Corporate general and administrative

$ 40,421,147

$ 36,006,464

$ 34,372,386

$ 34,254,575

$ 68,626,961

$ 104,633,425

$ 145,054,572

$ 191,439,801

$ 240,269,166

Cost of Revenues

31,033,381

25,107,909

26,095,941

20,241,856

46,337,797

71,445,706

102,479,087

136,078,488

151,552,941

Gross Profit

9,387,766

10,898,555

8,276,445

14,012,719

22,289,164

33,187,719

42,575,485

55,361,313

88,716,225

Operating Expenses

Selling and marketing

547,981

236,565

289,952

295,581

585,533

822,098

1,370,079

4,729,540

7,310,216

7,976,832

5,803,255

7,855,624

7,947,563

15,803,187

21,606,442

29,583,274

24,980,079

24,120,483

Employee salaries and related expenses

3,470,974

4,034,076

5,771,020

4,423,932

10,194,952

14,229,028

17,700,002

19,820,498

15,034,408

Depreciation and amortization expense

3,425,790

3,401,156

3,371,802

3,344,043

6,715,845

10,117,001

13,542,791

13,278,762

13,725,065

Total operating expenses

15,421,577

13,475,052

17,288,398

16,011,119

33,299,517

46,774,569

62,196,146

62,808,879

60,190,172

Income/(Loss) from Operations

(6,033,811)

(2,576,497)

(9,011,953)

(1,998,400)

(11,010,353)

(13,586,850)

(19,620,661)

(7,447,566)

28,526,053

Other Expenses

Other (expense) income

(708,779)

4,576

(321,341)

692,951

371,610

376,186

(332,593)

25,181

21,840

Interest expense

163,088

(193,046)

(212,314)

(204,201)

(416,515)

(609,561)

(446,473)

(632,062)

(637,797)

Total other expense

(545,691)

(188,470)

(533,655)

488,750

(44,905)

(233,375)

(779,066)

(606,881)

(615,957)

Income/(Loss) before Income Taxes

(6,579,502)

(2,764,967)

(9,545,608)

(1,509,650)

(11,055,258)

(13,820,225)

(20,399,727)

(8,054,447)

27,910,096

Provision for income taxes

(1,361,700)

(359,189)

(1,879,641)

(205,588)

(2,085,229)

(2,444,418)

(3,806,118)

712,239

2,042,918

Net Income/(Loss)

(5,217,802)

(2,405,778)

(7,665,967)

(1,304,062)

(8,970,029)

(11,375,807)

(16,593,609)

(8,766,686)

25,867,178

Preferred Stock Dividend

(782,639)

(774,132)

(1,556,771)

(2,339,410)

(3,122,049)

(3,105,034)

(2,668,649)

Net Income/(Loss) Attributable to Common Stock Shareholders

$ (6,000,441)

$ (3,188,417)

$ (8,448,606)

$ (2,078,194)

$ (10,526,800)

$ (13,715,217)

$ (19,715,658)

$ (11,871,720)

$ 23,198,529

Net Income/(Loss) per share

Basic

$ (0.05)

$ (0.03)

$ (0.07)

$ (0.02)

$ (0.09)

$ (0.12)

$ (0.17)

$ (0.1)

$ 0.21

Diluted

$ (0.05)

$ (0.03)

$ (0.07)

$ (0.02)

$ (0.09)

$ (0.12)

$ (0.17)

$ (0.1)

$ 0.2

Weighted average number of shares outstanding

Basic

118,249,486

117,177,885

112,328,680

Diluted

118,249,486

117,177,885

114,825,835

Ammunition Sales [Member]

Marketplace Fee Revenue [Member]

$ 22,445,216

$ 17,322,967

$ 15,516,589

$ 14,106,029

$ 29,622,618

$ 46,945,585

$ 69,390,801

^[1],[2]

$ 114,116,044

^[1],[2]

$ 161,459,025

^[1],[2]

Ammunition Casings Sales [Member]

13,570,124

13,985,034

12,474,716

13,912,202

26,386,918

40,371,952

53,942,076

63,149,673

64,608,516

$ 4,405,807

$ 4,698,463

$ 6,381,081

$ 6,236,344

$ 12,617,425

$ 17,315,888

$ 21,721,695

$ 14,174,084

$ 14,201,625

[1]	(1) Included in revenue for the years ended March 31, 2024, 2023, and 2022 are excise taxes of $6,155,524, $9,789,897, and $14,646,983, respectively.
[2]	Included in revenue for the years ended March 31, 2024, 2023, and 2022 are excises taxes of $6,155,524, $9,789,897, and $14,646,983, respectively.

Consolidated Statements of Operations (Parenthetical) - USD ($)	12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Excises taxes	$ 6,155,524	$ 9,789,897	$ 14,646,983

Consolidated Statements of Shareholders' Equity - USD ($)	Total	Previously Reported [Member]	Series A Preferred Stock [Member]	Preferred Stock [Member]	Preferred Stock [Member] Series A Preferred Stock [Member]	Common Stock [Member]	Common Stock [Member] Previously Reported [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] Previously Reported [Member]	Additional Paid-in Capital [Member] Series A Preferred Stock [Member]	Retained Earnings [Member]	Retained Earnings [Member] Previously Reported [Member]	Treasury Stock, Common [Member]
Balance at Mar. 31, 2021	$ 160,729,013	$ 160,347,529				$ 93,100	$ 93,100	$ 222,178,969	$ 202,073,968		$ (61,543,056)	$ (41,819,539)
Balance, shares at Mar. 31, 2021						93,099,967	93,099,967
Prior period restatement	381,484							20,105,001			(19,723,517)
Acquisition stock issuances	143,377,654					$ 20,000		143,357,654	142,691,282
Acquisition stock issuances, shares						20,000,000
Common stock issued for exercised warrants	943,907					$ 431		943,476
Common stock issued for exercised warrants, shares						431,080
Common stock issued for cashless warrant exercise						$ 375		(375)
Common stock issued for cashless warrant exercise, shares						374,584
Common stock issued for services and equipment (restated)	5,487,369					$ 773		5,486,596	1,631,701
Common stock issued for services and equipment (restated), shares						772,450
Employee stock awards (restated)	7,430,458					$ 1,808		7,428,650
Employee stock awards (restated), shares						1,807,666
Value of stock issued			$ 32,908,796		$ 1,400			32,907,396	31,008,796	$ 32,907,396
Issuance of Series A Preferred Stock, net of issuance costs, shares					1,400,000
Warrants issued for services	1,782,175							1,782,175	$ 1,090,076
Preferred stock dividends declared	(2,524,087)										(2,524,087)
Dividends accumulated on preferred stock	(144,562)										(144,562)
Net Income (Loss)	25,867,178	33,247,436									25,867,178
Balance at Mar. 31, 2022	375,857,901	374,303,566		$ 1,400		$ 116,487		414,084,541			(38,344,527)
Balance, shares at Mar. 31, 2022				1,400,000		116,485,747
Common stock issued for exercised warrants	101,506					$ 200		101,306
Common stock issued for exercised warrants, shares						200,003
Common stock issued for cashless warrant exercise						$ 99		(99)
Common stock issued for cashless warrant exercise, shares						99,762
Employee stock awards (restated)	10,128,236					$ 1,776		10,126,460
Employee stock awards (restated), shares						1,777,294
Warrants issued for services	427,639							427,639
Preferred stock dividends declared	(638,071)										(638,071)
Dividends accumulated on preferred stock	(144,618)										(144,618)
Net Income (Loss)	(8,766,686)	(4,596,038)									(8,766,686)
Preferred stock dividend	(2,322,346)										(2,322,346)
Treasury shares purchased	(522,426)					$ (268)							(522,158)
Treasury shares purchased, shares						(268,328)
Balance at Mar. 31, 2023	374,121,135	372,596,085		$ 1,400		$ 118,294		424,739,847			(50,216,248)		(522,158)
Balance, shares at Mar. 31, 2023				1,400,000		118,294,478
Dividends accumulated on preferred stock	(136,094)										(136,094)
Net Income (Loss)	(1,304,062)	(1,093,033)									(1,304,062)
Preferred stock dividend	(638,038)										(638,038)
Treasury shares purchased						$ (739)
Balance at Jun. 30, 2023	371,767,397	370,145,723		$ 1,400		$ 117,946		425,920,655			(52,294,441)		(1,978,163)
Balance, shares at Jun. 30, 2023				1,400,000		117,945,758
Balance at Mar. 31, 2023	374,121,135	372,596,085		$ 1,400		$ 118,294		424,739,847			(50,216,248)		(522,158)
Balance, shares at Mar. 31, 2023				1,400,000		118,294,478
Net Income (Loss)	(8,970,029)	(8,588,330)
Balance at Sep. 30, 2023	364,619,650	362,987,661		$ 1,400		$ 118,461		427,619,626			(60,743,047)		(2,376,790)
Balance, shares at Sep. 30, 2023				1,400,000		118,460,743
Balance at Mar. 31, 2023	374,121,135	372,596,085		$ 1,400		$ 118,294		424,739,847			(50,216,248)		(522,158)
Balance, shares at Mar. 31, 2023				1,400,000		118,294,478
Net Income (Loss)	(11,375,807)	(10,232,319)
Balance at Dec. 31, 2023	362,896,539	361,382,416		$ 1,400		$ 118,644		429,381,115			(63,931,464)		(2,673,156)
Balance, shares at Dec. 31, 2023				1,400,000		118,643,593
Balance at Mar. 31, 2023	374,121,135	372,596,085		$ 1,400		$ 118,294		424,739,847			(50,216,248)		(522,158)
Balance, shares at Mar. 31, 2023				1,400,000		118,294,478
Common stock issued for exercised warrants	76,200					$ 32		76,168
Common stock issued for exercised warrants, shares						31,750
Employee stock awards (restated)	5,281,288					$ 1,937		5,279,351
Employee stock awards (restated), shares						1,936,951
Common stock purchase options	430,458							430,458
Preferred stock dividends declared	(638,071)										(638,071)
Dividends accumulated on preferred stock	(144,618)										(144,618)
Net Income (Loss)	(16,593,609)	(15,565,200)									(16,593,609)
Preferred stock dividend	(2,330,852)										(2,330,852)
Treasury shares purchased	(2,152,080)					$ (1,082)							(2,150,998)
Treasury shares purchased, shares						(1,082,112)
Balance at Mar. 31, 2024	358,049,851	356,557,029		$ 1,400		$ 119,181		430,525,824			(69,923,398)		(2,673,156)
Balance, shares at Mar. 31, 2024				1,400,000		119,181,067
Balance at Jun. 30, 2023	371,767,397	370,145,723		$ 1,400		$ 117,946		425,920,655			(52,294,441)		(1,978,163)
Balance, shares at Jun. 30, 2023				1,400,000		117,945,758
Dividends accumulated on preferred stock	(136,093)										(136,093)
Net Income (Loss)	(7,665,967)	(7,495,297)									(7,665,967)
Preferred stock dividend	(646,545)										(646,545)
Treasury shares purchased						$ (198)
Balance at Sep. 30, 2023	364,619,650	362,987,661		$ 1,400		$ 118,461		427,619,626			(60,743,047)		(2,376,790)
Balance, shares at Sep. 30, 2023				1,400,000		118,460,743
Common stock purchase options	380,045							380,045
Dividends accumulated on preferred stock	(144,618)										(144,618)
Net Income (Loss)	(2,405,778)	(1,643,989)									(2,405,778)
Preferred stock dividend	(638,021)										(638,021)
Treasury shares purchased						$ (145)
Balance at Dec. 31, 2023	362,896,539	361,382,416		$ 1,400		$ 118,644		429,381,115			(63,931,464)		(2,673,156)
Balance, shares at Dec. 31, 2023				1,400,000		118,643,593
Net Income (Loss)	(5,217,802)	(5,332,881)
Balance at Mar. 31, 2024	$ 358,049,851	$ 356,557,029		$ 1,400		$ 119,181		$ 430,525,824			$ (69,923,398)		$ (2,673,156)
Balance, shares at Mar. 31, 2024				1,400,000		119,181,067

Consolidated Statements of Cash Flow - USD ($)	12 Months Ended
Consolidated Statements of Cash Flow - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net Income (Loss)	$ (16,593,609)	$ (8,766,686)	$ 25,867,178
Adjustments to reconcile net loss to cash provided by operations:
Depreciation and amortization	18,861,181	17,567,233	17,409,294
Debt discount amortization	83,253	83,253	38,330
Employee stock awards	5,281,288	10,128,236	7,430,457
Common stock purchase options	430,457
Stock for services			5,359,868
Contingent consideration payable fair value	(80,540)	(63,764)	(385,750)
Allowance for doubtful accounts	419,527	191,299	2,748,250
(Gain)/loss on disposal of assets	259,540		(12,044)
Reduction in right of use asset	476,252	629,140	720,491
Warrants issued for services		213,819	1,410,144
Deferred income taxes	(3,811,735)	712,239	293,430
Accounts receivable	705,532	14,417,405	(20,707,052)
Due to related parties		15,000	657
Inventories	8,781,485	4,671,333	(43,149,234)
Prepaid expenses	4,028,696	2,763,855	1,996,287
Deposits	6,679,669	4,306,375	(8,826,504)
Accounts payable	5,077,098	(8,694,813)	9,930,191
Accrued liabilities	2,532,695	(1,970,078)	2,374,686
Operating lease liability	(499,448)	(647,480)	(732,468)
Net cash provided by operating activities	32,631,341	35,556,366	1,766,211
Cash flows from investing activities:
Gemini acquisition			(50,517,840)
Purchase of property, plant, and equipment	(8,024,765)	(12,541,325)	(19,218,982)
Proceeds from disposal of assets	3,750		59,800
Net cash used in investing activities	(8,021,015)	(12,541,325)	(69,677,022)
Cash flows from financing activities:
Payments on inventory facility, net		(825,675)	(265,422)
Proceeds from factoring liability	37,252,869	71,348,761	121,488,045
Payments on factoring liability	(37,252,869)	(71,834,432)	(122,844,562)
Payments on assumed debt from Gemini			(50,000,000)
Payments on note payable - related party	(180,850)	(684,921)	(625,147)
Payments on insurance premium note payment	(3,174,834)	(2,134,143)	(2,208,369)
Proceeds from construction note payable		1,000,000
Payments on construction note payable	(257,425)	(150,743)
Payments on note payable			(4,000,000)
Sale of preferred stock			35,000,000
Common stock issued for exercised warrants	76,200	101,506	943,907
Preferred stock issuance costs			(2,113,550)
Preferred stock dividends paid	(2,968,923)	(2,960,416)	(2,524,087)
Common stock repurchase plan	(2,152,080)	(522,426)
Net cash used in financing activities	(8,657,912)	(6,662,489)	(27,149,185)
Net increase/(decrease) in cash	15,952,414	16,352,552	(95,059,996)
Cash, beginning of period	39,134,027	23,281,475	118,341,471
Restricted cash, beginning of period	500,000
Cash and restricted cash, end of period	55,586,441	39,634,027	23,281,475
Restricted cash, end of period	0	500,000
Cash, end of period	55,586,441	39,134,027	23,281,475
Cash paid during the period for:
Interest	667,063	665,043	626,571
Income taxes	0
Non-cash investing and financing activities:
Operating lease liability	1,214,711	901,076	809,451
Note issued for insurance premium payment	1,056,199	4,252,778	2,166,852
Dividends accumulated on preferred stock	144,618	144,618	144,562
Construction note issued	0		387,968
Acquisition stock issuances			143,400,000
Warrant issued for services			801,176
Common stock issued for equipment	$ 0	$ 0	$ 32,938

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended	9 Months Ended	12 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (5,217,802)	$ (2,405,778)	$ (7,665,967)	$ (1,304,062)	$ (8,970,029)	$ (11,375,807)	$ (16,593,609)	$ (8,766,686)	$ 25,867,178

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
-SubTopic 60
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 323
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 2
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
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-Section 50
-Paragraph 6
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-URI https://asc.fasb.org/1943274/2147482765/220-10-50-6

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480175/815-40-65-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/exampleRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Organization, Consolidation and Presentation of Financial Statements [Abstract]

