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Restatement of Previously Issued Financial Statements (Tables)

3 Months Ended

Jun. 30, 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 for the quarters ended June 30, 2023 and 2022, is as follows:

						Three Months Ended
						June 30, 2023												June 30, 2022
(in thousands)						As previously reported						As restated						As previously reported						As restated
Sales						$	78,244					$	78,244					$	70,187					$	70,042
Gross profit						$	22,526					$	22,526					$	19,943					$	19,798
(Loss) income from operations						$	(2,128)					$	(2,128)					$	3,490					$	3,311
Net (loss) income						$	(887)					$	(1,136)					$	2,775					$	2,687

			Three Months Ended
			June 30, 2023												June 30, 2022
			As previously reported						As restated						As previously reported						As restated
Net (loss) income (numerator):
Net (loss) income			$	(887)					$	(1,136)					$	2,775					$	2,687
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation			20,333						20,333						20,208						20,208
Common shares issuable upon vesting of restricted stock			—						—						73						73
Common shares issuable upon conversion of preferred shares			—						—						10						10
Shares used in diluted computation			20,333						20,333						20,291						20,291
Net (loss) income per common share:
Basic			$	(0.04)					$	(0.06)					$	0.14					$	0.13
Diluted			$	(0.04)					$	(0.06)					$	0.14					$	0.13

Summary of Restatement - Consolidated Balance Sheets

			June 30, 2023																								March 31, 2023
			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			$	61,534					$	—											$	61,534					$	104,086					$	—											$	104,086
Accounts receivable, less allowance for doubtful accounts of $38 and $35, respectively			1,894						—												1,894						1,740						—												1,740
Inventories - finished goods			32,324						—												32,324						19,023						—												19,023
Prepaid expenses and other current assets			8,530						—												8,530						4,719																		4,719
Prepaid income taxes			1,548						(1,020)						b						528						1,883						(1,020)						b						863
Total current assets			105,830						(1,020)												104,810						131,451						(1,020)												130,431
Noncurrent assets:
Property and equipment, net			27,207						—												27,207						26,178						—												26,178
Intangible and other assets			17,671						—												17,671						5,860						—												5,860
Goodwill			20,735						5,922						c						26,657						—						—												—
Operating lease right-of-use assets, net			2,024						–												2,024						—						–												–
Deferred tax assets, net			7,270						(1,364)						b, c						5,906						628						4,381						b						5,009
Total noncurrent assets			74,907						4,558												79,465						32,666						4,381												37,047
Total assets			$	180,737					$	3,538											$	184,275					$	164,117					$	3,361											$	167,478
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			$	40,037					$	—											$	40,037					$	25,208					$	—											$	25,208
Sales tax payable			—						26,614						a						26,614						—						26,113						a						26,113
Accrued expenses and other current liabilities			13,240						(5,173)						a						8,067						11,289						(5,098)						a						6,191
Current lease liabilities			799						—												799						—						—												—
Deferred revenue			3,246						—												3,246						—						—												—
Total current liabilities			57,322						21,441												78,763						36,497						21,015												57,512
Deferred tax liabilities			—						—												—						—						—												—
Long-term lease liabilities			1,268						—												1,268						—						—												—
Other long-term liabilities			3,825						(3,825)						a						—						3,825						(3,825)						a						—
Total liabilities			62,415						17,616												80,031						40,322						17,190												57,512
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; 21,170 and 21,084 shares issued and outstanding, respectively			21						—												21						21						—												21
Additional paid-in capital			20,037						—												20,037						18,277						—												18,277
Retained earnings			98,255						(14,078)						a, b, c						84,177						105,488						(13,829)						a, b						91,659
Total shareholders' equity			118,322						(14,078)												104,244						123,795						(13,829)												109,966
Total liabilities and shareholders' equity			$	180,737					$	3,538											$	184,275					$	164,117					$	3,361											$	167,478

