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RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended
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Mar. 31, 2024
Prior Period Adjustment [Abstract] |
RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS | NOTE 3 – RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS In September 2024, a Special Committee of the Board of Directors initiated the Special Committee Investigation through independent legal counsel and independent forensic accountants. During the course of the Special Committee Investigation, the Special Committee discovered accounting and financial reporting errors that required restatement resulting primarily from (i) inaccurate valuation of, and accounting for share-based compensation awards to employees, non-employee directors, and other service providers, and shares issued in exchange for goods and services, (ii) inappropriate capitalization of certain share issuance costs, and (iii) inappropriate accounting for certain convertible notes and warrants issued by the Company. During the course of the Special Committee Investigation, the Special Committee also found that the Company had not properly disclosed certain executive officers, executive compensation and related party transactions. In conjunction with the restatement of the items above, we also made corresponding income tax adjustments to our consolidated financial statements as these balances were impacted by the aforementioned adjustments. The accounting and financial reporting errors identified as part of the Special Committee Investigation and subsequent restatement preparation are described and summarized as follows: Stock-based payments The valuation and amortization of expense related to stock-based payments to employees and non-employee directors and shares issued to service providers in exchange for goods and services were historically calculated incorrectly. The Company previously accounted for stock-based payments using a grant date fair value that was discounted from the fair value under the incorrect interpretation that the shares were restricted. In addition, the determination of the grant date was incorrectly determined with respect to historically issued stock-based payments. The Company re-evaluated the grant date fair value of stock-based payments under ASC 718. Under ASC 718, the grant date is the date at which the grantor and grantee have a mutual understanding of the key terms and conditions of the stock-based compensation agreement. The Company reviewed all stock-based payment awards to ensure the correct grant date was identified going back to the year ending December 31, 2017. The Company then evaluated the grant date fair value of all stock-based payment awards. The Company used the publicly available closing price of its stock on the date nearest the grant date as this is considered the best indicator of value. Additional expense of $2,422,490 for the years ended March 31, 2017 through 2021 has been recognized in opening retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated period presented. The following table summarizes the impact to the consolidated statement of operations of the change in stock-based compensation expense by fiscal year:
Year ended March 31, 2021 (unaudited) |  | $ |  | 4,192,414 |  |
Year ended March 31, 2022 |  |  |  | 1,422,138 |  |
Year ended March 31, 2023 |  |  |  | 4,141,364 |  |
Year Ended March 31, 2024 |  |  |  | 996,181 |  |
Equity issuance costs In the fiscal years ending March 31, 2021 and 2022, the Company incorrectly capitalized costs associated with equity financings. The equity issuance costs did not meet the definition to be capitalized against proceeds. The Company determined that certain capitalized costs should have been expensed as incurred in general and administrative expenses in the consolidated statement of operations. After re-evaluation, the Company determined that the services provided by certain legal and investor relations service providers during financing events did not meet the definition of issuance costs as they were not specific incremental costs that were directly attributable to the issuance of a debt or equity instrument. The Company recorded an adjustment to reclassify the issuance costs. The adjustment in the year ended March 31, 2021 has been recognized in opening retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated period presented. The adjustment for the year ended March 31, 2022 is reflected as a reclassification from additional paid in capital on the consolidated balance sheet to corporate general and administrative expenses on the consolidated statement of operations. The following table summarizes the impact to the consolidated statement of operations for the change in accounting for equity issuance costs:
Year ended March 31, 2021 (unaudited) |  | $ |  | 981,620 |  |
Year ended March 31, 2022 |  |  |  | 6,438,872 |  |
Warrants In the year ended March 31, 2018, the Company issued warrants and the resulting value and recognition of expense for those warrants was accounted for incorrectly. The warrant values were recalculated using a Black-Scholes option pricing model using the relevant inputs based on the terms of the respective warrant. The resulting expense of $606,237 has been reflected in opening retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated period presented. With respect to warrants issued in December 2021, the Company recorded expense in the periods the warrant vested; however, upon further review, the total warrants were earned upon signing the services agreement. The full value of the warrants issued should have been recorded upon signing of the agreement in December 2021. In conjunction with the restatement, the warrant was re-valued based on the contract date fair value. The impact to the consolidated statement of operations for the year ended March 31, 2022 was $692,099. Convertible Notes Accounting for convertible notes was historically incorrect. Management reviewed all previously issued convertible notes and determined that, historically, conversion options within the convertible note agreements were not accounted for correctly. As a result of analyzing the convertible notes issued in the year ended March 31, 2019, management determined that a beneficial conversion feature should have been recognized and amortized to interest expense over the term of the convertible notes. The expense would have been fully recognized in periods prior to the restatement and has been recognized in retained earnings on the consolidated balance sheet. In addition, an inducement offer was made to the note holders. After review of the accounting treatment initially recorded, management determined that the fair value of the inducement offer was not calculated correctly. The inducement offer was recalculated by determining the difference between the fair value of all securities and consideration transferred and the fair value of the consideration issuable under the original conversion terms. The resulting expense from the recalculation of