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What changed in BASSETT FURNITURE INDUSTRIES INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of BASSETT FURNITURE INDUSTRIES INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+378 added−352 removedSource: 10-K (2025-02-10) vs 10-K (2024-01-25)

Top changes in BASSETT FURNITURE INDUSTRIES INC's 2024 10-K

378 paragraphs added · 352 removed · 285 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWholesale shipments by category for the last three fiscal years, excluding intercompany sales to our retail segment, are summarized below: 2023 2022 2021 External Intercompany Total External Intercompany Total External Intercompany Total Bassett Custom Upholstery $ 89,005 $ 66,363 $ 155,368 62.4 % $ 124,565 $ 82,437 $ 207,002 63.8 % $ 105,445 $ 69,533 $ 174,978 59.2 % Bassett Leather 26,701 1,171 27,872 11.2 % 35,953 76 36,029 11.1 % 36,157 61 36,218 12.3 % Bassett Custom Wood 17,357 20,070 37,427 15.0 % 22,534 24,764 47,298 14.6 % 24,079 24,066 48,145 16.3 % Bassett Casegoods 12,329 15,915 28,244 11.3 % 15,628 18,612 34,240 10.5 % 17,378 18,610 35,988 12.2 % Total $ 145,392 $ 103,519 $ 248,911 100.0 % $ 198,680 $ 125,889 $ 324,569 100.0 % $ 183,059 $ 112,270 $ 295,329 100.0 % Approximately 22% of our 2023 and 2022 wholesale sales were of imported product compared to 24% in 2020.
Biggest changeWholesale shipments by category for the last three fiscal years, excluding intercompany sales to our retail segment, are summarized below: 2024* 2023 2022 External Intercompany Total External Intercompany Total External Intercompany Total Bassett Custom Upholstery $ 79,344 $ 55,168 $ 134,512 64.8 % $ 89,005 $ 66,363 $ 155,368 62.4 % $ 124,565 $ 82,437 $ 207,002 63.8 % Bassett Leather 15,705 1,919 17,624 8.5 % 26,701 1,171 27,872 11.2 % 35,953 76 36,029 11.1 % Bassett Custom Wood 14,075 16,674 30,749 14.8 % 17,357 20,070 37,427 15.0 % 22,534 24,764 47,298 14.6 % Bassett Casegoods 11,317 13,260 24,577 11.8 % 12,329 15,915 28,244 11.3 % 15,628 18,612 34,240 10.5 % Total $ 120,441 $ 87,021 $ 207,462 100.0 % $ 145,392 $ 103,519 $ 248,911 100.0 % $ 198,680 $ 125,889 $ 324,569 100.0 % *53 weeks for fiscal 2024 as compared with 52 weeks for fiscal 2023 and 2022.
In addition to the furniture that we manufacture domestically, we source most of our formal bedroom and dining room furniture (casegoods) and certain leather upholstery offerings from several foreign plants, primarily in Vietnam and China.
In addition to the furniture that we manufacture domestically, we source most of our formal bedroom and dining room furniture (casegoods) and certain leather upholstery offerings from several foreign plants, primarily in Vietnam.
Our products are sold primarily through a network of Company-owned and licensee-owned branded stores under the Bassett Home Furnishings (“BHF”) name, with additional distribution through other wholesale channels including multi-line furniture stores, many of which feature Bassett galleries or design centers. We also sell our products through our newly redesigned website at www.bassettfurniture.com .
Our products are sold primarily through a network of Company-owned and licensee-owned branded stores under the Bassett Home Furnishings (“BHF”) name, with additional distribution through other wholesale channels including multi-line furniture stores, many of which feature Bassett galleries or design centers. We also sell our products through our website at www.bassettfurniture.com.
It continues to be Bassett’s policy to be equitable and impartial in our relations with our associates and to base all employment-related decisions upon valid, job-related factors, without regard to race, color, religion, national origin, age, sex, physical or mental disability, genetic information, veteran or other protected status. “Sex” includes gender identity and gender expression, transgender status, and pregnancy.
It continues to be Bassett’s policy to be equitable and impartial in our relations with our associates and to base all employment-related decisions upon valid, job-related factors, without regard to race, color, religion, national origin, age, sex, gender identity and gender expression, transgender status, pregnancy, physical or mental disability, genetic information, veteran or other protected status.
Environmental and Civic Responsibility Representing our commitment to sustainably sourced hardwoods, each Arbor Day since 2021, over 30 of our associates travel to central Ohio to take part in the planting of Appalachian hardwood seedlings. This event is hosted by our BenchMade supply partners, and over 170,000 trees have been planted to date – and counting.
Environmental and Civic Responsibility Representing our commitment to sustainably sourced hardwoods, each Arbor Day since 2021, over 30 of our associates travel to central Ohio to take part in the planting of Appalachian hardwood seedlings. This event is hosted by our BenchMade supply partners, and over 200,000 trees have been planted to date – and counting.
We were founded in 1902 and incorporated under the laws of Virginia in 1930. Our rich 121-year history has instilled the principles of quality, value, and integrity in everything we do, while simultaneously providing us with the expertise to respond to ever-changing consumer tastes and meet the demands of a global economy.
We were founded in 1902 and incorporated under the laws of Virginia in 1930. Our rich 122-year history has instilled the principles of quality, value, and integrity in everything we do, while simultaneously providing us with the expertise to respond to ever-changing consumer tastes and meet the demands of a global economy.
