Other Comprehensive (Loss) Income

6 Months Ended

Jun. 30, 2016

Other Comprehensive (Loss) Income

Other Comprehensive (Loss) Income

5. Other Comprehensive (Loss) Income

Other comprehensive (loss) income includes changes in equity that are excluded from net loss, such as foreign currency translation adjustments.

The following table summarizes accumulated other comprehensive loss, net of zero tax effect, for the six months ended June 30, 2016 and June 30, 2015 (in thousands):

			Total Accumulated
	Foreign Currency		Other
	Translation		Comprehensive
	Adjustment		Items
Balance at December 31, 2015	$	152	$	152
Other comprehensive loss		(681)		(681)
Balance at June 30, 2016	$	(529)	$	(529)

			Total Accumulated
	Foreign Currency		Other
	Translation		Comprehensive
	Adjustment		Items
Balance at December 31, 2014	$	(263)	$	(263)
Other comprehensive loss		(47)		(47)
Balance at June 30, 2015	$	(310)	$	(310)

In preparing its financial statements for the quarter ended June 30, 2015, the Company determined that its accounting related to the elimination of intercompany profits attributable to sales of inventory between consolidated subsidiaries, including the associated exchange rate effect on these transactions, was not correct. The error in not correctly eliminating intercompany profits primarily affected cost of product sales and accumulated other comprehensive income and loss accounts, with a lesser effect on its inventory, which was corrected by the Company in the second quarter of 2015. The Company determined the effect of the error to be an understatement of cost of product sales of approximately $1.7 million for the year ended December 31, 2014 and an overstatement of cost of product sales of approximately $0.6 million for the three months ended March 31, 2015. Cost of product sales in the three months ended June 30, 2015 includes $1.1 million related to this error. In accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality and SAB No. 108 (“SAB 108”), Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company assessed the materiality of this error on its financial statements for the year ended December 31, 2014 and for the three months ended March 31, 2015, using both the roll-over method and iron-curtain methods as defined in SAB 108. The Company concluded the effect of this error was not material to its financial statements for any prior period and, as such, those financial statements are not materially misstated