RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

12 Months Ended

Jun. 30, 2023

Restatement Of Previously Issued Financial Statements

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company has restated its consolidated financial statements as of and for the years ended June 30, 2022 and 2021 and as of and for the first three quarters of fiscal 2021, 2022 and 2023. The restatement corrects the error related to the fair value of the Monogram Warrant which had been understated (See Note 5). The restatement records the investment at its estimated fair value for all restated periods, records the unrealized gain on investments for each restated period, and records the deferred income tax expense associated with the corresponding unrealized gain on investments. The restatement does not impact previously reported revenues, operating income, cash or cash flows for any previous periods.

Presented below are the changes to each financial statement line item which changed as a result of the restatement.

June 30, 2022 Balance Sheet

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	797	$	(541	)(a)	$	256
Investments		1,779		2,304	(b)		4,083
Total assets		47,326		1,763			49,089
Retained earnings		15,986		1,763			17,749
Total liabilities and shareholders’ equity		47,326		1,763			49,089

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at June 30, 2022.

Fiscal 2022 Income Statement

	As Previously Reported			Restatement			As Restated
Unrealized gain (loss) on investments	$	(57	)	$	988	(a)	$	931
Total other income (loss)		(417	)		988			571
Income before income taxes		4,706			988			5,694
Income tax expense		851			271	(b)		1,122
Net income		3,855			717			4,572
Basic income per share	$	1.06		$	0.20		$	1.26
Diluted income per share	$	1.02		$	0.19		$	1.21

^(a) This amount represents the unrealized gain on the Monogram Warrant for the fiscal year 2022.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the fiscal year 2022.

Fiscal 2021 Income Statement

	As Previously Reported		Restatement			As Restated
Unrealized gain on investments	$	1,371	$	619	(a)	$	1,990
Total other income		2,472		619			3,091
Income before income taxes		6,997		619			7,616
Income tax expense		1,176		270	(b)		1,446
Net income		5,821		349			6,170
Basic income per share	$	1.53	$	0.10		$	1.63
Diluted income per share	$	1.48	$	0.09		$	1.57

^(a) This amount represents the unrealized gain on the Monogram Warrant for the fiscal year 2021.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the fiscal year 2021.

	Fiscal 2023 Unaudited Quarterly Periods
	September 30, 2022		December 31, 2022		March 31, 2023
Net income, as previously reported	$	1,076	$	879	$	1,313
Adjustments to net income:
Unrealized gain on investments(a)		175		2,582		419
Income tax expense(b)		48		709		115
Net income, as restated	$	1,203	$	2,752	$	1,617
Basic & Diluted income per share as previously reported:
Basic net income per share	$	0.30	$	0.25	$	0.37
Diluted net income per share	$	0.29	$	0.24	$	0.36
Basic & Diluted income per share as restated:
Basic net income per share	$	0.33	$	0.80	$	0.46
Diluted net income per share	$	0.33	$	0.79	$	0.45
Weighted-average common shares outstanding:
Basic		3,616,000		3,574,000		3,548,000
Diluted		3,695,000		3,652,000		3,623,000

^(a) This amount represents the unrealized gain on the Monogram Warrant.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant.

	Fiscal 2022 Unaudited Quarterly Periods
	September 30, 2021		December 31, 2021		March 31, 2022		June 30, 2022
Net income as previously reported	$	1,064	$	925	$	462	$	1,405
Adjustments to net income:
Unrealized gain on investments(a)		22		216		155		595
Income tax expense(b)		6		59		43		163
Net income as restated	$	1,080		1,082	$	574		1,837
Basic & Diluted income per share as previously reported
Basic net income per share	$	0.29	$	0.25	$	0.13	$	0.39
Diluted net income per share	$	0.28	$	0.25	$	0.12	$	0.38
Basic & Diluted income per share as restated
Basic net income per share	$	0.30	$	0.30	$	0.16	$	0.51
Diluted net income per share	$	0.29	$	0.29	$	0.15	$	0.49
Weighted-average common shares outstanding:
Basic		3,651,000		3,657,000		3,626,000		3,609,000
Diluted		3,777,000		3,767,000		3,749,000		3,731,000

^(a) This amount represents the unrealized gain on the Monogram Warrant.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant.

	Fiscal 2021 Unaudited Quarterly Periods
	September 30, 2020			December 31, 2020		March 31, 2021		June 30, 2021
Net income as previously reported	$	1,158		$	1,750	$	2,131	$	782
Adjustments to net income:
Unrealized loss on investments(a)		(59	)		51		42		585
Income tax (benefit) expense(b)		(16	)		14		12		260
Net income as restated	$	1,115			1,787	$	2,161		1,107
Basic & Diluted income per share as previously reported
Basic net income per share	$	0.30		$	0.45	$	0.56	$	0.23
Diluted net income per share	$	0.29		$	0.44	$	0.54	$	0.22
Basic & Diluted income per share as restated
Basic net income per share	$	0.29		$	0.46	$	0.57	$	0.29
Diluted net income per share	$	0.28		$	0.45	$	0.54	$	0.28
Weighted-average common shares outstanding:
Basic		3,851,000			3,861,000		3,817,000		3,656,000
Diluted		3,975,000			4,012,000		3,966,000		3,796,000

^(a) This amount represents the unrealized gain on the Monogram Warrant.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant.

