What changed in this filing

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Item 1. Financial Statements

2021-09-30 compared with 2021-07-01 · 118 added, 94 removed, 655 unchanged (24% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED MAY 29, 2021 AND MAY 30, 2020 –

FOR THE PERIODS ENDED AUGUST 28, 2021 AND AUGUST 29, 2020 –

(In thousands)

Six Months Ended

Nine Months Ended

August 28, 2021

August 29, 2020

Operating activities:

Net income (loss)

$ 9,985  

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

2 unchanged sentences

Asset impairment charges

12,184  

Goodwill impairment charge

1 unchanged sentence

Bad debt valuation charges (recoveries)

( 43 )  

Deferred income taxes

1 unchanged sentence

Accounts receivable

( 3,399 )  

( 13,515 )  

Other current assets

Right of use assets under operating leases

12,558  

14,810  

Customer deposits

1 unchanged sentence

Obligations under operating leases

( 13,934 )  

Net cash provided by (used in) operating activities

12,050  

Net cash provided by operating activities

Investing activities:

Purchases of property and equipment

( 3,483 )  

Proceeds from sales of property and equipment

Purchases of investments

( 335 )  

Net cash provided by (used in) investing activities

( 3,722 )  

Proceeds from maturities of investments

Net cash used in investing activities

Financing activities:

Cash dividends

( 4,954 )  

Proceeds from the exercise of stock options

1 unchanged sentence

Repurchases of common stock

( 2,925 )  

Taxes paid related to net share settlement of equity awards

( 219 )  

Repayments of finance lease obligations

( 467 )  

Net cash used in financing activities

( 8,351 )  

Change in cash and cash equivalents

( 23 )  

Cash and cash equivalents - beginning of period

45,799  

19,687  

Cash and cash equivalents - end of period

$ 45,776  

$ 11,435  

The accompanying notes to condensed consolidated financial statements are an integral part of the condensed consolidated financial statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

34 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

In response to the restrictive measures imposed by governmental authorities and for the protection of our employees and customers, we temporarily closed our dedicated stores, our manufacturing locations and many of our warehouses for much of the second fiscal quarter of 2020.

This extended period of suspended operations had a material adverse impact upon our results of operations during the second fiscal quarter of 2020 and resulted in a significant net loss for the three and six months ended May 30, 2020.

In addition to operating losses resulting from severely reduced sales volumes, we also recorded charges for goodwill impairment (Note 6 ) as well as for the impairment of certain other long-lived assets (Note 10 ).

However, since restarting our manufacturing operations and reopening stores, we have seen a significant improvement in business conditions which allowed us to return to overall profitability for the third and fourth fiscal quarters of 2020 continuing through the first half of fiscal 2021.

Tempering these improvements are the continuing logistical challenges faced by the entire home furnishings industry resulting from COVID-related labor shortages and supply chain disruptions creating significant delays in order fulfillment and increasing backlogs.

Whereas the progress in mass vaccination programs in the U.S.

has prompted state and local governments to substantially lift most remaining restrictions on commercial retail activity, it is nevertheless possible that a resurgence in COVID- 19 cases due to new variants of the coronavirus entering the U.S.

has prompted state and local governments to substantially lift most remaining restrictions on commercial retail activity, the recent resurgence in COVID- 19 cases due to the Delta variant, as well as any future variants of the coronavirus entering the U.S.

could prompt a return to tighter restrictions in certain areas of the country.

Furthermore, pandemic-related labor shortages and supply chain disruptions remain unresolved and order cancellations could result if the present delays in order fulfillment continue for an extended period of time.

Therefore, uncertainty remains regarding the ongoing impact of the COVID- 19 outbreak upon our financial condition and future results of operations, as well as upon the significant estimates and assumptions we utilize in reporting certain assets and liabilities.

Furthermore, pandemic-related labor shortages and supply chain disruptions are ongoing and order cancellations could result if the present delays in order fulfillment continue.

Therefore, uncertainty remains regarding the ongoing impact of the COVID- 19 pandemic upon our financial condition and future results of operations, as well as upon the significant estimates and assumptions we utilize in reporting certain assets and liabilities.

Interim Financial Presentation

All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements.

The results of operations for the three and six months ended May 29, 2021 are not necessarily indicative of results for the full fiscal year.

The results of operations for the three and nine months ended August 28, 2021 are not necessarily indicative of results for the full fiscal year.

These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10 -K for the year ended November 28, 2020.

1 unchanged sentence

Any change in annual projections of pretax income could have a significant impact on our effective tax rate for the respective quarter.

Our effective tax rates for the three and six months ended May 29, 2021 of 25.8 % and 27.3 %, respectively, differ from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences, including tax benefits (deficiencies) of $ 18 and ($ 117 ) during the three and six months ended May 29, 2021, respectively, arising from stock-based compensation.

Our effective tax rates for the three and nine months ended August 28, 2021 of 27.2 % and 27.3 %, respectively, differ from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences, including tax deficiencies of $ 117 during the nine months ended August 28, 2021, respectively, arising from stock-based compensation.

On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law.

A major provision of the CARES Act allowed net operating losses from the 2018, 2019 and 2020 tax years to be carried back up to five years.

As a result, our effective tax rates for the three and six months ended May 30, 2020 were ( 36.4 %) and ( 36.5 %), respectively, which differ from the federal statutory rate of 21 % primarily due to the effects of carrying back our net operating loss from fiscal 2020 to tax years in which the federal statutory rate was 35 %, and to the effects of state income taxes and various permanent differences.

As a result, our effective tax rates for the three and nine months ended August 29, 2020 were 36.8 % and ( 36.5 %), respectively, which differ from the federal statutory rate of 21 % primarily due to the effects of carrying back our net operating loss from fiscal 2020 to tax years in which the federal statutory rate was 35%, and to the effects of state income taxes and various permanent differences.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

3 unchanged sentences

Because of their short maturities, the carrying amounts of cash and cash equivalents, short-term investments in CDs, accounts receivable, and accounts payable approximate fair value.

Our short-term investments of $ 17,715 at May 29, 2021 and November 28, 2020 consisted of CDs.

At May 29, 2021, the CDs had original terms averaging eight months, bearing interest at rates ranging from 0.01 % to 0.85 %.

At May 29, 2021, the weighted average remaining time to maturity of the CDs was approximately four months and the weighted average yield of the CDs was approximately 0.07 %.

Our short-term investments of $ 17,715 at August 28, 2021 and November 28, 2020 consisted of CDs.

At August 28, 2021, the CDs had original terms averaging eight months, bearing interest at rates ranging from 0.01 % to 0.85 %.

At August 28, 2021, the weighted average remaining time to maturity of the CDs was approximately five months and the weighted average yield of the CDs was approximately 0.05%.

Each CD is placed with a federally insured financial institution and all deposits are within federal deposit insurance limits.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at May 29, 2021 and November 28, 2020 approximates their fair value.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at August 28, 2021 and November 28, 2020 approximates their fair value.

Fair Value Measurement

16 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

1 unchanged sentence

Accounts receivable consists of the following:

August 28, 2021

November 28, 2020

Gross accounts receivable

10 unchanged sentences

Actual credit losses could differ from those estimates.

Activity in the allowance for doubtful accounts for the six months ended May 29, 2021 was as follows:

Activity in the allowance for doubtful accounts for the nine months ended August 28, 2021 was as follows:

Balance at November 28, 2020

1 unchanged sentence

Reductions to allowance

Balance at May 29, 2021

Balance at August 28, 2021

$ 1,105  

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

41 unchanged sentences

( 684 )  

Balance at May 29, 2021

Balance at August 28, 2021

$ 3,279  

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

1 unchanged sentence

Goodwill and other intangible assets consisted of the following:

August 28, 2021

Intangibles subject to amortization

27 unchanged sentences

$ 23,827  

The carrying amounts of goodwill by reportable segment at both May 29, 2021 and November 28, 2020 are as follows:

The carrying amounts of goodwill by reportable segment at both August 28, 2021 and November 28, 2020 are as follows:

$ 9,188  

9 unchanged sentences

As a result of this test, we concluded that the carrying value of our wood reporting unit exceeded its fair value by an amount in excess of the goodwill previously allocated to the reporting unit.

Therefore, we recognized a goodwill impairment charge of $ 1,971 for the three and six months ended May 30, 2020.

Therefore, we recognized a goodwill impairment charge of $ 1,971 for the nine months ended August 29, 2020.

Our annual goodwill impairment test, conducted as of the beginning of our fourth quarter of fiscal 2020, resulted in no additional impairment.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

Amortization expense associated with intangible assets during the three and six months ended May 29, 2021 and May 30, 2020 was as follows:

Amortization expense associated with intangible assets during the three and nine months ended August 28, 2021 and August 29, 2020 was as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

Intangible asset amortization expense

Estimated future amortization expense for intangible assets that exist at May 29, 2021 is as follows:

Estimated future amortization expense for intangible assets that exist at August 28, 2021 is as follows:

Remainder of fiscal 2021

2 unchanged sentences

Our bank credit facility provides for a line of credit of up to $ 25,000 .

