v3.26.1
Segment Reporting
 3 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
Note 3: Segment Reporting
The Company has a single segment that derives sales from customers through the sale of products which are shipped directly to customers. The accounting policies of the Company's single segment are the same as those described in the Company's Summary of Significant Accounting Policies.
The Company’s chief operating decision maker (“CODM”) is the Interim Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income (loss) and Adjusted EBITDA. The table below reconciles GAAP net loss reported on the accompanying Consolidated Statements of Operations to Adjusted EBITDA. The CODM uses consolidated net income (loss) and Adjusted EBITDA to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity. Adjusted EBITDA is used to monitor budget versus actual results and forecast versus actual results and is utilized when establishing management’s compensation in collaboration with the Board of Directors. Adjusted EBITDA should only be considered as supplemental to, and alongside with, other GAAP based financial performance measures, including various cash flow metrics, net income (loss), net margin, and our other GAAP results.
The table below provides a summary of significant expense categories regularly provided to the CODM reconciled to Adjusted EBITDA, as well as a reconciliation of net loss to Adjusted EBITDA, for the three months ended June 30, 2026 and 2025. The CODM does not review segment assets at a different asset level or category than those disclosed within the consolidated balance sheets.
Three Months Ended
($ in thousands)June 30,
2026		June 30,
2025
Net Sales$41,015 $51,180 
Significant expense categories:
Cost of sales29,68236,777
Advertising4,2206,046
  Other segment expenses (1)
13,25842,509
Net loss$(6,145)$(34,152)
Add:
Share-based compensation expense198591
Income taxes139
Depreciation and amortization2,1482,283
Interest (income) expense, net (2)
338198
Employee severance—95
Professional fees (3)
—1,021
Impairment of goodwill and intangible assets
—27,258
Adjusted EBITDA$(3,448)$(2,697)
(1) Principally comprised of other operating and non-operating income and expenses including salaries and wages, operating expenses such as utilities, insurance, professional fees, etc., and for the three months ended June 30, 2025, impairment of goodwill and intangible assets.
(2) For the three months ended June 30, 2026 and 2025: $0.4 million and $0.5 million of interest expense related to the sales tax liability, and $0.1 million and $0.3 million of interest income, respectively.
(3) Consists of professional fees related to the completed Audit Committee investigation as previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025.