Annual report pursuant to Section 13 and 15(d)

Restatement of Consolidated Financial Statements

Restatement of Consolidated Financial Statements

12 Months Ended

Mar. 31, 2023

Restatement of Consolidated Financial Statements

Restatement of Consolidated Financial Statements

16. Restatement of Consolidated Financial Statements

As previously disclosed in the Current Report on Form 8-K filed by the Company on September 22, 2023 with the SEC, the Company’s previously issued financial statements included in its Annual Reports on Form 10-K for the fiscal year ended March 31, 2022, and each of the interim financial statements for the quarterly periods in 2023, 2022, and 2021 included in its Quarterly Reports on Form 10-Q (collectively, the “Restated Periods”), should no longer be relied upon and a restatement is required for these previously issued consolidated financial statements.

In accordance with ASC Topic 250, Accounting Changes and Error Corrections, the Company has restated herein the unaudited financial information for the quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022.

The categories of misstatements and their impact on the Company’s previously issued consolidated financial statements are described in more detail below.

Restatement of Previously Issued Consolidated Financial Statements

In connection with the restatement, the Company restated the consolidated financial statements as of and for the years ended March 31, 2022 and March 31, 2021, as well as the relevant unaudited quarterly financial information for the quarterly periods ended June 30, 2021, September 30, 2021, December 31, 2021, June 30, 2020, September 30, 2020, and December 31, 2020 in its 2022 Annual Report, as amended, on Form 10-K/A, filed with the SEC on June 12, 2024.

Description of Misstatements

The following includes descriptions of the significant adjustments to the Company’s financial position and results of operations from previously reported consolidated financial statements.

Revenue Recognition of Bill-and-Hold Arrangements (“Bill and Hold”) The Company previously recognized revenue related to the sale of products, parts, and accessories at the point of shipment. In certain circumstances, the Company recognized revenue when the order is shipped to an in-transit warehouse where it is held until it is shipped to the customer. Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), revenue recognized under bill-and-hold arrangements is required to meet specific criteria including: (i) the reason for the bill-and-hold arrangement is substantive, (ii) the product is segregated from the Company’s other inventory items held for sale, (iii) the product is ready for shipment to the customer, and (iv) the Company does not have the ability to use the product or direct it to another customer. As the Company’s previous revenue recognition policy did not correctly apply the required criteria to recognize revenue related to bill-and-hold arrangements, the Company concluded certain revenue related to bill-and-hold arrangements was prematurely recognized. The Company has since revised the revenue recognition policy, and related internal controls, to properly consider the required bill-and-hold criteria.

Some of previously recognized revenue that did not meet the bill-and-hold criteria, related to products, parts, and accessories that were subsequently returned to the Company. In the third quarter of fiscal year 2023, the Company began recording a sales return allowance for returned systems. Under the revised revenue recognition policy, the sales return allowance is no longer required.

To correct this error, (i) the revenue and cost of goods sold were reversed in the period in which the accounting errors took place, (ii) the revenue and cost of goods sold was recognized in subsequent periods when all of the revenue recognition criteria had been met, and (iii) the bad debt expense relating to prematurely recognized revenue was reversed in the periods prior to achieving the revenue recognition criteria and recognized in subsequent periods consistent with the Company’s policy, and (iv) the sales return allowance was reversed in the period in which it was originally recorded. Additionally, the related adjustments to accounts receivable, inventory, accrued expenses, and deferred revenue were made in the consolidated financial statements for the relevant Restated Periods.

In correcting for the bill-and-hold error, sales were identified where revenue was prematurely recognized, and the Company had entered into a subsequent agreement to lease the system from the customer to re-rent the system to others as part of the Company’s rental fleet (“Re-rent Agreement”). The Re-rent Agreements were recorded as finance leases under ASC 842, Leases. The related lease payments to the customer were recorded as a reduction to the customer’s outstanding accounts receivable balance from the initial recognition of the sale and no cash was exchanged. As the initial sale of the system to the customer did not satisfy the requirements for revenue recognition and the Re-rent Agreement lacked economic substance, the Company concluded the Re-rent Agreements were improperly accounted for as finance leases. Additionally, resulting from mandatory buyout clauses contained in certain Re-rent Agreements, the amounts owed to the customer as stated in the Re-rent Agreement exceeded the accounts receivable associated with the prematurely recognized sale. The Company concluded this payment reflected consideration payable to a customer under ASC 606.

