Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Jun. 10, 2024 | Sep. 30, 2023 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Mar. 31, 2024 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2024 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity File Number | 001-13101 | ||
Entity Registrant Name | AMMO, Inc. | ||
Entity Central Index Key | 0001015383 | ||
Entity Tax Identification Number | 83-1950534 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 7681 E Gray Road | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85260 | ||
City Area Code | (480) | ||
Local Phone Number | 947-0001 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 179,118,089 | ||
Entity Common Stock, Shares Outstanding | 119,181,067 | ||
Documents Incorporated By Reference | Part III incorporates information by reference from the definitive proxy statement for the registrant’s 2024 Annual Meeting of Stockholders to be filed within 120 days after the end of the registrant’s fiscal year. | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 342 | ||
Auditor Name | PANNELL KERR FORSTER OF TEXAS, P.C. | ||
Auditor Location | Houston, Texas | ||
Common Stock 0.001 Par Value [Member] | |||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | POWW | ||
Security Exchange Name | NASDAQ | ||
8.75 Series A Cumulative Redeemable Perpetual Preferred Stock 0.001 Par Value [Member] | |||
Title of 12(b) Security | 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.001 par value | ||
Trading Symbol | POWWP | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 55,586,441 | $ 39,134,027 |
Accounts receivable, net | 28,221,321 | 29,346,380 |
Inventories | 45,563,334 | 54,344,819 |
Prepaid expenses | 2,154,170 | 5,126,667 |
Current portion of restricted cash | 500,000 | |
Total Current Assets | 131,525,266 | 128,451,893 |
Equipment, net | 58,082,040 | 55,963,255 |
Other Assets: | ||
Deposits | 349,278 | 7,028,947 |
Patents, net | 4,539,290 | 5,032,754 |
Other intangible assets, net | 111,049,067 | 123,726,810 |
Goodwill | 90,870,094 | 90,870,094 |
Right of use assets - operating leases | 2,000,093 | 1,261,634 |
Deferred income tax asset | 1,487,088 | |
TOTAL ASSETS | 399,902,216 | 412,335,387 |
Current Liabilities: | ||
Accounts payable | 23,156,495 | 18,079,397 |
Accrued liabilities | 7,030,667 | 4,353,354 |
Current portion of operating lease liability | 479,651 | 470,734 |
Note payable related party | 180,850 | |
Current portion of construction note payable | 273,459 | 260,429 |
Insurance premium note payable | 2,118,635 | |
Total Current Liabilities | 30,940,272 | 25,463,399 |
Long-term Liabilities: | ||
Contingent consideration payable | 59,838 | 140,378 |
Construction note payable, net of unamortized issuance costs | 10,735,241 | 10,922,443 |
Operating lease liability, net of current portion | 1,609,836 | 903,490 |
Deferred income tax liability | 2,309,592 | |
Total Liabilities | 43,345,187 | 39,739,302 |
Shareholders’ Equity: | ||
Series A cumulative perpetual preferred Stock 8.75%, ($25.00 per share, $0.001 par value) 1,400,000 shares issued and outstanding as of March 31, 2024 and March 31, 2023, respectively | 1,400 | 1,400 |
Common stock, $0.001 par value, 200,000,000 shares authorized 120,531,507 and 118,562,806 shares issued and 119,181,067 and 118,294,478 outstanding at March 31, 2024 and March 31, 2023, respectively | 119,181 | 118,294 |
Additional paid-in capital | 396,730,170 | 391,940,374 |
Accumulated deficit | (37,620,566) | (18,941,825) |
Treasury Stock | (2,673,156) | (522,158) |
Total Shareholders’ Equity | 356,557,029 | 372,596,085 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 399,902,216 | $ 412,335,387 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Financial Position [Abstract] | ||
Preferred stock, dividend rate percentage | 8.75% | 8.75% |
Preferred stock, stated value per share | $ 25 | $ 25 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 1,400,000 | 1,400,000 |
Preferred stock, shares outstanding | 1,400,000 | 1,400,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 120,531,507 | 118,562,806 |
Common stock, shares outstanding | 119,181,067 | 118,294,478 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Net Revenues | ||||
Total Revenues | $ 145,054,572 | $ 191,439,801 | $ 240,269,166 | |
Cost of Revenues | 102,431,803 | 136,031,204 | 151,505,657 | |
Gross Profit | 42,622,769 | 55,408,597 | 88,763,509 | |
Operating Expenses | ||||
Selling and marketing | 1,370,079 | 4,729,540 | 7,310,216 | |
Corporate general and administrative | 29,583,274 | 24,980,079 | 16,986,344 | |
Employee salaries and related expenses | 16,703,822 | 15,679,135 | 13,615,439 | |
Depreciation and amortization expense | 13,542,791 | 13,278,762 | 13,702,148 | |
Total operating expenses | 61,199,966 | 58,667,516 | 51,614,147 | |
Income/(Loss) from Operations | (18,577,197) | (3,258,919) | 37,149,362 | |
Other Expenses | ||||
Other income | (332,593) | 25,181 | 21,840 | |
Interest expense | (446,473) | (632,062) | (637,797) | |
Total other expense | (779,066) | (606,881) | (615,957) | |
Income/(Loss) before Income Taxes | (19,356,263) | (3,865,800) | 36,533,405 | |
Provision for Income Taxes | (3,791,063) | 730,238 | 3,285,969 | |
Net Income/(Loss) | (15,565,200) | (4,596,038) | 33,247,436 | |
Preferred Stock Dividend | (3,122,049) | (3,105,034) | (2,668,649) | |
Net Income/(Loss) Attributable to Common Stock Shareholders | $ (18,687,249) | $ (7,701,072) | $ 30,578,787 | |
Net Income/(Loss) per share | ||||
Basic | $ (0.16) | $ (0.07) | $ 0.27 | |
Diluted | $ (0.16) | $ (0.07) | $ 0.27 | |
Weighted average number of shares outstanding | ||||
Basic | 118,249,486 | 117,177,885 | 112,328,680 | |
Diluted | 118,249,486 | 117,177,885 | 114,189,720 | |
Ammunition Sales [Member] | ||||
Net Revenues | ||||
Total Revenues | [1],[2] | $ 69,390,801 | $ 114,116,044 | $ 161,459,025 |
Marketplace Fee Revenue [Member] | ||||
Net Revenues | ||||
Total Revenues | 53,942,076 | 63,149,673 | 64,608,516 | |
Ammunition Casings Sales [Member] | ||||
Net Revenues | ||||
Total Revenues | $ 21,721,695 | $ 14,174,084 | $ 14,201,625 | |
[1]Included in revenue for the fiscal year ended March 31, 2024, 2023, and 2022 are excise taxes of $ 6,155,524 9,789,897 6,155,524 9,789,897 14,646,983 |
Consolidated Statements of Op_2
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 Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Total |
Balance at Mar. 31, 2021 | $ 93,100 | $ 202,073,968 | $ (41,819,539) | $ 160,347,529 | ||
Balance, shares at Mar. 31, 2021 | 93,099,967 | |||||
Acquisition stock issuances | $ 20,000 | 142,671,282 | 142,691,282 | |||
Acquisition stock issuances, shares | 20,000,000 | |||||
Common stock issued for exercised warrants | $ 431 | 943,476 | 943,907 | |||
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 | $ 773 | 1,630,928 | 1,631,701 | |||
Common stock issued for services and equipment, shares | 772,450 | |||||
Employee stock awards | $ 1,808 | 5,757,192 | 5,759,000 | |||
Employee stock awards, shares | 1,807,666 | |||||
Stock grants | 252,488 | 252,488 | ||||
Issuance of Series A Preferred Stock, net of issuance costs | $ 1,400 | 31,007,396 | 31,008,796 | |||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 1,400,000 | |||||
Warrants issued for services | 1,090,076 | 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 | 33,247,436 | 33,247,436 | ||||
Balance at Mar. 31, 2022 | $ 1,400 | $ 116,487 | 385,426,431 | (11,240,752) | 374,303,566 | |
Balance, shares at Mar. 31, 2022 | 1,400,000 | 116,485,747 | ||||
Common stock issued for exercised warrants | $ 200 | 101,306 | 101,506 | |||
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 | $ 1,776 | 5,806,003 | 5,807,779 | |||
Employee stock awards, shares | 1,777,294 | |||||
Stock grants | 179,094 | 179,094 | ||||
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 | (4,596,038) | (4,596,038) | ||||
Preferred stock dividend | (2,322,346) | (2,322,346) | ||||
Treasury shares purchased | (268) | (522,158) | $ (522,426) | |||
Treasury shares purchased, shares | (268,328) | |||||
Balance at Mar. 31, 2023 | $ 1,400 | $ 118,294 | 391,940,374 | (18,941,825) | (522,158) | $ 372,596,085 |
Balance, shares at Mar. 31, 2023 | 1,400,000 | 118,294,478 | ||||
Common stock issued for exercised warrants | $ 32 | 76,168 | 76,200 | |||
Common stock issued for exercised warrants, shares | 31,750 | |||||
Employee stock awards | $ 1,938 | 4,080,170 | 4,082,108 | |||
Employee stock awards, shares | 1,936,951 | |||||
Stock grants | 203,000 | 203,000 | ||||
Preferred stock dividends declared | (638,071) | (638,071) | ||||
Dividends accumulated on preferred stock | (144,618) | (144,618) | ||||
Net (income) loss | (15,565,200) | (15,565,200) | ||||
Preferred stock dividend | (2,330,852) | (2,330,852) | ||||
Treasury shares purchased | (1,082) | (2,150,998) | $ (2,152,080) | |||
Treasury shares purchased, shares | (1,082,112) | |||||
Common stock purchase options | 430,457 | $ 430,457 | ||||
Balance at Mar. 31, 2024 | $ 1,400 | $ 119,182 | $ 396,730,169 | $ (37,620,566) | $ (2,673,156) | $ 356,557,029 |
Balance, shares at Mar. 31, 2024 | 1,400,000 | 119,181,067 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | |||
Net Income/(Loss) | $ (15,565,200) | $ (4,596,038) | $ 33,247,436 |
Adjustments to reconcile Net Loss to Net Cash provided by operations: | |||
Depreciation and amortization | 18,813,897 | 17,519,949 | 17,339,093 |
Debt discount amortization | 83,253 | 83,253 | 38,330 |
Employee stock awards | 4,082,108 | 5,807,779 | 5,759,000 |
Stock grants | 203,000 | 179,094 | 252,488 |
Common stock purchase options | 430,457 | ||
Stock for services | 4,200 | ||
Contingent consideration payable fair value | (80,540) | (63,764) | (385,750) |
Allowance for credit losses | 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 |
Warrant issued for services | 213,819 | 718,045 | |
Deferred income taxes | (3,796,680) | 730,238 | 1,536,481 |
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 | 2,852,583 |
Cash flows from investing activities: | |||
Gemini acquisition | (50,517,840) | ||
Purchase of 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 flow 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 |
Common stock issuance costs | (3,199,922) | ||
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) | (28,235,557) |
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 | 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 | 1,302,811 | ||
Non-cash investing and financing activities: | |||
Operating lease liability | 1,214,711 | 901,076 | 809,451 |
Insurance premium note payment | 1,056,199 | 4,252,778 | 2,166,852 |
Dividends accumulated on preferred stock | 144,618 | 144,618 | 144,562 |
Construction note payable | 10,237,032 | 387,968 | |
Acquisition stock issuances | 143,400,000 | ||
Warrant issued for services | $ 1,090,077 |
ORGANIZATION AND BUSINESS ACTIV
ORGANIZATION AND BUSINESS ACTIVITY | 12 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 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 (“Reverse Split”) of the issued and outstanding shares of the common stock of the Company. As a result of the reverse split, the previous issued and outstanding shares of common stock became 580,052 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 17,285,800 475,681 500,000 604,371 |
SUMMARY OF SIGNIFICANT ACCOUNTI
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 (“U.S. 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. Critical Accounting Estimates and Policies A summary of our critical accounting policies is included in our Annual Report on Form 10-K for the year ended March 31, 2024, under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 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. There have been no other significant changes to these policies during the year ended March 31, 2024. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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, 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 is 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, the Company has a goodwill carrying value of $ 90,870,094 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 and March 31, 2023, we reserved $ 3,666,078 3,246,551 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 12. 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 We are 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 through 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 AMMO Technologies Inc. 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 22,754 99,268 44,764 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. AMMO Technologies, Inc. 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 AMMO Technologies, Inc. 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 19). 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. Whereby SpeedLight Group I, LLC merged with and into Gemini Direct Investments, LLC, with SpeedLight Group I, LLC surviving the merger as a wholly owned subsidiary of the Company. At the time of the Merger, Gemini Direct Investments, LLC 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 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 contact ● Determination of the transaction price ● Allocation of the transaction price to the separate performance allocation ● Recognition of revenue when performance obligations are satisfied AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 it transfers 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: SCHEDULE OF CONCENTRATION RISK OF TOTAL REVENUES AND ACCOUNTS RECEIVABLE For the Year Ended For the Year Ended For the Year Ended 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 % AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Disaggregated Revenue Information The following table represent 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. SCHEDULE OF DISAGGREGATED REVENUE FROM CUSTOMERS BY SEGMENT 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 Fee Revenue 53,942,076 63,149,673 64,608,516 Ammunition Casings Sales 21,721,695 14,174,084 14,201,625 Total Sales $ 145,054,572 $ 191,439,801 $ 240,269,166 (1) Included in revenue for the fiscal year ended March 31, 2024, 2023, and 2022 are excise taxes of $ 6,155,524 9,789,897 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 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. Advertising Costs We expense advertising costs as they are incurred in selling and marketing expenses of operating expenses. Marketplace advertising costs are expenses as they are incurred in cost of revenues. We incurred advertising expenses of $ 1,149,596 1,355,179 1,823,060 384,002 1,068,700 1,406,043 765,594 417,017 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 generally accepted accounting principles, 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. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. We value all common stock issued for services on the date of the agreements, using the price at which shares were being sold to private investors or at the value of the services performed. 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. SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES March 31, 2024 March 31, 2023 March 31, 2022 Risk free interest rate 4.1 % 3.9 % 1.21 1.74 % Expected volatility 83.5 % 77.5 % 89.1 90.7 % Expected term 5.75 2.5 2.5 Expected dividend yield 0 % 0 % 0 % SCHEDULE OF FAIR VALUE OF COMMON STOCK AND WARRANTS Quoted Significant Significant Total (Level 1) (Level 2) (Level 3) March 31, 2024 Common stock purchase options $ - $ 430,457 $ - $ 430,457 March 31, 2023 Warrants issued for services $ - $ 427,639 $ - $ 427,639 March 31, 2022 Warrants issued for services $ - $ 1,090,077 $ - $ 1,090,077 Equity fair value $ - $ 1,090,077 $ - $ 1,090,077 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 15. 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. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. Compensated Absences We accrue a liability for compensated absences in accordance with Accounting Standards Codifications 710 – Compensation – General (“ASC 710”). Research and Development To date, we have expensed all costs associated with developing our product specifications, manufacturing procedures, and products through our cost of products sold, 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 expenditures 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 6.2 9.8 14.6 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 measurement and recognition of compensation expense for all share-based payment awards to employees and directors. On April 1, 2023 we adopted ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” Accordingly, stock based compensation is valued using market value of our Common Stock. Stock-based compensation is recognized on a straight line basis over the vesting periods and forfeitures are recognized in the periods they occur. We account for common stock purchase option awards by estimating the fair value of each option award on the grant date using the Black-Scholes option pricing model that uses assumption and estimates that we believe are reasonable. Concentrations of Credit Risk Accounts at banks are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $ 250,000 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. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. The Company also received notice in October 2022 that an OSHA whistleblower complaint had been filed with the U.S. 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 OSHA 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. AMMO was involved in three contract arbitration cases with adverse former employees, one of which is still active. The first one involved an employee terminated for cause who is 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, thus, granted the Company’s partially dispositive motion. The remaining claims went to an arbitration hearing which was completed and the arbitrator ordered closing briefs, which the parties exchanged. 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. On April 30, 2023, Director and stockholder Steve Urvan filed suit in the Delaware Court of Chancery 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 recission of the Merger and compensatory damages of not less than $ 140 On August 1, 2023, AMMO filed a separate lawsuit against Urvan in the Delaware Court of Chancery 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 of Chancery 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 Court of Chancery heard argument on the parties’ motions to dismiss in the consolidated action. On February 27, 2024, the 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 Court rejected Urvan’s motion to dismiss AMMO’s claims against him in its entirety. On May 8, 2024, the Court ordered a case schedule culminating in a five-day trial on July 28, 2025. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS On December 6, 2023, Steve Urvan initiated a separate action against the Company in his capacity as director under 8 Del. C. 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 The Company does not feel as though it has a high level of risk exposure at this time. We have accrued for contingencies totaling approximately $ 1.4 no Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326),” which replaces the current incurred loss impairment methodology for most financial assets with the current expected credit loss (“CECL”) methodology. The series of new guidance amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. The guidance should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. The guidance is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. In June 2022, the 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 contract |
INCOME_(LOSS) PER COMMON SHARE
INCOME/(LOSS) PER COMMON SHARE | 12 Months Ended |
Mar. 31, 2024 | |
Net Income/(Loss) per share | |
INCOME/(LOSS) PER COMMON SHARE | NOTE 3 – INCOME/(LOSS) PER COMMON SHARE We calculate basic income/(loss) per share using the weighted-average number of shares of common stock outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities, such as outstanding options and warrants. We use the treasury stock method in the determination of dilutive shares outstanding during each reporting period. We have issued warrants to purchase 1,708,830 shares of common stock. Due to the net loss attributable to common shareholders for the year ended March 31, 2024, potentially dilutive securities, which consists of 175,000 2,406,946 150,000 20,000 SCHEDULE OF INCOME/(LOSS) PER COMMON SHARE For the Year Ended 2024 2023 2022 Numerator: Net income/(loss) $ (15,565,200 ) $ (4,596,038 ) $ 33,247,436 Less: Preferred stock dividends (3,122,049 ) (3,105,034 ) (2,668,648 ) Net income/(loss) attributable to common stockholders $ (18,687,249 ) $ (7,701,072 ) $ 30,578,788 Denominator: Weighted average shares of common stock - basic 118,249,486 117,177,885 112,328,680 Effect of dilutive common stock purchase warrants - - 1,861,040 Effect of dilutive equity incentive awards - - - Weighted average shares of common stock - Diluted 118,249,486 117,177,885 114,189,720 Basic earnings per share: Income/(loss) per share attributable to common stockholders - basic $ (0.16 ) $ (0.07 ) $ 0.27 Diluted earnings per share: Income/(loss) per share attributable to common stockholders - diluted $ (0.16) $ (0.07) $ 0.27 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 – ACCOUNTS RECEIVABLE Our net accounts receivable are summarized as follows: SCHEDULE OF ACCOUNTS RECEIVABLE 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 ) Accounts receivable, net $ 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, 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
INVENTORIES | 12 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES At March 31, 2024 and March 31, 2023, the inventory balances are composed of: SCHEDULE OF INVENTORIES March 31, 2024 March 31, 2023 Finished product $ 11,055,061 $ 14,362,514 Raw materials 24,158,244 23,898,596 Work in process 10,350,029 16,083,709 Inventory net $ 45,563,334 $ 54,344,819 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT Property and equipment consisted of the following at March 31, 2024 and March 31, 2023: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2024 March 31, 2023 Leasehold Improvements $ 257,009 $ 257,009 Building and Improvements 29,143,445 28,623,329 Furniture and Fixtures 439,990 384,650 Vehicles 153,254 153,254 Equipment 45,467,137 40,233,186 Tooling 143,710 143,710 Construction in Progress 2,785,616 734,781 Total property and equipment $ 78,390,161 $ 70,529,919 Less accumulated depreciation (20,308,121 ) (14,566,664 ) Net property and equipment $ 58,082,040 $ 55,963,255 Depreciation Expense for the years ended March 31, 2024, 2023, and 2022 totaled $ 5,751,023 4,452,908 4,266,126 4,777,642 3,747,723 3,101,929 973,381 705,185 1,164,197 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
REVOLVING LOAN
REVOLVING LOAN | 12 Months Ended |
Mar. 31, 2024 | |
Revolving Loan | |
REVOLVING LOAN | NOTE 7 – 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 herein 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 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 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 reborrow 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
FACTORING LIABILITY | 12 Months Ended |
Mar. 31, 2024 | |
Factoring Liability | |
FACTORING LIABILITY | NOTE 8 – 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 contains a maximum advance amount of $ 5,000,000 85 4.5 3 150,000 185,319 62,500 153,646 37,500 327,746 100,000 On June 17, 2021, this agreement was amended which extended 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 |
INVENTORY CREDIT FACILITY
INVENTORY CREDIT FACILITY | 12 Months Ended |
Mar. 31, 2024 | |
Inventory Credit Facility | |
INVENTORY CREDIT FACILITY | NOTE 9 – INVENTORY CREDIT FACILITY On June 17, 2020, we entered into a Revolving Inventory Loan and Security Agreement with FSW. FSW will 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, contains a maximum loan amount of $ 1,750,000 annualized interest rate of the greater of the three-month LIBOR rate plus 3.09% or 8% 2 35,000 2,250,000 no 6,580 40,940 8,561 On November 29, 2023, we provided FSW notice of termination of the agreement. The agreement terminated on December 29, 2023. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2024 | |
Leases | |
LEASES | NOTE 10 – 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. In August of 2021 we extended the lease of our Atlanta offices through May of 2027, accordingly we increased our Right of Use Assets and Operating Lease Liabilities by $ 501,125 308,326 38,185 901,076 As of March 31, 2024 and March 31, 2023, total Right of Use Assets were $ 2,000,093 1,261,634 738,459 2,089,487 1,374,224 479,651 470,734 1,609,836 2,089,487 903,490 1,374,224 Consolidated lease expense for the year ended March 31, 2024 was $ 663,826 642,105 21,722 881,171 861,777 19,394 1,221,473 1,177,589 43,884 The weighted average remaining lease term and weighted average discount rate for operating leases were 4.0 10.0 3.3 10.0 Future minimum lease payments under non-cancellable leases as of March 31, 2024 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER NON-CANCELLABLE LEASES Years Ended March 31, 2025 $ 666,233 2026 665,069 2027 581,574 2028 379,067 2029 258,102 Total Lease Payments 2,550,045 Less: Amount Representing Interest (460,558 ) Present value of lease liabilities $ 2,089,487 |
NOTES PAYABLE _ RELATED PARTY
NOTES PAYABLE – RELATED PARTY | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE – RELATED PARTY | NOTE 11 – NOTES PAYABLE – RELATED PARTY In connection with the acquisition of the casing division of Jagemann Stamping Company (“JSC”), a $ 10,400,000 500,000 9,900,000 The note bears interest per annum at approximately 4.6% payable in arrears monthly. 1,500,000 Post-closing of the transaction, it was made apparent that certain equipment that was agreed to be delivered free and clear by the Seller was not achievable as Seller was not able to purchase equipment that Seller had leased. Accordingly, the remaining value of the promissory note was reduced by $ 2,596,200 1,871,306 766,068 31,924 9,250 159,530 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 5,803,800 2,635,797 August 15, 2021 204,295 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 April 1, 2021 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As a result of the Settlement Agreement, the Company agreed to forego $ 1,000,000 On November 5, 2020, the Company paid $ 6,000,000 592,982 1,687,664 9 216,160 62,876 The Company did not have a balance on Amended Note B at March 31, 2024 and there was a balance of $ 180,850 1,788 48,665 110,518 On January 22, 2021, the Company repurchased 1,000,000 1.50 |
CONSTRUCTION NOTE PAYABLE
CONSTRUCTION NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2024 | |
Construction Note Payable | |
CONSTRUCTION NOTE PAYABLE | NOTE 12 – CONSTRUCTION NOTE PAYABLE On October 14, 2021, we entered into a Construction Loan Agreement (the “Loan Agreement”) with Hiawatha National Bank (“Hiawatha”). The Loan Agreement specifies that Hiawatha may lend up to $ 11,625,000 160,000 329,843 Additionally, on October 14, 2021, we issued a Promissory Note in favor of Hiawatha (the “Note”) in the amount of up to $ 11,625,000 4.5 October 14, 2026 64,620 We can prepay the Note in whole or in part starting in July 2022 with a prepayment premium of one percent ( 1 The Loan Agreement contains customary events of default including, but not limited to, a failure to make any payments pursuant to the Loan Agreement or 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 Loan can be accelerated, Hiawatha can foreclose on the property pursuant to the mortgage, and a late charge of five percent (5%) of the amount due will be owed with all amounts then owed pursuant to the Note bearing interest at an increased rate We are required to maintain a Debt Service Coverage Ratio, as defined in the terms of the Loan Agreement, of not less than 1.25 1.00 During the year ended March 31, 2023, approximately $ 11.2 1.0 257,425 150,743 500,000 500,000 500,000 zero AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
CAPITAL STOCK | NOTE 13 – CAPITAL STOCK Our authorized capital consists of 200,000,000 0.001 During the year ended March 31, 2022, we issued 23,385,780 ● 20,000,000 142,691,282 ● 431,080 943,907 ● 374,584 443,110 ● 772,450 1,631,701 ● 1,807,666 5,759,000 During the year ended March 31, 2023, we issued 2,077,059 ● 200,003 101,506 ● 99,762 100,000 ● 1,777,294 5,807,779 During the year ended March 31, 2024, we issued 1,968,701 ● 31,750 76,200 ● 1,936,951 4,082,108 At March 31, 2024, 2023, and 2022, outstanding and exercisable stock purchase warrants consisted of the following: SCHEDULE OF OUTSTANDING AND EXERCISABLE STOCK PURCHASE WARRANTS Number of Weighted Averaged Weighted Outstanding at March 31, 2021 3,607,945 $ 2.31 3.24 Granted 200,000 0.01 3.92 Exercised (874,190 ) 1.76 - Forfeited or cancelled - - - Outstanding at March 31, 2022 2,933,755 $ 2.32 2.29 Exercisable at March 31, 2022 2,933,755 $ 2.32 2.29 Number of Weighted Averaged Weighted Outstanding at March 31, 2022 2,933,755 $ 2.32 2.29 Granted 150,000 0.01 4.5 Exercised (300,003 ) 0.34 - Forfeited or cancelled (322,806 ) 2.00 - Outstanding at March 31, 2023 2,460,946 $ 2.46 1.59 Exercisable at March 31, 2023 2,460,946 $ 2.46 1.59 Number of Weighted Averaged Weighted Outstanding at March 31, 2023 2,460,946 $ 2.46 1.59 Exercised (31,750 ) 2.40 - Forfeited or cancelled (720,366 ) 3.19 - Outstanding at March 31, 2024 1,708,830 $ 2.16 1.09 Exercisable at March 31, 2024 1,708,830 $ 2.16 1.09 As of March 31, 2024, we had 1,708,830 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 911 1.65 1,244,108 2.00 77,500 2.40 386,311 2.63 Option Granted During the year ended March 31, 2024, we granted stock options (“Options”) to purchase 400,000 100,000 300,000 25,000 430,457 SCHEDULE OF SHARE BASED COMPENSATION ARRANGEMENTS Number of Options 400,000 Option Vesting Period Up to 3 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 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
PREFERRED STOCK
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. 25.00 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 8.75 2.1875 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 delisting 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 8.75 25.00 164,580 1,097,200 27,430,000 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 25.00 138,220 3,455,500 164,580 4,114,500 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Preferred dividends accumulated as of March 31, 2022 were $ 144,562 0.241246528 337,745 1.01475694444444 1,420,700 0.546875 765,642 Preferred dividends accumulated as of March 31, 2023 were $ 144,618 0.546875 765,625 0.5529514 774,132 0.55902778 782,639 0.559027777777778 782,639 Preferred dividends accumulated as of March 31, 2024 were $ 144,618 0.55902778 782,639 0.55902778 782,639 0.5529514 774,132 0.5529514 774,132 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
ACQUISITIONS | NOTE 15 – ACQUISITIONS Gemini Direct Investments, LLC On April 30, 2021 (the “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 Effective Date. In consideration of the Merger, on the terms and subject to the conditions set forth in the Merger Agreement, on the Effective Date, (i) the Company assumed and repaid an aggregate amount of indebtedness of Gemini and its subsidiaries equal to $ 50,000,000 50,000,000 20,000,000 0.001 In connection with the Merger Agreement, the Company and the Seller agreed that the Stock Consideration consisted of: (a) 14,500,000 4,000,000 1,500,000 The total estimated consideration consisted of cash payment of $ 50,000,000 1,350,046 2,000,000 50,000,000 10,755,000 1,500,000 18,500,000 7.17 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 2,000,000 1,870,886 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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: SCHEDULE OF FAIR VALUE OF CONSIDERATION TRANSFERRED 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: SCHEDULE OF ALLOCATION FOR CONSIDERATION 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 (1) 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 Unaudited Pro Forma Results of Operations These pro forma results of operations give effect to the acquisition as if it had occurred on April 1, 2021. Material pro forma adjustments include the removal of approximately $ 1.8 0.9 SCHEDULE OF UNAUDITED PRO FORMA RESULTS OF OPERATIONS 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 acquisition been completed and taken place on the dates indicated or the future consolidated results of operations or financial position of the Company. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | NOTE 16 – ACCRUED LIABILITIES At March 31, 2024 and March 31, 2023, accrued liabilities were as follows: SCHEDULE OF ACCRUED LIABILITIES March 31, 2024 March 31, 2023 Accrued FAET $ 1,145,937 $ 1,808,065 Accrued bonus program 1,185,877 - Accrued professional fees 1,134,368 736,323 Accrued payroll 964,661 430,344 Other accruals 417,496 618,243 Income taxes payable 359,356 403,739 Unearned revenue 1,822,972 101,593 Accrued sales commissions - 252,366 Accrued interest - 2,681 Accrued liabilities $ 7,030,667 $ 4,353,354 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 17 – RELATED PARTY TRANSACTIONS During the year ended March 31, 2024, we paid $ 410,173 244,640 168,581 350,345 134,240 25,000 53,250 201,646 150,866 On July 24, 2023, Fred Wagenhals departed as CEO and the Board appointed Mr. Wagenhals the Company’s Executive Chairman. Mr. Wagenhals remains a member of the Board. Mr. Wagenhals received the following payments in connection with his transition from CEO to Executive Chairman: (i) total cash payments of $ 1,060,290 300,000 624,000 On July 26, 2023, we obtained a $ 1.6 1.6 The term of the certificate of deposit is twelve months and includes interest of approximately 5%. Per the terms of the Merger Agreement, filed with the Commission on a Current Report on Form 8-K on May 6, 2021 (the “Current Report”), the Seller is required to pay or be liable for these losses (capitalized terms are defined the Current Report). In July of 2023, the Company filed suit in the Delaware Chancery Court against Director and Shareholder Steve Urvan for claims arising out of the Company’s acquisition of certain companies referenced as the GunBroker family of companies. The claims arise based upon Mr. Urvan’s repeated failure and refusal to honor contractual defense and indemnification obligations arising under that certain Merger Agreement, along with alleged misrepresentations. On November 3, 2022, AMMO, Inc. (the “Company”) entered into a Settlement Agreement (the “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 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 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 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 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. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Pursuant to the Settlement Agreement, the Company will 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 $ 500,000 125,000 437,500 110,000 385,000 The foregoing summary of the 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 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 $ 551,916 223,333 141,419 494,967 45,000 129,750 215,300 182,344 During the year ended March 31, 2022, we paid $ 229,083 60,000 173,000 1,042,277 139,164 In connection with the acquisition of the casing division of JSC, a promissory note was executed. On April 30, 2019, the note was subsequently extended to April 1, 2020. The note bears interest per annum at approximately 4.6 352,157 5 In October of 2019, it was made apparent that certain equipment that was agreed to be delivered free and clear by the Seller was not achievable as Seller was not able to purchase equipment that Seller had leased. Accordingly, the remaining value of the promissory note was reduced by $ 2,596,200 1,871,306 766,068 31,924 9,250 159,530 Through the Administrative and Management Services Agreement the Company with JSC, the Company purchased approximately incurred $ 2.0 170,355 1.7 408,852 On June 26, 2020, the Company 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 5,803,800 2,635,797 August 15, 2021 204,295 Pursuant to such provision, the Company: (a) upon the closing of an Offering of less than $ 10,000,000 10,000,000 1,000,000 1.50 On November 5, 2020, the Company paid $ 6,000,000 592,982 1,687,664 9 36 The Company paid off the balance of Amended Note B during the year ended March 31, 2024. The Company’s balance of Amended Note B was $ 180,850 865,771 1,788 48,665 110,518 60,100 On January 22, 2021, the Company repurchased 1,000,000 1.50 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 18 – INCOME TAXES The income tax (provision) benefit for the periods shown consist of the following: SCHEDULE OF INCOME TAX PROVISION BENEFIT 2024 2023 2022 Current US Federal $ - $ - $ (1,302,811 ) US State - - (446,677 ) Total current provision - - (1,749,488 ) Deferred US Federal 3,004,239 (578,679 ) (7,727,011 ) US State 786,824 (151,559 ) (2,649,261 ) Total deferred benefit 3,791,063 (730,238 ) (10,376,272 ) Change in valuation allowance - - 8,839,791 Income tax (provision) benefit $ 3,791,063 $ (730,238 ) $ (3,285,969 ) The reconciliation of income tax expense computed at the U.S. federal statutory rate of 21 SCHEDULE OF RECONCILIATION OF INCOME TAX 2024 2023 2022 Computed tax expense 21 % 21 % 21 % State taxes, net of Federal income tax benefit 5 % 6 % 7 % Change in valuation allowance 0 % 0 % (24 )% Employee stock awards (7 )% (40 )% 4 % Other (1 )% 0 % 0 % Stock and Warrants on Note Conversion 0 % (5 )% 1 % Total provision for income taxes 18 % (18 )% 9 % The Company’s effective tax rates was 18 Significant components of the Company’s deferred tax liabilities and assets are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2024 2023 Deferred tax assets Net operating loss carryforward $ 5,397,983 $ 871,331 Loss on purchase 826,311 826,311 Other 314,257 - Total deferred tax assets $ 6,538,461 $ 1,697,642 Deferred tax liabilities Depreciation expense $ (3,007,227 ) $ (2,906,214 ) Other (2,044,236 ) (1,101,020 ) Total deferred tax liabilities $ (5,051,463 ) $ (4,007,234 ) Net deferred tax assets/(liabilities) $ 1,486,998 $ (2,309,592 ) Valuation allowance - - Net deferred tax assets/(liabilities) $ 1,486,998 $ (2,309,592 ) 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 and has concluded that as of March 31, 2024 and 2023, there are no uncertain tax positions taken, or expected to be taken, that would require recognition of a liability that would require disclosure in the financial statements. 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. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 19 – GOODWILL AND INTANGIBLE ASSETS During our previous fiscal year ended March 31, 2022, we recorded $ 90,870,094 90,870,094 Total amortization expense of our intangible assets was $ 13,062,874 13,067,041 13,072,967 Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS March 31, 2024 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition patent 11.2 - 950,000 - SWK patent acquisition 15 - 6,124,005 - 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 - - 607,747 250,000 7,074,005 151,763,617 Accumulated amortization – Licensing Agreements (250,000 ) - - Accumulated amortization – Patents - (2,534,715 ) - Accumulated amortization – Intangible Assets - - (40,714,550 ) $ - $ 4,539,290 $ 111,049,067 March 31, 2023 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition patent 11.2 - 950,000 - SWK patent acquisition 15 - 6,124,005 - 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 - - 607,747 250,000 7,074,005 151,763,617 Accumulated amortization – Licensing Agreements (250,000 ) - - Accumulated amortization – Patents - (2,041,251 ) - Accumulated amortization – Intangible Assets - - (28,036,807 ) $ - $ 5,032,754 $ 123,726,810 Annual estimated amortization of intangible assets for the next five fiscal years are as follows: SCHEDULE OF ANNUAL AMORTIZATION OF INTANGIBLE ASSET Years Ended March 31, Estimates for 2025 $ 12,650,642 2026 12,614,775 2027 12,549,188 2028 12,543,226 2029 12,507,792 Thereafter 52,722,734 Annual amortization of intangible assets $ 115,588,357 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
SEGMENTS
