☒ | 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 |
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 | |
22 | |
PART II. OTHER INFORMATION | |
October 29, | January 29, | October 30, | April 29, | January 28, | April 30, | |||||||||||||||||||
2022 | 2022 | 2021 | 2023 | 2023 | 2022 | |||||||||||||||||||
ASSETS | Unaudited | Unaudited | ||||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 769 | $ | 1,218 | $ | 1,754 | $ | 514 | $ | 1,130 | $ | 828 | ||||||||||||
Restricted cash | 1,158 | 1,158 | 1,158 | 1,158 | 1,158 | 1,158 | ||||||||||||||||||
Accounts receivable | 2,796 | 2,335 | 2,566 | 2,879 | 1,969 | 2,727 | ||||||||||||||||||
Merchandise inventory | 37,353 | 29,277 | 30,248 | 27,703 | 26,704 | 32,254 | ||||||||||||||||||
Prepaid expenses and other current assets | 706 | 649 | 760 | 300 | 999 | 558 | ||||||||||||||||||
Total current assets | 42,782 | 34,637 | 36,486 | 32,554 | 31,960 | 37,525 | ||||||||||||||||||
Restricted cash | 1,601 | 2,447 | 2,732 | 1,571 | 1,338 | 2,160 | ||||||||||||||||||
Fixed assets, net | 2,140 | 2,335 | 2,251 | 1,913 | 1,999 | 2,441 | ||||||||||||||||||
Operating lease right-of-use assets | 1,678 | 2,144 | 2,284 | 1,344 | 1,505 | 1,990 | ||||||||||||||||||
Cash Surrender Value | 3,563 | 4,154 | 4,413 | |||||||||||||||||||||
Cash surrender value | 3,369 | 3,371 | 3,800 | |||||||||||||||||||||
Other assets | 682 | 965 | 1,074 | 566 | 566 | 872 | ||||||||||||||||||
TOTAL ASSETS | $ | 52,446 | $ | 46,682 | $ | 49,240 | $ | 41,317 | $ | 40,739 | $ | 48,788 | ||||||||||||
LIABILITIES | ||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||
Accounts payable | $ | 12,648 | $ | 6,271 | $ | 6,743 | $ | 9,088 | $ | 7,044 | $ | 7,664 | ||||||||||||
Short-term borrowings | 9,494 | 9,966 | 5,858 | 9,295 | 8,812 | 10,508 | ||||||||||||||||||
Accrued expenses and other current liabilities | 1,962 | 2,362 | 2,685 | 2,652 | 2,876 | 2,208 | ||||||||||||||||||
Current portion of operating lease liabilities | 634 | 649 | 636 | 708 | 695 | 663 | ||||||||||||||||||
Total current liabilities | 24,738 | 19,248 | 15,922 | 21,743 | 19,427 | 21,043 | ||||||||||||||||||
Operating lease liabilities | 1,253 | 1,608 | 1,764 | 880 | 1,019 | 1,439 | ||||||||||||||||||
Long-term debt | 9,163 | 4,356 | 4,161 | 10,429 | 9,790 | 7,944 | ||||||||||||||||||
Other long-term liabilities | 13,590 | 14,185 | 15,515 | 11,455 | 11,604 | 13,987 | ||||||||||||||||||
TOTAL LIABILITIES | 48,744 | 39,397 | 37,362 | 44,507 | 41,840 | 44,413 | ||||||||||||||||||
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; 5,321,985, 3,902,985 and 3,902,985 shares issued, respectively) | 53 | 39 | 39 | |||||||||||||||||||||
Common stock ($0.01 par value; 200,000,000 shares authorized; 5,432,072, 5,432,072 and 3,902,985 shares issued, respectively) | 54 | 54 | 39 | |||||||||||||||||||||
Additional paid-in capital | 213,992 | 359,220 | 359,100 | 214,092 | 214,029 | 360,738 | ||||||||||||||||||
Treasury stock at cost (467,069, 1,410,378 and 1,410,378 shares, respectively) | (76,132 | ) | (230,170 | ) | (230,170 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | (910 | ) | (910 | ) | (2,007 | ) | ||||||||||||||||||
