QUARTERLY FINANCIAL SUMMARY (Unaudited) (Tables)

12 Months Ended

Mar. 31, 2024

Quarterly Financial Information Disclosure [Abstract]

Schedule of Adjustment For Correction to Previous Periods

QUANTUM CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

	March 31, 2023
	As previously reported		Restatement adjustments		Reference	As restated
Assets
Current assets:
Cash and cash equivalents	$	25,963	$	—		$	25,963
Restricted cash	212		—			212
Accounts receivable, net of allowance for credit losses of $201	72,464		—			72,464
Manufacturing inventories	19,441		—			19,441
Service parts inventories	25,304		—			25,304
Prepaid expenses	4,158		—			4,158
Other current assets	5,513		—			5,513
Total current assets	153,055		—			153,055
Property and equipment, net	16,555		—			16,555
Intangible assets, net	4,941		—			4,941
Goodwill	12,969		—			12,969
Right-of-use assets, net	10,291		—			10,291
Other long-term assets	15,846		—			15,846
Total assets	$	213,657	$	—		$	213,657
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	35,716	$	—		35,716
Accrued compensation	15,710		—			15,710
Deferred revenue, current portion	82,504		(2,697)		(a)	79,807
Term debt, current portion	5,000		—			5,000
Warrant liabilities	—		7,989		(b)	7,989
Other accrued liabilities	13,666		—			13,666
Total current liabilities	152,596		5,292			157,888
Deferred revenue, net of current portion	43,306		(7,811)			35,495
Revolving credit facility	16,750		—			16,750
Term debt, net of current portion	66,354		—			66,354
Operating lease liabilities	10,169		—			10,169
Other long-term liabilities	11,370		—			11,370
Total liabilities	300,545		(2,519)			298,026
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued	—		—			—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 93,574 shares issued and outstanding	936		—			936
Additional paid-in capital	722,603		(20,233)		(b)	702,370
Accumulated deficit	(808,846)		22,752		(a) (b)	(786,094)
Accumulated other comprehensive loss	(1,581)		—			(1,581)
Total stockholders' deficit	(86,888)		2,519			(84,369)
Total liabilities and stockholders' deficit	$	213,657	$	—		$	213,657

QUANTUM CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

	March 31, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Assets
Current assets:
Cash and cash equivalents	$	5,210	$	—		$	5,210
Restricted cash	283		—			283
Accounts receivable, net of allowance for credit losses of $422, respectively	69,354		—			69,354
Manufacturing inventories	33,546		—			33,546
Service parts inventories	24,254		—			24,254
Prepaid expenses	7,853		—			7,853
Other current assets	4,697		—			4,697
Total current assets	145,197		—			145,197
Property and equipment, net	12,853		—			12,853
Intangible assets, net	9,584		—			9,584
Goodwill	12,969		—			12,969
Right-of-use assets, net	11,107		—			11,107
Other long-term assets	9,925		—			9,925
Total assets	$	201,635	$	—		$	201,635
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	34,220	$	—		34,220
Accrued compensation	16,141		—			16,141
Deferred revenue, current portion	86,517		611		(a)	87,128
Term debt, current portion	4,375		—			4,375
Warrant liabilities	—		18,237		(b)	18,237
Other accrued liabilities	16,562		—			16,562
Total current liabilities	157,815		18,848			176,663
Deferred revenue, net of current portion	41,580		(1,792)			39,788
Revolving credit facility	17,735		—			17,735
Term debt, net of current portion	89,448		—			89,448
Operating lease liabilities	9,891		—			9,891
Other long-term liabilities	11,849		—			11,849
Total liabilities	328,318		17,056			345,374
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued	—		—			—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 60,433 shares issued and outstanding	605		—			605
Additional paid-in capital	645,038		(20,233)		(b)	624,805
Accumulated deficit	(770,903)		3,177		(a) (b)	(767,726)
Accumulated other comprehensive loss	(1,423)		—			(1,423)
Total stockholders' deficit	(126,683)		(17,056)			(143,739)
Total liabilities and stockholders' deficit	$	201,635	$	—		$	201,635

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

	Year Ended March 31, 2023
	As previously reported		Restatement adjustments		Reference	As restated
Revenue
Product	$	266,537	$	8,317	(a)	$	274,854
Service and subscription	132,510		1,008		(a)	133,518
Royalty	13,705		—			13,705
Total revenue	412,752		9,325			422,077
Cost of revenue
Product	220,031		—			220,031
Service and subscription	58,782		—			58,782
Total cost of revenue	278,813		—			278,813
Gross profit	133,939		9,325			143,264
Operating expenses
Sales and marketing	66,034		—			66,034
General and administrative	47,752		—			47,752
Research and development	44,555		—			44,555
Restructuring charges	1,605		—			1,605
Total operating expenses	159,946		—			159,946
Income (loss) from operations	(26,007)		9,325			(16,682)
Other income, net	1,956		—			1,956
Interest expense	(10,560)		—			(10,560)
Change in fair value of warrant liability	—		10,250		(b)	10,250
Loss on debt extinguishment, net	(1,392)		—			(1,392)
Net income (loss) before income taxes	(36,003)		19,575			(16,428)
Income tax provision	1,940		—			1,940
Net income (loss)	$	(37,943)	$	19,575		$	(18,368)
Deemed dividend on warrants	(389)		389		(b)	—
Net income (loss) attributable to common stockholders	$	(38,332)	$	19,964		$	(18,368)
Net income (loss) per share attributable to common stockholders- basic	$	(0.42)	$	0.22		$	(0.20)
Net income (loss) per share attributable to common stockholders - diluted	$	(0.42)	$	0.14		$	(0.28)
Weighted average shares - basic	90,348		90,348			90,348
Weighted average shares - basic and diluted	90,348		91,188			91,188
Net income (loss)	$	(37,943)	$	19,575		$	(18,368)
Foreign currency translation adjustments, net	(158)		—			(158)
Total comprehensive income (loss)	$	(38,101)	$	19,575		$	(18,526)

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

	Year Ended March 31, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Revenue
Product	$	223,761	$	7,053	(a)	$	230,814
Service and subscription	133,689		3,552		(a)	137,241
Royalty	15,377		—			15,377
Total revenue	372,827		10,605			383,432
Cost of revenue
Product	169,780		—			169,780
Service and subscription	56,012		—			56,012
Total cost of revenue	225,792		—			225,792
Gross profit	147,035		10,605			157,640
Operating expenses
Research and development	51,812		—			51,812
Sales and marketing	62,957		—			62,957
General and administrative	45,256		—			45,256
Restructuring charges	850		—			850
Total operating expenses	160,875		—			160,875
Income (loss) from operations	(13,840)		10,605			(3,235)
Other expense, net	(251)		—			(251)
Interest expense	(11,888)		—			(11,888)
Change in fair value of warrant liabilities	—		60,030		(b)	60,030
Loss on debt extinguishment, net	(4,960)		—			(4,960)
Net income (loss) before income taxes	(30,939)		70,635			39,696
Income tax provision	1,341		—			1,341
Net income (loss)	$	(32,280)	$	70,635		$	38,355
Net income (loss) per share - basic	$	(0.55)	$	1.20		$	0.65
Net income (loss) per share - diluted	$	(0.55)	$	0.23		$	(0.32)
Weighted average shares - basic	58,871		58,871			58,871
Weighted average shares - diluted	58,871		66,017			66,017
Net income (loss)	$	(32,280)	$	70,635		$	38,355
Foreign currency translation adjustments, net	(567)		—			(567)
Total comprehensive income (loss)	$	(32,847)	$	70,635		$	37,788

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended March 31, 2023
	As previously reported		Restatement adjustments		Reference	As restated
Operating activities
Net income (loss)	$	(37,943)	$	19,575	(a) (b)	$	(18,368)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	10,118		—			10,118
Amortization of debt issuance costs	1,624		—			1,624
Long-term debt related costs	992		—			992
Provision for manufacturing and service inventories	18,052		—			18,052
Stock-based compensation	10,750		—			10,750
Change in fair value of warrant liabilities	—		(10,250)		(b)	(10,250)
Other non-cash	(2,067)		—			(2,067)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	(2,966)		—			(2,966)
Manufacturing inventories	(1,839)		—			(1,839)
Service parts inventories	(3,503)		—			(3,503)
Accounts payable	1,158		—			1,158
Prepaid expenses	3,695		—			3,695
Deferred revenue	(2,286)		(9,325)		(a)	(11,611)
Accrued compensation	(431)		—			(431)
Other assets	(1,270)		—			(1,270)
Other liabilities	1,022		—			1,022
Net cash used in operating activities	(4,894)		—			(4,894)
Investing activities
Purchases of property and equipment	(12,581)		—			(12,581)
Business acquisitions	(3,020)		—			(3,020)
Net cash used in investing activities	(15,601)		—			(15,601)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	—		—			—
Repayments of long-term debt	(24,596)		—			(24,596)
Borrowings of credit facility	497,280		—			497,280
Repayments of credit facility	(498,665)		—			(498,665)
Borrowings of paycheck protection program	—		—			—
Proceeds from secondary offering, net	—		—			—
Payment of taxes due upon vesting of restricted stock	—		—			—
Proceeds from issuance of common stock	67,146		—			67,146
Net cash provided by financing activities	41,165		—			41,165
Effect of exchange rate changes on cash and cash equivalents	12		—			12
Net change in cash, cash equivalents, and restricted cash	20,682		—			20,682
Cash, cash equivalents, and restricted cash at beginning of period	5,493		—			5,493
Cash, cash equivalents, and restricted cash at end of period	$	26,175	$	—		$	26,175
Supplemental disclosure of cash flow information
Cash paid for interest	$	8,701	$	—		$	8,701
Cash paid for income taxes, net of refunds	$	1,418	$	—		$	1,418
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	1,049	$	—		$	1,049
Transfer of manufacturing inventory to services inventory	$	4,045	$	—		$	4,045
Transfer of manufacturing inventory to property and equipment	$	343	$	—		$	343
Payment of litigation settlements with insurance proceeds	$	—	$	—		$	—
Paid-in-kind interest	$	319	$	—		$	319
Deemed dividend	$	389	$	(389)	(b)	$	—
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	25,963	$	—		$	25,963
Restricted cash, current	212		—			212
Total cash, cash equivalents and restricted cash at the end of period	$	26,175	$	—		$	26,175

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended March 31, 2022
	As previously reported		Restatement adjustments		Reference	As adjusted
Operating activities
Net income (loss)	$	(32,280)	$	70,635	(a) (b)	$	38,355
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	9,418		—			9,418
Amortization of debt issuance costs	2,414		—			2,414
Long-term debt related costs	8,471		—			8,471
Provision for manufacturing and service inventories	5,740		—			5,740
Gain on PPP loan extinguishment	(10,000)		—			(10,000)
Stock-based compensation	13,829					13,829
Change in fair value of warrant liabilities	—		(60,030)		(b)	(60,030)
Other non-cash	(832)		—			(832)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	3,651		—			3,651
Manufacturing inventories	(12,069)		—			(12,069)
Service parts inventories	(4,400)		—			(4,400)
Accounts payable	(1,939)		—			(1,939)
Prepaid expenses	(3,959)		—			(3,959)
Deferred revenue	(2,514)		(10,605)		(a)	(13,119)
Accrued restructuring charges	(580)		—			(580)
Accrued compensation	(3,073)		—			(3,073)
Other assets	(2,602)		—			(2,602)
Other liabilities	(3,003)		—			(3,003)
Net cash used in operating activities	(33,728)		—			(33,728)
Investing activities
Purchases of property and equipment	(6,316)		—			(6,316)
Business acquisitions	(7,808)		—			(7,808)
Net cash used in investing activities	(14,124)		—			(14,124)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	94,961		—			94,961
Repayments of long-term debt	(94,301)		—			(94,301)
Borrowings of credit facility	309,000		—			309,000
Repayments of credit facility	(291,265)		—			(291,265)
Proceeds from issuance of common stock	1,762					1,762
Net cash provided by financing activities	20,157		—			20,157
Effect of exchange rate changes on cash and cash equivalents	51		—			51
Net change in cash, cash equivalents, and restricted cash	(27,644)		—			(27,644)
Cash, cash equivalents, and restricted cash at beginning of period	33,137		—			33,137
Cash, cash equivalents, and restricted cash at end of period	$	5,493	$	—		$	5,493
Supplemental disclosure of cash flow information
Cash paid for interest	$	9,140	$	—		$	9,140
Cash paid for income taxes, net of refunds	$	944	$	—		$	944
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	147	$	—		$	147
Transfer of manufacturing inventory to services inventory	$	211	$	—		$	211
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	5,210	$	—		$	5,210
Restricted cash, current	283		—			283
Total cash, cash equivalents and restricted cash at the end of period	$	5,493	$	—		$	5,493

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(in thousands)

		Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Deficit
	Reference	Shares	Amount
As previously reported
Balance, March 31, 2022		60,433	$	605	$	645,038	$	(770,903)	$	(1,423)	$	(126,683)
Net loss		—	—		—		(37,943)		—		(37,943)
Foreign currency translation adjustments, net		—	—		—		—		(158)		(158)
Shares issued under employee stock purchase plan		600	6		891		—		—		897
Shares issued under employee incentive plans, net		2,180	21		(21)		—		—		—
Shares issued in connection with rights offering, net		30,000	300		65,949		—		—		66,249
Shares issued in connection with business acquisition		361	4		(4)		—		—		—
Settlement of warrant down round provision		—	—		389		—		—		389
Deemed dividend on warrants		—	—		(389)		—		—		(389)
Stock-based compensation		—	—		10,750		—		—		10,750
Balance, March 31, 2023		93,574	$	936	$	722,603	$	(808,846)	$	(1,581)	$	(86,888)
Adjustments
March 31, 2022	(a) (b)	—	—		(20,233)		3,177		—		(17,056)
Net loss	(a) (b)	—	—		—		19,575		—		19,575
March 31, 2023		—	$	—	$	(20,233)	$	22,752	$	—	$	2,519
As restated
March 31, 2022		60,433	$	605	$	624,805	$	(767,726)	$	(1,423)	$	(143,739)
Net loss		—	—		—		(18,368)		—		(18,368)
Foreign currency translation adjustments, net		—	—		—		—		(158)		(158)
Shares issued under employee stock purchase plan		600	6		891		—		—		897
Shares issued under employee incentive plans, net		2,180	21		(21)		—		—		—
Shares issued in connection with rights offering, net		30,000	300		65,949		—		—		66,249
Shares issued in connection with business acquisition		361	4		(4)		—		—		—
Stock-based compensation		—	—		10,750		—		—		10,750
March 31, 2023		93,574	$	936	$	702,370	$	(786,094)	$	(1,581)	$	(84,369)

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(in thousands)

		Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Deficit
	Reference	Shares	Amount
As previously reported
Balance, March 31, 2021		56,915	$	570	$	626,664	$	(738,623)	$	(856)	$	(112,245)
Net loss		—	—		—		(32,280)		—		(32,280)
Foreign currency translation adjustments, net		—	—		—		—		(567)		(567)
Shares issued under employee stock purchase plan		389	4		1,758		—		—		1,762
Shares issued under employee incentive plans, net		2,308	23		(23)		—		—		—
Shares issued in connection with business acquisition		821	8		2,810		—		—		2,818
Stock-based compensation		—	—		13,829		—		—		13,829
Balance, March 31, 2022		60,433	$	605	$	645,038	$	(770,903)	$	(1,423)	$	(126,683)
Adjustments
March 31, 2021	(a) (b)	—	—		(20,233)		(67,458)		—		(87,691)
Net loss	(a) (b)	—	—		—		70,635		—		70,635
March 31, 2022		—	$	—	$	(20,233)	$	3,177	$	—	$	(17,056)
As restated
March 31, 2021		56,915	$	570	$	606,431	$	(806,081)	$	(856)	$	(199,936)
Net loss		—	—		—		38,355		—		38,355
Foreign currency translation adjustments, net		—	—		—		—		(567)		(567)
Shares issued under employee stock purchase plan		389	4		1,758		—		—		1,762
Shares issued under employee incentive plans, net		2,308	23		(23)		—		—		—
Shares issued in connection with business acquisition		821	8		2,810		—		—		2,818
Stock-based compensation		—	—		13,829		—		—		13,829
March 31, 2022		60,433	$	605	$	624,805	$	(767,726)	$	(1,423)	$	(143,739)

The following table sets forth financial information summarizing the effects of the restatement and other immaterial error correction on our previously reported Statements of Operations for the quarters ended June 30, 2023, December 31, 2022, September 30, 2022, and June 30, 2022. It also includes summarized information for each of the quarters ended December 31, 2023 and September 30, 2023.

(in thousands, except per share data)	FY 2024
		March 31		December 31		September 30		June 30
								As restated
Total revenue		$	71,500	$	71,926	$	75,680	$	92,495
Gross profit		27,332		29,181		32,736		35,641
Income (loss) from operations		(13,808)		(6,216)		(3,712)		(5,139)
Change in fair value of warrants		(2,203)		2,213		4,402		726
Income (loss) before income taxes		(19,805)		(9,359)		(2,798)		(8,612)
Net income (loss)		(18,943)		(9,869)		(3,331)		(9,142)
Income (loss) per share - basic		$	(0.20)	$	(0.10)	$	(0.04)	$	(0.10)

(in thousands, except per share data)	FY 2023
	March 31		December 31		September 30		June 30
	As restated		As restated		As restated		As restated
Total revenue	$	109,203	$	113,475	$	100,565	$	98,833
Gross profit	35,642		42,568		29,259		35,807
Income (loss) from operations	(5,666)		4,047		(9,741)		(5,319)
Change in fair value of warrants	(430)		4		3,092		7,582
Income (loss) before income taxes	(9,800)		806		(6,963)		(469)
Net income (loss)	(10,176)		113		(7,424)		(879)
Income (loss) per share - basic	$	(0.11)	$	—	$	(0.08)	$	(0.01)
Income (loss) per share - diluted	$	(0.11)	$	—	$	(0.10)	$	(0.07)

Quarterly Financial Summary

The net impact of the restatement on our quarterly and year-to-date unaudited condensed financial statements is as follows:

Schedule of Quarterly Financial Information

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

	FY 2024
	December 31		September 30		June 30
					As restated
Assets
Current assets:
Cash and cash equivalents	$	24,377	$	25,574	$	25,465
Restricted cash	172		180		200
Accounts receivable, net of allowance for credit losses of $21, $26 and $163, respectively	60,020		51,529		66,245
Manufacturing inventories	20,409		21,376		20,017
Service parts inventories	25,423		25,880		25,276
Prepaid expenses	3,763		4,149		6,444
Other current assets	7,224		5,389		6,004
Total current assets	141,388		134,077		149,651
Property and equipment, net	13,251		14,621		15,583
Intangible assets, net	1,986		2,819		3,801
Goodwill	12,969		12,969		12,969
Right-of-use assets, net	9,625		9,844		10,017
Other long-term assets	19,986		20,475		18,463
Total assets	$	199,205	$	194,805	$	210,484
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	22,426	$	26,946	$	30,560
Accrued compensation	15,286		13,746		14,894
Deferred revenue, current portion	73,240		70,696		76,688
Term debt, current portion	82,587		82,681		5,000
Revolving credit facility	32,000		21,450		17,800
Warrant liabilities	1,843		4,056		8,457
Other accrued liabilities	13,854		11,724		12,715
Total current liabilities	241,236		231,299		166,114
Deferred revenue, net of current portion	37,281		35,337		35,685
Term debt, net of current portion	—		—		77,814
Operating lease liabilities	9,885		10,079		10,001
Other long-term liabilities	12,734		12,522		12,191
Total liabilities	301,136		289,237		301,805
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued	—		—		—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 95,850, 95,519 and 93,705 shares issued and outstanding, respectively	959		956		938
Additional paid-in capital	706,133		705,229		704,309
Accumulated deficit	(808,436)		(798,566)		(795,236)
Accumulated other comprehensive loss	(587)		(2,052)		(1,332)
Total stockholders' deficit	(101,931)		(94,433)		(91,321)
Total liabilities and stockholders' deficit	$	199,205	$	194,804	$	210,484

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

	FY 2023
	December 31		September 30		June 30
	As restated		As restated		As restated
Assets
Current assets:
Cash and cash equivalents	$	26,028	$	25,698	$	26,528
Restricted cash	219		223		255
Accounts receivable, net of allowance for credit losses of $219, $195 and $195 respectively	72,911		61,309		64,909
Manufacturing inventories	32,402		23,671		32,642
Service parts inventories	25,822		25,458		25,129
Prepaid expenses	7,198		9,241		10,715
Other current assets	7,489		4,839		4,574
Total current assets	172,069		150,439		164,752
Property and equipment, net	16,794		15,973		14,093
Intangible assets, net	6,497		7,245		8,420
Goodwill	12,969		12,969		12,969
Right-of-use assets, net	10,468		10,579		10,641
Other long-term assets	13,600		12,477		10,796
Total assets	$	232,397	$	209,682	$	221,671
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	41,788	$	34,263	$	33,867
Accrued compensation	15,527		13,192		14,531
Deferred revenue, current portion	70,876		69,499		74,130
Term debt, current portion	5,000		5,000		5,000
Warrant liabilities	7,559		7,563		10,655
Other accrued liabilities	15,852		14,502		14,157
Total current liabilities	156,602		144,019		152,340
Deferred revenue, net of current portion	36,220		36,480		37,391
Revolving credit facility	27,736		21,500		17,300
Term debt, net of current portion	67,306		68,250		69,195
Operating lease liabilities	10,346		10,315		9,932
Other long-term liabilities	12,150		11,653		12,013
Total liabilities	310,360		292,217		298,171
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued	—		—		—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 93,144, 92,158 and 90,606 shares issued and outstanding, respectively	932		922		907
Additional paid-in capital	699,536		696,567		693,895
Accumulated deficit	(775,914)		(776,027)		(768,603)
Accumulated other comprehensive loss	(2,517)		(3,997)		(2,699)
Total stockholders' deficit	(77,963)		(82,535)		(76,500)
Total liabilities and stockholders' deficit	$	232,397	$	209,682	$	221,671

