| QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) |
NOTE 15—QUARTERLY FINANCIAL STATEMENTS (UNAUDITED)
Set forth below are the Consolidated Financial Statement of the Company as previously reported and as restated to reflect adjustments:
Emmaus Life Sciences, Inc.
Consolidated Balance Sheet
(In thousands, except share and per share amounts)
|
|
|
As of September 30, 2019
(Unaudited)
|
|
|
|
|
Previously Reported
|
|
|
Adjustments
|
|
|
As Restated
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
13,546
|
|
|
|
(12,220
|
)
|
(b)
|
$
|
1,326
|
|
|
Accounts receivable, net
|
|
|
1,900
|
|
|
|
82
|
|
(c)
|
|
1,982
|
|
|
Inventories, net
|
|
|
7,491
|
|
|
|
—
|
|
|
|
7,491
|
|
|
Investment in marketable securities
|
|
|
27,643
|
|
|
|
—
|
|
|
|
27,643
|
|
|
Marketable securities, pledged to creditor
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Prepaid expenses and other current assets
|
|
|
1,194
|
|
|
|
347
|
|
(b)(c)
|
|
1,541
|
|
|
Total current assets
|
|
|
51,774
|
|
|
|
(11,791
|
)
|
|
|
39,983
|
|
|
Property and equipment, net
|
|
|
163
|
|
|
|
—
|
|
|
|
163
|
|
|
Equity method investment
|
|
|
—
|
|
|
|
13,407
|
|
(b)
|
|
13,407
|
|
|
Right of use assets
|
|
|
4,118
|
|
|
|
—
|
|
|
|
4,118
|
|
|
Other assets
|
|
|
427
|
|
|
|
—
|
|
|
|
427
|
|
|
Total assets
|
|
$
|
56,482
|
|
|
$
|
1,616
|
|
|
$
|
58,098
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
10,706
|
|
|
|
220
|
|
(b)
|
$
|
10,926
|
|
|
Operating lease liabilities, current portion
|
|
|
844
|
|
|
|
—
|
|
|
|
844
|
|
|
Other current liabilities
|
|
|
5,676
|
|
|
|
357
|
|
(a)(c)
|
|
6,033
|
|
|
Warrant derivative liabilities
|
|
|
—
|
|
|
|
91
|
|
(a)
|
|
91
|
|
|
Notes payable, net of discount
|
|
|
3,886
|
|
|
|
—
|
|
|
|
3,886
|
|
|
Notes payable to related parties
|
|
|
193
|
|
|
|
—
|
|
|
|
193
|
|
|
Convertible debentures, net of discount
|
|
|
11,000
|
|
|
|
(4,530
|
)
|
(a)
|
|
6,470
|
|
|
Convertible notes payable, net of discount
|
|
|
2,928
|
|
|
|
—
|
|
|
|
2,928
|
|
|
Total current liabilities
|
|
|
35,233
|
|
|
|
(3,862
|
)
|
|
|
31,371
|
|
|
Operating lease liabilities, less current portion
|
|
|
3,714
|
|
|
|
—
|
|
|
|
3,714
|
|
|
Other long-term liabilities
|
|
|
34,585
|
|
|
|
(29
|
)
|
(a)
|
|
34,556
|
|
|
Convertible debentures, net of discount less current portion
|
|
|
1,200
|
|
|
|
(494
|
)
|
(a)
|
|
706
|
|
|
Total liabilities
|
|
|
74,732
|
|
|
|
(4,385
|
)
|
|
|
70,347
|
|
|
STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock — par value $0.001 per share, 15,000,000 shares authorized, no shares issued or outstanding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Common stock — par value $0.001 per share, 250,000,000 shares authorized, 47,671,446 shares issued and outstanding at September 30, 2019
|
|
|
47
|
|
|
|
1
|
|
|
|
48
|
|
|
Additional paid-in capital
|
|
|
199,395
|
|
|
|
13,224
|
|
(a)(b)
|
|
212,619
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(51
|
)
|
|
|
—
|
|
|
|
(51
|
)
|
|
Accumulated deficit
|
|
|
(216,916
|
)
|
|
|
(7,949
|
)
|
|
|
(224,865
|
)
|
|
Stockholders’ deficit
|
|
|
(17,525
|
)
|
|
|
5,276
|
|
|
|
(12,249
|
)
|
|
Noncontrolling interests
|
|
|
(725
|
)
|
|
|
725
|
|
|
|
—
|
|
|
Total liabilities and stockholders’ deficit
|
|
$
|
56,482
|
|
|
$
|
1,616
|
|
|
$
|
58,098
|
|
(a) Senior secured debentures adjustments: The correction of this misstatement resulted in decreases of $4.5 million in short-term convertible notes payable and $0.5 million in long-term convertible notes payable. Also, it resulted in a decrease of $5.6 million in additional paid-in capital, $263,000 million in short-term conversion feature liabilities and $29,000 in long-term conversion feature liabilities.
