Restatement of Previously Issued Financial Statements (Tables)

12 Months Ended

Jun. 30, 2021

Nature of Business and Summary of Significant Accounting Policies

Schedule of originally reported and restated balances

Subsequent to the filing of the Original Form 10-K, management reviewed its methodology for calculating its reserves for obsolete inventory. During this review, management identified changes related to the Company’s reserves for obsolete inventory that it deemed appropriate. The reserves reflected in the Company’s Original Form 10-K relied primarily on estimates developed by management, which were based on historic and institutional knowledge and judgements as to the potential for obsolescence for items deemed at risk. Upon management’s review, it was determined a systematic method of evaluation, which utilized historical data, including sales data and component parts usage, as well as product life cycles, trends and judgement, is more accurate. This resulted in changes to the Company’s reserves for obsolescence for fiscal years 2021, 2020 and 2019. The effects of these changes on the financial statements for these periods are shown in the tables below.

Retained earning as of the beginning of fiscal 2019 has been adjusted by $894 related to the restatement of inventories ($901) net of tax effect of ($7).

The table below sets forth the consolidated balance sheets information, including the balances originally reported and the restated balances as of June 30:

	June 30, 2021				June 30, 2020
	(in thousands, except for share and per share data)
	As				As
	previously		As		previously		As
	reported		restated		reported		restated
Inventory - Current	$	25,278	$	24,933	$	35,231	$	34,727
Inventory - Non-Current		7,164		6,767		6,524		5,688
Accrued income taxes		1,635		1,709		1,148		1,239
Deferred income taxes		347		380		112		43
Retained earnings		94,345		93,312		79,444		77,899

The table below sets forth the consolidated statements of income information, including the balances originally reported and the restated balances for the fiscal years ended June 30:

	June 30, 2021
	(in thousands, except for share and per share data)
	As
	previously
	reported		Restated
Equipment Related Expenses	$	58,998	$	58,401
Cost of Sales		63,884		63,287
Gross Profit		50,151		50,748
Operating Income		17,335		17,932
Income before provision for Income Taxes		17,330		17,927
Provision for Income Taxes		2,429		2,514
Net Income		14,901		15,413
Income per share:
Basic	$	0.41	$	0.42
Diluted	$	0.41	$	0.42
	June 30, 2020
	(in thousands, except for share and per share data)
	As
	previously
	reported		Restated
Equipment Related Expenses	$	53,434	$	54,182
Cost of Sales		57,767		58,515
Gross Profit		43,592		42,844
Operating Income		10,813		10,065
Income before provision for Income Taxes		10,804		10,056
Provision for Income Taxes		2,284		2,261
Net Income		8,520		7,795
Income per share:
Basic	$	0.23	$	0.21
Diluted	$	0.23	$	0.21
	June 30, 2019
	(in thousands, except for share and per share data)
	As
	previously
	reported		Restated
Equipment Related Expenses	$	55,240	$	54,930
Cost of Sales		59,042		58,732
Gross Profit		43,890		44,200
Operating Income		13,466		13,776
Income before provision for Income Taxes		13,445		13,755
Provision for Income Taxes		1,222		1,274
Net Income		12,223		12,481
Income per share:
Basic	$	0.33	$	0.34
Diluted	$	0.33	$	0.34

The table below sets forth the consolidated statements of cash flows information, including the balances originally reported and the restated balances for the fiscal years ended June 30:

	June 30, 2021
	(in thousands, except for share and per share data)
	As
	previously
	reported		Restated
Net income	$	14,901	$	15,413
Change to inventory obsolescence reserve		519		(79)
Deferred income taxes		235		337
Changes in operating assets and liabilities:
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes		1,906		1,889
Net Cash Provided by Operating Activities		22,987		22,987
	June 30, 2020
	(in thousands, except for share and per share data)
	As
	previously
	reported		Restated
Net income	$	8,520	$	7,795
Change to inventory obsolescence reserve		(124)		624
Deferred income taxes		40		(47)
Changes in operating assets and liabilities:
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes		1,862		1,926
Net Cash Provided by Operating Activities		10,305		10,305
	'June 30, 2019
	(in thousands, except for share and per share data)
	As
	previously
	reported		Restated
Net income	$	12,223	$	12,481
Change to inventory obsolescence reserve		(272)		(582)
Deferred income taxes		755		755
Changes in operating assets and liabilities:
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes		1,528		1,580
Net Cash Provided by Operating Activities		8,653		8,653