Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May 02, 2021 | Jun. 07, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Lovesac Co | |
Trading Symbol | LOVE | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-31 | |
Entity Common Stock, Shares Outstanding | 15,095,160 | |
Amendment Flag | false | |
Entity Central Index Key | 0001701758 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | May 2, 2021 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38555 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0514958 | |
Entity Address, Address Line One | Two Landmark Square | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901 | |
City Area Code | 888 | |
Local Phone Number | 636-1223 | |
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | May 02, 2021 | Jan. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 65,740,400 | $ 78,341,101 |
Trade accounts receivable | 6,895,679 | 4,513,460 |
Merchandise inventories | 55,956,132 | 50,416,712 |
Prepaid expenses and other current assets | 11,609,793 | 10,128,353 |
Total Current Assets | 140,202,004 | 143,399,626 |
Property and equipment, net | 26,830,716 | 25,867,980 |
Operating lease right-of-use assets | 90,745,429 | |
Other Assets | ||
Goodwill | 143,562 | 143,562 |
Intangible assets, net | 1,192,568 | 1,517,032 |
Deferred financing costs, net | 68,003 | 90,671 |
Total Other Assets | 1,404,133 | 1,751,265 |
Total Assets | 259,182,282 | 171,018,871 |
Current Liabilities | ||
Accounts payable | 17,745,185 | 24,310,972 |
Accrued expenses | 13,931,405 | 17,187,694 |
Payroll payable | 8,134,045 | 6,361,677 |
Customer deposits | 7,843,326 | 5,992,633 |
Current operating lease liabilities | 14,287,019 | |
Sales taxes payable | 1,785,519 | 2,470,593 |
Total Current Liabilities | 63,726,499 | 56,323,569 |
Deferred Rent | 6,748,747 | |
Operating Lease Liability, long-term | 84,732,550 | |
Line of Credit | 41,673 | |
Total Liabilities | 148,500,722 | 63,072,316 |
Stockholders’ Equity | ||
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of May 2, 2021 and January 31, 2021. | ||
Common Stock $.00001 par value, 40,000,000 shares authorized, 15,018,530 shares issued and outstanding as of May 2, 2021 and 15,011,556 shares issued and outstanding as of January 31, 2021. | 150 | 150 |
Additional paid-in capital | 172,056,558 | 171,382,086 |
Accumulated deficit | (61,375,148) | (63,435,681) |
Stockholders’ Equity | 110,681,560 | 107,946,555 |
Total Liabilities and Stockholders’ Equity | $ 259,182,282 | $ 171,018,871 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | May 02, 2021 | Jan. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 15,018,530 | 15,011,556 |
Common stock, shares outstanding | 15,018,530 | 15,011,556 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 82,915,419 | $ 54,372,407 |
Cost of merchandise sold | 36,839,311 | 27,088,838 |
Gross profit | 46,076,108 | 27,283,569 |
Operating expenses | ||
Selling, general and administration expenses | 30,718,182 | 25,831,402 |
Advertising and marketing | 10,680,365 | 8,195,585 |
Depreciation and amortization | 2,419,704 | 1,635,660 |
Total operating expenses | 43,818,251 | 35,662,647 |
Operating income (loss) | 2,257,857 | (8,379,078) |
Interest (expense) income, net | (44,138) | 56,356 |
Net income (loss) before taxes | 2,213,719 | (8,322,722) |
Provision for income taxes | (153,186) | (25,029) |
Net income (loss) | $ 2,060,533 | $ (8,347,751) |
Net income (loss) per common share: | ||
Basic (in Dollars per share) | $ 0.14 | $ (0.58) |
Diluted (in Dollars per share) | $ 0.13 | $ (0.58) |
Weighted average number of common shares outstanding: | ||
Basic (in Shares) | 15,034,954 | 14,480,081 |
Diluted (in Shares) | 16,073,021 | 14,480,081 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Shares | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Feb. 02, 2020 | $ 145 | $ 168,317,210 | $ (78,162,828) | $ 90,154,527 |
Balance (in Shares) at Feb. 02, 2020 | 14,472,611 | |||
Net income (loss) | (8,347,751) | (8,347,751) | ||
Equity based compensation | 898,077 | 898,077 | ||
Vested restricted stock units | ||||
Vested restricted stock units (in Shares) | 35,776 | |||
Taxes paid for net share settlement of equity awards | (149,512) | (149,512) | ||
Balance at May. 03, 2020 | $ 145 | 169,065,775 | (86,510,579) | 82,555,341 |
Balance (in Shares) at May. 03, 2020 | 14,508,387 | |||
Balance at Jan. 31, 2021 | $ 150 | 171,382,086 | (63,435,681) | 107,946,555 |
Balance (in Shares) at Jan. 31, 2021 | 15,011,556 | |||
Net income (loss) | 2,060,533 | 2,060,533 | ||
Equity based compensation | 654,472 | 654,472 | ||
Vested restricted stock units | ||||
Vested restricted stock units (in Shares) | 4,868 | |||
Exercise of Warrants | 20,000 | 20,000 | ||
Exercise of Warrants (in Shares) | 2,106 | |||
Balance at May. 02, 2021 | $ 150 | $ 172,056,558 | $ (61,375,148) | $ 110,681,560 |
Balance (in Shares) at May. 02, 2021 | 15,018,530 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 2,060,533 | $ (8,347,751) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization of property and equipment | 1,956,383 | 1,557,289 |
Amortization of other intangible assets | 463,321 | 78,371 |
Amortization of deferred financing fees | 22,668 | 19,726 |
Equity based compensation | 654,472 | 898,077 |
Deferred rent | 140,298 | |
Non-cash operating lease cost | 3,546,304 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,382,219) | 112,335 |
Merchandise inventories | (5,539,420) | 2,980,697 |
Prepaid expenses and other current assets | (546,671) | 2,166,595 |
Accounts payable and accrued expenses | (8,290,368) | (3,204,128) |
Operating Lease Liabilities | (3,400,094) | |
Customer deposits | 1,850,693 | 3,085,377 |
Net Cash Used in Operating Activities | (9,604,398) | (513,114) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (2,919,119) | (2,142,086) |
Payments for patents and trademarks | (138,857) | (205,556) |
Net Cash Used in Investing Activities | (3,057,976) | (2,347,642) |
Cash Flows from Financing Activities | ||
Taxes paid for net share settlement of equity awards | (149,512) | |
Proceeds from the exercise of warrants | 20,000 | |
Proceeds from the line of credit | 41,673 | |
Payment of deferred financing costs | (50,000) | |
Net Cash Provided by (Used in) Financing Activities | 61,673 | (199,512) |
Net Change in Cash and Cash Equivalents | (12,600,701) | (3,060,268) |
Cash and Cash Equivalents - Beginning | 78,341,101 | 48,538,827 |
Cash and Cash Equivalents - Ending | 65,740,400 | 45,478,559 |
Supplemental Cash Flow Disclosures | ||
Cash paid for taxes | 61,000 | 25,029 |
Cash paid for interest | $ 8,071 | $ 16,816 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
