Business Context and Reporting Period
Company: Impinj, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 14, 2016
Subject: Non-reliance on previously issued financial statements due to a material error in the presentation of lease incentives.
Key Financial Metrics and Error Correction
This filing addresses a correction to the consolidated cash flow statement for the nine months ended September 30, 2015, which was inadvertently omitted from the Third Quarter 10-Q filed on November 7, 2016. The correction impacts the following metrics:
- Cash from Operating Activities: Adjusted from a use of $3.8 million to cash provided of $500,000.
- Cash Used in Investing Activities: Adjusted from a use of $2.6 million to a use of $7.0 million.
The filing text does not provide updated values for revenue, profit, margins, debt, or liquidity beyond the specific cash flow adjustments noted above.
Material Changes Versus Prior Period
The material change is the reclassification of lease incentives within the cash flow statement. This correction was originally identified during the preparation of the 2015 annual statements but was not reflected in the unaudited interim statements for the nine months ended September 30, 2015, as presented in the Third Quarter 10-Q.
Management Commentary, Risks, and Contingencies
Management Action: On November 11, 2016, management, in consultation with independent auditors PricewaterhouseCoopers LLP, concluded that the financial statements in the Third Quarter 10-Q should no longer be relied upon.
Audit Committee: The audit committee concurred with management's determination.
Remediation: An amendment to the Third Quarter 10-Q was filed concurrently with this 8-K to correct the error. No other amendments to the Third Quarter 10-Q are required.
Risks: The primary risk identified is the potential for investor reliance on incorrect cash flow data prior to this amendment.
Investor Verification Checklist
- Verify the amended Third Quarter 10-Q filed concurrently with this 8-K for the corrected cash flow statement.
- Confirm the impact of the lease incentive reclassification on the company's reported operating and investing cash flows for the nine months ended September 30, 2015.
- Review the "Management's Discussion and Analysis" section in the amended filing for updated commentary on cash flows.