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Item 1. Financial Statements

2022-03-31 compared with 2021-09-30 · 238 added, 370 removed, 403 unchanged (60% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

FOR THE PERIODS ENDED FEBRUARY 26, 2022 AND FEBRUARY 27, 2021 –

(In thousands)

Nine Months Ended

August 28, 2021

August 29, 2020

Quarter Ended

February 26, 2022

February 27, 2021

Operating activities:

Net income (loss)

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

$ 5,573  

$ 4,011  

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

Depreciation and amortization

Gain on lease modification

Asset impairment charges

Goodwill impairment charge

Inventory valuation charges

Bad debt valuation charges (recoveries)

Gain on sale of property and equipment

Deferred income taxes

1 unchanged sentence

Accounts receivable

( 4,609 )  

( 3,675 )  

Other current assets

2 unchanged sentences

Accounts payable and other liabilities

( 2,194 )  

Obligations under operating leases

( 7,109 )  

Net cash provided by operating activities

1 unchanged sentence

Purchases of property and equipment

( 2,424 )  

Proceeds from sales of property and equipment

Purchases of investments

Proceeds from maturities of investments

( 465 )  

Net cash used in investing activities

( 2,880 )  

Financing activities:

Cash dividends

Proceeds from the exercise of stock options

( 1,374 )  

Other issuance of common stock

Repurchases of common stock

( 765 )  

Taxes paid related to net share settlement of equity awards

Repayments of finance lease obligations

( 434 )  

Net cash used in financing activities

( 2,480 )  

Change in cash and cash equivalents

( 2,494 )  

Cash and cash equivalents - beginning of period

34,374  

45,799  

Cash and cash equivalents - end of period

$ 31,880  

$ 45,033  

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

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

7 unchanged sentences

To date we have concluded that none of our licensees nor any other of our counterparties represent VIEs.

Revenue from the sale of furniture and accessories is reported in the accompanying condensed consolidated statements of operations net of estimates for returns and allowances.

Revenues from logistical services are generated by our wholly-owned subsidiary, Zenith Freight Lines, LLC (“Zenith”).

Sales of logistical services from Zenith to our wholesale segment have been eliminated in consolidation, and Zenith’s operating costs and expenses associated with sales to external customers are reported as cost of logistical services in our condensed consolidated statements of operations.

Revenue from the sale of furniture and accessories is reported in the accompanying condensed consolidated statements of income net of estimates for returns and allowances.

On January 31, 2022, we entered into a definitive agreement to sell substantially all of the assets of our wholly-owned subsidiary, Zenith Freight Lines, LLC (“Zenith”) to J.B.

Hunt Transport Services, Inc.

(“J.B.

Hunt”).

The sale was completed on February 28, 2022.

Accordingly, the operations of our logistical services segment are presented in the accompanying condensed consolidated statements of income as discontinued operations, and the assets sold to and liabilities assumed by J.B.

Hunt are presented in the accompanying condensed consolidated balance sheets as assets and liabilities of discontinued operations.

See Note 12, Discontinued Operations, for additional information.

Costs incurred by Bassett for logistical services performed for Bassett by Zenith are included in selling, general and administrative expenses.

Recently Adopted Accounting Pronouncements

Effective as of the beginning of fiscal 2022, we have adopted Accounting Standards Update No.

2016 - 13, Financial Instruments –

Credit Losses (Topic 326 ):

Measurement of Credit Losses on Financial Instruments (“ASU 2016 - 13”

The guidance in ASU 2016 - 13 replaces the incurred loss impairment methodology under previous GAAP.

The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other instruments.

We assessed the guidance under ASU 2016 - 13 as applied to our trade receivables and contract assets, and determined that there was no material impact to our financial condition or results of operations as a result of the adoption.

Effective as of the beginning of fiscal 2021, we have adopted Accounting Standards Update No.

2019 - 12 –

Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350 - 40 ):

Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018 - 15”

ASU 2018 - 15 was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license.

The amendments in ASU 2018 - 15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license).

The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in ASU 2018 - 15.

Income Taxes (Topic 740 ) Simplifying the Accounting for Income Taxes.

The amendments in ASU 2019 - 12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences.