	June 30, 2023
	As previously reported		Restatement adjustments		Reference	As restated
Assets
Current assets:
Cash and cash equivalents	$	25,465	$	—		$	25,465
Restricted cash	200		—			200
Accounts receivable, net of allowance for credit losses of $163	66,245		—			66,245
Manufacturing inventories	20,017		—			20,017
Service parts inventories	25,276		—			25,276
Prepaid expenses	6,444		—			6,444
Other current assets	6,004		—			6,004
Total current assets	149,651		—			149,651
Property and equipment, net	15,583		—			15,583
Intangible assets, net	3,801		—			3,801
Goodwill	12,969		—			12,969
Right-of-use assets, net	10,017		—			10,017
Other long-term assets	18,463		—			18,463
Total assets	$	210,484	$	—		$	210,484
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	30,560	$	—		$	30,560
Accrued compensation	14,894		—			14,894
Deferred revenue, current portion	79,686		(2,998)		(a)	76,688
Term debt, current portion	5,000		—			5,000
Revolving credit facility	17,800		—			17,800
Warrant liabilities	—		8,457		(b)	8,457
Other accrued liabilities	12,715		—			12,715
Total current liabilities	160,655		5,459			166,114
Deferred revenue, net of current portion	43,903		(8,218)			35,685
Term debt, net of current portion	77,814		—			77,814
Operating lease liabilities	10,001		—			10,001
Other long-term liabilities	12,191		—			12,191
Total liabilities	304,564		(2,759)			301,805
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued	—		—			—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 93,705 shares issued and outstanding	938		—			938
Additional paid-in capital	725,736		(21,427)		(b)	704,309
Accumulated deficit	(819,422)		24,186		(a) (b)	(795,236)
Accumulated other comprehensive loss	(1,332)		—			(1,332)
Total stockholders' deficit	(94,080)		2,759			(91,321)
Total liabilities and stockholders' deficit	$	210,484	$	—		$	210,484

	December 31, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Assets
Current assets:
Cash and cash equivalents	$	26,028	$	—		$	26,028
Restricted cash	219		—			219
Accounts receivable, net of allowance for credit losses of $219	72,911		—			72,911
Manufacturing inventories	32,402		—			32,402
Service parts inventories	25,822		—			25,822
Prepaid expenses	7,198		—			7,198
Other current assets	7,489		—			7,489
Total current assets	172,069		—			172,069
Property and equipment, net	16,794		—			16,794
Intangible assets, net	6,497		—			6,497
Goodwill	12,969		—			12,969
Right-of-use assets, net	10,468		—			10,468
Other long-term assets	13,600		—			13,600
Total assets	$	232,397	$	—		$	232,397
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	41,788	$	—		$	41,788
Accrued compensation	15,527		—			15,527
Deferred revenue, current portion	72,669		(1,793)		(a)	70,876
Term debt, current portion	5,000		—			5,000
Warrant liabilities	—		7,559		(b)	7,559
Other accrued liabilities	15,852		—			15,852
Total current liabilities	150,836		5,766			156,602
Deferred revenue, net of current portion	41,076		(4,856)			36,220
Revolving credit facility	27,736		—			27,736
Term debt, net of current portion	67,306		—			67,306
Operating lease liabilities	10,346		—			10,346
Other long-term liabilities	12,150		—			12,150
Total liabilities	309,450		910			310,360
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued	—		—			—
Common stock:						—
Common stock, $0.01 par value; 225,000 shares authorized; 93,144 shares issued and outstanding	932		—			932
Additional paid-in capital	719,769		(20,233)		(b)	699,536
Accumulated deficit	(795,237)		19,323		(a) (b)	(775,914)
Accumulated other comprehensive loss	(2,517)		—			(2,517)
Total stockholders' deficit	(77,053)		(910)			(77,963)
Total liabilities and stockholders' deficit	$	232,397	$	—		$	232,397

	September 30, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Assets
Current assets:
Cash and cash equivalents	$	25,698	$	—		$	25,698
Restricted cash	223		—			223
Accounts receivable, net of allowance for credit losses of $195	61,309		—			61,309
Manufacturing inventories	23,671		—			23,671
Service parts inventories	25,458		—			25,458
Prepaid expenses	9,241		—			9,241
Other current assets	4,839		—			4,839
Total current assets	150,439		—			150,439
Property and equipment, net	15,973		—			15,973
Intangible assets, net	7,245		—			7,245
Goodwill	12,969		—			12,969
Right-of-use assets, net	10,579		—			10,579
Other long-term assets	12,477		—			12,477
Total assets	$	209,682	$	—		$	209,682
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	34,263	$	—		$	34,263
Accrued compensation	13,192		—			13,192
Deferred revenue, current portion	70,184		(685)		(a)	69,499
Term debt, current portion	5,000		—			5,000
Warrant liabilities	—		7,563		(b)	7,563
Other accrued liabilities	14,502		—			14,502
Total current liabilities	137,141		6,878			144,019
Deferred revenue, net of current portion	40,165		(3,685)			36,480
Revolving credit facility	21,500		—			21,500
Term debt, net of current portion	68,250		—			68,250
Operating lease liabilities	10,315		—			10,315
Other long-term liabilities	11,653		—			11,653
Total liabilities	289,024		3,193			292,217
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued	—		—			—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 92,158 shares issued and outstanding	922		—			922
Additional paid-in capital	716,800		(20,233)		(b)	696,567
Accumulated deficit	(793,067)		17,040		(a) (b)	(776,027)
Accumulated other comprehensive loss	(3,997)		—			(3,997)
Total stockholders' deficit	(79,342)		(3,193)			(82,535)
Total liabilities and stockholders' deficit	$	209,682	$	—		$	209,682

	June 30, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Assets
Current assets:
Cash and cash equivalents	$	26,528	$	—		$	26,528
Restricted cash	255		—			255
Accounts receivable, net of allowance for credit losses of $195	64,909		—			64,909
Manufacturing inventories	32,642		—			32,642
Service parts inventories	25,129		—			25,129
Prepaid expenses	10,715		—			10,715
Other current assets	4,574		—			4,574
Total current assets	164,752		—			164,752
Property and equipment, net	14,093		—			14,093
Intangible assets, net	8,420		—			8,420
Goodwill	12,969		—			12,969
Right-of-use assets, net	10,641		—			10,641
Other long-term assets	10,796		—			10,796
Total assets	$	221,671	$	—		$	221,671
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	33,867	$	—		$	33,867
Accrued compensation	14,531		—			14,531
Deferred revenue, current portion	74,267		(137)		(a)	74,130
Term debt, current portion	5,000		—			5,000
Warrant liabilities	—		10,655		(b)	10,655
Other accrued liabilities	14,157		—			14,157
Total current liabilities	141,822		10,518			152,340
Deferred revenue, net of current portion	40,196		(2,805)			37,391
Revolving credit facility	17,300		—			17,300
Term debt, net of current portion	69,195		—			69,195
Operating lease liabilities	9,932		—			9,932
Other long-term liabilities	12,013		—			12,013
Total liabilities	290,458		7,713			298,171
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued as of June 30, 2022	—		—			—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 90,606 shares issued and outstanding at June 30, 2022	907		—			907
Additional paid-in capital	714,128		(20,233)		(b)	693,895
Accumulated deficit	(781,123)		12,520		(a) (b)	(768,603)
Accumulated other comprehensive loss	(2,699)		—			(2,699)
Total stockholders' deficit	(68,787)		(7,713)			(76,500)
Total liabilities and stockholders' deficit	$	221,671	$	—		$	221,671

