ITEM 1. |
BUSINESS. |
• | Reduce Complexity. non-core assets and investing in core competencies. |
• | Drive Operational Excellence. |
• | Accelerate Growth. |
• | metals and synthetics; |
• | “xenograft” tissue from an animal source; |
• | “autograft” tissue from the patient; and |
• | “allograft” tissue from another human donor. |
• | Thoracolumbar ® TL Spinal Fixation System, Quantum® Spinal Fixation System, Streamline® MIS Spinal Fixation System, MIS FusionTM Instrumentation, Contact® Anterior Lumbar Plate System |
• | Cervical ® Posterior Cervical Spinal Fixation System, Slimfuse® Anterior Cervical Plate System, Aspect® Anterior Cervical Plate System |
• | Lateral ® Retractor System, Lat-FuseTM Lateral Plate System |
• | Interbody ® PEEK VBR/IBF System |
• | Biologics ® DBM, BioReady® DBM, and BioAdapt® DBM families of paste implants |
• | Synthetics ® advanced bone graft substitute |
• | Organizational oversight by senior-level personnel responsible for the compliance functions within our company; |
• | Written standards and procedures, including a Code of Conduct; |
• | Methods for communicating compliance concerns, including anonymous reporting mechanisms; |
• | Investigation and remediation measures to ensure prompt response to reported matters and timely corrective action; |
• | Compliance education and training for employees and contracted business associates such as distributors; |
• | Auditing and monitoring controls to promote compliance with applicable laws and assess program effectiveness; |
• | Oversight of interactions with healthcare professionals to ensure compliance with healthcare fraud & abuse laws, including mandated reporting of transfers of value to healthcare professionals under the Affordable Care Act; |
• | Oversight of corporate handling of personal data to ensure compliance with data protection legislation; |
• | Disciplinary guidelines to enforce compliance and address violations; |
• | Screening of employees and relevant contracted business associates; and |
• | Risk assessments to identify areas of regulatory compliance risk. |
Item 2. |
PROPERTIES. |
Item 6. |
SELECTED FINANCIAL DATA. |
Year Ended December 31, |
||||||||||||||||||||
2019 |
2018 |
2017 |
2016 |
2015 |
||||||||||||||||
(Amounts in thousands, except share and per share data) |
||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Statements of Operations Data: |
||||||||||||||||||||
Revenues |
$ | 117,423 | $ | 92,112 | $ | 90,281 | $ | 275,984 | $ | 283,131 | ||||||||||
Costs of processing and distribution |
32,777 | 33,593 | 36,441 | 142,657 | 133,460 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit |
84,646 | 58,519 | 53,840 | 133,327 | 149,671 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses: |
||||||||||||||||||||
Marketing, general and administrative |
135,396 | 98,152 | 90,790 | 116,666 | 107,550 | |||||||||||||||
Research and development |
16,836 | 14,410 | 13,315 | 16,297 | 15,065 | |||||||||||||||
Severance and restructuring costs |
— | 773 | 8,522 | 1,039 | 995 | |||||||||||||||
Gain on acquisition contingency |
(76,033 | ) | — | — | — | — | ||||||||||||||
Strategic review costs |
— | — | — | 1,150 | — | |||||||||||||||
Executive transition costs |
— | — | 2,818 | 4,404 | — | |||||||||||||||
Contested proxy expenses |
— | — | — | 2,680 | — | |||||||||||||||
Asset impairment and abandonments |
97,341 | 5,070 | 442 | 5,241 | 814 | |||||||||||||||
Goodwill impairment |
140,003 | — | — | 1,107 | — | |||||||||||||||
Litigation settlement and settlement charges |
— | — | — | — | 804 | |||||||||||||||
Acquisition and integration expenses |
13,999 | 4,928 | 630 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating expenses |
327,542 | 123,333 | 116,517 | 148,584 | 125,228 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating (loss) income |
(242,896 | ) | (64,814 | ) | (62,677 | ) | (15,257 | ) | 24,443 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other income (expense): |
||||||||||||||||||||
Interest expense |
— | — | — | (1,655 | ) | (1,492 | ) | |||||||||||||
Interest income |
161 | 35 | 8 | 8 | 3 | |||||||||||||||
Foreign exchange (loss) gain |
(122 | ) | (29 | ) | 38 | (129 | ) | 78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other income (expense) - net |
39 | 6 | 46 | (1,776 | ) | (1,411 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(Loss) income before income tax (provision) benefit |
(242,857 | ) | (64,808 | ) | (62,631 | ) | (17,033 | ) | 23,032 | |||||||||||
Income tax (provision) benefit |
(5,921 | ) | 15,159 | 18,227 | 3,228 | (8,499 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income from continuing operations |
(248,778 | ) | (49,649 | ) | (44,404 | ) | (13,805 | ) | 14,533 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Discontinued operations (Note 5) |
||||||||||||||||||||
Income from operations of discontinued operations |
48,452 | 57,417 | 88,886 | — | — | |||||||||||||||
Income tax provision |
(11,316 | ) | (10,891 | ) | (37,576 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income from discontinued operations |
37,136 | 46,526 | 51,310 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income |
(211,642 | ) | (3,123 | ) | 6,906 | (13,805 | ) | 14,533 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Convertible preferred dividend |
— | (2,120 | ) | (3,723 | ) | (3,508 | ) | (3,305 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income applicable to common shares |
$ | (211,642 | ) | $ | (5,243 | ) | $ | 3,183 | $ | (17,313 | ) | $ | 11,228 | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income from continuing operations per common share - basic |
$ | (3.55 | ) | $ | (0.85 | ) | $ | (0.83 | ) | $ | (0.30 | ) | $ | 0.19 | ||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income from discontinued operations per common share - basic |
$ | 0.53 | $ | 0.76 | $ | 0.89 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income per common share - basic |
$ | (3.02 | ) | $ | (0.09 | ) | $ | 0.06 | $ | (0.30 | ) | $ | 0.19 | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income from continuing operations per common share - diluted |
$ | (3.55 | ) | $ | (0.85 | ) | $ | (0.81 | ) | $ | (0.30 | ) | $ | 0.19 | ||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income from discontinued operations per common share - diluted |
$ | 0.53 | $ | 0.76 | $ | 0.86 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income per common share - diluted |
$ | (3.02 | ) | $ | (0.09 | ) | $ | 0.05 | $ | (0.30 | ) | $ | 0.19 | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - basic |
70,150,492 | 61,031,265 | 57,678,360 | 58,236,745 | 57,611,231 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - diluted |
70,150,492 | 61,031,265 | 59,078,141 | 58,236,745 | 58,590,494 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance Sheet Data |
||||||||||||||||||||
Cash and cash equivalents |
$ | 5,608 | $ | 10,949 | $ | 22,381 | $ | 13,849 | $ | 12,614 | ||||||||||
Working capital |
31,673 | 31,422 | 51,997 | 120,615 | 130,353 | |||||||||||||||
Total assets |
70,276 | 98,490 | 99,308 | 367,955 | 379,844 | |||||||||||||||
Long-term obligations - less current portion |
— | — | — | 77,267 | 73,631 | |||||||||||||||
Redeemable preferred stock |
66,410 | 66,226 | 63,923 | 60,016 | 56,323 | |||||||||||||||
Total stockholders’ equity |
34,564 | 181,531 | 181,517 | 164,060 | 179,908 |
Item 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
• | Reduce Complexity. non-core assets and investing in core competencies. |
• | Drive Operational Excellence. |
• | Accelerate Growth. |
• | Change in peer group or performance of peer group companies; |
• | Change in the company’s markets and estimates of future operating performance; |
• | Change in the company’s estimated market cost of capital; and |
• | Change in implied control premiums related to acquisitions in the medical device industry. |
• | US 510(k) clearance of CervAlign TM Anterior Cervical Plate System |
• | US 510(k) clearance of Streamline MIS Spinal Fixation System |
• | US 510(k) clearances of Fortilink ® Interbody Fusion Device (IBF) with TETRAfuse® 3D Technology |
• | US Puros Customized Block Allograft Market Extension |
• | Canada Puros Customized Block Allograft Market Extension |
• | El Salvador Puros Allograft Registration (Bone) |
• | Peru Puros Allograft Registration (Dermis & Pericardium) |
• | Israel Puros Allograft Registration |
• | Greece CopiOs Particulate and Membrane registration |
• | Spain Puros Allograft Market Extension (Dowel & Blocks) |
• | France Puros Allograft Registration |
• | Europe Tutobone CE line extension |
• | Singapore Licenses for various allograft products |
• | Malaysia Coflex registration |
• | Taiwan Coflex-F+ registration |
Year Ended December 31, |
||||||||||||||||||||||||
2019 |
2018 |
2017 |
||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||
Statement of Operations Data: |
||||||||||||||||||||||||
Revenues |
$ | 117,423 | 100.0 | % | $ | 92,112 | 100.0 | % | $ | 90,281 | 100.0 | % | ||||||||||||
Costs of processing and distribution |
32,777 | 27.9 | 33,593 | 36.5 | 36,441 | 40.4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross profit |
84,646 | 72.1 | 58,519 | 63.5 | 53,840 | 59.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Expenses: |
||||||||||||||||||||||||
Marketing, general and administrative |
135,396 | 115.3 | 98,152 | 106.6 | 90,790 | 100.6 | ||||||||||||||||||
Research and development |
16,836 | 14.3 | 14,410 | 15.6 | 13,315 | 14.7 | ||||||||||||||||||
Severance and restructuring costs |
