What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-05 compared with 2025-02-10 · 232 added, 292 removed, 717 unchanged (42% of the section changed)

1 unchanged sentence

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

Bassett Furniture Industries, Incorporated and Subsidiaries

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Bassett Furniture Industries, Incorporated (a Virginia corporation) and subsidiaries (the “Company”) as of November 29, 2025, the related consolidated statement of operations, comprehensive income (loss), cash flows, and stockholders’ equity for the year ended November 29, 2025, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of November 29, 2025, and the results of its operations and its cash flows for the year ended November 29, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of November 29, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 5, 2026 expressed an unqualified opinion.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

We determined that there are no critical audit matters.

/s/ Grant Thornton LLP

We have served as the Company’s auditor since 2025.

Charlotte, North Carolina

February 5, 2026

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Bassett Furniture Industries, Incorporated and Subsidiaries

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Bassett Furniture Industries, Incorporated and subsidiaries (the Company) as of November 30, 2024 and November 25, 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended November 30, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 30, 2024 and November 25, 2023, and the results of its operations and its cash flows for each of the three years in the period ended November 30, 2024, in conformity with U.S.

We have audited the accompanying consolidated balance sheet of Bassett Furniture Industries, Incorporated and subsidiaries (the Company) as of November 30, 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the two years in the period ended November 30, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 30, 2024, and the results of its operations and its cash flows for each of the two years in the period ended November 30, 2024, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of November 30, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 10, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

9 unchanged sentences

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosures to which it relates.

Measurement of Wholesale Reserves for Excess and Obsolete Inventories

Description of the Matter

At November 30, 2024, the Company’s inventories were $54.9 million.

As discussed in Note 2 and Note 6 to the consolidated financial statements, cost for wholesale, domestic manufactured furniture inventories is determined using the last-in, first-out (“LIFO”) method and are stated at the lower of cost or market.

The cost of imported inventories and domestic outdoor furniture products is determined using the first-in, first-out (“FIFO”) method and stated at the lower of cost or net realizable value.

Wholesale reserves for excess and obsolete inventories are determined based upon specific identification, historical write-offs, recent and projected sales trends, and, for domestic manufactured furniture, the respective valuations at LIFO.

Auditing management’s wholesale excess or obsolete inventories was complex due to the highly judgmental nature and estimation uncertainty in determining reserve percentages based on specific identification.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s determination of the wholesale reserves for excess and obsolete inventories.

For example, we tested the control over management’s review of the calculation of wholesale reserves for excess and obsolete inventories, which included their review of the significant assumptions described above.

Our audit procedures to test the reserves for wholesale excess and obsolete inventories included, among others, testing the completeness and accuracy of the underlying data used in management’s analyses, including the specific identification of inventory categories.

We evaluated the reasonableness of management’s assumptions by performing a retrospective review of historical assumptions to actual activity, including write-off history and changes in on-hand inventory quantities.

We also evaluated the Company’s reserve for wholesale excess and obsolete inventories as compared to the wholesale inventory valuation at LIFO.

We held discussions with senior financial and operational management to determine whether any strategic or operational changes in the business would impact expected demand for or related carrying value of inventory.

We also performed substantive analytical procedures designed to predict the ending inventory reserve balance using historical reserve percentages adjusted for our knowledge of current year sales and inventory levels.

We searched for and evaluated information that corroborated or contradicted the Company’s assumptions.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2002.

We served as the Company’s auditor from 2002 to 2024.

Richmond, Virginia

14 unchanged sentences

Deferred income taxes, net

Goodwill and other intangible assets

Intangible assets

Right of use assets under operating leases

13 unchanged sentences

Total long-term liabilities

Commitments and Contingencies

Commitments and Contingencies (Notes 15 and 16)

Stockholders ’ equity

1 unchanged sentence

50,000,000 shares authorized;

issued and outstanding 8,736,046 at November 30, 2024 and 8,768,221 at November 25, 2023

issued and outstanding:

8,651,054 at November 29, 2025 and 8,736,046 at November 30, 2024

Retained earnings

8 unchanged sentences

(In thousands, except per share data)

Net sales of furniture and accessories

Cost of furniture and accessories sold

Cost of goods sold

Selling, general and administrative expenses

5 unchanged sentences

Gain on revaluation of contingent consideration

Gain on sale of real estate

Income (loss) from continuing operations

Income (loss) from operations

Interest income

1 unchanged sentence

Other loss, net

Income (loss) from continuing operations before income taxes

Income (loss) before income taxes

Income tax expense (benefit)

Income (loss) from continuing operations

Discontinued operations:

Income from operations of logistical services

Gain on disposal

Income tax expense

Income from discontinued operations

Net income (loss)

Basic earnings (loss) per share:

Income (loss) from continuing operations

Income from discontinued operations

Basic earnings (loss) per share

Diluted earnings (loss) per share:

Income (loss) from continuing operations

Income from discontinued operations

Diluted earnings (loss) per share

Dividends per share

Regular dividends

Special dividend

Regular dividends per share

The accompanying notes to consolidated financial statements are an integral part of these statements.

25 unchanged sentences

Depreciation and amortization

Gain on disposal of discontinued operations

Non-cash goodwill impairment charge

1 unchanged sentence

Asset impairment charges

Net loss (gain) on disposals of property and equipment

Inventory valuation charges

7 unchanged sentences

Obligations under operating leases

Net cash provided by (used in) operating activities

Net cash provided by operating activities

Investing activities:

1 unchanged sentence

Proceeds from sales of property and equipment

Cash paid for business acquisitions, net of cash acquired

Investment in certificates of deposit

Proceeds from the maturity of certificates of deposit

Proceeds from the disposition of discontinued operations

Net cash provided by (used in) investing activities

Net cash used in investing activities

Financing activities:

22 unchanged sentences

Regular dividends ($ 0.68 per share)

Special dividend ($ 1.50 per share)

Issuance of common stock

12 unchanged sentences

Comprehensive income (loss)

Foreign currency translation adjustments, net of tax

Amortization of defined benefit plan costs, net of tax

12 unchanged sentences

Products can also be purchased by the end consumer directly from our website.

We sourced approximately 20 % of our wholesale products from various foreign countries, with the remaining volume produced at our five domestic manufacturing facilities.

In 2025 we sourced approximately 23 % of our wholesale products from various foreign countries, with the remaining volume produced at our five domestic manufacturing facilities.