Treasury stock at cost (467,069, 467,069 and 1,410,417 shares, respectively) | (76,132 | ) | (76,132 | ) | (230,170 | ) | ||||||||||||||||||
Accumulated other comprehensive gain (loss) | 886 | 886 | (910 | ) | ||||||||||||||||||||
Accumulated deficit | (133,301 | ) | (120,894 | ) | (115,084 | ) | (142,090 | ) | (139,938 | ) | (125,322 | ) | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 3,702 | 7,285 | 11,878 | (3,190 | ) | (1,101 | ) | 4,375 | ||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 52,446 | $ | 46,682 | $ | 49,240 | $ | 41,317 | $ | 40,739 | $ | 48,788 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||||||
October 29, | October 30, | October 29, | October 30, | April 29, | April 30, | |||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Net revenue | $ | 29,145 | $ | 32,172 | $ | 94,843 | $ | 107,680 | $ | 32,932 | $ | 31,791 | ||||||||||||
Cost of sales | 22,570 | 24,168 | 74,688 | 81,044 | 25,479 | 24,940 | ||||||||||||||||||
Gross profit | 6,575 | 8,004 | 20,155 | 26,636 | 7,453 | 6,851 | ||||||||||||||||||
Selling, general and administrative expenses | 9,255 | 10,018 | 29,975 | 30,886 | 8,709 | 10,517 | ||||||||||||||||||
Loss from operations | (2,680 | ) | (2,014 | ) | (9,820 | ) | (4,250 | ) | (1,256 | ) | (3,666 | ) | ||||||||||||
Interest expense | 881 | 439 | 2,544 | 1,455 | 896 | 762 | ||||||||||||||||||
Other income | - | (1,567 | ) | - | (3,530 | ) | ||||||||||||||||||
Loss before income tax expense | (3,561 | ) | (886 | ) | (12,364 | ) | (2,175 | ) | ||||||||||||||||
Loss from operations before income tax expense | (2,152 | ) | (4,428 | ) | ||||||||||||||||||||
Income tax expense | - | - | 43 | 46 | - | - | ||||||||||||||||||
Net loss | $ | (3,561 | ) | $ | (886 | ) | $ | (12,407 | ) | $ | (2,221 | ) | $ | (2,152 | ) | $ | (4,428 | ) | ||||||
BASIC AND DILUTED LOSS PER SHARE: | ||||||||||||||||||||||||
BASIC AND DILUTED INCOME PER SHARE: | ||||||||||||||||||||||||
Basic and diluted loss per common share | $ | (0.92 | ) | $ | (0.36 | ) | $ | (4.15 | ) | $ | (0.92 | ) | $ | (0.43 | ) | $ | (1.78 | ) | ||||||
Weighted average number of common shares outstanding – basic and diluted | 3,865 | 2,491 | 2,990 | 2,404 | 4,965 | 2,493 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||||||
October 29, | October 30, | October 29, | October 30, | April 29, | April 30, | |||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Net loss | $ | (3,561 | ) | $ | (886 | ) | $ | (12,407 | ) | $ | (2,221 | ) | $ | (2,152 | ) | $ | (4,428 | ) | ||||||
Amortization of pension gain | - | - | - | - | - | - | ||||||||||||||||||
Comprehensive loss | $ | (3,561 | ) | $ | (886 | ) | $ | (12,407 | ) | $ | (2,221 | ) | $ | (2,152 | ) | $ | (4,428 | ) |
Thirteen Weeks Ended April 29, 2023 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Additional | Treasury | Other | Earnings | |||||||||||||||||||||||||||||
Common | Treasury | Common | Paid-in | Stock | Comprehensive | (Accumulated | Shareholders’ | |||||||||||||||||||||||||
Shares | Shares | Stock | Capital | At Cost | Loss | Deficit) | Equity | |||||||||||||||||||||||||
Balance as of January 28, 2023 | 5,432 | (467 | ) | $ | 54 | $ | 214,029 | $ | (76,132 | ) | $ | 886 | $ | (139,938 | ) | $ | (1,101 | ) | ||||||||||||||
