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Item 1. Financial Statements

2026-07-01 compared with 2026-04-01 · 169 added, 121 removed, 319 unchanged (48% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED FEBRUARY 28, 2026 AND MARCH 1, 2025 – UNAUDITED

FOR THE PERIODS ENDED MAY 30, 2026 AND MAY 31, 2025 – UNAUDITED

(In thousands)

Three Months Ended

February 28, 2026

March 1, 2025

Six Months Ended

Operating activities:

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

7 unchanged sentences

Obligations under operating leases

Net cash used in operating activities

Net cash provided by operating activities

Investing activities:

Purchases of property and equipment

Cash paid for licensee acquisition

Net cash used in investing activities

13 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(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 February 28, 2026 and March 1, 2025 and as of November 29, 2025 we have concluded that none of the evaluated entities represent VIEs.

As of and for the periods ended May 30, 2026 and May 31, 2025 and as of November 29, 2025 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 income net of estimates for returns and allowances.

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

Certain amounts for the three months ended March 1, 2025 have been reclassified to conform to the current year’s presentation.

Certain amounts for the three and six months ended May 31, 2025 have been reclassified to conform to the current year’s presentation.

See Note 13, Revenue Recognition.

1 unchanged sentence

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

The results of operations for the three months ended February 28, 2026 are not necessarily indicative of results for the full fiscal year.

The results of operations for the three and six months ended May 30, 2026 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 29, 2025.

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 26.5 % for the three months ended February 28, 2026.

Our effective tax rate was 26.5 % for the three and six months ended May 30, 2026.

The effective rate differs from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences.

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

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

The effective rate differs from the federal statutory rate of 21 % primarily due to the effects of state income taxes and various permanent differences.

Supplemental Cash Flow Information

During the three months ended February 28, 2026 and March 1, 2025, $ 2,787 and $ 0 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

Income tax refunds received, net of taxes paid, during the three months ended February 28, 2026 and March 1, 2025 were as follows:

Quarter Ended

March 1, 2025

Total income tax refunds received, net

Interest paid during the three months ended February 28, 2026 and March 1, 2025 was $ 15 and $ 4 , respectively.

During the six months ended May 30, 2026 and May 31, 2025, $ 9,228 and $ 378 , respectively, of lease right-of-use assets were added through the recognition of the corresponding lease obligations.

Income tax refunds received (taxes paid), net, during the six months ended May 30, 2026 and May 31, 2025 were as follows:

Six Months Ended

Total income tax refunds received (taxes paid), net

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

Interest paid during the six months ended May 30, 2026 and May 31, 2025 was $ 28 and $ 14 , respectively.

Lessor Income

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

Sublease income for closed stores and warehouses is included in selling, general and administrative expense in the accompanying condensed consolidated statements of income and was $ 155 and $ 103 for the three months ended February 28, 2026 and March 1, 2025, respectively.

Sublease income for closed stores and warehouses is included in selling, general and administrative expense in the accompanying condensed consolidated statements of income and was $ 155 and $ 309 for the three and six months ended May 30, 2026, respectively, and $ 148 and $ 251 for the three and six months ended May 31, 2025, respectively.

We also sublease one location to a licensee.

This sublease income is included in other loss, net in the accompanying condensed consolidated statements of income and was $ 118 and $ 114 for the three months ended February 28, 2026 and March 1, 2026, respectively.

This sublease income is included in other income (loss), net in the accompanying condensed consolidated statements of income and was $ 118 and $ 236 for the three and six months ended May 30, 2026, respectively, and $ 114 and $ 228 for the three and six months ended May 31, 2025, respectively.

Licensee Acquisition

Effective March 1, 2026, we acquired the operations of the Bassett Home Furnishings (“BHF”) store located in Cherry Hill, New Jersey for an all-cash purchase price of $ 470 with no other forms of consideration transferred.

The store had been owned and operated by a licensee that had determined that continued ownership of a BHF store was no longer consistent with its future business objectives.

We believe that Cherry Hill, New Jersey represents a viable market for a BHF store.

