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Restatement of the Consolidated Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]  
Schedule of Prior Period Adjustments and Restatements
The effect of adjustments made to the Company’s previously filed consolidated statements of operations as a result of these matters are shown in the table below. The tax effect of the adjustments is estimated based on the Company’s effective tax rate of 28.46%.
 
Year Ended December 31, 2016
 
(in thousands, except share and per share data)
 
Previously Reported
 
Adjustments
 
Restated
Net sales
$
245,015

 
$
(23,303
)
 
$
221,712

Cost of sales
32,407

 
(1,469
)
 
30,938

Gross profit
212,608

 
(21,834
)
 
190,774

 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Selling, general and administrative
179,997

 
(6,585
)
 
173,412

Research and development
12,038

 
2,303

 
14,341

Amortization of intangible assets
2,127

 
10

 
2,137

Operating income
18,446

 
(17,562
)
 
884

 
 
 
 
 
 
Other expense, net
(339
)
 
—

 
(339
)
 
 
 
 
 
 
Income before income tax provision
18,107

 
(17,562
)
 
545

Income tax provision (expense)
(6,133
)
 
5,978

 
(155
)
 
 
 
 
 
 
Net income (loss)
$
11,974

 
$
(11,584
)
 
$
390

 
 
 
 
 
 
Net income (loss) per common share - basic
$
0.11

 
$
—

 
$
—

 
 
 
 
 
 
Net income (loss) per common share - diluted
$
0.11

 
$
—

 
$
—

 
 
 
 
 
 
Weighted average shares outstanding - basic
105,928,348

 
—

 
105,928,348

 
 
 
 
 
 
Weighted average shares outstanding - diluted
112,441,709

 
—

 
112,645,640






The effects of the restatements on the Company’s consolidated statement of operations by category for the year ended December 31, 2016 are shown in the table below. The tax effect of the adjustments is estimated based on the Company’s effective tax rate of 28.46%.
 
Year Ended December 31, 2016
 
Adjustments by Category
(in thousands)
Previously
 
Cash
 
 
 
Revenue
 
 
 
Total
 
 
 
Reported
 
Revenue
 
GPO Fees
 
Related
 
Other
 
Adjustments
 
Restated
Net sales
$
245,015

 
$
(14,725
)
 
$
(4,487
)
 
$
(4,091
)
 
$
—

 
$
(23,303
)
 
$
221,712

Cost of sales
32,407

 
—

 
—

 
(1,469
)
 
—

 
(1,469
)
 
30,938

Gross profit
212,608

 
(14,725
)
 
(4,487
)
 
(2,622
)
 
—

 
(21,834
)
 
190,774

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
179,997

 
—

 
(4,487
)
 
(1,744
)
 
(354
)
 
(6,585
)
 
173,412

Research and development expenses
12,038

 
—

 
—

 
—

 
2,303

 
2,303

 
14,341

Amortization of intangible assets
2,127

 
—

 
—

 
—

 
10

 
10

 
2,137

Operating income
18,446

 
(14,725
)
 
—

 
(878
)
 
(1,959
)
 
(17,562
)
 
884

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense, net
(339
)
 
—

 
—

 
—

 
—

 
—

 
(339
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax provision
18,107

 
(14,725
)
 
—

 
(878
)
 
(1,959
)
 
(17,562
)
 
545

Income tax provision (expense) benefit
(6,133
)
 
—

 
—

 
—

 
5,978

 
5,978

 
(155
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
11,974

 
$
(14,725
)
 
$
—

 
$
(878
)
 
$
4,019

 
$
(11,584
)
 
$
390

The effects of the restatements on the Company’s consolidated statement of stockholders’ equity for the year ended December 31, 2016 are as follows:
 
Year-ended December 31, 2016
 
(in thousands)
 
 
 
Adjustments by Category
 
 
 
 
 
