The effect of the restatement on the previously filed condensed consolidated balance sheet as of September 30, 2019 is as follows:



	As of September 30, 2019
($ in thousands)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	25,540		$	—		$	25,540
Accounts receivable, less allowance of $4,972	17,120			1,608			18,728
Finance receivables, net	7,216			229			7,445
Inventory, net	9,344			125			9,469
Prepaid expenses and other current assets	1,808			—			1,808
Total current assets	61,028			1,962			62,990

Non-current assets:
Finance receivables due after one year, net	12,710			(331		)	12,379
Other assets	1,811			204			2,015
Property and equipment, net	7,697			1,425			9,122
Operating lease right-of-use assets	6,514			—			6,514
Intangibles, net	25,387			—			25,387
Goodwill	64,149			(204		)	63,945
Total non-current assets	118,268			1,094			119,362

Total assets	$	179,296		$	3,056		$	182,352

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	27,453		1,102			$	28,555
Accrued expenses	29,245			(105		)	29,140
Capital lease obligations and current obligations under long-term debt	10,826			—			10,826
Income taxes payable	252			—			252
Deferred revenue	2,949			(1,300		)	1,649
Total current liabilities	70,725			(303		)	70,422

Long-term liabilities:
Deferred income taxes	76			—			76
Capital lease obligations and long-term debt, less current portion	184			—			184
Operating lease liabilities, non-current	5,327			—			5,327
Total long-term liabilities	5,587			—			5,587

Total liabilities	$	76,312		$	(303	)	$	76,009
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $20,444	3,138			—			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Common stock, no par value, 640,000,000 shares authorized, 60,008,481 shares issued and outstanding	377,143			—			377,143
Accumulated deficit	(277,297		)	3,359			(273,938		)
Total shareholders’ equity	99,846			3,359			103,205
Total liabilities, convertible preferred stock and shareholders’ equity	$	179,296		$	3,056		$	182,352

The effect of the restatement on the previously filed condensed consolidated statement of operations for the three months ended September 30, 2019 is as follows:



	Three months ended September 30, 2019
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	33,833		$	776		$	34,609
Equipment sales	8,313			437			8,750
Total revenue	42,146			1,213			43,359

Costs of sales:
Cost of services	21,646			443			22,089
Cost of equipment	10,448			(594		)	9,854
Total costs of sales	32,094			(151		)	31,943
Gross profit	10,052			1,364			11,416

Operating expenses:
Selling, general and administrative	18,171			(64		)	18,107
Investigation and restatement expenses	3,699			(134		)	3,565
Depreciation and amortization	1,022			—			1,022
Total operating expenses	22,892			(198		)	22,694
Operating income (loss)	(12,840		)	1,562			(11,278		)

Other income (expense):
Interest income	467			(173		)	294
Interest expense	(465		)	—			(465		)
Total other income (expense), net	2			(173		)	(171		)

Loss before income taxes	(12,838		)	1,389			(11,449		)
Provision for income taxes	(59		)	—			(59		)

Net loss	(12,897		)	1,389			(11,508		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(13,231	)	$	1,389		$	(11,842	)
Net loss per common share
Basic	$	(0.22	)	$	0.02		$	(0.20	)
Diluted	$	(0.22	)	$	0.02		$	(0.20	)
Weighted average number of common shares outstanding
Basic	60,096,852			—			60,096,852
Diluted	60,096,852			—			60,096,852

The effect of the restatement on the previously filed condensed consolidated statement of cash flows for the three months ended September 30, 2019 is as follows:



	Three months ended September 30, 2019
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(12,897	)	$	1,389		$	(11,508	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Non-cash stock based compensation	290			—			290
Gain on disposal of property and equipment	(15		)	—			(15		)
Non-cash interest and amortization of debt discount	338			—			338
Bad debt expense	(110		)	—			(110		)
Provision for inventory reserve	574			—			574
Depreciation and amortization	1,213			443			1,656
Non-cash lease expense	491			—			491
Deferred income taxes	5			—			5
Changes in operating assets and liabilities:
Accounts receivable	4,677			(1,391		)	3,286
Finance receivables, net	(384		)	(70		)	(454		)
Inventory, net	992			240			1,232
Prepaid expenses and other current assets	(412		)	—			(412		)
Accounts payable and accrued expenses	4,459			831			5,290
Operating lease liabilities	(399		)	—			(399		)
Deferred revenue	1,409			(1,442		)	(33		)
Income taxes payable	(2		)	—			(2		)
Net cash provided by operating activities	229			—			229