At May 29, 2021, we had $ 3,181 outstanding under standby letters of credit against our line, leaving availability under our credit line of $ 21,819 .

At August 28, 2021, we had $ 3,931 outstanding under standby letters of credit against our line, leaving availability under our credit line of $ 21,069 .

In addition, we have outstanding standby letters of credit with another bank totaling $ 325 .

The line bears interest at the rate of LIBOR plus 1.9 %, with a fee of 0.25 % charged for the unused portion of the line and is secured by a general lien on our accounts receivable and inventory.

We were in compliance with all covenants under the agreement as of May 29, 2021 and expect to remain in compliance through the end of fiscal 2021.

We were in compliance with all covenants under the agreement as of August 28, 2021 and expect to remain in compliance through the end of fiscal 2021.

The credit facility matures on January 31, 2022.

2 unchanged sentences

We have an unfunded Supplemental Retirement Income Plan (the “Supplemental Plan”) that covers one current and certain former executives.

The liability for the Supplemental Plan was $ 8,485 and $ 8,565 as of May 29, 2021 and November 28, 2020, respectively.

The liability for the Supplemental Plan was $ 8,444 and $ 8,565 as of August 28, 2021 and November 28, 2020, respectively.

We also have the Bassett Furniture Industries, Incorporated Management Savings Plan (the “Management Savings Plan”) which was established in the second quarter of fiscal 2017.

1 unchanged sentence

As part of the Management Savings Plan, we have made Long Term Cash Awards (“LTC Awards”) totaling $ 2,000 to certain management employees in the amount of $ 400 each.

The liability for the LTC Awards was $ 1,520 and $ 1,506 as of May 29, 2021 and November 28, 2020, respectively.

The liability for the LTC Awards was $ 1,547 and $ 1,506 as of August 28, 2021 and November 28, 2020, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

5 unchanged sentences

$ 10,071  

Components of net periodic pension costs for our defined benefit plans for the three and six months ended May 29, 2021 and May 30, 2020 are as follows:

Components of net periodic pension costs for our defined benefit plans for the three and nine months ended August 28, 2021 and August 29, 2020 are as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

Interest cost

6 unchanged sentences

This plan has been frozen with no additional participants or deferrals permitted.

Our liability under this plan was $ 1,658 and $ 1,677 as of May 29, 2021 and November 28, 2020, respectively.

Our liability under this plan was $ 1,652 and $ 1,677 as of August 28, 2021 and November 28, 2020, respectively.

We also have an unfunded, nonqualified deferred compensation plan maintained for the benefit of certain highly compensated or management level employees which was established under the Management Savings Plan.

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 1,644 and $ 1,250 as of May 29, 2021 and November 28, 2020, respectively.

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 1,720 and $ 1,250 as of August 28, 2021 and November 28, 2020, respectively.

Our combined liability for all deferred compensation arrangements, including Company contributions and participant deferrals under the Management Savings Plan, is recorded as follows in the condensed consolidated balance sheets:

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

We recognized expense under our deferred compensation arrangements during the three and six months ended May 29, 2021 and May 30, 2020 as follows:

We recognized expense under our deferred compensation arrangements during the three and nine months ended August 28, 2021 and August 29, 2020 as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

Deferred compensation expense

11 unchanged sentences

The full terms of the 2021 Plan have been filed as an exhibit to our Schedule 14A filed with the United States Securities and Exchange Commission on February 8, 2021.

During the second quarter of fiscal 2021, 7,105 restricted shares with an aggregate fair value of $ 175 were granted to our non-employee directors under the 2021 Plan.

During the nine months ended August 28, 2021, 7,105 restricted shares with an aggregate fair value of $ 175 were granted to our non-employee directors under the 2021 Plan.

These shares will fully vest on the first anniversary of the grant.

The Bassett Furniture Industries, Incorporated 2010 Stock Incentive Plan, which was approved on April 14, 2010 and amended and restated effective January 13, 2016 ( the “2010 Plan”), expired in April of 2020 and no additional grants can be awarded under the plan.

During the six months ended May 29, 2021, 31,000 restricted shares previously granted under the 2010 Plan were vested and released, of which 10,850 shares were withheld to cover withholding taxes of $ 219 .

At May 29, 2021, there were 3,500 unvested restricted shares outstanding that were granted under the 2010 Plan and will vest during the fourth quarter of fiscal 2022.

During the three and six months ended May 29, 2021, 5,250 stock options granted under the 2010 Plan were exercised resulting in proceeds to the Company of $ 42 .

At May 29, 2021, there were no additional stock options outstanding under the 2010 Plan.

Stock compensation expense for the three and six months ended May 29, 2021 and May 30, 2020 was as follows:

During the nine months ended August 28, 2021, 31,000 restricted shares previously granted under the 2010 Plan were vested and released, of which 10,850 shares were withheld to cover withholding taxes of $ 219 .

At August 28, 2021, there were 3,500 unvested restricted shares outstanding that were granted under the 2010 Plan and will vest during the fourth quarter of fiscal 2022.

During the nine months ended August 28, 2021, 5,250 stock options granted under the 2010 Plan were exercised resulting in proceeds to the Company of $ 42 .

At August 28, 2021, there were no additional stock options outstanding under the 2010 Plan.

Stock compensation expense for the three and nine months ended August 28, 2021 and August 29, 2020 was as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

Stock compensation expense

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

1 unchanged sentence

Asset Impairment Charges

During the three and six months ended May 30, 2020, we recorded $ 11,114 of non-cash impairment charges on the assets of five underperforming retail stores, including $ 6,239 for the impairment of operating lease right-of-use assets associated with the leased locations.

During the nine months ended August 29, 2020, we recorded $ 11,114 of non-cash impairment charges on the assets of five underperforming retail stores, including $ 6,239 for the impairment of operating lease right-of-use assets associated with the leased locations.

Our estimates of the fair value of the impaired right-of-use assets included estimates of discounted cash flows based upon current market rents and other inputs which we consider to be Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurement and Disclosure (see Note 3 ).

During the three and six months ended May 30, 2020, we incurred $ 1,070 of non-cash impairment charges in our wholesale segment, primarily due to the closing of our custom upholstery manufacturing facility in Grand Prairie, Texas, in May 2020.

During the nine months ended August 29, 2020, we incurred $ 1,070 of non-cash impairment charges in our wholesale segment, primarily due to the closing of our custom upholstery manufacturing facility in Grand Prairie, Texas, in May 2020.

Litigation Expense

During the three and six months ended May 30, 2020 we accrued $ 1,050 relating to estimated costs to resolve certain wage and hour violation claims that had been asserted against the Company.

During the nine months ended August 29, 2020 we accrued $ 1,050 relating to estimated costs to resolve certain wage and hour violation claims that had been asserted against the Company.

Gain from Company-Owned Life Insurance

Other income (loss), net for the three and nine months ended August 29, 2020 includes a gain of $ 914 from the recognition of a death benefit from Company-owned life insurance.

Commitments and Contingencies

4 unchanged sentences

Lease guarantees range from one to three years.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 2,073 and $ 1,811 at May 29, 2021 and November 28, 2020, respectively.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 1,959 and $ 1,811 at August 28, 2021 and November 28, 2020, respectively.

In the event of default by an independent dealer under the guaranteed lease, we believe that the risk of loss is mitigated through a combination of options that include, but are not limited to, arranging for a replacement dealer or liquidating the collateral (primarily inventory).

The proceeds of the above options are expected to cover the estimated amount of our future payments under the guarantee obligations, net of recorded reserves.

The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at May 29, 2021 and November 28, 2020 was not material.

The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at August 28, 2021 and November 28, 2020 was not material.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

2 unchanged sentences

Weighted Average

For the quarter ended May 29, 2021:

For the quarter ended August 28, 2021:

Basic earnings per share

8 unchanged sentences

$ 0.31  

For the quarter ended May 30, 2020:

Basic loss per share

For the quarter ended August 29, 2020:

Basic earnings per share

$ 2,178  

9,955,382  

$ 0.22  

Add effect of dilutive securities:

Options and restricted shares

Diluted loss per share

16,263  

Diluted earnings per share

$ 2,178  

For the six months ended May 29, 2021:

9,971,645  

$ 0.22  

For the nine months ended August 28, 2021:

Basic earnings per share

4 unchanged sentences

Options and restricted shares

12,629  

Diluted earnings per share

2 unchanged sentences

$ 1.32  

For the six months ended May 30, 2020:

For the nine months ended August 29, 2020:

Basic loss per share

7 unchanged sentences

* Due to the net loss, potentially dilutive securities would have been anti-dilutive and are therefore excluded.

For the three and six months ended May 29, 2021 and May 30, 2020, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

For the three and nine months ended August 28, 2021 and August 29, 2020, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

Six Months Ended

Nine Months Ended

Stock options

1 unchanged sentence

88,153  

Total anti-dilutive securities

93,403  

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

12 unchanged sentences

Revenue from the performance of these services to other customers and the associated cost is included in logistical services revenue and cost of logistical services, respectively, in our condensed consolidated statements of operations.

Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores and the elimination of Zenith logistics revenue from our wholesale segment.

Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores and the elimination of Zenith logistics revenue from our wholesale retail segment.

Inter-company income elimination includes the embedded wholesale profit in the Company-owned store inventory that has not been realized.

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

1 unchanged sentence

Quarter Ended

Six Months Ended

Nine Months Ended

Sales Revenue

52 unchanged sentences

( 407 )  

Asset impairment charges

( 14 )  

Goodwill impairment charge

( 662 )  

Asset impairment charges

Goodwill impairment charge

Litigation expense

2 unchanged sentences

$ 18,890  

$ 14,400  

Depreciation and Amortization

16 unchanged sentences

Identifiable Assets

August 28, 2021

November 28, 2020

$ 189,763  

12 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

6 unchanged sentences

We typically collect a significant portion of the purchase price from our retail customers as a deposit upon order, with the balance typically collected upon delivery.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 47,911 and $ 39,762 as of May 29, 2021 and November 28, 2020, respectively.

Substantially all of the customer deposits held at November 28, 2020 related to performance obligations that were satisfied during the current year-to-date period and have therefore been recognized in revenue for the six months ended May 29, 2021.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 51,103 and $ 39,762 as of August 28, 2021 and November 28, 2020, respectively.

For our logistical services segment, line-haul freight revenue is recognized as services are performed and are billed to the customer upon the completion of delivery to the destination.

Because the customer receives the benefits of these services as the freight is in transit from point of origin to destination, we recognize revenue using a percentage of completion method based on our estimate of the amount of time freight has been in transit as of the reporting date compared with our estimate of the total required time for the deliveries.

The balances of assets recognized for shipping revenues earned but not billed were $ 962 and $ 783 as of May 29, 2021 and November 28, 2020, respectively.

The balances of assets recognized for shipping revenues earned but not billed were $ 962 and $ 783 as of August 28, 2021 and November 28, 2020, respectively.

Warehousing services revenue is based upon warehouse space occupied by a customer’s goods and inventory movements in and out of a warehouse and is recognized as such services are provided and billed to the customer concurrently in the same period.

Sales commissions are expensed as part of selling, general and administrative expenses at the time revenue is recognized because the amortization period would have been one year or less.

Sales commissions at wholesale are accrued upon the shipment of goods.

Sales commissions at retail are accrued at the time a sale is written (i.e.

when the customer’s order is placed) and are carried as prepaid commissions in other current assets until the goods are delivered and revenue is recognized.

At August 28, 2021 and November 28, 2020, our balance of prepaid commissions included in other current assets was $ 6,073 and $ 4,279 , respectively.

We do not incur sales commissions in our logistical services segment.

We exclude from revenue all amounts collected from customers for sales tax.

We do not disclose amounts allocated to remaining unsatisfied performance obligations as they are expected to be satisfied within one year or less.

Disaggregated revenue information for sales of furniture and accessories by product category for the three and six months ended May 29, 2021 and May 30, 2020, excluding intercompany transactions between our segments, is a follows:

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

Disaggregated revenue information for sales of furniture and accessories by product category for the three and nine months ended August 28, 2021 and August 29, 2020, excluding intercompany transactions between our segments, is as follows:

Quarter Ended

August 28, 2021

August 29, 2020

Bassett Custom Upholstery

6 unchanged sentences

Bassett Leather

10,201  

10,429  

Bassett Custom Wood

3 unchanged sentences

15,525  

11,428  

15,140  

Accessories, mattresses and other (1)

6 unchanged sentences

$ 80,341  

Six Months Ended

Nine Months Ended

August 28, 2021

August 29, 2020

Bassett Custom Upholstery

8 unchanged sentences

27,680  

12,663  

14,625  

Bassett Custom Wood

3 unchanged sentences

12,877  

12,710  

25,587  

Bassett Casegoods

3 unchanged sentences

31,379  

40,810  

Accessories, mattresses and other (1)

14 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

1 unchanged sentence

The following changes in our stockholders’

equity occurred during the three and six months ended May 29, 2021 and May 30, 2020:

equity occurred during the three and nine months ended August 28, 2021 and August 29, 2020:

Quarter Ended

Six Months Ended

Nine Months Ended

Common Stock:

25 unchanged sentences

39,572  

23,508  

Forfeited shares

11 unchanged sentences

Issuance of common stock

( 21 )  

Forfeited shares

40 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

10 unchanged sentences

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

AUGUST 28, 2021

(Dollars in thousands except share and per share data)

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements