Restatement of Previously Issued Financial Statements

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

Subsequent to the issuance of the Original Report on August 2, 2023, the Company identified a material accounting error related to the timing of revenue recognition which impacts the Company’s condensed consolidated financial statements as of and for the three and six month periods ended June 30, 2023 ("the Misstatement"). Within this report, the Company has restated all impacted financial information and footnote disclosures impacted by the Misstatement. A description of the error and its impact on the previously issued financial statements is included below. In connection with the restatement, the Company determined that it was appropriate to revise the condensed consolidated balance sheet as of December 31, 2022 and the condensed consolidated statement of cash flows for the six month period ended June 30, 2022, as well as impacted footnote disclosures, in this Form 10-Q/A to correct other unrelated immaterial errors.

Description of revenue restatement adjustments

During the first quarter of 2023, a customer cancelled two COVID-related, non-cancellable product purchase orders (“Cancelled PO’s”) in exchange for a $17.3 million one-time cash payment (the “Payment”), which was received in April 2023. At the time of cancellation, no product units had been delivered under the Cancelled PO’s and the Company had two other purchase orders from the same customer for the same product (“Open PO’s”). The Company originally accounted for the Cancelled PO’s as a single contract and recognized the $17.3 million payment as component of product revenue in the first quarter of 2023.

Subsequent to the issuance of the Original Report, the Company reassessed the accounting treatment of the Payment and concluded that the Cancelled PO’s and Open PO’s represented a combined contract such that the February 2023 transaction should have been analyzed and accounted for as a contract modification, which required the Payment to be deferred and recognized as product units were delivered under the Open PO’s. All Open PO product units were fully delivered to the customer by June 30, 2024.

The correction of the Misstatement affects certain financial statement line items in these condensed consolidated financial statements including but not limited to product revenues, income tax provision, foreign currency translation, deferred revenues, prepaid expenses, deferred taxes and earnings-per-share.

Consolidated Financial Statements - Restatement Reconciliation Tables

The following tables present the impact of the financial statement adjustments on the Company's previously reported condensed consolidated financial statements. The "Previously Reported" amounts in the following tables are amounts derived from the Original Report. The amounts in the columns labeled "Revenue Adjustments" represent the effect of adjustments resulting from the correction of the overstatement of revenues associated with the Payment and related tax impact. The amounts in the columns labeled "Other Adjustments" represent the effect of other adjustments that relate to other unrelated errors in previously filed financial statements that were not material, individually or in the aggregate, to those filed financial statements. The effects of both the restatement for the Revenue Adjustments and the immaterial Other Adjustments have been corrected in all impacted tables and footnotes throughout these condensed consolidated financial statements.


	June 30,
	2023
	As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	603,656		$	—		$	—		$	603,656
Marketable securities held to maturity		—			—			—			—
Accounts receivable, net of reserves of $1,571 and $1,365 at June 30, 2023 and December 31, 2022, respectively		120,304			—			—			120,304
Inventories, net		240,869			—			—			240,869
Prepaid expenses and other current assets		33,754			1,349			—			35,103
Total current assets		998,583			1,349			—			999,932
Noncurrent assets:
Property, plant and equipment, net		202,564			—			—			202,564
Intangible assets, net		351,704			—			6,706			358,410
Goodwill		870,688			—			—			870,688
Deferred tax assets		1,756			—			—			1,756
Operating lease right of use assets		122,044			—			—			122,044
Other noncurrent assets		1,664			—			—			1,664
Total noncurrent assets		1,550,420			—			6,706			1,557,126
Total assets	$	2,549,003			1,349			6,706		$	2,557,058
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	23,787		$	—		$	—		$	23,787
Operating lease liability		2,889			—			—			2,889
Current contingent consideration		16,363			—			—			16,363
Accrued liabilities		45,023			14,762			—			59,785
Convertible Senior Notes, net		285,521			—			—			285,521
Total current liabilities		373,583			14,762			—			388,345
Noncurrent liabilities:								—
Deferred tax liabilities		21,897			262			(119	)		22,040
Noncurrent operating lease liability		134,438			—			—			134,438
Noncurrent contingent consideration		44,277			—			—			44,277
Other noncurrent liabilities		3,882			—			7,217			11,099
Total noncurrent liabilities		204,494			262			7,098			211,854
Total liabilities		578,077			15,024			7,098			600,199
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding		—			—			—			—
Common stock, $0.01 par value; 80,000,000 shares authorized; 55,744,896 shares at June 30, 2023 and 55,557,698 shares at December 31, 2022 issued and outstanding		557			—			—			557
Additional paid-in capital		1,561,393			—			—			1,561,393
Accumulated other comprehensive loss		(37,189	)		(297	)		—			(37,486	)
Accumulated earnings		446,165			(13,378	)		(392	)		432,395
Total stockholders’ equity		1,970,926			(13,675	)		(392	)		1,956,859
Total liabilities and stockholders’ equity	$	2,549,003		$	1,349		$	6,706		$	2,557,058


