| Schedule of revision on the consolidated statement of operations |
(in thousands) | | As Previously Reported | | | Adjustment | | | As Revised | | Net sales | | $ | 24,691 | | | $ | 1,164 | | | $ | 25,855 | | Cost of goods sold | | | 18,221 | | | | — | | | | 18,221 | | Gross profit | | | 6,470 | | | | 1,164 | | | | 7,634 | | Other selling and marketing | | | 1,644 | | | | 1,164 | | | | 2,808 | | Total operating expenses | | | 6,539 | | | | 1,164 | | | | 7,703 | | Operating loss | | | (69 | ) | | | — | | | | (69 | ) | Net loss | | $ | (448 | ) | | $ | — | | | $ | (448 | ) |
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| Schedule of accounts receivable |
| | June 30, 2026 | | | June 30, 2025 | | | | (in thousands) | | Accounts receivable | | $ | 1,872 | | | $ | 1,634 | | Allowance for credit losses | | | (18 | ) | | | (34 | ) | Allowance for discounts and returns | | | — | | | | — | | Total accounts receivable, net | | $ | 1,854 | | | $ | 1,600 | |
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| Schedule of segment information |
| | Twelve Months Ended | | | Twelve Months Ended | | | | June 30, 2026 | | | June 30, 2025 | | (in thousands) | | Direct to Consumer | | | Wholesale | | | Total | | | Direct to Consumer | | | Wholesale | | | Total | | Revenues | | $ | 8,304 | | | $ | 19,060 | | | $ | 27,364 | | | $ | 8,155 | | | $ | 17,700 | | | $ | 25,855 | | Cost of Goods Sold | | | 4,720 | | | | 14,030 | | | | 18,750 | | | | 5,739 | | | | 12,482 | | | | 18,221 | | Other direct operating expenses (a) | | | 1,251 | | | | 2,706 | | | | 3,957 | | | | 1,203 | | | | 2,569 | | | | 3,772 | | Overhead expenses(b) | | | | | | | | | | | 3,432 | | | | | | | | | | | | 3,503 | | Operating income before depreciation | | | 2,333 | | | | 2,324 | | | | 1,225 | | | | 1,213 | | | | 2,649 | | | | 359 | | Interest income | | | | | | | | | | | (7 | ) | | | | | | | | | | | (5 | ) | Interest expense | | | | | | | | | | | 451 | | | | | | | | | | | | 377 | | Depreciation and amortization | | | | | | | | | | | 352 | | | | | | | | | | | | 428 | | Other expense, net | | | | | | | | | | | - | | | | | | | | | | | | 7 | | Income/(loss) from operations before income taxes | | | 2,333 | | | | 2,324 | | | | 429 | | | | 1,213 | | | | 2,649 | | | | (448 | ) | Reconciliation of operating income to adjusted operating income: | | | | | | | | | | | | | | | | | | | | | | | | | Operating income | | | 2,333 | | | | 2,324 | | | | 1,225 | | | | 1,213 | | | | 2,649 | | | | 359 | | Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | Share-based compensation expense | | | | | | | | | | | 28 | | | | | | | | | | | | 37 | | Adjusted operating income | | $ | 2,333 | | | $ | 2,324 | | | $ | 1,253 | | | $ | 1,213 | | | $ | 2,649 | | | $ | 396 | |
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| Potential dilutive securities |
| | 2026 | | | 2025 | | Convertible Preferred Stock | | | 4,300,000 | | | | 4,300,000 | | Stock options – 2015 Plan | | | 1,100,000 | | | | 1,200,000 | | Total | | | 5,400,000 | | | | 5,500,000 | |
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