XML 40 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Revision of Prior Financial Statements
 6 Months Ended
Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]  
Revision of Prior Financial Statements Revision of Prior Financial Statements

During preparation of June 30, 2020 financial statements, two additional errors impacting the prior financial statements were identified, as follows:
•
Currency Translation Adjustment and Other Comprehensive Income of $1.1 million was not recognized in earnings in connection with the dissolution of the Company’s wholly owned foreign entity, PetroValve International in 2015.

•
Cash flow presentation relating to proceeds received from the sale of FCC (which occurred in the first quarter of 2019) and subsequent release of escrow amounts in subsequent periods that were improperly classified between operating and investing activities.

Consolidated Balance Sheets - The revision relating to currency translation discussed above had no impact on total stockholders’ equity, but impacted the components of stockholders’ equity as follows (in thousands):

 
 
As of December 31, 2018
 
 
As previously reported
Revisions
As revised
Accumulated other comprehensive loss
 
$
(1,116
)
$
1,147

$
31

Retained earnings (accumulated deficit)
 
(107,176
)
(1,147
)
(108,323
)

 
 
As of March 31, 2019
 
 
As previously reported*
Revisions
As revised
Accumulated other comprehensive loss
 
$
(1,022
)
$
1,147

$
125

Retained earnings (accumulated deficit)
 
(76,314
)
(1,147
)
(77,461
)
 
 
As of June 30, 2019
 
 
As previously reported*
Revisions
As revised
Accumulated other comprehensive loss
 
$
(998
)
$
1,147

$
149

Retained earnings (accumulated deficit)
 
(90,727
)
(1,147
)
(91,874
)
 
 
As of September 30, 2019
 
 
As previously reported*
Revisions
As revised
Accumulated other comprehensive loss
 
$
(962
)
$
1,147

$
185

Retained earnings (accumulated deficit)
 
(101,770
)
(1,147
)
(102,917
)

 
 
As of December 31, 2019
 
 
As previously reported*
Revisions
As revised
Accumulated other comprehensive loss
 
$
(966
)
$
1,147

$
181

Retained earnings (accumulated deficit)
 
(141,091
)
(1,147
)
(142,238
)

 
 
As of March 31, 2020
 
 
As previously reported*
Revisions
As revised
Accumulated other comprehensive loss
 
$
(1,089
)
$
1,147

$
58

Retained earnings (accumulated deficit)
 
(205,058
)
(1,147
)
(206,205
)

*As previously reported numbers reflect the revised balances for each of the periods as disclosed in the period ended March 31, 2020.


Consolidated Statements of Cash Flows - The revision discussed above impacted the statement of cash flow as follows (in thousands):

 
 
For the three months ended March 31, 2019
 
 
As previously reported
Revisions
As revised
Adjustment to reconcile net cash in operating activities
 






   Other current assets
 
$
(18,661
)
$
14,219

$
(4,442
)
   Other long-term assets
 
—

3,286

3,286

Net cash used in operating activities
 
(25,721
)
17,505

(8,216
)
Proceeds from sale of business
 
169,722

(17,505
)
152,217

Net cash provided by investing activities
 
169,290

(17,505
)
151,785


 
 
For the six months ended June 30, 2019
 
 
As previously reported
Revisions
As revised
Adjustment to reconcile net cash in operating activities
 






   Other current assets
 
$
(16,209
)
$
14,219

$
(1,990
)
   Other long-term assets
 
—

3,286

3,286

Net cash used in operating activities
 
(23,849
)
17,505

(6,344
)
Proceeds from sale of business
 
169,722

(17,505
)
152,217

Net cash provided by investing activities
 
168,868

(17,505
)
151,363



 
 
For the nine months ended September 30, 2019
 
 
As previously reported
Revisions
As revised
Adjustment to reconcile net cash in operating activities
 






   Other current assets
 
$
(14,974
)
$
10,938

$
(4,036
)
   Other long-term assets
 
—

3,286

3,286

Net cash used in operating activities
 
(14,348
)
14,224

(124
)
Proceeds from sale of business
 
169,722

(14,224
)
155,498

Net cash provided by investing activities
 
167,497

(14,224
)
153,273


 
 
For the year ended December 31, 2019
 
 
As previously reported
Revisions
As revised
Adjustment to reconcile net cash in operating activities
 






   Other current assets
 
$
(8,359
)
$
10,938

$
2,579

   Other long-term assets
 
1,131

3,286

4,417

Net cash used in operating activities
 
(18,769
)
14,224

(4,545
)
Proceeds from sale of business
 
169,722

(14,224
)
155,498

Net cash provided by investing activities
 
166,937

(14,224
)
152,713


 
 
For the three months ended March 31, 2020
 
 
As previously reported
Revisions
As revised
Adjustment to reconcile net cash in operating activities
 






   Other current assets
 
$
6,926

$
(3,281
)
$
3,645

Net cash used in operating activities
 
(20,496
)
(3,281
)
(23,777
)
Proceeds from sale of business
 
—

3,281

3,281

Net cash provided by investing activities
 
41

3,281

3,322



In our March 31, 2020 financial statements, we disclosed the correction of two immaterial errors relating to intangibles that should have been written off in prior periods and improper elimination of profit on intercompany inventory transactions. Such revisions were not material to the previously issued financial statements.

Management evaluated the impact of these errors, individually and in the aggregate, on previously issued financial statements and concluded the impact was not material. Due to the currency translation error, net loss for the year ended December 31, 2015 was originally reported as $13.5 million and would be revised to $14.6 million.