	December 31,
	2022
	As Previously Reported		Other Adjustments		As Revised
ASSETS
Intangible assets, net	$	353,676	$	6,942	$	360,618
Total noncurrent assets		1,526,540		6,942		1,533,482
Total assets	$	2,524,658	$	6,942	$	2,531,600
LIABILITIES AND STOCKHOLDERS' EQUITY
Other noncurrent liabilities	$	3,814	$	6,942	$	10,756
Total noncurrent liabilities		209,762		6,942		216,704
Total liabilities		613,958		6,942		620,900
Total liabilities and stockholders’ equity	$	2,524,658	$	6,942	$	2,531,600


	Three Months Ended June 30, 2023												Six Months Ended June 30, 2023
	As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated			As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
Revenue:
Products	$	159,133		$	—		$	—		$	159,133		$	341,754		$	(17,280	)	$	—		$	324,474
Royalty and other revenue		36			—			—			36			75			—			—			75
Total revenue		159,169			—			—			159,169			341,829			(17,280	)		—			324,549
Costs and operating expenses:
Cost of product revenue		79,307			—			—			79,307			161,152			—			—			161,152
Research and development		9,706			—			—			9,706			21,860			—			—			21,860
Selling, general and administrative		48,966			—			118			49,084			105,136			—			236			105,372
Contingent consideration		1,791			—			—			1,791			3,026			—			—			3,026
Total costs and operating expenses		139,770			—			118			139,888			291,174			—			236			291,410
Income from operations		19,399			—			(118	)		19,281			50,655			(17,280	)		(236	)		33,139
Other income (expenses):
Investment income		5,964			—			—			5,964			11,450			—			—			11,450
Interest expense		(274	)		—			(137	)		(411	)		(544	)		—			(275	)		(819	)
Amortization of debt issuance costs		(457	)		—			—			(457	)		(914	)		—			—			(914	)
Other expenses		528			—			—			528			605			—			—			605
Other income (expenses), net		5,761			—			(137	)		5,624			10,597			—			(275	)		10,322
Income before income taxes		25,160			—			(255	)		24,905			61,252			(17,280	)		(511	)		43,461
Income tax provision		5,096			82			(59	)		5,119			12,359			(3,902	)		(119	)		8,338
Net income	$	20,064		$	(82	)	$	(196	)	$	19,786		$	48,893		$	(13,378	)	$	(392	)	$	35,123
Earnings per share:
Basic	$	0.36		$	—		$	—		$	0.36		$	0.88		$	(0.24	)	$	(0.01	)	$	0.63
Diluted (Note 12)	$	0.35		$	—		$	—		$	0.35		$	0.86		$	(0.23	)	$	(0.01	)	$	0.62
Weighted average common shares outstanding:
Basic		55,705			—			—			55,705			55,648			—			—			55,648
Diluted (Note 12)		56,858			—			—			56,858			56,932			—			—			56,932

Net income	$	20,064		$	(82	)	$	(196	)	$	19,786		$	48,893		$	(13,378	)	$	(392	)	$	35,123
Other comprehensive income (loss):								—												—
Foreign currency translation adjustment		(6,068	)		(11	)		—			(6,079	)		(2,795	)		(297	)		—			(3,092	)
Comprehensive income	$	13,996		$	(93	)	$	(196	)	$	13,707		$	46,098		$	(13,675	)	$	(392	)	$	32,031


	Accumulated Other Comprehensive Loss											Accumulated Earnings										Total Stockholders' Equity
	As Previously Reported			Revenue Adjustments			Other Adjustments		As Restated			As Previously Reported		Revenue Adjustments			Other Adjustments			As Restated		As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
	$			$			$		$			$		$			$			$		$			$			$			$
Balance at March 31, 2023		(31,121	)		(286	)		—		(31,407	)		426,101		(13,296	)		(196	)		412,609		1,940,492			(13,582	)		(196	)		1,926,714
Net income		—			—			—		—			20,064		(82	)		(196	)		19,786		20,064			(82	)		(196	)		19,786
Translation adjustment		(6,068	)		(11	)		—		(6,079	)		—		—			—			—		(6,068	)		(11	)		—			(6,079	)
Balance at June 30, 2023		(37,189	)		(297	)		—		(37,486	)		446,165		(13,378	)		(392	)		432,395		1,970,926			(13,675	)		(392	)		1,956,859


