REVISIONS (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Changes and Error Corrections [Abstract]

A reconciliation of the originally reported amounts to the restated amounts for the adjustments noted above for each of the affected periods is presented below.

Consolidated Balance Sheet as of September 30, 2018:



(In thousands)	As Originally Reported		Adjustments			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	40,663	$	—		$	40,663
Short term investments	55,480		—			55,480
Trade accounts receivable, net	4,080		59			4,139
Inventories, net	6,037		—			6,037
Prepaid expenses and other current assets	627		—			627
Total current assets	106,887		59			106,946
Property and equipment, net	5,842		—			5,842
Other assets*	385		—			385
Total assets	$	113,114	$	59		$	113,173

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,348	$	—		$	2,348
Accrued expenses and other current liabilities	19,324		764			20,088
Total current liabilities	21,672		764			22,436
Related party note payable	140		—			140
Total liabilities	21,812		764			22,576
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value; 75,000,000 shares authorized; 33,763,019 issued and 33,620,444 outstanding	33		—			33
Additional paid-in capital	51,798		—			51,798
Retained earnings	39,471		(705		)	38,766
Total stockholders’ equity	91,302		(705		)	90,597
Total liabilities and stockholders’ equity	$	113,114	$	59		$	113,173

* The Company has condensed the presentation of amounts presented in the balance sheet to conform to presentation guidelines.

Consolidated Statement of Operations for the three months ended September 30, 2018:



(In thousands)	As Originally Reported			Adjustments			As Restated
Sales	$	3,672		$	—		$	3,672
Cost of sales	1,151			—			1,151
Gross profit	2,521			—			2,521
Other costs and expenses:
Research and development	613			—			613
Professional services	628			—			628
Salaries and related costs	2,119			51			2,170
Selling, general and administrative	1,957			(59		)	1,898
Total other costs and expenses	5,317			(8		)	5,309
Loss from operations	(2,796		)	8			(2,788		)
Interest income (expense), net	105			—			105
Other losses	(155		)	(713		)	(868		)
Total other losses, net	(50		)	(713		)	(763		)
Loss from continuing operations before income taxes	(2,846		)	(705		)	(3,551		)
Income tax benefit	(2,408		)	—			(2,408		)
Net loss from continuing operations	(438		)	(705		)	(1,143		)
Income from discontinued operations, net of tax	540			—			540
Gain on sale of the Core Business, net of tax	69,072			—			69,072
Total income from discontinued operations, net of tax	69,612			—			69,612
Net income (loss)	$	69,174		$	(705	)	$	68,469

Loss per share from continuing operations
Basic and Diluted	$	(0.01	)	$	(0.02	)	$	(0.03	)

Income per share from discontinued operations
Basic	2.09			—			2.09
Diluted	1.99			—			1.99

Income (loss) per share from all operations
Basic	2.08			(0.02		)	2.06
Diluted	1.98			(0.02		)	1.96

Weighted average number of shares outstanding basic	33,275			33,275			33,275
Weighted average number of shares outstanding diluted	34,934			34,934			34,934

Consolidated Statement of Operations for the nine months ended September 30, 2018:



(In thousands)	As Originally Reported			Adjustments			As Restated
Sales	$	10,760		$	—		$	10,760
Cost of sales	3,490			—			3,490
Gross profit	7,270			—			7,270
Other costs and expenses:
Research and development	1,890			—			1,890
Professional services	1,815			—			1,815
Salaries and related costs	5,734			51			5,785
Selling, general and administrative	6,280			(59		)	6,221
Total other costs and expenses	15,719			(8		)	15,711
Loss from operations	(8,449		)	8			(8,441		)
Interest income (expense), net	33			—			33
Other losses	(155		)	(713		)	(868		)
Change in fair value of derivative liabilities	20			—			20
Total other losses, net	(102		)	(713		)	(815		)
Loss from continuing operations before income taxes	(8,551		)	(705		)	(9,256		)
Income tax benefit	(2,384		)	—			(2,384		)
Net loss from continuing operations	(6,167		)	(705		)	(6,872		)
Income from discontinued operations, net of tax	5,062			—			5,062
Gain on sale of the Core Business, net of tax	69,072			—			69,072
Total income from discontinued operations, net of tax	74,134			—			74,134
Net income (loss)	$	67,967		$	(705	)	$	67,262

Loss per share from continuing operations
Basic and Diluted	$	(0.19	)	$	(0.02	)	$	(0.21	)

Income per share from discontinued operations
Basic	2.25			—			2.25
Diluted	2.19			—			2.19

Income (loss) per share from all operations
Basic	2.06			(0.02		)	2.04
Diluted	2.00			(0.02		)	1.98

Weighted average number of shares outstanding basic	33,014			33,014			33,014
Weighted average number of shares outstanding diluted	33,952			33,952			33,952

Consolidated Balance Sheet as of December 31, 2018:



