Restatement of Previously Issued Financial Statements (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of Restatement Items to Prior Period Financial Statements

The following tables present the effect of the Restatement Items on the Company’s consolidated balance sheets for the periods indicated (in millions, except per share):

	As of March 31, 2023 (unaudited)
	As Previously			Previous			Restatement						Restatement
	Reported			Revision			Adjustments			As Restated			References
Assets
Cash	$	27.8		$	-		$	-		$	27.8
Accounts receivable, net		33.0			-			(0.1	)		32.9		f
Inventory, net		36.5			-			(1.9	)		34.6		c
Prepaid expenses and other current assets		31.1			-			(0.4	)		30.7		f
Total current assets		128.4			-			(2.4	)		126.0
Property and equipment, net		47.7			-			(0.3	)		47.4		b
Software development costs, net		38.1			(1.0	)		(17.6	)		19.5		a
Other acquired intangible assets subject to amortization, net		14.6			-			(0.3	)		14.3		d, f
Goodwill		75.8			-			(18.8	)		57.0		d
Operating lease right of use asset		8.1			-			7.6			15.7		e
Cost of obtaining and fulfilling customer contracts, net		-			-			7.7			7.7		a, b
Other assets		3.8			-			0.3			4.1		f
Total assets	$	316.5		$	(1.0	)	$	(23.8	)	$	291.7
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable		22.2			-			-			22.2
Accrued expenses		34.9			-			0.7			35.6		f
Corporate tax and other current taxes payable		5.0			-			(1.6	)		3.4
Deferred revenue, current		5.1			-			(0.2	)		4.9		b
Operating lease liabilities		2.8			-			1.2			4.0		e
Other current liabilities		3.2			-			-			3.2
Total current liabilities		73.2			-			0.1			73.3
Long-term debt		285.5			-			-			285.5
Finance lease liabilities, net of current portion		1.2			-			-			1.2
Deferred revenue, net of current portion		3.2			-			(0.9	)		2.3		b
Operating lease liabilities		5.6			-			6.3			11.9		e
Other long-term liabilities		2.2			-			1.8			4.0		g
Total liabilities	$	370.9		$	-		$	7.3		$	378.2
Commitments and contingencies
Stockholders’ deficit
Preferred stock; $0.0001 par value; 1,000,000 shares authorized		-			-			-			-
Common stock; $0.0001 par value; 49,000,000 shares authorized; 25,909,516 shares and 26,433,562 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively		-			-			-			-
Additional paid in capital		381.2			-			-			381.2
Accumulated other comprehensive income		46.8			-			1.5			48.3
Accumulated deficit		(482.4	)		(1.0	)		(32.6	)		(516.0	)
Total stockholders’ deficit		(54.4	)		(1.0	)		(31.1	)		(86.5	)
Total liabilities and stockholders’ deficit	$	316.5		$	(1.0	)	$	(23.8	)	$	291.7

The following tables present the effect of the Restatement Items on the Company’s consolidated statement of operations for the periods indicated (in millions, except share and per share amounts):

	For Three Months Ended March 31, 2023 (unaudited)
	As Previously			Restatement						Restatement
	Reported			Adjustments			As Restated			References
Revenue:
Service	$	58.3		$	(0.8	)	$	57.5		b, f
Product sales		7.7			(0.3	)		7.4		b
Total Revenue		66.0			(1.1	)		64.9
Cost of Sales
Cost of service(1)		(10.9	)		(4.1	)		(15.0	)	b, f
Cost of product sales		(5.8	)		(0.9	)		(6.7	)	b, c
Selling, general and administrative expenses		(34.3	)		5.1			(29.2	)	a, f
Acquisition and integration related transaction expenses		-			-			-
Depreciation and amortization		(8.9	)		(0.5	)		(9.4	)	a, b
Net operating income (loss)		6.1			(1.5	)		4.6
					-
Other expense
Interest expense, net		(6.3	)		-			(6.3	)
Gain on disposal of business		-			-			-
Other finance income (expense)		0.1			-			0.1
Total other expense, net		(6.2	)		-			(6.2	)
					-
Net loss before income taxes		(0.1	)		(1.5	)		(1.6	)
Income tax (expense) benefit		(0.1	)		0.3			0.2
Net loss		(0.2	)		(1.2	)		(1.4	)
Other comprehensive income (loss)
Foreign currency translation gain (loss)		(1.7	)		(1.2	)		(2.9	)
Reclassification of loss on hedging instrument to comprehensive income		0.2			-			0.2
Actuarial gains (losses) on pension plan		2.0			(1.8	)		0.2		g
Other comprehensive income (loss)		0.5			(3.0	)		(2.5	)
Comprehensive income (loss)	$	0.3		$	(4.2	)	$	(3.9	)
Net income (loss) per common share - basic	$	(0.01	)	$	(0.04	)	$	(0.05	)
Net income (loss) per common share - diluted	$	(0.01	)	$	(0.04	)	$	(0.05	)
Weighted average number of shares outstanding during the year - basic		26,155,346			1,818,836			27,974,182		h
Weighted average number of shares outstanding during the year - diluted		26,155,346			1,818,836			27,974,182
Stock-based compensation included in:
Selling, general, and administrative expenses	$	(2.9	)				$	(2.9	)