Net Loss | - | - | - | - | - | - | (2,152 | ) | (2,152 | ) | ||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | 63 | - | - | - | 63 | ||||||||||||||||||||||||
Balance as of April 29, 2023 | 5,432 | $ | (467 | ) | $ | 54 | $ | 214,092 | $ | (76,132 | ) | $ | 886 | $ | (142,090 | ) | $ | (3,190 | ) |
Thirteen Weeks Ended April 30, 2022 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Additional | Treasury | Other | Earnings | |||||||||||||||||||||||||||||
Common | Treasury | Common | Paid-in | Stock | Comprehensive | (Accumulated | Shareholders’ | |||||||||||||||||||||||||
Shares | Shares | Stock | Capital | At Cost | Loss | Deficit) | Equity | |||||||||||||||||||||||||
Balance as of January 29, 2022 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,220 | $ | (230,170 | ) | $ | (910 | ) | $ | (120,894 | ) | $ | 7,285 | ||||||||||||||
Net Loss | - | - | - | - | - | - | (4,428 | ) | (4,428 | ) | ||||||||||||||||||||||
Issuance of warrants | - | - | - | 1,518 | - | - | - | 1,518 | ||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Balance as of April 30, 2022 | 3,903 | $ | (1,410 | ) | $ | 39 | $ | 360,738 | $ | (230,170 | ) | $ | (910 | ) | $ | (125,322 | ) | $ | 4,375 |
Thirteen Weeks Ended October 29, 2022 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Additional | Treasury | Other | Earnings | |||||||||||||||||||||||||||||
Common | Treasury | Common | Paid-in | Stock | Comprehensive | (Accumulated | Shareholders’ | |||||||||||||||||||||||||
Shares | Shares | Stock | Capital | At Cost | Loss | Deficit) | Equity | |||||||||||||||||||||||||
Balance as of July 30, 2022 | 3,912 | (772 | ) | $ | 39 | $ | 263,723 | $ | (125,906 | ) | $ | (910 | ) | $ | (129,740 | ) | $ | 7,206 | ||||||||||||||
Net loss | - | - | - | - | - | - | (3,561 | ) | (3,561 | ) | ||||||||||||||||||||||
Issuance of shares, net of expenses | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Exercise of warrants | 1,403 | 305 | 14 | (49,788 | ) | 49,774 | - | - | - | |||||||||||||||||||||||
Common stock issued-Restricted share units | 7 | - | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | 57 | - | - | - | 57 | ||||||||||||||||||||||||
Balance as of October 29, 2022 | 5,322 | (467 | ) | $ | 53 | $ | 213,992 | $ | (76,132 | ) | $ | (910 | ) | $ | (133,301 | ) | $ | 3,702 |
Thirty-Nine Weeks Ended October 29, 2022 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Additional | Treasury | Other | Earnings | |||||||||||||||||||||||||||||
Common | Treasury | Common | Paid-in | Stock | Comprehensive | (Accumulated | Shareholders’ | |||||||||||||||||||||||||
Shares | Shares | Stock | Capital | At Cost | Loss | Deficit) | Equity | |||||||||||||||||||||||||
Balance as of January 29, 2022 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,220 | $ | (230,170 | ) | $ | (910 | ) | $ | (120,894 | ) | $ | 7,285 | ||||||||||||||
Net loss | - | - | - | - | - | - | (12,407 | ) | (12,407 | ) | ||||||||||||||||||||||
Issuance of shares, net of expenses | - | 638 | - | (97,127 | ) | 104,264 | - | - | 7,137 | |||||||||||||||||||||||
Issuance of warrants | - | - | - | 1,518 | - | - | - | 1,518 | ||||||||||||||||||||||||
