Amended Quarterly Report (10-q/a)

Date : 08/15/2019 @ 8:26PM
Source : Edgar (US Regulatory)
Stock : BroadVision Inc (BVSN)
Quote : 2.5  -0.04 (-1.57%) @ 4:11PM

Amended Quarterly Report (10-q/a)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

 

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

OR



 

 

 

 

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transaction period from _________ to __________

Commission File Number 001-34205

BROADVISION, INC.

(Exact name of registrant as specified in its charter)



 

 

 

 

 

Delaware

 

94-3184303

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

460 Seaport Ct., Suite 102

 

94063

Redwood City, California

 

 

(Address of principal executive offices)

 

(Zip code)

(650) 331-1000

(Registrant's telephone number, including area code)

 

  Securities registered pursuant to Section 12(b) of the Act:





 

 

 Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.0001 per share

BVSN

Nasdaq Capital Market



Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes   No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 





 

Large accelerated filer           

Accelerated filer        

Non-accelerated filer

Smaller reporting company



Emerging growth company



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes   No



As of April 30, 2019, the registrant had 5,058,601 shares of common stock outstanding.


 

EXPLANATORY NOTE



This Form 10-Q/A (Amendment No. 1) (the “Amended Report”) for BroadVision, Inc. is being filed to correct certain accounting errors related to the establishment of Vmoso, Inc. (“VMSO”) and its consolidation by the Company as a variable interest entity in “Item 1. Financial Statements” and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the period ended March 31, 2019, initially filed with the Securities and Exchange Commission on May 15, 2019 (the “Original Report”). These matters are further described in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 1 to our Condensed Consolidated Financial Statements included herein.



In connection with our quarterly consolidated financial statement close and preparation of our Quarterly Report for the second quarter of 2019, misstatements were identified in the consolidated financial statements for the quarter ended March 31, 2019 included in the Original Report. On August 12, 2019, the Audit Committee of our Board of Directors, after consulting with our management and discussing with our independent registered public accounting firm, concluded that it was necessary to amend and restate our previously filed unaudited interim consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and that such financial statements should no longer be relied upon. Further, our disclosures related to such consolidated financial statements and related communication issued by or on behalf of our Company with respect to the quarter ended March 31, 2019, including our management’s assessment of internal control over financial reporting as of March 31, 2019, should also no longer be relied upon. The determination to restate our March 31, 2019 consolidated financial statements was made as a result of errors related to a complex accounting transaction. When the Company accounted for the  transfer of assets to VMSO, it included the following errors to the consolidated financial statements: (i) an overstatement of total assets and understatement of net losses by recording a $745,000 intangible asset from the transfer of its intellectual property to VMSO in the Condensed Consolidated Balance Sheet and inappropriately recognizing a non-cash gain on the transaction of $745,000, which was reported as a component of Other Income, Net in the Condensed Consolidated Statement of Comprehensive Loss and (ii) a misstatement of net losses allocated to the non-controlling interest from VMSO, a consolidated VIE, and the associated allocation of stockholders’ equity to the non-controlling interest and overstatement of stockholders’ equity by $745,000. The Company should not have recorded an intangible asset in VMSO and should not have recognized a $745,000 non-cash gain on its Condensed Consolidated Statement of Comprehensive Loss as of and for the period ended March 31, 2019, as the transaction should have been accounted for as a common control transaction. The allocation of net loss and stockholders’ equity to the non-controlling interest should have been calculated using the proportionate fair value of equity ownership of VMSO. These errors also impacted the Net Loss amount and the basic and diluted net loss per share amount in the Condensed Consolidated Statement of Comprehensive Loss and in the Condensed Consolidated Statement of Stockholders’ Equity.



The following sections in the Original Report are revised in this Form 10-Q/A, solely as a result of, and to reflect, the restatement and conditions related to the restatement:



Part I - Item 1 - Financial Statements

Part I - Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

Part I - Item 4 - Controls and Procedures

Part II - Item 1A - Risk Factors

Part II - Item 6 - Exhibits



Pursuant to the rules of the SEC, Part II, Item 6 of the Original Report has been amended to include the currently-dated certifications from the Company’s principal executive officer and interim principal financial officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. The certifications of the principal executive officer and principal financial officer are included in this Form 10-Q/A as Exhibits 31.1 and 32.1.