Significant Accounting Policies

1 unchanged sentence

Our fiscal year ends on the last Saturday in November, which periodically results in a 53-week year.

Fiscal 2024 contained 53 weeks while fiscal 2023 and 2022 each contained 52 weeks.

The Consolidated Financial Statements include the accounts of Bassett Furniture Industries, Incorporated and our majority-owned subsidiaries in which we have a controlling interest.

Fiscal 2025 and 2023 each contained 52 weeks while fiscal 2024 contained 53 weeks.

The Consolidated Financial Statements include the accounts of Bassett Furniture Industries, Incorporated and our subsidiaries, all of which are wholly owned..

All significant intercompany balances and transactions are eliminated in consolidation.

The financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP").

Unless otherwise indicated, references in the Consolidated Financial Statements to fiscal 2024, 2023 and 2022 are to Bassett's fiscal year ended November 30, 2024, November 25, 2023 and November 26, 2022, respectively.

Unless otherwise indicated, references in the Consolidated Financial Statements to fiscal 2025, 2024 and 2023 are to Bassett's fiscal years ended November 29, 2025, November 30, 2024 and November 25, 2023, respectively.

References to the “ASC” included hereinafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board as the source of authoritative GAAP.

1 unchanged sentence

All of these licensees operate as BHF stores and are furniture retailers.

We sell furniture to these licensees, and in some cases have extended credit beyond normal terms, made lease guarantees, guaranteed loans, or loaned directly to the licensees.

We sell furniture to these licensees, and in some cases have acted as a sublessor and made lease guarantees.

We have recorded reserves for potential exposures related to these licensees.

5 unchanged sentences

We will continue to reassess the status of potential VIEs including when facts and circumstances surrounding each potential VIE change.

During the second and third quarters of fiscal 2022, we were the primary beneficiary of one VIE by virtue of our control over the activities that most significantly impacted the entity’s economic performance.

This VIE was created to affect a Section 1031 like-kind exchange involving the purchase of real property in the state of Florida and the sale of real property in the state of Texas (see Note 14).

Subsequent to the completion of the exchange transactions during the third quarter of fiscal 2022, the sole equity interest in the VIE was transferred to Bassett and the entity is now consolidated as a wholly owned subsidiary.

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

Hunt Transport Services, Inc.

The sale was completed on February 28, 2022.

Accordingly, the operations of our logistical services segment as well as the gain realized upon disposal are presented in the accompanying condensed consolidated statements of income as discontinued operations.

See Note 18 for additional information.

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

On September 2, 2022, we acquired 100 % of the capital stock of Noa Home Inc.

1 unchanged sentence

Noa Home had operations in Canada, Australia, Singapore and the United Kingdom.

Since acquisition, Noa Home has been consolidated as a wholly-owned subsidiary.

Since acquisition, Noa Home was consolidated as a wholly-owned subsidiary.

During the second quarter of fiscal 2024 we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and decided to cease operations and sell the remaining inventory in an orderly manner.

As of November 30, 2024 we have substantially completed the liquidation of Noa Home’s assets and liabilities.

See Note 3 for additional information.

As of November 30, 2024 we had substantially completed the liquidation of Noa Home’s assets and liabilities.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Some of the more significant estimates include allowances for doubtful accounts, calculation of inventory reserves, the valuation of our reporting units for the purpose of testing the carrying value of goodwill, and the valuation of our right of use assets.

Some of the more significant estimates include allowances for credit losses, calculation of inventory reserves, the valuation of our reporting units for the purpose of testing the carrying value of goodwill, and the valuation of our right of use assets.

We also utilize estimates in determining the valuation of income tax reserves, insurance reserves, and assumptions related to our post-employment benefit obligations.

1 unchanged sentence

Revenue Recognition

ASC Topic 606, Revenue from Contracts with Customers, requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services.

For our wholesale and retail segments, revenue is recognized when the risks and rewards of ownership and title to the product have transferred to the buyer.

ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services.

For our wholesale and retail segments, revenue is recognized at a point in time when the risks and rewards of ownership and title to the product have transferred to the buyer.

At wholesale, transfer occurs and revenue is recognized upon the shipment of goods to independent dealers and licensee-owned BHF stores.

We offer payment terms varying from 30 to 60 days for wholesale customers.

We offer payment terms varying from 30 to 60 days for licensees and wholesale customers.

Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns.

Our accounts receivable, net, which are associated with our wholesale segment, were $ 14,410 , $ 13,181 and $ 13,736 at November 29, 2025, November 30, 2024 and November 25, 2023, respectively.

The contracts with our licensee store owners do not provide for any royalty or license fee to be paid to us.

1 unchanged sentence

We typically collect a significant portion of the purchase price as a customer deposit upon order, with the balance typically collected upon delivery.

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

Substantially all of the customer deposits held at November 25, 2023 related to performance obligations were satisfied during fiscal 2024 and have therefore been recognized in revenue for the year ended November 30, 2024.

These deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 24,969 , $ 25,742 and $ 22,788 as of November 29, 2025, November 30, 2024 and November 25, 2023, respectively.

Substantially all of the customer deposits held at November 30, 2024 related to performance obligations that were satisfied during fiscal 2025 and have therefore been recognized in revenue for the year ended November 29, 2025.

Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns.

The estimate for returns and allowances was $ 3,970 and $ 4,883 at November 30, 2024 and November 25, 2023, respectively, and is included with other accrued liabilities in the accompanying balance sheets.

The estimate for returns and allowances was $ 2,732 , $ 3,970 and $ 4,883 at November 29, 2025, November 30, 2024 and November 25, 2023, respectively, and is included with other accrued liabilities in the accompanying balance sheets.

Some accessories sold to our retail customers are shipped directly to the customer by third-party vendors who have the responsibility for the performance obligation with respect to those items.

Because we are acting in the capacity of an agent for the vendor in these sales, we recognize the revenue net of the cost paid to the vendor.

We also sell furniture protection plans to our retail customers on behalf of a third party which is responsible for the performance obligations under the plans.

4 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 November 30, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $ 2,928 and $ 2,245 , respectively.

At November 29, 2025, November 30, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $ 2,662 , $ 2,928 and $ 2,245 , respectively.

For our accounting and reporting under ASC 606, we apply the following policy elections and practical expedients:

5 unchanged sentences

The Company considers cash on hand, demand deposits in banks and all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents.