the inducement offer has been recognized in retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated periods presented. Convertible notes and warrants issued in the year ended March 31, 2020 were also evaluated for proper accounting treatment. These convertible notes were not accounted for correctly as the Company did not account for the beneficial conversion feature within the convertible notes and did not allocate the consideration received upon issuance of the notes between the convertible notes and the stock purchase warrants. Under the terms on the convertible note, because the number of shares that would potentially be issued upon conversion were inversely indexed to the price of the Company's Common Stock, the conversion option should have been accounted for separately from the debt host agreement and recorded as a conversion option liability. In addition, the warrants should have been recorded as a liability until the exercise price was set due to the exercise price being indexed to a price upon a future event. In connection with the restatement, the warrants were calculated as a standard forward-start option with unit strike and initial price using a Black-Scholes model assuming constant volatility and rates. The proceeds from the issuance of the convertible notes was then allocated to the conversion option and the warrants at their fair values. The fair values exceeded the total proceeds, therefore no value would have been recorded for the notes and the Company would have recorded a loss on a derivative liability in the year ended March 31, 2020. In the year ended March 31, 2021, when the convertible note matured, the conversion price of the convertible notes as well as the exercise price of the warrants were set. The convertible notes and warrant fair values were calculated as of the date of conversion. The fair value resulted in an additional loss on a derivative liability then the liabilities were reclassified into equity upon conversion. The result of the transactions is accounted for as an adjustment to the opening retained earnings on the consolidated balance sheet. During the year ended March 31, 2021, the Company entered into a promissory note that was subsequently partially paid by converting a portion of the principal balance into shares of the Company's Common Stock. The extinguishment of debt was recorded incorrectly. Under ASC 470, Debt, an early extinguishment of debt is accounted for by recognizing a gain or loss on the difference between the reacquisition price of the debt and the net carrying amount of the debt. The fair value of the Common Stock issued to extinguish the debt was greater than the principal balance being repaid resulting in a loss on extinguishment. This loss is reflected in the opening retained earnings on the consolidated balance sheet. The total expense reflected in opening retained earnings on the consolidated balance sheet for all convertible note transactions is $6,024,240. Related party transactions Historically, the disclosure of related party transactions was omitted or not fully or accurately disclosed in the Company's financial statements. The Company performed an in-depth review and assessment of its related party transactions and the disclosure of such transactions in the affected periods. The Company determined that there were missing related party transaction disclosures which have been included in the related party footnotes (see Note 12, "Notes Payable - Related Party" and Note 18, "Related Party Transactions"). S ummary of the Cumulative Effect of Restatement Adjustments to Previously Reported Beginning Retained Earnings
|  | April 1,2021 |
Retained earnings, as previously reported |  | $ |  | (41,819,539 | )
Restatement adjustments: |  |  |  |
Share-based compensation |  |  |  | (6,614,904 | )
Warrants |  |  |  | (606,237 | )
Convertible notes |  |  |  | (6,024,240 | )
Other(1) |  |  |  | (6,478,136 | )
Income taxes |  |  |  | — |
Cumulative impact of restatement adjustments |  |  |  | (19,723,517 | )
Retained earnings at March 31, 2021, as restated |  | $ |  | (61,543,056 | )
(1) Includes adjustments for licenses, patents, business acquisitions and equity issuance costs Summary of the Effect of the Restatement of the Company’s Financial Statements The following tables set forth the restatement of the Company’s consolidated balance sheets as of March 31, 2024, 2023, and 2022, and its consolidated statements of operations for the fiscal years ended March 31, 2024, 2023, and 2022: Consolidated Balance Sheets
|  | As of March 31, 2024 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported |  |  | Stock Based Payments |  |  | Equity Issuance Costs |  |  | Convertible Notes |  |  | Warrants |  |  | Acquisition |  |  | Other |  |  | As Restated |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ |  | 55,586,441 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ |  | 55,586,441 |  |
Accounts receivable, net |  |  |  | 28,221,321 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 28,221,321 |  |
Inventories |  |  |  | 45,563,334 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 45,563,334 |  |
Prepaid expenses |  |  |  | 2,154,170 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 2,154,170 |  |
Current portion of restricted cash |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |
Total current assets |  |  |  | 131,525,266 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 131,525,266 |  |
Equipment, net |  |  |  | 58,082,040 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 58,082,040 |  |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  |  | 349,278 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 349,278 |  |
Patents, net |  |  |  | 4,539,290 |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  |  | 216,716 |  |  |  |  | 4,756,006 |  |
Other intangible assets, net |  |  |  | 111,049,067 |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 111,049,067 |  |
Goodwill |  |  |  | 90,870,094 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 90,870,094 |  |
Right of use assets - operating leases |  |  |  | 2,000,093 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 2,000,093 |  |
Deferred income tax asset |  |  |  | 1,487,088 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  |  | 2,920,403 |  |  |  |  | 4,407,491 |  |
TOTAL ASSETS |  | $ |  | 399,902,216 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 3137119 |  |  | $ |  | 403,039,335 |  |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ |  | 23,156,495 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ |  | 23,156,495 |  |
Accrued liabilities |  |  |  | 7,030,667 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 34,777 |  |  |  |  | 7,065,444 |  |
Current portion of operating lease liability |  |  |  | 479,651 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 479,651 |  |
Note payable related party |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |
Current portion of construction note payable |  |  |  | 273,459 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 273,459 |  |