⁽¹⁾ Excluding depreciation and amortization

	For Three Months Ended March 31, 2022 (unaudited)
	As Previously			Restatement						Restatement
	Reported			Adjustments			As Restated			References
Revenue:
Service	$	57.0		$	(1.0	)	$	56.0		b
Product Sales		3.6			0.7			4.3		b
Total Revenue		60.6			(0.3	)		60.3
Cost of Sales
Cost of Service		(11.8	)		(5.0	)		(16.8	)	b, f
Cost of Product sales		(2.1	)		(0.4	)		(2.5	)	b, c
Selling, general and administrative expenses		(29.6	)		6.4			(23.2	)	a, f
Acquisition and integration related transaction expenses		(0.1	)		(0.1	)		(0.2	)
Depreciation and amortization		(10.1	)		(0.6	)		(10.7	)	a, b, d
Net operating income (loss)		6.9			-			6.9
Other expense
Interest expense, net		(6.5	)		-			(6.5	)
Gain on disposal of business		0.9			-			0.9
Other finance income (expense)		0.3			-			0.3
Total other expense, net		(5.3	)		-			(5.3	)
Net income before income taxes		1.6			-			1.6
Income tax expense		(0.1	)		-			(0.1	)
Net income		1.5			-			1.5
Other comprehensive income:
Foreign currency translation (loss) gain		2.4			1.1			3.5
Reclassification of loss on hedging instrument to comprehensive income		0.2			-			0.2
Actuarial gains (losses) on pension plan		0.7			(0.6	)		0.1		g
Other comprehensive income		3.3			0.5			3.8
Comprehensive income	$	4.8		$	0.5		$	5.3
Net income (loss) per common share - basic	$	0.06		$	(0.01	)	$	0.05
Net income (loss) per common share - diluted	$	0.05		$	-		$	0.05
Weighted average number of shares outstanding during the year - basic		26,850,326			1,586,726			28,437,052		h
Weighted average number of shares outstanding during the year - diluted		29,294,973			67,409			29,362,382

The following tables present the effect of the Restatement Items on the Company’s consolidated statements of stockholders’ equity (deficit) for the periods indicated (in millions, except per share amounts):

							Accumulated
					Additional		other					Total
	Common Stock				paid in		comprehensive		Accumulated			stockholders’			Restatement
	Shares		Amount		capital		income		deficit			deficit			References
Balance as of March 31, 2023 (As Previously Reported)		26,263,070		-		381.2		46.8		(482.4	)		(54.4	)
Previous Revision		-		-		-		-		(1.0	)		(1.0	)
Restatement Items		-		-		-		1.5		(32.6	)		(31.1	)
Balance as of March 31, 2023 (As Restated) (Unaudited)		26,263,070	$	-	$	381.2	$	48.3	$	(516.0	)	$	(86.5	)

							Accumulated
					Additional		other					Total
	Common Stock				paid in		comprehensive		Accumulated			stockholders’			Restatement
	Shares		Amount		capital		income		deficit			deficit			References
Balance as of March 31, 2022 (As Previously Reported)		26,880,622		-		375.0		47.1		(492.6	)		(70.5	)
Restatement Items		-		-		-		0.5		(30.7	)		(30.2	)
Balance as of March 31, 2022 (As Restated) (Unaudited)		26,880,622	$	-	$	375.0	$	47.6	$	(523.3	)	$	(100.7	)

The following tables present the effect of the Restatement Items on the Company’s consolidated statements of cashflows for the periods indicated (in millions):

