Prior Periods' Financial Statement Revision

6 Months Ended

Jun. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Prior Periods' Financial Statement Revision

Prior Periods' Financial Statement Revisions

As disclosed in our 2019 Annual Report, we identified various misstatements in our previously issued financial statements

as of and for the years ended December 31, 2018 and 2017, as well as the interim periods in 2018 and the first three quarters of

2019. These misstatements primarily related to (i) intentional misstatements in the accounting for inventory at one of our smaller foreign subsidiaries and (ii) the tax accounting associated with the 2018 impairment of our joint venture. We assessed the materiality of the misstatements on prior periods’ financial statements in accordance with SEC Staff Accounting Bulletin (“SAB”) Topic 1.M, Materiality, codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections, (“ASC 250”) and concluded that the misstatements were not material to the prior annual or interim periods. However, we revised our previously issued 2018 and 2017 annual consolidated financial statements to correct for these misstatements. In connection with such revision, we also corrected for other immaterial misstatements.

In connection with the filing of this Quarterly Report, we have revised the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), Changes in Stockholders’ Equity, and Cash Flows for the six months ended June 30, 2019, and the related notes to revise for those misstatements that impacted such period. We will revise the remaining 2019 previously issued quarterly financial statements in connection with future 2020 filings on Form 10-Q.

The following table presents the effect of the correction of the misstatements and the resulting revision on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

	Three Months Ended June 30, 2019
	As Originally Reported		Adjustment		As Revised
Cost of sales (exclusive of depreciation and amortization)	$	163,513	$	586	$	164,099
Income (loss) from operations	8,098		(586)		7,512
Loss before (provision) benefit for income taxes and share of net income from joint venture	(5,917)		(586)		(6,503)
Net income (loss)	(6,697)		(586)		(7,283)
Foreign currency translation gain (loss)	(1,434)		(63)		(1,497)
Comprehensive income (loss)	(15,093)		(649)		(15,742)
Basic net income (loss) per share	$	(0.16)	$	(0.01)	$	(0.17)
Diluted net income (loss) per share	$	(0.16)	$	(0.01)	$	(0.17)

	Six Months Ended June 30, 2019
	As Originally Reported		Adjustment		As Revised
Cost of sales (exclusive of depreciation and amortization)	$	324,782	$	1,504	$	326,286
Income (loss) from operations	8,699		(1,504)		7,195
Loss before (provision) benefit for income taxes and share of net income from joint venture	(22,545)		(1,504)		(24,049)
Net income (loss)	(25,297)		(1,504)		(26,801)
Foreign currency translation gain (loss)	(172)		(4)		(176)
Comprehensive income (loss)	(36,287)		(1,508)		(37,795)
Basic net income (loss) per share	$	(0.60)	$	(0.04)	$	(0.64)
Diluted net income (loss) per share	$	(0.60)	$	(0.04)	$	(0.64)

The following table presents the effect of the correction of the misstatements on the Condensed Consolidated Statements of Changes in Stockholders’ Equity.

	As Originally Reported		Adjustment		As Revised
As of and for the three months ended June 30, 2019
Additional paid-in capital	$	513,380	$	(8,824)	$	504,556
Net income (loss)	(6,697)		(586)		(7,283)
Accumulated deficit	(93,328)		7,985		(85,343)
Foreign currency translation gain (loss)	(1,434)		(63)		(1,497)
Accumulated other comprehensive income (loss)	(42,615)		307		(42,308)
Total stockholders' equity	377,861		(532)		377,329
As of and for the six months ended June 30, 2019
Additional paid-in capital	$	513,380	$	(8,824)	$	504,556
Net income (loss)	(25,297)		(1,504)		(26,801)
Accumulated deficit	(93,328)		7,985		(85,343)
Foreign currency translation gain (loss)	(172)		(4)		(176)
Accumulated other comprehensive income (loss)	(42,615)		307		(42,308)
Total stockholders' equity	377,861		(532)		377,329

The following table presents the effect of the correction of the misstatements on the Condensed Consolidated Statements of Cash Flows.

	Six Months Ended June 30, 2019
	As Originally Reported		Adjustment		As Revised
Net income (loss)	$	(25,297)	$	(1,504)	$	(26,801)
Deferred income taxes	(6,762)		(1,331)		(8,093)
Changes in operating assets and liabilities, net of acquisitions:
Inventories	(5,826)		987		(4,839)
Income taxes receivable and payable, net	315		1,331		1,646
Other	7,210		517		7,727