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(420		)	—			(420		)
Proceeds from sale of property and equipment, including rentals	30			—			30
Net cash used in investing activities	(390		)	—			(390		)

FINANCING ACTIVITIES:
Repayment of capital lease obligations and long-term debt	(1,763		)	—			(1,763		)
Net cash used in financing activities	(1,763		)	—			(1,763		)

Net decrease in cash and cash equivalents	(1,924		)	—			(1,924		)
Cash and cash equivalents at beginning of year	27,464			—			27,464
Cash and cash equivalents at end of period	$	25,540		$	—		$	25,540

Revision

In addition, the Company analyzed the impact of the aforementioned adjustments on the financial statements for the interim and annual periods prior to fiscal year 2020 and concluded a correction of the errors would not be material to any individual period prior to fiscal year 2020, taking into account the requirements of ASC Topic 250, Accounting Changes and Error Corrections, ASC Topic 270 Interim Financial Reporting, ASC Topic 250-S99-1, Assessing Materiality, and ASC Topic 250-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements. In accordance with the authoritative guidance, management evaluated the materiality of the adjustments from a quantitative and qualitative perspective. Based on such evaluation, the Company concluded that the effects of these adjustments and other accumulated misstatements were not material individually or in the aggregate to any interim or annual period prior to fiscal year 2020. However, correcting the cumulative impact of the misstatements would be material to our results of operations for the three months ended December 31, 2019 and fiscal year 2020. Accordingly, in this filing, the Company has revised the prior period interim and annual financial information for fiscal year 2019 to reflect the correction of these adjustments and other accumulated misstatements.

The effect of the revision on the previously filed consolidated balance sheet as of June 30, 2019 is as follows:



	As of June 30, 2019
($ in thousands)	As Previously Reported			Adjustments			As Revised

Assets
Current assets:
Cash and cash equivalents	$	27,464		$	—		$	27,464
Accounts receivable, less allowance of $4,866	21,712			194			21,906
Finance receivables, net	6,260			467			6,727
Inventory, net	10,908			365			11,273
Prepaid expenses and other current assets	1,558			—			1,558
Total current assets	67,902			1,026			68,928

Non-current assets:
Finance receivables due after one year, net	11,596			1,046			12,642
Other assets	2,099			—			2,099
Property and equipment, net	9,180			410			9,590
Intangibles, net	26,171			—			26,171
Goodwill	64,149			(204		)	63,945
Total non-current assets	113,195			1,252			114,447

Total assets	$	181,097		$	2,278		$	183,375

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	27,511		73			$	27,584
Accrued expenses	23,258			93			23,351
Capital lease obligations and current obligations under long-term debt	12,497			—			12,497
Income taxes payable	254			—			254
Deferred revenue	1,539			142			1,681
Total current liabilities	65,059			308			65,367

Long-term liabilities:
Deferred income taxes	71			—			71
Capital lease obligations and long-term debt, less current portion	276			—			276
Accrued expenses, less current portion	100			—			100
Total long-term liabilities	447			—			447

Total liabilities	$	65,506		$	308		$	65,814
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $20,111	3,138			—			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Common stock, no par value, 640,000,000 shares authorized, 60,008,481 shares issued and outstanding	376,853			—			376,853
Accumulated deficit	(264,400		)	1,970			(262,430		)
Total shareholders’ equity	112,453			1,970			114,423
Total liabilities, convertible preferred stock and shareholders’ equity	$	181,097		$	2,278		$	183,375

The effect of the revision on the previously filed consolidated statements of operations for the three and twelve months ended June 30, 2019 is as follows:



	Three months ended June 30, 2019									Year ended June 30, 2019
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised

Revenue:
License and transaction fees	$	33,116		$	(127	)	$	32,989		$	123,554		$	(646	)	$	122,908
Equipment sales	5,109			410			5,519			20,245			1,313			21,558
Total revenue	38,225			283			38,508			143,799			667			144,466

Costs of sales:
Cost of services	21,943			(104		)	21,839			80,485			(505		)	79,980
Cost of equipment	7,295			(365		)	6,930			25,195			(894		)	24,301
Total costs of sales	29,238			(469		)	28,769			105,680			(1,399		)	104,281
Gross profit	8,987			752			9,739			38,119			2,066			40,185

