What changed in this filing

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Item 1. Financial Statements

2024-07-11 compared with 2024-04-03 · 123 added, 104 removed, 312 unchanged (42% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED MARCH 2, 2024 AND FEBRUARY 25, 2023 – UNAUDITED

FOR THE PERIODS ENDED JUNE 1, 2024 AND MAY 27, 2023 – UNAUDITED

(In thousands)

Three Months Ended

March 2, 2024

February 25, 2023

Six Months Ended

Operating activities:

2 unchanged sentences

Depreciation and amortization

Asset impairment charges

Gain on revaluation of contingent consideration

Inventory valuation charges

Deferred income taxes

9 unchanged sentences

Purchases of property and equipment

Proceeds from the disposal of discontinued operations, net

Net cash used in investing activities

14 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

9 unchanged sentences

The current fiscal year ending November 30, 2024 is a 53-week year, with the additional week being included in our first fiscal quarter.

Accordingly, the information presented below includes 14 weeks of operations for the quarter ended March 2, 2024 as compared with 13 weeks included in the quarter ended February 25, 2023.

Accordingly, the information presented below includes 27 weeks of operations for the six months ended June 1, 2024 as compared with 26 weeks included in the six months ended May 27, 2023.

Interim Financial Presentation and Other Information

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

The results of operations for the three months ended March 2, 2024 are not necessarily indicative of results for the full fiscal year.

The results of operations for the three and six months ended June 1, 2024 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 25, 2023.

We calculate an anticipated effective tax rate for the year based on our annual estimates of pretax income and use that effective tax rate to record our year-to-date income tax provision.

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 rate was 30.0 % and 36.8 % for the three months ended March 2, 2024 and February 25, 2023, respectively.

The effective rates for the three months ended March 2, 2024 and February 25, 2023 differ from the federal statutory rate of 21 % primarily due to increases in the valuation allowance placed on deferred tax assets associated with Noa Home Inc.

We calculate an anticipated effective tax rate for the year based on our annual estimates of pretax income or loss and use that effective tax rate to record our year-to-date income tax provision.

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

Our effective tax rate was 11.2 % and 14.5 % for the three and six months ended June 1, 2024, respectively.

The effective rates for the three and six months ended June 1, 2024 differ from the federal statutory rate of 21 % primarily due to increases in the valuation allowance placed on deferred tax assets associated with Noa Home Inc.

(“Noa Home”), the effects of state income taxes and various permanent differences.

Our effective tax rate was 18.4 % and 27.1 % for the three and six months ended May 27, 2023, respectively.

The effective rates for the three and six months ended May 27, 2023 differ from the federal statutory rate of 21 % primarily due to the non-taxable gain on revaluation of contingent consideration associated with the acquisition of Noa Home (see Note 9), increases in the valuation allowance placed on deferred tax assets associated with Noa Home and the effects of state income taxes and various permanent differences.

Non-cash Investing and Financing Activity

During the three months ended March 2, 2024 and February 25, 2023, $ 3,044 and $ 3,406 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

During the six months ended June 1, 2024 and May 27, 2023, $ 3,476 and $ 3,881 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(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 $ 17,775 at both March 2, 2024 and November 25, 2023 consisted of CDs.

At March 2, 2024, the CDs had original terms averaging seven months, bearing interest at rates ranging from 0.7 % to 5.45 % and the weighted average remaining time to maturity was approximately five months and the weighted average yield of the CDs was approximately 5.04 %.

Our short-term investments of $ 17,814 and $ 17,775 at June 1, 2024 and November 25, 2023, respectively, consisted of CDs.

At June 1, 2024, the CDs had original terms averaging seven months, bearing interest at rates ranging from 0.7 % to 5.4 % and the weighted average remaining time to maturity was approximately three months and the weighted average yield of the CDs was approximately 4.97 %.

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 March 2, 2024 and November 25, 2023 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 June 1, 2024 and November 25, 2023 approximates their fair value.

Accounts Receivable

Accounts receivable consists of the following:

March 2, 2024

November 25, 2023

6 unchanged sentences

Actual credit losses could differ from those estimates.

Activity in the allowance for credit losses for the three months ended March 2, 2024 was as follows:

Activity in the allowance for credit losses for the six months ended June 1, 2024 was as follows:

Balance at November 25, 2023

1 unchanged sentence

Write-offs against allowance

Balance at March 2, 2024

Balance at June 1, 2024

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

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

2 unchanged sentences

Inventories were comprised of the following:

March 2, 2024

November 25, 2023

21 unchanged sentences

Additions charged to expense

Balance at March 2, 2024

Balance at June 1, 2024

Consists of a $500 reserve established against the retail inventory held by Noa Home due to our decision to cease operations by selling the remaining inventory in an orderly fashion over the next several months.

