Schedule of revised consolidated financial statements |
|
|
December 31, 2019 |
|
|
|
As Previously Reported |
|
|
Adjustment |
|
|
Revised |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
12,979,444 |
|
|
|
|
|
|
$ |
12,979,444 |
|
Accounts receivable, net |
|
|
2,953,921 |
|
|
|
|
|
|
|
2,953,921 |
|
Notes receivable, net |
|
|
1,037,541 |
|
|
|
|
|
|
|
1,037,541 |
|
Inventory |
|
|
22,659,357 |
|
|
|
(1,082,748 |
) |
|
|
21,576,609 |
|
Prepaids and other current assets |
|
|
2,549,559 |
|
|
|
|
|
|
|
2,549,559 |
|
Total current assets |
|
|
42,171,822 |
|
|
|
|
|
|
|
41,097,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
3,340,616 |
|
|
|
|
|
|
|
3,340,616 |
|
Operating leases right-of-use assets, net |
|
|
7,628,591 |
|
|
|
|
|
|
|
7,628,591 |
|
Notes receivable |
|
|
463,747 |
|
|
|
|
|
|
|
463,747 |
|
Intangible assets, net |
|
|
233,280 |
|
|
|
|
|
|
|
233,280 |
|
Goodwill |
|
|
17,798,932 |
|
|
|
|
|
|
|
17,798,932 |
|
Other assets |
|
|
377,364 |
|
|
|
|
|
|
|
377,364 |
|
TOTAL ASSETS |
|
$ |
72,022,352 |
|
|
|
|
|
|
$ |
70,939,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
6,024,750 |
|
|
|
|
|
|
|
6,024,750 |
|
Payroll and payroll tax liabilities |
|
|
1,072,142 |
|
|
|
|
|
|
|
1,072,142 |
|
Customer deposits |
|
|
2,503,785 |
|
|
|
|
|
|
|
2,503,785 |
|
Sales tax payable |
|
|
533,656 |
|
|
|
|
|
|
|
533,656 |
|
Current maturities of right-of-use assets |
|
|
1,836,700 |
|
|
|
|
|
|
|
1,836,700 |
|
Current portion of long-term debt |
|
|
110,231 |
|
|
|
|
|
|
|
110,231 |
|
Total current liabilities |
|
|
12,081,264 |
|
|
|
|
|
|
|
12,081,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating leases right-of-use assets, net of current maturities |
|
|
5,807,266 |
|
|
|
|
|
|
|
5,807,266 |
|
Long-term debt, net of current portion |
|
|
242,079 |
|
|
|
|
|
|
|
242,079 |
|
Total liabilities |
|
|
18,130,609 |
|
|
|
|
|
|
|
18,130,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock; $.001 par value; 100,000,000 shares 36,876,305 shares issued and outstanding as of December 31, 2019 |
|
|
36,876 |
|
|
|
|
|
|
|
36,876 |
|
Additional paid-in capital |
|
|
60,742,055 |
|
|
|
|
|
|
|
60,742,055 |
|
Accumulated deficit |
|
|
(6,887,188 |
) |
|
|
(1,082,748 |
) |
|
|
(7,969,936 |
) |
Total stockholders' equity |
|
|
53,891,743 |
|
|
|
|
|
|
|
52,808,995 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
72,022,352 |
|
|
|
|
|
|
$ |
70,939,604 |
|
|
|
Year Ended December 31, 2019 |
|
|
|
As Previously Reported |
|
|
Adjustment |
|
|
Revised |
|
Sales |
|
$ |
79,733,568 |
|
|
|
|
|
|
$ |
79,733,568 |
|
Cost of sales |
|
|
57,171,721 |
|
|
|
556,962 |
|
|
|
57,728,683 |
|
Gross profit |
|
|
22,561,847 |
|
|
|
|
|
|
|
22,004,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Store operations |
|
|
10,095,422 |
|
|
|
|
|
|
|
10,095,422 |
|
General and administrative |
|
|
3,172,019 |
|
|
|
|
|
|
|
3,172,019 |
|
Share based compensation |
|
|
2,490,535 |
|
|
|
|
|
|
|
2,490,535 |
|
Depreciation and amortization |
|
|
1,044,553 |
|
|
|
|
|
|
|
1,044,553 |
|
Salaries and related expenses |
|
|
3,619,197 |
|
|
|
|
|
|
|
3,619,197 |
|
Total operating expenses |
|
|
20,421,726 |
|
|
|
|
|
|
|
20,421,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from operations |
|
|
2,140,121 |
|
|
|
|
|
|
|
1,583,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous income (expense) |
|
|
(4,545 |
) |
|
|
|
|
|
|
(4,545 |
) |
Interest income |
|
|
144,725 |
|
|
|
|
|
|
|
144,725 |
|
Interest expense |
|
|
(401,497 |
) |
|
|
|
|
|
|
(401,497 |