To correct this error (i) the finance lease right-of-use asset and lease liability were removed and the related system was recognized as a rental asset in the period the Re-rent Agreements were executed, (ii) the finance lease costs, including interest expense, and right-of-use asset amortization were reversed in the period the Re-rent Agreements were executed and subsequent periods, and (iii) consideration payable to a customer was recognized in the period the Re-rent Agreements were executed.

Recognition of Costs Associated with Factory Protection Plan Contracts (“FPP Contracts”) The Company offers a comprehensive factory protection plan to microturbine system customers guaranteeing service in the form of labor and spare parts to maintain product performance. For a fixed fee, the customer can purchase a FPP for either spare parts only or spare parts and labor reimbursement. The Company previously recognized the FPP revenue on a straight-line basis

for the term of the contract, typically 5, 10, 15, or 20 years, and recorded the costs when the replacement parts shipped and when the labor reimbursement request was received. In addition, FPP revenues and costs were presented on a gross basis in the Consolidated Statements of Operations.

As part of the restatement efforts, the Company reviewed the previous accounting conclusions related to FPP recognition, including a separate analysis of the spare parts and labor reimbursement offerings and the general terms of the contract. For FPP Contract revenue, under both the spare parts and labor reimbursement offerings, the Company concluded revenue was properly recognized. As it relates to the accounting for spare parts (“FPP Parts”), the Company concluded the timing of cost recognition was delayed and the cost should be recognized when the customer orders the spare parts. As it relates to the accounting for labor reimbursement (“FPP Labor”), the income, based on the respective standalone selling price, and related costs should be presented on a net basis in the Consolidated Statements of Operations. In addition, the Company concluded the FPP Contract term is 30 days, as the customer has the right to cancel with a 30-day notice. The Company has since revised its policy, and related internal controls, to properly consider the recognize FPP Contracts.

To correct this error, as it relates to FPP Parts, the cost of goods sold was recognized at the time the spare parts order was received and a liability was recognized for any orders that had not been shipped to the customers in the period the accounting error took place. As it relates to FPP Labor, the labor reimbursement cost was reversed out of cost of goods sold and reclassified to revenue, net. The Company also revised the FPP contract disclosure included in Note 2 – Summary of Significant Accounting Policies to reflect the revised classification of the contract term. The Company also corrected for revenue improperly recognized relating to a cancelled FPP contract.

Note Classification As a result of the restated earnings, the Company was in breach of its Consolidated Adjusted EBITDA Financial Covenant to the Note Purchase Agreement dated as of December 9, 2019, and later amended for the quarter ended June 30, 2021. The breach required a reclassification of the term note payable to a current liability on the Consolidated Balance Sheets as of June 30, 2022 and September 30, 2022. For further discussion on the Company’s ability to continue as a going concern see Note 3 – Summary of Significant Accounting Policies.

Reclassifications Certain reclassifications have been made to the Company’s previously issued Consolidated Statements of Operations to enhance comparability with the current year’s financial statements. As a result, certain amounts relating to revenues and cost of goods sold for the sale of parts, previously reflected in Product, accessories and parts have been reclassified to Parts and service. These reclassifications had no impact on previously reported net income, cash flows, or shareholders’ equity.

Reclassifications Certain reclassifications have been made to the Company’s previously issued Consolidated Balance Sheets to enhance comparability with the current year’s financial statements. As a result, certain amounts relating to finance and operating leases have been reclassified, as noted below.

•

Finance and operating lease right-of-use assets, previously presented in Property, plant, equipment and rental assets, net and Other assets, respectively, have been reclassified to Finance lease right-of-use assets and Operating lease right-of-use assets, respectively.

