Annual report pursuant to Section 13 and 15(d)

RESTATEMENT

v3.19.2
RESTATEMENT
12 Months Ended
Mar. 31, 2019
Restatement [Abstract]  
Restatement [Text Block]
NOTE 2:
RESTATEMENT
Restatement of Previously Issued Financial Statements
In February 2018, the Audit Committee (“Audit Committee”) of our Board of Directors (the “Board”), and subsequently a special committee of the Board (the “Special Committee”) consisting of two members of the Audit Committee, began conducting an internal investigation, with the assistance of independent accounting and legal advisors, into matters related to the Company’s accounting practices and internal control over financial reporting related to revenue recognition for transactions occurring between January 1, 2016 and March 31, 2018. Upon the recommendation of the Audit Committee and as a result of the investigation by the Special Committee and after consultation with the Company’s management, on September 14, 2018, the Company’s Board of Directors concluded that the Company’s previously issued consolidated financial statements and other financial data for the fiscal years ended March 31, 2017, 2016 and 2015 contained in the Company’s Annual Reports on Form 10-K for the fiscal year ended March 31, 2017, and the Company’s condensed consolidated financial statements for each of the quarterly and year-to-date periods ended June 30, 2015, September 30, 2015, December 31, 2015, June 30, 2016, September 30, 2016, December 31, 2016, June 30, 2017 and September 30, 2017 (collectively, the “Non-Reliance Periods”) should not be relied upon and required restatement (the “Restatement”). The Board also determined that the Company’s disclosures related to these financial statements and related communications issued by or on behalf of the Company with respect to the Non-Reliance Periods, including management’s assessment of internal control over financial reporting and disclosure controls and procedures, should not be relied upon.
This Note discloses the nature of the Restatement adjustments and shows the impact of the restatement on revenues, expenses, income, assets, liabilities, equity, and cash flows from operating activities, investing activities and financing activities, and the cumulative effects of these adjustments on the consolidated balance sheets, statements of operations and comprehensive loss, statement of stockholders’ deficit and statements of cash flows for the fiscal year ended March 31, 2017. In addition, this Note shows the effects of the adjustment to opening accumulated deficit as of April 1, 2016, which adjustment reflects the impact of the Restatement on periods prior to the fiscal year ended March 31, 2017. The cumulative impact of the Restatement for all previously reported periods was an adjustment to increase accumulated deficit of approximately $12.5 million and decrease to accumulated other comprehensive income of approximately $4.8 million as of April 1, 2016. The impact on fiscal year 2017 was a reduction in pre-tax loss and net loss of $5.5 million and $6.1 million, respectively. The restated interim financial information for the relevant unaudited interim financial statements for the three months ended June 30, 2017 and the three-and six-months ended September 30, 2017 are included in Note 13:
Quarterly Financial Data (Unaudited)
.
Restatement Background
On January 11, 2018, the Company received a subpoena from the Securities and Exchange Commission (“SEC”) seeking documents pertaining to the Company’s accounting practices and internal controls related to revenue recognition for transactions commencing April 1, 2016. The Company subsequently decided to postpone the release of Quantum’s results for the third quarter of fiscal 2018 and the Audit Committee began an independent investigation into the Company’s accounting practices and internal controls over financial reporting related to revenue recognition for transactions occurring between January 1, 2016 and March 31, 2018, with the assistance of independent accounting and legal advisors. Subsequently, the Special Committee, undertook to continue the investigation.
 
