Restatement of Consolidated Financial Statements for Fiscal Years Ended June 30, 2019–2021

Summary

This document details the restatement of previously reported financial statements by the company for the fiscal years ending June 30, 2019, 2020, and 2021. It compares original and restated figures for key financial metrics such as inventory, income, and cash flows, and explains the adjustments made, primarily related to inventory accounting. The restatement affects reported net income, earnings per share, and other financial data, but does not change the total cash provided by operating activities. The document is intended to provide transparency and accurate financial information to shareholders and regulators.

EX-4.0 2 nssc-20220516xex4d0.htm EX-4.0

Exhibit 4.0

Effects of Restatement

The table below sets forth the consolidated balance sheets information, including the balances originally reported and the restated balances as of:

7
	June 30, 2021					June 30, 2020

	(in thousands, except for share and per share data)
	As previously reported		Restated		% increase/ (decrease)	As previously reported		Restated		% increase/ (decrease)
Inventory - Current	$	25,278	$	24,933	(1.4)%	$	35,231	$	34,727	(1.4)%
Inventory - Non-Current		7,164		6,767	(5.5)%		6,524		5,688	(12.8)%
Accrued income taxes		1,635		1,709	4.5%		1,148		1,239	7.9%
Deferred income taxes		347		380	9.5%		112		43	(61.6)%
Retained Earnings		94,345		93,312	(1.1)%		79,444		77,899	(1.9)%

Retained earning as of the beginning of fiscal 2019 has been adjusted by $894 related to the restatement of inventories ($902) net of tax effect of ($7).

The tables below set forth the consolidated statements of income information, including the balances originally reported and the restated balances for the fiscal years ended:


	June 30, 2021
	(in thousands, except for share and per share data)
	As previously reported		Restated		% increase/ (decrease)
Equipment Related Expenses	$	58,998	$	58,401	(1.0)%
Cost of Sales		63,884		63,287	(0.9)%
Gross Profit		50,151		50,748	1.2%
Operating Income		17,335		17,932	3.4%
Income before Provision for Income Taxes		17,330		17,927	3.4%
Provision for Income Taxes		2,429		2,514	3.5%
Net Income		14,901		15,413	3.4%

Income per share:
Basic	$	0.41	$	0.42	3.4%
Diluted	$	0.41	$	0.42	3.4%

7
	June 30, 2020
	(in thousands, except for share and per share data)
	As previously reported		Restated		% increase/ (decrease)
Equipment Related Expenses	$	53,434	$	54,182	1.4%
Cost of Sales		57,767		58,515	1.3%
Gross Profit		43,592		42,844	(1.7)%
Operating Income		10,813		10,065	(6.9)%
Income before Provision for Income Taxes		10,804		10,056	(6.9)%
Provision for Income Taxes		2,284		2,261	(1.0)%
Net Income		8,520		7,795	(8.5)%

Income per share:
Basic	$	0.23	$	0.21	(8.7)%
Diluted	$	0.23	$	0.21	(8.7)%


	June 30, 2019
	(in thousands, except for share and per share data)
	As previously reported		Restated		% increase/ (decrease)
Equipment Related Expenses	$	55,240	$	54,930	(0.6)%
Cost of Sales		59,042		58,732	(0.5)%
Gross Profit		43,890		44,200	0.7%
Operating Income		13,466		13,776	2.3%
Income before Provision for Income Taxes		13,445		13,755	2.3%
Provision for Income Taxes		1,222		1,274	4.3%
Net Income		12,223		12,481	2.1%

Income per share:
Basic	$	0.33	$	0.34	3.0%
Diluted	$	0.33	$	0.34	3.0%

The tables below sets forth the consolidated statements of cash flows information, including the balances originally reported and the restated balances for the fiscal years ended June 30:

	June 30, 2021
	(in thousands, except for share and per share data)
	As previously reported		Restated		% increase/ (decrease)
Net income	$	14,901	$	15,413	3.4%
Change to inventory obsolescence reserve		519		(79)	(115.2)%
Deferred income taxes		235		337	43.4%
Changes in operating assets and liabilities:
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes		1,906		1,889	(0.9)%
Net Cash Provided by Operating Activities		22,987		22,987	0.0%

	June 30, 2020
	(in thousands, except for share and per share data)
	As previously reported		Restated		% increase/ (decrease)
Net income	$	8,520	$	7,795	(8.5)%
Change to inventory obsolescence reserve		(124)		624	(603.2)%
Deferred income taxes		40		(47)	(217.5)%
Changes in operating assets and liabilities:
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes		1,862		1,926	3.4%
Net Cash Provided by Operating Activities		10,305		10,305	0.0%

	June 30, 2019
	(in thousands, except for share and per share data)
	As previously reported		Restated		% increase/ (decrease)
Net income	$	12,223	$	12,481	2.1%
Change to inventory obsolescence reserve		(272)		(582)	114.0%
Deferred income taxes		755		755	0.0%
Changes in operating assets and liabilities:
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes		1,528		1,580	3.4%
Net Cash Provided by Operating Activities		8,653		8,653	0.0%