2 unchanged sentences
(In thousands)
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
71 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: September 30,
−Removed: September 30,
+Added: Nine Months Ended
Cost of revenues
8 unchanged sentences
Other income (expense), net
−Removed: Loss before income tax expense
+Added: Loss before income tax expense (benefit)
Income tax expense (benefit)
6 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: September 30,
−Removed: September 30,
+Added: Nine Months Ended
Other comprehensive (loss) gain, net of tax:
5 unchanged sentences
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’
−Removed: FOR THE THREE AND SIX MONTHS ENDED September 30, 2021 AND 2020
+Added: FOR THE THREE AND nine MONTHS ENDED December 31, 2021 AND 2020
(In thousands)
−Removed: Accumulated Other  
−Removed: Number of Shares  
−Removed: Par Value  
−Removed: Paid-in Capital  
−Removed: Treasury Stock  
−Removed: Comprehensive Loss  
−Removed: Accumulated Deficit  
−Removed: Stockholders' Equity  
+Added: Accumulated Other
+Added: Number of Shares
+Added: Paid-in Capital
+Added: Treasury Stock
+Added: Comprehensive Loss
+Added: Accumulated Deficit
+Added: Stockholders' Equity
Balance at March 31, 2021
−Removed: 27,988  
−Removed: $ 1,121,495  
−Removed: $ ( 3,593 )  
−Removed: $ ( 277 )  
−Removed: $ ( 1,001,313 )  
−Removed: $ 116,592  
Issuance of common stock - bonus payout
4 unchanged sentences
Repurchase of treasury stock
−Removed: ( 46 )  
Cumulative translation adjustment
−Removed: ( 63 )  
−Removed: ( 5,403 )  
Balance at June 30, 2021
−Removed: 28,726  
−Removed: $ 1,128,961  
−Removed: $ ( 3,639 )  
−Removed: $ ( 340 )  
−Removed: $ ( 1,006,716 )  
−Removed: $ 118,553  
Issuance of common stock - ESPP
3 unchanged sentences
Cumulative translation adjustment
−Removed: ( 4,434 )  
Balance at September 30, 2021
−Removed: 28,793  
−Removed: $ 1,130,921  
−Removed: $ ( 3,639 )  
−Removed: $ ( 316 )  
−Removed: $ ( 1,011,150 )  
−Removed: $ 116,104  
−Removed: Accumulated Other  
−Removed: Number of Shares  
−Removed: Par Value  
−Removed: Paid-in Capital  
−Removed: Treasury Stock  
−Removed: Comprehensive Loss  
−Removed: Accumulated Deficit  
−Removed: Stockholders' Equity  
+Added: Issuance of common stock - restricted shares
+Added: Stock-based compensation expense
+Added: Issuance of stock for 401(k) match
+Added: Cumulative translation adjustment
+Added: Balance at December 31, 2021
+Added: Accumulated Other
+Added: Number of Shares
+Added: Paid-in Capital
+Added: Treasury Stock
+Added: Comprehensive Loss
+Added: Accumulated Deficit
+Added: Stockholders' Equity
Balance at March 31, 2020
−Removed: 22,902  
−Removed: $ 1,053,507  
−Removed: $ ( 2,666 )  
−Removed: $ ( 216 )  
−Removed: $ ( 978,635 )  
−Removed: $ 72,219  
Issuance of common stock - restricted shares
2 unchanged sentences
Repurchase of treasury stock
−Removed: ( 377 )  
Cumulative translation adjustment
−Removed: ( 3,417 )  
Balance at June 30, 2020
−Removed: 23,408  
−Removed: $ 1,054,499  
−Removed: $ ( 3,043 )  
−Removed: $ ( 219 )  
−Removed: $ ( 982,052 )  
−Removed: $ 69,419  
Issuance of common stock - ESPP
3 unchanged sentences
Repurchase of treasury stock
−Removed: ( 293 )  
Cumulative translation adjustment
−Removed: ( 43 )  
−Removed: ( 3,712 )  
Balance at September 30, 2020
−Removed: 23,458  
−Removed: $ 1,055,548  
−Removed: $ ( 3,336 )  
−Removed: $ ( 262 )  
−Removed: $ ( 985,764 )  
−Removed: $ 66,420  
+Added: Issuance of common stock - restricted shares, net of forfeitures
+Added: Stock-based compensation expense
+Added: Issuance of stock for 401(k) match
+Added: Issuance of common stock - stock offering
+Added: Issuance of common stock - NEPSI acquisition
+Added: Repurchase of treasury stock
+Added: Cumulative translation adjustment
+Added: Balance at December 31, 2020
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
2 unchanged sentences
(In thousands)
−Removed: Six Months Ended September 30,
+Added: Nine Months Ended December 31,
Cash flows from operating activities:
5 unchanged sentences
Change in fair value of contingent consideration
+Added: Non-cash interest income
Other non-cash items
12 unchanged sentences
Change in other assets
−Removed: Net cash (used)/provided by investing activities
+Added: Net cash used in investing activities
Cash flows from financing activities:
1 unchanged sentence
Repayment of debt
+Added: Proceeds from public equity offering, net
Proceeds from exercise of employee stock options and ESPP
−Removed: Net cash provided/(used) by financing activities
+Added: Net cash provided by financing activities
Effect of exchange rate changes on cash
5 unchanged sentences
Non-cash investing and financing activities
+Added: Issuance of common stock in connection with the purchase of Northeast Power Systems, Inc.
+Added: Issuance of common stock in connection with the purchase of Neeltran, Inc.
Issuance of common stock to settle liabilities
14 unchanged sentences
The unaudited condensed consolidated financial statements, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim periods ended 
−Removed: September 30, 2021 
+Added: December 31, 2021 
2020  and the financial position at 
−Removed: September 30, 2021;
+Added: December 31, 2021;
however, these results are not necessarily indicative of results which may be expected for the full year.
3 unchanged sentences
filed with the SEC on June 2, 2021.
−Removed: The Company has historically experienced recurring operating losses and as of September 30, 2021 , the Company had an accumulated deficit of $ 1,011.1  million.
−Removed: In addition, the Company has historically experienced recurring negative operating cash flows.  At September 30, 2021 , the Company had cash and cash equivalents of $ 48.5 million.
+Added: The Company has historically experienced recurring operating losses and as of December 31, 2021 , the Company had an accumulated deficit of $ 1,015  million.
+Added: In addition, the Company has historically experienced recurring negative operating cash flows.  At December 31, 2021 , the Company had cash and cash equivalents of $ 43.9 million.
Cash used in operations for the 
−Removed: six months ended 
−Removed: September 30, 2021 was $ 11.7 million.
+Added: nine months ended 
+Added: December 31, 2021 was $ 15.9 million.
In February 2021, the Company filed a shelf registration statement on Form S- 3 that will expire in February 2024 ( the “Form S- 3”
13 unchanged sentences
While these existing measures and, COVID- 19 generally, have not materially disrupted the Company’s business to date, any future actions necessitated by the COVID- 19 pandemic may result in disruption to the Company’s business.
−Removed: While the COVID- 19 pandemic continues to rapidly evolve, the Company is starting to experience inflation pressure in its supply chains and some delays in sourcing materials needed for its products.
−Removed: The Company continues to assess the impact of the COVID- 19 pandemic to best mitigate risk and continue the operations of the Company’s business.
+Added: While the COVID- 19 pandemic continues to rapidly evolve, the Company is experiencing some inflation pressure in its supply chains, some delays in sourcing materials needed for its products, and some production disruption resulting from higher than typical employee absenteeism due to the highly contagious omicron variant. The Company continues to assess the impact of the COVID- 19 pandemic to best mitigate risk and continue the operations of the Company’s business.
The extent to which the outbreak impacts the Company’s business, liquidity, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including new information that may emerge concerning the severity of the COVID- 19 pandemic, the spread of new variations of the virus, the actions to contain it or treat its impact and the effectiveness and adoption of vaccines and treatments, among others. 
If the Company, its customers or suppliers experience prolonged shutdowns or other business disruptions, including global supply chain disruptions, the Company’s business, liquidity, results of operations and financial condition are likely to be materially adversely affected, and the Company’s ability to access the capital markets may be limited. 
−Removed: The Company believes that based on the information presented above and its quarterly management assessment, it has sufficient liquidity to fund its operations and capital expenditures for the next twelve months following the issuance of the financial statements for the six months ended September 30, 2021 .
−Removed: The Company’s liquidity is highly dependent on its ability to increase revenues, including its ability to collect revenues under its agreements with Inox, its ability to control its operating costs, and its ability to raise additional capital, if necessary.  The impact of the COVID- 19 pandemic on the global financing markets may reduce the Company's ability to raise additional capital, if necessary, which could negatively impact the Company's liquidity.  There can be no assurance that the Company will be able to continue to raise additional capital, on favorable terms or at all, from other sources or execute on any other means of improving liquidity described above.
+Added: The Company believes that based on the information presented above and its quarterly management assessment, it has sufficient liquidity to fund its operations and capital expenditures for the next twelve months following the issuance of the financial statements for the nine months ended December 31, 2021 .
+Added: The Company’s liquidity is highly dependent on its ability to increase revenues and gross margin, its ability to control its operating costs, and its ability to raise additional capital, if necessary.  The impact of the COVID- 19 pandemic on the global financing markets may reduce the Company's ability to raise additional capital, if necessary, which could negatively impact the Company's liquidity.  There can be no assurance that the Company will be able to continue to raise additional capital, on favorable terms or at all, from other sources or execute on any other means of improving liquidity described above.
