Annual report pursuant to Section 13 and 15(d)

Quarterly Financial Data (Unaudited) (Tables)

v3.23.3
Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Jan. 29, 2023
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information
The net impact of the restatement on our quarterly financial data for 2023 is summarized as follows:

For the Thirteen Weeks Ended
January 29, 2023 October 30, 2022 July 31, 2022 May 1, 2022
(in thousands) As Previously Reported As Restated As Previously Reported As Restated As Previously Reported As Restated As Previously Reported As Restated
Net sales $ 238,847  $ 238,481  $ 134,784  $ 134,784  $ 148,534  $ 148,534  $ 129,380  $ 129,380 
Gross profit 135,220  133,674  63,572  64,904  80,926  79,099  66,108  65,974 
Operating income (loss) 38,071  36,477  (11,595) (10,125) 9,896  8,120  2,645  2,494 
Net income (loss) 27,644  26,215  (8,419) (7,362) 7,122  5,849  1,895  1,786 

As of
January 29, 2023 October 30, 2022 July 31, 2022 May 1, 2022
(in thousands) As Previously Reported As Restated As Previously Reported As Restated As Previously Reported As Restated As Previously Reported As Restated
Total current assets $ 194,041  $ 187,715  $ 215,537  $ 209,264  $ 209,259  $ 203,491  $ 210,185  $ 206,214 
Total non-current assets 224,013  220,911  191,859  191,787  164,655  165,422  156,391  157,381 
Total assets 418,054  408,626  407,396  401,051  373,914  368,913  366,576  363,595 
Total current liabilities 88,839  82,041  118,997  111,389  98,059  92,852  103,859  99,399 
Total non-current liabilities 135,955  133,491  130,229  130,229  109,864  109,864  103,480  103,480 
Total liabilities 224,794  215,532  249,226  241,618  207,923  202,716  207,339  202,879 
Total equity 193,260  193,094  158,170  159,433  165,991  166,197  159,237  160,716 

The net impact of the restatement on our quarterly and year-to-date unaudited condensed financial statements as of and for the thirteen weeks and thirty-nine weeks ended October 30, 2022, as of and for the thirteen and twenty-six weeks ended July 31, 2023 and as of and for the thirteen weeks ended May 1, 2022 is summarized as follows:
THE LOVESAC COMPANY
CONDENSED BALANCE SHEET
(unaudited)

October 30, 2022
(amounts in thousands, except share and per share amounts) As Previously Reported Corrections Reference As Restated
Assets
Current Assets
Cash and cash equivalents $ 3,832  $ —  $ 3,832 
Trade accounts receivable 15,357  —  15,357 
Merchandise inventories, net 154,481  —  154,481 
Prepaid expenses and other current assets 41,867  (6,273)
(a)(b)(e)(f)
 35,594 
Total Current Assets 215,537  (6,273) 209,264 
Property and equipment, net 47,477  —  47,477 
Operating lease right-of-use assets 133,075  (1,100)
(b)
 131,975 
Other Assets
Goodwill 144  —  144 
Intangible assets, net 1,395  —  1,395 
Deferred financing costs, net 73  —  73 
Deferred tax asset 9,695  (12)
(f)
 9,683 
Other assets —  1,040 
(e)
 1,040 
Total Other Assets 11,307  1,028  12,335 
Total Assets $ 407,396  $ (6,345) $ 401,051 
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 47,267  $ —  $ 47,267 
Accrued expenses 33,126  1,533 
(a)(f)
 34,659 
Payroll payable 7,199  —  7,199 
Customer deposits 5,861  —  5,861 
Current operating lease liabilities 20,774  (9,141)
(b)(e)
 11,633 
Sales taxes payable 4,770  —  4,770 
Total Current Liabilities 118,997  (7,608) 111,389 
Operating Lease Liability, long-term 130,229  —  130,229 
Line of Credit —  —  — 
Total Liabilities 249,226  (7,608) 241,618 
Stockholders’ Equity
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of October 30, 2022
 —  —  — 
Common Stock $0.00001 par value, 40,000,000 shares authorized, 15,192,134 shares issued and outstanding as of October 30, 2022
 —  —  — 
Additional paid-in capital 175,108  —  175,108 
Accumulated (deficit) earnings (16,938) 1,263 
(a)(b)(f)
 (15,675)
Stockholders' Equity 158,170  1,263  159,433 
Total Liabilities and Stockholders' Equity $ 407,396  $ (6,345) $ 401,051 
The description of each error is described in Note 2. The impact of each error for the corresponding period in the above table is described below:
(a) Last Mile Freight - The correction of these misstatements resulted in an increase to prepaid expenses and other current assets of $0.7 million, an increase to accrued expenses of $1.1 million, and an increase to accumulated deficit of $0.4 million at October 30, 2022.
(b) Leases - The correction of these misstatements resulted in an decease to prepaid expenses and other current assets of less than $0.1 million, a decrease to operating lease right-of-use assets of $1.1 million, a decrease to current operating lease liabilities of $3.3 million, and a decrease to accumulated deficit of $2.2 million at October 30, 2022.
(e) Balance Sheet Reclassifications - The correction of these misstatements resulted in a decrease to prepaid expenses and other current assets of $6.9 million, a decrease to current operating lease liabilities of $5.9 million and an increase to other assets of $1.0 million at October 30, 2022.
(f) Income Taxes - The tax impact of all misstatements resulted in an increase to prepaid expenses and other current assets of less than $0.1 million, a decrease to deferred tax asset of less than $0.1 million, an increase to accrued expenses of $0.4 million, and an increase to accumulated deficit of $0.4 million at October 30, 2022.