3. Revision and Immaterial Correction of an Error in Previously Issued Financial Statements

During the quarter ended December 31, 2019, we identified errors related to the impairment of intangibles we acquired as part of our acquisition of DP Engineering. In our March 31, 2019 interim unaudited financial statements we recorded an impairment charge to both our definite-lived intangible assets (customer relationships) of $3.4 million and goodwill of $2.2 million. Subsequently, we concluded no impairment of the definite-lived intangibles was necessary and the entire impairment amount should have been allocated to goodwill. The revision had no overall impact on the amount of the total impairment but did impact the allocation of impairment between definite-lived intangibles and goodwill. This revision results in additional amortization of the definite-lived intangible asset. In accordance with ASC 250, Accounting Changes and Error Corrections, we evaluated the materiality of the errors from quantitative and qualitative perspectives and concluded that the errors were immaterial to the Company’s prior 2019 interim unaudited financial statements. Since these revisions were not material to any prior period interim financial statements, no amendments to previously filed interim periodic reports are required. Consequently, the Company has adjusted for these errors by revising our historical unaudited financial statements presented herein. The Company corrected this immaterial error by revising the March 30, 2019, June 30, 2019 and September 30, 2019 unaudited financial statements included herein.

The tables below present the effect of the financial statement adjustments related to the revision discussed above of the Company’s previously reported financial statements as of and for the periods ended March 31, June 30, and September 30, 2019. The cumulative tax effect of the revision is reflected in the twelve months ended December 31, 2019 financial statements. This misstatement had no net impact on the Company’s consolidated statements of cash flows.

The effect of the immaterial correction of an error on our previously filed unaudited consolidated financial statements as of and for the three months ended March 31, 2019 is as follows:

Consolidated balance sheets
(in thousands)
	Three months ended March 31, 2019
	As reported			Adjustment			As revised
Goodwill	$	16,709		$	(3,370	)	$	13,339
Intangible assets, net		8,999			3,309			12,308
Total assets	$	71,424		$	(61	)	$	71,363

Accumulated deficit		(46,805	)		(61	)		(46,866	)
Total liabilities and stockholders' equity	$	71,424		$	(61	)	$	71,363

Consolidated statement of operations
	Three months ended March 31, 2019
	As reported			Adjustment			As revised
Amortization of definite-lived intangible assets	$	509		$	61		$	570
Loss before income taxes		(6,084	)		(61	)		(6,145	)
Net loss	$	(4,236	)	$	(61	)	$	(4,297	)

Basic loss per common share	$	(0.21	)	$	(0.01	)	$	(0.22	)
Diluted loss per common share	$	(0.21	)	$	(0.01	)	$	(0.22	)

Consolidated statement of stockholders' equity
	Three months ended March 31, 2019
	As reported			Adjustment			As revised
Net loss	$	(4,236	)	$	(61	)	$	(4,297	)

The effect of the immaterial correction of an error on our previously filed unaudited consolidated financial statements as of and for the six months ended June 30, 2019 is as follows:

Consolidated balance sheets
(in thousands)
	Six months ended June 30, 2019
	As reported			Adjustment			As revised
Goodwill	$	16,709		$	(3,370	)	$	13,339
Intangible assets, net		8,454			3,218			11,672
Total assets	$	68,996		$	(152	)	$	68,844

Accumulated deficit	$	(46,930	)	$	(152	)	$	(47,082	)
Total liabilities and stockholders' equity	$	68,996		$	(152	)	$	68,844

Consolidated statement of operations
	Six months ended June 30, 2019
	As reported			Adjustment			As revised
Amortization of definite-lived intangible assets	$	1,056		$	152		$	1,208
Loss before income taxes		(5,803	)		(152	)		(5,955	)
Net loss	$	(4,361	)	$	(152	)	$	(4,513	)

Basic loss per common share	$	(0.22	)	$	(0.01	)	$	(0.23	)
Diluted loss per common share	$	(0.22	)	$	(0.01	)	$	(0.23	)

Consolidated statement of stockholders’ equity
	Six months ended June 30, 2019
	As reported			Adjustment			As revised
Net loss	$	(4,361	)	$	(152	)	$	(4,513	)

The effect of the immaterial correction of an error on our previously filed unaudited consolidated financial statements as of and for the nine months ended September 30, 2019 is as follows:

Consolidated balance sheets
(in thousands)
	Nine months ended September 30, 2019
	As reported			Adjustment			As revised
Goodwill	$	16,709		$	(3,370	)	$	13,339
Intangible assets, net		7,960			3,116			11,076
Total assets	$	63,859		$	(254	)	$	63,605

Accumulated deficit	$	(48,050	)	$	(254	)	$	(48,304	)
Total liabilities and stockholders' equity	$	63,859		$	(254	)	$	63,605

Consolidated statement of operations
	Nine months ended September 30, 2019
	As reported			Adjustment			As revised
Amortization of definite-lived intangible assets	$	1,550		$	254		$	1,804
Loss before income taxes		(6,356	)		(254	)		(6,610	)
Net loss	$	(5,482	)	$	(254	)	$	(5,736	)

Basic loss per common share	$	(0.27	)	$	(0.01	)	$	(0.28	)
Diluted loss per common share	$	(0.27	)	$	(0.01	)	$	(0.28	)

Consolidated statement of stockholders' equity
	Nine months ended September 30, 2019
	As reported			Adjustment			As revised
Net loss	$	(5,482	)	$	(254	)	$	(5,736	)