	FY 2024
	3 Months Ended		9 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended
	December 31				September 30				June 30
									As restated
Revenue
Product	$	37,113	$	138,635	$	42,947	$	101,522	$	58,577
Service and subscription	32,771		94,229		30,505		61,458		30,953
Royalty	2,042		7,235		2,228		5,194		2,965
Total revenue	71,926		240,099		75,680		168,174		92,495
Cost of revenue
Product	30,044		105,214		30,719		75,170		44,451
Service and subscription	12,701		37,329		12,225		24,628		12,403
Total cost of revenue	42,745		142,543		42,944		99,798		56,854
Gross profit	29,181		97,556		32,736		68,376		35,641
Operating expenses
Sales and marketing	14,244		45,800		15,717		31,557		15,839
General and administrative	11,893		34,833		10,241		22,940		12,699
Research and development	8,763		28,828		9,152		20,065		10,913
Restructuring charges	497		3,164		1,338		2,667		1,329
Total operating expenses	35,397		112,625		36,448		77,229		40,780
Loss from operations	(6,216)		(15,069)		(3,712)		(8,853)		(5,139)
Other income (expense), net	(1,419)		(2,049)		367		(630)		(998)
Interest expense	(3,937)		(10,992)		(3,855)		(7,055)		(3,201)
Change in fair value of warrant liabilities	2,213		7,341		4,402		5,128		726
Net loss before income taxes	(9,359)		(20,769)		(2,798)		(11,410)		(8,612)
Income tax provision	510		1,573		533		1,063		530
Net loss	$	(9,869)	$	(22,342)	$	(3,331)	$	(12,473)	$	(9,142)
Net loss per share - basic	$	(0.10)	$	(0.24)	$	(0.04)	$	(0.13)	$	(0.10)
Net loss per share - diluted	$	(0.10)	$	(0.24)	$	(0.04)	$	(0.13)	$	(0.10)
Weighted average shares - basic	95,806		94,834		95,010		94,345		93,673
Weighted average shares - diluted	95,806		94,834		95,010		94,345		93,711
Net loss	$	(9,869)	$	(22,342)	$	(3,331)	$	(12,473)	$	(9,142)
Foreign currency translation adjustments, net	1,465		994		(720)		(471)		249
Total comprehensive loss	$	(8,404)	$	(21,348)	$	(4,051)	$	(12,944)	$	(8,893)

	FY 2023
	3 Months Ended		9 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended
	December 31				September 30				June 30
	As restated		As restated		As restated		As restated		As restated
Revenue
Product	$	77,494	$	203,192	$	64,110	$	125,698	$	61,588
Service and subscription	33,155		99,937		32,977		66,782		33,805
Royalty	2,826		9,744		3,478		6,918		3,440
Total revenue	113,475		312,873		100,565		199,398		98,833
Cost of revenue
Product	58,528		163,010		56,561		104,482		47,921
Service and subscription	12,379		42,229		14,745		29,850		15,105
Total cost of revenue	70,907		205,239		71,306		134,332		63,026
Gross profit	42,568		107,634		29,259		65,066		35,807
Operating expenses
Sales and marketing	16,339		47,894		15,593		31,555		15,962
General and administrative	10,969		35,223		11,940		24,254		12,314
Research and development	11,254		33,925		10,546		22,671		12,125
Restructuring charges	(41)		1,605		921		1,646		725
Total operating expenses	38,521		118,647		39,000		80,126		41,126
Income (loss) from operations	4,047		(11,013)		(9,741)		(15,060)		(5,319)
Other income (expense), net	(544)		2,638		2,431		3,182		751
Interest expense	(2,701)		(7,537)		(2,745)		(4,836)		(2,091)
Change in fair value of warrant liability	4		10,678		3,092		10,675		7,582
Loss on debt extinguishment, net	—		(1,392)		—		(1,392)		(1,392)
Net income (loss) before income taxes	806		(6,626)		(6,963)		(7,431)		(469)
Income tax provision	693		1,564		461		872		410
Net income (loss)	$	113	$	(8,190)	$	(7,424)	$	(8,303)	$	(879)
Net income (loss) per share - basic and diluted	$	0.00	$	(0.10)	$	(0.08)	$	(0.09)	$	(0.01)
Net income (loss) per share - basic and diluted	$	0.00	$	(0.18)	$	(0.10)	$	(0.18)	$	(0.07)
Weighted average shares - basic and diluted	92,752		89,335		91,550		87,617		83,641
Weighted average shares - basic and diluted	92,752		90,440		92,773		89,315		85,756
Net income (loss)	$	113	$	(8,190)	$	(7,424)	$	(8,303)	$	(879)
Foreign currency translation adjustments, net	1,480		(1,094)		(1,298)		(2,574)		(1,276)
Total comprehensive income (loss)	$	1,593	$	(9,284)	$	(8,722)	$	(10,877)	$	(2,155)

	Three Months Ended
	12/31/2022
	As previously reported		Adjustments		Reference	As restated
Revenue
Product	$	75,420	$	2,074	(a)	$	77,494
Service and subscription	32,950		205		(a)	33,155
Royalty	2,826		—			2,826
Total revenue	111,196		2,279			113,475
Cost of revenue
Product	58,528		—			58,528
Service and subscription	12,379		—			12,379
Total cost of revenue	70,907		—			70,907
Gross profit	40,289		2,279			42,568
Operating expenses
Sales and marketing	16,339		—			16,339
General and administrative	10,969		—			10,969
Research and development	11,254		—			11,254
Restructuring charges	(41)		—			(41)
Total operating expenses	38,521		—			38,521
Income from operations	1,768		2,279			4,047
Other expense, net	(544)		—			(544)
Interest expense	(2,701)		—			(2,701)
Change in fair value of warrant liability	—		4		(b)	4
Net income (loss) before income taxes	(1,477)		2,283			806
Income tax provision	693		—			693
Net income (loss)	$	(2,170)	$	2,283		$	113
Net income (loss) per share - basic	$	(0.02)	$	0.02		$	0.00
Net income (loss) per share - diluted	$	(0.02)	$	0.02		$	0.00
Weighted average shares - basic	92,752		92,752			92,752
Weighted average shares - diluted	92,752		92,752			92,752
Net income (loss)	$	(2,170)	$	2,283		$	113
Foreign currency translation adjustments, net	1,480		—			1,480
Total comprehensive income (loss)	$	(690)	$	2,283		$	1,593

	Three Months Ended
	9/30/2022							6/30/2022
	As previously reported		Adjustments		Reference	As restated		As previously reported		Adjustments		Reference	As restated
Revenue
Product	$	62,967	$	1,143	(a)	$	64,110	$	60,211	$	1,377	(a)	$	61,588
Service and subscription	32,692		285		(a)	32,977		33,423		382		(a)	33,805
Royalty	3,478		—			3,478		3,440		—			3,440
Total revenue	99,137		1,428			100,565		97,074		1,759			98,833
Cost of revenue
Product	56,561		—			56,561		47,921		—			47,921
Service and subscription	14,745		—			14,745		15,105		—			15,105
Total cost of revenue	71,306		—			71,306		63,026		—			63,026
Gross profit	27,831		1,428			29,259		34,048		1,759			35,807
Operating expenses
Sales and marketing	15,593		—			15,593		15,962		—			15,962
General and administrative	11,940		—			11,940		12,314		—			12,314
Research and development	10,546		—			10,546		12,125		—			12,125
Restructuring charges	921		—			921		725		—			725
Total operating expenses	39,000		—			39,000		41,126		—			41,126
Income (loss) from operations	(11,169)		1,428			(9,741)		(7,078)		1,759			(5,319)
Other income, net	2,431		—			2,431		751		—			751
Interest expense	(2,745)		—			(2,745)		(2,091)		—			(2,091)
Change in fair value of warrant liability	—		3,092		(b)	3,092		—		7,582		(b)	7,582
Loss on debt extinguishment, net	—		—			—		(1,392)		—			(1,392)
Net income (loss) before income taxes	(11,483)		4,520			(6,963)		(9,810)		9,341			(469)
Income tax provision	461		—			461		410		—			410
Net income (loss)	$	(11,944)	$	4,520		$	(7,424)	$	(10,220)	$	9,341		$	(879)
Deemed dividend on warrants	—		—			—		(389)		389		(b)	—
Net income (loss) attributable to common stockholders	$	(11,944)	$	4,520		$	(7,424)	$	(10,609)	$	9,730		$	(879)
Net income (loss) per share attributable to common stockholders - basic and diluted	$	(0.13)	$	0.05		$	(0.08)	$	(0.12)	$	0.11		$	(0.01)
Net income (loss) per share attributable to common stockholders - basic and diluted	$	(0.13)	$	0.03		$	(0.10)	$	(0.12)	$	0.05		$	(0.07)
Weighted average shares - basic and diluted	91,550		91,550			91,550		83,641		83,641			83,641
Weighted average shares - basic and diluted	91,550		92,773			92,773		83,641		85,756			85,756
Net income (loss) attributable to common stockholders	$	(11,944)	$	4,520		$	(7,424)	$	(10,220)	$	9,341		$	(879)
Foreign currency translation adjustments, net	(1,298)		—			(1,298)		(1,276)		—			(1,276)
Total comprehensive income (loss)	$	(13,242)	$	4,520		$	(8,722)	$	(11,496)	$	9,341		$	(2,155)

