Restatement of Previously Issued Financial Statements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023 (unaudited)
	As Previously			Restatement						Restatement
	Reported			Adjustments			As Restated			References
Assets
Cash	$	42.1		$	-		$	42.1
Accounts receivable, net		39.1			(0.1	)		39.0		f
Inventory, net		48.0			(1.1	)		46.9		c, f
Prepaid expenses and other current assets		32.6			1.0			33.6		f
Total current assets		161.8			(0.2	)		161.6
Property and equipment, net		48.2			(0.3	)		47.9		b
Software development costs, net		39.2			(17.6	)		21.6		a
Other acquired intangible assets subject to amortization, net		14.7			(0.6	)		14.1		d, f
Goodwill		78.0			(19.3	)		58.7		d
Operating lease right of use asset		7.7			7.5			15.2		e, f
Costs of obtaining and fulfilling customer contracts		-			8.4			8.4		a,b
Other assets		3.9			0.2			4.1		f
Total assets	$	353.5		$	(21.9	)	$	331.6
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued expenses	$	47.5			0.8			48.3		f
Corporate tax and other current taxes payable		12.1			-			12.1
Deferred revenue, current		31.1			(0.3	)		30.8		b
Operating lease liabilities		2.9			1.2			4.1		e
Other current liabilities		3.8			-			3.8
Total current liabilities		97.4			1.7			99.1
Long-term debt		294.0			-			294.0
Finance lease liabilities, net of current portion		1.9			-			1.9
Deferred revenue, net of current portion		2.8			(0.9	)		1.9		b
Operating lease liabilities		5.3			6.1			11.4		e
Other long-term liabilities		2.4			1.3			3.7		g
Total liabilities	$	403.8		$	8.2		$	412.0
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		384.1			-			384.1
Accumulated other comprehensive income		45.1			0.9			46.0
Accumulated deficit		(479.5	)		(31.0	)		(510.5	)
Total stockholders’ deficit		(50.3	)		(30.1	)		(80.4	)
Total liabilities and stockholders’ deficit	$	353.5		$	(21.9	)	$	331.6

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 Six Months Ended June 30, 2023 (unaudited)
	As Previously			Restatement						Restatement
	Reported			Adjustments			As Restated			References
Revenue:
Service	$	126.4		$	(1.4	)	$	125.0		b, f
Product Sales		20.0			(0.7	)		19.3		b
Total Revenue		146.4			(2.1	)		144.3
Cost of Sales
Cost of service		(24.3	)		(11.2	)		(35.5	)	b, f
Cost of product sales		(15.6	)		0.5			(15.1	)	b, c
Selling, general and administrative expenses		(68.7	)		12.9			(55.8	)	a, f
Acquisition and integration related transaction expenses		-			-			-
Depreciation and amortization		(19.3	)		(0.2	)		(19.5	)	a, b, d
Net operating income (loss)		18.5			(0.1	)		18.4
					-
Other expense
Interest expense, net		(13.6	)		-			(13.6	)
Gain on disposal of business		-			-			-
Other finance income (expense)		0.2			-			0.2
Total other expense, net		(13.4	)		-			(13.4	)
					-
Net income before income taxes		5.1			(0.1	)		5.0
Income tax (expense) benefit		(1.2	)		0.4			(0.8	)
Net income		3.9			0.3			4.2
Other comprehensive income (loss)					-
Foreign currency translation gain (loss)		(3.3	)		(2.3	)		(5.6	)
Reclassification of loss on hedging instrument to comp inc		0.3			-			0.3
Actuarial gains (losses) on pension plan		1.7			(1.2	)		0.5		g
Other comprehensive income (loss)		(1.3	)		(3.5	)		(4.8	)
Comprehensive income (loss)	$	2.6		$	(3.2	)	$	(0.6	)
Net income (loss) per common share - basic	$	0.15		$	-		$	0.15
Net income (loss) per common share - diluted	$	0.13		$	0.01		$	0.14
Weighted average number of shares outstanding during the year - basic		26,211,589			1,869,452			28,081,041		i
Weighted average number of shares outstanding during the year - diluted		28,992,987			30,301			29,023,288
Stock-based compensation included in:
Selling, general, and administrative expenses		(6.1	)					(6.1	)

	For Three Months Ended June 30, 2023 (unaudited)
	As Previously			Restatement						Restatement
	Reported			Adjustments			As Restated			References
Revenue:
Service	$	68.1		$	(0.6	)	$	67.5		b
Product Sales		12.3			(0.4	)		11.9		b
Total Revenue		80.4			(1.0	)		79.4
Cost of Sales
Cost of Service		(13.4	)		(7.1	)		(20.5	)	b, f
Cost of Product sales		(9.8	)		1.4			(8.4	)	b, c
Selling, general and administrative expenses		(34.4	)		7.8			(26.6	)	a, f
Acquisition and integration related transaction expenses		-			-			-
Depreciation and amortization		(10.4	)		0.3			(10.1	)	a, b, d
Net operating income (loss)		12.4			1.4			13.8
Other expense
Interest expense, net		(7.3	)		-			(7.3	)
Other finance income (expense)		0.1			-			0.1
Total other expense, net		(7.2	)		-			(7.2	)
Net income before income taxes		5.2			1.4			6.6
Income tax (expense) benefit		(1.1	)		0.1			(1.0	)
Net income		4.1			1.5			5.6
Other comprehensive income (loss)
Foreign currency translation (loss) gain		(1.6	)		(1.1	)		(2.7	)
Reclassification of loss on hedging instrument to comprehensive income		0.1			-			0.1
Actuarial (losses) gains on pension plan		(0.3	)		0.6			0.3		g
Other comprehensive (loss)		(1.8	)		(0.5	)		(2.3	)
Comprehensive income	$	2.3		$	1.0		$	3.3
Net income per common share - basic	$	0.16		$	0.04		$	0.20
Net income per common share - diluted	$	0.14		$	0.05		$	0.19
Weighted average number of shares outstanding during the year - basic		26,267,215			1,919,510			28,186,725		h
Weighted average number of shares outstanding during the year - diluted		29,041,781			31,297			29,073,078
Stock-based compensation included in:
Selling, general, and administrative expenses	$	(3.1	)				$	(3.1	)

	For Six Months Ended June 30, 2022 (unaudited)
	As Previously			Previous			Restatement						Restatement
	Reported			Revision			Adjustments			As Restated			References
Revenue:
Service	$	121.8		$	-		$	(1.7	)	$	120.1		b
Product Sales		10.1			-			0.6			10.7		b
Total Revenue		131.9			-			(1.1	)		130.8
Cost of Sales
Cost of Service		(23.5	)		-			(11.1	)		(34.6	)	b, f
Cost of product sales		(6.5	)		-			(0.6	)		(7.1	)	b, c
Selling, general and administrative expenses		(61.5	)		-			12.6			(48.9	)	a, f
Acquisition and integration related transaction expenses		(0.2	)		-			-			(0.2	)
Depreciation and amortization		(19.9	)		(0.6	)		(0.4	)		(20.9	)	a, b, d
Net operating income (loss)		20.3			(0.6	)		(0.6	)		19.1
Other expense
Interest expense, net		(12.5	)		-			0.1			(12.4	)	b
Gain on disposal of business		0.9			-			-			0.9
Other finance income (expense)		0.6			-			-			0.6
					-			-
Total other expense, net		(11.0	)		-			0.1			(10.9	)
Net income before income taxes		9.3			(0.6	)		(0.5	)		8.2
Income tax (expense) benefit		(0.3	)		-			-			(0.3	)
Net income		9.0			(0.6	)		(0.5	)		7.9
Other comprehensive income:
Foreign currency translation (loss) gain		8.2			-			4.3			12.5
Reclassification of loss on hedging instrument to comprehensive income		0.4			-			-			0.4
Actuarial (losses) gains on pension plan		3.3			-			(4.0	)		(0.7	)	g
Other comprehensive (loss) income		11.9			-			0.3			12.2
Comprehensive income	$	20.9		$	(0.6	)	$	(0.2	)	$	20.1
Net income per common share - basic	$	0.34		$	(0.03	)	$	(0.03	)	$	0.28
Net income per common share - diluted	$	0.31		$	(0.02	)	$	(0.02	)	$	0.27
Weighted average number of shares outstanding during the year - basic		26,838,339			-			1,593,237			28,431,576		h
Weighted average number of shares outstanding during the year - diluted		29,375,570			-			70,956			29,446,526
Supplemental disclosure of stock-based compensation expense
Stock-based compensation expense included in:
Selling, general and administrative expenses	$	(5.4	)		-			-		$	(5.4	)

