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

Restatement of Unaudited Quarterly Results (Tables)

v3.25.1
Restatement of Unaudited Quarterly Results (Tables)
12 Months Ended
Dec. 31, 2024
Restatement Of Unaudited Quarterly Results  
Schedule of Restatement Unaudited Quarterly Results

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    March 31, 2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
ASSETS                            
Current assets:                            
Cash and cash equivalents   $ 5,596     $ -         $ 5,596  
Accounts receivable     4,715       102     (b)     4,817  
Other current assets     2,173       -           2,173  
Total current assets     12,484       102           12,586  
Property and equipment, net     506       -           506  
Other intangible assets, net     544       -           544  
Operating lease right of use assets     2,298       -           2,298  
Other long-term assets     45       -           45  
Total assets   $ 15,877     $ 102         $ 15,979  
                             
LIABILITIES AND STOCKHOLDERS’ DEFICIT                            
Current liabilities:                            
Accounts payable   $ 1,582     $ -         $ 1,582  
Accrued salary and bonus     888       -           888  
Other accrued expenses     8,323       (5,042 )   (a)     3,281  
Line of credit - current     2,200       -           2,200  
Current liabilities of discontinued operations     858       -           858  
Total current liabilities     13,851       (5,042 )         8,809  
Contingent consideration     368       -           368  
Operating lease liabilities, net of current portion     1,748       -           1,748  
Note payable at fair value     11,132       -           11,132  
Other long-term liabilities     4,780       -           4,780  
Total liabilities     31,879       (5,042 )         26,837  
                             
Redeemable preferred stock, $.01 par value; 5,000,000 shares authorized, 47,000 shares Series B issued and outstanding     46,536       -           46,536  
                             
Stockholders’ deficit:                            
Common stock, $.01 par value; 100,000,000 shares authorized; 4,390,826 shares issued and 4,311,414 shares outstanding;     405       -           405  
Additional paid-in capital     187,708       -           187,708  
Accumulated deficit     (248,666 )     5,144     (a) (b)     (243,522 )
Treasury stock, at cost (79,412 shares)     (1,985 )     -           (1,985 )
Total stockholders’ deficit     (62,538 )     5,144           (57,394 )
Total liabilities and stockholders’ deficit     (30,659 )     102           (30,557 )
                             
Total liabilities, preferred stock and stockholders’ deficit   $ 15,877     $ 102         $ 15,979  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

(unaudited, in thousands, except for per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For the Three Months Ended March 31, 2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Revenue, net   $ 9,826     $ (171 )    (b)   $ 9,655  
Cost of revenue     3,848       (334 )    (a)     3,514  
Gross profit     5,978       163           6,141  
Operating expenses:                            
Sales and marketing     2,342       -           2,342  
Research and development     149       -           149  
General and administrative     2,494       -           2,494  
Acquisition related amortization expense     318       -           318  
Total operating expenses     5,303       -           5,303  
                             
Operating income from continuing operations     675       163           838  
Interest accretion expense     (35 )     -           (35 )
Note payable interest expense     (225 )     -           (225 )
Other expense, net     19       -           19  
Income from continuing operations before tax     434       163           597  
Provision for income taxes     4       -           4  
Income from continuing operations     430       163           593  
                             
Loss from discontinued operations, net of tax     (79 )     -           (79 )
                             
Net income   $ 351     $ 163         $ 514  
                             
Basic net income (loss) per share of common stock:                            
From continuing operations   $ 0.10     $ 0.04         $ 0.14  
From discontinued operations     (0.02 )     -           (0.02 )
Net income (loss) per basic share of common stock   $ 0.08     $ 0.04         $ 0.12  
                             
Diluted net income (loss) per share of common stock:                            
From continuing operations   $ 0.10     $ 0.04         $ 0.14  
From discontinued operations     (0.02 )     -           (0.02 )
Net income (loss) per diluted share of common stock   $ 0.08     $ 0.04         $ 0.12  
                             
Weighted average number of common shares and common share equivalents outstanding:                            
Basic     4,307       4,307           4,307  
Diluted     4,308       4,308           4,308  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

Consolidated Statements of Stockholders’ Deficit (unaudited)

 

                            Additional              
                            Paid in     Accumulated        
    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
Balance -March 31, 2023 as reported     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,708     $ (248,666 )   $ (62,538 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       4,981       4,981  
Cumulative adjustments to net income     -       -       -       -       -       163       163  
                                                         
Balance -March 31, 2023 as restated     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,708     $ (243,522 )   $ (57,394 )

 

 

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For The Three Months Ended March 31,  
    2023               2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Cash Flows From Operating Activities                            
Net income   $ 351     $ 163      (a) (b)   $ 514  
Adjustments to reconcile net income to net cash                            
used in operating activities:                            
Depreciation and amortization     356       -           356  
Interest accretion expense     35       -           35  
Amortization of deferred financing fees     14       -           14  
Stock-based compensation     192       -           192  
Change in fair value of note payable     (33 )     -           (33 )
Other changes in operating assets and liabilities:                         -  
Accounts receivable     317       171      (b)     488  
Other current assets     107       -           107  
Accounts payable     532       -           532  
Accrued salaries and bonus     (568 )     -           (568 )
Other accrued expenses     (249 )     (334 )    (a)     (583 )
Long-term liabilities     79       -           79  
Net cash provided by operating activities     1,133       -           1,133  
                             
Cash Flows From Investing Activity                            
Purchase of property and equipment     (65 )     -           (65 )
Net cash used in investing activities     (65 )     -           (65 )
                             
Cash Flows From Financing Activities                            
Payments on line of credit     (300 )     -           (300 )
Net cash (used in) provided by financing activities     (300 )     -           (300 )
                             
Net increase in cash and cash equivalents     768       -           768  
Cash and cash equivalents from continuing operations– beginning     4,828       -           4,828  
Cash and cash equivalents from discontinued operations– beginning     -       -           -  
Cash and cash equivalents – beginning   $ 4,828     $ -         $ 4,828  
Cash and cash equivalents from continuing operations– ending   $ 5,596     $ -         $ 5,596  
Cash and cash equivalents from discontinued operations– ending     -       -           -  
Cash and cash equivalents – ending   $ 5,596     $ -         $ 5,596  

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

(unaudited, in thousands, except share and per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    June 30, 2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
ASSETS                            
Current assets:                            
Cash and cash equivalents   $ 5,079     $ -         $ 5,079  
Accounts receivable     5,529       121      (b)     5,650  
Other current assets     2,367       -           2,367  
Total current assets     12,975       121           13,096  
Property and equipment, net     606       -           606  
Other intangible assets, net     226       -           226  
Operating lease right of use assets     2,090       -           2,090  
Other long-term assets     45       -           45  
Total assets   $ 15,942     $ 121         $ 16,063  
                             
LIABILITIES AND STOCKHOLDERS’ DEFICIT                            
Current liabilities:                            
Accounts payable   $ 1,689     $ -         $ 1,689  
Accrued salary and bonus     1,127       -           1,127  
Other accrued expenses     8,391       (5,407 )    (a)     2,984  
Line of credit - current     1,500       -           1,500  
Current liabilities of discontinued operations     858       -           858  
Total current liabilities     13,565       (5,407 )         8,158  
Contingent consideration     231       -           231  
Operating lease liabilities, net of current portion     1,646       -           1,646  
Note payable at fair value     11,307       -           11,307  
Other long-term liabilities     4,863       -           4,863  
Total liabilities     31,612       (5,407 )         26,205  
                             
Redeemable preferred stock, $.01 par value; 5,000,000 shares authorized, 47,000 shares Series B issued and outstanding     46,536       -           46,536  
                             
Stockholders’ deficit:                            
Common stock, $.01 par value; 100,000,000 shares authorized; 4,390,826 shares issued and 4,311,414 shares outstanding;     405       -           405  
Additional paid-in capital     187,865       -           187,865  
Accumulated deficit     (248,491 )     5,528      (a) (b)     (242,963 )
Treasury stock, at cost (79,412 shares)     (1,985 )     -           (1,985 )
Total stockholders’ deficit     (62,206 )     5,528           (56,678 )
Total liabilities and stockholders’ deficit     (30,594 )     121           (30,473 )
                             
Total liabilities, preferred stock and stockholders’ deficit   $ 15,942     $ 121         $ 16,063  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

(unaudited, in thousands, except for per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For the Three Months Ended June 30, 2023     For the Six Months Ended June 30, 2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Revenue, net   $ 11,026     $ 19      (b)   $ 11,045     $ 20,853     $ (152 )    (b)   $ 20,701  
Cost of revenue     4,191       (365 )    (a)     3,826       8,039       (699 )    (a)     7,340  
Gross profit     6,835       384           7,219       12,814       547           13,361  
Operating expenses:                                                        
Sales and marketing     2,605       -           2,605       4,947       -           4,947  
Research and development     186       -           186       335       -           335  
General and administrative     2,894       -           2,894       5,389       -           5,389  
Acquisition related amortization expense     318       -           318       635       -           635  
Total operating expenses     6,003       -           6,003       11,306       -           11,306  
                                                         
Operating income from continuing operations     832       384           1,216       1,508       547           2,055  
Interest accretion expense     (31 )     -           (31 )     (66 )     -           (66 )
Note payable interest expense     (228 )     -           (228 )     (453 )     -           (453 )
Other expense, net     (174 )     -           (174 )     (156 )     -           (156 )
Income from continuing operations before tax     399       384           783       833       547           1,380  
Provision for income taxes     4       -           4       8       -           8  
Income from continuing operations     395       384           779       825       547           1,372  
                                                         
Loss from discontinued operations, net of tax     (220 )     -           (220 )     (299 )     -           (299 )
                                                         
Net income   $ 175     $ 384         $ 559     $ 526     $ 547         $ 1,073  
                                                         
Basic net income (loss) per share of common stock:                                                        
From continuing operations   $ 0.09     $ 0.09         $ 0.18     $ 0.19     $ 0.13         $ 0.32  
From discontinued operations     (0.05 )     -           (0.05 )     (0.07 )     -           (0.07 )
Net income (loss) per basic share of common stock   $ 0.04     $ 0.09         $ 0.13     $ 0.12     $ 0.13         $ 0.25  
                                                         
Diluted net income (loss) per share of common stock:                                                        
From continuing operations   $ 0.09     $ 0.09         $ 0.18     $ 0.19     $ 0.13         $ 0.32  
From discontinued operations     (0.05 )     -           (0.05 )     (0.07 )     -           (0.07 )
Net income (loss) per diluted share of common stock   $ 0.04     $ 0.09         $ 0.13     $ 0.12     $ 0.13         $ 0.25  
                                                         
