| Schedule of Impact of Adopting ASC 606 on the Financial Statements |
As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the consolidated balance sheet as of January 1, 2019:
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As Reported, December 31, 2018 |
|
ASC 606 Adjustment |
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Adjusted, January 1, 2019 |
Consolidated Balance Sheet Data (in thousands): |
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|
Prepaid expenses and other current assets |
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$ |
4,574 |
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|
$ |
716 |
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$ |
5,290 |
|
Other non-current assets |
|
910 |
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|
1,120 |
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|
2,030 |
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Total Assets |
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$ |
141,341 |
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$ |
1,836 |
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|
$ |
143,177 |
|
Deferred revenue, net of current portion |
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$ |
53,303 |
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$ |
3,477 |
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$ |
56,780 |
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Total Liabilities |
|
101,406 |
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|
3,477 |
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|
104,883 |
|
Accumulated deficit |
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(147,066 |
) |
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(1,641 |
) |
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(148,707 |
) |
Total stockholders' equity |
|
39,935 |
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(1,641 |
) |
|
38,294 |
|
Total liabilities and stockholders' equity |
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$ |
141,341 |
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|
$ |
1,836 |
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|
$ |
143,177 |
|
These changes were primarily caused by the differences in determining and allocating transaction price under ASC 606 and costs to obtain certain contracts.
The adoption of ASC 606 did not impact income taxes, as the Company fully reserves its net deferred tax assets. Therefore, the change to the Company's net deferred tax asset position due to adoption was offset by a corresponding change to the valuation allowance.
The following table compares the reported condensed consolidated balance sheet and statement of operations, as of September 30, 2019 and for the three and nine months ended September 30, 2019, to the pro-forma amounts had the previous guidance been in effect:
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September 30, 2019 |
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As Reported, ASC 606 |
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Adjustments |
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Adjusted Balance, ASC 605 |
Condensed Consolidated Balance Sheet Data (in thousands): |
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Prepaids and other current assets |
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$ |
4,778 |
|
|
$ |
(646 |
) |
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$ |
4,132 |
|
Other non-current assets |
|
7,770 |
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|
(808 |
) |
|
6,962 |
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Total Assets |
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$ |
116,751 |
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|
$ |
(1,454 |
) |
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$ |
115,297 |
|
Deferred revenues, current portion |
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27,242 |
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|
9,774 |
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|
37,016 |
|
Deferred revenue, net of current portion |
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44,179 |
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(10,384 |
) |
|
33,795 |
|
Total Liabilities |
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96,109 |
|
|
(610 |
) |
|
95,499 |
|
Accumulated Deficit |
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(173,405 |
) |
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(844 |
) |
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(174,249 |
) |
Total stockholders' equity |
|
20,642 |
|
|
(844 |
) |
|
19,798 |
|
Total liabilities and stockholders' equity |
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$ |
116,751 |
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|
$ |
(1,454 |
) |
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$ |
115,297 |
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Three Months Ended September 30, 2019 |
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Nine Months Ended September 30, 2019 |
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As Reported, ASC 606 |
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Adjustments |
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Adjusted Balance, ASC 605 |
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As Reported, ASC 606 |
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Adjustments |
|
Adjusted Balance, ASC 605 |
Condensed Consolidated Statement of Operations Data (in thousands): |
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Revenue |
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$ |
15,132 |
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$ |
(2,195 |
) |
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$ |
12,937 |
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$ |
29,009 |
|
|
$ |
(2,717 |
) |
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$ |
26,292 |
|
General and administrative expenses |
|
4,835 |
|
|
(191 |
) |
|
4,644 |
|
|
13,956 |
|
|
(303 |
) |
|
13,653 |
|
Loss from operations |
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(2,914 |
) |
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(2,386 |
) |
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(5,300 |
) |
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(25,827 |
) |
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(3,020 |
) |
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(28,847 |
) |
Loss before income taxes |
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(2,592 |
) |
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(2,386 |
) |
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(4,978 |
) |
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(24,698 |
) |
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(3,020 |
) |
|
(27,718 |
) |
Net loss |
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$ |
(2,592 |
) |
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$ |
(2,386 |
) |
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$ |
(4,978 |
) |
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$ |
(24,698 |
) |
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$ |
(3,020 |
) |
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$ |
(27,718 |
) |
Comprehensive loss |
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$ |
(582 |
) |
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$ |
(2,386 |
) |
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$ |
(2,968 |
) |
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$ |
(22,413 |
) |
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$ |
(3,020 |
) |
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$ |
(25,433 |
) |
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