Insider Trading Arrangements	12 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Mar. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Cybersecurity Risk Management, Strategy, and Governance	12 Months Ended
Cybersecurity Risk Management, Strategy, and Governance	Mar. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	Risk Management and Strategy As a publicly traded ammo manufacturer and e-commerce outdoor company, we are acutely aware of the importance of robust cybersecurity measures in safeguarding our information assets, operational integrity, and reputation. Our approach to cybersecurity risk management is integrated into our broader risk management framework and overseen by our Board of Directors. We have established comprehensive processes to assess, identify, and manage material risks from cybersecurity threats. These processes include continuous evaluation of potential threats, regular security assessments of third-party service providers, and stringent monitoring procedures to mitigate risks related to data breaches and other security incidents. We periodically engage third-party consultants, legal advisors, and audit firms to evaluate and assess our risk management systems and to assist in the remediation of potential cybersecurity incidents, as necessary. Our Information Security Program (the “Program”) is designed to protect personal and proprietary information in compliance with federal and state requirements. The Program aims to: • ensure the security and confidentiality of employee and customer personal information, as well as Company proprietary information; • protect against anticipated threats or hazards to the security or integrity of such information; and • prevent unauthorized access to, use of, or transfer of such information, thereby protecting the Company, its employees, and customers from potential harm or inconvenience. We use a variety of tools and services, including network monitoring, vulnerability assessments, and tabletop exercises, to enhance our cybersecurity posture. Our incident response plan is comprehensive, detailing procedures for preparing for, detecting, responding to, and recovering from cybersecurity incidents. This plan includes processes for triaging, assessing the severity of, escalating, containing, investigating, and remediating cybersecurity incidents, while ensuring compliance with relevant legal obligations. In addition to internal measures, we manage cybersecurity risks associated with third-party suppliers, particularly those with access to our systems or confidential data. We perform due diligence on critical third-party suppliers and monitor identified cybersecurity threats. We require these suppliers to contractually agree to manage their cybersecurity risks according to our standards or to submit to cybersecurity audits conducted by our agents. We regularly engage third-party experts to conduct information security testing, including penetration testing, on our systems and infrastructure. Our information security program undergoes periodic external assessments aligned with the National Institute of Standards and Technology Cybersecurity Framework and the Payment Card Industry Data Security Standard. This alignment helps us identify, assess, and manage cybersecurity risks relevant to our business. Governance Our Board of Directors oversees our cybersecurity risk management. Directors receive reports as requested from management, including senior information technology (“IT”) leadership and third parties, on cybersecurity matters. Additionally, the Board of Directors is kept informed about cybersecurity risks as part of our overall enterprise risk management program and through regular business updates. Senior IT leaders and our compliance officer are responsible for developing and implementing appropriate cybersecurity programs and ensuring our compliance with applicable laws and regulations. These leaders, equipped with relevant degrees, certifications, and extensive work experience, are informed by their cybersecurity teams about ongoing efforts to prevent, detect, mitigate, and remediate cybersecurity incidents. Information regarding cybersecurity risks is communicated through various channels, including direct discussions between key leaders and Company management, and reports to the Board of Directors and its committees. The Board of Directors regularly receives updates from our compliance officer and senior IT leadership on the status of our cybersecurity measures and any significant developments. Our commitment to cybersecurity is a fundamental aspect of our operational strategy, ensuring the protection of our information assets, the continuity of our operations, and the trust of our stakeholders. We have experienced cybersecurity incidents in the ordinary course of business and will continue to experience risks from cybersecurity threats that could have a material adverse effect on our business strategy, results of operations, or financial condition. Although prior cybersecurity incidents have not had a material adverse effect on our business strategy, results of operations, or financial condition to date, any actual or perceived breach of our security could damage our reputation, adversely affect our operations, or subject us to third-party lawsuits, regulatory investigations and fines or other actions or liabilities, any of which could materially adversely affect our business strategy, results of operations, or financial condition. For more information on our cybersecurity related risks, see “Breaches of our information systems could adversely affect our reputation, disrupt our operations, and result in increased costs and loss of sales.” and “A failure of our information technology systems, or an interruption in their operation due to internal or external factors including cyber-attacks, could have a material adverse effect on our business, financial condition or results of operations.” in Item 1A “Risk Factors” of this Amendment.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	Our approach to cybersecurity risk management is integrated into our broader risk management framework and overseen by our Board of Directors.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block]	We have experienced cybersecurity incidents in the ordinary course of business and will continue to experience risks from cybersecurity threats that could have a material adverse effect on our business strategy, results of operations, or financial condition.
Cybersecurity Risk Board of Directors Oversight [Text Block]	Our Board of Directors oversees our cybersecurity risk management. Directors receive reports as requested from management, including senior information technology (“IT”) leadership and third parties, on cybersecurity matters. Additionally, the Board of Directors is kept informed about cybersecurity risks as part of our overall enterprise risk management program and through regular business updates. Senior IT leaders and our compliance officer are responsible for developing and implementing appropriate cybersecurity programs and ensuring our compliance with applicable laws and regulations. These leaders, equipped with relevant degrees, certifications, and extensive work experience, are informed by their cybersecurity teams about ongoing efforts to prevent, detect, mitigate, and remediate cybersecurity incidents. Information regarding cybersecurity risks is communicated through various channels, including direct discussions between key leaders and Company management, and reports to the Board of Directors and its committees. The Board of Directors regularly receives updates from our compliance officer and senior IT leadership on the status of our cybersecurity measures and any significant developments. Our commitment to cybersecurity is a fundamental aspect of our operational strategy, ensuring the protection of our information assets, the continuity of our operations, and the trust of our stakeholders.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	Directors receive reports as requested from management, including senior information technology (“IT”) leadership and third parties, on cybersecurity matters. Additionally, the Board of Directors is kept informed about cybersecurity risks as part of our overall enterprise risk management program and through regular business updates.
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	Senior IT leaders and our compliance officer are responsible for developing and implementing appropriate cybersecurity programs and ensuring our compliance with applicable laws and regulations. These leaders, equipped with relevant degrees, certifications, and extensive work experience, are informed by their cybersecurity teams about ongoing efforts to prevent, detect, mitigate, and remediate cybersecurity incidents.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	These leaders, equipped with relevant degrees, certifications, and extensive work experience, are informed by their cybersecurity teams about ongoing efforts to prevent, detect, mitigate, and remediate cybersecurity incidents.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	Information regarding cybersecurity risks is communicated through various channels, including direct discussions between key leaders and Company management, and reports to the Board of Directors and its committees.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

ORGANIZATION AND BUSINESS ACTIVITY

12 Months Ended

Mar. 31, 2024

ORGANIZATION AND BUSINESS ACTIVITY

NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY

We were formed under the name Retrospettiva, Inc. in November 1990 to manufacture and import textile products, including both finished garments and fabrics. We were inactive until the following series of events in December 2016 and March 2017.

On December 15, 2016, the Company’s majority shareholders sold 475,681 (11,891,976 pre-split) of their outstanding shares to Mr. Fred W. Wagenhals (“Mr. Wagenhals”) resulting in a change in control of the Company. Mr. Wagenhals was appointed as sole officer and the sole member of the Company’s Board of Directors.

The Company also approved (i) doing business in the name AMMO, Inc., (ii) a change to the Company’s OTC trading symbol to POWW, (iii) an agreement and plan of merger to re-domicile and change the Company’s state of incorporation from California to Delaware, and (iv) a 1-for-25 reverse stock split of the issued and outstanding shares of the common stock of the Company ("Common Stock"). As a result of the reverse split, the previous issued and outstanding shares of Common Stock became 580,052 shares; no shareholder was reversed below 100 shares, and all fractional shares resulting from the reverse split were rounded up to the next whole share. All references to the outstanding stock have been retrospectively adjusted to reflect this split. These transactions were effective as of December 30, 2016.

On March 17, 2017, the Company entered into a definitive agreement with AMMO, Inc. a Delaware Corporation (PRIVCO) under which the Company acquired all of the outstanding shares of Common Stock of (PRIVCO). Under the terms of the Agreement, the Company issued 17,285,800 newly issued shares of Common Stock of the Company. In connection with this transaction the Company retired 475,681 shares of Common Stock and issued 500,000 shares of Common Stock to satisfy an issuance commitment. The acquisition was considered to be a capital transaction. The transaction was the equivalent to the issuance by PRIVCO of 604,371 shares to the Company’s shareholders accompanied by a recapitalization. The weighted average number of outstanding shares has been adjusted for this transaction. (PRIVCO) subsequently changes its name to AMMO Munitions, Inc.

The Company changed its name from AMMO, Inc. to Outdoor Holding Company on April 21, 2025.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of AMMO, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in preparing the condensed consolidated financial statements include the valuation of allowances for credit losses, valuation of deferred tax assets, inventories, useful lives of assets, goodwill, intangible assets, stock-based compensation, and warrant-based compensation.

Goodwill

We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting unit. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimate the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. Due to the declines in the value of our stock price and market capitalization during the years ended March 31, 2024, 2023 and 2022, we assessed qualitative factors to determine if it is more likely than not that the fair value of the Marketplace segment is less than its carrying amount. Through our analysis we determined our stock price and market capitalization decline was not indicative of a decrease in the fair value of our Marketplace segment and a fair value calculation using the discounted cash flows was more appropriate due to the operational performance of the reporting segment. Accordingly, the impairment of Goodwill was not warranted for the year ended March 31, 2024. As of March 31, 2024, 2023 and 2022, the Company had a goodwill carrying value of $90,870,094, all of which was assigned to the Marketplace segment. However,

due to declines in the value of the Company’s Common Stock and market capitalization, it is possible that the book values of our Marketplace segment could exceed its fair value, which may result in the recognition of a material, noncash impairment of goodwill for the year ending March 31, 2025.

Accounts Receivable and Allowance for Credit Losses

Our accounts receivable represents amounts due from customers for products sold and include an allowance for estimated credit losses which is estimated based on the collectability and age of the accounts receivable balances and categorization of customers with similar financial condition. At March 31, 2024, March 31, 2023, and March 31, 2022 we reserved $3,666,078, $3,246,551, and $3,055,252 respectively, of allowance for credit losses.

Cash and Cash Equivalents

For purposes of the consolidated statements of cash flows, we consider highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Restricted Cash

We consider cash to be restricted when withdrawal or general use is legally restricted. In the year ended March 31, 2023, our restricted cash balance was comprised of cash on deposit with banks to secure the Construction Loan Agreement as discussed in Note 13. During the year ended March 31, 2024, the remaining balance of our restricted cash was released. In the case that there is a balance, we report restricted cash in the consolidated balance sheets as current or non-current classification based on the expected duration of the restriction.

License Agreements

During the years ended March 31, 2024, 2023, and 2022 we were a party to a license agreement with Jesse James, a well-known motorcycle designer, and Jesse James Firearms, LLC, a Texas limited liability company. The license agreement grants us the exclusive worldwide rights through April 12, 2026 to Mr. James’ image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of Jesse James Branded Products. We agreed to pay Mr. James royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses.

We were a party to a license agreement with Jeff Rann, a well-known wild game hunter and spokesman for the firearm and ammunition industries. The license agreement, which expired February 2022, granted us the exclusive worldwide rights to Mr. Rann’s image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of all Jeff Rann Branded Products. We agreed to pay Mr. Rann royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses.

Patents

On September 28, 2017, AMMO Technologies Inc. (“ATI”), an Arizona corporation, which is 100% owned by us, merged with Hallam, Inc, a Texas corporation, with ATI being the survivor. The primary asset of Hallam, Inc. was an exclusive license to produce projectiles and ammunition using the Hybrid Luminescence Ammunition Technology under patent U.S. 8,402,896 B1 with a publication date of March 26, 2013 owned by University of Louisiana at Lafayette. The license was formally amended and assigned to ATI pursuant to an Assignment and First Amendment to Exclusive License Assumption Agreement dated to be effective as of August 22, 2017, the merger closing date. This asset will be amortized from September 2017, the first full month of the acquired rights, through October 29, 2028.

Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028. For the years ended March 31, 2024, 2023, and 2022, the Company recognized royalty expenses of $22,754, $99,268, and $44,764 respectively under this agreement.

In August 2018, we applied for additional patent coverage for the manufacturing methods or application of the Hybrid Luminescence Ammunition Technology on a variety of projectile and ammunition types. The costs of filing this patent were expensed.

On October 5, 2018, we completed the acquisition of SW Kenetics, Inc. ATI succeeded all of the assets of SW Kenetics, Inc. and assumed all of the liabilities.

The primary asset of SW Kenetics, Inc. was a pending patent for modular projectiles. All rights to patent pending application were assigned and transferred to ATI pursuant to Intellectual Property Rights Agreement on September 27, 2018.

We intend to continue building our patent portfolio to protect our proprietary technologies and processes, and will file new applications where appropriate to preserve our rights to manufacture and sell our branded lines of ammunition.

Other Intangible Assets

On March 15, 2019, Enlight Group II, LLC d/b/a Jagemann Munition Components, a wholly owned subsidiary of AMMO, Inc., completed its acquisition of assets of Jagemann Stamping Company’s ammunition casing manufacturing and sales operations pursuant to the terms of the Amended and Restated Asset Purchase Agreement (See Note 20). The intangible assets acquired include a tradename, customer relationships, and intellectual property.

On April 30, 2021, we entered into an agreement and plan of merger (the “Merger Agreement”), by and among the Company, SpeedLight Group I, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company and Gemini Direct Investments, LLC, a Nevada limited liability company ("Gemini"), whereby SpeedLight Group I, LLC merged with and into Gemini, with SpeedLight Group I, LLC surviving the merger as a wholly owned subsidiary of the Company (the "Merger"). At the time of the Merger, Gemini had nine (9) subsidiaries, all of which are related to Gemini’s ownership of GunBroker, an online auction marketplace dedicated to firearms, hunting, shooting, and related products. The intangible assets acquired include a tradename, customer relationships, intellectual property, software, and domain names.

Impairment of Long-Lived Assets

We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. No impairment expense was recognized for the years ended March 31, 2024, 2023, and 2022.

Revenue Recognition

We generate revenue from the production and sale of ammunition, ammunition casings, and marketplace fee revenue, which includes auction revenue, payment processing revenue, and shipping income. We recognize revenue according to Accounting Standard Codification – Revenue from Contract with Customers (“ASC 606”). When the customer obtains control over the promised goods or services, we record revenue in the amount of consideration that we can expect to receive in exchange for those goods and services. We apply the following five-step model to determine revenue recognition:

•

Identification of a contract with a customer

•

Identification of the performance obligations in the contract

•

Determination of the transaction price

•

Allocation of the transaction price to the separate performance obligation

•

Recognition of revenue when performance obligations are satisfied

We only apply the five-step model when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception and once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations, and assess whether each promised good or service is distinct.

For Ammunition Sales and Casing Sales, our contracts contain a single performance obligation and the entire transaction price is allocated to the single performance obligation. We recognize as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Accordingly, we recognize revenues (net) when the customer obtains control of our product, which typically occurs upon shipment of the product or the performance of the service. In the year ended March 31, 2021, we began accepting contract liabilities or deferred revenue. We included Deferred Revenue in our Accrued Liabilities. We will recognize revenue when the performance obligation is met.

For Marketplace revenue, the performance obligation is satisfied, and revenue is recognized, as follows:

Auction revenue consists of optional listing fees with variable pricing components based on customer options selected from the GunBroker website and final value fees based on a percentage of the final selling price of the listed item. The performance obligation is to process the transactions as initiated by the customer. Revenue is recognized at a point in time when the transaction is processed.

Compliance fee revenue consists of fees charged to customers based on a percentage of the final price of an item at the time of purchase. The performance obligation is to process the transactions as initiated by the customer. Revenue is recognized at a point in time when the transaction is processed.

Payment processing revenue consists of fees charged to customers on a transactional basis. The performance obligation is to process the transactions as initiated by the customer. The price is set by the GunBroker user agreement on the website based on stand-alone selling prices. Revenue is recognized at a point in time when the transaction is processed.

Shipping income consists of fees charged to customers for shipping of sold items listed on the GunBroker website. The performance obligation is to ship the item sold as initiated by the customer. The price is set based on the third-party service provider selected to be used by the customer as well as the speed and location of shipment. Revenue is recognized at a point in time when the shipping label is printed.

Banner Advertising Campaign Revenue consists of fees charged to customers for advertisement placement and impressions generated through the GunBroker website. The performance obligation is to generate the number of impressions specified by the customer on banner advertisements on the GunBroker website using the placement selected by the customer. The price is set by the GunBroker user agreement on the website based on standalone selling prices, or by advertising insertion order as negotiated by a media broker. If the number of impressions promised is not generated, the customer receives a refund and the refund is applied to the transaction price. Banner advertising campaigns generally run for one month, and revenue is recognized at a point in time at the end of the selected month.

Product Sales consists of fees charged for the liquidation of excess inventory for partner distributors. The performance obligation is to sell and ship the inventory item as initiated by the customer. The price depends on whether the inventory is a fixed price item or an auction item. For a fixed price item, the Company performs research to determine the current market rate for such an item, and the item is listed at that price. For an auction item, the price is set by what the buyer is willing to pay. The Company acts as a principal in these transactions due to the extent of control they have over the product prior to the sale. Due to the principal determination, gross revenue is recognized at a point in time when the item has been shipped.

Identity Verification consists of fees charged to customers for identity verification in order to gain access to the GunBroker website. The performance obligation is to process the identity verification as initiated by the customer. The price is set by the GunBroker user agreement on the website based on a stand-alone selling price. Revenue is recognized at a point in time when the identity verification is completed.

For the years ended March 31, 2024, 2023, and 2022, the Company’s customers that comprised more than ten percent (10%) of total revenues and accounts receivable were as follows:


	For the Year Ended					For the Year Ended					For the Year Ended
	March 31, 2024					March 31, 2023					March 31, 2022
PERCENTAGES	Revenues		Accounts Receivable			Revenues			Accounts Receivable		Revenues		Accounts Receivable
Customers:

A		-		11.8	%		12.2	%		-		-		-
B		-		-			-			-		-		11.8	%
		-		11.8	%		12.2	%		-		-		11.8	%

Disaggregated Revenue Information

The following table presents a disaggregation of revenue from customers by category. We attribute net sales to categories by product or services types: ammunition, ammunition casings, and marketplace fees. The Company notes that revenue recognition processes are consistent between product and service type, however, the amount, timing and uncertainty of revenue and cash flows may vary by each product type due to the customers of each product and service type.


	For the Year Ended
	March 31, 2024		March 31, 2023		March 31, 2022
Ammunition Sales(1)	$	69,390,801	$	114,116,044	$	161,459,025
Marketplace Revenue		53,942,076		63,149,673		64,608,516
Casings Sales		21,721,695		14,174,084		14,201,625
Total Revenue	$	145,054,572	$	191,439,801	$	240,269,166

(1)

Included in revenue for the years ended March 31, 2024, 2023, and 2022 are excise taxes of $6,155,524, $9,789,897, and $14,646,983, respectively.

Ammunition products are sold through “Big Box” retailers, manufacturers, local ammunition stores, and shooting range operators. We also sell direct to customers online. In contrast, our ammunition casings products are sold to manufacturers. Marketplace fees are generated through our GunBroker online auction marketplace.

All ammunition product sales are recorded upon shipment and, depending on credit worthiness of customer, the payment terms will vary from thirty (30) to sixty (60) days. No refunds are allowed on any product shipped.

Each product manufactured by the Company has standard specifications and performance objectives. The Company has an extensive product testing program and, if the Company were given notice of a product defect by a customer, the Company would request the return of the product so that the manufacturing defect could be identified.

Contract Liabilities

Our contract liabilities consist of unearned revenue, which represents up front payments received from customers for product to be delivered at a future date. Contract liabilities are classified as current or long-term based on the timing of contract obligation. As of March 31, 2024, we had unearned revenue of $1.8 million, which is included in accrued liabilities on the consolidated balance sheet. Unearned revenue was $0.1 million and $0.2 million as of March 31, 2023 and 2022, respectively. Unearned revenue was $0.4 million as of April 1, 2021.

