☒ | 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 Capital 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 | |
9 | |
PART II. OTHER INFORMATION | |
32 | |
33 |
July 31, | January 30, | August 1, | October 30, | January 30, | October 31, | |||||||||||||||||||
2021 | 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||
ASSETS | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,570 | $ | 1,809 | $ | 3,337 | $ | 1,754 | $ | 1,809 | $ | 2,396 | ||||||||||||
Restricted cash | 1,184 | 1,184 | 950 | 1,158 | 1,184 | 950 | ||||||||||||||||||
Accounts receivable | 2,805 | 2,718 | 2,239 | 2,566 | 2,718 | 2,465 | ||||||||||||||||||
Merchandise inventory | 25,024 | 24,515 | 20,576 | 30,248 | 24,515 | 27,204 | ||||||||||||||||||
Prepaid expenses and other current assets | 1,056 | 564 | 1,085 | 760 | 564 | 836 | ||||||||||||||||||
Total current assets | 32,639 | 30,790 | 28,187 | 36,486 | 30,790 | 33,851 | ||||||||||||||||||
Restricted cash | 2,992 | 3,562 | 4,362 | 2,732 | 3,562 | 4,082 | ||||||||||||||||||
Fixed assets, net | 2,301 | 2,268 | 2,285 | 2,251 | 2,268 | 2,343 | ||||||||||||||||||
Operating lease right-of-use assets | 2,447 | 2,742 | 3,030 | 2,284 | 2,742 | 2,887 | ||||||||||||||||||
Intangible assets, net | 218 | 732 | 1,246 | 0 | 732 | 989 | ||||||||||||||||||
Cash Surrender Value | 4,277 | 3,856 | 3,411 | 4,413 | 3,856 | 3,438 | ||||||||||||||||||
Other assets | 1,157 | 1,342 | 2,036 | 1,074 | 1,342 | 1,787 | ||||||||||||||||||
TOTAL ASSETS | $ | 46,031 | $ | 45,292 | $ | 44,557 | $ | 49,240 | $ | 45,292 | $ | 49,377 | ||||||||||||
LIABILITIES | ||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||
Accounts payable | $ | 7,599 | $ | 8,894 | $ | 9,857 | $ | 6,743 | $ | 8,894 | $ | 8,559 | ||||||||||||
Short-term borrowings | 0 | 6,339 | 2,151 | 5,858 | 6,339 | 8,483 | ||||||||||||||||||
Accrued expenses and other current liabilities | 1,941 | 2,512 | 3,812 | 2,685 | 2,512 | 4,745 | ||||||||||||||||||
Current portion of operating lease liabilites | 622 | 596 | 571 | 636 | 596 | 583 | ||||||||||||||||||
Current portion of PPP Loan | 0 | 1,687 | 1,017 | 0 | 1,687 | 1,356 | ||||||||||||||||||
Total current liabilities | 10,162 | 20,028 | 17,408 | 15,922 | 20,028 | 23,726 | ||||||||||||||||||
Operating lease liabilities | 1,942 | 2,258 | 2,564 | 1,764 | 2,258 | 2,412 | ||||||||||||||||||
PPP Loan | 0 | 330 | 1,001 | 0 | 330 | 662 | ||||||||||||||||||
Long-term debt | 5,526 | 5,000 | 4,401 | 4,161 | 5,000 | 4,581 | ||||||||||||||||||
Other long-term liabilities | 15,721 | 16,187 | 19,613 | 15,515 | 16,187 | 15,857 | ||||||||||||||||||
TOTAL LIABILITIES | 33,351 | 43,803 | 44,987 | 37,362 | 43,803 | 47,238 | ||||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Preferred stock ($0.01 par value; 5,000,000 shares authorized; NaN issued) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Common stock ($0.01 par value; 200,000,000 shares authorized; 3,902,985, 3,336,576 and 3,235,576 shares issued, respectively) | 39 | 33 | 32 | 39 | 33 | 32 | ||||||||||||||||||
Additional paid-in capital | 359,016 | 346,495 | 346,457 | 359,100 | 346,495 | 346,470 | ||||||||||||||||||
Treasury stock at cost (1,410,417, 1,410,378 and 1,410,378 shares, respectively) | (230,170 | ) | (230,169 | ) | (230,169 | ) | (230,170 | ) | (230,169 | ) | (230,169 | ) | ||||||||||||
Accumulated other comprehensive loss | (2,007 | ) | (2,007 | ) | (1,473 | ) | (2,007 | ) | (2,007 | ) | (1,470 | ) | ||||||||||||