(In thousands)	As Originally Reported		Adjustments			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	16,466	$	130		$	16,596
Short term investments	61,678		—			61,678
Trade accounts receivable, net**	3,656		65			3,721
Other receivables**	1,359		—			1,359
Inventories, net**	3,061		85			3,146
Prepaid expenses and other current assets**	3,297		38			3,335
Total current assets	89,517		318			89,835
Property and equipment, net	5,788		—			5,788
Other assets*	305		—			305
Total assets	$	95,610	$	318		$	95,928

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,423	$	—		$	1,423
Accrued expenses and other current liabilities*	6,279		909			7,188
Total current liabilities	7,702		909			8,611
Related party note payable	140		—			140
Total liabilities	7,842		909			8,751
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value; 75,000,000 shares authorized; 33,847,100 issued and 33,704,525 outstanding	34		—			34
Additional paid-in capital	52,221		699			52,920
Retained earnings	35,513		(1,290		)	34,223
Total stockholders’ equity	87,768		(591		)	87,177
Total liabilities and stockholders’ equity	$	95,610	$	318		$	95,928

* The Company has condensed the presentation of amounts presented in the balance sheet to conform to presentation guidelines.

** The Company has reclassified balances to conform to current presentation.

Consolidated Statement of Operations for the year ended December 31, 2018:



(In thousands)	As Originally Reported			Adjustments			As Restated
Sales	$	16,686		$	(81	)	$	16,605
Cost of sales	5,893			(114		)	5,779
Gross profit	10,793			33			10,826
Other costs and expenses:
Research and development	2,469			80			2,549
Professional services	3,072			61			3,133
Salaries and related costs	8,673			599			9,272
Selling, general and administrative	9,438			(31		)	9,407
Severance and related expense	741			—			741
Total other costs and expenses	24,393			709			25,102
Loss from operations	(13,600		)	(676		)	(14,276		)
Interest income	616			—			616
Interest expense	(104		)	—			(104		)
Other losses	(203		)	(744		)	(947		)
Change in fair value of derivative liabilities	20			—			20
Total other income (losses), net	329			(744		)	(415		)
Loss from continuing operations before income taxes	(13,271		)	(1,420		)	(14,691		)
Income tax benefit	(3,777		)	(130		)	(3,907		)
Net loss from continuing operations	(9,494		)	(1,290		)	(10,784		)
Income from discontinued operations, net of tax	5,099			—			5,099
Gain on sale of the Core Business, net of tax	68,404			—			68,404
Total income from discontinued operations, net of tax	73,503			—			73,503
Net income (loss)	$	64,009		$	(1,290	)	$	62,719

Loss per share from continuing operations
Basic and Diluted	$	(0.29	)	$	(0.04	)	$	(0.32	)

Income per share from discontinued operations
Basic	2.21			—			2.21
Diluted	2.14			—			2.14

Income (loss) per share from all operations
Basic	1.93			(0.04		)	1.89
Diluted	1.86			(0.04		)	1.83

Weighted average number of shares outstanding basic	33,185			33,185			33,185
Weighted average number of shares outstanding diluted	34,366			34,366			34,366

Consolidated Balance Sheet as of March 31, 2019:



(In thousands)	As Originally Reported		Adjustments			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	32,415	$	—		$	32,415
Short term investments	40,885		—			40,885
Trade accounts receivable, net**	4,006		38			4,044
Other receivables**	925		—			925
Inventories, net**	3,013		—			3,013
Prepaid expenses and other current assets**	3,996		38			4,034
Total current assets	85,240		76			85,316
Property and equipment, net**	6,015		—			6,015
Operating lease right-of-use assets**	178		—			178
Other assets*	270		77			347
Total assets	$	91,703	$	153		$	91,856

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,504	$	—		$	1,504
Accrued expenses and other current liabilities*	5,868		1,141			7,009
Current portion of operating lease liabilities**	103		—			103
Total current liabilities	7,475		1,141			8,616
Related party note payable	140		—			140
Long-term portion of operating lease liabilities	75		—			75
Other long-term liabilities	—		194			194
Total liabilities	7,690		1,335			9,025
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value; 75,000,000 shares authorized; 34,033,255 issued and 33,891,255 outstanding	34		—			34
Additional paid-in capital	53,147		1,035			54,182
Retained earnings	30,832		(2,217		)	28,615
Total stockholders’ equity	84,013		(1,182		)	82,831
Total liabilities and stockholders’ equity	$	91,703	$	153		$	91,856

* The Company has condensed the presentation of amounts presented in the balance sheet to conform to presentation guidelines.