(b) EJ Holdings adjustments: The correction of this misstatement resulted in increases of $13.4 million in equity method investment, $220,000 in accounts payable and accrued expenses, and $725,000 in non-controlling interest, as well as decreases of $12.2 million in cash and cash equivalents and $241,000 in prepaid expenses and other current assets.
(c) Corrections to other misstatements were as follows: (i) period adjustment and reclassification of variable consideration resulted in increases of $82,000 in accounts receivable and $22,000 in current liabilities; (ii) correction of financing of insurance premium resulting in an increase of $598,000 in prepaid expenses and other current liabilities; (iii) correction relating of debt modification resulting in an increase of $1.1 million in additional paid-in capital; (iv) correction relating to GPB warrant classification resulting in an increase of $91,000 in warrant derivative liabilities and a decrease of $776,000 in additional paid-in capital.
Emmaus Life Sciences, Inc.
Consolidated Statement of operations and Comprehensive Loss
(In thousands, except share and per share amounts)
|
|
|
Three months ended September 30, 2019
( Unaudited)
|
|
|
|
|
Previously Reported
|
|
|
Adjustments
|
|
|
As Restated
|
|
|
REVENUES, NET
|
|
$
|
6,084
|
|
|
$
|
(324
|
)
|
(c)
|
$
|
5,760
|
|
|
COST OF GOODS SOLD
|
|
178
|
|
|
|
70
|
|
(c)
|
|
248
|
|
|
GROSS PROFIT
|
|
|
5,906
|
|
|
|
(394
|
)
|
|
|
5,512
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
725
|
|
|
|
—
|
|
|
|
725
|
|
|
Selling
|
|
|
1,789
|
|
|
|
(11
|
)
|
|
|
1,778
|
|
|
General and administrative
|
|
|
6,991
|
|
|
|
65
|
|
(b)(c)
|
|
7,056
|
|
|
Total operating expenses
|
|
|
9,505
|
|
|
|
54
|
|
|
|
9,559
|
|
|
LOSS FROM OPERATIONS
|
|
|
(3,599
|
)
|
|
|
(448
|
)
|
|
|
(4,047
|
)
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment
|
|
|
(6,427
|
)
|
|
|
5,989
|
|
(a)(c)
|
|
(438
|
)
|
|
Change in fair value of warrant derivative liabilities
|
|
|
424
|
|
|
|
3,152
|
|
(a)(c)
|
|
3,576
|
|
|
Change in fair value of embedded conversion option
|
|
|
342
|
|
|
|
(211
|
)
|
(a)
|
|
131
|
|
|
Net losses on equity investment in marketable securities and long-term investment
|
|
|
(5,248
|
)
|
|
|
—
|
|
|
|
(5,248
|
)
|
|
Net loss on equity method investment
|
|
|
—
|
|
|
|
36
|
|
(b)
|
|
36
|
|
|
Miscellaneous reverse merger costs
|
|
|
(309
|
)
|
|
|
—
|
|
|
|
(309
|
)
|
|
Note conversion costs
|
|
|
(3,906
|
)
|
|
|
565
|
|
(c)
|
|
(3,341
|
)
|
|
Interest and other income (loss)
|
|
|
(17
|
)
|
|
|
35
|
|
(b)
|
|
18
|
|
|
Interest expense
|
|
|
(7,318
|
)
|
|
|
(1,396
|
)
|
(a)
|
|
(8,714
|
)
|
|
Total other income (expenses)
|
|
|
(22,459
|
)
|
|
|
8,170
|
|
|
|
(14,289
|
)
|
|
LOSS BEFORE INCOME TAXES
|
|
|
(26,058
|
)
|
|
|
7,722
|
|
|
|
(18,336
|
)
|
|
INCOME TAXES
|
|
|
25
|
|
|
|
—
|
|
|
|
25
|
|
|
NET LOSS INCLUDING NONCONTROLLING INTEREST
|
|
|
(26,083
|
)
|
|
|
7,722
|
|
|
|
(18,361
|
)
|
|
Net loss attributable to noncontrolling interest
|
|
|
(54
|
)
|
|
|
54
|
|
(b)
|
|
—
|
|
|
NET LOSS ATTRIBUTABLE TO THE COMPANY
|
|
|
(26,137
|
)
|
|
|
7,776
|
|
|
|
(18,361
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPONENTS OF OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
11
|
|
|
|
(6
|
)
