Annual report [Section 13 and 15(d), not S-K Item 405]

RESTATEMENT

v3.25.2
RESTATEMENT
 12 Months Ended
Mar. 31, 2025
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT RESTATEMENT OF UNAUDITED QUARTERLY FINANCIAL STATEMENTS
The unaudited condensed consolidated financial statements for three and nine-months ended December 31, 2024 are being restated for the following.

a.Service contract term - The Company identified that there were inconsistencies in the period used to recognize service and subscription revenue, which is deferred under Topic 606 and recognized ratably over the contractual term of the contract. The Company’s management reviewed and updated the periods over which revenue was being recognized to ensure consistent application for all service contracts invoiced in the fiscal year ended March 31, 2025 and the results have been applied to revenue.

b.Application of Topic 606 related to standalone selling price - The Company also determined that the standalone selling price that was being used for the fiscal year ended March 31, 2025 needed to be updated resulting in an adjustment to revenue. Standalone selling price has now been refreshed for all goods and services sold in a bundled contract under Topic 606, maximizing the use of observable inputs.

The following tables present the impact of the restatement for three and nine-months ended December 31, 2024:
December 31, 2024
As previously report Restatement adjustments Reference As restated
Assets
Current assets:
Cash and cash equivalents $ 20,381  $ —  $ 20,381 
Restricted cash 222  —  222 
Accounts receivable, net of allowance for credit losses of $99
 61,373  —  61,373 
Manufacturing inventories 18,861  —  18,861 
Service parts inventories 1,884  —  1,884 
Prepaid expenses 2,569  —  2,569 
Other current assets 8,538  —  8,538 
Total current assets 113,828  —  —  113,828 
Property and equipment, net 11,268  —  11,268 
Goodwill 12,969  —  12,969 
Intangible assets, net 509  —  509 
Right-of-use assets 8,670  —  8,670 
Other long-term assets 20,812  —  20,812 
Total assets $ 168,056  —  $ 168,056 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable $ 34,704  —  $ 34,704 
Accrued compensation 11,702  —  11,702 
Deferred revenue, current portion 69,916  (3,154)
a, b
 66,762 
Term debt
 98,609  —  98,609 
Revolving credit facility 37,500  —  37,500 
Warrant liabilities 34,005  —  34,005 
Other accrued liabilities 19,108  —  19,108 
Total current liabilities 305,544  (3,154) 302,390 
Deferred revenue, net of current portion 35,350  4,721 
a, b
 40,071 
Operating lease liabilities 9,067  —  9,067 
Other long-term liabilities 13,150  —  13,150 
Total liabilities 363,111  1,567  364,678 
Commitments and contingencies
Stockholders' deficit
Preferred stock, 20,000 shares authorized; no shares issued and outstanding
 —  —  — 
Common stock, $0.01 par value; 225,000 shares authorized; 5,307 and 4,792 shares issued and outstanding
 53  —  53 
Additional paid-in capital 740,521  —  740,521 
Accumulated deficit (933,160) (1,567)
a, b
 (934,727)
Accumulated other comprehensive loss (2,469) —  (2,469)
Total stockholders’ deficit (195,055) (1,567) (196,622)
Total liabilities and stockholders’ deficit $ 168,056  —  $ 168,056 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share amounts, unaudited)

