Restatement of Previously Issued Financial Statements

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

2. Restatement of Previously Issued Financial Statements

Restatement Background

On November 2, 2023, the Company in concurrence with the Company’s audit committee, concluded that our 2023 and 2022 consolidated financial statements and our unaudited consolidated financial statements as of and for each of the first two quarterly periods in 2023 and all quarterly periods in 2022, included in our Quarterly Reports on Form 10-Q for the respective periods, (collectively the “Prior Period Financial Statements”) should no longer be relied upon due to misstatements that are described below, and that we would restate such financial statements to make the necessary accounting corrections. Details of the restated consolidated financial statements as of June 30, 2023 and for the three and six months ended June 30, 2023 and 2022 are provided below (“Restatement Items”). Details of the restated consolidated financial statements as of December 31, 2022 are provided in the amendment to the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2022, filed with the SEC as of the date of this report.

The Restatements Items reflect adjustments to correct errors in certain financial statement areas including capitalized software and costs to fulfill a contract, revenue and costs to obtain a contract, inventory, goodwill and intangibles, leasing, pension, and other reclassifications and immaterial errors identified. The nature and impact of these adjustments are described below and also detailed in the tables below.

The Company issued a revision for capitalized software and related amortization expense in the quarterly report on Form 10-Q filed on August 11, 2023 for the period ended June 30, 2023 (the “Revision”).This revision related to certain completed software development projects that were, but should not have been, delayed in the shift from work in progress to completed projects. Consequently, the commencement of amortization for certain projects was delayed and the reported amortization was lower than the actual amortization. The Revision covers the period ended June 30, 2023 and the year ended December 31, 2022 and is distinct from the capitalized software restatements below. The tables below have been updated to separate the impact of the Restatement Items from the Revision.

Restatement Items

Capitalized software and Costs to fulfill a contract – The Company historically assessed and applied incorrectly the accounting frameworks for developing external use software under ASC 985-20, Costs of Software to Be Sold, Leased or Marketed, and internal-use software under ASC 350-40, Intangibles – Goodwill and Other – Internal-Use Software and ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers. In addition, the Company determined routine software updates and certain minor software enhancements were inappropriately capitalized and capitalized labor rates inappropriately included certain indirect costs including overhead and non-development activities. Consequently, certain amortization was inappropriate. The corrections resulted in a decrease in Software development costs, net of $17.6 million and an increase in Costs of obtaining and fulfilling customer contracts, net of $7.8 million as of June 30, 2023, respectively. The corrections resulted in an increase to Selling, general and administrative expenses of $1.2, $2.3 million, $1.4 million and $1.7 million as well as a decrease in Depreciation and amortization of $1.8 million, $2.9 million, $0.5 million and $1.5 million for the three and six months ended June 30, 2023 and 2022, respectively. The previous revision of capitalized software resulted in an increase of Depreciation and amortization of $0.3 million and $0.6 million for the three and six months ended June 30, 2022. Refer to reference “a” below.

