Correction of immaterial errors

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

As reported in our Annual Report as of and for the fiscal year ended December 31, 2022, we determined that an error existed in our previously issued consolidated financial statements. Specifically, we identified we had established nexus in several jurisdictions beginning in the year ended December 31, 2019 in which we were not collecting and remitting sales taxes appropriately. The error was evaluated and recorded as of each period impacted by the error under the SEC guidance on evaluating the materiality of prior period misstatements to the Company’s financial statements. We evaluated the error and concluded that it was not material to any previously issued consolidated financial statements and accompanying Unaudited Condensed Consolidated financial statements. Although the error was not material to any period, we corrected the accompanying historical Unaudited Condensed Consolidated financial statements for each period impacted. The corrections to the quarter ended June 30, 2022 are presented below to reflect the sales tax liability and associated expenses owed within the period for comparative purposes.

The effect of the adjustments to our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2022 was as follows:


	June 30, 2022
(In thousands)	As reported		Adjustment		As corrected
Prepaid expenses and other current assets	$	6,890	$	302	$	7,192
Total current assets	118,057		302		118,359
Total assets	470,379		302		470,681
Accrued expenses and other current liabilities	7,187		(423)		6,764
Sales taxes payable	-		3,494		3,494
Total current liabilities	33,298		3,071		36,369
Total liabilities	58,066		3,071		61,137
Accumulated deficit	(184,640)		(2,769)		(187,409)
Total shareholders’ equity	412,313		(2,769)		409,544
Total liabilities and shareholders’ equity	470,379		302		470,681

The effect of the adjustments to our Unaudited Condensed Consolidated Statements of Operations for the quarter ended June 30, 2022 was as follows:


	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
(In thousands, except per share and share data)	As reported		Adjustment		As corrected		As reported		Adjustment		As corrected
General and administrative	$	11,351	$	301	$	11,652	$	22,546	$	636	$	23,182
Total operating expenses	116,795		301		117,096		160,647		636		161,283
Operating loss	(76,262)		(301)		(76,563)		(83,895)		(636)		(84,531)
Interest expense	(9)		(23)		(32)		(173)		(43)		(216)
Total other expense, net	(31)		(23)		(54)		(63)		(43)		(106)
Loss before income tax benefit	(76,293)		(324)		(76,617)		(83,958)		(679)		(84,637)
Net loss	(72,554)		(324)		(72,878)		(79,620)		(679)		(80,299)
Net loss per basic and diluted share	(1.71)		(0.01)		(1.72)		(1.89)		(0.01)		(1.90)

The effect of the adjustments to our Unaudited Condensed Consolidated Statements of Cash flows for the quarter ended June 30, 2022 was as follows:


	Six Months Ended June 30, 2022
(In thousands)	As reported		Adjustment		As corrected
Net loss	$	(79,620)	$	(679)	$	(80,299)
Prepaid expenses and other current assets	(1,492)		(919)		(2,411)
Sales taxes payable	-		1,598		1,598