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Restatement of Previously Issued Financial Statements (Tables) | 9 Months Ended
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Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract] |
Schedule of Error Corrections and Prior Period Adjustments | A summary of the impact of the adjustments described above relating to the Misstatements in each of the Affected Periods, is as follows:
|  | December 31, 2022
|  | Three Months Ended |  | Nine Months Ended
(in thousands) |  | As previously reported |  | As restated |  | As previously reported |  | As restated
Sales |  | $ | 58,870 |  |  | $ | 58,870 |  |  | $ | 194,451 |  |  | $ | 194,172 |
Gross profit |  | $ | 15,238 |  |  | $ | 15,238 |  |  | $ | 53,632 |  |  | $ | 53,353 |
(Loss) income from operations |  | $ | (769) |  |  | $ | (769) |  |  | $ | 5,682 |  |  | $ | 6,263 |
Net (loss) income |  | $ | (19) |  |  | $ | (212) |  |  | $ | 5,335 |  |  | $ | 5,356 |
| December 31, 2022
| Three Months Ended |  | Nine Months Ended
| As previously reported |  | As restated |  | As previously reported |  | As restated
Net (loss) income (numerator): |  |  |  |  |  |  |
Net (loss) income | $ | (19) |  |  | $ | (212) |  |  | $ | 5,335 |  |  | $ | 5,356 |
Shares (denominator): |  |  |  |  |  |  |
Weighted average number of common shares outstanding used in basic computation | 20,301,384 |  | 20,301,384 |  | 20,257,145 |  | 20,257,145
Common shares issuable upon vesting of restricted stock | — |  | — |  | 71,794 |  | 71,794
Common shares issuable upon conversion of preferred shares | — |  | — |  | 10,125 |  | 10,125
Shares used in diluted computation | 20,301,384 |  | 20,301,384 |  | 20,339,064 |  | 20,339,064
Net (loss) income per common share: |  |  |  |  |  |  |
Basic | $ | — |  |  | $ | (0.01) |  |  | $ | 0.26 |  |  | $ | 0.26 |
Diluted | $ | — |  |  | $ | (0.01) |  |  | $ | 0.26 |  |  | $ | 0.26 |
Summary of Restatement - Consolidated Balance Sheets
| December 31, 2022
| As Previously Reported |  | Restatement Adjustments |  | Reference |  | As Restated
ASSETS |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 102,428 |  |  | $ | — |  |  |  |  | $ | 102,428 |
Accounts receivable, less allowance for doubtful accounts of $40 | 1,944 |  |  | — |  |  |  |  | 1,944 |
Inventories - finished goods | 22,402 |  |  | — |  |  |  |  | 22,402 |
Prepaid expenses and other current assets | 5,637 |  |  | — |  |  |  |  | 5,637 |
Prepaid income taxes | 1,608 |  |  | — |  |  |  |  | 1,608 |
Total current assets | 134,019 |  |  | — |  |  |  |  | 134,019 |
Noncurrent assets: |  |  |  |  |  |  |
Property and equipment, net | 25,242 |  |  | — |  |  |  |  | 25,242 |
Intangible and other assets | 5,860 |  |  | — |  |  |  |  | 5,860 |
Deferred tax assets | — |  |  | 4,493 |  |  | b, c |  | 4,493 |
Total noncurrent assets | 31,102 |  |  | 4,493 |  |  |  |  | 35,595 |
Total assets | $ | 165,121 |  |  | $ | 4,493 |  |  |  |  | $ | 169,614 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |
Accounts payable | $ | 24,317 |  |  | $ | — |  |  |  |  | $ | 24,317 |
Sales tax payable | — |  |  | 26,448 |  |  | a |  | 26,448 |
Accrued expenses and other current liabilities | 6,754 |  |  | (2,775) |  |  | a |  | 3,979 |
Total current liabilities | 31,071 |  |  | 23,673 |  |  |  |  | 54,744 |
Deferred tax liabilities | 465 |  |  | (465) |  |  | c |  | — |
Total liabilities | 31,536 |  |  | 23,208 |  |  |  |  | 54,744 |
Commitments and contingencies | — |  |  | — |  |  |  |  | — |
Shareholders' equity: |  |  |  |  |  |  |
Preferred stock, $0.001 par value, 5,000,000 shares authorized; 2,500 convertible shares issued and outstanding with a liquidation preference of $4 per share | 9 |  |  | — |  |  |  |  | 9 |
Common stock, $0.001 par value, 40,000,000 shares authorized; 21,077,077 shares issued and outstanding | 21 |  |  | — |  |  |  |  | 21 |
Additional paid-in capital | 16,647 |  |  | — |  |  |  |  | 16,647 |
Retained earnings | 116,908 |  |  | (18,715) |  |  | a, b, c |  | 98,193 |
Total shareholders' equity | 133,585 |  |  | (18,715) |  |  |  |  | 114,870 |
Total liabilities and shareholders' equity | $ | 165,121 |  |  | $ | 4,493 |  |  |  |  | $ | 169,614 |
Summary of Restatement - Consolidated Statements of Operations
| Three Months Ended December 31, 2022 |  | Nine Months Ended December 31, 2022
| As Previously Reported |  | Restatement Adjustments |  | Refer-ence |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | Refer-ence |  | As Restated
Sales | $ | 58,870 |  |  | $ | — |  |  |  |  | $ | 58,870 |  |  | $ | 194,451 |  |  | $ | (279) |  |  | a |  | $ | 194,172 |
Cost of sales | 43,632 |  |  | — |  |  |  |  | 43,632 |  |  | 140,819 |  |  | — |  |  |  |  | 140,819 |
