| Schedule of Impact of Adopting ASC 606 & 842 on the Financial Statements |
Impact of Adopting ASC 842 on the Financial Statements
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As Reported, December 31, 2018 |
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ASC 842 Adjustment |
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Adjusted, January 1, 2019 |
Consolidated Balance Sheet Data (in thousands): |
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Operating lease right-of-use assets (1) |
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— |
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868 |
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868 |
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Deferred rent (2) |
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35 |
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(35 |
) |
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— |
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Current operating lease liabilities (3) |
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— |
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442 |
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442 |
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Non-current operating lease liabilities (3) |
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— |
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461 |
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461 |
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(1) Represents capitalization of operating lease right-of-use assets. |
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(2) Represents reclassification of deferred rent to operating lease right-of-use assets. |
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(3) Represents recognition of operating lease liabilities. |
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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 |
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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 |
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Other non-current assets |
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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 |
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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 |
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101,406 |
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3,477 |
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104,883 |
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Accumulated deficit |
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(147,066 |
) |
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(1,641 |
) |
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(148,707 |
) |
Total stockholders' equity |
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39,935 |
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(1,641 |
) |
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38,294 |
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Total liabilities and stockholders' equity |
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$ |
141,341 |
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$ |
1,836 |
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$ |
143,177 |
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These changes were primarily caused by the differences in determining and allocating transaction price under ASC 606 and costs to obtain certain contracts under ASC 340.
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 consolidated balance sheet and statement of operations, as of December 31, 2019 and for the twelve months ended December 31, 2019, to the pro-forma amounts had the previous guidance been in effect:
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December 31, 2019 |
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As Reported, ASC 606 |
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Adjustments |
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Adjusted Balance, ASC 605 |
Consolidated Balance Sheet Data (in thousands): |
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Prepaids and other current assets |
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$ |
4,072 |
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$ |
(124 |
) |
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$ |
3,948 |
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Other non-current assets |
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3,146 |
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(815 |
) |
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2,331 |
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Total Assets |
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$ |
141,097 |
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$ |
(939 |
) |
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$ |
140,158 |
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Deferred revenues, current portion |
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11,256 |
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3,382 |
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14,638 |
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Deferred revenue, net of current portion |
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47,258 |
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(9,069 |
) |
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38,189 |
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Total Liabilities |
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89,745 |
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(5,687 |
) |
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84,058 |
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Accumulated Deficit |
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(174,176 |
) |
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4,748 |
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(169,428 |
) |
Total stockholders' equity |
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51,352 |
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4,748 |
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56,100 |
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Total liabilities and stockholders' equity |
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$ |
141,097 |
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$ |
(939 |
) |
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$ |
140,158 |
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December 31, 2019 |
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As Reported, ASC 606 |
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Adjustments |
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Adjusted Balance, ASC 605 |
Consolidated Statement of Operations Data (in thousands): |
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Revenue |
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$ |
46,279 |
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$ |
2,315 |
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$ |
48,594 |
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General and administrative expenses |
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18,440 |
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(858 |
) |
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17,582 |
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Loss from operations |
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(27,157 |
) |
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1,457 |
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(25,700 |
) |
Loss before income taxes |
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(25,469 |
) |
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1,457 |
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(24,012 |
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Net loss |
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$ |
(25,469 |
) |
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$ |
1,457 |
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$ |
(24,012 |
) |
Comprehensive loss |
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$ |
(24,482 |
) |
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$ |
1,457 |
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$ |
(23,025 |
) |
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