Our short-term investments consist of certificates of deposit that have original maturities of twelve months or less but greater than three months.

Substantially all of our cash and cash equivalents are in excess of federal deposit insurance limits.

Our short-term investments consist of certificates of deposit that have original maturities of twelve months or less but greater than three months and all placed with federally insured financial institutions and are within federal deposit insurance limits.

Accounts Receivable

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

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.

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 (see Recent Accounting Pronouncements below regarding the early adoption of ASU 2025-05).

Concentrations of Credit Risk and Major Customers

Financial instruments that subject us to credit risk consist primarily of investments, accounts and notes receivable and financial guarantees.

Financial instruments that subject us to credit risk consist primarily of investments, accounts and financial guarantees.

Investments are managed within established guidelines to mitigate risks.

2 unchanged sentences

Accounts receivable, net of allowances (Note 4)

Contingent obligations under lease and loan guarantees, less amounts recognized (Note 15)

Contingent obligations under lease guarantees, less amounts recognized (Note 15)

Total credit risk exposure related to customers

5 unchanged sentences

All of our export sales are invoiced and settled in U.S.

Inventories (retail merchandise, finished goods, work in process and raw materials) accounted for under the first-in, first out (“FIFO”) method are stated at the lower of cost or net realizable value or, in the case of inventory accounted for under the last-in, first out (“LIFO”) method, at the lower of cost or market.

Inventories (finished goods, work in process, raw materials and retail merchandise) accounted for under the first-in, first out (“FIFO”) method are stated at the lower of cost or net realizable value or, in the case of inventory accounted for under the last-in, first out (“LIFO”) method, at the lower of cost or market.

Cost is determined for domestic manufactured furniture inventories using the LIFO method because we believe this methodology provides better matching of revenue and expenses.

The cost of imported inventories as well as Lane Venture, Bassett Outdoor and Noa Home product inventories are determined on a first-in, first-out (“FIFO”) basis.

The cost of imported inventories as well as Lane Venture and Bassett Outdoor product inventories are determined on a first-in, first-out (“FIFO”) basis.

Inventories accounted for under the LIFO method represented 46 % and 50 % of total inventory before reserves at November 29, 2025 and November 30, 2024, respectively.

16 unchanged sentences

However, if based on our qualitative assessment we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we will proceed with performing the quantitative evaluation process.

For the annual test of goodwill performed as of the beginning of the fourth quarter of fiscal 2024, we performed the qualitative assessment as described above with respect to our upholstery reporting unit and concluded that there was no impairment of goodwill.

For the annual test of goodwill performed as of the beginning of the fourth quarter of fiscal 2023, we performed the qualitative assessment as described above with respect to our upholstery reporting unit and concluded that there was no impairment of the goodwill allocated to that reporting unit as of November 25, 2023.

However, with respect to our Noa Home reporting unit, we proceeded to the quantitative test and concluded that the goodwill allocated to that reporting unit as of November 25, 2023 was fully impaired.

For the annual test of goodwill performed as of the beginning of the fourth fiscal quarter of 2022, we performed the qualitative assessment as described above and concluded that there was no impairment of our goodwill as of November 26, 2022.

For the annual test of goodwill performed as of the beginning of the fourth quarter of fiscal 2025, 2024 and 2023 we performed the qualitative assessment as described above with respect to our upholstery reporting unit and concluded that there was no impairment of goodwill.

With respect to our former Noa Home reporting unit, for the annual test of goodwill as of the beginning of the fourth quarter of fiscal 2023 we proceeded to the quantitative test and concluded that the goodwill allocated to that reporting unit as of November 25, 2023 was fully impaired.

The quantitative evaluation compares the carrying value of each reporting unit that has goodwill with the estimated fair value of the respective reporting unit.

7 unchanged sentences

See Note 7 for additional information regarding the results of our goodwill impairment test performed as of the beginning of the fourth quarter of fiscal 2023.

Effective as of the beginning of fiscal 2020, we adopted ASU 2016-02, Leases (Topic 842) and all related amendments.

We account for leases in accordance with ASC Topic 842, Leases .

The guidance requires lessees to recognize substantially all leases on their balance sheet as a right-of-use (“ROU”) asset and a lease liability.

7 unchanged sentences

As a result, for purposes of measuring our ROU asset and lease liability, we determine our incremental borrowing rate by applying a spread above the U.S.

Treasury borrowing rates.

Treasury borrowing rates which we believe approximates the rate we would get if borrowing on a collateralized basis based on information available at the commencement date.

In the case an interest rate is implicit in a lease we will use that rate as the discount rate for that lease.

1 unchanged sentence

Due to the variable nature of these costs, they are not included in the measurement of the ROU asset and lease liability.

We adopted the standard utilizing the transition election to not restate comparative periods for the impact of adopting the standard and recognizing the cumulative impact of adoption in the opening balance of retained earnings.

We elected the package of transition expedients available for expired or existing contracts, which allowed the carry-forward of historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs.

In addition, we have elected the practical expedient to not separate lease and non-lease components when determining the ROU asset and lease liability and have elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements.

We have also elected the hindsight practical expedient to determine the lease term for existing leases.

In our application of hindsight, we evaluated the performance of the leased stores and the associated markets in relation to our overall real estate strategies, which resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term.

We have made an accounting policy election to not recognize ROU assets and lease liabilities on the balance sheet for those leases with initial terms of one year or less and instead such lease obligations will be expensed on a straight-line basis over the lease term.

43 unchanged sentences

Refer to the supplemental lease disclosures in Note 15 for cash flow impacts of leasing transactions during fiscal 2025, 2024 and 2023.

At November 30, 2024, $ 273 of our fiscal 2024 purchases of property and equipment were unpaid and included in accounts payable in the accompanying balance sheet.

At November 29, 2025 and November 30, 2024, $ 34 and $ 273 , respectively, of our fiscal 2025 and 2024 purchases of property and equipment were unpaid and included in accounts payable in the accompanying balance sheets.

Otherwise, there were no material non-cash investing or financing activities during fiscal 2025, 2024 or 2023.

Interest paid during fiscal 2025, 2024 and 2023 was $ 36 , $ 21 and $ 22 , respectively.

See Note 13 for taxes paid net of refunds received.