•

Current finance and operating lease liabilities, both previously presented in Current portion of notes payable and lease obligations, have been reclassified to Finance lease liability, current and Operating lease liability, current, respectively.

•

Long-term finance and operating lease liabilities, both previously presented in Long-term portion of notes payable and lease obligations, have been reclassified to Finance lease liability, non-current and Operating lease liability, non-current, respectively.

Description of Quarterly Restatement Tables

The following tables present the impact of the restatement on the previously reported Consolidated Balance Sheets, Consolidated Statements of Operations, and Statements of Cash Flows for quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022. Changes to the Consolidated Statements of Stockholders’ Equity (Deficiency) for the quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022 as a result of the restatement are due to the changes in net income. The values as previously reported for the quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022 were derived from our Quarterly Reports on Form 10-Q filed on August 11, 2022, November 14, 2022, and February 14, 2023, respectively.


	As of June 30, 2022
							FPP		Note
(in thousands)	As Reported		Reclassifications		Bill and Hold		Contracts		Classification		As Restated
Assets
Current Assets:
Cash and cash equivalents	$	16,914	$	—	$	—	$	—	$	—	$	16,914
Accounts receivable, net of allowances		24,168		—		(9,871)		(18)		—		14,279
Inventories, net		18,608		—		9,255		—		—		27,863
Prepaid expenses and other current assets		6,468		—		—		—		—		6,468
Total current assets		66,158		—		(616)		(18)		—		65,524
Property, plant, equipment and rental assets, net		21,694		(2,560)		1,484		—		—		20,618
Finance lease right-of-use assets		—		2,560		(1,886)		—		—		674
Operating lease right-of-use assets		—		6,321		—		—		—		6,321
Non-current portion of accounts receivable		1,056		—		(1,056)		—		—		—
Non-current portion of inventories		2,013		—		—		—		—		2,013
Other assets		8,933		(6,321)		—		—		—		2,612
Total assets	$	99,854	$	—	$	(2,074)	$	(18)	$	—	$	97,762
Liabilities and Stockholders’ (Deficiency) Equity
Current Liabilities:
Accounts payable and accrued expenses	$	22,238	$	—	$	—	$	—	$	—	$	22,238
Accrued salaries and wages		1,360		—		—		—		—		1,360
Accrued warranty reserve		1,527		—		—		—		—		1,527
Deferred revenue		9,694		—		3,988		—		—		13,682
Current portion of notes payable and lease obligations		1,930		(1,409)		—		—		—		521
Finance lease liability, current		—		645		(454)		—		—		191
Operating lease liability, current		—		764		—		—		—		764
Factory protection plan liability		—		—		—		10,727		—		10,727
Term note payable		—		—		—		—		50,957		50,957
Total current liabilities		36,749		—		3,534		10,727		50,957		101,967
Deferred revenue, non-current		934		—		—		—		—		934
Long-term portion of notes payable and lease obligations		7,627		(7,627)		—		—		—		—
Finance lease liability, non-current		—		1,853		(1,376)		—		—		477
Operating lease liability, non-current		—		5,774		—		—		—		5,774
Term note payable, non-current		50,957		—		—		—		(50,957)		—
Other long-term liabilities		—		—		265		—		—		265
Total liabilities		96,267		—		2,423		10,727		—		109,417
Stockholders’ (Deficiency) Equity:
Common stock		15		—		—		—		—		15
Additional paid-in capital		947,237		—		—		—		—		947,237
Accumulated deficit		(941,541)		—		(4,497)		(10,745)		—		(956,783)
Treasury stock		(2,124)		—		—		—		—		(2,124)
Total stockholders’ (deficiency) equity		3,587		—		(4,497)		(10,745)		—		(11,655)
Total liabilities and stockholders' (deficiency) equity	$	99,854	$	—	$	(2,074)	$	(18)	$	—	$	97,762