Insurance premium note payable |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |
Total current liabilities |  |  |  | 30,940,272 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 34,777.00 |  |  |  |  | 30,975,049 |  |
Long-term liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration payable |  |  |  | 59,838 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 59,838 |  |
Income tax payable |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,609,520 |  |  |  |  | 1,609,520 |  |
Construction note payable, net of unamortized issuance costs |  |  |  | 10,735,241 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 10,735,241 |  |
Operating lease liability, net of current portion |  |  |  | 1,609,836 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,609,836 |  |
Deferred income tax liability |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |
Total liabilities |  |  |  | 43,345,187 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 1,644,297 |  |  |  |  | 44,989,484 |  |
Shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Series A cumulative perpetual preferred Stock |  |  |  | 1,400 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,400 |  |
Common stock |  |  |  | 119,181 |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 119,181 |  |
Additional paid-in capital |  |  |  | 396,730,170 |  |  |  |  | 13,174,586 |  |  |  |  | 7,420,492 |  |  |  |  | 6,024,240 |  |  |  |  | 1,298,336 |  |  |  |  | 5,225,000 |  |  |  |  | 653,000 |  |  |  |  | 430,525,824 |  |
Accumulated deficit |  |  |  | (37,620,566 | ) |  |  |  | (13,174,586 | ) |  |  |  | (7,420,492 | ) |  |  |  | (6,024,240 | ) |  |  |  | (1,298,336 | ) |  |  |  | (5,225,000 | ) |  |  |  | 839,822 |  |  |  |  | (69,923,398 | ) |
Treasury stock |  |  |  | (2,673,156 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | (2,673,156 | ) |
Total shareholders’ equity |  |  |  | 356,557,029 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 1,492,822 |  |  |  |  | 358,049,851 |  |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |  | $ |  | 399,902,216 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 3,137,119 |  |  | $ |  | 403,039,335 |  |
|  | As of March 31, 2023 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported |  |  | Stock Based Payments |  |  | Equity Issuance Costs |  |  | Convertible Notes |  |  | Warrants |  |  | Acquisitions |  |  | Other |  |  | As Restated |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ |  | 39,134,027 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ |  | 39,134,027 |  |
Accounts receivable, net |  |  |  | 29,346,380 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 29,346,380 |  |
Inventories |  |  |  | 54,344,819 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 54,344,819 |  |
Prepaid expenses |  |  |  | 5,126,667 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 5,126,667 |  |
Current portion of restricted cash |  |  |  | 500,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 500,000 |  |
Total current assets |  |  |  | 128,451,893 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 128,451,893 |  |
Equipment, net |  |  |  | 55,963,255 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 55,963,255 |  |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  |  | 7,028,947 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 7,028,947 |  |
Patents, net |  |  |  | 5,032,754 |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 264,000 |  |  |  |  | 5,296,754 |  |
Other intangible assets, net |  |  |  | 123,726,810 |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 123,726,810 |  |
Goodwill |  |  |  | 90,870,094 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 90,870,094 |  |
Right of use assets - operating leases |  |  |  | 1,261,634 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,261,634 |  |
Deferred income tax asset |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |  |  |  | 595,756 |  |  |  |  | 595,756 |  |
TOTAL ASSETS |  | $ |  | 412,335,387 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 859,756 |  |  | $ |  | 413,195,143 |  |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ |  | 18,079,397 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ |  | 18,079,397 |  |
Accrued liabilities |  |  |  | 4,353,354 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 34,778 |  |  |  |  | 4,388,132 |  |
Current portion of operating lease liability |  |  |  | 470,734 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 470,734 |  |
Note payable related party |  |  |  | 180,850 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 180,850 |  |
Current portion of construction note payable |  |  |  | 260,429 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 260,429 |  |
Insurance premium note payable |  |  |  | 2,118,635 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 2,118,635 |  |
Total current liabilities |  |  |  | 25,463,399 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 34,778 |  |  |  |  | 25,498,177 |  |
Long-term liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration payable |  |  |  | 140,378 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 140,378 |  |
Income tax payable |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,609,520 |  |  |  |  | 1,609,520 |  |
Construction note payable, net of unamortized issuance costs |  |  |  | 10,922,443 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 10,922,443 |  |
Operating lease liability, net of current portion |  |  |  | 903,490 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 903,490 |  |
Deferred income tax liability |  |  |  | 2,309,592 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | (2,309,592 | ) |  |  |  | - |  |
Total liabilities |  |  |  | 39,739,302 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (665,294 | ) |  |  |  | 39,074,008 |  |
Shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Series A cumulative perpetual preferred Stock |  |  |  | 1,400 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,400 |  |
Common stock |  |  |  | 118,294 |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 118,294 |  |
Additional paid-in capital |  |  |  | 391,940,374 |  |  |  |  | 12,178,405 |  |  |  |  | 7,420,492 |  |  |  |  | 6,024,240 |  |  |  |  | 1,298,336 |  |  |  |  | 5,225,000 |  |  |  |  | 653,000 |  |  |  |  | 424,739,847 |  |
Accumulated deficit |  |  |  | (18,941,825 | ) |  |  |  | (12,178,405 | ) |  |  |  | (7,420,492 | ) |  |  |  | (6,024,240 | ) |  |  |  | (1,298,336 | ) |  |  |  | (5,225,000 | ) |  |  |  | 872,050 |  |  |  |  | (50,216,248 | ) |
Treasury stock |  |  |  | (522,158 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | (522,158 | ) |
Total shareholders’ equity |  |  |  | 372,596,085 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 1,525,050 |  |  |  |  | 374,121,135 |  |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |  | $ |  | 412,335,387 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 859,756 |  |  | $ |  | 413,195,143 |  |
|  | As of March 31, 2022 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported |  |  | Stock Based Payments |  |  | Equity Issuance Costs |  |  | Convertible Notes |  |  | Warrants |  |  | Acquisition |  |  | Other |  |  | As Restated |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ |  | 23,281,475 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ |  | 23,281,475 |  |
Accounts receivable, net |  |  |  | 43,955,084 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 43,955,084 |  |
Due from related parties |  |  |  | 15,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15,000 |  |
Inventories |  |  |  | 59,016,152 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 59,016,152 |  |
Prepaid expenses |  |  |  | 3,423,925 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 3,423,925 |  |
Current portion of restricted cash |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |
Total current assets |  |  |  | 129,691,636 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 129,691,636 |  |
Equipment, net |  |  |  | 37,637,806 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 37,637,806 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
Deposits |  |  |  | 11,360,322 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 11,360,322 |  |
Patents, net |  |  |  | 5,526,218 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 311,284 |  |  |  |  | 5,837,502 |  |
Other intangible assets, net |  |  |  | 136,300,387 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 136,300,387 |  |
Goodwill |  |  |  | 90,870,094 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 90,870,094 |  |
Right of use assets - operating leases |  |  |  | 2,791,850 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 2,791,850 |  |
Deferred income tax asset |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,350,868 |  |  |  |  | 1,350,868 |  |
TOTAL ASSETS |  | $ |  | 414,178,313 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 1,662,152 |  |  | $ |  | 415,840,465 |  |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ |  | 26,817,083 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ |  | 26,817,083 |  |
Factoring liability |  |  |  | 485,671 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 485,671 |  |
Accrued liabilities |  |  |  | 6,178,814 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 34,778 |  |  |  |  | 6,213,592 |  |
Inventory credit facility |  |  |  | 825,675 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 825,675 |  |
Current portion of operating lease liability |  |  |  | 831,429 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 831,429 |  |
Current portion of note payable related party |  |  |  | 684,639 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 684,639 |  |
Total current liabilities |  |  |  | 35,823,311 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 34,778 |  |  |  |  | 35,858,089 |  |
Long-term liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration payable |  |  |  | 204,142 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 204,142 |  |
Income tax payable |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,609,520 |  |  |  |  | 1,609,520 |  |
Notes payable related party, net of current portion |  |  |  | 181,132 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 181,132 |  |
Construction note payable, net of unamortized issuance costs |  |  |  | 38,330 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 38,330 |  |
Operating lease liability, net of current portion |  |  |  | 2,091,351 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 2,091,351 |  |
Deferred income tax liability |  |  |  | 1,536,481 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | (1,536,481 | ) |  |  |  | - |  |
Total liabilities |  |  |  | 39,874,747 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 107,817 |  |  |  |  | 39,982,564 |  |
Shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Series A cumulative perpetual preferred Stock |  |  |  | 1,400 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 1,400 |  |
Common stock |  |  |  | 116,487 |  |  |  | 0 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | 116,487 |  |
Additional paid-in capital |  |  |  | 385,426,431 |  |  |  |  | 8,037,042 |  |  |  |  | 7,420,492 |  |  |  |  | 6,024,240 |  |  |  |  | 1,298,336 |  |  |  |  | 5,225,000 |  |  |  |  | 653,000 |  |  |  |  | 414,084,541 |  |
Accumulated deficit |  |  |  | (11,240,752 | ) |  |  |  | (8,037,042 | ) |  |  |  | (7,420,492 | ) |  |  |  | (6,024,240 | ) |  |  |  | (1,298,336 | ) |  |  |  | (5,225,000 | ) |  |  |  | 901,335 |  |  |  |  | (38,344,527 | ) |
Treasury stock |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  | - |  |
Total shareholders’ equity |  |  |  | 374,303,566 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 1,554,335 |  |  |  |  | 375,857,901 |  |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |  | $ |  | 414,178,313 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 1,662,152 |  |  | $ |  | 415,840,465 |  |
Consolidated Statements of Operations
|  | Fiscal Year Ended March 31, 2024 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported |  |  | Stock Based Payments |  |  | Other |  |  | As Restated |  |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ammunition sales |  | $ |  | 69,390,801 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 69,390,801 |  |
Marketplace revenue |  |  |  | 53,942,076 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 53,942,076 |  |
Casing sales |  |  |  | 21,721,695 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 21,721,695 |  |
Total revenues |  |  |  | 145,054,572 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 145,054,572 |  |
Cost of revenues |  |  |  | 102,431,803 |  |  |  |  | - |  |  |  |  | 47,284 |  |  |  |  | 102,479,087 |  |
Gross profit |  |  |  | 42,622,769 |  |  |  |  | - |  |  |  |  | (47,284 | ) |  |  |  | 42,575,485 |  |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  |  | 1,370,079 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 1,370,079 |  |
Corporate general and administrative |  |  |  | 29,583,274 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 29,583,274 |  |
Employee salaries and related expenses |  |  |  | 16,703,822 |  |  |  |  | 996,180 |  |  |  |  | - |  |  |  |  | 17,700,002 |  |
Depreciation and amortization expense |  |  |  | 13,542,791 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 13,542,791 |  |
Total operating expenses |  |  |  | 61,199,966 |  |  |  |  | 996,180 |  |  |  |  | - |  |  |  |  | 62,196,146 |  |
Loss from operations |  |  |  | (18,577,197 | ) |  |  |  | (996,180 | ) |  |  |  | (47,284 | ) |  |  |  | (19,620,661 | ) |
Other expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income |  |  |  | (332,593 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | (332,593 | ) |
Interest expense |  |  |  | (446,473 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | (446,473 | ) |
Total other expense |  |  |  | (779,066 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | (779,066 | ) |
Loss before income taxes |  |  |  | (19,356,263 | ) |  |  |  | (996,180 | ) |  |  |  | (47,284 | ) |  |  |  | (20,399,727 | ) |
Provision for income taxes |  |  |  | (3,791,063 | ) |  |  |  | - |  |  |  |  | (15,055 | ) |  |  |  | (3,806,118 | ) |