Recent Accounting Pronouncements

Recent Pronouncements Not Yet Adopted

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

Recently Adopted Pronouncements

Effective as of the beginning of fiscal 2025, we adopted Accounting Standards Update No.

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

3 unchanged sentences

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 November 30, 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.

As of and for the year ended November 29, 2025 we do not hold any investments in equity securities, therefore the adoption of this guidance did not have an impact upon our financial position or 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 as of June 1, 2025 did not have a material impact on our financial position or results of operations.

Effective November 29, 2025, we adopted Accounting Standards Update 2023-07 – Segment Reporting (Topic ASC 740) Improvements to Reportable Segment Disclosures.

The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

3 unchanged sentences

The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss.

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.

The enhanced disclosures required by ASU 2023-07 are reflected in our segment disclosures in Note 18.

The adoption of this guidance related solely to disclosures and did not have an impact upon our financial position or results of operations.

Recent Pronouncements Not Yet Adopted

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

2 unchanged sentences

The amendments in ASU 2023-09 will become effective for us as of the beginning of our 2026 fiscal year.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

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

1 unchanged sentence

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 objective of the disclosure requirements is to provide 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.

1 unchanged sentence

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

Business Combinations

On September 2, 2022, we acquired 100 % of the capital stock of Noa Home, a mid-priced e-commerce furniture retailer headquartered in Montreal, Canada.

Noa Home had operations in Canada, Australia, Singapore and the United Kingdom.

The initial purchase price (denominated in Canadian dollars) of approximately C$ 7,700 included cash payments of C$ 2,000 paid to the co-founders of Noa Home and approximately C$ 5,700 for the repayment of existing debt owed by Noa Home.

Per the terms of the agreement at the acquisition date, the Noa Home co-founders also had the opportunity to receive additional cash payments totaling approximately C$ 1,330 per year for the three fiscal years following the year of acquisition based on established increases in net revenues and achieving certain internal EBITDA goal.

Under the acquisition method of accounting, the fair value of the consideration transferred was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date with the remaining unallocated amount recorded as goodwill.

The allocation of the purchase price (translated into U.S.

dollars as of the acquisition date) is as follows:

Fair value of consideration transferred in exchange for 100% of Noa Home:

Fair value of contingent consideration payable

Total fair value of consideration paid or payable

Allocation of the fair value of consideration transferred:

Identifiable assets acquired:

Other current assets

Property & equipment

Intangible asset - trade name

Total identifiable assets acquired

Liabilities assumed:

Accounts payable

Customer deposits

Other current liabilities and accrued expenses

Total liabilities assumed

Net identifiable assets acquired

Total net assets acquired

Goodwill was determined based on the residual difference between the fair value of the consideration transferred and the value assigned to the tangible and intangible assets and liabilities recognized in connection with the acquisition and is deductible for US tax purposes.

Among the factors that contributed to a purchase price resulting in the recognition of goodwill were the expected synergies arising from combining the Company’s manufacturing and distribution capabilities with Noa Home’s position in the international e-commerce market for home furnishings and accessories.

As part of our annual test for impairment of goodwill as of the beginning of the fourth quarter of fiscal 2023, all of the goodwill recognized at acquisition was fully impaired.

See Note 8 for additional information regarding the impairment.

A portion of the fair value of the consideration transferred in the amount of $ 1,929 was assigned to the identifiable intangible asset associated with the Noa Home trade name.

At the time of acquisition, this intangible asset was considered to have an indefinite life and therefore was not amortized but was tested for impairment annually or between annual tests if an indicator of impairment existed.

During the second quarter of fiscal 2024 we concluded that Hoa Home was not likely to achieve profitability in the foreseeable future and decided to cease operations by selling the remaining inventory in an orderly fashion through the end of fiscal 2024.

Therefore, at the end of the second quarter of fiscal 2024 we fully impaired the trade name intangible asset, which at the time of the impairment had a carrying value of $ 1,827 reflecting currency translation adjustments through the date of the impairment.

The fair values of consideration transferred and net assets acquired were determined using a combination of Level 2 and Level 3 inputs as specified in the fair value hierarchy in ASC 820, Fair Value Measurements and Disclosures .

Subsequent to the acquisition date, the parties concluded that the targets originally set forth by which the Noa Home co-founders were to earn the contingent consideration would likely not be met within the initially anticipated time frame.

Therefore, we have agreed to replace the contingent consideration with two fixed payments of C$ 200 each, the first of which was paid in June of 2023 with the second paid in December of 2024.

As a result of the write-down of the contingent consideration payable that was recognized at the acquisition date, we recorded a gain of $ 1,013 during fiscal 2023.

The pro forma impact of the acquisition has not been presented because it was not material to our consolidated results of operations for the fiscal year ended November 26, 2022.

Financial Instruments, Investments and Fair Value Measurements

4 unchanged sentences

At November 29, 2025, the weighted average remaining time to maturity of the CDs was approximately three months and the weighted average yield of the CDs was approximately 4.0 %.

Except as noted below, each CD is placed with a federally insured financial institution and all deposits are within Federal deposit insurance limits.

As the CDs mature, we expect to reinvest them in CDs of similar maturities of up to one year.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at November 29, 2025 and November 30, 2024 approximates their fair value.

Our investment in CDs at 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, an interest rate of 2.0 % and 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.

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

This CD was pledged as security for the merchant services agreement.

The CD, which was in excess of federal deposit insurance limits, had a six-month term which was renewed through October of 2025 and an interest rate of 2.0 %.

The requirement to maintain the pledge was waived prior to the maturity of the CD, therefore it was allowed to mature and the funds were returned to cash and cash equivalents.

Fair Value Measurement

10 unchanged sentences

Our primary non-recurring fair value estimates typically involve the following:

business acquisitions (Note 3) which involve a combination of Level 2 and Level 3 inputs to determine the fair value of contingent consideration and net assets acquired, including identified intangible assets;

goodwill impairment testing (Note 7), which involves Level 3 inputs;

12 unchanged sentences

Balance, end of the year

Substantially all of the accounts receivable written off against the reserve during the year ended November 29, 2025 orginated during fiscal 2024.

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

32 unchanged sentences

Balance at November 30, 2024

Property and Equipment

Additions charged to expense

Balance at November 29, 2025

Property and Equipment, Net

Property and equipment consist of the following:

5 unchanged sentences

The net book value of our property and equipment by reportable segment is a follows:

Retail - Company-owned stores

Corporate and other

Total property and equipment, net

Depreciation expense associated with the property and equipment shown above was included in income from operations in our consolidated statements of operations as follows:

Depreciation expense associated with the property and equipment shown above was included in income (loss) from operations in our consolidated statements of operations as follows:

Cost of goods sold (wholesale segment)

5 unchanged sentences

Total depreciation expense included in income from operations

Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following:

November 30, 2024

Intangibles subject to amortization:

Customer relationships

Intangibles not subject to amortization:

Total goodwill and other intangible assets

November 25, 2023

Intangibles subject to amortization:

Customer relationships

Intangibles not subject to amortization:

Total goodwill and other intangible assets

We performed the annual test for impairment of the carrying value of our goodwill as of the beginning of the fourth quarter of fiscal 2024.

Based on the initial qualitative analysis performed under ASC Topic 350, we concluded that is was not more likely than not that the carrying value of our upholstery reporting unit within our wholesale segment exceeded its fair value.

We performed the annual test for impairment of the carrying value of our goodwill as of the beginning of the fourth quarter of fiscal 2023.

Based on the initial qualitative analysis performed under ASC Topic 350, we concluded that it was not more likely than not that the carrying value of our upholstery reporting unit within our wholesale segment exceeded its fair value.

However, due to the actual and expected future underperformance of our Noa Home reporting unit relative to management's original expectations, we performed a strategic review of the operations as of the beginning of the fourth quarter and concluded that Noa Home should exit the Australian market and focus more on the North American market.

Coupled with the financial underperformance and the exit of Australia, we performed a quantitative test of the carrying value of the goodwill recognized as part of the 2022 acquisition of Noa Home and concluded that it was necessary to fully impair the carrying value of the Noa Home goodwill, resulting in a non-cash impairment charge of $5,409 in fiscal 2023.

The determination of the fair value of our reporting units is based on a combination of a market approach, that considers benchmark company market multiples and comparable transactions occurring within the last two years and an income approach, that utilizes discounted cash flows for each reporting unit and other Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosure (see Note 4) The valuation of the Noa Home reporting unit was primarily based on the market approach due to significant uncertainty in the future cash flows of Noa Home.

The carrying amount of goodwill in our balance sheets at both November 29, 2025 and November 30, 2024 is as follows:

Corporate and other

Total goodwill

Changes in the carrying amounts of goodwill by reportable segment during fiscal 2025, 2024 and 2023 were as follows:

Balance as of November 26, 2022

Foreign currency translation adjustment

Full impairment of Noa Home goodwill

Balance as of November 25, 2023

No changes in fiscal 2024

Balance as of November 30, 2024

No changes in fiscal 2025

Balance as of November 29, 2025

We performed the annual tests for impairment of the carrying value of our goodwill as of the beginning of the fourth quarter of fiscal 2025, 2024 and 2023.

In fiscal 2023, due to the actual and expected future underperformance of our Noa Home reporting unit relative to management's original expectations, we performed a strategic review of the operations as of the beginning of the fourth quarter and concluded that Noa Home should exit the Australian market and focus more on the North American market.

Coupled with the financial underperformance and the exit from Australia, we performed a quantitative test of the carrying value of the goodwill recognized as part of the 2022 acquisition of Noa Home and concluded that it was necessary to fully impair the carrying value of the Noa Home goodwill, resulting in a non-cash impairment charge of $ 5,409 in fiscal 2023.

The determination of the fair value of our reporting units is based on a combination of a market approach, which considers benchmark company market multiples and comparable transactions occurring within the last two years and an income approach, which utilizes discounted cash flows for each reporting unit and other Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosure (see Note 3) The valuation of the Noa Home reporting unit was primarily based on the market approach due to significant uncertainty in the future cash flows of Noa Home.

Under the income approach, we determine fair value based on the present value of the most recent cash flow projections for each reporting unit as of the date of the analysis and calculate a terminal value utilizing a terminal growth rate.

5 unchanged sentences

As part of the goodwill impairment testing, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our reporting units.

Changes in the carrying amounts of goodwill by reportable segment were as follows:

Balance as of November 26, 2022

Foreign currency translation adjustment

Full impairment of Noa Home goodwill

Balance as of November 25, 2023

No changes in fiscal 2024

Balance as of November 30, 2024

Accumulated impairment losses were $ 9,306 , $ 9,306 and $ 3,897 at November 30, 2024, November 25, 2023 and November 26, 2022, respectively.

Intangible Assets, Net

Intangible assets at November 29, 2025 and November 30, 2024 consisted of the following:

November 29, 2025

November 30, 2024

Intangibles subject to amortization:

Customer relationships

Less accumulated amortization

Intangibles subject to amortization, net

Intangibles not subject to amortization:

Total intangible assets

The weighted average useful lives of our finite-lived intangible assets and remaining amortization periods as of November 29, 2025 are as follows:

Customer relationships

Our trade name intangible asset at November 30, 2024 is associated with Lane Venture.

Our trade name intangible asset at November 29, 2025 and November 30, 2024 is associated with Lane Venture.

Because it is our intention to maintain and grow this brand, it is considered to be an indefinite-lived intangible asset.

At November 25, 2023 our trade name intangible assets also included an asset for the Noa Home trade name which had been considered an indefinite-lived intangible asset upon acquisition in 2022.

However, in connection with our decision to cease operations at Noa Home and liquidate its assets, the carrying value of the Noa Home trade name was fully impaired during the second quarter of fiscal 2024.

The amortization expense associated with finite-lived intangible assets during fiscal 2025, 2024 and 2023 was $ 58 each year and is included in selling, general and administrative expense in our consolidated statement of operations.

4 unchanged sentences

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

At November 30, 2024, we had $ 6,013 outstanding under standby letters of credit against our line.

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

At November 29, 2025 and November 30, 2024, we had $ 8,182 and $6,013, respectively, 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 (Note 4) and inventory (Note 5).

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

4 unchanged sentences

Since our used commitment was less than $ 8,250 at November 29, 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 able to achieve the required levels for either of these ratios.

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

Interest paid during fiscal 2024, 2023 and 2022 was not material.

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

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

As of November 29, 2025, the Credit Facility was scheduled to expire on January 31, 2027.

Subsequent to November 29, 2025, the Credit Facility has been extended through January 31, 2029 under substantially the same terms.