May 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The condensed consolidated balance sheet of The Lovesac Company (the “Company”, “we”, “us” or “our”) as of January 31, 2021, which has been derived from our audited financial statements as of and for the 52-week year ended January 31, 2021, and the accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Certain information and note disclosures normally included in annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), have been condensed or omitted pursuant to those rules and regulations. The financial information presented herein, which is not necessarily indicative of results to be expected for the full current fiscal year, reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the interim unaudited condensed consolidated financial statements. Such adjustments are of a normal, recurring nature. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements filed in its Annual Report on Form 10-K for the fiscal year ended January 31, 2021. Due to the seasonality of the Company’s business, with the majority of our activity occurring in the fourth quarter of each fiscal year, the results of operations for the thirteen weeks ended May 2, 2021 and May 3, 2020 are not necessarily indicative of results to be expected for the full fiscal year. Nature of Operations The Company is a technology driven company that designs, manufactures and sells unique, high quality furniture derived through its proprietary “Designed for Life” approach which results in products that are built to last a lifetime and designed to evolve as our customers’ lives do. The Company markets and sells its products through modern and efficient showrooms and, increasingly, through online sales directly at www.lovesac.com, supported by direct-to-consumer touch-feel points in the form of our own showrooms as well as through shop-in-shops and pop-up-shops with third party retailers. The Company was formed as a Delaware corporation on January 3, 2017, in connection with a corporate reorganization with SAC Acquisition LLC, a Delaware limited liability company (“SAC LLC”), the predecessor entity to the Company. COVID-19 In March 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic and, in the following weeks, the U.S. federal, state and local governments issued lockdown orders and related safety measures impacting the operations of our showrooms and consumer demand. Although there has been a general improvement in conditions, there continues to be significant uncertainties around the scope and severity of the pandemic, its impact on the global economy, including supply chains, and other business disruptions that may impact our operating results and financial condition. We continue to follow the guidance issued by federal, state and local governments and health organizations and have taken measures to protect the safety of our associates and customers. Operations and Liquidity The Company has incurred significant operating losses and used cash in its operating activities since inception. Operating losses have resulted from inadequate sales levels for the cost structure and expenses as a result of expanding into new markets, opening new showrooms, and investments into advertising, marketing and infrastructure to support increases in revenues. The Company plans to continue to open new retail showrooms in larger markets and increase its shop-in-shop relationships to increase sales levels and invest in advertising and marketing initiatives to increase brand awareness. There can be no assurance that anticipated sales levels will be achieved. The Company believes that based on its current sales and expense levels, projections for the next twelve months, current cash on hand and the credit facility with Wells Fargo Bank, National Association, see Note 7, the Company will have sufficient working capital to cover operating cash needs through the twelve month period from the financial statement issuance date. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
May 02, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS Except as described below, the Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements. The Company, as an emerging growth company, has elected to use the extended transition period for complying with new or revised financial accounting standards. The following new accounting pronouncements were adopted in fiscal 2022: In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) amending lease guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU No. 2020-05 extended the effective date to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2021, with early adoption permitted. The Company adopted the guidance in fiscal 2022 and there was not a material effect on the Company’s consolidated results of operations. Adoption of this standard resulted in the recognition of operating lease right-to-use (“ROU”) assets and corresponding lease liabilities of approximately $90 million and $97 million, respectively, and reclassification of deferred rent of $6.7 million as a reduction of the right-of-use assets on the consolidated balance sheet as of February 1, 2021. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all of our leases. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
May 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 3 - INTANGIBLE ASSETS, NET A summary of intangible assets is as follows: May 2, 2021 Estimated Gross Carrying Amount Accumulated Amortization Net carrying Patents 10 Years $ 2,495,408 $ (1,483,452 ) $ 1,011,956 Trademarks 3 Years 1,270,111 (1,089,499 ) 180,612 Other intangibles 5 Years 839,737 (839,737 ) - Total $ 4,605,256 $ (3,412,688 ) $ 1,192,56 8 January 31, 2021 Estimated Gross Carrying Amount Accumulated Amortization Net carrying Patents 10 Years $ 2,387,328 $ (1,128,997 ) $ 1,258,331 Trademarks 3 Years 1,239,334 (980,633 ) 258,701 Other intangibles 5 Years 839,737 (839,737 ) - Total $ 4,466,399 $ (2,949,367 ) $ 1,517, 032 Amortization expense associated with intangible assets subject to amortization is included in depreciation and amortization expense on the accompanying condensed consolidated statements of operations. Amortization expense on other intangible assets was $463,321 and $78,371 for the thirteen weeks ended May 2, 2021 and May 3, 2020 respectively. As of May 2, 2021, estimated future amortization expense associated with intangible assets subject to amortization is as follows: Remainder of Fiscal 2022 $ 206,758 2023 165,401 2024 147,995 2025 121,669 2026 119,449 2027 117,796 Thereafter 313,500 $ 1,192, 568 |
Income Taxes
Income Taxes | 3 Months Ended |
