Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Jan. 29, 2023

Quarterly Financial Information Disclosure [Abstract]

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.