	FY 2023
	Nine Months Ended							Six Months Ended
	December 31							September 30
	As previously reported		Adjustments		Reference	As restated		As previously reported		Adjustments		Reference	As restated
Revenue
Product	$	198,597	$	4,595	(a)	$	203,192	$	123,178	$	2,520	(a)	$	125,698
Service and subscription	99,066		871		(a)	99,937		66,116		666		(a)	66,782
Royalty	9,744		—			9,744		6,918		—			6,918
Total revenue	307,407		5,466			312,873		196,212		3,186			199,398
Cost of revenue
Product	163,010		—			163,010		104,482		—			104,482
Service and subscription	42,229		—			42,229		29,850		—			29,850
Total cost of revenue	205,239		—			205,239		134,332		—			134,332
Gross profit	102,168		5,466			107,634		61,880		3,186			65,066
Operating expenses
Sales and marketing	47,894		—			47,894		31,555		—			31,555
General and administrative	35,223		—			35,223		24,254		—			24,254
Research and development	33,925		—			33,925		22,671		—			22,671
Restructuring charges	1,605		—			1,605		1,646		—			1,646
Total operating expenses	118,647		—			118,647		80,126		—			80,126
Income (loss) from operations	(16,479)		5,466			(11,013)		(18,246)		3,186			(15,060)
Other income, net	2,638		—			2,638		3,182		—			3,182
Interest expense	(7,537)		—			(7,537)		(4,836)		—			(4,836)
Change in fair value of warrant liability	—		10,678		(b)	10,678		—		10,675		(b)	10,675
Loss on debt extinguishment, net	(1,392)		—			(1,392)		(1,392)		—			(1,392)
Net income (loss) from operations before income taxes	(22,770)		16,144			(6,626)		(21,292)		13,861			(7,431)
Income tax provision	1,564		—			1,564		872		—			872
Net income (loss) from operations	$	(24,334)	$	16,144		$	(8,190)	$	(22,164)	$	13,861		$	(8,303)
Deemed dividend on warrants	(389)		389		(b)	—		(389)		389		(b)	—
Net income (loss) attributable to common stockholders	$	(24,723)	$	16,533		$	(8,190)	$	(22,553)	$	14,250		$	(8,303)
Net income (loss) per share attributable to common stockholders - basic	$	(0.28)	$	0.18		$	(0.10)	$	(0.25)	$	0.16		$	(0.09)
Net income (loss) per share attributable to common stockholders - diluted	$	(0.28)	$	0.10		$	(0.18)	$	(0.25)	$	—		$	(0.18)
Weighted average shares - basic	89,335		89,335			89,335		87,617		87,617			87,617
Weighted average shares - diluted	89,335		89,335			90,440		87,617		87,617			89,315
Net income (loss)	$	(24,334)	$	16,144		$	(8,190)	$	(22,164)	$	13,861		$	(8,303)
Foreign currency translation adjustments, net	(1,094)		—			(1,094)		(2,574)		—			(2,574)
Total comprehensive income (loss)	$	(25,428)	$	16,144		$	(9,284)	$	(24,738)	$	13,861		$	(10,877)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	9 months ended		6 months ended		3 months ended
	12/31/2023		9/30/2023		6/30/2023
					As restated
Operating activities
Net loss	$	(22,342)	$	(12,473)	$	(9,142)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	7,593		5,295		2,752
Amortization of debt issuance costs	1,948		1,234		520
Provision for manufacturing and service inventories	3,328		892		516
Gain on PPP loan extinguishment			—		—
Stock-based compensation	3,741		2,831		1,901
Change in fair value of warrant liabilities	(6,146)		(3,933)		469
Other non-cash	3,010		826		750
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	12,616		21,109		6,255
Manufacturing inventories	(3,099)		(2,070)		(692)
Service parts inventories	(1,520)		(1,505)		(516)
Accounts payable	(13,226)		(9,073)		(5,421)
Prepaid expenses	394		8		(2,287)
Deferred revenue	(4,780)		(9,268)		(2,929)
Accrued restructuring charges	—		—		110
Accrued compensation	(425)		(1,946)		(816)
Other assets	(3,230)		(2,240)		(1,422)
Other liabilities	2,605		162		508
Net cash used in operating activities	(19,533)		(10,151)		(9,444)
Investing activities
Purchases of property and equipment	(5,025)		(3,925)		(2,299)
Net cash used in investing activities	(5,025)		(3,925)		(2,299)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	12,889		12,889		12,889
Repayments of long-term debt	(4,497)		(3,247)		(1,997)
Borrowings of credit facility	318,223		217,084		108,186
Repayments of credit facility	(303,671)		(213,082)		(107,834)
Proceeds from issuance of common stock	—		—		(9)
Net cash provided by financing activities	22,944		13,644		11,235
Effect of exchange rate changes on cash and cash equivalents	(12)		11		(2)
Net change in cash, cash equivalents, and restricted cash	(1,626)		(421)		(510)
Cash, cash equivalents, and restricted cash at beginning of period	26,175		26,175		26,175
Cash, cash equivalents, and restricted cash at end of period	$	24,549	$	25,754	$	25,665
Supplemental disclosure of cash flow information
Cash paid for interest	$	9,154	$	6,079	$	2,665
Cash paid for income taxes, net of refunds	$	1,136	$	831	$	307
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	164	$	689	$	977
Transfer of manufacturing inventory to services inventory	$	75	$	(218)	$	(226)
Transfer of manufacturing inventory to property and equipment	$	205	$	172	$	143
Paid-in-kind interest	$	1,401	$	777	$	191
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	24,377	$	25,574	$	25,465
Restricted cash, current	172		180		200
Total cash, cash equivalents and restricted cash at the end of period	$	24,549	$	25,754	$	25,665

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	9 months ended		6 months ended		3 months ended
	12/31/2022		9/30/2022		6/30/2022
	As restated		As restated		As restated
Operating activities
Net income (loss)	$	(8,190)	$	(8,303)	$	(879)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	7,235		5,133		2,586
Amortization of debt issuance costs	1,201		768		336
Long-term debt related costs	992		992		—
Provision for manufacturing and service inventories	11,334		9,946		1,631
Gain on PPP loan extinguishment	—		—		—
Stock-based compensation	8,340		5,357		3,069
Change in fair value of warrant liabilities	(10,678)		(10,675)		(7,582)
Non-cash loss on debt extinguishment	—		—		992
Other non-cash	(3,193)		(2,918)		(1,469)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	(3,367)		8,264		4,677
Manufacturing inventories	(9,352)		416		(412)
Service parts inventories	(2,671)		(1,971)		(1,384)
Accounts payable	7,015		293		(175)
Prepaid expenses	654		(1,208)		—
Deferred revenue	(19,817)		(20,933)		(15,393)
Accrued restructuring charges	130		115		39
Accrued compensation	(614)		(2,949)		(1,610)
Other assets	(1,455)		(835)		(3,000)
Other liabilities	2,840		573		228
Net cash used in operating activities	(19,596)		(17,935)		(18,346)
Investing activities
Purchases of property and equipment	(10,644)		(7,795)		(3,036)
Business acquisitions	(2,000)		(2,000)		(2,000)
Net cash used in investing activities	(12,644)		(9,795)		(5,036)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	—		—		—
Repayments of long-term debt	(23,346)		(22,096)		(20,846)
Borrowings of credit facility	363,103		229,605		109,740
Repayments of credit facility	(353,502)		(226,240)		(110,575)
Proceeds from issuance of common stock	66,718		66,723		66,324
Net cash provided by financing activities	52,973		47,992		44,643
Effect of exchange rate changes on cash and cash equivalents	21		166		29
Net change in cash, cash equivalents, and restricted cash	20,754		20,428		21,290
Cash, cash equivalents, and restricted cash at beginning of period	5,493		5,493		5,493
Cash, cash equivalents, and restricted cash at end of period	$	26,247	$	25,921	$	26,783
Supplemental disclosure of cash flow information
Cash paid for interest	$	6,270	$	4,114	$	1,863
Cash paid for income taxes, net of refunds	$	837	$	465	$	115
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	1,198	$	548	$	133
Transfer of manufacturing inventory to services inventory	$	2,308	$	1,905	$	890
Transfer of manufacturing inventory to property and equipment	$	264	$	279	$	193
Paid-in-kind interest	$	319	$	319	$	319
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	26,028	$	25,698	$	26,528
Restricted cash, current	219		223		255
Total cash, cash equivalents and restricted cash at the end of period	$	26,247	$	25,921	$	26,783

