ePlus inc.
|
Exhibit 99.5
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
PAGE
|
|
F-2
|
|
F-6
|
|
F-7
|
|
F-8
|
|
F-9
|
|
F-11
|
|
F-12
|
• |
We tested the design and operating effectiveness of management’s controls over the determination of gross or net recognition of third-party software and support sales.
|
• |
For a selection of contracts, we performed the following procedures:
|
|
– |
Inspected the customer invoice and purchase order to determine whether the sale represented a valid transaction with a customer.
|
– |
Compared the cost per the Company’s records to the cost per the vendor invoice.
|
– |
Evaluated the sale to determine whether it constituted a single or multiple performance obligation(s) through inspection of the customer invoice, purchase order, and information on vendor websites accessed
through third-party search engines.
|
– |
Evaluated the sale to determine whether there was accompanying third-party support related to the software, and whether the support was separately identifiable or essential to the functionality of the software
through inspection of customer invoices, purchase orders, information on vendor websites accessed through third-party search engines and inquiries with management, as necessary.
|
• |
We tested the design and operating effectiveness of management’s controls over the transfer of
financial assets, including management’s controls over the evaluation of the terms of loan documents and accompanying investor data, assignment agreements, and the calculation of the gain or loss.
|
• |
For a selection of transactions, we evaluated the Company’s determination of sale or secured
borrowing, by evaluating, among other factors, if the transferred assets have been isolated from the Company. Specifically, we performed the following procedures:
|
– |
Obtained the executed transfer agreement and evaluated whether the Company:
|
■ |
Assigned its rights, titles, interests, estates, claims, and demands to the third-party assignee.
|
■ |
Retained any rights with respect to the payments assigned to the third-party assignee or had been
appropriately isolated from the assets. We evaluated opinions from outside legal counsel, when applicable.
|
– |
Obtained and inspected the cash proceeds support from the transfer and compared the cash received
to the selling price.
|
– |
Tested the mathematical accuracy of management’s calculation of the gain or loss based on the cash
proceeds and the receivable balance as of date of sale.
|
March 31, 2023
|
March 31, 2022
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable—trade, net
|
|
|
||||||
Accounts receivable—other, net
|
|
|
||||||
Inventories
|
|
|
||||||
Financing receivables—net, current
|
|
|
||||||
Deferred costs
|
|
|
||||||
Other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Financing receivables and operating leases—net
|
|
|
||||||
Deferred tax asset
|
|
|
||||||
Property, equipment, and other assets
|
|
|
||||||
Goodwill
|
|
|
||||||
Other intangible assets—net
|
|
|
||||||
TOTAL ASSETS
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
|
$
|
|
||||
Accounts payable—floor plan
|
|
|
||||||
Salaries and commissions payable
|
|
|
||||||
Deferred revenue
|
|
|
||||||
Recourse notes payable—current
|
|
|
||||||
Non-recourse notes payable—current
|
|
|
||||||
Other current liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Recourse notes payable - long-term
|
|
|
||||||
Non-recourse notes payable - long-term
|
|
|
||||||
Deferred tax liability
|
||||||||
Other liabilities
|
|
|
||||||
TOTAL LIABILITIES
|
|
|
||||||
STOCKHOLDERS’ EQUITY
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Treasury stock, at cost,
|
(
|
)
|
(
|
)
|
||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income—foreign currency translation adjustment
|
|
(
|
)
|
|||||
Total Stockholders’ Equity
|
|
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Net sales
|
||||||||||||
Product
|
$
|
|
$
|
|
$
|
|
||||||
Services
|
|
|
|
|||||||||
Total
|
|
|
|
|||||||||
Cost of sales
|
||||||||||||
Product
|
|
|
|
|||||||||
Services
|
|
|
|
|||||||||
Total
|
|
|
|
|||||||||
Gross profit
|
|
|
|
|||||||||
Selling, general, and administrative
|
|
|
|
|||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Interest and financing costs
|
|
|
|
|||||||||
Operating expenses
|
|
|
|
|||||||||
Operating income
|
|
|
|
|||||||||
Other income (expense), net
|
(
|
)
|
(
|
)
|
|
|||||||
Earnings before tax
|
|
|
|
|||||||||
Provision for income taxes
|
|
|
|
|||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Net earnings per common share—basic
|
$
|
|
$
|
|
$
|
|
||||||
Net earnings per common share—diluted
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average common shares outstanding—basic
|
|
|
|
|||||||||
Weighted average common shares outstanding—diluted
|
|
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
NET EARNINGS
