Annual report pursuant to Section 13 and 15(d)

Restatement of Consolidated Financial Statements (Tables)

Restatement of Consolidated Financial Statements (Tables)

12 Months Ended

Mar. 31, 2022

Restatement of Consolidated Financial Statements

Schedule of error corrections and prior period adjustments


	As of March 31, 2022
					FPP		Note
(in thousands)	As Reported		Bill and Hold		Contracts		Classification		As Restated
Assets
Current Assets:
Cash and cash equivalents	$	22,559	$	—	$	—	$	—	$	22,559
Accounts receivable, net of allowances		24,665		(8,771)		—		—		15,894
Inventories, net		18,465		11,702		—		—		30,167
Prepaid expenses and other current assets		5,519		—		—		—		5,519
Total current assets		71,208		2,931		—		—		74,139
Property, plant, equipment and rental assets, net		18,038		—		—		—		18,038
Non-current portion of accounts receivable		1,212		(1,212)		—		—		—
Non-current portion of inventories		1,680		—		—		—		1,680
Other assets		8,635		—		—		—		8,635
Total assets	$	100,773	$	1,719	$	—	$	—	$	102,492
Liabilities and Stockholders’ (Deficiency) Equity
Current Liabilities:
Accounts payable and accrued expenses	$	25,130	$	—	$	—	$	—	$	25,130
Accrued salaries and wages		1,147		—		—		—		1,147
Accrued warranty reserve		1,483		—		—		—		1,483
Deferred revenue		9,185		5,650		—		—		14,835
Current portion of notes payable and lease obligations		675		—		—		—		675
Factory protection plan liability		—		—		9,170		—		9,170
Term note payable		—		—		—		50,949		50,949
Total current liabilities		37,620		5,650		9,170		50,949		103,389
Deferred revenue, non-current		981		—		—		—		981
Long-term portion of notes payable and lease obligations		5,809		—		—		—		5,809
Term note payable, non-current		50,949		—		—		(50,949)		—
Total liabilities		95,359		5,650		9,170		—		110,179
Commitments and contingencies
Stockholders’ (Deficiency) Equity:
Preferred stock		—		—		—		—		—
Common stock		15		—		—		—		15
Additional paid-in capital		946,969		—		—		—		946,969
Accumulated deficit		(939,482)		(3,931)		(9,170)		—		(952,583)
Treasury stock		(2,088)		—		—		—		(2,088)
Total stockholders’ (deficiency) equity		5,414		(3,931)		(9,170)		—		(7,687)
Total liabilities and stockholders' (deficiency) equity	$	100,773	$	1,719	$	—	$	—	$	102,492


	As of March 31, 2021
(in thousands)	As Reported		Bill and Hold		FPP Contracts		As Restated
Assets
Current Assets:
Cash and cash equivalents	$	49,533	$	—	$	—	$	49,533
Accounts receivable, net of allowances		20,593		(7,691)		—		12,902
Inventories, net		11,829		9,859		—		21,688
Prepaid expenses and other current assets		4,953		—		—		4,953
Total current assets		86,908		2,168		—		89,076
Property, plant, equipment and rental assets, net		9,630		—		—		9,630
Non-current portion of inventories		1,845		—		—		1,845
Other assets		7,639		—		—		7,639
Total assets	$	106,022	$	2,168	$	—	$	108,190
Liabilities and Stockholders’ (Deficiency) Equity
Current Liabilities:
Accounts payable and accrued expenses	$	19,767	$	—	$	—	$	19,767
Accrued salaries and wages		1,889		—		—		1,889
Accrued warranty reserve		5,850		—		—		5,850
Deferred revenue		6,374		5,448		—		11,822
Current portion of notes payable and lease obligations		576		—		—		576
Factory protection plan liability		—		—		7,662		7,662
Total current liabilities		34,456		5,448		7,662		47,566
Deferred revenue, non-current		765		—		—		765
Long-term portion of notes payable and lease obligations		4,762		—		—		4,762
Term note payable, net		52,865		—		—		52,865
Total liabilities		92,848		5,448		7,662		105,958
Commitments and contingencies
Stockholders’ (Deficiency) Equity:
Preferred stock		—		—		—		—
Common stock		13		—		—		13
Additional paid-in capital		934,381		—		—		934,381
Accumulated deficit		(919,271)		(3,280)		(7,662)		(930,213)
Treasury stock		(1,949)		—		—		(1,949)
Total stockholders’ (deficiency) equity		13,174		(3,280)		(7,662)		2,232
Total liabilities and stockholders' (deficiency) equity	$	106,022	$	2,168	$	—	$	108,190


