In the Company's previously issued financial statements, a portion of Series B preferred stock was classified as permanent equity instead of temporary equity.  Due to certain redemption features that have been subsequently deemed as outside of the Company's control, the Series B preferred stock will remain as temporary equity until such time as conversion into common stock occurs. ASC 480-10-S99 provides that stock with redemption provisions not solely within the control of the Company require such stock to be classified as temporary equity. Upon re-evaluation, management determined that the Series B preferred shares include certain provisions that require classification of the Series B shares as temporary equity, rather than as permanent equity.

In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the changes and has determined that the related impacts were not material to any previously presented financial statements. Therefore, the Company, in consultation with its audit committee, concluded that its previously issued financial statements impacted should be revised to report all Series B preferred shares as temporary equity. As such, the Company is revising those periods in this Annual Report on Form 10-K.

There has been no change in the Company's total assets, liabilities or operating results.

The impact of the revision on the Company's financial statements is reflected in the following table (in thousands):