Operating expenses:
Selling, general and administrative	15,531			(41		)	15,490			47,068			(41		)	47,027
Investigation and restatement expenses	2,317			134			2,451			15,439			134			15,573
Integration and acquisition costs	211			—			211			1,338			—			1,338
Depreciation and amortization	1,071			—			1,071			4,430			—			4,430
Total operating expenses	19,130			93			19,223			68,275			93			68,368
Operating loss	(10,143		)	659			(9,484		)	(30,156		)	1,973			(28,183		)

Other income (expense):
Interest income	278			32			310			1,382			173			1,555
Interest expense	(474		)	—			(474		)	(2,992		)	—			(2,992		)
Total other expense, net	(196		)	32			(164		)	(1,610		)	173			(1,437		)

Loss before income taxes	(10,339		)	691			(9,648		)	(31,766		)	2,146			(29,620		)
Provision for income taxes	(202		)	—			(202		)	(262		)	—			(262		)

Net loss	(10,541		)	691			(9,850		)	(32,028		)	2,146			(29,882		)
Preferred dividends	—			—			—			(668		)	—			(668		)
Net loss applicable to common shares	$	(10,541	)	$	691		$	(9,850	)	$	(32,696	)	$	2,146		$	(30,550	)
Net loss per common share
Basic	$	(0.18	)	$	0.02		$	(0.16	)	$	(0.54	)	$	0.03		$	(0.51	)
Diluted	$	(0.18	)	$	0.02		$	(0.16	)	$	(0.54	)	$	0.03		$	(0.51	)
Weighted average number of common shares outstanding
Basic	60,065,978			—			60,065,978			60,061,243			—			60,061,243
Diluted	60,065,978			—			60,065,978			60,061,243			—			60,061,243

The effect of the revision on the previously filed consolidated statement of cash flows for the year ended June 30, 2019 is as follows:



	Year ended June 30, 2019
($ in thousands)	As Previously Reported			Adjustments			As Revised

OPERATING ACTIVITIES:
Net loss	$	(32,028	)	$	2,146		$	(29,882	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock based compensation	1,750			—			1,750
Loss on disposal of property and equipment	672			—			672
Non-cash interest and amortization of debt discount	301			—			301
Bad debt expense	2,534			—			2,534
Provision for inventory reserve	3,172			—			3,172
Depreciation and amortization	8,009			(505		)	7,504
Deferred income taxes	(7		)	—			(7		)
Changes in operating assets and liabilities:
Accounts receivable	(8,488		)	(218		)	(8,706		)
Finance receivables, net	(8		)	(661		)	(669		)
Inventory, net	(5,242		)	(365		)	(5,607		)
Prepaid expenses and other current assets	(395		)	—			(395		)
Accounts payable and accrued expenses	873			166			1,039
Deferred revenue	(98		)	(34		)	(132		)
Income taxes payable	254			—			254
Net cash used in operating activities	(28,701		)	529			(28,172		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(4,346		)	(529		)	(4,875		)
Proceeds from sale of property and equipment, including rentals	116			—			116
Net cash used in investing activities	(4,230		)	(529		)	(4,759		)

FINANCING ACTIVITIES:
Proceeds from exercise of common stock options	42			—			42
Cash used for repurchase of common stock awards	(120		)	—			(120		)
Cash used in retirement of common stock	(81		)	—			(81		)
Payment of debt issuance costs	(156		)	—			(156		)
Repayment of capital lease obligations and long-term debt	(23,254		)	—			(23,254		)
Net cash used in financing activities	(23,569		)	—			(23,569		)

Net decrease in cash and cash equivalents	(56,500		)	—			(56,500		)
Cash and cash equivalents at beginning of year	83,964			—			83,964
Cash and cash equivalents at end of year	$	27,464		$	—		$	27,464

The effect of the revision on the previously filed condensed consolidated balance sheet as of March 31, 2019 is as follows:



	As of March 31, 2019
($ in thousands)	As Previously Reported			Adjustments			As Revised

Assets
Current assets:
Cash and cash equivalents	$	32,788		$	—		$	32,788
Accounts receivable, less allowance of $3,714	20,492			(19		)	20,473
Finance receivables, net	6,119			422			6,541
Inventory, net	11,488			—			11,488
Prepaid expenses and other current assets	2,878			—			2,878
Total current assets	73,765			403			74,168

