Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies (Tables)

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2021

The following table summarizes the warranty reserve activity for the year ended September 30, 2021:


Beginning balance, September 30, 2019	$	292
Warranties issued/accrued		—
Warranty settlements		(86	)
Ending balance, September 30, 2020		206
Warranty issued/accrued		—
Warranties settlements		(101	)
Ending balance, September 30, 2021	$	105

ApplianceSmart Inc

Schedule of Balance Sheet Detail Information

ApplianceSmart’s balance sheets as of September 30, 2021 and 2020, respectively, are shown below. The debtor in possession assets and liabilities are primarily related to assets and liabilities incurred pre-petition and are subject to compromise.


	As of September 30, 2021			As of September 30, 2020
Assets
Cash	$	74		$	134
Inventories, net		106			381
Prepaid expenses and other current assets		—			5
Total debtor in possession assets		180			520
Right of use asset - operating leases		612			715
Other		7			—
Total assets	$	799		$	1,235
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable	$	5,435		$	5,943
Accrued liabilities		2,874			3,459
Notes payable related parties , including current portion		2,826			2,826
Total debtor in possession liabilities		11,135			12,228
Accounts payable		140			152
Accrued liabilities		619			895
Lease liability, including current portion		640			738
Crossroads Financial Revolver Loan		—			858
Taxes payable		870			870
Other current obligations		—			14
Total liabilities		13,404			15,755
Stockholders' equity:
Intercompany		2,496			(2,358	)
Accumulated deficit		(15,101	)		(12,162	)
Total stockholders' equity		(12,605	)		(14,520	)
Total liabilities and stockholders' equity	$	799		$	1,235

Summary of Statement of Operations

ApplianceSmart’s statements of operations for the years ended September 30, 2021 and 2020, respectively, are shown below:


	For the year ended September 30, 2021			For the year ended September 30, 2020
Revenues	$	1,103		$	2,748
Cost of revenues		585			1,538
Gross profit		518			1,210
Operating expenses:
General and administrative expenses		838			1,596
Sales and marketing expenses		—			227
Total operating expenses		838			1,823
Operating loss		(320	)		(613	)
Other (expense) income:
Interest expense, net		(97	)		(160	)
Accounts payable settlement		694			—
Gain on lease settlement, net		—			1,514
Other income (expense)		317			(243	)
Total other income, net		914			1,111
Net income	$	594		$	498