|
$
|
|
$
|
|
$
|
|
||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX:
|
||||||||||||
Foreign currency translation adjustments
|
|
(
|
)
|
|
||||||||
Other comprehensive income (loss)
|
|
(
|
)
|
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile
net earnings to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Provision for credit losses
|
|
(
|
)
|
|
||||||||
Share-based compensation expense
|
|
|
|
|||||||||
Deferred taxes
|
|
(
|
)
|
(
|
)
|
|||||||
Payments from lessees directly to lenders—operating leases
|
|
(
|
)
|
(
|
)
|
|||||||
Gain on disposal of property, equipment, and operating lease equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Changes in:
|
||||||||||||
Accounts receivable
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Inventories-net
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Financing receivables—net
|
(
|
)
|
|
(
|
)
|
|||||||
Deferred costs and other assets
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Accounts payable-trade
|
|
(
|
)
|
|
||||||||
Salaries and commissions payable, deferred revenue, and other liabilities
|
|
|
|
|||||||||
Net cash provided by (used in) operating activities
|
(
|
)
|
(
|
)
|
|
|||||||
Cash flows from investing activities:
|
||||||||||||
Proceeds from sale of property, equipment, and operating lease equipment
|
|
|
|
|||||||||
Purchases of property, equipment and operating lease equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash used in acquisitions, net of cash acquired
|
(
|
)
|
|
(
|
)
|
|||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Borrowings of non-recourse and recourse notes payable
|
|
|
|
|||||||||
Repayments of non-recourse and recourse notes payable
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Repurchase of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Repayments of financing of acquisitions
|
|
|
(
|
)
|
||||||||
Net borrowings (repayments) on floor plan facility
|
(
|
)
|
|
(
|
)
|
|||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
|
(
|
)
|
|||||||
Effect of exchange rate changes on cash
|
|
|
(
|
)
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(
|
)
|
|
|
||||||||
Cash and cash equivalents, beginning of period
|
|
|
|
|||||||||
Cash and cash equivalents, end of period
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for interest
|
$
|
|
$
|
|
$
|
|
||||||
Cash paid for income taxes
|
$
|
|
$
|
|
$
|
|
||||||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
|
$
|
|
$
|
|
||||||
Schedule of non-cash investing and financing activities:
|
||||||||||||
Proceeds from sale of property, equipment, and leased equipment
|
$
|
|
$
|
|
$
|
|
||||||
Purchases of property, equipment, and operating lease equipment
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Borrowing of non-recourse and recourse notes payable
|
$
|
|
$
|
|
$
|
|
||||||
Repayments of non-recourse and recourse notes payable
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Vesting of share-based compensation
|
$
|
|
$
|
|
$
|
|
||||||
Repurchase of common stock
|
$ | ( |
) | $ | $ | |||||||
New operating lease assets obtained in exchange for lease obligations
|
$
|
|
$
|
|
$
|
|
Accumulated | ||||||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||||||
Common Stock |
Paid-In | Treasury | Retained | Comprehensive | ||||||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Stock
|
Earnings
|
Income
|
Total
|
||||||||||||||||||||||
Balance, March 31, 2020
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Issuance of restricted stock awards
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of common stock
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||
Net earnings
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance, March 31, 2021
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Issuance of restricted stock awards
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of common stock
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||
Stock split effected in the form of a dividend
|
|
|
|
(
|
)
|
|
|
|||||||||||||||||||||
Retirement of treasury stock
|
(
|
)
|
|
|
(
|
)
|
|
|
||||||||||||||||||||
Net earnings
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Balance, March 31, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Issuance of restricted stock awards
|
||||||||||||||||||||||||||||
Share-based compensation
|
||||||||||||||||||||||||||||
Repurchase of common stock
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Net earnings
|
- | |||||||||||||||||||||||||||
Foreign currency translation adjustment
|
- | |||||||||||||||||||||||||||
Balance, March 31, 2023
|
$ |
$ |
$ |
( |
) | $ |
$ |
$ |
● |
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
|
● |
Level 2 – Inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities in active markets, that are
observable for the asset or liability, either directly or indirectly.