SEGMENTS | 12 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENTS | NOTE 20 – SEGMENTS On April 30, 2021, the Company entered into an agreement and plan of merger 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. In the current period, we began the reporting of the separate allocation of certain corporate general and administrative expenses including non-cash stock compensation expense, as such we have updated the prior period disclosure herein. The following tables set forth certain financial information utilized by management to evaluate our operating segments for the annual periods presented: SCHEDULE OF OPERATING SEGMENTS For the Year Ended March 31, 2024 Ammunition Marketplace Corporate Total Net Revenues $ 91,112,496 $ 53,942,076 $ - $ 145,054,572 Cost of Revenues 94,771,262 7,660,541 - 102,431,803 General and administrative expense 8,967,456 9,885,131 28,804,588 47,657,175 Depreciation and amortization 508,485 13,034,306 - 13,542,791 Income/(Loss) from Operations $ (13,134,707 ) $ 23,362,098 $ (28,804,588 ) $ (18,577,197 ) Ammunition Marketplace Corporate Total For the Year Ended March 31, 2023 Ammunition Marketplace Corporate Total Net Revenues $ 128,290,128 $ 63,149,673 $ - $ 191,439,801 Cost of Revenues 126,914,265 9,116,939 - 136,031,204 General and administrative expense 10,378,456 9,707,425 25,302,873 45,388,754 Depreciation and amortization 578,326 12,700,436 - 13,278,762 Income/(Loss) from Operations $ (9,580,919 ) $ 31,624,873 $ (25,302,873 ) $ (3,258,919 ) Ammunition Marketplace Corporate and other expenses Total For the Year Ended March 31, 2022 Ammunition Marketplace Corporate and other expenses Total Net Revenues $ 175,660,650 $ 64,608,516 $ - $ 240,269,166 Cost of Revenues 142,773,306 8,732,351 - 151,505,657 General and administrative expense 11,932,721 8,434,308 17,544,970 37,911,999 Depreciation and amortization 1,579,778 12,122,370 - 13,702,148 Income/(Loss) from Operations $ 19,374,845 $ 35,319,487 $ (17,544,970 ) $ 37,149,362 Total assets by segment were as follows: SCHEDULE OF TOTAL ASSETS SEGMENTS For the Year Ended March 31, 2024 March 31, 2023 March 31, 2022 Ammunition $ 163,864,522 $ 154,044,607 $ 160,305,107 Marketplace 236,037,694 258,290,780 253,873,206 $ 399,902,216 $ 412,335,387 $ 414,178,313 Total capital expenditures by segment were as follows: SCHEDULE OF CAPITAL EXPENDITURE SEGMENT 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 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | 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 | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. 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. |
Critical Accounting Estimates and Policies | Critical Accounting Estimates and Policies A summary of our critical accounting policies is included in our Annual Report on Form 10-K for the year ended March 31, 2024, under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 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. There have been no other significant changes to these policies during the year ended March 31, 2024. |
Goodwill | 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, 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 is 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, the Company has a goodwill carrying value of $ 90,870,094 |
Accounts Receivable and Allowance for Credit Losses | 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 and March 31, 2023, we reserved $ 3,666,078 3,246,551 |
Cash and Cash Equivalents | 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 | 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 12. 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 | License Agreements We are 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 through 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 | 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 AMMO Technologies Inc. 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 22,754 99,268 44,764 AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. AMMO Technologies, Inc. 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 AMMO Technologies, Inc. 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 | 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 19). 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. Whereby SpeedLight Group I, LLC merged with and into Gemini Direct Investments, LLC, with SpeedLight Group I, LLC surviving the merger as a wholly owned subsidiary of the Company. At the time of the Merger, Gemini Direct Investments, LLC 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 | 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 |
Revenue Recognition | 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 contact ● Determination of the transaction price ● Allocation of the transaction price to the separate performance allocation ● Recognition of revenue when performance obligations are satisfied AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 it transfers 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: SCHEDULE OF CONCENTRATION RISK OF TOTAL REVENUES AND ACCOUNTS RECEIVABLE For the Year Ended For the Year Ended For the Year Ended 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 % AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Disaggregated Revenue Information The following table represent 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. SCHEDULE OF DISAGGREGATED REVENUE FROM CUSTOMERS BY SEGMENT 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 Fee Revenue 53,942,076 63,149,673 64,608,516 Ammunition Casings Sales 21,721,695 14,174,084 14,201,625 Total Sales $ 145,054,572 $ 191,439,801 $ 240,269,166 (1) Included in revenue for the fiscal year ended March 31, 2024, 2023, and 2022 are excise taxes of $ 6,155,524 9,789,897 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 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. |
Advertising Costs | Advertising Costs We expense advertising costs as they are incurred in selling and marketing expenses of operating expenses. Marketplace advertising costs are expenses as they are incurred in cost of revenues. We incurred advertising expenses of $ 1,149,596 1,355,179 1,823,060 384,002 1,068,700 1,406,043 765,594 417,017 |
Fair Value of Financial Instruments | 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 generally accepted accounting principles, 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. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. We value all common stock issued for services on the date of the agreements, using the price at which shares were being sold to private investors or at the value of the services performed. 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. SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES March 31, 2024 March 31, 2023 March 31, 2022 Risk free interest rate 4.1 % 3.9 % 1.21 1.74 % Expected volatility 83.5 % 77.5 % 89.1 90.7 % Expected term 5.75 2.5 2.5 Expected dividend yield 0 % 0 % 0 % SCHEDULE OF FAIR VALUE OF COMMON STOCK AND WARRANTS Quoted Significant Significant Total (Level 1) (Level 2) (Level 3) March 31, 2024 Common stock purchase options $ - $ 430,457 $ - $ 430,457 March 31, 2023 Warrants issued for services $ - $ 427,639 $ - $ 427,639 March 31, 2022 Warrants issued for services $ - $ 1,090,077 $ - $ 1,090,077 Equity fair value $ - $ 1,090,077 $ - $ 1,090,077 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 15. |
Inventories | 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 | 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. |
Compensated Absences | Compensated Absences We accrue a liability for compensated absences in accordance with Accounting Standards Codifications 710 – Compensation – General (“ASC 710”). |
Research and Development | Research and Development To date, we have expensed all costs associated with developing our product specifications, manufacturing procedures, and products through our cost of products sold, 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 expenditures for reporting purposes as we begin to develop new technologies and lines of ammunition. |
Excise Tax | 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 6.2 9.8 14.6 |
Stock-Based Compensation | 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 measurement and recognition of compensation expense for all share-based payment awards to employees and directors. On April 1, 2023 we adopted ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” Accordingly, stock based compensation is valued using market value of our Common Stock. Stock-based compensation is recognized on a straight line basis over the vesting periods and forfeitures are recognized in the periods they occur. We account for common stock purchase option awards by estimating the fair value of each option award on the grant date using the Black-Scholes option pricing model that uses assumption and estimates that we believe are reasonable. |
Concentrations of Credit Risk | Concentrations of Credit Risk Accounts at banks are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $ 250,000 |
Income Taxes | 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 | 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. The Company also received notice in October 2022 that an OSHA whistleblower complaint had been filed with the U.S. 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 OSHA 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. AMMO was involved in three contract arbitration cases with adverse former employees, one of which is still active. The first one involved an employee terminated for cause who is 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, thus, granted the Company’s partially dispositive motion. The remaining claims went to an arbitration hearing which was completed and the arbitrator ordered closing briefs, which the parties exchanged. 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. On April 30, 2023, Director and stockholder Steve Urvan filed suit in the Delaware Court of Chancery 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 recission of the Merger and compensatory damages of not less than $ 140 On August 1, 2023, AMMO filed a separate lawsuit against Urvan in the Delaware Court of Chancery 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 of Chancery 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 Court of Chancery heard argument on the parties’ motions to dismiss in the consolidated action. On February 27, 2024, the 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 Court rejected Urvan’s motion to dismiss AMMO’s claims against him in its entirety. On May 8, 2024, the Court ordered a case schedule culminating in a five-day trial on July 28, 2025. AMMO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS On December 6, 2023, Steve Urvan initiated a separate action against the Company in his capacity as director under 8 Del. C. 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 The Company does not feel as though it has a high level of risk exposure at this time. We have accrued for contingencies totaling approximately $ 1.4 no |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326),” which replaces the current incurred loss impairment methodology for most financial assets with the current expected credit loss (“CECL”) methodology. The series of new guidance amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. The guidance should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. The guidance is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. In June 2022, the 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. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SCHEDULE OF CONCENTRATION RISK OF TOTAL REVENUES AND ACCOUNTS RECEIVABLE | SCHEDULE OF CONCENTRATION RISK OF TOTAL REVENUES AND ACCOUNTS RECEIVABLE For the Year Ended For the Year Ended For the Year Ended 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 % |
SCHEDULE OF DISAGGREGATED REVENUE FROM CUSTOMERS BY SEGMENT | SCHEDULE OF DISAGGREGATED REVENUE FROM CUSTOMERS BY SEGMENT 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 Fee Revenue 53,942,076 63,149,673 64,608,516 Ammunition Casings Sales 21,721,695 14,174,084 14,201,625 Total Sales $ 145,054,572 $ 191,439,801 $ 240,269,166 (1) Included in revenue for the fiscal year ended March 31, 2024, 2023, and 2022 are excise taxes of $ 6,155,524 9,789,897 |
SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES | SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES March 31, 2024 March 31, 2023 March 31, 2022 Risk free interest rate 4.1 % 3.9 % 1.21 1.74 % Expected volatility 83.5 % 77.5 % 89.1 90.7 % Expected term 5.75 2.5 2.5 Expected dividend yield 0 % 0 % 0 % |
SCHEDULE OF FAIR VALUE OF COMMON STOCK AND WARRANTS | SCHEDULE OF FAIR VALUE OF COMMON STOCK AND WARRANTS Quoted Significant Significant Total (Level 1) (Level 2) (Level 3) March 31, 2024 Common stock purchase options $ - $ 430,457 $ - $ 430,457 March 31, 2023 Warrants issued for services $ - $ 427,639 $ - $ 427,639 March 31, 2022 Warrants issued for services $ - $ 1,090,077 $ - $ 1,090,077 Equity fair value $ - $ 1,090,077 $ - $ 1,090,077 |
INCOME_(LOSS) PER COMMON SHARE
INCOME/(LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Net Income/(Loss) per share | |
SCHEDULE OF INCOME/(LOSS) PER COMMON SHARE | SCHEDULE OF INCOME/(LOSS) PER COMMON SHARE For the Year Ended 2024 2023 2022 Numerator: Net income/(loss) $ (15,565,200 ) $ (4,596,038 ) $ 33,247,436 Less: Preferred stock dividends (3,122,049 ) (3,105,034 ) (2,668,648 ) Net income/(loss) attributable to common stockholders $ (18,687,249 ) $ (7,701,072 ) $ 30,578,788 Denominator: Weighted average shares of common stock - basic 118,249,486 117,177,885 112,328,680 Effect of dilutive common stock purchase warrants - - 1,861,040 Effect of dilutive equity incentive awards - - - Weighted average shares of common stock - Diluted 118,249,486 117,177,885 114,189,720 Basic earnings per share: Income/(loss) per share attributable to common stockholders - basic $ (0.16 ) $ (0.07 ) $ 0.27 Diluted earnings per share: Income/(loss) per share attributable to common stockholders - diluted $ (0.16) $ (0.07) $ 0.27 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Our net accounts receivable are summarized as follows: SCHEDULE OF ACCOUNTS RECEIVABLE 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 ) Accounts receivable, net $ 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, 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 (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | At March 31, 2024 and March 31, 2023, the inventory balances are composed of: SCHEDULE OF INVENTORIES March 31, 2024 March 31, 2023 Finished product $ 11,055,061 $ 14,362,514 Raw materials 24,158,244 23,898,596 Work in process 10,350,029 16,083,709 Inventory net $ 45,563,334 $ 54,344,819 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following at March 31, 2024 and March 31, 2023: SCHEDULE OF PROPERTY AND EQUIPMENT March 31, 2024 March 31, 2023 Leasehold Improvements $ 257,009 $ 257,009 Building and Improvements 29,143,445 28,623,329 Furniture and Fixtures 439,990 384,650 Vehicles 153,254 153,254 Equipment 45,467,137 40,233,186 Tooling 143,710 143,710 Construction in Progress 2,785,616 734,781 Total property and equipment $ 78,390,161 $ 70,529,919 Less accumulated depreciation (20,308,121 ) (14,566,664 ) Net property and equipment $ 58,082,040 $ 55,963,255 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Leases | |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER NON-CANCELLABLE LEASES | Future minimum lease payments under non-cancellable leases as of March 31, 2024 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER NON-CANCELLABLE LEASES Years Ended March 31, 2025 $ 666,233 2026 665,069 2027 581,574 2028 379,067 2029 258,102 Total Lease Payments 2,550,045 Less: Amount Representing Interest (460,558 ) Present value of lease liabilities $ 2,089,487 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