	Three Months Ended June 30, 2023
	As previously reported		Restatement adjustments		Reference	As restated
Operating activities
Net income (loss)	$	(10,576)	$	1,434	(a) (b)	$	(9,142)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	2,752		—			2,752
Amortization of debt issuance costs	520		—			520
Long-term debt related costs	—		—			—
Provision for manufacturing and service inventories	516		—			516
Gain on PPP loan extinguishment	—		—			—
Stock-based compensation	1,901		—			1,901
Change in fair value of warrant liabilities	—		469		(b)	469
Non-cash income tax benefit	—		—			—
Non-cash loss on debt extinguishment	—		—			—
Other non-cash	734		16			750
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	6,255		—			6,255
Manufacturing inventories	(692)		—			(692)
Service parts inventories	(516)		—			(516)
Accounts payable	(5,421)		—			(5,421)
Prepaid expenses	(2,287)		—			(2,287)
Deferred revenue	(2,221)		(708)		(a)	(2,929)
Accrued restructuring charges	110		—			110
Accrued compensation	(816)		—			(816)
Other assets	(1,422)		—			(1,422)
Other liabilities	508		—			508
Net cash used in operating activities	(10,655)		1,211			(9,444)
Investing activities
Purchases of property and equipment	(2,299)		—			(2,299)
Net cash used in investing activities	(2,299)		—			(2,299)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	14,100		(1,211)			12,889
Repayments of long-term debt	(1,997)		—			(1,997)
Borrowings of credit facility	108,186		—			108,186
Repayments of credit facility	(107,834)		—			(107,834)
Proceeds from issuance of common stock	(9)		—			(9)
Net cash provided by financing activities	12,446		(1,211)			11,235
Effect of exchange rate changes on cash and cash equivalents	(2)		—			(2)
Net change in cash, cash equivalents, and restricted cash	(510)		—			(510)
Cash, cash equivalents, and restricted cash at beginning of period	26,175		—			26,175
Cash, cash equivalents, and restricted cash at end of period	$	25,665	$	—		$	25,665
Supplemental disclosure of cash flow information
Cash paid for interest	$	2,665	$	—		$	2,665
Cash paid for income taxes, net of refunds	$	307	$	—		$	307
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	977	$	—		$	977
Transfer of manufacturing inventory to services inventory	$	(226)	$	—		$	(226)
Transfer of manufacturing inventory to property and equipment	$	143	$	—		$	143
Paid-in-kind interest	$	191	$	—		$	191
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	25,465	$	—		$	25,465
Restricted cash, current	200		—			200
Total cash, cash equivalents and restricted cash at the end of period	$	25,665	$	—		$	25,665

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Nine Months Ended December 31, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Operating activities
Net income (loss)	$	(24,334)	$	16,144	(a) (b)	$	(8,190)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	7,235		—			7,235
Amortization of debt issuance costs	1,201		—			1,201
Long-term debt related costs	992		—			992
Provision for manufacturing and service inventories	11,334		—			11,334
Stock-based compensation	8,340		—			8,340
Change in fair value of warrant liabilities	—		(10,678)		(b)	(10,678)
Other non-cash	(3,193)		—			(3,193)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	(3,367)		—			(3,367)
Manufacturing inventories	(9,352)		—			(9,352)
Service parts inventories	(2,671)		—			(2,671)
Accounts payable	7,015		—			7,015
Prepaid expenses	654		—			654
Deferred revenue	(14,351)		(5,466)		(a)	(19,817)
Accrued restructuring charges	130		—			130
Accrued compensation	(614)		—			(614)
Other assets	(1,455)		—			(1,455)
Other liabilities	2,840		—			2,840
Net cash used in operating activities	(19,596)		—			(19,596)
Investing activities
Purchases of property and equipment	(10,644)		—			(10,644)
Business acquisitions	(2,000)		—			(2,000)
Net cash used in investing activities	(12,644)		—			(12,644)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	—		—			—
Repayments of long-term debt	(23,346)		—			(23,346)
Borrowings of credit facility	363,103		—			363,103
Repayments of credit facility	(353,502)		—			(353,502)
Proceeds from issuance of common stock	66,718		—			66,718
Net cash provided by financing activities	52,973		—			52,973
Effect of exchange rate changes on cash and cash equivalents	21		—			21
Net change in cash, cash equivalents, and restricted cash	20,754		—			20,754
Cash, cash equivalents, and restricted cash at beginning of period	5,493		—			5,493
Cash, cash equivalents, and restricted cash at end of period	$	26,247	$	—		$	26,247
Supplemental disclosure of cash flow information
Cash paid for interest	$	6,270	$	—		$	6,270
Cash paid for income taxes, net of refunds	$	837	$	—		$	837
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	1,198	$	—		$	1,198
Transfer of manufacturing inventory to services inventory	$	2,308	$	—		$	2,308
Transfer of manufacturing inventory to property and equipment	$	264	$	—		$	264
Paid-in-kind interest	$	319	$	—		$	319
Deemed dividend	$	389	$	(389)	(b)	$	—
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	26,028	$	—		$	26,028
Restricted cash, current	219		—			219
Total cash, cash equivalents and restricted cash at the end of period	$	26,247	$	—		$	26,247

	Six Months Ended September 30, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Operating activities
Net income (loss)	$	(22,164)	$	13,861	(a) (b)	$	(8,303)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	5,133		—			5,133
Amortization of debt issuance costs	768		—			768
Long-term debt related costs	992		—			992
Provision for manufacturing and service inventories	9,946		—			9,946
Gain on PPP loan extinguishment	—		—			—
Stock-based compensation	5,357		—			5,357
Change in fair value of warrant liabilities	—		(10,675)		(b)	(10,675)
Other non-cash	(2,918)		—			(2,918)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	8,264		—			8,264
Manufacturing inventories	416		—			416
Service parts inventories	(1,971)		—			(1,971)
Accounts payable	293		—			293
Prepaid expenses	(1,208)		—			(1,208)
Deferred revenue	(17,747)		(3,186)		(a)	(20,933)
Accrued restructuring charges	115		—			115
Accrued compensation	(2,949)		—			(2,949)
Other assets	(835)		—			(835)
Other liabilities	573		—			573
Net cash used in operating activities	(17,935)		—			(17,935)
Investing activities
Purchases of property and equipment	(7,795)		—			(7,795)
Business acquisitions	(2,000)		—			(2,000)
Net cash used in investing activities	(9,795)		—			(9,795)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	—		—			—
Repayments of long-term debt	(22,096)		—			(22,096)
Borrowings of credit facility	229,605		—			229,605
Repayments of credit facility	(226,240)		—			(226,240)
Proceeds from issuance of common stock	66,723		—			66,723
Net cash provided by financing activities	47,992		—			47,992
Effect of exchange rate changes on cash and cash equivalents	166		—			166
Net change in cash, cash equivalents, and restricted cash	20,428		—			20,428
Cash, cash equivalents, and restricted cash at beginning of period	5,493		—			5,493
Cash, cash equivalents, and restricted cash at end of period	$	25,921	$	—		$	25,921
Supplemental disclosure of cash flow information
Cash paid for interest	$	4,114	$	—		$	4,114
Cash paid for income taxes, net of refunds	$	465	$	—		$	465
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	548	$	—		$	548
Transfer of manufacturing inventory to services inventory	$	1,905	$	—		$	1,905
Transfer of manufacturing inventory to property and equipment	$	279	$	—		$	279
Paid-in-kind interest	$	319	$	—		$	319
Deemed dividend	$	389	$	(389)	(b)	$	—
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	25,698	$	—		$	25,698
Restricted cash, current	223		—			223
Total cash, cash equivalents and restricted cash at the end of period	$	25,921	$	—		$	25,921