May 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 4 - INCOME TAXES The Company continues to provide a full valuation allowance against its net deferred tax assets due to the uncertainty as to when business conditions will improve sufficiently to enable it to utilize its deferred tax assets. As a result, the Company did not record a federal or state tax provision or benefit on its operating income or losses for the thirteen weeks ended May 2, 2021 and May 3, 2020. The Company does not anticipate any material adjustments relating to unrecognized tax benefits within the next twelve months; however, the ultimate outcome of tax matters is uncertain and unforeseen results can occur. The Company had no material interest or penalties during the thirteen weeks ended May 2, 2021 and May 3, 2020, respectively, and the Company does not anticipate any such items during the next twelve months. Our policy is to record interest and penalties directly related to uncertain tax positions as income tax expense in the condensed consolidated statements of operations. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Common Share | 3 Months Ended |
May 02, 2021 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE | NOTE 5 - BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding and common stock equivalents outstanding during the period. Diluted net income (loss) per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities where the average market price of the common stock exceeds the exercise prices for the respective periods. In the thirteen weeks ended May 2, 2021, the effects of 652,052 unvested restricted stock units, 495,366 stock options and 291,598 common stock warrants were included in the diluted share calculation. In the thirteen weeks ended May 3, 2020, there were 1,760,245 of potentially dilutive shares which may be issued in the future, including 225,759 unvested restricted stock units, 495,366 stock options and 1,039,120 common stock warrants. These shares were excluded in the diluted net loss per common share calculation as the effects of including theses potentially dilutive shares was antidilutive. |
Commitments, Contingencies and
Commitments, Contingencies and Related Parties | 3 Months Ended |
May 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND RELATED PARTIES | NOTE 6 - COMMITMENTS, CONTINGENCY AND RELATED PARTIES Leases The Company leases its office, warehouse facilities and retail showrooms under operating lease agreements which expire at various dates through June 2031. The Company determines if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits from the use of that identified asset. Certain operating leases have renewal options and rent escalation clauses. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Lease right-of-use assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease right-of-use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease right-of-use asset, unless an implicit rate is readily determinable. We combine lease and certain non-lease components for our showroom real estate leases in determining the lease payments subject to the initial present value calculation. Lease right-of-use assets include upfront lease payments and exclude lease incentives, where applicable. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of twelve months or less are not recorded on the balance sheet. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. ASC 842 requires companies to use the rate implicit in the lease whenever that rate is readily determinable and if the interest rate is not readily determinable, then a lessee may use its incremental borrowing rate. Most of our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our ROU asset and lease liability, we determined our incremental borrowing rate by computing the rate of interest that we would have to pay to (i) borrow on a collateralized basis (ii) over a similar term (iii) at an amount equal to the total lease payments and (iv) in a similar economic environment. We used the incremental borrowing rates we determined as of February 1, 2021 for operating leases that commenced prior to that date. In the case an interest rate is implicit in a lease we will use that rate as the discount rate for that lease. The lease term for all of our lease arrangements include the noncancelable period of the lease plus, if applicable, any additional periods covered by an option to extend the lease that is reasonably certain to be exercised by the Company. Our leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Some of our leases contain variable lease payments based on a Consumer Price Index or percentage of sales, which are excluded from the measurement of the lease liability. The Company’s lease terms and rates are as follows: May 2, Weighted average remaining lease term (in years) Operating Leases 7.1 Weighted average discount rate Operating Leases 3.70 % The following table discloses the amount of our lease expense within our condensed consolidated statement of operations (in thousands): Thirteen weeks ended Operating Lease Cost $ 3,546 Short term lease cost 167 Additional lease cost (1) 2,087 Total Lease Expense $ 5,800 (1) Additional lease payments include index-based changes in rent, maintenance, real estate taxes, insurance and other charges included in the lease The following table discloses the location and amount of our operating lease costs within our condensed consolidated balance sheets: Balance sheet location May 2, Assets Operating leases Operating lease right-of-use assets (non-current) $ 90,745,429 Liabilities Current: Operating leases Current operating lease liabilities 14,287,019 Noncurrent: Operating leases Operating lease liability, long term 84,732,550 Total lease liabilities $ 99,019,569 The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheet as of May 2, 2021: Remainder 2022 $ 11,395,157 2023 17,121,688 2024 16,836,144 2025 15,654,092 2026 13,969,500 Thereafter 38,086,783 Total undiscounted future minimum lease payments 113,063,364 Less: imputed interest (14,043,795 ) Total present value of lease obligations 99,019,569 Less: current operating lease liability (14,287,019 ) Operating lease liability- long term $ 84,732,550 Monthly payments related to these leases range from $2,500 to $45,600. Supplemental Cash Flow information and non-cash activity related to our operating leases is as follows (in thousands): For the thirteen Operating cash flow information: Amounts paid on operating lease liabilities $ 4,070 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 4,743 Severance Contingency The Company has various employment agreements with its senior level executives. A number of these agreements have severance provisions, ranging from 12 to 18 months of salary, in the event those associates are terminated without cause. The total amount of exposure to the Company under these agreements was $4,493,468 at May 2, 2021 if all executives with employment agreements were terminated without cause and the full amount of severance was payable. Legal Contingency The Company is involved in various legal proceedings in the ordinary course of business. Management cannot presently