	For Three Months Ended June 30, 2022 (unaudited)
	As Previously			Previous			Restatement						Restatement
	Reported			Revision			Adjustments			As Restated			References
Revenue:
Service	$	64.8		$	-		$	(0.7	)	$	64.1		b
Product Sales		6.5			-			(0.1	)		6.4		b
Total Revenue		71.3			-			(0.8	)		70.5
Cost of Sales
Cost of Service		(11.7	)		-			(6.1	)		(17.8	)	b, f
Cost of Product sales		(4.4	)		-			(0.2	)		(4.6	)	b
Selling, general and administrative expenses		(31.9	)		-			6.2			(25.7	)	a, f
Acquisition and integration related transaction expenses		(0.1	)		-			0.1			-
Depreciation and amortization		(9.8	)		(0.3	)		(0.1	)		(10.2	)	a, b, d
Net operating income (loss)		13.4			(0.3	)		(0.9	)		12.2
Other expense
Interest expense, net		(6.0	)		-			0.1			(5.9	)	b
Gain on disposal of business		-			-			-			-
Other finance income (expense)		0.3			-			-			0.3
Total other expense, net		(5.7	)		-			0.1			(5.6	)
Net income before income taxes		7.7			(0.3	)		(0.8	)		6.6
Income tax (expense) benefit		(0.2	)		-			-			(0.2	)
Net income		7.5			(0.3	)		(0.8	)		6.4
Other comprehensive income:
Foreign currency translation (loss) gain		5.8			-			3.2			9.0
Reclassification of loss on hedging instrument to comprehensive income		0.2			-			-			0.2
Actuarial (losses) gains on pension plan		2.6			-			(3.4	)		(0.8	)	g
Other comprehensive (loss) income		8.6			-			(0.2	)		8.4
Comprehensive income	$	16.1		$	(0.3	)	$	(1.0	)	$	14.8
					-			-
Net income per common share - basic	$	0.28		$	(0.01	)	$	(0.04	)	$	0.23
Net income per common share - diluted	$	0.26		$	(0.04	)	$	-		$	0.22
Weighted average number of shares outstanding during the year - basic		26,826,014			-			1,600,234			28,426,248		h
Weighted average number of shares outstanding during the year - diluted		29,262,690			-			87,028			29,349,718
Supplemental disclosure of stock-based compensation expense
Stock-based compensation expense included in:
Selling, general and administrative expenses	$	(2.6	)		-			-		$	(2.6	)

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
	Common Stock				Additional paid in		other comprehensive		Accumulated			Total 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	)
Balance as of June 30, 2023 (As Previously Reported)		26,263,421		-		384.1		45.1		(479.5	)		(50.3	)
Restatement Items		-		-		-		0.9		(31.0	)		(30.1	)
Balance as of June 30, 2023 (As Restated) (Unaudited)		26,263,421	$	-	$	384.1	$	46.0	$	(510.5	)	$	(80.4	)

							Accumulated
	Common Stock				Additional paid in		other comprehensive		Accumulated			Total 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	)
Balance as of June 30, 2022 (As Previously Reported)		26,448,573		-		377.4		55.7		(490.2	)		(57.1	)
Previous Revision		-		-		-		-		(0.6	)		(0.6	)
Restatement Items		-		-		-		0.3		(31.2	)		(30.9	)
Balance as of June 30, 2022 (As Restated) (Unaudited)		26,448,573	$	-	$	377.4	$	56.0	$	(522.0	)	$	(88.6	)

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

	Six Months Ended June 30, 2023
	As Previously			Restatement						Restatement
	Reported			Adjustments			As Restated			References
Cash flows from operating activities:
Net income (loss)	$	3.9		$	0.3		$	4.2		a, b, c, d, f
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		19.3			0.2			19.5		a, b, d
Amortization of right of use asset		1.2			0.7			1.9		e
Stock-based compensation expense		6.1			(0.1	)		6.0		f
Contract cost expense		-			(5.2	)		(5.2	)	a, b
Reclassification of loss on hedging instrument to comprehensive income		0.3			-			0.3
Non-cash interest expense relating to senior debt		1.0			-			1.0
Changes in assets and liabilities:
Accounts receivable		3.3			(0.1	)		3.2		g
Inventory		(15.0	)		0.4			(14.6	)	c, g
Prepaid expenses and other assets		2.9			(0.4	)		2.5		f, g
Corporate tax and other current taxes payable		1.0			(2.5	)		(1.5	)	f, g
Accounts payable and accrued expenses		(9.8	)		2.2			(7.6	)	b, g
Deferred revenues and customer prepayment		24.6			0.1			24.7		g
Operating lease liabilities		(1.2	)		(0.6	)		(1.8	)	e, g
Other long-term liabilities		(0.1	)		-			(0.1	)
Net cash provided by operating activities		37.5			(5.0	)		32.5
Cash flows from investing activities:
Purchases of property and equipment		(9.3	)		0.6			(8.7	)	g
Acquisition of third-party company trade and assets		(0.6	)		-			(0.6	)
Purchases of capital software and internally developed costs		(10.7	)		4.0			(6.7	)	a, g
Net cash used in investing activities		(20.6	)		4.6			(16.0	)
Cash flows from financing activities:
Repurchase of common stock		(0.1	)		-			(0.1	)
Repayments of finance leases		(0.7	)		-			(0.7	)
Net cash used in financing activities		(0.8	)		-			(0.8	)
Effect of exchange rate changes on cash		1.0			0.4			1.4		g
Net increase (decrease) in cash		17.1			-			17.1
Cash, beginning of period		25.0			-			25.0
Cash, end of period	$	42.1			-			42.1
Supplemental cash flow disclosures
Cash paid during the period for interest	$	11.9		$	-		$	11.9
Cash paid during the period for income taxes	$	4.5		$	-		$	4.5
Cash paid during the period for operating leases	$	1.7		$	2.2		$	3.9		e
Supplemental disclosure of noncash investing and financing activities
Lease liabilities arising from obtaining right of use assets	$	0.2		$	-		$	0.2
Additional paid in capital from settlement of RSUs	$	(0.2	)	$	-		$	(0.2	)
Property and equipment acquired through finance lease	$	1.2		$	-		$	1.2
Property and equipment transferred to inventory	$	-		$	-		$	-

