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Item 1. Financial Statements

2025-10-08 compared with 2025-07-10 · 149 added, 102 removed, 360 unchanged (41% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

FOR THE PERIODS ENDED AUGUST 30, 2025 AND AUGUST 31, 2024 – UNAUDITED

(In thousands)

Six Months Ended

Nine Months Ended

August 30, 2025

August 31, 2024

Operating activities:

31 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 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.

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.

As of and for the periods ended August 30, 2025 and August 31, 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.

2 unchanged sentences

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 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.

Accordingly, the information presented below includes 39 weeks of operations for the nine months ended August 30, 2025 as compared with 40 weeks included in the nine months ended August 31, 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 six months ended May 31, 2025 are not necessarily indicative of results for the full fiscal year.

The results of operations for the three and nine months ended August 30, 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.

2 unchanged sentences

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 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.

Our effective tax rate was 26.8 % and 26.8 % for the three and nine months ended August 30, 2025, respectively.

The effective rates for the three and nine months ended August 30, 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 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.

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

In July of 2025, new tax legislation was enacted under the One Big Beautiful Bill Act (the “Act”).

While the Act includes a wide range of provisions that could impact our financial results in future periods, we do not expect the passage of the Act to have a material impact on our results of operations or financial condition in the current fiscal year.

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.

During the nine months ended August 30, 2025 and August 31, 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 nine months ended August 30, 2025 and August 31, 2024 was $ 388 and $ 48 , respectively.

Interest paid during the nine months ended August 30, 2025 and August 31, 2024 was $ 25 and $ 16 , respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

1 unchanged sentence

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.

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 $ 149 and $ 399 for the three and nine months ended August 30, 2025, respectively, and $ 103 and $ 308 for the three and nine months ended August 31, 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.

This sublease income is included in other loss, net in the accompanying condensed consolidated statements of operations and was $ 114 and $ 343 for the three and nine months ended August 30, 2025, respectively, and $ 114 and $ 343 for the three and nine months ended August 31, 2024, respectively.

Financial Instruments and Investments

2 unchanged sentences

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 %.

Our short-term investments of $ 20,221 and $ 20,360 at August 30, 2025 and November 30, 2024, respectively, consisted of CDs.

At August 30, 2025, the CDs had original terms averaging seven months, bearing interest at rates ranging from 1.0 % to 4.4 % and the weighted average remaining time to maturity was approximately five months and the weighted average yield of the CDs was approximately 3.8 %.

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 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.

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

Our investment in CDs at August 30, 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.

4 unchanged sentences

Accounts receivable consists of the following:

August 30, 2025

November 30, 2024

4 unchanged sentences

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

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

Judgments are made with respect to the collectability of accounts receivable within each pool based on historical experience, current payment practices and current economic conditions.

Actual credit losses could differ from those estimates.

We have elected to use the practical expedient under ASC Topic 326 which allows us to assume that current conditions as of the balance sheet date do not change over the expected life of the receivables, which is generally ninety days or less (see Note 16 regarding the early adoption of ASU 2025-05).

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(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:

Activity in the allowance for credit losses for the nine months ended August 30, 2025 was as follows:

Balance at November 30, 2024

Additions charged to expense

Net recoveries credited to expense

Write-offs against allowance

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.

Balance at August 30, 2025

Substantially all of the accounts receivable written off against the reserve during the three and nine months ended August 30, 2025 originated during fiscal 2024.

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

4 unchanged sentences

Inventories were comprised of the following:

August 30, 2025

November 30, 2024

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

3 unchanged sentences

Additions charged to expense

Balance at May 31, 2025

Balance at August 30, 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.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following:

Gross Carrying

Intangibles subject to amortization

Customer relationships

Intangibles not subject to amortization:

Total intangible assets

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

Corporate and other

Total goodwill

Intangible Assets

Intangible assets at August 30, 2025 and November 30, 2024 consisted of the following:

August 30, 2025

November 30, 2024

Gross Carrying Amount

Accumulated Amortization

Intangible Assets, Net

Intangibles subject to amortization:

Customer relationships

Less accumulated amortization

Intangibles subject to amortization, net

Intangibles not subject to amortization:

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.

Amortization expense associated with intangible assets during the three and nine months ended August 30, 2025 and August 31, 2024 was as follows:

Quarter Ended

Nine Months Ended

August 30, 2025

August 31, 2024

August 30, 2025

August 31, 2024

Intangible asset amortization expense

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

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:

Estimated future amortization expense for intangible assets that exist at August 30, 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 May 31, 2025, we had $ 8,182 outstanding under standby letters of credit against our line.

At August 30, 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 May 31, 2025, we were not required to test the Consolidated Fixed Charge Coverage Ratio or the Consolidated Lease Adjusted Leverage to EBITDAR Ratio.

Since our used commitment was less than $ 8,250 at August 30, 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 $ 5,578 and $ 5,557 as of May 31, 2025 and November 30, 2024, respectively.

The liability for the Supplemental Plan was $ 5,588 and $ 5,557 as of August 30, 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 $ 1,401 and $ 1,360 as of May 31, 2025 and November 30, 2024, respectively.