Post-Employment Benefit Obligations

12 unchanged sentences

Company contributions are subject to the same rules described above regarding the crediting of gains or losses from deemed investments and the timing of distributions.

Expense (credits) associated with deferred compensation under the Plan was $ 925 , $ 46 and $( 16 ) for fiscal 2024, 2023 and 2022, respectively.

Expense associated with deferred compensation under the Plan was $ 537 , $ 925 and $ 46 for fiscal 2025, 2024 and 2023, respectively, and is included in selling, general and administrative expenses in the accompanying statements of operations.

Our liability for Company contributions and participant deferrals at November 29, 2025 and November 30, 2024 was $ 3,968 and $ 3,486 , respectively, and is included in post-employment benefit obligations in our consolidated balance sheets.

5 unchanged sentences

During fiscal 2024 and 2023, we invested $ 343 and $ 1,019 in life insurance policies covering all participants in the Plan.

At November 30, 2024, these policies have a net death benefit of $ 15,885 for which the Company is the sole beneficiary.

During fiscal 2025, we received a net refund of premiums paid of $ 28 .

At November 29, 2025, these policies including those entered into prior to fiscal 2024, have a net death benefit of $ 16,343 for which the Company is the sole beneficiary.

These policies are intended to provide a potential source of funds to meet the obligations arising from the deferred compensation and LTC Awards under the Plan and serve as an economic hedge of the financial impact of changes in the liabilities.

21 unchanged sentences

Total amounts recognized

Amounts recognized in accumulated other comprehensive income:

before income tax effects:

Prior service cost

Actuarial (gain) loss

Amounts recognized in accumulated other comprehensive income before income tax effects:

Actuarial gain

Net amount recognized

18 unchanged sentences

The non-current portion of this obligation is included in post-employment benefit obligations in our consolidated balance sheets, with the current portion included in accrued compensation and benefits.

The non-current portion of the obligations under our defined benefit and deferred compensation plans are included post employment benefit obligations in the accompanying balance sheets as follows:

November 29, 2025

November 30, 2024

Defined benefit plans:

Supplemental Plan

Total defined benefit plans

Deferred compensation plans:

Management Savings Plan

Deferred Compensation Plan

Total deferred compensation plans

Post employment benefit obligations

The current portion of these post employment benefit obligations totalled $ 1,142 and $ 1,123 at November 29, 2025 and November 30, 2024, respectively, and is included in other accrued liabilities in the accompanying balance sheets.

Defined Contribution Plan

2 unchanged sentences

Expense for employer matching contributions was $ 921 , $ 943 and $ 998 during fiscal 2025, 2024 and 2023, respectively.

Accumulated Other Comprehensive Income (Loss)

The activity in accumulated other comprehensive income (loss) for the fiscal years ended November 30, 2024 and November 25, 2023, which is comprised of post-retirement benefit costs related to our SERP and LTC Awards as well as cumulative translation adjustments arising from our investment in Noa Home, is as follows:

Accumulated Other Comprehensive Income

Accumulated other comprehensive income at November 29, 2025 and November 30, 2024 consisted of the following:

November 29, 2025

November 30, 2024

Actuarial gains from defined benefit plans

Accumulated other comprehensive income

The activity in accumulated other comprehensive income for fiscal years 2025, 2024 and 2023, which is comprised of post-retirement benefit actuarial gains or losses related to our Supplemental Plan and LTC Awards as well as cumulative translation adjustments arising from our former investment in Noa Home, is as follows:

Balance at November 26, 2022

7 unchanged sentences

Balance at November 30, 2024

Actuarial losses

Net pension amortization reclassified from accumulated other comprehensive loss

Balance at November 29, 2025

Includes the transfer of $ 962 of cumulative translation loss out of accumulated other comprehensive loss into the fiscal 2024 loss from operations upon the substantial completion of the liquidation of Noa Home (See Note 14).

Capital Stock and Stock Compensation

We account for our stock-based employee and director compensation plans in accordance with ASC 718, Compensation – Stock Compensation .

We account for our stock-based employee and director compensation plans in accordance with ASC Topic 718, Compensation – Stock Compensation .

ASC 718 requires recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period) which we recognize on a straight-line basis.

23 unchanged sentences

During fiscal 2025, 2024 and 2023, 9,835 shares, 10,360 shares and 5,985 shares, respectively, were withheld to cover withholding taxes of $ 136 , $ 161 and $ 109 , respectively, arising from the vesting of restricted shares.

During fiscal 2024, 2023 and 2022, excess tax benefits of $ 9 , $ 10 and $ 1 , respectively, were recognized within income tax expense upon the release of vested shares.

During fiscal 2025, 2024 and 2023, excess tax benefits (deficiency) of $( 21 ), $( 9 ) and $ 10 , respectively, were recognized within income tax expense upon the release of vested shares.

Additional information regarding our outstanding non-vested restricted shares, which are all subject to service conditions, at November 29, 2025 is as follows:

1 unchanged sentence

January 11, 2023

March 6, 2024

October 29, 2024

March 12, 2025

Unrecognized compensation cost related to these non-vested restricted shares at November 29, 2025 is $ 340 , all of which is expected to be recognized in fiscal 2026 through fiscal 2027.

3 unchanged sentences

There are 16,991 shares remaining available for sale under the 2017 ESPP at November 29, 2025.

The components of the income tax provision from continuing operations are as follows:

The components of the income tax provision from operations are as follows:

A reconciliation of the statutory federal income tax rate and the effective income tax rate, as a percentage of income before income taxes, is as follows:

6 unchanged sentences

Effective income tax rate

Excess tax benefits in the amount of $ 9 , $ 10 and $ 1 were recognized as a component of income tax expense during fiscal 2024, 2023 and 2022, respectively, resulting from the exercise of stock options and the release of restricted shares.

The fiscal 2023 adjustment for impairment of non-deductible goodwill reflect the fact that there was no tax basis related to the impaired goodwill.

Excess tax benefits (deficiencies) in the amount of $( 21 ), $( 9 ) and $ 10 were recognized as a component of income tax expense during fiscal 2025, 2024 and 2023, respectively, resulting from the exercise of stock options and the release of restricted shares.

The fiscal 2023 adjustment for impairment of non-deductible goodwill reflects the fact that there was no tax basis related to the impaired goodwill.

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, the passage of the Act did not have a material impact on our results of operations or financial condition in fiscal 2025.