Accumulated deficit | (114,198 | ) | (112,863 | ) | (115,277 | ) | (115,084 | ) | (112,863 | ) | (112,724 | ) | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 12,680 | 1,489 | (430 | ) | 11,878 | 1,489 | 2,139 | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 46,031 | $ | 45,292 | $ | 44,557 | $ | 49,240 | $ | 45,292 | $ | 49,377 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | October 30, 2021 | October 31, 2020 | October 30, 2021 | October 31, 2020 | |||||||||||||||||||||||||
Net revenue | $ | 34,890 | $ | 42,296 | $ | 75,507 | $ | 73,885 | $ | 32,172 | $ | 38,913 | $ | 107,680 | $ | 112,799 | ||||||||||||||||
Cost of sales | 26,055 | 31,611 | 56,876 | 55,283 | 24,168 | 29,312 | 81,044 | 84,595 | ||||||||||||||||||||||||
Gross profit | 8,835 | 10,685 | 18,631 | 18,602 | 8,004 | 9,601 | 26,636 | 28,204 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 10,210 | 11,178 | 20,868 | 24,274 | 10,018 | 10,213 | 30,886 | 34,487 | ||||||||||||||||||||||||
Loss from operations | (1,375 | ) | (493 | ) | (2,237 | ) | (5,672 | ) | (2,014 | ) | (612 | ) | (4,250 | ) | (6,283 | ) | ||||||||||||||||
Interest expense | 460 | 406 | 1,015 | 634 | 439 | 381 | 1,455 | 1,015 | ||||||||||||||||||||||||
Other (income) loss | (1,963 | ) | 0 | (1,963 | ) | 0 | ||||||||||||||||||||||||||
Other income | (1,567 | ) | 0 | (3,530 | ) | 0 | ||||||||||||||||||||||||||
Income (loss) before income tax expense | 128 | (899 | ) | (1,289 | ) | (6,306 | ) | (886 | ) | (993 | ) | (2,175 | ) | (7,298 | ) | |||||||||||||||||
Income tax expense | 46 | 0 | 46 | 0 | ||||||||||||||||||||||||||||
Income tax expense (benefit) | 0 | (3,545 | ) | 46 | (3,545 | ) | ||||||||||||||||||||||||||
Net income (loss) | $ | 82 | $ | (899 | ) | $ | (1,335 | ) | $ | (6,306 | ) | $ | (886 | ) | $ | 2,552 | $ | (2,221 | ) | $ | (3,753 | ) | ||||||||||
BASIC AND DILUTED INCOME PER SHARE: | ||||||||||||||||||||||||||||||||
Basic income (loss) per common share | $ | 0.03 | $ | (0.49 | ) | $ | (0.56 | ) | $ | (3.46 | ) | $ | (0.36 | ) | $ | 1.40 | $ | (0.92 | ) | $ | (2.06 | ) | ||||||||||
Weighted average number of common shares outstanding – basic | 2,491 | 1,825 | 2,404 | 1,823 | 2,491 | 1,825 | 2,404 | 1,823 | ||||||||||||||||||||||||
Diluted income (loss) per common share | $ | 0.03 | $ | (0.49 | ) | $ | (0.56 | ) | $ | (3.46 | ) | $ | (0.36 | ) | $ | 1.39 | $ | (0.92 | ) | $ | (2.06 | ) | ||||||||||
Weighted average number of common shares outstanding – diluted | 2,538 | 1,825 | 2,404 | 1,823 | 2,491 | 1,829 | 2,404 | 1,823 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | October 30, 2021 | October 31, 2020 | October 30, 2021 | October 31, 2020 | |||||||||||||||||||||||||
Net income (loss) | $ | 82 | $ | (899 | ) | $ | (1,335 | ) | $ | (6,306 | ) | $ | (886 | ) | $ | 2,552 | $ | (2,221 | ) | $ | (3,753 | ) | ||||||||||
Amortization of pension gain | 0 | 1 | 0 | 2 | 0 | 1 | 0 | 3 | ||||||||||||||||||||||||
Comprehensive income (loss) | $ | 82 | $ | (898 | ) | $ | (1,335 | ) | $ | (6,304 | ) | $ | (886 | ) | $ | 2,553 | $ | (2,221 | ) | $ | (3,750 | ) |
Thirteen Weeks Ended July 31, 2021 | Thirteen Weeks Ended October 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Shareholders’ Equity | 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 | Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock At Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of May 1, 2021 | 3,889 | (1,410 | ) | $ | 39 | $ | 358,749 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (114,280 | ) | $ | 12,332 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of July 31, 2021 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,016 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (114,198 | ) | $ | 12,680 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | - | - | 0 | 0 | 0 | 0 | 82 | 82 | - | - | 0 | 0 | 0 | 0 | (886 | ) | (886 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants | 3 | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 2 | 0 | 0 | 51 | 0 | 0 | 0 | 51 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued- Director grants | 9 | 0 | 0 | 184 | 0 | 0 | 0 | 184 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | 0 | 31 | 0 | 0 | 0 | 31 | - | - | 0 | 84 | 0 | 0 | 0 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of July 31, 2021 | 3,903 | $ | (1,410 | ) | $ | 39 | $ | 359,016 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (114,198 | ) | $ | 12,680 | |||||||||||||||||||||||||||||||||||||||||||||
Balance as of October 30, 2021 | 3,903 | $ | (1,410 | ) | $ | 39 | $ | 359,100 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (115,084 | ) | $ | 11,878 |
Twenty-six Weeks Ended July 31, 2021 | Thirty-nine Weeks Ended October 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Shareholders’ Equity | 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 | 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 | 3,337 | (1,410 | ) | $ | 33 | $ | 346,495 | $ | (230,169 | ) | $ | (2,007 | ) | $ | (112,863 | ) | $ | 1,489 | ||||||||||||||||||||||||||||
Net Loss | - | - | 0 | 0 | 0 | 0 | (1,335 | ) | (1,335 | ) | - | - | 0 | 0 | 0 | 0 | (2,221 | ) | (2,221 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants | 138 | - | 2 | 0 | (1 | ) | 0 | 0 | 1 | 138 | - | 2 | 0 | (1 | ) | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||
Sales of shares, net of expense | 417 | 0 | 4 | 12,227 | 0 | 0 | 0 | 12,231 | 417 | 0 | 4 | 12,227 | 0 | 0 | 0 | 12,231 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 2 | 0 | 0 | 51 | 0 | 0 | 0 | 51 | 2 | 0 | 0 | 51 | 0 | 0 | 0 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued- Director grants | 9 | 0 | 0 | 184 | 0 | 0 | 0 | 184 | 9 | 0 | 0 | 184 | 0 | 0 | 0 | 184 | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | 0 | 59 | 0 | 0 | 0 | 59 | - | - | 0 | 143 | 0 | 0 | 0 | 143 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of July 31, 2021 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,016 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (114,198 | ) | $ | 12,680 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of October 30, 2021 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,100 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (115,084 | ) | $ | 11,878 |
Thirteen Weeks Ended August 1, 2020 | Thirteen Weeks Ended October 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Shareholders’ Equity | 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 | Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock At Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of May 2, 2020 | 3,236 | (1,410 | ) | $ | 32 | $ | 346,442 | $ | (230,169 | ) | $ | (1,476 | ) | $ | (114,377 | ) | $ | 451 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 1, 2020 | 3,236 | (1,410 | ) | $ | 32 | $ | 346,457 | $ | (230,169 | ) | $ | (1,473 | ) | $ | (115,276 | ) | $ | (429 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Net Loss | - | - | 0 | 0 | 0 | 0 | (899 | ) | (899 | ) | - | - | 0 | 0 | 0 | 0 | 2,552 | 2,552 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | 0 | 0 | 0 | 3 | 0 | 3 | - | - | 0 | 0 | 0 | 3 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vested restricted shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued- Director grants | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | 0 | 15 | 0 | 0 | 0 | 15 | - | - | 0 | 13 | 0 | 0 | 0 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 1, 2020 | 3,236 | $ | (1,410 | ) | $ | 32 | $ | 346,457 | $ | (230,169 | ) | $ | (1,473 | ) | $ | (115,277 | ) | $ | (430 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of October 31, 2020 | 3,236 | $ | (1,410 | ) | $ | 32 | $ | 346,470 | $ | (230,169 | ) | $ | (1,470 | ) | $ | (112,724 | ) | $ | 2,139 |
