Error Corrections and Prior Period Adjustments |
A breakdown of the understatement of the product return reserves between current and long-term in the consolidated balance sheet are as follows: | | | | | | | | | | | | | | | | | | | | | | | December 31, | (in thousands) | | 2020 | | 2021 | | 2022 | Included in accrued expenses and other current liabilities: | | | | | | | Product return reserves and other product revenue allowances | | $ | 1,956 | | | $ | 4,557 | | | $ | 5,051 | | Included in other long-term liabilities: | | | | | | | Product return reserves | | 4,048 | | | 3,360 | | | 3,132 | | Total understatement of product return reserves and other product revenue allowances | | $ | 6,004 | | | $ | 7,917 | | | $ | 8,183 | | The following tables reflect the impact of the revision for the Product Return Reserve Errors as well as other immaterial corrections on the Company’s consolidated financial statements as of and for the fiscal year ended December 31, 2022, 2021 and 2020: FISCAL YEAR ENDED DECEMBER 31, 2022 (in thousands, except per share data) | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | Consolidated Balance Sheet | | As Previously Reported | | Adjustment | | As Revised | Inventories | | $ | 21,762 | | | $ | (194) | | | $ | 21,568 | | Accounts receivable, net | | 39,180 | | | 1,104 | | | 40,284 | | Prepaid expenses and other current assets | | 33,541 | | | (677) | | | 32,864 | | Total current assets | | 184,949 | | | 233 | | | 185,182 | | Goodwill | | 55,053 | | | 3,991 | | | 59,044 | | Total assets | | $ | 351,830 | | | $ | 4,224 | | | $ | 356,054 | | Accrued expenses and other current liabilities | | $ | 70,997 | | | $ | 4,780 | | | $ | 75,777 | | Total current liabilities | | 124,756 | | | 4,780 | | | 129,536 | | Other long-term liabilities | | 12,161 | | | 3,556 | | | 15,717 | | Total liabilities | | 342,488 | | | 8,336 | | | 350,824 | | Accumulated deficit | | (1,552,913) | | | (4,112) | | | (1,557,025) | | Total stockholder' equity | | 9,342 | | | (4,112) | | | 5,230 | | Total liabilities and stockholders' equity | | $ | 351,830 | | | $ | 4,224 | | | $ | 356,054 | |
| | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2022 | Consolidated Statements of Operations and Comprehensive Loss | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 177,067 | | | $ | (118) | | | $ | 176,949 | | Cost of goods sold, product | | 48,754 | | | 772 | | | 49,526 | | Research and development | | 129,114 | | | 872 | | | 129,986 | | Selling, general and administrative | | 138,699 | | | (98) | | | 138,601 | | Operating loss | | (79,115) | | | (1,664) | | | (80,779) | | Net loss | | $ | (92,562) | | | (1,664) | | | (94,226) | | Comprehensive loss | | $ | (92,562) | | | (1,664) | | | (94,226) | | Earnings per share - basic and diluted | | $(0.51) | | $0.01 | | $(0.52) |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | Condensed Consolidated Statement of Stockholders' (Deficit) Equity | | As Previously Reported | | Adjustment | | As Revised | Accumulated deficit | | $ | (1,552,913) | | | $ | (4,112) | | | $ | (1,557,025) | | Net loss | | $ | (92,562) | | | $ | (1,664) | | | $ | (94,226) | |
| | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2022 | Consolidated Statement of Cash Flows | | As Previously Reported | | Adjustment | | As Revised | Net loss | | $ | (92,562) | | | $ | (1,664) | | | $ | (94,226) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | Change in excess inventory purchase commitments | | (67,618) | | | 1,672 | | | (65,946) | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | 11,695 | | | (398) | | | 11,297 | | Inventories | | 19,793 | | | (706) | | | 19,087 | | Prepaid expenses and other current assets | | 381 | | | 677 | | | 1,058 | | Accrued expenses and other current liabilities | | (38,227) | | | 222 | | | (38,005) | | Other non-current liabilities | | 2,080 | | | 197 | | | 2,277 | | Net cash used in operating activities | | $ | (73,154) | | | $ | — | | | $ | (73,154) | |