Non-current assets:
Finance receivables due after one year, net	11,362			980			12,342
Other assets	1,922			—			1,922
Property and equipment, net	9,116			306			9,422
Intangibles, net	26,956			—			26,956
Goodwill	64,149			(204		)	63,945
Total non-current assets	113,505			1,082			114,587

Total assets	$	187,270		$	1,485		$	188,755

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	26,058		30			$	26,088
Accrued expenses	19,974			—			19,974
Capital lease obligations and current obligations under long-term debt	13,202			—			13,202
Income taxes payable	42			—			42
Deferred revenue	1,322			176			1,498
Total current liabilities	60,598			206			60,804

Long-term liabilities:
Deferred income taxes	81			—			81
Capital lease obligations and long-term debt, less current portion	512			—			512
Accrued expenses, less current portion	100			—			100
Total long-term liabilities	693			—			693

Total liabilities	$	61,291		$	206		$	61,497
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $20,111	3,138			—			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Common stock, no par value, 640,000,000 shares authorized, 60,019,438 shares issued and outstanding	376,700			—			376,700
Accumulated deficit	(253,859		)	1,279			(252,580		)
Total shareholders’ equity	122,841			1,279			124,120
Total liabilities, convertible preferred stock and shareholders’ equity	$	187,270		$	1,485		$	188,755

The effect of the revision on the previously filed condensed consolidated statements of operations for the three and nine months ended March 31, 2019 is as follows:



	Three months ended March 31, 2019									Nine months ended March 31, 2019
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised

Revenue:
License and transaction fees	$	31,630		$	(115	)	$	31,515		$	90,438		$	(519	)	$	89,919
Equipment sales	6,016			173			6,189			15,136			903			16,039
Total revenue	37,646			58			37,704			105,574			384			105,958

Costs of sales:
Cost of services	20,423			(116		)	20,307			58,542			(401		)	58,141
Cost of equipment	7,444			—			7,444			17,900			(529		)	17,371
Total costs of sales	27,867			(116		)	27,751			76,442			(930		)	75,512
Gross profit	9,779			174			9,953			29,132			1,314			30,446

Operating expenses:
Selling, general and administrative	11,156			—			11,156			31,537			—			31,537
Investigation and restatement expenses	1,408			—			1,408			13,122			—			13,122
Integration and acquisition costs	24			—			24			1,127			—			1,127
Depreciation and amortization	1,083			—			1,083			3,359			—			3,359
Total operating expenses	13,671			—			13,671			49,145			—			49,145
Operating loss	(3,892		)	174			(3,718		)	(20,013		)	1,314			(18,699		)

Other income (expense):
Interest income	318			30			348			1,104			141			1,245
Interest expense	(913		)	—			(913		)	(2,518		)	—			(2,518		)
Total other expense, net	(595		)	30			(565		)	(1,414		)	141			(1,273		)

Loss before income taxes	(4,487		)	204			(4,283		)	(21,427		)	1,455			(19,972		)
(Provision) benefit for income taxes	(23		)	—			(23		)	(60		)	—			(60		)

Net loss	(4,510		)	204			(4,306		)	(21,487		)	1,455			(20,032		)
Preferred dividends	(334		)	—			(334		)	(668		)	—			(668		)
Net loss applicable to common shares	$	(4,844	)	$	204		$	(4,640	)	$	(22,155	)	$	1,455		$	(20,700	)
Net loss per common share
Basic	$	(0.08	)	$	—		$	(0.08	)	$	(0.37	)	$	0.03		$	(0.34	)
Diluted	$	(0.08	)	$	—		$	(0.08	)	$	(0.37	)	$	0.03		$	(0.34	)
Weighted average number of common shares outstanding
Basic	60,065,053			—			60,065,053			60,059,594			—			60,059,594
Diluted	60,065,053			—			60,065,053			60,059,594			—			60,059,594

The effect of the revision on the previously filed condensed consolidated statement of cash flows for the nine months ended March 31, 2019 is as follows:



	Nine months ended March 31, 2019
($ in thousands)	As Previously Reported			Adjustments			As Revised