ASU 2019 - 12 also clarifies and simplifies other aspects of the accounting for income taxes.

The amendments in ASU 2019 - 12 became effective for us as of the beginning of our 2022 fiscal year.

We adopted ASU 2019 - 12 on a prospective basis and the adoption did not have a material impact upon our financial condition or results of operations.

2 unchanged sentences

) outbreak to be a global pandemic.

In response to this declaration and the rapid spread of COVID- 19 within the United States, federal, state and local governments throughout the country imposed varying degrees of restrictions on social and commercial activity to promote social distancing in an effort to slow the spread of the illness.

These measures had a significant adverse impact upon many sectors of the economy, including non-essential retail commerce, beginning in our second fiscal quarter of 2020.

The significant adverse economic impact of the pandemic upon our results of operations was limited to fiscal 2020, however we continue to experience the 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.

While we have begun making progress in reducing our order backlogs, pandemic-related labor shortages and supply chain disruptions are ongoing and order cancellations could result if the present delays in order fulfillment continue.

Furthermore, a resurgence in COVID- 19 cases could prompt a return to tighter restrictions on commercial and retail activity in certain areas of the country.

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.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

FEBRUARY 26, 2022

(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 nine months ended August 29, 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 nine months 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, 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 are ongoing and order cancellations could result if the present delays in order fulfillment continue.

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

The results of operations for the three months ended February 26, 2022 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 27, 2021.

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 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 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

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)

Financial Instruments and Fair Value Measurements

Our effective tax rates for the three months ended February 26, 2022 and February 27, 2021 of 26.3 % and 29.4 %, respectively, differ from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences, including charges of $ 135 during the three months ended February 27, 2021 related to the vesting of stock awards.

Financial Instruments and Investments

Financial Instruments

1 unchanged sentence

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 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%.

Our short-term investments of $ 17,715 at February 26, 2022 and November 27, 2021 consisted of CDs.

At February 26, 2022, the CDs had original terms averaging eight months, bearing interest at rates ranging from 0.05 % to 0.85 %.

At February 26, 2022, the weighted average remaining time to maturity of the CDs was approximately five months and the weighted average yield of the CDs was approximately 0.24 %.

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 August 28, 2021 and November 28, 2020 approximates their fair value.

Fair Value Measurement

The Company accounts for items measured at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures .

ASC 820’s valuation techniques are based on observable and unobservable inputs.

Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions.

ASC 820 classifies these inputs into the following hierarchy:

Level 1 Inputs –

Quoted prices for identical instruments in active markets.

Level 2 Inputs –

Quoted prices for similar instruments in active markets;

quoted prices for identical or similar instruments in markets that are not active;

and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs –

Instruments with primarily unobservable value drivers.

We believe that the carrying amounts of our current assets and current liabilities approximate fair value due to the short-term nature of these items.

Our primary non-recurring fair value estimates typically involve business acquisitions or the impairment of long-lived assets which involve a combination of Level 2 and Level 3 inputs.

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)

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at February 26, 2022 and November 27, 2021 approximates their fair value.

Accounts Receivable

Accounts receivable consists of the following:

August 28, 2021

November 28, 2020

Gross accounts receivable

1 unchanged sentence

$ 21,134  

Allowance for doubtful accounts

Allowance for credit losses

( 714 )  

2 unchanged sentences

$ 20,567  

We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments.

The allowance for doubtful accounts is based on a review of specifically identified accounts in addition to an overall aging analysis which is applied to accounts pooled on the basis of similar risk characteristics.

We maintain an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments.

The allowance for credit losses is based on a review of specifically identified accounts in addition to an overall aging analysis which is applied to accounts pooled on the basis of similar risk characteristics.

Judgments are made with respect to the collectibility of accounts receivable within each pool based on historical experience, current payment practices and current economic trends based on our expectations over the expected life of the receivables, which is generally ninety days or less.

Actual credit losses could differ from those estimates.

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

Balance at November 28, 2020

$ 1,211  

Reductions to allowance

Balance at August 28, 2021

$ 1,105  

We believe that the carrying value of our net accounts receivable approximates fair value.

The inputs into these fair value estimates reflect our market assumptions and are not observable.

Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures .

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

Activity in the allowance for credit losses for the three months ended February 26, 2022 was as follows:

Balance at November 27, 2021

Additions charged to expense

Write-offs against allowance

Balance at February 26, 2022

We believe that the carrying value of our net accounts receivable approximates fair value.

The inputs into these fair value estimates reflect our market assumptions and are not observable.

Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures .

Domestic furniture inventories are valued at the lower of cost, which is determined using the last-in, first -out (LIFO) method, or market.

31 unchanged sentences

Retail reserves are based on accessory and clearance floor sample inventory in our stores and any inventory that is not associated with a specific customer order in our retail warehouses.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

Activity in the reserves for excess quantities and obsolete inventory by segment are as follows:

7 unchanged sentences

( 203 )  

Balance at August 28, 2021

Balance at February 26, 2022

$ 3,648  

3 unchanged sentences

We have not made any significant changes to our methodology for determining inventory reserves in 2022 and do not anticipate that our methodology is likely to change in the future.

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)

Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following:

August 28, 2021

February 26, 2022

Accumulated Amortization

Intangibles subject to amortization

1 unchanged sentence

$ ( 237 )  

$ ( 1,541 )  

$ 2,009  

Technology - customized applications

( 784 )  

Total intangible assets subject to amortization

$ 4,384  

$ ( 2,325 )  

Intangibles not subject to amortization:

12,146  

Total goodwill and other intangible assets

1 unchanged sentence

November 27, 2021

Accumulated Amortization

Intangibles subject to amortization

1 unchanged sentence

$ ( 223 )  

$ ( 1,346 )  

$ 2,204  

Technology - customized applications

( 695 )  

Total intangible assets subject to amortization

$ 4,384  

$ ( 2,041 )  

Intangibles not subject to amortization:

12,146  

Total goodwill and other intangible assets

$ 14,354  

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

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

The carrying amounts of goodwill by reportable segment at both February 26, 2022 and November 27, 2021 are as follows:

$ 9,188  

2 unchanged sentences

( 1,926 )  

Logistical services

Total goodwill

2 unchanged sentences

$ 7,217  

Due to the impact of the COVID- 19 pandemic, we performed an interim impairment assessment of our remaining goodwill as of May 30, 2020, the end of our second quarter of fiscal 2020.

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 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.

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)

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

Goodwill and other intangible assets associated with our logistical services segment totaling $ 9,023 and $ 9,094 at February 26, 2022 and November 27, 2021, respectively, are included in assets of discontinued operations held for sale in the accompanying balance sheets (see Note 12 ).

Amortization expense associated with intangible assets during the three months ended February 26, 2022 and February 27, 2021 was as follows:

Quarter Ended

Nine Months Ended

Intangible asset amortization expense

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

Estimated future amortization expense for intangible assets that exist at February 26, 2022 is as follows:

Remainder of fiscal 2022

$ 2,059  

Bank Credit Facility

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

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 August 28, 2021 and expect to remain in compliance through the end of fiscal 2021.

The credit facility matures on January 31, 2022.

At February 26, 2022, 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 had outstanding standby letters of credit with another bank totaling $ 325 .

The line bears interest at the One-Month Term Secured Overnight Financing Rate (“One-Month Term SOFR”) plus 1.5 % and is unsecured.

Our bank will charge a fee of 0.25 % on the daily unused balance of the line, payable quarterly.

Under the terms of the facility, we must maintain the following financial covenants, measured quarterly on a rolling twelve -month basis:

Consolidated fixed charge coverage ratio of not less than 1.4 times,

Consolidated lease-adjusted leverage ratio not to exceed 3.0 times, and

Minimum tangible net worth of $ 140,000 .

We were in compliance with these covenants at February 26, 2022 and expect to remain in compliance for the foreseeable future.

The credit facility will mature on January 27, 2025, at which time any amounts outstanding under the facility will be due.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

Post Employment Benefit Obligations

1 unchanged sentence

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 $ 8,444 and $ 8,565 as of August 28, 2021 and November 28, 2020, respectively.

The liability for the Supplemental Plan was $ 9,149 and $ 9,192 as of February 26, 2022 and November 27, 2021, 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 $ 1,547 and $ 1,506 as of August 28, 2021 and November 28, 2020, respectively.

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)

The liability for the LTC Awards was $ 1,565 and $ 1,548 as of February 26, 2022 and November 27, 2021, respectively.

The combined pension liability for the Supplemental Plan and LTC Awards is recorded as follows in the condensed consolidated balance sheets:

4 unchanged sentences

$ 10,740  

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:

Components of net periodic pension costs for our defined benefit plans for the three months ended February 26, 2022 and February 27, 2021 are as follows:

Quarter Ended

Nine Months Ended

Interest cost

2 unchanged sentences

Net periodic pension cost

The components of net periodic pension cost other than the service cost component are included in other loss, net in our condensed consolidated statements of operations.

The components of net periodic pension cost other than the service cost component, which is included in selling, general and administrative expenses, are included in other loss, net in our condensed consolidated statements of operations.

Deferred Compensation Plans

1 unchanged sentence

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

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

Our liability under this plan was $ 1,650 and $ 1,648 as of February 26, 2022 and November 27, 2021, 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 $ 1,720 and $ 1,250 as of August 28, 2021 and November 28, 2020, respectively.

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 2,155 and $ 1,789 as of February 26, 2022 and November 27, 2021, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

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:

4 unchanged sentences

$ 2,927  

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)

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

We recognized expense under our deferred compensation arrangements during the three months ended February 26, 2022 and February 27, 2021 as follows:

Quarter Ended

Nine Months Ended

February 26, 2022

February 27, 2021

Deferred compensation expense

Stock Compensation

On March 10, 2021, our shareholders approved the Bassett Furniture Industries, Incorporated 2021 Stock Incentive Plan (the “2021 Plan”).

All present and future non-employee directors, key employees and outside consultants for the Company are eligible to receive incentive awards under the 2021 Plan.

Our Organization, Compensation and Nominating Committee (the “OCN Committee”) selects eligible key employees and outside consultants to receive awards under the 2021 Plan in its discretion.

Our Board of Directors or any committee designated by the Board of Directors selects eligible non-employee directors to receive awards under the 2021 Plan in its discretion.

Five hundred thousand ( 500,000 ) shares of common stock are reserved for issuance under the 2021 Plan.

Participants may receive the following types of incentive awards under the 2021 Plan:

stock options, stock appreciation rights, payment shares, restricted stock, restricted stock units and performance shares.

Stock options may be incentive stock options or non-qualified stock options.

Stock appreciation rights may be granted in tandem with stock options or as a freestanding award.

Non-employee directors and outside consultants are eligible to receive restricted stock and restricted stock units only.

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 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 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

Nine Months Ended

Stock compensation expense

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)

Other Operating Losses

Asset Impairment Charges

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 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 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 $ 1,959 and $ 1,811 at August 28, 2021 and November 28, 2020, respectively.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 1,854 and $ 1,845 at February 26, 2022 and November 27, 2021, 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 August 28, 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 February 26, 2022 and November 27, 2021 was not material.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

Earnings (Loss) Per Share

The following reconciles basic and diluted earnings (loss) per share:

Earnings Per Share

The following reconciles basic and diluted earnings per share:

Weighted Average

For the quarter ended August 28, 2021:

Basic earnings per share

For the quarter ended February 26, 2022:

Basic earnings per share - continuing operations

$ 4,291  

2 unchanged sentences

Add effect of dilutive securities:

Options and restricted shares

Diluted earnings per share

Restricted shares

Diluted earnings per share - continuing operations

$ 4,291  

1 unchanged sentence

$ 0.44  

For the quarter ended August 29, 2020:

Basic earnings per share

Basic earnings per share - discontinued operations

$ 1,282  

2 unchanged sentences

Add effect of dilutive securities:

Options and restricted shares

16,263  

Diluted earnings per share

Restricted shares

Diluted earnings per share - discontinued operations

$ 1,282  

1 unchanged sentence

$ 0.13  

For the nine months ended August 28, 2021:

Basic earnings per share

For the quarter ended February 27, 2021:

