QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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State or Other Jurisdiction of Incorporation or Organization
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I.R.S. Employer Identification No.
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Address of Principal Executive Offices
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Zip Code
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer ☐
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Accelerated filer ☐
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Smaller reporting company
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Emerging growth company
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Form 10-Q
Page No.
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PART I. FINANCIAL INFORMATION
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Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited)
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4
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5
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6
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7
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8
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9 | |
22 | |
30 |
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30 |
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PART II. OTHER INFORMATION
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31 | |
31 | |
31 | |
31 | |
31 | |
32 | |
32 |
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33 |
October 29,
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January 29,
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October 30,
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||||||||||
2022
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2022
|
2021
|
||||||||||
ASSETS |
Unaudited
|
Unaudited
|
||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and cash equivalents
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$
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$
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$
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||||||
Restricted cash
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|
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|||||||||
Accounts receivable
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|||||||||
Merchandise inventory
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|||||||||
Prepaid expenses and other current assets
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|||||||||
Total current assets
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|||||||||
Restricted cash
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|||||||||
Fixed assets, net
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|||||||||
Operating lease right-of-use assets
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|||||||||
Cash Surrender Value
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|||||||||
Other assets
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|
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|||||||||
TOTAL ASSETS
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$
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|
$
|
|
$
|
|
||||||
LIABILITIES
|
||||||||||||
CURRENT LIABILITIES
|
||||||||||||
Accounts payable
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$
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$
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$
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|
||||||
Short-term borrowings
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|
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|||||||||
Accrued expenses and other current liabilities
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|||||||||
Current portion of operating lease liabilities
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|||||||||
Total current liabilities
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|||||||||
Operating lease liabilities
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|||||||||
Long-term debt
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|||||||||
Other long-term liabilities
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|||||||||
TOTAL LIABILITIES
|
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|
|||||||||
SHAREHOLDERS’ EQUITY
|
||||||||||||
Preferred stock ($
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|
|
|
|||||||||
Common stock ($
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|
|
|
|||||||||
Additional paid-in capital
|
|
|
|
|||||||||
Treasury stock at cost (
|
(
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)
|
(
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)
|
(
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)
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
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)
|
(
|
)
|
||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
|
|
|
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
|
$
|
|
$
|
|
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended
|
|||||||||||||||
October 29,
|
October 30,
|
October 29,
|
October 30,
|
|||||||||||||
2022 |
2021 | 2022 |
2021 |
|||||||||||||
Net revenue
|
$
|
|
$
|
|
$ | $ | ||||||||||
Cost of sales
|
|
|
||||||||||||||
Gross profit
|
|
|
||||||||||||||
Selling, general and administrative expenses
|
|
|
||||||||||||||
Loss from operations
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Interest expense
|
|
|
||||||||||||||
Other income |
( |
) | ( |
) | ||||||||||||
Loss before income tax expense
|
(
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)
|
(
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)
|
( |
) | ( |
) | ||||||||
Income tax expense
|
|
|
||||||||||||||
Net loss
|
$ |
(
|
)
|
$ |
(
|
)
|
$ |
( |
) | $ |
( |
) | ||||
BASIC AND DILUTED LOSS PER SHARE:
|
||||||||||||||||
Basic and diluted loss per common share
|
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Weighted average number of common shares outstanding – basic and diluted
|
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended |
|||||||||||||||
October 29,
|
October 30,
|
October 29,
|
October 30,
|
|||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Net loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) | ||||
Amortization of pension gain
|
|
|
||||||||||||||
Comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) |
Thirteen Weeks Ended October 29, 2022 | ||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity
|
|||||||||||||||||||||||||
Balance as of July 30, 2022
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||
Net loss
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Issuance of shares, net of expenses
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|
||||||||||||||||||||||||
Exercise of warrants |
( |
) | ||||||||||||||||||||||||||||||
Common stock issued-Restricted share units
|
|
|
|
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|
||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of October 29, 2022
|
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Thirty-Nine Weeks Ended October 29, 2022
|
||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity
|
|||||||||||||||||||||||||
Balance as of January 29, 2022
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||
Net loss
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Issuance of shares, net of expenses
|
|
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||||||||
Issuance of warrants
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Exercise of warrants
|
|
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||||||||
Vested restricted of shares |
||||||||||||||||||||||||||||||||
Common stock issued- Director grants
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of October 29, 2022
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Thirteen Weeks Ended October 30,
2021
|
||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity
|
|||||||||||||||||||||||||
Balance as of July 31, 2021
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||
Net loss
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of October 30, 2021
|
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Thirty-Nine Weeks Ended October 30, 2021
|
||||||||||||||||||||||||||||||||
Number of shares outstanding
|
Accumulated
|
Retained
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
Earnings
|
|||||||||||||||||||||||||||||
Common
|
Treasury
|
Common
|
Paid-in
|
Stock
|
Comprehensive
|
(Accumulated
|
Shareholders’
|
|||||||||||||||||||||||||
Shares
|
Shares
|
Stock
|
Capital
|
At Cost
|
Loss
|
Deficit)
|
Equity
|
|||||||||||||||||||||||||
Balance as of January 30, 2021
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||
Net loss
|
-
|
-
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Issuance of warrants
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||||||
Sales of shares, net of expense
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Exercise of stock options
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Common stock issued- Director grants
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance as of October 30, 2021
|
|
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Thirty-nine Weeks Ended |
||||||||
October 29,
|
October 30,
|
|||||||
2022 |
2021 |
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation of fixed assets
|
|
|
||||||
Amortization of intangible assets
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
Amortization of ROU asset
|
|
|
||||||
Amortization of warrant interest
|
||||||||
Interest on long term debt
|
||||||||
Change in cash surrender value
|
|
(
|
)
|
|||||
Forgiveness of PPP Loan
|
( |
) | ||||||
Changes in operating assets and liabilities that provide (use) cash:
|
||||||||
Accounts receivable
|
(
|
)
|
|
|||||
Merchandise inventory
|
(
|
)
|
(
|
)
|
||||
Prepaid expenses and other current assets
|
(
|
)
|
(
|
)
|
||||
Other long-term assets
|
|
|
||||||
Accounts payable
|
|
(
|
)
|
|||||
Accrued expenses and other current liabilities
|
(
|
)
|
|
|||||
Other long-term liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
INVESTING ACTIVITIES:
|
||||||||
Purchases of fixed assets
|
( |
) | ( |
) | ||||
Net cash provided by (used in) investing activities
|
( |
) | ( |
) | ||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from long term borrowings
|
|
|
||||||
Proceeds from issuance of shares, net of expense
|
||||||||
Proceeds from exercise of stock options
|
||||||||
Payments of PPP loan
|
( |
) | ||||||
Payment of short term borrowings
|
( |
) | ( |
) | ||||
Payments of long term borrowings
|
|
(
|
)
|
|||||
Proceeds from short term borrowings
|
||||||||
Net cash provided by (used in) financing activities
|
|
|
||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
(
|
)
|
(
|
)
|
||||
Cash, cash equivalents, and restricted cash, beginning of period
|
|
|
||||||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
|
$
|
|
||||
Supplemental disclosures and non-cash investing and financing activities: |
||||||||
Interest paid |
$ | $ | ||||||
Warrants issued with debt |
$ | $ |
•
|
We are partner obsessed. Our customers are our partners. Every decision is focused on building mutually beneficial relationships that deliver results.
|
•
|
We are insights driven. We make data actionable. Our curiosity drives us to discover opportunities early and often.
|
•
|
We create simplicity. We challenge the status quo. We take the complicated and simplify it.
|
•
|
We take ownership. We make things happen. We hold ourselves accountable and have a bias for action.
|
•
|
We empower each other. We welcome and learn from diverse experiences. Our empathy ignites innovation and empowers meaningful change.
|
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended
|
|||||||||||||||
|
October 29,
|
October 30,
|
October 29,
|
October 30,
|
||||||||||||
(amounts in thousands)
|
2022 |
2021 |
2022 |
2021 |
||||||||||||
Amortized intangible assets:
|
||||||||||||||||
Technology
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Trade names and trademarks
|
|
|
|
|
||||||||||||
Total amortization expense
|
$
|
|
$
|
|
$
|
|
$
|
|
October 29,
|
January 29,
|
October 30,
|
||||||||||
2022 | 2022 |
2021 |
||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Restricted cash
|
|
|
|
|||||||||
Total cash, cash equivalents and restricted cash
|
$
|
|
$
|
|
$
|
|
Employee Stock Award Plans
|
||||||||||||||||||||
Number of
Shares
Subject To
Option
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Other
Share
Awards (1) |
Weighted
Average
Grant Fair
Value
|
||||||||||||||||
Balance January 29, 2022
|
|
$
|
|
|
$ | |||||||||||||||
Granted
|
|
|
|
|||||||||||||||||
Forfeited
|
(
|
)
|
|
|
( |
) | ||||||||||||||
Canceled
|
(
|
)
|
|
-
|
||||||||||||||||
Exercised
|
|
|
-
|
( |
) | |||||||||||||||
Balance October 29, 2022
|
|
$
|
|
|
$ | |||||||||||||||
Exercisable October 29, 2022
|
|
$
|
|
|
$ |
Exercise
|
Number
|
|||
Price
|
Outstanding
|
|||
$
|
|
|
||
$
|
|
|
||
$
|
|
|
||
|
Thirteen Weeks Ended
|
Thirty-nine Weeks Ended
|
|||||||||||||||
(amounts in thousands)
|
October 29,
|
October 30,
|
October 29,
|
October 30,
|
||||||||||||
|
2022 |
2021 |
2022 |
2021 |
||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net periodic pension cost
|
$
|
|
$
|
|
$
|
|
$
|
|