|
|
|
5
|
|
|
Other comprehensive loss
|
|
|
11
|
|
|
|
(6
|
)
|
|
|
5
|
|
|
COMPREHENSIVE LOSS
|
|
|
(26,072
|
)
|
|
|
7,716
|
|
|
|
(18,356
|
)
|
|
Amounts attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interest
|
|
|
(54
|
)
|
|
|
54
|
|
|
|
—
|
|
|
Foreign currency translation adjustments
|
|
|
(6
|
)
|
|
|
6
|
|
|
|
—
|
|
|
Comprehensive loss attributable to noncontrolling interest
|
|
|
(60
|
)
|
|
|
60
|
|
|
|
—
|
|
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY
|
|
$
|
(26,132
|
)
|
|
$
|
7,776
|
|
|
$
|
(18,356
|
)
|
|
NET LOSS PER COMMON SHARE - BASIC and DILUTED
|
|
$
|
(0.57
|
)
|
|
$
|
0.17
|
|
|
$
|
(0.40
|
)
|
|
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
|
|
|
46,020,507
|
|
|
|
45,986,629
|
|
|
|
45,986,629
|
|
(a) Senior secured debentures adjustments: The correction of this misstatement resulted in decreases of $6.3 million in loss on debt extinguishment and $211,000 in change in fair value of embedded conversion option and increases of $2.4 million in change in fair value of warrant derivative liabilities and $1.4 million in interest expenses.
(b) EJ Holdings adjustments: The correction of this misstatement resulted in increases of $125,000 in general and administrative expense, $36,000 in loss on equity method investment and an increase in $35,000 in interest and other income (loss).
(c) Corrections to other misstatement were as follows: (i) period adjustment of variable consideration resulted in a decrease of $324,000 in revenue, net; (ii) reclassification of shipping cost and royalty expense to cost of sales resulted in an increase of $71,000 in cost of sales and decreases of $11,000 and $60,000 in selling cost and general and administrative expense, respectively; (iii) correction relating to stock modification accounting resulted in an increase of $52,000 in general and administrative expense; (iv) correction relating to accounting for debt modification resulted in a decrease of $320,000 in loss on debt extinguishment; and (v) correction relating to the GPB warrant classification resulted in an increase of $685,000 in change in fair value of warrant derivative liabilities.
|
|
Nine months ended September 30, 2019
(Unaudited)
|
|
|
|
Previously Reported
|
|
|
Adjustments
|
|
|
As Restated
|
|
|
REVENUES, NET
|
$
|
17,260
|
|
|
$
|
(1,300
|
)
|
(c)
|
$
|
15,960
|
|
|
COST OF GOODS SOLD
|
|
573
|
|
|
|
198
|
|
(c)
|
|
771
|
|
|
GROSS PROFIT
|
|
16,687
|
|
|
|
(1,498
|
)
|
|
|
15,189
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
1,778
|
|
|
|
—
|
|
|
|
1,778
|
|
|
Selling
|
|
5,177
|
|
|
|
(29
|
)
|
|
|
5,148
|
|
|
General and administrative
|
|
14,523
|
|
|
|
(1,048
|
)
|
(b)(c)
|
|
13,475
|
|
|
Total operating expenses
|
|
21,478
|
|
|
|
(1,077
|
)
|
|
|
20,401
|
|
|
LOSS FROM OPERATIONS
|
|
(4,791
|
)
|
|
|
(421
|
)
|
|
|
(5,212
|
)
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment
|
|
(6,427
|
)
|
|
|
5,989
|
|
(a)(c)
|
|
(438
|
)
|
|
Change in fair value of warrant derivative liabilities
|
|
623
|
|
|
|
2,869
|
|
(a)(c)
|
|
3,492
|
|
|
Change in fair value of embedded conversion option
|
|
342
|
|
|
|
(211
|
)
|
(a)
|
|
131
|
|
|
Net losses on equity investment in marketable securities and long-term investment
|
|
(22,242
|
)
|
|
|
—
|
|
|
|