The income tax effects of temporary differences and carryforwards, which give rise to significant portions of the deferred income tax assets and deferred income tax liabilities, are as follows:

November 30, 2024

November 25, 2023

Deferred income tax assets:

15 unchanged sentences

Net deferred income tax assets

We have foreign net operating loss carryforwards attributable to Noa Home (see Note 3) of $ 10,780 resulting in a deferred tax asset of $ 2,264 upon which we have placed a full valuation allowance.

During fiscal 2024, we generated federal net operating loss carryforwards of $ 5,152 and state net operating loss carryforwards of $ 530 .

Income tax refunds received, net of taxes paid, during fiscal 2024 and 2023 were $ 658 and $ 263 , respectively.

We have foreign net operating loss carryforwards attributable to Noa Home of $ 10,780 resulting in a deferred tax asset of $ 2,264 upon which we have placed a full valuation allowance.

As of November 29, 2025, we have no remaining federal net operating loss carryforwards and we have state net operating loss carryforwards totaling $ 6,799 expiring in various years through 2044.

Income taxes paid, net of refunds received, during fiscal 2025 was $ 379 .

Income tax refunds received, net of taxes paid, during fiscal 2024 and 2023 were $ 658 and $ 263 , respectively.

We regularly evaluate, assess and adjust our accrued liabilities for unrecognized tax benefits in light of changing facts and circumstances, which could cause the effective tax rate to fluctuate from period to period.

8 unchanged sentences

Asset Impairment Charges

During fiscal 2025, we recognized a non-cash charge of $ 498 for the impairment of a right-of-use asset at one underperforming retail store that is expected to be closed in fiscal 2026.

During fiscal 2024, we recognized non-cash charges for asset impairments totaling $ 5,515 which consisted of the following:

2 unchanged sentences

$ 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 by selling the remaining inventory in an orderly fashion through then end of fiscal 2024.

$ 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.

2 unchanged sentences

During fiscal 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.

As of November 29, 2025, this liability has been settled with no remaining charges due.

Loss Upon Realization of Cumulative Translation Adjustment

1 unchanged sentence

Restructuring Charges

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

At November 30, 2024, $ 432 of the accrual remained in other current liabilities and is expected to be paid out by the end of the second quarter of fiscal 2025.

In the fourth quarter of fiscal 2024 we recognized a restructuring charge of $ 440 representing accrued severance pay for certain affected employees Of this charge, $190 was incurred by our retail segment, $83 by our wholesale segment, and $167 was charged to corporate and other.

At November 30, 2024, $ 432 of the accrual remained in other current liabilities, all of which was paid out by the end of the second quarter of fiscal 2025.

Goodwill Impairment Charge

1 unchanged sentence

Gain on Revaluation of Contingent Consideration

See Note 3 regarding a $ 1,013 gain during fiscal 2023 resulting from the revaluation of contingent consideration owed to the former owners of Noa Home.

Gains on Dispositions of Retail Store Locations

During the third quarter of fiscal 2022, we sold one of our Company-owned store locations in Houston, Texas for $ 8,217 net of closing costs, resulting in a gain of $ 4,595 during the year ended November 26, 2022.

This sale, together with our purchase of real property in Tampa, Florida for $ 7,668 in cash during the second quarter of fiscal 2022 was treated as an exchange of like-kind property under Section 1031 of the Internal Revenue Code of 1986, as amended, for the purpose of deferring approximately $ 4,300 of the taxable gain arising from the sale of the Houston property.

A VIE was established during the second quarter of fiscal 2022 for purposes of acquiring the Tampa, Florida property, of which the Company was the primary beneficiary by virtue of our control over the activities that most significantly impact the entity's economic performance.

Other loss, net for the fiscal 2022 includes a gain of $ 1,441 arising from death benefits from Company-owned life insurance.

Per the terms of the agreement by which we acquired Noa Home during fiscal 2022, the Noa Home co-founders also had the opportunity to receive additional cash payments totaling approximately C$ 1,330 per year for the three fiscal years following the year of acquisition based on established increases in net revenues and achieving certain internal EBITDA goals.

Therefore, during fiscal 2022 we agreed to replace the contingent consideration with two fixed payments of C$ 200 each, the first of which was paid in June of 2023 with the second paid in December of 2024.

As a result of the write-down of the contingent consideration payable that was recognized at the acquisition date, we recorded a gain of $ 1,013 during fiscal 2023.

Leases and Lease Guarantees

See “Leases” under Note 2 for a discussion of our accounting policies and elections under Topic 842.

See “Leases” under Note 2 for a discussion of our accounting policies and elections under ASC Topic 842.

Supplemental balance sheet information related to our leases as of November 29, 2025 and November 30, 2024 is as follows:

15 unchanged sentences

November 30, 2024

Corporate & other

Total right of use assets

33 unchanged sentences

The terms of these leases generally match those of the lease we have with the lessor.

In addition, we sublease space in certain closed store locations that are still under lease.

In addition, we sublease space in certain closed store and warehouse locations that are still under lease.

Minimum future lease payments due to us under these subleases are as follows:

Total minimum future rental income

Lease Commitments

At November 29, 2025, we had commitments for three leases of real property which are expected to commence during fiscal 2026.

Together, these leases call for total annual rents averaging approximately $ 1,105 per year for an initial term of ten years.

All three leases have two five -year renewal options.

As part of the strategy for our store program, we have guaranteed certain lease obligations of licensee operators.

9 unchanged sentences

The following table sets forth the computation of basic and diluted earnings (loss) per share:

Earnings (loss) per share - continuing operations:

Net income (loss) from continuing operations

Denominator for basic income per share - weighted average shares

Effect of dilutive securities*

Denominator for diluted income per share — weighted average shares and assumed conversions

Basic income (loss) per share - continuing operations:

Diluted income (loss) per share - continuing operations

Earnings per share - discontinued operations:

Net income from discontinued operations

Earnings (loss) per share

Net income (loss)

Denominator for basic income per share - weighted average shares

1 unchanged sentence

Denominator for diluted income per share — weighted average shares and assumed conversions

Basic income per share - discontinued operations

Diluted income per share - discontinued operations

Basic income (loss) per share

Diluted income (loss) per share

* Due to the net loss in 2024 and 2023, the potentially dilutive securities would have been anti-dilutive and are therefore excluded.

