Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
OPERATING ACTIVITIES:    
Net income $ 5,922,719 $ 6,501,780
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization 6,048,380 5,025,548
Gain on Bargain purchase of acquisition (7,293,756) 0
(Gain) Loss on disposal of property and equipment 31,863 (33,452)
Charge off and amortization of debt issuance cost 1,017,966 215,673
Stock based compensation expense 497,157 203,690
Deferred rent (55,719) 0
Change in reserve for uncollectible accounts (235,514) (211)
Change in reserve for obsolete inventory 364,980 (926,163)
Change in deferred income taxes 4,180,088 3,524,572
Change in other 410,385 0
Changes in assets and liabilities:    
Trade receivables (1,161,438) (2,856,612)
Inventories (4,945,936) (3,811,361)
Prepaid expenses and other current assets 3,452,523 (1,646,527)
Deposits and other assets 798,218 (57,755)
Accounts payable 4,974,948 (2,344,209)
Accrued liabilities (1,582,503) 3,727,670
Income taxes payable (600,391) 351,689
Net cash provided by operating activities 11,823,970 7,874,332
INVESTING ACTIVITIES:    
Acquisition of businesses, net of cash acquired and seller financing provided 0 (47,381,108)
Purchase of intangible assets (683,642) (95,976)
Proceeds from the sale of property and equipment 0 159,911
Purchases of property and equipment (8,710,033) (6,414,971)
Net cash used in investing activities (9,393,675) (53,732,144)
FINANCING ACTIVITIES:    
Net borrowings (payments) under revolver loans 2,121,948 17,148,662
Payments on debt issuance costs (1,318,069) (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 27,776,756 36,984,434
Purchase of common treasury stock (550,427) (699,557)
Payments on related party notes payable 0 0
Payments on notes payable (32,437,420) (3,218,124)
Net cash provided by (used in) financing activities (4,411,212) 49,059,456
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,980,917) 3,201,644
CASH AND CASH EQUIVALENTS, beginning of period 3,972,539 770,895
CASH AND CASH EQUIVALENTS, end of period 1,991,622 3,972,539
Supplemental cash flow disclosures:    
Interest paid 7,894,094 5,325,964
Income taxes paid (refunded) 757,940 (149,307)
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 4,892,631 0
Restated equipment deposit as a purchase of equipment 0 (1,816,855)
Conversion of accrued expense liability to Series B preferred stock 0 2,800,000
Conversion of accrued expense liabilities into common stock 0 584,500
Accrued and unpaid dividends $ 1,168 $ 959