Twenty-six Weeks Ended August 1, 2020 | Thirty-nine Weeks Ended October 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Shareholders’ Equity | 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 | Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock At Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of February 1, 2020 | 3,226 | (1,409 | ) | $ | 32 | $ | 345,102 | $ | (230,169 | ) | $ | (1,479 | ) | $ | (108,971 | ) | $ | 4,515 | 3,226 | (1,409 | ) | $ | 32 | $ | 345,102 | $ | (230,169 | ) | $ | (1,479 | ) | $ | (108,971 | ) | $ | 4,515 | ||||||||||||||||||||||||||||
Net Loss | - | - | 0 | 0 | 0 | 0 | (6,306 | ) | (6,306 | ) | - | - | 0 | 0 | 0 | 0 | (3,753 | ) | (3,753 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | 0 | 0 | 0 | 6 | 0 | 6 | - | - | 0 | 836 | 0 | 9 | 0 | 845 | ||||||||||||||||||||||||||||||||||||||||||||||||
Vested restricted shares | 4 | (1 | ) | 0 | (9 | ) | 0 | 0 | 0 | (9 | ) | 4 | (1 | ) | 0 | (9 | ) | 0 | 0 | 0 | (9 | ) | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued- Director grants | 6 | 0 | 0 | 243 | 0 | 0 | 0 | 243 | 6 | 0 | 0 | 243 | 0 | 0 | 0 | 243 | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | 0 | 285 | 0 | 0 | 0 | 285 | - | - | 0 | 298 | 0 | 0 | 0 | 298 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 1, 2020 | 3,236 | $ | (1,410 | ) | $ | 32 | $ | 346,457 | $ | (230,169 | ) | $ | (1,473 | ) | $ | (115,277 | ) | $ | (430 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of October 31, 2020 | 3,236 | $ | (1,410 | ) | $ | 32 | $ | 346,470 | $ | (230,169 | ) | $ | (1,470 | ) | $ | (112,724 | ) | $ | 2,139 |
Twenty-Six Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
July 31, 2021 | August 1, 2020 | October 30, 2021 | October 31, 2020 | |||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net loss | $ | (1,335 | ) | $ | (6,306 | ) | $ | (2,221 | ) | $ | (3,753 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation of fixed assets | 710 | 493 | 1,064 | 783 | ||||||||||||
Amortization of intangible assets | 514 | 514 | 732 | 771 | ||||||||||||
Stock-based compensation | 243 | 284 | 327 | 296 | ||||||||||||
Amortization of ROU asset | 295 | 281 | 458 | 424 | ||||||||||||
Amortization of warrant interest | 139 | 0 | 191 | 0 | ||||||||||||
Interest on long term debt | 386 | 0 | 570 | 0 | ||||||||||||
Change in cash surrender value | (421 | ) | (57 | ) | (557 | ) | (84 | ) | ||||||||
Reversal of ASC 740 liability | 0 | (3,545 | ) | |||||||||||||
Forgiveness of PPP Loan | (1,963 | ) | 0 | (1,963 | ) | 0 | ||||||||||
Changes in operating assets and liabilities that provide (use) cash: | ||||||||||||||||
Accounts receivable | (88 | ) | 1,901 | 150 | 1,695 | |||||||||||
Merchandise inventory | (509 | ) | (2,739 | ) | (5,732 | ) | (9,367 | ) | ||||||||
Prepaid expenses and other current assets | (492 | ) | 2,054 | (196 | ) | 2,531 | ||||||||||
Other long-term assets | 185 | 0 | 268 | 0 | ||||||||||||
Accounts payable | (1,294 | ) | 1,978 | (2,150 | ) | 679 | ||||||||||
Accrued expenses and other current liabilities | (522 | ) | (6,242 | ) | 236 | (5,295 | ) | |||||||||
Other long-term liabilities | (782 | ) | (49 | ) | (1,166 | ) | (407 | ) | ||||||||
Net cash used in operating activities | (4,934 | ) | (7,888 | ) | (9,990 | ) | (15,272 | ) | ||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of fixed assets | (743 | ) | (588 | ) | (1,046 | ) | (935 | ) | ||||||||
Proceeds from sale of fye business | 0 | 11,779 | 0 | 11,779 | ||||||||||||
Net cash provided by (used in) investing activities | (743 | ) | 11,191 | (1,046 | ) | 10,844 | ||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Proceeds from short term borrowings | 0 | 2,151 | 5,858 | 8,483 | ||||||||||||
Proceeds from long term borrowings | 0 | 4,401 | 0 | 4,581 | ||||||||||||
Proceeds from issuance of warrants | 0 | 836 | 0 | 836 | ||||||||||||
Proceeds from PPP loan | 0 | 2,018 | 0 | 2,018 | ||||||||||||
Proceeds from stock offering | 12,231 | 0 | 12,231 | 0 | ||||||||||||
Proceeds from exercise of stock options | 51 | 0 | 51 | 0 | ||||||||||||
Payments of PPP loan | (76 | ) | 0 | (76 | ) | 0 | ||||||||||
Issuance of director deferred shares and RSUs | 0 | 237 | 0 | 235 | ||||||||||||
Payment of long term borrowings | (1,600 | ) | 0 | |||||||||||||
Payment of short term borrowings | (6,339 | ) | (13,149 | ) | (6,339 | ) | (13,149 | ) | ||||||||
Net cash provided by (used in) financing activities | 5,867 | (3,506 | ) | |||||||||||||
Net cash provided by financing activities | 10,125 | 3,004 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 190 | (203 | ) | (911 | ) | (1,424 | ) | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 6,556 | 8,852 | 6,555 | 8,852 | ||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 6,746 | $ | 8,649 | $ | 5,644 | $ | 7,428 | ||||||||
Interest paid | $ | 142 | $ | 118 |
Partner Obsession | Insights Driven |
Simplicity | Innovation |
Results | Ownership |
Diversity and Teamwork |
July 31, 2021 | October 30, 2021 | |||||||||||||||||||||||||||||||||||||||
Weighted Average Amortization Period (in months) | Original Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Carrying Amount | Weighted Average Amortization Period (in months) | Original Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||
Technology | 60 | $ | 6,700 | $ | 2,587 | $ | 4,048 | $ | 65 | 60 | $ | 6,700 | $ | 2,587 | $ | 4,113 | $ | 0 | ||||||||||||||||||||||
Trade names and trademarks | 60 | 3,200 | 0 | 3,047 | 153 | 60 | 3,200 | 0 | 3,200 | 0 | ||||||||||||||||||||||||||||||
$ | 9,900 | $ | 2,587 | $ | 7,095 | $ | 218 | $ | 9,900 | $ | 2,587 | $ | 7,313 | $ | 0 |
(amounts in thousands) | January 30, 2021 | Impairment Expense | Amortization Expense | July 31, 2021 | January 30, 2021 | Impairment Expense | Amortization Expense | October 30, 2021 | ||||||||||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||||||||||||
Technology | $ | 259 | $ | 0 | $ | 194 | $ | 65 | $ | 259 | $ | 0 | $ | 259 | $ | 0 | ||||||||||||||||
Trade names and trademarks | 473 | 0 | 320 | 153 | 473 | 0 | 473 | 0 | ||||||||||||||||||||||||
Net amortized intangible assets | $ | 732 | $ | 0 | $ | 514 | $ | 218 | $ | 732 | $ | 0 | $ | 732 | $ | 0 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||
(amounts in thousands) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | October 30, 2021 | October 31, 2020 | October 30, 2021 | October 31, 2020 | ||||||||||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||||||||||||
Technology | $ | 97 | $ | 97 | $ | 194 | $ | 194 | $ | 65 | $ | 97 | $ | 259 | $ | 291 | ||||||||||||||||
Trade names and trademarks | 160 | 160 | 320 | 320 | 153 | 160 | 473 | 480 | ||||||||||||||||||||||||