Retail Segment Overview – Company-Owned Retail Stores The retail—Company-owned stores segment consists of 56 BHF stores that provide consumers with a friendly and casual environment for buying furniture and accessories. The retail furniture industry remains very competitive and includes local furniture stores, regional furniture retailers, national department and chain stores, single-vendor branded retailers and on-line retailers.
Retail Segment Overview – Company-Owned Retail Stores The retail—Company-owned stores segment consists of 58 BHF stores that provide consumers with a friendly and casual environment for buying furniture and accessories. The retail furniture industry remains very competitive and includes local furniture stores, regional furniture retailers, national department and chain stores, single-vendor branded retailers and on-line retailers.
Over 75% of our wholesale revenues are derived from products that are manufactured in the United States using a mix of domestic and globally sourced components and raw materials. During the first quarter of 2022, we entered into a definitive agreement to sell substantially all of the assets of our wholly-owned subsidiary, Zenith Freight Lines, LLC (“Zenith”) to J.B.
Approximately 80% of our wholesale revenues are derived from products that are manufactured in the United States using a mix of domestic and globally sourced components and raw materials. During the first quarter of 2022, we entered into a definitive agreement to sell substantially all of the assets of our wholly-owned subsidiary, Zenith Freight Lines, LLC (“Zenith”) to J.B.
Operating Segments We have strategically aligned our business into three reportable segments: ● Wholesale ● Retail—Company-owned stores ● Corporate and other Wholesale Segment Overview The wholesale segment is involved principally in the design, manufacturing and sourcing of furniture products that are distributed through our BHF store network (both Company-owned and licensee-owned stores) and various independent retailers.
Operating Segments We have strategically aligned our business into two reportable segments: ● Wholesale ● Retail—Company-owned stores Wholesale Segment Overview The wholesale segment is involved principally in the design, manufacturing and sourcing of furniture products that are distributed through our BHF store network (both Company-owned and licensee-owned stores) and various independent retailers.
Headcount by segment is as follows: ● 705 in the wholesale segment ● 496 in the retail segment ● 188 in the corporate and other segment We approach our workplace culture by being Invested … In Each Other , the tenets of which include fostering a workplace that promotes respect for each other, investing in our associates’ well-being, providing safe and comfortable work environments, offering opportunities to develop personally and professionally, being good stewards of the environment, and giving back to the communities in which we work and live.
Headcount by segment is as follows: ● 644 in the wholesale segment ● 453 in the retail segment ● 131 in the corporate and other segment We approach our workplace culture by being Invested … In Each Other , the tenets of which include fostering a workplace that promotes respect for each other, investing in our associates’ well-being, providing safe and comfortable work environments, offering opportunities to develop personally and professionally, being good stewards of the environment, and giving back to the communities in which we work and live.
With 87 BHF stores at November 25, 2023, we have leveraged our strong brand name in furniture into a network of Company-owned and licensed stores that focus on providing consumers with a friendly and casual environment for buying furniture and accessories.
With 87 BHF stores at November 30, 2024, we have leveraged our strong brand name in furniture into a network of Company-owned and licensed stores that focus on providing consumers with a friendly and casual environment for buying furniture and accessories.
The dollar value of our wholesale backlog, representing orders received but not yet shipped to the BHF store network or independent dealers, was $18,478 at November 25, 2023 and $35,336 at November 26, 2022. 3 We use lumber, fabric, leather, foam and other materials in the production of wood and upholstered furniture.
The dollar value of our wholesale backlog, representing orders received but not yet shipped to the BHF store network or independent dealers, was $21,750 at November 30, 2024 and $18,478 at November 25, 2023. 3 We use lumber, fabric, leather, foam and other materials in the production of wood and upholstered furniture.
As a whole, our store network which includes 31 licensee-owned stores, ranks in the top 30 in retail furniture sales in the United States.
As a whole, our store network which includes 29 licensee-owned stores, ranks in the top 40 in retail furniture sales in the United States.
More details about our commitment to preventing discrimination and harassment in our workplaces are available on our website. 5 Quality of Life We continue to invest in the physical and mental well-being of our associates, their spouses and their children. ● We offer several free online mental and behavioral health resources, with unlimited access to board-certified psychiatrists and licensed therapists. ● Our wellness programs, including onsite health clinics, personalized health coaching, mental health counseling, and incentivized healthy lifestyle choices, are designed to improve associate health and reduce healthcare costs for both the associate and the Company. ● We provide opportunities for our associates to meet with a certified financial planner for personalized retirement planning and budget counseling. ● We offer comprehensive benefit plans including Company subsidized health insurance, 401(k) Plan with Company matching contributions, and paid time off.
More details about our commitment to preventing discrimination and harassment in our workplaces are available on our website. 5 Quality of Life We continue to invest in the physical and mental well-being of our associates, their spouses and their children. ● We introduced a benefits and wellness app, free to our associates and their dependents, which assists with locating best-in-class, in terms of quality and cost, healthcare providers and facilities, along with free virtual exercise therapy for back and joint care. ● We offer several free online mental and behavioral health resources, with unlimited access to board-certified psychiatrists and licensed therapists. ● Our wellness programs, including onsite health clinics, personalized health coaching, mental health counseling, and incentivized healthy lifestyle choices, are designed to improve associate health and reduce healthcare costs for both the associate and the Company. ● We provide opportunities for our associates to meet with a certified financial planner for personalized retirement planning and budget counseling. ● We offer comprehensive benefit plans including Company subsidized health insurance, 401(k) Plan with Company matching contributions, and paid time off.