predict the outcome of these matters, although management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a materially adverse effect on the Company’s condensed consolidated financial position, results of operations or cash flows. Related Parties Our equity sponsor Mistral Capital Management, LLC (“Mistral”) performed management services for the Company under a contractual agreement that ended on January 31, 2021. Certain of our directors are members and principals of Mistral. Management fees totaled approximately $100,000 for the thirteen weeks ended May 3, 2020, and are included in selling, general and administrative expenses. There was $15,213 in amounts payable to Mistral as of May 2, 2021 and January 31, 2021 and is included in accrued liabilities in the accompanying condensed consolidated balance sheets. Our equity sponsor Satori Capital, LLC (“Satori”) performed management services for the Company under a contractual agreement that ended on January 31, 2021. One of our directors is a partner at Satori. Management fees totaled approximately $25,000 for the thirteen weeks ended May 3, 2020, and are included in selling, general and administrative expenses. There were no amounts payable to Satori as of May 2, 2021. Amounts payable to Satori as of January 31, 2021 were $8,333 consisting of management fees which were included in accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheets. In addition, the Company reimbursed Satori for expenses incurred in the amount of $36,401 for out-of-pocket expenses for the thirteen weeks ended May 3, 2020. The Company engaged Blueport Commerce (“Blueport”), a company owned in part by investment vehicles affiliated with Mistral, as an ecommerce platform in February 2018. One of our directors is also a director of Blueport. There were $482,848 of fees incurred with Blueport sales transacted through the Blueport platform during the thirteen weeks ended May 3, 2020. There were no amounts payable to Blueport as of May 2, 2021 and January 31, 2021, respectively. The Company terminated the Blueport contract in fiscal 2021 in order to launch a new enhanced ecommerce platform. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
May 02, 2021 | |
Financing Arrangements [Abstract] | |
FINANCING ARRANGEMENTS | NOTE 7 - FINANCING ARRANGEMENTS The Company has a line of credit with Wells Fargo Bank, National Association (“Wells”). The line of credit with Wells allows the Company to borrow up to $25.0 million and will mature in February 2023. Borrowings are limited to 90% of eligible credit card receivables plus 85% of eligible wholesale receivables plus 85% of the net recovery percentage for the eligible inventory multiplied by the value of such eligible inventory of the Company for the period from December 16 of each year until October 14 of the immediately following year, with a seasonal increase to 90% of the net recovery percentage for the period from October 15 of each year until December 15 of such year, seasonal advance rate, minus applicable reserves established by Wells. As of May 2, 2021, and January 31, 2021, the Company’s borrowing availability under the line of credit with Wells was $18.1 and $15.9 million, respectively. As of May 2, 2021, we had borrowings of $41,673 relating to fees associated with the line of credit. As of January 31, 2021, there were no borrowings outstanding on this line of credit. Under the line of credit with Wells, the Company may elect that revolving loans bear interest at a rate per annum equal to the base rate plus the applicable margin or the LIBOR rate plus the applicable margin. The applicable margin is based on tier’s relating to the quarterly average excess availability. The tiers range from 2.00% to 2.25%. The loan agreement calls for certain covenants including a timing of the financial statement’s threshold and a minimum excess availability threshold. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
May 02, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 8 - STOCKHOLDERS’ EQUITY Common Stock Warrants The following represents warrant activity during the thirteen weeks ended May 2, 2021 and May 3, 2020: Average exercise price Number of warrants Weighted average remaining contractual life (in years) Warrants Outstanding at February 2, 2020 $ 16.83 1,039,120 1.93 Warrants issued - - - Expired and canceled - - - Exercised - - - Outstanding at May 3, 2020 $ 16.83 1,039,120 1.68 Warrants Outstanding at January 31, 2021 $ 19.07 293,973 2.57 Warrants issued - - - Expired and canceled - - - Exercised 16.00 (2,375 ) 0.16 Outstanding at May 2, 2021 $ 19.11 291,598 2.09 In the thirteen weeks ended May 2, 2021, a total of 1,125 warrants were exercised on a cashless basis, whereby the holders received fewer shares of common stock in lieu of a cash payment to the Company. Warrants exercised in the thirteen weeks ended May 2, 2021 resulted in the issuance of 2,106 common shares. Equity Incentive Plans The Company adopted the 2017 Equity Incentive Plan (the “2017 Equity Plan”) which provides for awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards and other stock-based Awards. All awards shall be granted within 10 years from the effective date of the 2017 Equity Plan. The number of shares of common stock reserved for issuance under the 2017 Equity Plan was 2,104,889 at March 31, 2021. Stock options In June 2019, the Company granted 495,366 non-statutory stock options to certain officers of the Company with an option price of $38.10 per share. 100% of the stock options are subject to vesting on the first trading day after the date on which the average closing price of the Company’s common stock has been at least $75 for 40 consecutive trading days so long as this goal has been attained by June 5, 2024 or the options will terminate. These options were valued using a Monte Carlo simulation model to account for the path dependent market conditions that stipulate when and whether or not the options shall vest. The 495,366 stock options were modified in fiscal 2021 to extend the term of the options through June 5, 2024. This resulted in additional compensation of approximately $874,000, of which, $315,000 was recorded upon modification and the remaining expense was recognized over the remaining expected term. A summary of the status of our stock options as of May 2, 2021 and May 3, 2020, and the changes during the thirteen weeks ended May 2, 2021 and May 3, 2020 are presented below: Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at February 2, 2020 495,366 $ 38.10 2.34 - Exercised - Expired and canceled - Vested - Outstanding at May 3, 2020 495,366 $ 38.10 2.09 - Exercisable at the end of the period - - - - Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 31, 2021 495,366 $ 38.10 3.35 - Exercised - Expired and canceled - Vested - Outstanding