	As of September 30, 2022
							FPP		Note
(in thousands)	As Reported		Reclassifications		Bill and Hold		Contracts		Classification		As Restated
Assets
Current Assets:
Cash and cash equivalents	$	23,780	$	—	$	—	$	—	$	—	$	23,780
Accounts receivable, net of allowances		18,189		—		(4,540)		(74)		—		13,575
Inventories, net		21,801		—		10,293		—		—		32,094
Prepaid expenses and other current assets		7,039		—		—		—		—		7,039
Total current assets		70,809		—		5,753		(74)		—		76,488
Property, plant, equipment and rental assets, net		25,375		(6,888)		1,607		—		—		20,094
Finance lease right-of-use assets		—		6,888		(2,080)		—		—		4,808
Operating lease right-of-use assets		—		9,075		—		—		—		9,075
Non-current portion of accounts receivable		1,109		—		(1,109)		—		—		—
Non-current portion of inventories		2,277		—		—		—		—		2,277
Other assets		11,735		(9,075)		—		—		—		2,660
Total assets	$	111,305	$	—	$	4,171	$	(74)	$	—	$	115,402
Liabilities and Stockholders’ (Deficiency) Equity
Current Liabilities:
Accounts payable and accrued expenses	$	24,344	$	—	$	—	$	—	$	—	$	24,344
Accrued salaries and wages		1,123		—		—		—		—		1,123
Accrued warranty reserve		1,662		—		—		—		—		1,662
Deferred revenue		10,686		—		9,581		—		—		20,267
Current portion of notes payable and lease obligations		3,215		(2,955)		—		—		—		260
Finance lease liability, current		—		1,262		(496)		—		—		766
Operating lease liability, current		—		1,693		—		—		—		1,693
Factory protection plan liability		—		—		—		10,192		—		10,192
Term note payable		—		—		—		—		50,966		50,966
Total current liabilities		41,030		—		9,085		10,192		50,966		111,273
Deferred revenue, non-current		915		—		—		—		—		915
Long-term portion of notes payable and lease obligations		12,321		(12,321)		—		—		—		—
Finance lease liability, non-current		—		4,749		(1,468)		—		—		3,281
Operating lease liability, non-current		—		7,572		—		—		—		7,572
Term note payable, non-current		50,966		—		—		—		(50,966)		—
Other long-term liabilities		—		—		265		—		—		265
Total liabilities		105,232		—		7,882		10,192		—		123,306
Stockholders’ (Deficiency) Equity:
Common stock		18		—		—		—		—		18
Additional paid-in capital		954,750		—		—		—		—		954,750
Accumulated deficit		(946,556)		—		(3,711)		(10,266)		—		(960,533)
Treasury stock		(2,139)		—		—		—		—		(2,139)
Total stockholders’ (deficiency) equity		6,073		—		(3,711)		(10,266)		—		(7,904)
Total liabilities and stockholders' (deficiency) equity	$	111,305	$	—	$	4,171	$	(74)	$	—	$	115,402


