DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table presents the components of the consideration transferred at the Purchase Agreement Closing Date (in thousands):


Description	Purchase Consideration
Cash transferred	$	28,614
Carrying amount of the Company’s equity method investment in the JV	1,057
Transaction costs	8,446
Total	$	38,117

The following table presents the components of the purchase allocation (in thousands):


Description	Amount
Total consideration transferred	$	38,117
Cash received	(3,025)
Liabilities assumed	310
Acquired IPR&D	$	35,402

Schedule of Accounting Standards Update and Change in Accounting Principle

The following tables provide the impact of the correction on our previously issued condensed consolidated financial statements for the three and six months ended June 30, 2021.


Condensed Consolidated Statements of Operations	For the Three Months Ended June 30, 2021

	As Reported		Stock-based Compensation Adjustment		As Corrected
	(In thousands except share and per share data)
Selling, general and administrative expenses	$	22,911	$	(2,027)	$	20,884
Total operating expenses	24,703		(2,027)		22,676
Operating loss	(29,722)		2,027		(27,695)

Loss before income taxes and loss in equity method investments	(28,111)		2,027		(26,084)
Net loss	(28,674)		2,027		(26,647)

Net loss per share
Basic	$	(0.22)	$	0.02	$	(0.20)
Diluted	(0.22)		0.02		(0.20)


Condensed Consolidated Statements of Operations	For the Six Months Ended June 30, 2021

	As Reported		Stock-based Compensation Adjustment		As Corrected
	(In thousands except share and per share data)



Selling, general and administrative expenses	$	40,910	$	(4,124)	$	36,786
Total operating expenses	46,473		(4,124)		42,349
Operating loss	(55,265)		4,124		(51,141)

Income before income taxes and loss in equity method investments	62,554		4,124		66,678
Net income	61,338		4,124		65,462

Net income per share
Basic	$	0.47	$	0.03	$	0.50
Diluted	0.45		0.03		0.48
Weighted average number of shares outstanding

Diluted	135,021,296		62,531		135,083,827


Condensed Consolidated Statement of Stockholders’ Equity	For the Three Months Ended June 30, 2021

	As Reported		Stock-based Compensation Adjustment		As Corrected
	(In thousands)
Additional paid-in capital, Balance - March 31, 2021	$	416,308	$	2,027	$	418,335
Stock-based compensation	8,189		(2,027)		6,162
Accumulated deficit, Balance - March 31, 2021	(87,431)		(2,027)		(89,458)
Net loss	(28,674)		2,027		(26,647)


Condensed Consolidated Statement of Stockholders’ Equity	For the Six Months Ended June 30, 2021

	As Reported		Stock-based Compensation Adjustment		As Corrected
	(In thousands)
Additional paid-in capital - December 31, 2020	$	373,129	$	4,124	$	377,253
Stock-based compensation	14,742		(4,124)		10,618
Accumulated deficit - December 31, 2020	(177,443)		(4,124)		(181,567)
Net income	61,338		4,124		65,462


Condensed Consolidated Statement of Cash Flows	For the Six Months Ended June 30, 2021

	As Reported		Stock-based Compensation Adjustment		As Corrected
	(In thousands)
Cash flows from operating activities:
Net income	$	61,338	$	4,124	$	65,462
Adjustments to reconcile net income to net cash used for operating activities:
Stock-based compensation	14,742		(4,124)		10,618

Romeo Power, Inc. 10-Q