	Year Ended March 31, 2022
(in thousands)	As Reported		Bill and Hold		FPP Contracts		As Restated
Revenue, net:
Product and accessories	$	37,181	$	(4,461)	$	—	$	32,720
Parts and service		32,464		(707)		(513)		31,244
Total revenue, net		69,645		(5,168)		(513)		63,964
Cost of goods sold:
Product and accessories		40,483		(3,377)		—		37,106
Parts and service		20,624		(402)		995		21,217
Total cost of goods sold		61,107		(3,779)		995		58,323
Gross profit		8,538		(1,389)		(1,508)		5,641
Operating expenses:
Research and development		3,359		—		—		3,359
Selling, general and administrative		22,980		(738)		—		22,242
Total operating expenses		26,339		(738)		—		25,601
Loss from operations		(17,801)		(651)		(1,508)		(19,960)
Other income (expense)		642		—		—		642
Interest income		21		—		—		21
Interest expense		(5,004)		—		—		(5,004)
Gain (loss) on debt extinguishment		1,950		—		—		1,950
Loss before provision for income taxes		(20,192)		(651)		(1,508)		(22,351)
Provision for income taxes		19		—		—		19
Net loss		(20,211)		(651)		(1,508)		(22,370)
Less: Deemed dividend on purchase warrant for common shares		—		—		—		—
Net loss attributable to common stockholders	$	(20,211)	$	(651)	$	(1,508)	$	(22,370)

Net loss per share—basic and diluted	$	(1.37)	$	(0.04)	$	(0.10)	$	(1.52)
Weighted average shares outstanding		14,727		14,727		14,727		14,727


	Year Ended March 31, 2021
(in thousands)	As Reported		Bill and Hold		FPP Contracts		As Restated
Revenue, net:
Product and accessories	$	36,517	$	134	$	—	$	36,651
Parts and service		31,119		570		(733)		30,956
Total revenue, net		67,636		704		(733)		67,607
Cost of goods sold:
Product and accessories		42,025		(38)		—		41,987
Parts and service		18,756		206		2,173		21,135
Total cost of goods sold		60,781		168		2,173		63,122
Gross profit		6,855		536		(2,906)		4,485
Operating expenses:
Research and development		2,417		—		—		2,417
Selling, general and administrative		18,391		—		—		18,391
Total operating expenses		20,808		—		—		20,808
Loss from operations		(13,953)		536		(2,906)		(16,323)
Other income (expense)		4,993		—		—		4,993
Interest income		30		—		—		30
Interest expense		(5,156)		—		—		(5,156)
Gain (loss) on debt extinguishment		(4,282)		—		—		(4,282)
Loss before provision for income taxes		(18,368)		536		(2,906)		(20,738)
Provision for income taxes		19		—		—		19
Net loss		(18,387)		536		(2,906)		(20,757)
Less: Deemed dividend on purchase warrant for common shares		15		—		—		15
Net loss attributable to common stockholders	$	(18,402)	$	536	$	(2,906)	$	(20,772)

Net loss per share—basic and diluted	$	(1.63)	$	0.05	$	(0.26)	$	(1.84)
Weighted average shares outstanding		11,280		11,280		11,280		11,280


				Additional							Total
	Common Stock			Paid-in		Accumulated		Treasury Stock			Stockholders’
	Shares	Amount		Capital		Deficit		Shares	Amount		(Deficiency) Equity
Balance as of April 1, 2020	10,286,366	$	10	$	915,755	$	(900,869)	57,577	$	(1,875)	$	13,021
(As previously reported)
Adjustments:
Bill and Hold	—		—		—		(3,816)	—		—		(3,816)
Re-rents	—		—		—		—	—		—		—
FPP Contracts	—		—		—		(4,756)	—		—		(4,756)
Note Classification	—		—		—		—	—		—		—
Cumulative restatement adjustments	—		—		—		(8,572)	—		—		(8,572)
Balance as of April 1, 2020
(As Restated)	10,286,366	$	10	$	915,755	$	(909,441)	57,577	$	(1,875)	$	4,449


