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Restatement of Previously Issued Financial Statements (Tables)

6 Months Ended

Sep. 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 three and six months ending September 30, 2023 and 2022 is as follows:

						Six Months Ended
						September 30, 2023												September 30, 2022
(in thousands)						As previously reported						As restated						As previously reported						As restated
Sales						$	149,243					$	149,243					$	135,581					$	135,302
Gross profit						$	42,588					$	42,588					$	38,394					$	38,115
(Loss) income from operations						$	(2,569)					$	(1,253)					$	6,451					$	7,032
Net income (loss)						$	(957)					$	(421)					$	5,354					$	5,568

						Three Months Ended
						September 30, 2023												September 30, 2022
(in thousands)						As previously reported						As restated						As previously reported						As restated
Sales						$	70,999					$	70,999					$	65,394					$	65,260
Gross profit						$	20,062					$	20,062					$	18,451					$	18,317
(Loss) income from operations						$	(441)					$	875					$	2,961					$	3,721
Net income (loss)						$	(70)					$	715					$	2,579					$	2,881

			Six Months Ended
			September 30, 2023												September 30, 2022
			As previously reported						As restated						As previously reported						As restated
Net income (loss) (numerator):
Net income (loss)			$	(957)					$	(421)					$	5,354					$	5,568
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation			20,357,752						20,357,752						20,234,904						20,234,904
Common shares issuable upon vesting of restricted stock			—						—						72,493						72,493
Common shares issuable upon conversion of preferred shares			—						—						10,125						10,125
Shares used in diluted computation			20,357,752						20,357,752						20,317,522						20,317,522
Net income (loss) per common share:
Basic			$	(0.05)					$	(0.02)					$	0.26					$	0.28
Diluted			$	(0.05)					$	(0.02)					$	0.26					$	0.27

			Three Months Ended
			September 30, 2023												September 30, 2022
			As previously reported						As restated						As previously reported						As restated
Net income (loss) (numerator):
Net income (loss)			$	(70)					$	715					$	2,579					$	2,881
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation			20,382,979						20,382,979						20,261,114						20,261,114
Common shares issuable upon vesting of restricted stock			—						387,351			d			72,741						72,741
Common shares issuable upon conversion of preferred shares			—						10,125			d			10,125						10,125
Shares used in diluted computation			20,382,979						20,780,455						20,343,980						20,343,980
Net income (loss) per common share:
Basic			$	—					$	0.04					$	0.13					$	0.14
Diluted			$	—					$	0.03					$	0.13					$	0.14

Summary of Restatement - Consolidated Balance Sheets

			September 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			$	53,471					$	—											$	53,471					$	104,086					$	—											$	104,086
Accounts receivable, less allowance for doubtful accounts of $44 and $35, respectively			2,174						—												2,174						1,740						—												1,740
Inventories - finished goods			18,902						—												18,902						19,023						—												19,023
Prepaid expenses and other current assets			9,656						—												9,656						4,719						—												4,719
Prepaid income taxes			1,457						(1,020)						b						437						1,883						(1,020)						b						863
Total current assets			85,660						(1,020)												84,640						131,451						(1,020)												130,431
Noncurrent assets:
Property and equipment, net			26,968						—												26,968						26,178						—												26,178
Intangible and other assets			17,181						—												17,181						5,860						—												5,860
Goodwill			22,451						4,206						c						26,657						—						—												—
Operating lease right-of-use assets, net			1,826						—												1,826						—						—												—
Deferred tax assets			5,185						241						b, c						5,426						628						4,381						b						5,009
Total noncurrent assets			73,611						4,447												78,058						32,666						4,381												37,047
Total assets			$	159,271					$	3,427											$	162,698					$	164,117					$	3,361											$	167,478
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			$	25,379					$	—											$	25,379					$	25,208					$	—											$	25,208
Sales tax payable			—						24,835						a						24,835						—						26,113						a						26,113
Accrued expenses and other current liabilities			10,986						(4,291)						a						6,695						11,289						(5,098)						a						6,191
Current lease liabilities			757						—												757						—						—												—
Deferred revenue			3,573						—												3,573						—						—												—
Total current liabilities			40,695						20,544												61,239						36,497						21,015												57,512
Long-term lease liabilities			1,080						—												1,080						—						—												—
Other long-term liabilities			3,825						(3,825)						a						—						3,825						(3,825)						a						—
Total liabilities			45,600						16,719												62,319						40,322						17,190												57,512
Commitments and contingencies			—						—												—						—						—												—
Shareholders' equity:
Preferred stock, $.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						9						—												9

Common stock, $.001 par value, 40,000,000 shares authorized; 21,147,006 and 21,084,302 shares issued and outstanding, respectively			21						—												21						21						—												21
Additional paid-in capital			21,765						—												21,765						18,277						—												18,277
Retained earnings			91,876						(13,292)						a, b, c						78,584						105,488						(13,829)						a, b						91,659
Total shareholders' equity			113,671						(13,292)												100,379						123,795						(13,829)												109,966
Total liabilities and shareholders' equity			$	159,271					$	3,427											$	162,698					$	164,117					$	3,361											$	167,478

Summary of Restatement - Consolidated Statements of Operation

			Three Months Ended September 30, 2023																								Three Months Ended September 30, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Sales			$	70,999					$	—											$	70,999					$	65,394					$	(134)					a						$	65,260
Cost of sales			50,937						—												50,937						46,943						—												46,943
Gross profit			20,062						—												20,062						18,451						(134)												18,317
Operating expenses:
General and administrative			13,278						(1,316)						a						11,962						10,753						(894)						a						9,859
Advertising			5,512						—												5,512						3,879						—												3,879
Depreciation and amortization			1,713						—												1,713						858						—												858
Total operating expenses			20,503						(1,316)												19,187						15,490						(894)												14,596
(Loss) income from operations			(441)						1,316												875						2,961						760												3,721
Other income (expense):
Interest income (expense), net			570						(419)						a						151						388						(402)						a						(14)
Other, net			254						—												254						261						—												261
Total other income			824						(419)												405						649						(402)												247
Income (loss) before provision for income taxes			383						897												1,280						3,610						358												3,968
Provision for income taxes			453						112						b						565						1,031						56						b						1,087
Net income (loss)			$	(70)					$	785											$	715					$	2,579					$	302											$	2,881
Net (loss) income per common share:
Basic			$	—					$	0.04											$	0.04					$	0.13					$	0.01											$	0.14
Diluted			$	—					$	0.04											$	0.03					$	0.13					$	0.01											$	0.14
Weighted average number of common shares outstanding:
Basic			20,382,979						—												20,382,979						20,261,114						—												20,261,114
Diluted			20,382,979						397,476						d						20,780,455						20,343,980						—												$	20,343,980.00
Cash dividends declared per common share			$	0.30					$	—											$	0.30					$	0.30					$	—											$	0.30

			Six Months Ended September 30, 2023																								Six Months Ended September 30, 2022
			As Previously Reported						Restatement Adjustments						Refer-ence						As Restated						As Previously Reported						Restatement Adjustments						Refer-ence						As Restated
Sales			$	149,243					$	—											$	149,243					$	135,581					$	(279)					a						$	135,302
Cost of sales			106,655						—												106,655						97,187						—												97,187
Gross profit			42,588						—												42,588						38,394						(279)												38,115
Operating expenses:
General and administrative			28,989						(1,316)						a						27,673						20,104						(860)						a						19,244
Advertising			12,777						—												12,777						10,228						—												10,228
Depreciation and amortization			3,391						—												3,391						1,611						—												1,611
Total operating expenses			45,157						(1,316)												43,841						31,943						(860)												31,083
(Loss) income from operations			(2,569)						1,316												(1,253)						6,451						581												7,032
Other income (expense):
Interest income (expense), net			1,190						(845)						a						345						505						(793)						a						(288)
Other, net			760						—												760						459						—												459
Total other income			1,950						(845)												1,105						964						(793)												171
Income (loss) before provision for income taxes			(619)						471												(148)						7,415						(212)												7,203
Provision for income taxes			338						(65)						b						273						2,061						(426)						b						1,635
Net (loss) income			$	(957)					$	536											$	(421)					$	5,354					$	214											$	5,568
Net (loss) income per common share:
Basic			$	(0.05)					$	0.03											$	(0.02)					$	0.26					$	0.02											$	0.28
Diluted			$	(0.05)					$	0.03											$	(0.02)					$	0.26					$	0.01											$	0.27
Weighted average number of common shares outstanding:
Basic			20,357,752						—												20,357,752						20,234,904						—												20,234,904
Diluted			20,357,752						—												20,357,752						20,317,522						—												20,317,522
Cash dividends declared per common share			$	0.60					$	—											$	0.60					$	0.60					$	—											$	0.60

Summary of Restatement - Consolidated Cash Flow Statement

						Six Months Ended September 30, 2023																								Six Months Ended September 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 income						$	(957)					$	536					a						$	(421)					$	5,354					$	214					a						$	5,568
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation						3,391						—												3,391						1,611						—												1,611
Share based compensation						3,489						—												3,489						3,217						—												3,217
Deferred income taxes						(81)						(65)						b						(146)						(389)						(426)						b						(815)
Bad debt expense						36						—												36						66						—												66
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable						(345)						—												(345)						257						—												257
Inventories - finished goods						3,237						—												3,237						(1,567)						—												(1,567)
Prepaid income taxes						426						—												426						86						—												86
Prepaid expenses and other current assets						(3,516)						—												(3,516)						(597)						—												(597)
Operating lease right-of-use assets, net						394						—												394						—						—												—
Accounts payable						(5,542)						—												(5,542)						(3,520)						—												(3,520)
Sales tax payable						—						(1,278)						a						(1,278)						—						1,894						a						1,894
Accrued expenses and other current liabilities						(943)						807						a						(136)						590						(1,682)						a						(1,092)
Lease liabilities						(383)						—												(383)						—						—												—
Deferred revenue						579						—												579						—						—												—
Net cash provided by operating activities						(215)						—												(215)						5,108						—												5,108
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						(2,137)						—												(2,137)						(2,336)						—												(2,336)
Net cash used in investing activities						(37,996)						—												(37,996)						(7,336)						—												(7,336)
Cash flows from financing activities:
Dividends paid						(12,404)						—												(12,404)						(12,306)						—												(12,306)
Net cash used in financing activities						(12,404)						—												(12,404)						(12,306)						—												(12,306)
Net (decrease) increase in cash and cash equivalents						(50,615)						—												(50,615)						(14,534)						—												(14,534)
Cash and cash equivalents, at beginning of year						104,086						—												104,086						111,080						—												111,080
Cash and cash equivalents, at end of year						$	53,471					$	—											$	53,471					$	96,546					$	—											$	96,546

Supplemental disclosure of cash flow information:
Cash paid for income taxes						$	—					$	—											$	—					$	2,560					$	—											$	2,560
Dividends payable in accrued expenses						$	1,513					$	—											$	1,513					$	856					$	—											$	856

X

- References

No definition available.

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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
-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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