Restatement of Previously Issued Financial Statements (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of Restatement Items to Prior Period Financial Statements

The following tables present the effect of the Restatement Items on the Company’s consolidated balance sheets for the periods indicated (in millions, except per share):

		Reported				Adjustments				As Restated				References
		As of June 30, 2023 (unaudited)
		As Previously				Restatement								Restatement
		Reported				Adjustments				As Restated				References
Assets
Cash		$	42.1			$	-			$	42.1
Accounts receivable, net			39.1				(0.1	)			39.0			f
Inventory, net			48.0				(1.1	)			46.9			c, f
Prepaid expenses and other current assets			32.6				1.0				33.6			f
Total current assets			161.8				(0.2	)			161.6

Property and equipment, net			48.2				(0.3	)			47.9			b
Software development costs, net			39.2				(17.6	)			21.6			a
Other acquired intangible assets subject to amortization, net			14.7				(0.6	)			14.1			d, f
Goodwill			78.0				(19.3	)			58.7			d
Operating lease right of use asset			7.7				7.5				15.2			e, f
Costs of obtaining and fulfilling customer contracts			-				8.4				8.4			a,b
Other assets			3.9				0.2				4.1			f
Total assets		$	353.5			$	(21.9	)		$	331.6

Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued expenses		$	47.5				0.8				48.3			f
Corporate tax and other current taxes payable			12.1				-				12.1
Deferred revenue, current			31.1				(0.3	)			30.8			b
Operating lease liabilities			2.9				1.2				4.1			e
Other current liabilities			3.8				-				3.8
Total current liabilities			97.4				1.7				99.1

Long-term debt			294.0				-				294.0
Finance lease liabilities, net of current portion			1.9				-				1.9
Deferred revenue, net of current portion			2.8				(0.9	)			1.9			b
Operating lease liabilities			5.3				6.1				11.4			e
Other long-term liabilities			2.4				1.3				3.7			g
Total liabilities		$	403.8			$	8.2			$	412.0

Commitments and contingencies			-				-				-

Stockholders’ deficit
Preferred stock; $0.0001 par value; 1,000,000 shares authorized			-				-				-
Common stock; $0.0001 par value; 49,000,000 shares authorized; 25,909,516 shares and 26,433,562 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively			-				-				-
Additional paid in capital			384.1				-				384.1
Accumulated other comprehensive income			45.1				0.9				46.0
Accumulated deficit			(479.5	)			(31.0	)			(510.5	)
Total stockholders’ deficit			(50.3	)			(30.1	)			(80.4	)
Total liabilities and stockholders’ deficit		$	353.5			$	(21.9	)		$	331.6

The following tables present the effect of the Restatement Items on the Company’s consolidated statement of operations for the periods indicated (in millions, except share and per share amounts):

		Reported				Adjustments				As Restated				References
		For Six Months Ended June 30, 2023 (unaudited)
		As Previously				Restatement								Restatement
		Reported				Adjustments				As Restated				References
Revenue:
Service		$	126.4			$	(1.4	)		$	125.0			b, f
Product Sales			20.0				(0.7	)			19.3			b
Total Revenue			146.4				(2.1	)			144.3

Cost of Sales
Cost of service			(24.3	)			(11.2	)			(35.5	)		b, f
Cost of product sales			(15.6	)			0.5				(15.1	)		b, c
Selling, general and administrative expenses			(68.7	)			12.9				(55.8	)		a, f
Acquisition and integration related transaction expenses			-				-				-
Depreciation and amortization			(19.3	)			(0.2	)			(19.5	)		a, b, d
Net operating income (loss)			18.5				(0.1	)			18.4
							-
Other expense
Interest expense, net			(13.6	)			-				(13.6	)
Gain on disposal of business			-				-				-
Other finance income (expense)			0.2				-				0.2

Total other expense, net			(13.4	)			-				(13.4	)
							-
Net income before income taxes			5.1				(0.1	)			5.0
Income tax (expense) benefit			(1.2	)			0.4				(0.8	)
Net income			3.9				0.3				4.2

