,426		(497	)		1,009,929
Total stockholders' equity		897,108		(497	)		896,611

The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of income (loss) for the twelve months ended December 31, 2021:

	Twelve months ended December 31, 2021
	As Reported			Adjustments			As Revised
	(In thousands, except per share data)
Total revenues	$	322,945		$	(497	)	$	322,448
Operating income (loss)		(124,838	)		(497	)		(125,335	)
Income (loss) before income taxes		(125,050	)		(497	)		(125,547	)
Net income (loss)		(127,996	)		(497	)		(128,493	)
Net income (loss) per common share:
Basic		(3.62	)		(0.01	)		(3.63	)
Diluted		(3.62	)		(0.01	)		(3.63	)

The consolidated statement of stockholders’ equity for the period from January 1, 2022 to December 31, 2022 has also been revised to reflect the impacts to net earnings. The impact of the error arising in 2021, as reflected above, has been reflected as a reduction to opening retained earnings in the amount of $0.5 million in the consolidated statement of stockholders’ equity.

The Company also assessed the impact of all these errors on the statement of cash flows and noted that there was no impact to the net cash provided by (used in) operating activities as the changes in assets and net income offset completely.