Our estimates and assumptions have been reasonably accurate in the past.

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

1 unchanged sentence

Goodwill and other intangible assets consisted of the following:

March 2, 2024

Gross Carrying

9 unchanged sentences

Total goodwill and other intangible assets

There were no changes in the carrying amounts of goodwill during the three months ended March 2, 2024.

The carrying amounts of goodwill by reportable segment, including accumulated impairment losses, at both March 2, 2024 and November 25, 2023 were as follows:

See Note 9 regarding the impairment of the trade name intangible asset for Noa Home.

There were no changes in the carrying amounts of goodwill during the six months ended June 1, 2024.

The carrying amounts of goodwill by reportable segment, including accumulated impairment losses, at both June 1, 2024 and November 25, 2023 were as follows:

Corporate and other

Total goodwill

Amortization expense associated with intangible assets during the three and six months ended June 1, 2024 and May 27, 2023 was as follows:

Quarter Ended

Six Months Ended

Intangible asset amortization expense

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

Amortization expense associated with intangible assets during the three months ended March 2, 2024 and February 25, 2023 was as follows:

Quarter Ended

March 2, 2024

February 25, 2023

Intangible asset amortization expense

Estimated future amortization expense for intangible assets that exist at March 2, 2024 is as follows:

Estimated future amortization expense for intangible assets that exist at June 1, 2024 is as follows:

Remainder of fiscal 2024

Bank Credit Facility

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

At March 2, 2024, we had $ 3,731 outstanding under standby letters of credit against our line, leaving availability under our credit line of $ 21,269 .

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

On May 15, 2024, we entered into the Eighth Amended and Restated Credit Agreement with our bank (the “Credit Facility”).

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

At June 1, 2024, we had $ 6,013 outstanding under standby letters of credit against our line.

The line bears interest at the One-Month Term Secured Overnight Financing Rate (“One-Month Term SOFR”) plus 1.75 % and is secured by our accounts receivable and inventory.

Our bank charges 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 .

Due to our results of operations in 2023, we were not in compliance with certain of these covenants at the end of our 2023 fiscal year.

Consequently, our bank agreed to reduce the consolidated fixed charge coverage ratio to 1.0 times and increase the consolidated lease-adjusted leverage ratio to 3.75 times, as defined, for the year ended November 25, 2023 and the quarter ended March 2, 2024.

We were in compliance with the amended covenants at November 25, 2023 and at March 2, 2024.

The respective ratios will revert back to the previous values for the quarter ending June 1, 2024.

We are in negotiations with our bank and plan to have an amended, restated or new agreement with a similar line of credit in place by the end of the second quarter of 2024.

Under the terms of the facility, Consolidated Minimum Tangible Net Worth (as defined in the Credit Facility) shall at no time be less than $ 120,000 .

In addition, we must maintain the following financial covenants, measured quarterly on a rolling twelve-month basis and commencing as of the end of the first fiscal quarter after the first date that the used commitment (the sum of any outstanding advances plus standby letters of credit) equals or exceeds $ 8,250 :

Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.2 times and

Consolidated Lease Adjusted Leverage to EBITDAR Ratio (as defined in the Credit Facility) not to exceed 3.35 times.

Since our used commitment was less than $ 8,250 at June 1, 2024, we were not required to test the Consolidated Fixed Charge Coverage Ratio or the Consolidated Lease Adjusted Leverage to EBITDAR Ratio.

Had we been required to test those ratios, we would not have been able to achieve the required levels for either of these ratios.

Consequently, our availability under the Credit Facility is currently limited to an additional $ 2,237 .

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 $ 5,784 and $ 5,778 as of March 2, 2024 and November 25, 2023, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

The liability for the Supplemental Plan was $ 5,827 and $ 5,778 as of June 1, 2024 and November 25, 2023, 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 five management employees in the amount of $ 400 each.

We are accounting for the LTC Awards as a defined benefit pension plan.

Currently, two of those employees have retired and are receiving benefits.

The liability for the LTC Awards was $ 1,257 and $ 1,234 as of March 2, 2024 and November 25, 2023, respectively.

The liability for the LTC Awards was $ 1,279 and $ 1,234 as of June 1, 2024 and November 25, 2023, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

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

March 2, 2024

November 25, 2023

2 unchanged sentences

Total pension liability

Components of net periodic pension costs for our defined benefit plans for the three months ended March 2, 2024 and November 25, 2023 are as follows:

Components of net periodic pension costs for our defined benefit plans for the three and six months ended June 1, 2024 and May 27, 2023 are as follows:

Quarter Ended

March 2, 2024

February 25, 2023

Six 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 $ 1,642 and $ 1,655 as of March 2, 2024 and November 25, 2023, respectively.