|
● |
Level 3 – Unobservable inputs for the asset or liability. The fair values are determined based on model-based techniques such as discounted cash flow models
using inputs that we could not corroborate with market data.
|
March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Current (included in deferred revenue)
|
$
|
|
$
|
|
$
|
|
||||||
Non-current (included in other liabilities)
|
$
|
|
$
|
|
$
|
|
|
|
|
||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
Total remaining performance obligations
|
$
|
|
Year Ended March 31,
|
||||||||
2023
|
2022
|
|||||||
Net sales
|
$
|
|
$
|
|
||||
Cost of sales
|
|
|
||||||
Gross profit
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||
2023
|
2022
|
|||||||
Interest income on sales-type leases
|
$
|
|
$
|
|
||||
Lease income on operating leases
|
$
|
|
$
|
|
Notes | Lease | Financing | ||||||||||
March 31, 2023
|
Receivable
|
Receivables
|
Receivables
|
|||||||||
Gross receivables
|
$
|
|
$
|
|
$
|
|
||||||
Unguaranteed residual value (1)
|
|
|
|
|||||||||
Unearned income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Allowance for credit losses (2)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total, net
|
$
|
|
$
|
|
$
|
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
|
$
|
|
$
|
|
||||||
Long-term
|
|
|
|
|||||||||
Total, net
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
Notes | Lease | Financing | ||||||||||
March 31, 2022
|
Receivable
|
Receivables
|
Receivables
|
|||||||||
Gross receivables
|
$
|
|
$
|
|
$
|
|
||||||
Unguaranteed residual value (1)
|
|
|
|
|||||||||
Unearned income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Allowance for credit losses (2)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total, net
|
$
|
|
$
|
|
$
|
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
|
$
|
|
$
|
|
||||||
Long-term
|
|
|
|
|||||||||
Total, net
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
Refer to Note 7, “Allowance for Credit Losses” for details.
|
Year ending March 31, 2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
and thereafter
|
|
|||
Total
|
$
|
|
March 31,
2023
|
March 31,
2022
|
|||||||
Cost of equipment under operating leases
|
$
|
|
$
|
|
||||
Accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
Investment in operating lease equipment—net (1)
|
$
|
|
$
|
|
(1) |
|
Year ending March 31, 2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027 | ||||
Total
|
$
|
|
Year Ended March 31,
|
||||||||
Lease term and Discount Rate
|
2023
|
2022
|
||||||
Weighted average remaining lease term (months)
|
|
|
||||||
Weighted average discount rate
|
|
%
|
|
%
|
Year ending March 31, 2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028 and thereafter
|
|
|||
Total lease payments
|
|
|||
Less: interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
Technology Segment
|
Product
|
Professional Services
|
Managed Services
|
Total
|
||||||||||||||||
Balance March 31, 2021
|
||||||||||||||||||||
Goodwill
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Accumulated impairment losses
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||
Net carrying amount
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Foreign currency translations
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||
Balance March 31, 2022
|
||||||||||||||||||||
Goodwill
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Accumulated impairment losses
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||
Net carrying amount
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Acquisitions
|
|
|
|
|
|
|||||||||||||||
Foreign currency translations
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||
Reporting unit change
|
(
|
)
|
|
|
|
|
||||||||||||||
Balance March 31, 2023
|
||||||||||||||||||||
Goodwill
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Accumulated impairment losses
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
Net carrying amount
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2023
|
March 31, 2022
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|||||||||||||||||||
Purchased intangibles
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Capitalized software development
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Year ending March 31, 2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
2029 and thereafter
|
|
|||
Total
|
$
|
|
Accounts
Receivable
|
Notes
Receivable
|
Lease
Receivables
|
Total
|
|||||||||||||
Balance as of March 31, 2020
|
|
|
|
|
|
|||||||||||
Provision for credit losses
|
|
|
|
|
||||||||||||
Write-offs and other
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance as of March 31, 2021
|
|
|
|
|
||||||||||||
Provision for credit losses
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Write-offs and other
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance as of March 31, 2022
|
|
|
|
|
||||||||||||
Provision for credit losses
|
|
|
|
|
||||||||||||
Write-offs and other
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balance as of March 31, 2023
|
|
|
|
|
|
• |
High CQR: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. Loss rates in this
category are less than
|
• |
Average CQR: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions.
