Restatement of Previously Issued Financial Statements

12 Months Ended

Dec. 31, 2021

Restatement of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

21. Restatement of Previously Issued Financial Statements

The Company concluded it should restate its previously issued financial statements by amending its Annual Report on Form 10-K, filed with the SEC on March 16, 2022 (the “Original Report”), to update the Company’s assessment of its ability to continue as a going concern as of such filing date of the year-end financial statements for the period ending December 31, 2021. This restatement resulted in a restatement of Note 2 (for the going concern assessment), Note 11 (to reclassify the Securitization Facility from long-term to current) and Note 15 (to update the carrying amount and fair value of long-term debt) to the Consolidated Financial Statements for the year ended December 31, 2021 and the restated of consolidated balance sheet as at December 31, 2021. There was no impact of the restatement on our consolidated balance sheets as of December 31, 2020, consolidated statements of operations for the years ended December 31, 2021, 2020, and 2019, consolidated statements of comprehensive loss for the years ended December 31, 2021, 2020, and 2019, consolidated statements of stockholders’ deficit for the years ended December 31, 2021, 2020, and 2019 and consolidated statements of cash flows for the years ended December 31, 2021, 2020, and 2019 or to such statements in any interim reports.

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)

	As of December 31, 2021
	As Previously		Restatement
	Reported		Adjustment		As Restated
Assets
Current assets
Cash and cash equivalents	$	20,775	$	—	$	20,775
Restricted cash		27,285		—		27,285
Accounts receivable, net of allowance for doubtful accounts of $6,049		184,102		—		184,102
Related party receivables and prepaid expenses		715		—		715
Inventories, net		15,215		—		15,215
Prepaid expenses and other current assets		31,799		—		31,799
Total current assets		279,891		—		279,891
Property, plant and equipment, net of accumulated depreciation of $196,683		73,449		—		73,449
Operating lease right-of-use assets, net		53,937		—		53,937
Goodwill		358,323		—		358,323
Intangible assets, net		244,539		—		244,539
Deferred income tax assets		2,109		—		2,109
Other noncurrent assets		24,775		—		24,775
Total assets	$	1,037,023	$	—	$	1,037,023
Liabilities and Stockholders’ Equity (Deficit)
Liabilities
Current liabilities
Accounts payable	$	61,744	$	—	$	61,744
Related party payables		1,484		—		1,484
Income tax payable		3,551		—		3,551
Accrued liabilities		113,519		—		113,519
Accrued compensation and benefits		60,860		—		60,860
Accrued interest		10,075		—		10,075
Customer deposits		17,707		—		17,707
Deferred revenue		16,617		—		16,617
Obligation for claim payment		46,902		—		46,902
Current portion of finance lease liabilities		6,683		—		6,683
Current portion of operating lease liabilities		15,923		—		15,923
Current portion of long-term debts		144,828		91,947		236,775
Total current liabilities		499,893		91,947		591,840
Long-term debt, net of current maturities		1,104,399		(91,947)		1,012,452
Finance lease liabilities, net of current portion		9,156		—		9,156
Pension liabilities, net		28,383		—		28,383
Deferred income tax liabilities		11,594		—		11,594
Long-term income tax liabilities		3,201		—		3,201
Operating lease liabilities, net of current portion		41,170		—		41,170
Other long-term liabilities		5,999		—		5,999
Total liabilities		1,703,795		—		1,703,795
Commitments and Contingencies (Note 14)
Stockholders’ equity (deficit)
Common Stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 267,646,667 shares issued and 265,194,961 shares outstanding at December 31, 2021		37		—		37
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 2,778,111 shares issued and outstanding at December 31, 2021		1		—		1
Additional paid in capital		838,853		—		838,853
Less: Common Stock held in treasury, at cost; 2,451,706 shares at December 31, 2021		(10,949)		—		(10,949)
Equity-based compensation		56,123		—		56,123
Accumulated deficit		(1,532,428)		—		(1,532,428)
Accumulated other comprehensive loss:		—
Foreign currency translation adjustment		(7,463)		—		(7,463)
Unrealized pension actuarial losses, net of tax		(10,946)		—		(10,946)
Total accumulated other comprehensive loss		(18,409)		—		(18,409)
Total stockholders’ deficit		(666,772)		—		(666,772)
Total liabilities and stockholders’ deficit	$	1,037,023	$	—	$	1,037,023