Weighted average number of common shares and common share equivalents outstanding:                                                        
Basic     4,311       4,311           4,311       4,309       4,309           4,309  
Diluted     4,316       4,316           4,316       4,313       4,313           4,313  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

Consolidated Statements of Stockholders’ Deficit (unaudited)

 

                            Additional              
    Common Stock     Treasury Stock     Paid in     Accumulated        
    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
Balance -March 31, 2023 as reported     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,708     $ (248,666 )   $ (62,538 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       4,981       4,981  
Cumulative adjustments to net income     -       -       -       -       -       163       163  
                                                         
Balance -March 31, 2023 as restated     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,708     $ (243,522 )   $ (57,394 )
                                                         
Balance -June 30, 2023 as reported     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,865     $ (248,491 )   $ (62,206 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       5,144       5,144  
Cumulative adjustments to net income     -       -       -       -       -       384       384  
                                                         
Balance -June 30, 2023 as restated     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,865     $ (242,963 )   $ (56,678 )

 

 

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For The Six Months Ended June 30,  
    2023               2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Cash Flows From Operating Activities                            
Net income   $ 526     $ 547      (a) (b)   $ 1,073  
Adjustments to reconcile net income to net cash                            
used in operating activities:                            
Depreciation and amortization     714       -           714  
Interest accretion expense     66       -           66  
Amortization of deferred financing fees     28       -           28  
Stock-based compensation     349       -           349  
Change in fair value of note payable     142       -           142  
Other changes in operating assets and liabilities:                         -  
Accounts receivable     (497 )     152      (b)     (345 )
Other current assets     (101 )     -           (101 )
Operating lease right of use assets     349       -           349  
Accounts payable     610       -           610  
Accrued salaries and bonus     (329 )     -           (329 )
Other accrued expenses     (138 )     (699 )    (a)     (837 )
Operating lease liabilities     (337 )                 (337 )
Long-term liabilities     162       -           162  
Net cash provided by operating activities     1,544       -           1,544  
                             
Cash Flows From Investing Activity                            
Working capital adjustment on sale of Interpace Pharma Solutions     (117 )     -           (117 )
Purchase of property and equipment     (176 )     -           (176 )
Net cash used in investing activities     (293 )     -           (293 )
                             
Cash Flows From Financing Activities                            
Payments on line of credit     (1,000 )     -           (1,000 )
Net cash used in financing activities     (1,000 )     -           (1,000 )
                             
Net increase in cash and cash equivalents     251       -           251  
Cash and cash equivalents from continuing operations– beginning     4,828       -           4,828  
Cash and cash equivalents from discontinued operations– beginning     -       -           -  
Cash and cash equivalents – beginning   $ 4,828     $ -         $ 4,828  
Cash and cash equivalents from continuing operations– ending   $ 5,079     $ -         $ 5,079  
Cash and cash equivalents from discontinued operations– ending     -       -           -  
Cash and cash equivalents – ending   $ 5,079     $ -         $ 5,079  

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

(unaudited, in thousands, except share and per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    September 30, 2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
ASSETS                            
Current assets:                            
Cash and cash equivalents   $ 5,032     $ -         $ 5,032  
Accounts receivable     4,830       246      (b)     5,076  
Other current assets     1,576       -           1,576  
Total current assets     11,438       246           11,684  
Property and equipment, net     762       -           762  
Other intangible assets, net     27       -           27  
Operating lease right of use assets     1,978       -           1,978  
Other long-term assets     45       -           45  
Total assets   $ 14,250     $ 246         $ 14,496  
                             
LIABILITIES AND STOCKHOLDERS’ DEFICIT                            
Current liabilities:                            
Accounts payable   $ 1,352     $ -         $ 1,352  
Accrued salary and bonus     1,299       -           1,299  
Other accrued expenses     8,815       (5,710 )    (a)     3,105  
Current liabilities of discontinued operations     858       -           858  
Total current liabilities     12,324       (5,710 )         6,614  
Operating lease liabilities, net of current portion     1,556       -           1,556  
Note payable at fair value     11,565       -           11,565  
Other long-term liabilities     4,949       -           4,949  
Total liabilities     30,394       (5,710 )         24,684  
                             
Redeemable preferred stock, $.01 par value; 5,000,000 shares authorized, 47,000 shares Series B issued and outstanding     46,536       -           46,536  
                             
Stockholders’ deficit:                            
Common stock, $.01 par value; 100,000,000 shares authorized; 4,407,492 shares issued and 4,321,772 shares outstanding;     405       -           405  
Additional paid-in capital     188,017       -           188,017  
Accumulated deficit     (249,105 )     5,956      (a) (b)     (243,149 )
Treasury stock, at cost (85,720 shares)     (1,997 )     -           (1,997 )
Total stockholders’ deficit     (62,680 )     5,956           (56,724 )
Total liabilities and stockholders’ deficit     (32,286 )     246           (32,040 )
                             
Total liabilities, preferred stock and stockholders’ deficit   $ 14,250     $ 246         $ 14,496  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

(unaudited, in thousands, except for per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For the Three Months Ended September 30, 2023     For the Nine Months Ended September 30, 2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Revenue, net   $ 9,078     $ 125      (b)   $ 9,203     $ 29,931     $ (27 )    (b)   $ 29,904  
Cost of revenue     4,124       (303 )    (a)     3,821       12,163       (1,002 )    (a)     11,161  
Gross profit     4,954       428           5,382       17,768       975           18,743  
Operating expenses:                                                        
Sales and marketing     2,498       -           2,498       7,444       -           7,444  
Research and development     149       -           149       484       -           484  
General and administrative     2,124       -           2,124       7,515       -           7,515  
Acquisition related amortization expense     199       -           199       834       -           834  
Total operating expenses     4,970       -           4,970       16,277       -           16,277  
                                                         
Operating (loss) income from continuing operations     (16 )     428           412       1,491       975           2,466  
Interest accretion expense     (26 )     -           (26 )     (92 )     -           (92 )
Note payable interest expense     (230 )     -           (230 )     (682 )     -           (682 )
Other expense, net     (252 )     -           (252 )     (408 )     -           (408 )
Loss (income) from continuing operations before tax     (524 )     428           (96 )     309       975           1,284  
Provision for income taxes     4       -           4       12       -           12  
(Loss) income from continuing operations     (528 )     428           (100 )     297       975           1,272  
                                                         
Loss from discontinued operations, net of tax     (86 )     -           (86 )     (385 )     -           (385 )
                                                         
Net (loss) income   $ (614 )   $ 428         $ (186 )   $ (88 )   $ 975         $ 887  
                                                         
Basic net income (loss) per share of common stock:                                                        
From continuing operations   $ (0.12 )   $ 0.10         $ (0.02 )   $ 0.07     $ 0.23         $ 0.29  
From discontinued operations     (0.02 )     -           (0.02 )     (0.09 )     -           (0.09 )
Net income (loss) per basic share of common stock   $ (0.14 )   $ 0.10         $ (0.04 )   $ (0.02 )   $ 0.23         $ 0.21  
                                                         
Diluted net income (loss) per share of common stock:                                                        
From continuing operations   $ (0.12 )   $ 0.10         $ (0.02 )   $ 0.07     $ 0.22         $ 0.29  
From discontinued operations     (0.02 )     -           (0.02 )     (0.09 )     -           (0.09 )
Net income (loss) per diluted share of common stock   $ (0.14 )   $ 0.10         $ (0.04 )   $ (0.02 )   $ 0.22         $ 0.20  
                                                         
Weighted average number of common shares and                                                        
common share equivalents outstanding:                                                        
Basic     4,319       4,319           4,319       4,313       4,313           4,313  
Diluted     4,319       4,319           4,319       4,355       4,355           4,355  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

Consolidated Statement of Stockholders’ Deficit (unaudited)

 

                            Additional              
    Common Stock     Treasury Stock     Paid in     Accumulated        
    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
Balance -March 31, 2023 as reported     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,708     $ (248,666 )   $ (62,538 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       4,981       4,981  
Cumulative adjustments to net income     -       -       -       -       -       163       163  
                                                         
Balance -March 31, 2023 as restated     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,708     $ (243,522 )   $ (57,394 )
                                                         
Balance -June 30, 2023 as reported     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,865     $ (248,491 )   $ (62,206 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       5,144       5,144  
Cumulative adjustments to net income     -       -       -       -       -       384       384  
                                                         
Balance -June 30, 2023 as restated     4,390,826     $ 405       79,412     $ (1,985 )   $ 187,865     $ (242,963 )   $ (56,678 )
                                                         
Balance -September 30, 2023 as reported     4,407,492     $ 405       85,720     $ (1,997 )   $ 188,017     $ (249,105 )   $ (62,680 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       5,528       5,528  
Cumulative adjustments to net income     -       -       -       -       -       428       428  
                                                         
Balance -September 30, 2023 as restated     4,407,492     $ 405       85,720     $ (1,997 )   $ 188,017     $ (243,149 )   $ (56,724 )

 

 

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For The Nine Months Ended September 30,  
    2023               2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Cash Flows From Operating Activities                            
Net (loss) income   $ (88 )   $ 975      (a) (b)   $ 887  
Adjustments to reconcile net (loss) income to net cash                            
used in operating activities:                            
Depreciation and amortization     954       -           954  
Interest accretion expense     92       -           92  
Amortization of deferred financing fees     42       -           42  
Stock-based compensation     501       -           501  
Change in fair value of note payable     400       -           400  
Other changes in operating assets and liabilities:                         -  
Accounts receivable     202       27      (b)     229  
Other current assets     176       -           176  
Operating lease right of use assets     461       -           461  
Accounts payable     228       -           228  
Accrued salaries and bonus     (157 )     -           (157 )
Other accrued expenses     (118 )     (1,002 )    (a)     (1,120 )
Operating lease liabilities     (292 )                 (292 )
Long-term liabilities     248       -           248  
Net cash provided by operating activities     2,649       -           2,649  
                             
Cash Flows From Investing Activity                            
Proceeds from sale of Interpace Pharma Solutions, net     500       -           500  
Working capital adjustment on sale of Interpace Pharma Solutions     (117 )     -           (117 )
Purchase of property and equipment     (328 )     -           (328 )
Net cash provided by investing activities     55       -           55  
                             
Cash Flows From Financing Activities                            
Payments on line of credit     (2,500 )     -           (2,500 )
Net cash used in financing activities     (2,500 )     -           (2,500 )
                             
Net increase in cash and cash equivalents     204       -           204  
Cash and cash equivalents from continuing operations– beginning     4,828       -           4,828  
Cash and cash equivalents from discontinued operations– beginning     -       -           -  
Cash and cash equivalents – beginning   $ 4,828     $ -         $ 4,828  
Cash and cash equivalents from continuing operations– ending   $ 5,032     $ -         $ 5,032  
Cash and cash equivalents from discontinued operations– ending     -       -           -  
Cash and cash equivalents – ending   $ 5,032     $ -         $ 5,032  

