XML 37 R30.htm IDEA: XBRL DOCUMENT v3.25.1

RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

3 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

SUMMARY OF EFFECT OF RESTATEMENT OF FINANCIAL STATEMENTS

The following tables set forth the restatement of the Company’s condensed consolidated balance sheets as of June 30, 2024 (unaudited), its condensed consolidated statements of operations and condensed consolidated statement of cash flow (unaudited) for the three months ended June 30, 2024.

Unaudited Condensed Consolidated Balance Sheet

		As of June 30, 2024
		(Unaudited)
						Adjustments
		As Previously Reported				Stock Based Payments				Equity Issuance Costs				Convertible Notes				Warrants				Acquisitions				Other				As Restated
ASSETS
Current assets:
Cash and cash equivalents		$	50,754,570			$	-			$	-			$	-			$	-			$	-			$	-			$	50,754,570
Accounts receivable, net			19,436,712				-				-				-				-				-				-				19,436,712
Due from related parties			4,800,000				-				-				-				-				-				-				4,800,000
Inventories			54,717,709				-				-				-				-				-				-				54,717,709
Prepaid expenses			4,244,197				-				-				-				-				-				-				4,244,197
Current portion of restricted cash			-				-				-				-				-				-				-				-
Total current assets			133,953,188				-				-				-				-				-				-				133,953,188
Equipment, net			57,998,933				-				-				-				-				-				-				57,998,933
Other assets:
Deposits			1,325,806				-				-				-				-				-				-				1,325,806
Patents, net			4,415,924				-				-				-				-				-				204,895				4,620,819
Other intangible assets, net			107,982,842				-				-				-				-				-				-				107,982,842
Goodwill			90,870,094				-				-				-				-				-				-				90,870,094
Right of use assets operating leases			1,825,564				-				-				-				-				-				-				1,825,564
Deferred income tax asset			4,046,430				-				-				-				-				-				(4,046,430	)			-
TOTAL ASSETS		$	402,418,781			$	-			$	-			$	-			$	-			$	-			$	(3,841,535	)		$	398,577,246
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	22,678,651			$	-			$	-			$	-			$	-			$	-			$	-			$	22,678,651
Accrued liabilities			17,141,591				-				-				-				-				-				34,778				17,176,369
Current portion of operating lease liability			488,887				-				-				-				-				-				-				488,887
Current portion of construction note payable			276,616				-				-				-				-				-				-				276,616
Insurance premium note payable			1,680,594				-				-				-				-				-				-				1,680,594
Total current liabilities			42,266,339				-				-				-				-				-				34,778				42,301,117
Long-term liabilities:
Contingent consideration payable			39,852				-				-				-				-				-				-				39,852
Income tax payable			-				-				-				-				-				-				1,609,520				1,609,520
Construction note payable, net of unamortized issuance costs			10,710,081				-				-				-				-				-				-				10,710,081
Operating lease liability, net of current portion			1,426,740				-				-				-				-				-				-				1,426,740
Total liabilities			54,443,012				-				-				-				-				-				1,644,298				56,087,310
Shareholders’ equity:
Series A cumulative perpetual preferred stock			1,400				-				-				-				-				-				-				1,400
Common stock			118,757				-				-				-				-				-				-				118,757
Additional paid-in capital			397,079,854				13,894,620				7,420,492				6,024,240				1,298,336				5,225,000				653,000				431,595,542
Accumulated deficit			(45,455,985	)			(13,894,620	)			(7,420,492	)			(6,024,240	)			(1,298,336	)			(5,225,000	)			(6,138,833	)			(85,457,506	)
Treasury stock			(3,768,257	)			-				-				-				-				-				-				(3,768,257	)
Total shareholders’ equity			347,975,769				-				-				-				-				-				(5,485,833	)			342,489,936
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	402,418,781			$	-			$	-			$	-			$	-			$	-			$	(3,841,535	)		$	398,577,246

