Correction of immaterial errors

9 Months Ended

Sep. 30, 2023

Accounting Changes and Error Corrections [Abstract]

As reported in our Annual Report, 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 September 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 September 30, 2022 was as follows:


	September 30, 2022
(In thousands)	As reported		Adjustment		As corrected
Prepaid expenses and other current assets	$	8,041	$	341	$	8,382
Total current assets	135,874		341		136,215
Total assets	487,679		341		488,020
Accrued expenses and other current liabilities	7,778		(340)		7,438
Sales taxes payable	-		3,810		3,810
Total current liabilities	36,948		3,470		40,418
Total liabilities	79,430		3,470		82,900
Accumulated deficit	(194,597)		(3,129)		(197,726)
Total shareholders’ equity	408,249		(3,129)		405,120
Total liabilities and shareholders’ equity	487,679		341		488,020

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


	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
(In thousands, except per share and share data)	As reported		Adjustment		As corrected		As reported		Adjustment		As corrected
General and administrative	$	11,581	$	335	$	11,916	$	34,128	$	970	$	35,098
Total operating expenses	52,152		335		52,487		212,800		970		213,770
Operating loss	(11,405)		(335)		(11,740)		(95,300)		(970)		(96,270)
Interest income (expense)	10		(25)		(15)		(181)		(69)		(250)
Total other income, net	849		(25)		824		786		(69)		717
Loss before income tax benefit	(10,556)		(360)		(10,916)		(94,514)		(1,039)		(95,553)
Net loss	(9,957)		(360)		(10,317)		(89,577)		(1,039)		(90,616)
Net loss per basic and diluted share	(0.23)		(0.01)		(0.24)		(2.11)		(0.03)		(2.14)

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


	Nine Months Ended September 30, 2022
(In thousands)	As reported		Adjustment		As corrected
Net loss	$	(89,577)	$	(1,039)	$	(90,616)
Prepaid expenses and other current assets	(1,356)		(487)		(1,843)
Sales taxes payable	-		1,526		1,526