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 ($)
 6 Months Ended
Mar. 31, 2019
Mar. 31, 2018
OPERATING ACTIVITIES:    
Net income $ 2,003,915 $ 3,800,828
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization 2,974,189 2,703,164
Non-cash asset retirements 104,185 0
Gain on Bargain purchase of acquisition 0 (3,773,486)
Loss on disposal of property and equipment (1,507,479) 14,158
Amortization of debt issuance cost 193,288 117,024
Stock based compensation expense 78,201 140,185
Deferred rent 17,343 0
Change in reserve for uncollectible accounts 391,264 9,907
Change in reserve for obsolete inventory (613,646) 36,353
Change in deferred income taxes 689,287 3,807,451
Change in other 232,341 0
Changes in assets and liabilities:    
Trade receivables 1,040,608 (115,768)
Inventories 3,711,595 (2,641,360)
Income taxes receivable (56,346) 0
Prepaid expenses and other current assets 371,582 2,418,461
Deposits and other assets 22,947 831
Accounts payable (2,956,451) 343,499
Accrued liabilities 288,986 193,781
Income taxes payable 0 (13,920)
Net cash provided by operating activities 6,985,809 7,041,108
INVESTING ACTIVITIES:    
Purchase of intangible assets (66,854) (397,204)
Proceeds from the sale of property and equipment 4,377,249 10,000
Purchases of property and equipment (963,475) (6,526,110)
Net cash provided by (used in) investing activities 3,346,920 (6,913,314)
FINANCING ACTIVITIES:    
Net payments under revolver loans (2,515,997) (775,668)
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 (321,462) (377,447)
Payment of debt issuance costs (118,457) 0
Payments on related party notes payable (100,000) 0
Payments on notes payable (6,726,442) (3,839,798)
Net cash used in financing activities (9,782,358) (1,065,322)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 550,371 (937,528)
Restricted Cash, beginning of period 750,447 0
Unrestricted cash and cash equivalents, beginning of period 1,991,622 3,972,539
TOTAL CASH AND CASH EQUIVALENTS, beginning of period 2,742,069 3,972,539
Restricted Cash, end of period 0 535,747
Unrestricted cash and cash equivalents, end of period 3,292,440 2,499,264
TOTAL CASH AND CASH EQUIVALENTS, end of period 3,292,440 3,035,011
Supplemental cash flow disclosures:    
Interest paid 2,953,160 3,638,625
Income taxes paid (refunded) 90,572 0
Noncash financing and investing activities:    
Due to sellers of ApplianceSmart, Inc. less liabilities assumed post acquisition 0 4,598,205
Accrued and unpaid dividends $ 584 $ 584