at May 2, 2021 495,366 $ 38.10 3.10 22.87 Exercisable at the end of the period - - - - Restricted stock units A summary of the status of our unvested restricted stock units as of May 2, 2021 and May 3, 2020, and changes during the thirteen weeks then ended, is presented below: Number of shares Weighted average grant date fair value Unvested at February 2, 2020 183,053 $ 21.34 Granted 93,290 6.77 Forfeited (265 ) 14.83 Vested (50,319 ) 6.47 Unvested at May 3, 2020 225,759 $ 18.65 Number of shares Weighted average grant date fair value Unvested at January 31, 2021 655,558 $ 18.86 Granted 6,000 53.82 Forfeited (4,638 ) 16.64 Vested (4,868 ) 8.86 Unvested at May 2, 2021 652,052 $ 19.27 Equity based compensation expense was approximately $0.7 and $0.9 million for the thirteen weeks ended May 2, 2021 and May 3, 2020, respectively. The total unrecognized equity-based compensation cost related to unvested stock option and restricted stock awards was $4,512,543 as of May 2, 2021 and will be recognized in operations over a weighted average period of 2.25 years. |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
May 02, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | NOTE 9 - EMPLOYEE BENEFIT PLAN In February 2017, the Company established the TLC 401(k) Plan (the “401(k) Plan”) with Elective Deferrals beginning May 1, 2017. The 401(k) Plan calls for Elective Deferral Contributions, Safe Harbor Matching Contributions and Profit-Sharing Contributions. All associates of the Company will be eligible to participate in the 401(k) Plan as of the day of the month which is coincident with or next follows the date on which they attain age 21 and complete one month of service. Participants will be able to contribute up to 100% of their eligible compensation to the 401(k) Plan subject to limitations with the IRS. The employer contributions to the 401(k) Plan were $155,682 and $117,280 for the thirteen weeks ended May 2, 2021 and May 3, 2020 respectively. |
Segment Information
Segment Information | 3 Months Ended |
May 02, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 10 - SEGMENT INFORMATION The Company operates within a single reporting segment. The chief operating decision makers of the Company are the Chief Executive Officer and the President and Chief Operating Officer. The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas including economic characteristics, class of consumer, nature of products and distribution method and products are a singular group of products which make up over 95% of net sales. Thirteen weeks ended May 2, May 3, Sactionals $ 74,010,529 $ 43,807,567 Sacs 7,140,873 9,657,072 Other 1,764,017 907,768 $ 82,915,419 $ 54,372,407 |
Barter Arrangements
Barter Arrangements | 3 Months Ended |
May 02, 2021 | |
Barter Arrangements [Abstract] | |
BARTER ARRANGEMENTS | NOTE 11 - BARTER ARRANGEMENTS The Company has a bartering arrangement with Icon International, Inc. (“Icon”), a vendor, whereby the Company will provide inventory in exchange for media credits During fiscal 2021, the Company exchanged $3,169,825 of inventory plus the cost of freight for certain media credits. To account for the exchange, the Company recorded the transfer of the inventory asset as a reduction of inventory and an increase to a prepaid media asset account of $2,937,035 which is included in “Prepaid and other current assets” on the accompanying condensed consolidated balance sheet. During the first quarter of fiscal 2022, the Company used $544,323 in media credits. There were no additional barter arrangements entered into in the thirteen weeks ended May 2, 2021. The Company had $1,976,948 and $2,521,271 of unused media credits remaining as of May 2, 2021 and January 31, 2021, respectively. The Company accounts for barter transactions under ASC Topic No. 845 “Nonmonetary Transactions.” Barter transactions with commercial substance are recorded at the estimated fair value of the products exchanged, unless the products received have a more readily determinable estimated fair value. Revenue associated with barter transactions is recorded at the time of the exchange of the related assets. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
May 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 12 - REVENUE RECOGNITION The Company’s revenue consists substantially of product sales. The Company reports product sales net of discounts and recognizes them at the point in time when control transfers to the customer, which occurs upon shipment is confirmed. Estimated refunds for returns and allowances are recorded using our historical return patterns, adjusting for any changes in returns policies. The Company records estimated refunds for net sales returns on a monthly basis as a reduction of net sales and cost of sales on the condensed consolidated statement of operations and an increase in inventory and customers returns liability on the condensed consolidated balance sheets. As of May 2, 2021, and January 31, 2021 there was a returns allowance recorded on the condensed consolidated balance sheet in the amount $1,109,023 and $2,226,723 respectively, which was included in accrued expenses and $219,405 and $334,896, respectively, associated with sales returns included in merchandise inventories. In some cases, deposits are received before the Company transfers control, resulting in contract liabilities. These contract liabilities are reported as deposits on the Company’s condensed consolidated balance sheet. As of May 2, 2021, and January 31, 2021, the Company recorded under customer deposit liabilities the amount of $7,843,326 and $5,992,633 respectively. During the thirteen weeks ended May 2, 2021 and May 3, 2020, the Company recognized approximately $5,992,633 and $1,653,597, respectively, related to our customer deposits. Under ASC 606, the Company has elected the following accounting policies and practical expedients: The Company recognizes shipping and handling expense as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. Accordingly, the Company records the expenses for shipping and handling activities at the same time the Company recognizes revenue. The Company excludes from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). The Company does not adjust revenue for the effects of any financing components if the contract has a duration of one year or less, as the Company receives payment from the customer within one year from when it transferred control of the related goods. The Company offers its products through an inventory lean omni-channel platform that provides a seamless and meaningful experience to its customers in showrooms and through the internet. The other channel predominantly represents sales through the use of pop-up-shops that typically average ten days at a time and are staffed with associates trained to demonstrate and sell our product. The following represents sales disaggregated by channel: Thirteen weeks ended May 2, May 3, Showrooms $ 48,985,875 $ 18,118,141 Internet 25,175,029 30,064,037 Other 8,754,515 6,190,229 $ 82,915,419 $ 54,372,407 The Company has no foreign operations and its sales to foreign countries was less than .01% of total net sales in both fiscal 2022 and 2021. The Company had no customers in fiscal 2022 or 2021 that comprise more than 10% of total net sales. See Note 10 for sales disaggregated by product . |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
May 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | May 2, 2021 Estimated Gross Carrying Amount Accumulated Amortization Net carrying Patents 10 Years $ 2,495,408 $ (1,483,452 ) $ 1,011,956 Trademarks 3 Years 1,270,111 (1,089,499 ) 180,612 Other intangibles 5 Years 839,737 (839,737 ) - Total $ 4,605,256 $ (3,412,688 ) $ 1,192,56 8 January 31, 2021 Estimated Gross Carrying Amount Accumulated Amortization Net carrying Patents 10 Years $ 2,387,328 $ (1,128,997 ) $ 1,258,331 Trademarks 3 Years 1,239,334 (980,633 ) 258,701 Other intangibles 5 Years 839,737 (839,737 ) - Total $ 4,466,399 $ (2,949,367 ) $ 1,517, 032 |
Schedule of estimated future amortization expense associated with intangible assets | Remainder of Fiscal 2022 $ 206,758 2023 165,401 2024 147,995 2025 121,669 2026 119,449 2027 117,796 Thereafter 313,500 $ 1,192, 568 |
Commitments, Contingencies an_2
Commitments, Contingencies and Related Parties (Tables) | 3 Months Ended |
May 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease terms and rates | May 2, Weighted average remaining lease term (in years) Operating Leases 7.1 Weighted average discount rate Operating Leases 3.70 % |
Schedule of amount of expense within condensed consolidated statements of operations | Thirteen weeks ended Operating Lease Cost $ 3,546 Short term lease cost 167 Additional lease cost (1) 2,087 Total Lease Expense $ 5,800 (1) Additional lease payments include index-based changes in rent, maintenance, real estate taxes, insurance and other charges included in the lease |
Schedule of location and amount of operating lease costs within condensed consolidated balance sheets | Balance sheet location May 2, Assets Operating leases Operating lease right-of-use assets (non-current) $ 90,745,429 Liabilities Current: Operating leases Current operating lease liabilities 14,287,019 Noncurrent: Operating leases Operating lease liability, long term 84,732,550 Total lease liabilities $ 99,019,569 |
Schedule of reconciles undiscounted future minimum lease payments | Remainder 2022 $ 11,395,157 2023 17,121,688 2024 16,836,144 2025 15,654,092 2026 13,969,500 Thereafter 38,086,783 Total undiscounted future minimum lease payments 113,063,364 Less: imputed interest (14,043,795 ) Total present value of lease obligations 99,019,569 Less: current operating lease liability (14,287,019 ) Operating lease liability- long term $ 84,732,550 |
Schedule of supplemental cash flow information and non-cash activity related to operating leases | For the thirteen Operating cash flow information: Amounts paid on operating lease liabilities $ 4,070 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 4,743 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
May 02, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant activity | Average exercise price Number of warrants Weighted average remaining contractual life (in years) Warrants Outstanding at February 2, 2020 $ 16.83 1,039,120 1.93 Warrants issued - - - Expired and canceled - - - Exercised - - - Outstanding at May 3, 2020 $ 16.83 1,039,120 1.68 Warrants Outstanding at January 31, 2021 $ 19.07 293,973 2.57 Warrants issued - - - Expired and canceled - - - Exercised 16.00 (2,375 ) 0.16 Outstanding at May 2, 2021 $ 19.11 291,598 2.09 |
Schedule of stock option activity | Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at February 2, 2020 495,366 $ 38.10 2.34 - Exercised - Expired and canceled - Vested - Outstanding at May 3, 2020 495,366 $ 38.10 2.09 - Exercisable at the end of the period - - - - Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 31, 2021 495,366 $ 38.10 3.35 - Exercised - Expired and canceled - Vested - Outstanding at May 2, 2021 495,366 $ 38.10 3.10 22.87 Exercisable at the end of the period - - - - |
Schedule of unvested restricted stock | Number of shares Weighted average grant date fair value Unvested at February 2, 2020 183,053 $ 21.34 Granted 93,290 6.77 Forfeited (265 ) 14.83 Vested (50,319 ) 6.47 Unvested at May 3, 2020 225,759 $ 18.65 Number of shares Weighted average grant date fair value Unvested at January 31, 2021 655,558 $ 18.86 Granted 6,000 53.82 Forfeited (4,638 ) 16.64 Vested (4,868 ) 8.86 Unvested at May 2, 2021 652,052 $ 19.27 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
May 02, 2021 | |
Segment Reporting [Abstract] | |
Schedule of operating segments | Thirteen weeks ended May 2, May 3, Sactionals $ 74,010,529 $ 43,807,567 Sacs 7,140,873 9,657,072 Other 1,764,017 907,768 $ 82,915,419 $ 54,372,407 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
May 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of sales disaggregated by channel | Thirteen weeks ended May 2, May 3, Showrooms $ 48,985,875 $ 18,118,141 Internet 25,175,029 30,064,037 Other 8,754,515 6,190,229 $ 82,915,419 $ 54,372,407 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) $ in Millions | Feb. 01, 2021USD ($) |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Operating lease rights-to-use assets | $ 90 |
Operating lease liabilities | 97 |
Deferred rent | $ 6.7 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on other intangible assets | $ 463,321 | $ 78,371 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets - USD ($) | 12 Months Ended | |
Jan. 31, 2021 | May 02, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,466,399 | $ 4,605,256 |
Accumulated Amortization | (2,949,367) | (3,412,688) |
Net carrying amount | $ 1,517,032 | 1,192,568 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 10 years | |
Gross Carrying Amount | $ 2,387,328 | 2,495,408 |
Accumulated Amortization | (1,128,997) | (1,483,452) |
Net carrying amount | $ 1,258,331 | 1,011,956 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 3 years | |
Gross Carrying Amount | $ 1,239,334 | 1,270,111 |
Accumulated Amortization | (980,633) | (1,089,499) |
Net carrying amount | $ 258,701 | 180,612 |
Other intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 5 years | |
Gross Carrying Amount | $ 839,737 | 839,737 |
Accumulated Amortization | (839,737) | (839,737) |
Net carrying amount |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated future amortization expense associated with intangible assets | May 31, 2021USD ($) |
Schedule of estimated future amortization expense associated with intangible assets [Abstract] | |
Remainder of Fiscal 2022 | $ 206,758 |
2023 | 165,401 |
2024 | 147,995 |
2025 | 121,669 |
2026 | 119,449 |
2027 | 117,796 |
Thereafter | 313,500 |
Total | $ 1,192,568 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Common Share (Details) - shares | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Basic and Diluted Net Income (Loss) Per Common Share (Details) [Line Items] | ||
Potentially dilutive shares | 1,760,245 | |
Restricted stock units [Member] | ||
Basic and Diluted Net Income (Loss) Per Common Share (Details) [Line Items] | ||
Potentially dilutive shares | 652,052 | 225,759 |
Stock options [Member] | ||
Basic and Diluted Net Income (Loss) Per Common Share (Details) [Line Items] | ||
Potentially dilutive shares | 495,366 | 495,366 |
Warrants [Member] | ||
Basic and Diluted Net Income (Loss) Per Common Share (Details) [Line Items] | ||
Potentially dilutive shares | 291,598 | 1,039,120 |
Commitments, Contingencies an_3
Commitments, Contingencies and Related Parties (Details) - USD ($) | 3 Months Ended | ||
May 02, 2021 | May 03, 2020 | Jan. 31, 2021 | |
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Monthly payments | $ 4,070 | ||
Severance contingency, description | A number of these agreements have severance provisions, ranging from 12 to 18 months of salary, in the event those associates are terminated without cause. The total amount of exposure to the Company under these agreements was $4,493,468 at May 2, 2021 if all executives with employment agreements were terminated without cause and the full amount of severance was payable. | ||
Accrued liabilities | $ 15,213 | $ 15,213 | |
Out of pocket expenses | $ 36,401 | ||
Minimum [Member] | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Monthly payments | 2,500 | ||
Maximum [Member] | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Monthly payments | $ 45,600 | ||
Satori Capital, LLC [Member] | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Management fees | 25,000 | ||
Blueport Commerce [Member] | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Expenses incurred amount | 482,848 | ||
Mistral Capital Management, LLC [Member] | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Management fees | $ 100,000 | ||
Satori Capital, LLC [Member] | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Amounts payable to related parties | $ 8,333 |
Commitments, Contingencies an_4
Commitments, Contingencies and Related Parties (Details) - Schedule of lease terms and rates | May 02, 2021 |
Weighted average remaining lease term (in years) | |
Operating Leases, Weighted average remaining lease term (in years) | 7 years 1 month 6 days |
Weighted average discount rate | |
Operating Leases, Weighted average discount rate | 3.70% |
Commitments, Contingencies an_5
Commitments, Contingencies and Related Parties (Details) - Schedule of amount of expense within condensed consolidated statements of operations | 3 Months Ended | |
May 02, 2021USD ($) | ||
Schedule of amount of expense within condensed consolidated statements of operations [Abstract] | ||
Operating Lease Cost | $ 3,546 | |
Short term lease cost | 167 | |
Additional lease cost | 2,087 | [1] |
Total Lease Expense | $ 5,800 | |
[1] | Additional lease payments include index-based changes in rent, maintenance, real estate taxes, insurance and other charges included in the lease |
Commitments, Contingencies an_6
Commitments, Contingencies and Related Parties (Details) - Schedule of location and amount of operating lease costs within condensed consolidated balance sheets - USD ($) | May 02, 2021 | Jan. 31, 2021 |
Assets | ||
Operating leases, Operating lease right-of-use assets (non-current) | $ 90,745,429 | |
Current: | ||
Operating leases, Current operating lease liabilities | 14,287,019 | |
Noncurrent: | ||
Operating leases, Operating lease liability, long term | 84,732,550 | |
Total lease liabilities | $ 99,019,569 |
Commitments, Contingencies an_7
Commitments, Contingencies and Related Parties (Details) - Schedule of reconciles undiscounted future minimum lease payments | May 02, 2021USD ($) |
Schedule of reconciles undiscounted future minimum lease payments [Abstract] | |
Remainder 2022 | $ 11,395,157 |
2023 | 17,121,688 |
2024 | 16,836,144 |
2025 | 15,654,092 |
2026 | 13,969,500 |
Thereafter | 38,086,783 |
Total undiscounted future minimum lease payments | 113,063,364 |
Less: imputed interest | (14,043,795) |
Total present value of lease obligations | 99,019,569 |
Less: current operating lease liability | (14,287,019) |
Operating lease liability- long term | $ 84,732,550 |
Commitments, Contingencies an_8
Commitments, Contingencies and Related Parties (Details) - Schedule of supplemental cash flow information and non-cash activity related to operating leases | 3 Months Ended |
May 02, 2021USD ($) | |
Operating cash flow information: | |
Amounts paid on operating lease liabilities | $ 4,070 |
Non-cash activities | |
Right-of-use assets obtained in exchange for lease obligations | $ 4,743 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) | 3 Months Ended | |
May 02, 2021 | Jan. 31, 2021 | |
Financing Arrangements (Details) [Line Items] | ||
Borrowings (in Dollars) | $ 41,673 | |
Mature date | 2023-02 | |
Eligible credit card receivables percentage | 90.00% | |
Eligible wholesale receivables percentage | 85.00% | |
Net recovery percentage | 85.00% | |
Increase in the net recovery percentage | 90.00% | |
Borrowing availability under the line of credit (in Dollars) | $ 18,100,000 | $ 15,900,000 |
Minimum [Member] | ||
Financing Arrangements (Details) [Line Items] | ||
Tiers range percentage | 2.00% | |
Maximum [Member] | ||
Financing Arrangements (Details) [Line Items] | ||
Tiers range percentage | 2.25% | |
Wells [Member] | ||
Financing Arrangements (Details) [Line Items] | ||
Borrowings (in Dollars) | $ 25,000,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2019 | May 02, 2021 | May 03, 2020 | Mar. 31, 2021 | |
Stockholders' Equity (Details) [Line Items] | ||||
Cashless warrant exercised (in Shares) | 1,125 | |||
Stock options are subject to vesting percentage | 100.00% | |||
Stock price | $ 75 | |||
Stock option modified (in Shares) | 495,366 | |||
Additional compensation | $ 874,000 | |||
Modification and remaining expense was recognized | $ 315,000 | |||
2017 Equity Incentive Plan [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Granted term | 10 years | |||
Common stock reserved issuance (in Shares) | 2,104,889 | |||
Non statutory stock options granted (in Shares) | 495,366 | |||
Stock option price exercise (in Dollars per share) | $ 38.10 | |||
Equity based compensation expense | $ 700,000 | $ 900,000 | ||
Total unrecognized equity based compensation cost related to unvested stock option and restricted unit awards | $ 4,512,543 | |||