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

(unaudited, in thousands, except share and per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    March 31, 2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
ASSETS                            
Current assets:                            
Cash and cash equivalents   $ 2,812     $ -         $ 2,812  
Accounts receivable     5,006       -           5,006  
Other current assets     1,598       -           1,598  
Total current assets     9,416       -           9,416  
Property and equipment, net     925       -           925  
Operating lease right of use assets     1,756       -           1,756  
Other long-term assets     45       -           45  
Total assets   $ 12,142     $ -         $ 12,142  
                             
LIABILITIES AND STOCKHOLDERS’ DEFICIT                            
Current liabilities:                            
Accounts payable   $ 1,363     $ -         $ 1,363  
Accrued salary and bonus     878       -           878  
Other accrued expenses     8,574       (6,373 )    (a)     2,201  
Note payable at fair value, current     7,498       -           7,498  
Current liabilities of discontinued operations     660       -           660  
Total current liabilities     18,973       (6,373 )         12,600  
Operating lease liabilities, net of current portion     1,359       -           1,359  
Note payable at fair value     1,343       -           1,343  
Other long-term liabilities     5,072       -           5,072  
Total liabilities     26,747       (6,373 )         20,374  
                             
Redeemable preferred stock, $.01 par value; 5,000,000 shares authorized, 47,000 shares Series B issued and outstanding     46,536       -           46,536  
                             
Stockholders’ deficit:                            
Common stock, $.01 par value; 100,000,000 shares authorized; 4,487,157 shares issued and 4,376,398 shares outstanding;     406       -           406  
Additional paid-in capital     188,224       -           188,224  
Accumulated deficit     (247,747 )     6,373      (a)     (241,374 )
Treasury stock, at cost (110,759 shares)     (2,024 )     -           (2,024 )
Total stockholders’ deficit     (61,141 )     6,373           (54,768 )
Total liabilities and stockholders’ deficit     (34,394 )     -           (34,394 )
                             
Total liabilities, preferred stock and stockholders’ deficit   $ 12,142     $ -         $ 12,142  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

(unaudited, in thousands, except for per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For the Three Months Ended March 31, 2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Revenue, net   $ 10,273     $ (95 )    (b)   $ 10,178  
Cost of revenue     4,202       (335 )    (a)     3,867  
Gross profit     6,071       240           6,311  
Operating expenses:                            
Sales and marketing     2,821       -           2,821  
Research and development     137       -           137  
General and administrative     2,239       -           2,239  
Total operating expenses     5,197       -           5,197  
                             
Operating income from continuing operations     874       240           1,114  
Interest accretion expense     (19 )     -           (19 )
Note payable interest expense     (197 )     -           (197 )
Other expense, net     (82 )     -           (82 )
Income from continuing operations before tax     576       240           816  
Provision for income taxes     4       -           4  
Income from continuing operations     572       240           812  
                             
Loss from discontinued operations, net of tax     (104 )     -           (104 )
                             
Net income   $ 468     $ 240         $ 708  
                             
Basic net income (loss) per share of common stock:                            
From continuing operations   $ 0.13     $ 0.05         $ 0.19  
From discontinued operations     (0.02 )     -           (0.02 )
Net income (loss) per basic share of common stock   $ 0.11     $ 0.05         $ 0.16  
                             
Diluted net income (loss) per share of common stock:                            
From continuing operations   $ 0.13     $ 0.05         $ 0.19  
From discontinued operations     (0.02 )     -           (0.02 )
Net income (loss) per diluted share of common stock   $ 0.11     $ 0.05         $ 0.16  
                             
Weighted average number of common shares and                            
common share equivalents outstanding:                            
Basic     4,370       4,370           4,370  
Diluted     4,384       4,384           4,384  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

Consolidated Statement of Stockholders’ Deficit (unaudited)

 

    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
                            Additional              
    Common Stock     Treasury Stock     Paid in     Accumulated        
    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
Balance -March 31, 2024 as reported     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,224     $ (247,747 )   $ (61,141 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       6,133       6,133  
Cumulative adjustments to net income     -       -       -       -       -       240       240  
                                                         
Balance -March 31, 2024 as restated     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,224     $ (247,507 )   $ (54,768 )

 

 

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For The Three Months Ended March 31,  
    2024               2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Cash Flows From Operating Activities                            
Net income   $ 468     $ 240         $ 708  
Adjustments to reconcile net income to net cash                            
used in operating activities:                            
Depreciation and amortization     52       -           52  
Interest accretion expense     19       -           19  
Bad debt expense reversal     (100 )     -           (100 )
Stock-based compensation     79       -           79  
Credit loss expense     26       -           26  
Change in fair value of note payable     98       -           98  
Amortization on operating lease right of use asset     108                   108  
Other changes in operating assets and liabilities:                         -  
Accounts receivable     (49 )     95      (b)     46  
Other current assets     343       -           343  
Accounts payable     (176 )     -           (176 )
Accrued salaries and bonus     (1,091 )     -           (1,091 )
Other accrued expenses     176       (335 )    (a)     (159 )
Operating lease liabilities     (115 )                 (115 )
Long-term liabilities     104       -           104  
Net cash used in operating activities     (58 )     -           (58 )
                             
Cash Flows From Investing Activity                            
Purchase of property and equipment     (28 )     -           (28 )
Net cash used in investing activities     (28 )     -           (28 )
                             