Advertising Costs

We expense advertising costs as they are incurred in selling and marketing expenses of operating expenses. Marketplace advertising costs are expensed as they are incurred and recorded in cost of revenues. For the years ended March 31, 2024, 2023, and 2022, we incurred advertising expenses of $1,149,596, $1,355,179, and $1,823,060, respectively, of which $384,002, $1,068,700, and $1,406,043 related to our ammunition segment. For the years ended March 31, 2024, 2023 and 2022 we incurred marketplace advertising expenses of $765,594, $286,479, and $417,017, respectively, in cost of revenues.

Fair Value of Financial Instruments

We measure options and warrants at fair value in accordance with Accounting Standards Codification 820 – Fair Value Measurement (“ASC 820”). The objective of ASC 820 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820 specifies a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable.

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions. These two types of inputs have created the following fair value hierarchy:

Level 1 – Quoted prices for identical instruments in active markets;

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value.

The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximated fair values due to the short-term maturities of these instruments.

In connection with our acquisition of Gemini, we used the Level 2 inputs in estimating the fair value of the transaction. Please refer to Note 16.

Inventories

We state inventories at the lower of cost or net realizable value. We determine cost using the average cost method. Our inventory consists of raw materials, work in progress, and finished goods. Cost of inventory includes cost of parts, labor, quality control, and all other costs incurred to bring our inventories to condition ready to be sold. We periodically evaluate and adjust inventories for obsolescence.

Property and Equipment

We state property and equipment at historical cost less accumulated depreciation. We compute depreciation using the straight-line method at rates intended to depreciate the cost of assets over their estimated useful lives, which are generally five to ten years. Upon retirement or sale of property and equipment, we remove the cost of the disposed assets and related accumulated depreciation from the accounts and any resulting gain or loss is credited or charged to other income or expenses. We charge expenditures for normal repairs and maintenance to expense as incurred.

We capitalize additions and expenditures for improving or rebuilding existing assets that extend the useful life. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the shorter of their economic lives or the lease term including any renewals that are reasonably assured.

Leases

We determine if an arrangement is a lease at inception of the contract. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, we recognize lease expense for these leases on a straight-line basis over the lease term. We do not account for lease components (e.g., fixed payments to use the underlying lease asset) separately from the non-lease components (e.g., fixed payments for common-area maintenance costs and other items that transfer a good or service). Some of our leases include variable lease payments, which primarily result from changes in consumer price and other market-based indices, which are generally updated annually, and maintenance and usage charges. These variable payments are excluded from the calculation of our lease assets and lease liabilities.

We utilize the interest rate implicit in the lease to determine the lease liability when the interest rate can be determined. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments.

Research and Development

To date, we have expensed all costs associated with developing our product specifications, manufacturing procedures, and products through our cost of revenues, as this work was done by the same employees who produced the finished product. We anticipate that it may become necessary to reclassify research and development costs into our operating expenses for reporting purposes as we begin to develop new technologies and lines of ammunition.

Excise Tax

As a result of regulations imposed by the Federal Government for sales of ammunition to non-government U.S. entities, we charge and collect an 11% excise tax for all products sold into these channels. During the years ended March 31, 2024, 2023, and 2022, we recognized approximately $6.2 million, $9.8 million, and $14.6 million respectively, in excise taxes. For ease in selling to commercial markets, excise tax is included in our unit price for the products sold. We record this through net sales and expense the offsetting tax expense to cost of revenues on our consolidated statement of operations.

Stock-Based Compensation

We account for stock-based compensation at fair value in accordance with Accounting Standards Codification 718 – Compensation – Stock Compensation (“ASC 718”), which requires the recognition of the cost of employee, director and non-employee services received in exchange for an award of equity over the period the employee, director or non-employee is required to perform the services in exchange for the award. Stock-based compensation is measured based on the grant-date fair value of the award. Stock-based compensation is recognized on a straight-line basis over the vesting periods and forfeitures are recognized in the periods they occur.

Concentrations of Credit Risk

Accounts at banks are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of March 31, 2024, 2023 and 2022, our bank account balances exceeded federally insured limits, however, we have not incurred losses related to these deposits.

Income Taxes

We file federal and state income tax returns in accordance with the applicable rules of each jurisdiction. We account for income taxes under the asset and liability method in accordance with Accounting Standards Codification 740 - Income Taxes (“ASC 740”). The provision for income taxes includes federal, state, and local income taxes currently payable, and deferred taxes. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using enacted tax rates expected

to apply to taxable amounts in years in which those temporary differences are expected to be recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. In accordance with ASC 740, we recognize the effect of income tax positions only if those positions are more likely than not of being sustained. We measure recognized income tax positions at the largest amount that is greater than 50% likely of being realized. We reflect changes in recognition or measurement in the period in which the change in judgment occurs.

Contingencies

Certain conditions may exist as of the date the consolidated financial statements are issued that may result in a loss to us but will only be resolved when one or more future events occur or fail to occur. We assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we evaluate the perceived merits of any legal proceedings or unasserted claims and the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability is reasonably estimated, the estimated liability would be accrued in our condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of range of possible loss if determinable and material, would be disclosed.

On February 10, 2022, AMMO filed a Texas state court complaint against Expansion Industries pursing eight claims in pursuit of recovery of AMMO’s in primer acquisition deposit monies (i.e., Breach of Contract, Common Law Fraud, Violations of Texas Theft Liability Act, Conversion, Negligent Misrepresentation, Unjust Enrichment, Money Had and Received and Constructive Trust). AMMO moved aggressively to further the process, including successfully garnishing a portion of the deposit monies in Expansion bank accounts, filing a Motion for Summary Judgment, continuing to pursue written discovery, and amending the Complaint to add Expansion principal as an individual party. The putative primer manufacturer settled the two related lawsuits in September 2022 by repaying all deposit monies due AMMO, in addition to payment of principally all fees and costs incurred by us in pursuit of the resolution. The principal lawsuit and AMMO’s garnishment action against the defendant were dismissed with prejudice.

Along with countless other suppliers of Remington Outdoors, AMMO was served with an avoidance claim lawsuit by the bankruptcy trustee. AMMO presented substantial “ordinary course” defense evidence to the Trustee and the case was settled for a nominal sum in September 2022, with the lawsuit dismissed with prejudice.

AMMO was involved in three contract arbitration cases with adverse former employees. The first one involved an employee terminated for cause who was seeking contract wages and stock that was earned but clawed back upon his termination. In that case, the Company received a favorable ruling on a partial motion for summary judgment wherein the arbitrator ruled the employee had refused to return funds he received as reimbursement for invoices he never paid. The arbitrator granted the Company’s partially dispositive motion. The remaining claims went to an arbitration hearing in late September 2023. The arbitrator has entered an interim award as well as a supplemental briefing award fees. The parties have submitted their respective briefs on those issues. The arbitrator will enter the final award in June, 2024, which is not appealable.

The second case involved an employee who was terminated without cause wherein the former employee was seeking contract wages, commissions and allegedly earned common stock. The Company also received notice in October 2022 that an OSHA whistleblower complaint had been filed with the US Department of Labor by that same employee that had been terminated for cause. The regulatory filing was received after AMMO refused to capitulate to the former employee’s demands. AMMO has produced documents and submitted its position statement to OSHA and the matter is currently pending at the agency level. AMMO uncovered additional information through work with counsel and investigators and a supplemental response was provided to OHSA on or about July 10, 2023. The Company and the employee agreed to arbitrate the case. The parties reached a resolution of all outstanding claims in November 2023 and all claims have been dismissed.

The third case involved an employee who was terminated without cause wherein the former employee was seeking contract wages and commissions. The Company and the employee agreed to arbitrate the case in August 2023. The parties reached a resolution of all outstanding claims in January 2024 and all claims have been dismissed.

On April 30, 2023, director and stockholder Steve Urvan filed suit in the Delaware Court of Chancery (the"Delaware Court") against the Company, and certain AMMO directors, former directors, employees, former employees and consultants. Urvan’s claims include fraudulent inducement, unjust enrichment and violations of the Arizona Securities Act. The suit seeks a court order for partial rescission of the Merger and compensatory damages of not less than $140 million. The Company and named defendants are in alignment in all material respects and intend to vigorously defend Urvan’s claims. The Company has engaged Delaware Court litigation specialists to defend its interests in all respects in this case. The Company timely responded to the Urvan Complaint by filing a motion to dismiss.

On August 1, 2023, AMMO filed a separate lawsuit against Urvan in the Delaware Court alleging, among other things, that Urvan committed fraud in connection with the GunBroker.com sale, and that Urvan breached his indemnification obligations to AMMO after the sale. On September 11, 2023, the Delaware Court consolidated AMMO’s lawsuit against Urvan with Urvan’s lawsuit against AMMO and the individual defendants. On September 18, 2023, AMMO filed an amended complaint that added a claim against Urvan for breach of the Arizona Securities Act. Urvan moved to dismiss AMMO’s complaint in full. On December 18, 2023, the Delaware Court of heard argument on the parties’ motions to dismiss in the consolidated action. On February 27, 2024, the Delaware Court issued an opinion resolving all pending motions to dismiss. The Court dismissed Urvan’s aiding and abetting claims against the individual defendants, but it declined to dismiss Urvan’s other claims against the individuals and declined to dismiss Urvan’s claims against AMMO. The Delaware Court rejected Urvan’s motion to dismiss AMMO’s claims against him in its entirety. On May 8, 2024, the Delaware Court ordered a case schedule culminating in a five-day trial on July 28, 2025. For information about subsequent developments in this proceeding, see Note 23 "Subsequent Events."

On December 6, 2023, Steve Urvan initiated a separate action against the Company in his capacity as director under 8 Del. C. § 220(d) to inspect certain of the Company’s books and records (the “Books and Records Action”). In the Books and Records Action, Mr. Urvan alleges that the Company wrongfully refused to provide him with access to certain categories of documents following demands that he made on the Company on March 3, 2023 and November 9, 2023. The Company asserted as an affirmative defense that Mr. Urvan’s primary purpose for his demands is, among other things, to obtain documents to support his claims in the Delaware Plenary Litigation, in which discovery was then stayed. The court held a one-day trial on February 26, 2024 in Georgetown, Delaware. On February 27, 2024, the court in the Delaware Plenary Litigation issued an opinion that had the effect of lifting the discovery stay. On February 28, 2024, AMMO informed the judge presiding over the Books and Records Action that “[i]n AMMO’s view, the [Plenary Action] Opinion has effectively mooted this [Books and Records] action.” On April 9, 2024, AMMO began producing documents in response to Mr. Urvan’s demands pursuant to a Stipulation and Order Governing AMMO’s Document Productions. The court has not issued a post-trial ruling.

On January 18, 2024, Innovative Computer Professionals, Inc. d/b/a Digital Cash Processing (“DCP”) filed a civil action in Minnesota state court against Outdoors Online, LLC d/b/a GunBroker.com (“GunBroker.com”) for breach of contract (the “MN Action”). In the MN Action, DCP alleges that GunBroker.com breached a May 2021 contract, pursuant to which DCP was to provide specified digital payment processing services, and it alleges $100 million in damages. On February 7, 2024, GunBroker.com removed the MN Action to the United States District Court for the District of Minnesota. On February 14, 2024, GunBroker.com moved to dismiss the MN Action for lack of personal jurisdiction and for failure to adequately state a claim, or, in the alternative, to transfer the MN Action to the United States District Court for the District of Arizona (the “Motion”). As of March 31, 2024, the Motion had been fully briefed, argued, and submitted to the court. GunBroker.com denies the allegations , and it plans to vigorously defend the claims asserted against it and assert counterclaims against DCP if and when it is required to answer.

We have accrued for contingencies totaling approximately $1.4 million for the year ended March 31, 2024. There were no other known contingencies as of March 31, 2024, 2023 and 2022.

Recent Adopted Accounting Pronouncements

We adopted Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) and ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” in the current period. These policy changes did not result in a material effect on the Company’s financial statements.

Recent Accounting Pronouncements

In June 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The guidance also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires specific disclosures for equity securities subject to contractual sale restrictions. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. Additionally, it requires that a public entity (1) disclose an amount for “other segment items” by reportable segment, (2) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods, and (3) requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this proposed ASU and all existing segment disclosures in Topic 280. The new guidance is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments in this proposed ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. We are currently evaluating the potential impact of these changes.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The ASU requires that public business entities on an annual basis (1) disclose specific categories in the effective tax rate reconciliation and (2) provide additional information for reconciling items that meet or exceed a quantitative threshold. Additionally, it requires all entities disclose the following information about income taxes paid on an annual basis: (1) the year-to-date amounts of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. The amendments are effective for annual periods beginning after December 15, 2024. The amendments in this proposed ASU should be applied on a prospective basis, although retrospective application to all periods presented is permitted. Early adoption is permitted. We are currently evaluating the potential impact of these changes.

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year's presentation. These reclassifications have no effect on the results of operations, stockholders' equity and cash flows as previously reported.

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Mar. 31, 2024

Prior Period Adjustment [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

In September 2024, a Special Committee of the Board of Directors initiated the Special Committee Investigation through independent legal counsel and independent forensic accountants. During the course of the Special Committee Investigation, the Special Committee discovered accounting and financial reporting errors that required restatement resulting primarily from (i) inaccurate valuation of, and accounting for share-based compensation awards to employees, non-employee directors, and other service providers, and shares issued in exchange for goods and services, (ii) inappropriate capitalization of certain share issuance costs, and (iii) inappropriate accounting for certain convertible notes and warrants issued by the Company. During the course of the Special Committee Investigation, the Special Committee also found that the Company had not properly disclosed certain executive officers, executive compensation and related party transactions. In conjunction with the restatement of the items above, we also made corresponding income tax adjustments to our consolidated financial statements as these balances were impacted by the aforementioned adjustments.

The accounting and financial reporting errors identified as part of the Special Committee Investigation and subsequent restatement preparation are described and summarized as follows:

Stock-based payments

The valuation and amortization of expense related to stock-based payments to employees and non-employee directors and shares issued to service providers in exchange for goods and services were historically calculated incorrectly. The Company previously accounted for stock-based payments using a grant date fair value that was discounted from the fair value under the incorrect interpretation that the shares were restricted. In addition, the determination of the grant date was incorrectly determined with respect to historically issued stock-based payments. The Company re-evaluated the grant date fair value of stock-based payments under ASC 718. Under ASC 718, the grant date is the date at which the grantor and grantee have a mutual understanding of the key terms and conditions of the stock-based compensation agreement. The Company reviewed all stock-based payment awards to ensure the correct grant date was identified going back to the year ending December 31, 2017. The Company then evaluated the grant date fair value of all stock-based payment awards. The Company used the publicly available closing price of its stock on the date nearest the grant date as this is considered the best indicator of value. Additional expense of $2,422,490 for the years ended March 31, 2017 through 2021 has been recognized in opening retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated period presented.

The following table summarizes the impact to the consolidated statement of operations of the change in stock-based compensation expense by fiscal year:

Equity issuance costs

In the fiscal years ending March 31, 2021 and 2022, the Company incorrectly capitalized costs associated with equity financings. The equity issuance costs did not meet the definition to be capitalized against proceeds. The Company determined that certain capitalized costs should have been expensed as incurred in general and administrative expenses in the consolidated statement of operations. After re-evaluation, the Company determined that the services provided by certain legal and investor relations service providers during financing events did not meet the definition of issuance costs as they were not specific incremental costs that were

directly attributable to the issuance of a debt or equity instrument. The Company recorded an adjustment to reclassify the issuance costs. The adjustment in the year ended March 31, 2021 has been recognized in opening retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated period presented. The adjustment for the year ended March 31, 2022 is reflected as a reclassification from additional paid in capital on the consolidated balance sheet to corporate general and administrative expenses on the consolidated statement of operations.

The following table summarizes the impact to the consolidated statement of operations for the change in accounting for equity issuance costs:


Year ended March 31, 2021 (unaudited)	$	981,620
Year ended March 31, 2022		6,438,872

Warrants

In the year ended March 31, 2018, the Company issued warrants and the resulting value and recognition of expense for those warrants was accounted for incorrectly. The warrant values were recalculated using a Black-Scholes option pricing model using the relevant inputs based on the terms of the respective warrant. The resulting expense of $606,237 has been reflected in opening retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated period presented.

With respect to warrants issued in December 2021, the Company recorded expense in the periods the warrant vested; however, upon further review, the total warrants were earned upon signing the services agreement. The full value of the warrants issued should have been recorded upon signing of the agreement in December 2021. In conjunction with the restatement, the warrant was re-valued based on the contract date fair value. The impact to the consolidated statement of operations for the year ended March 31, 2022 was $692,099.

Convertible Notes

Accounting for convertible notes was historically incorrect. Management reviewed all previously issued convertible notes and determined that, historically, conversion options within the convertible note agreements were not accounted for correctly.

As a result of analyzing the convertible notes issued in the year ended March 31, 2019, management determined that a beneficial conversion feature should have been recognized and amortized to interest expense over the term of the convertible notes. The expense would have been fully recognized in periods prior to the restatement and has been recognized in retained earnings on the consolidated balance sheet. In addition, an inducement offer was made to the note holders. After review of the accounting treatment initially recorded, management determined that the fair value of the inducement offer was not calculated correctly. The inducement offer was recalculated by determining the difference between the fair value of all securities and consideration transferred and the fair value of the consideration issuable under the original conversion terms. The resulting expense from the recalculation of the inducement offer has been recognized in retained earnings on the consolidated balance sheet as it occurred in a period prior to the restated periods presented.

