18. Restatement of Previously Issued Financial Statements

Subsequent to the issuance of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, the Company and the Audit Committee of the Board of Directors concluded that the Company should restate its balance sheet as of December 31, 2014, and its statements of operations, comprehensive loss, cash flows and changes in stockholders’ equity (deficit) for the year ended December 31, 2014 to correct the following errors:

In the second quarter of 2014, the Company recorded an income tax benefit by reducing a portion of its valuation allowance against its gross deferred tax assets. In determining the amount of the valuation allowance release, the Company considered anticipated 2015 tax losses which would generate a refund of a portion of federal income taxes paid in 2014. The Company has now determined that, as a matter of accounting principle, the net deferred tax asset recorded on its balance sheet was overstated and the income tax provision on its statement of operations was understated as of and for the periods ending June 30, 2014, September 30, 2014 and December 31, 2014. The Company’s cash position and operating expenses were not affected. The restatement had no effect on amounts reported in periods prior to the quarter ended June 30, 2014.

The following tables summarize the effect of the restatement by major financial statement line as of June 30, 2014 and for the three and six months ended June 30, 2014, as of September 30, 2014 and for the three and nine months ended September 30, 2014, and as of December 31, 2014 and for the three months and year ended December 31, 2014:

Balance Sheets

	June 30, 2014						September 30, 2014						December 31, 2014
	As Reported			As Restated			As Reported			As Restated			As Reported			As Restated
	(unaudited)						(unaudited)
Deferred tax assets	$	837		$	—		$	1,069		$	49		$	293		$	50
Total current assets	$	442,155		$	441,318		$	462,644		$	461,624		$	473,625		$	473,382
Deferred tax assets, non- current	$	19,635		$	—		$	26,187		$	4,404		$	22,808		$	4,467
Total assets	$	478,126		$	457,654		$	490,486		$	467,683		$	498,370		$	479,786
Income taxes payable	$	29,540		$	29,559		$	7,785		$	7,785		$	—		$	—
Total current liabilities	$	35,362		$	35,381		$	24,039		$	24,039		$	19,831		$	19,831
Total liabilities	$	318,695		$	318,714		$	314,591		$	314,591		$	351,249		$	351,249
Accumulated deficit	$	(256,231	)	$	(276,722	)	$	(245,367	)	$	(268,170	)	$	(281,238	)	$	(299,822	)
Total stockholders’ equity	$	159,431		$	138,940		$	175,895		$	153,092		$	147,121		$	128,537
Total liabilities and stockholders’ equity	$	478,126		$	457,654		$	490,486		$	467,683		$	498,370		$	479,786

Statement of Operations

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	As Reported			As Restated			As Reported			As Restated
	(unaudited)						(unaudited)
Income tax provision	$	10,294		$	30,785		$	10,294		$	30,785
Net loss	$	(52,499	)	$	(72,990	)	$	(73,181	)	$	(93,672	)
Basic loss per common share	$	(1.57	)	$	(2.19	)	$	(2.23	)	$	(2.85	)
Diluted loss per common share	$	(1.57	)	$	(2.19	)	$	(2.23	)	$	(2.85	)

	Three Months Ended September 30, 2014				Nine Months Ended September 30, 2014
	As Reported		As Restated		As Reported			As Restated
	(unaudited)				(unaudited)
Income tax provision	$	2,867	$	5,179	$	13,161		$	35,964
Net income (loss)	$	10,864	$	8,552	$	(62,317	)	$	(85,120	)
Basic earnings (loss) per common share	$	0.32	$	0.26	$	(1.88	)	$	(2.57	)
Diluted earnings (loss) per common share	$	0.31	$	0.25	$	(1.88	)	$	(2.57	)

	Three Months Ended December 31, 2014						Year Ended December 31, 2014
	As Reported			As Restated			As Reported			As Restated
	(unaudited)
Income tax provision	$	4,731		$	512		$	17,892		$	36,476
Net loss	$	(35,871	)	$	(31,652	)	$	(98,188	)	$	(116,772	)
Basic loss per common share	$	(1.06	)	$	(0.94	)	$	(2.95	)	$	(3.51	)
Diluted loss per common share	$	(1.06	)	$	(0.94	)	$	(2.95	)	$	(3.51	)

Statement of Comprehensive Income (Loss)

	Three Months Ended June 30, 2014						Three Months Ended September 30, 2014
	As Reported			As Restated			As Reported		As Restated
	(unaudited)						(unaudited)
Net income (loss)	$	(52,499	)	$	(72,990	)	$	10,864	$	8,552
Comprehensive income (loss)	$	(52,492	)	$	(72,983	)	$	10,874	$	8,562

	Six Months Ended June 30, 2014						Nine Months Ended September 30, 2014						Year Ended December 31, 2014
	As Reported			As Restated			As Reported			As Restated			As Reported			As Restated
	(unaudited)						(unaudited)						(unaudited)
Net loss	$	(73,181	)	$	(93,672	)	$	(62,317	)	$	(85,120	)	$	(98,188	)	$	(116,772	)
Comprehensive loss	$	(73,156	)	$	(93,647	)	$	(62,282	)	$	(85,085	)	$	(98,253	)	$	(116,837	)

Statement of Cash Flows

	Six Months Ended June 30, 2014						Nine Months Ended September 30, 2014						Year Ended December 31, 2014
	As Reported			As Restated			As Reported			As Restated			As Reported			As Restated
	(unaudited)						(unaudited)						(unaudited)
Net loss	$	(73,181	)	$	(93,672	)	$	(62,317	)	$	(85,120	)	$	(98,188	)	$	(116,772	)
Deferred income taxes	$	(19,246	)	$	1,226		$	(24,947	)	$	(2,144	)	$	(18,798	)	$	(214	)
Income taxes payable	$	29,540		$	29,559		$	7,785		$	7,785		$	—		$	—

The restatement did not have any effect on the previously reported amounts of total operating, investing, or financing cash flows in the Company’s statements of cash flows for the six months ended June 30, 2014, the nine months ended September 30, 2014 or the year ended December 31, 2014.

Financial information included in the accompanying financial statements and the notes thereto reflect the effects of the corrections described above.