Gross profit | 15,238 |  |  | — |  |  |  |  | 15,238 |  |  | 53,632 |  |  | (279) |  |  |  |  | 53,353 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
General and administrative | 10,425 |  |  | — |  |  |  |  | 10,425 |  |  | 30,529 |  |  | (860) |  |  | a |  | 29,669 |
Advertising | 4,641 |  |  | — |  |  |  |  | 4,641 |  |  | 14,869 |  |  | — |  |  |  |  | 14,869 |
Depreciation | 941 |  |  | — |  |  |  |  | 941 |  |  | 2,552 |  |  | — |  |  |  |  | 2,552 |
Total operating expenses | 16,007 |  |  | — |  |  |  |  | 16,007 |  |  | 47,950 |  |  | (860) |  |  |  |  | 47,090 |
(Loss) income from operations | (769) |  |  | — |  |  |  |  | (769) |  |  | 5,682 |  |  | 581 |  |  |  |  | 6,263 |
Other income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income, net | 708 |  |  | (409) |  |  | a |  | 299 |  |  | 1,213 |  |  | (1,202) |  |  | a |  | 11 |
Other, net | 259 |  |  | — |  |  |  |  | 259 |  |  | 718 |  |  | — |  |  |  |  | 718 |
Total other income | 967 |  |  | (409) |  |  |  |  | 558 |  |  | 1,931 |  |  | (1,202) |  |  |  |  | 729 |
Income (loss) before provision for income taxes | 198 |  |  | (409) |  |  |  |  | (211) |  |  | 7,613 |  |  | (621) |  |  |  |  | 6,992 |
Provision for income taxes | 217 |  |  | (216) |  |  | b |  | 1 |  |  | 2,278 |  |  | (642) |  |  | b |  | 1,636 |
Net (loss) income | $ | (19) |  |  | $ | (193) |  |  |  |  | $ | (212) |  |  | $ | 5,335 |  |  | $ | 21 |  |  |  |  | $ | 5,356 |
Net (loss) income per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | $ | — |  |  | $ | (0.01) |  |  |  |  | $ | (0.01) |  |  | $ | 0.26 |  |  | $ | — |  |  |  |  | $ | 0.26 |
Diluted | $ | — |  |  | $ | (0.01) |  |  |  |  | $ | (0.01) |  |  | $ | 0.26 |  |  | $ | — |  |  |  |  | $ | 0.26 |
Weighted average number of common shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 20,301,384 |  |  | — |  |  |  |  | 20,301,384 |  |  | 20,257,145 |  |  | — |  |  |  |  | 20,257,145 |
Diluted | 20,301,384 |  |  | — |  |  |  |  | 20,301,384 |  |  | 20,339,064 |  |  | — |  |  |  |  | 20,339,064 |
Cash dividends declared per common share | $ | 0.30 |  |  | $ | — |  |  |  |  | $ | 0.30 |  |  | $ | 0.90 |  |  | $ | — |  |  |  |  | $ | 0.90 |
Summary of Restatement - Consolidated Cash Flow Statement
|  | Nine Months Ended December 31, 2022
|  | As Previously Reported |  | Restatement Adjustments |  | Reference |  | As Restated
Cash flows from operating activities: |  |  |  |  |  |  |  |
Net income |  | $ | 5,335 |  |  | $ | 21 |  |  | a |  | $ | 5,356 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |
Depreciation |  | 2,552 |  |  | — |  |  |  |  | 2,552 |
Share based compensation |  | 4,987 |  |  | — |  |  |  |  | 4,987 |
Deferred income taxes |  | (471) |  |  | (643) |  |  | b |  | (1,114) |
Bad debt expense |  | 292 |  |  | — |  |  |  |  | 292 |
(Increase) decrease in operating assets and increase (decrease) in liabilities: |  |  |  |  |  |  |  |
Accounts receivable |  | (324) |  |  | — |  |  |  |  | (324) |
Inventories - finished goods |  | 10,053 |  |  | — |  |  |  |  | 10,053 |
Prepaid income taxes |  | (927) |  |  | — |  |  |  |  | (927) |
Prepaid expenses and other current assets |  | (771) |  |  | — |  |  |  |  | (771) |
Accounts payable |  | (3,183) |  |  | — |  |  |  |  | (3,183) |
Sales tax payable |  | — |  |  | 2,291 |  |  | a |  | 2,291 |
Accrued expenses and other current liabilities |  | 536 |  |  | (1,669) |  |  | a |  | (1,133) |
Net cash provided by operating activities |  | 18,079 |  |  | — |  |  |  |  | 18,079 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Purchase of minority interest investment in Vetster |  | (5,000) |  |  | — |  |  |  |  | (5,000) |
Purchases of property and equipment |  | (3,329) |  |  | — |  |  |  |  | (3,329) |
Net cash used in investing activities |  | (8,329) |  |  | — |  |  |  |  | (8,329) |
Cash flows from financing activities: |  |  |  |  |  |  |  |
Dividends paid |  | (18,402) |  |  | — |  |  |  |  | (18,402) |
Net cash used in financing activities |  | (18,402) |  |  | — |  |  |  |  | (18,402) |
Net (decrease) increase in cash and cash equivalents |  | (8,652) |  |  | — |  |  |  |  | (8,652) |
Cash and cash equivalents, at beginning of year |  | 111,080 |  |  | — |  |  |  |  | 111,080 |
Cash and cash equivalents, at end of year |  | $ | 102,428 |  |  | $ | — |  |  |  |  | $ | 102,428 |
Supplemental disclosure of cash flow information: |  |  |  |  |  |  |  |
Cash paid for income taxes |  | $ | 3,870 |  |  | $ | — |  |  |  |  | $ | 3,870 |
Dividends payable in accrued expenses |  | $ | 1,079 |  |  | $ | — |  |  |  |  | $ | 1,079 |

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- 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
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