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Segment Reporting
9 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has a single segment that derives sales from customers through the sale of products which are shipped directly to customers. The accounting policies of the Company's single segment are the same as those described in the Company's Summary of Significant Accounting Policies.
The Company’s chief operating decision maker (“CODM”) is the Interim Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income (loss) and Adjusted EBITDA that is reconciled to GAAP net loss reported on the accompanying Consolidated Statements of Operations below. The CODM uses consolidated net income (loss) and Adjusted EBITDA to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity. Adjusted EBITDA is used to monitor budget versus actual results and forecast versus actual results and is utilized when establishing management’s compensation in collaboration with the Board of Directors. Consolidated net income (loss) and Adjusted EBITDA should only be considered as supplemental to, and alongside with, other GAAP based financial performance measures, including various cash flow metrics, net income (loss), net margin, and our other GAAP results.
The table below provides a summary of significant expense categories regularly provided to the CODM reconciled to Adjusted EBITDA, as well as a reconciliation of Adjusted EBITDA to net income (loss), for the three and nine months ended December 31, 2025 and 2024. The CODM does not review segment assets at a different asset level or category than those disclosed within the consolidated balance sheets.
Three Months Ended
($ in thousands)December 31,
2025
December 31, 2024 (As Restated)
Net Sales$40,660 $51,961 
Significant expense categories:
Cost of sales (4)
31,20435,830
Advertising5,3324,209
  Other segment expenses (1)
11,6819,920
Adjusted EBITDA$(7,557)$2,002 
(Add) subtract:
Share-based compensation expense (reversal)255452
Income taxes11465
Depreciation and amortization2,3991,586
Interest (income) expense, net (2)
221(28)
Acquisition/Partnership transactions and other items25
Employee severance9209
Professional fees (3)
101
Net (loss) income$(10,553)$(707)
Nine Months Ended
($ in thousands)December 31,
2025
December 31, 2024 (As Restated)
Net Sales$136,204 $176,212 
Significant expense categories:
Cost of sales (4)
99,930122,271
Advertising15,71918,333
  Other segment expenses (1)
33,12533,045
Adjusted EBITDA$(12,570)$2,563 
(Add) subtract:
Share-based compensation (reversal) expense1,093(7,179)
Income taxes2922
Depreciation and amortization6,9604,965
Interest (income) expense, net (2)
745(308)
Acquisition/Partnership transactions and other items205
Employee severance1,328663
Sales tax expense (income)(1,178)
Professional fees (3)
3,242
Impairment of goodwill and intangible assets
27,258
Net (loss) income$(53,225)$5,373 
(1) Consists of all other expenses on an Adjusted EBITDA basis, including salaries and wages, operating expenses such as utilities, insurance, professional fees, etc.
(2) For the three months ended December 31, 2025 and 2024: $0.4 million and $0.4 million of interest expense related to the sales tax liability, and $0.2 million and $0.5 million of interest income, respectively. For the nine months ended December 31, 2025 and 2024: $1.5 million and $1.2 million of interest expense related to the sales tax liability, and $0.8 million and $1.5 million of interest income, respectively.
(3) Consists of professional fees related to the investigation (see Note 1 for additional information).
(4) Cost of sales includes a non-cash inventory write-down of approximately $2.1 million (see Note 2 for additional information).