2021 Acquisition of Neeltran
8 unchanged sentences
$ 16.4  
−Removed: The Neeltran Acquisition completed by the Company during the six months ended September 30, 2021 has been accounted for under the purchase method of accounting in accordance with ASC 805, Business Combinations.
+Added: The Neeltran Acquisition completed by the Company during the nine months ended December 31, 2021 has been accounted for under the purchase method of accounting in accordance with ASC 805, Business Combinations.
The Company allocated the purchase price to the assets acquired and liabilities assumed at their estimated fair values as of the date of Neeltran Acquisition.
14 unchanged sentences
Total purchase consideration
−Removed: $ 16.4  
−Removed:  Inventory includes a
−Removed: $ 0.6 million adjustment to step up the inventory balance to fair value consistent with the purchase price allocation.
+Added:  Inventory include
+Added: s a $ 0.6 million adjustment to step up the inventory balance to fair value consistent with the purchase price allocation.
The fair value was based on the estimated selling price of the inventory, less the remaining manufacturing and selling cost and a normal profit margin on those manufacturing and selling efforts.
−Removed: The inventory step up adjustment increased cost of revenue
−Removed: $ 0.6 m illion in the
−Removed: six month period ended
−Removed: September 30, 2021 as the inventory was sold. This increase is
−Removed: not reflected in the pro forma condensed combined statements of operations because it does
−Removed: not have a continuing impact beyond the
+Added: The inventory step up adjustment increased cost of revenue $ 0.6 million in the nine month period ended December 31, 2021 as the inventory was sold. This increase is not reflected in the pro forma condensed combined statements of operations because it does not have a continui ng impact beyond the
Backlog of $ 0.1 million was evaluated using the multi period excess earnings method under the income approach.
20 unchanged sentences
May 6, 2021, for the
−Removed: six months ended
−Removed: September 30, 2021.
+Added: nine months ended
+Added: December 31, 2021.
In the unaudited consolidated results for the
−Removed: six months ended
−Removed: September 30, 2021, Neeltran contributed
−Removed: $ 12.5  million of revenue and
−Removed:  $ 0.4  million in net loss for the Company.
+Added: nine months ended
+Added: December 31, 2021, Neeltran contributed $
+Added: million of revenue and
+Added:  $ 1.2  mi llion in net loss for the Company.
2020 Acquisition of NEPSI
35 unchanged sentences
Total purchase consideration
−Removed: $ 42.4  
Inventory includes a $ 1.0 million adjustment to step up the inventory balance to fair value consistent with the purchase price allocation. 
8 unchanged sentences
Goodwill represents the value associated with the acquired workforce and expected synergies related to the business combination of the two companies.
−Removed: Goodwill resulting from the NEPSI Acquisition was assigned to the Company’s Grid business segment.  Goodwill recognized in the NEPSI Acquisition is not deductible for tax purposes. This purchase price allocation is preliminary and has not been finalized as the analysis on the assets and liabilities acquired, primarily the tax related liability 
−Removed: may require further adjustments to our purchase accounting that could result in a measurement period adjustment that would impact the Company's reported net assets and goodwill as of October 1, 2020. 
−Removed: The $ 1.7 million of deferred tax liability is primarily related to inventory step up and intangibles. 
+Added: Goodwill resulting from the NEPSI Acquisition was assigned to the Company’s Grid business segment.  Goodwill recognized in the NEPSI Acquisition is not deductible for tax purposes. The $ 1.7 million of deferred tax liability is primarily related to inventory step up and intangibles. 
Unaudited Pro Forma Operating Results
The unaudited pro forma condensed consolidated statement of operations for the
−Removed: three and six months ended
−Removed: September 30, 2021 and 
+Added: three and nine months ended
+Added: December 31, 2021 and 
2020 is presented as if the NEPSI Acquisition and Neeltran Acquisition had occurred on
April 1, 2020.
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
−Removed: $ 27,908  
−Removed: $ 32,233  
−Removed: $ 56,158  
−Removed: $ 64,860  
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
Operating loss
−Removed: ( 4,346 )  
−Removed: ( 4,963 )  
−Removed: ( 11,131 )  
−Removed: $ ( 4,548 )  
−Removed: $ ( 3,855 )  
−Removed: $ ( 11,809 )  
Net loss per common share
−Removed: $ ( 0.17 )  
−Removed: $ ( 0.17 )  
−Removed: $ ( 0.44 )  
−Removed: $ ( 0.17 )  
−Removed: $ ( 0.17 )  
−Removed: $ ( 0.44 )  
Shares - basic
−Removed: 27,253  
−Removed: 23,036  
−Removed: 27,101  
−Removed: 22,951  
Shares - diluted
−Removed: 27,253  
−Removed: 23,036  
−Removed: 27,101  
−Removed: 22,951  
The pro forma amounts include the historical operating results of the Company, NEPSI and Neeltran, with appropriate adjustments that give effect to acquisition related costs, income taxes, intangible amortization resulting from the NEPSI Acquisition and Neeltran Acquisition and certain conforming accounting policies of the Company. The pro forma amounts are
7 unchanged sentences
For its customer contracts, the Company identifies the performance obligations, determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) control of goods or services is transferred to the customer.
−Removed: In the three and six months ended September 30, 2021 , 86 % and 
−Removed: 82 % of revenue, respectively, was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time.
−Removed: In the three and six months ended September 30, 2020, 78 % and 79 % of revenue, respectively, was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time.
+Added: three and nine months ended December 31, 2021 , 79 % and 76 % of revenue, respectively, was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time.
+Added: In the three and nine months ended December 31, 2020, 78 % and 79 % of revenue, respectively, was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time.
In the Company's equipment and system product line, each contract with a customer summarizes each product sold to a customer, which typically represents distinct performance obligations.
3 unchanged sentences
As these non-exchange transaction contracts are considered grant revenue and do not fall within any specific accounting literature, the Company follows guidance within ASC 606 by analogy to recognize grant revenue over time. 
−Removed: In the three and six months ended September 30, 2021 , the Company recorded $ 0.3 million and $ 0.8 million in grant revenue, respectively, which is included in the Company’s Grid business segment revenue. In the three and six months ended September 30, 2020, the Company recorded $ 0.4 million and $ 0.8 million in grant revenue, respectively, which is included in the Company's Grid segment revenue.
+Added: In the three and nine months ended December 31, 2021 , the Company recorded $ 0.1 million and $ 0.9 million in grant revenue, respectively, which is included in the Company’s Grid business segment revenue. In the three and nine months ended December 31, 2020, the Company recorded $ 1.1 million and $ 1.8 million in grant revenue, respectively, which is included in the Company's Grid segment revenue.
In the Company's service and technology development product line, there are several different types of transactions and each begins with a contract with a customer that summarizes each product sold to a customer, which typically represent distinct performance obligations.
27 unchanged sentences
The following tables disaggregate the Company’s revenue by product line and by shipment destination (in thousands):
−Removed: Three Months Ended September 30, 2021
−Removed: Six Months Ended September 30, 2021
+Added: Three Months Ended December 31, 2021
+Added: Nine Months Ended December 31, 2021
Product Line:
Equipment and systems
−Removed: $ 23,031  
−Removed: $ 1,826  
−Removed: $ 44,189  
−Removed: $ 2,860  
Services and technology development
−Removed: $ 24,619  
−Removed: $ 3,289  
−Removed: $ 48,119  
−Removed: $ 5,209  
−Removed: $ 18,115  
−Removed: $ 40,760  
−Removed: $ 24,619  
−Removed: $ 3,289  
−Removed: $ 48,119  
−Removed: $ 5,209  
−Removed: Three Months Ended September 30, 2020
−Removed: Six Months Ended September 30, 2020
+Added: Three Months Ended December 31, 2020
+Added: Nine Months Ended December 31, 2020
Product Line:
Equipment and systems
−Removed: $ 15,261  
−Removed: $ 4,059  
−Removed: $ 31,798  
−Removed: $ 6,676  
Services and technology development
−Removed: $ 16,347  
−Removed: $ 4,770  
−Removed: $ 34,062  
−Removed: $ 8,267  
−Removed: $ 15,677  
−Removed: $ 26,231  
−Removed: $ 16,347  
−Removed: $ 4,770  
−Removed: $ 34,062  
−Removed: $ 8,267  
−Removed: As of September 30, 2021 , and 2020 , the Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations.
+Added: As of December 31, 2021 , and 2020 , the Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations.
The Company's accounts receivable balance is made up entirely of customer contract related balances.
4 unchanged sentences
for a reconciliation to the condensed consolidated balance sheets) and "Contract liabilities", which are included in the current portion and long-term portion of "Deferred revenue" in the Company’s condensed consolidated balance sheets, are as follows (in thousands):
−Removed: Unbilled Accounts Receivable  
−Removed: Deferred Program Costs  
−Removed: Contract Liabilities  
+Added: Unbilled Accounts Receivable
+Added: Deferred Program Costs
+Added: Contract Liabilities
Beginning balance as of March 31, 2021
−Removed: $ 5,765  
−Removed: $ 21,257  
Increases for costs incurred to fulfill performance obligations
Increase for balances acquired
−Removed: 10,048  
Increase (decrease) due to customer billings
−Removed: ( 4,807 )  
−Removed: 34,344  
Decrease due to cost recognition on completed performance obligations
−Removed: ( 3,055 )  
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations
Other changes and FX impact
−Removed: Ending balance as of September 30, 2021
−Removed: $ 8,796  
−Removed: $ 31,518  
−Removed: Unbilled Accounts Receivable  
−Removed: Deferred Program Costs  
−Removed: Contract Liabilities  
+Added: Ending balance as of December 31, 2021
+Added: Unbilled Accounts Receivable
+Added: Deferred Program Costs
+Added: Contract Liabilities
Beginning balance as of March 31, 2020
−Removed: $ 5,711  
−Removed: $ 1,631  
−Removed: $ 26,142  
Increases for costs incurred to fulfill performance obligations
+Added: Increase for balance acquired
Increase (decrease) due to customer billings
−Removed: ( 5,929 )  
−Removed: 23,931  
Decrease due to cost recognition on completed performance obligations
−Removed: ( 3,314 )  
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations
Other changes and FX impact
−Removed: Ending balance as of September 30, 2020
−Removed: $ 5,968  
−Removed: $ 1,614  
−Removed: $ 21,956  
+Added: Ending balance as of December 31, 2020
The Company’s remaining performance obligations represent the unrecognized revenue value of the Company’s contractual commitments.
The Company’s performance obligations may vary significantly each reporting period based on the timing of major new contractual commitments.
−Removed: As of September 30, 2021 , the Company had outstanding performance obligations on existing contracts under ASC 606 to be recognized in the next twelve months of approximately $ 89.5 million.
+Added: As of December 31, 2021 , the Company had outstanding performance obligations on existing contracts under ASC 606 to be recognized in the next twelve months of approximately $ 80.6 million.
There are also approximately $ 8.0 million of outstanding performance obligations to be recognized over a period of thirteen to sixty months.
3 unchanged sentences
The timing of the performance obligations beyond the twelve -month forecast provided by Inox are not determinable and therefore are not included in the total remaining performance obligations. 
−Removed: The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and six months ended September 30, 2021 and 2020 :
+Added: The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and nine months ended December 31, 2021 and 2020 :
Three Months Ended
−Removed: Six Months Ended
−Removed: September 30,
−Removed: September 30,
+Added: Nine Months Ended
Inox Wind Limited
−Removed: Tri-State Generation and Transmission Association, Inc.
−Removed: Micron Technology
−Removed: Reed & Reed Inc.
−Removed: Siemens Gamesa Renewable Energy Pty.
+Added: Fuji Bridex PTE Ltd
Stock-Based Compensation
1 unchanged sentence
The following table summarizes stock-based compensation expense by financial statement line item for the 
−Removed: three and six months ended 
−Removed: September 30, 2021 and 
+Added: three and nine months ended 
+Added: December 31, 2021 and 
2020 (in thousands):
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
Cost of revenues
+Added: $ ( 23 )  
Research and development
3 unchanged sentences
$ 2,597  
−Removed: The Company issued 47,604 shares of immediately vested common stock, all of which were issued in lieu of cash bonuses, during the three months ended September 30, 2021, and 
−Removed: 166,648  shares of immediately vested common stock, of which 158,356 shares were issued in-lieu of cash bonuses and 309,700  shares of restricted stock awards during the six months ended 
−Removed: September 30, 2021 . The Company issued 32,500 shares of restricted stock awards during the three months ended September 30, 2020, and 
−Removed: 27,341  shares of immediately vested common stock and 688,167  shares of restricted stock awards during the six months ended September 30, 2020 .  These restricted stock awards generally vest over 2 - 3 years.  Awards for restricted stock include both time-based and performance-based awards.  For options and restricted stock awards that vest upon the passage of time, expense is being recorded over the vesting period.  Performance-based awards are expensed over the requisite service period based on probability of achievement.
+Added: The Company issued 370,700 shares of restricted stock awards and 
+Added: 166,648  shares of immediately vested common stock, of which 158,356 shares were issued in-lieu of cash bonuses during the nine months ended 
+Added: December 31, 2021 . The Company issued 27,341  shares of immediately vested common stock and 697,167 shares of restricted stock awards during the nine months ended December 31, 2020. 
+Added: These restricted stock awards generally vest over 2 - 3 years.  Awards for restricted stock include both time-based and performance-based awards.  For options and restricted stock awards that vest upon the passage of time, expense is being recorded over the vesting period.  Performance-based awards are expensed over the requisite service period based on probability of achievement.
The estimated fair value of the Company’s stock-based awards, less expected annual forfeitures, is amortized over the awards’
service period.
−Removed: The Company has no unrecognized compensation co st for unvested outstanding stock options at September 30, 2021 .
−Removed: The total unrecognized compensation cost for unvested outstanding restricted stock was $ 6.8 million at September 30, 2021 .
+Added: The Company has no unrecognized compensation co st for unvested outstanding stock options at December 31, 2021 .
+Added: The total unrecognized compensation cost for unvested outstanding restricted stock was $ 6.5 million at December 31, 2021 .
This expense will be recognized over a weighted-average expense period of approximately 
The Company did not grant any stock options during the three and 
−Removed: six  months ended 
−Removed: September 30, 2021 or September 30, 2020.
+Added: nine  months ended 
+Added: December 31, 2021 or December 31, 2020.
Computation of Net Loss per Common Share
3 unchanged sentences
Stock options and warrants that are out-of-the-money with exercise prices greater than the average market price of the underlying common shares and shares of performance-based restricted stock where the contingency was not met are excluded from the computation of diluted EPS as the effect of their inclusion would be anti-dilutive.
−Removed:  For the three and six months ended September 30, 2021 , 
+Added:  For each of the three and nine months ended December 31, 2021 , and 2020,  
1.1 million shares were not included in the calculation of diluted EPS. 
2 unchanged sentences
0.1  million relate to outstanding stock options as they were considered anti-dilutive .
−Removed: For the three and six months ended September 30, 2020 , 0.1  million shares related to outstanding stock options were not included in the calculation of diluted EPS as they were considered anti-dilutive.
The following table reconciles the numerators and denominators of the earnings per share calculation for the 
−Removed: three and six months ended 
−Removed: September 30, 2021 and 
+Added: three and nine months ended 
+Added: December 31, 2021 and 
2020 (in thousands, except per share data):
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
$ ( 4,324 )  
29 unchanged sentences
Goodwill and Other Intangibles
−Removed: Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. The Company's goodwill balance relates to the Neeltran Acquisition in the current year, the NEPSI Acquisition in fiscal 2020, and the acquisition of Infinia Technology Corporation in fiscal 2017 and is reported in the Grid business segment. Goodwill is not amortized but reviewed for impairment.
+Added: Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. The Company's goodwill balance relates to the Neeltran Acquisition in the current fiscal year, the NEPSI Acquisition in fiscal 2020, and the acquisition of Infinia Technology Corporation in fiscal 2017 and is reported in the Grid business segment. Goodwill is not amortized but reviewed for impairment.
Goodwill is reviewed annually and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable.
4 unchanged sentences
Less impairment loss
−Removed: September 30, 2021
+Added: December 31, 2021
$ 43,471  
The Company did not identify any triggering events in the 
−Removed: three and six months ended 
−Removed: September 30, 2021 that would require interim impairment testing of goodwill.
+Added: three and nine months ended 
+Added: December 31, 2021 that would require interim impairment testing of goodwill.
Other Intangibles
Intangible assets at 
−Removed: September 30, 2021  and 
+Added: December 31, 2021  and 
March 31, 2021  consisted of the following (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
21 unchanged sentences
$ 9,153  
−Removed: The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $ 0.6 million and $ 1.2 million, in the three and six  months ended 
−Removed: September 30, 2021 , respectively, and $ 0.1 million and $ 0.2 million in the three and six months ended September 30, 2020, respectively.
−Removed: Additionally, the Company recorded intangible amortization related to backlog that is reported in cost of revenues of less than $ 0.1 million and $ 0.1 million in the three and six months ended 
−Removed: September 30, 2021 , respectively.
+Added: The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $ 0.6  million and $ 1.8  million, in the three and nine months ended 
+Added: December 31, 2021 , respectively, and $ 0.4 million and $ 0.6 million in the three and nine  months ended December 31, 2020, respectively.
+Added: Additionally, the Company recorded intangible amortization related to backlog that is reported in cost of revenues of  
+Added: $0.1 million in each of the three and nine months ended 
+Added: December 31, 2021 , respectively, and $0.3 million in each of the three and nine months ended December 31, 2020.
Expected future amortization expense related to intangible assets is as follows (in thousands):
9 unchanged sentences
The Company develops these inputs based on the best information available, including its own data.
−Removed: The Company provides a gross presentation of activity within Level 3 measurement roll-forward and details of transfers in and out of Level 1 and 2 measurements.  A change in the hierarchy of an investment from its current level is reflected in the period during which the pricing methodology of such investment changes.  Disclosure of the transfer of securities from Level 1 to Level 2 or Level 3 is made in the event that the related security is significant to total cash and investments.  The Company did not have any transfers of assets and liabilities from Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the six months ended September 30, 2021 .
