Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended
Dec. 31, 2018
Dec. 31, 2017
OPERATING ACTIVITIES:    
Net income $ 1,530,509 $ 1,877,555
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization 1,481,769 1,395,905
Gain on Bargain purchase of acquisition 0 (3,773,486)
Gain on disposal of property and equipment (1,507,479) (5,294)
Charge off and amortization of debt issuance cost 97,298 58,512
Stock based compensation expense 46,599 79,356
Deferred rent 11,985 0
Change in reserve for uncollectible accounts 66,575 14,697
Change in reserve for obsolete inventory 18,177 18,176
Change in deferred income taxes 527,361 3,410,641
Change in other 168,823 0
Changes in assets and liabilities:    
Trade receivables 2,837,504 2,987,973
Inventories 3,992,612 (1,238,904)
Income taxes receivable 23,753 (1,144)
Prepaid expenses and other current assets 132,968 3,262,722
Deposits and other assets 15,268 6,627
Accounts payable (2,089,587) (1,616,355)
Accrued liabilities 894,413 (172,832)
Net cash provided by operating activities 8,248,548 6,304,149
INVESTING ACTIVITIES:    
Purchase of intangible assets (46,225) (24,675)
Proceeds from the sale of property and equipment 4,377,249 17,998
Purchases of property and equipment (495,544) (5,323,308)
Net cash provided by (used in) investing activities 3,835,480 (5,329,985)
FINANCING ACTIVITIES:    
Net borrowings (payments) under revolver loans (7,346,544) (5,071,969)
Purchase of series E preferred treasury stock 0 (4,000)
Proceeds from issuance of notes payable 0 3,931,591
Purchase of common treasury stock (19,079) (249,392)
Payments on related party notes payable 0 0
Payments on notes payable (3,257,900) (1,769,892)
Net cash used in financing activities (10,623,523) (3,163,662)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,460,505 (2,189,498)
CASH AND CASH EQUIVALENTS, beginning of period 1,991,622 3,972,539
CASH AND CASH EQUIVALENTS, end of period 3,452,127 1,783,041
Supplemental cash flow disclosures:    
Interest paid 1,457,547 1,802,658
Income taxes paid (refunded) 328 0
Noncash financing and investing activities:    
Due to sellers of ApplianceSmart, Inc. less liabilities assumed post acquisition 0 6,500,000
Accrued and unpaid dividends $ 292 $ 292