Cash Flows From Financing Activities                            
Payments made on note payable     (600 )     -           (600 )
Net cash used in financing activities     (600 )     -           (600 )
                             
Net decrease in cash and cash equivalents     (686 )     -           (686 )
Cash and cash equivalents from continuing operations– beginning     3,498       -           3,498  
Cash and cash equivalents from discontinued operations– beginning     -       -           -  
Cash and cash equivalents – beginning   $ 3,498     $ -         $ 3,498  
Cash and cash equivalents from continuing operations– ending   $ 2,812     $ -         $ 2,812  
Cash and cash equivalents from discontinued operations– ending     -       -           -  
Cash and cash equivalents – ending   $ 2,812     $ -         $ 2,812  

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

(unaudited, in thousands, except share and per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    June 30, 2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
ASSETS                            
Current assets:                            
Cash and cash equivalents   $ 2,019     $ -         $ 2,019  
Accounts receivable     6,206       -           6,206  
Other current assets     1,941       -           1,941  
Total current assets     10,166       -           10,166  
Property and equipment, net     1,126       -           1,126  
Operating lease right of use assets     1,635       -           1,635  
Other long-term assets     45       -           45  
Total assets   $ 12,972     $ -         $ 12,972  
                             
LIABILITIES AND STOCKHOLDERS’ DEFICIT                            
Current liabilities:                            
Accounts payable   $ 1,761     $ -         $ 1,761  
Accrued salary and bonus     1,243       -           1,243  
Other accrued expenses     8,582       (6,748 )    (a)     1,834  
Note payable at fair value, current     6,784       -           6,784  
Current liabilities of discontinued operations     660       -           660  
Total current liabilities     19,030       (6,748 )         12,282  
Operating lease liabilities, net of current portion     1,286       -           1,286  
Other long-term liabilities     5,146       -           5,146  
Total liabilities     25,462       (6,748 )         18,714  
                             
Redeemable preferred stock, $.01 par value; 5,000,000 shares authorized, 47,000 shares Series B issued and outstanding     46,536       -           46,536  
                             
Stockholders’ deficit:                            
Common stock, $.01 par value; 100,000,000 shares authorized; 4,487,157 shares issued and 4,376,398 shares outstanding;     406       -           406  
Additional paid-in capital     188,277       -           188,277  
Accumulated deficit     (245,685 )     6,748      (a)     (238,937 )
Treasury stock, at cost (110,759 shares)     (2,024 )     -           (2,024 )
Total stockholders’ deficit     (59,026 )     6,748           (52,278 )
Total liabilities and stockholders’ deficit     (33,564 )     -           (33,564 )
                             
Total liabilities, preferred stock and stockholders’ deficit   $ 12,972     $ -         $ 12,972  

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

(unaudited, in thousands, except for per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For the Three Months Ended June 30, 2024     For the Six Months Ended June 30, 2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Revenue, net   $ 12,042     $ -         $ 12,042     $ 22,314     $ (95 )    (b)   $ 22,219  
Cost of revenue     4,611       (375 )    (a)     4,236       8,812       (710 )    (a)     8,102  
Gross profit     7,431       375           7,806       13,502       615           14,117  
Operating expenses:                                                        
Sales and marketing     2,887       -           2,887       5,707       -           5,707  
Research and development     146       -           146       283       -           283  
General and administrative     2,141       -           2,141       4,381       -           4,381  
Total operating expenses     5,174       -           5,174       10,371       -           10,371  
                                                         
Operating income from continuing operations     2,257       375           2,632       3,131       615           3,746  
Interest accretion expense     (12 )     -           (12 )     (30 )     -           (30 )
Note payable interest expense     (176 )     -           (176 )     (373 )     -           (373 )
Other expense, net     71       -           71       (12 )     -           (12 )
Income from continuing operations before tax     2,140       375           2,515       2,716       615           3,331  
Provision for income taxes     4       -           4       8       -           8  
Income from continuing operations     2,136       375           2,511       2,708       615           3,323  
                                                         
Loss from discontinued operations, net of tax     (74 )     -           (74 )     (178 )     -           (178 )
                                                         
Net income   $ 2,062     $ 375         $ 2,437     $ 2,530     $ 615         $ 3,145  
                                                         
Basic net income (loss) per share of common stock:                                                        
From continuing operations   $ 0.49     $ 0.09         $ 0.57     $ 0.62     $ 0.14         $ 0.76  
From discontinued operations     (0.02 )     -           (0.02 )     (0.04 )     -           (0.04 )
Net income (loss) per basic share of common stock   $ 0.47     $ 0.09         $ 0.56     $ 0.58     $ 0.14         $ 0.72  
                                                         
Diluted net income (loss) per share of common stock:                                                        
From continuing operations   $ 0.49     $ 0.09         $ 0.57     $ 0.62     $ 0.14         $ 0.76  
From discontinued operations     (0.02 )     -           (0.02 )     (0.04 )     -           (0.04 )
Net income (loss) per diluted share of common stock   $ 0.47     $ 0.09         $ 0.55     $ 0.58     $ 0.14         $ 0.72  
                                                         
Weighted average number of common shares and common share equivalents outstanding:                                                        
Basic     4,376       4,376           4,376       4,373       4,373           4,373  
Diluted     4,401       4,401           4,401       4,393       4,393           4,393  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

Consolidated Statement of Stockholders’ Deficit (unaudited)

