In October 2010, Cytotech launched a co-developed Google TV product called the Revue at a price of $299. In advance of the product launch Cytotech contracted with a Chinese manufacturer to purchase components and produce the Revue on its behalf. Logitech estimated sales of 350,000 units during the 2010 holiday season. At its launch the product received largely poor reviews, with most analysts saying that the product was not ready for prime-time. During the 2010 holiday season, Cytotech sold only 165,000 units. On December 7, 2010, facing poor sales numbers, Cytotech instructed its manufacturer not to ship over 26,000 finished Revue units. In addition to the cost of the 26,000 units of inventory, Cytotech was also on the hook for over $11 million dollars of Revue inventory components that the manufacturer had purchased on behalf of Cytotech.

On May 21, 2014, Cytotech announced that it would have to delay filing its 10K because of an independent investigation into its financial reporting. The company also disclosed that it was being investigated by the SEC. Finally, on September 3, 2014, Cytotech restated its FY 2011 and 2012 financial results. Why was the inventory charge recorded in July of 2011 not sufficient? In other words, why did the company have to go back and change its financial statements?