Previously Reported
 
Cash Revenue
 
Revenue Related
 
Other
 
Total Adjustments
 
Restated
Total stockholders' equity, December 31, 2015
$
107,988

 
$
(60,064
)
 
$
6,669

 
$
(19,869
)
 
$
(73,264
)
 
$
34,724

Share-based compensation
17,818

 
—

 
—

 
(86
)
 
(86
)
 
17,732

Tax benefit of share-based compensation
(424
)
 
—

 
—

 
1

 
1

 
(423
)
Exercise of stock options
3,494

 
—

 
—

 
—

 
—

 
3,494

Issuance of restricted stock
1

 
—

 
—

 
(1
)
 
(1
)
 
—

Shares issued for services performed
346

 
—

 
—

 
—

 
—

 
346

Shares repurchased
(10,378
)
 
—

 
—

 
—

 
—

 
(10,378
)
Shares repurchased for tax withholding
(1,165
)
 
—

 
—

 
—

 
—

 
(1,165
)
Shares issued in conjunction with acquisition of Stability
3,346

 
—

 
—

 
1

 
1

 
3,347

Net income (loss)
11,974

 
(14,725
)
 
(878
)
 
4,019

 
(11,584
)
 
390

Total stockholders' equity, December 31, 2016
$
133,000

 
$
(74,789
)
 
$
5,791

 
$
(15,935
)
 
$
(84,933
)
 
$
48,067

The effects of the restatements on the Company’s consolidated statement of stockholders’ equity as of December 31, 2016 are as follows:
 
As of December 31, 2016
 
(in thousands)
 
 
 
Adjustments by Category
 
 
 
 

Previously Reported
 
Cash Revenue
 
Revenue Related
 
Other
 
Total Adjustments
 
Restated
Common stock
$
110

 
$
—

 
$
—

 
$
—

 
$
—

 
$
110

Additional paid-in capital
161,261

 
—

 
—

 
220

 
220

 
161,481

Treasury stock
(2,216
)
 
—

 
—

 
—

 
—

 
(2,216
)
Accumulated deficit
(26,155
)
 
(74,789
)
 
5,791

 
(16,155
)
 
(85,153
)
 
(111,308
)
Total stockholders' equity
$
133,000

 
$
(74,789
)
 
$
5,791

 
$
(15,935
)
 
$
(84,933
)
 
$
48,067

The effects of the restatements on the Company’s consolidated balance sheet as of December 31, 2016 are as follows:
 
Year Ended December 31, 2016
 
(in thousands)
 
Previously Reported
 
Adjustments
 
Restated
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
   Cash and cash equivalents
$
34,391

 
$
(4,070
)
 
$
30,321

   Accounts receivable, net
67,151

 
(65,224
)
 
1,927

   Inventory, net
17,814

 
(1,942
)
 
15,872

   Prepaid expenses
5,894

 
(4,056
)
 
1,838

   Other current assets
1,288

 
8,228

 
9,516

      Total current assets
126,538

 
(67,064
)
 
59,474

 
 
 
 
 
 
Property and equipment, net
13,786

 
199

 
13,985

Goodwill
20,203

 
—

 
20,203

Intangible assets, net
23,268

 
(10
)
 
23,258

Deferred tax asset, net
9,114

 
(9,114
)
 
—

Other assets
354

 
—

 
354

      Total assets
$
193,263

 
$
(75,989
)
 
$
117,274

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
   Accounts payable
$
11,436

 
$
976

 
$
12,412

   Accrued compensation
12,365

 
326

 
12,691

   Accrued expenses
10,941

 
8,266

 
19,207

   Current portion of earn out liability
8,740

 
(480
)
 
8,260

   Deferred tax liability, net
—

 
1,129

 
1,129

   Income taxes
5,768

 
(157
)
 
5,611

   Other current liabilities
1,482

 
—

 
1,482

      Total current liabilities
50,732

 
10,060

 
60,792

 
 
 
 
 
 
Earn out liability
8,710

 
(1,170
)
 