Summary of Restatement - Consolidated Statements of Operations

			Three Months Ended June 30, 2023																								Three Months Ended June 30, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Sales			$	78,244					$	—											$	78,244					$	70,187					$	(145)					a						$	70,042
Cost of sales			55,718						—												55,718						50,244						—												50,244
Gross profit			22,526						—												22,526						19,943						(145)												19,798
Operating expenses:
General and administrative			15,711						—												15,711						9,351						34						a						9,385
Advertising			7,265						—												7,265						6,349						—												6,349
Depreciation and amortization			1,678						—												1,678						753						—												753
Total operating expenses			24,654						—												24,654						16,453						34												16,487
(Loss) income from operations			(2,128)						—												(2,128)						3,490						(179)												3,311
Other income (expense):
Interest income (expense), net			620						(426)						a						194						117						(391)						a						(274)
Other, net			506						—												506						198						—												198
Total other income (loss)			1,126						(426)												700						315						(391)												(76)
(Loss) income before (benefit) provision for income taxes			(1,002)						(426)												(1,428)						3,805						(570)												3,235
(Benefit) provision for income taxes			(115)						(177)						b						(292)						1,030						(482)						b						548
Net (loss) income			$	(887)					$	(249)											$	(1,136)					$	2,775					$	(88)											$	2,687
Net (loss) income per common share:
Basic			$	(0.04)					$	(0.02)											$	(0.06)					$	0.14					$	(0.01)											$	0.13
Diluted			$	(0.04)					$	(0.02)											$	(0.06)					$	0.14					$	(0.01)											$	0.13
Weighted average number of common shares outstanding:
Basic			20,333						—												20,333						20,208						—												20,208
Diluted			20,333						—												20,333						20,291						—												20,291
Cash dividends declared per common share			$	0.30					$	—											$	0.30					$	0.30					$	—											$	0.30

Summary of Restatement - Consolidated Cash Flow Statement

						Three Months Ended June 30, 2023																								Three Months Ended June 30, 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 (loss) income						$	(887)					$	(249)					a						$	(1,136)					$	2,775					$	(88)					a						$	2,687
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization						1,678						—												1,678						753						—												753
Share based compensation						1,760						—												1,760						1,536						—												1,536
Deferred income taxes						(450)						(177)						b						(627)						(294)						(482)						b						(776)
Bad debt expense						19						—												19						45						—												45
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable						(46)						—												(46)						86						—												86
Inventories - finished goods						(10,185)						—												(10,185)						9,880						—												9,880
Prepaid income taxes						335						—												335						681						—												681
Prepaid expenses and other current assets						(2,390)						—												(2,390)						451						—												451
Operating lease right-of-use assets, net						196						—												196						—						—												—
Accounts payable						9,115						—												9,115						(10,469)						—												(10,469)
Sales tax payable						—						500						a						500						—						498						a						498
Accrued expenses and other current liabilities						1,369						(74)						a						1,295						97						72						a						169
Lease liabilities						(205)						—												(205)						—						—												—
Deferred revenue						253						—												253						—						—												—
Income taxes payable						—						—												—						839						—												839
Net cash provided by operating activities						$	562					$	—											$	562					$	6,380					$	—											$	6,380
Cash flows from investing activities:
Purchase of minority interest investment in Vetster						—						—												—						(5,000)						—												(5,000)
Acquisition of PetCareRx, net of cash acquired						(35,859)						—												(35,859)						—						—												—
Purchases of property and equipment						(1,153)						—												(1,153)						(982)						—												(982)
Net cash used in investing activities						$	(37,012)					$	—											$	(37,012)					$	(5,982)					$	—											$	(5,982)
Cash flows from financing activities:
Dividends paid						(6,102)						—												(6,102)						(6,064)						—												(6,064)
Net cash used in financing activities						$	(6,102)					$	—											$	(6,102)					$	(6,064)					$	—											$	(6,064)
Net (decrease) increase in cash and cash equivalents						(42,552)						—												(42,552)						(5,666)						—												(5,666)
Cash and cash equivalents, at beginning of year						104,086						—												104,086						111,080						—												111,080
Cash and cash equivalents, at end of year						$	61,534					$	—											$	61,534					$	105,414					$	—											$	105,414
Supplemental disclosure of cash flow information:
Dividends payable in accrued expenses						$	1,507					$	—											$	1,507					$	791					$	—											$	791

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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

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