Basic earnings per share - continuing operations

$ 3,698  

3 unchanged sentences

Options and restricted shares

Diluted earnings per share

20,287  

Diluted earnings per share - continuing operations

$ 3,698  

9,939,805  

For the nine months ended August 29, 2020:

Basic loss per share

$ 0.37  

Basic earnings per share - discontinued operations

9,919,518  

$ 0.03  

Add effect of dilutive securities:

Options and restricted shares

Diluted loss per share

20,287  

Diluted earnings per share - discontinued operations

9,939,805  

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

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:

$ 0.03  

For the three months ended February 26, 2022 and February 27, 2021, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

Nine Months Ended

Stock options

Unvested shares

51,300  

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)

Segment Information

We have strategically aligned our business into three reportable segments as defined in ASC 280, Segment Reporting , and as described below:

The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (Company-owned and licensee-owned retail stores) and independent furniture retailers.

Our wholesale segment includes our wood and upholstery operations, which include Lane Venture, as well as all corporate selling, general and administrative expenses, including those corporate expenses related to both Company- and licensee-owned stores.

Our wholesale segment also includes our holdings of short-term investments and retail real estate previously leased as licensee stores.

The earnings and costs associated with these assets are included in other income (loss), net, in our condensed consolidated statements of operations.

Retail –

 Company-owned stores.

Our retail segment consists of Company-owned stores and includes the revenues, expenses, assets and liabilities and capital expenditures directly related to these stores and the Company-owned distribution network utilized to deliver products to our retail customers.

Logistical services.

Our logistical services segment reflects the operations of Zenith.

In addition to providing shipping and warehousing services for the Company, Zenith also provides similar services to other customers, primarily in the furniture industry.

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 retail segment.

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

These profits will be recorded when merchandise is delivered to the retail consumer.

The inter-company income elimination also includes rent paid by our retail stores occupying Company-owned real estate, and the elimination of shipping and handling charges from Zenith for services provided to our wholesale operations.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

The following table presents our segment information:

Quarter Ended

Nine Months Ended

Sales Revenue

Wholesale sales of furniture and accessories

Discontinued Operations

On January 31, 2022, we entered into a definitive agreement to sell substantially all of the assets of Zenith Freight Lines, LLC (“Zenith”) to J.B.

Hunt Transport Services, Inc.

(“J.B.

Hunt”) for approximately $ 86,900 in cash subject to a customary post-closing working capital adjustment.

The sale was completed on February 28, 2022.

Accordingly, the operations of our logistical services segment, which consisted entirely of the operations of Zenith, are presented in the accompanying condensed consolidated statements of income as discontinued operations, and the assets sold to and liabilities assumed by J.B.

Hunt are presented in the accompanying condensed consolidated balance sheets as assets and liabilities of discontinued operations held for sale.

The following table summarizes the major classes of assets and liabilities of the discontinued operations, as reported in the condensed consolidated balance sheets as of February 26, 2022 and November 27, 2021:

Carrying amounts of major classes of assets included as part of discontinued operations:

Accounts receivable, net

$ 7,174  

$ 7,601  

Other current assets

Property and equipment, net

23,891  

24,898  

Sales to retail segment

Goodwill and other intangible assets

Right of use assets under operating leases

17,729  

1 unchanged sentence

$ 61,888  

Wholesale sales to external customers

$ 63,821  

Balance sheet classification:

Current assets of discontinued operations held for sale

$ 61,888  

$ 11,064  

Long-term assets of discontinued operations held for sale

52,757  

Retail sales of furniture and accessories

Total assets of discontinued operations held for sale

$ 61,888  

$ 63,821  

Carrying amounts of major classes of liabilities included as part of discontinued operations:

Accounts payable

$ 3,575  

$ 4,336  

Consolidated net sales of furniture and accessories

Accrued compensation and benefits

Current portion operating lease obligations

Other current liabilites and accrued expenses

Long-term portion of operating lease obligations

10,332  

10,996  

Other long-term liabilities

$ 29,892  

$ 32,305  

Logistical services revenue

Balance sheet classification:

Current liabilities of discontinued operations held for sale

$ 29,892  

$ 16,095  

Long-term liabilities of discontinued operations held for sale

16,210  

Total liabilities of discontinued operations held for sale

$ 29,892  

Services to wholesale segment

$ 32,305  

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

The following table summarizes the major classes of line items constituting income of the discontinued operations, as reported in the condensed consolidated statements of income for the three months ended February 26, 2022 and February 27, 2021:

Quarter Ended

Major line items constituting pretax income of discontinued operations:

Logistical services revenue

$ 16,776  

$ 12,018  

Logistical services to external customers

Cost of logistical services

15,001  

11,558  

Other loss, net

( 63 )  

Pretax income of discontinued operations

Income tax expense

Income from discontinued operations

$ 1,282  

Total sales revenue

The amounts shown above represent the results of Zenith’s business transactions with third parties.

During the three months ended February 26, 2022 and February 27, 2021, Zenith also charged Bassett $ 9,121 and $ 8,063 , respectively, for logistical services provided to our wholesale segment.

We have entered into a service agreement with J.B.

Hunt for the continuation of these services for a period of seven years following the sale of Zenith.

Other loss, net, of discontinued operations for the three months ended February 26, 2022 and February 27, 2021 includes interest in the amount of $ 78 and $ 43 , respectively, arising from finance leases assumed by J.B.

Hunt as part of the transaction.

The following table summarizes the cash flows generated by discontinued operations during the three months ended February 26, 2022 and February 27, 2021:

Quarter Ended

Cash provided by operating activities

$ 1,681  

$ 2,841  

Cash used in investing activities

( 81 )  

Cash used in financing activities

( 371 )  

Income (Loss) from Operations

Net cash provided by discontinued operations

$ 1,229  

$ 2,548  

Segment Information

We have strategically aligned our business into two reportable segments as defined in ASC 280, Segment Reporting , and as described below:

Our wholesale segment also includes our holdings of short-term investments and retail real estate previously leased as licensee stores.

The earnings and costs associated with these assets are included in other loss, net, in our condensed consolidated statements of operations.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

Retail –

 Company-owned stores.

Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores.

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

These profits will be recorded when merchandise is delivered to the retail consumer.

The inter-company income elimination also includes rent paid by our retail stores occupying Company-owned real estate.

Our former logistical services segment which represented the operations of Zenith is now presented as a discontinued operation in the accompanying condensed consolidated balances sheets and statements of income (see Note 12 ).

The following table presents our segment information:

Quarter Ended

Sales Revenue

Wholesale sales of furniture and accessories

$ 83,485  

Retail - Company-owned stores

$ 70,264  

Logistical services

Sales to retail segment

( 29,728 )  

Inter-company elimination

Wholesale sales to external customers

53,757  

41,260  

Retail sales of furniture and accessories

64,107  

Asset impairment charges

Goodwill impairment charge

Litigation expense

60,395  

Consolidated net sales of furniture and accessories

$ 117,864  

$ 101,655  

Depreciation and Amortization

Income from Operations

$ 3,385  

1 unchanged sentence

Retail - Company-owned stores

Logistical services

Inter-company elimination

( 257 )  

1 unchanged sentence

$ 5,561  

Depreciation and Amortization

Retail - Company-owned stores

$ 2,389  

Capital Expenditures

$ 2,314  

Capital Expenditures

$ 2,327  

Retail - Company-owned stores

Logistical services

$ 2,343  

$ 7,141  

$ 2,214  

Identifiable Assets

August 28, 2021

November 28, 2020

Identifiable Assets  

$ 201,388  

3 unchanged sentences

160,986  

Logistical services

Discontinued Operations

61,888  

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

FEBRUARY 26, 2022

(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 $ 51,103 and $ 39,762 as of August 28, 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 nine months ended August 28, 2021.

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 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.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 54,491 and $ 51,492 as of February 26, 2022 and November 27, 2021, respectively.

Approximately 60 % of the customer deposits held at November 27, 2021 related to performance obligations that were satisfied during the current year-to-date period and have therefore been recognized in revenue for the three months ended February 26, 2022.

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.

2 unchanged sentences

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.

At February 26, 2022 and November 27, 2021, our balance of prepaid commissions included in other current assets was $ 6,330 and $ 6,221 , respectively.

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.

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:

Disaggregated revenue information for sales of furniture and accessories by product category for the three months ended February 26, 2022 and February 27, 2021, excluding intercompany transactions between our segments, is a follows:

Quarter Ended

August 28, 2021

August 29, 2020

Bassett Custom Upholstery

$ 26,276  

$ 32,362  

$ 58,638  

$ 18,246  

$ 24,366  

$ 42,612  

Bassett Leather

Bassett Custom Wood

13,419  

Bassett Casegoods

10,394  

15,525  

11,428  

15,140  

Accessories, mattresses and other (1)

Consolidated net sales of furniture and accessories

$ 46,294  

$ 58,576  

$ 104,870  

$ 32,197  

$ 48,144  

$ 80,341  

Nine Months Ended

August 28, 2021

August 29, 2020

February 26, 2022

February 27, 2021

Bassett Custom Upholstery

8 unchanged sentences

13,179  

12,663  

14,625  

Bassett Custom Wood

1 unchanged sentence

10,799  

38,677  

12,877  

12,710  

25,587  

Bassett Casegoods

2 unchanged sentences

14,554  

31,379  

40,810  

Accessories, mattresses and other (1)

25,540  

22,364  

Consolidated net sales of furniture and accessories

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

1 unchanged sentence

The following changes in our stockholders’

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

equity occurred during the three months ended February 26, 2022 and February 27, 2021:

Quarter Ended

Nine Months Ended

Common Stock:

2 unchanged sentences

$ 49,714  

$ 50,581  

Issuance of common stock

Forfeited shares

Purchase and retirement of common stock

( 225 )  

( 174 )  

( 1,078 )  

End of period

1 unchanged sentence

$ 49,567  

$ 48,779  

$ 49,883  

Common Shares Issued and Outstanding:

2 unchanged sentences

9,942,787  

10,116,291  

Issuance of common stock

10,796  

28,623  

39,572  

Forfeited shares

Purchase and retirement of common stock

( 44,989 )  

( 34,907 )  

( 215,564 )  

End of period

1 unchanged sentence

9,913,496  

9,755,846  

9,976,513  

Additional Paid-in Capital:

1 unchanged sentence

Issuance of common stock

( 21 )  

Forfeited shares

Purchase and retirement of common stock

( 267 )  

( 99 )  

( 275 )  

Stock based compensation

4 unchanged sentences

$ 109,710  

$ 129,130  

Cumulative effect of a change in accounting principal

Net income (loss) for the period

13,001  

Net income for the period

Purchase and retirement of common stock

( 273 )  

( 27 )  

( 4,432 )  

Cash dividends declared

( 1,374 )  

( 799 )  

( 6,321 )  

End of period

1 unchanged sentence

$ 109,493  

$ 111,958  

$ 104,743  

Accumulated Other Comprehensive Loss:

1 unchanged sentence

$ ( 1,823 )  

$ ( 1,187 )  

$ ( 1,394 )  

Amortization of pension costs, net of tax

1 unchanged sentence

$ ( 1,774 )  

$ ( 1,162 )  

$ ( 1,290 )  

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 28, 2021

FEBRUARY 26, 2022

(Dollars in thousands except share and per share data)

Recent Accounting Pronouncements

In December 2019, the FASB issued Accounting Standards Update No.

In October 2021, the FASB issued Accounting Standards Update No.

2021 - 08–

Income Taxes (Topic 740 ) Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in the accounting standards.

ASU 2019 - 12 also clarifies and simplifies other aspects of the accounting for income taxes.

Business Combinations (Topic 805 ) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and to payment terms and their effect on subsequent revenue recognized by the acquirer.

The amendments in ASU 2021 - 08 require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606.

At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts.

The amendments in ASU 2021 - 08 will become effective for us as of the beginning of our 2024 fiscal year.

Early adoption is permitted, including adoption in any interim period.

We are currently evaluating the impact that this guidance will have upon our financial position and results of operations, if any.

We do not expect that this guidance will have a material impact upon our financial position and results of operations.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

AUGUST 28, 2021

FEBRUARY 26, 2022

(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