SCHEDULE OF OUTSTANDING AND EXERCISABLE STOCK PURCHASE WARRANTS | At March 31, 2024, 2023, and 2022, outstanding and exercisable stock purchase warrants consisted of the following: SCHEDULE OF OUTSTANDING AND EXERCISABLE STOCK PURCHASE WARRANTS Number of Weighted Averaged Weighted Outstanding at March 31, 2021 3,607,945 $ 2.31 3.24 Granted 200,000 0.01 3.92 Exercised (874,190 ) 1.76 - Forfeited or cancelled - - - Outstanding at March 31, 2022 2,933,755 $ 2.32 2.29 Exercisable at March 31, 2022 2,933,755 $ 2.32 2.29 Number of Weighted Averaged Weighted Outstanding at March 31, 2022 2,933,755 $ 2.32 2.29 Granted 150,000 0.01 4.5 Exercised (300,003 ) 0.34 - Forfeited or cancelled (322,806 ) 2.00 - Outstanding at March 31, 2023 2,460,946 $ 2.46 1.59 Exercisable at March 31, 2023 2,460,946 $ 2.46 1.59 Number of Weighted Averaged Weighted Outstanding at March 31, 2023 2,460,946 $ 2.46 1.59 Exercised (31,750 ) 2.40 - Forfeited or cancelled (720,366 ) 3.19 - Outstanding at March 31, 2024 1,708,830 $ 2.16 1.09 Exercisable at March 31, 2024 1,708,830 $ 2.16 1.09 |
SCHEDULE OF SHARE BASED COMPENSATION ARRANGEMENTS | SCHEDULE OF SHARE BASED COMPENSATION ARRANGEMENTS Number of Options 400,000 Option Vesting Period Up to 3 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 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
SCHEDULE OF FAIR VALUE OF CONSIDERATION TRANSFERRED | The fair value of the consideration transferred was valued as follows: SCHEDULE OF FAIR VALUE OF CONSIDERATION TRANSFERRED 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 |
SCHEDULE OF ALLOCATION FOR CONSIDERATION | The allocation for the consideration recorded for the acquisition is as follows: SCHEDULE OF ALLOCATION FOR CONSIDERATION 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 (1) 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. |
SCHEDULE OF UNAUDITED PRO FORMA RESULTS OF OPERATIONS | SCHEDULE OF UNAUDITED PRO FORMA RESULTS OF OPERATIONS INCOME STATEMENT DATA For the Year Ended March 31, 2022 Net revenues $ 248,314,587 Net income $ 37,793,924 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED LIABILITIES | At March 31, 2024 and March 31, 2023, accrued liabilities were as follows: SCHEDULE OF ACCRUED LIABILITIES March 31, 2024 March 31, 2023 Accrued FAET $ 1,145,937 $ 1,808,065 Accrued bonus program 1,185,877 - Accrued professional fees 1,134,368 736,323 Accrued payroll 964,661 430,344 Other accruals 417,496 618,243 Income taxes payable 359,356 403,739 Unearned revenue 1,822,972 101,593 Accrued sales commissions - 252,366 Accrued interest - 2,681 Accrued liabilities $ 7,030,667 $ 4,353,354 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX PROVISION BENEFIT | The income tax (provision) benefit for the periods shown consist of the following: SCHEDULE OF INCOME TAX PROVISION BENEFIT 2024 2023 2022 Current US Federal $ - $ - $ (1,302,811 ) US State - - (446,677 ) Total current provision - - (1,749,488 ) Deferred US Federal 3,004,239 (578,679 ) (7,727,011 ) US State 786,824 (151,559 ) (2,649,261 ) Total deferred benefit 3,791,063 (730,238 ) (10,376,272 ) Change in valuation allowance - - 8,839,791 Income tax (provision) benefit $ 3,791,063 $ (730,238 ) $ (3,285,969 ) |
SCHEDULE OF RECONCILIATION OF INCOME TAX | The reconciliation of income tax expense computed at the U.S. federal statutory rate of 21 SCHEDULE OF RECONCILIATION OF INCOME TAX 2024 2023 2022 Computed tax expense 21 % 21 % 21 % State taxes, net of Federal income tax benefit 5 % 6 % 7 % Change in valuation allowance 0 % 0 % (24 )% Employee stock awards (7 )% (40 )% 4 % Other (1 )% 0 % 0 % Stock and Warrants on Note Conversion 0 % (5 )% 1 % Total provision for income taxes 18 % (18 )% 9 % |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | Significant components of the Company’s deferred tax liabilities and assets are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2024 2023 Deferred tax assets Net operating loss carryforward $ 5,397,983 $ 871,331 Loss on purchase 826,311 826,311 Other 314,257 - Total deferred tax assets $ 6,538,461 $ 1,697,642 Deferred tax liabilities Depreciation expense $ (3,007,227 ) $ (2,906,214 ) Other (2,044,236 ) (1,101,020 ) Total deferred tax liabilities $ (5,051,463 ) $ (4,007,234 ) Net deferred tax assets/(liabilities) $ 1,486,998 $ (2,309,592 ) Valuation allowance - - Net deferred tax assets/(liabilities) $ 1,486,998 $ (2,309,592 ) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS March 31, 2024 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition patent 11.2 - 950,000 - SWK patent acquisition 15 - 6,124,005 - 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 - - 607,747 250,000 7,074,005 151,763,617 Accumulated amortization – Licensing Agreements (250,000 ) - - Accumulated amortization – Patents - (2,534,715 ) - Accumulated amortization – Intangible Assets - - (40,714,550 ) $ - $ 4,539,290 $ 111,049,067 March 31, 2023 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition patent 11.2 - 950,000 - SWK patent acquisition 15 - 6,124,005 - 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 - - 607,747 250,000 7,074,005 151,763,617 Accumulated amortization – Licensing Agreements (250,000 ) - - Accumulated amortization – Patents - (2,041,251 ) - Accumulated amortization – Intangible Assets - - (28,036,807 ) $ - $ 5,032,754 $ 123,726,810 |
SCHEDULE OF ANNUAL AMORTIZATION OF INTANGIBLE ASSET | Annual estimated amortization of intangible assets for the next five fiscal years are as follows: SCHEDULE OF ANNUAL AMORTIZATION OF INTANGIBLE ASSET Years Ended March 31, Estimates for 2025 $ 12,650,642 2026 12,614,775 2027 12,549,188 2028 12,543,226 2029 12,507,792 Thereafter 52,722,734 Annual amortization of intangible assets $ 115,588,357 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SCHEDULE OF OPERATING SEGMENTS | SCHEDULE OF OPERATING SEGMENTS For the Year Ended March 31, 2024 Ammunition Marketplace Corporate Total Net Revenues $ 91,112,496 $ 53,942,076 $ - $ 145,054,572 Cost of Revenues 94,771,262 7,660,541 - 102,431,803 General and administrative expense 8,967,456 9,885,131 28,804,588 47,657,175 Depreciation and amortization 508,485 13,034,306 - 13,542,791 Income/(Loss) from Operations $ (13,134,707 ) $ 23,362,098 $ (28,804,588 ) $ (18,577,197 ) Ammunition Marketplace Corporate Total For the Year Ended March 31, 2023 Ammunition Marketplace Corporate Total Net Revenues $ 128,290,128 $ 63,149,673 $ - $ 191,439,801 Cost of Revenues 126,914,265 9,116,939 - 136,031,204 General and administrative expense 10,378,456 9,707,425 25,302,873 45,388,754 Depreciation and amortization 578,326 12,700,436 - 13,278,762 Income/(Loss) from Operations $ (9,580,919 ) $ 31,624,873 $ (25,302,873 ) $ (3,258,919 ) Ammunition Marketplace Corporate and other expenses Total For the Year Ended March 31, 2022 Ammunition Marketplace Corporate and other expenses Total Net Revenues $ 175,660,650 $ 64,608,516 $ - $ 240,269,166 Cost of Revenues 142,773,306 8,732,351 - 151,505,657 General and administrative expense 11,932,721 8,434,308 17,544,970 37,911,999 Depreciation and amortization 1,579,778 12,122,370 - 13,702,148 Income/(Loss) from Operations $ 19,374,845 $ 35,319,487 $ (17,544,970 ) $ 37,149,362 |
SCHEDULE OF TOTAL ASSETS SEGMENTS | Total assets by segment were as follows: SCHEDULE OF TOTAL ASSETS SEGMENTS For the Year Ended March 31, 2024 March 31, 2023 March 31, 2022 Ammunition $ 163,864,522 $ 154,044,607 $ 160,305,107 Marketplace 236,037,694 258,290,780 253,873,206 $ 399,902,216 $ 412,335,387 $ 414,178,313 |
SCHEDULE OF CAPITAL EXPENDITURE SEGMENT | Total capital expenditures by segment were as follows: SCHEDULE OF CAPITAL EXPENDITURE SEGMENT 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 |
ORGANIZATION AND BUSINESS ACT_2
ORGANIZATION AND BUSINESS ACTIVITY (Details Narrative) - shares | Mar. 17, 2017 | Dec. 15, 2016 | Mar. 31, 2024 | Mar. 31, 2023 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Number of shares sold | 475,681 | |||
Number of shares issued for pre-split | 11,891,976 | |||
Reverse stock split | 1-for-25 reverse stock split (“Reverse Split”) of the issued and outstanding shares of the common stock of the Company. 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 | |||
Common stock, shares issued | 580,052 | 120,531,507 | 118,562,806 | |
Common stock, shares outstanding | 580,052 | 119,181,067 | 118,294,478 | |
Definitive Agreement [Member] | PRIVCO [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Number of common stock shares issued | 17,285,800 | |||
Number of shares retired | 475,681 | |||
Number of shares issued to satisfy issuance commitment | 500,000 | |||
Shares equivalent to issuance recapitalization | 604,371 |
SCHEDULE OF CONCENTRATION RISK
SCHEDULE OF CONCENTRATION RISK OF TOTAL REVENUES AND ACCOUNTS RECEIVABLE (Details) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue Benchmark [Member] | Customer A [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 12.20% | ||
Revenue Benchmark [Member] | Customer B [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | |||
Revenue Benchmark [Member] | Customer [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 12.20% | ||
Accounts Receivable [Member] | Customer A [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 11.80% | ||
Accounts Receivable [Member] | Customer B [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 11.80% | ||
Accounts Receivable [Member] | Customer [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 11.80% | 11.80% |
SCHEDULE OF DISAGGREGATED REVEN
SCHEDULE OF DISAGGREGATED REVENUE FROM CUSTOMERS BY SEGMENT (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Product Information [Line Items] | ||||
Total Sales | $ 145,054,572 | $ 191,439,801 | $ 240,269,166 | |
Ammunition Sales [Member] | ||||
Product Information [Line Items] | ||||
Total Sales | [1],[2] | 69,390,801 | 114,116,044 | 161,459,025 |
Marketplace Fee Revenue [Member] | ||||
Product Information [Line Items] | ||||
Total Sales | 53,942,076 | 63,149,673 | 64,608,516 | |
Ammunition Casings Sales [Member] | ||||
Product Information [Line Items] | ||||
Total Sales | $ 21,721,695 | $ 14,174,084 | $ 14,201,625 | |
[1]Included in revenue for the fiscal year ended March 31, 2024, 2023, and 2022 are excise taxes of $ 6,155,524 9,789,897 6,155,524 9,789,897 14,646,983 |
SCHEDULE OF DISAGGREGATED REV_2
SCHEDULE OF DISAGGREGATED REVENUE FROM CUSTOMERS BY SEGMENT (Details) (Parenthetical) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | |||
Excise tax | $ 6,155,524 | $ 9,789,897 | $ 14,646,983 |
SCHEDULE OF FAIR VALUE MEASUREM
SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES (Details) | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Measurement Input, Risk Free Interest Rate [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warrants measurement input | 4.1 | 3.9 | |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warrants measurement input | 1.21 | ||
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warrants measurement input | 1.74 | ||
Measurement Input, Price Volatility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warrants measurement input | 83.5 | 77.5 | |
Measurement Input, Price Volatility [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warrants measurement input | 89.1 | ||
Measurement Input, Price Volatility [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warrants measurement input | 90.7 | ||
Measurement Input, Expected Term [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fair value assumptions, measurement input, percentages | 5 years 9 months | 2 years 6 months | 2 years 6 months |
Measurement Input, Expected Dividend Rate [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warrants measurement input | 0 | 0 | 0 |
SCHEDULE OF FAIR VALUE OF COMMO
SCHEDULE OF FAIR VALUE OF COMMON STOCK AND WARRANTS (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Common Stock Purchase Options [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value | $ 430,457 | ||
Common Stock Purchase Options [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value | |||
Common Stock Purchase Options [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value | 430,457 | ||
Common Stock Purchase Options [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value | |||
Warrants Issued For Services [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value | $ 427,639 | $ 1,090,077 | |
Warrants Issued For Services [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value | |||
Warrants Issued For Services [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value | 427,639 | 1,090,077 | |