1 unchanged sentence

Unvested restricted shares

Discontinued Operations

On January 31, 2022, we entered into a definitive agreement to sell substantially all of the assets of Zenith to J.B.

The sale was completed on February 28, 2022, at which time we received the following net proceeds:

Sales price prior to post-closing working capital adjustment

Amount held in escrow for contingencies related to representations and warranties (1)

Seller expenses paid at closing

Working capital adjustment paid to buyer

Net proceeds from the sale

This was held in escrow until the first anniversary of the sale, at which time the full amount was released to the Company on March 2, 2023.

The sales price was subject to customary post-closing working capital adjustments which were paid during the second half of fiscal 2022 and resulted in a pre-tax gain from the sale of Zenith of $ 52,534 .

The operations of our logistical services segment, which consisted entirely of the operations of Zenith, are presented in the accompanying consolidated statements of operations as discontinued operations.

Following the sale of Zenith, certain of Zenith’s liabilities primarily representing reserves and accrued liabilities for pre-disposal workers’ compensation, health insurance and auto liability claims were retained by Bassett.

The remaining balance of these reserves and accruals totaled $ 114 and $ 358 at November 30, 2024 and November 25, 2023, respectively, and are included in accrued compensation and benefits and other current liabilities and accrued expenses in the accompanying condensed consolidated balance sheets.

The following table summarizes the major classes of line items constituting income of the discontinued operations, as reported in the consolidated statements of operations for fiscal 2022 (there was no income from discontinued operations in 2024 or 2023):

Major line items constituting pretax income of discontinued operations:

Logistical services revenue

Cost of logistical services

Other loss, net

Income from operations of logistical services

Gain on disposal

Pretax income of discontinued operations

Income tax expense

Income from discontinued operations, net of tax

The amounts for revenue and costs of logistical services shown above represent the results of Zenith’s business transactions with third parties.

Zenith also charged Bassett for logistical services provided to our wholesale segment in the amount of $ 9,121 during 2022 prior to disposal.

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

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

Subsequent to the sale, we incurred $ 22,721 , $ 26,125 and $ 27,604 of expense during fiscal 2024, 2023 and 2022, respectively, for the performance of logistical services.

The following table summarizes the cash flows generated by discontinued operations during 2022 (there were no cash flows from discontinued operation in 2024 or 2023):

Cash provided by operating activities

Cash used in investing activities

Cash used in financing activities

Net cash provided by (used in) discontinued operations

Excludes net proceeds from the sale of Zenith.

Segment Information

We report segment information consistent with the way our chief operating decision maker (the “CODM”), a single individual who serves as our Board Chair, President and Chief Executive Officer, evaluates the operating results and performance of the Company.

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

9 unchanged sentences

All sales reported in our Corporate and other category are attributable to Noa Home, which generated 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 ceased operations as of November 30, 2024 by selling the remaining inventory in an orderly fashion over the second half of fiscal 2024.

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

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

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

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

Our former logistical services segment which represented the operations of Zenith is presented as a discontinued operation in the accompanying condensed consolidated statements of operations (see Note 18).

The following table presents segment information for each of the last three fiscal years:

Sales Revenue

Wholesale sales of furniture and accessories

Sales to retail segment

Wholesale sales to external customers

Retail sales of furniture and accessories

Corporate & Other - Noa Home

Consolidated net sales of furniture and accessories

Income (loss) from Continuing Operations before Income Taxes

Income (loss) from Continuing Operations

Net expenses - Corporate and other

Inter-company elimination

During the second fiscal quarter of 2024 we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and ceased operations as of November 30, 2024 after selling the remaining inventory in an orderly fashion over the second half of fiscal 2024.

Inter-segment net sales and cost of goods sold eliminations represent the elimination of wholesale sales to our Company-owned stores.

Inter-segment gross profit elimination represents the change in the embedded wholesale profit in the Company-owned store inventory that has not been realized.

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

The inter-segment SG&A expense elimination includes rent charged to our retail stores occupying Company-owned real estate.

For the purpose of evaluating segment performance and allocating resources, our CODM uses a measure of income (loss) from operations excluding special items.

These excluded items include such things as asset impairment charges, restructuring charges, and other unusual or infrequent gains and losses which management does not expect to recur on a regular routine basis (see Note 14, Other Gains and Losses, for further discussion of these items).

The CODM assesses performance by regularly reviewing each segment’s significant expense categories which include total cost of goods sold and total SG&A expenses.

If these significant expense categories deviate from expected results, the CODM will delegate to his direct reports the task of investigating the underlying causes and, when necessary, making recommendations for remedial action to the CODM for his consideration and approval.

The following table presents segment results of operations for each of the last three fiscal years:

Year Ended November 29, 2025

Net sales to external customers

Intersegment sales

Total net sales

Cost of goods sold

Income (loss) from operations excluding special items

Asset impairment charges

Income (loss) from operations

Interest income

Interest expense

Other loss, net

Income before income taxes

Year Ended November 30, 2024

Net sales to external customers

Intersegment sales

Total net sales

Cost of goods sold

Income (loss) from operations excluding special items

Asset impairment charges

Loss on contract abandonment

1 unchanged sentence

Restructuring charges

Gain on revaluation of contingent consideration

Income (loss) from operations

Interest income

Interest expense

Other loss, net

Loss before income taxes

Year Ended November 25, 2023

Net sales to external customers

Intersegment sales

Total net sales

Cost of goods sold

Income (loss) from operations excluding special items

Goodwill impairment charge

Gain on sale of real estate

Consolidated income (loss) from continuing operations

Gain on revaluation of contingent consideration

Income (loss) from operations

Interest income

1 unchanged sentence

Other loss, net

Consolidated income (loss) from continuing operations before income taxes

Loss before income taxes

Additional information reported by segment is as follows:

Depreciation and Amortization

Corporate and other

Discontinued operations

Capital Expenditures

12 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.

Beginning with the fourth quarter of fiscal 2022, our Corporate and other reconciling category includes the sales of Noa Home, which was acquired on September 2, 2022 (see Note 3).

For fiscal 2023 and 2024, Corporate and other reconciling category includes the sales of Noa Home, which was acquired on September 2, 2022 and closed at the end of fiscal 2024 following the decision in the second quarter of fiscal 2024 to cease operations and liquidate the remaining inventory.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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-K

Item 8. Financial Statements and Supplementary Data