Convertible notes and warrants issued in the year ended March 31, 2020 were also evaluated for proper accounting treatment. These convertible notes were not accounted for correctly as the Company did not account for the beneficial conversion feature within the convertible notes and did not allocate the consideration received upon issuance of the notes between the convertible notes and the stock purchase warrants. Under the terms on the convertible note, because the number of shares that would potentially be issued upon conversion were inversely indexed to the price of the Company's Common Stock, the conversion option should have been accounted for separately from the debt host agreement and recorded as a conversion option liability. In addition, the warrants should have been recorded as a liability until the exercise price was set due to the exercise price being indexed to a price upon a future event. In connection with the restatement, the warrants were calculated as a standard forward-start option with unit strike and initial price using a Black-Scholes model assuming constant volatility and rates. The proceeds from the issuance of the convertible notes was then allocated to the conversion option and the warrants at their fair values. The fair values exceeded the total proceeds, therefore no value would have been recorded for the notes and the Company would have recorded a loss on a derivative liability in the year ended March 31, 2020. In the year ended March 31, 2021, when the convertible note matured, the conversion price of the convertible notes as well as the exercise price of the warrants were set. The convertible notes and warrant fair values were calculated as of the date of conversion. The fair value resulted in an additional loss on a derivative liability then the liabilities were reclassified into equity upon conversion. The result of the transactions is accounted for as an adjustment to the opening retained earnings on the consolidated balance sheet.

During the year ended March 31, 2021, the Company entered into a promissory note that was subsequently partially paid by converting a portion of the principal balance into shares of the Company's Common Stock. The extinguishment of debt was recorded incorrectly. Under ASC 470, Debt, an early extinguishment of debt is accounted for by recognizing a gain or loss on the difference between the reacquisition price of the debt and the net carrying amount of the debt. The fair value of the Common Stock issued to extinguish the debt was greater than the principal balance being repaid resulting in a loss on extinguishment. This loss is reflected in the opening retained earnings on the consolidated balance sheet.

The total expense reflected in opening retained earnings on the consolidated balance sheet for all convertible note transactions is $6,024,240.

Related party transactions

Historically, the disclosure of related party transactions was omitted or not fully or accurately disclosed in the Company's financial statements. The Company performed an in-depth review and assessment of its related party transactions and the disclosure of such transactions in the affected periods. The Company determined that there were missing related party transaction disclosures which have been included in the related party footnotes (see Note 12, "Notes Payable - Related Party" and Note 18, "Related Party Transactions").

Summary of the Cumulative Effect of Restatement Adjustments to Previously Reported Beginning Retained Earnings


	April 1,2021
Retained earnings, as previously reported	$	(41,819,539	)
Restatement adjustments:
Share-based compensation		(6,614,904	)
Warrants		(606,237	)
Convertible notes		(6,024,240	)
Other(1)		(6,478,136	)
Income taxes		—
Cumulative impact of restatement adjustments		(19,723,517	)
Retained earnings at March 31, 2021, as restated	$	(61,543,056	)

(1) Includes adjustments for licenses, patents, business acquisitions and equity issuance costs

Summary of the Effect of the Restatement of the Company’s Financial Statements

The following tables set forth the restatement of the Company’s consolidated balance sheets as of March 31, 2024, 2023, and 2022, and its consolidated statements of operations for the fiscal years ended March 31, 2024, 2023, and 2022:

Consolidated Balance Sheets


	As of March 31, 2024
					Adjustments
	As Previously Reported				Stock Based Payments				Equity Issuance Costs				Convertible Notes				Warrants				Acquisition				Other			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$		55,586,441		$	-			$	-			$	-			$	-			$	-			$	-		$	55,586,441
Accounts receivable, net			28,221,321			-				-				-				-				-				-			28,221,321
Inventories			45,563,334			-				-				-				-				-				-			45,563,334
Prepaid expenses			2,154,170			-				-				-				-				-				-			2,154,170
Current portion of restricted cash		-				-				-				-				-				-				-			-
Total current assets			131,525,266				-				-				-				-				-				-		131,525,266

Equipment, net			58,082,040			-				-				-				-				-				-			58,082,040

Other assets:
Deposits			349,278			-				-				-				-				-				-			349,278
Patents, net			4,539,290				-			-				-				-					-				216,716		4,756,006
Other intangible assets, net			111,049,067				-			-				-				-				-				-			111,049,067
Goodwill			90,870,094			-				-				-				-				-				-			90,870,094
Right of use assets - operating leases			2,000,093			-				-				-				-				-				-			2,000,093
Deferred income tax asset			1,487,088			-				-				-				-					-				2,920,403		4,407,491
TOTAL ASSETS	$		399,902,216		$	0			$	0			$	0			$	0			$	0			$	3137119		$	403,039,335

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$		23,156,495		$	-			$	-			$	-			$	-			$	-			$	-		$	23,156,495
Accrued liabilities			7,030,667			-				-				-				-				-					34,777		7,065,444
Current portion of operating lease liability			479,651			-				-				-				-				-				-			479,651
Note payable related party		-				-				-				-				-				-				-			-
Current portion of construction note payable			273,459			-				-				-				-				-				-			273,459
Insurance premium note payable		-				-				-				-				-				-				-			-
Total current liabilities			30,940,272				-				-				-				-				-				34,777.00		30,975,049

Long-term liabilities:
Contingent consideration payable			59,838			-				-				-				-				-				-			59,838
Income tax payable			-			-				-				-				-				-					1,609,520		1,609,520
Construction note payable, net of unamortized issuance costs			10,735,241			-				-				-				-				-				-			10,735,241
Operating lease liability, net of current portion			1,609,836			-				-				-				-				-				-			1,609,836
Deferred income tax liability		-				-				-				-				-					-				-		-
Total liabilities			43,345,187				-				-				-				-				-				1,644,297		44,989,484

Shareholders’ equity:
Series A cumulative perpetual preferred Stock			1,400			-				-				-				-				-				-			1,400
Common stock			119,181				-			-				-				-				-				-			119,181
Additional paid-in capital			396,730,170				13,174,586				7,420,492				6,024,240				1,298,336				5,225,000				653,000		430,525,824
Accumulated deficit			(37,620,566	)			(13,174,586	)			(7,420,492	)			(6,024,240	)			(1,298,336	)			(5,225,000	)			839,822		(69,923,398	)
Treasury stock			(2,673,156	)		-				-				-				-				-				-			(2,673,156	)
Total shareholders’ equity			356,557,029				-				-				-				-				-				1,492,822		358,049,851
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$		399,902,216		$		-		$		-		$		-		$		-		$		-		$		3,137,119	$	403,039,335


	As of March 31, 2023
					Adjustments
	As Previously Reported				Stock Based Payments				Equity Issuance Costs				Convertible Notes				Warrants				Acquisitions				Other				As Restated
ASSETS
Current assets:
Cash and cash equivalents	$		39,134,027		$	-			$	-			$	-			$	-			$	-			$	-			$	39,134,027
Accounts receivable, net			29,346,380			-				-				-				-				-				-				29,346,380
Inventories			54,344,819			-				-				-				-				-				-				54,344,819
Prepaid expenses			5,126,667			-				-				-				-				-				-				5,126,667
Current portion of restricted cash			500,000			-				-				-				-				-				-				500,000
Total current assets			128,451,893				-				-				-				-				-				-			128,451,893

Equipment, net			55,963,255			-				-				-				-				-				-				55,963,255

Other assets:
Deposits			7,028,947			-				-				-				-				-				-				7,028,947
Patents, net			5,032,754				-			-				-				-				-					264,000			5,296,754
Other intangible assets, net			123,726,810				-			-				-				-				-				-				123,726,810
Goodwill			90,870,094			-				-				-				-				-				-				90,870,094
Right of use assets - operating leases			1,261,634			-				-				-				-				-				-				1,261,634
Deferred income tax asset		-				-				-				-				-					-				595,756			595,756
TOTAL ASSETS	$		412,335,387		$		-		$		-		$		-		$		-		$		-		$		859,756		$	413,195,143

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$		18,079,397		$	-			$	-			$	-			$	-			$	-			$	-			$	18,079,397
Accrued liabilities			4,353,354			-				-				-				-				-					34,778			4,388,132
Current portion of operating lease liability			470,734			-				-				-				-				-				-				470,734
Note payable related party			180,850			-				-				-				-				-				-				180,850
Current portion of construction note payable			260,429			-				-				-				-				-				-				260,429
Insurance premium note payable			2,118,635			-				-				-				-				-				-				2,118,635
Total current liabilities			25,463,399				-				-				-				-				-				34,778			25,498,177

Long-term liabilities:
Contingent consideration payable			140,378			-				-				-				-				-				-				140,378
Income tax payable			-			-				-				-				-				-					1,609,520			1,609,520
Construction note payable, net of unamortized issuance costs			10,922,443			-				-				-				-				-				-				10,922,443
Operating lease liability, net of current portion			903,490			-				-				-				-				-				-				903,490
Deferred income tax liability			2,309,592			-				-				-				-				-					(2,309,592	)		-
Total liabilities			39,739,302				-				-				-				-				-				(665,294	)		39,074,008

Shareholders’ equity:
Series A cumulative perpetual preferred Stock			1,400			-				-				-				-				-				-				1,400
Common stock			118,294				-			-				-				-				-				-				118,294
Additional paid-in capital			391,940,374				12,178,405				7,420,492				6,024,240				1,298,336				5,225,000				653,000			424,739,847
Accumulated deficit			(18,941,825	)			(12,178,405	)			(7,420,492	)			(6,024,240	)			(1,298,336	)			(5,225,000	)			872,050			(50,216,248	)
Treasury stock			(522,158	)		-				-				-				-				-				-				(522,158	)
Total shareholders’ equity			372,596,085				-				-				-				-				-				1,525,050			374,121,135
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$		412,335,387		$		-		$		-		$		-		$		-		$		-		$		859,756		$	413,195,143


	As of March 31, 2022
					Adjustments
	As Previously Reported				Stock Based Payments				Equity Issuance Costs				Convertible Notes				Warrants				Acquisition				Other				As Restated
ASSETS
Current assets:
Cash and cash equivalents	$		23,281,475		$	-			$	-			$	-			$	-			$	-			$	-			$	23,281,475
Accounts receivable, net			43,955,084			-				-				-				-				-				-				43,955,084
Due from related parties			15,000																											15,000
Inventories			59,016,152			-				-				-				-				-				-				59,016,152
Prepaid expenses			3,423,925			-				-				-				-				-				-				3,423,925
Current portion of restricted cash			-			-				-				-				-				-				-				-
Total current assets			129,691,636				-				-				-				-				-				-			129,691,636

Equipment, net			37,637,806			-				-				-				-				-				-				37,637,806
																														-
Other assets:																														-
Deposits			11,360,322			-				-				-				-				-				-				11,360,322
Patents, net			5,526,218			-				-				-				-				-					311,284			5,837,502
Other intangible assets, net			136,300,387			-				-				-				-				-				-				136,300,387
Goodwill			90,870,094			-				-				-				-				-				-				90,870,094
Right of use assets - operating leases			2,791,850			-				-				-				-				-				-				2,791,850
Deferred income tax asset		-				-				-				-				-				-					1,350,868			1,350,868
TOTAL ASSETS	$		414,178,313		$		-		$		-		$		-		$		-		$		-		$		1,662,152		$	415,840,465

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$		26,817,083		$	-			$	-			$	-			$	-			$	-			$	-			$	26,817,083
Factoring liability			485,671			-				-				-				-				-				-				485,671
Accrued liabilities			6,178,814			-				-				-				-				-					34,778			6,213,592
Inventory credit facility			825,675			-				-				-				-				-				-				825,675
Current portion of operating lease liability			831,429			-				-				-				-				-				-				831,429
Current portion of note payable related party			684,639			-				-				-				-				-				-				684,639
Total current liabilities			35,823,311				-				-				-				-				-				34,778			35,858,089

Long-term liabilities:
Contingent consideration payable			204,142			-				-				-				-				-				-				204,142
Income tax payable			-			-				-				-				-				-					1,609,520			1,609,520
Notes payable related party, net of current portion			181,132			-				-				-				-				-				-				181,132
Construction note payable, net of unamortized issuance costs			38,330			-				-				-				-				-				-				38,330
Operating lease liability, net of current portion			2,091,351			-				-				-				-				-				-				2,091,351
Deferred income tax liability			1,536,481			-				-				-				-				-					(1,536,481	)		-
Total liabilities			39,874,747				-				-				-				-				-				107,817			39,982,564

Shareholders’ equity:
Series A cumulative perpetual preferred Stock			1,400			-				-				-				-				-				-				1,400
Common stock			116,487			0				-				-				-				-				-				116,487
Additional paid-in capital			385,426,431				8,037,042				7,420,492				6,024,240				1,298,336				5,225,000				653,000			414,084,541
Accumulated deficit			(11,240,752	)			(8,037,042	)			(7,420,492	)			(6,024,240	)			(1,298,336	)			(5,225,000	)			901,335			(38,344,527	)
Treasury stock			-			-				-				-				-				-				-				-
Total shareholders’ equity			374,303,566				-				-				-				-				-				1,554,335			375,857,901
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$		414,178,313		$		-		$		-		$		-		$		-		$		-		$		1,662,152		$	415,840,465

Consolidated Statements of Operations


	Fiscal Year Ended March 31, 2024
				Adjustments
	As Previously Reported			Stock Based Payments			Other			As Restated
Net revenues
Ammunition sales	$	69,390,801		$	-		$	-		$	69,390,801
Marketplace revenue		53,942,076			-			-			53,942,076
Casing sales		21,721,695			-			-			21,721,695
Total revenues		145,054,572			-			-			145,054,572

Cost of revenues		102,431,803			-			47,284			102,479,087
Gross profit		42,622,769			-			(47,284	)		42,575,485

Operating expenses
Selling and marketing		1,370,079			-			-			1,370,079
Corporate general and administrative		29,583,274			-			-			29,583,274
Employee salaries and related expenses		16,703,822			996,180			-			17,700,002
Depreciation and amortization expense		13,542,791			-			-			13,542,791
Total operating expenses		61,199,966			996,180			-			62,196,146
Loss from operations		(18,577,197	)		(996,180	)		(47,284	)		(19,620,661	)

Other expenses
Other income		(332,593	)		-			-			(332,593	)
Interest expense		(446,473	)		-			-			(446,473	)
Total other expense		(779,066	)		-			-			(779,066	)

Loss before income taxes		(19,356,263	)		(996,180	)		(47,284	)		(20,399,727	)

Provision for income taxes		(3,791,063	)		-			(15,055	)		(3,806,118	)

Net loss		(15,565,200	)		(996,180	)		(32,229	)		(16,593,609	)

Preferred stock dividend		(3,122,049	)		-			-			(3,122,049	)

Net loss attributable to common stock shareholders	$	(18,687,249	)	$	(996,180	)	$	(32,229	)	$	(19,715,658	)

Net loss per share
Basic	$	(0.16	)							$	(0.17	)
Diluted	$	(0.16	)							$	(0.17	)


	Fiscal Year Ended March 31, 2023
				Adjustments
	As Previously Reported			Stock Based Payments			Other			As Restated
Net revenues
Ammunition sales	$	114,116,044		$	-		$	-		$	114,116,044
Marketplace revenue		63,149,673			-			-			63,149,673
Casing sales		14,174,084			-			-			14,174,084
Total revenues		191,439,801			-			-			191,439,801

Cost of revenues		136,031,204			-			47,284			136,078,488
Gross profit		55,408,597			-			(47,284	)		55,361,313

Operating expenses
Selling and marketing		4,729,540			-			-			4,729,540
Corporate general and administrative		24,980,079			-			-			24,980,079
Employee salaries and related expenses		15,679,135			4,141,363			-			19,820,498
Depreciation and amortization expense		13,278,762			-			-			13,278,762
Total operating expenses		58,667,516			4,141,363			-			62,808,879
Loss from operations		(3,258,919	)		(4,141,363	)		(47,284	)		(7,447,566	)

Other expenses
Other income		25,181			-			-			25,181
Interest expense		(632,062	)		-			-			(632,062	)
Total other expense		(606,881	)		-			-			(606,881	)

Loss before income taxes		(3,865,800	)		(4,141,363	)		(47,284	)		(8,054,447	)

Provision for income taxes		730,238			-			(17,999	)		712,239

Net loss		(4,596,038	)		(4,141,363	)		(29,285	)		(8,766,686	)

Preferred stock dividend		(3,105,034	)		-			-			(3,105,034	)

Net loss attributable to common stock shareholders	$	(7,701,072	)	$	(4,141,363	)	$	(29,285	)	$	(11,871,720	)

Net loss per share
Basic	$	(0.07	)							$	(0.10	)
Diluted	$	(0.07	)							$	(0.10	)


	Fiscal Year Ended March 31, 2022
				Adjustments
	As Previously Reported			Stock Based Payments			Equity Issuance Costs			Warrants			Other			As Restated
Net revenues
Ammunition sales	$	161,459,025		$	-		$	-		$	-		$	-		$	161,459,025
Marketplace revenue		64,608,516			-			-			-			-			64,608,516
Casing sales		14,201,625			-			-			-			-			14,201,625
Total revenues		240,269,166			-			-			-			-			240,269,166

Cost of revenues		151,505,657			-			-			-			47,284			151,552,941
Gross profit		88,763,509			-			-			-			(47,284	)		88,716,225

Operating expenses
Selling and marketing		7,310,216			-			-			-			-			7,310,216
Corporate general and administrative		16,986,344			3,168			6,438,872			692,099			-			24,120,483
Employee salaries and related expenses		13,615,439			1,418,969			-			-			-			15,034,408
Depreciation and amortization expense		13,702,148			-			-			-			22,917			13,725,065
Total operating expenses		51,614,147			1,422,137			6,438,872			692,099			22,917			60,190,172
Income/(loss) from operations		37,149,362			(1,422,137	)		(6,438,872	)		(692,099	)		(70,201	)		28,526,053

Other expenses
Other income		21,840			-			-			-			-			21,840
Interest expense		(637,797	)		-			-			-			-			(637,797	)
Total other expense		(615,957	)		-			-			-			-			(615,957	)

Income/(loss) before income taxes		36,533,405			(1,422,137	)		(6,438,872	)		(692,099	)		(70,201	)		27,910,096

Provision for income taxes		3,285,969			-			-			-			(1,243,051	)		2,042,918

Net income/(loss)		33,247,436			(1,422,137	)		(6,438,872	)		(692,099	)		1,172,850			25,867,178

Preferred stock dividend		(2,668,649	)		-			-			-			-			(2,668,649	)

Net income/(loss) attributable to common stock shareholders	$	30,578,787		$	(1,422,137	)	$	(6,438,872	)	$	(692,099	)	$	1,172,850		$	23,198,529

Net income/(loss) per share
Basic	$	0.27														$	0.21
Diluted	$	0.27														$	0.20

Consolidated Statements of Stockholders' Equity

The following tables present the Additional Paid-In Capital ("APIC") as previously reported, restatement adjustments and the APIC as restated for the years ended March 31, 2024, 2023 and 2022.