+Added: The Company provides a gross presentation of activity within Level 3 measurement roll-forward and details of transfers in and out of Level 1 and 2 measurements.  A change in the hierarchy of an investment from its current level is reflected in the period during which the pricing methodology of such investment changes.  Disclosure of the transfer of securities from Level 1 to Level 2 or Level 3 is made in the event that the related security is significant to total cash and investments.  The Company did not have any transfers of assets and liabilities from Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the nine months ended December 31, 2021 .
A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
8 unchanged sentences
Changes in fair value are recorded to other income (expense), net. 
−Removed: The Company had no outstanding marketable securities as of September 30, 2021 and the Company recognized no change in t he three  and six months ended 
−Removed: September 30, 2021 .
−Removed: The Company recognized $ 0.2 million and $ 0.1 million in unrealized losses on marketable securities, which is recorded in other income (expense), net, for the three and six months ended September 30, 2020 and less than a $ 0.1 million gain which was recognized during the three and six months ended September 30, 2020 upon the sale of one of the certificates of deposit.
+Added: The Company had no outstanding marketable securities as of December 31, 2021 and the Company recognized no change in t he three  and nine months ended 
+Added: December 31, 2021 .
+Added: The Company recognized no change in the three months ended December 31, 2020 and $ 0.2 million in unrealized losses on marketable securities, which is recorded in other income (expense), net, for the nine months ended December 30, 2020 and less than a $ 0.1 million gain which was recognized during the nine months ended December 31, 2020 upon the sale of one of the certificates of deposit.
The Company periodically reviews the realizability of each short and long term marketable security when impairment indicators exist with respect to the security.
6 unchanged sentences
The following table provides the assets and liabilities carried at fair value on a recurring basis, measured as of 
−Removed: September 30, 2021 and 
+Added: December 31, 2021 and 
March 31, 2021 (in thousands):
3 unchanged sentences
Significant Unobservable Inputs (Level 3)
−Removed: September 30, 2021:
+Added: December 31, 2021:
Cash equivalents
26 unchanged sentences
Change in fair value
−Removed: Balance at September 30, 2021
+Added: Balance at December 31, 2021
$ 2,610  
1 unchanged sentence
Accounts receivable at 
−Removed: September 30, 2021 and 
+Added: December 31, 2021 and 
March 31, 2021 consisted of the following (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
Accounts receivable (billed)
−Removed: $ 16,381  
−Removed: $ 7,502  
Accounts receivable (unbilled)
Accounts receivable, net
−Removed: $ 25,177  
−Removed: $ 13,267  
Inventory, net of reserves, at 
−Removed: September 30, 2021 and 
+Added: December 31, 2021 and 
March 31, 2021 consisted of the following (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
8 unchanged sentences
$ 13,306  
−Removed: The Company recorded inventory write-downs of $ 0.6 million and $ 0.5  million for the three months ended September 30, 2021 , and 2020 , respectively.
−Removed: The Company recorded inventory write-downs of $ 1.2 million and $ 1.3 million for the six months ended September 30, 2021 and 2020, respectively. 
+Added: The Company recorded inventory write-downs of $ 0.4 million in each of the three months ended December 31, 2021  and 2020 , respectively.
+Added: The Company recorded inventory write-downs of $1.6  
+Added: million in each of the 
+Added: nine months ended December 31, 2021 and 2020, respectively. 
These write-downs were based on the Company's evaluation of its inventory on hand for excess quantities and obsolescence.
Deferred program costs as of 
−Removed: September 30, 2021 , and 
+Added: December 31, 2021 , and 
March 31, 2021 , primarily represent costs incurred on programs where the Company needs to complete performance obligations before the related revenue and costs will be recognized.
1 unchanged sentence
The cost and accumulated depreciation of property, plant and equipment at 
−Removed: September 30, 2021 and 
+Added: December 31, 2021 and 
March 31, 2021 are as follows (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
1 unchanged sentence
Equipment and software
−Removed: 43,714  
−Removed: 41,652  
Finance lease - right of use asset
2 unchanged sentences
Property, plant and equipment, gross
−Removed: 58,315  
−Removed: 51,413  
Less accumulated depreciation
−Removed: ( 43,704 )  
Property, plant and equipment, net
−Removed: $ 14,611  
−Removed: $ 8,997  
−Removed: Depreciation expense was $ 0.7 million and $ 0.9  million for the three months ended September 30, 2021 and 2020 , respectively.
−Removed: Depreciation expense was $ 1.3 million and $ 1.8 million for the six months ended September 30, 2021 and 2020, respectively.
+Added: Depreciation expense was $ 0.7 million and $ 1.2 million for the three months ended December 31, 2021 and 2020 , respectively.
+Added: Depreciation expense was $ 2.0  
+Added: million and $ 2.9 million for the nine months ended December 31, 2021 and 2020, respectively.
The increase in land and building relates to the property added as part of the Neeltran Acquisition.
1 unchanged sentence
Accounts payable and accrued expenses at 
−Removed: September 30, 2021 and 
+Added: December 31, 2021 and 
March 31, 2021 consisted of the following (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
Accounts payable
−Removed: $ 14,920  
−Removed: $ 5,353  
Accrued inventories in-transit
4 unchanged sentences
Accrued product warranty
−Removed: $ 27,891  
−Removed: $ 19,810  
The Company generally provides a one to three year warranty on its products, commencing upon delivery or installation where applicable.
1 unchanged sentence
Product warranty activity was as follows (in thousands):
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
Balance at beginning of period
−Removed: $ 2,187  
−Removed: $ 2,168  
−Removed: $ 2,053  
−Removed: $ 2,015  
Acquired warranty obligations
1 unchanged sentence
Settlements during the period
−Removed: ( 238 )  
−Removed: ( 207 )  
−Removed: ( 460 )  
Balance at end of period
−Removed: $ 2,155  
−Removed: $ 2,109  
−Removed: $ 2,155  
−Removed: $ 2,109  
−Removed: The Company recorded an income tax expense of $ 0.2 million and income tax benefit of $ 1.9 million in the 
−Removed: three and six months ended September 30, 2021 , respectively. 
−Removed: The Company recorded income tax expense of $ 0.2  million and $ 0.4 million in the three and six months ended September 30, 2020, respectively.
+Added: The Company recorded an income tax expense of $1.0 thousand 
+Added: and income tax benefit of $ 1.9  million in the 
+Added: three and nine months ended December 31, 2021 , respectively. 
+Added: The Company recorded an income tax benefit of $ 1.5 million and $ 1.2 million in the three and nine months period ended December 31, 2020, respectively. 
As a result of a difference in book and tax basis related to the intangible assets acquired in the Neeltran Acquisition (see Note 2, "Acquisitions"), the Company recorded a deferred tax liability of $ 2.3 million.
As a result, the Company was able to benefit from additional deferred tax assets and therefore released a corresponding valuation allowance of $ 2.3  million 
−Removed: during the six months ended 
−Removed: September 30, 2021 .  The purchase price allocation is preliminary and has not been finalized as the analysis on the assets and liabilities acquired, primarily the tax related liability, may require further adjustments to the Company's purchase accounting that could result in measurement period adjustments that would impact the Company's reported net assets and goodwill as of May 6, 2021.
−Removed: Material changes, if any, to the preliminary allocation summarized in Note 2, "Acquisitions" will be reported once the related uncertainties are resolved, but no later than May 6, 2022.  
+Added: during the nine  
+Added: months ended 
+Added: December 31, 2021 .  The purchase price allocation is preliminary and has not been finalized as the analysis on the assets and liabilities acquired, primarily the tax related liability, may require further adjustments to the Company's purchase accounting that could result in measurement period adjustments that would impact the Company's reported net assets and goodwill as of May 6, 2021.
+Added: Material changes, if any, to the preliminary allocation summarized in Note 2, "Acquisitions" will be reported once the related uncertainties are resolved, but no later than May 6, 2022. 
+Added: As a result of a difference in book and tax basis related to the intangible assets acquired in the NEPSI Acquisition, the Company recorded a deferred tax liability of $ 1.7 million.
+Added: As a result, the Company was able to benefit from additional deferred tax assets and therefore released a corresponding valuation allowance of $ 1.7 million during the three and nine months ended December 31, 2020.
+Added: The purchase price allocation was final as of October 1, 2021.
Goodwill recognized in the Neeltran Acquisition and the NEPSI Acquisition is not deductible for tax purposes.
Accounting for income taxes requires a two -step approach to recognizing and measuring uncertain tax positions.  The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any.  The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement.  The Company re-evaluates these uncertain tax positions on a quarterly basis.  The evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity.  Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision.  The Company did not identify any uncertain tax positions in the 
−Removed: six months ended 
−Removed: September 30, 2021  and did not have any gross unrecognized tax benefits as of September 30, 2021 .
+Added: nine months ended 
+Added: December 31, 2021  and did not have any gross unrecognized tax benefits as of December 31, 2021 .
Contingent Consideration
6 unchanged sentences
Revenue risk premium
−Removed: 6.60 %  
−Removed: 6.60 %  
Revenue volatility
−Removed: $ 14.58  
−Removed: $ 17.39  
Payment delay (days)
+Added: Fair value (millions)
Fiscal Year 2020
Revenue risk premium
−Removed: 6.70 %  
−Removed: 6.90 %  
Revenue volatility
−Removed: $ 18.96  
−Removed: $ 23.42  
−Removed: $ 14.23  
Payment delay (days)
−Removed: The Company recorded a net gain of $ 2.4  million and $ 2.3 million resulting from the decrease in the fair value of the contingent consideration in the 
−Removed: three and six  months ended 
−Removed: September 30, 2021 , respectively.
