Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
OPERATING ACTIVITIES:    
Net income $ 1,877,555 $ 1,428,573
Adjustments to reconcile net income to net cash provided by (used in) operating activities, net of acquisition:    
Depreciation and amortization 1,395,905 935,047
(Gain) on Bargain purchase of acquisition (3,773,486) 0
(Gain) Loss on disposal of property and equipment (5,294) 0
Amortization of debt issuance cost 58,512 40,136
Stock based compensation expense 79,356 1,443
Change in reserve for uncollectible accounts 14,697 66
Change in reserve for obsolete inventory 18,176 83,613
Change in deferred income taxes 3,410,641 768,135
Changes in assets and liabilities:    
Trade receivables 2,987,973 129,459
Inventories (1,238,904) (1,318,562)
Prepaid expenses and other current assets 3,262,722 140,826
Deposits and other assets 6,627 (55,565)
Accounts payable (1,616,355) (221,388)
Accrued liabilities (172,832) 1,246,047
Income tax payable (1,144) 0
Net cash provided by operating activities 6,304,149 3,177,830
INVESTING ACTIVITIES:    
Acquisition of businesses, net of cash acquired and seller financing provided 0 (47,310,900)
Purchase of intangible assets - Software (24,675) 0
Proceeds from the sale of property and equipment 17,998 0
Purchases of property and equipment (5,323,308) (3,052,298)
Net cash used in investing activities (5,329,985) (50,363,198)
FINANCING ACTIVITIES:    
Net borrowings under revolver loans (5,071,969) 14,056,099
Payments on debt issuance costs 0 (1,155,000)
Payment of series E preferred stock dividends (4,000) 0
Proceeds from issuance of notes payable 3,931,591 35,889,321
Purchase of common treasury stock (249,392) 0
Payments on notes payable (1,769,892) (789,194)
Net cash provided by (used in) financing activities (3,163,662) 48,001,226
INCREASE IN CASH AND CASH EQUIVALENTS (2,189,498) 815,858
CASH AND CASH EQUIVALENTS, beginning of period 3,972,539 770,895
CASH AND CASH EQUIVALENTS, end of period 1,783,041 1,586,753
Supplemental cash flow disclosures:    
Interest paid 1,802,658 790,580
Noncash financing and investing activities:    
Notes payable issued to sellers of Vintage Stock 0 10,000,000
Due to sellers of ApplianceSmart, Inc. 6,500,000 0
Restated equipment deposit as a purchase of equipment 0 1,816,555
Conversion of accrued expense liabilities into common stock 0 3,384,500
Accrued and unpaid dividends $ 292 $ 479