	As of December 31, 2022
							FPP
(in thousands)	As Reported		Reclassifications		Bill and Hold		Contracts		As Restated
Assets
Current Assets:
Cash and cash equivalents	$	16,618	$	—	$	—	$	—	$	16,618
Accounts receivable, net of allowances		15,119		—		(3,579)		(129)		11,411
Inventories, net		25,602		—		8,267		—		33,869
Prepaid expenses and other current assets		7,125		—		—		—		7,125
Total current assets		64,464		—		4,688		(129)		69,023
Property, plant, equipment and rental assets, net		25,906		(6,694)		1,565		—		20,777
Finance lease right-of-use assets		—		6,694		(2,025)		—		4,669
Operating lease right-of-use assets		—		8,702		—		—		8,702
Non-current portion of accounts receivable		107		—		(107)		—		—
Non-current portion of inventories		3,055		—		—		—		3,055
Other assets		11,334		(8,702)		—		—		2,632
Total assets	$	104,866	$	—	$	4,121	$	(129)	$	108,858
Liabilities and Stockholders’ (Deficiency) Equity
Current Liabilities:
Accounts payable and accrued expenses	$	26,087	$	—	$	(284)	$	—	$	25,803
Accrued salaries and wages		1,421		—		—		—		1,421
Accrued warranty reserve		1,540		—		—		—		1,540
Deferred revenue		9,699		—		7,772		—		17,471
Current portion of notes payable and lease obligations		2,201		(2,201)		—		—		—
Finance lease liability, current		—		908		(118)		—		790
Operating lease liability, current		—		1,293		—		—		1,293
Factory protection plan liability		—		—		—		11,848		11,848
Term note payable		50,974		—		—		—		50,974
Total current liabilities		91,922		—		7,370		11,848		111,140
Deferred revenue, non-current		817		—		—		—		817
Long-term portion of notes payable and lease obligations		11,036		(11,036)		—		—		—
Finance lease liability, non-current		—		3,464		(392)		—		3,072
Operating lease liability, non-current		—		7,572		—		—		7,572
Term note payable, non-current										—
Other long-term liabilities		—		—		265		—		265
Total liabilities		103,775		—		7,243		11,848		122,866
Stockholders’ (Deficiency) Equity:
Common stock		18		—		—		—		18
Additional paid-in capital		954,982		—		—		—		954,982
Accumulated deficit		(951,770)		—		(3,122)		(11,977)		(966,869)
Treasury stock		(2,139)		—		—		—		(2,139)
Total stockholders’ (deficiency) equity		1,091		—		(3,122)		(11,977)		(14,008)
Total liabilities and stockholders' (deficiency) equity	$	104,866	$	—	$	4,121	$	(129)	$	108,858


	Three Months Ended June 30, 2022
					FPP
(in thousands)	As Reported		Bill and Hold		Contracts		As Restated
Revenue, net:
Product and accessories	$	9,167	$	367	$	—	$	9,534
Parts, service and rentals		9,485		(70)		(184)		9,231
Total revenue, net		18,652		297		(184)		18,765
Cost of goods sold:
Product and accessories		8,891		878		—		9,769
Parts, service and rentals		5,055		36		1,391		6,482
Total cost of goods sold		13,946		914		1,391		16,251
Gross profit		4,706		(617)		(1,575)		2,514
Operating expenses:
Research and development		490		—		—		490
Selling, general and administrative		4,919		—		—		4,919
Total operating expenses		5,409		—		—		5,409
Loss from operations		(703)		(617)		(1,575)		(2,895)
Other income (expense)		2		—		—		2
Interest income		6		—		—		6
Interest expense		(1,362)		51		—		(1,311)
Gain (loss) on debt extinguishment		—		—		—		—
Loss before provision for income taxes		(2,057)		(566)		(1,575)		(4,198)
Provision for income taxes		2		—		—		2
Net loss		(2,059)		(566)		(1,575)		(4,200)
Less: Deemed dividend on purchase warrant for common shares		—		—		—		—
Net loss attributable to common stockholders	$	(2,059)	$	(566)	$	(1,575)	$	(4,200)

Net loss per share—basic and diluted	$	(0.13)	$	(0.04)	$	(0.10)	$	(0.27)
Weighted average shares outstanding		15,318		15,318		15,318		15,318


	Three Months Ended September 30, 2022
					FPP
(in thousands)	As Reported		Bill and Hold		Contracts		As Restated
Revenue, net:
Product and accessories	$	10,603	$	(1,009)	$	—	$	9,594
Parts, service and rentals		10,172		529		(171)		10,530
Total revenue, net		20,775		(480)		(171)		20,124
Cost of goods sold:
Product and accessories		12,496		(1,452)		—		11,044
Parts, service and rentals		6,103		237		(650)		5,690
Total cost of goods sold		18,599		(1,215)		(650)		16,734
Gross profit		2,176		735		479		3,390
Operating expenses:
Research and development		603		—		—		603
Selling, general and administrative		5,107		—		—		5,107
Total operating expenses		5,710		—		—		5,710
Loss from operations		(3,534)		735		479		(2,320)
Other income (expense)		(50)		—		—		(50)
Interest income		26		—		—		26
Interest expense		(1,356)		51		—		(1,305)
Gain (loss) on debt extinguishment		—		—		—		—
Loss before provision for income taxes		(4,914)		786		479		(3,649)
Provision for income taxes		4		—		—		4
Net loss		(4,918)		786		479		(3,653)
Less: Deemed dividend on purchase warrant for common shares		97		—		—		97
Net loss attributable to common stockholders	$	(5,015)	$	786	$	479	$	(3,750)