September 30, 2020 Unaudited Balance Sheet (First Quarter Fiscal 2021)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	259	$	16	(a)	$	275
Investments		2,309		638	(b)		2,947
Total assets		30,797		654			31,451
Retained earnings		7,468		654			8,122
Total liabilities and shareholders’ equity		30,797		654			31,451

^(a) This amount represents the income tax benefit associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at September 30, 2020.

First Quarter Fiscal 2021 Unaudited Income Statement – Three months ended September 30, 2020

	As Previously Reported			Restatement			As Restated
Unrealized gain (loss) on investments	$	(107	)	$	(59	)(a)	$	(166	)
Total other income (expense)		(108	)		(59	)		(167	)
Income before income taxes		1,441			(59	)		1,382
Income tax expense		283			(16	)(b)		267
Net income		1,158			(43	)		1,115
Basic income per share	$	0.30		$	(0.01	)	$	0.29
Diluted income per share	$	0.29		$	(0.01	)	$	0.28

^(a) This amount represents the unrealized loss on the Monogram Warrant for the three months ended September 30, 2020.

^(b) This amount represents the income tax benefit related to the unrealized loss on the Monogram Warrant for the three months ended September 30, 2020.

December 31, 2020 Unaudited Balance Sheet (Second Quarter Fiscal 2021)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	259	$	2	(a)	$	261
Investments		3,238		689	(b)		3,927
Total assets		38,372		691			39,063
Retained earnings		9,218		691			9,909
Total liabilities and shareholders’ equity		38,372		691			39,063

^(a) This amount represents the income tax benefit associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at December 31, 2020.

Three months ended December 31, 2020 Unaudited Income Statement (Second Quarter Fiscal 2021)

	As Previously Reported		Restatement			As Restated
Unrealized gain (loss) on investments	$	1,413	$	51	(a)	$	1,464
Total other income (expense)		1,358		51			1,409
Income before income taxes		1,879		51			1,930
Income tax expense		129		14	(b)		143
Net income		1,750		37			1,787
Basic income per share	$	0.45	$	0.01		$	0.46
Diluted income per share	$	0.44	$	0.01		$	0.45

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended December 31, 2020.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended December 31, 2020.

March 31, 2021 Unaudited Balance Sheet (Third Quarter Fiscal 2021)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	259	$	(9	)(a)	$	250
Investments		3,026		731	(b)		3,757
Total assets		42,315		722			43,037
Retained earnings		11,349		722			12,071
Total liabilities and shareholders’ equity		42,315		722			43,037

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at March 31, 2021.

Three months ended March 31, 2021 Unaudited Income Statement (Third Quarter Fiscal 2021)

	As Previously Reported		Restatement			As Restated
Unrealized gain (loss) on investments	$	136	$	42	(a)	$	178
Total other income (expense)		858		42			900
Income before income taxes		2,723		42			2,765
Income tax expense		592		12	(b)		604
Net income		2,131		30			2,161
Basic income per share	$	0.56	$	0.01		$	0.57
Diluted income per share	$	0.54	$	0.01		$	0.54

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended March 31, 2021.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended March 31, 2021.

September 30, 2021 Unaudited Balance Sheet (First Quarter Fiscal 2022)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	463	$	(276	)(a)	$	187
Investments		1,656		1,338	(b)		2,994
Total assets		41,865		1,062			42,927
Retained earnings		13,195		1,062			14,257
Total liabilities and shareholders’ equity		41,865		1,062			42,927

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at September 30, 2021.

First Quarter Fiscal 2022 Unaudited Income Statement – Three months ended September 30, 2021

	As Previously Reported		Restatement			As Restated
Unrealized gain(loss) on investments	$	149	$	22	(a)	$	171
Total other income (expense)		53		22			75
Income before income taxes		1,371		22			1,393
Income tax expense		307		6	(b)		313
Net income		1,064		16			1,080
Basic income per share	$	0.29	$	0.01		$	0.30
Diluted income per share	$	0.28	$	0.01		$	0.29

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended September 30, 2021.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended September 30, 2021.

December 31, 2021 Unaudited Balance Sheet (Second Quarter Fiscal 2022)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	463	$	(335	)(a)	$	128
Investments		1,940		1,554	(b)		3,494
Total assets		42,114		1,219			43,333
Retained earnings		14,119		1,219			15,338
Total liabilities and shareholders’ equity		42,114		1,219			43,333

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at December 31, 2021.

