☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 14-1541629 | |
State or Other Jurisdiction of Incorporation or Organization | I.R.S. Employer Identification No. | |
2818 N. Sullivan Rd. Ste 130 Spokane Valley, WA | 99216 | |
Address of Principal Executive Offices | Zip Code |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $.01 par value per share | KSPN | NASDAQ Stock Market |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☒ | Smaller reporting company ☒ |
Emerging growth company ☐ |
Form 10-Q Page No. | |
PART I. FINANCIAL INFORMATION | |
Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited) | |
4 | |
5 | |
6 | |
7 | |
8 | |
28 | |
PART II. OTHER INFORMATION | |
29 | |
29 | |
29 | |
29 | |
29 | |
29 | |
29 | |
31 |
April 30, | January 29, | May 1, | ||||||||||
2022 | 2022 | 2021 | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS | ||||||||||||
Cash and cash equivalents | $ | 828 | $ | 1,218 | $ | 5,030 | ||||||
Restricted cash | 1,158 | 1,158 | 1,184 | |||||||||
Accounts receivable | 2,727 | 2,335 | 3,113 | |||||||||
Merchandise inventory | 32,254 | 29,277 | 22,567 | |||||||||
Prepaid expenses and other current assets | 558 | 649 | 592 | |||||||||
Total current assets | 37,525 | 34,637 | 32,486 | |||||||||
Restricted cash | 2,160 | 2,447 | 3,277 | |||||||||
Fixed assets, net | 2,441 | 2,335 | 2,366 | |||||||||
Operating lease right-of-use assets | 1,990 | 2,144 | 2,595 | |||||||||
Intangible assets, net | 0 | 0 | 475 | |||||||||
Cash surrender value | 3,800 | 4,154 | 4,168 | |||||||||
Other assets | 872 | 965 | 1,230 | |||||||||
TOTAL ASSETS | $ | 48,788 | $ | 46,682 | $ | 46,597 | ||||||
LIABILITIES | ||||||||||||
CURRENT LIABILITIES | ||||||||||||
Accounts payable | $ | 7,664 | $ | 6,271 | $ | 5,682 | ||||||
Short-term borrowings | 10,508 | 9,966 | 0 | |||||||||
Accrued expenses and other current liabilities | 2,208 | 2,362 | 2,640 | |||||||||
Current portion of operating lease liabilities | 663 | 649 | 609 | |||||||||
Current portion of PPP loan | 0 | 0 | 2,018 | |||||||||
Total current liabilities | 21,043 | 19,248 | 10,949 | |||||||||
Operating lease liabilities | 1,439 | 1,608 | 2,101 | |||||||||
Long-term debt | 7,944 | 4,356 | 5,261 | |||||||||
Other long-term liabilities | 13,987 | 14,185 | 15,954 | |||||||||
TOTAL LIABILITIES | 44,413 | 39,397 | 34,265 | |||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||
Preferred stock ($0.01 par value; 5,000,000 shares authorized; NaN issued) | 0 | 0 | 0 | |||||||||
Common stock ($0.01 par value; 200,000,000 shares authorized; 3,902,985, 3,902,985 and 3,889,169 shares issued, respectively) | 39 | 39 | 39 | |||||||||
Additional paid-in capital | 360,738 | 359,220 | 358,749 | |||||||||
Treasury stock at cost (1,410,417, 1,410,417 and 1,410,417 shares, respectively) | (230,170 | ) | (230,170 | ) | (230,170 | ) | ||||||
Accumulated other comprehensive loss | (910 | ) | (910 | ) | (2,007 | ) | ||||||
Accumulated deficit | (125,322 | ) | (120,894 | ) | (114,279 | ) | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 4,375 | 7,285 | 12,332 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 48,788 | $ | 46,682 | $ | 46,597 |
Thirteen Weeks Ended | ||||||||
April 30, 2022 | May 1, 2021 | |||||||
Net revenue | $ | 31,791 | $ | 40,617 | ||||
Cost of sales | 24,940 | 30,821 | ||||||
Gross profit | 6,851 | 9,796 | ||||||
Selling, general and administrative expenses | 10,517 | 10,657 | ||||||
Loss from operations | (3,666 | ) | (861 | ) | ||||
Interest expense | 762 | 555 | ||||||
Loss from operations before income tax expense | (4,428 | ) | (1,416 | ) | ||||
Income tax expense | 0 | 0 | ||||||
Net loss | $ | (4,428 | ) | $ | (1,416 | ) | ||
BASIC AND DILUTED INCOME PER SHARE: | ||||||||
Basic and diluted loss per common share | $ | (1.78 | ) | $ | (0.61 | ) | ||
Weighted average number of common shares outstanding – basic and diluted | 2,493 | 2,317 |
May 1, | January 30, | May 2, | ||||||||||
2021 | 2021 | 2020 | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS | ||||||||||||
Cash and cash equivalents | $ | 5,030 | $ | 1,809 | $ | 7,078 | ||||||
Restricted cash | 1,184 | 1,184 | 950 | |||||||||
Accounts receivable | 3,113 | 2,718 | 2,644 | |||||||||
Merchandise inventory | 22,567 | 24,515 | 17,157 | |||||||||
Prepaid expenses and other current assets | 592 | 564 | 639 | |||||||||
Total current assets | 32,486 | 30,790 | 28,468 | |||||||||
Restricted cash | 3,277 | 3,562 | 4,648 | |||||||||
Fixed assets, net | 2,366 | 2,268 | 2,256 | |||||||||
Operating lease right-of-use assets | 2,595 | 2,742 | 3,171 | |||||||||
Intangible assets, net | 475 | 732 | 1,503 | |||||||||
Cash Surrender Value | 4,168 | 3,856 | 3,056 | |||||||||
Other assets | 1,230 | 1,342 | 2,138 | |||||||||
TOTAL ASSETS | $ | 46,597 | $ | 45,292 | $ | 45,240 | ||||||
LIABILITIES | ||||||||||||
CURRENT LIABILITIES | ||||||||||||
Accounts payable | $ | 5,682 | $ | 8,894 | $ | 5,938 | ||||||
Short-term borrowings | - | 6,339 | 4,531 | |||||||||
Accrued expenses and other current liabilities | 2,640 | 2,512 | 5,046 | |||||||||
Current portion of operating lease liabilities | 609 | 596 | 551 | |||||||||
Current portion of PPP loan | 2,018 | 1,687 | - | |||||||||
Total current liabilities | 10,949 | 20,028 | 16,066 | |||||||||
Operating lease liabilities | 2,101 | 2,258 | 2,714 | |||||||||
PPP Loan | - | 330 | 2,018 | |||||||||
Long-term debt | 5,261 | 5,000 | 4,170 | |||||||||
Other long-term liabilities | 15,954 | 16,187 | 19,820 | |||||||||
TOTAL LIABILITIES | 34,265 | 43,803 | 44,788 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued) | - | - | - | |||||||||
Common stock ($0.01 par value; 200,000,000 shares authorized; 3,889,169, 3,336,576 and 3,235,576 shares issued, respectively) | 39 | 33 | 32 | |||||||||
Additional paid-in capital | 358,749 | 346,495 | 346,442 | |||||||||
Treasury stock at cost (1,410,417, 1,410,378 and 1,410,378 shares, respectively) | (230,170 | ) | (230,169 | ) | (230,169 | ) | ||||||
Accumulated other comprehensive loss | (2,007 | ) | (2,007 | ) | (1,476 | ) | ||||||
Accumulated deficit | (114,279 | ) | (112,863 | ) | (114,377 | ) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 12,332 | 1,489 | 452 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 46,597 | $ | 45,292 | $ | 45,240 |
Thirteen Weeks Ended | ||||||||
May 1, 2021 | May 2, 2020 | |||||||
Net revenue | $ | 40,617 | $ | 31,589 | ||||
Cost of sales | 30,821 | 23,671 | ||||||
Gross profit | 9,796 | 7,918 | ||||||
Selling, general and administrative expenses | 10,657 | 13,096 | ||||||
Loss from operations | (861 | ) | (5,178 | ) | ||||
Interest expense | 555 | 228 | ||||||
Loss from operations before income tax expense | (1,416 | ) | (5,406 | ) | ||||
Income tax expense | - | - | ||||||
Net loss | $ | (1,416 | ) | $ | (5,406 | ) | ||
BASIC AND DILUTED INCOME PER SHARE: | ||||||||
Basic and diluted loss per common share | $ | (0.61 | ) | $ | (2.97 | ) | ||
Weighted average number of common shares outstanding – basic and diluted | 2,317 | 1,820 |
Thirteen Weeks Ended | ||||||||
April 30, 2022 | May 1, 2021 | |||||||
Net loss | $ | (4,428 | ) | $ | (1,416 | ) | ||
Amortization of pension gain | 0 | 0 | ||||||
Comprehensive loss | $ | (4,428 | ) | $ | (1,416 | ) |
Thirteen Weeks Ended April 30, 2022 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Shareholders’ Equity | |||||||||||||||||||||||||||||
Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock At Cost | ||||||||||||||||||||||||||||
Balance as of January 29, 2022 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,220 | $ | (230,170 | ) | $ | (910 | ) | $ | (120,894 | ) | $ | 7,285 | ||||||||||||||
Net Loss | - | - | 0 | 0 | 0 | 0 | (4,428 | ) | (4,428 | ) | ||||||||||||||||||||||
Issuance of warrants | 0 | - | 0 | 1,518 | 0 | 0 | 0 | 1,518 | ||||||||||||||||||||||||
Balance as of April 30, 2022 | 3,903 | $ | (1,410 | ) | $ | 39 | $ | 360,738 | $ | (230,170 | ) | $ | (910 | ) | $ | (125,322 | ) | $ | 4,375 |
Thirteen Weeks Ended May 1, 2021 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Shareholders’ Equity | |||||||||||||||||||||||||||||
Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock At Cost | ||||||||||||||||||||||||||||
Balance as of January 30, 2021 | 3,337 | (1,410 | ) | $ | 33 | $ | 346,495 | $ | (230,169 | ) | $ | (2,007 | ) | $ | (112,863 | ) | $ | 1,489 | ||||||||||||||
Net Loss | - | - | 0 | 0 | 0 | 0 | (1,416 | ) | (1,416 | ) | ||||||||||||||||||||||
Exercise of warrants | 136 | 0 | 2 | 0 | (1 | ) | 0 | 0 | 1 | |||||||||||||||||||||||
Sale of shares, net of expenses | 416 | 0 | 4 | 12,227 | 0 | 0 | 0 | 12,231 | ||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | 0 | 27 | 0 | 0 | 0 | 27 | ||||||||||||||||||||||||
Balance as of May 1, 2021 | 3,889 | $ | (1,410 | ) | $ | 39 | $ | 358,749 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (114,279 | ) | $ | 12,332 |
Thirteen Weeks Ended | ||||||||
May 1, 2021 | May 2, 2020 | |||||||
Net loss | $ | (1,416 | ) | $ | (5,406 | ) | ||
Amortization of pension gain | - | 1 | ||||||
Comprehensive loss | $ | (1,416 | ) | $ | (5,405 | ) |
Thirteen Weeks Ended | ||||||||
April 30, 2022 | May 1, 2021 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income loss | $ | (4,428 | ) | $ | (1,416 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of fixed assets | 293 | 346 | ||||||
Amortization of intangible assets | 0 | 257 | ||||||
Stock-based compensation | 0 | 27 | ||||||
Interest on long-term debt | 106 | 242 | ||||||
Amortization of ROU asset | 154 | 147 | ||||||
Change in cash surrender value | 354 | (312 | ) | |||||
Changes in operating assets and liabilities that provide (use) cash: | ||||||||
Accounts receivable | (392 | ) | (396 | ) | ||||
Merchandise inventory | (2,977 | ) | 1,949 | |||||
Prepaid expenses and other current assets | 92 | (28 | ) | |||||
Other long-term assets | 93 | 113 | ||||||
Accounts payable | 1,393 | (3,211 | ) | |||||
Accrued expenses and other current liabilities | (140 | ) | 147 | |||||
Other long-term liabilities | (368 | ) | (378 | ) | ||||
Net cash used in operating activities | (5,820 | ) | (2,513 | ) | ||||
INVESTING ACTIVITIES: | ||||||||
Purchases of fixed assets | (399 | ) | (444 | ) | ||||
Net cash provided by (used in) investing activities | (399 | ) | (444 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from short term borrowings | 542 | 0 | ||||||
Proceeds from long term borrowings | 5,000 | 0 | ||||||
Proceeds from stock offering | 0 | 12,231 | ||||||
Exercise of warrants | 0 | 1 | ||||||
Payment of short term borrowings | 0 | (6,339 | ) | |||||
Net cash provided by financing activities | 5,542 | 5,893 | ||||||
Net decrease in cash, cash equivalents, and restricted cash | (677 | ) | 2,936 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 4,823 | 6,555 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 4,146 | $ | 9,491 | ||||
Supplemental disclosures and non-cash investing and financing activities: | ||||||||
Interest paid | $ | 202 | $ | 153 | ||||
Warrants issued with debt | $ | 1,633 | $ | 0 |
Thirteen Weeks Ended May 1, 2021 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock At Cost | Other Comprehensive Loss | Earnings (Accumulated Deficit) | Shareholders’ Equity | |||||||||||||||||||||||||
Balance as of January 30, 2021 | 3,337 | (1,410 | ) | $ | 33 | $ | 346,495 | $ | (230,169 | ) | $ | (2,007 | ) | $ | (112,863 | ) | $ | 1,489 | ||||||||||||||
Net Loss | - | - | - | - | - | - | (1,416 | ) | (1,416 | ) | ||||||||||||||||||||||
Exercise of warrants | 136 | - | 2 | - | (1 | ) | - | - | 1 | |||||||||||||||||||||||
Sale of shares, net of expenses | 416 | - | 4 | 12,227 | - | - | - | 12,231 | ||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | 27 | - | - | - | 27 | ||||||||||||||||||||||||
Balance as of May 1, 2021 | 3,889 | $ | (1,410 | ) | $ | 39 | $ | 358,749 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (114,279 | ) | $ | 12,332 |
Thirteen Weeks Ended May 2, 2020 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock At Cost | Other Comprehensive Loss | Earnings (Accumulated Deficit) | Shareholders’ Equity | |||||||||||||||||||||||||
Balance as of February 1, 2020 | 3,226 | (1,409 | ) | $ | 32 | $ | 345,102 | $ | (230,169 | ) | $ | (1,479 | ) | $ | (108,971 | ) | $ | 4,515 | ||||||||||||||
Net Loss | - | - | - | - | - | - | (5,406 | ) | (5,406 | ) | ||||||||||||||||||||||
Other comprehensive income | - | - | - | - | - | 3 | - | 3 | ||||||||||||||||||||||||
Issuance of warrants | - | - | - | 836 | - | - | - | 836 | ||||||||||||||||||||||||
Vested restricted shares | 4 | (1 | ) | - | (9 | ) | - | - | - | (9 | ) | |||||||||||||||||||||
Common stock issued- Director grants | 6 | - | - | 243 | - | - | - | 243 | ||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | 269 | - | - | - | 269 | ||||||||||||||||||||||||
Balance as of May 2, 2020 | 3,236 | $ | (1,410 | ) | $ | 32 | $ | 346,442 | $ | (230,169 | ) | $ | (1,476 | ) | $ | (114,377 | ) | $ | 452 |
Thirteen Weeks Ended | ||||||||
May 1, 2021 | May 2, 2020 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income loss | $ | (1,416 | ) | $ | (5,406 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of fixed assets | 346 | 234 | ||||||
Amortization of intangible assets | 257 | 257 | ||||||
Stock-based compensation | 27 | 269 | ||||||
Interest on long-term debt | 242 | - | ||||||
Amortization of ROU asset | 147 | 140 | ||||||
Change in cash surrender value | (312 | ) | 297 | |||||
Changes in operating assets and liabilities that provide (use) cash: | ||||||||
Accounts receivable | (396 | ) | 1,496 | |||||
Merchandise inventory | 1,949 | 679 | ||||||
Prepaid expenses and other current assets | (28 | ) | 2,180 | |||||
Other long-term assets | 113 | - | ||||||
Accounts payable | (3,211 | ) | (1,941 | ) | ||||
Accrued expenses and other current liabilities | 147 | (5,026 | ) | |||||
Other long-term liabilities | (378 | ) | 305 | |||||
Net cash provided by (used in) operating activities | (2,513 | ) | (6,516 | ) | ||||
INVESTING ACTIVITIES: | ||||||||
Purchases of fixed assets | (444 | ) | (300 | ) | ||||
Proceeds from sale of fye business | - | 11,779 | ||||||
Net cash provided by (used in) investing activities | (444 | ) | 11,479 | |||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from short term borrowings | - | 4,531 | ||||||
Proceeds from long term borrowings | - | 4,389 | ||||||
Proceeds from stock offering | 12,231 | - | ||||||
Proceeds from issuance of warrants | - | 836 | ||||||
Proceeds from PPP loan | - | 2,017 | ||||||
Exercise of warrants | 1 | - | ||||||
Issuance of director deferred shares and RSUs | - | 237 | ||||||
Payment of short term borrowings | (6,339 | ) | (13,149 | ) | ||||
Net cash provided by (used in) financing activities | 5,893 | (1,139 | ) | |||||
Net decrease in cash, cash equivalents, and restricted cash | 2,936 | 3,824 | ||||||
Cash, cash equivalents, and restricted cash, beginning of period | 6,555 | 8,852 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 9,491 | $ | 12,676 |
May 1, 2021 | ||||||||||||||||||||
Weighted Average Amortization Period (in months) | Original Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||
Technology | 60 | 6,700 | 2,587 | 3,951 | 162 | |||||||||||||||
Trade names and trademarks | 60 | 3,200 | - | 2,887 | 313 | |||||||||||||||
$ | 9,900 | $ | 2,587 | $ | 6,838 | $ | 475 |
(amounts in thousands) | January 30, 2021 | Impairment Expense | Amortization Expense | May 1, 2021 | ||||||||||||
Amortized intangible assets: | ||||||||||||||||
Technology | $ | 259 | $ | - | $ | 97 | $ | 162 | ||||||||
Trade names and trademarks | 473 | - | 160 | 313 | ||||||||||||
Net amortized intangible assets | $ | 732 | $ | - | $ | 257 | $ | 475 |
Thirteen Weeks Ended | ||||||||
(amounts in thousands) | May 1, 2021 | May 2, 2020 | ||||||
Amortized intangible assets: | ||||||||
Technology | 97 | 97 | ||||||
Trade names and trademarks | 160 | 160 | ||||||
Total amortization expense | $ | 257 | $ | 257 |
Thirteen Weeks Ended | ||||||||
(amounts in thousands) | April 30, 2022 | May 1, 2021 | ||||||
Amortized intangible assets: | ||||||||
Technology | $ | 0 | $ | 97 | ||||
Trade names and trademarks | 0 | 160 | ||||||
Total amortization expense | $ | 0 | $ | 257 |
May 1, 2021 | January 30, 2021 | May 2, 2020 | April 30, 2022 | January 29, 2022 | May 1, 2021 | |||||||||||||||||||
Cash and cash equivalents | $ | 5,030 | $ | 1,809 | $ | 7,078 | $ | 828 | $ | 1,218 | $ | 5,030 | ||||||||||||
Restricted cash | 4,461 | 4,746 | 5,598 | 3,318 | 3,605 | 4,461 | ||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 9,491 | $ | 6,555 | $ | 12,676 | $ | 4,146 | $ | 4,823 | $ | 9,491 |
Employee Stock Award Plans | Employee Stock Award Plans | |||||||||||||||||||||||||||||||
Number of Shares Subject To Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Number of Shares Subject To Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Other Share Awards (1) | Weighted Average Grant Fair Value | |||||||||||||||||||||||||
Balance January 30, 2021 | 133,356 | $ | 20.41 | 7.3 | ||||||||||||||||||||||||||||
Balance January 29, 2022 | 85,965 | $ | 13.41 | 7.5 | 90,000 | $ | 15.39 | |||||||||||||||||||||||||
Granted | 2,887 | 32.54 | - | 15,000 | 6.55 | 9.9 | 0 | 0 | ||||||||||||||||||||||||
Forfeited | (2,887 | ) | 7.12 | 9.1 | (17,880 | ) | 6.50 | 9.1 | (55,000 | ) | 13.63 | |||||||||||||||||||||
Canceled | (1,400 | ) | 34.60 | - | (6,806 | ) | 28.58 | - | 0 | 0 | ||||||||||||||||||||||
Exercised | - | - | - | 0 | 0 | - | 0 | 0 | ||||||||||||||||||||||||
Balance May 1, 2021 | 131,956 | $ | 20.81 | 7.1 | ||||||||||||||||||||||||||||
Exercisable May 1, 2021 | 45,025 | $ | 45.94 | 2.7 | ||||||||||||||||||||||||||||
Balance April 30, 2022 | 76,279 | $ | 11.04 | 7.1 | 35,000 | $ | 18.14 | |||||||||||||||||||||||||