Net loss per share—basic and diluted	$	(0.30)	$	0.05	$	0.03	$	(0.22)
Weighted average shares outstanding		16,785		16,785		16,785		16,785


	Six Months Ended September 30, 2022
					FPP
(in thousands)	As Reported		Bill and Hold		Contracts		As Restated
Revenue, net:
Product and accessories	$	19,770	$	(642)	$	—	$	19,128
Parts, service and rentals		19,657		459		(355)		19,761
Total revenue, net		39,427		(183)		(355)		38,889
Cost of goods sold:
Product and accessories		21,387		(574)		—		20,813
Parts, service and rentals		11,158		273		741		12,172
Total cost of goods sold		32,545		(301)		741		32,985
Gross profit		6,882		118		(1,096)		5,904
Operating expenses:
Research and development		1,093		—		—		1,093
Selling, general and administrative		10,026		—		—		10,026
Total operating expenses		11,119		—		—		11,119
Loss from operations		(4,237)		118		(1,096)		(5,215)
Other income (expense)		(48)		—		—		(48)
Interest income		32		—		—		32
Interest expense		(2,718)		102		—		(2,616)
Gain (loss) on debt extinguishment		—		—		—		—
Loss before provision for income taxes		(6,971)		220		(1,096)		(7,847)
Provision for income taxes		6		—		—		6
Net loss		(6,977)		220		(1,096)		(7,853)
Less: Deemed dividend on purchase warrant for common shares		97		—		—		97
Net loss attributable to common stockholders	$	(7,074)	$	220	$	(1,096)	$	(7,950)

Net loss per share—basic and diluted	$	(0.44)	$	0.01	$	(0.07)	$	(0.50)
Weighted average shares outstanding		16,056		16,056		16,056		16,056


	Three Months Ended December 31, 2022
					FPP
(in thousands)	As Reported		Bill and Hold		Contracts		As Restated
Revenue, net:
Product and accessories	$	10,003	$	1,424	$	—	$	11,427
Parts, service and rentals		9,603		172		(192)		9,583
Total revenue, net		19,606		1,596		(192)		21,010
Cost of goods sold:
Product and accessories		11,630		837		—		12,467
Parts, service and rentals		5,307		17		1,519		6,843
Total cost of goods sold		16,937		854		1,519		19,310
Gross profit		2,669		742		(1,711)		1,700
Operating expenses:
Research and development		633		—		—		633
Selling, general and administrative		5,397		200		—		5,597
Total operating expenses		6,030		200		—		6,230
Loss from operations		(3,361)		542		(1,711)		(4,530)
Other income (expense)		5		—		—		5
Interest income		42		—		—		42
Interest expense		(1,900)		47		—		(1,853)
Gain (loss) on debt extinguishment		—		—		—		—
Loss before provision for income taxes		(5,214)		589		(1,711)		(6,336)
Provision for income taxes		—		—		—		—
Net loss		(5,214)		589		(1,711)		(6,336)
Less: Deemed dividend on purchase warrant for common shares		—		—		—		—
Net loss attributable to common stockholders	$	(5,214)	$	589	$	(1,711)	$	(6,336)

Net loss per share—basic and diluted	$	(0.28)	$	0.03	$	(0.09)	$	(0.35)
Weighted average shares outstanding		18,351		18,351		18,351		18,351


