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 ($)
 6 Months Ended
Mar. 31, 2018
Mar. 31, 2017
OPERATING ACTIVITIES:    
Net income $ 3,800,828 $ 3,269,239
Adjustments to reconcile net income to net cash provided by (used in) operating activities, net of acquisition:    
Depreciation and amortization 2,703,164 2,023,245
Gain on Bargain purchase of acquisition (3,773,486) 0
Loss on disposal of property and equipment 14,158 0
Amortization of debt issuance cost 117,024 98,647
Stock based compensation expense 140,185 69,520
Change in reserve for uncollectible accounts 9,907 38,432
Change in reserve for obsolete inventory 36,353 155,266
Change in restricted cash 750,000 0
Change in deferred income taxes 3,807,451 1,869,295
Changes in assets and liabilities:    
Trade receivables (115,768) (1,019,852)
Inventories (2,641,360) (2,595,120)
Prepaid expenses and other current assets 2,418,461 632,410
Deposits and other assets 831 (57,755)
Accounts payable 343,499 (1,150,525)
Accrued liabilities (1,091,966) (373,633)
Income tax payable (13,920) 433,519
Net cash provided by operating activities 6,505,361 3,392,688
INVESTING ACTIVITIES:    
Acquisition of businesses, net of cash acquired and seller financing provided 0 (47,310,900)
Purchase of intangible assets - Software (397,204) (96,659)
Proceeds from the sale of property and equipment 10,000 0
Purchases of property and equipment (6,526,110) (5,283,507)
Net cash used in investing activities (6,913,314) (52,691,066)
FINANCING ACTIVITIES:    
Net borrowings (payments) under revolver loans (775,668) 15,155,743
Payments on debt issuance costs 0 (1,155,000)
Payment of series E preferred stock dividends 0 (959)
Purchase of series E preferred treasury stock (4,000) 0
Proceeds from issuance of notes payable 3,931,591 36,984,434
Purchase of common treasury stock (377,447) 0
Payments on notes payable (3,839,798) (1,704,286)
Net cash provided by (used in) financing activities (1,065,322) 49,279,932
DECREASE IN CASH AND CASH EQUIVALENTS (1,473,275) (18,446)
CASH AND CASH EQUIVALENTS, beginning of period 3,972,539 770,895
CASH AND CASH EQUIVALENTS, end of period 2,499,264 752,449
Supplemental cash flow disclosures:    
Interest paid 3,638,625 2,547,563
Noncash financing and investing activities:    
Notes payable issued to sellers of Vintage Stock 0 10,000,000
Due to sellers of ApplianceSmart, Inc. less liabilities assumed post acquisition 4,598,205 0
Restated equipment deposit as a purchase of equipment 0 (1,816,855)
Conversion of accrued expense liabilities into common stock 0 3,384,500
Accrued and unpaid dividends $ 584 $ 959