Other comprehensive income (loss)							-
Foreign currency translation gain (loss)			(3.3	)			(2.3	)			(5.6	)
Reclassification of loss on hedging instrument to comp inc			0.3				-				0.3
Actuarial gains (losses) on pension plan			1.7				(1.2	)			0.5			g
Other comprehensive income (loss)			(1.3	)			(3.5	)			(4.8	)

Comprehensive income (loss)		$	2.6			$	(3.2	)		$	(0.6	)

Net income (loss) per common share - basic		$	0.15			$	-			$	0.15
Net income (loss) per common share - diluted		$	0.13			$	0.01			$	0.14

Weighted average number of shares outstanding during the year - basic			26,211,589				1,869,452				28,081,041			i
Weighted average number of shares outstanding during the year - diluted			28,992,987				30,301				29,023,288
Supplemental disclosure of stock-based compensation expense
Stock-based compensation included in:
Selling, general, and administrative expenses			(6.1	)							(6.1	)

		Reported				Adjustments				As Restated				References
		For Three Months Ended June 30, 2023 (unaudited)
		As Previously				Restatement								Restatement
		Reported				Adjustments				As Restated				References
Revenue:
Service		$	68.1			$	(0.6	)		$	67.5			b
Product Sales			12.3				(0.4	)			11.9			b
Total Revenue			80.4				(1.0	)			79.4

Cost of Sales
Cost of Service			(13.4	)			(7.1	)			(20.5	)		b, f
Cost of Product sales			(9.8	)			1.4				(8.4	)		b, c
Selling, general and administrative expenses			(34.4	)			7.8				(26.6	)		a, f
Acquisition and integration related transaction expenses			-				-				-
Depreciation and amortization			(10.4	)			0.3				(10.1	)		a, b, d
Net operating income (loss)			12.4				1.4				13.8

Other expense
Interest expense, net			(7.3	)			-				(7.3	)
Other finance income (expense)			0.1				-				0.1

Total other expense, net			(7.2	)			-				(7.2	)

Net income before income taxes			5.2				1.4				6.6
Income tax (expense) benefit			(1.1	)			0.1				(1.0	)
Net income			4.1				1.5				5.6

Other comprehensive income (loss)
Foreign currency translation (loss) gain			(1.6	)			(1.1	)			(2.7	)
Reclassification of loss on hedging instrument to comprehensive income			0.1				-				0.1
Actuarial (losses) gains on pension plan			(0.3	)			0.6				0.3			g
Other comprehensive (loss)			(1.8	)			(0.5	)			(2.3	)

Comprehensive income		$	2.3			$	1.0			$	3.3

Net income per common share - basic		$	0.16			$	0.04			$	0.20
Net income per common share - diluted		$	0.14			$	0.05			$	0.19

Weighted average number of shares outstanding during the year - basic			26,267,215				1,919,510				28,186,725			h
Weighted average number of shares outstanding during the year - diluted			29,041,781				31,297				29,073,078
Supplemental disclosure of stock-based compensation expense
Stock-based compensation included in:
Selling, general, and administrative expenses		$	(3.1	)						$	(3.1	)

		Reported				Revision				Adjustments				As Restated				References
		For Six Months Ended June 30, 2022 (unaudited)
		As Previously				Previous				Restatement								Restatement
		Reported				Revision				Adjustments				As Restated				References
Revenue:
Service		$	121.8			$	-			$	(1.7	)		$	120.1			b
Product Sales			10.1				-				0.6				10.7			b
Total Revenue			131.9				-				(1.1	)			130.8

Cost of Sales
Cost of Service			(23.5	)			-				(11.1	)			(34.6	)		b, f
Cost of product sales			(6.5	)			-				(0.6	)			(7.1	)		b, c
Selling, general and administrative expenses			(61.5	)			-				12.6				(48.9	)		a, f
Acquisition and integration related transaction expenses			(0.2	)			-				-				(0.2	)
Depreciation and amortization			(19.9	)			(0.6	)			(0.4	)			(20.9	)		a, b, d
Net operating income (loss)			20.3				(0.6	)			(0.6	)			19.1

Other expense
Interest expense, net			(12.5	)			-				0.1				(12.4	)		b
Gain on disposal of business			0.9				-				-				0.9
Other finance income (expense)			0.6				-				-				0.6
							-				-
Total other expense, net			(11.0	)			-				0.1				(10.9	)

