Business Context and Reporting Period
This Form 8-K/A is an amendment filed by OrthoPediatrics Corp. on March 15, 2018, regarding the company's financial results for the quarter and fiscal year ended December 31, 2017. The filing corrects a mathematical error in the original earnings release issued on March 7, 2018.
Key Financial Metrics and Corrections
The filing does not provide updated revenue, profit, cash flow, or debt figures. It specifically addresses corrections to net loss attributable to common stockholders and weighted average shares, which impacted the reported net loss per share.
| Metric | Period | Originally Reported | Corrected Amount |
|---|---|---|---|
| Net Loss Attributable to Common Stockholders | Three Months Ended Dec 31, 2017 | $(21,043) | $(15,078) |
| Net Loss Attributable to Common Stockholders | Fiscal Year Ended Dec 31, 2017 | $(29,465) | $(23,530) |
| Weighted Average Common Shares (Basic & Diluted) | Three Months Ended Dec 31, 2017 | 4,831,991 | 10,731,478 |
| Weighted Average Common Shares (Basic & Diluted) | Fiscal Year Ended Dec 31, 2017 | 4,817,079 | 4,017,330 |
| Net Loss Per Share (Basic & Diluted) | Three Months Ended Dec 31, 2017 | $(4.35) | $(1.41) |
| Net Loss Per Share (Basic & Diluted) | Fiscal Year Ended Dec 31, 2017 | $(6.12) | $(5.86) |
Material Changes and Error Explanation
The discrepancy arose from the accounting treatment of accrued dividends reversed upon the conversion of Series B redeemable convertible preferred stock during the company's IPO. The error affected the calculation of weighted average shares and subsequently the net loss per share. The filing states that this amendment does not modify or update any other disclosure contained in the Initial Form 8-K.
Outlook and Risks
The filing contains no new guidance, outlook, or management commentary beyond the correction of the mathematical error. The company notes it is an emerging growth company. The corrected figures have been incorporated into the Annual Report on Form 10-K filed on March 15, 2018.
Investor Verification Checklist
- Verify the corrected net loss per share figures of $(1.41) for the quarter and $(5.86) for the fiscal year in the company's Form 10-K.
- Confirm the corrected weighted average share counts, particularly the significant increase to 10,731,478 for the three-month period.
- Review the original March 7, 2018 press release to understand the context of the unaudited financial statements being amended.
- Note that no other financial metrics (revenue, operating expenses, cash flow) were altered by this amendment.