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Restatement of Previously Issued Financial Statements (Tables)

12 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of the Impact of the Adjustments Related to the Misstatements

A summary of the impact of the adjustments described above relating to the Misstatements as of, and for the fiscal years ended March 31, 2023, 2022 and 2021, is as follows:

						Year ended
						March 31, 2023												March 31, 2022												March 31, 2021
(in thousands)						As previously reported						As restated						As previously reported						As restated						As previously reported						As restated
Sales						$	256,858					$	256,579					$	273,417					$	272,282					$	309,215					$	303,583
Gross profit						$	71,014					$	70,735					$	78,076					$	76,941					$	89,948					$	84,316
Income (loss) from operations						$	(1,430)					$	6,051					$	25,710					$	24,290					$	37,587					$	30,531
Net income (loss)						$	233					$	5,140					$	21,100					$	18,716					$	30,603					$	23,919

			Year ended
			March 31, 2023												March 31, 2022												March 31, 2021
			As previously reported						As restated						As previously reported						As restated						As previously reported						As restated
Net income (numerator):
Net income			$	233					$	5,140					$	21,100					$	18,716					$	30,603					$	23,919
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation			20,275						20,275						20,176						20,176						20,060						20,060
Common shares issuable upon the vesting of restricted stock			54						54						172						172						49						49
Common shares issuable upon conversion of preferred shares			10						10						10						10						10						10
Shares used in diluted computation			20,339						20,339						20,358						20,358						20,119						20,119
Net income per common share:
Basic			$	0.01					$	0.25					$	1.05					$	0.93					$	1.53					$	1.19
Diluted			$	0.01					$	0.25					$	1.04					$	0.92					$	1.52					$	1.19

Summary of Restatement - Consolidated Balance Sheets

			March 31, 2023																								March 31, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
ASSETS
Current assets:
Cash and cash equivalents			$	104,086					$	—											$	104,086					$	111,080					$	—											$	111,080
Accounts receivable, less allowance for doubtful accounts of $35 and $39, respectively			1,740						—												1,740						1,913						—												1,913
Inventories - finished goods			19,023						—												19,023						32,455						—												32,455
Prepaid expenses and other current assets			4,719																		4,719						4,866						—												4,866
Prepaid income taxes			1,883						(1,020)						b						863						681						—												681
Total current assets			131,451						(1,020)												130,431						150,995						—												150,995
Noncurrent assets:
Property and equipment, net			26,178						—												26,178						24,464						—												24,464
Intangible and other assets			5,860						—												5,860						860						—												860
Deferred tax assets, net			628						4,381						b						5,009						—						3,379						b						3,379
Total noncurrent assets			32,666						4,381												37,047						25,324						3,379												28,703
Total assets			$	164,117					$	3,361											$	167,478					$	176,319					$	3,379											$	179,698

			March 31, 2023																								March 31, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			$	25,208					$	—											$	25,208					$	27,500					$	—											$	27,500
Sales tax payable			—						26,113						a						26,113						—						24,157						a						24,157
Accrued expenses and other current liabilities			11,289						(5,098)						a						6,191						5,697						(1,106)						a						4,591
Income taxes payable			—						—												—						—						—												—
Total current liabilities			36,497						21,015												57,512						33,197						23,051												56,248
Deferred tax liabilities			—						—												—						936						(936)						b						—
Other long-term liabilities			3,825						(3,825)						a						—						—						—												—
Total liabilities			40,322						17,190												57,512						34,133						22,115												56,248
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 5,000 shares authorized; 3 convertible shares issued and outstanding with a liquidation preference of $4 per share			9						—												9						9						—												9
Common stock, $.001 par value, 40,000 shares authorized; 21,084 and 20,979 shares issued and outstanding, respectively			21						—												21						21						—												21
Additional paid-in capital			18,277						—												18,277						11,660						—												11,660
Retained earnings			105,488						(13,829)						a, b						91,659						130,496						(18,736)						a, b						111,760
Total shareholders' equity			123,795						(13,829)												109,966						142,186						(18,736)												123,450
Total liabilities and shareholders' equity			$	164,117					$	3,361											$	167,478					$	176,319					$	3,379											$	179,698

Summary of Restatement - Consolidated Statements of Operations

			Year ended March 31, 2023																								Year ended March 31, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Sales			$	256,858					$	(279)					a						$	256,579					$	273,417					$	(1,135)					a						$	272,282
Cost of sales			185,844						—												185,844						195,341						—												195,341
Gross profit			71,014						(279)												70,735						78,076						(1,135)												76,941
Operating expenses:
General and administrative			49,474						(7,760)						a						41,714						30,829						285						a						31,114
Advertising			19,424						—												19,424						18,799						—												18,799
Depreciation			3,546						—												3,546						2,738						—												2,738
Total operating expenses			72,444						(7,760)												64,684						52,366						285												52,651
(Loss) income from operations			(1,430)						7,481												6,051						25,710						(1,420)												24,290
Other income:
Interest income (expense), net			2,070						(1,620)						a						450						335						(1,466)						a						(1,131)
Other, net			944						—												944						1,026						—												1,026
Total other income			3,014						(1,620)												1,394						1,361						(1,466)												(105)
Income before provision for income taxes			1,584						5,861												7,445						27,071						(2,886)												24,185
Provision for income taxes			1,351						954						b						2,305						5,971						(502)						b						5,469
Net income			$	233					$	4,907											$	5,140					$	21,100					$	(2,384)											$	18,716
Net income per common share:
Basic			$	0.01					$	0.24											$	0.25					$	1.05					$	(0.12)											$	0.93
Diluted			$	0.01					$	0.24											$	0.25					$	1.04					$	(0.12)											$	0.92
Weighted average number of common shares outstanding:
Basic			20,275						—												20,275						20,176						—												20,176
Diluted			20,339						—												20,339						20,358						—												20,358
Cash dividends declared per common share			$	1.20					$	—											$	1.20					$	1.20					$	—											$	1.20