In September 2018, the Special Committee substantially completed and finalized its principal findings with respect to its investigation. The principal findings included a determination that the Company engaged in certain business and sales practices that may have undermined its historical accounting treatment for transactions with several key distributors and at least one end customer. The Special Committee found that the identified transactions potentially affected by such practices commenced at least in the fourth quarter of fiscal 2015 and continued at least through the fourth quarter of fiscal 2018 (the “Investigation Related Revenue Misstatements”). The Special Committee also found that these business and sales practices may have resulted in the Company recognizing revenue for certain transactions prior to satisfying the criteria for revenue recognition required under generally accepted accounting principles in the United States of America (“U.S. GAAP”).
In response to the findings of the Special Committee, the Company conducted a thorough review of its financial records for the fiscal years ended March 31, 2015, 2016 and 2017, and for each of the quarterly and year to date periods ended June 30, 2017 and September 30, 2017 to determine whether further adjustments were necessary. The Company concluded that there were material misstatements in the consolidated financial statements for the fiscal years ended March 31, 2015, 2016 and 2017 as well as the unaudited interim consolidated financial statements for the quarterly periods ended June 30, 2016, December 31, 2016, June 30, 2017 and September 30, 2017.
The Special Committee investigation is now complete, although our outside legal counsel, together with the assistance of the independent legal counsel to the Special Committee and independent accounting advisors, continue to provide support as requested in connection with the SEC investigation discussed in more detail in
Item 3—Legal Proceedings
contained in this Annual Report on Form 10-K.
As part of the Company’s review of its financial records, management identified control deficiencies related to the control environment, risk assessment, information and communication, and monitoring. For further information regarding these control deficiencies, please see
Item 9A—Controls and Procedures
in this Annual Report on Form 10-K. The Company’s incorrect accounting was the result of these control deficiencies. The Company’s investigation found that one of these factors was that an inconsistent and sometimes inappropriate tone at the top was present under the then existing senior management that did not in certain instances result in adherence to U.S. GAAP and the Company’s accounting policies and procedures. Other factors affecting the overall historic accounting environment included: lack of an effective control environment for certain accounting estimates; lack of sufficient personnel with an appropriate level of knowledge, experience and training commensurate with the Company’s financial reporting requirements; lack of clear reporting structures, reporting lines and decisional authority responsibilities; lack of effective controls over certain business processes which included the execution of controls over revenue recognition and the preparation, analysis and review of significant account reconciliations and closing adjustments; and other matters. Taken together, these factors contributed to the consolidated financial statement errors that resulted in the Restatement.
Description of Restatement Matters and Restatement Adjustments
The categories of restatement adjustments and their impact on previously reported consolidated financial statements are described below.
 
  (a)
Investigation Related Revenue –
As disclosed in Note 2:
Restatement
, the Company prematurely recognized product revenue sold to certain distributors, resellers and end-user customers. The associated product cost of revenue for each product revenue sales order was also recognized in the incorrect period. Additionally, for all transactions where product revenue was recognized prematurely, a reclassification is recorded at sell-in to reflect the movement of inventory at Quantum’s warehouse to inventory at its distributor’s warehouse. For the transactions where revenue was recognized prematurely, the Company restated the consolidated financial statements to reflect the revenue in the period in which the criteria for revenue recognition under U.S. GAAP have been satisfied. For revenue transactions where the criteria for revenue recognition under U.S. GAAP have not yet been satisfied, we deferred revenue recognition until all criteria are satisfied. The impact of this misstatement to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is a decrease to product revenue and product cost of revenue of $11.9 million and $4.5 million, respectively, and a decrease to pre-tax earnings of $7.4 million. The impact to the consolidated balance sheet at March 31, 2017 is a decrease to accounts receivable and other accrued liabilities of $13.6 million and $0.5 million, respectively and an increase to manufacturing inventories and deferred revenue current of $8.6 million and $4.1 million, respectively.
 
  (b)
Service Revenue Amortization Convention –
The Company inappropriately recognized service revenue on a monthly convention at the beginning of the initial month of service regardless of the service period start date resulting in an acceleration of revenue recognition. Additionally, certain annual service contracts were inappropriately recognized over a 13-month period resulting in a deceleration of revenue recognition. The combined impact of these misstatements to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is an increase to service revenue and pre-tax earnings of $1.6 million. The impact to the consolidated balance sheet at March 31, 2017 is an increase in current and long-term deferred revenue of $3.5 million and $1.3 million, respectively.
 
  (c)
Cash Consideration Paid to Customers –
The Company inappropriately recorded cash consideration paid to customers as expenses rather than as a reduction of revenue as such payments did not meet the identifiable benefit criteria within the Accounting Standards Codification (“ASC”) 605,
Revenue Recognition
(“Topic 605”) guidance. We have reclassified these expenses from sales and marketing expense to product revenue. The impact of this misstatement to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is a decrease to product revenue and sales and marketing expense of $2.0 million with no impact to pre-tax earnings. There was no impact to the consolidated balance sheet at March 31, 2017.
 
  (d)
Sales Tax –
The Company inappropriately accrued U.S. states’ sales tax on foreign sales. There was no impact to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017. The impact of this misstatement to the consolidated balance sheet at March 31, 2017 is a decrease to accounts receivable and other accrued liabilities of $0.5 million.
 
  (e)
A
ccrued Warranty –
The Company reviewed its warranty accrual methodology and determined that previous estimates did not appropriately reflect the Company’s historical experience. The Company changed its method in calculating the warranty accrual and applied the adjustments retroactively. The impact of this misstatement to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is an increase to service cost of revenue and a decrease to pre-tax earnings of $0.4 million. The impact to the consolidated balance sheet at March 31, 2017 is an increase in other accrued liabilities of $0.4 million.
 
  (f)
Commissions Accrual –
Relating to misstatement (a), when the Company prematurely recognized revenue, the associated commission expense was also prematurely recognized. The Company restated commission expense to match the timing of associated revenue recognition. The impact of this misstatement to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is a decrease to sales and marketing expense and an increase in pre-tax earnings of $0.7 million. The impact to the consolidated balance sheet at March 31, 2017 is a decrease to accrued compensation of $1.4 million.
 
  (g)
Short Term Disability Plan –
The Company inappropriately accounted for its employee funded disability plan and did not reflect employee contributions within restricted cash and did not recognize the obligation to fund disability claims as incurred. The impact of this misstatement on the consolidated balance sheet at March 31, 2017 is an increase to restricted cash and accrued compensation of $1.1 million. There was no impact to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017.
 
  (h)
Third Party Maintenance Contracts
– The Company changed its method to appropriately account for capitalized third party maintenance contracts. The impact of this misstatement to the consolidated balance sheet at March 31, 2017 was a decrease to accounts payable and other current assets of $0.8 million. There was no impact of this misstatement to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017.
 
  (i)
Debt Issuance Costs –
The Company reclassified capitalized debt issuance costs on its revolver loan from long-term debt to a current asset. The impact of this misstatement to the consolidated balance sheet at March 31, 2017 is an increase to long term debt, net of current portion and other long-term assets of $1.6 million. There was no impact to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017.
 
  (j)
Restructuring
The Company did not properly calculate expenses related to its restructuring activities, including failure to apply appropriate discount rates and omitting certain facilities in calculating the restructuring liabilities. The impact of this misstatement to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is an increase to restructuring charges and a decrease in pre-tax earnings of less than $0.1 million. The impact to the consolidated balance sheet at March 31, 2017 is an increase to current and non-current accrued restructuring charges of $1.0 million and $3.9 million, respectively.
 
  (k)
General Presentation
– Certain activities in the statement of cash flows and consolidated balance sheets have been reclassified to conform with current fiscal year’s presentation. The impact to the consolidated balance sheet at March 31, 2017 is a decrease to warranty liability and an increase to other accrued liabilities of $3.3 million. There was no impact to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017.
 
  (l)
Australian Deferred Tax Assets and Valuation Allowance
– The Company failed to record deferred tax assets for certain book-tax differences at an Australian affiliate and to further establish a valuation allowance against certain of the tax assets. The impact of this misstatement to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is an increase to income tax expense of $0.2 million. The impact to the balance sheet at March 31, 2017 is an increase to other long term assets and accumulated deficit of $0.5 million and $0.7 million, respectively.
 
  (m)
Deferred Tax Liability Related to Unrealized Swiss Currency Gains
– The Company misclassified and under accrued Swiss income tax on unrealized currency gains attributable to a dollar-denominated intercompany note receivable. The impact of this misstatement to the consolidated balance sheet at March 31, 2017 is a decrease to other accrued liabilities of $0.6 million and an increase to accumulated other comprehensive loss and other long-term liabilities of $0.1 million and $0.5 million respectively. There was no impact of this misstatement to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017.
 