 

    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
                            Additional              
    Common Stock     Treasury Stock     Paid in     Accumulated        
    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
Balance -March 31, 2024 as reported     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,224     $ (247,747 )   $ (61,141 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       6,133       6,133  
Cumulative adjustments to net income     -       -       -       -       -       240       240  
                                                         
Balance -March 31, 2024 as restated     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,224     $ (247,507 )   $ (54,768 )
                                                         
Balance -June 30, 2024 as reported     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,277     $ (245,685 )   $ (59,026 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       6,373       6,373  
Cumulative adjustments to net income     -       -       -       -       -       375       375  
                                                         
Balance -June 30, 2024 as restated     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,277     $ (245,310 )   $ (52,278 )

 

 

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For The Six Months Ended June 30,  
    2024               2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
Cash Flows From Operating Activities                            
Net income   $ 2,530     $ 615      (a)   $ 3,145  
Adjustments to reconcile net income to net cash                            
used in operating activities:                            
Depreciation and amortization     119       -           119  
Interest accretion expense     30       -           30  
Bad debt expense reversal     (100 )     -           (100 )
Stock-based compensation     132       -           132  
Credit loss expense     26       -           26  
Change in fair value of note payable     41       -           41  
Amortization on operating lease right of use asset     229                   229  
Other changes in operating assets and liabilities:                         -  
Accounts receivable     (1,249 )     95      (b)     (1,154 )
Other current assets     -       -           -  
Accounts payable     (13 )     -           (13 )
Accrued salaries and bonus     (726 )     -           (726 )
Other accrued expenses     337       (710 )    (a)     (373 )
Operating lease liabilities     (188 )                 (188 )
Long-term liabilities     178       -           178  
Net cash provided by operating activities     1,346       -           1,346  
                             
Cash Flows From Investing Activity                            
Purchase of property and equipment     (225 )     -           (225 )
Net cash used in investing activities     (225 )     -           (225 )
                             
Cash Flows From Financing Activities                            
Payments made on note payable     (2,600 )     -           (2,600 )
Net cash used in financing activities     (2,600 )     -           (2,600 )
                             
Net decrease in cash and cash equivalents     (1,479 )     -           (1,479 )
Cash and cash equivalents from continuing operations– beginning     3,498       -           3,498  
Cash and cash equivalents from discontinued operations– beginning     -       -           -  
Cash and cash equivalents – beginning   $ 3,498     $ -         $ 3,498  
Cash and cash equivalents from continuing operations– ending   $ 2,019     $ -         $ 2,019  
Cash and cash equivalents from discontinued operations– ending     -       -           -  
Cash and cash equivalents – ending   $ 2,019     $ -         $ 2,019  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

(unaudited, in thousands, except share and per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    September 30, 2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
ASSETS                            
Current assets:                            
Cash and cash equivalents   $ 2,113     $ -         $ 2,113  
Accounts receivable     7,293       -           7,293  
Other current assets     1,704       -           1,704  
Total current assets     11,110       -           11,110  
Property and equipment, net     1,352       -           1,352  
Operating lease right of use assets     1,532       -           1,532  
Other long-term assets     45       -           45  
Total assets   $ 14,039     $ -         $ 14,039  
                             
LIABILITIES AND STOCKHOLDERS’ DEFICIT                            
Current liabilities:                            
Accounts payable   $ 1,701     $ -         $ 1,701  
Accrued salary and bonus     1,687       -           1,687  
Other accrued expenses     9,033       (7,144 )    (a)     1,889  
Note payable at fair value, current     5,688       -           5,688  
Current liabilities of discontinued operations     660       -           660  
Total current liabilities     18,769       (7,144 )         11,625  
Operating lease liabilities, net of current portion     1,189       -           1,189  
Other long-term liabilities     5,227       -           5,227  
Total liabilities     25,185       (7,144 )         18,041  
                             
Redeemable preferred stock, $.01 par value; 5,000,000 shares authorized, 47,000 shares Series B issued and outstanding     46,536       -           46,536  
                             
Stockholders’ deficit:                            
Common stock, $.01 par value; 100,000,000 shares authorized; 4,532,991 shares issued and 4,404,795 shares outstanding;     406       -           406  
Additional paid-in capital     188,363       -           188,363  
Accumulated deficit     (244,405 )     7,144      (a)     (237,261 )
Treasury stock, at cost (128,196 shares)     (2,046 )     -           (2,046 )
Total stockholders’ deficit     (57,682 )     7,144           (50,538 )
Total liabilities and stockholders’ deficit     (32,497 )     -           (32,497 )
                             
Total liabilities, preferred stock and stockholders’ deficit   $ 14,039     $ -         $ 14,039  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

(unaudited, in thousands, except for per share data)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For the Three Months Ended September 30, 2024     For the Nine Months Ended September 30, 2024  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated     As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
                                             
                                             
Revenue, net   $ 12,295     $ -         $ 12,295     $ 34,610     $ (95 )    (b)   $ 34,515  
Cost of revenue     4,789       (396 )    (a)     4,393       13,602       (1,106 )    (a)     12,496  
Gross profit     7,506       396           7,902       21,008       1,011           22,019  
Operating expenses:                                                        
Sales and marketing     2,864       -           2,864       8,571       -           8,571  
Research and development     199       -           199       483       -           483  
General and administrative     2,538       -           2,538       6,918       -           6,918  
Total operating expenses     5,601       -           5,601       15,972       -           15,972  
                                                         