The preliminary purchase price allocation was as follows:

Customer deposits

Other current liabilities

Net assets acquired

Purchase price

The allocation of the fair value of the acquired business was based on a preliminary valuation.

Our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date).

The primary area of the preliminary allocation of the purchase price that is not yet finalized relates to the estimate of certain accrued liabilities.

The inputs into our valuation of the acquired assets reflect our market assumptions and are not observable.

Consequently, the inputs are considered to be Level 3 inputs as specified in the fair value hierarchy in ASC 820, Fair Value Measurements and Disclosures.

See Note 6 regarding the allocation of the goodwill to our reportable segments.

The recognized goodwill of $ 447 is deductible for income tax purposes.

We believe that the primary factor supporting the recognized goodwill is that the licensee which formerly operated the Cherry Hill BHF store has established our brand in the greater Philadelphia, Pennsylvania market and this acquisition will enable us to maintain and grow our brand presence in that market.

The acquisition is not material to our condensed consolidated financial statements and, accordingly, pro forma revenue and earnings disclosures are not material and have not been presented.

Sales and operating losses generated by the Cherry Hill store subsequent to acquisition were not material for the three and six months ended May 30, 2026.

Acquisition costs were immaterial.

New Store Pre-Opening Costs

Income from operations for the three and six months ended May 30, 2026 includes new store pre-opening costs of $ 473 and $ 568 , respectively.

Such costs consist of expenses incurred at the new store location during the period prior to its opening and include, among other things, facility occupancy costs such as rent and utilities and local store personnel costs related to pre-opening activities including training.

New store pre-opening costs do not include costs which are capitalized in accordance with our property and equipment capitalization policies, such as leasehold improvements and store fixtures and equipment.

Such capitalized costs associated with new stores are depreciated commencing with the opening of the store.

There are no pre-opening costs associated with stores acquired from licensees, as such locations were already in operation at the time of their acquisition.

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 $ 17,963 at both February 28, 2026 and November 29, 2025 consisted of CDs.

At February 28, 2026, the CDs had original terms averaging seven months, bearing interest at rates ranging from 2.0 % to 4.1 % and the weighted average remaining time to maturity was approximately five months and the weighted average yield of the CDs was approximately 3.6 %.

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 short-term investments of $ 17,988 and $ 17,963 at May 30, 2026 and November 29, 2025, respectively, consisted of CDs.

At May 30, 2026, the CDs had original terms averaging seven months, bearing interest at rates ranging from 2.0 % to 4.1 % and the weighted average remaining time to maturity was approximately three months and the weighted average yield of the CDs was approximately 3.6 %.

Each CD is placed with a federally insured financial institution and all deposits are within federal deposit insurance limits.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at February 28, 2026 and November 29, 2025 approximates their fair value.

Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at May 30, 2026 and November 29, 2025 approximates their fair value.

Accounts Receivable

Accounts receivable consists of the following:

February 28, 2026

Gross accounts receivable

6 unchanged sentences

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.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

Activity in the allowance for credit losses for the three months ended February 28, 2026 and March 1, 2025 was as follows:

Three Months Ended

February 28, 2026

March 1, 2025

Activity in the allowance for credit losses for the six months ended May 30, 2026 and May 31, 2025 was as follows:

Six Months Ended

Beginning balance

2 unchanged sentences

Ending balance

Substantially all of the accounts receivable written off against the reserve during the three months ended February 28, 2026 and March 1, 2025 originated during our fiscal years ended November 29, 2025 and November 30, 2024, respectively.

Substantially all of the accounts receivable written off against the reserve during the three and six months ended May 30, 2026 and May 31, 2025 originated during our fiscal years ended November 29, 2025 and November 30, 2024, respectively.

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

1 unchanged sentence

Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures .

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

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

1 unchanged sentence

Inventories were comprised of the following:

February 28, 2026

November 29, 2025

17 unchanged sentences

Retail reserves are based on accessory and clearance floor sample inventory in our stores and any inventory that is not associated with a specific customer order in our retail warehouses.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

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

Three Months Ended February 28, 2026

Six Months Ended May 30, 2026

Retail Segment

1 unchanged sentence

Additions charged to expense

Balance at February 28, 2026

Three Months Ended March 1, 2025

Balance at May 30, 2026

Six Months Ended May 31, 2025

Retail Segment

1 unchanged sentence

Additions charged to expense

Balance at March 1, 2025

Balance at May 31, 2025

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

We have not made any significant changes to our methodology for determining inventory reserves in 2026 and do not anticipate that our methodology is likely to change in the foreseeable future.

