Restatement of Previously Issued Financial Statements

9 Months Ended

Jun. 29, 2024

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

On November 18, 2024, the Audit Committee of the Board of Directors of the Company, after discussions with the Company’s management, determined that the Company’s unaudited condensed consolidated financial statements included in the Original Form 10-Q should no longer be relied upon.

This Note 3 discloses the nature of the restatement adjustments and discloses the cumulative effects of these adjustments on the unaudited condensed consolidated balance sheets, statements of operations, statements of changes in equity (deficit), and statements of cash flows as of and for the three and nine months ended June 29, 2024 included in the Original Form 10-Q. The unaudited condensed consolidated statements of comprehensive loss for the three and nine months ended June 29, 2024 have also been restated for the correction to net loss, net loss attributable to noncontrolling interests, and net loss attributable to common stockholders.

Description of Restatement Adjustments

The restatement is primarily related to the Company’s identification, during fiscal year 2024, of:

•goods and services, primarily relating to specific milestone achievements, being expensed prior to the time that the corresponding milestones were achieved. This resulted in the acceleration of the recognition of cost of revenue. Given that the Company recognizes revenue on a percentage of completion basis, this resulted in the acceleration of recognition of revenue.

•errors in the Company’s revenue recognition related to cost overruns on certain deployments that will not be billable, which additionally impacted System revenue.

•a classification error within equity.

The effects of the restatement, including the related income tax impacts are reflected in the impacted tables and footnotes throughout these unaudited condensed consolidated financial statements in this Form 10-Q/A. The restatement adjustments and their impacts on the previously issued unaudited condensed consolidated financial statements included in the Original Form 10-Q are described below.

Unaudited Condensed Consolidated Financial Statements - Restatement Reconciliation Tables

In light of the foregoing, in accordance with ASC 250, Accounting Changes and Error Corrections, the Company is restating the previously issued unaudited condensed consolidated financial statements as of and for the three and nine months ended June 29, 2024, to reflect the effects of the restatements adjustments, and to make certain corresponding disclosures. In the following tables, the Company has presented a reconciliation of its unaudited condensed consolidated balance sheets, statements of operations, statements of changes in equity (deficit), and statements of cash flows as previously reported for the three and nine months ended June 29, 2024, to the restated amounts. Financial statement line items and subtotals that were not impacted by the restatement adjustments have been omitted for enhanced clarity.

Summary of Restatement - Unaudited Condensed Consolidated Balance Sheets (in thousands):

	June 29, 2024
	As Reported		Adjustment		As Restated
Assets
Unbilled accounts receivable	$	160,688	$	(58,050)	$	102,638
Total current assets	1,371,317		(58,050)		1,313,267
Total assets	$	1,558,442	$	(58,050)	$	1,500,392
Liabilities and Equity
Accounts payable	$	156,286	$	(28,497)	$	127,789
Deferred revenue	714,641		2,950		717,591
Total current liabilities	1,048,093		(25,547)		1,022,546
Total liabilities	1,179,147		(25,547)		1,153,600
Additional paid-in capital	1,742,697		(216,828)		1,525,869
Accumulated deficit	(1,321,431)		(5,330)		(1,326,761)
Total stockholders' equity	418,695		(222,158)		196,537
Noncontrolling interest	(39,400)		189,655		150,255
Total equity	379,295		(32,503)		346,792
Total liabilities and equity	$	1,558,442	$	(58,050)	$	1,500,392

Summary of Restatement - Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share information):

	For the Three Months Ended June 29, 2024						For the Nine Months Ended June 29, 2024
	As Reported		Adjustment		As Restated		As Reported		Adjustment		As Restated
Revenue
Systems	$	472,119	$	(21,524)	$	450,595	$	1,229,993	$	(61,000)	$	1,168,993
Total revenue	491,862		(21,524)		470,338		1,284,613		(61,000)		1,223,613
Cost of revenue
Systems	407,852		(9,091)		398,761		1,053,407		(28,575)		1,024,832
Total cost of revenue	424,456		(9,091)		415,365		1,102,939		(28,575)		1,074,364
Gross profit	67,406		(12,433)		54,973		181,674		(32,425)		149,249
Operating loss	(25,187)		(12,433)		(37,620)		(95,188)		(32,425)		(127,613)
Loss before income tax and equity method investment	(13,572)		(12,433)		(26,005)		(67,562)		(32,425)		(99,987)
Income tax expense	(95)		(87)		(182)		(24)		(78)		(102)
Net loss	(14,204)		(12,520)		(26,724)		(68,123)		(32,503)		(100,626)
Net loss attributable to noncontrolling interests	(11,716)		(10,327)		(22,043)		(57,127)		(27,173)		(84,300)
Net loss attributable to common stockholders	$	(2,488)	$	(2,193)	$	(4,681)	$	(10,996)	$	(5,330)	$	(16,326)
Loss per share of Class A Common Stock:
Basic and Diluted	$	(0.02)	$	(0.03)	$	(0.05)	$	(0.12)	$	(0.06)	$	(0.18)

Summary of Restatement - Unaudited Condensed Consolidated Statements of Changes in Equity (Deficit) (in thousands):

	Three Months Ended June 29, 2024
	As Reported								Adjustment								As Restated
	Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)		Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)		Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)
Balance at March 30, 2024	$	1,738,317	$	(1,318,943)	$	(3,435)	$	413,626	(216,828)		(3,137)		199,982		(19,983)		$	1,521,489	$	(1,322,080)	$	196,547	$	393,643
Net loss	—		(2,488)		(11,716)		(14,204)		—		(2,193)		(10,327)		(12,520)		—		(4,681)		(22,043)		(26,724)
Balance at June 29, 2024	$	1,742,697	$	(1,321,431)	$	(39,400)	$	379,295	$	(216,828)	$	(5,330)	$	189,655	$	(32,503)	$	1,525,869	$	(1,326,761)	$	150,255	$	346,792

	Nine Months Ended June 29, 2024
	As Reported								Adjustment								As Restated
	Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)		Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)		Additional Paid-in Capital		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)
Net loss	—		(10,996)		(57,127)		(68,123)		—		(5,330)		(27,173)		(32,503)		—		(16,326)		(84,300)		(100,626)
Exercise of warrants	216,828		—		—		158,705		(216,828)		—		216,828		—		—		—		216,828		158,705
Balance at June 29, 2024	$	1,742,697	$	(1,321,431)	$	(39,400)	$	379,295	$	(216,828)	$	(5,330)	$	189,655	$	(32,503)	$	1,525,869	$	(1,326,761)	$	150,255	$	346,792

Summary of Restatement - Unaudited Condensed Consolidated Statements of Cash Flows (in thousands):

	For the Nine Months Ended June 29, 2024
	As Reported		Adjustment		As Restated
Cash flows from operating activities
Net loss	$	(68,123)	$	(32,503)	$	(100,626)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(55,211)		58,050		2,839
Accounts payable	46,368		(28,497)		17,871
Deferred revenue	9,059		2,950		12,009