  (n)
Reserves for Uncertain Tax Positions on Transfer Pricing
– The Company did not accrue a reserve for foreign taxes payable due to uncertain tax positions relating to its transfer pricing for services and interest income on intercompany notes and payables. The impact of this misstatement to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is an increase to income tax expense of $0.3 million. The impact to the consolidated balance sheet at March 31, 2017 is an increase to other long-term liabilities of $4.2 million and a decrease to the accumulated deficit of $3.8 million.
 
  (o)
Valuation Allowance for State Credit Carryforward
– The Company failed to analyze all evidence, both positive and negative, when considering the future realization of its Texas state credit carryforward and inappropriately established a 100% valuation allowance against the related deferred tax asset. The Company reevaluated the evidence and partially removed this valuation allowance. The impact of this misstatement to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is an increase to income tax expense of less than $0.1 million. The impact to the consolidated balance sheet at March 31, 2017 is an increase to other long-term assets and accumulated deficit of $0.3 million.
 
  (p)
Tax Accounting
– The Company recalculated its income tax expense on an annual and quarterly basis to account for certain errors in the previous calculations of its federal income tax receivable, federal long term income tax payable, and state income tax payable. Restatements impacting book income and various asset and liability accounts had no net effect on deferred taxes or tax expense due to the Company’s position of losses and a full valuation allowance. The impact of this misstatement to the statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is a decrease to income tax expense of less than $0.1 million. The impact to the consolidated balance sheet at March 31, 2017 is a decrease to other accrued liabilities and accumulated deficit of $0.1 million and $0.9 million respectively, and an increase in other long-term liabilities of $0.7 million.
 
  (q)
Other Adjustments
– There are other restatement matters otherwise not described in items (a) through (s) of this Note. The related adjustments are individually insignificant in the fiscal year ended March 31, 2017 but in aggregate are material to the consolidated financial statements. These misstatements include:
 
   
Unrecognized gain (loss) of cumulative translation adjustments upon the liquidation of certain foreign entities
 
   
Unrecognized asset retirement obligations
 
   
Incorrect accounting for a cost method investment
 
   
Accruals recorded in the incorrect accounting period
The aggregate impact of these misstatement to the consolidated statement of operations and comprehensive loss for the fiscal year ended March 31, 2017 is a decrease to general and administrative and other expenses of less than $0.1 million, and an increase in interest expense of less than $0.1 million. The resulting impact to pre-tax earnings is a decrease of less than $0.1 million. The impact to the consolidated balance sheet at March 31, 2017 is a decrease to property and equipment, other long-term assets, and accumulated comprehensive income of $0.3 million, $0.7 million, and $4.8 million respectively, and an increase in other accrued liabilities $0.9 million.
Consolidated financial statement adjustments tables
The following tables present the restatement adjustments to previously issued consolidated financial statements, including the previously reported consolidated balance sheet as of March 31, 2017, and the consolidated statement of operations and comprehensive loss, stockholders’ deficit and statement of cash flows for the fiscal year ended March 31, 2017. The correction of misstatements affecting fiscal years prior to the fiscal year ended March 31, 2017 are reflected as a cumulative adjustment to the April 1, 2016 stockholders’ deficit on the consolidated balance sheet and consolidated statement of stockholders’ deficit.
 
QUANTUM CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
 
 
   
March 31, 2017
 
   
As Reported
   
Restatement

Adjustments
   
Restatement

Reference
   
As Restated
 
ASSETS
                               
Current Assets
                               
Cash and cash equivalents
  $ 12,958     $ —               $ 12,958  
Accounts receivable, net of allowance for doubtful accounts of $16 as of March 31, 2017
    116,056       (14,110     a, d       101,946  
Manufacturing inventories
    27,661       8,613       a       36,274  
Service part inventories
    19,849       —                 19,849  
Other current assets
    9,969       (786     h       9,183  
Restricted cash
    1,832       1,122       g       2,954  
   
 
 
   
 
 
           
 
 
 
Total current assets
    188,325       (5,161             183,164  
Property and equipment, less accumulated depreciation
    11,186       (310     q       10,876  
Intangible assets, less accumulated amortization
    276       —                 276  
Restricted cash, long-term
    20,000       —                 20,000  
Other long term assets
    5,240       1,686       i, l, o, q       6,926  
   
