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Item 1. Financial Statements

2025-04-03 compared with 2024-10-10 · 124 added, 179 removed, 315 unchanged (49% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED AUGUST 31, 2024 AND AUGUST 26, 2023 – UNAUDITED

FOR THE PERIODS ENDED MARCH 1, 2025 AND MARCH 2, 2024 – UNAUDITED

(In thousands)

Nine Months Ended

August 31, 2024

August 26, 2023

Three Months Ended

March 1, 2025

March 2, 2024

Operating activities:

2 unchanged sentences

Depreciation and amortization

Asset impairment charges

Gain on revaluation of contingent consideration

Inventory valuation charges

Deferred income taxes

6 unchanged sentences

Obligations under operating leases

Net cash provided by (used in) operating activities

Net cash used in operating activities

Investing activities:

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

AUGUST 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

8 unchanged sentences

Our fiscal year, which ends on the last Saturday of November, periodically results in a 53-week year instead of the normal 52 weeks.

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 40 weeks of operations for the nine months ended August 31, 2024 as compared with 39 weeks included in the nine months ended August 26, 2023.

Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation with no effect on previously reported net income or Stockholders' equity.

The prior fiscal year ended November 30, 2024 was a 53-week year, with the additional week being included in the first fiscal quarter.

Accordingly, the information presented below includes 13 weeks of operations for the three months ended March 1, 2025 as compared with 14 weeks included in the three months ended March 2, 2024.

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 and nine months ended August 31, 2024 are not necessarily indicative of results for the full fiscal year.

The results of operations for the three months ended March 1, 2025 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 30, 2024.

1 unchanged sentence

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 22.0 % and 17.3 % for the three and nine months ended August 31, 2024, respectively.

The effective rates for the three and nine months ended August 31, 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.

Our effective tax rate was 27.4 % for the three months ended March 1, 2025.

The effective rate for the three months ended March 1, 2025 differs from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences.

Our effective tax rate was 30.0 % for the three months ended March 2, 2024.

The effective rate for the three months ended March 2, 2024 differs 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 18.8 % and 43.3 % for the three and nine months ended August 26, 2023, respectively.

The effective rates for the three and nine months ended August 26, 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 nine months ended August 31, 2024 and August 26, 2023, $ 3,476 and $ 6,026 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

During the three months ended March 1, 2025 and March 2, 2024, $ 0 and $ 3,044 , 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

AUGUST 31, 2024

MARCH 1, 2025

(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 $ 17,834 and $ 17,775 at August 31, 2024 and November 25, 2023, respectively, consisted of CDs.

At August 31, 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 five months and the weighted average yield of the CDs was approximately 4.69 %.

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 31, 2024 and November 25, 2023 approximates their fair value.

Our short-term investments of $ 20,360 at both March 1, 2025 and November 30, 2024 consisted of CDs.

At March 1, 2025, the CDs had original terms averaging seven months, bearing interest at rates ranging from 0.7 % to 5.15 % and the weighted average remaining time to maturity was approximately five months and the weighted average yield of the CDs was approximately 3.9 %.

Each CD is placed with a federally insured financial institution and, except as noted below, 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 1, 2025 and November 30, 2024 approximates their fair value.

Our investment in CDs at March 1, 2025 and November 30, 2024 includes one CD in the amount of $ 2,500 which was placed with a financial institution that provides merchant services for our retail segment.

This CD has been pledged as security for the merchant services agreement.

The CD has a six-month term maturing in April 2025 and an interest rate of 2.0 %.

The requirement to maintain the pledge will be reassessed prior to the end of fiscal 2025, therefore the CD is classified as a current asset with our other CDs.

This CD is in excess of the $250 Federal deposit insurance limit.