Operating income from continuing operations     1,905       396           2,301       5,036       1,011           6,047  
Interest accretion expense     (4 )     -           (4 )     (34 )     -           (34 )
Note payable interest expense     (141 )     -           (141 )     (514 )     -           (514 )
Other expense, net     (394 )     -           (394 )     (406 )     -           (406 )
Income from continuing operations before tax     1,366       396           1,762       4,082       1,011           5,093  
Provision for income taxes     4       -           4       12       -           12  
Income from continuing operations     1,362       396           1,758       4,070       1,011           5,081  
                                                         
Loss from discontinued operations, net of tax     (82 )     -           (82 )     (260 )     -           (260 )
                                                         
Net income   $ 1,280     $ 396         $ 1,676     $ 3,810     $ 1,011         $ 4,821  
                                                         
Basic net income (loss) per share of common stock:                                                        
From continuing operations   $ 0.31     $ 0.09         $ 0.40     $ 0.93     $ 0.23         $ 1.16  
From discontinued operations     (0.02 )     -           (0.02 )     (0.06 )     -           (0.06 )
Net income (loss) per basic share of common stock   $ 0.29     $ 0.09         $ 0.38     $ 0.87     $ 0.23         $ 1.10  
                                                         
Diluted net income (loss) per share of common stock:                                                        
From continuing operations   $ 0.31     $ 0.09         $ 0.40     $ 0.92     $ 0.23         $ 1.15  
From discontinued operations     (0.02 )     -           (0.02 )     (0.06 )     -           (0.06 )
Net income (loss) per diluted share of common stock   $ 0.29     $ 0.09         $ 0.38     $ 0.87     $ 0.23         $ 1.09  
                                                         
Weighted average number of common shares and common share equivalents outstanding:                                                        
Basic     4,393       4,393           4,393       4,380       4,380           4,380  
Diluted     4,423       4,423           4,423       4,404       4,404           4,404  

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

Consolidated Statement of Stockholders’ Deficit (unaudited)

 

    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
                            Additional              
    Common Stock     Treasury Stock     Paid in     Accumulated        
    Shares     Amount     Shares     Amount     Capital     Deficit     Total  
Balance -March 31, 2024 as reported     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,224     $ (247,747 )   $ (61,141 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       6,133       6,133  
Cumulative adjustments to net income     -       -       -       -       -       240       240  
                                                         
Balance -March 31, 2024 as restated     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,224     $ (247,507 )   $ (54,768 )
                                                         
Balance -June 30, 2024 as reported     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,277     $ (245,685 )   $ (59,026 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       6,373       6,373  
Cumulative adjustments to net income     -       -       -       -       -       375       375  
                                                         
Balance -June 30, 2024 as restated     4,487,157     $ 406       110,759     $ (2,024 )   $ 188,277     $ (245,310 )   $ (52,278 )
                                                         
Balance -September 30, 2024 as reported     4,532,991     $ 406       128,196     $ (2,046 )   $ 188,363     $ (244,405 )   $ (57,682 )
                                                         
Cumulative adjustments to accumulated deficit in prior years     -       -       -       -       -       6,748       6,748  
Cumulative adjustments to net income     -       -       -       -       -       396       396  
                                                         
Balance -September 30, 2024 as restated     4,532,991     $ 406       128,196     $ (2,046 )   $ 188,363     $ (244,009 )   $ (50,538 )

 

 

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

 

    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
    For The Nine Months Ended September 30,  
    2024               2023  
    As Previously Reported     Restatement Amount     Restatement Reference   As Restated  
                       
Cash Flows From Operating Activities                            
Net income   $ 3,810     $ 1,011      (a)   $ 4,821  
Adjustments to reconcile net income to net cash                            
used in operating activities:                            
Depreciation and amortization     205       -           205  
Interest accretion expense     34       -           34  
Bad debt expense reversal     (100 )     -           (100 )
Credit loss expense     26       -           26  
Stock-based compensation     218       -           218  
Change in fair value of note payable     445       -           445  
Amortization on operating lease right of use asset     332                   332  
Other changes in operating assets and liabilities:                         -  
Accounts receivable     (2,336 )     95      (b)     (2,241 )
Other current assets     237       -           237  
Accounts payable     137       -           137  
Accrued salaries and bonus     (320 )     -           (320 )
Other accrued expenses     870       (1,106 )    (a)     (236 )
Operating lease liabilities     (355 )                 (355 )
Long-term liabilities     259       -           259  
Net cash provided by (used in) operating activities     3,462       -           3,462  
                             
Cash Flows From Investing Activity                            
Purchase of property and equipment     (747 )     -           (747 )
Net cash provided by investing activities     (747 )     -           (747 )
                             
Cash Flows From Financing Activities                            
Payments made on note payable     (4,100 )     -           (4,100 )
Net cash used in financing activities     (4,100 )     -           (4,100 )
                             
Net decrease in cash and cash equivalents     (1,385 )     -           (1,385 )
Cash and cash equivalents from continuing operations– beginning     3,498       -           3,498  
Cash and cash equivalents from discontinued operations– beginning     -       -           -  
Cash and cash equivalents – beginning   $ 3,498     $ -         $ 3,498  
Cash and cash equivalents from continuing operations– ending   $ 2,113     $ -         $ 2,113  
Cash and cash equivalents from discontinued operations– ending     -       -           -  
Cash and cash equivalents – ending   $ 2,113     $ -         $ 2,113