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Restatement of Financial Statements (Tables)
9 Months Ended
Sep. 30, 2015
Restatement of Financial Statements  
Schedule of restatement on the condensed consolidated balance sheet, consolidated statement of operations and consolidated statement of cash flows

The impact of the restatement and other corrections on the condensed Consolidated Balance Sheet, Consolidated Statement of Operations and Consolidated Statement of Cash Flows as of and for the three and nine month periods ended September 30, 2015 and September 30, 2014 is presented below, in thousands except share and per share data.

 

Three Months Ended September 30, 2015

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Statement of Operations (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Royalty revenue

 

$

 

$

776

 

$

 

 

$

776

 

Total revenue

 

38,586

 

776

 

 

 

39,362

 

Operating income

 

4,309

 

776

 

 

 

5,085

 

Interest expense — non-recourse liability related to sale of future royalties

 

 

(998

)

 

 

(998

)

Total other expense

 

(29

)

(998

)

 

 

(1,027

)

Earnings before income taxes

 

4,280

 

(222

)

 

 

4,058

 

Income tax expense

 

58

 

 

 

84

 

142

 

Net income

 

4,222

 

(222

)

(84

)

3,916

 

Income per common share: Basic

 

0.09

 

(0.01

)

 

 

0.08

 

 

Nine Months Ended September 30, 2015

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Statement of Operations (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Royalty revenue

 

$

 

$

2,007

 

$

 

 

$

2,007

 

Total revenue

 

101,771

 

2,007

 

 

 

103,778

 

Selling, general and administrative

 

65,637

 

 

 

(141

)

65,496

 

Total costs and expenses

 

90,955

 

 

 

(141

)

90,814

 

Operating income

 

10,816

 

2,007

 

141

 

12,964

 

Interest expense — non-recourse liability related to sale of future royalties

 

 

(2,530

)

 

 

(2,530

)

Total other expense

 

(2,889

)

(2,530

)

 

 

(5,419

)

Earnings before income taxes

 

7,927

 

(523

)

141

 

7,545

 

Income tax expense

 

782

 

 

 

(329

)

453

 

Net income

 

7,145

 

(523

)

470

 

7,092

 

 

Nine Months Ended September 30, 2015

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Statements of Cash Flows (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Net cash provided by operating activities

 

$

12,189

 

 

 

$

2,408

 

$

14,597

 

Net cash used in investing activities

 

(23,358

)

 

 

(3,061

)

(26,419

)

Net change in cash and cash equivalents

 

(10,102

)

 

 

(653

)

(10,755

)

 

As of September 30, 2015

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Balance Sheet (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Cash and cash equivalents

 

$

26,294

 

 

 

$

(653

)

$

25,641

 

Marketable securities

 

31,408

 

 

 

653

 

32,061

 

Accrued expenses

 

21,353

 

 

 

301

 

21,654

 

Non-recourse liability related to sale of future royalties — current portion

 

 

261

 

 

 

261

 

Total current liabilities

 

43,128

 

261

 

301

 

43,690

 

Non-recourse liability related to sale of future royalties — long term

 

 

30,287

 

 

 

30,287

 

Total liabilities

 

57,205

 

30,548

 

301

 

88,054

 

Accumulated deficit

 

(151,512

)

(30,548

)

(301

)

(182,361

)

Total stockholders’ equity

 

109,436

 

(30,548

)

(301

)

78,587

 

 

As of December 31, 2014

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Balance Sheet

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Accrued expenses

 

17,026

 

 

 

630

 

17,656

 

Total current liabilities

 

27,493

 

 

 

630

 

28,123

 

Non-recourse liability related to sale of future royalties — long term

 

 

30,025

 

 

 

30,025

 

Total liabilities

 

65,430

 

30,025

 

630

 

96,085

 

Additional paid-in capital

 

230,122

 

 

 

141

 

230,263

 

Accumulated deficit

 

(158,657

)

(30,025

)

(771

)

(189,453

)

Total stockholders’ equity

 

71,354

 

(30,025

)

(630

)

40,699

 

 

Three Months Ended September 30, 2014

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Statement of Operations (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Royalty revenue

 

$

 

$

199

 

$

 

 

$

199

 

Revenue from royalty agreement

 

30,000

 

(30,000

)

 

 

 

Total revenue

 

52,488

 

(29,801

)

 

 

22,687

 

Selling, general and administrative

 

17,343

 

 

 

102

 

17,445

 

Total costs and expenses

 

23,321

 

 

 

102

 

23,423

 

Operating income (loss)

 

29,167

 

(29,801

)

(102

)

(736

)

Interest expense — non-recourse liability related to sale of future royalties

 

 

(326

)

 

 

(326

)

Total other expense

 

(1,309

)

(326

)

 

 

(1,635

)

Earnings before income taxes

 

27,858

 

(30,127

)

(102

)

(2,371

)

Net Income (loss)

 

27,858

 

(30,127

)

(102

)

(2,371

)

Income (loss) per common share: Basic

 

0.65

 

(0.71

)

 

 

(0.06

)

Income (loss) per common share: Diluted

 

0.39

 

(0.45

)

 

 

(0.06

)

Weighted average number of common shares - Diluted

 

50,825,633

 

(7,925,364

)

 

 

42,900,269

 

 

Nine Months Ended September 30, 2014

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Statement of Operations (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Royalty revenue

 

$

 

$

199

 

$

 

 

$

199

 

Revenue from royalty agreement

 

30,000

 

(30,000

)

 

 

 

Total revenue

 

91,244

 

(29,801

)

 

 

61,443

 

Selling, general and administrative

 

54,452

 

 

 

102

 

54,554

 

Total costs and expenses

 

71,744

 

 

 

102

 

71,846

 

Operating Income (loss)

 

19,500

 

(29,801

)

(102

)

(10,403

)

Interest expense — non-recourse liability related to sale of future royalties

 

 

(326

)

 

 

(326

)

Total other expense

 

(3,984

)

(326

)

 

 

(4,310

)

Earnings before income taxes

 

15,516

 

(30,127

)

(102

)

(14,713

)

Net income (loss)

 

15,516

 

(30,127

)

(102

)

(14,713

)

Income (loss) per common share: Basic

 

0.37

 

(0.72

)

 

 

(0.35

)

Income (loss) per common share: Diluted

 

0.13

 

(0.48

)

 

 

(0.35

)

Weighted average number of common shares - Diluted

 

50,378,186

 

(8,343,161

)

 

 

42,035,025

 

 

Nine Months Ended September 30, 2014

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Statements of Cash Flows (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Net cash provided by (used in) operating activities

 

$

739

 

(30,000

)

$

(1,497

)

$

(30,758

)

Net cash provided by investing activities

 

3,797

 

 

 

1,497

 

5,294

 

Net cash provided by financing activities

 

264

 

30,000

 

 

 

30,264

 

 

As of September 30, 2014

 

 

 

As Previously

 

Restatement

 

Other

 

 

 

Consolidated Balance Sheet (unaudited)

 

Reported

 

Adjustments

 

Corrections

 

As Restated

 

Non-recourse liability related to sale of future royalties — long term

 

 

30,127

 

 

 

30,127

 

Total liabilities

 

60,206

 

30,127

 

(765

)

89,568

 

Additional paid-in capital

 

229,123

 

 

 

102

 

229,225

 

Accumulated deficit

 

(163,012

)

(30,127

)

(102

)

(193,241

)

Total stockholders’ equity

 

66,119

 

(30,127

)

 

 

35,992