| Schedule of Impact of New Accounting Pronouncements |
The following table presents the effect of the adoption of ASU 2014-09 on our consolidated balance sheet as of September 30, 2018 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018 |
|
Without ASC 606 Adoption |
|
Effect of Change Increase/ (Decrease) |
|
As Reported |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
31,731 |
|
|
— |
|
|
$ |
31,731 |
|
Restricted cash |
801 |
|
|
— |
|
|
801 |
|
Accounts receivable, net |
101,258 |
|
|
(1,580 |
) |
|
99,678 |
|
Inventories |
38,381 |
|
|
— |
|
|
38,381 |
|
Prepaid expenses |
16,141 |
|
|
— |
|
|
16,141 |
|
Other current assets |
17,261 |
|
|
— |
|
|
17,261 |
|
TOTAL CURRENT ASSETS |
205,573 |
|
|
(1,580 |
) |
|
203,993 |
|
Content library |
7,143 |
|
|
— |
|
|
7,143 |
|
Property, plant and equipment |
182,777 |
|
|
— |
|
|
182,777 |
|
Goodwill |
159,610 |
|
|
— |
|
|
159,610 |
|
Intangible assets, net |
92,210 |
|
|
— |
|
|
92,210 |
|
Equity method investments |
135,975 |
|
|
— |
|
|
135,975 |
|
Other non-current assets |
8,733 |
|
|
3,706 |
|
|
12,439 |
|
TOTAL ASSETS |
$ |
792,021 |
|
|
2,126 |
|
|
$ |
794,147 |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
168,974 |
|
|
(1,839 |
) |
|
$ |
167,135 |
|
Deferred revenue |
11,204 |
|
|
(312 |
) |
|
10,892 |
|
Current portion of long-term debt |
20,946 |
|
|
— |
|
|
20,946 |
|
Other current liabilities |
9,137 |
|
|
— |
|
|
9,137 |
|
TOTAL CURRENT LIABILITIES |
210,261 |
|
|
(2,151 |
) |
|
208,110 |
|
Deferred revenue, non-current |
1,116 |
|
|
— |
|
|
1,116 |
|
Long-term debt |
666,493 |
|
|
— |
|
|
666,493 |
|
Deferred tax liabilities |
7,776 |
|
|
— |
|
|
7,776 |
|
Other non-current liabilities |
30,573 |
|
|
— |
|
|
30,573 |
|
TOTAL LIABILITIES |
916,219 |
|
|
(2,151 |
) |
|
914,068 |
|
|
|
|
|
|
|
Preferred stock |
— |
|
|
— |
|
|
— |
|
Common stock |
10 |
|
|
— |
|
|
10 |
|
Treasury stock |
(30,659 |
) |
|
— |
|
|
(30,659 |
) |
Additional paid-in capital |
811,906 |
|
|
— |
|
|
811,906 |
|
Subscriptions receivable |
(597 |
) |
|
— |
|
|
(597 |
) |
Prior year accumulated deficit |
(773,791 |
) |
|
933 |
|
|
(772,858 |
) |
Current year retained deficit |
(130,767 |
) |
|
3,344 |
|
|
(127,423 |
) |
Accumulated other comprehensive loss |
(300 |
) |
|
— |
|
|
(300 |
) |
TOTAL STOCKHOLDERS' DEFICIT |
(124,198 |
) |
|
4,277 |
|
|
(119,921 |
) |
TOTAL LIABILTIES & STOCKHOLDERS' DEFICIT |
$ |
792,021 |
|
|
2,126 |
|
|
$ |
794,147 |
|
The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statements of operations for the three months ended September 30, 2018 (in thousands, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2018 |
|
Without ASC 606 Adoption |
|
Effect of Change Increase/ (Decrease) |
|
As Reported |
Revenue: |
|
|
|
|
|
Licensing and services |
$ |
158,713 |
|
|
(1,109 |
) |
|
$ |
157,604 |
|
Equipment |
4,772 |
|
|
1,651 |
|
|
6,423 |
|
Total revenue |
163,485 |
|
|
542 |
|
|
164,027 |
|
Cost of Sales |
|
|
|
|
|
Cost of sales: |
|
|
|
|
|
Licensing and services |
123,623 |
|
|
(497 |
) |
|
123,126 |
|
Equipment |
5,408 |
|
|
35 |
|
|
5,443 |
|
Total cost of sales |
129,031 |
|
|
(462 |
) |
|
128,569 |
|
Gross Margin |
34,454 |
|
|
1,004 |
|
|
35,458 |
|
Operating expenses: |
|
|
|
|
|
Sales and marketing |
8,979 |
|
|
10 |
|
|
8,989 |
|
Product development |
7,597 |
|
|
(120 |
) |
|
7,477 |
|
General and administrative |
31,612 |
|
|
8 |
|
|
31,620 |
|
Provision for legal settlements |
(509 |
) |
|
— |
|
|
(509 |
) |
Amortization of intangible assets |
9,447 |
|
|
— |
|
|
9,447 |
|
Goodwill impairment |
— |
|
|
— |
|
|
— |
|
Total operating expenses |
57,126 |
|
|
(102 |
) |
|
57,024 |
|
Loss from operations |
(22,672 |
) |
|
1,106 |
|
|
(21,566 |
) |
Other income (expense): |
|
|
|
|
|
|
Interest expense, net |
(20,048 |
) |
|
— |
|
|
(20,048 |
) |
Income from equity method investments |
2,022 |
|
|
— |
|
|
2,022 |
|
Change in fair value of derivatives |
(196 |
) |
|
— |
|
|
(196 |
) |
Other expense, net |
(588 |
) |
|
— |
|
|
(588 |
) |
Loss before income taxes |
(41,482 |
) |
|
1,106 |
|
|
(40,376 |
) |
Income tax expense |
2,852 |
|
|
— |
|
|
2,852 |
|
Net loss |
$ |
(44,334 |
) |
|
1,106 |
|
|
$ |
(43,228 |
) |
|
|
|
|
|
|
Net loss per share – basic and diluted |
(0.49 |
) |
|
|
|
(0.47 |
) |
Weighted average shares outstanding – basic and diluted |
$ |
91,408 |
|
|
|
|
$ |
91,408 |
|
The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statements of operations for the nine months ended September 30, 2018 (in thousands, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018 |
|
Without ASC 606 Adoption |
|
Effect of Change Increase/ (Decrease) |
|
As Reported |
Revenue: |
|
|
|
|
|
Licensing and services |
$ |
461,931 |
|
|
(1,371 |
) |
|
$ |
460,560 |
|
Equipment |
24,365 |
|
|
1,562 |
|
|
25,927 |
|
Total revenue |
486,296 |
|
|
191 |
|
|
486,487 |
|
Cost of Sales |
|
|
|
|
|
|
Cost of sales: |
|
|
|
|
|
|
Licensing and services |
358,862 |
|
|
(1,339 |
) |
|
357,523 |
|
Equipment |
15,794 |
|
|
65 |
|
|
15,859 |
|
Total cost of sales |
374,656 |
|
|
(1,274 |
) |
|
373,382 |
|
Gross Margin |
111,640 |
|
|
1,465 |
|
|
113,105 |
|
Operating expenses: |
|
|
|
|
|
|
Sales and marketing |
29,477 |
|
|
22 |
|
|
29,499 |
|
Product development |
27,439 |
|
|
(1,903 |
) |
|
25,536 |
|
General and administrative |
100,382 |
|
|
2 |
|
|
100,384 |
|
Provision for legal settlements |
(134 |
) |
|
— |
|
|
(134 |
) |
Amortization of intangible assets |
30,367 |
|
|
— |
|
|
30,367 |
|
Goodwill impairment |
— |
|
|
— |
|
|
— |
|
Total operating expenses |
187,531 |
|
|
(1,879 |
) |
|
185,652 |
|
Loss from operations |
(75,891 |
) |
|
3,344 |
|
|
(72,547 |
) |
Other income (expense): |
|
|
|
|
|
|
Interest expense, net |
(55,399 |
) |
|
— |
|
|
(55,399 |
) |
Income from equity method investments |
3,611 |
|
|
— |
|
|
3,611 |
|
Change in fair value of derivatives |
(287 |
) |
|
— |
|
|
(287 |
) |
Other expense, net |
(936 |
) |
|
— |
|
|
(936 |
) |
Loss before income taxes |
(128,902 |
) |
|
3,344 |
|
|
(125,558 |
) |
Income tax expense |
1,865 |
|
|
— |
|
|
1,865 |
|
Net loss |
$ |
(130,767 |
) |
|
3,344 |
|
|
$ |
(127,423 |
) |
|
|
|
|
|
|
Net loss per share – basic and diluted |
$ |
(1.44 |
) |
|
|
|
$ |
(1.40 |
) |
Weighted average shares outstanding – basic and diluted |
91,101 |
|
|
|
|
91,101 |
|
|
| Schedule of Disaggregation of Revenue |
The following table represents a disaggregation of our revenue from contracts with customers for the three and nine months ended September 30, 2018 and 2017 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
|
|
Media & Content |
|
|
|
|
|
|
|
Licensing & Services |
$ |
80,649 |
|
|
$ |
71,348 |
|
|
$ |
239,020 |
|
|
$ |
222,294 |
|
Total Media & Content |
80,649 |
|
|
71,348 |
|
|
239,020 |
|
|
222,294 |
|
|
|
|
|
|
|
|
|
Connectivity |
|
|
|
|
|
|
|
Aviation Services |
$ |
31,113 |
|
|
$ |
27,028 |
|
|
$ |
89,862 |
|
|
$ |
84,661 |
|
Aviation Equipment |
3,464 |
|
|
6,127 |
|
|
17,773 |
|
|
19,845 |
|
Maritime & Land Services |
45,842 |
|
|
45,234 |
|
|
131,678 |
|
|
126,445 |
|
Maritime & Land Equipment |
2,959 |
|
|
1,800 |
|
|
8,154 |
|
|
6,626 |
|
Total Connectivity |
83,378 |
|
|
80,189 |
|
|
247,467 |
|
|
237,577 |
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
164,027 |
|
|
$ |
151,537 |
|
|
$ |
486,487 |
|
|
$ |
459,871 |
|
|