Weighted average period | 2 years 3 months | |||
Warrant [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Issuance of common shares (in Shares) | 2,106 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of warrant activity - Warrants Activity [Member] - $ / shares | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Class of Warrant or Right [Line Items] | ||
Average exercise price, Warrants Outstanding, Beginning balance (in Dollars per share) | $ 19.07 | $ 16.83 |
Number of warrants, Warrants Outstanding, Beginning balance | 293,973 | 1,039,120 |
Weighted average remaining contractual life (in years), Warrants Outstanding, Beginning balance | 2 years 6 months 25 days | 1 year 11 months 4 days |
Average exercise price, Warrants issued (in Dollars per share) | ||
Number of warrants, Warrants issued | ||
Weighted average remaining contractual life (in years), Warrants issued | ||
Average exercise price, Expired and canceled (in Dollars per share) | ||
Number of warrants, Expired and canceled | ||
Weighted average remaining contractual life (in years), Expired and canceled | ||
Average exercise price, Exercised | 16 | |
Number of warrants, Exercised | (2,375) | |
Weighted average remaining contractual life (in years), Exercised | 1 month 28 days | |
Average exercise price, Warrants Outstanding, Ending balance (in Dollars per share) | $ 19.11 | $ 16.83 |
Number of warrants, Warrants Outstanding, Ending balance | 291,598 | 1,039,120 |
Weighted average remaining contractual life (in years), Warrants Outstanding, Ending balance | 2 years 1 month 2 days | 1 year 8 months 4 days |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of stock option activity - Stock Options [Member] - USD ($) | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Stockholders' Equity (Details) - Schedule of stock option activity [Line Items] | ||
Number of options, Outstanding, Beginning balance | 495,366 | 495,366 |
Weighted average exercise price, Outstanding, Beginning balance (in Dollars per share) | $ 38.10 | $ 38.10 |
Weighted average remaining contractual life (in years), Outstanding, Beginning balance | 3 years 4 months 6 days | 2 years 4 months 2 days |
Number of options, Exercised | ||
Weighted average exercise price, Exercised (in Dollars per share) | ||
Number of options, Expired and canceled | ||
Weighted average exercise price, Expired and canceled (in Dollars per share) | ||
Number of options, Vested | ||
Weighted average exercise price, Vested (in Dollars per share) | ||
Number of options, Outstanding, Ending balance | 495,366 | 495,366 |
Weighted average exercise price, Outstanding, Ending balance (in Dollars per share) | $ 38.10 | $ 38.10 |
Weighted average remaining contractual life (in years), Outstanding, Ending balance | 3 years 1 month 6 days | 2 years 1 month 2 days |
Average intrinsic value, Outstanding, Ending balance (in Dollars) | $ 22.87 | |
Number of options, Exercisable at the end of the period | ||
Weighted average exercise price, Exercisable at the end of the period | ||
Weighted average remaining contractual life (in years), Exercisable at the end of the period | ||
Average intrinsic value, Exercisable at the end of the period |
Stockholders' Equity (Details_3
Stockholders' Equity (Details) - Schedule of unvested restricted stock - Restricted stock [Member] - $ / shares | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Stockholders' Equity (Details) - Schedule of unvested restricted stock [Line Items] | ||
Number of shares, Unvested, Beginning balance | 655,558 | 183,053 |
Weighted average grant date fair value, Unvested, Beginning balance | $ 18.86 | $ 21.34 |
Number of shares, Granted | 6,000 | 93,290 |
Weighted average grant date fair value, Granted | $ 53.82 | $ 6.77 |
Number of shares, Forfeited | (4,638) | (265) |
Weighted average grant date fair value, Forfeited | $ 16.64 | $ 14.83 |
Number of shares, Vested | (4,868) | (50,319) |
Weighted average grant date fair value, Vested | $ 8.86 | $ 6.47 |
Number of shares, Unvested, Ending balance | 652,052 | 225,759 |
Weighted average grant date fair value, Unvested, Ending balance | $ 19.27 | $ 18.65 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Retirement Benefits [Abstract] | ||
Contributions plan, percentage | 100.00% | |
Employer contribution plan, cost | $ 155,682 | $ 117,280 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended |
May 02, 2021 | |
Segment Reporting [Abstract] | |
Operating segments, description | The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas including economic characteristics, class of consumer, nature of products and distribution method and products are a singular group of products which make up over 95% of net sales. |
Segment Information (Details) -
Segment Information (Details) - Schedule of operating segments - USD ($) | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 82,915,419 | $ 54,372,407 |
Sactionals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 74,010,529 | 43,807,567 |
Sacs [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 7,140,873 | 9,657,072 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,764,017 | $ 907,768 |
Barter Arrangements (Details)
Barter Arrangements (Details) - USD ($) | May 02, 2021 | Jan. 31, 2021 |
Barter Arrangements [Abstract] | ||
Inventory | $ 544,323 | $ 3,169,825 |
Prepaid media asset | 2,937,035 | |
Unused media credits | $ 1,976,948 | $ 2,521,271 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | ||
May 02, 2021 | May 03, 2020 | Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Returns allowance | $ 1,109,023 | $ 2,226,723 | |
Accrued expenses | 219,405 | $ 334,896 | |
Customer deposit liabilities | 7,843,326 | $ 5,992,633 | |
Recognized related to customer deposits | $ 5,992,633 | $ 1,653,597 | |
Contract duration, description | The Company does not adjust revenue for the effects of any financing components if the contract has a duration of one year or less, as the Company receives payment from the customer within one year from when it transferred control of the related goods. | ||
Foreign operations, description | The Company has no foreign operations and its sales to foreign countries was less than .01% of total net sales in both fiscal 2022 and 2021. | ||
net sales, description | The Company had no customers in fiscal 2022 or 2021 that comprise more than 10% of total net sales. |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of sales disaggregated by channel - USD ($) | 3 Months Ended | |
May 02, 2021 | May 03, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 82,915,419 | $ 54,372,407 |
Showrooms [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 48,985,875 | 18,118,141 |
Internet [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 25,175,029 | 30,064,037 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 8,754,515 | $ 6,190,229 |