			Year ended March 31, 2021
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Sales			$	309,215					$	(5,632)					a						$	303,583
Cost of sales			219,267						—												219,267
Gross profit			89,948						(5,632)												84,316
Operating expenses:
General and administrative			28,293						1,424						a						29,717
Advertising			21,641						—												21,641
Depreciation			2,427						—												2,427
Total operating expenses			52,361						1,424												53,785
(Loss) income from operations			37,587						(7,056)												30,531
Other income:
Interest income (expense), net			314						(1,210)						a						(896)
Other, net			1,315						—												1,315
Total other income			1,629						(1,210)												419
Income before provision for income taxes			39,216						(8,266)												30,950
Provision for income taxes			8,613						(1,582)						b						7,031
Net income			$	30,603					$	(6,684)											$	23,919
Net income per common share:
Basic			$	1.53					$	(0.33)											$	1.19
Diluted			$	1.52					$	(0.33)											$	1.19
Weighted average number of common shares outstanding:
Basic			20,060						—												20,060
Diluted			20,119						—												20,119
Cash dividends declared per common share			$	1.12					$	—											$	1.12

Summary of Restatement - Consolidated Cash Flow Statement

						Year ended March 31, 2023																								Year ended March 31, 2022
						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Cash flows from operating activities:
Net income						$	233					$	4,907					a						$	5,140					$	21,100					$	(2,384)					a						$	18,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation						3,546						—												3,546						2,738						—												2,738
Share based compensation						6,617						—												6,617						4,549						—												4,549
Deferred income taxes						(1,564)						(66)						b						(1,630)						(345)						(501)						b						(846)
Bad debt expense						214						—												214						165						—												165
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable						(41)						—												(41)						509						—												509
Inventories - finished goods						13,432						—												13,432						1,965						—												1,965
Prepaid income taxes						(1,202)						1,020						b						(182)						278						—												278
Prepaid expenses and other current assets						147						—												147						(363)						—												(363)
Accounts payable						(2,292)						—												(2,292)						(12,048)						—												(12,048)
Sales tax payable						—						1,956						a						1,956						—						2,928						a						2,928
Accrued expenses and other current liabilities						8,713						(7,817)						a						896						(50)						(43)						a						(93)
Net cash provided by operating activities						27,803						—												27,803						18,498						—												18,498
Cash flows from investing activities:
Purchase of minority interest investment in Vetster						(5,000)						—												(5,000)						—						—												—
Purchases of property and equipment						(5,260)						—												(5,260)						(1,752)						—												(1,752)
Net cash used in investing activities						(10,260)						—												(10,260)						(1,752)						—												(1,752)
Cash flows from financing activities:
Dividends paid						(24,537)						—												(24,537)						(24,384)						—												(24,384)
Net cash used in financing activities						(24,537)						—												(24,537)						(24,384)						—												(24,384)
Net (decrease) increase in cash and cash equivalents						(6,994)						—												(6,994)						(7,638)						—												(7,638)
Cash and cash equivalents, at beginning of year						111,080						—												111,080						118,718						—												118,718
Cash and cash equivalents, at end of year						$	104,086					$	—											$	104,086					$	111,080					$	—											$	111,080
Supplemental disclosure of cash flow information:
Cash paid for income taxes						$	4,312					$	—											$	4,312					$	6,085					$	—											$	6,085
Dividends payable in accrued expenses						$	1,262					$	—											$	1,262					$	558					$	—											$	558

						Year ended March 31, 2021
						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Cash flows from operating activities:
Net income						$	30,603					$	(6,684)					a						$	23,919
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation						2,427						—												2,427
Share based compensation						3,307						—												3,307
Deferred income taxes						311						(1,584)												(1,273)
Bad debt expense						130						—												130
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable						1,126						—												1,126
Inventories - finished goods						(16,536)						—												(16,536)
Prepaid income taxes						(959)						—												(959)
Prepaid expenses and other current assets						(974)						—												(974)
Accounts payable						19,890						—												19,890
Sales tax payable						—						8,268						a						8,268
Accrued expenses and other current liabilities						1,221						—												1,221
Income taxes payable						(471)						—												(471)
Net cash provided by operating activities						40,075						—												40,075
Cash flows from investing activities:
Purchase of minority interest investment in Vetster						—						—												—
Purchases of property and equipment						(2,432)						—												(2,432)
Net cash used in investing activities						(2,432)						—												(2,432)
Cash flows from financing activities:
Dividends paid						(22,687)						—												(22,687)
Net cash used in financing activities						(22,687)						—												(22,687)
Net (decrease) increase in cash and cash equivalents						14,956						—												14,956
Cash and cash equivalents, at beginning of year						103,762						—												103,762
Cash and cash equivalents, at end of year						$	118,718					$	—											$	118,718
Supplemental disclosure of cash flow information:
Cash paid for income taxes						$	10,018					$	—											$	10,018
Dividends payable in accrued expenses						$	198					$	—											$	198