Exercise of warrants | 1,403 | 305 | 14 | (49,788 | ) | 49,774 | - | - | - | |||||||||||||||||||||||
Vested restricted of shares | 7 | - | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||
Common stock issued- Director grants | 9 | - | - | 41 | - | - | - | 41 | ||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | 128 | - | - | - | 128 | ||||||||||||||||||||||||
Balance as of October 29, 2022 | 5,322 | (467 | ) | $ | 53 | $ | 213,992 | $ | (76,132 | ) | $ | (910 | ) | $ | (133,301 | ) | $ | 3,702 |
Thirteen Weeks Ended October 30, 2021 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Additional | Treasury | Other | Earnings | |||||||||||||||||||||||||||||
Common | Treasury | Common | Paid-in | Stock | Comprehensive | (Accumulated | Shareholders’ | |||||||||||||||||||||||||
Shares | Shares | Stock | Capital | At Cost | Loss | Deficit) | Equity | |||||||||||||||||||||||||
Balance as of July 31, 2021 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,016 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (114,198 | ) | $ | 12,680 | ||||||||||||||
Net loss | - | - | - | - | - | - | (886 | ) | (886 | ) | ||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | 84 | - | - | - | 84 | ||||||||||||||||||||||||
Balance as of October 30, 2021 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,100 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (115,084 | ) | $ | 11,878 |
Thirty-Nine Weeks Ended October 30, 2021 | ||||||||||||||||||||||||||||||||
Number of shares outstanding | Accumulated | Retained | ||||||||||||||||||||||||||||||
Additional | Treasury | Other | Earnings | |||||||||||||||||||||||||||||
Common | Treasury | Common | Paid-in | Stock | Comprehensive | (Accumulated | Shareholders’ | |||||||||||||||||||||||||
Shares | Shares | Stock | Capital | At Cost | Loss | Deficit) | Equity | |||||||||||||||||||||||||
Balance as of January 30, 2021 | 3,337 | (1,410 | ) | $ | 33 | $ | 346,495 | $ | (230,169 | ) | $ | (2,007 | ) | $ | (112,863 | ) | $ | 1,489 | ||||||||||||||
Net loss | - | - | - | - | - | - | (2,221 | ) | (2,221 | ) | ||||||||||||||||||||||
Issuance of warrants | 138 | - | 2 | - | (1 | ) | - | - | 1 | |||||||||||||||||||||||
Sales of shares, net of expense | 417 | - | 4 | 12,227 | - | - | - | 12,231 | ||||||||||||||||||||||||
Exercise of stock options | 2 | - | - | 51 | - | - | - | 51 | ||||||||||||||||||||||||
Common stock issued- Director grants | 9 | - | - | 184 | - | - | - | 184 | ||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization | - | - | - | 143 | - | - | - | 143 | ||||||||||||||||||||||||
Balance as of October 30, 2021 | 3,903 | (1,410 | ) | $ | 39 | $ | 359,100 | $ | (230,170 | ) | $ | (2,007 | ) | $ | (115,084 | ) | $ | 11,878 |
Thirty-nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
October 29, | October 30, | April 29, | April 30, | |||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||
Net loss | $ | (12,407 | ) | $ | (2,221 | ) | ||||||||||
Net income loss | $ | (2,152 | ) | $ | (4,428 | ) | ||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation of fixed assets | 961 | 1,064 | 188 | 293 | ||||||||||||
Amortization of intangible assets | - | 732 | ||||||||||||||
Stock-based compensation | 169 | 327 | 63 | - | ||||||||||||
Interest on long-term debt | 640 | 106 | ||||||||||||||
Amortization of ROU asset | 466 | 458 | 161 | 154 | ||||||||||||
Amortization of warrant interest | 766 | 191 | ||||||||||||||
Interest on long term debt | 849 | 570 | ||||||||||||||
Change in cash surrender value | 591 | (557 | ) | 2 | 354 | |||||||||||
Forgiveness of PPP Loan | - | (1,963 | ) | |||||||||||||
Changes in operating assets and liabilities that provide (use) cash: | ||||||||||||||||
Accounts receivable | (461 | ) | 150 | (910 | ) | (392 | ) | |||||||||
Merchandise inventory | (8,075 | ) | (5,732 | ) | (999 | ) | (2,977 | ) | ||||||||
Prepaid expenses and other current assets | (56 | ) | (196 | ) | 698 | 92 | ||||||||||
Other long-term assets | 283 | 268 | - | 93 | ||||||||||||
Accounts payable | 6,377 | (2,150 | ) | 2,044 | 1,393 | |||||||||||
Accrued expenses and other current liabilities | (706 | ) | 236 | (212 | ) | (140 | ) | |||||||||
Other long-term liabilities | (951 | ) | (1,167 | ) | (285 | ) | (368 | ) | ||||||||
Net cash used in operating activities | (12,194 | ) | (9,990 | ) | (762 | ) | (5,820 | ) | ||||||||
INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of fixed assets | (766 | ) | (1,046 | ) | (103 | ) | (399 | ) | ||||||||
Net cash provided by (used in) investing activities | (766 | ) | (1,046 | ) | (103 | ) | (399 | ) | ||||||||
FINANCING ACTIVITIES: | ||||||||||||||||
Proceeds from short term borrowings | 482 | 542 | ||||||||||||||
Proceeds from long term borrowings | 5,000 | - | - | 5,000 | ||||||||||||
Proceeds from issuance of shares, net of expense | 7,137 | 12,231 | ||||||||||||||
Proceeds from exercise of stock options | - | 51 | ||||||||||||||
Payments of PPP loan | - | (76 | ) | |||||||||||||
Payment of short term borrowings | (9,966 | ) | (6,339 | ) | ||||||||||||
Payments of long term borrowings | - | (1,600 | ) | |||||||||||||
Proceeds from short term borrowings | 9,494 | 5,858 | ||||||||||||||
Net cash provided by (used in) financing activities | 11,665 | 10,125 | ||||||||||||||
Net cash provided by financing activities | 482 | 5,542 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (1,295 | ) | (911 | ) | ||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | (383 | ) | (677 | ) | ||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 4,823 | 6,555 | 3,626 | 4,823 | ||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 3,528 | $ | 5,644 | $ | 3,243 | $ | 4,146 | ||||||||
Supplemental disclosures and non-cash investing and financing activities: | ||||||||||||||||
Interest paid | $ | 461 | $ | 295 | $ | 246 | $ | 202 | ||||||||
Warrants issued with debt | $ | 1,633 | $ | - | - | 1,633 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
October 29, | October 30, | October 29, | October 30, | |||||||||||||
(amounts in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Amortized intangible assets: | ||||||||||||||||
Technology | $ | - | $ | 65 | $ | - | $ | 259 | ||||||||
Trade names and trademarks | - | 153 | - | 473 | ||||||||||||
Total amortization expense | $ | - | $ | 218 | $ | - | $ | 732 |
