| Schedule of Balance Sheet Detail Information |
Balance Sheet information is as follows:
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
Trade receivables, current, net:
|
|
|
|
|
|
|
|
|
|
Accounts receivable, current
|
|
$
|
20,197
|
|
|
$
|
12,641
|
|
|
Less: Reserve for doubtful accounts
|
|
|
(76
|
)
|
|
|
(740
|
)
|
|
|
|
$
|
20,121
|
|
|
$
|
11,901
|
|
|
Trade receivables , long term, net:
|
|
|
|
|
|
|
|
|
|
Accounts receivable, long term
|
|
$
|
196
|
|
|
$
|
196
|
|
|
Less: Reserve for doubtful accounts
|
|
|
(196
|
)
|
|
|
(196
|
)
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Total trade receivables, net:
|
|
|
|
|
|
|
|
|
|
Gross trade receivables
|
|
$
|
20,393
|
|
|
$
|
12,837
|
|
|
Less: Reserve for doubtful accounts
|
|
|
(272
|
)
|
|
|
(936
|
)
|
|
|
|
$
|
20,121
|
|
|
$
|
11,901
|
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
Inventory, net
|
|
|
|
|
|
|
|
|
|
Raw materials
|
|
$
|
13,175
|
|
|
$
|
8,116
|
|
|
Work in progress
|
|
|
11,747
|
|
|
|
2,141
|
|
|
Finished goods
|
|
|
25,009
|
|
|
|
6,785
|
|
|
Merchandise
|
|
|
17,729
|
|
|
|
22,883
|
|
|
|
|
|
67,660
|
|
|
|
39,925
|
|
|
Less: Inventory reserves
|
|
|
(3,135
|
)
|
|
|
(682
|
)
|
|
|
|
$
|
64,525
|
|
|
$
|
39,243
|
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
Property and equipment, net:
|
|
|
|
|
|
|
|
|
|
Building and improvements
|
|
$
|
9,908
|
|
|
$
|
10,827
|
|
|
Transportation equipment
|
|
|
480
|
|
|
|
82
|
|
|
Machinery and equipment
|
|
|
27,217
|
|
|
|
20,035
|
|
|
Furnishings and fixtures
|
|
|
2,908
|
|
|
|
2,741
|
|
|
Office, computer equipment and other
|
|
|
3,445
|
|
|
|
2,544
|
|
|
|
|
|
43,958
|
|
|
|
36,229
|
|
|
Less: Accumulated depreciation
|
|
|
(13,582
|
)
|
|
|
(13,633
|
)
|
|
|
|
$
|
30,376
|
|
|
$
|
22,596
|
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
Intangible assets, net:
|
|
|
|
|
|
|
|
|
|
Domain name and marketing related intangibles
|
|
$
|
90
|
|
|
$
|
90
|
|
|
Lease intangibles
|
|
|
—
|
|
|
|
1,033
|
|
|
Customer relationship intangibles
|
|
|
2,689
|
|
|
|
2,689
|
|
|
Purchased software
|
|
|
121
|
|
|
|
808
|
|
|
|
|
|
2,900
|
|
|
|
4,620
|
|
|
Less: Accumulated amortization
|
|
|
(1,837
|
)
|
|
|
(2,421
|
)
|
|
|
|
$
|
1,063
|
|
|
$
|
2,199
|
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
Accrued liabilities:
|
|
|
|
|
|
|
|
|
|
Accrued payroll and bonuses
|
|
$
|
4,178
|
|
|
$
|
3,316
|
|
|
Accrued sales and use taxes
|
|
|
1,251
|
|
|
|
1,176
|
|
|
Accrued property taxes
|
|
|
270
|
|
|
|
191
|
|
|
Accrued rent
|
|
|
—
|
|
|
|
604
|
|
|
Accrued gift card and escheatment liability
|
|
|
1,534
|
|
|
|
1,461
|
|
|
Accrued interest payable
|
|
|
280
|
|
|
|
181
|
|
|
Accrued accounts payable and bank overdrafts
|
|
|
3,818
|
|
|
|
591
|
|
|
Accrued professional fees
|
|
|
2,191
|
|
|
|
4,660
|
|
|
Customer deposits
|
|
|
169
|
|
|
|
240
|
|
|
Accrued expenses - other
|
|
|
1,131
|
|
|
|
564
|
|
|
|
|
$
|
14,822
|
|
|
$
|
12,984
|
|
|
| Summary of Warranty Reserve Activity |
During 2019, the Company became the principal for certain extended warranties, as a result, warranty reserves are included in accrued liabilities in our consolidated balance sheet. The following table summarizes the warranty reserve activity for the year ended September 30, 2020:
|
Beginning balance, September 30, 2019
|
|
$
|
292
|
|
|
Warranties issued/accrued
|
|
|
—
|
|
|
Warranty settlements
|
|
|
(86
|
)
|
|
Ending balance, September 30, 2020
|
|
$
|
206
|
|
|
| Schedule of Balance Sheet Detail Information |
ApplianceSmart’s balance sheet as of September 30, 2020 is below. The debtor in possession assets and liabilities are primarily related to assets and liabilities incurred pre-petition and are subject to compromise.
|
Assets
|
|
|
|
|
|
Cash
|
|
$
|
134
|
|
|
Inventories, net
|
|
|
381
|
|
|
Prepaid expenses and other current assets
|
|
|
5
|
|
|
Total debtor in possession assets
|
|
|
520
|
|
|
Right of use asset - operating leases
|
|
|
715
|
|
|
Total assets
|
|
$
|
1,235
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
5,943
|
|
|
Accrued liabilities
|
|
|
3,459
|
|
|
Notes payable related parties , including current portion
|
|
|
2,826
|
|
|
Total debtor in possession liabilities
|
|
|
12,228
|
|
|
Accounts payable
|
|
|
152
|
|
|
Accrued liabilities
|
|
|
895
|
|
|
Lease liability, including current portion
|
|
|
738
|
|
|
Crossroads Financial Revolver Loan
|
|
|
858
|
|
|
Taxes payable
|
|
|
870
|
|
|
Other current obligations
|
|
|
14
|
|
|
Total liabilities
|
|
|
15,755
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Intercompany
|
|
|
(2,358
|
)
|
|
Accumulated deficit
|
|
|
(12,162
|
)
|
|
Total stockholders' equity
|
|
|
(14,520
|
)
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,235
|
|
|
| Summary of Statement of Operations |
ApplianceSmart’s statement of operations for the period of January 1, 2020 through September 30, 2020 is below:
|
Revenues
|
|
$
|
2,748
|
|
|
Cost of revenues
|
|
|
1,538
|
|
|
Gross profit
|
|
|
1,210
|
|
|
Operating expenses:
|
|
|
|
|
|
General and administrative expenses
|
|
|
1,596
|
|
|
Sales and marketing expenses
|
|
|
227
|
|
|
Total operating expenses
|
|
|
1,823
|
|
|
Operating loss
|
|
|
(613
|
)
|
|
Other (expense) income:
|
|
|
|
|
|
Interest expense, net
|
|
|
(160
|
)
|
|
Gain on lease settlement, net
|
|
|
1,514
|
|
|
Other expense
|
|
|
(243
|
)
|
|
Total other income, net
|
|
|
1,111
|
|
|
Net income
|
|
$
|
498
|
|
|