Quarterly Financial Statements (Unaudited)

The following tables set forth the corrections in each of the individual line items affected in the condensed consolidated statements of income for each respective period:

			Three Months Ended
			June 30, 2021																								September 30, 2021
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Sales			$	79,312					$	(550)					a						$	78,762					$	67,386					$	(289)					a						$	67,097
General and administrative			8,041						135						a						8,176						6,958						73						a						7,031
Interest income (expense), net			85						(350)						a						(265)						74						(362)						a						(288)
Provision for income taxes			1,360						(186)						b						1,174						1,982						(149)						b						1,833
Net income			$	4,428					$	(849)					a, b						$	3,579					$	6,349					$	(575)					a, b						$	5,774

			Three Months Ended
			December 31, 2021																								March 31, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Sales			$	60,717					$	(143)					a						$	60,574					$	66,002					$	(153)					a						$	65,849
General and administrative			7,541						37						a						7,578						8,289						40						a						8,329
Interest income (expense), net			84						(373)						a						(289)						92						(381)						a						(289)
Provision for income taxes			1,261						(119)						b						1,142						1,368						(48)						b						1,320
Net income			$	4,257					$	(434)					a, b						$	3,823					$	6,066					$	(526)					a, b						$	5,540

The following tables set forth the corrections in each of the individual line items affected in the condensed consolidated balance sheets for each respective period:

			June 30, 2021																								September 30, 2021
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Deferred tax assets			$	—					$	2,886					b						$	2,886					$	—					$	2,521					b						$	2,521
Sales tax payable			—						21,201						a						21,201						—						21,925						a						21,925
Deferred tax liabilities			1,114						(1,114)						b						—						1,627						(1,627)						b						—
Retained earnings			132,489						(17,201)						a, b						115,288						132,746						(17,777)						a, b						114,969

			December 31, 2021																								March 31, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Deferred tax assets			$	—					$	3,006					b						$	3,006					$	—					$	3,379					b						$	3,379
Sales tax payable			—						22,477						a						22,477						—						24,157						a						24,157
Accrued expenses and other current liabilities																											5,697						(1,106)						a						4,591
Deferred tax liabilities			1,262						(1,262)						b						—						936						(936)						b						—
Retained earnings			130,721						(18,209)						a, b						112,512						130,496						(18,736)						a, b						111,760

The following tables set forth the corrections in each of the individual line items affected in the condensed consolidated statements of cash flows for each respective period:

			Three Months Ended																								Six Months Ended
			June 30, 2021																								September 30, 2021
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Net income			$	4,428					$	(849)					a, b						$	3,579					$	10,777					$	(1,424)					a, b						$	9,353
Deferred income taxes			(167)						(186)						b						(353)						346						(335)						b						11
Sales tax payable			—						1,035						a						1,035						—						1,759						a						1,759

			Nine Months Ended																								Twelve Months Ended
			December 31, 2021																								March 31, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Net income			$	15,034					$	(1,858)					a,b						$	13,176					$	21,100					$	(2,384)					a, b						$	18,716
Deferred income taxes			(19)						(454)						b						(473)						(345)						(501)						b						(846)
Sales tax payable			—						2,312						a						2,312						—						2,928						a						2,928
Accrued expenses and other current liabilities																											(50)						(43)						a						(93)

Summary of Restatement - Consolidated Statements of Stockholders’ equity

The following table sets forth the corrections in each of the line items affected in the consolidated statements of stockholders' equity and total equity for each respective period:

						As Previously Reported						Restatement Adjustments						As Restated
Retained Earnings, March 31, 2020						126,177						(9,668)						116,509
Dividends Declared						(22,639)						—						(22,639)
Net Income						30,603						(6,684)						23,919
Retained Earnings, March 31, 2021						134,141						(16,352)						117,789
Dividends Declared						(24,745)						—						(24,745)
Net Income						21,100						(2,384)						18,716
Retained Earnings, March 31, 2022						130,496						(18,736)						111,760
Dividends Declared						(25,241)						—						(25,241)
Net Income						233						4,907						5,140
Retained Earnings, March 31, 2023						105,488						(13,829)						91,659
Total Shareholders' Equity, March 31, 2020						130,010						(9,668)						120,342
Total Shareholders' Equity, March 31, 2021						141,281						(16,352)						124,929
Total Shareholders' Equity, March 31, 2022						142,186						(18,736)						123,450
Total Shareholders' Equity, March 31, 2023						123,795						(13,829)						109,966

X

- References

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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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

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