Loss rates in this category are in the range of
|
• |
Low CQR: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become
impaired. The loss rates in this category in the normal course are greater than
|
Amortized cost basis by origination year ending March 31,
|
||||||||||||||||||||||||||||||||||||
2023
|
2022
|
2021
|
2020
|
2019
|
2018
and prior
|
Total
|
Transfers
(2)
|
Net
credit
exposure
|
||||||||||||||||||||||||||||
Notes receivable:
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Average CQR
|
|
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Lease receivables:
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Average CQR
|
|
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Total amortized cost (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(1) |
|
(2) |
|
Amortized cost basis by origination year ending March 31,
|
||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
2017 |
Total
|
Transfers
(2)
|
Net
credit
exposure
|
||||||||||||||||||||||||||||
Notes receivable:
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||||||
Average CQR
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||||||
Lease receivables:
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||||||
Average CQR
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||||||
Total amortized cost (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
$
|
(
|
)
|
$
|
|
(1) |
|
(2) |
|
31-60
Days Past
Due
|
61-90
Days Past
Due
|
> 90
Days Past
Due
|
Total
Past Due
|
Current
|
Total
Billed
|
Unbilled
|
Amortized
Cost
|
|||||||||||||||||||||||||
Notes receivable
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Lease receivables
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
31-60
Days Past
Due
|
61-90
Days Past
Due
|
> 90
Days Past
Due
|
Total
Past Due
|
Current
|
Total
Billed
|
Unbilled
|
Amortized
Cost
|
|||||||||||||||||||||||||
Notes receivable
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Lease receivables
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, | March 31, | |||||||
2023
|
2022
|
|||||||
Furniture, fixtures and equipment
|
$
|
|
$
|
|
||||
Leasehold improvements
|
|
|
||||||
Capitalized software
|
|
|
||||||
Vehicles
|
|
|
||||||
Total assets
|
|
|
||||||
Accumulated depreciation and amortization
|
(
|
)
|
(
|
)
|
||||
Property and equipment - net
|
$
|
|
$
|
|
Recourse notes | Non-recourse | |||||||
payable
|
notes payable
|
|||||||
Year ended March 31, 2024
|
$
|
|
$
|
|
||||
2025
|
|
|
||||||
2026
|
|
|
||||||
2027
|
|
|
||||||
Total maturities
|
$
|
|
$
|
|
2023
|
2022
|
2021
|
||||||||||
Net earnings attributable to common shareholders - basic and diluted
|
$
|
|
$
|
|
$
|
|
||||||
Basic and diluted common shares outstanding:
|
||||||||||||
Weighted average common shares outstanding — basic
|
|
|
|
|||||||||
Effect of dilutive shares
|
|
|
|
|||||||||
Weighted average shares common outstanding — diluted
|
|
|
|
|||||||||
Earnings per common share - basic
|
$
|
|
$
|
|
$
|
|
||||||
Earnings per common share - diluted
|
$
|
|
$
|
|
$
|
|
Number of
Shares
|
Weighted Average
Grant-date Fair Value
|
|||||||
Nonvested April 1, 2022
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Vested
|
(
|
)
|
$
|
|
||||
Forfeited
|
(
|
)
|
$
|
|
||||
Non-vested March 31, 2023
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Equity-based compensation expense
|
$
|
|
$
|
|
$
|
|
||||||
Income tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Income tax expense computed at the U.S. statutory federal rate
