Restatement of Previously Issued Condensed Consolidated Financial Statements

9 Months Ended

Dec. 31, 2020

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Condensed Consolidated Financial Statements

NOTE 2 – RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company has determined that in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, “Revenue from Contract with Customers,” the Company incorrectly accounted for the cost of its cooperative (“co-op”) promotion allowances (previously referred to as “cooperative advertising”) with its customers as selling expenses instead of a reduction in net sales for the three and nine months ended December 31, 2019, as these co-op promotion allowances are not a distinct good or service and the Company cannot reasonably estimate the fair value of the benefit it receives from these arrangements.

The effects of this accounting error do not impact the condensed consolidated balance sheets, statements of cash flows and statements of shareholders’ equity. The effects are confined to the condensed consolidated statements of operations, and these notes to condensed consolidated financial statements. The tables below set forth the condensed consolidated statements of operations, including the balances as originally reported, adjustments and the as restated balances for each of the periods affected:

	For the Three Months Ended
	As Reported						As Restated
	December 31, 2019			Adjustment			December 31, 2019
Net Sales	$	15,519,516		$	(1,661,940	)	$	13,857,576
Cost of Goods Sold		11,486,520			-			11,486,520
Gross Profit		4,032,996			(1,661,940	)		2,371,056
Operating Expenses
Selling expenses		3,402,717			(1,661,940	)		1,740,777
General and administrative expenses		1,442,192			-			1,442,192
Depreciation		77,161			-			77,161
Total Operating Expenses		4,922,070			(1,661,940	)		3,260,130
Loss from Operations		(889,074	)		-			(889,074	)
Other Expenses
Interest Expense		(105,583	)		-			(105,583	)
Finance Costs		(3,334	)		-			(3,334	)
Total Other Expenses		(108,917	)		-			(108,917	)
Loss Before Income Tax Benefit		(997,991	)		-			(997,991	)
Income Tax Benefit		240,042			-			240,042
Net Loss	$	(757,949	)	$	-		$	(757,949	)

	For the Nine Months Ended
	As Reported						As Restated
	December 31, 2019			Adjustment			December 31, 2019
Net Sales	$	40,410,398		$	(2,858,069	)	$	37,552,329
Cost of Goods Sold		29,747,376			-			29,747,376
Gross Profit		10,663,022			(2,858,069	)		7,804,953
Operating Expenses
Selling expenses		6,550,139			(2,858,069	)		3,692,070
General and administrative expenses		5,048,517			-			5,048,517
Depreciation		196,210			-			196,210
Total Operating Expenses		11,794,866			(2,858,069	)		8,936,797
Loss from Operations		(1,131,844	)		-			(1,131,844	)
Other Expenses
Interest Expense		(156,097	)		-			(156,097	)
Finance Costs		(10,000	)		-			(10,000	)
Total Other Expenses		(166,097	)		-			(166,097	)
Loss Before Income Tax Benefit		(1,297,941	)		-			(1,297,941	)
Income Tax Benefit		294,633			-			294,633
Net Loss	$	(1,003,308	)	$	-		$	(1,003,308	)