NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2022 AND 2021

(Dollars In ThousanDs, unless o Therw Ise noTeD) adoption, the Company elected lessee practical expedients to not separate non lease components from lease components for leases in the office equipment category.

On January 1, 2022, due to the cumulative impact of adopting ASC Topic 842, the Company recorded a net decrease to opening balance of stockholder’s (deficit) equity of $251, which is net of tax of $22. The impact to the line items in the consolidated balance sheet were as follows:

Refer to Note 10 “Leases” for further discussion related to the impact of adopting ASC Topic 842. The adoption did not have a material effect on the consolidated statements of operations or cash flows.

Subsequent Events

In preparing these consolidated financial statements, management has evaluated events and transactions for potential recognition or disclosure through March 3, 2023, the date the consolidated financial statements were available to be issued.