Accounts Receivable

Accounts receivable consists of the following:

August 31, 2024

March 1, 2025

November 30, 2024

6 unchanged sentences

Actual credit losses could differ from those estimates.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

(Dollars in thousands except share and per share data)

Activity in the allowance for credit losses for the nine months ended August 31, 2024 was as follows:

Activity in the allowance for credit losses for the three months ended March 1, 2025 was as follows:

Balance at November 30, 2024

1 unchanged sentence

Write-offs against allowance

Balance at August 31, 2024

Balance at March 1, 2025

Substantially all of the accounts receivable written off against the reserve during the three months ended March 1, 2025 originated during fiscal 2024.

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

1 unchanged sentence

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

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

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

1 unchanged sentence

Inventories were comprised of the following:

August 31, 2024

March 1, 2025

November 30, 2024

17 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

AUGUST 31, 2024

(Dollars in thousands except share and per share data)

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

2 unchanged sentences

Additions charged to expense

Balance at August 31, 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.

Balance at March 1, 2025

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

We have not made any significant changes to our methodology for determining inventory reserves in 2025 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

MARCH 1, 2025

(Dollars in thousands except share and per share data)

Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following:

August 31, 2024

Gross Carrying

March 1, 2025

Gross Carrying Amount

Accumulated Amortization

Intangible Assets, Net

Intangibles subject to amortization

3 unchanged sentences

November 30, 2024

Gross Carrying

Gross Carrying Amount

Accumulated Amortization

Intangible Assets, Net

Intangibles subject to amortization

2 unchanged sentences

Total goodwill and other intangible assets

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 nine months ended August 31, 2024.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

(Dollars in thousands except share and per share data)

The carrying amounts of goodwill by reportable segment, including accumulated impairment losses, at both August 31, 2024 and November 25, 2023 were as follows:

There were no changes in the carrying amounts of goodwill during the three months ended March 1, 2025.

The carrying amounts of goodwill by reportable segment, including accumulated impairment losses, at both March 1, 2025 and November 30, 2024 were as follows:

Corporate and other

Total goodwill

Amortization expense associated with intangible assets during the three and nine months ended August 31, 2024 and August 26, 2023 was as follows:

Amortization expense associated with intangible assets during the three months ended March 1, 2025 and March 2, 2024 was as follows:

Quarter Ended

Nine Months Ended

August 31, 2024

August 26, 2023

August 31, 2024

August 26, 2023

March 1, 2025

March 2, 2024

Intangible asset amortization expense

Estimated future amortization expense for intangible assets that exist at August 31, 2024 is as follows:

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

Estimated future amortization expense for intangible assets that exist at March 1, 2025 is as follows:

Remainder of fiscal 2025

2 unchanged sentences

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

At August 31, 2024, we had $ 6,013 outstanding under standby letters of credit against our line.

At March 1, 2025, we had $ 5,682 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.

4 unchanged sentences

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 August 31, 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.

Since our used commitment was less than $ 8,250 at March 1, 2025, 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 in full compliance.

Consequently, our availability under the Credit Facility is currently limited to an additional $ 2,568 .

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

(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 $ 5,851 and $ 5,778 as of August 31, 2024 and November 25, 2023, respectively.

The liability for the Supplemental Plan was $ 5,600 and $ 5,557 as of March 1, 2025 and November 30, 2024, 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.

3 unchanged sentences

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

The liability for the LTC Awards was $ 1,221 and $ 1,234 as of August 31, 2024 and November 25, 2023, respectively.

The liability for the LTC Awards was $ 1,381 and $ 1,360 as of March 1, 2025 and November 30, 2024, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(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:

August 31, 2024

March 1, 2025

November 30, 2024

2 unchanged sentences

Total pension liability

Components of net periodic pension costs for our defined benefit plans for the three and nine months ended August 31, 2024 and August 26, 2023 are as follows:

Components of net periodic pension costs for our defined benefit plans for the three months ended March 1, 2025 and March 2, 2024 are as follows:

Quarter Ended

Nine Months Ended

August 31, 2024

August 26, 2023

August 31, 2024

August 26, 2023

March 1, 2025

March 2, 2024

Interest cost

6 unchanged sentences

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

Our liability under this plan was $ 1,657 and $ 1,655 as of August 31, 2024 and November 25, 2023, respectively.

Our liability under this plan was $ 1,560 and $ 1,568 as of March 1, 2025 and November 30, 2024, 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 $ 3,277 and $ 2661 as of August 31, 2024 and November 25, 2023, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

(Dollars in thousands except share and per share data)

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 3,540 and $ 3,486 as of March 1, 2025 and November 30, 2024, 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:

August 31, 2024

March 1, 2025

November 30, 2024

2 unchanged sentences

Total deferred compensation liability

We recognized expense under our deferred compensation arrangements during the three and nine months ended August 31, 2024 and August 26, 2023 as follows:

We recognized expense under our deferred compensation arrangements during the three months ended March 1, 2025 and March 2, 2024 as follows:

Quarter Ended

Nine Months Ended

August 31, 2024

August 26, 2023

August 31, 2024

August 26, 2023

Deferred compensation expense (benefit)

Other Gains and Losses

During the three and nine months ended August 31, 2024, we recognized a charge of $ 1,240 to accrue the remaining minimum charges payable under a contract for logistical services which our wholesale segment ceased utilizing during the third fiscal quarter of 2024.

These minimum payments will continue through January of 2026.

During the nine months ended August 31, 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 nine months ended August 26, 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.

March 1, 2025

March 2, 2024

Deferred compensation expense

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

Restructuring

In the fourth quarter of fiscal 2024 we recognized a restructuring charge of $ 440 representing accrued severance pay for certain affected employees.

At March 1, 2025 and November 30, 2024, $ 69 and $ 432 , respectively, of the accrual remained in other current liabilities.

The remainder is expected to be paid out by the end of the second quarter of fiscal 2025.

Commitments and Contingencies

2 unchanged sentences

Lease Guarantees

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 5,226 and $ 1,845 at August 31, 2024 and November 25, 2023, respectively.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 4,885 and $ 5,131 at March 1, 2025 and November 30, 2024, respectively.

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

1 unchanged sentence

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 these lease guarantees (an estimate of the cost to the Company to perform on the guarantee) at August 31, 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 March 1, 2025 and November 30, 2024 was not material.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

2 unchanged sentences

Weighted Average

For the quarter ended August 31, 2024:

Basic loss per share

Add effect of dilutive securities:

Restricted shares*

Diluted loss per share - continuing operations

For the quarter ended August 26, 2023:

For the quarter ended March 1, 2025:

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the nine months ended August 31, 2024:

Basic earnings per share - continuing operations

Add effect of dilutive securities:

Restricted shares*

Diluted earnings per share - continuing operations

For the nine months ended August 26, 2023:

Basic earnings per share - continuing operations

For the quarter ended March 2, 2024:

Basic loss per share

Add effect of dilutive securities:

Restricted shares*

Diluted earnings per share - continuing operations

Diluted loss per share

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

For the three and nine months ended August 31, 2024 and August 26, 2023, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

For the three months ended March 1, 2025 and March 2, 2024, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

Nine Months Ended

August 31, 2024

August 26, 2023

August 31, 2024

August 26, 2023

March 1, 2025

March 2, 2024

Unvested shares

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

9 unchanged sentences

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 August 31, 2024 and August 26, 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.

During the second fiscal quarter of 2024 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.

As of and for the period ended March 2, 2024, the only such operating segment included in Corporate and other is Noa Home, which was acquired on September 2, 2022, subsequently closed during fiscal 2024 and substantially liquidated as of November 30, 2024.

All sales reported in our Corporate and other category during fiscal 2024 were attributable to Noa Home, which generated 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

AUGUST 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

1 unchanged sentence

Quarter Ended

Nine Months Ended

August 31, 2024

August 26, 2023

August 31, 2024

August 26, 2023

March 1, 2025

March 2, 2024

Sales Revenue

10 unchanged sentences

Inter-company elimination

Asset impairment charges (see Note 9)

Loss on contract abandonment (see Note 9)

Gain on revaluation of contingent consideration (see Note 9)

Consolidated income (loss) from operations

8 unchanged sentences

Corporate and other

August 31, 2024

November 25, 2023

Identifiable Assets

March 1, 2025

November 30, 2024

Retail - Company-owned stores

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

MARCH 1, 2025

(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 $ 23,700 and $ 22,788 as of August 31, 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 nine months ended August 31, 2024.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 25,352 and $ 25,742 as of March 1, 2025 and November 30, 2024, respectively.

Substantially all of the customer deposits held as of November 30, 2024 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 1, 2025.

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 31, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $ 2,559 and $ 2,245 , respectively.

At March 1, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,805 and $ 2,928 , 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 and nine months ended August 31, 2024 and August 26, 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 months ended March 1, 2025 and March 2, 2024, excluding intercompany transactions between our segments, is a follows:

Quarter Ended

August 31, 2024

August 26, 2023

Bassett Custom Upholstery

Bassett Leather

Bassett Custom Wood

Bassett Casegoods

Accessories, mattresses and other (1)

Consolidated net sales of furniture and accessories

Nine Months Ended

August 31, 2024

August 26, 2023

March 1, 2025

March 2, 2024

Bassett Custom Upholstery

5 unchanged sentences

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

Corporate and other for the three and nine months ended August 31, 2024 and August 26, 2023 includes the sales of Noa Home.

Corporate and other for the three months ended March 2, 2024 includes the sales of Noa Home, which was closed during fiscal 2024 and substantially liquidated as of November 30, 2024.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

Changes to Stockholders ’ Equity

The following changes in our stockholders’ equity occurred during the three and nine months ended August 31, 2024 and August 26, 2023:

The following changes in our stockholders’ equity occurred during the three months ended March 1, 2025 and March 2, 2024:

Quarter Ended

Nine Months Ended

August 31, 2024

August 26, 2023

August 31, 2024

August 26, 2023

March 1, 2025

March 2, 2024

Common Stock:

20 unchanged sentences

End of period

Accumulated Other Comprehensive Loss:

Accumulated Other Comprehensive Income (Loss):

Beginning of period

2 unchanged sentences

End of period

The balance of cumulative translation adjustments, net of tax, was a net loss of $ 684 and $ 486 at August 31, 2024 and November 25, 2023, respectively.

The balance of cumulative translation adjustments, net of tax, was zero at both March 1, 2025 and November 30, 2024.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

Recent Accounting Pronouncements

In June 2022, the FASB issued Accounting Standards Update No.

2022-03 – Fair Value Measurement (Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, to clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security.

The amendments in ASU 2022-03 clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.

The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction.

In addition, the amendments in ASU 2022-03 require certain additional disclosures related to investments in equity securities subject to contractual sale restrictions.

The amendments in ASU 2022-03 will become effective for us as of the beginning of our 2025 fiscal year.

Early adoption is permitted.

As of August 31, 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.

13 unchanged sentences

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

In November 2024, the FASB issued Accounting Standards Update 2024-03 – Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic ASC 220-40) Disaggregation of Income Statement Expenses.

The amendments in this ASU require a public business entity to disclose specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods.

The objective of the disclosure requirements is to provided disaggregated information about a public business entity's expenses to help investors (a) better understand the entity's performance, (b) better assess the entity's prospects for future cash flows, and (c) compare an entity's performance over time and with that of other entities.

The amendments in ASU 2024-03 will become effective for us for our 2028 fiscal year and for interim periods beginning with our 2029 fiscal year.

Early adoption is permitted.

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 31, 2024

MARCH 1, 2025

(Dollars in thousands except share and per share data)

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What changed 10-Q

Item 1. Financial Statements