Note 12 - Correction of Prior Period Immaterial Error

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Accounting Changes and Error Corrections [Text Block]

Note

12.

Correction of Prior Period Immaterial Error

During the

three

months ended

June 30, 2018,

management discovered that the Company had

not

recorded the tax effect of the adoption of ASC

606

 in the balance sheet of the unaudited condensed consolidated financial statements as of

March 31, 2018.

Upon adoption of Topic

606,

the Company recorded an increase to retained earnings of

$5.0

million for contracts still in force as of

January 1, 2018. 

The tax effect of the

606

adoption was

$1.2

million.

The Company evaluated the impact of the error on prior period and determined that the effect was

not

material to the financial statements as of and for the

three

months ended

March 31, 2018

and 

six

months ended

June 30, 2018.

The Company corrected the error in the unaudited condensed consolidated financial statements as of and for the 

six

months ended

June 30, 2018.

The correction of the error increased the Company's deferred tax liability by

$1.2

million and decreased retained earnings by

$1.2

million (Note

2

) as of

January 1, 2018.

The Company’s condensed consolidated statements of operations, comprehensive income (loss) and cash flows for the

three

months ended

March 31, 2018,

the

three

and

six

months ended

June 30, 2018,

and the

three

and

nine

months ended

September 30, 2018

were

not

affected by this correction of the error. Accordingly, the Company's loss per share for the

three

months ended

March 31, 2018,

the

three

and

six

months ended

June 30, 2018,

and the

three

and

nine

months ended 

September 30, 2018

remains unchanged.