Immaterial Correction of an Error

12 Months Ended

Dec. 31, 2017

Immaterial Correction of an Error

Immaterial Correction of an Error

NOTE 3. IMMATERIAL CORRECTION OF AN ERROR

The company recorded a $3.0 million liability and a reduction to additional paid-in capital on our balance sheet as of December 31, 2017. This amount represents a payable on or prior to the 18-month anniversary of the consummation of the Offering in, at the Company’s option, cash, shares of Class A Common Stock (with such shares to be valued based on the greater of the initial public offering price of the Class A Common Stock in the Offering and a 30-day volume-weighted average price) or a combination thereof. The Company incurred this liability in conjunction with the offering completed on August 16, 2017. The correction of this misstatement affected the previously reported third quarter financials. It had no impact on reported net loss or total assets; however it would have increased liabilities by $3.0 million and decreased equity by $3.0 million at September 30, 2017. The net impact of the correction of this out of period adjustment is to increase other long-term liabilities from $0.8 million to $3.8 million and to reduce additional paid-in capital from $113.1 million to $110.1 million. We analyzed the out of period adjustments under SEC staff guidance and determined that the impact was not material to previously issued financial statements.