October 29, | January 29, | October 30, | April 29, | January 28, | April 30, | |||||||||||||||||||
2022 | 2022 | 2021 | 2023 | 2023 | 2022 | |||||||||||||||||||
Cash and cash equivalents | $ | 769 | $ | 1,218 | $ | 1,754 | $ | 514 | $ | 1,130 | $ | 828 | ||||||||||||
Restricted cash | 2,759 | 3,605 | 3,890 | 2,729 | 2,496 | 3,318 | ||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 3,528 | $ | 4,823 | $ | 5,644 | $ | 3,243 | $ | 3,626 | $ | 4,146 |
Employee Stock Award Plans | Employee Stock Award Plans | |||||||||||||||||||||||||||||||||||||||
Number of Shares Subject To Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Other Share Awards (1) | Weighted Average Grant Fair Value | 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 29, 2022 | 85,965 | $ | 13.41 | 7.5 | 90,000 | $ | 15.39 | |||||||||||||||||||||||||||||||||
Balance January 28, 2023 | 123,642 | $ | 6.00 | 7.5 | 19,500 | $ | 18.35 | |||||||||||||||||||||||||||||||||
Granted | 21,750 | 5.57 | 9.9 | 9,000 | 4.59 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Forfeited | (20,045 | ) | 9.31 | 9.1 | (63,500 | ) | 14.08 | - | - | - | - | - | ||||||||||||||||||||||||||||
Canceled | (17,306 | ) | 15.56 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Exercised | - | - | - | (12,000 | ) | 10.77 | - | - | - | - | - | |||||||||||||||||||||||||||||
Balance October 29, 2022 | 70,364 | $ | 10.23 | 7.6 | 23,500 | $ | 17.69 | |||||||||||||||||||||||||||||||||
Exercisable October 29, 2022 | 25,294 | $ | 18.70 | 6.2 | - | $ | - | |||||||||||||||||||||||||||||||||
Balance April 29, 2023 | 123,642 | $ | 6.00 | 7.1 | 19,500 | $ | 18.35 | |||||||||||||||||||||||||||||||||
Exercisable April 29, 2023 | 30,821 | $ | 15.37 | 4.4 | - | $ | - |
Exercise | Exercise | Number | Exercise | Number | ||||||
Price | Price | Outstanding | Price | Outstanding | ||||||
$ | 0.001 | 109,416 | 0.01 | 325,126 | ||||||
$ | 0.01 | 327,539 | 3.13 | 2,457,160 | ||||||
$ | 0.125 | 2,457,160 | ||||||||
2,894,115 | 2,782,286 |
Thirteen Weeks Ended | ||||||||
(amounts in thousands) | April 29, | April 30, | ||||||
2023 | 2022 | |||||||
Interest cost | $ | 139 | $ | 89 | ||||
Net periodic pension cost | $ | 139 | $ | 89 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
(amounts in thousands) | October 29, | October 30, | October 29, | October 30, | ||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Interest cost | $ | 89 | $ | 63 | $ | 267 | $ | 189 | ||||||||
Net periodic pension cost | $ | 89 | $ | 63 | $ | 267 | $ | 189 |
Thirteen Weeks Ended | Change | Thirty-Nine Weeks Ended | Change | |||||||||||||||||||||||||||||
(amounts in thousands) | October 29, 2022 | October 30, 2021 | $ | % | October 29, 2022 | October 30, 2021 | $ | % | ||||||||||||||||||||||||
Net Revenue | $ | 29,145 | $ | 32,172 | $ | (3,027 | ) | -9.4 | % | $ | 94,843 | $ | 107,680 | $ | (12,837 | ) | -11.9 | % | ||||||||||||||
Gross profit | 6,575 | 8,004 | (1,429 | ) | -17.9 | % | 20,155 | 26,636 | (6,481 | ) | -24.3 | % | ||||||||||||||||||||
% to sales | 22.6 | % | 24.9 | % | 21.3 | % | 24.7 | % |
Thirteen weeks ended | Change | |||||||||||||||||||||||
April 29, 2023 | April 30, 2022 | $ | % | |||||||||||||||||||||
Amazon US | $ | 31,676 | 96.2 | % | $ | 29,620 | 93.2 | % | $ | 2,056 | 6.9 | % | ||||||||||||
Amazon International | 503 | 1.5 | % | 1,287 | 4.0 | % | (784 | ) | -60.9 | % | ||||||||||||||
Walmart, Target & other marketplaces | 476 | 1.4 | % | 430 | 1.4 | % | 46 | 10.7 | % | |||||||||||||||
Subtotal Retail as a Service | 32,655 | 99.2 | % | 31,337 | 98.6 | % | 1,318 | 4.2 | % | |||||||||||||||
Subscriptions | 277 | 0.8 | % | 454 | 1.4 | % | (177 | ) | -39.0 | % | ||||||||||||||
Net revenue | $ | 32,932 | 100.0 | % | $ | 31,791 | 100.0 | % | $ | 1,141 | 3.6 | % |
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||||||||||||||||||||||||||
October 29, 2022 | October 30, 2021 | Change | October 29, 2022 | October 30, 2021 | Change | |||||||||||||||||||||||||||||||||||
Amazon US | $ | 27,883 | 95.7 | % | $ | 30,423 | 94.6 | % | -8.3 | % | $ | 89,480 | 94.3 | % | $ | 100,581 | 93.4 | % | -11.0 | % | ||||||||||||||||||||
Amazon International | 528 | 1.8 | % | 738 | 2.3 | % | -28.5 | % | 2,807 | 3.0 | % | 4,295 | 4.0 | % | -34.6 | % | ||||||||||||||||||||||||
Other Marketplaces | 350 | 1.2 | % | 543 | 1.7 | % | -35.5 | % | 1,131 | 1.2 | % | 1,428 | 1.3 | % | -20.8 | % | ||||||||||||||||||||||||
Subtotal Retail as a Service | 28,761 | 98.7 | % | 31,704 | 98.5 | % | -9.3 | % | 93,418 | 98.5 | % | 106,304 | 98.7 | % | -12.1 | % | ||||||||||||||||||||||||
Subscriptions | 384 | 1.3 | % | 468 | 1.5 | % | -17.9 | % | 1,425 | 1.5 | % | 1,376 | 1.3 | % | 3.6 | % | ||||||||||||||||||||||||
Net revenue | $ | 29,145 | 100.0 | % | $ | 32,172 | 100.0 | % | -9.4 | % | $ | 94,843 | 100.0 | % | $ | 107,680 | 100.0 | % | -11.9 | % |
Thirteen Weeks Ended | Change | Thirty-nine Weeks | Change | |||||||||||||||||||||||||||||
(amounts in thousands) | October 29, 2022 | October 30, 2021 | $ | % | October 29, 2022 | October 30, 2021 | $ | % | ||||||||||||||||||||||||
Merchandise margin | $ | 12,691 | $ | 14,653 | $ | (1,962) | -13.4 | % | $ | 40,858 | $ | 49,309 | $ | (8,451) | -17.1 | % | ||||||||||||||||
% of net revenue | 43.5 | % | 45.5 | % | -2.0 | % | 43.1 | % | 45.8 | % | -2.7 | % | ||||||||||||||||||||
Fulfillment fees | (3,888 | ) | (4,375 | ) | 487 | -11.1 | % | (13,110 | ) | (16,218 | ) | 3,108 | -19.2 | % | ||||||||||||||||||
Warehousing and freight | (2,228 | ) | (2,274 | ) | 46 | -2.0 | % | (7,593 | ) | (6,455 | ) | (1,138) | 17.6 | % | ||||||||||||||||||
Gross profit | $ | 6,575 | $ | 8,004 | $ | (1,429) | -17.9 | % | $ | 20,155 | $ | 26,636 | $ | (6,481) | -24.3 | % | ||||||||||||||||
% of net revenue | 22.6 | % | 24.9 | % | 21.3 | % | 24.7 | % |
Thirteen Weeks Ended | Change | |||||||||||||||
(amounts in thousands) | April 29, 2023 | April 30, 2022 | $ | % | ||||||||||||
Merchandise margin | $ | 13,309 | $ | 14,046 | $ | (737 | ) | (5.2 | )% | |||||||
% of net revenue | 40.4 | % | 44.2 | % | (3.8 | )% | ||||||||||
Fulfillment fees | (4,112 | ) | (4,568 | ) | (456 | ) | (10.0 | )% | ||||||||
Warehousing and freight | (1,744 | ) | (2,627 | ) | (883 | ) | (33.6 | )% | ||||||||
Gross profit | $ | 7,453 | $ | 6,851 | $ | 602 | 8.8 | % | ||||||||
% of net revenue | 22.6 | % | 21.6 | % |