	Nine Months Ended December 31, 2022
					FPP
(in thousands)	As Reported		Bill and Hold		Contracts		As Restated
Revenue, net:
Product and accessories	$	29,773	$	782	$	—	$	30,555
Parts, service and rentals		29,260		631		(547)		29,344
Total revenue, net		59,033		1,413		(547)		59,899
Cost of goods sold:
Product and accessories		33,017		263		—		33,280
Parts, service and rentals		16,465		290		2,260		19,015
Total cost of goods sold		49,482		553		2,260		52,295
Gross profit		9,551		860		(2,807)		7,604
Operating expenses:
Research and development		1,726		—		—		1,726
Selling, general and administrative		15,423		200		—		15,623
Total operating expenses		17,149		200		—		17,349
Loss from operations		(7,598)		660		(2,807)		(9,745)
Other income (expense)		(43)		—		—		(43)
Interest income		74		—		—		74
Interest expense		(4,618)		149		—		(4,469)
Gain (loss) on debt extinguishment		—		—		—		—
Loss before provision for income taxes		(12,185)		809		(2,807)		(14,183)
Provision for income taxes		6		—		—		6
Net loss		(12,191)		809		(2,807)		(14,189)
Less: Deemed dividend on purchase warrant for common shares		97		—		—		97
Net loss attributable to common stockholders	$	(12,288)	$	809	$	(2,807)	$	(14,286)

Net loss per share—basic and diluted	$	(0.73)	$	0.05	$	(0.17)	$	(0.85)
Weighted average shares outstanding		16,824		16,824		16,824		16,824


	Three Months Ended June 30, 2022
							FPP
(in thousands)	As Reported		Reclassifications		Bill and Hold		Contracts		As Restated
Cash Flows from Operating Activities:
Net loss	$	(2,059)	$	—	$	(566)	$	(1,575)	$	(4,200)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		661		—		(10)		—		651
Amortization of financing costs and discounts		43		—		—		—		43
Amortization of right-of-use assets		151		—		—		—		151
Inventory provision		270		—		—		—		270
Provision for warranty expenses		174		—		—		—		174
Stock-based compensation		232		—		—		—		232
Changes in operating assets and liabilities:
Accounts receivable		653		—		926		18		1,597
Inventories		(746)		—		924		—		178
Prepaid expenses, other current assets and other assets		(253)		—		—		—		(253)
Accounts payable and accrued expenses		(3,112)		179		265		—		(2,668)
Operating lease liability		—		(179)		—		—		(179)
Accrued salaries and wages and long-term liabilities		212		—		—		—		212
Accrued warranty reserve		(130)		—		—		—		(130)
Deferred revenue		462		—		(1,662)		—		(1,200)
Factory protection plan liability		—		—		—		1,557		1,557
Net cash used in operating activities		(3,442)		—		(123)		—		(3,565)
Cash Flows from Investing Activities:
Expenditures for property, plant, equipment and rental assets		(1,887)		—		—		—		(1,887)
Net cash used in investing activities		(1,887)		—		—		—		(1,887)
Cash Flows from Financing Activities:
Repayment of notes payable and lease obligations		(316)		—		123		—		(193)
Cash used in employee stock-based transactions		(36)		—		—		—		(36)
Net proceeds from issuance of common stock and warrants		36		—		—		—		36
Net cash used in financing activities		(316)		—		123		—		(193)
Net increase (decrease) increase in Cash and Cash Equivalents		(5,645)		—		—		—		(5,645)
Cash and Cash Equivalents, Beginning of Period		22,559		—		—		—		22,559
Cash and Cash Equivalents, End of Period	$	16,914	$	—	$	—	$	—	$	16,914


