Revision of Prior Period Financial Statements

3 Months Ended

Mar. 31, 2020

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Period Financial Statements

As discussed in Note 1, the Company has revised certain prior period financial statements to correct errors in its accounting for revenues, contractual allowances, allowance for doubtful accounts and certain other items as presented below (in thousands, except share data):

Revised Consolidated Balance Sheets


	As of March 31, 2019
	As Reported		Adjustment		As Revised
Assets
Cash and cash equivalents	$	28,235	$	(134)	$	28,101
Accounts receivable, net	28,252		(1,481)		26,771
Prepaid expenses and other current assets	3,810		(140)		3,670
Total current assets	93,308		(1,755)		91,553
Property and equipment, net	10,208		70		10,278
Operating lease right-of-use assets	9,232		(270)		8,962
Total assets	117,184		(1,955)		115,229
Liabilities and Stockholders’ Equity
Accrued liabilities	20,099		437		20,536
Deferred revenue	1,309		(47)		1,262
Operating lease liabilities, current portion	5,052		(211)		4,841
Total current liabilities	28,549		179		28,728
Operating lease liabilities, noncurrent portion	3,990		(59)		3,931
Total liabilities	67,461		120		67,581
Additional paid-in capital	261,231		441		261,672
Accumulated other comprehensive income	2		25		27
Accumulated deficit	(211,534)		(2,541)		(214,075)
Total stockholders’ equity	49,723		(2,075)		47,648
Total liabilities and stockholders’ equity	117,184		(1,955)		115,229

Revised Consolidated Statements of Operations


	Three months ended March 31, 2019
	As Reported		Adjustment		As Revised
Revenue	$	47,214	$	1,120	$	48,334
Cost of revenue	11,730		43		11,773
Gross profit	35,484		1,077		36,561
Research and development	6,756		(57)		6,699
Selling, general and administrative	36,705		1,361		38,066
Total operating expenses	43,461		1,304		44,765
Loss from operations	(7,977)		(227)		(8,204)
Other income, net	379		(4)		375
Loss before income taxes	(8,007)		(231)		(8,238)
Net loss	(8,019)		(231)		(8,250)
Net loss per common share, basic and diluted	(0.33)		(0.01)		(0.34)

Revised Consolidated Statements of Comprehensive Loss


	Three months ended March 31, 2019
	As Reported		Adjustment		As Revised
Net loss	$	(8,019)	$	(231)	$	(8,250)
Comprehensive loss	(7,976)		(231)		(8,207)

Revised Consolidated Statements of Cash Flows


	Three months ended March 31, 2019
	As Reported		Adjustment		As Revised
Cash flows from operating activities
Net loss	$	(8,019)	$	(231)	$	(8,250)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	4,415		441		4,856
Provision for doubtful accounts and contractual allowances	4,709		702		5,411
Changes in operating assets and liabilities:
Accounts receivable	(10,984)		(1,408)		(12,392)
Prepaid expenses and other current assets	(169)		140		(29)
Accrued liabilities	(6,380)		319		(6,061)
Deferred revenue	66		(27)		39
Net cash used in operating activities	(17,099)		(64)		(17,163)
Cash flows from investing activities
Purchases of property and equipment	(1,635)		(70)		(1,705)
Net cash provided by investing activities	26,449		(70)		26,379
Net increase in cash, cash equivalents, and restricted cash	8,212		(134)		8,078
Cash and cash equivalents end of period	28,235		(134)		28,101

Revised Consolidated Statements of Shareholder's Equity


	Three months ended March 31, 2019
	As Reported		Adjustment		As Revised
Stock-based compensation expense	$	4,415	$	441	$	4,856
Additional-paid-in-capital ending balance	261,231		441		261,672
Accumulated other comprehensive loss beginning balance	(41)		25		(16)
Accumulated other comprehensive loss ending balance	2		25		27
Accumulated deficit beginning balance	(203,515)		(2,310)		(205,825)
Net loss	(8,019)		(231)		(8,250)
Accumulated deficit ending balance	(211,534)		(2,541)		(214,075)
Total stockholders' equity	49,723		(2,075)		47,648