Revenue and Costs to obtain a contract – The Company identified several corrections related to ASC 606, Revenue from Contracts with Customers. The Company identified certain performance obligations were delivered and therefore should have been recognized at a specific point in time (rather than over time). Additionally, we identified that (i) for certain Interactive Aggregator contracts, revenue should have been reported on a net, rather than gross, basis and (ii) certain parts the Company acquired and sold to its contract manufacturer should have not been reported as revenue. These two items have no impact to profit. The Company also identified an immaterial contract that should have been recognized as a sales type lease rather than an operating lease. Items reported on a gross, rather than net basis are corrected with no impact to profit. Lastly, the Company had historically expensed certain commissions in the period incurred instead of capitalizing and amortizing them under the accounting framework for costs to obtain contracts with customers pursuant to ASC 606, Revenue from Contracts with Customers, and ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers. The corrections resulted in a decrease in Property and equipment, net of $0.3 million as of June 30, 2023, respectively. The corrections also resulted in a decrease in Deferred revenue, current of $0.3 million as of June 30, 2023, a decrease in Deferred revenue, net of current position of $0.9 million as of June 30, 2023 and an increase in costs of obtaining and fulfilling contract costs, net of $0.8 million as of June 30, 2023. The corrections also resulted in a decrease in Revenue - service of $0.6 million, $1.3 million, $0.7 million and $1.7 million for the three and six months ended June 30, 2023 and 2022, respectively, a $0.4 million and $0.7 million decrease in Revenue – product sales for the three and six months ended June 30, 2023 and a $0.1 million decrease and $0.6 million increase in Revenue – product sales for the three and six months ended June 30, 2022, respectively, a decrease in Cost of sales – service of $2.2 million, $4.4 million, $1.6 million and $3.3 million for the three and six months ended June 30, 2023 and 2022, respectively, and a $0.4 million and $0.7 million decrease in Cost of sales – product sales for the three and six months ended June 30, 2023, respectively, as well as a $0.6 million decrease in Cost of sales – product sales for the six months ended June 30, 2022. The corrections also resulted in an increase in Depreciation and amortization increased by $1.5 million, $3.1 million and $0.6 million and $2.0 million for the three and six months ended June 30, 2023 and 2022, respectively as well as a $0.1 decrease in Interest expense, net for both the three and six months ended June 30, 2022. Refer to reference “b” below. Note 7, “Contract Liabilities and Other Disclosures” and Note 17, “Segment Reporting and Geographic Information” have also been corrected.

Inventory – The Company identified an error in the amount capitalized for field inventory, repair and consumable items. Refer to reference “c” below. Note 5, “Inventory” has also been corrected.

Goodwill and intangibles – Through review of the appropriate reporting units and asset groups to assess impairments at under ASC 350, Intangibles – Goodwill and Other and ASC 360, Property, Plant and Equipment, the Company identified a triggering event in the first quarter of 2020, related to the beginning of the COVID-19 pandemic, for which impairment assessment was required for (i) Server Based Gaming (“SBG”) and Acquired Business reporting units and (ii) all landbased asset groups. Based on the assessment, we determined that an impairment of goodwill and long-lived assets occurred in the first quarter of 2020. Additionally, we determined that a significant number of synergies existed from the acquisition in the fourth quarter of 2019 and therefore a portion of the acquisition goodwill should have been reallocated to other reporting units upon acquisition. The corrections resulted in a decrease of Depreciation and amortization of $0.1 million for both the six months ended June 30, 2023 and 2022 and a decrease in Other acquired intangible assets subject to amortization, net of $1.2 million as of June 30, 2023. Refer to reference “d” below.

Leasing – The Company had not historically included in-substance fixed payments related to certain leases according to the accounting framework in ASC 842, Leases. The corrections resulted in an increase in Operating lease right of use asset of $7.5 million, an increase in current Operating lease liabilities of $1.2 million and an increase in long-term Operating lease liabilities of $6.1 million as of June 30, 2023. Refer to reference “f” below. Note 14, “Leases” has also been corrected.

Basic and diluted net income (loss) per share – An error to shares outstanding primarily relates to the Company not including deferred settlement equity awards that had vested in the number of outstanding shares used in the calculation of basic and diluted weighted average number of shares outstanding pursuant to ASC 260, Earnings Per Share. Refer to reference “h” below. Note 10, “Net earnings (loss) per share” has also been corrected.

Pension – The Company had corrections to pension that primarily related to no longer updating the plan liability/ asset quarterly to comply with US GAAP. The corrections resulted in a reclassification of $1.3 million from Accumulated other comprehensive income to Other long-term liabilities as of June 30, 2023. In addition, the Company corrected the benefit obligation and fair value of plan assets for the buy-in contract.  The Company corrected the measurement of the plan assets and the estimated fair value of the buy in contract. Note 16, “Pension Plan” has also been corrected. Refer to reference “g” below.

Other errors identified – Through the restatement process, the Company has reclassified certain costs for salaries of service employees and recorded an adjustment related to foreign currency impacts on an intangible. In addition to the reclassification and intangible adjustment, the Company has corrected other adjustments that are quantitatively immaterial, individually and in aggregate, because we are correcting for these material errors, we have decided to correct these other adjustments. Refer to reference “f” below.

Income tax – The Company updated the income tax effects for the Restatement Items. Note 12, “Income Taxes” has also been updated.

Summary impact 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