Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Operating activities:    
Net income $ (102,000) $ 24,741,000 [1]
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization 14,257,000 7,168,000
Amortization of seller note discount 1,799,000 0
Loss on disposal of property and equipment 60,000 510,000
Amortization of debt issuance costs 78,000 (78,000)
Loss on impairment of goodwill and intangibles 0 4,910,000
Gain on bankruptcy settlement 0 (11,501,000)
Stock based compensation expense 446,000 37,000
Loss on write off an ROU 0 522,000
Amortization of right of use assets 4,800,000 1,050,000
Disposal of SW Financial, net of cash retained 1,509,000 0
Change in reserve for uncollectible accounts 1,436,000 71,000
Change in reserve for obsolete inventory 1,402,000 582,000
Changes in assets and liabilities, net of acquisitions:    
Trade receivables 792,000 (1,129,000)
Inventories (9,544,000) (20,213,000)
Prepaid expenses and other current assets 2,558,000 1,663,000
Change in deferred income taxes (2,853,000) 6,022,000
Deposits and other assets (586,000) 34,000
Accounts payable 556,000 (2,376,000)
Accrued liabilities 6,103,000 (364,000)
Income taxes receivable 3,287,000 (5,279,000)
Other liabilities (3,000) 31,000
Net cash provided by operating activities 25,995,000 6,401,000
Investing activities:    
Better Backers acquisition 0 (3,166,000)
Flooring Liquidators acquisition, net of cash acquired (32,669,000) 0
PMW acquisition, net of cash acquired (20,000,000) 0
Purchases of property and equipment (10,002,000) (12,128,000)
Kinetic acquisition, net of cash acquired 0 (24,757,000)
Cal Coast Carpets acquisition (1,300,000) 0
Proceeds from the sale of property and equipment 87,000 15,000
Net cash used in investing activities (63,884,000) (40,036,000)
Financing activities:    
Net borrowings under revolver loans 13,672,000 21,577,000
Proceeds from failed sales and leaseback transaction 12,737,000 8,179,000
Cash paid for taxes on net settlement of stock option exercise (28,000) 0
Proceeds from issuance of notes payable 15,773,000 17,000,000
Payments on notes payable (8,048,000) (10,503,000)
Purchase of common treasury stock (991,000) (2,696,000)
Payments for debt acquisition costs (98,000) 0
Proceeds from issuance of related party notes payable 7,000,000 0
Payments on financing leases (2,419,000) (61,000)
Debtor in possession cash 0 75,000
Net cash provided by financing activities 37,598,000 33,571,000
Net decrease in cash and cash equivalents (291,000) (64,000)
Cash and cash equivalents, beginning of year 4,600,000 4,664,000
Cash and cash equivalents, end of year 4,309,000 4,600,000
Supplemental cash flow disclosures:    
Interest paid 7,801,000 3,962,000
Income taxes paid, net 379,000 6,149,000
Flooring Liquidators    
Operating activities:    
Net income (102,000) 24,741,000
Noncash financing and investing activities:    
Notes Issued 31,700,000 0
Stock Issued 3,200,000 0
Liabilities Assumed 2,000,000 0
PMW    
Operating activities:    
Net income (102,000) 24,741,000
Noncash financing and investing activities:    
Notes Issued 2,500,000 0
Liabilities Assumed $ 2,675,000 $ 0
[1] Live for the year ended September 30, 2022. Includes Kinetic from June 29, 2022 through September 30, 2022.