Net loss |  |  |  | (15,565,200 | ) |  |  |  | (996,180 | ) |  |  |  | (32,229 | ) |  |  |  | (16,593,609 | ) |
Preferred stock dividend |  |  |  | (3,122,049 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | (3,122,049 | ) |
Net loss attributable to common stock shareholders |  | $ |  | (18,687,249 | ) |  | $ |  | (996,180 | ) |  | $ |  | (32,229 | ) |  | $ |  | (19,715,658 | ) |
Net loss per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ |  | (0.16 | ) |  |  |  |  |  |  |  |  |  | $ |  | (0.17 | ) |
Diluted |  | $ |  | (0.16 | ) |  |  |  |  |  |  |  |  |  | $ |  | (0.17 | ) |
|  | Fiscal Year Ended March 31, 2023 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported |  |  | Stock Based Payments |  |  | Other |  |  | As Restated |  |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ammunition sales |  | $ |  | 114,116,044 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 114,116,044 |  |
Marketplace revenue |  |  |  | 63,149,673 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 63,149,673 |  |
Casing sales |  |  |  | 14,174,084 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 14,174,084 |  |
Total revenues |  |  |  | 191,439,801 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 191,439,801 |  |
Cost of revenues |  |  |  | 136,031,204 |  |  |  |  | - |  |  |  |  | 47,284 |  |  |  |  | 136,078,488 |  |
Gross profit |  |  |  | 55,408,597 |  |  |  |  | - |  |  |  |  | (47,284 | ) |  |  |  | 55,361,313 |  |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  |  | 4,729,540 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 4,729,540 |  |
Corporate general and administrative |  |  |  | 24,980,079 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 24,980,079 |  |
Employee salaries and related expenses |  |  |  | 15,679,135 |  |  |  |  | 4,141,363 |  |  |  |  | - |  |  |  |  | 19,820,498 |  |
Depreciation and amortization expense |  |  |  | 13,278,762 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 13,278,762 |  |
Total operating expenses |  |  |  | 58,667,516 |  |  |  |  | 4,141,363 |  |  |  |  | - |  |  |  |  | 62,808,879 |  |
Loss from operations |  |  |  | (3,258,919 | ) |  |  |  | (4,141,363 | ) |  |  |  | (47,284 | ) |  |  |  | (7,447,566 | ) |
Other expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income |  |  |  | 25,181 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 25,181 |  |
Interest expense |  |  |  | (632,062 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | (632,062 | ) |
Total other expense |  |  |  | (606,881 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | (606,881 | ) |
Loss before income taxes |  |  |  | (3,865,800 | ) |  |  |  | (4,141,363 | ) |  |  |  | (47,284 | ) |  |  |  | (8,054,447 | ) |
Provision for income taxes |  |  |  | 730,238 |  |  |  |  | - |  |  |  |  | (17,999 | ) |  |  |  | 712,239 |  |
Net loss |  |  |  | (4,596,038 | ) |  |  |  | (4,141,363 | ) |  |  |  | (29,285 | ) |  |  |  | (8,766,686 | ) |
Preferred stock dividend |  |  |  | (3,105,034 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | (3,105,034 | ) |
Net loss attributable to common stock shareholders |  | $ |  | (7,701,072 | ) |  | $ |  | (4,141,363 | ) |  | $ |  | (29,285 | ) |  | $ |  | (11,871,720 | ) |
Net loss per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ |  | (0.07 | ) |  |  |  |  |  |  |  |  |  | $ |  | (0.10 | ) |
Diluted |  | $ |  | (0.07 | ) |  |  |  |  |  |  |  |  |  | $ |  | (0.10 | ) |
|  | Fiscal Year Ended March 31, 2022 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported |  |  | Stock Based Payments |  |  | Equity Issuance Costs |  |  | Warrants |  |  | Other |  |  | As Restated |  |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ammunition sales |  | $ |  | 161,459,025 |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | - |  |  | $ |  | 161,459,025 |  |
Marketplace revenue |  |  |  | 64,608,516 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 64,608,516 |  |
Casing sales |  |  |  | 14,201,625 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 14,201,625 |  |
Total revenues |  |  |  | 240,269,166 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 240,269,166 |  |
Cost of revenues |  |  |  | 151,505,657 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 47,284 |  |  |  |  | 151,552,941 |  |
Gross profit |  |  |  | 88,763,509 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (47,284 | ) |  |  |  | 88,716,225 |  |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  |  | 7,310,216 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 7,310,216 |  |
Corporate general and administrative |  |  |  | 16,986,344 |  |  |  |  | 3,168 |  |  |  |  | 6,438,872 |  |  |  |  | 692,099 |  |  |  |  | - |  |  |  |  | 24,120,483 |  |
Employee salaries and related expenses |  |  |  | 13,615,439 |  |  |  |  | 1,418,969 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 15,034,408 |  |
Depreciation and amortization expense |  |  |  | 13,702,148 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 22,917 |  |  |  |  | 13,725,065 |  |
Total operating expenses |  |  |  | 51,614,147 |  |  |  |  | 1,422,137 |  |  |  |  | 6,438,872 |  |  |  |  | 692,099 |  |  |  |  | 22,917 |  |  |  |  | 60,190,172 |  |
Income/(loss) from operations |  |  |  | 37,149,362 |  |  |  |  | (1,422,137 | ) |  |  |  | (6,438,872 | ) |  |  |  | (692,099 | ) |  |  |  | (70,201 | ) |  |  |  | 28,526,053 |  |
Other expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income |  |  |  | 21,840 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 21,840 |  |
Interest expense |  |  |  | (637,797 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (637,797 | ) |
Total other expense |  |  |  | (615,957 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (615,957 | ) |
Income/(loss) before income taxes |  |  |  | 36,533,405 |  |  |  |  | (1,422,137 | ) |  |  |  | (6,438,872 | ) |  |  |  | (692,099 | ) |  |  |  | (70,201 | ) |  |  |  | 27,910,096 |  |
Provision for income taxes |  |  |  | 3,285,969 |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (1,243,051 | ) |  |  |  | 2,042,918 |  |
Net income/(loss) |  |  |  | 33,247,436 |  |  |  |  | (1,422,137 | ) |  |  |  | (6,438,872 | ) |  |  |  | (692,099 | ) |  |  |  | 1,172,850 |  |  |  |  | 25,867,178 |  |
Preferred stock dividend |  |  |  | (2,668,649 | ) |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (2,668,649 | ) |
Net income/(loss) attributable to common stock shareholders |  | $ |  | 30,578,787 |  |  | $ |  | (1,422,137 | ) |  | $ |  | (6,438,872 | ) |  | $ |  | (692,099 | ) |  | $ |  | 1,172,850 |  |  | $ |  | 23,198,529 |  |
Net income/(loss) per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ |  | 0.27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ |  | 0.21 |  |
Diluted |  | $ |  | 0.27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ |  | 0.20 |  |
Consolidated Statements of Stockholders' Equity The following tables present the Additional Paid-In Capital ("APIC") as previously reported, restatement adjustments and the APIC as restated for the years ended March 31, 2024, 2023 and 2022.