	Six Months Ended June 30, 2022 (unaudited)
	As Previously			Previous			Restatement						Restatement
	Reported			Revision			Adjustments			As Restated			References
Cash flows from operating activities:
Net income (loss)	$	8.4		$	0.6		$	(1.1	)	$	7.9		a, b, c, d, f
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		20.5			(0.6	)		1.0			20.9		a, b
Amortization of right of use asset		1.4			-			0.6			2.0		e
Profit on disposal of trade and assets								(1.0	)		(1.0	)	f
Stock-based compensation expense		5.4			-			-			5.4
Contract cost expense								(2.8	)		(2.8	)	a, b
Reclassification of loss on hedging instrument to comprehensive income		0.4			-			-			0.4
Non-cash interest expense relating to senior debt		0.8			-			-			0.8
Changes in assets and liabilities:
Accounts receivable		(0.1	)		-			(0.1	)		(0.2	)	f, g
Inventory		(10.4	)		-			0.5			(9.9	)	c, g
Prepaid expenses and other assets		2.3			-			(1.4	)		0.9		f, g
Corporate tax and other current taxes payable		(6.5	)		-			-			(6.5	)
Accounts payable and accrued expenses		(1.5	)		-			(0.3	)		(1.8	)	f, g
Deferred revenues and customer prepayment		(2.2	)		-			0.5			(1.7	)	b, g
Operating lease liabilities		(1.2	)		-			(0.7	)		(1.9	)	e, g
Other long-term liabilities		(1.4	)		-			(0.1	)		(1.5	)	g
Net cash provided by operating activities		15.9			-			(4.9	)		11.0
Cash flows from investing activities:
Purchases of property and equipment		(11.5	)		-			(0.5	)		(12.0	)	g
Acquisition of subsidiary company assets		(0.6	)		-			-			(0.6	)
Disposal of trade and assets		-						1.3			1.3		f, g
Purchases of capital software		(9.9	)		-			3.0			(6.9	)	a, g
Net cash used in investing activities		(22.0	)		-			3.8			(18.2	)
Cash flows from financing activities:
Repurchase of common stock		(5.1	)		-			-			(5.1	)
Repayments of finance leases		(0.3	)		-			-			(0.3	)
Net cash (used in) provided by financing activities		(5.4	)		-			-			(5.4	)
Effect of exchange rate changes on cash		(4.5	)		-			1.0			(3.5	)	g
Net increase in cash		(16.0	)		-			(0.1	)		(16.1	)
Cash, beginning of period		47.8			-			-			47.8
Cash, end of period	$	31.8		$	-		$	(0.1	)	$	31.7
Supplemental cash flow disclosures
Cash paid during the period for interest	$	11.7		$	-		$	-		$	11.7
Cash paid during the period for income taxes	$	0.1		$	-		$	-		$	0.1
Cash paid during the period for operating leases	$	1.9		$	-		$	1.9		$	3.8
Supplemental disclosure of noncash investing and financing activities
Additional paid in capital from net settlement of RSUs	$	(0.2	)	$	-		$	-		$	(0.2	)
Property and equipment acquired through finance lease	$	-		$	-		$	-		$	-
Property and equipment transferred to inventory	$	0.8		$	-		$	-		$	0.8