REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2020

Accounting Changes and Error Corrections [Abstract]

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

6. REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

In connection with the preparation of our consolidated interim financial statements for the quarter ended June 30, 2020, we identified a revision as of December 31, 2019 in the calculation of the tax expense related to the Equity Transaction. The revision resulted in a net loss for tax purposes and created additional deferred tax assets related to these tax losses, as well as a reduction in the income tax expense, all recorded as part of discontinued operations. The recognition of additional deferred tax assets requires an increase to the valuation allowance as at December 31, 2019, consistent with the Company’s position on the future realization of these assets.

In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the revision and determined that the related impact was not material to our results of operations or financial position for any prior annual or interim period, but that correcting the $407 cumulative impact of the revision would be material to our results of operations for the three months ended June 30, 2020. Accordingly, we have corrected the consolidated balance sheets and consolidated statement of operations as of December 31, 2019.

The impact to the consolidated balance sheets and consolidated statements of operations as of December 31, 2019 is as follows:

	As of December 31, 2019
Consolidated Balance Sheets	As Reported			Adjustment			As Revised
Income taxes receivable	$	—		$	360		$	360
Total current assets		20,014			360			20,374
Total assets		28,119			360			28,479
Income taxes payable		543			(47	)		496
Total current liabilities		9,891			(47	)		9,844
Total liabilities		11,684			(47	)		11,637
Accumulated deficit		(7,566	)		407			(7,159	)
Total stockholders’ equity		16,435			407			16,842
Consolidated Statements of Operations
Income tax expense from discontinued operations	$	737		$	(407	)	$	330
Income from discontinued operations, net of income taxes		10,598			407			11,005
Net loss		(1,439	)		407			(1,032	)
Basic and diluted loss from continuing operations		(1.38	)		—			(1.38	)
Basic and diluted income from discontinued operations		1.21			0.05			1.26
Basic and diluted net loss		(0.17	)		0.05			(0.12	)

Subsequent to the December 31, 2019 revision described above, the March 31, 2020 consolidated balance sheet was also revised to reflect an increase in other currents assets of $360 to $16,533, a decrease in other current liabilities of $47 to $8,698, and an increase to stockholders’ equity of $407 to $13,923.

The identified adjustment does not impact any other prior periods.