For the convenience of the reader, this Form 10-Q/A sets forth the information in the Original Report in its entirety; as such information is modified and superseded where necessary to reflect the restatement. Except as it relates to the restatement described above and related disclosures, this Form 10-Q/A does not reflect events occurring after the date of the Original Report.



 

 

 


 

BROADVISION, INC. AND SUBSIDIARIES

 

FORM 10-Q/A

 

Quarter Ended March 31, 2019

 

TABLE OF CONTENTS





 



 

PART I. FINANCIAL INFORMATION

 



 

 Item 1 .   Financial Statements

 

 Condensed Consolidated Balance Sheets at March 31, 2019 (unaudited) and December 31, 2018

1

 Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2019 and 2018 (unaudited)

2

 Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2019 and 2018 (unaudited)

3

 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018 (unaudited)

4

 Notes to Condensed Consolidated Financial Statements (unaudited)

5

 Item 2 .   Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

 Item 3 .   Quantitative and Qualitative Disclosures About Market Risk

27

 Item 4 .   Controls and Procedures

28



 

PART II.  OTHER INFORMATION

 



 

 Item 1 .   Legal Proceedings

29

 Item 1A . Risk Factors

29

 Item 2 .   Unregistered Sales of Equity Securities and Use of Proceeds

42

 Item 3 .   Defaults Upon Senior Securities

42

 Item 4 .   Mine Safety Disclosures

42

 Item 5 .   Other Information

42

 Item 6 .   Exhibits

43



 

 SIGNATURES

44



 

 EXHIBIT 31.1

 

 EXHIBIT 32.1

 







 

 

 


 

 



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value amounts)











 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2019

 

2018



 

 

Restated
(See Note 1)

 

 

 

ASSETS

 

 

(unaudited)

 

 

(See Note 1)

Current assets:

 

 

 

 

 

 

Cash and cash equivalents (amounts related to VIE of $3,005 and $0
as of June 30, 2019 and December 31, 2018, respectively)

 

$

5,671 

 

$

2,574 

Accounts receivable, net of reserves of $120 and $193 as of March 31, 2019

 

 

 

 

 

 

and December 31, 2018, respectively

 

 

525 

 

 

476 

Prepaids and other

 

 

699 

 

 

692 

Total current assets

 

 

6,895 

 

 

3,742 

Property and equipment, net

 

 

14 

 

 

15 

 Operating lease right-of-use assets

 

 

100 

 

 

 -

 Intangible assets

 

 

 -

 

 

 -

 Other assets

 

 

94 

 

 

96 

Total assets

 

$

7,103 

 

$

3,853 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

537 

 

$

256 

Accrued expenses

 

 

807 

 

 

847 

Operating lease liabilities – current

 

 

80 

 

 

 -

Unearned revenue

 

 

804 

 

 

449 

Deferred maintenance

 

 

600 

 

 

337 

Total current liabilities

 

 

2,828 

 

 

1,889 

Other non-current liabilities

 

 

623 

 

 

563 

Total liabilities

 

 

3,451 

 

 

2,452 



 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value; 1,000 shares authorized; none issued and

 

 

 

 

 

 

outstanding

 

 

 

 

 

 

Common stock, $0.0001 par value; 11,200 shares authorized; 5,059 and 5,057 shares issued

 

 

 -

 

 

 -

and outstanding as of March 31, 2019 and December 31, 2018, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

1,271,969 

 

 

1,271,949 

Accumulated other comprehensive loss

 

 

(1,339)

 

 

(1,435)

Accumulated deficit

 

 

(1,269,402)

 

 

(1,269,113)

Total stockholders’ equity before noncontrolling interest

 

 

1,228 

 

 

1,401 

Noncontrolling interest

 

 

2,426 

 

 

 -

Total stockholders’ equity

 

 

3,654 

 

 

1,401 

Total liabilities and stockholders’ equity

 

$

7,103 

 

$

3,853 



 

 

 

 

 

 









 

 

 

 

 

 



See Accompanying Notes to Condensed Consolidated Financial Statements.