	As Previously Reported		Reclassification			Current Period Adjustment		As Restated

Employee stock awards	$	4,080,170	$	203,000		$	996,181	$	5,279,351
Stock grants		203,000		(203,000	)		-		-



	As Previously Reported		Reclassification			Current Period Adjustment		As Restated

Employee stock awards	$	5,806,003	$	179,094		$	4,141,363	$	10,126,460
Stock grants		179,094		(179,094	)		-		-



	As Previously Reported		Reclassification			Current Period Adjustment		As Restated

Acquisition stock issuances	$	142,691,282	$	-		$	666,372	$	143,357,654
Common stock issued for services and equipment		1,631,701		-			3,854,895		5,486,596
Employee stock awards		5,759,000		252,488			1,417,162		7,428,650
Stock grants		252,488		(252,488	)		-		-
Issuance of Series A Preferred Stock, net of issuance costs		31,008,796		-			1,898,600		32,907,396
Warrants issued for services		1,090,076		-			692,099		1,782,175

Consolidated Statements of Cash Flow


	For the Year Ended March 31, 2024
				Adjustments
	As Previously Reported			Stock Based Payments			Other			As Restated
Cash flows from operating activities:
Net income/(loss)	$	(15,565,200	)	$	(996,180	)	$	(32,229	)	$	(16,593,609	)
Adjustments to reconcile net loss to cash provided by operations:
Depreciation and amortization		18,813,897			-			47,284			18,861,181
Debt discount amortization		83,253			-			-			83,253
Employee stock awards		4,285,108			996,180			-			5,281,288
Common stock purchase options		430,457			-			-			430,457
Contingent consideration payable fair value		(80,540	)		-			-			(80,540	)
Allowance for doubtful accounts		419,527			-			-			419,527
(Gain)/loss on disposal of assets		259,540			-			-			259,540
Reduction in right of use asset		476,252			-			-			476,252
Deferred income taxes		(3,796,680	)		-			(15,055	)		(3,811,735	)
Changes in current assets and liabilities					-			-			-
Accounts receivable		705,532			-			-			705,532
Inventories		8,781,485			-			-			8,781,485
Prepaid expenses		4,028,696			-			-			4,028,696
Deposits		6,679,669			-			-			6,679,669
Accounts payable		5,077,098			-			-			5,077,098
Accrued liabilities		2,532,695			-			-			2,532,695
Operating lease liability		(499,448	)		-			-			(499,448	)
Net cash provided by operating activities		32,631,341			-			-			32,631,341

Cash flows from investing activities:
Purchase of property, plant, and equipment		(8,024,765	)		-			-			(8,024,765	)
Proceeds from disposal of assets		3,750			-			-			3,750
Net cash used in investing activities		(8,021,015	)		-			-			(8,021,015	)

Cash flows from financing activities:
Proceeds from factoring liability		37,252,869			-			-			37,252,869
Payments on factoring liability		(37,252,869	)		-			-			(37,252,869	)
Payments on note payable - related party		(180,850	)		-			-			(180,850	)
Payments on insurance premium note payment		(3,174,834	)		-			-			(3,174,834	)
Payments on construction note payable		(257,425	)		-			-			(257,425	)
Common stock issued for exercised warrants		76,200			-			-			76,200
Preferred stock dividends paid		(2,968,923	)		-			-			(2,968,923	)
Common stock repurchase plan		(2,152,080	)		-			-			(2,152,080	)
Net cash used in financing activities		(8,657,912	)		-			-			(8,657,912	)

Net increase/(decrease) in cash		15,952,414			-			-			15,952,414
Cash, beginning of period		39,134,027			-			-			39,134,027
Restricted cash, beginning of period		500,000			-			-			500,000
Cash and restricted cash, end of period	$	55,586,441		$	-		$	-		$	55,586,441
Restricted cash, end of period	$	-		$	-		$	-		$	-
Cash, end of period	$	55,586,441		$	-		$	-		$	55,586,441


	For the Year Ended March 31, 2023
				Adjustments
	As Previously Reported			Stock Based Payments			Other			As Restated
Cash flows from operating activities:
Net income/(loss)	$	(4,596,038	)	$	(4,141,363	)	$	(29,285	)	$	(8,766,686	)
Adjustments to reconcile net loss to cash provided by operations:
Depreciation and amortization		17,519,949			-			47,284			17,567,233
Debt discount amortization		83,253			-			-			83,253
Employee stock awards		5,986,873			4,141,363			-			10,128,236
Contingent consideration payable fair value		(63,764	)		-			-			(63,764	)
Allowance for doubtful accounts		191,299			-			-			191,299
Reduction in right of use asset		629,140			-			-			629,140
Warrants issued for services		213,819			-			-			213,819
Deferred income taxes		730,238			-			(17,999	)		712,239
Changes in current assets and liabilities
Accounts receivable		14,417,405			-			-			14,417,405
Due to related parties		15,000			-			-			15,000
Inventories		4,671,333			-			-			4,671,333
Prepaid expenses		2,763,855			-			-			2,763,855
Deposits		4,306,375			-			-			4,306,375
Accounts payable		(8,694,813	)		-			-			(8,694,813	)
Accrued liabilities		(1,970,078	)		-			-			(1,970,078	)
Operating lease liability		(647,480	)		-			-			(647,480	)
Net cash provided by operating activities		35,556,366			-			-			35,556,366

Cash flows from investing activities:
Purchase of property, plant, and equipment		(12,541,325	)		-			-			(12,541,325	)
Net cash used in investing activities		(12,541,325	)		-			-			(12,541,325	)

Cash flows from financing activities:
Payments on inventory facility, net		(825,675	)		-			-			(825,675	)
Proceeds from factoring liability		71,348,761			-			-			71,348,761
Payments on factoring liability		(71,834,432	)		-			-			(71,834,432	)
Payments on note payable - related party		(684,921	)		-			-			(684,921	)
Payments on insurance premium note payment		(2,134,143	)		-			-			(2,134,143	)
Proceeds from construction note payable		1,000,000			-			-			1,000,000
Payments on construction note payable		(150,743	)		-			-			(150,743	)
Common stock issued for exercised warrants		101,506			-			-			101,506
Preferred stock dividends paid		(2,960,416	)		-			-			(2,960,416	)
Common stock repurchase plan		(522,426	)		-			-			(522,426	)
Net cash used in financing activities		(6,662,489	)		-			-			(6,662,489	)

Net increase/(decrease) in cash		16,352,552			-			-			16,352,552
Cash, beginning of period		23,281,475			-			-			23,281,475
Restricted cash, beginning of period		-			-			-			-
Cash and restricted cash, end of period	$	39,634,027		$	-		$	-		$	39,634,027
Restricted cash, end of period	$	500,000		$	-		$	-		$	500,000
Cash, end of period	$	39,134,027		$	-		$	-		$	39,134,027


	For the Year Ended March 31, 2022
				Adjustments
	As Previously Reported			Stock Based Payments			Equity Issuance Costs			Warrants			Other			As Restated
Cash flows from operating activities:
Net income/(loss)	$	33,247,436		$	(1,422,137	)	$	(6,438,872	)	$	(692,099	)	$	1,172,850		$	25,867,178
Adjustments to reconcile net loss to cash provided by operations:
Depreciation and amortization		17,339,093			-			-			-			70,201			17,409,294
Debt discount amortization		38,330			-			-			-			-			38,330
Employee stock awards		6,011,488			1,418,969			-			-			-			7,430,457
Stock for services		4,200			3,168			5,352,500			-			-			5,359,868
Contingent consideration payable fair value		(385,750	)		-			-			-			-			(385,750	)
Allowance for doubtful accounts		2,748,250			-			-			-			-			2,748,250
(Gain)/loss on disposal of assets		(12,044	)		-			-			-			-			(12,044	)
Reduction in right of use asset		720,491			-			-			-			-			720,491
Warrants issued for services		718,045			-			-			692,099			-			1,410,144
Deferred income taxes		1,536,481			-			-			-			(1,243,051	)		293,430
Changes in current assets and liabilities
Accounts receivable		(20,707,052	)		-			-			-			-			(20,707,052	)
Due to related parties		657			-			-			-			-			657
Inventories		(43,149,234	)		-			-			-			-			(43,149,234	)
Prepaid expenses		1,996,287			-			-			-			-			1,996,287
Deposits		(8,826,504	)		-			-			-			-			(8,826,504	)
Accounts payable		9,930,191			-			-			-			-			9,930,191
Accrued liabilities		2,374,686			-			-			-			-			2,374,686
Operating lease liability		(732,468	)		-			-			-			-			(732,468	)
Net cash provided by operating activities		2,852,583			-			(1,086,372	)		-			-			1,766,211

Cash flows from investing activities:
Gemini acquisition		(50,517,840	)		-			-			-			-			(50,517,840	)
Purchase of property, plant, and equipment		(19,218,982	)		-			-			-			-			(19,218,982	)
Proceeds from disposal of assets		59,800			-			-			-			-			59,800
Net cash used in investing activities		(69,677,022	)		-			-			-			-			(69,677,022	)

Cash flows from financing activities:
Payments on inventory facility, net		(265,422	)		-			-			-			-			(265,422	)
Proceeds from factoring liability		121,488,045			-			-			-			-			121,488,045
Payments on factoring liability		(122,844,562	)		-			-			-			-			(122,844,562	)
Payments on assumed debt from Gemini		(50,000,000	)		-			-			-			-			(50,000,000	)
Payments on note payable - related party		(625,147	)		-			-			-			-			(625,147	)
Payments on insurance premium note payment		(2,208,369	)		-			-			-			-			(2,208,369	)
Payments on note payable		(4,000,000	)		-			-			-			-			(4,000,000	)
Sale of preferred stock		35,000,000			-			-			-			-			35,000,000
Common stock issued for exercised warrants		943,907			-			-			-			-			943,907
Common stock issuance costs		(3,199,922	)		-			3,199,922			-			-			-
Preferred stock issuance costs		-			-			(2,113,550	)		-			-			(2,113,550	)
Preferred stock dividends paid		(2,524,087	)		-			-			-			-			(2,524,087	)
Net cash used in financing activities		(28,235,557	)		-			1,086,372			-			-			(27,149,185	)

Net increase/(decrease) in cash		(95,059,996	)		-			-			-			-			(95,059,996	)
Cash, beginning of period		118,341,471			-			-			-			-			118,341,471
Restricted cash, beginning of period		-			-			-			-			-			-
Cash and restricted cash, end of period	$	23,281,475		$	-		$	-		$	-		$	-		$	23,281,475
Restricted cash, end of period	$	-		$	-		$	-		$	-		$	-		$	-
Cash, end of period	$	23,281,475		$	-		$	-		$	-		$	-		$	23,281,475

INCOME/(LOSS) PER COMMON SHARE

12 Months Ended

Mar. 31, 2024

Net Income/(Loss) per share

INCOME/(LOSS) PER COMMON SHARE

NOTE 4 – INCOME/(LOSS) PER COMMON SHARE

We calculate basic income/(loss) per share using the weighted average number of common shares outstanding during each period. Diluted earnings per share assumes the conversion, exercise or issuance of all potential common stock equivalents unless the effect is to reduce a loss or increase the income per share. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock method), the exercise of warrants (using the if-converted method) and the vesting of restricted stock unit awards.


	For the Year Ended March 31,
	2024			2023			2022
	(As Restated)			(As Restated)			(As Restated)
Numerator:
Net income/(loss)	$	(16,593,609	)	$	(8,766,686	)	$	25,867,178
Less: Preferred stock dividends		(3,122,049	)		(3,105,034	)		(2,668,649	)
Net income/(loss) attributable to common stockholders	$	(19,715,658	)	$	(11,871,720	)	$	23,198,529

Denominator:
Weighted average shares of common stock - basic		118,249,486			117,177,885			112,328,680
Effect of dilutive common stock purchase warrants		-			-			2,121,302
Effect of dilutive equity incentive awards		-			-			375,853
Weighted average shares of common stock - Diluted		118,249,486			117,177,885			114,825,835

Basic earnings per share:
Income/(loss) per share attributable to common stockholders - basic	$	(0.17	)	$	(0.10	)	$	0.21

Diluted earnings per share:
Income/(loss) per share attributable to common stockholders - diluted	$	(0.17	)	$	(0.10	)	$	0.20

The following table presents the number of shares excluded from the calculation of diluted net loss per share attributable to common stockholders:


	For the Year Ended March 31,
	2024		2023		2022
	(As Restated)		(As Restated)		(As Restated)
Common stock options		175,000		-		-
Non-vested stock awards		1,540,524		2,204,659		2,735,226
Warrants		1,808,870		2,560,986		150,000
Total shares excluded from net income (loss) per share attributable to common stockholders		3,524,394		4,765,645		2,885,226

ACCOUNTS RECEIVABLE

12 Months Ended

Mar. 31, 2024

Credit Loss [Abstract]

ACCOUNTS RECEIVABLE

NOTE 5 – ACCOUNTS RECEIVABLE

Our net accounts receivable are summarized as follows:


	March 31, 2024			March 31, 2023			March 31, 2022
Accounts receivable	$	31,887,399		$	32,592,931		$	47,010,336
Less: allowance for credit losses		(3,666,078	)		(3,246,551	)		(3,055,252	)
	$	28,221,321		$	29,346,380		$	43,955,084

The following presents a reconciliation of our allowance for credit losses for the periods presented:


March 31, 2021	$	148,540
Increase in allowance		2,903,304
Write-off of uncollectible amounts		(12,703	)
Purchase accounting		16,111
March 31, 2022		3,055,252
Increase in allowance		2,160,323
Write-off of uncollectible amounts		(1,969,024	)
March 31, 2023		3,246,551
Increase in allowance		1,530,891
Write-off of uncollectible amounts		(1,111,364	)
March 31, 2024	$	3,666,078

INVENTORIES

12 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 6 – INVENTORIES

At March 31, 2024, March 31, 2023, and March 31, 2022, the inventory balances are composed of:


	March 31, 2024			March 31, 2023			March 31, 2022
Finished product		$	11,055,061		$	14,362,514		$	6,167,318
Raw materials			24,158,244			23,898,596			33,924,813
Work in process			10,350,029			16,083,709			18,924,021

		$	45,563,334		$	54,344,819		$	59,016,152

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT

Property and equipment consisted of the following at March 31, 2024, March 31, 2023, and March 31, 2022:


	March 31, 2024			March 31, 2023			March 31, 2022
Leasehold Improvements	$	257,009		$	257,009		$	257,009
Building and Improvements		29,143,445			28,623,329			—
Furniture and Fixtures		439,990			384,650			343,014
Vehicles		153,254			153,254			153,254
Equipment		45,467,137			40,233,186			32,524,850
Tooling		143,710			143,710			143,710
Construction in Progress		2,785,616			734,781			14,335,371
Total property and equipment	$	78,390,161		$	70,529,919		$	47,757,208
Less accumulated depreciation		(20,308,121	)		(14,566,664	)		(10,119,402	)
Net property and equipment	$	58,082,040		$	55,963,255		$	37,637,806

Depreciation expense for the years ended March 31, 2024, 2023, and 2022 totaled $5,751,023, $4,452,908, and $4,266,126, respectively. Of these totals $4,777,642, $3,747,723, and $3,101,929 were included in cost of revenues for the years ending March 31, 2024, 2023, and 2022. Additionally, $973,381, $705,185, and $1,164,197, respectively were included in depreciation and amortization expenses in operating expenses.

REVOLVING LOAN

12 Months Ended

Mar. 31, 2024

Revolving Loan

REVOLVING LOAN

NOTE 8 – REVOLVING LOAN

On December 29, 2023, we entered into a Loan and Security Agreement (the “Sunflower Agreement”) by and among the Company and other borrowers party to the Agreement (collectively, the “Borrower”), the lenders party thereto (collectively, the “Lenders”) and Sunflower Bank, N.A., as administrative agent and collateral agent (the “Agent”). Capitalized terms used but not otherwise defined in this Note 8 have the same definitions given to such terms in the Sunflower Agreement under the terms of the Sunflower Agreement, the Lenders have provided to the Borrower a revolving loan in the principal amount of the lesser of (a) $20,000,000 (the “Total Commitment Amount”) and (b) the Borrowing Base (a formula based on certain amounts owed to Borrower for goods sold or services provided and eligible inventory) (the “Revolving Loan”). The proceeds of loans under the Sunflower Agreement may be used for working capital, general corporate purposes, Permitted Acquisitions, to pay fees and expenses incurred in

connection with the Revolving Loan, to facilitate Borrower’s stock repurchase program and to fund Borrower’s general business requirements.

The Revolving Loan bears interest at a rate of the greater of (x) 3.50% (the “Floor Rate”) and (y) Term SOFR, plus 3.00% (the “Revolving Facility Applicable Rate”) and is computed on the basis of a 360-day year for the actual number of days elapsed. Except in an Event of Default (as defined below), Advances under the Revolving Loan shall bear interest, on the outstanding Daily Balance thereof, at the Revolving Facility Applicable Rate. Interest is due and payable on the first calendar day of each month during the term of the Sunflower Agreement. The Borrower is also obligated to pay to the Agent, for the ratable benefit of Lenders, an origination fee, Prepayment Fee, unused facility fee, collateral monitoring fee and Lender Expenses.

The Borrower may borrow, repay and re-borrow under the Revolving Loan until December 29, 2026 (the “Maturity Date”), at which time the commitments will terminate and all outstanding loans, together with all accrued and unpaid interest, must be repaid. If the Revolving Loan is refinanced by another lender prior to the Maturity Date, an additional fee payable concurrently with such refinancing in an amount equal to (i) three percent (3.0%) of the Total Commitment Amount, if such financing occurs after the Closing Date but on or prior to the first anniversary of the Closing Date, (ii) two percent (2.0%) of the Total Commitment Amount, if such refinancing occurs after the first anniversary of the Closing Date but on or prior to the second anniversary of the Closing Date, and (iii) one percent (1.0%) of the Total Commitment Amount, if such refinancing occurs after the second anniversary of the Closing Date but on or prior to the third anniversary of the Closing Date (the “Prepayment Fee”).