Total amortization expense | $ | 257 | $ | 257 | $ | 514 | $ | 514 | $ | 218 | $ | 257 | $ | 732 | $ | 771 |
July 31, 2021 | January 30, 2021 | August 1, 2020 | October 30, 2021 | January 30, 2021 | October 31, 2020 | |||||||||||||||||||
Cash and cash equivalents | $ | 2,570 | $ | 1,809 | $ | 3,337 | $ | 1,754 | $ | 1,809 | $ | 2,396 | ||||||||||||
Restricted cash | 4,176 | 4,746 | 5,312 | 3,890 | 4,746 | 5,032 | ||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 6,746 | $ | 6,555 | $ | 8,649 | $ | 5,644 | $ | 6,555 | $ | 7,428 |
Number of Shares Subject To Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | ||||||||||
Balance January 30, 2021 | 133,356 | $ | 20.41 | 7.3 | ||||||||
Granted | 6,637 | 25.69 | 9.9 | |||||||||
Forfeited | (2,887 | ) | 7.12 | 9.0 | ||||||||
Canceled | (1,400 | ) | 34.60 | - | ||||||||
Exercised | (2,403 | ) | 7.12 | 9.0 | ||||||||
Balance July 31, 2021 | 133,303 | $ | 21.05 | 6.9 | ||||||||
Exercisable July 31, 2021 | 54,125 | $ | 38.71 | 3.7 |
Number of Shares Subject To Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Other Share Awards | Weighted Average Grant Fair Value | ||||||||||||||||
Balance January 30, 2021 | 133,356 | $ | 20.41 | 7.3 | 0 | $ | 0 | |||||||||||||
Granted | 6,637 | 25.69 | 9.8 | 43,000 | 19.24 | |||||||||||||||
Forfeited | (6,977 | ) | 10.04 | 9.0 | 0 | |||||||||||||||
Canceled | (28,900 | ) | 53.29 | - | 0 | 0 | ||||||||||||||
Exercised | (2,403 | ) | 7.12 | 9.0 | (3,000 | ) | 20.41 | |||||||||||||
Balance October 30, 2021 | 101,713 | $ | 12.44 | 8.4 | 40,000 | $ | 18.98 | |||||||||||||
Exercisable October 30, 2021 | 34,152 | $ | 18.88 | 7.5 | 0 | $ | 0 |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||
(amounts in thousands) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | October 30, 2021 | October 31, 2020 | October 30, 2021 | October 31, 2020 | ||||||||||||||||||||||||
Interest cost | $ | 63 | $ | 89 | $ | 126 | $ | 178 | $ | 63 | $ | 89 | $ | 189 | $ | 266 | ||||||||||||||||
Amortization of net gain(1) | 0 | (3 | ) | 0 | (6 | ) | 0 | (3 | ) | 0 | (9 | ) | ||||||||||||||||||||
Net periodic pension cost | $ | 63 | $ | 86 | $ | 126 | $ | 172 | $ | 63 | $ | 86 | $ | 189 | $ | 257 |
• Partner Obsession • Insights Driven • Simplicity • Innovation | • Results • Ownership • Diversity and Teamwork |
Thirteen Weeks Ended | Change | Twenty-Six Weeks Ended | Change | Thirteen Weeks Ended | Change | Thirty-nine Weeks Ended | Change | |||||||||||||||||||||||||||||||||||
(amounts in thousands) | July 31, 2021 | August 1, 2020 | $ | % | July 31, 2021 | August 1, 2020 | $ | % | October 30, 2021 | October 31, 2020 | $ | % | October 30, 2021 | October 31, 2020 | $ | % | ||||||||||||||||||||||||||
Net Revenue | $ 34,890 | $ 42,296 | $ (7,406) | -17.5% | $ 75,507 | $ 73,885 | $1,622 | 2.2% | $ | 32,172 | $ | 38,913 | $ | (6,741 | ) | -17.3 | % | $ | 107,680 | $ | 112,799 | $ | (5,119 | ) | -4.5 | % | ||||||||||||||||
Gross profit | 8,835 | 10,685 | (1,850) | -17.3% | 18,631 | 18,602 | 29 | 0.2% | 8,004 | 9,601 | (1,597 | ) | -16.6 | % | 26,636 | 28,204 | (1,568 | ) | -5.6 | % | ||||||||||||||||||||||
% to sales | 25.3% | 25.3% | 24.7% | 25.2% | 24.9 | % | 24.7 | % | 24.7 | % | 25.0 | % |
Thirteen weeks ended | Twenty-six weeks ended | Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jul 31, 2021 | August 1, 2020 | Change | Jul 31, 2021 | August 1, 2020 | Change | October 30, 2021 | October 31, 2020 | Change | October 30,2021 | October 31, 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amazon US | $ | 32,642 | 93.6 | % | $ | 39,922 | 94.4 | % | -18.2 | % | $ | 70,158 | 92.9 | % | $ | 69,887 | 94.6 | % | 0.4 | % | $ | 30,423 | 94.6 | % | $ | 36,221 | 93.1 | % | -16.0 | % | $ | 100,581 | 93.4 | % | $ | 106,369 | 94.3 | % | -5.4 | % | ||||||||||||||||||||||||||||||||||||
