Restatement of Previously Issued Financial Statements

6 Months Ended

Jun. 30, 2025

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

As previously disclosed in Note 2—Restatement of Previously Issued Financial Statements to the Company’s consolidated financial statements as of and for the year ended December 31, 2024, management identified a material error in the previously reported financial statements related to its convertible notes issued in December 2021 and due in December 2026 (“2026 Notes”). The conversion option embedded within the 2026 Notes was incorrectly deemed to be eligible for a scope exception from the bifurcation requirements of ASC 815-15 and therefore required bifurcation as a derivative (“2026 Notes Conversion Option”). The 2026 Notes include certain adjustments to the conversion rate that violate the “fixed-for-fixed” criteria described in Accounting Standards Codification (“ASC”) 815-40. As a result, the prior period consolidated financial statements have been restated to reflect the issuance of the 2026 Notes Conversion Option at fair value as of December 7, 2021 and the subsequent remeasurement to fair value at each reporting date. Changes in the fair value of the 2026 Notes Conversion Option are recorded in the consolidated statements of operations. Bifurcation of the 2026 Notes Conversion Option from its host results in a discount to the 2026 Notes par value. The amortization of the discount to the par value of the 2026 Notes is recorded in the consolidated statements of operations as non-cash interest expense using the effective interest rate method.

The effect of the correction noted above on the Company’s consolidated statement of operations for the three and the six months ended June 30, 2024 was as follows:


	Three Months Ended June 30, 2024			Six Months Ended June 30, 2024
Unaudited consolidated statements of operations		As reported		Adjustment		Restated		As reported		Adjustment		Restated
Revenues		$	39,783	$	—	$	39,783	$	72,904	$	—	$	72,904
Cost of revenues		28,720		—		28,720		54,855		—		54,855
Gross margin		11,063		—		11,063		18,049		—		18,049
Operating expenses:
Selling, general and administrative		23,364		—		23,364		40,312		—		40,312
Research and development		3,565		—		3,565		4,709		—		4,709
Restructuring charges		457		—		457		1,317		—		1,317
Transaction expenses		347		—		347		1,450		—		1,450
Goodwill impairment		—		—		—		85,000		—		85,000
Operating loss		(16,670)		—		(16,670)		(114,739)		—		(114,739)
Interest expense		3,551		2,901		6,452		7,106		5,731		12,837
Net increase in fair value of derivatives		(7,882)		(199)		(8,081)		16,110		(384)		15,726

Other income		(617)		—		(617)		(1,072)		—		(1,072)
Loss before taxes:		(11,722)		(2,702)		(14,424)		(136,883)		(5,347)		(142,230)
Income tax benefit		15		—		15		1		—		1
Net loss		$	(11,737)	$	(2,702)	$	(14,439)	$	(136,884)	$	(5,347)	$	(142,231)

The effect of the correction noted above on the Company’s consolidated statement of cash flows for the six months ended June 30, 2024 was as follows:


	Six Months Ended June 30, 2024
Unaudited consolidated statement of cash flows		As reported		Adjustment		Restated
Net loss		$	(136,884)	$	(5,347)	$	(142,231)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		5,346		—		5,346
Amortization of debt issuance costs and discount		1,012		5,731		6,743
Equity-based compensation expense		10,906		—		10,906
Goodwill impairment		85,000		—		85,000

Non-cash lease expense		363		—		363
Provision for doubtful accounts		176		—		176
Deferred income tax benefit		(37)		—		(37)

Net increase in fair value of derivatives		16,110		(384)		15,726

Changes in assets and liabilities:
Increase in accounts receivable		(6,232)		—		(6,232)
Decrease in contract assets		3,781		—		3,781
Decrease in prepaid expenses and other assets		1,243		—		1,243
Decrease in accounts payable		(5,047)		—		(5,047)
Increase in accrued liabilities		1,652		—		1,652
Increase in contract liabilities		1,469		—		1,469

Increase in other liabilities		(275)		—		(275)
Net cash used in operating activities		(21,417)		—		(21,417)
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired		13,935		—		13,935
Purchases of property and equipment		(167)		—		(167)

Capitalized software development costs		(3,225)		—		(3,225)
Net cash provided by investing activities		10,543		—		10,543
Cash flows from financing activities:



Proceeds from issuance of shares for exercised RDO and PIPE warrants		53,809		—		53,809





Repayment of short-term borrowings		(812)		—		(812)

Issuance of common stock upon ESPP purchase		607		—		607
Proceeds from exercise of options		119		—		119
Payments of tax withholding from the issuance of common stock		(3,140)		—		(3,140)





Net cash provided by financing activities		50,583		—		50,583
Effect of foreign currency rate changes on cash and cash equivalents		—		—		—
Net increase in cash and cash equivalents		39,709		—		39,709
Cash and cash equivalents at the beginning of the period		32,557		—		32,557
Cash and cash equivalents at the end of the period		$	72,266	$	—	$	72,266