	Three Months Ended March 31, 2023 (unaudited)
	As Previously			Previous		Restatement						Restatement
	Reported			Revision		Adjustments			As Restated			References
Cash flows from operating activities:
Net income (loss)	$	(0.2	)	$	-	$	(1.2	)	$	(1.4	)	a, b, c, f
Adjustments to reconcile net income (loss) to net cash provided by operating activities:					-
Depreciation and amortization		8.9			-		0.5			9.4		a, b, d
Amortization of right of use asset		0.5			-		0.3			0.8		e
Stock-based compensation expense		2.9			-		-			2.9
Contract cost expense		-			-		(2.6	)		(2.6	)	a, b
Reclassification of loss on hedging instrument to comprehensive income		0.2			-		-			0.2
Non-cash interest expense relating to senior debt		0.3			-		-			0.3
Changes in assets and liabilities:					-
Accounts receivable		8.5			-		(0.2	)		8.3		g
Inventory		(4.6	)		-		1.1			(3.5	)	c, g
Prepaid expenses and other assets		1.6			-		(0.6	)		1.0		f, g
Corporate tax and other current taxes payable		(3.8	)		-		(2.4	)		(6.2	)	g
Accounts payable		(4.1	)		-		2.0			(2.1	)	g
Deferred revenues and customer prepayment		(0.3	)		-		0.1			(0.2	)	g
Accrued expenses		5.5			-		0.1			5.6		f, g
Other lease liabilities		(0.6	)		-		(0.3	)		(0.9	)	g
Other long-term liabilities		-			-		-			-
Net cash provided by operating activities		14.8			-		(3.2	)		11.6
Cash flows from investing activities:
Purchases of property and equipment		(6.1	)		-		0.6			(5.5	)	g
Acquisition of subsidiary company assets		-			-					-
Acquisition of third-party company trade and assets		(0.6	)		-		-			(0.6	)
Purchases of capital software		(4.8	)		-		2.0			(2.8	)	a, g
Net cash used in investing activities		(11.5	)		-		2.6			(8.9	)
Cash flows from financing activities:
Repayments of finance leases		(0.5	)		-		-			(0.5	)
Net cash used in financing activities		(0.5	)		-		-			(0.5	)
Effect of exchange rate changes on cash		-			-		0.6			0.6		g
Net increase (decrease) in cash		2.8			-		-			2.8
Cash, beginning of period		25.0			-		0			25.0
Cash, end of period	$	27.8			-		0			27.8
Supplemental cash flow disclosures
Cash paid during the period for interest	$	0.1		$	-	$	-		$	0.1
Cash paid during the period for income taxes	$	0.1		$	-	$	-		$	0.1
Cash paid during the period for operating leases	$	1.2		$	-	$	0.9		$	2.1
Supplemental disclosure of noncash investing and financing activities
Lease liabilities arising from obtaining right of use assets	$	(0.1	)	$		$			$	(0.1	)

	Three Months Ended March 31, 2022 (unaudited)
	As Previously			Restatement						Restatement
	Reported			Adjustments			As Restated			References
Cash flows from operating activities:
Net income (loss)	$	1.5		$	-		$	1.5		a, b, c, d, f
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		10.1			0.6			10.7		a, b, d
Amortization of right of use asset		0.7			0.3			1.0		e
Profit on sale of trade and asset		-			(0.9	)		(0.9	)	f
Stock-based compensation expense		2.8			-			2.8
Contract Cost expense		-			(1.6	)		(1.6	)	a, b
Reclassification of loss on hedging instrument to comprehensive income		0.2			-			0.2
Non-cash interest expense relating to senior debt		0.4			-			0.4
Changes in assets and liabilities:
Accounts receivable		(2.1	)		(0.1	)		(2.2	)	g
Inventory		(11.9	)		0.3			(11.6	)	c, g
Prepaid expenses and other assets		0.9			(0.9	)		-		g
Corporate tax and other current taxes payable		(7.2	)		-			(7.2	)
Accounts payable		4.3			(0.1	)		4.2		g
Deferred revenues and customer prepayment		(0.3	)		0.3			-		a, b, g
Accrued expenses		7.1			-			7.1
Operating lease liabilities		(0.7	)		(0.3	)		(1.0	)	e
Other long-term liabilities		(0.7	)		-			(0.7	)
Net cash provided by operating activities		5.1			(2.4	)		2.7
Cash flows from investing activities:
Purchases of property and equipment		(5.2	)		(0.4	)		(5.6	)
Acquisition of subsidiary company assets		(0.6	)		-			(0.6	)
Disposal of trade and assets		-			1.3			1.3
Purchases of capital software		(5.1	)		1.2			(3.9	)
Net cash used in investing activities		(10.9	)		2.1			(8.8	)
Cash flows from financing activities:
Repayments of finance leases		(0.1	)		-			(0.1	)
Net cash (used in) provided by financing activities		(0.1	)		-			(0.1	)
Effect of exchange rate changes on cash		(1.1	)		0.3			(0.8	)	g
Net increase in cash		(7.0	)		-			(7.0	)
Cash, beginning of period		47.8			-			47.8
Cash, end of period	$	40.8		$	-		$	40.8
Supplemental cash flow disclosures
Cash paid during the period for interest	$	0.2		$	-		$	0.2
Cash paid during the period for income taxes	$	-		$	-		$	-
Cash paid during the period for operating leases	$	0.9		$	0.8		$	1.7
Supplemental disclosure of noncash investing and financing activities
Property and equipment acquired through finance lease	$	-		$			$	-
Property and equipment transferred to inventory	$	0.6		$			$	0.6