 

1

 


 

 

 

BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except per share amounts)

(Unaudited)











 

 

 

 

 

 



 

Three Months Ended



 

March 31,



 

 

2019

 

2018



 

 

Restated
(See Note 1)

 

 

 

Revenues:

 

 

 

 

 

 

Software licenses

 

$

573 

 

$

925 

Services

 

 

495 

 

 

678 

Total revenues

 

 

1,068 

 

 

1,603 

Cost of revenues:

 

 

 

 

 

 

Cost of software revenues

 

 

 

 

33 

Cost of services

 

 

272 

 

 

550 

Total cost of revenues

 

 

273 

 

 

583 

Gross profit

 

 

795 

 

 

1,020 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

661 

 

 

1,403 

Sales and marketing

 

 

302 

 

 

566 

General and administrative

 

 

610 

 

 

741 

Total operating expenses

 

 

1,573 

 

 

2,710 

Operating loss

 

 

(778)

 

 

(1,690)

Interest income, net

 

 

10 

 

 

16 

Other income, net

 

 

(91)

 

 

183 

Loss before income taxes

 

 

(859)

 

 

(1,491)

Income tax expense

 

 

(4)

 

 

(1)

Net loss

 

 

(863)

 

 

(1,492)

Net loss attributable to noncontrolling interest

 

 

(574)

 

 

 -

Net loss attributable to BroadVision

 

$

(289)

 

$

(1,492)



 

 

 

 

 

 

Net loss per share, basic and diluted:

 

 

 

 

 

 

Basic and diluted net loss per share attributable to BroadVision

 

$

(0.06)

 

$

(0.30)

Shares used in computing:

 

 

 

 

 

 

Weighted average shares, basic and diluted

 

 

5,002 

 

 

4,995 



 

 

 

 

 

 

Other comprehensive (loss) gain, net of tax:

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

96 

 

 

(182)

Comprehensive loss

 

 

(193)

 

 

(1,674)

Less: comprehensive income attributable to noncontrolling interest

 

 

 -

 

 

 -

Comprehensive loss attributable to BroadVision

 

 

(193)

 

$

(1,674)







 

 

 

 

 

 

 

 

 

 

 

 

 






See Accompanying Notes to Condensed Consolidated Financial Statements.



 

2

 


 

 

BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, Unaudited)











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Additional

 

Other

 

 

 

 

 

 

 

 

 

 

 

Total



 

 

 

 

 

 

 

Paid-in

 

Comprehensive

 

Accumulated

 

 

 

 

Noncontrolling

 

 

Stockholders'



 

Shares

 

Amount

 

Capital

 

Loss

 

Deficit

 

Total

 

Interest

 

 

Equity

Balances as of December 31, 2018

 

 

5,057 

 

$

 -

 

$

1,271,949 

 

$

(1,435)

 

$

(1,269,113)

 

$

1,401 

 

$

 -

 

$

1,401 

 

Contribution from noncontrolling
interest

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

3,000 

 

 

3,000 

 

Net loss

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

(289)

 

 

(289)

 

 

(574)

 

 

(863)

 

Other comprehensive income

 

 

 

 

 

 -

 

 

 -

 

 

96 

 

 

 -

 

 

96 

 

 

 -

 

 

96 

 

Stock-based compensation

 

 

 

 

 

 -

 

 

18 

 

 

 -

 

 

 -

 

 

18 

 

 

 -

 

 

18 

 

Issuance of common stock
under employee stock purchase plan

 

 

 

 

 -

 

 

 

 

 -

 

 

 -

 

 

 

 

 -

 

 

 

Balances as of March 31, 2019
(Restated, See Note 1)

 

 

5,059 

 

$

 -

 

$

1,271,969 

 

$

(1,339)

 

$

(1,269,402)

 

$

1,228 

 

$

2,426 

 

$

3,654 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of December 31, 2017

 

 

4,995 

 