|
$
|
|
$
|
|
$
|
|
||||||
State income tax expense—net of federal benefit
|
|
|
|
|||||||||
Non-deductible executive compensation
|
|
|
|
|||||||||
Other
|
(
|
)
|
(
|
)
|
|
|||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
||||||
Effective income tax rate
|
|
%
|
|
%
|
|
%
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Current:
|
||||||||||||
Federal
|
$
|
|
$
|
|
$
|
|
||||||
State
|
|
|
|
|||||||||
Foreign
|
|
|
|
|||||||||
Total current expense
|
|
|
|
|||||||||
Deferred:
|
||||||||||||
Federal
|
|
(
|
)
|
(
|
)
|
|||||||
State
|
|
(
|
)
|
(
|
)
|
|||||||
Foreign
|
(
|
)
|
|
(
|
)
|
|||||||
Total deferred expense (benefit)
|
|
(
|
)
|
(
|
)
|
|||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
March 31,
|
||||||||
2023
|
2022
|
|||||||
Deferred tax assets:
|
||||||||
Accrued vacation
|
$
|
|
$
|
|
||||
Deferred revenue
|
|
|
||||||
Allowance for credit losses
|
|
|
||||||
Restricted stock
|
|
|
||||||
Other deferred tax assets
|
|
|
||||||
Accrued bonus
|
|
|
||||||
Lease liabilities
|
|
|
||||||
Other credits and carryforwards
|
|
|
||||||
Gross deferred tax assets
|
|
|
||||||
Less: valuation allowance
|
(
|
)
|
(
|
)
|
||||
Net deferred tax assets
|
|
|
||||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
(
|
)
|
(
|
)
|
||||
Operating leases
|
(
|
)
|
(
|
)
|
||||
Prepaid expenses
|
(
|
)
|
(
|
)
|
||||
Right-of-use assets
|
(
|
)
|
(
|
)
|
||||
Tax deductible goodwill
|
(
|
)
|
(
|
)
|
||||
Total deferred tax liabilities
|
(
|
)
|
(
|
)
|
||||
Net deferred tax asset
|
$
|
|
$
|
|
Fair Value Measurement Using
|
||||||||||||||||
Recorded
Amount
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
|||||||||||||
March 31, 2023
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
March 31, 2022
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
|
$
|
|
$
|
|
$
|
|
Acquisition Date
Amount
|
||||
Accounts receivable
|
$
|
|
||
Other assets
|
|
|||
Identified intangible assets
|
|
|||
Accounts payable and other liabilities
|
(
|
)
|
||
Contract liabilities
|
(
|
)
|
||
Total identifiable net assets
|
|
|||
Goodwill
|
|
|||
Total purchase consideration
|
$
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Net Sales
|
||||||||||||
Product
|
$
|
|
$
|
|
$
|
|
||||||
Professional services
|
|
|
|
|||||||||
Managed services
|
|
|
|
|||||||||
Technology business |
||||||||||||
Financing
|
|
|
|
|||||||||
Total
|
|
|
|
|||||||||
Gross Profit
|
||||||||||||
Product
|
|
|
|
|||||||||
Professional services
|
|
|
|
|||||||||
Managed services
|
|
|
|
|||||||||
Technology business
|
||||||||||||
Financing
|
|
|
|
|||||||||
Total
|
|
|
|
|||||||||
Operating expenses
|
||||||||||||
Technology business
|
||||||||||||
Financing
|
||||||||||||
Total
|
||||||||||||
Operating income
|
||||||||||||
Technology business
|
|
|
|
|||||||||
Financing
|
|
|
|
|||||||||
Total
|
|
|
|
|||||||||
Other income (expense), net
|
(
|
)
|
(
|
)
|
|
|||||||
Earnings before tax
|
$
|
|
$
|
|
$
|
|
||||||
Depreciation and amortization
|
||||||||||||
Technology business
|
$
|
|
$
|
|
$
|
|
||||||
Financing
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
||||||
Interest and financing costs
|
||||||||||||
Technology business
|
$
|
|
$
|
|
$
|
|
||||||
Financing
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$ |
Selected Financial Data - Statement of Cash Flow
|
||||||||||||
Purchases of property, equipment and operating lease equipment | ||||||||||||