— | — | 773 | 0.8 | 8,522 | 9.4 | ||||||||||||||||||
Gain on acquisition contingency |
(76,033 | ) | (64.8 | ) | — | — | — | — | ||||||||||||||||
Executive transition costs |
— | — | — | — | 2,818 | 3.1 | ||||||||||||||||||
Asset impairment and abandonments |
97,341 | 82.9 | 5,070 | 5.5 | 442 | 0.5 | ||||||||||||||||||
Goodwill impairment |
140,003 | 119.2 | — | — | — | — | ||||||||||||||||||
Acquisition and integration expenses |
13,999 | 11.9 | 4,928 | 5.4 | 630 | 0.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
327,542 | 278.9 | 123,333 | 133.9 | 116,517 | 129.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating loss |
(242,896 | ) | (206.9 | ) | (64,814 | ) | (70.4 | ) | (62,677 | ) | (69.4 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other income (expense): |
||||||||||||||||||||||||
Interest income |
161 | 0.1 | 35 | 0.0 | 8 | 0.0 | ||||||||||||||||||
Foreign exchange (loss) gain |
(122 | ) | (0.1 | ) | (29 | ) | (0.0 | ) | 38 | 0.0 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other income - net |
39 | 0.0 | 6 | 0.0 | 46 | 0.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss before income tax (provision) benefit |
(242,857 | ) | (206.8 | ) | (64,808 | ) | (70.4 | ) | (62,631 | ) | (69.4 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income tax (provision) benefit |
(5,921 | ) | (5.0 | ) | 15,159 | 16.5 | 18,227 | 20.2 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net loss from continuing operations |
(248,778 | ) | (211.9 | ) | (49,649 | ) | (53.9 | ) | (44,404 | ) | (49.2 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Discontinued operations (Note 5) |
||||||||||||||||||||||||
Income from discontinued operations |
48,452 | 41.3 | 57,417 | 62.3 | 88,886 | 98.5 | ||||||||||||||||||
Income tax provision |
(11,316 | ) | (9.6 | ) | (10,891 | ) | (11.8 | ) | (37,576 | ) | (41.6 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income from discontinued operations |
37,136 | 31.6 | 46,526 | 50.5 | 51,310 | 56.8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net (loss) income |
(211,642 | ) | (180.2 | ) | (3,123 | ) | (3.4 | ) | 6,906 | 7.6 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Convertible preferred dividend |
— | — | (2,120 | ) | (2.3 | ) | (3,723 | ) | (4.1 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net (loss) income applicable to common shares |
$ | (211,642 | ) | (180.2 | ) | $ | (5,243 | ) | (5.7 | ) | $ | 3,183 | 3.5 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Net loss from continuing operations, as reported |
$ | (248,778 | ) | $ | (49,649 | ) | $ | (44,404 | ) | |||
Severance and restructuring costs |
— | 773 | 8,522 | |||||||||
Executive transition costs |
— | — | 2,818 | |||||||||
Gain on acquisition contingency |
(76,033 | ) | — | — | ||||||||
Asset impairment and abandonments |
97,341 | 5,070 | 442 | |||||||||
Goodwill Impairment |
140,003 | — | — | |||||||||
Inventory purchase price adjustment |
3,225 | 594 | — | |||||||||
Inventory write-off |
361 | 7,582 | — | |||||||||
Acquisition and integration expenses |
13,999 | 4,928 | 630 | |||||||||
Net change in valuation allowance |
48,115 | 3,093 | — | |||||||||
Tax effect on new tax legislation |
— | (650 | ) | 2,187 | ||||||||
Tax effect on other adjustments |
(45,907 | ) | (4,862 | ) | (3,185 | ) | ||||||
|
|
|
|
|
|
|||||||
Non-GAAP net (loss) income applicable to common shares, adjusted |
$ | (67,674 | ) | $ | (33,121 | ) | $ | (32,990 | ) | |||
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Gross profit - continuing operations, as reported |
$ | 84,646 | $ | 58,519 | $ | 53,840 | ||||||
Inventory write-off |
361 | 7,582 | — | |||||||||
Inventory purchase price adjustment |
3,225 | 594 | — | |||||||||
|
|
|
|
|
|
|||||||
Non-GAAP gross profit - continuing operations, adjusted |
$ | 88,232 | $ | 66,695 | $ | 53,840 | ||||||
|
|
|
|
|
|
Credit Facility |
Balance as of 12/31/2019 (000s) |
Financial Covenant |
Measurement Period |
Financial Covenant Required |
Financial Covenant Metric as of 12/31/2019 |
Financial Covenant Metric as of 3/31/2020 |
||||||||||||||
JPM Revolver |
$ | 71,000 | Fixed Charge Coverage Ratio |
Quarterly | >1.00:1.00 | 1.88:1.00 | 1.37:1.00 | |||||||||||||
Ares Term Loan |
$ | 104,406 | Fixed Charge Coverage Ratio |
Quarterly | >0.91:1.00 | 1.88:1.00 | 1.37:1.00 | |||||||||||||
Ares Term Loan |
$ | 104,406 | Total Net Leverage Ratio* |
Quarterly | <5.00:1.00 | 4.96:1.00 | 5.51:1.00 |
* |
As described in the Note 18 - Short and Long-Term Obligations - to the consolidated financial statements, the Ares Term Loan agreement steps down the original 9.00 : 1.00 Total Net Leverage Ratio each quarter, ending at a 3.50:1.00 ratio on September 30, 2021. The required ratio at December 31, 2019 was 5.00:1.00. At March 31, 2020 and June 30, 2020, the required ratio is 5.75:1.00 per the terms of the 2019 Credit Agreement. |
Outstanding Balance |
Available Credit |
|||||||
(In thousands) |
||||||||
Ares Term Loan |
$ | 104,406 | ||||||
JPM Facility |
71,000 | $ | 9,000 | |||||
Less unamortized debt issuance costs |
(1,229 | ) | ||||||
|
|
|||||||
Total |
$ | 174,177 | ||||||
|
|
Contractual Obligations Due by Period |
||||||||||||||||||||
Continuing operations |
Total |
Less than 1 Year |
1-3 Years |
4-5 Years |
More than 5 Years |
|||||||||||||||
(In thousands) |
||||||||||||||||||||
Operating lease obligations |
$ | 2,824 | $ | 1,064 | $ | 725 | $ | 319 | $ | 716 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Item 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
Item 8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
Item 15. |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
Page |
||||
Consolidated Financial Statements of Surgalign Holdings, Inc. |
||||
Reports of Independent Registered Public Accounting Firm |
39 | |||
Consolidated Balance Sheets—December 31, 2019 and 2018 |
41 | |||
Consolidated Statements of Comprehensive (Loss) Income —Years Ended December 31, 2019, 2018 and 2017 |
42 | |||
Consolidated Statements of Stockholders’ Equity—Years Ended December 31, 2019, 2018 and 2017 |
43 | |||
Consolidated Statements of Cash Flows—Years Ended December 31, 2019, 2018 and 2017 |
44 | |||
Notes to Consolidated Financial Statements—Years Ended December 31, 2019, 2018 and 2017 |
45 | |||
Schedule II – Valuation and Qualifying Accounts |
102 |
• | The Company did not maintain an effective control environment based on the criteria established in the COSO framework and identified deficiencies in the principles associated with the control environment of the COSO framework. Specifically, control deficiencies constituted material weaknesses, either individually or in the aggregate, relating to: (i) appropriate organizational structure, reporting lines, and authority and responsibilities in pursuit of objectives, (ii) the Company’s commitment to attract, develop, and retain competent individuals, and (iii) holding individuals accountable for their internal control related responsibilities. |
• | The Company did not design and implement an effective risk assessment based on the criteria established in the COSO framework, and identified deficiencies in the principles associated with the risk assessment component of the COSO framework. Specifically, control deficiencies constituted material weaknesses, either individually or in the aggregate, relating to: (i) identifying, assessing, and communicating appropriate objectives, (ii) identifying and analyzing risks to achieve these objectives, (iii) considering the potential for fraud in assessing risks, and (iv) identifying and assessing changes in the business that could impact the Company’s system of internal controls. |
• | The Company did not design and implement effective control activities based on the criteria established in the COSO framework, and identified deficiencies in the principles associated with the control activities component of the COSO framework. Specifically, control deficiencies constituted material weaknesses, either individually or in the aggregate, relating to: (i) selecting and developing control activities and information technology that contribute to the mitigation of risks and support achievement of objectives and (ii) deploying control activities through policies that establish what is expected and procedures that put policies into action. |
• | The Company did not consistently generate or provide adequate quality supporting information and communication based on the criteria established in the COSO framework, and identified deficiencies in the principles associated with the information and communication component of the COSO framework. Specifically, control deficiencies constituted material weaknesses, either individually or in the aggregate, relating to: (i) obtaining, generating, and using relevant quality information to support the function of internal control, and (ii) communicating accurate information internally and externally, including providing information pursuant to objectives, responsibilities, and functions of internal control. |
• | The Company did not design and implement effective monitoring activities based on the criteria established in the COSO framework, and identified deficiencies in the principles associated with the monitoring component of the COSO framework. Specifically, control deficiencies constituted material weaknesses, either individually or in the aggregate, relating to: (i) selecting, developing, and performing ongoing evaluation to ascertain whether the components of internal controls are present and functioning, and (ii) evaluating and communicating internal control deficiencies in a timely manner to those parties responsible for taking corrective action. |