Net income before income taxes			9.3				(0.6	)			(0.5	)			8.2
Income tax (expense) benefit			(0.3	)			-				-				(0.3	)
Net income			9.0				(0.6	)			(0.5	)			7.9

Other comprehensive income:
Foreign currency translation (loss) gain			8.2				-				4.3				12.5
Reclassification of loss on hedging instrument to comprehensive income			0.4				-				-				0.4
Actuarial (losses) gains on pension plan			3.3				-				(4.0	)			(0.7	)		g
Other comprehensive (loss) income			11.9				-				0.3				12.2

Comprehensive income		$	20.9			$	(0.6	)		$	(0.2	)		$	20.1

Net income per common share - basic		$	0.34			$	(0.03	)		$	(0.03	)		$	0.28
Net income per common share - diluted		$	0.31			$	(0.02	)		$	(0.02	)		$	0.27

Weighted average number of shares outstanding during the year - basic			26,838,339				-				1,593,237				28,431,576			h
Weighted average number of shares outstanding during the year - diluted			29,375,570				-				70,956				29,446,526

Supplemental disclosure of stock-based compensation expense
Stock-based compensation expense included in:
Selling, general and administrative expenses		$	(5.4	)			-				-			$	(5.4	)

		Reported				Revision				Adjustments				As Restated				References
		For Three Months Ended June 30, 2022 (unaudited)
		As Previously				Previous				Restatement								Restatement
		Reported				Revision				Adjustments				As Restated				References
Revenue:
Service		$	64.8			$	-			$	(0.7	)		$	64.1			b
Product Sales			6.5				-				(0.1	)			6.4			b
Total Revenue			71.3				-				(0.8	)			70.5

Cost of Sales
Cost of Service			(11.7	)			-				(6.1	)			(17.8	)		b, f
Cost of Product sales			(4.4	)			-				(0.2	)			(4.6	)		b
Selling, general and administrative expenses			(31.9	)			-				6.2				(25.7	)		a, f
Acquisition and integration related transaction expenses			(0.1	)			-				0.1				-
Depreciation and amortization			(9.8	)			(0.3	)			(0.1	)			(10.2	)		a, b, d
Net operating income (loss)			13.4				(0.3	)			(0.9	)			12.2

Other expense
Interest expense, net			(6.0	)			-				0.1				(5.9	)		b
Gain on disposal of business			-				-				-				-
Other finance income (expense)			0.3				-				-				0.3

Total other expense, net			(5.7	)			-				0.1				(5.6	)

Net income before income taxes			7.7				(0.3	)			(0.8	)			6.6
Income tax (expense) benefit			(0.2	)			-				-				(0.2	)
Net income			7.5				(0.3	)			(0.8	)			6.4

Other comprehensive income:
Foreign currency translation (loss) gain			5.8				-				3.2				9.0
Reclassification of loss on hedging instrument to comprehensive income			0.2				-				-				0.2
Actuarial (losses) gains on pension plan			2.6				-				(3.4	)			(0.8	)		g
Other comprehensive (loss) income			8.6				-				(0.2	)			8.4

Comprehensive income		$	16.1			$	(0.3	)		$	(1.0	)		$	14.8
							-				-
Net income per common share - basic		$	0.28			$	(0.01	)		$	(0.04	)		$	0.23
Net income per common share - diluted		$	0.26			$	(0.04	)		$	-			$	0.22

Weighted average number of shares outstanding during the year - basic			26,826,014				-				1,600,234				28,426,248			h
Weighted average number of shares outstanding during the year - diluted			29,262,690				-				87,028				29,349,718

Supplemental disclosure of stock-based compensation expense
Stock-based compensation expense included in:
Selling, general and administrative expenses		$	(2.6	)			-				-			$	(2.6	)

The following tables present the effect of the Restatement Items on the Company’s consolidated statements of stockholders’ equity (deficit) for the periods indicated (in millions, except per share amounts):


														Accumulated
		Common Stock								Additional paid in				other comprehensive				Accumulated				Total stockholders’				Restatement
		Shares				Amount				capital				income				deficit				deficit				References