Three months ended December 31, 2021 Unaudited Income Statement (Second Quarter Fiscal 2022)

	As Previously Reported			Restatement			As Restated
Unrealized gain(loss) on investments	$	(300	)	$	216	(a)	$	(84	)
Total other income (expense)		(392	)		216			(176	)
Income before income taxes		1,210			216			1,426
Income tax expense		285			59	(b)		344
Net income		925			157			1,082
Basic income per share	$	0.25		$	0.05		$	0.30
Diluted income per share	$	0.25		$	0.04		$	0.29

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended December 31, 2021.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended December 31, 2021.

March 31, 2022 Unaudited Balance Sheet (Third Quarter Fiscal 2022)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	463	$	(378	)(a)	$	85
Investments		1,778		1,709	(b)		3,487
Total assets		43,884		1,331			45,215
Retained earnings		14,581		1,331			15,912
Total liabilities and shareholders’ equity		43,884		1,331			45,215

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at March 31, 2022.

Three months ended March 31, 2022 Unaudited Income Statement (Third Quarter Fiscal 2022)

	As Previously Reported			Restatement			As Restated
Unrealized gain(loss) on investments	$	(275	)	$	155	(a)	$	(120	)
Total other income (expense)		(387	)		155			(232	)
Income before income taxes		634			155			789
Income tax expense		172			43	(b)		215
Net income		462			112			574
Basic income per share	$	0.13		$	0.03		$	0.16
Diluted income per share	$	0.12		$	0.03		$	0.15

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended March, 31, 2022.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended March 31, 2022.

September 30, 2022 Unaudited Balance Sheet (First Quarter Fiscal 2023)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	764	$	(589	)(a)	$	175
Investments		1,889		2,479	(b)		4,368
Total assets		47,965		1,890			49,855
Retained earnings		17,062		1,890			18,952
Total liabilities and shareholders’ equity		47,965		1,890			49,855

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at September 30, 2022.

First Quarter Fiscal 2023 Unaudited Income Statement – Three months ended September 30, 2022

	As Previously Reported		Restatement			As Restated
Unrealized gain(loss) on investments	$	250	$	175	(a)	$	425
Total other income (expense)		344		175			519
Income before income taxes		1,294		175			1,469
Income tax expense		218		48	(b)		266
Net income		1,076		127			1,203
Basic income per share	$	0.30	$	0.03		$	0.33
Diluted income per share	$	0.29	$	0.04		$	0.33

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended September 30, 2022.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended September 30, 2022.

December 31, 2022 Unaudited Balance Sheet (Second Quarter Fiscal 2023)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	764	$	(764	)(a)	$	—
Investments		1,726		5,061	(b)		6,787
Total assets		47,579		4,297			51,876
Deferred income taxes		—		534			534
Total liabilities		23,105		534			23,639
Retained earnings		17,941		3,763			21,704
Total liabilities and shareholders’ equity		47,579		4,297			51,876

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at December 31, 2022.

Three months ended December 31, 2022 Unaudited Income Statement (Second Quarter Fiscal 2023)

	As Previously Reported		Restatement			As Restated
Unrealized gain(loss) on investments	$	158	$	2,582	(a)	$	2,740
Total other income (expense)		37		2,582			2,619
Income before income taxes		1,174		2,582			3,756
Income tax expense		295		709	(b)		1,004
Net income		879		1,873			2,752
Basic income per share	$	0.25	$	0.55		$	0.80
Diluted income per share	$	0.24	$	0.55		$	0.79

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended December 31, 2022.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended December 31, 2022.

March 31, 2023 Unaudited Balance Sheet (Third Quarter Fiscal 2023)

	As Previously Reported		Restatement			As Restated
Deferred income taxes, net	$	764	$	(764	)(a)	$	—
Investments		1,534		5,480	(b)		7,014
Total assets		46,975		4,716			51,691
Deferred income taxes		—		649			649
Total liabilities		21,136		649			21,785
Retained earnings		19,254		4,067			23,321
Total liabilities and shareholders’ equity		46,975		4,716			51,691

^(a) This amount represents the income tax expense associated with the Monogram Warrant.

^(b) This amount represents the estimated fair value of the Monogram Warrant at March 31, 2023.

Three months ended March 31, 2023 Unaudited Income Statement (Third Quarter Fiscal 2023)

	As Previously Reported			Restatement			As Restated
Unrealized gain(loss) on investments	$	(177	)	$	419	(a)	$	242
Total other income (expense)		(297	)		419			122
Income before income taxes		1,768			419			2,187
Income tax expense		455			115	(b)		570
Net income		1,313			304			1,617
Basic income per share	$	0.37		$	0.09		$	0.46
Diluted income per share	$	0.36		$	0.09		$	0.45

^(a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023.

^(b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023.