SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of prepaid expenses and other current assets

A summary of prepaid expenses and other current assets is as follows (in millions):

	September 2022		September 2021
Prepaid expenses	$	3.1	$	1.6
Prepaid inventory		9.6		3.2
Note receivable, current portion		—		0.2
	$	12.7	$	5.0

Schedule of estimated useful lives of property and equipment

	Years
Land improvements	10	-	15
Warehouse equipment	3	-	20
Buildings and improvements	5	-	40
Furniture, fixtures and leasehold improvements	1	-	12
Vehicles	2	-	5

Schedule of revisions of previously issued consolidated financial statements

Mandatorily redeemable non-controlling interest (“MRNCI”) recorded on the Company’s balance sheet represents the non-controlling interest in the Company’s strategic investment in Team Sledd LLC (“Team Sledd”). In conjunction with the finalization of the Company’s preliminary accounting for the Team Sledd acquisition described in Note 2, the Company determined the MRNCI should have been reported as a liability under ASC 480 – Distinguishing Liabilities From Equity (“ASC 480”) at June 2022. The Company is correcting its classification of the MRNCI from equity to a liability. The correction had an immaterial impact on fiscal 2022 third quarter net income available to common shareholders which increased by approximately $62,000, with no impact on net cash flows, and resulted in the removal of Non-controlling

interest from the Condensed Consolidated Unaudited Statement of Shareholders’ Equity and Total Shareholders’ Equity. The following tables reflect the correction of the MRNCI from equity to liability in the June 2022 10-Q (in millions except for per share amounts):

	As of June 2022
	As Reported				As Corrected
Condensed Consolidated Balance Sheet /1/	(Unaudited)		Adjustment		(Unaudited)
Current mandatorily redeemable non-controlling interest	$	—	$	1.7	$	1.7
Total current liabilities	$	69.1	$	1.7	$	70.7
Deferred income tax liability, net	$	2.9	$	(0.2)	$	2.8
Mandatorily redeemable non-controlling interest, less current portion	$	—	$	9.4	$	9.4
Retained earnings	$	92.2	$	0.1	$	92.3
Total parent shareholders' equity	$	88.1	$	0.1	$	88.1
Non-controlling interest	$	11.0	$	(11.0)	$	—
Total shareholders' equity	$	99.1	$	(10.9)	$	88.1

	Three months ended June 2022						Nine months ended June 2022
	As Reported				As Corrected		As Reported				As Corrected
Condensed Consolidated Statements of Operations /1/	(Unaudited)		Adjustment		(Unaudited)		(Unaudited)		Adjustment		(Unaudited)
Change in fair value of mandatorily redeemable non-controlling interest	$	—	$	0.7	$	0.7	$	—	$	0.7	$	0.7
Income from operations before income taxes	$	8.7	$	(0.7)	$	8.0	$	15.9	$	(0.7)	$	15.2
Income tax expense (benefit)	$	2.4	$	(0.2)	$	2.2	$	5.0	$	(0.2)	$	4.8
Net income	$	6.6	$	(0.5)	$	6.0	$	12.6	$	(0.5)	$	12.1
Less: Net income attributable to non-controlling interest	$	(0.6)	$	0.6	$	—	$	(0.6)	$	0.6	$	—
Net income attributable to common shareholders	$	6.0	$	0.1	$	6.0	$	12.0	$	0.1	$	12.1
Basic earnings per share	$	10.50	$	0.11	$	10.61	$	21.15	$	0.11	$	21.25
Diluted earnings per share	$	10.27	$	0.11	$	10.38	$	20.62	$	0.11	$	20.72

	Nine months ended June 2022
	As Reported				As Corrected
Condensed Consolidated Statement of Cash Flows /1/	(Unaudited)		Adjustment		(Unaudited)
Net income /2/	$	12.6	$	(0.5)	$	12.1
Adjustments to reconcile net income to net cash flows from (used in) operating activities:
Deferred income taxes	$	1.4	$	(0.2)	$	1.2
Change in fair value of mandatorily redeemable non-controlling interest	$	—	$	0.7	$	0.7
Net cash flows from (used in) operating activities	$	7.1	$	—	$	7.1

/1/ Items may not sum across due to rounding

/2/ Line item prior to net income attributable to non-controlling interest

Schedule of mandatorily redeemable non-controlling interest

Initial measurement at the Control Date (see Note 2)	$	10.4
Distributions to non-controlling interest		(0.7)
Change in fair value		1.5
Fair value of MRNCI as of September 30, 2022	$	11.2
Less current portion at fair value		(1.7)
	$	9.5