FY 2025
Three Months Ended December 31
Nine Months Ended December 31
As previously report Adjustments Reference As restated As previously report Adjustments Reference As restated
Revenue:
   Product $ 38,610  $ 24 
b
 $ 38,634  $ 116,389  $ 4,176 
b
 $ 120,565 
   Service and subscription 31,615  (3,891)
a, b
 27,724  90,383  (5,743)
a, b
 84,640 
   Royalty 2,326  —  2,326  7,592  —  7,592 
      Total revenue 72,551  (3,867) 68,684  214,364  (1,567) 212,797 
Cost of revenue:
   Product 30,922  —  30,922  93,251  —  93,251 
   Service and subscription 9,874  —  9,874  33,954  —  33,954 
      Total cost of revenue 40,796  —  40,796  127,205  —  127,205 
Gross profit 31,755  (3,867) 27,888  87,159  (1,567) 85,592 
Operating expenses:
Sales and marketing 12,448  —  12,448  39,321  —  39,321 
General and administrative 14,142  —  14,142  49,186  —  49,186 
Research and development 7,683  —  7,683  24,255  —  24,255 
Restructuring charges 1,342  —  1,342  2,916  —  2,916 
      Total operating expenses 35,615  —  35,615  115,678  —  115,678 
Loss from operations (3,860) (3,867) (7,727) (28,519) (1,567) (30,086)
Other income (expense), net 967  —  967  (408) —  (408)
Interest expense (6,840) —  (6,840) (16,761) —  (16,761)
Change in fair value of warrant liabilities (61,630) —  (61,630) (56,414) —  (56,414)
Loss on debt extinguishment —  —  —  (3,003) —  (3,003)
      Net loss before income taxes (71,363) (3,867) (75,230) (105,105) (1,567) (106,672)
Income tax provision 70  —  70  675  —  675 
Net loss $ (71,433) $ (3,867) $ (75,300) $ (105,780) $ (1,567) $ (107,347)
Net loss per share - basic and diluted
 $ (14.56) $ (0.79) $ (15.35) $ (21.90) $ (0.32) $ (22.22)
Weighted average shares - basic and diluted
 4,907  —  4,907  4,831  —  4,831 
Net loss $ (71,433) $ (3,867) $ (75,300) $ (105,780) $ (1,567) $ (107,347)
Foreign currency translation adjustments, net (1,077) —  (1,077) (276) —  (276)
Total comprehensive loss $ (72,510) $ (3,867) $ (76,377) $ (106,056) $ (1,567) $ (107,623)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Nine Months Ended December 31, 2024
As previously reported Restatement adjustments Reference
As restated
Operating activities
Net loss $ (105,780) $ (1,567) $ (107,347)
  Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization 4,440  —  4,440 
Amortization of debt issuance costs 3,704  —  3,704 
Non-cash lease expense
 1,342  —  1,342 
Loss on debt extinguishment 3,003  —  3,003 
Provision for product and service inventories 1,165  —  1,165 
Stock-based compensation 2,376  —  2,376 
Paid in kind interest 3,515  —  3,515 
Change in fair value of warrant liabilities 56,408  —  56,408 
Other non-cash (281) —  (281)
Changes in assets and liabilities: —  — 
Accounts receivable, net 6,337  —  6,337 
Manufacturing inventories (2,347) —  (2,347)
Service parts inventories 7,972  —  7,972 
Prepaid expenses (382) —  (382)
Operating lease liabilities
 (813) —  (813)
Accounts payable 9,406  —  9,406 
Accrued compensation (6,512) —  (6,512)
Deferred revenue (11,421) 1,567 
a, b
 (9,854)
Other current assets 1,243  —  1,243 
Other current liabilities 6,280  —  6,280 
Net cash used in operating activities (20,345) —  (20,345)
Investing activities
Purchases of property and equipment (4,324) —  (4,324)
Net cash used in investing activities (4,324) —  (4,324)
Financing activities
Borrowings of long-term debt, net of debt issuance costs 25,000  —  25,000 
Repayments of long-term debt (14,092) —  (14,092)
Borrowings of credit facility 311,135  —  311,135 
Repayments of credit facility (302,628) —  (302,628)
Net cash provided by financing activities 19,415  —  19,415 
Effect of exchange rate changes on cash, cash equivalents and restricted cash (3) —  (3)
Net change in cash, cash equivalents and restricted cash (5,257) —  (5,257)
Cash, cash equivalents, and restricted cash at beginning of period 25,860  —  25,860 
Cash, cash equivalents, and restricted cash at end of period $ 20,603  $ —  $ 20,603 
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Cash and cash equivalents 20,381  —  20,381 
Restricted cash, current 222  —  222 
Cash, cash equivalents and restricted cash at the end of period
 $ 20,603  $ —  $ 20,603 
Supplemental disclosure of cash flow information
      Cash paid for interest $ 8,841  $ —  $ 8,841 
      Cash paid for income taxes, net $ 1,798  $ —  $ 1,798 
   Non-cash transactions
     Purchases of property and equipment included in accounts payable $ 88  $ —  $ 88 
     Right-of-use assets obtained in exchange for new lease liabilities
 $ 538  $ —  $ 538 
     Paid-in-kind interest $ 3,515  $ —  $ 3,515 
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
(in thousands, unaudited)

Common Stock Additional
Paid-in Capital		 Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders' Deficit
Three Months Ended Shares Amount
Balance, September 30, 2024, As Revised
 4,792  $ 48  $ 709,667  $ (859,427) $ (1,392) $ (151,104)
Net loss —  —  —  (75,300) —  (75,300)
Foreign currency translation adjustments, net —  —  —  —  (1,077) (1,077)
Shares issued under employee incentive plans, net 109  1  (1) —  —  — 
Warrants exercised related to long-term debt
 406  4  30,119  —  —  30,123 
Stock-based compensation —  —  736  —  —  736 
Balance, December 31, 2024, As Restated
 5,307  $ 53  $ 740,521  $ (934,727) $ (2,469) $ (196,622)

Common Stock Additional
Paid-in Capital		 Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders' Deficit
Nine Months Ended Shares Amount
Balance, March 31, 2024 4,792  $ 48  $ 708,027  $ (827,380) $ (2,193) $ (121,498)
Net loss —  —  —  (107,347) —  (107,347)
Foreign currency translation adjustments, net —  —  —  —  (276) (276)
Shares issued under employee incentive plans, net 109  1  (1) —  —  — 
Warrants exercised related to long-term debt
 406  4  30,119  —  —  30,123 
Stock-based compensation —  —  2,376  —  —  2,376 
Balance, December 31, 2024 As Restated
 5,307  $ 53  $ 740,521  $ (934,727) $ (2,469) $ (196,622)