Quarterly report pursuant to Section 13 or 15(d)

Revisions of Previously Issued Financial Statements

v3.22.2.2
Revisions of Previously Issued Financial Statements
9 Months Ended
Sep. 30, 2022
Condensed Financial Information Disclosure [Abstract]  
Revisions of Previously Issued Financial Statements

Note 18. Revisions of Previously Issued Financial Statements

 

As noted in Note 4. “Acquisitions”, on May 26, 2021, the Company acquired 100% of the equity interests of Whinstone. The Whinstone Acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations, which requires recognition of assets acquired and liabilities assumed at their respective fair values on the date of acquisition. During the third quarter of 2022, the Company discovered a classification error in its reported allocation of acquisition date fair value to property and equipment, which resulted in an understatement of property and equipment and an equal overstatement of goodwill as of the balance sheet dates outlined below.

 

In accordance with Staff Accounting Bulletin (“SAB”) 99, Materiality, and SAB 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the materiality of the error from qualitative and quantitative perspectives, and concluded that the error was immaterial to any prior annual or interim financial statements. Notwithstanding this conclusion, management has revised the accompanying condensed consolidated financial statements and related notes included herein to correct this error for all periods presented.

 

The following tables present the effect of correcting this error on the Company’s previously issued financial statements. There were no changes to the statements of stockholders’ equity that have not otherwise been reflected in the balance sheets and statements of operations as detailed in the tables below.

 

    As of June 30, 2021  
Condensed Consolidated Balance Sheet   As previously reported     Adjustment     As revised  
Property & equipment, net   $ 128,815     $ 13,500     $ 142,315  
Goodwill     267,409       (13,500 )     253,909  
Total assets     906,369      
—  
      906,369  
                         
      As of September 30, 2021    
Condensed Consolidated Balance Sheet     As previously reported       Adjustment       As revised  
Property & equipment, net   $ 200,751     $ 13,500     $ 214,251  
Goodwill     267,237       (13,500 )     253,737  
Total assets     954,407      
—  
      954,407  
                         
      As of December 31, 2021    
Consolidated Balance Sheet     As previously reported       Adjustment       As revised  
Property & equipment, net   $ 262,980     $ 13,500     $ 276,480  
Goodwill     349,063       (13,500 )     335,563  
Total assets     1,530,939      
—  
      1,530,939  

 

      As of March 31, 2022    
Condensed Consolidated Balance Sheet     As previously reported       Adjustment       As revised  
Property & equipment, net   $ 325,132     $ 13,500     $ 338,632  
Goodwill     349,148       (13,500 )     335,648  
Total assets     1,549,755      
—  
      1,549,755  
                         
      As of June 30, 2022    
Condensed Consolidated Balance Sheet     As previously reported       Adjustment       As revised  
Property & equipment, net   $ 411,244     $ 13,500     $ 424,744  
Goodwill    
—  
     
—  
     
—  
 
Total assets     1,436,225       13,500       1,449,725  
Accumulated deficit     (568,543 )     13,500       (555,043 )
Total stockholders’ equity     1,288,565       13,500       1,302,065  
Total liabilities and stockholders’ equity     1,436,225       13,500       1,449,725  
                         
      Three Months Ended June 30, 2022    
Condensed Consolidated Statement of Operations     As previously reported       Adjustment       As revised  
Impairment of goodwill   $ 349,148     $ (13,500 )   $ 335,648  
Total costs and expenses     438,960       (13,500 )     425,460  
Operating income (loss)     (366,013 )     13,500       (352,513 )
Net income (loss) before taxes     (372,533 )     13,500       (359,033 )
Net income (loss)     (366,334 )     13,500       (352,834 )
Basic net income (loss) per share     (2.81 )     0.10       (2.71 )
Diluted net income (loss) per share     (2.81 )     0.10       (2.71 )
                         
      Six Months Ended June 30, 2022    
Condensed Consolidated Statement of Operations     As previously reported       Adjustment       As revised  
Impairment of goodwill   $ 349,148     $ (13,500 )   $ 335,648  
Total costs and expenses     480,838       (13,500 )     467,338  
Operating income (loss)     (328,104 )     13,500       (314,604 )
Net income (loss) before taxes     (336,592 )     13,500       (323,092 )
Net income (loss)     (330,705 )     13,500       (317,205 )
Basic net income (loss) per share     (2.67 )     0.11       (2.56 )
Diluted net income (loss) per share     (2.67 )     0.11       (2.56 )
                         
      Six Months Ended June 30, 2022    
Condensed Consolidated Statement of Cash Flows     As previously reported       Adjustment       As revised  
Net income (loss)   $ (330,705 )   $ 13,500     $ (317,205 )
Impairment of goodwill     349,148       (13,500 )     335,648  
Net cash used in operating activities     (14,393 )    
—  
      (14,393 )