The carrying amounts of goodwill by reportable segment, including accumulated impairment losses, at both February 28, 2026 and November 29, 2025 were as follows:

Corporate and other

Total goodwill

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

The carrying amounts of goodwill by reportable segment, net of accumulated impairment losses, were as follows:

Balance as of November 29, 2025

Goodwill arising from licensee acquisition (Note 2)

Balance as of May 30, 2026

Accumulated impairment losses at both May 30, 2026 and November 29, 2025 were as follows:

Accumulated impairment losses

Intangible Assets

Intangible assets at February 28, 2026 and November 29, 2025 consisted of the following:

February 28, 2026

November 29, 2025

Intangible assets at May 30, 2026 and November 29, 2025 consisted of the following:

Intangibles subject to amortization:

4 unchanged sentences

Total intangible assets

Amortization expense associated with intangible assets during the three and six months ended May 30, 2026 and May 31, 2025 was as follows:

Quarter Ended

Six Months Ended

Intangible asset amortization expense

Estimated future amortization expense for intangible assets that exist at May 30, 2026 is as follows:

Remainder of fiscal 2026

PART I-FINANCIAL INFORMATION-CONTINUED

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

Amortization expense associated with intangible assets during the three months ended February 28, 2026 and March 1, 2025 was as follows:

Quarter Ended

February 28, 2026

March 1, 2025

Intangible asset amortization expense

Estimated future amortization expense for intangible assets that exist at February 28, 2026 is as follows:

Remainder of fiscal 2026

Bank Credit Facility

1 unchanged sentence

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

At February 28, 2026, we had $ 5,866 outstanding under standby letters of credit against our line.

At May 30, 2026, we had $ 5,866 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.

At February 28, 2026, we were in compliance with the Consolidated Minimum Tangible Net Worth requirement.

Since our used commitment was less than $ 8,250 at February 28, 2026, we were not required to test the Consolidated Fixed Charge Coverage Ratio or the Consolidated Lease Adjusted Leverage to EBITDAR Ratio.

At May 30, 2026, we were in compliance with the Consolidated Minimum Tangible Net Worth requirement.

Since our used commitment was less than $ 8,250 at May 30, 2026, 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.

4 unchanged sentences

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 $ 5,617 and $ 5,611 as of February 28, 2026 and November 29, 2025, respectively.

The liability for the Supplemental Plan was $ 5,622 and $ 5,611 as of May 30, 2026 and November 29, 2025, 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 $ 1,393 and $ 1,379 as of February 28, 2026 and November 29, 2025, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

Components of net periodic pension costs for our defined benefit plans for the three months ended February 28, 2026 and March 1, 2025 are as follows:

The liability for the LTC Awards was $ 1,328 and $ 1,379 as of May 30, 2026 and November 29, 2025, respectively.

Components of net periodic pension costs for our defined benefit plans for the three and six months ended May 30, 2026 and May 31, 2025 are as follows:

Quarter Ended

February 28, 2026

March 1, 2025

Six Months Ended

Interest cost

1 unchanged sentence

Net periodic pension cost

The components of net periodic pension cost other than the service cost component, which is included in selling, general and administrative expenses, are included in other loss, net in our condensed consolidated statements of income.

The components of net periodic pension cost other than the service cost component, which is included in selling, general and administrative expenses, are included in other income (loss), net in our condensed consolidated statements of income.

Deferred Compensation Plans

1 unchanged sentence

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

Our liability under this plan was $ 1,580 and $ 1,562 as of February 28, 2026 and November 29, 2025, 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 $ 4,181 and $ 3,968 as of February 28, 2026 and November 29, 2025, respectively.

Our liability under this plan was $ 1,598 and $ 1,562 as of May 30, 2026 and November 29, 2025, respectively.