Store traffic has been declining and the effect on our retail model has become increasingly challenging. We believe that on a market-by-market basis, there will be fewer stores in the future.
We also continue to examine the performance of every one of our stores. Store traffic has been declining and the effect on our retail model has become increasingly challenging. We believe that on a market-by-market basis, there will be fewer stores in the future.
The following table shows the number of Company-owned stores by state at November 25, 2023: Number of Number of State Stores State Stores Arizona 3 Nevada 1 Arkansas 1 New Jersey 2 California 2 New York 4 Connecticut 3 North Carolina 5 Delaware 1 Ohio 2 Florida 4 Oklahoma 1 Georgia 3 Pennsylvania 2 Kentucky 1 South Carolina 1 Maryland 3 Tennessee 1 Massachusetts 1 Texas 10 Missouri 1 Virginia 4 Total 56 Net sales for our Company-owned retail stores by major product category for the last three fiscal years are summarized below: 2023 2022 2021 Bassett Custom Upholstery $ 134,000 56.8 % $ 163,755 57.4 % $ 139,527 56.3 % Bassett Leather 1,951 0.8 % 1,707 0.6 % 226 0.1 % Bassett Custom Wood 36,732 15.6 % 43,208 15.2 % 30,931 12.5 % Bassett Casegoods 32,252 13.7 % 40,146 14.1 % 42,658 17.2 % Accessories, mattresses & other (1) 31,005 13.1 % 36,303 12.7 % 34,485 13.9 % Total $ 235,940 100.0 % $ 285,119 100.0 % $ 247,827 100.0 % (1) Includes sales of goods other than Bassett-branded products, such as accessories and bedding, and also includes the sale of furniture protection plans.
The following table shows the number of Company-owned stores by state at November 30, 2024: Number of Number of State Stores State Stores Arizona 3 Nevada 1 Arkansas 1 New Jersey 2 California 2 New York 4 Connecticut 3 North Carolina 5 Delaware 1 Ohio 2 Florida 5 Oklahoma 1 Georgia 3 Pennsylvania 2 Kentucky 1 South Carolina 1 Maryland 3 Tennessee 1 Massachusetts 1 Texas 11 Missouri 1 Virginia 4 Total 58 Net sales for our Company-owned retail stores by major product category for the last three fiscal years are summarized below: 2024* 2023 2022 Bassett Custom Upholstery $ 111,943 54.7 % $ 134,000 56.8 % $ 163,755 57.4 % Bassett Leather 4,990 2.4 % 1,951 0.8 % 1,707 0.6 % Bassett Custom Wood 32,201 15.7 % 36,732 15.6 % 43,208 15.2 % Bassett Casegoods 26,179 12.8 % 32,252 13.7 % 40,146 14.1 % Accessories, mattresses & other (1) 29,250 14.3 % 31,005 13.1 % 36,303 12.7 % Total $ 204,563 100.0 % $ 235,940 100.0 % $ 285,119 100.0 % (1) Includes sales of goods other than Bassett-branded products, such as accessories and bedding, and also includes the sale of furniture protection plans. *53 weeks for fiscal 2024 as compared with 52 weeks for fiscal 2023 and 2022.
We define imported product as fully finished product that is sourced. Our domestic product includes certain products that contain components which were also sourced. We continue to believe that a blended strategy including domestically produced products primarily of a custom-order nature combined with sourcing of major collections provides the best value and quality of products to our customers.
We continue to believe that a blended strategy including domestically produced products primarily of a custom-order nature combined with sourcing of major collections provides the best value and quality of products to our customers.
Changes in these areas of regulation could negatively impact the cost and availability of sourced goods. The timing and extent to which these regulations could have an adverse effect on our financial position or results of operations is difficult to predict.
The timing and extent to which these regulations could have an adverse effect on our financial position or results of operations is difficult to predict. In addition, the imposition of new or increased duties, tariffs, retaliatory tariffs and trade limitations with respect to foreign-sourced products could negatively impact the cost of such goods.
We will continue to evaluate store-by-store performance as we seek the optimal store count in the markets in which we compete at retail. 4 Corporate and Other Corporate and other includes the shared costs of corporate functions such as treasury and finance, information technology, accounting, human resources, legal and others, including certain product development and marketing functions benefitting both wholesale and retail operations.
This category includes the shared costs of corporate functions such as treasury and finance, information technology, accounting, human resources, legal and others, including certain product development and marketing functions benefitting both wholesale and retail operations.
Major Customers Our risk exposure related to our customers, consisting primarily of trade accounts receivable along with certain guarantees, net of recognized reserves, totaled approximately $15,636 and $19,709 at November 25, 2023 and November 22, 2022, respectively.
Additionally, we supported numerous other charitable and civic organizations with monetary and in-kind donations. 6 Major Customers Our risk exposure related to our customers, consisting primarily of trade accounts receivable along with certain guarantees, net of recognized reserves, totaled approximately $18,281 and $15,636 at November 30, 2024 and November 25, 2023, respectively.