$

 -

 

$

1,271,585 

 

$

(1,558)

 

$

(1,262,718)

 

$

7,309 

 

$

 -

 

$

7,309 

 

Net loss

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

(1,492)

 

 

(1,492)

 

 

 -

 

 

(1,492)

 

Other comprehensive loss

 

 

 

 

 

 -

 

 

 -

 

 

(182)

 

 

 -

 

 

(182)

 

 

 -

 

 

(182)

 

Stock-based compensation

 

 

 

 

 

 -

 

 

126 

 

 

 -

 

 

 -

 

 

126 

 

 

 -

 

 

126 

 

Issuance of common stock under
employee stock purchase plan

 

 

 

 

 -

 

 

 

 

 -

 

 

 -

 

 

 

 

 -

 

 

 

Cumulative effect of adoption of ASC 606

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

605 

 

 

605 

 

 

 -

 

 

605 

 

Balances as of March 31, 2018

 

 

4,997 

 

$

 -

 

$

1,271,716 

 

$

(1,740)

 

$

(1,263,605)

 

$

6,371 

 

$

 -

 

$

6,371 

 



























See Accompanying Notes to Condensed Consolidated Financial Statements





3

 


 

 

BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, Unaudited)









 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

March 31,



 

2019

 

2018



 

 

Restated
(See Note 1)

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(863)

 

$

(1,492)

Depreciation and amortization

 

 

 

 

Stock-based compensation

 

 

18 

 

 

126 

Provision of receivable reserves

 

 

(73)

 

 

(70)

Cumulative effect of accounting changes

 

 

 -

 

 

605 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

24 

 

 

545 

Prepaids and other

 

 

(7)

 

 

(166)

Operating lease right-of-use assets

 

 

(100)

 

 

 -

Other non-current assets

 

 

 

 

(14)

Accounts payable and accrued expenses

 

 

243 

 

 

(383)

Operating lease liabilities - current

 

 

80 

 

 

 -

Unearned revenue and deferred maintenance

 

 

618 

 

 

(611)

Other noncurrent liabilities

 

 

58 

 

 

(30)

Net cash provided by (used for) operating activities

 

 

 

 

(1,484)

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

 -

 

 

(3)

Net cash used for investing activities

 

 

 -

 

 

(3)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from issuance of common stock, net

 

 

3,000 

 

 

Proceeds from exercise of common stock options, net

 

 

 -

 

 

 -

Net cash provided by financing activities

 

 

3,000 

 

 

Effect of exchange rates on cash and cash equivalents

 

 

96 

 

 

(182)

Net increase (decrease) in cash and cash equivalents

 

 

3,097 

 

 

(1,664)

Cash and cash equivalents at beginning of period

 

 

2,574 

 

 

8,560 

Cash and cash equivalents at end of period

 

$

5,671 

 

$

6,896 





 



 

 

 

 

 

 






  See Accompanying Notes to Condensed Consolidated Financial Statements.

 

4

 


 

 

BROADVISION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  (Unaudited)



Note 1. O rganization and Summary of Significant Accounting Policies



BroadVision, Inc. was incorporated in the state of Delaware on May 13, 1993, and has been a publicly traded corporation since 1996. We develop, market, and support enterprise portal applications that enable companies to unify their e-business infrastructure and conduct both interactions and transactions with employees, partners, and customers through a personalized self-service model that increases revenues, reduces costs, and improves productivity.



Except where specifically noted or the context otherwise requires, the use of terms such as the “Company”, “BroadVision,” “we” and “our” in these Notes to Condensed Consolidated Financial Statements refers to BroadVision, Inc. and its subsidiaries.