 
 
   
 
 
           
 
 
 
Total assets
 
$
225,027
   
$
(3,785
         
$
221,242
 
   
 
 
   
 
 
           
 
 
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
                               
Liabilities
                               
Current liabilities:
                               
Accounts payable
  $ 41,611       (785     h     $ 40,826  
Accrued warranty
    3,263       (3,263     k       —    
Deferred revenue, current
    84,683       7,642       a, b       92,325  
Accrued restructuring charges, current
    869       1,025       j       1,894  
Long-term debt current portion
    —         —                 —    
Convertible subordinated debt, current
    62,827       —                 62,827  
Accrued compensation
    24,104       (315     f, g       23,789  
Other accrued liabilities
    12,998       2,947       a, d, e, k, m, p,        15,945  
   
 
 
   
 
 
           
 
 
 
Total current liabilities
    230,355       7,251               237,606  
Deferred revenue, long-term
    37,642       1,254       b       38,896  
Accrued restructuring charges, long-term
    481       3,907       j       4,388  
Long-term debt, net of current portion
    65,028       1,648       i       66,676  
Convertible subordinated debt, long-term
    —         —                 —    
Other long-term liabilities
    7,520       5,452       m, n, p       12,972  
   
 
 
   
 
 
           
 
 
 
Total liabilities
    341,026       19,512               360,538  
Commitment and contingencies (Note 11)
                               
Stockholders’ deficit
                               
Preferred stock:
                               
Preferred stock 20,000 shares authorized; no shares issued as of March 31, 2017
    —         —                 —    
Common stock:
                               
Common stock, $0.01 par value; 1,000,000 shares authorized; 34,063 shares issued and outstanding at March 31, 2017
    340       —                 340  
Additional paid-in capital
    473,850       —                 473,850  
Accumulated deficit
    (593,295     (18,516     a-b, e-f, j, l,
n-q
      (611,811
Accumulated other comprehensive income
    3,106       (4,781     m, q       (1,675
   
 
 
   
 
 
           
 
 
 
Total stockholders’ deficit
    (115,999     (23,297             (139,296
   
 
 
   
 
 
           
 
 
 
Total liabilities and stockholders’ deficit
 
$
225,027
   
$
(3,785
         
$
221,242
 
   
 
 
   
 
 
           
 
 
 
 
QUANTUM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 
   
Year end March 31, 2017
 
   
As Reported
   
Restatement

Adjustments
   
Restatement
References
 
As Restated
 
Revenue:
                           
Product revenue
  $ 322,212     $ (13,894   a, c   $ 308,318  
Service revenue
    144,335       1,603     b     145,938  
Royalty revenue
    38,798       —             38,798  
   
 
 
   
 
 
       
 
 
 
Total revenue
    505,345       (12,291         493,054  
   
 
 
   
 
 
       
 
 
 
Costs and expenses:
                           
Product cost of revenue
    231,207       (4,547   a     226,660  
Service cost of revenue
    60,714       408     e     61,122  
Total cost of revenue
    291,921       (4,139         287,782  
   
 
 
   
 
 
       
 
 
 
Gross profit
    213,424       (8,152         205,272  
   
 
 
   
 
 
       
 
 
 
Operating expenses:
                           
Research and development
    44,379       —             44,379  
Sales and marketing
    103,235       (2,708   c, f     100,527  
General and administrative
    51,599       (9   q     51,590  
Restructuring charges
    2,063       32     j     2,095  
   
 
 
   
 
 
       
 
 
 
Total operating expenses
    201,276       (2,685         198,591  
   
 
 
   
 
 
       
 
 
 
Income (loss) from operations
    12,148       (5,467         6,681  
Other expenses and losses, net:
                           
Interest expense, net
    7,912       81     q     7,993  
Loss on debt extinguishment
    41       —             41  
Other income, net
    (562     (39   q     (601
   
 
 
   
 
 
       
 
 
 
Income (loss) before income taxes
    4,757       (5,509         (752
Income tax expense (benefit)
    1,112       544     l, n, o, p     1,656  
   