OPERATING ACTIVITIES:
Net loss	$	(21,487	)	$	1,455		$	(20,032	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock based compensation	1,393			—			1,393
Gain on disposal of property and equipment	(39		)	—			(39		)
Non-cash interest and amortization of debt discount	286			—			286
Bad debt expense	1,537			—			1,537
Provision for inventory reserve	2,699			—			2,699
Depreciation and amortization	6,300			(401		)	5,899
Deferred income taxes	14			—			14
Changes in operating assets and liabilities:
Accounts receivable	(6,283		)	(5		)	(6,288		)
Finance receivables, net	368			(550		)	(182		)
Inventory, net	(5,349		)	—			(5,349		)
Prepaid expenses and other current assets	(1,545		)	—			(1,545		)
Accounts payable and accrued expenses	(3,866		)	30			(3,836		)
Deferred revenue	(316		)	—			(316		)
Income taxes payable	42			—			42
Net cash used in operating activities	(26,246		)	529			(25,717		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(2,627		)	(529		)	(3,156		)
Proceeds from sale of property and equipment, including rentals	103			—			103
Net cash used in investing activities	(2,524		)	(529		)	(3,053		)

FINANCING ACTIVITIES:
Proceeds from exercise of common stock options	42			—			42
Payment of debt issuance costs	(135		)	—			(135		)
Repayment of capital lease obligations and long-term debt	(22,313		)	—			(22,313		)
Net cash used in financing activities	(22,406		)	—			(22,406		)

Net decrease in cash and cash equivalents	(51,176		)	—			(51,176		)
Cash and cash equivalents at beginning of year	83,964			—			83,964
Cash and cash equivalents at end of period	$	32,788		$	—		$	32,788

The effect of the revision on the previously filed condensed consolidated balance sheet as of December 31, 2018 is as follows:



	As of December 31, 2018
($ in thousands)	As Previously Reported			Adjustments			As Revised

Assets
Current assets:
Cash and cash equivalents	$	63,193		$	—		$	63,193
Accounts receivable, less allowance of $3,385	10,132			(44		)	10,088
Finance receivables, net	5,591			381			5,972
Inventory, net	7,343			—			7,343
Prepaid expenses and other current assets	2,871			—			2,871
Total current assets	89,130			337			89,467

Non-current assets:
Finance receivables due after one year, net	11,910			928			12,838
Other assets	1,903			—			1,903
Property and equipment, net	9,546			190			9,736
Intangibles, net	27,740			—			27,740
Goodwill	64,149			(204		)	63,945
Total non-current assets	115,248			914			116,162

Total assets	$	204,378		$	1,251		$	205,629

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	17,570		—			$	17,570
Accrued expenses	21,150			—			21,150
Capital lease obligations and current obligations under long-term debt	33,235			—			33,235
Income taxes payable	25			—			25
Deferred revenue	1,437			176			1,613
Total current liabilities	73,417			176			73,593

Long-term liabilities:
Deferred income taxes	76			—			76
Capital lease obligations and long-term debt, less current portion	632			—			632
Accrued expenses, less current portion	101			—			101
Total long-term liabilities	809			—			809

Total liabilities	$	74,226		$	176		$	74,402
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,777	3,138			—			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Common stock, no par value, 640,000,000 shares authorized, 60,013,718 shares issued and outstanding	376,363			—			376,363
Accumulated deficit	(249,349		)	1,075			(248,274		)
Total shareholders’ equity	127,014			1,075			128,089
Total liabilities, convertible preferred stock and shareholders’ equity	$	204,378		$	1,251		$	205,629

The effect of the revision on the previously filed condensed consolidated statements of operations for the three and six months ended December 31, 2018 is as follows:



	Three months ended December 31, 2018									Six months ended December 31, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised

Revenue:
License and transaction fees	$	29,837		$	(104	)	$	29,733		$	58,808		$	(404	)	$	58,404
Equipment sales	4,569			184			4,753			9,120			730			9,850
Total revenue	34,406			80			34,486			67,928			326			68,254

Costs of sales:
Cost of services	19,575			(113		)	19,462			38,119			(285		)	37,834
Cost of equipment	5,588			1			5,589			10,456			(529		)	9,927
Total costs of sales	25,163			(112		)	25,051			48,575			(814		)	47,761
Gross profit	9,243			192			9,435			19,353			1,140			20,493