In fiscal 2023, 2022 and 2021, no customer accounted for more than 10% of total consolidated net sales. 6 Available Information We file our annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public at the SEC’s website at www.sec.gov.
Available Information We file our annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public at the SEC’s website at www.sec.gov.
This allows Bassett branded products to move from inside the home to outside the home to capitalize on the growing trend of outdoor living.
This allows Bassett branded products to move from inside the home to outside the home to capitalize on the growing trend of outdoor living. In the second quarter of 2023, we debuted the Bassett Outdoor contract line at the HD Expo Show in Las Vegas targeting the hospitality segment.
We consider our website to be the front door to our brand experience where customers can research our furniture and accessory offerings and subsequently buy online or engage with an in-store design consultant. Customer acquisition resulting from our digital outreach strategies has increased our traffic to the website and our online orders.
We consider our website to be the front door to our brand experience where customers can research our furniture and accessory offerings and subsequently buy online or engage with an in-store design consultant. We know that we are driving a significant percentage of the retail foot traffic to our store network and our open market customers through engagement with www.bassettfurniture.com.
This is important due to consumer recognition of the names and identification with our broad range of products. Certain of our trademarks are licensed to independent retailers for use in full store and store gallery presentations of our products. We also own copyrights that are important in the conduct of our business.
Certain of our trademarks are licensed to independent retailers for use in full store and store gallery presentations of our products. We also own copyrights that are important in the conduct of our business. Government Regulations We believe that we have materially complied with all federal, state and local standards regarding safety, health and pollution and environmental controls.
At November 25, 2023 and November 26, 2022, approximately 35% and 31%, respectively, of the aggregate risk exposure, net of reserves, was attributable to five customers.
At November 30, 2024 and November 24, 2023, approximately 43% and 35%, respectively, of the aggregate risk exposure, net of reserves, was attributable to five customers. In fiscal 2024, 2023 and 2022, no customer accounted for more than 10% of total consolidated net sales.
We also have factories in Martinsville and Bassett, Virginia that assemble and finish our custom bedroom and dining offerings. In 2022, we purchased a facility which we had formerly leased in Haleyville, Alabama where we manufacture aluminum frames for our outdoor furniture.
We have factories in Newton, North Carolina that manufacture both stationary and motion upholstered furniture for inside the home along with our outdoor furniture offerings. We also have a factory in Martinsville, Virginia that assembles and finishes our custom bedroom and dining offerings. We also own a facility in Haleyville, Alabama where we manufacture aluminum frames for our outdoor furniture.
Government Regulations We believe that we have materially complied with all federal, state and local standards regarding safety, health and pollution and environmental controls. We may also be affected by laws and regulations of countries from which we source goods. Labor, environmental and other laws and regulations change over time, especially in the developing countries from which we source.
We may also be affected by laws and regulations of countries from which we source goods. Labor, environmental and other laws and regulations change over time, especially in the developing countries from which we source. Changes in these areas of regulation could negatively impact the cost and availability of sourced goods.
During the fourth quarter of fiscal 2022 we acquired Noa Home (see Note 3 to the Consolidated Financial Statements for additional information regarding the acquisition). A mid-priced e-commerce furniture retailer headquartered in Montreal, Canada, Noa Home has operations in Canada, Australia, Singapore and the United Kingdom.
A mid-priced e-commerce furniture retailer headquartered in Montreal, Canada, Noa Home had operations in Canada, Australia, Singapore and the United Kingdom.
Additionally, we remain committed to our recycling efforts. Materials recycled in 2023 include: Tons Tons Wood dust 1,770 Fabric scraps 184 Paper/cardboard 129 Metal/electronics 97 Wood pallets 85 Finishing materials 50 Our partnership with the Stephen Siller Tunnels2Towers Foundation, which began in 2019, continued last year as we furnished five smart homes built for wounded veterans and first responders.
Additionally, we remain committed to our recycling efforts. Materials recycled in 2024 include: Tons Tons Wood dust 1,620 Fabric scraps 155 Paper/cardboard 174 Wood Pallets 78 Metal/electronics 45 Finishing materials 39 Foam 15,750 cubic feet Our partnership with the Stephen Siller Tunnels2Towers Foundation reached the 10-year mark in 2024.
In addition, the imposition of new or increased duties, tariffs, retaliatory tariffs and trade limitations with respect to foreign-sourced products could negatively impact the cost of such goods. Based on the present facts, we do not believe that they will have a material adverse effect on our financial position or future results of operations.
Based on the present facts, we do not believe that they will have a material adverse effect on our financial position or future results of operations. Human Capital We employed 1,228 people as of November 30, 2024.
We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segment, Noa Home, acquired in late 2022. Trademarks Our trademarks, including “Bassett” and the names of some of our marketing divisions, products and collections, are significant to the conduct of our business.
As of November 30, 2024, we have substantially completed the liquidation of Noa Home. Trademarks Our trademarks, including “Bassett” and the names of some of our marketing divisions, products and collections, are significant to the conduct of our business. This is important due to consumer recognition of the names and identification with our broad range of products.
Human Capital We employed 1,389 people as of November 25, 2023. Our associate count represents a decrease of 172 from a year ago, 135 due to headcount reductions in our manufacturing facilities in response to business conditions, 22 primarily attributable to the reduction in the number of Company-owned retail stores and 15 related to the corporate overhead function.
Our associate count represents a decrease of 161 from a year ago, 71 due to headcount reductions in our manufacturing facilities in response to business conditions and the consolidation of our two wood manufacturing facilities, 43 in our retail segment primarily attributable to the elimination of certain retail support functions and warehouse consolidation, and 47 at our corporate office related to the closure of our central customer care center and the elimination of several corporate overhead functions.
We plan to implement several enhancements to the site in 2024 that will improve the overall customer experience and brand presentation. While we have made it easier to purchase on-line, we will not compromise our in-store experience or the quality of our in-home makeover capabilities. We spent over $4 million on developing and implementing the new website in 2023.
While we have made it easier to purchase on-line, we will not compromise our in-store experience or the quality of our in-home makeover capabilities. During the fourth quarter of fiscal 2022 we acquired Noa Home Inc. (“Noa Home”) (see Note 3 to the Consolidated Financial Statements for additional information regarding the acquisition).
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We consider our website to be the front door to our brand experience where customers can research our furniture and accessory offerings and subsequently buy online or engage with an in-store design consultant. Digital outreach strategies have become the primary vehicle for brand advertising and customer acquisition.
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Digital outreach strategies have become the primary vehicle for brand advertising and customer acquisition. We expect to supplement the digital outreach strategies in 2025 with added direct mail and television. We introduced a new web platform late in 2023 that leverages world class features including enhanced customer research capabilities and streamlined navigation.
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As a result, we have been engaged in a multi-year cross-functional digital transformation initiative with the first phase consisting of the examination and improvement of our underlying data management processes. During fiscal 2022, we implemented a comprehensive Product Information Management system which allows us to enhance and standardize our product development and data management and governance processes.
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Although e-commerce sales continue to be small relative to in-store sales, we are pleased that we have seen a greater than 20% e-commerce sales increase over the back half of the fiscal year. We will continue to invest in ongoing improvements to the aesthetics and user experience that we provide on our website.
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This results in more consistent data that our merchandizing and sales teams can use in analyzing various product and sales trends in order to make better informed decisions. We also introduced a new web platform in August of 2023 that leverages world class features including enhanced customer research capabilities and streamlined navigation.
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After nearly two years of operating losses, we concluded during the second quarter of 2024 that Noa Home was not likely to achieve profitability at any time in the foreseeable future and decided to cease operations by selling the inventory in an orderly fashion.
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With a lean staffing model, the Noa Home team has built an operational blueprint that has the potential for significant growth. We believe the acquisition will provide Bassett with a greater online presence and will allow us to attract more digitally native consumers.
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As of November 30, 2024, we have substantially completed the liquidation of Noa Home’s assets and liabilities. In the second quarter of 2024 we recognized non-cash charges totaling $2,401 related to the impairment of certain long-lived assets of Noa Home and the establishment of a reserve against Noa Home’s remaining inventory at that time.
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We are currently in the process of expanding Noa Home’s product assortment and categories offered on the Canadian website. In August of 2023, we introduced the Noa Home brand in the United States. In 2018, we added outdoor furniture to our offerings with the acquisition of the Lane Venture brand.
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Upon substantially completing the liquidation of Noa Home at the end of the fourth quarter of 2024, we recognized a charge of $962 associated with the transfer of the cumulative translation losses out of accumulated other comprehensive income. 2 In 2018, we added outdoor furniture to our offerings with the acquisition of the Lane Venture brand.
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In the second quarter of 2023, we debuted the Bassett Outdoor contract line at the HD Expo Show in Las Vegas targeting the hospitality segment. 2 We have factories in Newton, North Carolina that manufacture both stationary and motion upholstered furniture for inside the home along with our outdoor furniture offerings.
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Approximately 20% of our 2024 wholesale sales were of imported product compared to 22% in 2023 and 2022. We define imported product as fully finished product that is sourced. Our domestic product includes certain products that contain components which were also sourced.
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Digital advertising continued to dominate our marketing expenditures in 2023 as compared to traditional television and direct mail advertising. We plan to continue with increased levels of spending on digital advertising and outreach during 2024. We also continue to re-examine the performance of every one of our stores.
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We will continue to evaluate store-by-store performance as we seek the optimal store count in the markets in which we compete at retail.
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These include: ● Completed renovations to the break area and restrooms at our Haleyville, Alabama manufacturing facility. ● Updated air-handling systems at our Newton, North Carolina upholstery facilities, which improved air circulation and quality. ● Renovated the break area at our Martinsville, Virginia plant. ● Continued with lighting improvements at our Bassett, Virginia facility.
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While we opened two new stores in 2024, we are currently negotiating leases for stores in two new markets with potential opening dates in late 2025 or 2026. 4 Corporate and Other In addition to the two reportable segments described above, we include our remaining business activities in a reconciling category known as Corporate and other.
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We completed associate focus group meetings at our manufacturing locations, which solicited input for improving our facilities and work-life balance.
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We consider our corporate functions to be other business activities and have aggregated them with any of our operating segments that do not meet the requirements to be reportable segments.
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Additionally, our associates and Bassett have a long history of supporting the United Way both financially and by volunteering with United Way supported agencies.
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As of and for the periods ended November 30, 2024, November 25, 2023 and November 26, 2022, the only such operating segment included in Corporate and other was Noa Home, which was acquired on September 2, 2022.
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All sales reported in our Corporate and other category were attributable to Noa Home, which generated substantially all of its sales outside of the United States. During the second quarter of 2024 we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and decided to cease operations by selling the inventory in an orderly fashion.
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These include: ● Installed vacuum lifts, designed to reduce manual lifting, at our Martinsville facility ● Improved air quality with the addition of a humidity-controlled air handling system and battery-operated forklifts ● At our upholstery locations, we continued to upgrade the lighting in our manufacturing areas and warehouses, along with resurfacing floors to improve safety and aesthetics ● Improved security with the installation of a biometric (finger scan) timekeeping system at all our manufacturing facilities.
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We installed a comprehensive human resources, benefits, payroll and timekeeping system which gives our associates the ability to view, and where applicable, update their personal information, benefits enrollments, pay history and time worked in real time.
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To date, we have furnished over 40 smart homes built for wounded veterans and first responders.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

11 edited+1 added−2 removed23 unchanged
Biggest changeRisks Related to Material Sourcing and Supply Our use of foreign sources of production for a portion of our products exposes us to certain additional risks associated with international operations. Our use of foreign sources for the supply of certain of our products exposes us to risks associated with overseas sourcing.
Biggest changeIf these efforts are unsuccessful or we incur substantial costs in connection with these efforts, our business, operating results and financial condition could be adversely affected. Risks Related to Material Sourcing and Supply Our use of foreign sources of production for a portion of our products exposes us to certain additional risks associated with international operations.
Competition from any of these sources could cause us to lose market share, revenues and customers, increase expenditures or reduce prices, any of which could have a material adverse effect on our results of operations. Our licensee-owned stores may not be able to meet their obligations to us.
Competition from any of these sources could cause us to lose market share, revenues and customers, increase expenditures or reduce prices, any of which could have a material adverse effect on our results of operations. 7 Our licensee-owned stores may not be able to meet their obligations to us.
Governments in the foreign countries where we source our products may change their laws, regulations and policies, including those related to tariffs and trade barriers, investments, taxation and exchange controls which could make it more difficult to service our customers resulting in an adverse effect on our earnings.
The U.S. government as well as governments in the foreign countries where we source our products may change their laws, regulations and policies, including those related to tariffs and trade barriers, investments, taxation and exchange controls which could make it more difficult to service our customers resulting in an adverse effect on our earnings.
Any such proceedings could distract our management from running our business and cause us to incur significant unplanned losses and expenses. Consumer perception of our brand could also be negatively affected by these events, which could further adversely affect our results and prospects.
Any such proceedings could distract our management from running our business and cause us to incur significant unplanned losses and expenses. Consumer perception of our brand could also be negatively affected by these events, which could further adversely affect our results and prospects. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
We have a significant amount of accounts receivable attributable to our network of licensee-owned stores. We also guarantee two leases of one of our licensees.
We have a significant amount of accounts receivable attributable to our network of licensee-owned stores. We also guarantee one lease each for two licensees.
We may also incur reputational harm resulting from these security risks. We accept electronic payment cards in our stores and also gather certain personal identifiable information in the processing of our retail sales transactions.
We may also incur reputational harm resulting from these security risks. We accept electronic payment cards in our stores and also gather certain personal identifiable information in the processing of our retail sales transactions. We also store and process confidential information pertaining to our employees and other third parties on our networks.
Maintaining and enhancing our brand is critical to our ability to expand our base of customers and drive increased traffic at both Company-owned and licensee-owned stores and to our website. Digital advertising and outreach continue to dominate our marketing expenditures. We also invested heavily in our website and e-commerce.
Maintaining and enhancing our brand is critical to our ability to expand our base of customers and drive increased traffic at both Company-owned and licensee-owned stores and to our website. While digital advertising and outreach continue to dominate our marketing expenditures in 2024, we plan to supplement those strategies in 2025 with added direct mail and television.
We also store and process confidential information pertaining to our employees and other third parties on our networks. We have and may in the future become subject to claims for purportedly fraudulent transactions arising out of the actual or alleged theft of credit or debit card information.
We may in the future become subject to claims for purportedly fraudulent transactions arising out of the actual or alleged theft of credit or debit card information.
We cannot provide assurance that our marketing, advertising and other efforts to promote and maintain awareness of our brand will not require us to incur substantial costs. If these efforts are unsuccessful or we incur substantial costs in connection with these efforts, our business, operating results and financial condition could be adversely affected.
We have also invested heavily in our website and e-commerce. We cannot provide assurance that our marketing, advertising and other efforts to promote and maintain awareness of our brand will not require us to incur substantial costs.
These risks are related to government regulation, volatile ocean freight costs, delays in shipments, extended lead time in ordering.
Our use of foreign sources for the supply of certain of our products exposes us to risks associated with overseas sourcing. These risks are related to government regulation, volatile ocean freight costs, delays in shipments, and extended lead time in ordering.
This may result in significant operating losses from Noa Home which could have an adverse impact on our future cash flows and results of operations. Risks Related to Our Brand and Product Offerings Failure to successfully anticipate or respond to changes in consumer tastes and trends in a timely manner could adversely impact our business, operating results and financial condition.
If these stores do not generate the necessary level of sales and profits, the licensees may not be able to fulfill their obligations to us resulting in additional bad debt expenses and real estate related losses Risks Related to Our Brand and Product Offerings Failure to successfully anticipate or respond to changes in consumer tastes and trends in a timely manner could adversely impact our business, operating results and financial condition.