Exercisable April 30, 2022 | 28,163 | $ | 17.07 | 4.4 | 0 | $ | 0 |
Thirteen Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
(amounts in thousands) | May 1, 2021 | May 2, 2020 | April 30, 2022 | May 1, 2021 | ||||||||||||
Interest cost | $ | 63 | $ | 89 | $ | 89 | $ | 63 | ||||||||
Amortization of net gain(1) | - | (3 | ) | |||||||||||||
Net periodic pension cost | $ | 63 | $ | 86 | $ | 89 | $ | 63 |
Thirteen weeks ended | Thirteen weeks ended | Change | ||||||||||||||||||||||||||||||||||||||
May 1, 2021 | May 2, 2020 | April 30, 2022 | May 1, 2021 | $ | % | |||||||||||||||||||||||||||||||||||
Amazon US | $ | 37,516 | 92.4 | % | $ | 29,965 | 94.9 | % | $ | 29,620 | 93.2 | % | $ | 37,516 | 92.4 | % | $ | (7,896 | ) | -21.0 | % | |||||||||||||||||||
Amazon International | 2,268 | 5.6 | % | 1,230 | 3.9 | % | 1,287 | 4.0 | % | 2,268 | 5.6 | % | (981 | ) | -43.3 | % | ||||||||||||||||||||||||
Walmart & other marketplaces | 378 | 0.9 | % | 225 | 0.7 | % | ||||||||||||||||||||||||||||||||||
Walmart, Target & other marketplaces | 430 | 1.4 | % | 378 | 0.9 | % | 52 | 13.8 | % | |||||||||||||||||||||||||||||||
Subtotal Retail as a Service | 40,162 | 98.9 | % | 31,420 | 99.5 | % | 31,337 | 98.6 | % | 40,162 | 98.9 | % | (8,825 | ) | -22.0 | % | ||||||||||||||||||||||||
Subscriptions | 455 | 1.1 | % | 169 | 0.5 | % | 454 | 1.4 | % | 455 | 1.1 | % | (1 | ) | -0.2 | % | ||||||||||||||||||||||||
Total | $ | 40,617 | 100.0 | % | $ | 31,589 | 100.0 | % | ||||||||||||||||||||||||||||||||
Net revenue | $ | 31,791 | 100.0 | % | $ | 40,617 | 100.0 | % | $ | (8,826 | ) | -21.7 | % |
Thirteen Weeks Ended | Change | Thirteen Weeks Ended | Change | ||||||||||||||||||||||||||||
(amounts in thousands) | May 1, 2021 | May 2, 2020 | $ | % | April 30, 2022 | May 1, 2021 | $ | % | |||||||||||||||||||||||
Merchandise margin | $ | 18,982 | $ | 14,609 | $ | 4,373 | 29.9 | % | $ | 14,046 | $ | 18,982 | $ | (4,936 | ) | (26.0 | )% | ||||||||||||||
% of net revenue | 46.7 | % | 46.2 | % | 0.5 | % | 44.2 | % | 46.7 | % | (2.5 | )% | |||||||||||||||||||
Fulfillment fees | (6,449 | ) | (4,997 | ) | (1,452 | ) | 29.1 | % | (4,568 | ) | (6,449 | ) | (1,881 | ) | (29.2 | )% | |||||||||||||||
Warehousing and freight | (2,737 | ) | (1,694 | ) | (1,043 | ) | 61.6 | % | (2,627 | ) | (2,737 | ) | (110 | ) | (4.0 | )% | |||||||||||||||
Gross profit | $ | 9,796 | $ | 7,918 | $ | 1,878 | 33.7 | % | $ | 6,851 | $ | 9,796 | $ | (2,945 | ) | (30.1 | )% | ||||||||||||||
% of net revenue | 24.1 | % | 25.1 | % | 21.6 | % | 24.1 | % |
May 1, | May 2, | Change | ||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Selling expenses | $ | 6,230 | $ | 4,920 | $ | 1,310 | 26.6 | % | ||||||||
Reasearch and development | 343 | 414 | (71 | ) | -17.1 | % | ||||||||||
General and administrative | 4,084 | 7,762 | (3,678 | ) | -47.4 | % | ||||||||||
Total SG&A expense | $ | 10,657 | $ | 13,096 | $ | (2,439 | ) | -18.6 | % |
Thirteen weeks ended | Change | |||||||||||||||
April 30, 2022 | May 1, 2021 | $ | % | |||||||||||||
Selling expenses | $ | 4,601 | $ | 6,230 | $ | (1,629 | ) | -26.1 | % | |||||||
General and administrative expenses | 5,916 | 4,427 | 1,489 | 33.6 | % | |||||||||||
SG&A Expenses | $ | 10,517 | $ | 10,657 | $ | (140 | ) | -1.3 | % | |||||||
As a % of total revenue | 33.1 | % | 26.2 | % |
As of or for the | ||||||||||||
Thirteen Weeks Ended | Change | |||||||||||
(amounts in thousands) | April 30, | May 1, | ||||||||||
2022 | 2021 | $ | ||||||||||
Operating Cash Flows | $ | (5,820 | ) | $ | (2,513 | ) | $ | (3,307 | ) | |||
