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Item 1. Financial Statements

2025-07-10 compared with 2025-04-03 · 136 added, 113 removed, 326 unchanged (43% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

FOR THE PERIODS ENDED MAY 31, 2025 AND JUNE 1, 2024 – UNAUDITED

(In thousands)

Three Months Ended

March 1, 2025

March 2, 2024

Six Months Ended

Operating activities:

2 unchanged sentences

Depreciation and amortization

Asset impairment charges

Inventory valuation charges

Deferred income taxes

1 unchanged sentence

Accounts receivable

Other current assets

Recoverable income taxes and other current assets

Right of use assets under operating leases

2 unchanged sentences

Obligations under operating leases

Net cash used in operating activities

Net cash provided by (used in) operating activities

Investing activities:

16 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

5 unchanged sentences

In accordance with ASC Topic 810, we have evaluated our licensees and certain other entities to determine whether they are variable interest entities (“VIEs”) of which we are the primary beneficiary and thus would require consolidation in our financial statements.

To date we have concluded that none of our licensees represent VIEs.

As of and for the periods ended May 31, 2025 and June 1, 2024 and as of November 30, 2024 we have concluded that none of the evaluated entities 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.

We exclude from revenues amounts collected from customers for sales tax.

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 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.

Accordingly, the information presented below includes 26 weeks of operations for the six months ended May 31, 2025 as compared with 27 weeks included in the six months ended June 1, 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 months ended March 1, 2025 are not necessarily indicative of results for the full fiscal year.

The results of operations for the three and six months ended May 31, 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.

Certain prior period amounts have been reclassified to conform to current period presentation.

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 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.

Our effective tax rate was 26.1 % and 26.8 % for the three and six months ended May 31, 2025, respectively.

The effective rates for the three and six months ended May 31, 2025 differ 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 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.

Non-cash Investing and Financing Activity

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.

Supplemental Cash Flow Information

During the six months ended May 31, 2025 and June 1, 2024, $ 378 and $ 3,476 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

Taxes paid net of refunds received during the six months ended May 31, 2025 and June 1, 2024 was $ 383 and $ 48 , respectively.

Interest paid during the six months ended May 31, 2025 and June 1, 2024 was $ 14 and $ 10 , respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

Lessor Income

We receive lease income as the lessor on a small number of leased premises which we have subleased to other tenants.

Sublease income for closed stores and warehouses is included in selling general and administrative expense in the accompanying condensed consolidated statements of operations and was $ 148 and $ 251 for the three and six months ended May 31, 2025, respectively, and $ 103 and $ 205 for the three and six months ended June 1, 2024.

We also sublease one location to a licensee.

This sublease income is included in other loss, net in the accompanying condensed consolidated statements of operations and was $ 114 and $ 228 for the three and six months ended May 31, 2025, respectively, and $ 114 and $ 228 for the three and six months ended June 1, 2024, respectively.

Financial Instruments and Investments

1 unchanged sentence

Our financial instruments include cash and cash equivalents, short-term investments in certificates of deposit (CDs), accounts receivable, and accounts payable.

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 $ 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 %.

Because of their short maturities, the carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value.

Our short-term investments of $ 20,385 and $ 20,360 at May 31, 2025 and November 30, 2024, respectively, consisted of CDs.

At May 31, 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 three 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.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at May 31, 2025 and November 30, 2024 approximates their fair value.

Our investment in CDs at May 31, 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 CD has a six-month term maturing in October 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.

2 unchanged sentences

Accounts receivable consists of the following:

March 1, 2025

November 30, 2024

Gross accounts receivable

Allowance for doubtful accounts

Allowance for credit losses

Accounts receivable, net

3 unchanged sentences

Actual credit losses could differ from those estimates.

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

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)

Activity in the allowance for credit losses for the six months ended May 31, 2025 was as follows:

Balance at November 30, 2024

1 unchanged sentence

Write-offs against allowance

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.