 
 
   
 
 
       
 
 
 
Net income (loss)
  $ 3,645     $ (6,053       $ (2,408
   
 
 
   
 
 
       
 
 
 
Net loss per share:
                           
Basic
  $ 0.11                 $ (0.07
Diluted
  $ 0.11                 $ (0.07
         
Weighted average common shares outstanding - basic
    33,742                   33,742  
Weighted average common shares outstanding - diluted
    34,113                   33,742  
 
QUANTUM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
   
For the Fiscal Year Ended March 31, 2017
 
   
As Reported
   
Restatement
Adjustments
   
Restatement
Reference
   
As Restated
 
Cash flows from operating activities:
                               
Net income (loss)
  $ 3,645     $ (6,053     a, b, e, f, j, l,
n, o, q
    $ (2,408
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
                               
Depreciation and amortization
    5,433       202       k, q       5,635  
Amortization of intangible assets
    175       (175     k       —    
Amortization of debt issuance costs
    1,373       —                 1,373  
Product and service parts lower of cost or market adjustment
    4,960       2,649       k       7,609  
Share-based compensation expense
    6,698       —                 6,698  
Bad debt expense
    —         24       k       24  
Deferred income taxes, net
    97       400       k, l, n-p       497  
Loss on disposal of property and equipment
    —         11       k       11  
Unrealized foreign exchange (gain)/loss
    —         (650     k       (650
Changes in assets and liabilities:
                               
Accounts receivable
    (10,097     9,727       a, d, k       (370
Manufacturing inventories
    12,931       (9,104     a, k       3,827  
Service parts inventories
    (4,969     1,565       k       (3,404
Accounts payable
    (4,845     (439     h, k       (5,284
Accrued warranty
    (167     167       k       —    
Accrued restructuring charges
    (1,387     (257     j, k       (1,644
Accrued compensation
    1,492       292       f, g, k       1,784  
Deferred revenue
    (2,020     334       a, b, k       (1,686
Other assets and liabilities
    (5,601     2,145       a, d, e, i, k, q       (3,456
   
 
 
   
 
 
           
 
 
 
Net cash provided by (used in) operating activities
    7,718       (839             8,557  
   
 
 
   
 
 
           
 
 
 
Cash flows from investing activities:
                               
Purchases of property and equipment
    (1,752     (465     k, q       (2,217
Proceeds from sale of assets
    —         736       k       736  
Cash distributions from investments
    —         48       k       48  
   
 
 
   
 
 
           
 
 
 
Net cash provided by (used in) investing activities
    (1,752     319               (1,433
   
 
 
   
 
 
           
 
 
 
Cash flows from financing activities:
                               
Borrowings of long-term debt and subordinated convertible debt, net of debt issuance costs
    104,914       —                 104,914  
Repayments on long-term debt
    (106,172     (6,910     k       (113,082
Repayment of convertible subordinated debt
    (6,910     6,910       k       —    
Payment of tax withholding due upon vesting of restricted stock
    (738     1       k       (737
Proceeds from issuance of common stock under the employee stock purchase plan
    1,020       (1     k       1,019  
   
 
 
   
 
 
           
 
 
 
Net cash provided by (used in) financing activities
    (7,886     —                 (7,886
   
 
 
   
 
 
           
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
    52       (36     k       16  
   
 
 
   
 
 
           
 
 
 
Net decrease in cash, cash equivalents and restricted cash
    (1,868     1,122               (746
Cash, cash equivalents and restricted cash at the beginning of period
    36,658       —                 36,658  
   
 
 
   
 
 
           
 
 
 
Cash, cash equivalents and restricted cash at the end of period
  $ 34,790     $ 1,122             $ 35,912  
   
 
 
   
 
 
           
 
 
 
Supplemental disclosure of cash flow information:
                               
Purchases of property and equipment included in accounts payable
  $ 321     $ (42           $ 279  
Transfer of inventory to property and equipment
  $ 1,588     $ 340             $ 1,928  
Cash Paid For:
                               
Interest
  $ 5,952     $ 14       k     $ 5,966  
Taxes, net of refunds
  $ 1,050     $ (373     k     $ 677