Amazon International | 1,289 | 3.7 | % | 1,783 | 4.2 | % | -27.7 | % | 3,557 | 4.7 | % | 3,013 | 4.1 | % | 18.1 | % | 738 | 2.3 | % | 2,078 | 5.3 | % | -65.5 | % | 4,295 | 4.0 | % | 5,076 | 4.5 | % | -15.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other Marketplaces | 507 | 1.5 | % | 294 | 0.7 | % | 72.4 | % | 885 | 1.2 | % | 519 | 0.7 | % | 70.5 | % | 543 | 1.7 | % | 240 | 0.6 | % | 126.5 | % | 1,428 | 1.3 | % | 564 | 0.5 | % | 153.2 | % | ||||||||||||||||||||||||||||||||||||||||||||
Subtotal Retail as a Service | 34,438 | 98.7 | % | 41,999 | 99.3 | % | -18.0 | % | 74,600 | 98.8 | % | 73,419 | 99.4 | % | 1.6 | % | 31,704 | 98.5 | % | 38,524 | 99.0 | % | -17.7 | % | 106,304 | 98.7 | % | 112,009 | 99.3 | % | -5.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Subscriptions | 452 | 1.3 | % | 297 | 0.7 | % | 52.2 | % | 907 | 1.2 | % | 466 | 0.6 | % | 94.6 | % | 468 | 1.5 | % | 389 | 1.0 | % | 20.4 | % | 1,375 | 1.3 | % | 790 | 0.7 | % | 74.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 34,890 | 100.0 | % | $ | 42,296 | 100.0 | % | -17.5 | % | $ | 75,507 | 100.0 | % | $ | 73,885 | 100.0 | % | 2.2 | % | $ | 32,172 | 100.0 | % | $ | 38,913 | 100.0 | % | -17.3 | % | $ | 107,679 | 100.0 | % | $ | 112,799 | 100.0 | % | -4.5 | % |
Thirteen Weeks Ended | Change | Twenty six Weeks | Change | Thirteen Weeks Ended | Change | Thirty-nine Weeks Ended | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(amounts in thousands) | July 31, 2021 | August 1, 2020 | $ | % | July 31, 2021 | August 1, 2020 | $ | % | October 30, 2021 | October 30, 2020 | $ | % | October 30, 2021 | October 30, 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||
Merchandise margin | $ | 15,936 | $ | 19,447 | $ | (3,510 | ) | -18.1 | % | $ | 34,656 | $ | 33,901 | $ | 755 | 2.2 | % | $ | 14,653 | $ | 17,978 | $ | (3,325 | ) | -18.5 | % | $ | 49,309 | $ | 51,879 | $ | (2,570 | ) | -5.0 | % | |||||||||||||||||||||||||||
% of net revenue | 45.7 | % | 46.0 | % | -0.3 | % | 45.9 | % | 45.9 | % | 0.0 | % | 45.5 | % | 46.2 | % | -0.7 | % | 45.8 | % | 46.0 | % | -0.2 | % | ||||||||||||||||||||||||||||||||||||||
Fulfillment fees | (5,393 | ) | (6,868 | ) | 1,474 | -21.5 | % | (11,843 | ) | (11,865 | ) | 22 | -0.2 | % | (4,375 | ) | (6,479 | ) | 2,104 | -32.5 | % | (16,218 | ) | (18,343 | ) | 2,125 | -11.6 | % | ||||||||||||||||||||||||||||||||||
Warehousing and freight | (1,708 | ) | (1,894 | ) | 187 | -9.9 | % | (4,182 | ) | (3,434 | ) | (748 | ) | 21.8 | % | (2,274 | ) | (1,898 | ) | (376 | ) | 19.8 | % | (6,455 | ) | (5,332 | ) | (1,123 | ) | 21.1 | % | |||||||||||||||||||||||||||||||
Gross profit | $ | 8,835 | $ | 10,685 | $ | (1,850 | ) | -17.3 | % | $ | 18,631 | $ | 18,602 | $ | 29 | 0.2 | % | $ | 8,004 | $ | 9,601 | $ | (1,597 | ) | -16.6 | % | $ | 26,636 | $ | 28,204 | $ | (1,568 | ) | -5.6 | % | |||||||||||||||||||||||||||
% of net revenue | 25.3 | % | 25.3 | % | 24.7 | % | 25.2 | % | 24.9 | % | 24.7 | % | 24.7 | % | 25.0 | % |
Thirteen Weeks Ended | Change | Twenty-Six Weeks Ended | Change | Thirteen Weeks Ended | Change | Thirty-Nine Weeks Ended | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(amounts in thousands) | July 31, 2021 | August 1, 2020 | $ | % | July 31, 2021 | August 1, 2020 | $ | % | October 30, 2021 | October 31, 2020 | $ | % | October 30, 2021 | October 31, 2020 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||