December 31, |
||||||||
2019 |
2018 |
|||||||
Assets |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable - less allowances of $ |
||||||||
Inventories - net |
||||||||
Prepaid and other current assets |
||||||||
Current assets of discontinued operations |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Non-current inventories - net |
||||||||
Property, plant and equipment - net |
||||||||
Deferred tax assets - net |
||||||||
Goodwill |
||||||||
Other intangible assets - net |
||||||||
Other assets - net |
||||||||
Non-current assets of discontinued operations |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities and Stockholders’ Equity |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Accrued income taxes |
||||||||
Current liabilities of discontinued operations |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Deferred tax liability |
— | — | ||||||
Acquisition contingencies |
||||||||
Other long-term liabilities |
||||||||
Non-current liabilities of discontinued operations |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
Commitments and contingencies (Note 26 ) |
||||||||
Preferred stock Series A, $ par value: |
||||||||
Stockholders’ equity: |
||||||||
Common stock, $ par value: |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Accumulated deficit |
( |
) | ( |
) | ||||
Less treasury stock, |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Revenues |
$ | $ | $ | |||||||||
Costs of processing and distribution |
||||||||||||
|
|
|
|
|
|
|||||||
Gross profit |
||||||||||||
|
|
|
|
|
|
|||||||
Expenses: |
||||||||||||
Marketing, general and administrative |
||||||||||||
Research and development |
||||||||||||
Severance and restructuring costs |
||||||||||||
Gain on acquisition contingency |
( |
) | ||||||||||
Executive transition costs |
||||||||||||
Asset impairment and abandonments |
||||||||||||
Goodwill impairment |
||||||||||||
Acquisition and integration expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Operating loss |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Other income (expense): |
||||||||||||
Interest income |
||||||||||||
Foreign exchange (loss) gain |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total other income - net |
||||||||||||
|
|
|
|
|
|
|||||||
Loss |
( |
) | ( |
) | ( |
) | ||||||
Income tax (provision) benefit |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net loss from continuing operations |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Discontinued operations (Note 5 ) |
||||||||||||
Income from operations of discontinued operations |
||||||||||||
Income tax provision |
( |
) | ( |
) | ( |
) | ||||||
Net income from discontinued operations |
||||||||||||
|
|
|
|
|
|
|||||||
Net (loss) income |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Convertible preferred dividend |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net (loss) income applicable to common shares |
$ | ( |
) | $ | ( |
) | $ | |||||
|
|
|
|
|
|
|||||||
Other comprehensive (loss) income: |
||||||||||||
Unrealized foreign currency translation ( loss) gain |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Comprehensive (loss) income |
$ | ( |
) | $ | ( |
) | $ | |||||
|
|
|
|
|
|
|||||||
Net loss from continuing operations per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
|
|
|
|
|
|
|||||||
Net income from discontinued operations per common share - basic |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Net (loss) income per common share - basic |
$ | ( |
) | $ | ( |
) | $ | |||||
|
|
|
|
|
|
|||||||
Net loss from continuing operations per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
|
|
|
|
|
|
|||||||
Net income from discontinued operations per common share - diluted |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Net (loss) income per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | |||||
|
|
|
|
|
|
|||||||
Weighted average shares outstanding - basic |
||||||||||||
|
|
|
|
|
|
|||||||
Weighted average shares outstanding - diluted |
||||||||||||
|
|
|
|
|
|
Common Stock |
Additional Paid- In Capital |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Treasury Stock |
Total |
|||||||||||||||||||
Balance, January 1, 2017 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | — | ||||||||||||||||||||
Exercise of common stock options |
— | — | — | |||||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Purchase of treasury stock |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Amortization of preferred stock Series A issuance costs |
— | ( |
) | — | — | — | ( |
) | ||||||||||||||||
Preferred stock Series A dividend |
— | ( |
) | — | — | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2017 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||
Accumulated effect of adoption of the revenue recognition standard |
— | — | — | — | ||||||||||||||||||||
Net loss |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Foreign currency translation adjustment |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Exercise of common stock options |
— | — | — | |||||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Purchase of treasury stock |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Amortization of preferred stock Series A issuance costs |
— | ( |
) | — | — | — | ( |
) | ||||||||||||||||
Preferred stock Series A dividend |
— | ( |
) | — | — | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2018 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||
Net loss |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Foreign currency translation adjustment |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Exercise of common stock options |
— | — | — | — | ||||||||||||||||||||
Equity instruments issued in connection with Paradigm Spine acquisition - net of fees |
— | — | — | |||||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Purchase of treasury stock |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Amortization of preferred stock Series A issuance costs |
— | ( |
) | — | — | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2019 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net (loss) income |
$ | ( |
) | $ | ( |
) | $ | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization expense |
||||||||||||
Provision for bad debts and product returns |
||||||||||||
Provision for inventory write-downs |
||||||||||||
Revenue recognized due to change in deferred revenue |
( |
) | ( |
) | ( |
) | ||||||
Deferred income tax provision (benefit) |
( |
) | ||||||||||
Stock-based compensation |
||||||||||||
Asset impairment and abandonments |
||||||||||||
Cardiothoracic closure business divestiture contingency consideration |
— | ( |
) | ( |
) | |||||||
Goodwill impairment |
— | — | ||||||||||
Gain on acquisition contingency |
( |
) | — | — | ||||||||
Paid in kind interest expense |
— | — | ||||||||||
Other |
||||||||||||
Change in assets and liabilities: |
||||||||||||
Accounts receivable |
( |
) | ( |
) | ||||||||
Inventories |
( |
) | ( |
) | ||||||||
Accounts payable |
( |
) | ( |
) | ||||||||
Accrued expenses |
( |
) | ||||||||||
Deferred revenue |
||||||||||||
Other operating assets and liabilities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net cash (used in) provided by operating activities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||
Patent and acquired intangible asset costs |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from sale of building |
— | — | ||||||||||
Acquisition of Zyga Technology |
— | ( |
) | — | ||||||||
Acquisition of Paradigm Spine |
( |
) | — | — | ||||||||
Cardiothoracic closure business divestiture |
— | |||||||||||
|
|
|
|
|
|
|||||||
Net cash (used in) provided by investing activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from exercise of common stock options |
||||||||||||
Proceeds from long-term obligations |
||||||||||||
Payments of debt issuance costs |
( |
) | — | — | ||||||||
Payments on long-term obligations |
( |
) | ( |
) | ( |
) | ||||||
Payments for treasury stock |
( |
) | ( |
) | ( |
) | ||||||
Other financing activities |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net (decrease) increase in cash and cash equivalents |
( |
) | ( |
) | ||||||||
Cash and cash equivalents, beginning of period |
||||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, end of period |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Supplemental cash flow disclosure: |
||||||||||||
Cash paid for interest |
$ | $ | $ | |||||||||
Cash paid for income taxes, net of refunds |
( |
) | ( |
) | ||||||||
Non-cash acquisition of property, plant and equipment |
||||||||||||
Receivable for executive stock option exercise |
— | — | ||||||||||
Stock-based compensation related to sale of CT business |
— | — | ||||||||||
Increase in accrual for dividend payable |
— |
Buildings |
||||
Building improvements and leasehold improvements |
||||
Processing equipment |
||||
Office equipment, furniture and fixtures |
||||
Computer hardware and software |
||||
Surgical instruments |
• |
Change in peer group or performance of peer group companies |
• |
Change in the Company’s markets and estimates of future operating performance |
• |
Change in the Company’s estimated market cost of capital |
• |
Change in implied control premiums related to acquisitions in the medical device industry |
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Weighted average basic shares |
||||||||||||
Effect of dilutive securities: |
||||||||||||
Stock options |