(22,242
|
)
|
|
Net loss on equity method investment
|
|
—
|
|
|
|
(413
|
)
|
(b)
|
|
(413
|
)
|
|
Miscellaneous reverse merger costs
|
|
(309
|
)
|
|
|
—
|
|
|
|
(309
|
)
|
|
Note conversion costs
|
|
(3,906
|
)
|
|
|
565
|
|
(c)
|
|
(3,341
|
)
|
|
Interest and other income (loss)
|
|
146
|
|
|
|
102
|
|
(b)
|
|
248
|
|
|
Interest expense
|
|
(22,757
|
)
|
|
|
(2,396
|
)
|
(a)(c)
|
|
(25,153
|
)
|
|
Total other income (expenses)
|
|
(54,530
|
)
|
|
|
6,505
|
|
|
|
(48,025
|
)
|
|
LOSS BEFORE INCOME TAXES
|
|
(59,321
|
)
|
|
|
6,084
|
|
|
|
(53,237
|
)
|
|
INCOME TAXES
|
|
242
|
|
|
|
(1
|
)
|
(c)
|
|
241
|
|
|
NET LOSS INCLUDING NONCONTROLLING INTEREST
|
|
(59,563
|
)
|
|
|
6,085
|
|
|
|
(53,478
|
)
|
|
Net loss attributable to noncontrolling interest
|
|
620
|
|
|
|
(620
|
)
|
|
|
—
|
|
|
NET LOSS ATTRIBUTABLE TO THE COMPANY
|
|
(58,943
|
)
|
|
|
5,465
|
|
|
|
(53,478
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPONENTS OF OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
10
|
|
|
|
8
|
|
|
|
18
|
|
|
Other comprehensive loss
|
|
10
|
|
|
|
8
|
|
|
|
18
|
|
|
COMPREHENSIVE LOSS
|
|
(59,553
|
)
|
|
|
6,093
|
|
|
|
(53,460
|
)
|
|
Amounts attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interest
|
|
620
|
|
|
|
(620
|
)
|
|
|
—
|
|
|
Foreign currency translation adjustments
|
|
8
|
|
|
|
(8
|
)
|
|
|
—
|
|
|
Comprehensive loss attributable to noncontrolling interest
|
|
628
|
|
|
|
(628
|
)
|
|
|
—
|
|
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY
|
$
|
(58,925
|
)
|
|
$
|
5,465
|
|
|
$
|
(53,460
|
)
|
|
NET LOSS PER COMMON SHARE - BASIC and DILUTED
|
$
|
(1.46
|
)
|
|
$
|
0.14
|
|
|
$
|
(1.32
|
)
|
|
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
|
|
40,474,847
|
|
|
|
40,443,124
|
|
|
|
40,443,124
|
|
(a) Senior secured debentures adjustments: The correction of this misstatement resulted in decreases of $6.3 million in loss on debt extinguishment and $211,000 in change in fair value of embedded conversion option as well as in increases of $2.1 million in change in fair value of warrant derivative liabilities and $1.0 million in interest expenses.
(b) EJ Holdings adjustments: The correction of this misstatement resulted in a decrease of $930,000 in general and administrative expense, and increases of $36,000 in loss on equity method investment and $102,000 in interest income.
(c) Corrections to other misstatement were as follows: (i) period adjustment of variable consideration resulted in decreases of $1.3 million in revenue, net and $1,000 income tax provision (ii) reclassification of shipping cost and royalty expense to cost of sales resulted in an increase of $199,000 in cost of sales and decreases of $29,000 and $170,000 in selling cost and general and administrative expense, respectively; (iii) correction relating to stock modification accounting resulted in an increase of $52,000 in general and administrative expense; (iv) correction relating to accounting for debt modification resulted in an increase of $1.3 million in interest expenses and a decrease of $320,000 in loss on debt extinguishment; and (v) correction relating to GPB warrant classification resulted in an increase of $685,000 in change in fair value of warrant derivative liabilities.
Emmaus Life Sciences, Inc.
Consolidated Statements of Cash Flows
(In thousands)
|
|
|
Nine Months Ended September 30, 2019
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously Reported
|
|
|
Adjustments
|
|
|
As Restated
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(59,563
|
)
|
|
$
|
6,085
|
|
|
$
|
(53,478
|
)
|
|
Adjustments to reconcile net loss to net cash flows used in operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
54
|
|
|
|
—
|
|
|
|
54
|
|
|
Impairment loss on long-term investment
|
|
|
524
|
|
|
|
—
|
|
|
|
524
|
|
|
Amortization of discount of convertible notes and notes payable
|
|
|
19,479
|
|
|
|
2,396
|
|
|
|
21,875
|
|
|
Foreign exchange adjustments on convertible notes and notes payable
|
|
|
49
|
|
|
|
(256
|
)
|
|
|
(207
|
)
|
|
Net losses on equity investment in marketable securities
|
|
|
21,718
|
|
|
|
—
|
|
|
|
21,718
|
|
|
Loss on equity method investment
|
|
|
0
|
|
|
|
413
|
|
|
|
413
|
|
|
Loss on debt extinguishment
|
|
|
6,427
|
|
|
|
(5,989
|
)
|
|
|
438
|
|
|
Share-based compensation and fair value of replacement equity award
|
|
|
3,541
|
|
|
|
52
|
|
|
|
3,593
|
|
|
Note conversion costs
|
|
|
3,906
|
|
|
|
(565
|
)
|
|
|
3,341
|
|
|
Change in fair value of warrant derivative liabilities
|
|
|
(623
|
)
|
|
|
(2,869
|
)
|
|
|
(3,492
|
)
|
|
Change in fair value of embedded conversion option
|
|
|
(342
|
)
|
|
|
211
|
|
|
|
(131
|
)
|
|
Net changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(548
|
)
|
|
|
355
|
|
|
|
(193
|
)
|
|
Inventories
|
|
|
(2,787
|
)
|
|
|
—
|
|
|
|
(2,787
|
)
|
|
Prepaid expenses and other current assets
|
|
|
(426
|
)
|
|
|
(599
|
)
|
|
|
(1,025
|
)
|
|
Other non-current assets
|
|
|
(4,150
|
)
|
|
|
—
|
|
|
|
(4,150
|
)
|
|
Accounts payable and accrued expenses
|
|
|
4,857
|
|
|
|
1,109
|
|
|
|
5,966
|
|
|
Deferred revenue
|
|
|
500
|
|
|
|
—
|
|
|
|
500
|
|
|
Deferred rent
|
|
|
(287
|
)
|
|
|
—
|
|
|
|
(287
|
)
|
|
Other current liabilities
|
|
|
230
|
|
|
|
598
|
|
|
|
828
|
|
|
Other long-term liabilities
|
|
|
2,363
|
|
|
|
—
|
|
|
|
2,363
|
|
|
Net cash flows used in operating activities
|
|
|
(5,078
|
)
|
|
|
941
|
|
|
|
(4,137
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid in connection with the Merger
|
|
|
(1,641
|
)
|
|
|
—
|
|
|
|
(1,641
|
)
|
|
Purchases of property and equipment
|
|
|
(55
|
)
|
|
|
—
|
|
|
|
(55
|
)
|
|
Sales of marketable securities
|
|
|
221
|
|
|
|
—
|
|
|
|
221
|
|
|
Net cash flows provided by (used in) investing activities
|
|
|
(1,475
|
)
|
|
|
—
|
|
|
|
(1,475
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments of convertible notes
|
|
|
(3,368
|
)
|
|
|
—
|
|
|
|
(3,368
|
)
|
|
Proceeds from exercise of warrants
|
|
|
186
|
|
|
|
—
|
|
|
|
186
|
|
|
Proceeds from issuance of common stock
|
|
|
6,210
|
|
|
|
—
|
|
|
|
6,210
|
|
|
Net cash flows provided by (used in) financing activities
|
|
|
3,028
|
|
|
|
—
|
|
|
|
3,028
|
|
|
Effect of exchange rate changes on cash
|
|
|
(8
|
)
|
|
|
13
|
|
|
|
5
|
|
|
Net decrease in cash and cash equivalents
|
|
|
(3,533
|
)
|
|
|
954
|
|
|
|
(2,579
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
17,079
|
|
|
|
(13,174
|
)
|
|
|
3,905
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
13,546
|
|
|
|
(12,220
|
)
|
|
$
|
1,326
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
1,239
|
|
|
$
|
—
|
|
|
$
|
1,239
|
|
|
Income taxes paid
|
|
$
|
242
|
|
|
$
|
—
|
|
|
$
|
242
|
|
|
Warrant liabilities reclassified to equity
|
|
$
|
776
|
|
|
$
|
5,561
|
|
|
$
|
6,337
|
|
|
Conversion of convertible notes and notes payable to common stock
|
|
$
|
33,777
|
|
|
$
|
—
|
|
|
$
|
33,777
|
|
|
Conversion of accrued interest payable to common stock
|
|
$
|
2,381
|
|
|
$
|
—
|
|
|
$
|
2,381
|
|
|
Initial recognition of right-of-use lease asset
|
|
$
|
—
|
|
|
$
|
2,922
|
|
|
$
|
2,922
|
|
Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operation and Comprehensive Loss for the nine months ended September 30, 2018 above.
Cash flow classification adjustment related to EJ Holdings in 2019 resulted in a net increase to cash flows provided by operating activities of $940,000.
No other misstatements impacted the classifications between net operating, net investing or net financing cash flow activities for the nine months ended September 30, 2019.
|