We have an additional unfunded 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 $ 4,642 and $ 3,968 as of May 30, 2026 and November 29, 2025, respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

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

February 28, 2026

November 29, 2025

7 unchanged sentences

Post employment benefit obligations

The current portion of these post employment benefit obligations totaled $ 1,142 at both February 28, 2026 and November 29, 2025 and is included in accrued compensation and benefits in the accompanying condensed consolidated balance sheets.

We recognized expense under our deferred compensation arrangements during the three months ended February 28, 2026 and March 1, 2025 of $ 12 and $ 34 , respectively.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

The current portion of these post employment benefit obligations totaled $ 1,142 at both May 30, 2026 and November 29, 2025 and is included in accrued compensation and benefits in the accompanying condensed consolidated balance sheets.

We recognized expense under our deferred compensation arrangements during the three and six months ended May 30, 2026 and May 31, 2025 as follows:

Quarter Ended

Six Months Ended

Deferred compensation expense

Commitments and Contingencies

2 unchanged sentences

Lease Guarantees

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 3,902 and $ 4,148 at February 28, 2026 and November 29, 2025, respectively.

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

We were contingently liable under licensee lease obligation guarantees in the amounts of $ 3,656 and $ 4,148 at May 30, 2026 and November 29, 2025, respectively.

The remaining term under these lease guarantees extends for approximately five years.

In the event of default by the licensee, we believe that the risk of loss is mitigated through a combination of options that include, but are not limited to, arranging for a replacement licensee or liquidating the collateral (primarily inventory).

The proceeds of the above options are expected to cover the estimated amount of our future payments under the guarantee obligation, net of recorded reserves.

The fair value of these lease guarantees (an estimate of the cost to the Company to perform on the guarantee) at February 28, 2026 and November 29, 2025 was not material.

The fair value of these lease guarantees (an estimate of the cost to the Company to perform on the guarantee) at May 30, 2026 and November 29, 2025 was not material.

PART I-FINANCIAL INFORMATION-CONTINUED

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

(Dollars in thousands except share and per share data)

Lease Commitments

At February 28, 2026, we had commitments for two leases of real property which are expected to commence during fiscal 2026.

Together, these leases call for total annual rents averaging approximately $ 757 per year for an initial term of ten years.

Both leases have two five -year renewal options.

At May 30, 2026, we had a commitment for one lease of real property which is expected to commence during fiscal 2026.

This lease calls for total annual rents averaging approximately $ 403 per year for an initial term of ten years.

The lease has two five -year renewal options.

Earnings Per Share

2 unchanged sentences

Weighted Average

For the quarter ended February 28, 2026:

For the quarter ended May 30, 2026:

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the quarter ended March 1, 2025:

For the quarter ended May 31, 2025:

Basic earnings per share

2 unchanged sentences

Diluted earnings per share

For the three months ended February 28, 2026 and March 1, 2025, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

For the six months ended May 30, 2026:

Basic earnings per share

Add effect of dilutive securities:

Restricted shares

Diluted earnings per share

For the six months ended May 31, 2025:

Basic earnings per share

Add effect of dilutive securities:

Restricted shares

Diluted earnings per share

For the three and six months ended May 30, 2026 and May 31, 2025, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive:

Quarter Ended

February 28, 2026

March 1, 2025

Six Months Ended

Unvested shares

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

7 unchanged sentences

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

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

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

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

As of and for the three months ended February 28, 2026 and March 1, 2025, Corporate and other included no other operating segments.

As of and for the three and six months ended May 30, 2026 and May 31, 2025, Corporate and other included no other operating segments.

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

4 unchanged sentences

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.

During the three months ended February 28, 2026 and March 1, 2025, there were no special items recognized in our results of operations.

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.

During the three and six months ended May 30, 2026 and May 31, 2025, there were no special items recognized in our results of operations.