||||||||||||
RSA and RSU |
||||||||||||
Weighted average diluted shares |
||||||||||||
For the Year Ended December 31, 2019 |
||||
Operating lease cost |
$ |
|||
Short-term operating lease cost |
||||
Total operating lease cost |
||||
For the Year Ended December 31, 2019 |
||||
Cash paid for amounts included in the measurement of lease liabilities |
$ |
|||
ROU assets obtained in exchange for lease obligations |
Balance Sheet Classification |
Balance at December 31, 2019 |
|||||
Assets: |
||||||
Right-of-use |
Other assets - net |
$ | ||||
Liabilities: |
||||||
Current |
Accrued expenses |
$ | ||||
Noncurrent |
Other long-term liabilities |
|||||
Total operating lease liabilities |
$ | |||||
Maturity of Operating Lease Liabilities |
Balance at December 31, 2019 |
|||
2020 |
$ |
|||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 and beyond |
||||
Total future minimum lease payments |
||||
Less imputed interest |
( |
) | ||
Total operating lease liabilities |
$ | |||
Maturity of Operating Lease Liabilities |
Balance at December 31, 2018 |
|||
2019 |
$ |
|||
2020 |
||||
2021 |
||||
2022 |
||||
2023 |
||||
2024 and beyond |
||||
Total future minimum lease payments |
$ | |||
December 31, |
||||||||
2019 |
2018 |
|||||||
Carrying amounts of the major classes of assets included in discontinued operations: |
||||||||
Accounts receivable - net |
$ |
$ |
||||||
Inventories - net |
||||||||
Prepaid and other current assets |
||||||||
Total current assets |
||||||||
Property, plant and equipment - net |
||||||||
Deferred tax assets - net |
||||||||
Goodwill |
||||||||
Other intangible assets - net |
||||||||
Other assets - net |
||||||||
Total noncurrent assets |
||||||||
Total assets of discontinued operations |
$ |
$ |
||||||
Carrying amounts of the major classes of liabilities included in discontinued operations: |
||||||||
Accounts payable |
$ |
$ |
||||||
Accrued expenses |
||||||||
Current portion of deferred revenue |
||||||||
Current portion of long-term obligations |
||||||||
Total current liabilities |
||||||||
Long-term obligations - less current portion |
||||||||
Other long-term liabilities |
||||||||
Deferred revenue |
||||||||
Total noncurrent liabilities |
||||||||
Total liabilities of discontinued operations |
$ |
$ |
||||||
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Major classes of line items constituting net income from discontinued operations: |
||||||||||||
Revenues |
$ | $ | $ |
|||||||||
Costs of processing and distribution |
||||||||||||
Gross profit |
||||||||||||
Expenses: |
||||||||||||
Marketing, general and administrative |
||||||||||||
Severance and restructuring costs |
||||||||||||
Asset impairment and abandonments |
— | — | ||||||||||
Acquisition and integration expenses |
— | |||||||||||
Cardiothoracic closure business divestiture contingency consideration |
— | ( |
) | — | ||||||||
Gain on cardiothoracic closure business divestiture |
— | — | ( |
) | ||||||||
Total operating expenses (income) |
( |
) | ||||||||||
Operating income |
||||||||||||
Other (expense) income: |
||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ||||||
Loss on extinguishment of debt |
— | ( |
) | — | ||||||||
Foreign exchange (loss) gain |
( |
) | ( |
) | ||||||||
Total other expense - net |
( |
) | ( |
) | ( |
) | ||||||
Income from operations of discontinued operations |
||||||||||||
Income tax provision |
( |
) |
( |
) | ( |
) | ||||||
Net income from discontinued operations |
$ |
$ |
$ |
|||||||||
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Significant operating non-cash reconciliation items: |
||||||||||||
Depreciation and amortization expense |
$ |
$ |
$ |
|||||||||
Provision for bad debts and product returns |
$ |
$ |
$ |
|||||||||
Provision for inventory write-downs |
$ |
$ |
$ |
|||||||||
Revenue recognized due to change in deferred revenue |
$ |
( |
) | $ |
( |
) | $ |
( |
) | |||
Deferred income tax (benefit) provision |
$ |
( |
) | $ |
$ |
|||||||
Stock-based compensation |
$ |
$ |
$ |
|||||||||
Paid in kind interest expense |
$ |
$ |
— | $ |
— | |||||||
Cardiothoracic closure business divestiture contingency consideration |
$ |
— | $ |
( |
) | $ |
( |
) | ||||
Significant investing items: |
||||||||||||
Purchases of property, plant and equipment |
$ |
( |
) | $ |
( |
) | $ |
( |
) | |||
Patent and acquired intangible asset costs |
$ |
( |
) | $ |
( |
) | $ |
( |
) | |||
Proceeds from cardiothoracic closure business divestiture |
$ |
$ |
$ |
Year Ended |
||||||||||||
December 31, 2019 |
December 31, 2018 |
December 31, 2017 |
||||||||||
Revenues: |
||||||||||||
Domestic |
$ | $ | $ | |||||||||
International |
||||||||||||
Total revenues from contracts with customers |
$ | $ | $ |
Cash proceeds from second lien credit agreement |
$ | |||
Fair market value of securities issued |
||||
Fair market value of contingent earnout |
||||
|
|
|||
Total purchase price |
$ | |||
|
|
|||
|
|
Balance at March 8, 2019 |
||||
Cash |
$ | |||
Accounts receivable |
||||
Inventories |
||||
Other current assets |
||||
Property, plant and equipment |
||||
Other non-current assets |
||||
Current liabilities |
( |
) | ||
Lease liabilities |
( |
) | ||
|
|
|||
Net tangible assets acquired |
||||
Other intangible assets |
||||
Goodwill |
||||
|
|
|||
Total net assets acquired |
$ | |||
|
|
• | Paradigm will strengthen the Company’s spine portfolio with the addition of the coflex ® Interlaminar Stabilization® device. Coflex® is a differentiated and minimally invasive motion preserving stabilization implant that is FDA PMA-approved for the treatment of moderate to severe lumbar spinal stenosis (“LSS”) in conjunction with decompression. |
• | Coflex ® allows the Company to provide surgeons who treat patients with moderate to severe LSS with a PMA-approved device supported by more than 12 years of clinical data. |
For the Year Ended December 31, |
||||||||
2019 |
2018 |
|||||||
Revenues |
$ | $ | ||||||
Net loss |
( |
) | ( |
) |
Cash proceeds from revolving credit facility |
$ | |||
Cash from RTI Surgical |
||||
|
|
|||
Total purchase price |
$ | |||
|
|
Inventories |
$ | |||
Accounts receivable |
||||
Other current assets |
||||
Property, plant and equipment |
||||
Other assets |
||||
Deferred tax assets |
||||
Current liabilities |
( |
) | ||
Acquisition contingencies |
( |
) | ||
|
|
|||
Net tangible assets acquired |
||||
Other intangible assets |
||||
Goodwill |
||||
|
|
|||
Total net assets acquired |
$ | |||
|
|
• | Zyga’s innovative minimally invasive treatment should accentuate our spine portfolio and opens significant opportunities to accelerate our Spine-focused expansion strategy. |
• | Zyga should leverage the core competencies of our Spine franchise by pursuing niche differentiated products, to gain scale and customer retention and support portfolio pull-through. |
For the Year Ended December 31, 2018 |
||||
Revenues |
$ | |||
Net loss |
( |
) |
Proceeds from cardiothoracic closure business divestiture |
$ | |||
Inventories—net |
( |
) | ||
Property, plant and equipment—net |
( |
) | ||
Goodwill |
( |
) | ||
Other intangible assets—net |
( |
) | ||
Cardiothoracic closure business divestiture expenses |
( |
) | ||
|
|
|||
Gain on cardiothoracic closure business divestiture |
$ | |||
|
|
Number of Options |
Weighted Average Exercise Price |
Weighted Average Remaining Contractual Life (Years) |
Aggregate Intrinsic Value |
|||||||||||||
Outstanding at January 1, 2019 |
$ | |||||||||||||||
Granted |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or expired |
( |
) | ||||||||||||||
|
|
|
|
|||||||||||||
Outstanding at December 31, 2019 |
$ | |
$ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Vested or expected to vest at December 31, 2019 |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Exercisable at December 31, 2019 |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Available for grant at December 31, 2019 |
||||||||||||||||
|
|
For the Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Weighted average fair value of stock options granted |
$ | $ | $ | |||||||||
Aggregate intrinsic value of stock options exercised |
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Expected term (years) |
||||||||||||
Risk free interest rate |
% | % | % | |||||||||
Volatility factor |
% | % | % | |||||||||
Dividend yield |
Number of Shares |
Weighted Average Grant Date Fair Value |
|||||||
Unvested at January 1, 2019 |
$ | |||||||
|
||||||||
|
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Unvested at December 31, 2019 |
$ | |||||||
|
|
|
|
Number of Shares |
Weighted Average Grant Date Fair |
|||||||
Unvested at January 1, 2019 |
— |
$ | — | |||||
Granted |
||||||||
Vested |
— |
— | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Unvested at December 31, 2019 |
$ | |||||||
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Stock-based compensation: |
||||||||||||
Costs of processing and distribution |
$ | $ | $ | |||||||||
Marketing, general and administrative |
||||||||||||
Research and development |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
$ |
$ |
$ | |||||||||
|
|
|
|
|
|
December 31, |
||||||||
2019 |
2018 |
|||||||
Income tax receivable |
$ |
$ |
||||||
Prepaid expenses |
||||||||
Other |
||||||||
$ | $ | |||||||
December 31, |
||||||||
2019 |
2018 |
|||||||
Land |
$ | $ | ||||||
Buildings and improvements |
— | |||||||
Processing equipment |
||||||||
Surgical instruments |
||||||||
Office equipment, furniture and fixtures |
||||||||
Computer equipment and software |
||||||||
Construction in process |
— | |||||||
Less accumulated depreciation |
— | ( |
) | |||||
$ | |
$ | ||||||