Unaudited Condensed Consolidated Statement of Operations

		Three Months Ended June 30, 2024
		(Unaudited)
							Adjustments
		As Previously Reported					Stock Based Payments					Other					As Restated
Net revenues
Ammunition sales(1)		$		13,359,554			$		-			$		-			$		13,359,554
Marketplace revenue				12,281,991					-					-					12,281,991
Casing sales				5,312,005					-					-					5,312,005
Total revenues				30,953,550					-					-					30,953,550
Cost of revenues				21,164,428					-					11,821					21,176,249
Gross profit				9,789,122					-					(11,821	)				9,777,301
Operating expenses
Selling and marketing				298,613					-					-					298,613
Corporate general and administrative				11,323,078					-					-					11,323,078
Employee salaries and related expenses				4,462,101					720,034					-					5,182,135
Depreciation and amortization expense				3,381,669					-					-					3,381,669
Total operating expenses				19,465,461					720,034					-					20,185,495
Income/(loss) from operations				(9,676,339	)				(720,034	)				(11,821	)				(10,408,194	)
Other expenses
Other income				252,232					-					-					252,232
Interest expense				(196,522	)				-					-					(196,522	)
Total other expense				55,710					-					-					55,710
Income/(loss) before income taxes				(9,620,629	)				(720,034	)				(11,821	)				(10,352,484	)
Provision for income taxes				(2,559,342	)				-					6,966,833					4,407,491
Net income/(loss)				(7,061,287	)				(720,034	)				(6,978,654	)				(14,759,975	)
Preferred stock dividend				(774,132	)				-					-					(774,132	)
Net income/(loss) attributable to common stock shareholders		$		(7,835,419	)		$		(720,034	)		$		(6,978,654	)		$		(15,534,107	)
Net income/(loss) per share
Basic		$		(0.07	)												$		(0.13	)
Diluted		$		(0.07	)												$		(0.13	)

(1) Included in revenue for the three months ended June 30, 2024 are excise taxes of $1,303,603.

Unaudited Condensed Consolidated Statement of Cash Flow

		Three Months Ended June 30, 2024
		(Unaudited)
							Adjustments
		As Previously Reported					Stock Based Payments					Other					As Restated
Cash flows from operating activities:
Net loss		$	(7,061,287	)			$	(720,034	)			$	(6,978,654	)			$	(14,759,975	)
Adjustments to reconcile net loss to net cash used in operations:								-					-					-
Depreciation and amortization			4,692,556					-					11,821					4,704,377
Debt discount amortization			20,813					-					-					20,813
Employee stock awards			674,949					720,034					-					1,394,983
Common stock purchase options			41,055					-					-					41,055
Contingent consideration payable fair value			(19,986	)				-					-					(19,986	)
Allowance for doubtful accounts			87,689					-					-					87,689
Reduction in right of use asset			174,529					-					-					174,529
Valuation allowance			-					-					7,182,561					7,182,561
Deferred income taxes			(2,559,342	)				-					(215,728	)				(2,775,070	)
Changes in Current Assets and Liabilities
Accounts receivable			8,696,920					-					-					8,696,920
Due from related parties			(4,800,000	)				-					-					(4,800,000	)
Inventories			(9,154,375	)				-					-					(9,154,375	)
Prepaid expenses			312,409					-					-					312,409
Deposits			(976,528	)				-					-					(976,528	)
Accounts payable			(477,844	)				-					-					(477,844	)
Accrued liabilities			9,974,813					-					-					9,974,813
Operating lease liability			(173,860	)				-					-					(173,860	)
Net cash used in operating activities			(547,489	)				-					-					(547,489	)
Cash flows from investing activities:
Purchase of equipment			(1,419,857	)				-					-					(1,419,857	)
Net cash used in investing activities			(1,419,857	)				-					-					(1,419,857	)
								-					-					-
Cash flow from financing activities:
Payments on insurance premium note payment			(721,842	)				-					-					(721,842	)
Payments on construction note payable			(42,816	)				-					-					(42,816	)
Preferred stock dividends paid			(638,021	)				-					-					(638,021	)
Repurchase of common shares			(366,164	)				-					-					(366,164	)
Common stock repurchase plan			(1,095,682	)				-					-					(1,095,682	)
Net cash used in financing activities			(2,864,525	)				-					-					(2,864,525	)
																		-
Net decrease in cash			(4,831,871	)				-					-					(4,831,871	)
Cash, beginning of period			55,586,441															55,586,441
Cash, end of period		$	50,754,570				$	-				$	-				$	50,754,570

SUMMARY OF EFFECT OF RESTATEMENT OF ADDITIONAL PAID-IN CAPITAL

The following table presents the Additional Paid-In Capital (“APIC”) as previously reported, restatement adjustments and the APIC as restated for the three months ended June 30, 2024.

		For the three months ended June 30, 2024
		As Previously Reported					Reclassification					Current Period Adjustment						As Restated
Employee stock awards		$		605,838			$		68,750			$		720,034				$		1,394,622
Stock grants		$		68,750			$		(68,750	)		$		-				$		-

X

- Definition

Schedule of error corrections and prior period adjustments of additional paid in capital.

+ References

No definition available.

+ Details

Name:	poww_ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsOfAdditionalPaidInCapitalTableTextBlock
Namespace Prefix:	poww_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-7

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

+ Details

Name:	us-gaap_ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration