ADDED
There were 8,277,627 shares of the registrant s common stock outstanding as of July 31, 2025.
( we or the Company ) is filing this comprehensive Annual Report on Form 10-K for the fiscal year ended April 30, 2025 (this Form 10-K ).
This comprehensive Form 10-K contains the restatement of the Company s Consolidated Financial Statements for the fiscal year ended April 30, 2024 and also includes restated disclosure information from each of the quarterly periods included in the Company s Quarterly Reports on Form 10-Q filed during the fiscal years ended April 30, 2025 and 2024.
These omitted disclosures relate to our systematic modification program affecting $436.1 million, or 28.9%, of the Company s gross finance receivables as of April 30, 2025.
As further described in Item 7, Management s Discussion and Analysis of Financial Condition and Results of Operations, included in Part II of this Form 10-K, in connection with the preparation of the Company s financial statements for the fiscal year ended April 30, 2025, the Company concluded that there were omissions in our prior period financial statements with respect to required disclosures under the Financial Accounting Standards Board s Accounting Standards Update ( ASU ) 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.
The Company reviewed the requirements of ASC 310-10-50-42 through 50-44, and based on its review, concluded that detailed disclosures were required for contract modifications made to borrowers experiencing financial difficulty, which had not been previously included in our financial statements.
The restatement to include the omitted disclosures does not have any impact on the Company s Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows, as previously reported.
The Company is including the required disclosure information for such contract modifications in this Form 10-K.
Internal Control Considerations As discussed in Part II, Item 9A, Controls and Procedures, to this Form 10-K, in connection with the restatement to include the incremental required disclosures discussed above, management identified a material weakness in its internal control over financial reporting in relation to having inadequate controls to appropriately analyze all relevant information required for complete and accurate presentation and disclosure under generally accepted accounting principles ( GAAP ).
This principally resulted from (1) incorrect assessment during the initial adoption of ASU 2022-02, (2) ineffective disclosure controls and procedures that did not identify missing required disclosures under ASC 310-10-50-42 through 50-44, and (3) turnover in technical accounting resources leading to a reduction of requisite expertise.
REMOVED
There were 6,396,757 shares of the registrant s common stock outstanding as of July 11 , 2024 .
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Over the last five fiscal years, the Company s annual provision for credit losses as a percentage of sales have ranged from a low of 19.31% in fiscal 2021 to 36.48% in fiscal 2024 (average of 26.36%).
During fiscal 2024, credit losses signaled a return to more normal pre-pandemic levels, but customers are still faced with continued inflationary pressure and increasing interest rates from federal monetary policy.
The percentage of credit loss as a percentage of sales was impacted by the lower sales revenue in fiscal 2024.
Each dealership is ultimately responsible for the quality of its vehicles, making sales contacts, making credit decisions with our loan origination system, and collecting the contracts it originates in accordance with established policies and procedures.
Approximately 50% of customers make their payments in person at one of the Company s dealerships.
This decentralized structure is complemented by the oversight and involvement of corporate office management and the maintenance of centralized financial controls, including monitoring proprietary credit scoring, establishing standards for down-payments and contract terms, and an internal compliance function.
5 Expanding Through Controlled Organic Growth and Strategic Acquisitions.
The Company grows by increasing revenues at existing dealerships and opening or acquiring new dealerships.