	Three Months Ended June 30, 2022
	As previously reported		Restatement adjustments		Reference	As restated
Operating activities
Net income (loss)	$	(10,220)	$	9,341	(a) (b)	$	(879)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	2,586		—			2,586
Amortization of debt issuance costs	336		—			336
Long-term debt related costs			—			—
Provision for manufacturing and service inventories	1,631		—			1,631
Gain on PPP loan extinguishment	—		—			—
Stock-based compensation	3,069		—			3,069
Change in fair value of warrant liabilities	—		(7,582)		(b)	(7,582)
Non-cash income tax benefit	—		—			—
Non-cash loss on debt extinguishment	992		—			992
Other non-cash	(1,469)		—			(1,469)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	4,677		—			4,677
Manufacturing inventories	(412)		—			(412)
Service parts inventories	(1,384)		—			(1,384)
Accounts payable	(175)		—			(175)
Prepaid expenses	—		—			—
Deferred revenue	(13,634)		(1,759)		(a)	(15,393)
Accrued restructuring charges	39		—			39
Accrued compensation	(1,610)		—			(1,610)
Other assets	(3,000)		—			(3,000)
Other liabilities	228		—			228
Net cash used in operating activities	(18,346)		—			(18,346)
Investing activities
Purchases of property and equipment	(3,036)		—			(3,036)
Business acquisitions	(2,000)		—			(2,000)
Net cash used in investing activities	(5,036)		—			(5,036)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	—		—			—
Repayments of long-term debt	(20,846)		—			(20,846)
Borrowings of credit facility	109,740		—			109,740
Repayments of credit facility	(110,575)		—			(110,575)
Borrowings of paycheck protection program	—		—			—
Proceeds from secondary offering, net	—		—			—
Payment of taxes due upon vesting of restricted stock	—		—			—
Proceeds from issuance of common stock	66,324		—			66,324
Net cash provided by financing activities	44,643		—			44,643
Effect of exchange rate changes on cash and cash equivalents	29		—			29
Net change in cash, cash equivalents, and restricted cash	21,290		—			21,290
Cash, cash equivalents, and restricted cash at beginning of period	5,493		—			5,493
Cash, cash equivalents, and restricted cash at end of period	$	26,783	$	—		$	26,783
Supplemental disclosure of cash flow information
Cash paid for interest	$	1,863	$	—		$	1,863
Cash paid for income taxes, net of refunds	$	115	$	—		$	115
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	133	$	—		$	133
Transfer of manufacturing inventory to services inventory	$	890	$	—		$	890
Transfer of manufacturing inventory to property and equipment	$	193	$	—		$	193
Paid-in-kind interest	$	319	$	—		$	319
Deemed dividend	$	389	$	(389)	(b)	$	—
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents	$	26,528	$	—		$	26,528
Restricted cash, current	255		—			255
Total cash, cash equivalents and restricted cash at the end of period	$	26,783	$	—		$	26,783

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(in thousands)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Deficit
Three Months Ended	Shares	Amount
Balance, March 31, 2023, As restated	93,574	$	936	$	702,370	$	(786,094)	$	(1,581)	$	(84,369)
Activity, As reported	131	2		3,133		(10,576)		249		(7,192)
Adjustments	—	—		(1,194)		1,434		—		240
Balance, June 30, 2023, As restated	93,705	$	938	$	704,309	$	(795,236)	$	(1,332)	$	(91,321)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Deficit
Three Months Ended	Shares	Amount
Balance, June 30, 2023, As Restated	93,705	$	938	$	704,309	$	(795,236)	$	(1,332)	$	(91,321)
Net loss	—	—		—		(3,331)		—		(3,331)
Foreign currency translation adjustments, net	—	—		—		—		(720)		(720)
Shares issued under employee incentive plans, net	1,814	18		(18)		—		—		—
Stock-based compensation	—	—		939		—		—		939
Balance, September 30, 2023	95,519	$	956	$	705,230	$	(798,567)	$	(2,052)	$	(94,433)

Six Months Ended
Balance, March 31, 2023, As Restated	93,574	$	936	$	702,370	$	(786,094)	$	(1,581)	$	(84,369)
Net loss	—	—		—		(12,473)		—		(12,473)
Foreign currency translation adjustments, net	—	—		—		—		(471)		(471)
Warrants issued related to long-term debt	—	—		49		—		—		49
Shares issued under employee incentive plans, net	1,945	20		(20)		—		—		—
Stock-based compensation	—	—		2,831		—		—		2,831
Balance, September 30, 2023	95,519	$	956	$	705,230	$	(798,567)	$	(2,052)	$	(94,433)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Deficit
Three Months Ended	Shares	Amount
Balance, September 30, 2023	95,519	$	956	$	705,230	$	(798,567)	$	(2,052)	$	(94,433)
Net loss	—	—		—		(9,869)		—		(9,869)
Foreign currency translation adjustments, net	—	—		—		—		1,465		1,465
Shares issued under employee incentive plans, net	331	3		(3)		—		—		—
Stock-based compensation	—	—		906		—		—		906
Balance, December 31, 2023	95,850	$	959	$	706,133	$	(808,436)	$	(587)	$	(101,931)

Nine Months Ended
Balance, March 31, 2023	93,574	$	936	$	702,370	$	(786,094)	$	(1,581)	$	(84,369)
Net loss	—	—		—		(22,342)		—		(22,342)
Foreign currency translation adjustments, net	—	—		—		—		994		994
Shares issued under employee incentive plans, net	2,276	23		(23)		—		—		—
Warrants issued in connection with debt refinancing	—	—		49		—		—		49
Stock-based compensation	—	—		3,737		—		—		3,737
Balance, December 31, 2023	95,850	$	959	$	706,133	$	(808,436)	$	(587)	$	(101,931)

QUANTUM CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(in thousands)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Deficit
Three Months Ended	Shares	Amount
Balance, March 31, 2022, As restated	60,433	$	605	$	624,805	$	(767,726)	$	(1,423)	$	(143,739)
Activity, As reported	30,173	302		69,091		(10,219)		(1,276)		57,898
Adjustments	—	—		—		9,341		—		9,341
Balance, June 30, 2022, As restated	90,606	$	907	$	693,896	$	(768,604)	$	(2,699)	$	(76,500)
Activity, As reported	1,552	15		2,671		(11,943)		(1,298)		(10,555)
Adjustments	—	—		—		4,520		—		4,520
Balance, September 30, 2022, As restated	92,158	$	922	$	696,567	$	(776,027)	$	(3,997)	$	(82,535)
Activity, As reported	986	$	10	$	2,969	$	(2,170)	$	1,480	2,289
Adjustments	—	—		—		2,283		—		2,283
Balance, December 31, 2022, As restated	93,144	$	932	$	699,536	$	(775,914)	$	(2,517)	$	(77,963)