Investing Cash Flows | (399 | ) | (444 | ) | 45 | |||||||
Financing Cash Flows | 5,542 | 5,893 | (351 | ) | ||||||||
Capital Expenditures(1) | (399 | ) | (444 | ) | 45 | |||||||
Cash, Cash Equivalents, and Restricted Cash (2) | 4,146 | 9,491 | (5,345 | ) | ||||||||
Merchandise Inventory | 32,254 | 22,567 | 9,687 | |||||||||
(1)Included in Investing Cash Flows | ||||||||||||
(2)Cash and cash equivalents per condensed consolidated balance sheets | $ | 828 | $ | 5,030 | ||||||||
Add: restricted cash | 3,318 | 4,461 | ||||||||||
Cash, cash equivalents, and restricted cash | $ | 4,146 | $ | 9,491 |
As of or for the Thirteen Weeks Ended | Change | ||||||||||||||
(amounts in thousands) | May 1, 2021 | May 2, 2020 | $ | ||||||||||||
Operating Cash Flows | $ | (2,513 | ) | $ | (6,516 | ) | $ | 4,003 | |||||||
Investing Cash Flows | (444 | ) | 11,479 | (11,923 | ) | ||||||||||
Financing Cash Flows | 5,893 | (1,139 | ) | 7,032 | |||||||||||
Capital Expenditures | (1) | (444 | ) | (300 | ) | (144 | ) | ||||||||
Cash, Cash Equivalents, and Restricted Cash | (2) | 9,491 | 12,676 | (3,185 | ) | ||||||||||
Merchandise Inventory | 22,567 | 17,157 | 5,410 | ||||||||||||
(1) | Included in Investing Cash Flows | ||||||||||||||
(2) | Cash and cash equivalents per condensed consolidated balance sheets | $ | 5,030 | $ | 7,078 | (2,048 | ) | ||||||||
Add: restricted cash | 4,461 | 5,598 | (1,137 | ) | |||||||||||
Cash, cash equivalents, and restricted cash | $ | 9,491 | $ | 12,676 | $ | (3,185 | ) |
(A)Exhibits - Exhibit No. | Description |
Amendment No. |
Common Stock Purchase Warrant (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K dated March 8, 2022). | |
Amendment No. 4 to Loan and Security Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K dated March 8, 2022). | |
Amendment No. 2 to Subordinated Loan and Security Agreement (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K dated March 8, 2022). | |
Registration Rights Agreement (incorporated by reference to Exhibit 10.3 of the Company’s Form 8-K dated March 8, 2022). | |
Contingent Values Rights Agreement (incorporated by reference to Exhibit 10.4 of the Company’s Form 8-K dated March 8, 2022). | |
Kunal Chopra Separation Agreement dated as of March 30, 2022 (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K dated April 1, 2022) | |
Brock Kowalchuk Offer Letter dated as of March 28, 2022 (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K dated April 1, 2022) | |
Brock Kowalchuk Severance Agreement dated as of July 31, 2020 (incorporated by reference to Exhibit 10.3 of the Company’s Form 8-K dated April 1, 2022) | |
Amended and Restated Common Stock Purchase Warrant, dated as of April 4, 2022 (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K dated April 5, 2022) | |
Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document (furnished herewith) |
101.SCH | XBRL Taxonomy Extension Schema (furnished herewith) |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase (furnished herewith) |
101.DEF | XBRL Taxonomy Extension Definition Linkbase (furnished herewith) |
101.LAB | XBRL Taxonomy Extension Label Linkbase (furnished herewith) |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase (furnished herewith) |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
June | By: /s/ | |
Brock Kowalchuk | ||
Principal Executive Officer | ||
(Principal Executive Officer) | ||
June | By: /s/ Edwin Sapienza | |
Edwin Sapienza | ||
Chief Financial Officer | ||
(Principal and Chief Accounting Officer) |