Revision of Prior Period Financial Statements

6 Months Ended

Jun. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Period Financial Statements

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

In connection with the preparation of the Company’s 2019 consolidated financial statements, the Company identified errors in its historical financial statements relating to how the Company accounted for debt discounts and how the Company accounted for reimbursement of salaries and other salary related costs for its property management revenue arrangements. Specifically, the Company incorrectly accounted for debt discount of certain notes payable due to affiliates that should have been fully amortized at the end of the initial three-year term in October 2017. In addition, in the interim periods in 2019, the Company previously reported the reimbursement of salary costs from its property management agreements on a net basis, although the Company was required to account for these payroll related reimbursements on a gross basis. The correction of these non-cash errors had no effect on the previously reported operating income (loss) or total cash flows from operations, investing, or financing of the Company.

The Company evaluated the errors and, based on an analysis of quantitative and qualitative factors, determined that the related impact was not material to the Company’s consolidated financial statements for any prior period.

All financial statements and footnotes presented herein have been adjusted to reflect the revisions below.

	For the three months ended June 30, 2019						For the six months ended June 30, 2019
	As previously reported		Adjustment		As adjusted		As previously reported		Adjustment		As adjusted
Revenue—asset management	$	4,024	$	415	$	4,439	$	7,885	$	708	$	8,593
Direct costs—asset management	3,514		426		3,940		6,831		776		7,607
Interest (expense)	(132)		16		(116)		(166)		32		(134)
Other income, net	16		11		27		16		68		84
Net income (loss)	(253)		16		(237)		(184)		32		(152)
Additional paid-in capital	197,333		1,025		198,358		197,333		1,025		198,358
Accumulated deficit	(194,503)		(1,740)		(196,243)		(194,503)		(1,740)		(196,243)
Total equity	7,013		(715)		6,298		7,013		(715)		6,298