The liability for the LTC Awards was $ 1,421 and $ 1,360 as of August 30, 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:

August 30, 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 six months ended May 31, 2025 and June 1, 2024 are as follows:

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

Components of net periodic pension costs for our defined benefit plans for the three and nine months ended August 30, 2025 and August 31, 2024 are as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

August 30, 2025

August 31, 2024

August 30, 2025

August 31, 2024

Interest cost

6 unchanged sentences

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

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

Our liability under this plan was $ 1,584 and $ 1,601 as of August 30, 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 $ 3,373 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 liability under this plan, including both accrued Company contributions and participant salary deferrals, was $ 3,616 and $ 3,486 as of August 30, 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 30, 2025

November 30, 2024

2 unchanged sentences

Total deferred compensation liability

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

We recognized expense under our deferred compensation arrangements during the three and nine months ended August 30, 2025 and August 31, 2024 as follows:

Quarter Ended

Six Months Ended

Nine Months Ended

August 30, 2025

August 31, 2024

August 30, 2025

August 31, 2024

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.

For the nine months ended August 30, 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:

These insurance proceeds are included in cash provided by operating activities in the accompanying condensed consolidated statement of cash flows for the nine months ended August 30, 2025.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

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.

As of August 30, 2025, this liability has been settled with no remaining minimum charges due.

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.

7 unchanged sentences

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

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

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

As of August 30, 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.

Commitments and Contingencies

2 unchanged sentences

Lease Guarantees

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.

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 4,393 and $ 5,131 at August 30, 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 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.

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

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

Lease Commitments

At August 30, 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.

Earnings (Loss) Per Share

2 unchanged sentences

Weighted Average

For the quarter ended May 31, 2025:

For the quarter ended August 30, 2025:

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the quarter ended June 1, 2024:

For the quarter ended August 31, 2024:

Basic loss per share

2 unchanged sentences

Diluted loss per share

For the six months ended May 31, 2025:

For the nine months ended August 30, 2025:

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the six months ended June 1, 2024:

For the nine months ended August 31, 2024:

Basic loss per share

3 unchanged sentences

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

For the three and nine months ended August 30, 2025 and August 31, 2024, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

Six Months Ended

Nine Months Ended

August 30, 2025

August 31, 2024

August 30, 2025

August 31, 2024

Unvested shares

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 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 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.

As of and for the three and nine months ended August 31, 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

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

1 unchanged sentence

Quarter Ended

Six Months Ended

Nine Months Ended

August 30, 2025

August 31, 2024

August 30, 2025

August 31, 2024

Sales Revenue

11 unchanged sentences

Asset impairment charges (see Note 10)

Loss on contract abandonment (see Note 10)

Consolidated income (loss) from operations

Interest income

Other loss, net

Other income (loss), net

Consolidated income (loss) before income taxes

5 unchanged sentences

Corporate and other

Identifiable Assets

August 30, 2025

November 30, 2024

Identifiable Assets

Retail - Company-owned stores

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 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.

Our accounts receivable, net, which are associated with our wholesale segment, were $ 13,135 , $ 13,181 and $ 13,736 at August 30, 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 $ 24,029 , $ 25,742 and $ 22,788 as of May 31, 2025, November 30, 2024 and November 25, 2023, 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 six months ended May 31, 2025.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 23,149 , $ 25,742 and $ 22,788 as of August 30, 2025, November 30, 2024 and November 25, 2023, respectively.

Similarly, substantially all of the customer deposits held at August 30, 2025 are expected to be recognized as revenue within the next twelve months.

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 May 31, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,663 and $ 2,928 , respectively.

At August 30, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,537 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 six months ended May 31, 2025 and June 1, 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 nine months ended August 30, 2025 and August 31, 2024, excluding intercompany transactions between our segments, is a follows:

Quarter Ended

Corporate & Other

Corporate & Other (2)

August 30, 2025

August 31, 2024

Bassett Custom Upholstery

4 unchanged sentences

Consolidated net sales of furniture and accessories

Six Months Ended

Corporate & Other

Corporate & Other (2)

Nine Months Ended

August 30, 2025

August 31, 2024

Bassett Custom Upholstery

5 unchanged sentences

(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.

(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.

(2) Corporate and other for the three and nine months ended August 31, 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

AUGUST 30, 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 six months ended May 31, 2025 and June 1, 2024:

The following changes in our stockholders’ equity occurred during the three and nine months ended August 30, 2025 and August 31, 2024:

Quarter Ended

Six Months Ended

Nine Months Ended

August 30, 2025

August 31, 2024

August 30, 2025

August 31, 2024

Common Stock:

25 unchanged sentences

End of period

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

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

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

AUGUST 30, 2025

(Dollars in thousands except share and per share data)

7 unchanged sentences

The amendments in ASU 2023-07 will become effective for us for our 2025 fiscal year and for interim periods beginning with our 2026 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.

While we do not expect that this guidance will have a material impact upon our financial position and results of operations, it will result in a significant change to our segment disclosures for the year ending November 29, 2025.

In December 2023, the FASB issued Accounting Standards Update 2023-09 – Income Taxes (Topic ASC 740) Income Taxes.

10 unchanged sentences

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

In July 2025, the FASB issued Accounting Standards Update 2025-05 – Financial Instruments – Credit Losses (Topic ASC 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets.

The amendments in this ASU provide entities with a practical expedient they may elect to use when developing an estimate of expected credit losses on current accounts receivable and current contract asset balances arising from transactions accounted for under Topic ASC 606 – Revenue from Contracts with Customers.

Under this practical expedient, entities may elect to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset.

The amendments in ASU 2025-05 become effective for fiscal years and for interim periods beginning after December 15, 2025, and early adoption is permitted.

We have elected to adopt ASU 2025-05 beginning with the third quarter of fiscal 2025 and have elected to utilize the practical expedient provided therein.

The adoption of this ASU did not have a material impact on our financial position or results of operations.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

AUGUST 30, 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