Balance as of March 31, 2023 (As Previously Reported)			26,263,070				-				381.2				46.8				(482.4	)			(54.4	)
Previous Revision			-				-				-				-				(1.0	)			(1.0	)
Restatement Items			-				-				-				1.5				(32.6	)			(31.1	)
Balance as of March 31, 2023 (As Restated) (Unaudited)			26,263,070			$	-			$	381.2			$	48.3			$	(516.0	)		$	(86.5	)

Balance as of June 30, 2023 (As Previously Reported)			26,263,421				-				384.1				45.1				(479.5	)			(50.3	)
Restatement Items			-				-				-				0.9				(31.0	)			(30.1	)
Balance as of June 30, 2023 (As Restated) (Unaudited)			26,263,421			$	-			$	384.1			$	46.0			$	(510.5	)		$	(80.4	)


														Accumulated
		Common Stock								Additional paid in				other comprehensive				Accumulated				Total stockholders’				Restatement
		Shares				Amount				capital				income				deficit				deficit				References

Balance as of March 31, 2022 (As Previously Reported)			26,880,622				-				375.0				47.1				(492.6	)			(70.5	)
Restatement Items			-				-				-				0.5				(30.7	)			(30.2	)
Balance as of March 31, 2022 (As Restated) (Unaudited)			26,880,622			$	-			$	375.0			$	47.6			$	(523.3	)		$	(100.7	)

Balance as of June 30, 2022 (As Previously Reported)			26,448,573				-				377.4				55.7				(490.2	)			(57.1	)
Previous Revision			-				-				-				-				(0.6	)			(0.6	)
Restatement Items			-				-				-				0.3				(31.2	)			(30.9	)
Balance as of June 30, 2022 (As Restated) (Unaudited)			26,448,573			$	-			$	377.4			$	56.0			$	(522.0	)		$	(88.6	)
Balance			26,448,573			$	-			$	377.4			$	56.0			$	(522.0	)		$	(88.6	)

The following tables present the effect of the Restatement Items on the Company’s consolidated statements of cashflows for the periods indicated (in millions):


		Six Months Ended June 30, 2023
		As Previously				Restatement								Restatement
		Reported				Adjustments				As Restated				References
Cash flows from operating activities:
Net income (loss)		$	3.9			$	0.3			$	4.2			a, b, c, d, f
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			19.3				0.2				19.5			a, b, d
Amortization of right of use asset			1.2				0.7				1.9			e
Profit on disposal of trade and assets
Stock-based compensation expense			6.1				(0.1	)			6.0			f
Contract cost expense			-				(5.2	)			(5.2	)		a, b
Reclassification of loss on hedging instrument to comprehensive income			0.3				-				0.3
Non-cash interest expense relating to senior debt			1.0				-				1.0
Changes in assets and liabilities:
Accounts receivable			3.3				(0.1	)			3.2			g
Inventory			(15.0	)			0.4				(14.6	)		c, g
Prepaid expenses and other assets			2.9				(0.4	)			2.5			f, g
Corporate tax and other current taxes payable			1.0				(2.5	)			(1.5	)		f, g
Accounts payable and accrued expenses			(9.8	)			2.2				(7.6	)		b, g
Deferred revenues and customer prepayment			24.6				0.1				24.7			g
Operating lease liabilities			(1.2	)			(0.6	)			(1.8	)		e, g
Other long-term liabilities			(0.1	)			-				(0.1	)
Net cash provided by operating activities			37.5				(5.0	)			32.5

Cash flows from investing activities:
Purchases of property and equipment			(9.3	)			0.6				(8.7	)		g
Acquisition of subsidiary company assets
Disposal of trade and assets
Acquisition of third-party company trade and assets			(0.6	)			-				(0.6	)
Purchases of capital software and internally developed costs			(10.7	)			4.0				(6.7	)		a, g
Net cash used in investing activities			(20.6	)			4.6				(16.0	)

Cash flows from financing activities:
Repurchase of common stock			(0.1	)			-				(0.1	)
Repayments of finance leases			(0.7	)			-				(0.7	)
Net cash used in financing activities			(0.8	)			-				(0.8	)

