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Basis of presentation | 12 Months Ended
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Dec. 31, 2021
Accounting Policies [Abstract] |
Basis of presentation | Note 1 – Basis of presentation The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include all of the assets, liabilities and results of operations of Lifeway’s wholly owned subsidiaries (collectively “Lifeway” or the “Company”). All inter-company balances and transactions have been eliminated in the consolidated financial statements. Restatement of Previously Issued Consolidated Financial Statements Lifeway has restated herein its consolidated financial statements as of and for the year ended December 31, 2020. In addition, the Company has restated its unaudited quarterly consolidated financial statements for the first three quarters of the years ended December 31, 2020 and 2021, as presented in Note 17 – Correction of previously issued unaudited consolidated financial statements. Lifeway has also restated impacted amounts within the notes to the consolidated financial statements, as applicable. Restatement Background During the preparation of the fiscal 2021 consolidated financial statements, the Company identified an error in the accounting for its deferred income tax liabilities and goodwill. Specifically, in connection with its 2009 acquisition of Fresh Made, Inc., the Company did not record a deferred income tax liability and corresponding increase to goodwill related to the difference in the book and income tax bases for the $3,700 Fresh Made indefinite-lived brand name intangible asset acquired. The error resulted in a $1,180 understatement- of both deferred income tax liabilities and goodwill of as of January 1, 2020. The Restatement had no impact on the Company’s Consolidated Statements of Operations, Consolidated Statements of Cash Flows, or Consolidated Statements of Stockholders’ Equity during 2021 and 2020. The impact of the Restatement on periods prior to 2020 had no effect on opening retained earnings as of January 1, 2020. The following table summarizes the impact of the restatement adjustments on the Consolidated Balance Sheet for the year ended December 31, 2020.
Schedule of restatement adjustments |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2020 |
|  | As Previously Reported |  |  | Restatement Adjustment |  |  | As Restated |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 7,926 |  |  | $ | – |  |  | $ | 7,926 |
Accounts receivable, net of allowance for doubtful accounts and discounts & allowances of $1,350 at December 31, 2020 |  |  | 8,002 |  |  |  | – |  |  |  | 8,002 |
Inventories, net |  |  | 6,930 |  |  |  | – |  |  |  | 6,930 |
Prepaid expenses and other current assets |  |  | 1,163 |  |  |  | – |  |  |  | 1,163 |
Refundable income taxes |  |  | 31 |  |  |  | – |  |  |  | 31 |
Total current assets |  |  | 24,052 |  |  |  | – |  |  |  | 24,052 |
Property, plant and equipment, net |  |  | 21,048 |  |  |  | – |  |  |  | 21,048 |
Operating lease right-of use asset |  |  | 345 |  |  |  | – |  |  |  | 345 |
Intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Goodwill and indefinite-lived intangibles |  |  | 12,824 |  |  |  | 1,180 |  |  |  | 14,004 |
Other intangible assets, net |  |  | – |  |  |  | – |  |  |  | – |
Total intangible assets |  |  | 12,824 |  |  |  | 1,180 |  |  |  | 14,004 |
Other Assets |  |  | 1,800 |  |  |  | – |  |  |  | 1,800 |
Total assets |  | $ | 60,069 |  |  | $ | 1,180 |  |  | $ | 61,249 |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 5,592 |  |  |  | – |  |  | $ | 5,592 |
Accrued expenses |  |  | 2,196 |  |  |  | – |  |  |  | 2,196 |
Accrued income taxes |  |  | 653 |  |  |  | – |  |  |  | 653 |
Total current liabilities |  |  | 8,441 |  |  |  | – |  |  |  | 8,441 |
Line of credit |  |  | 2,768 |  |  |  | – |  |  |  | 2,768 |
Operating lease liabilities |  |  | 165 |  |  |  | – |  |  |  | 165 |
Deferred income taxes, net |  |  | 1,764 |  |  |  | 1,180 |  |  |  | 2,944 |
Other long-term liabilities |  |  | 77 |  |  |  | – |  |  |  | 77 |
Total liabilities |  |  | 13,215 |  |  |  | 1,180 |  |  |  | 14,395 |
Commitments and contingencies |  |  | – |  |  |  | – |  |  |  | – |
Stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, no par value; 2,500 shares authorized; none issued |  |  | – |  |  |  | – |  |  |  | – |
Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 15,604 shares outstanding at 2020 |  |  | 6,509 |  |  |  | – |  |  |  | 6,509 |
Paid-in capital |  |  | 2,600 |  |  |  | – |  |  |  | 2,600 |
Treasury stock, at cost |  |  | (12,450 | ) |  |  | – |  |  |  | (12,450 | )
Retained earnings |  |  | 50,195 |  |  |  | – |  |  |  | 50,195 |
Total stockholders’ equity |  |  | 46,854 |  |  |  | – |  |  |  | 46,854 |
Total liabilities and stockholders’ equity |  | $ | 60,069 |  |  | $ | 1,180 |  |  | $ | 61,249 |

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- Definition The entire disclosure for the business description and basis of presentation concepts. Business description describes the nature and type of organization including but not limited to organizational structure as may be applicable to holding companies, parent and subsidiary relationships, business divisions, business units, business segments, affiliates and information about significant ownership of the reporting entity. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI https://asc.fasb.org/topic&trid=2122369 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -URI https://asc.fasb.org/topic&trid=2122149 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI https://asc.fasb.org/topic&trid=2134479 + Details
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