** The Company has reclassified balances to conform to current presentation.

Consolidated Statement of Operations for the three months ended March 31, 2019:



(In thousands)	As Originally Reported			Adjustments			As Restated
Sales	$	5,823		$	(194	)	$	5,629
Cost of sales	2,103			(37		)	2,066
Gross profit	3,720			(157		)	3,563
Other costs and expenses:
Research and development	810			(80		)	730
Professional services	1,791			327			2,118
Salaries and related costs	3,221			267			3,488
Selling, general and administrative	3,101			(144		)	2,957
Total other costs and expenses	8,923			370			9,293
Loss from operations	(5,203		)	(527		)	(5,730		)
Interest income	423			—			423
Other losses	(25		)	(270		)	(295		)
Total other losses, net	398			(270		)	128
Loss from continuing operations before income taxes	(4,805		)	(797		)	(5,602		)
Income tax (benefit) expense	(124		)	130			6
Net loss	$	(4,681	)	$	(927	)	$	(5,608	)

Loss per share
Basic and Diluted	$	(0.14	)	$	(0.03	)	$	(0.17	)

Weighted average number of shares outstanding basic and diluted	33,343			33,343			33,343

For the three months ended June 30, 2019:



(In thousands)	As Reported			Adjustments			As Revised
Balance Sheet
Trade accounts receivable, net	$	5,233		$	59		$	5,292		[3]
Accrued and other liabilities	6,149			1,081			7,230			[1]
Retained earnings	25,342			(1,022		)	24,320			[1],[3]

Statement of Operations
Sales	$	6,568		$	81		$	6,649		[3]
Cost of sales	2,096			(121		)	1,975			[2],[3]
Professional services	1,633			28			1,661			[2]
Salaries and related costs	3,333			177			3,510			[2]
Selling, general and administrative	3,083			(46		)	3,037			[2]

Loss per share - all	$	(0.13	)	$	—		$	(0.13	)	[2],[3]

Gross profit	4,472			202			4,674			[2]
Gross profit %	68.1		%	2.2		%	70.3		%	[2]

[1] Adjustments relate to payroll tax corrections
[2] Adjustments relate to intercompany gross profit
[3] Other corrections primarily related to balance sheet cutoff

For the six months ended June 30, 2019:



(In thousands)	As Reported			Adjustments			As Revised
Balance Sheet
Trade accounts receivable, net	$	5,233		$	59		$	5,292		[3]
Accrued and other liabilities	6,149			1,081			7,230			[1]
Retained earnings	25,342			(1,022		)	24,320			[1],[3]

Statement of Operations
Sales	$	12,197		$	81		$	12,278		[3]
Cost of sales	4,199			(158		)	4,041			[2],[3]
Research and development	1,698			(80		)	1,618			[2],[3]
Professional services	3,760			19			3,779			[2],[3]
Salaries and related costs	6,671			327			6,998			[1],[2]
Selling, general and administrative	6,107			(113		)	5,994			[2],[3]
Other income (losses), net	(225		)	(270		)	(495		)	[1],[3]

Loss per share - all	$	(0.29	)	$	(0.01	)	$	(0.30	)	[1],[3]

Gross profit	7,998			239			8,237			[2],[3]
Gross profit %	65.6		%	1.5		%	67.1		%	[2],[3]

[1] Adjustments relate to payroll tax corrections
[2] Adjustments relate to intercompany gross profit
[3] Other corrections primarily related to balance sheet cutoff

For the three months ended September 30, 2019:



(In thousands)	As Reported			Adjustments			As Revised
Balance Sheet
Accrued expenses and other liabilities	$	7,285		$	1,081		$	8,366		[1]
Retained earnings	21,031			(1,081		)	19,950			[1]

Statement of Operations
Cost of sales	$	2,558		$	(277	)	$	2,281		[2]
Research and development	936			80			1,016			[2]
Professional services	1,996			43			2,039			[2]
Salaries and related costs	3,020			139			3,159			[2]
Selling, general and administrative	3,762			74			3,836			[2],[3]

Loss per share - all	$	(0.13	)	$	—		$	(0.13	)	[3]

Gross profit	5,017			277			5,294			[2]
Gross profit %	66.2		%	3.7		%	69.9		%	[2]

[1] Adjustments relate to payroll tax corrections
[2] Adjustments relate to intercompany gross profit
[3] Other corrections primarily related to balance sheet cutoff

For the nine months ended September 30, 2019:



(In thousands)	As Reported			Adjustments			As Revised
Balance Sheet
Accrued expenses and other liabilities	$	7,285		$	1,081		$	8,366		[1]
Retained earnings	21,031			(1,081		)	19,950			[1]

Statement of Operations
Sales	$	19,772		$	81		$	19,853		[3]
Cost of sales	6,757			(435		)	6,322			[2],[3]
Research and development	2,634			—			2,634			[2],[3]
Professional services	5,756			62			5,818			[2],[3]
Salaries and related costs	9,691			466			10,157			[1],[2]
Selling, general and administrative	9,869			(39		)	9,830			[2],[3]
Other income (losses), net	5			(270		)	(265		)	[1],[3]

Loss per share - all	$	(0.41	)	$	(0.01	)	$	(0.42	)	[1], [3]

Gross profit	13,015			516			13,531			[2],[3]
Gross profit %	65.8		%	2.4		%	68.2		%	[2],[3]

[1] Adjustments relate to payroll tax corrections
[2] Adjustments relate to intercompany gross profit
[3] Other corrections primarily related to balance sheet cutoff