	Year Ended March 31, 2022
(in thousands)	As Reported		Bill and Hold		FPP Contracts		As Restated
Cash Flows from Operating Activities:
Net loss	$	(20,211)	$	(651)	$	(1,508)	$	(22,370)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,915		—		—		1,915
Amortization of financing costs and discounts		35		—		—		35
Amortization of right-of-use assets		657		—		—		657
(Gain) loss on debt extinguishment		(1,950)		—		—		(1,950)
Bad debt expense (recovery)		1,129		(738)		—		391
Inventory provision		791		—		—		791
Provision for warranty expenses		646		—		—		646
Stock-based compensation		1,245		—		—		1,245
Changes in operating assets and liabilities:
Accounts receivable		(6,413)		3,030		—		(3,383)
Inventories		(7,262)		(1,843)		—		(9,105)
Prepaid expenses, other current assets and other assets		164		—		—		164
Accounts payable and accrued expenses		4,485		—		—		4,485
Accrued salaries and wages and long-term liabilities		(743)		—		—		(743)
Accrued warranty reserve		(5,013)		—		—		(5,013)
Deferred revenue		3,027		202		—		3,229
Factory protection plan liability		—		—		1,508		1,508
Net cash used in operating activities		(27,498)		—		—		(27,498)
Cash Flows from Investing Activities:
Expenditures for property, plant, equipment and rental assets		(9,924)		—		—		(9,924)
Net cash used in investing activities		(9,924)		—		—		(9,924)
Cash Flows from Financing Activities:
Repayment of notes payable and lease obligations		(685)		—		—		(685)
Cash used in employee stock-based transactions		(138)		—		—		(138)
Net proceeds from issuance of common stock and warrants		11,271		—		—		11,271
Net cash provided by financing activities		10,448		—		—		10,448
Net increase (decrease) increase in Cash and Cash Equivalents		(26,974)		—		—		(26,974)
Cash and Cash Equivalents, Beginning of Period		49,533		—		—		49,533
Cash and Cash Equivalents, End of Period	$	22,559	$	—	$	—	$	22,559
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	5,095	$	—	$	—	$	5,095
Income taxes	$	20	$	—	$	—	$	20
Supplemental Disclosures of Non-Cash Information:
Acquisition of property and equipment through accounts payable	$	264	$	—	$	—	$	264
Renewal of insurance contracts financed by notes payable	$	567	$	—	$	—	$	567
Issuance of common stock for services to be received	$	75	$	—	$	—	$	75


	Year Ended March 31, 2021
(in thousands)	As Reported		Bill and Hold		FPP Contracts		As Restated
Cash Flows from Operating Activities:
Net loss	$	(18,387)	$	536	$	(2,906)	$	(20,757)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,452		—		—		1,452
Amortization of financing costs and discounts		623		—		—		623
Amortization of right-of-use assets		378		—		—		378
(Gain) loss on debt extinguishment		4,282		—		—		4,282
Bad debt expense (recovery)		(228)		—		—		(228)
Inventory provision		305		—		—		305
Provision for warranty expenses		5,930		—		—		5,930
(Gain) loss on disposal of equipment		(1)		—		—		(1)
Stock-based compensation		937		—		—		937
Changes in operating assets and liabilities:
Accounts receivable		(4,125)		382		—		(3,743)
Inventories		8,702		168		—		8,870
Prepaid expenses, other current assets and other assets		653		—		—		653
Accounts payable and accrued expenses		4,652		—		—		4,652
Accrued salaries and wages and long-term liabilities		245		—		—		245
Accrued warranty reserve		(2,014)		—		—		(2,014)
Deferred revenue		(1,703)		(1,086)		—		(2,789)
Factory protection plan liability		—		—		2,906		2,906
Net cash used in operating activities		1,701		—		—		1,701
Cash Flows from Investing Activities:
Expenditures for property, plant, equipment and rental assets		(3,209)		—		—		(3,209)
Net cash used in investing activities		(3,209)		—		—		(3,209)
Cash Flows from Financing Activities:
Net proceeds from term note payable		20,833		—		—		20,833
Repayment of notes payable and lease obligations		(691)		—		—		(691)
Cash used in employee stock-based transactions		(74)		—		—		(74)
Net proceeds from issuance of common stock and warrants		15,905		—		—		15,905
Net cash provided by financing activities		35,973		—		—		35,973
Net increase (decrease) increase in Cash and Cash Equivalents		34,465		—		—		34,465
Cash and Cash Equivalents, Beginning of Period		15,068		—		—		15,068
Cash and Cash Equivalents, End of Period	$	49,533	$	—	$	—	$	49,533
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	4,287	$	—	$	—	$	4,287
Income taxes	$	14	$	—	$	—	$	14
Supplemental Disclosures of Non-Cash Information:
Acquisition of property and equipment through accounts payable	$	36	$	—	$	—	$	36
Renewal of insurance contracts financed by notes payable	$	593	$	—	$	—	$	593
Deemed dividend	$	15	$	—	$	—	$	15