Operating expenses:
Selling, general and administrative	10,931			—			10,931			20,381			—			20,381
Investigation and restatement expenses	7,188			—			7,188			11,714			—			11,714
Integration and acquisition costs	181			—			181			1,103			—			1,103
Depreciation and amortization	1,143			—			1,143			2,276			—			2,276
Total operating expenses	19,443			—			19,443			35,474			—			35,474
Operating loss	(10,200		)	192			(10,008		)	(16,121		)	1,140			(14,981		)

Other income (expense):
Interest income	381			27			408			786			111			897
Interest expense	(819		)	—			(819		)	(1,605		)	—			(1,605		)
Total other expense, net	(438		)	27			(411		)	(819		)	111			(708		)

Loss before income taxes	(10,638		)	219			(10,419		)	(16,940		)	1,251			(15,689		)
(Provision) benefit for income taxes	(19		)	—			(19		)	(37		)	—			(37		)

Net loss	(10,657		)	219			(10,438		)	(16,977		)	1,251			(15,726		)
Preferred dividends	—			—			—			(334		)	—			(334		)
Net loss applicable to common shares	$	(10,657	)	$	219		$	(10,438	)	$	(17,311	)	$	1,251		$	(16,060	)
Net loss per common share
Basic	$	(0.18	)	$	0.01		$	(0.17	)	$	(0.29	)	$	0.02		$	(0.27	)
Diluted	$	(0.18	)	$	0.01		$	(0.17	)	$	(0.29	)	$	0.02		$	(0.27	)
Weighted average number of common shares outstanding
Basic	60,059,936			—			60,059,936			60,056,924			—			60,056,924
Diluted	60,059,936			—			60,059,936			60,056,924			—			60,056,924

The effect of the revision on the previously filed condensed consolidated statement of cash flows for the six months ended December 31, 2018 is as follows:



	Six months ended December 31, 2018
($ in thousands)	As Previously Reported			Adjustments			As Revised

OPERATING ACTIVITIES:
Net loss	$	(16,977	)	$	1,251		$	(15,726	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock based compensation	972			—			972
Gain on disposal of property and equipment	(29		)	—			(29		)
Non-cash interest and amortization of debt discount	45			—			45
Bad debt expense	1,308			—			1,308
Provision for inventory reserve	1,211			—			1,211
Depreciation and amortization	4,257			(285		)	3,972
Deferred income taxes	9			—			9
Changes in operating assets and liabilities:
Accounts receivable	4,312			20			4,332
Finance receivables, net	348			(457		)	(109		)
Inventory, net	284			—			284
Prepaid expenses and other current assets	(1,588		)	—			(1,588		)
Accounts payable and accrued expenses	(11,095		)	—			(11,095		)
Deferred revenue	(201		)	—			(201		)
Income taxes payable	25			—			25
Net cash used in operating activities	(17,119		)	529			(16,590		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(1,795		)	(529		)	(2,324		)
Proceeds from sale of property and equipment, including rentals	82			—			82
Net cash used in investing activities	(1,713		)	(529		)	(2,242		)

FINANCING ACTIVITIES:
Proceeds from exercise of common stock options	42			—			42
Payment of debt issuance costs	(53		)	—			(53		)
Repayment of capital lease obligations and long-term debt	(1,928		)	—			(1,928		)
Net cash used in financing activities	(1,939		)	—			(1,939		)

Net decrease in cash and cash equivalents	(20,771		)	—			(20,771		)
Cash and cash equivalents at beginning of year	83,964			—			83,964
Cash and cash equivalents at end of period	$	63,193		$	—		$	63,193

The effect of the revision on the previously filed condensed consolidated balance sheet as of September 30, 2018 is as follows:



	As of September 30, 2018
($ in thousands)	As Previously Reported			Adjustments			As Revised

Assets
Current assets:
Cash and cash equivalents	$	68,262		$	—		$	68,262
Accounts receivable, less allowance of $3,125	18,921			(39		)	18,882
Finance receivables, net	5,141			339			5,480
Inventory, net	6,915			—			6,915
Prepaid expenses and other current assets	1,463			—			1,463
Total current assets	100,702			300			101,002

Non-current assets:
Finance receivables due after one year, net	12,770			859			13,629
Other assets	1,900			—			1,900
Property and equipment, net	9,778			77			9,855
Intangibles, net	28,533			—			28,533
Goodwill	64,149			(204		)	63,945
Total non-current assets	117,130			732			117,862