|  | As Previously Reported |  |  | Reclassification |  |  | Current Period Adjustment |  |  | As Restated |
Employee stock awards |  | $ | 4,080,170 |  |  | $ | 203,000 |  |  | $ | 996,181 |  |  | $ | 5,279,351 |
Stock grants |  |  | 203,000 |  |  |  | (203,000 | ) |  |  | - |  |  |  | - |
|  | As Previously Reported |  |  | Reclassification |  |  | Current Period Adjustment |  |  | As Restated |
Employee stock awards |  | $ | 5,806,003 |  |  | $ | 179,094 |  |  | $ | 4,141,363 |  |  | $ | 10,126,460 |
Stock grants |  |  | 179,094 |  |  |  | (179,094 | ) |  |  | - |  |  |  | - |
|  | As Previously Reported |  |  | Reclassification |  |  | Current Period Adjustment |  |  | As Restated |
Acquisition stock issuances |  | $ | 142,691,282 |  |  | $ | - |  |  | $ | 666,372 |  |  | $ | 143,357,654 |
Common stock issued for services and equipment |  |  | 1,631,701 |  |  |  | - |  |  |  | 3,854,895 |  |  |  | 5,486,596 |
Employee stock awards |  |  | 5,759,000 |  |  |  | 252,488 |  |  |  | 1,417,162 |  |  |  | 7,428,650 |
Stock grants |  |  | 252,488 |  |  |  | (252,488 | ) |  |  | - |  |  |  | - |
Issuance of Series A Preferred Stock, net of issuance costs |  |  | 31,008,796 |  |  |  | - |  |  |  | 1,898,600 |  |  |  | 32,907,396 |
Warrants issued for services |  |  | 1,090,076 |  |  |  | - |  |  |  | 692,099 |  |  |  | 1,782,175 |
Consolidated Statements of Cash Flow
|  | For the Year Ended March 31, 2024 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported | Stock Based Payments | Other |  |  | As Restated
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Net income/(loss) |  | $ | (15,565,200 | ) |  | $ | (996,180 | ) |  | $ | (32,229 | ) |  | $ | (16,593,609 | ) |
Adjustments to reconcile net loss to cash provided by operations: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 18,813,897 |  |  |  | - |  |  |  | 47,284 |  |  |  | 18,861,181 |  |
Debt discount amortization |  |  | 83,253 |  |  |  | - |  |  |  | - |  |  |  | 83,253 |  |
Employee stock awards |  |  | 4,285,108 |  |  |  | 996,180 |  |  |  | - |  |  |  | 5,281,288 |  |
Common stock purchase options |  |  | 430,457 |  |  |  | - |  |  |  | - |  |  |  | 430,457 |  |
Contingent consideration payable fair value |  |  | (80,540 | ) |  |  | - |  |  |  | - |  |  |  | (80,540 | ) |
Allowance for doubtful accounts |  |  | 419,527 |  |  |  | - |  |  |  | - |  |  |  | 419,527 |  |
(Gain)/loss on disposal of assets |  |  | 259,540 |  |  |  | - |  |  |  | - |  |  |  | 259,540 |  |
Reduction in right of use asset |  |  | 476,252 |  |  |  | - |  |  |  | - |  |  |  | 476,252 |  |
Deferred income taxes |  |  | (3,796,680 | ) |  |  | - |  |  |  | (15,055 | ) |  |  | (3,811,735 | ) |
Changes in current assets and liabilities |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |
Accounts receivable |  |  | 705,532 |  |  |  | - |  |  |  | - |  |  |  | 705,532 |  |
Inventories |  |  | 8,781,485 |  |  |  | - |  |  |  | - |  |  |  | 8,781,485 |  |
Prepaid expenses |  |  | 4,028,696 |  |  |  | - |  |  |  | - |  |  |  | 4,028,696 |  |
Deposits |  |  | 6,679,669 |  |  |  | - |  |  |  | - |  |  |  | 6,679,669 |  |
Accounts payable |  |  | 5,077,098 |  |  |  | - |  |  |  | - |  |  |  | 5,077,098 |  |
Accrued liabilities |  |  | 2,532,695 |  |  |  | - |  |  |  | - |  |  |  | 2,532,695 |  |
Operating lease liability |  |  | (499,448 | ) |  |  | - |  |  |  | - |  |  |  | (499,448 | ) |
Net cash provided by operating activities |  |  | 32,631,341 |  |  |  | - |  |  |  | - |  |  |  | 32,631,341 |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property, plant, and equipment |  |  | (8,024,765 | ) |  |  | - |  |  |  | - |  |  |  | (8,024,765 | ) |
Proceeds from disposal of assets |  |  | 3,750 |  |  |  | - |  |  |  | - |  |  |  | 3,750 |  |
Net cash used in investing activities |  |  | (8,021,015 | ) |  |  | - |  |  |  | - |  |  |  | (8,021,015 | ) |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from factoring liability |  |  | 37,252,869 |  |  |  | - |  |  |  | - |  |  |  | 37,252,869 |  |
Payments on factoring liability |  |  | (37,252,869 | ) |  |  | - |  |  |  | - |  |  |  | (37,252,869 | ) |
Payments on note payable - related party |  |  | (180,850 | ) |  |  | - |  |  |  | - |  |  |  | (180,850 | ) |
Payments on insurance premium note payment |  |  | (3,174,834 | ) |  |  | - |  |  |  | - |  |  |  | (3,174,834 | ) |
Payments on construction note payable |  |  | (257,425 | ) |  |  | - |  |  |  | - |  |  |  | (257,425 | ) |
Common stock issued for exercised warrants |  |  | 76,200 |  |  |  | - |  |  |  | - |  |  |  | 76,200 |  |
Preferred stock dividends paid |  |  | (2,968,923 | ) |  |  | - |  |  |  | - |  |  |  | (2,968,923 | ) |
Common stock repurchase plan |  |  | (2,152,080 | ) |  |  | - |  |  |  | - |  |  |  | (2,152,080 | ) |
Net cash used in financing activities |  |  | (8,657,912 | ) |  |  | - |  |  |  | - |  |  |  | (8,657,912 | ) |
Net increase/(decrease) in cash |  |  | 15,952,414 |  |  |  | - |  |  |  | - |  |  |  | 15,952,414 |  |
Cash, beginning of period |  |  | 39,134,027 |  |  |  | - |  |  |  | - |  |  |  | 39,134,027 |  |