Year Ended December 31, |
||||||||
2019 |
2018 |
|||||||
Balance at January 1 |
$ | $ | ||||||
Goodwill additions related to acquisitions |
||||||||
Goodwill impairment |
( |
) | — | |||||
|
|
|
|
|||||
Balance at December 31 |
$ | — | $ | |||||
|
|
|
|
December 31, 2018 |
||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
||||||||||
Patents |
$ |
$ |
$ |
|||||||||
Acquired licensing rights |
||||||||||||
Marketing and procurement intangible assets |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
Year Ended December 31, 2019 |
||||||||
Impairment |
Fair Value |
|||||||
Property, plant and equipment - net |
$ |
$ |
— | |||||
Other intangible assets - net |
— | |||||||
Other assets - net |
— | |||||||
|
|
|
|
|||||
$ | $ | — | ||||||
|
|
|
|
Year Ended December 31, 2018 |
||||||||
Impairment |
Fair Value |
|||||||
Property, plant and equipment - net |
$ |
$ |
— | |||||
Other intangible assets - net |
— | |||||||
|
|
|
|
|||||
$ | $ | — | ||||||
|
|
|
|
December 31, |
||||||||
2019 |
2018 |
|||||||
Accrued compensation |
$ | $ | ||||||
Accrued severance and restructuring costs |
||||||||
Accrued distributor commissions |
||||||||
Accrued business development expenses |
— | |||||||
Accrued leases |
— | |||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
December 31, |
||||||||
2019 |
2018 |
|||||||
Ares Term L oan |
$ | $ | — | |||||
JPM F acility |
||||||||
Less unamortized debt issuance costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total |
||||||||
Less current portion |
— | |||||||
|
|
|
|
|||||
Long-term portion |
$ | — | $ | |||||
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Pre-tax income: |
||||||||||||
Domestic (U.S., state and local) |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Foreign |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total pre-tax income |
$ |
( |
) | $ |
( |
) | $ |
( |
) | |||
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Current: |
||||||||||||
Federal |
$ | $ | $ |
( |
) | |||||||
State |
( |
) | ( |
) | ( |
) | ||||||
International |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Total current |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Deferred: |
||||||||||||
Federal |
( |
) | ||||||||||
State |
( |
) | ( |
) | ||||||||
International |
( |
) | — | |||||||||
|
|
|
|
|
|
|||||||
Total deferred |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total income tax benefit (provision) |
$ |
( |
) | $ |
$ |
|||||||
|
|
|
|
|
|
December 31, 2019 |
December 31, 2018 |
|||||||||||||||
Deferred Income Tax |
Deferred Income Tax |
|||||||||||||||
Assets |
Liabilities |
Assets |
Liabilities |
|||||||||||||
Accounts receivable |
$ | $ | — | $ | $ | — | ||||||||||
Accrued liabilities |
— | — | ||||||||||||||
Deferred compensation |
— | — | ||||||||||||||
Fixed assets and intangibles |
— | — | ( |
) | ||||||||||||
Inventory |
— | — | ||||||||||||||
Net operating losses |
— | — | ||||||||||||||
Revenue |
— | ( |
) | — | ||||||||||||
Tax credits |
— | — | ||||||||||||||
Lease Liability |
— | — | — | |||||||||||||
Right of Use Asset |
— | ( |
) | — | — | |||||||||||
Other |
— | ( |
) | — | — | |||||||||||
Valuation allowance |
( |
) | — | ( |
) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | ( |
) | $ |
$ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
• | Reduction of the U.S. federal corporate tax rate from |
• | Requiring a transition tax on certain unrepatriated earnings of foreign subsidiaries |
• | Bonus depreciation that will allow for full expensing of qualified property |
• | Elimination of the corporate alternative minimum tax |
• | The repeal of the domestic production activity deduction |
• | Limitations on the deductibility of certain executive compensation |
• | Limitations on net operating losses generated after December 31, 2017 |
For the Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Opening balance |
$ | $ | $ | |||||||||
Reductions based on tax positions related to the current year |
— | — | — | |||||||||
Additions for tax positions of prior years |
— | — | — | |||||||||
Reductions for tax positions of prior years |
— | ( |
) | — | ||||||||
Reductions for expiration of statute of limitations |
— | ( |
) | — | ||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
|
2018 |
|
2017 |
||||||||
Statutory federal rate |
% | |
% | |
% | |||||||
State income taxes—net of federal tax benefit |
( |
%) | |
% | |
% | ||||||
Foreign rate differential |
% |
|
( |
%) | |
% | ||||||
Acquisition expenses |
% |
|
( |
%) | |
% | ||||||
Gain on acquisition contingency |
% | |
% |
|
% | |||||||
Goodwill impairment disposal |
( |
%) | |
% |
|
% | ||||||
Life insurance |
% |
|
( |
%) | |
% | ||||||
Officer compensation |
% |
|
( |
%) | |
( |
%) | |||||
Stock-based compensation |
% |
|
( |
%) | |
( |
%) | |||||
Tax credits |
% | |
% | |
% | |||||||
Tax legislation |
% |
|
% | |
( |
%) | ||||||
Valuation allowances |
( |
%) | |
% | |
( |
%) | |||||
Uncertain tax positionsı |
% |
|
% | |
% | |||||||
Other reconciling items, net |
( |
%) | |
( |
%) | |
( |
%) | ||||
|
|
|
|
|
|
|||||||
Effective tax rate |
( |
%) | |
% | |
% | ||||||
|
|
|
|
|
|
Preferred Stock Liquidation Value |
Preferred Stock Issuance Costs |
Net Total |
||||||||||
Balance at January 1, 2017 |
$ |
$ |
( |
) | $ |
|||||||
Accrued dividend |
— | |||||||||||
Amortization of preferred stock issuance costs |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2017 |
( |
) | ||||||||||
Accrued dividend |
— | |||||||||||
Amortization of preferred stock issuance costs |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2018 |
( |
) | ||||||||||
Accrued dividend |
— | — | — | |||||||||
Amortization of preferred stock issuance costs |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2019 |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
Accrued executive transition costs at January 1, 2017 |
$ | |||
Executive transition costs accrued in 2017 |
||||
Stock-based compensation |
( |
) | ||
Cash payments |
( |
) | ||
|
|
|||
Accrued executive transition costs at December 31, 2017 |
||||
|
|
|||
Executive transition costs accrued in 2018 |
— | |||
Cash payments |
( |
) | ||
|
|
|||
Accrued executive transition costs at December 31, 2018 |
||||
|
|
|||
Executive transition costs accrued in 2019 |
— | |||
Cash payments |
( |
) | ||
|
|
|||
Accrued executive transition costs at December 31, 2019 |
$ | — | ||
|
|
Accrued severance and restructuring charges at January 1, 2017 |
$ | |||
Severance and restructuring expenses accrued in 2017 |
||||
Severance and restructuring cash payments |
( |
) | ||
Stock based compensation |
( |
) | ||
Accrued severance and restructuring charges at December 31, 2017 |
||||
Severance and restructuring expenses accrued in 2018 |
||||
Severance and restructuring cash payments |
( |
) | ||
Accrued severance and restructuring charges at December 31, 2018 |
||||
Severance and restructuring expenses accrued in 2019 |
||||
Severance and restructuring cash payments |
( |
) | ||
Accrued severance and restructuring charges at December 31, 2019 |
$ | |||
For the Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Percent of revenues derived from: |
||||||||||||
Distributor |
||||||||||||
Zimmer |
% | % | % | |||||||||
Medtronic |
% | % | % | |||||||||
Synthes |
% | % | % |
Year Ended December 31, 2019 |
||||||||||||||||
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||||||
Revenues |
$ | $ | $ | $ | ||||||||||||
Gross profit |
||||||||||||||||
Loss from continuing operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Income from discontinued operations |
||||||||||||||||
Net (loss) income |
( |
) | ( |
) | ( |
) | ||||||||||
Net loss from continuing operations per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Net loss from continuing operations per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Net income from discontinued operations per common share - basic |
$ |
$ |
$ |
$ |
||||||||||||
Net income from discontinued operations per common share - diluted |
$ |
$ |
$ |
$ |
||||||||||||
Net (loss) income per common share - basic |
$ |
( |
) | $ |
$ |
( |
) | $ |
( |
) | ||||||
Net (loss) income per common share - diluted |
$ | ( |
) | $ | $ | ( |
) | $ | ( |
) | ||||||
Year Ended December 31, 2018 |
||||||||||||||||
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||||||
Revenues |
|
$ |
|
$ | $ | |||||||||||
Gross profit |
||||||||||||||||
Loss from continuing operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Income from discontinued operations |
||||||||||||||||
Net (loss) income |
( |
) | ( |
) | ||||||||||||
Net loss from continuing operations per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | ( |
) | |||||
Net loss from continuing operations per common share - diluted |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
( |
) | |||||
Net income from discontinued operations per common share - basic |
$ |
$ |
$ |
|||||||||||||
Net income from discontinued operations per common share - diluted |
$ |
$ |
$ | $ |
||||||||||||
Net (loss) income per common share - basic |
$ | ( |
) | $ | ( |
) | $ | |||||||||
Net (loss) income per common share - diluted |
$ |
( |
) | $ |
( |
) | $ |
|||||||||
a. | Revenue —As noted above, the Company has concluded that in some instances revenue for certain invoices should have been recognized at a later date than when originally recognized. The Company identified revenue from certain customer orders that were shipped early to customers without obtaining authorized approval, and thus was recognized in an incorrect period. There were also instances in which the Company could not locate evidence that the OEM customers had requested or approved the shipments and therefore concluded revenue related to these shipments were an error. Correction of these errors, when including the rollover effect from the immediately preceding periods, increased revenue by $ |
b. | Costs of processing and distribution —Based on the corrections to the above revenue errors, when including the rollover effect from the immediately preceding periods, costs of processing and distribution increased by $ |
c. | Accounts receivable —As a result of the errors corrections above, accounts receivable increased by $ |
d. | Inventories, net —As a result of the errors corrections above, net inventories decreased by $ |
e. | Deferred tax assets —As a result of the income tax impact of the errors corrections above, deferred tax assets decreased by $ |
a. | Costs of processing and distribution —Based on the corrections to the inventory valuation and Paradigm purchase accounting, costs of processing and distribution increased by $ |
b. | Marketing, general and administrative —Based on the corrections to the amortization related to the other intangible assets’ valuation and Paradigm purchase accounting, marketing, general and administrative expenses increased by $September 30, 2019. |
c. | Current inventories, net —Based on the corrections to the inventory valuation and Paradigm purchase accounting, net current inventories increased by $1.2 million in quarter ended March 31, 2019, and decreased by $12.6 million in the quarters ended June 30, and September 30, 2019. |
d. | Non-current inventories, net non-current inventories increased by $ |
e. | Deferred tax assets —Based on the corrections to the Paradigm purchase accounting deferred tax assets increased by $ |
f. | Goodwill —Based on the corrections to the Paradigm purchase accounting, goodwill decreased by $ |
g. | Other intangible assets—net —Based on the corrections to the Paradigm purchase accounting, net other intangible assets increased by $ |
h. | Acquisition contingencies —Based on the corrections to the contingent liability valuation and Paradigm purchase accounting, acquisition contingencies decreased by $ |
a. | Marketing, general and administrative —The Company corrected certain errors which decreased marketing, general and administrative expenses by $ |
b. | Accounts receivable —The Company corrected certain errors which decreased accounts receivable by $ |
c. | Prepaid and other current assets —The Company corrected certain errors which decreased prepaid and other current assets by $ |
d. | Deferred tax assets—net —The Company corrected certain errors which increased net deferred tax assets by $ |
e. | Property, plant & equipment —The Company corrected certain errors which increased property, plant & equipment by $ |
f. |
Other intangible assets—net —The Company corrected certain errors which decreased net other intangible assets by $ |
g. |
Other assets—net —The Company corrected certain errors which decreased net other assets by $ |
h. |
Accounts payable —The Company corrected certain errors which decreased accounts payable by $ |
i. |
Accrued expenses —The Company corrected certain errors which increased accrued expenses by $ |
j. | Payments for treasury stock —The Company corrected certain errors which reclassified operating cash flows to financing cash flows for purchases of treasury stock by $ |
As of March 31, 2019 |
||||||||||||
As Previously Reported |
Adjustments |
As Restated |
||||||||||
Assets |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | $ | — |
$ | ||||||||
Accounts receivable - net |
||||||||||||
Inventories - net |
||||||||||||
Prepaid and other current assets |
( |
) | ||||||||||
Total current assets |
||||||||||||
Non-current inventories- net |
— |
|||||||||||
Property, plant and equipment - net |
||||||||||||
Deferred tax assets - net |
||||||||||||
Goodwill |
( |
) | ||||||||||
Other intangible assets - net |
||||||||||||
Other assets - net |
( |
) | ||||||||||
Total assets |
$ | $ | ( |
) | $ | |||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Current Liabilities: |
||||||||||||
Accounts payable |
$ | $ | ( |
) | $ | |||||||
Accrued expenses |
||||||||||||
Current portion of short and long-term obligations |
— |
|||||||||||
Total current liabilities |
||||||||||||
Long-term obligations - less current portion |
— |
|||||||||||
Acquisition contingencies |
( |
) | ||||||||||
Other long-term liabilities |
— |
|||||||||||
Deferred revenue |
— |
|||||||||||
Total liabilities |
( |
) | ||||||||||
Preferred stock Series A, $ par value: outstanding |
— |
|||||||||||
Stockholders’ equity: |
||||||||||||
Common stock, $ par value: |
— |
|||||||||||
Additional paid-in capital |
— |
|||||||||||
Accumulated other comprehensive loss |
( |
) | — |
( |
) | |||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||
Less treasury stock, |
( |
) | — |
( |
) | |||||||
Total stockholders’ equity |
( |
) | ||||||||||
Total liabilities and stockholders’ equity |
$ | $ | ( |
) | $ | |||||||
As of June 30, 2019 | ||||||||||||
As Previously Reported |
Adjustments |
As Restated |
||||||||||
Assets |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | $ | — |
$ | ||||||||
Accounts receivable - net |
( |
) | ||||||||||
Inventories - net |
( |
) | ||||||||||
Prepaid and other current assets |
( |
) | ||||||||||
Total current assets |
( |
) | ||||||||||
Non-current inventories - net |
( |
) | ||||||||||
Property, plant and equipment - net |
||||||||||||
Deferred tax assets - net |
||||||||||||
Goodwill |
( |
) | ||||||||||
Other intangible assets - net |
||||||||||||
Other assets - net |
( |
) | ||||||||||
Total assets |
$ | $ | ( |
) | $ | |||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Current Liabilities: |
||||||||||||
Accounts payable |
$ | $ | ( |
) | $ | |||||||
Accrued expenses |
||||||||||||
Current portion of short and long-term obligations |
— |
|||||||||||
Total current liabilities |
||||||||||||
Long-term obligations - less current portion |
— |
|||||||||||
Acquisition contingencies |
( |
) | ||||||||||
Other long-term liabilities |
— |
|||||||||||
Deferred revenue |
— |
|||||||||||
Total liabilities |
( |
) | ||||||||||
Preferred stock Series A, $ par value: |
— |
|||||||||||
Stockholders’ equity: |
||||||||||||
Common stock, $ par value: |
— |
|||||||||||
Additional paid-in capital |
— |
|||||||||||
Accumulated other comprehensive loss |
( |
) | — | ( |
) | |||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||
Less treasury stock, |
( |
) | — |
( |
) | |||||||
Total stockholders’ equity |
( |
) | ||||||||||
Total liabilities and stockholders’ equity |
$ | $ | ( |
) | $ | |||||||
As of September 30, 2019 | ||||||||||||
As Previously Reported |
Adjustments |
As Restated |
||||||||||
Assets |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | $ | — | $ | ||||||||
Accounts receivable - net |
( |
) | ||||||||||
Inventories - net |
( |
) | ||||||||||
Prepaid and other current assets |
( |
) | ||||||||||
Total current assets |
( |
) | ||||||||||
Non-current inventories - net |
( |
) | ||||||||||
Property, plant and equipment - net |
||||||||||||
Deferred tax assets - net |
||||||||||||
Goodwill |
( |
) | ||||||||||
Other intangible assets - net |
||||||||||||
Other assets - net |
( |
) | ||||||||||
Total assets |
$ | $ | $ | |||||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Current Liabilities: |
||||||||||||
Accounts payable |
$ | $ | ( |
) | $ | |||||||
Accrued expenses |
||||||||||||
Current portion of short and long-term obligations |
— | |||||||||||
Total current liabilities |
||||||||||||
Long-term obligations - less current portion |
— | |||||||||||
Acquisition contingencies |
||||||||||||
Other long-term liabilities |
— | |||||||||||
Deferred revenue |
— | |||||||||||
Total liabilities |
||||||||||||
Preferred stock Series A, $ par value: |
— | |||||||||||
Stockholders’ equity: |
||||||||||||
Common stock, $ par value: |
— | |||||||||||
Additional paid-in capital |
— | |||||||||||
Accumulated other comprehensive loss |
( |
) | — | ( |
) | |||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||
Less treasury stock, |
( |
) | — | ( |
) | |||||||
Total stockholders’ equity |
( |
) | ||||||||||
Total liabilities and stockholders’ equity |
$ | $ | $ | |||||||||
Three Months Ended March 31, 2019 |
||||||||||||||||||||
Restatement |
Historical - |
Discontinued |
Continuing |
|||||||||||||||||
As Reported |
Adjustments |
As Restated |
Operations |
Operations |
||||||||||||||||
Revenues |
$ | $ | $ | $ | $ | |||||||||||||||
Costs of processing and distribution |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses: |
||||||||||||||||||||
Marketing, general and administrative |
$ |
|||||||||||||||||||
Research and development |
— | — | ||||||||||||||||||
Asset impairment and abandonments |
— | — | ||||||||||||||||||
Acquisition and integration expenses |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating expenses |
$ |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating (loss) income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other (expense) income: |
||||||||||||||||||||
Interest expense |
( |
) | — | ( |
) | ( |
) | — | ||||||||||||
Interest income |
— | — | ||||||||||||||||||
Foreign exchange loss |
( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other (expense) income—net |
( |
) | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations before income tax (provision) benefit |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Income tax (provision) benefit |
( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations before income tax provision |
— | — | — | |||||||||||||||||
Income tax provision |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Convertible preferred dividend |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss applicable to common shares |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive loss: |
||||||||||||||||||||
Unrealized foreign currency translation loss |
( |
) | — |
( |
) | — | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | — | $ | ( |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss from continuing operations per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income from discontinued operations per common share - basic |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income from discontinued operations per common share - diluted |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net loss per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average shares outstanding - basic |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - diluted |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019 |
||||||||||||||||||||
Restatement |
Historical - |
Discontinued |
Continuing |
|||||||||||||||||
As Reported |
Adjustments |
As Restated |
Operations |
Operations |
||||||||||||||||
Revenues |
$ | $ | ( |
) | $ | $ | $ | |||||||||||||
Costs of processing and distribution |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses: |
||||||||||||||||||||
Marketing, general and administrative |
||||||||||||||||||||
Research and development |
— | — | ||||||||||||||||||
Gain on acquisition contingency |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||
Asset impairment and abandonments |
— | — | ||||||||||||||||||
Acquisition and integration expenses |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating expenses |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating (loss) income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other (expense) income: |
||||||||||||||||||||
Interest expense |
( |
) | — | ( |
) | ( |
) | — | ||||||||||||
Interest income |
— | — | ||||||||||||||||||
Foreign exchange loss |
( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other ( expense) income |
( |
) | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations before income tax benefit |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Income tax benefit (provision) |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Loss from continuing operations |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations before income tax provision |
— | — | — | |||||||||||||||||
Income tax provision |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Convertible preferred dividend |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss applicable to common shares |
$ | ( |
) | $ | ( |
) | $ | ( |
) | — | $ | ( |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive income: |
||||||||||||||||||||
Unrealized foreign currency translation gain |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | — | $ | ( |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss from continuing operations per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income from discontinued operations per common share - basic |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income from discontinued operations per common share - diluted |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net loss per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average shares outstanding - basic |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - diluted |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
||||||||||||||||||||
Restatement |
Historical - |
Discontinued |
Continuing |
|||||||||||||||||
As Reported |
Adjustments |
As Restated |
Operations |
Operations |
||||||||||||||||
Revenues |
$ | $ | $ | $ | $ | |||||||||||||||
Costs of processing and distribution |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses: |
||||||||||||||||||||
Marketing, general and administrative |
||||||||||||||||||||
Research and development |
— | — | ||||||||||||||||||
Gain on acquisition contingency |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||
Asset impairment and abandonments |
— | — | ||||||||||||||||||
Acquisition and integration expenses |
— | |||||||||||||||||||
Total operating expenses |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating (loss) income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other (expense) income: |
||||||||||||||||||||
Interest expense |
( |
) | — | ( |
) | ( |
) | — | ||||||||||||
Interest income |
— | — | ||||||||||||||||||
Loss on extinguishment of debt |
— | — | — | — | — | |||||||||||||||
Foreign exchange loss |
( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other ( expense) income |
( |
) | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations before income tax benefit (provision) |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Income tax benefit (provision) |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations before income tax provision |
— | — | — | |||||||||||||||||
Income tax provision |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Convertible preferred dividend |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss income applicable to common shares |
$ | ( |
) | $ | ( |
) | $ | ( |
) | — | $ | ( |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive loss: |
||||||||||||||||||||
Unrealized foreign currency translation loss |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | — | $ | ( |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss from continuing operations per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income from discontinued operations per common share - basic |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income from discontinued operations per common share - diluted |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net loss per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average shares outstanding - basic |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - diluted |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
||||||||||||||||||||
Restatement |
Historical - |
Discontinued |
Continuing |
|||||||||||||||||
As Reported |
Adjustments |
As Restated |
Operations |
Operations |
||||||||||||||||
Revenues |
$ | $ | ( |
) | $ | $ | $ | |||||||||||||
Costs of processing and distribution |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses: |
||||||||||||||||||||
Marketing, general and administrative |
||||||||||||||||||||
Research and development |
— | — | ||||||||||||||||||
Gain on acquisition contingency |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||
Acquisition and integration expenses |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating expenses |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income (loss) |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other (expense) income: |
||||||||||||||||||||
Interest expense |
( |
) | — | ( |
) | ( |
) | — | ||||||||||||
Interest income |
— | — | ||||||||||||||||||
Foreign exchange loss |
( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other ( expense) income - net |
( |
) | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations before income tax |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Income tax benefit |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations before income tax benefit |
— | — | — | |||||||||||||||||
Income tax benefit |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
( |
) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) applicable to common shares |
$ | $ | ( |
) | $ | — | $ | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive income: |
||||||||||||||||||||
Unrealized foreign currency translation gain |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income (loss) |
$ | $ | ( |
) | $ | $ | — | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income ( loss) from continuing operations per common share - basic |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income loss( ) from continuing operations per common share - diluted |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income from discontinued operations per common share - basic |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income from discontinued operations per common share - diluted |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income (loss) per common share - basic |
$ | $ | ( |
) | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) per common share - diluted |
$ | $ | ( |
) | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average shares outstanding - basic |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - dilute d |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
||||||||||||||||||||
Restatement |
Historical - |
Discontinued |
Continuing |
|||||||||||||||||
As Reported |
Adjustments |
As Restated |
Operations |
Operations |
||||||||||||||||
Revenues |
$ | $ | $ | $ | $ | |||||||||||||||
Costs of processing and distribution |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses: |
||||||||||||||||||||
Marketing, general and administrative |
||||||||||||||||||||
Research and development |
— | — | ||||||||||||||||||
Asset impairment and abandonments |
— | — | ||||||||||||||||||
Acquisition and integration expenses |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating expenses |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating (loss) income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other (expense) income: |
||||||||||||||||||||
Interest expense |
( |
) | — | ( |
) | ( |