+Added: Fair value (millions)
+Added: The Company recorded a net g ain of $ 2.1 million and $ 4.4  m illion resulting from the decrease in the fair value of the contingent consideration in the 
+Added: three and nine  months ended 
+Added: December 31, 2021 , respectively.
+Added: The Company recorded a net loss of $ 2.7 million resulting from the increase in the fair value of the contingent consideration in both the three and nine months period ended December 31, 2020.
As part of the Neeltran Acquisition, the Company identified four equipment financing agreements that Neeltran had entered into prior to the acquisition on May 6, 2021.
−Removed: The Company determined to account for these agreements as a debt transaction and recorded current and long-term debt liabilities of $ 0.1 million each during the six  months ended September 30, 2021 . 
+Added: The Company determined to account for these agreements as a debt transaction and recorded current and long-term debt liabilities of $ 0.1 mi llion each during the nine months ended December 31, 2021 . 
The Company determines whether a contract is or contains a lease at inception of a contract.
24 unchanged sentences
Accordingly, on May 6, 2021, the Company recognized a finance lease right-of-use asset and a finance lease liability of $ 13.2 thousand on the Neeltran opening balance sheet.
−Removed: As of September 30, 2021, the right-of-use asset related to the finance lease was $ 10.7 thousand, net of accumulated amortization of $ 2.5  thousand, and is included in the property and equipment, net on the Company's consolidated balance sheet.
+Added: As of December 31, 2021, the right-of-use asset related to the finance lease w as $ 9.1  t housand, net of accumulated amortization o f $ 4.1 thousand, and is included in the property and equipment, net on the Company's consolidated balance sheet.
Finance lease right-of-use assets and lease liabilities are recognized similar to an operating lease, at the lease commencement date or the date the lessor makes the leased asset available for use.
2 unchanged sentences
Supplemental balance sheet information related to leases at 
−Removed: September 30, 2021 , and 
+Added: December 31, 2021 , and 
March 31, 2021 are as follows (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
12 unchanged sentences
The costs related to the Company's operating leases for the 
−Removed: three and six months ended September 30, 2021 , and 
+Added: three and nine months ended December 31, 2021  and 
2020 are as follows (in thousands):
Three Months Ended
−Removed: Six Months Ended
−Removed: September 30, 2021
−Removed: September 30, 2021
+Added: Nine Months Ended
+Added: December 31, 2021
+Added: December 31, 2021
Operating Leases:
4 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: September 30, 2020
−Removed: September 30, 2020
+Added: Nine Months Ended
+Added: December 31, 2020
+Added: December 31, 2020
Operating Leases:
18 unchanged sentences
In addition, the Company has various contractual arrangements in which minimum quantities of goods or services have been committed to be purchased on an annual basis.
−Removed: As of September 30, 2021 , the Company had $ 6.2 million of restricted cash included in long-term assets and $ 2.3 million of restricted cash included in current assets.
+Added: As of December 31, 2021 , the Company had $ 6.0 million of restricted cash included in long-term assets and $ 2.7 million of restricted cash included in current assets.
As of March 31, 2021 , the Company had $ 5.6 million of restricted cash included in long term assets and $ 2.2 million of restricted cash included in current assets.
13 unchanged sentences
The operating results for the two business segments are as follows (in thousands):
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
$ 25,050  
6 unchanged sentences
$ 80,126  
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
+Added: $ 65,961  
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
Operating Income (loss):
9 unchanged sentences
$ ( 16,182 )  
−Removed: $ ( 11,801 )  
The accounting policies of the business segments are the same as those for the consolidated Company.
2 unchanged sentences
In addition, certain corporate expenses which the Company does not believe are specifically attributable or allocable to either of the two business segments have been excluded from the segment operating loss.
−Removed: Unallocated corporate expenses consist of a gain on contingent consideration of $ 2.4 million and $ 2.3 million in the three and six months ended September 30, 2021, respectively.
+Added: Unallocated corporate expenses consist of a gain on contingent consider ation of $ 2.1 million and $ 4.4  
+Added: m illion in the three and nine months ended December 
+Added: 31, 2021, respectively.
+Added: Unallocated corporate expenses consist of a loss on contingent consideration of $ 2.7 million in both the three and nine months ended December 31, 2020.
Additionally, unallocated corporate expenses consist of stock-based compensation expense of $ 1.1 million and $ 0.8  million in the three months ended 
−Removed: September 30, 2021 , and 2020 , respectively and $ 2.4 million and $ 1.8 million in the six months ended September 30, 2021 and 2020, respectively.
+Added: December 31, 2021 , and 2020 , respectively, an d $ 3.5  
+Added: million and $ 2.6 million in the nine months ended December 31, 2021, 
+Added: and 2020, respectively.
Total assets for the two business segments as of 
−Removed: September 30, 2021 , and 
+Added: December 31, 2021 , and 
March 31, 2021 , are as follows (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
16 unchanged sentences
As of April 1, 2021, we have adopted ASU 2019 - 12 and noted no material impact on our consolidated financial statements.
+Added: In October 2021, the FASB issued ASU 2021 - 08, Business Combinations (Topic 805 ):
+Added: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers .
+Added: The amendments in ASU 2021 - 08 will improve the accounting for acquired revenue contracts with customers in a business combination.
+Added: Following the release of ASU 2021 - 08 in October 2021, the new effective date will be annual reporting periods beginning after December 15, 2022.
+Added: The Company is currently evaluating the impact, if any, that the adoption of ASU 2021 - 08 may have on its consolidated financial statements.
+Added: In November 2021, the FASB issued ASU 2021 - 10, Government Assistance (Topic 832 ):
+Added: Disclosures by Business Entities about Government Assistance .
+Added: The amendments in ASU 2021 - 10 will improve financial reporting by requiring disclosures that increase the transparency of transactions with government accounted for by applying a grant or contribution accounting model by analogy.
+Added: Following the release of ASU 2021 - 10 in November 2021, the new effective date will be annual reporting periods beginning after December 15, 2021.
+Added: The Company is currently evaluating the impact, if any, that the adoption of ASU 2021 - 10 may have on its consolidated financial statements.
Subsequent Events
11 unchanged sentences
("NEPSI") and Neeltran, Inc.
−Removed: ("Neeltran"), changes in macroeconomic and market conditions, arising from the COVID-19 pandemic, including inflation, sourcing, material delays and global supply chain disruptions and adoption of accounting changes may be deemed to be forward-looking statements.
+Added: ("Neeltran"), changes in macroeconomic and market conditions, arising from the COVID-19 pandemic, including inflation, sourcing, production disruption, material delays and global supply chain disruptions and adoption of accounting changes may be deemed to be forward-looking statements.
Without limiting the foregoing, the words “believes,”
44 unchanged sentences
and the important factors discussed under the caption "Risk Factors" in Part 1.
−Removed: Item 1A of our Form 10-K for the fiscal year ended March 31, 2021 and our other reports filed with the SEC.
+Added: Item 1A of our Form 10-K for the fiscal year ended March 31, 2021 and our other reports filed with the SEC.
These important factors, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time.
49 unchanged sentences
Substation work on the project began in late 2019 and we successfully integrated the REG system on Com Ed's electric power grid and the REG system became fully operational in August 2021.
−Removed: The REG system was placed into operation during the three months ended September 30, 2021.
+Added: The REG system was placed into operation during the nine months ended December 31, 2021.
On October 1, 2020, we entered into a Stock Purchase Agreement (the “NEPSI Stock Purchase Agreement”) with the selling stockholders named therein. 
11 unchanged sentences
The COVID-19 pandemic continues to rapidly evolve.
−Removed: We are starting to experience inflation pressure in our supply chain and some delays in sourcing materials needed for our products which has increased our cost of revenues and decreased gross margin.
+Added: We are experiencing some inflation pressure in our supply chain, some delays in sourcing materials needed for our products and some production disruption resulting from higher than typical employee absenteeism due to the highly contagious omicron variant which have increased our cost of revenues and decreased gross margin.
The extent to which the outbreak impacts our business, liquidity, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the continued geographic spread of the disease, the duration of the pandemic, the location, duration and magnitude of future waves of infection, new variants of the virus, availability and adoption of vaccines and treatments, effectiveness of vaccines against the virus and its mutations, travel restrictions and social distancing in the United States, the European Union, India and other countries, the duration and extent of business closures or business disruptions including global supply chain disruptions and the effectiveness of actions taken to contain and treat the disease.
−Removed: Changes in macroeconomic and market conditions arising from the COVID-19 pandemic, including inflation, sourcing, material delays and global supply chain disruptions could have a material adverse effect on our business financial condition and results of operation.
+Added: Changes in macroeconomic and market conditions arising from the COVID-19 pandemic, including inflation, labor force availability, sourcing, material delays and global supply chain disruptions could have a material adverse effect on our business, financial condition and results of operation.
Critical Accounting Policies and Estimates
4 unchanged sentences
Results of Operations
−Removed: Three and six months ended September 30, 2021 , compared to the three and six months ended September 30, 2020
−Removed: Total revenues increased 32% and 26% to $27.9 million and $53.3 million for the three and six months ended September 30, 2021 , respectively, compared to $21.1 million and $42.3 million for the three and six months ended September 30, 2020, respectively. 