) |
Total non-operating income (expense), net |
|
|
(261,317 |
) |
|
|
|
|
|
|
(261,317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before taxes |
|
|
1,878,804 |
|
|
|
|
|
|
|
1,321,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
0 |
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,878,804 |
|
|
|
|
|
|
|
1,321,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic |
|
$ |
0.06 |
|
|
|
|
|
|
$ |
0.04 |
|
Net income per share, diluted |
|
$ |
0.06 |
|
|
|
|
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic |
|
|
32,833,594 |
|
|
|
|
|
|
|
32,833,594 |
|
Weighted average shares outstanding, diluted |
|
|
33,910,154 |
|
|
|
|
|
|
|
33,910,154 |
|
|
|
For The Year Ended December 31, 2019 |
|
Cash Flows from Operating
Activities: |
|
As Previously Reported |
|
|
Adjustment |
|
|
Revised |
|
Net income |
|
$ |
1,878,804 |
|
|
|
(556,962 |
) |
|
$ |
1,321,842 |
|
Adjustments to reconcile net income to net cash used in operating Activities: |
|
|
|
|
|
|
|
|
|
|
- |
|
Depreciation and amortization |
|
|
1,044,553 |
|
|
|
|
|
|
|
1,044,553 |
|
Provision for doubtful accounts receivable |
|
|
172,135 |
|
|
|
|
|
|
|
172,135 |
|
Inventory valuation reserve |
|
|
429,126 |
|
|
|
|
|
|
|
429,126 |
|
Amortization of debt discount |
|
|
356,306 |
|
|
|
|
|
|
|
356,306 |
|
Stock based compensation |
|
|
2,490,535 |
|
|
|
|
|
|
|
2,490,535 |
|
Other |
|
|
(66,536 |
) |
|
|
|
|
|
|
(66,536 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
- |
|
(Increase) decrease in: |
|
|
|
|
|
|
|
|
|
|
- |
|
Accounts receivable |
|
|
(3,764,947 |
) |
|
|
|
|
|
|
(3,764,947 |
) |
Inventory |
|
|
(10,482,014 |
) |
|
|
556,962 |
|
|
|
(9,925,052 |
) |
Prepaid expenses and other assets |
|
|
(2,061,701 |
) |
|
|
|
|
|
|
(2,061,701 |
) |
Increase (decrease) in: |
|
|
|
|
|
|
|
|
|
|
- |
|
Accounts payable and accrued liabilities |
|
|
4,165,188 |
|
|
|
|
|
|
|
4,165,188 |
|
Operating leases |
|
|
15,375 |
|
|
|
|
|
|
|
15,375 |
|
Customer deposits |
|
|
1,987,747 |
|
|
|
|
|
|
|
1,987,747 |
|
Income taxes |
|
|
- |
|
|
|
|
|
|
|
- |
|
Payroll and payroll tax liabilities |
|
|
154,471 |
|
|
|
|
|
|
|
154,471 |
|
Sales taxes payable |
|
|
341,698 |
|
|
|
|
|
|
|
341,698 |
|
Net Cash and Cash Equivalents (Used In) Operating Activities |
|
|
(3,339,260 |
) |
|
|
|
|
|
|
(3,339,260 |
) |
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Assets acquired in business combinations |
|
|
(9,458,743 |
) |
|
|
|
|
|
|
(9,458,743 |
) |
Purchase of property and equipment |
|
|
(2,232,812 |
) |
|
|
|
|
|
|
(2,232,812 |
) |
Purchase of goodwill and other intangibles |
|
|
(119,125 |
) |
|
|
|
|
|
|
(119,125 |
) |
Net Cash and Cash Equivalents (Used In) Investing Activities |
|
|
(11,810,680 |
) |
|
|
|
|
|
|
(11,810,680 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Principal payments on long term debt |
|
|
(460,129 |
) |
|
|
|
|
|
|
(460,129 |
) |
Stock redemptions |
|
|
- |
|
|
|
|
|
|
|
- |
|
Proceeds from the sales of common stock and exercise of warrants and options, net of expenses |
|
|
13,949,532 |
|
|
|
|
|
|
|
13,949,532 |
|
Net Cash and Cash Equivalents Provided by Financing Activities |
|
|
13,489,403 |
|
|
|
|
|
|
|
13,489,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase(decrease) in Cash and Cash Equivalents |
|
|
(1,660,537 |
) |
|
|
|
|
|
|
(1,660,537 |
) |
Cash and Cash Equivalents at Beginning of year |
|
|
14,639,981 |
|
|
|
|
|
|
|
14,639,981 |
|
Cash and Cash Equivalents at End of year |
|
$ |
12,979,444 |
|
|
|
|
|
|
$ |
12,979,444 |
|