	Six Months Ended September 30, 2022
							FPP
(in thousands)	As Reported		Reclassifications		Bill and Hold		Contracts		As Restated
Cash Flows from Operating Activities:
Net loss	$	(6,977)	$	—	$	220	$	(1,096)	$	(7,853)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,493		—		(23)		—		1,470
Amortization of financing costs and discounts		51		—		—		—		51
Amortization of right-of-use assets		475		—		—		—		475
Bad debt expense (recovery)		75		—		—		—		75
Inventory provision		420		—		—		—		420
Provision for warranty expenses		364		—		—		—		364
(Gain) loss on disposal of equipment		279		—		—		—		279
Stock-based compensation		386		—		—		—		386
Changes in operating assets and liabilities:
Accounts receivable		6,504		—		(4,502)		74		2,076
Inventories		(4,353)		—		(278)		—		(4,631)
Prepaid expenses, other current assets and other assets		(874)		—		—		—		(874)
Accounts payable and accrued expenses		(1,667)		531		265		—		(871)
Operating lease liability		—		(531)		—		—		(531)
Accrued salaries and wages and long-term liabilities		(23)		—		—		—		(23)
Accrued warranty reserve		(185)		—		—		—		(185)
Deferred revenue		1,435		—		3,931		—		5,366
Factory protection plan liability		—		—		—		1,022		1,022
Net cash used in operating activities		(2,597)		—		(387)		—		(2,984)
Cash Flows from Investing Activities:
Expenditures for property, plant, equipment and rental assets		(2,564)		—		—		—		(2,564)
Net cash used in investing activities		(2,564)		—		—		—		(2,564)
Cash Flows from Financing Activities:
Repayment of notes payable and lease obligations		(868)		—		387		—		(481)
Cash used in employee stock-based transactions		(52)		—		—		—		(52)
Net proceeds from issuance of common stock and warrants		7,302		—		—		—		7,302
Net cash provided by financing activities		6,382		—		387		—		6,769
Net increase (decrease) increase in Cash and Cash Equivalents		1,221		—		—		—		1,221
Cash and Cash Equivalents, Beginning of Period		22,559		—		—		—		22,559
Cash and Cash Equivalents, End of Period	$	23,780	$	—	$	—	$	—	$	23,780


	Nine Months Ended December 31, 2022
							FPP
(in thousands)	As Reported		Reclassifications		Bill and Hold		Contracts		As Restated
Cash Flows from Operating Activities:
Net loss	$	(12,191)	$	—	$	809	$	(2,807)	$	(14,189)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,345		—		(36)		—		2,309
Amortization of financing costs and discounts		60		—		—		—		60
Amortization of right-of-use assets		848		—		—		—		848
Bad debt expense (recovery)		237		—		200		—		437
Inventory provision		771		—		—		—		771
Provision for warranty expenses		369		—		—		—		369
Provision for sales returns, net		81		—		(81)		—		—
Stock-based compensation		617		—		—		—		617
Changes in operating assets and liabilities:
Accounts receivable		9,077		—		(5,481)		129		3,725
Inventories		(9,080)		—		1,545		—		(7,535)
Prepaid expenses, other current assets and other assets		(933)		—		—		—		(933)
Accounts payable and accrued expenses		(276)		931		265		—		920
Operating lease liability		—		(931)		—		—		(931)
Accrued salaries and wages and long-term liabilities		274		—		—		—		274
Accrued warranty reserve		(312)		—		—		—		(312)
Deferred revenue		350		—		2,122		—		2,472
Factory protection plan liability		—		—		—		2,678		2,678
Net cash used in operating activities		(7,763)		—		(657)		—		(8,420)
Cash Flows from Investing Activities:
Expenditures for property, plant, equipment and rental assets		(3,999)		—		—		—		(3,999)
Net cash used in investing activities		(3,999)		—		—		—		(3,999)
Cash Flows from Financing Activities:
Repayment of notes payable and lease obligations		(1,429)		—		657		—		(772)
Cash used in employee stock-based transactions		(52)		—		—		—		(52)
Net proceeds from issuance of common stock and warrants		7,302		—		—		—		7,302
Net cash provided by financing activities		5,821		—		657		—		6,478
Net increase (decrease) increase in Cash and Cash Equivalents		(5,941)		—		—		—		(5,941)
Cash and Cash Equivalents, Beginning of Period		22,559		—		—		—		22,559
Cash and Cash Equivalents, End of Period	$	16,618	$	—	$	—	$	—	$	16,618