Warrants Issued For Services [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Equity fair value |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Jan. 18, 2024 | Apr. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Apr. 30, 2021 | [1] | |
Goodwill | $ 90,870,094 | $ 90,870,094 | $ 90,870,094 | ||||
Allowance for credit loss | 3,666,078 | 3,246,551 | $ 3,055,252 | ||||
Impairment expense | $ 0 | 0 | 0 | ||||
Excise tax percentage | 11% | ||||||
Excise taxes | $ 6,155,524 | 9,789,897 | 14,646,983 | ||||
Cash, FDIC insured amount | $ 250,000 | ||||||
Income tax examination, description | 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. | ||||||
Compensatory damages | $ 140,000,000 | ||||||
Loss Contingency, Damages Paid, Value | $ 100,000,000 | ||||||
Accrued contingencies | $ 1,400,000 | ||||||
Other contingencies | 0 | ||||||
Ammunition Segment [Member] | |||||||
Advertising expenses | 384,002 | 1,068,700 | 1,406,043 | ||||
Selling and Marketing Expense [Member] | |||||||
Advertising expenses | 1,149,596 | 1,355,179 | 1,823,060 | ||||
Cost of Sales [Member] | Marketplace [Member] | |||||||
Advertising expenses | $ 765,594 | 417,017 | |||||
Patents [Member] | Exclusive License Agreement [Member] | |||||||
Share price | $ 0.01 | ||||||
Royalty expenses | $ 22,754 | $ 99,268 | $ 44,764 | ||||
[1]Other intangible assets consist of Tradenames, Customer Relationships, Intellectual Property, and other tangible assets related to the acquired business. |
SCHEDULE OF INCOME_(LOSS) PER C
SCHEDULE OF INCOME/(LOSS) PER COMMON SHARE (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Net Income/(Loss) per share | |||
Net income/(loss) | $ (15,565,200) | $ (4,596,038) | $ 33,247,436 |
Less: Preferred stock dividends | (3,122,049) | (3,105,034) | (2,668,648) |
Net income/(loss) attributable to common stockholders | $ (18,687,249) | $ (7,701,072) | $ 30,578,788 |
Weighted average shares of common stock - basic | 118,249,486 | 117,177,885 | 112,328,680 |
Effect of dilutive common stock purchase warrants | 1,861,040 | ||
Effect of dilutive equity incentive awards | |||
Weighted average shares of common stock - Diluted | 118,249,486 | 117,177,885 | 114,189,720 |
Income/(loss) per share attributable to common stockholders - basic | $ (0.16) | $ (0.07) | $ 0.27 |
Income/(loss) per share attributable to common stockholders - diluted | $ (0.16) | $ (0.07) | $ 0.27 |
INCOME_(LOSS) PER COMMON SHAR_2
INCOME/(LOSS) PER COMMON SHARE (Details Narrative) - shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted Average Number of Shares Outstanding, Diluted | 118,249,486 | 117,177,885 | 114,189,720 |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,708,830 | ||
Weighted Average Number of Shares Outstanding, Diluted | 175,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,406,946 | 150,000 | |
Equity Incentive Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 20,000 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Credit Loss [Abstract] | |||
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) |
Accounts receivable, net | 28,221,321 | 29,346,380 | $ 43,955,084 |
Allowance for credit losses, beginning balance | 3,246,551 | 3,055,252 | |
Increase in allowance | 1,530,891 | 2,160,323 | |
Write-off of uncollectible amounts | (1,111,364) | (1,969,024) | |
Allowance for credit losses, ending balance | $ 3,666,078 | $ 3,246,551 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished product | $ 11,055,061 | $ 14,362,514 |
Raw materials | 24,158,244 | 23,898,596 |
Work in process | 10,350,029 | 16,083,709 |
Inventory net | $ 45,563,334 | $ 54,344,819 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 78,390,161 | $ 70,529,919 |
Less accumulated depreciation | (20,308,121) | (14,566,664) |
Net property and equipment | 58,082,040 | 55,963,255 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 257,009 | 257,009 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 29,143,445 | 28,623,329 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 439,990 | 384,650 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 153,254 | 153,254 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 45,467,137 | 40,233,186 |
Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 143,710 | 143,710 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,785,616 | $ 734,781 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Depreciation expense | $ 5,751,023 | $ 4,452,908 | $ 4,266,126 |
Cost of Sales [Member] | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Depreciation expense | 4,777,642 | 3,747,723 | 3,101,929 |
Operating Expense [Member] | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Depreciation expense | $ 973,381 | $ 705,185 | $ 1,164,197 |
REVOLVING LOAN (Details Narrati
REVOLVING LOAN (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2024 | Dec. 29, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Total commitment amount | $ 20,000,000 | |
Revolving loan description | 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”). | |
Sunflower Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Revolving loan description | 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 Agent, for the ratable benefit of Lenders, an origination fee, Prepayment Fee, unused facility fee, collateral monitoring fee and Lender Expenses. |
FACTORING LIABILITY (Details Na
FACTORING LIABILITY (Details Narrative) - USD ($) | 12 Months Ended | |||||
Dec. 29, 2023 | Jun. 17, 2021 | Jul. 01, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Interest expenses on factoring liability | $ 185,319 | $ 153,646 | $ 327,746 | |||
Amortization of commitment fee | $ 62,500 | $ 37,500 | $ 100,000 | |||
Maturity date | Jun. 17, 2025 | |||||
Termination agreement expenses | $ 281,108 | |||||
Factoring and Security Agreement [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Maximum advance amount | $ 5,000,000 | |||||
Line of credit facility interest rate during period | 85% | |||||
Fee percentage | 3% | |||||
Line of credit facility commitment fee amount | $ 150,000 | |||||
Factoring and Security Agreement [Member] | Prime Rate [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Line of credit facility interest rate during period | 4.50% |
INVENTORY CREDIT FACILITY (Deta
INVENTORY CREDIT FACILITY (Details Narrative) - USD ($) | 12 Months Ended | ||||
Jun. 17, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Jul. 31, 2020 | |
Inventory Credit Facility [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Interest expense on factoring liability | $ 0 | $ 6,580 | $ 40,940 | ||
Amortization of annual fee | $ 8,561 | ||||
Revolving Inventory Loan and Security Agreement [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Maximum loan amount | $ 35,000 | $ 2,250,000 | |||
Line of credit interest rate description | annualized interest rate of the greater of the three-month LIBOR rate plus 3.09% or 8% | ||||
Commitment fee percentage | 2% | ||||
Revolving Inventory Loan and Security Agreement [Member] | Eligible Inventory [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Maximum loan amount | $ 1,750,000 |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER NON-CANCELLABLE LEASES (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Leases | ||
2025 | $ 666,233 | |
2026 | 665,069 | |
2027 | 581,574 | |
2028 | 379,067 | |
2029 | 258,102 | |
Total Lease Payments | 2,550,045 | |
Less: Amount Representing Interest | (460,558) | |
Present value of lease liabilities | $ 2,089,487 | $ 1,374,224 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Jan. 31, 2022 | Sep. 30, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease, liability | $ 2,089,487 | $ 1,374,224 | |||
Right use of asset | 2,000,093 | 1,261,634 | |||
Operating lease liability | (499,448) | (647,480) | $ (732,468) | ||
Operating lease liability, current | 479,651 | 470,734 | |||
Operating lease liability non-current | 1,609,836 | 903,490 | |||
Consolidated lease expense | 663,826 | 881,171 | 1,221,473 | ||
Operating lease expense | 642,105 | 861,777 | 1,177,589 | ||
Other lease expenses | $ 21,722 | $ 19,394 | $ 43,884 | ||
Weighted average remaining lease term | 4 years | 3 years 3 months 18 days | |||
Weighted average discount rate for operating leases | 10% | 10% | |||
Previously Reported [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Right use of asset | $ 738,459 | ||||
Scottsdale Lease [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease, liability | $ 501,125 | ||||
Right use of asset | $ 501,125 | ||||
Operating lease liability | 38,185 | ||||
Marietta Lease [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease, liability | $ 308,326 | ||||
Right use of asset | $ 308,326 | ||||
Lease Agreement [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease, liability | 901,076 | ||||
Right use of asset | $ 901,076 |
NOTES PAYABLE _ RELATED PARTY (
NOTES PAYABLE – RELATED PARTY (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 17, 2021 | Jan. 22, 2021 | Nov. 05, 2020 | Jun. 26, 2020 | Mar. 14, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Mar. 25, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 16, 2021 | |
Short-Term Debt [Line Items] | ||||||||||||||||
Payment of note payable related party | $ 4,000,000 | |||||||||||||||
Debt description | The note bears interest per annum at approximately 4.6% payable in arrears monthly. | |||||||||||||||
Principal payments | 257,425 | 150,743 | ||||||||||||||
Debt instrument maturity date | Jun. 17, 2025 | |||||||||||||||
Settlement Agreement [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Payment of note payable related party | $ 6,000,000 | |||||||||||||||
Debt description | 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, 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 | |||||||||||||||
Principal payments | $ 1,269,977 | |||||||||||||||
Debt instrument maturity date | Aug. 15, 2021 | |||||||||||||||
Proceeds from advances for construction | $ 1,000,000 | |||||||||||||||
Post Closing Transaction Note Reduction [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Post-closing changes to the purchase price of transaction | $ 2,596,200 | $ 2,596,200 | ||||||||||||||
Decreased Equipment Net [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Post-closing changes to the purchase price of transaction | 1,871,306 | 1,871,306 | ||||||||||||||
Reduction in Other Intangible Assets [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Post-closing changes to the purchase price of transaction | 766,068 | 766,068 | ||||||||||||||
Increased Accounts Receivable [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Post-closing changes to the purchase price of transaction | 31,924 | 31,924 | ||||||||||||||
Increase to Deposits [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Post-closing changes to the purchase price of transaction | 9,250 | 9,250 | ||||||||||||||
Decreased Accumulated Amortization [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Post-closing changes to the purchase price of transaction | 159,530 | $ 159,530 | ||||||||||||||
Inventory and Services [Member] | Settlement Agreement [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Payment of note payable related party | 2,635,797 | |||||||||||||||
Promissory Note [Member] | Settlement Agreement [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Payment of note payable related party | $ 5,803,800 | |||||||||||||||
Note B [Member] | Settlement Agreement [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Payment of note payable related party | 592,982 | |||||||||||||||
Interest expenses | $ 62,876 | |||||||||||||||
Amended Note B [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Interest expenses | $ 1,788 | 48,665 | 110,518 | 60,100 | ||||||||||||
Amended Note B [Member] | Related Party [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Notes payable related party | $ 180,850 | $ 865,771 | ||||||||||||||
Amended Note B [Member] | Settlement Agreement [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Notes payable related party | $ 1,687,664 | |||||||||||||||
Debt interest rate | 9% | |||||||||||||||
Amended Note B [Member] | Settlement Agreement [Member] | Related Party [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Notes payable related party | $ 1,687,664 | |||||||||||||||
Note A [Member] | Settlement Agreement [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Interest expenses | $ 216,160 | |||||||||||||||
Jagemann Stamping Company [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Debt description | 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 | The note bears interest per annum at approximately 4.6% payable in arrears monthly | ||||||||||||||
Debt monthly payments | $ 204,295 | |||||||||||||||
Debt interest rate | 4.60% | 5% | ||||||||||||||
Jagemann Stamping Company [Member] | Settlement Agreement [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Debt description | 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 | |||||||||||||||
Debt instrument maturity date | Apr. 01, 2021 | |||||||||||||||
Stock repurchased during period, shares | 1,000,000 | |||||||||||||||
Shares issued, price per share | $ 1.50 | |||||||||||||||
Jagemann Stamping Company [Member] | Amended APA [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Stock repurchased during period, shares | 1,000,000 | |||||||||||||||
Shares issued, price per share | $ 1.50 | |||||||||||||||
Jagemann Stamping Company [Member] | Promissory Note [Member] | ||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||
Payment of note payable related party | $ 10,400,000 | $ 9,900,000 | $ 500,000 | $ 1,500,000 |
CONSTRUCTION NOTE PAYABLE (Deta
CONSTRUCTION NOTE PAYABLE (Details Narrative) | 12 Months Ended | |||
Oct. 14, 2021 USD ($) ft² | Jun. 17, 2021 | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt maturity date | Jun. 17, 2025 | |||