	Accumulated Other Comprehensive Loss											Accumulated Earnings										Total Stockholders' Equity
	As Previously Reported			Revenue Adjustments			Other Adjustments		As Restated			As Previously Reported		Revenue Adjustments			Other Adjustments			As Restated		As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
	$			$			$		$			$		$			$			$		$			$			$			$
Balance at December 31, 2022		(34,394	)		—			—		(34,394	)		397,272		—			—			397,272		1,910,700			—			—			1,910,700
Net income		—			—			—		—			48,893		(13,378	)		(392	)		35,123		48,893			(13,378	)		(392	)		35,123
Translation adjustment		(2,795	)		(297	)		—		(3,092	)		—		—			—			—		(2,795	)		(297	)		—			(3,092	)
Balance at June 30, 2023		(37,189	)		(297	)		—		(37,486	)		446,165		(13,378	)		(392	)		432,395		1,970,926			(13,675	)		(392	)		1,956,859


	Six Months Ended June 30, 2023
	As Previously Reported			Revenue Adjustments			Other Adjustments			As Restated
Cash flows from operating activities:
Net income	$	48,893		$	(13,378	)	$	(392	)	$	35,123
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		31,237			—			236			31,473
Amortization of debt issuance costs		914			—			—			914
Stock-based compensation		12,737			—			—			12,737
Deferred income taxes, net		(2,196	)		262			(119	)		(2,053	)
Contingent consideration		3,026			—			—			3,026
Non-cash interest income		(2,023	)		—			—			(2,023	)
Operating lease right of use asset amortization		6,487			—			—			6,487
Other		574			—			275			849
Changes in operating assets and liabilities, excluding impact of acquisitions:
Accounts receivable		(4,606	)		—			—			(4,606	)
Inventories		(2,508	)		—			—			(2,508	)
Prepaid expenses and other assets		(11,530	)		(1,349	)		—			(12,879	)
Other assets		(888	)		—			—			(888	)
Accounts payable		(3,871	)		—			—			(3,871	)
Accrued expenses		(26,234	)		14,465			—			(11,769	)
Operating lease liabilities		(4,544	)		—			—			(4,544	)
Long-term liabilities		154			—			—			154
Total cash provided by operating activities		45,622			—			—			45,622
Cash flows from investing activities:
Acquisitions, net of cash acquired		(28,099	)		—			—			(28,099	)
Proceeds from maturity of marketable securities held to maturity		102,323			—			—			102,323
Additions to capitalized software costs		(2,075	)		—			—			(2,075	)
Purchases of property, plant and equipment		(16,749	)		—			—			(16,749	)
Other investing activities		—			—			—			—
Total cash provided by (used in) investing activities		55,400			—			—			55,400
Cash flows from financing activities:
Proceeds from exercise of stock options		62			—			—			62
Payment of tax withholding obligation on vesting of restricted stock		(11,140	)		—			—			(11,140	)
Repayment of Convertible Senior Notes		(9	)		—			—			(9	)
Payment of earnout consideration		(7,298	)		—			—			(7,298	)
Proceeds from issuance of common stock, net		(3	)		—			—			(3	)
Total cash used in financing activities		(18,388	)		—			—			(18,388	)
Effect of exchange rate changes on cash and cash equivalents		(2,436	)		—			—			(2,436	)
Net increase (decrease) in cash and cash equivalents		80,198			—			—			80,198
Cash, cash equivalents and restricted cash, beginning of period		523,458			—			—			523,458
Cash and cash equivalents, end of period	$	603,656		$	—		$	—		$	603,656
Supplemental disclosure of non-cash investing and financing activities:
Assets acquired under operating leases	$	831		$	—		$	—		$	831
Fair value of 31,415 shares of common stock issued for the acquisition of FlexBiosys, Inc.	$	5,243		$	—		$	—		$	5,243
Fair value of 42,621 shares of common stock issued for the Avitide, Inc. contingent consideration earnout	$	7,229		$	—		$	—		$	7,229


	Six Months Ended June 30, 2022
	As Previously Reported			Other Adjustments			As Revised
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Operating lease right of use asset amortization	$	(21,457	)	$	23,939		$	2,482
Changes in operating assets and liabilities, excluding impact of acquisitions:
Operating lease liabilities	$	23,852		$	(23,939	)	$	(87	)
Total cash provided by operating activities	$	68,834		$	—		$	68,834