| Revision of Prior Period Financial Statements |
Revision of Prior Period Financial StatementsAs discussed in Note 1, in preparing the condensed consolidated financial statements as of and for the three and six months ended June 30, 2022, the Company identified errors in its previously issued financial statements whereby (a) certain expenses that were cost of subscription revenue related and cost of service revenue related were inaccurately classified as sales and marketing expenses on the consolidated statements of operations and comprehensive loss, (b) certain equipment under lease or held for lease was inaccurately classified as inventory on the consolidated balance sheets and a portion of the cash outflows related to the equipment under lease or held for lease were misclassified between operating and investing cash flows on the consolidated statements of cash flows, and (c) the vesting of warrants related to the Business Development Agreement disclosed in Note 16 were not accounted for accurately. The identified errors impacted the Company's previously issued 2020 annual financial statements, 2021 quarterly and annual financial statements, and quarterly financial statements for the three months ended March 31, 2022. The Company has made adjustments to the prior period amounts presented in these financial statements accordingly. Additionally, the Company has made adjustments to correct for other previously identified immaterial errors. The Company evaluated the errors and determined that the related impacts were not material to any previously issued annual or interim financial statements. The impact of the revisions to the quarterly period ending March 31, 2022 is presented as follows (in thousands): Revised Condensed Consolidated Statement of Operations and Comprehensive Loss
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Three Months Ended
March 31, 2022 |
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As Previously Reported |
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Adjustment |
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As Revised |
| Revenue: |
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| Product revenue |
$ |
5,194 |
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$ |
— |
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$ |
5,194 |
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| Subscription revenue |
3,020 |
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(16) |
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3,004 |
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| Service revenue |
501 |
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11 |
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512 |
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| Total revenue |
8,715 |
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(5) |
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8,710 |
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| Cost of revenue: |
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| Cost of product revenue |
5,576 |
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(370) |
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5,206 |
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| Cost of subscription revenue |
1,065 |
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477 |
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1,542 |
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| Cost of service revenue |
448 |
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617 |
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1,065 |
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| Total cost of revenue |
7,089 |
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724 |
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7,813 |
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| Gross profit |
1,626 |
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(729) |
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897 |
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| Operating expenses: |
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| Research and development |
4,286 |
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(111) |
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4,175 |
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| Sales and marketing expense |
12,053 |
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(2,381) |
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9,672 |
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| General and administrative |
11,093 |
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(276) |
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10,817 |
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| Loss from impairment of property and equipment |
96 |
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— |
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96 |
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| Total operating expenses |
27,528 |
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(2,768) |
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24,760 |
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| Loss from operations |
(25,902) |
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2,039 |
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(23,863) |
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| Other income (expense), net: |
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| Interest expense |
(142) |
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— |
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(142) |
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| Interest income |
209 |
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(141) |
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68 |
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| Change in fair value of contingent earn-out liability |
4,226 |
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(1,148) |
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3,078 |
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| Change in fair value of contingently issuable common stock liability |
1,472 |
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— |
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1,472 |
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| Change in fair value of public warrant liability |
5,586 |
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— |
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5,586 |
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| Total other income (expense), net |
11,351 |
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(1,289) |
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10,062 |
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| Net loss |
$ |
(14,551) |
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$ |
750 |
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$ |
(13,801) |
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| Weighted average common shares outstanding - basic and diluted |
142,878,406 |
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— |
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142,878,406 |
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| Net loss per share - basic and diluted |
$ |
(0.10) |
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$ |
— |
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$ |
(0.10) |
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Revised Condensed Consolidated Statement of Cash Flows
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Three Months Ended
March 31, 2022 |
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As Previously Reported |
Adjustment |
As Revised |
| Cash flows from operating activities: |
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| Net loss |
$ |
(14,551) |
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$ |
750 |
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$ |
(13,801) |
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| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation and amortization |
948 |
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138 |
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1,086 |
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| Write-off of inventory |
324 |
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— |
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324 |
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| Adjustment to property and equipment for sales type leases |
(321) |
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(304) |
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(625) |
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| Loss from impairment of property and equipment |
96 |
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— |
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96 |
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| Stock-based compensation |
5,190 |
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(1,263) |
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3,927 |
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| Non-cash interest expense |
5 |
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— |
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5 |
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| Non-cash lease expense |
197 |
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— |
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197 |
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| Change in fair value of earn-out liability |
(4,226) |
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1,148 |
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(3,078) |
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| Change in fair value of contingently issuable common stock |
(1,472) |
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— |
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(1,472) |
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| Change in fair value of public warrant liability |
(5,586) |
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— |
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(5,586) |
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| Changes in operating assets and liabilities |
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| Accounts receivable |
(2,112) |
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— |
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(2,112) |
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| Inventory |
(6,985) |
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5,675 |
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(1,310) |
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| Commission assets |
(351) |
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— |
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(351) |
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| Contract assets |
108 |
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— |
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108 |
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| Other assets |
— |
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141 |
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141 |
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| Prepaid expenses and other current assets |
(5,280) |
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(291) |
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(5,571) |
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| Accounts payable |
(1,867) |
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1,012 |
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(855) |
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| Deferred revenue |
2,778 |
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(201) |
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2,577 |
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| Deferred rent |
(468) |
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468 |
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— |
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| Accrued expenses and other current liabilities |
(2,065) |
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(368) |
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(2,433) |
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| Operating lease liability |
(229) |
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(468) |
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(697) |
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| Net cash used in operating activities |
(35,867) |
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6,437 |
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(29,430) |
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| Cash flows from investing activities: |
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| Development of internal-use software |
(646) |
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(82) |
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(728) |
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| Purchases of property and equipment |
(323) |
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(6,366) |
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(6,689) |
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| Net cash used in investing activities |
(969) |
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(6,448) |
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(7,417) |
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| Cash flows from financing activities: |
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| Proceeds from exercise of stock options |
216 |
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11 |
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227 |
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| Net cash provided by financing activities |
216 |
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11 |
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227 |
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| Net increase (decrease) in cash, cash equivalents and restricted cash |
(36,620) |
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— |
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(36,620) |
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| Cash, cash equivalents and restricted cash |
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| Cash, cash equivalents and restricted cash at beginning of period |
308,167 |
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— |
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308,167 |
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| Cash, cash equivalents and restricted cash at end of period |
$ |
271,547 |
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$ |
— |
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$ |
271,547 |
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| Supplemental disclosure of non-cash activities |
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| Transfer of inventory to property and equipment |
$ |
4,620 |
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$ |
(4,620) |
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$ |
— |
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| Capital expenditures incurred but not yet paid |
1,693 |
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698 |
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2,391 |
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