Restatement



In August 2019, the Company identified the following errors in its condensed consolidated financial statements for the quarter ended March 31, 2019:



(i) an overstatement of total assets and understatement of net losses by recording a $745,000 intangible asset from the transfer of its intellectual property and other assets to Vmoso, Inc. (“VMSO”) in the Condensed Consolidated Balance Sheet and inappropriately recognizing a non-cash gain of $745,000, which was reported as a component of Other Income, Net in the Condensed Consolidated Statement of Comprehensive Loss. The Company should not have recorded an intangible asset in VMSO and should not have recognized the $745,000 non-cash gain, as the transaction should have been accounted for as a common control transaction, and



(ii) understatements of net loss and basic and diluted net loss per share, and overstatements of stockholders’ equity and stockholders’ equity allocated to the non-controlling interest in VMSO.  The Company incorrectly calculated the ownership interest of the non-controlling shareholder of VMSO and the resulting allocation of net loss, basic and diluted net loss per share, and stockholders’ equity to the non-controlling interest.



The combined effect of these two errors resulted in an overstatement of net income attributable to BroadVision of $891,000 . These errors also impacted the net loss amount in the Condensed Consolidated Statement of Comprehensive Loss and in the Condensed Consolidated Statement of Stockholders’ Equity.



Please see the tables below for further details regarding the above-mentioned restatement adjustments. In conjunction with the restatement, the Company determined that it would be appropriate, within this Form 10-Q/A, to reflect these adjustments as of and for the three months ended March 31, 2019.



5

 


 

 

The following tables present the Company's condensed consolidated balance sheet as previously reported, restatement adjustments and the condensed consolidated balance sheet as restated as of March 31, 2019 (in thousands except per share data):



BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

March 31, 2019  (Unaudited)



 

As Previously
Reported

 

Adjustments

 

As Restated



 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (amounts related to VIE of $3,005 and $0 as of

 

$

5,671 

 

$

 -

 

$

5,671 

June 30, 2019 and December 31, 2018, respectively)

 

 

 

 

 

 

 

 

 

Accounts receivable, net of reserves of $120 and $193 as of March 31, 2019

 

 

 

 

 

 -

 

 

 -

and December 31, 2018, respectively

 

 

525 

 

 

 -

 

 

525 

Prepaids and other

 

 

699 

 

 

 -

 

 

699 

Total current assets

 

 

6,895 

 

 

 -

 

 

6,895 

Property and equipment, net

 

 

14 

 

 

 -

 

 

14 

Operating lease right-of-use assets

 

 

100 

 

 

 -

 

 

100 

Intangible assets

 

 

745 

 

 

(745)

(A)

 

 -

Other assets

 

 

94 

 

 

 -

 

 

94 

Total assets

 

$

7,848 

 

$

(745)

 

$

7,103 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

537 

 

$

 -

 

$

537 

Accrued expenses

 

 

807 

 

 

 -

 

 

807 

Operating lease liabilities – current

 

 

80 

 

 

 -

 

 

80 

Unearned revenue

 

 

804 

 

 

 -

 

 

804 

Deferred maintenance

 

 

600 

 

 

 -

 

 

600 

Total current liabilities

 

 

2,828 

 

 

 -

 

 

2,828 

Other non-current liabilities

 

 

622 

 

 

 

 

623 

Total liabilities

 

 

3,450 

 

 

 

 

3,451 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value; 1,000 shares authorized;

 

 

 

 

 

 

 

 

 

none issued and outstanding

 

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 11,200 shares authorized; 5,059 and 5,057 shares

 

 

 -

 

 

 -

 

 

 -

issued and outstanding as of March 31, 2019 and December 31, 2018, respectively

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

1,271,969 

 

 

 -

 

 

1,271,969 

Accumulated other comprehensive loss

 

 

(1,339)

 

 

 -

 

 

(1,339)

Accumulated deficit

 

 

(1,268,511)

 

 

(891)

 

 

(1,269,402)

Total stockholders’ equity before noncontrolling interest

 

 

2,119 

 

 

(891)

 

 

1,228 

Noncontrolling interest

 

 

2,279 

 

 

147 

 

 

2,426 

Total stockholders’ equity

 

 

4,398 

 

 

(744)

 

 

3,654 

Total liabilities and stockholders’ equity

 

$

7,848 

 

$

(745)

 

$

7,103 



(A)

The Company should not have recorded an intangible asset in VMSO and should not have recognized the $745,000 non-cash gain, as the transaction should have been accounted for as a common control transaction (see the details above under the Restatement subheading).



