Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies (Tables)

Commitments and Contingencies (Tables)

3 Months Ended

Dec. 31, 2021

The following table summarizes the warranty reserve activity for the three months ended December 31, 2021:


Beginning balance, September 30, 2021	$	105
Warranties issued/accrued		—
Warranty settlements		(25	)
Ending balance, December 31, 2021	$	80

ApplianceSmart Inc

Schedule of Balance Sheet Detail Information

ApplianceSmart’s balance sheets are shown below (in 000's). The debtor in possession assets and liabilities are primarily related to assets and liabilities incurred pre-petition and are subject to compromise.


	December 31, 2021			September 30, 2021
	(Unaudited)
Assets
Cash	$	55		$	74
Trade receivables, net		29			—
Inventories, net		29			106
Prepaid expenses and other current assets		30			—
Total debtor in possession assets		143			180
Right of use asset - operating leases		582			612
Other		—			7
Total assets	$	725		$	799
Liabilities and Stockholders' Deficit
Liabilities:
Accounts payable	$	5,396		$	5,435
Accrued liabilities		2,962			2,874
Notes payable related parties, including current portion		2,826			2,826
Total debtor in possession liabilities		11,184			11,135
Accounts payable		45		140
Accrued liabilities		476			619
Lease obligation - operating leases		612			640
Taxes payable		878			870
Total liabilities		13,195			13,404
Stockholders' equity:
Intercompany		2,870			2,496
Accumulated deficit		(15,340	)		(15,101	)
Total stockholders' deficit		(12,470	)		(12,605	)
Total liabilities and stockholders' deficit	$	725		$	799

Summary of Statement of Operations

ApplianceSmart’s statements of operations for the three months ended December 31, 2021 and 2020 are shown below (in 000's):


	Three months ended December 31, 2021 (unaudited)			Three months ended December 31, 2020 (unaudited)
Revenues	$	96		$	296
Cost of revenues		106			165
Gross profit		(10	)		131

Operating expenses:
General and administrative expenses		219			208
Total operating expenses		219			208
Operating income		(229	)		(77	)
Other (expense) income:
Interest expense, net		—			(46	)
Accounts payable settlement		(10	)		44
Other income (expense)		—			279
Total other (expense) income, net		(10	)		277
Income before provision for income taxes	$	(239	)	$	200