Effect of exchange rate changes on cash			1.0				0.4				1.4			g
Net increase (decrease) in cash			17.1				-				17.1
Cash, beginning of period			25.0				-				25.0
Cash, end of period		$	42.1				-				42.1

Supplemental cash flow disclosures
Cash paid during the period for interest		$	11.9			$	-			$	11.9
Cash paid during the period for income taxes		$	4.5			$	-			$	4.5
Cash paid during the period for operating leases		$	1.7			$	2.2			$	3.9			e

Supplemental disclosure of noncash investing and financing activities
Lease liabilities arising from obtaining right of use assets		$	0.2			$	-			$	0.2
Additional paid in capital from settlement of RSUs		$	(0.2	)		$	-			$	(0.2	)
Property and equipment acquired through finance lease		$	1.2			$	-			$	1.2
Property and equipment transferred to inventory		$	-			$	-			$	-


		Six Months Ended June 30, 2022 (unaudited)
		As Previously				Previous				Restatement								Restatement
		Reported				Revision				Adjustments				As Restated				References
Cash flows from operating activities:
Net income (loss)		$	8.4			$	0.6			$	(1.1	)		$	7.9			a, b, c, d, f
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			20.5				(0.6	)			1.0				20.9			a, b
Amortization of right of use asset			1.4				-				0.6				2.0			e
Profit on disposal of trade and assets											(1.0	)			(1.0	)		f
Stock-based compensation expense			5.4				-				-				5.4
Contract cost expense											(2.8	)			(2.8	)		a, b
Reclassification of loss on hedging instrument to comprehensive income			0.4				-				-				0.4
Non-cash interest expense relating to senior debt			0.8				-				-				0.8
Changes in assets and liabilities:
Accounts receivable			(0.1	)			-				(0.1	)			(0.2	)		f, g
Inventory			(10.4	)			-				0.5				(9.9	)		c, g
Prepaid expenses and other assets			2.3				-				(1.4	)			0.9			f, g
Corporate tax and other current taxes payable			(6.5	)			-				-				(6.5	)
Accounts payable and accrued expenses			(1.5	)			-				(0.3	)			(1.8	)		f, g
Deferred revenues and customer prepayment			(2.2	)			-				0.5				(1.7	)		b, g
Operating lease liabilities			(1.2	)			-				(0.7	)			(1.9	)		e, g
Other long-term liabilities			(1.4	)			-				(0.1	)			(1.5	)		g
Net cash provided by operating activities			15.9				-				(4.9	)			11.0

Cash flows from investing activities:
Purchases of property and equipment			(11.5	)			-				(0.5	)			(12.0	)		g
Acquisition of subsidiary company assets			(0.6	)			-				-				(0.6	)
Disposal of trade and assets			-								1.3				1.3			f, g
Purchases of capital software			(9.9	)			-				3.0				(6.9	)		a, g
Net cash used in investing activities			(22.0	)			-				3.8				(18.2	)

Cash flows from financing activities:
Repurchase of common stock			(5.1	)			-				-				(5.1	)
Repayments of finance leases			(0.3	)			-				-				(0.3	)
Net cash (used in) provided by financing activities			(5.4	)			-				-				(5.4	)

Effect of exchange rate changes on cash			(4.5	)			-				1.0				(3.5	)		g
Net increase in cash			(16.0	)			-				(0.1	)			(16.1	)
Cash, beginning of period			47.8				-				-				47.8
Cash, end of period		$	31.8			$	-			$	(0.1	)		$	31.7

Supplemental cash flow disclosures
Cash paid during the period for interest		$	11.7			$	-			$	-			$	11.7
Cash paid during the period for income taxes		$	0.1			$	-			$	-			$	0.1
Cash paid during the period for operating leases		$	1.9			$	-			$	1.9			$	3.8

Supplemental disclosure of noncash investing and financing activities
Additional paid in capital from net settlement of RSUs		$	(0.2	)		$	-			$	-			$	(0.2	)
Property and equipment acquired through finance lease		$	-			$	-			$	-			$	-
Property and equipment transferred to inventory		$	0.8			$	-			$	-			$	0.8