The Sunflower Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Borrower’s and the Borrower’ subsidiaries’ ability to, among other things, incur subsidiary indebtedness, grant liens, merge or consolidate, dispose of substantially all assets of the Borrower and its subsidiaries, taken as a whole, make investments, make acquisitions, enter into certain transactions with affiliates, pay dividends or make distributions, repurchase stock, and enter into restrictive agreements, in each case subject to customary exceptions.

The Sunflower Agreement includes customary events of default (each, an “Event of Default”) that include, among other things, non-payment defaults, inaccuracy of representations and warranties, covenant defaults, insolvency defaults, material judgment defaults, attachment defaults, subordinated debt default, guaranty defaults, and governmental approval defaults. Upon an Event of Default, all Obligations under the Sunflower Agreement shall bear interest at a rate equal to three (3.0) percentage points above the interest rate applicable immediately prior to the occurrence of the Event of Default.

We did not have an outstanding balance on our Revolving Loan as of March 31, 2024.

FACTORING LIABILITY

12 Months Ended

Mar. 31, 2024

Factoring Liability

FACTORING LIABILITY

NOTE 9 – FACTORING LIABILITY

On July 1, 2019, we entered into a Factoring and Security Agreement with Factors Southwest, LLC (“FSW”). FSW may purchase from time to time the Company’s Accounts Receivables with recourse on an account by account basis. The twenty-four month agreement contained a maximum advance amount of $5,000,000 on 85% of eligible accounts and had an annualized interest rate of the Prime Rate published from time to time by the Wall Street Journal plus 4.5%. The agreement provided for a fee of 3% ($150,000) of the Maximum Facility assessed to the Company. Our obligations under this agreement were secured by present and future accounts receivables and related assets, inventory, and equipment. The Company had the right to terminate the agreement, with 30 days written notice, upon obtaining a non-factoring credit facility. This agreement provided the Company with the ability to convert our account receivables into cash. We did not have an outstanding balance on our Factoring liability as of March 31, 2024 and March 31, 2023, and our balance was $485,671 as of March 31, 2022. Interest expense recognized on the Factoring Liability for the year ended March 31, 2024 was $185,319, including $62,500 of amortization of the commitment fee, for the year ended March 31, 2023, $153,646, including $37,500 of amortization of the commitment fee, for the year ended March 31, 2022, $327,746, including $100,000 of amortization of the commitment fee.

On June 17, 2021, this agreement was amended to extend the maturity date to June 17, 2025.

On November 29, 2023, we provided FSW notice of termination of the agreement. The agreement terminated on December 29, 2023. We recognized an expense of $281,108 in relation to the termination of the agreement with FSW.

INVENTORY CREDIT FACILITY

12 Months Ended

Mar. 31, 2024

Inventory Credit Facility

INVENTORY CREDIT FACILITY

NOTE 10 – INVENTORY CREDIT FACILITY

On June 17, 2020, we entered into a Revolving Inventory Loan and Security Agreement (the "Inventory Credit Agreement") with FSW. Pursuant to the Inventory Credit Agreement, FSW agreed to establish a revolving credit line, and make loans from time to time to the Company for the purpose of providing capital. The twenty-four month agreement secured by our inventory, among other assets, contained a maximum loan amount of $1,750,000 on eligible inventory and had an annualized interest rate of the greater of the three-month LIBOR rate plus 3.09% or 8%. The agreement contained a fee of 2% of the maximum loan amount ($35,000) assessed to the Company. On July 31, 2020, the Company amended the Revolving Loan and Security Agreement to increase the maximum inventory loan amount to $2,250,000. No outstanding balance remained as of March 31, 2024 and March 31, 2023. As of March 31, 2022, the outstanding balance of the Inventory Credit Facility was $825,675. There was no interest expense recognized on the Inventory Credit Facility for the year ended March 31, 2024. Interest expense for the year ended March 31, 2023 was $6,580, and for the year ended March 31, 2022 was $40,940, including $8,561 of amortization of the annual fee.

On November 29, 2023, we provided FSW notice of termination of the agreement. The agreement terminated on December 29, 2023.

LEASES

12 Months Ended

Mar. 31, 2024

Leases

LEASES

NOTE 11 – LEASES

We lease office, manufacturing, and warehouse space in Scottsdale, AZ, Atlanta and Marietta, GA, and Manitowoc, WI under contracts we classify as operating leases. None of our leases are financing leases. The Scottsdale lease has been extended through 2029 and does not include a renewal option. This extension resulted in an increase to our right of use assets on the consolidated balance sheet by $738,459.

In August of 2021, we extended the lease of our Atlanta offices through May of 2027, and as a result, we increased our right of use assets and operating lease liabilities on our consolidated balance sheet by $501,125 at September 30, 2021. In January of 2022, we extended the lease of our second Manitowoc, WI location and increased our right of use assets and operating lease liabilities on the consolidated balance sheet by $308,326.

We terminated our lease agreement in Marietta, GA during the year ended March 31, 2024 and decreased our right of use asset and operating lease liabilities on the consolidated balance sheet by $38,185. We also terminated our lease agreement in our first Manitowoc, WI location during the year ended March 31, 2023 and, accordingly, we decreased our right of use assets and operating lease liabilities on the consolidated balance sheet by $901,076.

Consolidated lease expense for the year ended March 31, 2024 was $663,826 including $642,105 of operating lease expense and $21,722 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals. Consolidated lease expense for the year ended March 31, 2023 was $881,171 including $861,777 of operating lease expense and $19,394 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals. Consolidated lease expense for the year ended March 31, 2022 was $1,221,473 including $1,177,589 of operating lease expense and $43,884 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals.

The weighted average remaining lease term and weighted average discount rate for operating leases were 4.0 years and 10.0%, respectively at March 31, 2024, were 3.3 years and 10.0%, respectively at March 31, 2023, and were 3.5 years and 10.0%, respectively at March 31, 2022.

Future minimum lease payments under non-cancellable leases as of March 31, 2024 are as follows:


Years Ended March 31,
2025	$	666,233
2026		665,069
2027		581,574
2028		379,067
2029		258,102
Total minimum lease payments		2,550,045
Less: Amount Representing Interest		(460,558	)
Present value of minimum lease payments	$	2,089,487

NOTES PAYABLE – RELATED PARTY

12 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

NOTES PAYABLE – RELATED PARTY

NOTE 12 – NOTES PAYABLE – RELATED PARTY

In connection with the acquisition of the casing division of Jagemann Stamping Company (“JSC”), a $10,400,000 promissory note was executed on March 14, 2019. The promissory note, under which $500,000 was paid on March 25, 2019 using funds raised for the acquisition, had a remaining balance at March 31, 2019 of $9,900,000. On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. The note bears interest per annum at approximately 4.6% payable in arrears monthly. In May of 2019, the Company paid $1,500,000 on the balance of the note. The note is secured by all the equipment purchased from JSC. JSC owned at least five percent (5%) of our shares outstanding from March 2019 through March 16, 2021.

In October 2019, it was made apparent that certain equipment that was agreed to be delivered free and clear by the JSC was not achievable as JSC was not able to purchase equipment that JSC had leased. Accordingly, the remaining value of the promissory note was reduced by $2,596,200. As a result of the change to the purchase price of the transaction, the Company reduced equipment for a net value of $1,871,306, decreased other intangible assets by $766,068, increased accounts receivable by $31,924, and recorded an increase to deposits for $9,250 worth of equipment that the Company agreed to transfer back to JSC. Consequently, accumulated amortization has decreased by $159,530. Additionally, the Company entered into a lease to gain possession of the assets that were originally to be transferred.

On June 26, 2020, the Company, Enlight Group II, LLC (“Enlight”), the Company’s wholly owned subsidiary and JSC entered into a Settlement Agreement pursuant to which the parties mutually agreed to settle all disputes and mutually release each other from liabilities related to the Amended APA occurring prior to June 26, 2020. Pursuant to the Settlement Agreement, the Company shall pay JSC $1,269,977 and shall provide JSC with: (i) two new promissory notes, a note of $5,803,800 related to the Seller Note and note of $2,635,797 for inventory and services, which was reclassed from accounts payable, both with a maturity date of August 15, 2021, (ii) general business security agreements granting JSC a security interest in all personal property of the Company. Pursuant to the Notes, the Company is obligated to make monthly payments totaling $204,295 to JSC. In addition, the Notes have a mandatory prepayment provision that comes into effect if the Company conducts a publicly registered offering. Pursuant to such provision, the Company: (a) upon the closing of an Offering of less than $10,000,000 would be obligated to pay the lesser of ninety percent (90%) of the Offering proceeds or seventy (70%) of the then aggregate outstanding balance of the Notes; and (b) upon the closing of an Offering of more than $10,000,000 would be obligated to pay one hundred percent (100%) of the then aggregate outstanding balance of the Notes. The Company was granted an option to repurchase up to 1,000,000 of the shares of the Company’s Common Stock issued to JSC under the Amended APA at a price of $1.50 per share through April 1, 2021 so long as there are no defaults under the Settlement Agreement.

As a result of the Settlement Agreement, the Company agreed to forgo $1,000,000 in Construction in Progress that the parties had previously agreed to exchange. As a result, the Company recognized a loss in operating expenses for the year ended March 31, 2021.

On November 5, 2020, the Company paid $6,000,000 to JSC allocated as follows: (i) payment in full of Note A, representing the balance due from the Company to JSC relating to the acquisition of Jagemann Munition Components in March 2019 and (ii) $592,982 remitted in partial payment of Note B, resulting in the parties’ execution of Amended Note B which has a starting principal balance of $1,687,664 (“Amended Note B”). The Amended Note B principal balance carries a 9% per annum interest rate and is amortized equally over the thirty-six (36) month term. As a result of the payment in full of Note A JSC shall release the accompanying security interest in Company assets which secured Note A. Concurrently, upon entry into Amended Note B, JSC and the Company entered into the First Amendment to General Business Security Agreement to reflect a revised list of collateral in which JSC has a security interest. The total interest expense recognized on Note A was $216,160 for the year ended March 31, 2021. The total interest expense recognized on the original Note B was $62,876 for the year ended March 31, 2021.

The Company paid off the balance of Amended Note B during the year ended March 31, 2024 and there was a balance of $180,850 at March 31, 2023 and $865,771 at March 31, 2022. The Company recognized $1,788, $48,665, and $110,518, in interest expense on Amended Note B for the years ended March 31, 2024, 2023, and 2022, respectively.

On January 22, 2021, the Company repurchased 1,000,000 shares of the Company’s Common Stock issued to JSC at a price of $1.50 per share pursuant to the Amended APA.

On November 5, 2020, the Company, entered into a promissory note with Lisa Kay, an immediate family member of Fred Wagenhals, the Company's Chief Executive Officer and Chairman of the Board of Directors at the time, for the principal sum of $4.0 million, which accrued interest at 12 % per annum. The promissory note had a maturity date of November 5, 2023. The Company recognized $66,667 in interest expense related to the promissory note for the year ended March 31, 2022. On May 21, 2021, the Company repaid the principal of the promissory note in full.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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CONSTRUCTION NOTE PAYABLE

CONSTRUCTION NOTE PAYABLE

12 Months Ended

Mar. 31, 2024

Construction Note Payable

NOTE 13 – CONSTRUCTION NOTE PAYABLE

On October 14, 2021, we entered into a Construction Loan Agreement (the “Hiawatha Loan Agreement”) with Hiawatha National Bank (“Hiawatha”). The Hiawatha Loan Agreement specifies that Hiawatha may lend up to $11,625,000 to us to pay a portion

of the construction costs of an approximately 185,000 square foot manufacturing facility to be constructed on our property (the “Construction Loan”). The first advance of Construction Loan funds by Hiawatha was made on October 14, 2021 in the amount of $329,843. We received advances of Construction Loan funds approximately every month as our “owner’s equity” was fully funded into the ongoing new plant construction project. The Construction Loan is an advancing term loan and not a revolving loan so any portion of the principal repaid cannot be re-borrowed.

Additionally, on October 14, 2021, we issued a Promissory Note in favor of Hiawatha (the “Hiawatha Note”) in the amount of up to $11,625,000 with an interest rate of 4.5%. The maturity date of the Hiawatha Note is October 14, 2026. Under the terms of the Hiawatha Loan Agreement, we are required to make monthly payments of $64,620 which consists of principal and interest until the maturity date, at which time the remaining principal balance of the Construction Loan would become due.

We can prepay the Hiawatha Note in whole or in part starting in July 2022 with a prepayment premium of 1% of the principal being prepaid.

The Hiawatha Loan Agreement contains customary events of default including, but not limited to, a failure to make any payments pursuant to the Hiawatha Loan Agreement or Hiawatha Note, a failure to complete construction of the project, a lien of $100,000 or more against the property, or a transfer of the property without Hiawatha’s consent. Upon the occurrence of an event of default, among other remedies, the amounts due pursuant to the Construction Loan can be accelerated, Hiawatha can foreclose on the property pursuant to the mortgage, and a late charge of 5% of the amount due will be owed with all amounts then owed pursuant to the Hiawatha Note bearing interest at an increased rate.

We are required to maintain a debt service coverage ratio, as defined in the terms of the Hiawatha Loan Agreement, of not less than 1.25 to 1.00 for the period defined below and continuing to and including the maturity date. The debt service coverage ratio shall be tested on an annual basis, as of July 1, for each previous year. We maintained compliance under the Loan Agreement since its inception.

During the year ended March 31, 2022 there was less than $1.0 million of Construction Loan funds advanced. During the year ended March 31, 2023, approximately $11.2 million of Construction Loan funds were advanced including $1.0 million of cash collateral or restricted cash as security for the Construction Loan. We made $257,425 and $150,743 in principal payments for the year ended March 31, 2024 and March 31, 2023, respectively. The restricted cash can be released per the terms documented in the Loan Agreement. During the year ended March 31, 2023, $500,000 of restricted cash was released with $500,000 remaining restricted. During the year ended March 31, 2024, the remaining $500,000 of restricted cash was released, resulting in a zero balance for restricted cash as of March 31, 2024.

CAPITAL STOCK

12 Months Ended

Mar. 31, 2024

Equity [Abstract]

CAPITAL STOCK

NOTE 15 – CAPITAL STOCK

Our authorized capital consists of 200,000,000 shares of Common Stock with a par value of $0.001 per share.

We issued 20,000,000 shares in connection with our merger of Gemini Direct Investments, LLC valued at $142,691,282 in the year ended March 31, 2022.

2017 Equity Incentive Plan

In October 2017, our board of directors approved the 2017 Equity Incentive Plan ("2017 Plan"). Our 2017 Plan initially permitted the issuance of equity-based instruments covering up to a total of 485,000 shares of Common Stock. Our board of directors and stockholders approved an increase of 4,515,000 shares in October 2020 an additional increase of 1,000,000 shares in March 2023, and an additional increase of 3,000,000 shares in February 2024, bringing the total shares allowed under the plan to 9,000,000. As of March 31, 2024, there were 2,791,492 shares available to be issued under the 2017 Plan.

Warrants

We issued 431,080 shares to investors for exercised warrants valued for $943,907 in the year ended March 31, 2022. In addition, 374,584 shares were issued for cashless exercise of 443,110 warrants.

We issued 200,003 shares to investors for exercised warrants valued for $101,506 in the year ended March 31, 2023. In addition, 99,762 shares were issued for cashless exercise of 100,000 warrants.

We issued 31,750 shares to investors for exercised warrants valued for $76,200 in the year ended March 31, 2024.

At March 31, 2024, 2023, and 2022, outstanding and exercisable stock purchase warrants consisted of the following (as restated):


	Number of Shares			Weighted Averaged Exercise Price		Weighted Average Life Remaining (Years)
Outstanding at March 31, 2021		3,607,945		$	2.31		3.24
Granted		300,000			0.01		3.92
Exercised		(874,190	)		1.76		-
Forfeited or cancelled		-			-		-
Outstanding at March 31, 2022		3,033,755		$	2.32		2.29
Exercisable at March 31, 2022		3,033,755		$	2.32		2.29


	Number of Shares			Weighted Averaged Exercise Price		Weighted Average Life Remaining (Years)
Outstanding at March 31, 2022		3,033,755			2.32		2.29
Granted		150,000			0.01		4.50
Exercised		(300,003	)		0.34		-
Forfeited or cancelled		(322,806	)		2.00		-
Outstanding at March 31, 2023		2,560,946		$	2.46		1.59
Exercisable at March 31, 2023		2,560,946		$	2.46		1.59


	Number of Shares			Weighted Averaged Exercise Price		Weighted Average Life Remaining (Years)
Outstanding at March 31, 2023		2,560,946		$	2.46		1.59
Exercised		(31,750	)		2.40		-
Forfeited or cancelled		(720,366	)		3.19		-
Outstanding at March 31, 2024		1,808,830		$	2.16		1.09
Exercisable at March 31, 2024		1,808,830		$	2.16		1.09

As of March 31, 2024, we had 1,808,830 warrants outstanding. Each warrant provides the holder the right to purchase up to one share of our Common Stock at a predetermined exercise price. The outstanding warrants consist of (1) warrants to purchase 100,000 shares of Common Stock at an exercise price of $0.01 per share until March 2027; (2) warrants to purchase 911 shares of Common Stock at an exercise price of $1.65 per share until April 2025; (3) warrants to purchase 1,244,108 shares of our Common Stock at an exercise price of $2.00 per share consisting of approximately 1% of the warrants until August 2024, and approximately 99% until February 2026; (4) warrants to purchase 77,500 shares of Common Stock at an exercise price of $2.40 until September 2024, and (5) warrants to purchase 386,311 shares of Common Stock at an exercise price of $2.63 until November 2025.

We valued warrants and Common Stock purchase options issued for services at their respective grants dates during the years ended March 31, 2024, 2023, and 2022 using valuation methods and assumptions that consider, among other factors, the fair value of the underlying stock, risk free interest rate, volatility, and expected life.


	March 31, 2024			March 31, 2023			March 31, 2022
Risk free interest rate		4.1	%		3.9	%		1.2	%
Expected volatility		66.8	%		73.5	%		54.3	%
Expected term	5.8 years			5.0 years			5.0 years
Expected dividend yield		0.00			0.00			0.00

Options Granted

During the year ended March 31, 2023, we granted stock options (“Options”) to purchase 400,000 shares of our Common Stock to our Chief Executive Officer, of which (i) 100,000 Options vested on the July 24, 2023, and (ii) 300,000 Options shall vest in equal quarterly installments of 25,000 over three years beginning on September 30, 2023. The Options shall (a) be exercisable at an exercise price per share equal to the closing market price of the Company’s Common Stock on the date of the grant, (b) have a term of ten years, and (c) be on such other terms as shall be determined by the Board (or the Compensation Committee of the Board) and set forth in a customary form of stock option agreement under the 2017 Plan. We recognized $430,457 in expense related to the Options for year ended March 31, 2024.


Number of Options		400,000
Option Vesting Period	Up to 3 years
Per share grant price	$	2.08
Dividend yield		-
Expected volatility		83.5	%
Risk-free interest rate		4.13	%
Expected life (years)		5.75
Weighted average fair value	$	1.50

The following is a summary of our stock option activity during the year ended March 31, 2024:


	Number of Options		Weighted Average Exercise Price			Weighted Average Grant Date Fair Value			Weighted Average Remaining Life in Years
Outstanding, April 1, 2023		-	$		-	$		-		-
Granted		400,000			2.08			1.50		10.00
Exercised		-			-			-		-
Canceled/Forfeited		-			-			-		-
Outstanding, March 31, 2024		400,000	$	2.08		$	1.5			9.32

As of March 31, 2024, there was $172,663 of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over a weighted average vesting period of approximately 2.25 years. As of March 31, 2024, there were 225,000 unvested stock options with a grant date fair value of $1.50.

Stock Awards

We issued 772,450 shares valued at $1,631,701 for services and equipment provided to the Company in the year ended March 31, 2022.

A summary of stock award activity for the year ended March 31, 2024 is as follows:


	Number of Shares			Weighted-Average Grant-Date Fair Value Per Share
Outstanding at April 1, 2023		2,204,659		$	3.68
Granted		2,579,901			2.22
Vested		(1,371,849	)		2.94
Forfeited		(1,872,186	)		2.82
Outstanding at March 31, 2024		1,540,525		$	2.93

A summary of stock award activity for the year ended March 31, 2023 is as follows:


	Number of Shares			Weighted-Average Grant-Date Fair Value Per Share
Outstanding at April 1, 2022		2,795,017		$	5.79
Granted		2,102,840			2.93
Vested		(573,750	)		7.24
Forfeited		(2,119,448	)		4.76
Outstanding at March 31, 2023		2,204,659		$	3.68

A summary of stock award activity for the year ended March 31, 2022 is as follows:


	Number of Shares			Weighted-Average Grant-Date Fair Value Per Share
Outstanding at April 1, 2021		1,973,004		$	3.94
Granted		3,347,200			6.56
Vested		(299,167	)		1.98
Forfeited		(2,226,020	)		5.82
Outstanding at March 31, 2022		2,795,017		$	5.79

As of March 31, 2024, there was $4,510,650 of unrecognized compensation expense related to unvested stock awards which is expected to be recognized over a weighted-average period of approximately 2.41 years.

As of March 31, 2023, there was $8,104,771 of unrecognized compensation expense related to unvested stock awards which is expected to be recognized over a weighted-average period of approximately 2.74 years.

As of March 31, 2022, there was $16,197,207 of unrecognized expense related to unvested stock awards which is expected to be recognized over a weighted-average period of approximately 2.40 years.

The entire disclosure for equity.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

PREFERRED STOCK

12 Months Ended

Mar. 31, 2024

Equity [Abstract]

PREFERRED STOCK

NOTE 14 – PREFERRED STOCK

On May 18, 2021, the Company filed a Certificate of Designations (the “Certificate of Designations”) with the Secretary of State of the State of Delaware to establish the preferences, voting powers, limitations as to dividends or other distributions, qualifications, terms and conditions of redemption and other terms and conditions of the Series A Preferred Stock.

The Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”), as to dividend rights and rights as to the distribution of assets upon the Company’s liquidation, dissolution or winding-up, ranks: (1) senior to all classes or series of Common Stock and to all other capital stock issued by the Company expressly designated as ranking junior to the Series A Preferred Stock; (2) on parity with any future class or series of the Company’s capital stock expressly designated as ranking on parity with the Series A Preferred Stock; (3) junior to any future class or series of the Company’s capital stock expressly designated as ranking senior to the Series A Preferred Stock; and (4) junior to all the Company’s existing and future indebtedness.

The Series A Preferred Stock has no stated maturity and is not subject to mandatory redemption or any sinking fund. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the holders of shares for the Series A Preferred Stock are entitled to be paid out of the Company’s assets legally available for distribution to its stockholders (i.e., after satisfaction of all the Company’s liabilities to creditors, if any) an amount equal to $25.00 per share of the Series A Preferred Stock, plus any amount equal to any accumulated and unpaid dividends to the date of payment before any distribution or payment may be made to holders of shares of Common Stock or any other class of or series of the Company’s capital stock ranking, as to rights to the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up, junior to the Series A Preferred Stock.

The Company will pay cumulative cash dividends on the Series A Preferred Stock when, as and if declared by its Board of Directors (or a duly authorized committee of its Board of Directors), only out of funds legally available for payment of dividends. Dividends on the Series A Preferred Stock will accrue on the stated amount of $25.00 per share of the Series A Preferred Stock at a rate per annum equal to 8.75% (equivalent to $2.1875 per year), payable quarterly in arrears. Dividends on the Series A Preferred Stock declared by our Board of Directors (or a duly authorized committee of our Board of Directors) will be payable quarterly in arrears on March 15, June 15, September 15, and December 15.

Generally, the Series A Preferred Stock is not redeemable by the Company prior to May 18, 2026. However, upon a change of control or de-listing event (each as defined in the Certificate of Designations), the Company will have a special option to redeem the Series A Preferred Stock for a limited period of time.

On May 19, 2021, we entered into an underwriting agreement (the “Underwriting Agreement”) with Alexander Capital, L.P., as representative of several underwriters (collectively, the “Underwriters”), relating to a firm commitment public offering of 1,097,200 newly issued shares of our Series A Preferred Stock at a public offering price of $25.00 per share. Under the terms of the Underwriting Agreement, we granted the Underwriters a 45-day option to purchase up to an additional 164,580 shares of Series A Preferred Stock from us. The gross proceeds to us from the sale of 1,097,200 shares of Series A Preferred Stock, before deducting underwriting discounts and commissions and estimated offering expenses payable by us, was $27,430,000. The closing of the offering took place on May 21, 2021.

On May 25, 2021, we entered into an additional underwriting agreement with Alexander Capital, L.P. relating to a firm commitment public offering of 138,220 newly issued shares of our Series A Preferred Stock at a public offering price of $25.00 per share. The closing of the offering took place on May 27, 2021. The gross proceeds to us from the sale of 138,220 shares of Series A Preferred Stock, before deducting underwriting discounts and commissions and estimated offering expenses payable by us, were $3,455,500. Additionally, the Underwriters exercised its previously announced over-allotment option to purchase 164,580 shares of Series A Preferred Stock pursuant to the Underwriting Agreement. We closed the exercise of the over-allotment option on May 27, 2021. The gross proceeds from the exercise of the over-allotment option were $4,114,500, before deducting underwriting discounts and commissions.

The following is a summary of the dividends paid on the Series A Preferred Stock in the year ended March 31, 2024:

       Dividend
Declaration
Date

       Record
Date

       Dividend
Period

       Dividend
Payment
Date

       Dividend
Amount

       Per Share
Amount

May 15, 2023

May 31, 2023

March 15, 2023 - June 14, 2023

June 15, 2023

$

782,639

$

0.55902778

August 15, 2023

August 31, 2023

June 15, 2023 - September 14, 2023

September 15, 2023

782,639

0.55902778

November 15, 2023

November 30, 2023

September 15, 2023 - December 14, 2023

December 15, 2023

774,132

0.55295140

February 6, 2024

February 29, 2024

December 15, 2023 - March 14, 2024

March 15, 2024

774,132

0.55295140

Preferred dividends accumulated as of March 31, 2024 were $144,618.

The following is a summary of the dividends paid on the Series A Preferred Stock in the year ended March 31, 2023:

       Dividend
Declaration
Date

       Record
Date

       Dividend
Period

       Dividend
Payment
Date

       Dividend
Amount

       Per Share
Amount

May 12, 2022

May 31, 2022

March 15, 2022 - June 14, 2022

June 15, 2022

$

782,639

$

0.55902778

August 17, 2022

August 31, 2022

June 15, 2022 - September 14, 2022

September 15, 2022

782,639

0.55902778

November 18, 2022

November 30, 2022

September 15, 2022 - December 14, 2022

December 15, 2022

774,132

0.55295140

February 17, 2023

February 28, 2023

December 15, 2022 - March 14, 2023

March 15, 2023

765,625

0.54687500

Preferred dividends accumulated as of March 31, 2023 were $144,618.

The following is a summary of the dividends paid on the Series A Preferred Stock in the year ended March 31, 2022:

       Dividend
Declaration
Date

       Record
Date

       Dividend
Period

       Dividend
Payment
Date

       Dividend
Amount

       Per Share
Amount

August 17, 2021

August 31, 2021

May 21, 2021 - June 30, 2021

September 15, 2021

$

337,745

$

0.24124653

November 17, 2021

November 30, 2021

July 1, 2021 - December 14, 2021

December 15, 2021

1,420,700

1.01475694

February 18, 2022

February 28, 2022

December 15, 2021 - March 14, 2022

March 15, 2022

765,642

0.54687500

Preferred dividends accumulated as of March 31, 2022 were $144,562.

ACQUISITIONS

12 Months Ended

Mar. 31, 2024

ACQUISITIONS

NOTE 16 – ACQUISITIONS

Gemini Direct Investments, LLC

On April 30, 2021 (the “Merger Effective Date”) we entered into an agreement and plan of merger (the “Merger Agreement”), by and among the Company, SpeedLight Group I, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (“Sub”), Gemini Direct Investments, LLC, a Nevada limited liability company (“Gemini”), and Steven F. Urvan, an individual (the “Seller”), whereby Sub merged with and into Gemini, with Sub surviving the merger as a wholly owned subsidiary of the Company (the “Merger”). At the time of the Merger, Gemini had nine (9) subsidiaries, all of which are related to Gemini’s ownership of the GunBroker business. GunBroker is an on-line auction marketplace dedicated to firearms, hunting, shooting, and related products. The Merger was completed on the Merger Effective Date.

In consideration of the Merger, on the terms and subject to the conditions set forth in the Merger Agreement, on the Merger Effective Date, (i) the Company assumed and repaid an aggregate amount of indebtedness of Gemini and its subsidiaries equal to $50,000,000 (the “Assumed Indebtedness”); and, (ii) the issued and outstanding membership interests in Gemini (the “Membership Interests”), held by the Seller, automatically converted into the right to receive (A) $50,000,000 (the “Cash Consideration”), and (B) 20,000,000 shares of Common Stock of the Company, $0.001 par value per share (the “Stock Consideration”).

In connection with the Merger Agreement, the Company and the Seller agreed that the Stock Consideration consisted of: (a) 14,500,000 shares issued without being held in escrow or requiring prior stockholder approval; (b) 4,000,000 shares issued subject to the Pledge and Escrow Agreement; and (c) 1,500,000 shares that will not be issued prior to the Company obtaining stockholder approval for the issuance (the “Additional Securities”).

The total estimated consideration consisted of cash payment of $50,000,000 less $1,350,046 of acquired cash, a working capital adjustment of $2,000,000, debt assumption and repayment upon closing of $50,000,000, contingent consideration of $10,755,000 for 1,500,000 Additional Securities, and 18,500,000 shares of Common Stock. The shares were valued at $7.17 per share, the five-day average closing price of the Company’s Common Stock immediately preceding the signing of the binding agreement.

Pursuant to the Merger Agreement, the Company completed a Post-Closing Adjustment following the close of the Merger equal to the Closing Working Capital minus the Estimated Working Capital at closing of the Merger. Accordingly, the Company received a cash payment of $129,114 and adjusted the $2,000,000 Estimated Working Capital Adjustment in the fair value of the consideration transferred to $1,870,886.

In accordance with the acquisition method of accounting for business combinations, the assets acquired, and the liabilities assumed have been recorded at their respective fair values. The consideration in excess of the fair values of assets acquired, and liabilities assumed are recorded as goodwill, which we expect to be deductible for tax purposes. The goodwill consists largely of the growth and profitability expected from this Merger.

The fair value of the consideration transferred was valued as follows:


Cash	$	48,649,954
Working capital adjustment		1,870,886
Contingent consideration		10,755,000
Common stock		132,645,000
Assumed debt		50,000,000

Fair value of consideration transferred	$	243,920,840

The allocation for the consideration recorded for the acquisition is as follows:


Accounts receivable, net	$	17,002,362
Prepaid expenses		478,963
Equipment		1,051,980
Deposits		703,389
Other intangible assets(1)		146,617,380
Goodwill		90,870,094
Right of use assets - operating leases		612,727
Accounts payable		(12,514,919	)
Accrued expenses		(196,780	)
Operating lease liability		(704,356	)

Total Consideration	$	243,920,840

(1)

Other intangible assets consist of Tradenames, Customer Relationships, Intellectual Property, and other tangible assets related to the acquired business.

We recorded approximately $1.3 million in transaction costs in the year ended March 31, 2022 related to the Merger.

Unaudited Pro Forma Results of Operations

These pro forma results of operations give effect to the Merger as if it had occurred on April 1, 2021. Material pro forma adjustments include the removal of approximately $1.8 million of interest expenses and debt discount amortization and the addition of approximately $0.9 million of depreciation and amortization expenses.


INCOME STATEMENT DATA	For the Year Ended March 31, 2022
Net revenues	$	248,314,587
Net income	$	37,793,924

The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and is not necessarily indicative of the results of operations and financial position that would have been achieved had the Merger been completed and taken place on the dates indicated or the future consolidated results of operations or financial position of the Company.

ACCRUED LIABILITIES

12 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

ACCRUED LIABILITIES

NOTE 17 – ACCRUED LIABILITIES

At March 31, 2024, March 31, 2023, and March 31, 2022, accrued liabilities were as follows:


	March 31, 2024		March 31, 2023		March 31, 2022
	(Restated)		(Restated)		(Restated)
Accrued federal excise tax	$	1,145,937	$	1,808,065	$	2,408,318
Accrued bonus program		1,185,877		-		-
Accrued professional fees		1,134,368		736,323		66,000
Accrued payroll		964,661		430,344		458,027
Other accruals		417,496		618,243		357,616
Income taxes payable		394,133		438,517		1,784,266
Unearned revenue		1,822,972		101,593		201,891
Accrued sales commissions		-		252,366		932,712
Accrued interest		-		2,681		4,762
Accrued liabilities	$	7,065,444	$	4,388,132	$	6,213,592

RELATED PARTY TRANSACTIONS (AS RESTATED)

12 Months Ended

Mar. 31, 2024

NOTE 18 – RELATED PARTY TRANSACTIONS (AS RESTATED)

During the year ended March 31, 2024, we paid $410,173 in service fees to two independent contractors consisting of a $244,640 payment due upon termination without cause. The two independent contractors were issued 168,581 shares of Common Stock for a total value of $449,370, which consisted of an issuance of 134,240 shares due upon termination without cause. We issued 25,000 shares in the aggregate to our advisory committee members for service for a total value of $43,240. Through our acquisition of Gemini, a related party relationship was created through one of our Members of the Board of Directors by ownership of entities that transacts with Gemini. There was $201,646 included in our Accounts Receivable at March 31, 2024 as a result of this relationship. Additionally, we owed $150,866 to Jagemann Precision Tooling, a division of JSC, at March 31, 2024.

On July 24, 2023, Fred Wagenhals departed as CEO and the Board appointed Mr. Wagenhals the Company’s Executive Chairman. Mr. Wagenhals received the following payments in connection with his transition from CEO to Executive Chairman: (i) total cash payments of $1,060,290; (ii) 300,000 shares of Common Stock for a total value of $639,000.

On July 26, 2023, we obtained a $1.6 million letter of credit with Northern Trust for collateral for a bond related to a judgment assessed to GunBroker. On July 17, 2023, we generated a $1.6 million certificate of deposit with Northern Trust for security on the letter of credit. The term of the certificate of deposit is twelve months and includes interest of approximately 5%. Per the terms of the Merger Agreement, the Seller is required to pay or be liable for these losses.

In July of 2023, the Company filed suit in the Delaware Chancery Court against director and the Company's largest shareholder Steve Urvan for claims arising out of the Company’s acquisition of certain companies referenced as the GunBroker family of companies. The Company alleges that Mr. Urvan’s repeatedly failed and refused to honor contractual defense and indemnification obligations arising under that certain Merger Agreement, along with alleged misrepresentations.

On November 3, 2022, the Company entered into a Settlement Agreement (the “2022 Urvan Settlement Agreement”) with Steven F. Urvan and Susan T. Lokey (collectively with each of their respective affiliates and associates, the “Urvan Group”).

Pursuant to the 2022 Urvan Settlement Agreement, the Urvan Group has agreed to withdraw its notice of stockholder nomination of its seven director candidates (the “Urvan Candidates”) and its demand to inspect books and records, pursuant to Section 220 of the General Corporation Law of the State of Delaware, and the Company agreed to immediately increase the size of the Board from seven to nine directors and appoint Christos Tsentas and Wayne Walker (each, a “New Director” and the New Directors together with Mr. Urvan, the “Urvan Group Directors”) to the Board to serve as directors with terms expiring at the 2022 Annual Meeting of Stockholders (the “2022 Annual Meeting”). The Company will include the Urvan Group Directors in its director candidates slate for the 2022 Annual Meeting and any subsequent Annual Meeting of Stockholders of the Company occurring prior to the Termination Date (as defined below). The Company has agreed to not increase the size of the Board above nine directors prior to the Termination Date unless the increase is approved by at least seven directors. Mr. Wagenhals will continue to serve as a director and Chairman of the Board.

