XML 19 R8.htm IDEA: XBRL DOCUMENT
v3.8.0.1

3. Reclassifications and Restatement | 6 Months Ended
--- | ---
Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract] |
Reclassifications and Restatement | Our previously issued consolidated financial statements for quarter and six months ended March 31, 2017 and September 30, 2016 have been reclassified and restated. Classification of Marquis and Vintage Stock lines of credit with both a subjective acceleration clause and lock box arrangement were not properly classified as current liabilities according to ASC 470. The Company determined that $15,378,332 of long-term debt should have been classified as a current liability in the condensed consolidated balance sheet. Characterization of deposits (advance payments) on the purchase of Marquis carpet manufacturing equipment and the related cash flow presentation (operating vs. investing) in the statement of cash flows was an error and not presented correctly. The Company determined that cash from operations was overstated and cash used in investing were overstated by $1,816,855 in the condensed consolidated statement of cash flows. Conversion features on convertible notes and related warrants issued in 2012, 2013 and 2014 required bifurcation and derivative liability accounting due to the down round protection features included within the agreements in accordance with ASC 815. On December 22, 2014, the Company executed an amendment to remove the down round provisions for the convertible notes and warrants. As a result of these errors, the Company determined that accumulated deficit and additional paid-in capital were understated by $6,238,516 of the condensed consolidated balance sheet. We reclassified $10,738 from Series E Preferred Stock to additional paid in capital. Other receivables of $802,871 have been reclassified to prepaid expenses and other current assets.
|  | Fiscal Quarter and Six Months Ended March 31, 2017 |
|  | As |  |  |  |  |  |  |
|  | Previously |  |  |  |  |  |  |
|  | Reported |  |  | Change |  |  | (Restated) |
Consolidated balance sheet as of March 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Trade receivables, net |  | $ | 9,500,555 |  |  | $ | (802,871 | ) |  | $ | 8,697,684 |
Prepaid expenses and other current assets |  |  | 3,400,335 |  |  |  | 802,871 |  |  |  | 4,203,206 |
Total assets |  |  | 121,468,629 |  |  |  |  |  |  |  | 121,468,629 |
Current portion of long- term debt |  |  | 5,832,567 |  |  |  | 15,378,332 |  |  |  | 21,210,899 |
Long-term debt, net of current portion |  |  | 69,019,133 |  |  |  | (15,378,332 | ) |  |  | 53,640,801 |
Total liabilities |  |  | 90,550,517 |  |  |  |  |  |  |  | 90,550,517 |
Paid in capital |  |  | 56,773,754 |  |  |  | 6,249,254 |  |  |  | 63,023,008 |
Accumulated deficit |  |  | (25,568,783 | ) |  |  | (6,238,516 | ) |  |  | (31,807,299 | )
Series E convertible preferred stock |  |  | 10,866 |  |  |  | (10,738 | ) |  |  | 128 |
Total shareholders' equity |  |  | 30,918,112 |  |  |  | – |  |  |  | 30,918,112 |
Consolidated statement of cash flows for the six months ended March 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Change in accounts receivable |  |  | (1,090,686 | ) |  |  | 70,834 |  |  |  | (1,019,852 | )
Change in prepaid expenses and other current liabilities |  |  | 2,520,099 |  |  |  | (1,887,689 | ) |  |  | 632,410 |
Net cash provided by operations |  |  | 5,209,543 |  |  |  | (1,816,855 | ) |  |  | 3,392,688 |
Purchases of property and equipment |  |  | (7,100,362 | ) |  |  | 1,816,855 |  |  |  | (5,283,507 | )
Net cash used in investing activities |  |  | (54,507,921 | ) |  |  | 1,816,855 |  |  |  | (52,691,066 | )

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 The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration