14 unchanged sentences
Fiscal Year ended June 30, 2023 Compared to the Fiscal Year Ended June 30, 2022
−Removed: The net sales increase of 14% in fiscal 2022 from fiscal 2021 consists of a 22% increase in sales of Liberator products, a 22% increase in Jaxx products, offset, in part, by a 21% decrease in sales of Avana products and 9% decrease in products purchased for resale.
−Removed: Sales of Liberator products increased 22% from the prior year to approximately $12.0 million during fiscal 2022, and sales of Jaxx products increased 22% during fiscal 2022 to approximately $8.3 million.
+Added: The net sales increase of 11% in fiscal 2023 from fiscal 2022 consists of a 48% increase in sales of Liberator products, offset, in part, by a 16% decrease in Jaxx products, a 23% decrease in sales of Avana products and 28% decrease in products purchased for resale.
+Added: Sales of Liberator products increased 48% from the prior year to approximately $17.8 million during fiscal 2023.
+Added: Sales of Jaxx products decreased 16% during fiscal 2023 to approximately $6.9 million.
Sales of Avana products decreased 23% to $2.2 million during fiscal 2023.
6 unchanged sentences
Gross profit, derived from net sales less the cost of product sales, includes the cost of materials, direct labor, manufacturing overhead and depreciation.
−Removed: Total gross profit as a percentage of sales for the year ended June 30, 2022 decreased to 23% from 27% in the prior year, primarily due to higher labor and raw material costs.
−Removed: Gross profit dollars decreased to $6,001,000 from $6,301,000 in the prior year and represented a 5% decrease.
−Removed: Price increases that were implemented during the second half of fiscal 2022 partially offset the labor and material cost increases;
−Removed: further selling price increases are being implemented.
−Removed: The Company also continued transitioning the sewing of certain high-volume Jaxx and Avana products to a contract facility in Mexico which, during fiscal 2022, produced approximately 35% of our sewn products and reduced our total cost of production for those products.
+Added: Total gross profit as a percentage of sales for the year ended June 30, 2023 increased to 25% from 23% in the prior year.
+Added: Gross profit dollars increased to $7,192,000 from $6,001,000 in the prior year and represented a 21% increase.
+Added: The Company also continued to implement cost reduction strategies like transitioning the sewing of certain high-volume Jaxx and Avana products to a contract facility in Mexico which, during fiscal 2023, produced approximately 30% of our sewn products and reduced our total cost of production for those products.
Operating expenses.
2 unchanged sentences
Other income (expense).
−Removed: Other income (expense) decreased to an expense of ($342,000) from income of $721,000 in the prior fiscal year, primarily due to the 2021 PPP Note forgiveness by the U.S.
−Removed: Small Business Administration of approximately $1,096,000.
−Removed: We had a net income from operations of $604,000, or $0.01 per diluted share, for the year ended June 30, 2022 compared with net income from operations of $2,563,000 or $0.03 per diluted share, for the year ended June 30, 2021.
+Added: Other expense decreased to ($262,000) from expense of ($342,000) in the prior fiscal year.
+Added: We had a net income from operations of $1,282,000, or $0.02 per diluted share, for the year ended June 30, 2023 compared with net income from operations of $604,000 or $0.01 per diluted share, for the year ended June 30, 2022 due to increase in net sales and improvement in gross profit margin, partially offset by increase in operating expenses.
Financial Information about Our Business Sales Channels
28 unchanged sentences
Jaxx products are sold to e-merchants and retailers as well as directly through our e-commerce site.
−Removed: Net sales of Jaxx products increased 22% during the year ended June 30, 2022, compared to the prior year.
−Removed: This increase is primarily due to greater sales of Jaxx indoor and outdoor products to (and through) Amazon and other e-merchants including Wayfair and Overstock and our own e-commerce site, JaxxBeanbags.com.
+Added: Net sales of Jaxx products decreased 16% during the year ended June 30, 2023, compared to the prior year.
+Added: This decrease is primarily due to lower sales of Jaxx indoor and outdoor products.
Avana - The Avana product line is a unique collection of top-of-bed and comfort products that aid in sleep, meditation, and relaxation.
6 unchanged sentences
Other - Other products include sales from contract manufacturing and fulfillment services.
−Removed: Net sales during the year ended June 30, 2022 increased 45% from the prior year.
+Added: Net sales during the year ended June 30, 2023 decreased 25% from the prior year.
Variability of Results
7 unchanged sentences
The following table summarizes our cash flows:
+Added: Year ended June 30,
(in thousands)
5 unchanged sentences
Operating Activities
−Removed: Net cash provided by operating activities primarily consists of the net income adjusted for certain non-cash items, including depreciation, stock-based compensation, PPP loan forgiveness (2021), and the effect of changes in operating assets and liabilities.
−Removed: Net cash provided by operating activities decreased from the prior year due to the net income from operations, offset, in part, by a decrease in inventory.
+Added: Net cash provided by operating activities primarily consists of the net income adjusted for certain non-cash items, including depreciation, stock-based compensation, and the effect of changes in operating assets and liabilities.
+Added: Net cash provided by operating activities increased from the prior year due to the net income from operations, offset, in part, by an increase in inventory.
Investing Activities
−Removed: Cash used in investing activities in the year ended June 30, 2022 was primarily for production equipment purchases, software development work, purchase of computer equipment and in the year ended June 30, 2021 was primarily for software development work, purchase of production equipment, and computer equipment.
+Added: Cash used in investing activities in the year ended June 30, 2023 and June 30, 2022 was primarily for production equipment purchases and software development work.
Financing Activities
−Removed: Cash used in financing activities in the year ended June 30, 2022 was primarily due to repayment of secured and unsecured notes payable and equipment notes payable offset in part by borrowings through unsecured notes payable.
−Removed: Cash provided by financing activities in the year ended June 30, 2021 was primarily due to repayment of secured and unsecured notes payable and equipment notes payable offset in part by borrowings through secured and unsecured notes payable.
+Added: Cash used in financing activities in the year ended June 30, 2023 and June 30, 2022 was primarily due to repayment of secured and unsecured notes payable and equipment notes payable offset in part by borrowings through unsecured notes payable.
During fiscal 2022 and 2023, we experienced increases in various raw material costs and increases in labor costs.
13 unchanged sentences
As of June 30, 2023, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
+Added: We have entered into operating leases primarily for certain equipment and our facilities in the normal course of business.
+Added: These arrangements are often referred to as a form of off-balance-sheet financing.
+Added: Future minimum lease payments under our operating leases as of June 30, 2023 are detailed in the section entitled “Commitments and Contingencies” in the Notes to the Consolidated Financial Statements.
Effect of Recently Issued Accounting Standards and Estimates
66 unchanged sentences
(in thousands)
−Removed: Plus interest expense and financing costs
+Added: Plus interest expense, financing costs and income tax
Plus depreciation and amortization expense
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.