Our liability under this plan was $ 1,656 and $ 1,655 as of June 1, 2024 and November 25, 2023, 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 $ 3,117 and $ 2661 as of March 2, 2024 and November 25, 2023, respectively.

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 3,117 and $ 2661 as of June 1, 2024 and November 25, 2023, 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:

March 2, 2024

November 25, 2023

2 unchanged sentences

Total deferred compensation liability

We recognized expense under our deferred compensation arrangements during the three and six months ended June 1, 2024 and May 27, 2023 as follows:

Quarter Ended

Six Months Ended

Deferred compensation expense (benefit)

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

We recognized expense under our deferred compensation arrangements during the three months ended March 2, 2024 and February 25, 2023 as follows:

Quarter Ended

March 2, 2024

February 25, 2023

Deferred compensation expense (benefit)

Other Gains and Losses

During the three and six months ended June 1, 2024, we recognized non-cash charges for asset impairments totaling $ 5,515 which consisted of the following:

$ 2,887 in our retail segment which included $ 1,978 related to the impairment of leasehold improvements and $ 750 from the impairment of right-of-use assets at certain underperforming retail stores, as well as $ 159 for the impairment of right-of-use assets at certain warehouse locations resulting from the consolidation of our retail warehouses.

$ 727 for the impairment of plant and equipment in our wholesale segment related to the consolidation of our domestic wood production facilities.

$ 1,901 for the impairment of long-lived assets at Noa Home.

During the second quarter we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and have decided to cease operations by selling the remaining inventory in an orderly fashion over the next several months.

$ 1,827 of these charges are for the full impairment of the Noa Home trade name intangible asset, and $ 74 relates to the full impairment of customized software used in the Noa Home operations.

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.

During the three and six months ended May 27, 2023, we recognized a non-cash gain of $ 1,013 resulting from the write-down of our contingent consideration obligation to the former owners of Noa Home.

Subsequent to the acquisition of Noa Home on September 2, 2022, the parties concluded that the revenue and EBITDA targets originally set forth in the purchase agreement by which the Noa Home co-founders were to earn the contingent consideration were likely not to be met within the originally anticipated time frame and therefore agreed to replace the contingent consideration payable that was recognized at the acquisition date with two fixed payments of C$ 200 each.

The first payment was made in June of 2023 and the second payment will be made in December of 2024.

Commitments and Contingencies

2 unchanged sentences

Lease Guarantees

We were contingently liable under a licensee lease obligation guarantee in the amounts of $ 1,750 and $ 1,845 at March 2, 2024 and November 25, 2023, respectively.

The remaining term under this lease guarantee extends for four and a half years.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 5,322 and $ 1,845 at June 1, 2024 and November 25, 2023, respectively.

The remaining term under these lease guarantees extends for six years.

In the event of default by the licensee, 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 licensee 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 obligation, net of recorded reserves.

The fair value of this lease guarantee (an estimate of the cost to the Company to perform on the guarantee) at March 2, 2024 and November 25, 2023 was not material.

The fair value of these lease guarantees (an estimate of the cost to the Company to perform on the guarantee) at June 1, 2024 and November 25, 2023 was not material.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

Earnings (Loss) Per Share

1 unchanged sentence

Weighted Average

For the quarter ended March 2, 2024:

For the quarter ended June 1, 2024:

Basic loss per share

2 unchanged sentences

Diluted loss per share - continuing operations

For the quarter ended February 25, 2023:

For the quarter ended May 27, 2023:

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the six months ended June 1, 2024:

Basic earnings per share - continuing operations

Add effect of dilutive securities:

Restricted shares*

Diluted earnings per share - continuing operations

For the six months ended May 27, 2023:

Basic earnings per share - continuing operations

Add effect of dilutive securities:

Options and restricted shares

Diluted earnings per share - continuing operations

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

For the three and six months ended June 1, 2024 and May 27, 2023, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

Six Months Ended

Unvested shares

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

For the three months ended March 2, 2024 and February 25, 2023, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

March 2, 2024

February 25, 2023

Unvested shares

Segment Information

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

We have strategically aligned our business into two 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.

2 unchanged sentences

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.

Corporate and other – Corporate and other includes the shared costs of corporate functions such as treasury and finance, information technology, accounting, human resources, legal and others, including certain product development and marketing functions benefitting both wholesale and retail operations.

