Annual report pursuant to Section 13 and 15(d)

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details 3)

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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details 3) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss $ (18,361) $ (53,478) $ (54,842) $ (72,587)
Adjustments to reconcile net loss to net cash flows used in operating activities        
Depreciation and amortization   54 73 61
Amortization of discount of notes payable and convertible notes payable   21,875 23,781 18,234
Foreign exchange adjustments   (207) (115) (297)
Net losses on investment in marketable securities   21,718 21,432 43,977
Loss on equity method investment (36) 413 414 97
Loss on debt extinguishment 438 438 438 2,702
Share-based compensation and fair value of replacement equity award   3,593 3,805 4,545
Change in fair value of warrant derivative liabilities (3,576) (3,492) (3,545) (4,476)
Change in fair value of embedded conversion option (131) (131) (131)  
Net changes in operating assets and liabilities        
Accounts receivable   (193) (361) (1,761)
Inventories   (2,787) (3,267) (4,079)
Prepaid expenses and other current assets   (1,025) (720) (332)
Other non-current assets   (4,150) (4,364) (241)
Income tax receivable and payable     (64) 24
Accounts payable and accrued expenses   5,966 6,527 3,572
Deferred rent   (287) (317) 245
Other current liabilities   828 426 5,312
Other long-term liabilities   2,363 2,451 (630)
Net cash flows used in operating activities   (4,137) (4,523) (5,634)
CASH FLOWS FROM INVESTING ACTIVITIES        
Sale of marketable securities   221 221 6,439
Purchases of property and equipment   (55) (60) (94)
Purchase of marketable securities and investment at cost       (469)
Capital contributions and loan to equity method investees       (13,316)
Net cash flows used in investing activities   (1,475) (1,484) (7,440)
CASH FLOWS FROM FINANCING ACTIVITIES        
Repurchase of common stock and warrants       (11,262)
Proceeds from notes payable issued, net of issuance cost and discount     600 11,560
Proceeds from convertible notes payable issued, net of issuance cost and discount       17,816
Payments of notes payable     (143) (5,077)
Payments of convertible notes   (3,368) (5,348) (20,000)
Proceeds from exercise of warrants   186 186 111
Proceeds from issuance of common stock   6,210 8,589 1,275
Net cash flows provided by (used in) financing activities   3,028 3,884 (5,577)
Effect of exchange rate changes on cash   5 (13)  
Net decrease in cash and cash equivalents   (2,579) (2,136) (18,651)
Cash, cash equivalent, beginning of period   3,905 3,905 22,556
Cash, cash equivalents, end of period 1,326 1,326 1,769 3,905
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES        
Interest paid   1,239 1,543 2,178
Income taxes paid   242 227 3
Exercised of warrants and options on cashless basis       18,345
Previously Reported [Member]        
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss (26,083) (59,563)   (58,044)
Adjustments to reconcile net loss to net cash flows used in operating activities        
Depreciation and amortization   54   61
Amortization of discount of notes payable and convertible notes payable   19,479   18,263
Foreign exchange adjustments   49   53
Net losses on investment in marketable securities   21,718   43,977
Loss on equity method investment   0    
Loss on debt extinguishment 6,427 6,427   3,245
Share-based compensation and fair value of replacement equity award   3,541   4,597
Change in fair value of warrant derivative liabilities (424) (623)   (20,674)
Change in fair value of embedded conversion option (342) (342)   (466)
Net changes in operating assets and liabilities        
Accounts receivable   (548)   (1,324)
Inventories   (2,787)   (4,079)
Prepaid expenses and other current assets   (426)   (431)
Other non-current assets   (4,150)   (241)
Income tax receivable and payable       (10)
Accounts payable and accrued expenses   4,857   4,631
Deferred rent   (287)   245
Other current liabilities   230   5,174
Other long-term liabilities   2,363   (630)
Net cash flows used in operating activities   (5,078)   (5,653)
CASH FLOWS FROM INVESTING ACTIVITIES        
Sale of marketable securities   221   6,439
Purchases of property and equipment   (55)   (94)
Purchase of marketable securities and investment at cost       (469)
Net cash flows used in investing activities   (1,475)   5,876
CASH FLOWS FROM FINANCING ACTIVITIES        
Repurchase of common stock and warrants       (11,262)
Proceeds from notes payable issued, net of issuance cost and discount       11,560
Proceeds from convertible notes payable issued, net of issuance cost and discount       17,645
