RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

9 Months Ended

Jun. 30, 2021

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

2.           RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

Subsequent to the filing of its Form 10-Q, the Company identified an error in its accounting for certain tax attributes related to the acquisition of Bolder BioPATH, Inc. in the Company's third fiscal quarter. The Company should have established a deferred tax liability with an offset to goodwill in connection with the accounting for the opening balance sheet of the acquisition as a result of book-to-tax differences primarily related to the customer relationship intangible and property and equipment identified in the Company’s June 30, 2021 quarterly financial statements. Subsequent to the establishment of the deferred tax liability as of the opening balance sheet, the Company should have reversed a portion of its (i.e. the acquiror) pre-existing valuation allowance and taken the income tax benefit through the statements of operations for the three and nine months ended June 30, 2021.

The following tables summarize the effects of the restatement on the condensed consolidated balance sheet as of June 30, 2021 and on the condensed consolidated statements of operations for the three and nine months ended June 30, 2021.

	As of June 30, 2021 (unaudited)
	As Previously Reported		Restated Adjustment		As Restated
Balance Sheet
Total current assets	$	48,062	$	—	$	48,062
Property and equipment, net		44,678		—		44,678
Goodwill		45,750		4,867		50,617
Other noncurrent assets		33,383		—		33,383
Total Assets	$	171,873	$	4,867	$	176,740
Liabilities and shareholders' equity
Total liabilities	$	82,979	$	—	$	82,979
Common shares, no par value		3,928		—		3,928
Additional paid-in-capital		110,230		—		110,230
Accumulated deficit	$	(25,264)	$	4,867	$	(20,397)
Total Liabilities and shareholders' equity	$	171,873	$	4,867	$	176,740

	Three Months Ended June 30, 2021 (unaudited)
	As Previously Reported		Restated Adjustment		As Restated
Total revenue	$	22,892	$	—	$	22,892
Total cost of revenue		15,246		—		15,246
Gross profit		7,646		—		7,646
Total operating expenses		9,349		—		9,349
Operating income (loss)		(1,703)		—		(1,703)
Interest expense		(449)		—		(449)
Other income (expense)		1		—		1
Income tax expense (benefit)		114		(4,867)		(4,753)
Net income (loss)	$	(2,265)	$	4,867	$	2,602
Basic net income (loss) per share	$	(0.15)			$	0.18
Diluted net income (loss) per share	$	(0.15)			$	0.17
Basic weighted average shares outstanding		14,656		—		14,656
Diluted weighted average shares outstanding		14,656		727		15,383

	Nine Months Ended June 30, 2021 (unaudited)
	As Previously Reported		Restated Adjustment		As Restated
Total revenue	$	59,529	$	—	$	59,529
Total cost of revenue		39,681		—		39,681
Gross profit		19,848		—		19,848
Total operating expenses		22,058		—		22,058
Operating income (loss)		(2,210)		—		(2,210)
Interest expense		(1,163)		—		(1,163)
Other income (expense)		180		—		180
Income tax expense (benefit)		161		(4,867)		(4,706)
Net income (loss)	$	(3,354)	$	4,867	$	1,513
Basic net income (loss) per share	$	(0.27)			$	0.12
Diluted net income (loss) per share	$	(0.27)			$	0.12
Basic weighted average shares outstanding		12,274		—		12,274
Diluted weighted average shares outstanding		12,274		674		12,948