Restricted cash, beginning of period |  |  | 500,000 |  |  |  | - |  |  |  | - |  |  |  | 500,000 |  |
Cash and restricted cash, end of period |  | $ | 55,586,441 |  |  | $ | - |  |  | $ | - |  |  | $ | 55,586,441 |  |
Restricted cash, end of period |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |
Cash, end of period |  | $ | 55,586,441 |  |  | $ | - |  |  | $ | - |  |  | $ | 55,586,441 |  |
|  | For the Year Ended March 31, 2023 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported | Stock Based Payments | Other |  |  | As Restated
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Net income/(loss) |  | $ | (4,596,038 | ) |  | $ | (4,141,363 | ) |  | $ | (29,285 | ) |  | $ | (8,766,686 | ) |
Adjustments to reconcile net loss to cash provided by operations: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 17,519,949 |  |  |  | - |  |  |  | 47,284 |  |  |  | 17,567,233 |  |
Debt discount amortization |  |  | 83,253 |  |  |  | - |  |  |  | - |  |  |  | 83,253 |  |
Employee stock awards |  |  | 5,986,873 |  |  |  | 4,141,363 |  |  |  | - |  |  |  | 10,128,236 |  |
Contingent consideration payable fair value |  |  | (63,764 | ) |  |  | - |  |  |  | - |  |  |  | (63,764 | ) |
Allowance for doubtful accounts |  |  | 191,299 |  |  |  | - |  |  |  | - |  |  |  | 191,299 |  |
Reduction in right of use asset |  |  | 629,140 |  |  |  | - |  |  |  | - |  |  |  | 629,140 |  |
Warrants issued for services |  |  | 213,819 |  |  |  | - |  |  |  | - |  |  |  | 213,819 |  |
Deferred income taxes |  |  | 730,238 |  |  |  | - |  |  |  | (17,999 | ) |  |  | 712,239 |  |
Changes in current assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 14,417,405 |  |  |  | - |  |  |  | - |  |  |  | 14,417,405 |  |
Due to related parties |  |  | 15,000 |  |  |  | - |  |  |  | - |  |  |  | 15,000 |  |
Inventories |  |  | 4,671,333 |  |  |  | - |  |  |  | - |  |  |  | 4,671,333 |  |
Prepaid expenses |  |  | 2,763,855 |  |  |  | - |  |  |  | - |  |  |  | 2,763,855 |  |
Deposits |  |  | 4,306,375 |  |  |  | - |  |  |  | - |  |  |  | 4,306,375 |  |
Accounts payable |  |  | (8,694,813 | ) |  |  | - |  |  |  | - |  |  |  | (8,694,813 | ) |
Accrued liabilities |  |  | (1,970,078 | ) |  |  | - |  |  |  | - |  |  |  | (1,970,078 | ) |
Operating lease liability |  |  | (647,480 | ) |  |  | - |  |  |  | - |  |  |  | (647,480 | ) |
Net cash provided by operating activities |  |  | 35,556,366 |  |  |  | - |  |  |  | - |  |  |  | 35,556,366 |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property, plant, and equipment |  |  | (12,541,325 | ) |  |  | - |  |  |  | - |  |  |  | (12,541,325 | ) |
Net cash used in investing activities |  |  | (12,541,325 | ) |  |  | - |  |  |  | - |  |  |  | (12,541,325 | ) |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Payments on inventory facility, net |  |  | (825,675 | ) |  |  | - |  |  |  | - |  |  |  | (825,675 | ) |
Proceeds from factoring liability |  |  | 71,348,761 |  |  |  | - |  |  |  | - |  |  |  | 71,348,761 |  |
Payments on factoring liability |  |  | (71,834,432 | ) |  |  | - |  |  |  | - |  |  |  | (71,834,432 | ) |
Payments on note payable - related party |  |  | (684,921 | ) |  |  | - |  |  |  | - |  |  |  | (684,921 | ) |
Payments on insurance premium note payment |  |  | (2,134,143 | ) |  |  | - |  |  |  | - |  |  |  | (2,134,143 | ) |
Proceeds from construction note payable |  |  | 1,000,000 |  |  |  | - |  |  |  | - |  |  |  | 1,000,000 |  |
Payments on construction note payable |  |  | (150,743 | ) |  |  | - |  |  |  | - |  |  |  | (150,743 | ) |
Common stock issued for exercised warrants |  |  | 101,506 |  |  |  | - |  |  |  | - |  |  |  | 101,506 |  |
Preferred stock dividends paid |  |  | (2,960,416 | ) |  |  | - |  |  |  | - |  |  |  | (2,960,416 | ) |
Common stock repurchase plan |  |  | (522,426 | ) |  |  | - |  |  |  | - |  |  |  | (522,426 | ) |
Net cash used in financing activities |  |  | (6,662,489 | ) |  |  | - |  |  |  | - |  |  |  | (6,662,489 | ) |
Net increase/(decrease) in cash |  |  | 16,352,552 |  |  |  | - |  |  |  | - |  |  |  | 16,352,552 |  |
Cash, beginning of period |  |  | 23,281,475 |  |  |  | - |  |  |  | - |  |  |  | 23,281,475 |  |
Restricted cash, beginning of period |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |
Cash and restricted cash, end of period |  | $ | 39,634,027 |  |  | $ | - |  |  | $ | - |  |  | $ | 39,634,027 |  |
Restricted cash, end of period |  | $ | 500,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 500,000 |  |
Cash, end of period |  | $ | 39,134,027 |  |  | $ | - |  |  | $ | - |  |  | $ | 39,134,027 |  |
|  | For the Year Ended March 31, 2022 |  |
|  |  |  |  | Adjustments |  |  |  |  |
|  | As Previously Reported | Stock Based Payments |  |  | Equity Issuance Costs | Warrants | Other |  |  | As Restated
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income/(loss) |  | $ | 33,247,436 |  |  | $ | (1,422,137 | ) |  | $ | (6,438,872 | ) |  | $ | (692,099 | ) |  | $ | 1,172,850 |  |  | $ | 25,867,178 |  |
Adjustments to reconcile net loss to cash provided by operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 17,339,093 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 70,201 |  |  |  | 17,409,294 |  |