Debt instrument principal payment | $ 257,425 | $ 150,743 | ||
Restricted cash released | 500,000 | 500,000 | ||
Restricted cash | 500,000 | |||
Hiawatha National Bank [Member] | Promissory Note [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt interest rate | 4.50% | |||
Debt maturity date | Oct. 14, 2026 | |||
Hiawatha National Bank [Member] | Maximum [Member] | Promissory Note [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt face amount | $ 11,625,000 | |||
Debt periodic payment | $ 64,620 | |||
Construction Loan Agreement [Member] | Hiawatha National Bank [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Area of land | ft² | 160,000 | |||
Proceeds from notes payable | 11,200,000 | |||
Prepayment premium of note amount, percentage | 1% | |||
Debt default, description | The Loan Agreement contains customary events of default including, but not limited to, a failure to make any payments pursuant to the Loan Agreement or 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 Loan can be accelerated, Hiawatha can foreclose on the property pursuant to the mortgage, and a late charge of five percent (5%) of the amount due will be owed with all amounts then owed pursuant to the Note bearing interest at an increased rate | |||
Cash collateral or restricted cash | $ 1,000,000 | |||
Construction Loan Agreement [Member] | Hiawatha National Bank [Member] | First Advance [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Proceeds from notes payable | $ 329,843 | |||
Construction Loan Agreement [Member] | Hiawatha National Bank [Member] | Maximum [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt face amount | $ 11,625,000 | |||
Debt converison ratio | 1.25 | |||
Construction Loan Agreement [Member] | Hiawatha National Bank [Member] | Minimum [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt converison ratio | 1 |
SCHEDULE OF OUTSTANDING AND EXE
SCHEDULE OF OUTSTANDING AND EXERCISABLE STOCK PURCHASE WARRANTS (Details) - Warrant [Member] - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of shares, outstanding beginning | 2,460,946 | 2,933,755 | 3,607,945 |
Weighted average exercise price, outstanding beginning | $ 2.46 | $ 2.32 | $ 2.31 |
Weighted average life remaining years, outstanding beginning | 1 year 7 months 2 days | 2 years 3 months 14 days | 3 years 2 months 26 days |
Number of shares, granted | 150,000 | 200,000 | |
Weighted average exercise price, granted | $ 0.01 | $ 0.01 | |
Weighted average life remaining years, outstanding granted | 4 years 6 months | 3 years 11 months 1 day | |
Number of shares, exercised | (31,750) | (300,003) | (874,190) |
Weighted average exercise price, exercised | $ 2.40 | $ 0.34 | $ 1.76 |
Number of shares, forfeited or cancelled | (720,366) | (322,806) | |
Weighted average exercise price, forfeited or cancelled | $ 3.19 | $ 2 | |
Number of shares, outstanding ending | 1,708,830 | 2,460,946 | 2,933,755 |
Weighted average exercise price, outstanding ending | $ 2.16 | $ 2.46 | $ 2.32 |
Weighted average life remaining years, outstanding ending | 1 year 1 month 2 days | 1 year 7 months 2 days | 2 years 3 months 14 days |
Number of shares, exercisable | 1,708,830 | 2,460,946 | 2,933,755 |
Weighted average exercise price, exercisable | $ 2.16 | $ 2.46 | $ 2.32 |
Weighted average life remaining years, exercisable | 1 year 1 month 2 days | 1 year 7 months 2 days | 2 years 3 months 14 days |
SCHEDULE OF SHARE BASED COMPENS
SCHEDULE OF SHARE BASED COMPENSATION ARRANGEMENTS (Details) | 12 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Equity [Abstract] | |
Number of options | shares | 400,000 |
Vesting period | 3 years |
Grant price (per share) | $ 2.08 |
Expected dividend yields | |
Expected volatility | 83.50% |
Risk-free interest rates | 4.13% |
Expected lives | 5 years 9 months |
Weighted average fair value per share | $ 1.50 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Number of shares issued for merger, value | $ 142,691,282 | |||
Number of shares issued for services, shares | 772,450 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 400,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares | 300,000 | 100,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 25,000 | |||
Expenses related to options | $ 430,457 | |||
Shares Issued for Services [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued for services, value | $ 1,631,701 | |||
Warrant [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Shares issued cashless exercise of warrants | 99,762 | 374,584 | ||
Cashless exercise of warrants | 100,000 | 443,110 | ||
Warrants outstanding | 1,708,830 | |||
Issuance of warrants, description | 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 911 shares of Common Stock at an exercise price of $1.65 per share until April 2025; (2) 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; (3) warrants to purchase 77,500 shares of Common Stock at an exercise price of $2.40 until September 2024, and (4) warrants to purchase 386,311 shares of Common Stock at an exercise price of $2.63 until November 2025. | |||
Warrant One [Member] | Until April 2025 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Warrants issued to purchase common stock | 911 | |||
Warrants exercise price | $ 1.65 | |||
Warrant Two [Member] | Until August 2024 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Warrants issued to purchase common stock | 1,244,108 | |||
Warrants exercise price | $ 2 | |||
Warrant Three [Member] | Until September 2024 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Warrants issued to purchase common stock | 77,500 | |||
Warrants exercise price | $ 2.40 | |||
Warrant Four [Member] | Until November 2025 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Warrants issued to purchase common stock | 386,311 | |||
Warrants exercise price | $ 2.63 | |||
Gemini Direct Investments LLC [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued for merger, shares | 20,000,000 | |||
Number of shares issued for merger, value | $ 142,691,282 | |||
Investors [Member] | Warrant [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stock issued during period shares warrants exercised, shares | 31,750 | 200,003 | 431,080 | |
Stock issued during period value warrants exercised, value | $ 76,200 | $ 101,506 | $ 943,907 | |
Employees, Board of Directors, Advisory Committee [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Shares issued for employees benefit, shares | 1,936,951 | 1,777,294 | 1,807,666 | |
Shares issued for employees benefit, value | $ 4,082,108 | $ 5,807,779 | $ 5,759,000 | |
New Issuance of Shares [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock issued new shares, shares | 1,968,701 | 2,077,059 | 23,385,780 |
PREFERRED STOCK (Details Narrat
PREFERRED STOCK (Details Narrative) - USD ($) | 12 Months Ended | |||||||||||||||||||||||||||
Mar. 15, 2024 | Feb. 29, 2024 | Dec. 15, 2023 | Nov. 30, 2023 | Sep. 15, 2023 | Aug. 31, 2023 | Jun. 15, 2023 | May 31, 2023 | Mar. 15, 2023 | Feb. 28, 2023 | Dec. 15, 2022 | Nov. 30, 2022 | Sep. 15, 2022 | Aug. 17, 2022 | Jun. 15, 2022 | May 12, 2022 | Mar. 15, 2022 | Feb. 28, 2022 | Dec. 15, 2021 | Nov. 30, 2021 | Sep. 15, 2021 | Aug. 27, 2021 | May 25, 2021 | May 19, 2021 | May 18, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Dividend rate | 8.75% | 8.75% | ||||||||||||||||||||||||||
Proceeds from offering | $ 31,008,796 | |||||||||||||||||||||||||||
Accumulated preferred dividends | $ 144,618 | $ 144,618 | 144,562 | |||||||||||||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share price | $ 25 | |||||||||||||||||||||||||||
Dividend rate | 8.75% | 8.75% | ||||||||||||||||||||||||||
Preferred stock dividend rate per annum | $ 0.5529514 | $ 0.5529514 | $ 0.55902778 | $ 0.55902778 | $ 0.546875 | $ 0.5529514 | $ 0.55902778 | $ 0.559027777777778 | $ 0.546875 | $ 1.01475694444444 | $ 0.241246528 | $ 2.1875 | ||||||||||||||||
Dividend payment terms | payable quarterly in arrears on March 15, June 15, September 15, and December 15. | |||||||||||||||||||||||||||
Accumulated preferred dividends | $ 765,625 | $ 774,132 | $ 782,639 | $ 782,639 | $ 765,642 | $ 1,420,700 | $ 337,745 | $ 144,618 | ||||||||||||||||||||
Dividends paid | $ 774,132 | $ 774,132 | $ 782,639 | $ 782,639 | ||||||||||||||||||||||||
Series A Preferred Stock [Member] | August 27, 2021 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Accumulated preferred dividends | $ 144,562 | |||||||||||||||||||||||||||
Series A Preferred Stock [Member] | February 17. 2023 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Accumulated preferred dividends | $ 144,618 | |||||||||||||||||||||||||||
Series A Preferred Stock [Member] | Underwriting Agreement [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share price | $ 25 | $ 25 | ||||||||||||||||||||||||||
Number of common stock shares issued | 138,220 | 1,097,200 | ||||||||||||||||||||||||||
Proceeds from offering | $ 3,455,500 | $ 27,430,000 | ||||||||||||||||||||||||||
Series A Preferred Stock [Member] | Underwriting Agreement [Member] | Over-Allotment Option [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of common stock shares issued | 164,580 | |||||||||||||||||||||||||||
Proceeds from offering | $ 4,114,500 | |||||||||||||||||||||||||||
Series A Preferred Stock [Member] | Underwriting Agreement [Member] | Underwriters [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of common stock shares issued | 164,580 |
SCHEDULE OF FAIR VALUE OF CONSI
SCHEDULE OF FAIR VALUE OF CONSIDERATION TRANSFERRED (Details) | Apr. 30, 2021 USD ($) |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
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 |
SCHEDULE OF ALLOCATION FOR CONS
SCHEDULE OF ALLOCATION FOR CONSIDERATION (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 | Apr. 30, 2021 | ||
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||
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 | $ 90,870,094 | 90,870,094 | [1] | |
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. |
SCHEDULE OF UNAUDITED PRO FORMA
SCHEDULE OF UNAUDITED PRO FORMA RESULTS OF OPERATIONS (Details) | 12 Months Ended |
Mar. 31, 2022 USD ($) | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Net revenues | $ 248,314,587 |
Net income | $ 37,793,924 |
ACQUISITIONS (Details Narrative
ACQUISITIONS (Details Narrative) - USD ($) | 12 Months Ended | ||||
Apr. 30, 2021 | Apr. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | |||||
Contingent consideration payable, net of current portion | $ 59,838 | $ 140,378 | |||
Contingent consideration, amount | $ 10,755,000 | ||||
Working capital adjustments | $ 2,000,000 | ||||
Transaction cost | $ 1,300,000 | ||||
Business acquisitions pro form a interest and debt expense | $ 1,800,000 | ||||
Business acquisitions pro form a depreciation and amortization | $ 900,000 | ||||
Gemini Direct Investments LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, share price | $ 7.17 | ||||
Company received a cash payment | $ 50,000,000 | ||||
Business acquisition, cash acquired | 1,350,046 | ||||
Estimated working capital adjustment | 2,000,000 | ||||
Contingent consideration payable, net of current portion | 50,000,000 | ||||
Contingent consideration, amount | $ 10,755,000 | ||||
Shares issued prior stockholder | 1,500,000 | ||||
Business combination additional securities of common stock | 18,500,000 | ||||
Merger Agreement [Member] | Gemini Direct Investments LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, amount | $ 50,000,000 | ||||
Business acquisition, shares | 20,000,000 | ||||
Business acquisition, share price | $ 0.001 | ||||
Company received a cash payment | $ 129,114 | ||||
Consideration transferred | $ 1,870,886 | ||||
Without Being Held in Escrow or Requiring Prior Stockholder Approval [Member] | |||||
Business Acquisition [Line Items] | |||||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 14,500,000 | ||||
Pledge and Escrow Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 4,000,000 | ||||
Will Not Be Issued Prior to The Stockholder Approval [Member] | |||||
Business Acquisition [Line Items] | |||||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 1,500,000 |
SCHEDULE OF ACCRUED LIABILITIES
SCHEDULE OF ACCRUED LIABILITIES (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued FAET | $ 1,145,937 | $ 1,808,065 |
Accrued bonus program | 1,185,877 | |
Accrued professional fees | 1,134,368 | 736,323 |
Accrued payroll | 964,661 | 430,344 |
Other accruals | 417,496 | 618,243 |
Income taxes payable | 359,356 | 403,739 |
Unearned revenue | 1,822,972 | 101,593 |
Accrued sales commissions | 252,366 | |
Accrued interest | 2,681 | |
Accrued liabilities | $ 7,030,667 | $ 4,353,354 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 24, 2023 | Jul. 17, 2023 | Nov. 03, 2022 | Jun. 17, 2021 | Jan. 22, 2021 | Nov. 05, 2020 | Jun. 26, 2020 | Mar. 14, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Apr. 30, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Jul. 26, 2023 | Mar. 16, 2021 | |
Service payment due amount | $ 1,134,368 | $ 736,323 | |||||||||||||||
Shares for service | 772,450 | ||||||||||||||||
Common stock shares issued, value | $ 31,008,796 | ||||||||||||||||
Letter of credit | $ 1,600,000 | ||||||||||||||||
Deposits | $ 1,600,000 | ||||||||||||||||
Description of line of credit facility | The term of the certificate of deposit is twelve months and includes interest of approximately 5%. Per the terms of the Merger Agreement, filed with the Commission on a Current Report on Form 8-K on May 6, 2021 (the “Current Report”), the Seller is required to pay or be liable for these losses (capitalized terms are defined the Current Report). | ||||||||||||||||
Revenues | 145,054,572 | 191,439,801 | 240,269,166 | ||||||||||||||
Accounts receivable | 28,221,321 | 29,346,380 | 43,955,084 | ||||||||||||||