6

 


 

 

The following tables present the Company's condensed consolidated statement of comprehensive loss as previously reported, restatement adjustments and the condensed consolidated statement of comprehensive loss as restated for the three months ended March 31, 2019 (in thousands except per share data):



BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Three Months Ended March 31, 2019 (Unaudited)



 

As Previously
Reported

 

Adjustments

 

As Restated



 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Software licenses

 

$

573 

 

$

 -

 

$

573 

Services

 

 

495 

 

 

 -

 

 

495 

Total revenues

 

 

1,068 

 

 

 -

 

 

1,068 

Cost of revenues:

 

 

 

 

 

 

 

 

 

Cost of software revenues

 

 

 

 

 -

 

 

Cost of services

 

 

272 

 

 

 -

 

 

272 

Total cost of revenues

 

 

273 

 

 

 -

 

 

273 

Gross profit

 

 

795 

 

 

 -

 

 

795 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

 

661 

 

 

 -

 

 

661 

Sales and marketing

 

 

302 

 

 

 -

 

 

302 

General and administrative

 

 

610 

 

 

 -

 

 

610 

Total operating expenses

 

 

1,573 

 

 

 -

 

 

1,573 

Operating loss

 

 

(778)

 

 

 -

 

 

(778)

Interest income, net

 

 

10 

 

 

 -

 

 

10 

Other income (expense), net

 

 

653 

 

 

(744)

(A)

 

(91)

Loss before income taxes

 

 

(115)

 

 

(744)

 

 

(859)

Income tax expense

 

 

(4)

 

 

 -

 

 

(4)

Net loss

 

 

(119)

 

 

(744)

 

 

(863)

Net loss attributable to noncontrolling interest

 

 

(721)

 

 

147 

(B)

 

(574)

Net income (loss) attributable to BroadVision

 

$

602 

 

$

(891)

 

$

(289)



 

 

 

 

 

 

 

 

 

Basic and diluted net income (loss) per share attributable to BroadVision

 

$

0.12 

 

$

(0.18)

 

$

(0.06)

Shares used in computing:

 

 

 

 

 

 

 

 

 

Weighted average shares, basic

 

 

5,002 

 

 

 

 

 

5,002 

Weighted average shares, diluted

 

 

5,018 

 

 

 

 

 

5,002 



 

 

 

 

 

 

 

 

 

Other comprehensive (loss) gain, net of tax:

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

96 

 

 

 -

 

 

96 

Comprehensive income (loss)

 

 

698 

 

 

(891)

 

 

(193)

Less: comprehensive income attributable to noncontrolling interest

 

 

 -

 

 

 -

 

 

 -

Comprehensive income (loss) attributable to BroadVision

 

$

698 

 

$

(891)

 

$

(193)



(A)

The Company should not have recorded an intangible asset in VMSO and should not have recognized the $745,000 non-cash gain, as the transaction should have been accounted for as a common control transaction, adjusted for rounding (see the details above under the Restatement subheading).

(B)

The Company incorrectly calculated the ownership interest of the non-controlling shareholder of VMSO and the allocation of net loss and basic and diluted net loss per share to the non-controlling interest (see the details above under the Restatement subheading).



7

 


 

 

The following tables present the Company's condensed consolidated statement of stockholders’ equity as previously reported, restatement adjustments and the statement of stockholders’ equity as restated as of March 31, 2019 (in thousands):



BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Additional

 

Accumulated
Other

 

 

 

 

 

 

 

 

 

 

 

Total



 

 

 

 

 

 

 

Paid-in

 

Comprehensive

 

Accumulated

 

 

 

 

Noncontrolling

 

 

Stockholders'

As Previously Reported

 

Shares

 

Amount

 

Capital

 

Loss

 

Deficit

 

Total

 

Interest

 

 

Equity

Balances as of December 31, 2018

 

 

5,057 

 

$

 -

 

$

1,271,949 

 

$

(1,435)

 

$

(1,269,113)

 

$

1,401 

 

$

 -

 

$

1,401 

 

Contribution from noncontrolling interest

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

3,000 

 