Balance at May 31, 2025

Substantially all of the accounts receivable written off against the reserve during the three and six months ended May 31, 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:

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

(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 March 1, 2025

Balance at May 31, 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:

March 1, 2025

Gross Carrying Amount

Accumulated Amortization

Intangible Assets, Net

Gross Carrying

Intangibles subject to amortization

1 unchanged sentence

Intangibles not subject to amortization:

Total goodwill and other intangible assets

Total intangible assets

November 30, 2024

5 unchanged sentences

Intangibles not subject to amortization:

Total goodwill and other intangible assets

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 months ended March 1, 2025 and March 2, 2024 was as follows:

Quarter Ended

March 1, 2025

March 2, 2024

Intangible asset amortization expense

Total intangible assets

There were no changes in the carrying amounts of goodwill during the three and six months ended May 31, 2025 or June 1, 2024.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

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:

The carrying amounts of goodwill by reportable segment, including accumulated impairment losses, at both May 31, 2025 and November 30, 2024 were as follows:

Corporate and other

Total goodwill

Amortization expense associated with intangible assets during the three and six months ended May 31, 2025 and June 1, 2024 was as follows:

Quarter Ended

Six Months Ended

Intangible asset amortization expense

Estimated future amortization expense for intangible assets that exist at May 31, 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 March 1, 2025, we had $ 5,682 outstanding under standby letters of credit against our line.

At May 31, 2025, we had $ 8,182 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 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 .

Since our used commitment was less than $ 8,250 at May 31, 2025, we were not required to test the Consolidated Fixed Charge Coverage Ratio or the Consolidated Lease Adjusted Leverage to EBITDAR Ratio.

However, had we been required to test those ratios, we would have been in full compliance.

Our availability under the Credit Facility is currently $ 16,818 .

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)

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 $ 5,600 and $ 5,557 as of March 1, 2025 and November 30, 2024, respectively.

The liability for the Supplemental Plan was $ 5,578 and $ 5,557 as of May 31, 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 $ 1,381 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 liability for the LTC Awards was $ 1,401 and $ 1,360 as of May 31, 2025 and November 30, 2024, respectively.

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

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 months ended March 1, 2025 and March 2, 2024 are as follows:

Components of net periodic pension costs for our defined benefit plans for the three and six months ended May 31, 2025 and June 1, 2024 are as follows:

Quarter Ended

March 1, 2025

March 2, 2024

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 $ 1,560 and $ 1,568 as of March 1, 2025 and November 30, 2024, respectively.

Our liability under this plan was $ 1,584 and $ 1,601 as of May 31, 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 $ 3,540 and $ 3,486 as of March 1, 2025 and November 30, 2024, respectively.

Our liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 3,373 and $ 3,486 as of May 31, 2025 and November 30, 2024, 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)

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 1, 2025

November 30, 2024

2 unchanged sentences

Total deferred compensation liability

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

We recognized expense under our deferred compensation arrangements during the three and six months ended May 31, 2025 and June 1, 2024 as follows:

Quarter Ended

March 1, 2025

March 2, 2024

Six Months Ended

Deferred compensation expense

Other Gains and Losses

For the three and six months ended May 31, 2025, selling, general and administrative expenses include a gain of $ 698 for proceeds received from a business interruption insurance claim arising from the previously disclosed cybersecurity incident which occurred during the third quarter of fiscal 2024.

$ 569 of the gain is allocated to our retail segment and $ 129 is allocated to our wholesale segment.

These insurance proceeds are included in cash provided by operating activities in the accompanying condensed consolidated statement of cash flows for the six months ended May 31, 2025.

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 decided to cease operations.

$ 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.

All remaining Noa Home assets were substantially liquidated as of November 30, 2024.

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 .

Restructuring Reserve

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

At May 31, 2025 and November 30, 2024, $ 0 and $ 432 , respectively, of the accrual remained in other current liabilities.