Debt instrument, description | The note bears interest per annum at approximately 4.6% payable in arrears monthly. | ||||||||||||||||
Accrued interest | $ 352,157 | ||||||||||||||||
Rent paid | 663,826 | 881,171 | 1,221,473 | ||||||||||||||
Principal payments | 257,425 | 150,743 | |||||||||||||||
Payment of note payable related party | 4,000,000 | ||||||||||||||||
Debt maturity date | Jun. 17, 2025 | ||||||||||||||||
Amended Note B [Member] | |||||||||||||||||
Interest expenses | $ 1,788 | 48,665 | $ 110,518 | 60,100 | |||||||||||||
Post Closing Transaction Note Reduction [Member] | |||||||||||||||||
Post-closing changes to the purchase price of transaction | $ 2,596,200 | $ 2,596,200 | |||||||||||||||
Decreased Equipment Net [Member] | |||||||||||||||||
Post-closing changes to the purchase price of transaction | 1,871,306 | 1,871,306 | |||||||||||||||
Reduction in Other Intangible Assets [Member] | |||||||||||||||||
Post-closing changes to the purchase price of transaction | 766,068 | 766,068 | |||||||||||||||
Increased Accounts Receivable [Member] | |||||||||||||||||
Post-closing changes to the purchase price of transaction | 31,924 | 31,924 | |||||||||||||||
Increase to Deposits [Member] | |||||||||||||||||
Post-closing changes to the purchase price of transaction | 9,250 | 9,250 | |||||||||||||||
Decreased Accumulated Amortization [Member] | |||||||||||||||||
Post-closing changes to the purchase price of transaction | $ 159,530 | $ 159,530 | |||||||||||||||
Jagemann Stamping Company [Member] | |||||||||||||||||
Debt instrument, description | 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 | The note bears interest per annum at approximately 4.6% payable in arrears monthly | |||||||||||||||
Debt interest rate | 4.60% | 5% | |||||||||||||||
Common Stock [Member] | |||||||||||||||||
Common stock shares issued, value | |||||||||||||||||
Settlement Agreement [Member] | |||||||||||||||||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 110,000 | ||||||||||||||||
Common stock shares issued, value | $ 385,000 | ||||||||||||||||
Costs, fees and expenses | $ 500,000 | ||||||||||||||||
Debt instrument, description | 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, 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 | ||||||||||||||||
Principal payments | $ 1,269,977 | ||||||||||||||||
Payment of note payable related party | $ 6,000,000 | ||||||||||||||||
Debt maturity date | Aug. 15, 2021 | ||||||||||||||||
Settlement Agreement [Member] | Maximum [Member] | |||||||||||||||||
Option grant to repurchase | 1,000,000 | ||||||||||||||||
Settlement Agreement [Member] | Monthly Payments [Member] | |||||||||||||||||
Principal payments | $ 204,295 | ||||||||||||||||
Settlement Agreement [Member] | Ninety Percent [Member] | |||||||||||||||||
Proceeds from Notes payable | 10,000,000 | ||||||||||||||||
Settlement Agreement [Member] | Hundred Percent [Member] | |||||||||||||||||
Proceeds from Notes payable | 10,000,000 | ||||||||||||||||
Settlement Agreement [Member] | Seller Note [Member] | |||||||||||||||||
Payment of note payable related party | 5,803,800 | ||||||||||||||||
Settlement Agreement [Member] | Note B [Member] | |||||||||||||||||
Payment of note payable related party | $ 592,982 | ||||||||||||||||
Interest expenses | 62,876 | ||||||||||||||||
Settlement Agreement [Member] | Amended Note B [Member] | |||||||||||||||||
Debt interest rate | 9% | ||||||||||||||||
Notes payable related party | $ 1,687,664 | ||||||||||||||||
Debt instrument term | 36 months | ||||||||||||||||
Settlement Agreement [Member] | Inventory and Services [Member] | |||||||||||||||||
Payment of note payable related party | $ 2,635,797 | ||||||||||||||||
Settlement Agreement [Member] | Jagemann Stamping Company [Member] | |||||||||||||||||
Debt instrument, description | 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 | ||||||||||||||||
Debt maturity date | Apr. 01, 2021 | ||||||||||||||||
Share price per share | $ 1.50 | ||||||||||||||||
Shares repurchase | 1,000,000 | ||||||||||||||||
Settlement Agreement [Member] | Common Stock [Member] | |||||||||||||||||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 125,000 | ||||||||||||||||
Common stock shares issued, value | $ 437,500 | ||||||||||||||||
Administrative and Management Services [Member] | |||||||||||||||||
Inventory purchased during period | 2,000,000 | 1,700,000 | |||||||||||||||
Rent paid | 170,355 | 408,852 | |||||||||||||||
Amended APA [Member] | Jagemann Stamping Company [Member] | |||||||||||||||||
Share price per share | $ 1.50 | ||||||||||||||||
Shares repurchase | 1,000,000 | ||||||||||||||||
Two Independent Contractors [Member] | |||||||||||||||||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 134,240 | ||||||||||||||||
Related Party [Member] | |||||||||||||||||
Accounts receivable | $ 201,646 | ||||||||||||||||
Accounts receivable | 150,866 | ||||||||||||||||
Accounts receivable | 182,344 | 139,164 | |||||||||||||||
Related Party [Member] | Amended Note B [Member] | |||||||||||||||||
Notes payable related party | 180,850 | 865,771 | |||||||||||||||
Related Party [Member] | Settlement Agreement [Member] | Amended Note B [Member] | |||||||||||||||||
Notes payable related party | $ 1,687,664 | ||||||||||||||||
Board Of Directors [Member] | Marketplace Revenue [Member] | |||||||||||||||||
Revenues | 215,300 | 1,042,277 | |||||||||||||||
Two Independent Contractors [Member] | |||||||||||||||||
Service fees | 410,173 | $ 551,916 | |||||||||||||||
Service payment due amount | $ 244,640 | $ 223,333 | |||||||||||||||
Shares for service | 168,581 | 141,419 | |||||||||||||||
Service paid | $ 494,967 | ||||||||||||||||
Foregoing [Member] | |||||||||||||||||
Service paid | $ 350,345 | ||||||||||||||||
Advisory Committee [Member] | |||||||||||||||||
Shares for service | 25,000 | 45,000 | |||||||||||||||
Service paid | $ 53,250 | $ 129,750 | $ 173,000 | ||||||||||||||
Fred Wagenhals [Member] | |||||||||||||||||
Issuance of Series A Preferred Stock, net of issuance costs, shares | 300,000 | ||||||||||||||||
Payments to Employees | $ 1,060,290 | ||||||||||||||||
Common stock shares issued, value | $ 624,000 | ||||||||||||||||
Independent Contractor [Member] | |||||||||||||||||
Shares for service | 60,000 | ||||||||||||||||
Service paid | $ 229,083 |
SCHEDULE OF INCOME TAX PROVISIO
SCHEDULE OF INCOME TAX PROVISION BENEFIT (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
US Federal | $ (1,302,811) | ||
US State | (446,677) | ||
Total current provision | (1,749,488) | ||
US Federal | 3,004,239 | (578,679) | (7,727,011) |
US State | 786,824 | (151,559) | (2,649,261) |
Total deferred benefit | 3,791,063 | (730,238) | (10,376,272) |
Change in valuation allowance | 8,839,791 | ||
Income tax (provision) benefit | $ 3,791,063 | $ (730,238) | $ (3,285,969) |
SCHEDULE OF RECONCILIATION OF I
SCHEDULE OF RECONCILIATION OF INCOME TAX (Details) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Computed tax expense | 21% | 21% | 21% |
State taxes, net of Federal income tax benefit | 5% | 6% | 7% |
Change in valuation allowance | 0% | 0% | (24.00%) |
Employee stock awards | (7.00%) | (40.00%) | 4% |
Other | (1.00%) | 0% | 0% |
Stock and Warrants on Note Conversion | 0% | (5.00%) | 1% |
Total provision for income taxes | 18% | (18.00%) | 9% |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 5,397,983 | $ 871,331 |
Loss on purchase | 826,311 | 826,311 |
Other | 314,257 | |
Total deferred tax assets | 6,538,461 | 1,697,642 |
Depreciation expense | (3,007,227) | (2,906,214) |
Other | (2,044,236) | (1,101,020) |
Total deferred tax liabilities | (5,051,463) | (4,007,234) |
Net deferred tax assets | 1,486,998 | |
Net deferred tax liabilities | (2,309,592) | |
Valuation allowance | ||
Net deferred tax assets | $ 1,486,998 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Effective income tax percentage | 18% |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 115,588,357 | |
Licensing Agreement - Jesse James [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 5 years | 5 years |
Intangible assets, gross | $ 125,000 | $ 125,000 |
Licensing Agreement - Jeff Rann [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 5 years | 5 years |
Intangible assets, gross | $ 125,000 | $ 125,000 |
Streak Visual Ammunition Patent [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 11 years 2 months 12 days | 11 years 2 months 12 days |
Intangible assets, gross | $ 950,000 | $ 950,000 |
SWK Patent Acquisition [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 15 years | 15 years |
Intangible assets, gross | $ 6,124,005 | $ 6,124,005 |
Customer Relationships [Member] | Jagemann Munition Components [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 3 years | 3 years |
Intangible assets, gross | $ 1,450,613 | $ 1,450,613 |
Intellectual Property [Member] | GDI Acquisition [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 10 years | 10 years |
Intangible assets, gross | $ 4,224,442 | $ 4,224,442 |
Intellectual Property [Member] | Jagemann Munition Components [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 3 years | 3 years |
Intangible assets, gross | $ 1,543,548 | $ 1,543,548 |
Trade Names [Member] | GDI Acquisition [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 15 years | 15 years |
Intangible assets, gross | $ 76,532,389 | $ 76,532,389 |
Trade Names [Member] | Jagemann Munition Components [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 5 years | 5 years |
Intangible assets, gross | $ 2,152,076 | $ 2,152,076 |
Customer Lists [Member] | GDI Acquisition [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 10 years | 10 years |
Intangible assets, gross | $ 65,252,802 | $ 65,252,802 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 151,763,617 | 151,763,617 |
Accumulated amortization | (40,714,550) | (28,036,807) |
Intangible assets, net | $ 111,049,067 | $ 123,726,810 |
Other Intangible Assets [Member] | GDI Acquisition [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement, life | 5 years | 5 years |
Intangible assets, gross | $ 607,747 | $ 607,747 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 250,000 | 250,000 |
Accumulated amortization | (250,000) | (250,000) |
Intangible assets, net | ||
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 7,074,005 | 7,074,005 |
Accumulated amortization | (2,534,715) | (2,041,251) |
Intangible assets, net | $ 4,539,290 | $ 5,032,754 |
SCHEDULE OF ANNUAL AMORTIZATION
SCHEDULE OF ANNUAL AMORTIZATION OF INTANGIBLE ASSET (Details) | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2025 | $ 12,650,642 |
2026 | 12,614,775 |
2027 | 12,549,188 |
2028 | 12,543,226 |
2029 | 12,507,792 |
Thereafter | 52,722,734 |
Annual amortization of intangible assets | $ 115,588,357 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Apr. 30, 2021 | [1] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Goodwill | $ 90,870,094 | $ 90,870,094 | $ 90,870,094 | ||
Amortization of intangible assets | $ 13,062,874 | $ 13,067,041 | $ 13,072,967 | ||
Merger Agreement [Member] | Gemini Direct Investments LLC [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Goodwill | $ 90,870,094 | ||||
[1]Other intangible assets consist of Tradenames, Customer Relationships, Intellectual Property, and other tangible assets related to the acquired business. |
SCHEDULE OF OPERATING SEGMENTS
SCHEDULE OF OPERATING SEGMENTS (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from External Customer [Line Items] | |||
Total Revenues | $ 145,054,572 | $ 191,439,801 | $ 240,269,166 |
Cost of Revenues | 102,431,803 | 136,031,204 | 151,505,657 |
General and administrative expense | 47,657,175 | 45,388,754 | 37,911,999 |
Depreciation and amortization | 13,542,791 | 13,278,762 | 13,702,148 |
Income/(Loss) from Operations | (18,577,197) | (3,258,919) | 37,149,362 |
Ammunition [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | 91,112,496 | 128,290,128 | 175,660,650 |
Cost of Revenues | 94,771,262 | 126,914,265 | 142,773,306 |
General and administrative expense | 8,967,456 | 10,378,456 | 11,932,721 |
Depreciation and amortization | 508,485 | 578,326 | 1,579,778 |
Income/(Loss) from Operations | (13,134,707) | (9,580,919) | 19,374,845 |
Marketplace [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | 53,942,076 | 63,149,673 | 64,608,516 |
Cost of Revenues | 7,660,541 | 9,116,939 | 8,732,351 |
General and administrative expense | 9,885,131 | 9,707,425 | 8,434,308 |
Depreciation and amortization | 13,034,306 | 12,700,436 | 12,122,370 |
Income/(Loss) from Operations | 23,362,098 | 31,624,873 | 35,319,487 |
Corporate and Other Expenses [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | |||
Cost of Revenues | |||
General and administrative expense | 28,804,588 | 25,302,873 | 17,544,970 |
Depreciation and amortization | |||
Income/(Loss) from Operations | $ (28,804,588) | $ (25,302,873) | $ (17,544,970) |
SCHEDULE OF TOTAL ASSETS SEGMEN
SCHEDULE OF TOTAL ASSETS SEGMENTS (Details) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 399,902,216 | $ 412,335,387 | $ 414,178,313 |
Ammunition [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 163,864,522 | 154,044,607 | 160,305,107 |
Marketplace [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 236,037,694 | $ 258,290,780 | $ 253,873,206 |
SCHEDULE OF CAPITAL EXPENDITURE
SCHEDULE OF CAPITAL EXPENDITURE SEGMENT (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Payment to acquire property and plant equipment | $ 8,024,765 | $ 12,541,325 | $ 19,218,982 |
Ammunition [Member] | |||
Segment Reporting Information [Line Items] | |||
Payment to acquire property and plant equipment | 5,519,135 | 10,819,177 | 17,728,023 |
Marketplace [Member] | |||
Segment Reporting Information [Line Items] | |||
Payment to acquire property and plant equipment | $ 2,505,630 | $ 1,722,148 | $ 1,490,959 |