Thirteen Weeks Ended | Change | Thirty-Nine Weeks Ended | Change | Thirteen weeks ended | Change | |||||||||||||||||||||||||||||||||||||||||||
(amounts in thousands) | October 29, 2022 | October 30, 2021 | $ | % | October 29, 2022 | October 30, 2021 | $ | % | ||||||||||||||||||||||||||||||||||||||||
April 29, 2023 | April 30, 2023 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||
Selling expenses | $ | 4,206 | $ | 4,580 | $ | (374 | ) | -8.2 | % | $ | 13,683 | $ | 15,571 | $ | (1,888 | ) | -12.1 | % | $ | 4,631 | $ | 4,601 | $ | 30 | 0.7 | % | ||||||||||||||||||||||
General and administrative expenses | 5,049 | 5,438 | (389 | ) | -7.2 | % | 16,292 | 15,315 | 977 | 6.4 | % | 4,078 | 5,916 | (1,838 | ) | -31.1 | % | |||||||||||||||||||||||||||||||
Total SG&A expenses | $ | 9,255 | $ | 10,018 | $ | (763 | ) | -7.6 | % | $ | 29,975 | $ | 30,886 | $ | (911 | ) | -2.9 | % | ||||||||||||||||||||||||||||||
SG&A Expenses | $ | 8,709 | $ | 10,517 | $ | (1,808 | ) | -17.2 | % | |||||||||||||||||||||||||||||||||||||||
As a % of total revenue | 31.8 | % | 31.1 | % | 31.6 | % | 28.7 | % | 27.4 | % | 33.1 | % |
As of or for the Thirty-nine Weeks Ended | Change | |||||||||||||
(amounts in thousands) | October 29, 2022 | October 30, 2021 | $ | |||||||||||
Operating Cash Flows | $ | (12,193 | ) | $ | (9,990 | ) | $ | (2,203 | ) | |||||
Investing Cash Flows | (766 | ) | (1,046 | ) | 280 | |||||||||
Financing Cash Flows | 11,666 | 10,125 | 1,541 | |||||||||||
Capital Expenditures(1) | (766 | ) | (1,046 | ) | 280 | |||||||||
Cash, Cash Equivalents, and Restricted Cash | (2) | 3,528 | 5,644 | (2,116 | ) | |||||||||
Merchandise Inventory (2) | 37,353 | 30,248 | 7,105 | |||||||||||
(1) | Included in Investing Cash Flows | |||||||||||||
(2) | Cash and cash equivalents per condensed consolidated balance sheets | $ | 769 | $ | 1,754 | $ | (985 | ) | ||||||
Add: restricted cash | 2,759 | 3,890 | (1,131 | ) | ||||||||||
Cash, cash equivalents, and restricted cash | $ | 3,528 | $ | 5,644 | $ | (2,116 | ) |
As of or for the Thirteen Weeks Ended | Change | |||||||||||
(amounts in thousands) | April 29, 2023 | April 30, 2022 | $ | |||||||||
Operating Cash Flows | $ | (763 | ) | $ | (5,820 | ) | $ | 5,057 | ||||
Investing Cash Flows | (103 | ) | (399 | ) | 296 | |||||||
Financing Cash Flows | 482 | 5,542 | (5,060 | ) | ||||||||
Capital Expenditures(1) | (103 | ) | (399 | ) | 296 | |||||||
Cash, Cash Equivalents, and Restricted Cash (2) | 3,243 | 4,146 | (903 | ) | ||||||||
Merchandise Inventory | 28,929 | 32,254 | (3,325 | ) | ||||||||
(1)Included in Investing Cash Flows | ||||||||||||
(2)Cash and cash equivalents per condensed consolidated balance sheets | $ | 514 | $ | 828 | ||||||||
Add: restricted cash | 2,729 | 3,318 | ||||||||||
Cash, cash equivalents, and restricted cash | $ | 3,243 | $ | 4,146 |
Exhibit No. | Description | |
Amendment No. 5 to Loan and Security Agreement | ||
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). |
KASPIEN HOLDINGS INC. | |||
By: /s/ Brock Kowalchuk | |||
Brock Kowalchuk | |||
Principal Executive Officer | |||
(Principal Executive Officer) | |||
By: /s/ Edwin Sapienza | |||
Edwin Sapienza | |||
Chief Financial Officer | |||
(Principal and Chief Accounting Officer) |