As of May 31, 2025, the cumulative total cost incurred for this restructuring was $ 440 , of which $ 190 was incurred by our retail segment, $ 83 by our wholesale segment, and $ 167 was charged to corporate and other.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

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 $ 4,885 and $ 5,131 at March 1, 2025 and November 30, 2024, respectively.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 4,639 and $ 5,131 at May 31, 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 March 1, 2025 and November 30, 2024 was not material.

The fair value of these lease guarantees (an estimate of the cost to the Company to perform on the guarantee) at May 31, 2025 and November 30, 2024 was not material.

Lease Commitments

At May 31, 2025, we had commitments for two leases of real property which are expected to commence by the end of fiscal 2025.

Together, these leases call for total annual rents averaging approximately $ 702 per year for an initial term of ten years.

Both leases have two five -year renewal options.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

Earnings (Loss) Per Share

Basic earnings (loss) per common share is computed by dividing net income (loss) allocable to common shares by the weighted average number of common shares outstanding, adjusted for participating securities, if any.

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

Weighted Average

For the quarter ended March 1, 2025:

For the quarter ended May 31, 2025:

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

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

For the six months ended May 31, 2025:

Basic earnings per share

Add effect of dilutive securities:

Restricted shares

Diluted earnings per share

For the six months ended June 1, 2024:

Basic loss per share

Add effect of dilutive securities:

Restricted shares*

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 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:

For the three and six months ended May 31, 2025 and June 1, 2024, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

March 1, 2025

March 2, 2024

Six Months Ended

Unvested shares

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

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 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.

As of and for the three and six months ended June 1, 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.

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

1 unchanged sentence

Quarter Ended

March 1, 2025

March 2, 2024

Six Months Ended

Sales Revenue

10 unchanged sentences

Inter-company elimination

Asset impairment charges (see Note 9)

Consolidated income (loss) from operations

9 unchanged sentences

Identifiable Assets

March 1, 2025

November 30, 2024

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

5 unchanged sentences

All wholesale and retail revenues are recorded net of estimated returns and allowances based on historical patterns.

Our contract assets, which consist of our accounts receivable, net and are associated with our wholesale segment, were $ 12,883 , $ 13,181 and $ 13, 736 at May 31, 2025, November 30, 2024 and November 25, 2023.

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 $ 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.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 24,029 , $ 25,742 and $ 22,788 as of May 31, 2025, November 30, 2024 and November 25, 2023, respectively.

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 1, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,805 and $ 2,928 , respectively.

At May 31, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,663 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 months ended March 1, 2025 and March 2, 2024, 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 May 31, 2025 and June 1, 2024, excluding intercompany transactions between our segments, is a follows:

Quarter Ended

March 1, 2025

March 2, 2024

Corporate & Other

Corporate & Other (2)

Bassett Custom Upholstery

4 unchanged sentences

Consolidated net sales of furniture and accessories

Six Months Ended

Corporate & Other

Corporate & Other (2)

Bassett Custom Upholstery

Bassett Leather

Bassett Custom Wood

Bassett Casegoods

Accessories, mattresses and other (1)

Consolidated net sales of furniture and accessories

(1) 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 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.

(2) Corporate and other for the three and six months ended June 1, 2024 includes the sales of Noa Home, which was acquired on September 2, 2022, 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

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 months ended March 1, 2025 and March 2, 2024:

The following changes in our stockholders’ equity occurred during the three and six months ended May 31, 2025 and June 1, 2024:

Quarter Ended

March 1, 2025

March 2, 2024

Six Months Ended

Common Stock:

18 unchanged sentences

Purchase and retirement of common stock

Cash dividends declared

Cash dividends declared and paid

End of period

4 unchanged sentences

End of period

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

The balance of cumulative translation adjustments, net of tax, was zero at both May 31, 2025 and November 30, 2024.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

MARCH 1, 2025

(Dollars in thousands except share and per share data)

23 unchanged sentences

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

MARCH 1, 2025

(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