Debt discount amortization |  |  | 38,330 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 38,330 |  |
Employee stock awards |  |  | 6,011,488 |  |  |  | 1,418,969 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7,430,457 |  |
Stock for services |  |  | 4,200 |  |  |  | 3,168 |  |  |  | 5,352,500 |  |  |  | - |  |  |  | - |  |  |  | 5,359,868 |  |
Contingent consideration payable fair value |  |  | (385,750 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (385,750 | ) |
Allowance for doubtful accounts |  |  | 2,748,250 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,748,250 |  |
(Gain)/loss on disposal of assets |  |  | (12,044 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (12,044 | ) |
Reduction in right of use asset |  |  | 720,491 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 720,491 |  |
Warrants issued for services |  |  | 718,045 |  |  |  | - |  |  |  | - |  |  |  | 692,099 |  |  |  | - |  |  |  | 1,410,144 |  |
Deferred income taxes |  |  | 1,536,481 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,243,051 | ) |  |  | 293,430 |  |
Changes in current assets and liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | (20,707,052 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (20,707,052 | ) |
Due to related parties |  |  | 657 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 657 |  |
Inventories |  |  | (43,149,234 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (43,149,234 | ) |
Prepaid expenses |  |  | 1,996,287 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,996,287 |  |
Deposits |  |  | (8,826,504 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (8,826,504 | ) |
Accounts payable |  |  | 9,930,191 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9,930,191 |  |
Accrued liabilities |  |  | 2,374,686 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,374,686 |  |
Operating lease liability |  |  | (732,468 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (732,468 | ) |
Net cash provided by operating activities |  |  | 2,852,583 |  |  |  | - |  |  |  | (1,086,372 | ) |  |  | - |  |  |  | - |  |  |  | 1,766,211 |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gemini acquisition |  |  | (50,517,840 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (50,517,840 | ) |
Purchase of property, plant, and equipment |  |  | (19,218,982 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (19,218,982 | ) |
Proceeds from disposal of assets |  |  | 59,800 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 59,800 |  |
Net cash used in investing activities |  |  | (69,677,022 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (69,677,022 | ) |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payments on inventory facility, net |  |  | (265,422 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (265,422 | ) |
Proceeds from factoring liability |  |  | 121,488,045 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 121,488,045 |  |
Payments on factoring liability |  |  | (122,844,562 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (122,844,562 | ) |
Payments on assumed debt from Gemini |  |  | (50,000,000 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (50,000,000 | ) |
Payments on note payable - related party |  |  | (625,147 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (625,147 | ) |
Payments on insurance premium note payment |  |  | (2,208,369 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2,208,369 | ) |
Payments on note payable |  |  | (4,000,000 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (4,000,000 | ) |
Sale of preferred stock |  |  | 35,000,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 35,000,000 |  |
Common stock issued for exercised warrants |  |  | 943,907 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 943,907 |  |
Common stock issuance costs |  |  | (3,199,922 | ) |  |  | - |  |  |  | 3,199,922 |  |  |  | - |  |  |  | - |  |  |  | - |  |
Preferred stock issuance costs |  |  | - |  |  |  | - |  |  |  | (2,113,550 | ) |  |  | - |  |  |  | - |  |  |  | (2,113,550 | ) |
Preferred stock dividends paid |  |  | (2,524,087 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2,524,087 | ) |
Net cash used in financing activities |  |  | (28,235,557 | ) |  |  | - |  |  |  | 1,086,372 |  |  |  | - |  |  |  | - |  |  |  | (27,149,185 | ) |
Net increase/(decrease) in cash |  |  | (95,059,996 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (95,059,996 | ) |
Cash, beginning of period |  |  | 118,341,471 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 118,341,471 |  |
Restricted cash, beginning of period |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |
Cash and restricted cash, end of period |  | $ | 23,281,475 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 23,281,475 |  |
Restricted cash, end of period |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |
Cash, end of period |  | $ | 23,281,475 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 23,281,475 |  |

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