The CODM assesses performance by regularly reviewing each segment’s significant expense categories which include total cost of goods sold and total selling, general and administrative (“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.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

The following tables present our segment information:

Quarter Ended February 28, 2026

Quarter Ended May 30, 2026

Net sales to external customers

5 unchanged sentences

Interest income

Other income, net

Income before income taxes

Quarter Ended May 31, 2025

Net sales to external customers

Intersegment sales

Total net sales

Cost of goods sold

Income (loss) from operations

Interest income

Other loss, net

Income before income taxes

Quarter Ended March 1, 2025

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)

Six Months Ended May 30, 2026

Net sales to external customers

2 unchanged sentences

Cost of goods sold

Other segment items - new store pre-opening costs

Income (loss) from operations

2 unchanged sentences

Income before income taxes

Six Months Ended May 31, 2025

Net sales to external customers

Intersegment sales

Total net sales

Cost of goods sold

Income (loss) from operations

Interest income

Other loss, net

Income before income taxes

Quarter Ended

February 28, 2026

March 1, 2025

Six Months Ended

Depreciation and Amortization

5 unchanged sentences

Identifiable Assets

February 28, 2026

November 29, 2025

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(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 accounts receivable, net, which are associated with our wholesale segment, were $ 14,662 , $ 14,410 , $ 14,218 and $ 13,181 at February 28, 2026, November 29, 2025, March 1, 2025 and November 30, 2024, respectively.

Our accounts receivable, net, which are associated with our wholesale segment, were $ 12,559 , $ 14,410 , $ 12,883 and $ 13,181 at May 30, 2026, November 29, 2025, May 31, 2025 and November 30, 2024, respectively.

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 $ 24,745 , $ 24,969 , $ 25,352 and $ 25,742 as of February 28, 2026, November 29, 2025, March 1, 2025 and November 30, 2024, respectively.

Substantially all of the customer deposits held as of November 29, 2025 related to performance obligations that were satisfied during the current year-to-date period and have therefore been recognized in revenue for the three months ended February 28, 2026.

Similarly, substantially all of the customer deposits held at February 28, 2026 are expected to be recognized as revenue within the next twelve months.

These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $ 25,568 , $ 24,969 , $ 24,029 and $ 25,742 as of May 30, 2026, November 29, 2025, May 31, 2025 and November 30, 2024, respectively.

Similarly, substantially all of the customer deposits held at May 30, 2026 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 February 28, 2026, November 29, 2025, March 1, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,656 , $ 2,662 , $ 2,805 and $ 2,928 , respectively.

At May 30, 2026, November 29, 2025, May 31, 2025 and November 30, 2024, our balance of prepaid commissions included in other current assets was $ 2,716 , $ 2,662 , $ 2,663 and $ 2,928 , respectively.

We exclude from revenue all amounts collected from customers for sales tax.

We do not disclose amounts allocated to remaining unsatisfied performance obligations as they are expected to be satisfied within one year or less.

Disaggregated revenue information for sales of furniture and accessories by product category for the three months ended February 28, 2026 and March 1, 2025, excluding intercompany transactions between our segments, is as follows:

Disaggregated revenue information for sales of furniture and accessories by product category for the three and six months ended May 30, 2026 and May 31, 2025, excluding intercompany transactions between our segments, is as follows:

Quarter Ended

February 28, 2026

March 1, 2025 (1)

May 31, 2025 (1)

Bassett Custom Upholstery

4 unchanged sentences

Consolidated net sales of furniture and accessories

Six Months Ended

May 31, 2025 (1)

Bassett Custom Upholstery

Bassett Leather Imports

Bassett Custom Wood

Bassett Casegoods

Accessories, mattresses and other (2)

Consolidated net sales of furniture and accessories

(1) Certain amounts within each category have been reclassified to conform to the 2026 presentation.

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

Changes to Stockholders ’ Equity

The following changes in our stockholders’ equity occurred during the three months ended February 28, 2026 and March 1, 2025:

The following changes in our stockholders’ equity occurred during the three and six months ended May 30, 2026 and May 31, 2025:

Quarter Ended

February 28, 2026

March 1, 2025

Six Months Ended

Common Stock:

27 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED

FEBRUARY 28, 2026

(Dollars in thousands except share and per share data)

21 unchanged sentences

BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES

FEBRUARY 28, 2026

(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