Payments of notes payable       (5,077)
Payments of convertible notes   (3,368)   (20,000)
Proceeds from exercise of warrants   186   111
Proceeds from issuance of common stock   6,210   1,275
Proceeds from noncontrolling interest       48
Net cash flows provided by (used in) financing activities   3,028   (5,700)
Effect of exchange rate changes on cash   (8)    
Net decrease in cash and cash equivalents   (3,533)   (5,477)
Cash, cash equivalent, beginning of period   17,079 17,079 22,556
Cash, cash equivalents, end of period 13,546 13,546   17,079
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES        
Interest paid   1,239   2,178
Income taxes paid   242   3
Exercised of warrants and options on cashless basis       1,712
Adjustments [Member]        
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss 7,722 6,085   (14,543)
Adjustments to reconcile net loss to net cash flows used in operating activities        
Amortization of discount of notes payable and convertible notes payable   2,396   (29) [1]
Foreign exchange adjustments   (256)   (350)
Loss on equity method investment (36) [2] 413 [3]   97 [4]
Loss on debt extinguishment (5,989) [5],[6] (5,989) [7],[8]   (543) [1],[9]
Share-based compensation and fair value of replacement equity award   52   (52) [1]
Change in fair value of warrant derivative liabilities (3,152) [5],[6] (2,869) [7],[8]   16,198 [10],[11]
Change in fair value of embedded conversion option 211 [6] 211 [8]   466 [1],[9]
Net changes in operating assets and liabilities        
Accounts receivable   355   (437) [1]
Prepaid expenses and other current assets   (599)   99 [1]
Income tax receivable and payable [1]       34
Accounts payable and accrued expenses   1,109   (1,059) [1]
Other current liabilities   598   138 [1]
Net cash flows used in operating activities   941   19
CASH FLOWS FROM INVESTING ACTIVITIES        
Capital contributions and loan to equity method investees [1]       (13,316)
Net cash flows used in investing activities       (13,316)
CASH FLOWS FROM FINANCING ACTIVITIES        
Proceeds from convertible notes payable issued, net of issuance cost and discount [1]       171
Proceeds from noncontrolling interest       (48)
Net cash flows provided by (used in) financing activities       123
Effect of exchange rate changes on cash   13    
Net decrease in cash and cash equivalents   954   (13,174)
Cash, cash equivalent, beginning of period   (13,174) $ (13,174)  
Cash, cash equivalents, end of period $ (12,220) $ (12,220)   (13,174)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES        
Exercised of warrants and options on cashless basis       $ 16,633
[1] Correction of unpaid deferred financing cost included in proceeds from convertible notes payable issued, net of issuance cost and discount resulted in a net increase to cash flow from financing activities and a net decrease to cash flow provided by operating activities of $171,000.
[2] 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).
[3] 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.
[4] EJ Holdings adjustments: The correction of this misstatement resulted in a decrease of $211,000 in general and administrative expense, an increase of $97,000 in loss on equity method investment and an increase in $32,000 in interest income.
[5] 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.
[6] 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.
[7] 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.
[8] 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.
[9] Corrections of other misstatement were as follows: (i) period adjustment of variable consideration resulted in increases of $1.4 million in revenue, net and $33,000 in income tax provision; (ii) reclassification of shipping cost and royalty expense to cost of sales resulted in an increase of $229,000 in cost of sales and decreases of $80,000 and $141,000 in selling expense and general and administrative expense, respectively; (iii) correction of stock modification accounting resulted in a decrease of $52,000 in general and administrative expense; and (iv) correction of accounting treatment for conversion feature resulted in an increase of $249,000 in interest expense and decreases of $543,000 and $466,000 in loss on debt extinguishment and change in fair value of embedded conversion option, respectively.
[10] Cashless warrant adjustments: The correction of this misstatement resulted in a decrease of $18.3 million in change in fair value of warrant derivative liabilities.
[11] Warrant adjustments: The correction of this misstatement resulted in an increase of $2.1 million in change in fair value of warrant derivative liabilities and a decrease of $278,000 in interest expense.