In addition to the two reportable segments described above, we include our remaining business activities and assets in a reconciling category known as Corporate and other.

This category includes the shared costs of corporate functions such as treasury and finance, information technology, accounting, human resources, legal and others, including certain product development and marketing functions benefitting both wholesale and retail operations.

In addition to property and equipment and various other assets associated with the shared corporate functions, the identifiable assets of Corporate and other include substantially all of our cash and our investments in CDs.

We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segment, Noa Home, which was acquired on September 2, 2022.

We consider our corporate functions to be other business activities and have aggregated them with any of our operating segments that do not meet the requirements to be reportable segments.

As of and for the periods ended June 1, 2024 and May 27, 2023, the only such operating segment included in Corporate and other is Noa Home, which was acquired on September 2, 2022.

All sales reported in our Corporate and other category are attributable to Noa Home, which generates substantially all of its sales outside of the United States.

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

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

1 unchanged sentence

Quarter Ended

March 2, 2024

February 25, 2023

Six Months Ended

Sales Revenue

3 unchanged sentences

Retail sales of furniture and accessories

Corporate and other

Corporate and other - Noa Home

Consolidated net sales of furniture and accessories

Income (Loss) before Income Taxes:

Income (loss) from operations:

2 unchanged sentences

Inter-company elimination

Asset impairment charges (see Note 9)

Gain on revaluation of contingent consideration (see Note 9)

Consolidated income (loss) from operations

Interest income

Other loss, net

Consolidated income (loss) before income taxes

Depreciation and Amortization

4 unchanged sentences

Corporate and other

Identifiable Assets

March 2, 2024

November 25, 2023

Identifiable Assets

Retail - Company-owned stores

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(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 at the time delivery is scheduled.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 22,763 and $ 22,788 as of March 2, 2024 and November 25, 2023, respectively.

Approximately 85 % of the customer deposits held as of November 25, 2023 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 March 2, 2024.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 23,021 and $ 22,788 as of June 1, 2024 and November 25, 2023, respectively.

Substantially all of the customer deposits held as of November 25, 2023 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 June 1, 2024.

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 March 2, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $ 2,451 and $ 2,245 , respectively.

At June 1, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $ 2,464 and $ 2,245 , 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.

Disaggregated revenue information for sales of furniture and accessories by product category for the three months ended March 2, 2024 and February 25, 2023, excluding intercompany transactions between our segments, is a follows:

Disaggregated revenue information for sales of furniture and accessories by product category for the three and six months ended June 1, 2024 and May 27, 2023, excluding intercompany transactions between our segments, is a follows:

Quarter Ended

March 2, 2024

February 25, 2023

Corporate & Other (2)

Corporate & Other

Bassett Custom Upholstery

4 unchanged sentences

Consolidated net sales of furniture and accessories

Six Months Ended

Bassett Custom Upholstery

Bassett Leather

Bassett Custom Wood

Bassett Casegoods

Accessories, mattresses and other (1)

Consolidated net sales of furniture and accessories

Includes the sale of goods other than Bassett-branded products, such as accessories and bedding, and also includes the sale of furniture protection plans.

Our Corporate and other segment for the three months ended March 2, 2024 and February 25, 2023 includes the sales of Noa Home.

Corporate and other for the three and six months ended June 1, 2024 and May 27, 2023 includes the sales of Noa Home.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

Changes to Stockholders ’ Equity

The following changes in our stockholders’ equity occurred during the three months ended March 2, 2024 and February 25, 2023:

The following changes in our stockholders’ equity occurred during the three and six months ended June 1, 2024 and May 27, 2023:

Quarter Ended

March 2, 2024

February 25, 2023

Six Months Ended

Common Stock:

25 unchanged sentences

End of period

The balance of cumulative translation adjustments, net of tax, was a net loss of $ 654 and $ 486 at March 2, 2024 and November 25, 2023, respectively.

The balance of cumulative translation adjustments, net of tax, was a net loss of $ 660 and $ 486 at June 1, 2024 and November 25, 2023, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(Dollars in thousands except share and per share data)

8 unchanged sentences

Early adoption is permitted.

As of March 2, 2024 we do not hold any investments in equity securities, therefore we do not currently expect that this guidance will have a material impact upon our financial position and results of operations.

As of June 1, 2024 we do not hold any investments in equity securities, therefore we do not currently expect that this guidance will have a material impact upon our financial position and results of operations.

In November 2023, the FASB issued Accounting Standards Update 2023-07 – Segment Reporting (Topic ASC 740) Improvements to Reportable Segment Disclosures.

15 unchanged sentences

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 2, 2024

(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