Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Jun. 30, 2018
Jun. 30, 2017
OPERATING ACTIVITIES:    
Net income $ 5,877,866 $ 5,397,282
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization 4,524,397 3,112,786
Gain on Bargain purchase of acquisition (7,418,375) 0
Loss on disposal of property and equipment 4,615 55,703
Charge off and amortization of debt issuance cost 930,695 157,158
Stock based compensation expense 447,970 137,011
Deferred rent 133,241 0
Change in reserve for uncollectible accounts 148,714 (39,865)
Change in reserve for obsolete inventory (45,470) (771,971)
Change in deferred income taxes 3,612,623 3,020,553
Changes in assets and liabilities:    
Trade receivables (1,000,496) (2,908,689)
Inventories (1,806,167) (1,760,954)
Prepaid expenses and other current assets 2,297,475 308,373
Deposits and other assets (5,952) (57,755)
Accounts payable 1,981,807 495,296
Accrued liabilities 27,215 (449,799)
Income tax payable (1,472) 318,144
Net cash provided by operating activities 9,708,686 7,013,273
INVESTING ACTIVITIES:    
Acquisition of businesses, net of cash acquired and seller financing provided 0 (47,310,900)
Purchase of intangible assets - Software (545,982) (124,230)
Proceeds from the sale of property and equipment 10,000 37,920
Purchases of property and equipment (7,910,430) (5,936,900)
Net cash used in investing activities (8,446,412) (53,334,110)
FINANCING ACTIVITIES:    
Net borrowings (payments) under revolver loans 1,302,148 17,152,852
Payments on debt issuance costs (1,263,011) (1,155,000)
Payment of series E preferred stock dividends 0 (959)
Purchase of series E preferred treasury stock (4,000) 0
Proceeds from issuance of notes payable 27,931,591 36,984,434
Purchase of common treasury stock (402,328) (496,366)
Payments on related party notes payable (158,628) 0
Payments on notes payable (30,347,569) (2,659,967)
Net cash provided by (used in) financing activities (2,941,797) 49,824,994
DECREASE IN CASH AND CASH EQUIVALENTS (1,679,523) 3,504,157
CASH AND CASH EQUIVALENTS, beginning of period 3,972,539 770,895
CASH AND CASH EQUIVALENTS, end of period 2,293,016 4,275,052
Supplemental cash flow disclosures:    
Interest paid 6,349,977 4,340,486
Income taxes paid 328,500 103,704
Noncash financing and investing activities:    
Notes payable issued to sellers of Vintage Stock 0 10,000,000
Due to sellers of ApplianceSmart, Inc. less liabilities assumed post acquisition 4,598,205 0
Restated equipment deposit as a purchase of equipment 0 (1,816,855)
Conversion of accrued expense liability to Series B preferred stock 0 2,800,000
Conversion of accrued expense liabilities into common stock 0 584,500
Accrued and unpaid dividends $ 876 $ 479