Technology business
|
$
|
|
$
|
|
$
|
|
||||||
Financing
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
Year ended March 31, 2023
|
||||||||||||||||||||
Product
|
Professional
Services
|
Managed Services
|
Financing
|
Total
|
||||||||||||||||
Net Sales
|
||||||||||||||||||||
Contracts with customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Financing and other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Timing and position as principal or agent
|
||||||||||||||||||||
Transferred at a point in time as principal
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Transferred at a point in time as agent
|
|
|
|
|
|
|||||||||||||||
Transferred over time as principal
|
|
|
|
|
|
|||||||||||||||
Total revenue from contracts with customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year ended March 31, 2022
|
||||||||||||||||||||
Product
|
Professional
Services
|
Managed Services
|
Financing
|
Total
|
||||||||||||||||
Net Sales
|
||||||||||||||||||||
Contracts with customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Financing and other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Timing and position as principal or agent
|
||||||||||||||||||||
Transferred at a point in time as principal
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Transferred at a point in time as agent
|
|
|
|
|
|
|||||||||||||||
Transferred over time as principal
|
|
|
|
|
|
|||||||||||||||
Total revenue from contracts with customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year ended March 31, 2021
|
||||||||||||||||||||
Product
|
Professional
Services
|
Managed Services
|
Financing
|
Total
|
||||||||||||||||
Net Sales
|
||||||||||||||||||||
Contracts with customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Financing and other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Timing and position as principal or agent
|
||||||||||||||||||||
Transferred at a point in time as principal
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Transferred at a point in time as agent
|
|
|
|
|
|
|||||||||||||||
Transferred over time as principal
|
|
|
|
|
|
|||||||||||||||
Total revenue from contracts with customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Customer end market:
|
||||||||||||
Telecom, media & entertainment
|
$
|
|
$
|
|
$
|
|
||||||
Technology
|
|
|
|
|||||||||
SLED
|
|
|
|
|||||||||
Healthcare
|
|
|
|
|||||||||
Financial services
|
|
|
|
|||||||||
All others
|
|
|
|
|||||||||
Net sales
|
|
|
|
|||||||||
Less: revenue from financing and other
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total revenue from contracts with customers
|
$
|
|
$
|
|
$
|
|
||||||
Type:
|
||||||||||||
Product |
|
|
|
|
|
|
||||||
Networking
|
$ |
|
$ |
|
$ |
|
||||||
Cloud
|
||||||||||||
Security
|
|
|
|
|||||||||
Collaboration
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total product | ||||||||||||
Professional services | ||||||||||||
Managed services | ||||||||||||
Net sales
|
|
|
|
|||||||||
Less: revenue from financing and other
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total revenue from contracts with customers
|
$
|
|
$
|
|
$
|
|
Year Ended March 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Net sales:
|
||||||||||||
US
|
$
|
|
$
|
|
$
|
|
||||||
Non US
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
March 31,
|
||||||||
2023
|
2022
|
|||||||
Long-lived tangible assets:
|
||||||||
US
|
$
|
|
$
|
|
||||
Non US
|
|
|
||||||
Total
|
$
|
|
$
|
|