+Added: Three and nine months ended December 31, 2021 , compared to the three and nine months ended December 31, 2020
+Added: Total revenues increased 13% and 21% to $26.8 million and $ 80.1  million for the three and nine months ended December 31, 2021 , respectively, compared to $23.6 million and $66.0 million for the three and nine months ended December 31, 2020, respectively. 
Our revenues are summarized as follows (in thousands):
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
−Removed: Our Grid business unit accounted for 88% and 9 0% of total revenues for the three and six months ended September 30, 2021 , respectively, compared to  77% and 80% for the three and six months ended September 30, 2020, respectively.
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
+Added: Our Grid business unit accounted for 93% and 91 % of total revenues for the three and nine months ended December 31, 2021 , respectively, compared to  72% and 78% for the three and nine months ended December 31, 2020, respectively.
Our Grid business unit revenues increased 
−Removed: 51% and 41 % to $24.6 million and $48.1 million in the three and six months ended September 30, 2021 , respectively, from $16.3  million and $34.1 million in the 
−Removed: three and six months ended September 30, 2020 , respectively. The increase in the Grid business unit revenue in the three and six months ended September 30, 2021 , was primarily driven by the contributions from the acquisitions of NEPSI and Neeltran.
−Removed: Our Wind business unit accounted for 12% and 10% of total revenues for the three and six months ended September 30, 2021 , respectively, c ompared to 23% and 20% for the 
−Removed: three and six months ended September 30, 2020 , respectively. 
−Removed: Revenues in the Wind business unit decreased 31% and 37% to $ 3.3 million and $ 5.
−Removed: 2 million in the 
−Removed: three and six months ended September 30, 2021 , from $4.8 million and $8.3 million in the 
−Removed: three and six months ended September 30, 2020 .
−Removed: The decrease in the three and six months ended September 30, 2021 , was driven by shipments of electrical control systems ("ECS") to Doosan in the three and six months ended September 30, 2020 with no similar shipments in the current year period. Inox, historically one of the largest customers of our Wind business unit has had and may in the future have its ability to perform under our ECS supply contract hampered by the prolonged impacts of the COVID-19 pandemic.
+Added: 47% and 43% to $25.0 million and $73.2 m illion in the three and nine months ended December 31, 2021 , respectively, from $17.1  million and $51.1 million in the 
+Added: three and nine months ended December 31, 2020 , respectively. The increase in the Grid business unit revenue in the three months ended December 31, 2021, was primarily driven by the contribution from the Neeltran Acquisition.
+Added: The increase in the Grid business unit revenue in the nine months ended December 31, 2021 , was primarily driven by the contributions from the acquisitions of NEPSI and Neeltran.
+Added: Our Wind business unit accounted for 7% and 9% of total revenues for the three and nine months ended December 31, 2021 , respectively, c ompared to 28% and 22% for the 
+Added: three and nine months ended December 31, 2020 , respectively. 
+Added: Revenues in the Wind business unit decreased 73% and 53% to $ 1.7 million and $7.0 million in the 
+Added: three and nine months ended December 31, 2021 , from $6.5 million and $14.8 million in the 
+Added: three and nine months ended December 31, 2020 .
+Added: The decrease in the three and nine months ended December 31, 2021 , was driven by shipments of electrical control systems ("ECS") to Doosan in the three and nine months ended December 31, 2020 with no similar shipments in the current year period. Inox, historically one of the largest customers of our Wind business unit has had and may in the future have its ability to perform under our ECS supply contract hampered by the prolonged impacts of the COVID-19 pandemic.
Inox has been active in the new central and state government auction regime in India and has a cumulative order book of over 1.4 GW. We are parties to a technology transfer & license agreement dated as of April 17, 2009, as amended (the “2009 TTLA”) with Inox for a 2 MW class wind turbine, the manufacture of which requires our ECS. 
−Removed: On July 21, 2021, we sent written notice to Inox notifying Inox of its default under the 2009 TTLA due to Inox’s failure to pay royalties for commissioned 2 MW wind turbines in the amount of €0.7 million that Inox is obligated to pay under the terms of the 2009 TTLA. 
+Added: On November 9, 2021, we sent written notice to Inox notifying Inox of its default under the 2009 TTLA due to Inox’s failure to pay royalties for commissioned 2 MW wind turbines in the amount of €0.1 million that Inox is obligated to pay under the terms of the 2009 TTLA. 
Inox subsequently paid the royalties during the cure period.
−Removed: If Inox in the future fails to pay such royalties in accordance with the terms of the 2009 TTLA within the thirty working day cure period after receipt of the default notice, then we may terminate the 2009 TTLA by providing written notice of such termination to Inox. 
−Removed: We cannot predict if and when Inox will pay royalties due and payable under the 2009 TTLA in the future.
−Removed: In the event we were to terminate the 2009 TTLA in connection with Inox's failure to pay royalties under such agreement, Inox would no longer be able to manufacture 2 MW wind turbines, likely result in a decrease in Inox’s demand for our ECS and our revenues and liquidity could be impacted.
+Added: On December 1, 2021, we sent written notice to Inox notifying Inox of its default under our supply contract for 2 MW ECS due to Inox's failure to post letters of credit in the amount of €0.9 million for payment of ECS that Inox is obligated to purchase under the terms of the supply contract.
+Added: If Inox fails to post letters of credit in the amount of €0.9 million in accordance with the terms of the supply contract within the ninety-day cure period after receipt of the default notice, then we may terminate the supply contract by providing written notice of such termination to Inox.
+Added: We cannot predict if and when Inox will pay royalties due and payable under the 2009 TTLA or if or when Inox will resume posting letters of credit for payment of contracted shipments of ECS in the future.
+Added: In the event we were to terminate the 2009 TTLA in connection with Inox's failure to pay royalties under such agreement, Inox would no longer be able to manufacture 2 MW wind turbines, likely resulting in a decrease in Inox’s demand for our ECS and our revenues and liquidity could be impacted.
+Added: In the event we were to terminate the 2 MW ECS supply contract, our revenues and liquidity could also be negatively impacted.
We cannot predict if and how successful Inox will be in executing on these orders or in obtaining new orders under the new central and state auction regime.
1 unchanged sentence
Cost of Revenues and Gross Margin
−Removed: Cost of revenues increased b y 58% and 47% to $24.6 million and $46.7 million for the three and six months ended September 30, 2021 , compared to $15.6 million and $31.8 million for the three and six month s ended September 30, 2020 .
+Added: Cost of revenues increased b y 18% and 36% to $23.2 million and $69.9 
+Added: million for the three and nine months ended December 31, 2021 , compared to $19.7 million and $51.4 million for the three and nine month s ended December 31, 2020 .
Gross margin was 
−Removed: 12% and 13 % for the 
−Removed: three and six months ended September 30, 2021 , compared to 26% and 25% for the 
−Removed: three and six months ended September 30, 2020 . 
−Removed: The decrease in gross margin in the three and six months ended 
−Removed: September 30, 2021 , was due to an unfavorable product mix, higher raw materials cost and additional costs related to purchase accounting adjustments associated with the Neeltran Acquisition. Cost of revenues includes total amortization expense of less than $0.1 million and $0.1 million in the 
−Removed: three and six months ended 
−Removed: September 30, 2021 as a result of each of the NEPSI and Neeltran acquired backlog intangible assets.  In addition, a fair value purchase adjustment of approximately $0.3 million and $0.6 million for the step-up basis assigned to acquired inventory, to properly reflect the fair value in purchase accounting, was charged to cost of revenues in the three and six months ended September 30, 2021 . 
+Added: 13%  for both the 
+Added: three and nine months ended December 31, 2021 , compared to 17% and 22% for the 
+Added: three and nine months ended December 31, 2020 . 
+Added: The decrease in gross margin in the three and nine months ended 
+Added: December 31, 2021 , was due to an unfavorable product mix, inflation pressure in our supply chain and some delays in sourcing materials due to the COVID-19 pandemic and additional costs related to purchase accounting adjustments associated with the Neeltran Acquisition. Cost of revenues includes total amortization expense of $0.1 million in both of the 
+Added: three and nine months ended 
+Added: December 31, 2021 as a result of each of the NEPSI and Neeltran acquired backlog intangible assets. In addition, a fair value purchase adjustment of approximately $0.1 million and $0.6 million for the step-up basis assigned to acquired inventory, to properly reflect the fair value in purchase accounting, was charged to cost of revenues in the three and nine months ended December 31, 2021 , respectively.
Operating Expenses
Research and development
−Removed: Research and development ("R&D") expense remained relatively flat at 
−Removed: $ 2.7 million  in the three months ended September 30, 2021 and 
−Removed: September 30, 2020 , respectively.
−Removed: The slight decrease in R&D expense was due to higher overall compensation expense and less allocation of expenses to cost of goods sold for revenue generating projects in the three months ended 
−Removed: September 30, 2020,  compared to the three months ended September 30, 2021 . Research and development expenses increased 9% in the six months ended September 30, 2021 to $ 5.7  million from $5.2 million in the six months ended September 30, 2020.
−Removed: The increase in R&D expense in the six month period was due to less allocation of expenses to cost of goods sold for revenue generating projects.
+Added: Research and development ("R&D") expense decreased 12% in the three months ended December 31, 2021 to 
+Added: $ 2.7 million  from $3.0 million in the three months ended 
+Added: December 31, 2020 .
+Added: The decrease in R&D expense was due to lower overall compensation expense.
