Correction of an Error

6 Months Ended

Jun. 30, 2023

Correction of an Error [Abstract]

CORRECTION OF AN ERROR

NOTE 20 CORRECTION OF AN ERROR

During the review of the Company’s condensed consolidated financial statements for the three months ended March 31, 2023, the Company identified errors in the reporting of historical goodwill impairment (included in impairment expense) and intangible asset impairment (included in impairment expense). The errors resulted in an understatement of impairment expense for the year ended December 31, 2022. Based on management’s evaluation of the SEC Staff’s Accounting Bulletins Nos. 99 (“SAB 99”) and 108 (“SAB 108”) and interpretations therewith, the Company concluded that the aforementioned errors were not material to the Company’s previously filed 2022 consolidated financial statements. This is further supported by the fact that all errors are of a non-cash nature, do not impact Adjusted EBITDA (earnings before income tax, depreciation and amortization, impairment expense, and stock-based compensation), and would not likely have materially impacted a reasonable investor’s opinion of the Company’s financial condition and results of operations.

Because the correction of these errors was not deemed to be material to the results for the year ended December 31, 2022, and the errors are not expected to be material to the year ended December 31, 2023, to correct these errors, the Company recorded the corrections as out-of-period adjustments in the three-month period ended March 31, 2023. See the table below for the details of the corrections:

	For the Six Months Ended
Condensed Consolidated Statements of Operations:	June 30, 2023
(Amounts in thousands)	Before Adjustment			Adjustment			As Reported
Impairment	$	-		$	896		$	896
Net loss from continuing operations	$	(3,396	)	$	(896	)	$	(4,292	)
Net loss from continuing operations – basic and diluted per share	$	(1.42	)	$	(0.34	)	$	(1.76	)