Selling expenses | $ | 5,085 | $ | 6,262 | $ | (1,177 | ) | -18.8 | % | $ | 10,991 | $ | 10,868 | $ | 123 | 1.1 | % | $ | 4,580 | $ | 5,710 | $ | (1,130 | ) | -19.8 | % | $ | 15,571 | $ | 16,578 | $ | (1,007 | ) | -6.1 | % | |||||||||||||||||||||||||||
General and administrative expenses | 5,125 | 4,916 | 209 | 4.3 | % | 9,877 | 13,406 | (3,529 | ) | -26.3 | % | 5,438 | 4,503 | 935 | 20.8 | % | 15,315 | 17,909 | (2,594 | ) | -14.5 | % | ||||||||||||||||||||||||||||||||||||||||
Total SG&A expenses | $ | 10,210 | $ | 11,178 | $ | (968 | ) | -8.7 | % | $ | 20,868 | $ | 24,274 | $ | (3,406 | ) | -14.0 | % | $ | 10,018 | $ | 10,213 | $ | (195 | ) | -1.9 | % | $ | 30,886 | $ | 34,487 | $ | (3,601 | ) | -10.4 | % | ||||||||||||||||||||||||||
As a % of total revenue | 29.3 | % | 26.4 | % | 27.6 | % | 32.9 | % | 31.1 | % | 26.2 | % | 28.7 | % | 30.6 | % |
As of or for the | Change | As of or for the Thirty-Nine Weeks Ended | Change | |||||||||||||||||||||||||
Twenty-Six Weeks Ended | (amounts in thousands) | October 30, 2021 | October 31, 2020 | $ | ||||||||||||||||||||||||
Operating Cash Flows | $ | (9,990 | ) | $ | (15,272 | ) | $ | 5,282 | ||||||||||||||||||||
(amounts in thousands) | July 31, 2021 | August 1, 2020 | $ | Investing Cash Flows | (1,047 | ) | 10,884 | (11,931 | ) | |||||||||||||||||||
Operating Cash Flows | $ | (4,934 | ) | $ | (8,087 | ) | $ | 3,153 | Financing Cash Flows | 10,125 | 3,004 | 7,121 | ||||||||||||||||
Investing Cash Flows | (743 | ) | 11,191 | (11,934 | ) | |||||||||||||||||||||||
Financing Cash Flows | 5,867 | (3,307 | ) | 9,174 | Capital Expenditures(1) | (1,047 | ) | (935 | ) | (112 | ) | |||||||||||||||||
Capital Expenditures(1) | (743 | ) | (588 | ) | (155 | ) | Cash, Cash Equivalents, and Restricted Cash | (2) | 5,644 | 7,428 | (1,784 | ) | ||||||||||||||||
Merchandise Inventory (2) | 30,248 | 27,204 | 3,044 | |||||||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash(2) | 6,746 | 8,649 | (1,903 | ) | ||||||||||||||||||||||||
Merchandise Inventory | 25,024 | 20,576 | 4,448 | |||||||||||||||||||||||||
(1) | Included in Investing Cash Flows | |||||||||||||||||||||||||||
Included in Investing Cash Flows | Cash and cash equivalents per condensed consolidated balance sheets | $ | 1,754 | $ | 2,396 | |||||||||||||||||||||||
Add: restricted cash | 3,890 | 5,032 | ||||||||||||||||||||||||||
Cash and cash equivalents per condensed consolidated balance sheets | $ | 2,570 | $ | 3,337 | ||||||||||||||||||||||||
Add: restricted cash | 4,176 | 5,312 | Cash, cash equivalents, and restricted cash | $ | 5,644 | $ | 7,428 | |||||||||||||||||||||
Cash, cash equivalents, and restricted cash | $ | 6,746 | $ | 8,649 |
(A) | Exhibits - |
Exhibit No. | Description | ||
10.1 | Amendment No. 3 to Loan and Security Agreement dated September 17, 2021 - incorporated by reference to Exhibit 10.1 to the Company's Form 8-K. Filed on September 20, 2021. Commission File No. 0-14818. | ||
10.2 | Amendment No. 1 to Subordinated Loan and Security Agreement dated September 17, 2021 - incorporated by reference to Exhibit 10.2 to the Company's Form 8-K Filed on September 20, 2021. Commission File No. 0-14818. | ||
31.1 | Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2 | 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 | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
By: /s/ Kunal Chopra | ||
Kunal Chopra | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
By: /s/ Edwin Sapienza | ||
Edwin Sapienza | ||
Chief Financial Officer | ||
(Principal and Chief Accounting Officer) |