Unless otherwise mutually agreed to in writing by each party, the 2022 Urvan Settlement Agreement will remain in effect until the date that is the earlier of (i) 30 days prior to the earlier of (A) the deadline set forth in the notice requirements of Federal “Universal Proxy Rules” promulgated under Rule 14a-19(a) and Rule 14a-19(b) under the Securities Exchange Act of 1934, as amended (the “UPR Deadline”) relating to the Company’s 2023 Annual Meeting of Stockholders (the “2023 Annual Meeting”) and (B) any deadline that may be set forth in the Company’s Amended and Restated Certificate of Incorporation (as amended from time to time, the “Certificate”) or Bylaws (the “Bylaws”) following the execution of the 2022 Urvan Settlement Agreement relating to the nomination of director candidates for election to the Board at the 2023 Annual Meeting, and (ii) 90 days prior to the first anniversary of the 2022 Annual Meeting (such date, the “Termination Date”). However, if the Company notifies Mr. Urvan in writing at least 15 days prior to such Termination Date that the Board irrevocably offers to re-nominate the Urvan Group Directors for election at the 2023 Annual Meeting and Mr. Urvan accepts such offer within 15 days of receipt of such notice, the Termination Date will be automatically extended until the earlier of (i) 30 days prior to the earlier of (A) the UPR Deadline relating to the Company’s 2024 Annual Meeting of Stockholders (the “2024 Annual Meeting”) and (B) any deadline that may be set forth in the Certificate or the Bylaws following execution of the 2022 Urvan Settlement Agreement relating to the nomination of director candidates for election to the Board at the 2024 Annual Meeting, and (ii) 90 days prior to the first anniversary of the 2023 Annual Meeting. Notwithstanding the foregoing, the “Termination Date” shall not occur prior to 20 days after Mr. Urvan’s departure from the Board. Pursuant to the 2022 Urvan Settlement Agreement, the Urvan Group agreed to certain standstill provisions effective during the period prior to the Termination Date. The Urvan Group agreed not to, among others, (i) nominate, recommend for nomination or give notice of an intent to nominate directors to be elected, (ii) seek to amend the certificate of incorporation or bylaws of the Company, (iii) demand an inspection of the Company’s books and records or (iv) knowingly initiate, make or in any way participate, directly or indirectly, incertain extraordinary transaction. The Company paid approximately $500,000 of the Urvan Group’s costs, fees and expenses per the terms of the 2022 Urvan Settlement Agreement.

Pursuant to the 2022 Urvan Settlement Agreement, the Company will agree to suspend the previously announced separation of Company into Action Outdoor Sports, Inc. and Outdoor Online, Inc., pending the further evaluation of strategic options by the Board. The Company paid approximately $500,000 of the Urvan Group’s costs, fees, and expenses per the terms of the 2022 Urvan Settlement Agreement. Additionally, the Company issued 125,000 shares of Common Stock for a total value of $777,500 to an employee and issued 110,000 shares of Common Stock for a total value of $259,000 to an independent contractor as a result of termination without cause per the terms of the 2022 Urvan Settlement Agreement.

The foregoing summary of the 2022 Urvan Settlement Agreement does not purport to be complete and is subject to, and qualified in its entirety, by reference to the full text of the 2022 Urvan Settlement Agreement, a copy of which was previously filed as Exhibit 10.1 in the Form 8-K filed with the SEC on November 7, 2022, and incorporated herein by reference.

During the year ended March 31, 2023, we paid $551,916 in service fees to two independent contractors of which $223,333 were created as a result of termination without cause as a result of our Proxy Settlement Agreement. The two independent contractors were issued 141,419 shares of our Common Stock for a total value of $791,384 in addition to the issuances described in the foregoing paragraphs. We issued 45,000 shares in the aggregate to its advisory committee members for service for a total value of $245,250.

During the year ended March 31, 2022, we paid $229,083 in service fees to an independent contractor and we issued 60,000 shares in the aggregate to its advisory committee members for service for a total value of $198,000. Through our acquisition of Gemini, a related party relationship was created through Mr. Urvan's ownership of an entity that transacts with Gemini. At March 31, 2022, 2023, and 2024 there $139,164, $182,344, and 201,646 respectively, included in the accounts receivable related to business included in our Accounts Receivable at March 31, 2022 as a result of this relationship.

During the year ended March 31, 2022, the Company paid $50,698 to a third-party service provider owned by an immediate family member of Fred Wagenhals, who was the Company's Chief Executive Officer and Chairman of the Board of Directors at the time, for services rendered.

In December 2020, the Company entered into an agreement with Larson Building to serve as the general contractor for the construction of its Manitowoc, WI manufacturing facility. Larson Building is wholly owned by the brother of Chris Larson, who was an executive officer of the Company at the time. During the years ended March 31, 2023 and 2022, the Company paid $14,584,805 and $11,221,738, respectively, to Larson Building in connection with this project.

After the initial filings of the Company’s Form 10-Ks for the years ended March 31, 2024, 2023 and 2022, the Company was made aware that Chris Larson had received undisclosed payments totaling $814,863 from a vendor from which the Company received services. The payments were made by a third-party service provider. This third-party made payments to Mr. Larson from approximately January 2022 through March 2024 based upon a percentage of revenue received in connection with services rendered to the Company. Mr. Larson separated as an employee from the Company effective November 4, 2022 and was later engaged as a contractor for approximately six months.

Through the Administrative and Management Services Agreement between the Company and JSC, the Company purchased approximately $2.0 million in inventory support services, and incurred $170,355 of rent expenses for the year ended March 31, 2023. The Company purchased approximately $1.7 million in inventory support services, and incurred $408,852 of rent expenses for the year ended March 31, 2022.

See Note 12 for further discussion of related party transactions with JSC.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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INCOME TAXES

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 19 – INCOME TAXES

The income tax (provision) benefit for the periods shown consist of the following:


	For the year ended March 31,
	2024		2023			2022
	(Restated)		(Restated)			(Restated)
Current
US Federal	$	-	$	-		$	(2,628,241	)
US State		-		-			(765,545	)
Total current provision		-		-			(3,393,786	)
Deferred
US Federal		2,986,152		(492,171	)		(6,675,540	)
US State		819,966		(220,068	)		(1,374,865	)
Total deferred benefit		3,806,118		(712,239	)		(8,050,405	)
Change in valuation allowance		-		-			9,401,273
Income tax (provision) benefit	$	3,806,118	$	(712,239	)	$	(2,042,918	)

The reconciliation of income tax expense computed at the U.S. federal statutory rate of 21% to the income tax provision is as follows:


	For the Year Ended March 31,
	2024				2023				2022
	(Restated)				(Restated)				(Restated)
U.S. Federal		21.0		%		21.0		%		21.0		%
State taxes, net of Federal income tax benefit		5.6		%		6.0		%		5.7		%
Change in valuation allowance		0.0		%		0.0		%		(33.7	)	%
Employee stock awards		(7.4	)	%		(33.3	)	%		7.0		%
Equity issuance costs		0.0		%		0.0		%		6.2		%
Stock and warrants on note conversion		0.0		%		(1.9	)	%		1.4		%
Stock for services		0.0		%		0.0		%		0.0		%
Non-deductible meals and entertainment		(0.1	)	%		(0.4	)	%		0.1		%
Contingent consideration fair value		0.1		%		0.2		%		(0.4	)	%
Return to provision		0.0		%		0.0		%		0.0		%
Other		(0.4	)	%		(0.3	)	%		0.0		%
Total provision for income taxes		18.7		%		(8.8	)	%		7.3		%

The Company’s effective tax rates were 18.7%, (8.8%), and 7.3% for the years ended March 31, 2024, 2023 and 2022, respectively. Prior to the year ended March 31, 2022, we accumulated net operating losses in the amount of $61.5 million. These net operating losses created a deferred tax asset which carried a valuation allowance due to uncertainty regarding the timing and ability of the Company to utilize such losses against current income. During the year ended March 31, 2023, the Company generated significant taxable income which consumed $32.3 million of net operating loss carryforwards. This caused the release of the valuation allowance in the amount of $9.4 million. The release of the valuation allowance reduced tax expense and had a direct impact on the tax rate in the

year ended March 31, 2022. During the years ended March 31, 2024 and 2023, the effective tax rate differed from the U.S. federal statutory rate primarily due to employee stock awards.

Significant components of the Company’s deferred tax liabilities and assets are as follows:


	As of March 31,
	2024			2023			2022
Deferred tax assets	(Restated)			(Restated)			(Restated)
Net operating loss carryforward	$	5,229,409		$	731,597		$	—
Loss on purchase		2,215,611			2,210,878			2,225,477
Amortization		(1,029,565	)		(52,658	)		887,892
Bad debt allowance		973,565			860,314			814,967
Other		297,195			(137,835	)		(335,847	)
Total deferred tax assets	$	7,686,215		$	3,612,296		$	3,592,489

Deferred tax liabilities
Depreciation expense	$	(3,580,271	)	$	(3,510,041	)	$	(3,082,977	)
Sec 263A	$	1,001,457		$	1,191,918		$	1,302,919
True up	$	(699,910	)	$	(698,417	)	$	(461,563	)
Other		—			—			—
Total deferred tax liabilities	$	(3,278,724	)	$	(3,016,540	)	$	(2,241,621	)
Net deferred tax assets/(liabilities)	$	4,407,491		$	595,756		$	1,350,868
Valuation allowance		—			—			—
Net deferred tax assets/(liabilities)	$	4,407,491		$	595,756		$	1,350,868

The Company accounts for uncertain tax positions in accordance with ASC No. 740-10-25. ASC No. 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC No. 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. To the extent that the final tax outcome of these matters is different than the amount recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. ASC No. 740-10-25 also requires management to evaluate tax positions taken by the Company and recognize a liability if the Company has taken uncertain tax positions that more likely than not would not be sustained upon examination by applicable taxing authorities.

The Company has evaluated tax positions taken by the Company as of March 31, 2024, 2023 and 2022 in accordance with the recognition and measurement framework within ASC No. 740-10, and has concluded that the benefits associated with certain tax positions should not be recognized on the financial statements. As such, the Company has recorded an additional income tax payable on the consolidated balance sheet of $1.6 million as of March 31, 2024, 2023 and 2022. Included within this amount is accrued penalties and interest of $0.3 million. The Company records penalties and interest associated with uncertain tax positions as a component of income tax expense.

The Company has never had an Internal Revenue Service audit; therefore, the tax periods ended December 31, 2016, December 31, 2017 and March 31, 2018, 2019, 2020, 2021, 2022, 2023, and 2024 are subject to audit.

The entire disclosure for income tax.

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Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Mar. 31, 2024

GOODWILL AND INTANGIBLE ASSETS

NOTE 20 – GOODWILL AND INTANGIBLE ASSETS

During the year ended March 31, 2022, we recorded $90,870,094 of goodwill generated from our Merger with Gemini. The balance of goodwill at March 31, 2024 and 2023 was $90,870,094. We did not have any goodwill prior to the year ended March 31, 2022.

Total amortization expense of our intangible assets was $12,968,491, $13,114,325, and $13,143,168 for the years ended March 31, 2024, 2023, and 2022, respectively. During the year ended March 31, 2024, we disposed of an intangible asset resulting in a loss of $108,333, which is reflected in other (expense) income on the consolidated statement of operations.

Intangible assets consisted of the following:


		March 31, 2024
	Life	Licenses			Patent			Other Intangible Assets
		(Restated)			(Restated)			(Restated)
Licensing Agreement – Jesse James	5	$	125,000		$	-		$	-
Licensing Agreement – Jeff Rann	5		250,000			-			-
Streak Visual Ammunition patent	11.2		-			950,000			-
SWK patent acquisition	15		-			6,652,005			-
Jagemann Munition Components:
Customer Relationships	3		-			-			1,450,613
Intellectual Property	3		-			-			1,543,548
Tradename	5		-			-			2,152,076
GDI Acquisition:
Tradename	15		-			-			76,532,389
Customer List	10		-			-			65,252,802
Intellectual Property	10		-			-			4,224,442
Other Intangible Assets	5		-			-			357,747
			375,000			7,602,005			151,513,617

Accumulated amortization – Licensing Agreements			(375,000	)		-			-
Accumulated amortization – Patents			-			(2,845,999	)		-
Accumulated amortization – Intangible Assets			-			-			(40,464,550	)
		$	-		$	4,756,006		$	111,049,067


		March 31, 2023
	Life	Licenses			Patent			Other Intangible Assets
		(Restated)			(Restated)
Licensing Agreement – Jesse James	5	$	125,000		$	-		$	-
Licensing Agreement – Jeff Rann	5		250,000			-			-
Streak Visual Ammunition patent	11.2		-			950,000			-
SWK patent acquisition	15		-			6,652,005			-
Jagemann Munition Components:
Customer Relationships	3		-			-			1,450,613
Intellectual Property	3		-			-			1,543,548
Tradename	5		-			-			2,152,076
GDI Acquisition:
Tradename	15		-			-			76,532,389
Customer List	10		-			-			65,252,802
Intellectual Property	10		-			-			4,224,442
Other Intangible Assets	5		-			-			607,747
			375,000			7,602,005			151,763,617

Accumulated amortization – Licensing Agreements			(375,000	)					-
Accumulated amortization – Patents			-			(2,305,251	)		-
Accumulated amortization – Intangible Assets			-			-			(28,036,807	)
		$	-		$	5,296,754		$	123,726,810


		March 31, 2022
	Life	Licenses			Patent			Other Intangible Assets
		(Restated)			(Restated)
Licensing Agreement – Jesse James	5	$	125,000		$	-		$	-
Licensing Agreement – Jeff Rann	5		250,000			-			-
Streak Visual Ammunition patent	11.2		-			950,000			-
SWK patent acquisition	15		-			6,652,005			-
Jagemann Munition Components:
Customer Relationships	3		-			-			1,450,613
Intellectual Property	3		-			-			1,543,548
Tradename	5		-			-			2,152,076
GDI Acquisition:
Tradename	15		-			-			76,532,389
Customer List	10		-			-			65,252,802
Intellectual Property	10		-			-			4,224,442
Other Intangible Assets	5		-			-			607,747
			375,000			7,602,005			151,763,617

Accumulated amortization – Licensing Agreements			(375,000	)		-			-
Accumulated amortization – Patents			-			(1,764,503	)		-
Accumulated amortization – Intangible Assets			-			-			(15,463,230	)
		$	-		$	5,837,502		$	136,300,387

Annual estimated amortization of intangible assets for the next five fiscal years are as follows:


Years Ended March 31,	Estimates for Fiscal Year
2025	$	12,697,926
2026		12,662,059
2027		12,596,472
2028		12,590,510
2029		12,555,076
Thereafter		52,703,030
	$	115,805,073

SEGMENTS

12 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENTS

NOTE 21 – SEGMENTS

On April 30, 2021, the Company entered into the Merger Agreement with Gemini, which, along with its subsidiaries, engages primarily in the operation of an online marketplace dedicated to firearms, hunting, shooting and related products. As a result, at March 31, 2024, our Chief Executive Officer reviews financial performance based on two operating segments as follows:

•

Ammunition – which consists of our manufacturing business. The Ammunition segment engages in the design, production and marketing of ammunition, ammunition component and related products.

•

Marketplace – which consists of the GunBroker E-commerce marketplace. In its role as an auction site, GunBroker supports the lawful sale of firearms, ammunition, and hunting/shooting accessories.

The following tables set forth certain financial information utilized by management to evaluate our operating segments for the annual periods presented:


	For the Year Ended March 31, 2024
	Ammunition			Marketplace		Corporate and other expenses			Total
	(As Restated)
Net Revenues	$	91,112,496		$	53,942,076	$	-		$	145,054,572
Cost of Revenues		94,818,546			7,660,541		-			102,479,087
General and administrative expense		8,967,456			9,885,131		29,800,768			48,653,355
Depreciation and amortization		508,485			13,034,306		-			13,542,791
Income/(Loss) from Operations	$	(13,181,991	)	$	23,362,098	$	(29,800,768	)	$	(19,620,661	)


	For the Year Ended March 31, 2023
	Ammunition			Marketplace		Corporate and other expenses			Total
	(As Restated)
Net Revenues	$	128,290,128		$	63,149,673	$	-		$	191,439,801
Cost of Revenues		126,961,549			9,116,939		-			136,078,488
General and administrative expense		10,378,456			9,707,425		29,444,236			49,530,117
Depreciation and amortization		578,326			12,700,436		-			13,278,762
Income/(Loss) from Operations	$	(9,628,203	)	$	31,624,873	$	(29,444,236	)	$	(7,447,566	)


	For the Year Ended March 31, 2022
	Ammunition		Marketplace		Corporate and other expenses			Total
	(As Restated)
Net Revenues	$	175,660,650	$	64,608,516	$	-		$	240,269,166
Cost of Revenues		142,820,590		8,732,351		-			151,552,941
General and administrative expense		11,932,720		8,434,308		26,098,079			46,465,107
Depreciation and amortization		1,602,695		12,122,370		-			13,725,065
Income/(Loss) from Operations	$	19,304,645	$	35,319,487	$	(26,098,079	)	$	28,526,053

Total assets by segment were as follows:


	For the Year Ended
	March 31, 2024		March 31, 2023		March 31, 2022
Ammunition	$	167,001,641	$	154,904,363	$	161,967,259
Marketplace		236,037,694		258,290,780		253,873,206
	$	403,039,335	$	413,195,143	$	415,840,465

Total capital expenditures by segment were as follows:


	For the Year Ended
	March 31, 2024		March 31, 2023		March 31, 2022
Ammunition	$	5,519,135	$	10,819,177	$	17,728,023
Marketplace		2,505,630		1,722,148		1,490,959
	$	8,024,765	$	12,541,325	$	19,218,982

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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