Quarterly report pursuant to Section 13 or 15(d)

Restatement of Previously Issued Financial Statements

v3.10.0.1
Restatement of Previously Issued Financial Statements
 9 Months Ended
Sep. 30, 2017
Equity [Abstract]  
Restatement of Previously Issued Financial Statements

Note 2 - Restatement of Previously Issued Financial Statements

 

The Company determined that when calculating its income tax provision related to the gain on the sale of discontinued operations, it incorrectly utilized available net operating losses without considering the statutory limitations imposed by the state of Pennsylvania, and that it incorrectly allocated the amount of income tax benefit resulting from the reversal of certain valuation allowances to continuing operations, which resulted in an overstatement of income the tax benefit from continuing operations and an understatement of the gain on sale of discontinued operations, which is presented net of taxes. In the process of this determination, the Company determined that such information existed at September 30, 2017 which affected the income tax benefit/ provision from continuing and discontinued operations reported in the three and nine months ended September 30, 2017. The Company concluded that the impact of applying corrections for these errors and misstatements on the consolidated financial statements as of and for the three and nine months ended September 30, 2017 is material. As a result, the Company is restating its consolidated financial statements as of and for the three and nine months ended September 30, 2017. See below for a reconciliation of the previously reported amounts to the restated amounts.

 

The table below sets forth the condensed consolidated balance sheet, including the balances as originally reported, adjustments and the as restated balances (in thousands):

 

    As of September 30, 2017  
    As originally reported     Adjustments     As restated  
                   
Income taxes payable   $ -     $ 751     $ 751  
Total current liabilities     2,432       751       3,183  
                         
Retained earnings     21,869       (751 )     21,118  
Total stockholders’ equity     36,650       (751 )     35,899  
Total liabilities and stockholders’ equity   $ 39,082     $ -     $ 39,082  

 

The table below sets for the condensed consolidated statements of operations, including the balances as originally reported, adjustments, and the as restated amounts (in thousands):

 

    For the three months ended September 30, 2017  
    As originally reported     Adjustments     As restated  
                   
Income tax benefit from continuing operations   $ -     $ 305     $ 305  
Loss from continuing operations     (777 )     305       (472 )
                         
Gain on sale of discontinued operations, net of taxes   $ -       (305 )     (305 )
Loss from discontinued operations, net of tax     -       (305 )     (305 )
Net loss     (777 )     -       (777 )
                         
Basic loss per share:                        
Loss from continuing operations   $ (0.05 )   $ 0.02     $ (0.03 )
Loss from discontinued operations     -       (0.02 )     (0.02 )
Net loss   $ (0.05 )   $ 0.00     $ (0.05 )
                         
Diluted loss per share:                        
Loss from continuing operations   $ (0.05 )   $ 0.02     $ (0.03 )
Loss from discontinued operations     -       (0.02 )     (0.02 )
Net loss   $ (0.05 )   $ 0.00     $ (0.05 )

 

    For the nine months ended September 30, 2017  
    As originally reported     Adjustments     As restated  
                   
Income tax benefit from continuing operations   $ 18,113     $ (16,791 )   $ 1,322  
Income (loss) from continuing operations     14,677       (16,791 )     (2,114 )
                         
Gain on sale of discontinued operations, net of taxes     26,349       16,040       42,389  
Income from discontinued operations     26,879       16,040       42,919  
Net income     41,556       (751 )     40,805  
                         
Basic earnings (loss) per share:                        
Income (loss) from continuing operations   $ 0.88     $ (1.01 )   $ (0.13 )
Income from discontinued operations     1.61       0.97       2.58  
Net income   $ 2.49     $ (0.04 )   $ 2.45  
                         
Diluted earnings (loss) per share:                        
Income (loss) from continuing operations   $ 0.86     $ (0.99 )   $ (0.13 )
Income income from discontinued operations     1.57       0.94       2.51  
Net income   $ 2.43     $ (0.05 )   $ 2.38  

 

The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances as originally reported, adjustments and as the restated balances (in thousands):

 

    For the nine months ended September 30, 2017  
    As originally reported     Adjustments     As restated  
                   
Net income   $ 41,556     $ (751 )   $ 40,805  
Gain on sale of assets, net of taxes     (26,339 )     (16,050 )     (42,389 )
Change in valuation allowance, income tax     (19,473 )     18,151       (1,322 )
Other current liabilities     (67 )     (1,350 )     (1,417 )
Net cash used in operating activities   $ (4,323 )   $ -     $ (4,323 )

 

The restatement had no impact on cash flows from investing activities or financing activities or net increase in cash.