) | — | ||||||||||||
Interest income |
— | — | ||||||||||||||||||
Foreign exchange loss |
( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other expense - net |
( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations before income tax benefit (provision) |
( |
) | ( |
) | ( |
) | — |
( |
) | |||||||||||
Income tax benefit (provision) |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss from continuing operations |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations before income tax provision |
— | — | — | |||||||||||||||||
Income tax provision |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from discontinued operations |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Convertible preferred dividend |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss applicable to common shares |
$ | ( |
) | $ | ( |
) | $ | ( |
) | — | $ | ( |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive loss: |
||||||||||||||||||||
Unrealized foreign currency translation loss |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | — | $ | ( |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss from continuing operations per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income from discontinued operations per common share - basic |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income from discontinued operations per common share - diluted |
$ | $ | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Net loss per common share - basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss per common share - diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average shares outstanding - basic |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - diluted |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2019 |
||||||||||||
As Previously |
Restatement |
|||||||||||
Reported |
Adjustments |
As Restated |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
||||||||||||
Depreciation and amortization expense |
||||||||||||
Provision for bad debts and product returns |
— | |||||||||||
Provision for inventory write-downs |
— | |||||||||||
Revenue recognized due to change in deferred revenue |
( |
) | — | ( |
) | |||||||
Deferred income tax benefit |
( |
) | ||||||||||
Stock-based compensation |
— | |||||||||||
Other |
— | |||||||||||
Change in assets and liabilities: |
||||||||||||
Accounts receivable |
( |
) | ( |
) | ( |
) | ||||||
Inventories |
( |
) | ( |
) | ||||||||
Accounts payable |
( |
) | ( |
) | ( |
) | ||||||
Accrued expenses |
( |
) | ( |
) | ( |
) | ||||||
Deferred revenue |
— | |||||||||||
Other operating assets and liabilities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net cash (used in) provided by operating activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Purchases of property, plant and equipment |
( |
) | — | ( |
) | |||||||
Patent and acquired intangible asset costs |
( |
) | — | ( |
) | |||||||
Acquisition of Paradigm Spine |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net cash used in investing activities |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from exercise of common stock options |
— | |||||||||||
Proceeds from long-term obligations |
— | |||||||||||
Payments of debt issuance costs |
( |
) | — | ( |
) | |||||||
Payments for treasury stock |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net decrease in cash and cash equivalents |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, beginning of period |
— | |||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, end of period |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Supplemental cash flow disclosure: |
||||||||||||
Cash paid for interest |
$ | $ | — | $ | ||||||||
Income tax refunds, net of payments |
( |
) | — | ( |
) | |||||||
Non-cash acquisition of property, plant and equipment |
— | |||||||||||
Non-cash acquisition of Paradigm |
— | |||||||||||
Non-cash common stock issuance |
— |
For the Six Months Ended June 30, 2019 |
||||||||||||
As Previously |
Restatement |
|||||||||||
Reported |
Adjustments |
As Restated |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
||||||||||||
Depreciation and amortization expense |
||||||||||||
Provision for bad debts and product returns |
— | |||||||||||
Provision for inventory write-downs |
— | |||||||||||
Revenue recognized due to change in deferred revenue |
( |
) | — | ( |
) | |||||||
Deferred income tax benefit |
( |
) | ( |
) | ( |
) | ||||||
Stock-based compensation |
— | |||||||||||
Gain on acquisition contingency |
( |
) | — | ( |
) | |||||||
Paid in kind interest expense |
— | |||||||||||
Other |
— | |||||||||||
Change in assets and liabilities: |
||||||||||||
Accounts receivable |
( |
) | ( |
) | ||||||||
Inventories |
( |
) | ( |
) | ( |
) | ||||||
Accounts payable |
( |
) | ( |
) | ( |
) | ||||||
Accrued expenses |
( |
) | ( |
) | ( |
) | ||||||
Deferred revenue |
— | |||||||||||
Other operating assets and liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash (used in) provided by operating activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Purchases of property, plant and equipment |
( |
) | — |
( |
) | |||||||
Patent and acquired intangible asset costs |
( |
) | — | ( |
) | |||||||
Acquisition of Paradigm Spine |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net cash used in investing activities |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from exercise of common stock options |
— | |||||||||||
Proceeds from long-term obligations |
— | |||||||||||
Payments of debt issuance costs |
( |
) | — | ( |
) | |||||||
Payments for treasury stock |
— |
( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net decrease in cash and cash equivalents |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, beginning of period |
— | |||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, end of period |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Supplemental cash flow disclosure: |
||||||||||||
Cash paid for interest |
$ | $ | — | $ | ||||||||
Income tax refunds, net of payments |
— | |||||||||||
Non-cash acquisition of property, plant and equipment |
— | |||||||||||
Non-cash acquisition of Paradigm |
— | |||||||||||
Non-cash common stock issuance |
— |
For the Nine Months Ended September 30, 2019 |
||||||||||||
As Previously |
Restatement |
|||||||||||
Reported |
Adjustments |
As Restated |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
||||||||||||
Depreciation and amortization expense |
||||||||||||
Provision for bad debts and product returns |
— | |||||||||||
Provision for inventory write-downs |
— | |||||||||||
Revenue recognized due to change in deferred revenue |
( |
) | — | ( |
) | |||||||
Deferred income tax benefit |
( |
) | ( |
) | ( |
) | ||||||
Stock-based compensation |
— | |||||||||||
Gain on acquisition contingency |
( |
) | — | ( |
) | |||||||
Paid in kind interest expense |
— | |||||||||||
Other |
— | |||||||||||
Change in assets and liabilities: |
||||||||||||
Accounts receivable |
( |
) | ( |
) | ( |
) | ||||||
Inventories |
( |
) | ( |
) | ( |
) | ||||||
Accounts payable |
( |
) | ( |
) | ( |
) | ||||||
Accrued expenses |
( |
) | ||||||||||
Deferred revenue |
— | |||||||||||
Other operating assets and liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash (used in) provided by operating activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Purchases of property, plant and equipment |
( |
) | — | ( |
) | |||||||
Patent and acquired intangible asset costs |
( |
) | — | ( |
) | |||||||
Acquisition of Paradigm Spine |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net cash used in investing activities |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from exercise of common stock options |
— | |||||||||||
Proceeds from long-term obligations |
— | |||||||||||
Payments of debt issuance costs |
( |
) | — | ( |
) | |||||||
Payments on long-term obligations |
( |
) | — | ( |
) | |||||||
Payments for treasury stock |
— |
( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net decrease in cash and cash equivalents |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, beginning of period |
— | |||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, end of period |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Supplemental cash flow disclosure: |
||||||||||||
Cash paid for interest |
$ | $ | — | $ | ||||||||
Income tax refunds, net of payments |
— | |||||||||||
Non-cash acquisition of property, plant and equipment |
— | |||||||||||
Non-cash acquisition of Paradigm |
— | |||||||||||
Non-cash common stock issuance |
— |
Balance at |
Charged to |
Deductions- |
Balance at |
|||||||||||||
Beginning of |
Costs and |
Write-offs, |
End of |
|||||||||||||
Description |
Period |
Expenses |
Payments |
Period |
||||||||||||
For the year ended December 31, 2019: |
||||||||||||||||
Allowance for doubtful accounts |
$ | $ |
$ |
( |
) | $ | ||||||||||
Allowance for product returns |
||||||||||||||||
Allowance for excess and obsolescence |
|
|||||||||||||||
Deferred tax asset valuation allowance |
||||||||||||||||
For the year ended December 31, 2018: |
||||||||||||||||
Allowance for doubtful accounts |
$ |
$ |
|
$ |
$ |
|||||||||||
Allowance for product returns |
||||||||||||||||
Allowance for excess and obsolescence |
|
|
||||||||||||||
Deferred tax asset valuation allowance |
||||||||||||||||
For the year ended December 31, 2017: |
||||||||||||||||
Allowance for doubtful accounts |
$ |
$ |
|
$ |
|
$ |
||||||||||
Allowance for product returns |
— | |||||||||||||||
Allowance for excess and obsolescence |
|
|||||||||||||||
Deferred tax asset valuation allowance |
— |