 

3,000 

 

Net loss

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

602 

 

 

602 

 

 

(721)

 

 

(119)

 

Other comprehensive income

 

 

 -

 

 

 -

 

 

 -

 

 

96 

 

 

 -

 

 

96 

 

 

 -

 

 

96 

 

Stock-based compensation

 

 

 -

 

 

 -

 

 

18 

 

 

 -

 

 

 -

 

 

18 

 

 

 -

 

 

18 

 

Issuance of common stock under employee stock purchase plan

 

 

 

 

 -

 

 

 

 

 -

 

 

 -

 

 

 

 

 -

 

 

 

Balances as of March 31, 2019

 

 

5,059 

 

$

 -

 

$

1,271,969 

 

$

(1,339)

 

$

(1,268,511)

 

$

2,119 

 

$

2,279 

 

$

4,398 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of December 31, 2018

 

 

 

 

$

 -

 

$

 

 

$

 

 

$

 

 

$

 -

 

$

 -

 

$

 -

 

Net loss

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

(891)

 

 

(891)

 

 

147 

 

 

(744)

 

Other comprehensive income

 

 

 

 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Stock-based compensation

 

 

 

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Issuance of common stock under employee stock purchase plan

 

 

 

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Balances as of March 31, 2019

 

 

 -

 

$

 -

 

$

 -

 

$

 -

 

$

(891)

 

$

(891)

 

$

147 

 

$

(744)

 

As Restated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of December 31, 2018

 

 

5,057 

 

$

 -

 

$

1,271,949 

 

$

(1,435)

 

$

(1,269,113)

 

$

1,401 

 

$

 -

 

$

1,401 

 

Contribution from noncontrolling interest

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

3,000 

 

 

3,000 

 

Net loss

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

(289)

 

 

(289)

 

 

(574)

 

 

(863)

 

Other comprehensive income

 

 

 -

 

 

 -

 

 

 -

 

 

96 

 

 

 -

 

 

96 

 

 

 -

 

 

96 

 

Stock-based compensation

 

 

 -

 

 

 -

 

 

18 

 

 

 -

 

 

 -

 

 

18 

 

 

 -

 

 

18 

 

Issuance of common stock under employee stock purchase plan

 

 

 

 

 -

 

 

 

 

 -

 

 

 -

 

 

 

 

 -

 

 

 

Balances as of March 31, 2019

 

 

5,059 

 

$

 -

 

$

1,271,969 

 

$

(1,339)

 

$

(1,269,402)

 

$

1,228 

 

$

2,426 

 

$

3,654 

 



8

 


 

 

The following tables present the Company's condensed consolidated cash flow statement as previously reported, restatement adjustments and the cash flow statement as restated for the three months ended March 31, 2019 (in thousands):



BROADVISION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Three Months Ended March 31, 2019 (Unaudited)



 

As Previously
Reported

 

Adjustments

 

As Restated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(119)

 

$

(744)

 

$

(863)

Depreciation and amortization

 

 

 

 

 -

 

 

Gain on transfer of intellectual property

 

 

(745)

 

 

745 

 

 

 -

Stock-based compensation

 

 

18 

 

 

 -

 

 

18 

Provision of receivable reserves

 

 

(73)

 

 

 -

 

 

(73)

Accumulated effect on accounting changes

 

 

 -

 

 

 -

 

 

 -

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

24 

 

 

 -

 

 

24 

Prepaids and other

 

 

(7)

 

 

 -

 

 

(7)

Operating lease right-of-use assets

 

 

(100)

 

 

 -

 

 

(100)

Other non-current assets

 

 

 

 

 -

 

 

Accounts payable and accrued expenses

 

 

243 

 

 

 -

 

 

243 

Operating lease liabilities - current

 

 

80 

 

 

 -

 

 

80 

Unearned revenue and deferred maintenance

 

 

618 

 

 

 -

 

 

618 

Other non-current liabilities

 

 

59 

 

 

(1)

 

 

58 

Net cash provided by operating activities

 

 

 

 

 -

 

 

Cash flows from investing activities: