“This decrease was primarily due to a decline in sales of $0.4 million, an increase in cost of goods sold of $0.1 million, an increase in interest expense of $0.42 million and a reduction of other income of $0.3 million, offset by a decrease in general and administrative expenses of $0.2 million and an increase in other income (expense) of $ 0.03 million.”
“This increase was partially offset by a decrease in cash used for accounts payable and accrued expenses, which was due to the timing of payments to vendors and severance payments in connection with the reduction in our workforce.”
“How We Addressed the Matter in Our Audit Auditing the Company’s impairment tests for goodwill was complex and involved auditor judgment and the involvement of a valuation specialist due to the significant estimation required to determine the fair value of the reporting unit.”