+Added:  R&D expenses increased 1% in the nine months ended December 31, 2021 to $8.4 million from $8.2 million in the nine 
+Added: months ended December 31, 2020.
+Added: The increase in R&D expense in the nine month period was due to higher travel and stock compensation expense.
Selling, general, and administrative
−Removed: Selling, general and administrative ("SG&A") expen ses increased 14%  in the three months ended September 30, 2021 , 
−Removed: to $ 6.7 million from $5.9 million 
+Added: Selling, general and administrative ("SG&A") expen ses decreased 4%  in the three months ended December 31, 2021 , 
+Added: to $ 6.8 million from $7.1  million 
in the three months ended 
−Removed: September 30, 2020 . The increase in SG&A expense in the three months ended September 30, 2021  was due to higher overall compensation expense due to the additions of NEPSI and Neeltran, as well as higher stock compensation expense than in the prior year period.
−Removed: Selling, general and administrative expenses increased 20 % to $13.8 million in the six months ended September 30, 2021 compared to $11.5 million in the six months ended September 30, 2020.
−Removed: The increase in SG&A expense in the six months ended September 30, 2021 was due to higher overall compensation expense due to the additions of NEPSI and Neeltran than in the prior year period.
+Added: December 31, 2020 . The decrease in SG&A expense in the three months ended December 31, 2021  was due to lower overall compensation expense than in the prior year period.
+Added: SG&A expenses increased 11% to $20.6 million in the nine months ended December 31, 2021 compared to $18.6 million in the nine months ended December 31, 2020.
+Added: The increase in SG&A expense in the nine months ended December 31, 2021 was due to the addition of NEPSI and Neeltran in the current year period.
Amortization of acquisition related intangibles
−Removed: We recorded amortization expense related to our core technology and know-how, customer relationships, and other intangible assets of $0.6 million and $1.2 million in the three and six months ended 
−Removed: September 30, 2021 , respectively, and $0.1 million and $0.2 million in the three and six months ended September 30, 2020, respectively. 
−Removed: The increase in amortization expense is primarily a result of the acquisitions of NEPSI and Neeltran.
+Added: We recorded amortization expense related to our core technology and know-how, customer relationships, and other intangible assets of $0.6 million and $1.8 million in the three and nine months ended 
+Added: December 31, 2021 , respectively, and $0.4 million and $0.6 million in the three and nine months ended December 31, 2020, respectively. 
+Added: The increase in amortization expense is a result of the acquisitions of NEPSI and Neeltran.
Change in fair value of contingent consideration
−Removed: The change in fair value of our contingent consideration for the earnout payment on the NEPSI Acquisition resulted in a gain of $2.4 million and $2.3 million in the three and six months ended 
−Removed: September 30, 2021 .
−Removed: The change in the fair value was primarily driven by a decreased likelihood of achieving certain revenue targets.
+Added: The change in fair value of our contingent consideration for the earnout payment on the NEPSI Acquisition resulted in a gain of $2.1 million and $4.4  million in the three and nine months ended 
+Added: December 31, 2021 , respectively, compared to a loss of $2.7 million in both the three and nine months ended December 31, 2020.
+Added: The change in the fair value was primarily driven by a decreased likelihood of achieving certain revenue targets and a decline in the Company's stock price.
Operating loss
Our operating loss is summarized as follows (in thousands):
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
Operating Income (loss):
Unallocated corporate expenses
−Removed: Our Grid business segment generated operating losses of $5.8 million and $11.1 million in the three and six mon ths ended September 30, 2021 , compared to $1.4 million and $2.6 million 
−Removed: in the three and six months ended September 30, 2020 .
−Removed: The increase in the Grid business unit operating loss in the three and six months ended September 30, 2021 , was due to a less favorable product mix and the impact of the purchase accounting adjustments recorded as part of the Neeltran Acquisition including the inventory step up charge noted above and an adjustment which reduced revenue by $0.6 million less than the contract value, to recognize the fair value adjustment related to the acquired customer deposits, in order to properly reflect pre-acquisition activities.  
−Removed: Our Wind business segment generated an operating profit of $0.2 milli on and an operating loss of $0.6 million in the three and six months ended September 30, 2021 , compared to operating losses of $1.0 million and $2.1 million in the three and six months ended September 30, 2020 .
−Removed: The decrease in the Wind business unit operating los s in the three and six month periods was due to reduced manufacturing overhead associated with consolidating wind manufacturing into our Ayer manufacturing facility in Massachusetts.
−Removed: Unallocated corporate expenses consist of a gain on contingent consideration of $2.4 million and $2.3 million in the three and six months ended September 30, 2021.
−Removed: Additionally, unallocated corporate expenses primarily consisted of stock-based compensation expense of $1.1 million and $0.8 million in the three months ended 
−Removed: September 30, 2021 and 2020, respectively and $2.4 million and $1.8 million in the six months ended September 30, 2021 and 2020, respectively.
+Added: Our Grid business segment generated operating losses of $3.7 million and $ 14.9  million in the three and nine mon ths ended December 31, 2021 , compared to $5.8 million and $8.4 million 
+Added: in the three and nine months ended December 31, 2020 .
+Added: The decrease in the Grid business unit operating loss in the three months ended December 31, 2021  against the prior year period was due to increased revenues, in part related to the acquisition of Neeltran, and improved gross margins.
+Added: The increase in the Grid business unit operating loss in the nine months ended December 31, 2021, was due to a less favorable product mix and the impact of the purchase accounting adjustments recorded as part of the Neeltran Acquisition, including the inventory step up charge noted above and an adjustment to recognize the fair value adjustment related to the acquired customer deposits, in order to properly reflect pre-acquisition activities, which reduced revenue by $0.6 million less than the contract value. 
+Added: Our Wind business segment generated operating losses of $1.7 milli on and 
+Added: million in the three and nine months ended December 31, 2021 , compared to an operating profit of $0.1 million and an operating loss of $2.0 million in the three and nine months ended December 31, 2020 .
+Added: The increase in the Wind business unit operating los s in the three and nine month periods was due to lower revenues and gross margins driven by fewer shipments of ECS than in the year ago periods.
+Added: Unallocated corporate expenses consisted of a gain on contingent consideration of $2.1 million and $4.4 million in the three and nine months ended December 31, 2021, respectively.
+Added: Unallocated corporate expenses consisted of a loss on contingent consideration of $2.7 million in both the three and nine months ended December 31, 2020. 
+Added: Additionally, unallocated corporate expenses consisted of stock-based compensation expense of $1.1 million and $0.8 million in the three months ended 
+Added: December 31, 2021 and 2020, respe ctively, and $3.5 
+Added: million and $2.6 million in the nine months ended December 31, 2021 and 2020, respectively.
Interest income, net
−Removed: Interest income, net, was less than $0.1 million and $0.1 million in the three and six months ended September 30, 2021 , compared to $0.2 million and $0.3 million in the three and six months ended September 30, 2020.
−Removed: T he decrease in interes t income in the three and six months ended 
−Removed: September 30, 2021 was relate d to a lower cash balance earning lower interest rates than in the prior period.
+Added: Interest income, net, was less tha n $0.1 million and $0.1 million in the three and nine months ended December 31, 2021 , compared to $0.1 million and $0.4 million in the three and nine months ended December 31, 2020.
+Added: T he decrease in interes t income in the three and nine months ended 
+Added: December 31, 2021 was relate d to a lower cash balance earning lower interest rates than in the prior periods.
Other (expense) income, net
−Removed: Other income, net was less than $0.1 million and other expense, net was less than $0.1 million in the three and six months ended September 30, 2021 , compared to o ther expense, net of $ 0.5 million and $0.6 million  in the 
−Removed: three and six months ended September 30, 2020 .
+Added: Other income, net, was less than $0.1 
+Added: million in both the three and nine months ended December 31, 2021 , compared to o ther expense, net, of $ 0.3 million and $0.9 million  in the 
+Added: three and nine months ended December 31, 2020 .
The decrease in other expense during both periods was driven by the impacts of favorable fluctuations in foreign currencies during the respective period.  
 Income Taxes
−Removed: Income tax expense was $0.2 million in the three months ended September 30, 2021 and income tax benefit was $1.9 million in the six months ended September 30, 2021.
−Removed: I ncome tax expense was $0.2 million and $0.4 million in the three and six months ended 
−Removed: September 30, 2020 . 
−Removed: The decrease in income tax expense is  a result of the release of the valuation allowance to offset the recording of the deferred tax liability from the Neeltran Acquisition in the six months ended September 30, 2021. 
−Removed: Net loss was $4.4 million and $ 9.8 million in the three and six months ended September 30, 2021 , compared to $3.7 million and $7.1 million in the three and six months ended September 30, 2020.  
−Removed: The increase in net loss was driven by lower gross margin and higher operating expenses primarily due to acquisition costs and purchase accounting adjustments 
−Removed: in the three and six months ended September 30, 2021.
+Added: Income tax expense was less than $0.1 million in the three months ended December 31, 2021 and income tax benefit was $1.9 million in the nine months ended December 31, 2021.
+Added: I ncome tax benefit was $1.5 million and $1.2 million in the three and nine months ended 
+Added: December 31, 2020 . 
+Added: The income tax benefit in the nine months ended December 31, 2021 and the three and nine months ended December 31, 2020 is  a result of releasing valuation allowances to offset the recording of deferred tax liabilities from the Neeltran Acquisition in the nine month period ended December 31, 2021 and the NEPSI Acquisition in the three and nine months ended December 31, 2020.