7,540

Other liabilities
821

 
54

 
875

      Total liabilities
60,263

 
8,944

 
69,207

 
 
 
 
 
 
Stockholders' equity:
 
 
 
 
 
Preferred stock; $.001 par value; 5,000,000 shares authorized and 0 shares issued and outstanding
—

 
—

 
—

Common stock; $0.001 par value; 150,000,000 shares authorized; 110,212,547 issued and 109,862,787 outstanding at December 31, 2016
110

 
—

 
110

Additional paid-in capital
161,261

 
220

 
161,481

Treasury stock at cost: 349,760 shares at December 31, 2016
(2,216
)
 
—

 
(2,216
)
Accumulated deficit
(26,155
)
 
(85,153
)
 
(111,308
)
      Total stockholders' equity
133,000

 
(84,933
)
 
48,067

      Total liabilities and stockholders' equity
$
193,263

 
$
(75,989
)
 
$
117,274


The effects of the restatements on the Company’s consolidated statement of cash flows for the year ended December 31, 2016 are as follows:
 
Year Ended December 31, 2016
 
(in thousands)
 
Previously Reported
 
Adjustments
 
Restated
Cash flows provided by operating activities:
 
 
 
 
 
Net (loss) income
$
11,974

 
$
(11,584
)
 
$
390

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 

 
 
Depreciation
3,333

 
—

 
3,333

Amortization of intangible assets
2,127

 
10

 
2,137

Amortization of inventory fair value step-up
1,485

 
—

 
1,485

Amortization of deferred financing costs
181

 
(30
)
 
151

Change in fair value of earn-out consideration
—

 
(1,650
)
 
(1,650
)
Share-based compensation
17,818

 
(86
)
 
17,732

Change in deferred income taxes
(594
)
 
(5,398
)
 
(5,992
)
Increase (decrease) in cash, net of effects of acquisition and divestiture, resulting from changes in:
 
 
 
 
 
Accounts receivable
(11,396
)
 
11,469

 
73

Inventory
(2,837
)
 
1,942

 
(895
)
Prepaid expenses
(2,400
)
 
1,607

 
(793
)
Other assets
(384
)
 
(1,183
)
 
(1,567
)
Accounts payable
(3,665
)
 
187

 
(3,478
)
Accrued compensation
(2,669
)
 
83

 
(2,586
)
Accrued expenses
6,297

 
3,233

 
9,530

Income taxes
5,835

 
(634
)
 
5,201

Other liabilities
723

 
55

 
778

Net cash flows provided by operating activities
25,828


(1,979
)
 
23,849

 
 
 
 
 
 
Cash flows used in investing activities:
 
 
 
 
 
Purchases of property and equipment
(6,269
)
 
64

 
(6,205
)
Stability acquisition
(7,631
)
 
—

 
(7,631
)
Fixed maturity securities redemption
3,000

 
—

 
3,000

Patent application costs
(842
)
 
—

 
(842
)
Net cash flows used in investing activities
(11,742
)
 
64

 
(11,678
)
 
 
 
 
 
 
Cash flows used in financing activities:
 
 
 
 
 
Proceeds from exercise of stock options
3,494

 
—

 
3,494

Shares repurchased under repurchase plan
(10,378
)
 
—

 
(10,378
)
Shares repurchased for tax withholdings on vesting of restricted stock
(1,165
)
 
—

 
(1,165
)
Deferred financing costs
(30
)
 
30

 
—

Payments under capital lease obligations
(102
)
 
—

 
(102
)
Net cash flows used in financing activities
(8,181
)
 
30

 
(8,151
)
 
 
 
 
 
 
Net change in cash
5,905

 
(1,885
)
 
4,020

 
 
 
 
 
 
Cash and cash equivalents, beginning of year
28,486

 
(2,185
)
 
26,301

Cash and cash equivalents, end of year
$
34,391

 
$
(4,070
)
 
$
30,321