Total assets	$	217,832		$	1,032		$	218,864

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	19,335		—			$	19,335
Accrued expenses	21,848			—			21,848
Capital lease obligations and current obligations under long-term debt	33,889			—			33,889
Income taxes payable	11			—			11
Deferred revenue	1,428			176			1,604
Total current liabilities	76,511			176			76,687

Long-term liabilities:
Deferred income taxes	71			—			71
Capital lease obligations and long-term debt, less current portion	932			—			932
Accrued expenses, less current portion	66			—			66
Total long-term liabilities	1,069			—			1,069

Total liabilities	$	77,580		$	176		$	77,756
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,777	3,138			—			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Common stock, no par value, 640,000,000 shares authorized, 60,012,155 shares issued and outstanding	375,806			—			375,806
Accumulated deficit	(238,692		)	856			(237,836		)
Total shareholders’ equity	137,114			856			137,970
Total liabilities, convertible preferred stock and shareholders’ equity	$	217,832		$	1,032		$	218,864

The effect of the revision on the previously filed condensed consolidated statement of operations for the three months ended September 30, 2018 is as follows:



	Three months ended September 30, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Revised

Revenue:
License and transaction fees	$	28,971		$	(300	)	$	28,671
Equipment sales	4,551			546			5,097
Total revenue	33,522			246			33,768

Costs of sales:
Cost of services	18,544			(172		)	18,372
Cost of equipment	4,868			(530		)	4,338
Total costs of sales	23,412			(702		)	22,710
Gross profit	10,110			948			11,058

Operating expenses:
Selling, general and administrative	9,450			—			9,450
Investigation and restatement expenses	4,526			—			4,526
Integration and acquisition costs	922			—			922
Depreciation and amortization	1,133			—			1,133
Total operating expenses	16,031			—			16,031
Operating income (loss)	(5,921		)	948			(4,973		)

Other income (expense):
Interest income	405			84			489
Interest expense	(786		)	—			(786		)
Total other income (expense), net	(381		)	84			(297		)

Loss before income taxes	(6,302		)	1,032			(5,270		)
Provision for income taxes	(18		)	—			(18		)

Net loss	(6,320		)	1,032			(5,288		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(6,654	)	$	1,032		$	(5,622	)
Net loss per common share
Basic	$	(0.11	)	$	0.02		$	(0.09	)
Diluted	$	(0.11	)	$	0.02		$	(0.09	)
Weighted average number of common shares outstanding
Basic	60,053,912			—			60,053,912
Diluted	60,053,912			—			60,053,912

The effect of the revision on the previously filed condensed consolidated statement of cash flows for the three months ended September 30, 2018 is as follows:



	Three months ended September 30, 2018
($ in thousands)	As Previously Reported			Adjustments			As Revised

OPERATING ACTIVITIES:
Net loss	$	(6,320	)	$	1,032		$	(5,288	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock based compensation	415			—			415
Loss on disposal of property and equipment	7			—			7
Non-cash interest and amortization of debt discount	22			—			22
Bad debt expense	509			—			509
Provision for inventory reserve	212			—			212
Depreciation and amortization	2,147			(172		)	1,975
Deferred income taxes	4			—			4
Changes in operating assets and liabilities:
Accounts receivable	(3,678		)	15			(3,663		)
Finance receivables, net	(63		)	(346		)	(409		)
Inventory, net	1,707			—			1,707
Prepaid expenses and other current assets	(220		)	—			(220		)
Accounts payable and accrued expenses	(8,665		)	—			(8,665		)
Deferred revenue	(210		)	—			(210		)
Income taxes payable	11			—			11
Net cash used in operating activities	(14,122		)	529			(13,593		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(693		)	(529		)	(1,222		)
Proceeds from sale of property and equipment, including rentals	30			—			30
Net cash used in investing activities	(663		)	(529		)	(1,192		)

FINANCING ACTIVITIES:
Proceeds from exercise of common stock options	42			—			42
Repayment of capital lease obligations and long-term debt	(959		)	—			(959		)
Net cash used in financing activities	(917		)	—			(917		)

Net decrease in cash and cash equivalents	(15,702		)	—			(15,702		)
Cash and cash equivalents at beginning of year	83,964			—			83,964
Cash and cash equivalents at end of period	$	68,262		$	—		$	68,262