+Added: The increase in income tax benefit in the nine month period ended December 31, 2021 is due primarily to higher foreign taxes in the prior year offsetting the tax benefit from the NEPSI Acquisition.
+Added: Net loss was $4.3 million an d $14.2 million in the three and nine months ended December 31, 2021 , compared to $7.9 million and $15.1 million in the three and nine months ended December 31, 2020.  
+Added: The decrease in net loss was driven primarily by the change in fair value of the contingent consideration for the earnout payment on the NEPSI Acquisition.
Non-GAAP Financial Measure - 
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The non-GAAP measures included in this Form 10-Q, however, should be considered in addition to, and not as a substitute for or superior to the comparable measures prepared in accordance with GAAP.
−Removed: We define non-GAAP net loss as net loss before stock-based compensation, amortization of acquisition-related intangibles, change in fair value of contingent consideration, acquisition costs, and other non-cash or unusual charges.  We believe non-GAAP net loss assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP net loss as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP net loss is set forth in the table below (in thousands, except per share data):
−Removed: Three Months Ended September 30,
−Removed: Six Months Ended September 30,
+Added: We define non-GAAP net loss as net loss before stock-based compensation, amortization of acquisition-related intangibles, acquisition costs, change in fair value of contingent consideration, and other non-cash or unusual charges.  We believe non-GAAP net loss assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP net loss as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP net loss is set forth in the table below (in thousands, except per share data):
+Added: Three Months Ended December 31,
+Added: Nine Months Ended December 31,
Stock-based compensation
Amortization of acquisition-related intangibles
−Removed: Change in fair value of contingent consideration
Acquisition costs
+Added: Change in fair value of contingent consideration
Non-GAAP net loss
2 unchanged sentences
We incurred non-GAAP net losses of $ 4.6 million and $ 12.4 million or $ 0.17  and $ 0.46 per share, for the 
−Removed: three and six months ended September 30, 2021 , compared to $ 2.7 million and $5.1 million , or $ 0.13 and $0.24 per share, for the 
−Removed: three and six months ended September 30, 2020 .
−Removed: The increase in the non-GAAP net loss for the three and six months ended September 30, 2021 was due to a higher operating loss driven by lower gross margin and higher operating expenses.  
+Added: three and nine months ended December 31, 2021 , compared to $ 3.4 million and $8.5 million , or $ 0.13 and $0.37 
+Added: per share, for the 
+Added: three and nine months ended December 31, 2020 .
+Added: The increase in the non-GAAP net loss for the three and nine months ended December 31, 2021 was due to a higher operating loss driven by lower gross margin and higher operating expenses.  
Liquidity and Capital Resources
−Removed: We have experienced recurring operating losses, and as of September 30, 2021 , had an accumulated deficit of $1,011.1 millio n.
+Added: We have experienced recurring operating losses, and as of December 31, 2021 , had an accumulated deficit of $1,015 millio n.
Our cash requirements depend on numerous factors, including the successful completion of our product development activities, our ability to commercialize our REG and ship protection system solutions, the rate of customer and market adoption of our products, collecting receivables according to established terms, the continued availability of U.S.
11 unchanged sentences
All cash payments associated with the Neeltran Acquisition were funded with cash on hand.
−Removed: As of September 30, 2021 , we had cash, cash equivalents, marketable securities and restricted cash of $57.0 million, compared to $80.7 million as of March 31, 2021, a decrease of $23.7 million.
−Removed: As of September 30, 2021 , we had approximately $2.3 million of cash, cash equivalents, and restricted cash in foreign bank accounts.
+Added: As of December 31, 2021 , we had cash, cash equivalents, marketable securities and restricted cash of $52.6 million, compared to $80.7 million as of March 31, 2021, a decrease of $28.1 million.
+Added: As of December 31, 2021 , we had approximately $1.3 million of cash, cash equivalents, and restricted cash in foreign bank accounts.
Our cash, cash equivalents, marketable securities and restricted cash are summarized as follows (in thousands):
−Removed: September 30, 2021
+Added: December 31, 2021
March 31, 2021
3 unchanged sentences
Total cash, cash equivalents, marketable securities and restricted cash
−Removed: For the six months ended September 30, 2021 , net cash used in operating activities was $11.7 million, compared to $6.6 million for the six months ended September 30, 2020. 
−Removed: The increase in net cash used in operations was due primarily to 
−Removed: the overall impact of increased sales activities on operating activities during the current year period.
−Removed: For the six months ended September 30, 2021 , net cash used in investing activities was $ 6.8  million, compared to net cash provided by investing activities of $23.7 million for the six months e nded September 30, 2020 .
−Removed: The increase in net cash used in investing activities was primarily due to the cash that was used to pay for the Neeltran Acquisition.
−Removed: Additionally the prior year period included $25 million for settlement of a certificate deposit that was used to fund the acquisition of NEPSI.
−Removed: There was no such transaction in the six months ended September 30, 2021.
−Removed: For the six months ended September 30, 2021 , net cash provided by financing activities was less than $0.1 million compared to net cash used in financing activities of $0.6 million in the six months ended September 30, 2020. 
−Removed: The decrease in net cash used in financing activities was due primarily to a decrease in the repurchase of common stock in connection with employee tax obligations upon the vesting of stock awards.
−Removed: As of September 30, 2021 , we had $6.2 million of restricted cash included in long-term assets and $2.3 million of restricted cash included in current assets. 
+Added: For the nine months ended December 31, 2021 , net cash used in operating activities was $15.9 million, compared to $4.9 million for the nine months ended December 31, 2020. 
+Added: The increase in net cash used in operations was due primarily to an increase in inventory purchases and accounts r eceivable activity in the nine months ended December 31, 2021 as compared to December 31, 2020.
+Added: For the nine months ended December 31, 2021 , net cash used in investing activities was $ 7.1  million, compared to $2.6 million for the nine months e nded December 31, 2020 .
+Added: The increase in net cash used in investing activities was primarily due to the cash that was used to pay for the Neeltran Acquisition. 
+Added: For the nine months ended December 31, 2021 , net cash provided by financing activities was less tha n $0.1 
+Added: million compared to $50.6 million in the nine months ended December 31, 2020. 
+Added: The decrease in net cash provided by financing activities was due to the prior year period including $51.5 million in proceeds from our October 2020 offering of common stock.
+Added: There was no such transaction in the nine months ended December 31, 2021.
+Added: As of December 31, 2021 , we had $6.0 million of restricted cash included in long-term assets and $2.7 million of restricted cash included in current assets. 
These amounts of restricted cash primarily represent deposits to secure letters of credit for various supply contracts and long-term projects, including the irrevocable letter of credit in the amount of $5.0 million to secure certain of our obligations under the Subcontract Agreement with ComEd.
2 unchanged sentences
In addition, we may seek to raise additional capital, which could be in the form of loans, convertible debt or equity, to fund our operating requirements and capital expenditures.
−Removed: Our liquidity is highly dependent on our ability to increase revenues, including our ability to collect revenues under our agreements with Inox, control our operating costs, and raise additional capital, if necessary.
+Added: Our liquidity is highly dependent on our ability to increase revenues, improve upon gross margins, control our operating costs, and raise additional capital, if necessary.
There can be no assurance that we will be able to raise additional capital on favorable terms or at all, or execute on any other means of improving our liquidity as described above.  Additionally, the impact of the COVID-19 pandemic on the global financial markets may reduce our ability to raise additional capital, if necessary, which could negatively impact our liquidity.
16 unchanged sentences
Measurement of Credit Losses on Financial Instruments .
−Removed: The amendments in ASU 2016-13 provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Following the release of ASU 2019-10 in November 2019, the new effective date, as long as the Company remains a smaller reporting company, would be annual reporting periods beginning after December 15, 2022.
+Added: The amendments in ASU 2016-13 provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Following the release of ASU 2019-10 in November 2019, the new effective date, as long as we remain a smaller reporting company, would be annual reporting periods beginning after December 15, 2022.
We are currently evaluating the impact, if any, that the adoption of ASU 2016-13 may have on our consolidated financial statements.
3 unchanged sentences
As of April 1, 2021, we have adopted ASU 2019-12 and noted no material impact on our consolidated financial statements.
+Added: In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805):
+Added: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers .
+Added: The amendments in ASU 2021-08 will improve the accounting for acquired revenue contracts with customers in a business combination.
+Added: Following the release of ASU 2021-08 in October 2021, the new effective date will be annual reporting periods beginning after December 15, 2022.
+Added: We are currently evaluating the impact, if any, that the adoption of ASU 2021-08 may have on our consolidated financial statements.
+Added: In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832):
+Added: Disclosures by Business Entities about Government Assistance .
+Added: The amendments in ASU 2021-10 will improve financial reporting by requiring disclosures that increase the transparency of transactions with government accounted for by applying a grant or contribution accounting model by analogy.
+Added: Following the release of ASU 2021-10 in November 2021, the new effective date will be annual reporting periods beginning after December 15, 2021.
+Added: We are currently evaluating the impact, if any, that the adoption of ASU 2021-10 may have on our consolidated financial statements.
We do not believe that, outside of those disclosed here, there are any other recently issued accounting pronouncements that will have a material impact on our consolidated financial statements.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.