FISCAL YEAR ENDED DECEMBER 31, 2021 (in thousands, except per share data) | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | Consolidated Balance Sheet | | As Previously Reported | | Adjustment | | As Revised | Inventories | | $ | 38,195 | | | $ | (1,567) | | | $ | 36,628 | | Accounts receivable, net | | 50,875 | | | 706 | | | 51,581 | | Total current assets | | 272,010 | | | (861) | | | 271,149 | | Goodwill | | 55,053 | | | 3,991 | | | 59,044 | | Other long-term assets, net | | 49,754 | | | 667 | | | 50,421 | | Total assets | | $ | 525,550 | | | $ | 3,797 | | | $ | 529,347 | | Accrued expenses and other current liabilities | | $ | 104,456 | | | $ | 4,558 | | | $ | 109,014 | | Total current liabilities | | 256,493 | | | 4,558 | | | 261,051 | | Other long-term liabilities | | 82,525 | | | 1,687 | | | 84,212 | | Total liabilities | | 449,094 | | | 6,245 | | | 455,339 | | Accumulated deficit | | (1,460,351) | | | (2,448) | | | (1,462,799) | | Total stockholder' equity | | 76,456 | | | (2,448) | | | 74,008 | | Total liabilities and stockholders' equity | | $ | 525,550 | | | $ | 3,797 | | | $ | 529,347 | |
| | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2021 | Consolidated Statements of Operations and Comprehensive Loss | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 142,216 | | | $ | (1,928) | | | $ | 140,288 | | Cost of goods sold, product | | 117,352 | | | (2,723) | | | 114,629 | | Selling, general and administrative | | 174,161 | | | (21) | | | 174,140 | | Operating loss | | (265,318) | | | 816 | | | (264,502) | | Net loss | | $ | (282,840) | | | $ | 816 | | | $ | (282,024) | | Comprehensive loss | | $ | (282,847) | | | $ | 816 | | | $ | (282,031) | | Earnings per share - basic and diluted | | $(1.70) | | $ | — | | | $(1.70) |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | Condensed Consolidated Statement of Stockholders' (Deficit) Equity | | As Previously Reported | | Adjustment | | As Revised | Accumulated deficit | | $ | (1,460,351) | | | $ | (2,448) | | | $ | (1,462,799) | | Net loss | | $ | (282,840) | | | $ | 816 | | | $ | (282,024) | |
| | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2021 | Consolidated Statement of Cash Flows | | As Previously Reported | | Adjustment | | As Revised | Net loss | | $ | (282,840) | | | $ | 816 | | | $ | (282,024) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | Change in excess inventory purchase commitments | | 33,391 | | | (3,054) | | | 30,337 | | Write-down of inventories | | 15,618 | | | (569) | | | 15,049 | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | (24,022) | | | (5) | | | (24,027) | | Inventories | | (25,847) | | | 900 | | | (24,947) | | Accrued expenses and other current liabilities | | (24,680) | | | 2,600 | | | (22,080) | | Other non-current liabilities | | (12,481) | | | (688) | | | (13,169) | | Net cash used in operating activities | | $ | (252,965) | | | $ | — | | | $ | (252,965) | |
FISCAL YEAR ENDED DECEMBER 31, 2020 (in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2020 | Consolidated Statements of Operations and Comprehensive Loss | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 128,901 | | | $ | (663) | | | $ | 128,238 | | Cost of goods sold, product | | 148,866 | | | 569 | | | 149,435 | | Cost of goods sold, amortization of intangible asset | | 31,515 | | | 1,102 | | | 32,617 | | Cost of goods sold, impairment of intangible asset | | 115,527 | | | (1,102) | | | 114,425 | | Operating loss | | (376,442) | | | (1,384) | | | (377,826) | | Net loss | | $ | (383,457) | | | $ | (1,384) | | | $ | (384,841) | | Comprehensive loss | | $ | (383,444) | | | $ | (1,384) | | | $ | (384,828) | | Earnings per share - basic and diluted | | $(2.77) | | $(0.01) | | $(2.78) |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | Condensed Consolidated Statement of Stockholders' (Deficit) Equity | | As Previously Reported | | Adjustment | | As Revised | Accumulated deficit | | $ | (1,177,511) | | | $ | (3,264) | | | $ | (1,180,775) | | Net loss | | $ | (383,457) | | | $ | (1,384) | | | $ | (384,841) | |
| | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2020 | Consolidated Statement of Cash Flows | | As Previously Reported | | Adjustment | | As Revised | Net loss | | $ | (383,457) | | | $ | (1,384) | | | $ | (384,841) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | Amortization of intangible asset | | 31,515 | | | 1,102 | | | 32,617 | | Intangible asset impairment charge | | 115,527 | | | (1,102) | | | 114,425 | | Write-down of inventories | | 20,072 | | | 569 | | | 20,641 | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | 12,011 | | | (342) | | | 11,669 | | Accrued expenses and other current liabilities | | 6,356 | | | (97) | | | 6,259 | | Other non-current liabilities | | — | | | 1,254 | | | 1,254 | | Net cash used in operating activities | | $ | (110,388) | | | $ | — | | | $ | (110,388) | |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | Condensed Consolidated Statement of Stockholders' (Deficit) Equity | | As Previously Reported | | Adjustment | | As Revised | Accumulated deficit | | (794,054) | | | (1,880) | | | (795,934) | |
The following tables reflect the impact of this revision on the Company’s unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2022:
QUARTER ENDED SEPTEMBER 30, 2022 (dollars in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | Unaudited Condensed Consolidated Balance Sheet | | As Previously Reported | | Adjustment | | As Revised | Inventories | | $ | 40,039 | | | $ | 5,203 | | | $ | 45,242 | | Accounts receivable, net | | 23,094 | | | 175 | | | 23,269 | | Prepaid expenses and other current assets | | 29,618 | | | (678) | | | 28,940 | | Total current assets | | 237,512 | | | 4,700 | | | 242,212 | | Goodwill | | 55,053 | | | 3,991 | | | 59,044 | | Other long-term assets, net | | 26,275 | | | (334) | | | 25,941 | | Total assets | | $ | 435,894 | | | $ | 8,357 | | | $ | 444,251 | | Accrued expenses and other current liabilities | | $ | 87,364 | | | $ | 5,164 | | | $ | 92,528 | | Total current liabilities | | 187,965 | | | 5,164 | | | 193,129 | | Other non-current liabilities | | 74,313 | | | 8,787 | | | 83,100 | | Total liabilities | | 422,041 | | | 13,951 | | | 435,992 | | Accumulated deficit | | (1,545,361) | | | (5,594) | | | (1,550,955) | | Total liabilities and stockholders' equity | | $ | 435,894 | | | $ | 8,357 | | | $ | 444,251 | |
| | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2022 | Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 42,239 | | | $ | (250) | | | $ | 41,989 | | Cost of goods sold, product | | 28,936 | | | 334 | | | 29,270 | | Research and development | | 27,350 | | | 678 | | | 28,028 | | Selling, general and administrative | | 30,918 | | | 969 | | | 31,887 | | Operating loss | | (48,174) | | | (2,230) | | | (50,404) | | Net loss | | $ | (51,865) | | | $ | (2,230) | | | $ | (54,095) | | Comprehensive loss | | $ | (51,865) | | | $ | (2,230) | | | $ | (54,095) | | Earnings per share - basic and diluted | | $(0.28) | | $(0.01) | | $(0.29) |
| | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2022 | Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 127,390 | | | $ | (720) | | | $ | 126,670 | | Cost of goods sold, product | | 60,859 | | | 1,106 | | | 61,965 | | Research and development | | 97,210 | | | 678 | | | 97,888 | | Selling, general and administrative | | 108,052 | | | 641 | | | 108,693 | | Operating loss | | (72,765) | | | (3,146) | | | (75,911) | | Net loss | | $ | (85,010) | | | $ | (3,146) | | | $ | (88,156) | | Comprehensive loss | | $ | (85,010) | | | $ | (3,146) | | | $ | (88,156) | | Earnings per share - basic and diluted | | $(0.47) | | $(0.01) | | $(0.48) |
| | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | Unaudited Condensed Consolidated Statement of Stockholders' (Deficit) Equity | | As Previously Reported | | Adjustment | | As Revised | Accumulated deficit | | $ | (1,545,361) | | | $ | (5,594) | | | $ | (1,550,955) | | Net loss | | $ | (51,865) | | | $ | (2,230) | | | $ | (54,095) | |
| | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2022 | Unaudited Condensed Consolidated Statement of Cash Flows | | As Previously Reported | | Adjustment | | As Revised | Net loss | | $ | (85,010) | | | $ | (3,146) | | | $ | (88,156) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | Change in excess inventory purchase commitments | | 12,422 | | | 1,673 | | | 14,095 | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | 27,781 | | | 531 | | | 28,312 | | Inventory | | 1,405 | | | (6,770) | | | (5,365) | | Prepaid expenses and other current assets | | 9,131 | | | 667 | | | 9,798 | | Other long-term assets | | 14,817 | | | 6,214 | | | 21,031 | | Accrued expenses and other current liabilities | | (22,364) | | | 831 | | | (21,533) | | Net cash used in operating activities | | $ | (18,475) | | | $ | — | | | $ | (18,475) | |
The following tables reflect the impact of this revision on the Company’s unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2022: QUARTER ENDED JUNE 30, 2022 (dollars in thousands, except per share amounts) | | | | | | | | | | | | | | | | | | | | | | | June 30, 2022 | Unaudited Condensed Consolidated Balance Sheet | | As Previously Reported | | Adjustment | | As Revised | Inventories | | $ | 36,272 | | | $ | 3,954 | | | $ | 40,226 | | Accounts receivable, net | | 81,869 | | | 133 | | | 82,002 | | Total current assets | | 304,163 | | | 4,087 | | | 308,250 | | Goodwill | | 55,053 | | | 3,991 | | | 59,044 | | Total assets | | $ | 521,804 | | | $ | 8,078 | | | $ | 529,882 | | Accrued expenses and other current liabilities | | $ | 91,284 | | | $ | 3,721 | | | $ | 95,005 | | Total current liabilities | | 233,680 | | | 3,721 | | | 237,401 | | Other non-current liabilities | | 66,889 | | | 7,721 | | | 74,610 | | Total liabilities | | 459,504 | | | 11,442 | | | 470,946 | | Accumulated deficit | | $ | (1,493,496) | | | $ | (3,363) | | | $ | (1,496,859) | | Total liabilities and stockholders' equity | | $ | 521,804 | | | $ | 8,078 | | | $ | 529,882 | |
| | | | | | | | | | | | | | | | | | | | | Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income | | Three Months Ended June 30, 2022 | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 43,703 | | | $ | (394) | | | $ | 43,309 | | Selling, general and administrative | | 32,807 | | | (567) | | | 32,240 | | Operating income | | 33,902 | | | 173 | | | 34,075 | | Net income | | $ | 29,276 | | | $ | 173 | | | $ | 29,449 | | Comprehensive Income | | $ | 29,276 | | | $ | 173 | | | $ | 29,449 | | Earnings per share - basic | | $0.16 | | $ | — | | | $0.16 | Earnings per share - diluted | | $0.15 | | $ | — | | | $0.15 |
| | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2022 | Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 85,151 | | | $ | (470) | | | $ | 84,681 | | Cost of goods sold, product | | 31,923 | | | 771 | | | 32,694 | | Selling, general and administrative | | 77,134 | | | (328) | | | 76,806 | | Operating loss | | (24,591) | | | (913) | | | (25,504) | | Net loss | | $ | (33,145) | | | $ | (913) | | | $ | (34,058) | | Comprehensive loss | | $ | (33,145) | | | $ | (913) | | | $ | (34,058) | | Net loss per share - basic and diluted | | $(0.18) | | $(0.01) | | $(0.19) |
| | | | | | | | | | | | | | | | | | | | | | | June 30, 2022 | Unaudited Condensed Consolidated Statement of Stockholders' (Deficit) Equity | | As Previously Reported | | Adjustment | | As Revised | Accumulated deficit | | $ | (1,493,496) | | | $ | (3,363) | | | $ | (1,496,859) | | Net income | | $ | 29,276 | | | $ | 173 | | | $ | 29,449 | |
| | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2022 | Unaudited Condensed Consolidated Statement of Cash Flows | | As Previously Reported | | Adjustment | | As Revised | Net loss | | $ | (33,145) | | | $ | (913) | | | $ | (34,058) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | Change in excess inventory purchase commitments | | (773) | | | 5,627 | | | 4,854 | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | (30,994) | | | 573 | | | (30,421) | | Inventory | | 1,159 | | | (5,521) | | | (4,362) | | Other long-term assets | | 9,347 | | | 665 | | | 10,012 | | Accrued expenses and other current liabilities | | (18,625) | | | (839) | | | (19,464) | | Other non-current liabilities | | (9,030) | | | 408 | | | (8,622) | | Net cash used in operating activities | | $ | (52,280) | | | $ | — | | | $ | (52,280) | |
The following tables reflect the impact of this revision on the Company’s unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2022:
QUARTER ENDED MARCH 31, 2022 (dollars in thousands, except per share amounts) | | | | | | | | | | | | | | | | | | | | | | | March 31, 2022 | Unaudited Condensed Consolidated Balance Sheet | | As Previously Reported | | Adjustment | | As Revised | Inventories | | $ | 39,422 | | | $ | 1,676 | | | $ | 41,098 | | Accounts receivable, net | | 64,582 | | | $ | 776 | | | 65,358 | | Total current assets | | 302,687 | | | 2,452 | | | 305,139 | | Goodwill | | 55,053 | | | 3,991 | | | 59,044 | | Total assets | | $ | 535,356 | | | $ | 6,443 | | | $ | 541,799 | | Accrued expenses and other current liabilities | | $ | 109,660 | | | $ | 4,583 | | | $ | 114,243 | | Total current liabilities | | 253,914 | | | 4,583 | | | 258,497 | | Other non-current liabilities | | 77,743 | | | 5,398 | | | 83,141 | | Total liabilities | | 509,240 | | | 9,981 | | | 519,221 | | Accumulated deficit | | (1,522,772) | | | (3,536) | | | (1,526,308) | | Total liabilities and stockholders' equity | | $ | 535,356 | | | $ | 6,443 | | | $ | 541,799 | |
| | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2022 | Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income | | As Previously Reported | | Adjustment | | As Revised | Product revenue, net | | $ | 41,448 | | | $ | (76) | | | $ | 41,372 | | Cost of goods sold, product | | 22,333 | | | 772 | | | 23,105 | | Selling, general and administrative | | 44,327 | | | 239 | | | 44,566 | | Operating loss | | (58,493) | | | (1,088) | | | (59,581) | | Net loss | | (62,421) | | | (1,088) | | | (63,509) | | Comprehensive loss | | (62,421) | | | (1,088) | | | (63,509) | | Earnings per share - basic and diluted | | $ | (0.35) | | | $ | — | | | $ | (0.35) | |
| | | | | | | | | | | | | | | | | | | | | | | March 31, 2022 | Unaudited Condensed Consolidated Statement of Stockholders' (Deficit) Equity | | As Previously Reported | | Adjustment | | As Revised | Accumulated deficit | | $ | (1,522,772) | | | $ | (3,536) | | | $ | (1,526,308) | | Net loss | | $ | (62,421) | | | $ | (1,088) | | | $ | (63,509) | |
| | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2022 | Unaudited Condensed Consolidated Statement of Cash Flows | | As Previously Reported | | Adjustment | | As Revised | Net loss | | $ | (62,421) | | | $ | (1,088) | | | $ | (63,509) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | Change in excess inventory purchase commitments | | (773) | | | 773 | | | — | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | (13,707) | | | (71) | | | (13,778) | | Inventory | | (5,247) | | | (3,243) | | | (8,490) | | Other long-term assets | | 3,297 | | | 669 | | | 3,966 | | Accrued expenses and other current liabilities | | 4,426 | | | 2,960 | | | 7,386 | | Other non-current liabilities | | (3,191) | | | | | (3,191) | | Net cash used in operating activities | | $ | (21,620) | | | $ | — | | | $ | (21,620) | |
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