Removed
If these stores do not generate the necessary level of sales and profits, the licensees may not be able to fulfill their obligations to us resulting in additional bad debt expenses and real estate related losses. 7 We may incur significant future losses due to our recent acquisition of Noa Home If expected growth trends in Noa Home’s revenue fail to materialize, we may be unable to recover our investment in Noa Home, including any additional financial support we may find necessary to provide.
Added
For example, we disclosed a cybersecurity incident in Item 1.05 of Current Reports on Form 8-K and 8-K/A filed on July 15, 2024 and August 6, 2024, respectively, relating to the detection of unauthorized occurrences on a portion of our information technology (IT) systems.
Removed
Certain of these transactions were processed through our e-commerce site that was hosted and maintained by a third party that was subject to at least one data breach. We have subsequently moved our e-commerce site to another provider that we believe provides greater overall security.

Item 2. Properties

Properties — owned and leased real estate

4 edited+0 added−0 removed2 unchanged
Biggest changeIn addition to retail stores, we also lease thirteen locations for use as regional warehouses and home delivery distribution centers. Corporate and Other Segment : We own our corporate office building, which includes an annex, located in Bassett, Va. Noa Home does not own any property or buildings and is not party to any real estate leases.
Biggest changeIn addition to retail stores, we also lease eleven locations for use as regional warehouses and home delivery distribution centers. Corporate and Other : We own our corporate office building, which includes an annex, located in Bassett, Va.
ITEM 2. PROPERTIES We own the following facilities, by segment: Wholesale Segment: Facility Location Bassett Wood Division Martinsville, Va. Bassett Wood Division Bassett, Va. Bassett Upholstery Division Newton, N.C. Bassett Upholstery Division Haleyville, Alabama 3 Warehouses Bassett, Va. 9 In general, these facilities are suitable and are considered to be adequate for the continuing operations involved.
ITEM 2. PROPERTIES We own the following facilities, by segment: Wholesale Segment: Facility Location Bassett Wood Division Martinsville, Va. Bassett Upholstery Division Newton, N.C. Bassett Upholstery Division Haleyville, Alabama 2 Warehouses Bassett, Va. In general, these facilities are suitable and are considered to be adequate for the continuing operations involved.
Retail Segment: Real estate associated with our retail segment consists of eight owned locations with an aggregate square footage of 203,465 and a net book value of $24,279.
Retail Segment: Real estate associated with our retail segment consists of eight owned locations with an aggregate square footage of 203,465 and a net book value of $24,137.
These stores are located as follows: Concord, North Carolina Greensboro, North Carolina Greenville, South Carolina Fredericksburg, Virginia Houston, Texas Louisville, Kentucky Knoxville, Tennessee Tampa, Florida (opened in the first quarter of fiscal 2024) Of these locations, two are subject to land leases. Our remaining 49 store locations are leased from third parties.
These stores are located as follows: Concord, North Carolina Greensboro, North Carolina Greenville, South Carolina Fredericksburg, Virginia Houston, Texas Louisville, Kentucky Knoxville, Tennessee Tampa, Florida Of these locations, two are subject to land leases. Our remaining 50 store locations are leased from third parties.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

6 edited+0 added−0 removed3 unchanged
Biggest changeThe following table summarizes the stock repurchase activity for the three months ended November 25, 2023, and the approximate dollar value of shares that may yet be repurchased pursuant to our stock repurchase program: Total Shares Purchased Average Price Paid Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs August 27 - September 30, 2023 8,559 $ 14.02 8,559 $ 21,823 October 1 - October 28, 2023 - $ - - $ 21,823 October 29 - November 25, 2023 - $ - - $ 21,823
Biggest changeThe following table summarizes the stock repurchase activity for the three months ended November 30, 2024, and the approximate dollar value of shares that may yet be repurchased pursuant to our stock repurchase program: Issuer Purchases of Equity Securities (dollar amounts in thousands, except share and per share data) Total Shares Purchased Average Price Paid Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs September 1, 2024 - October 5, 2024 - $ - - $ 20,696 October 6 - November 2, 2024 2,171 $ 14.36 2,171 $ 20,665 November 3, 2024 - November 30, 2024 17,645 $ 14.81 17,645 $ 20,403
In 2019, he was appointed Senior Vice President, Chief Sales Officer. Prior to joining Bassett, Mr. Cohenour was with Hooker Furniture Corp. from 2007 through 2010, last serving as President of the Case Goods Division. J. Michael Daniel, 62, joined the Company in 2007 as Corporate Controller.
In 2019, he was appointed Senior Vice President, Chief Sales Officer. Prior to joining Bassett, Mr. Cohenour was with Hooker Furniture Corp. from 2007 through 2010, last serving as President of the Case Goods Division. J. Michael Daniel, 63, joined the Company in 2007 as Corporate Controller.
He was appointed Senior Vice President, Wood in 2009. In 2019, he was also promoted to the position of Senior Vice President, Chief Operations Officer. Bruce R. Cohenour, 65, has been with the Company since 2011, starting as Senior Vice President of Upholstery Merchandising. In 2013, he was promoted to Senior Vice President of Sales and Merchandising.
He was appointed Senior Vice President, Wood in 2009. In 2019, he was also promoted to the position of Senior Vice President, Chief Operations Officer. Bruce R. Cohenour, 66, has been with the Company since 2011, starting as Senior Vice President of Upholstery Merchandising. In 2013, he was promoted to Senior Vice President of Sales and Merchandising.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. INFORMATION ABOUT OUR EXECUTIVE OFFICERS John E. Bassett III, 65, has been with the Company since 1981 and served in various wood manufacturing and product sourcing capacities, including Vice President, Wood Manufacturing; Vice-President, Global Sourcing from 2001 to 2007 and Vice President, Wood in 2008.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 11 INFORMATION ABOUT OUR EXECUTIVE OFFICERS John E. Bassett III, 66, has been with the Company since 1981 and served in various wood manufacturing and product sourcing capacities, including Vice President, Wood Manufacturing; Vice-President, Global Sourcing from 2001 to 2007 and Vice President, Wood in 2008.
Jay R. Hervey, Esq., 64, has served as the General Counsel, Vice President and Secretary for the Company since 1997. Robert H. Spilman, Jr., 67, has been with the Company since 1984. Since 2000, he has served as Chief Executive Officer and President, and in 2016 also became the Chairman of the Board of Directors. 10 PART II ITEM 5.
Jay R. Hervey, Esq., 65, has served as the General Counsel, Vice President and Secretary for the Company since 1997. Robert H. Spilman, Jr., 68, has been with the Company since 1984. Since 2000, he has served as Chief Executive Officer and President, and in 2016 also became the Chairman of the Board of Directors. 12 PART II ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information: Bassett’s common stock trades on the NASDAQ global select market system under the symbol “BSET.” We had approximately 6,600 beneficial stockholders at January 22, 2024.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information: Bassett’s common stock trades on the NASDAQ global select market system under the symbol “BSET.” We had approximately 6,300 beneficial stockholders at January 23, 2025.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

231 edited+78 added−55 removed161 unchanged
Biggest changeRichmond, Virginia January 25, 2024 27 Consolidated Balance Sheets Bassett Furniture Industries, Incorporated and Subsidiaries November 25, 2023 and November 26, 2022 (In thousands, except share and per share data) 2023 2022 Assets Current assets Cash and cash equivalents $ 52,407 $ 61,625 Short-term investments 17,775 17,715 Accounts receivable, net of allowance for credit losses of $535 and $1,261 as of November 25, 2023 and November 26, 2022, respectively 13,736 17,838 Inventories 62,982 85,477 Recoverable income taxes 2,574 2,353 Other current assets 8,480 11,487 Total current assets 157,954 196,495 Property and equipment, net 83,981 77,001 Other long-term assets Deferred income taxes, net 4,645 5,528 Goodwill and other intangible assets 16,067 21,727 Right of use assets under operating leases 100,888 99,472 Other 6,889 6,050 Total other long-term assets 128,489 132,777 Total assets $ 370,424 $ 406,273 Liabilities and Stockholders ’ Equity Current liabilities Accounts payable $ 16,338 $ 20,359 Accrued compensation and benefits 8,934 12,921 Customer deposits 22,788 35,963 Current portion of operating lease obligations 18,827 18,819 Other accrued liabilities 11,003 12,765 Total current liabilities 77,890 100,827 Long-term liabilities Post employment benefit obligations 10,207 9,954 Long-term portion of operating lease obligations 97,357 97,477 Other long-term liabilities 1,529 2,406 Total long-term liabilities 109,093 109,837 Commitments and Contingencies Stockholders ’ equity Common stock, $5 par value; 50,000,000 shares authorized; issued and outstanding 8,768,221 at November 25, 2023 and 8,951,839 at November 26, 2022 43,842 44,759 Retained earnings 139,354 150,800 Additional paid-in-capital 93 - Accumulated other comprehensive income (loss) 152 50 Total stockholders' equity 183,441 195,609 Total liabilities and stockholders ’ equity $ 370,424 $ 406,273 The accompanying notes to consolidated financial statements are an integral part of these statements. 28 Consolidated Statements of Operations Bassett Furniture Industries, Incorporated and Subsidiaries For the years ended November 25, 2023, November 26, 2022, and November 27, 2021 (In thousands, except per share data) 2023 2022 2021 Net sales of furniture and accessories $ 390,136 $ 485,601 $ 430,886 Cost of furniture and accessories sold 183,648 237,262 209,799 Gross profit 206,488 248,339 221,087 Selling, general and administrative expenses 205,227 218,069 196,830 Goodwill impairment charge 5,409 - - Gain on revaluation of contingent consideration 1,013 - - Gain on sale of real estate - 4,595 - Income (loss) from continuing operations (3,135 ) 34,865 24,257 Interest income 2,528 302 48 Interest expense (22 ) (38 ) (33 ) Other loss, net (1,859 ) (1,067 ) (1,515 ) Income (loss) from continuing operations before income taxes (2,488 ) 34,062 22,757 Income tax expense 683 8,702 5,836 Income (loss) from continuing operations (3,171 ) 25,360 16,921 Discontinued operations: Income from operations of logistical services - 1,712 1,483 Gain on disposal - 52,534 - Income tax expense - 14,261 362 Income from discontinued operations - 39,985 1,121 Net income (loss) $ (3,171 ) $ 65,345 $ 18,042 Basic earnings (loss) per share: Income (loss) from continuing operations $ (0.36 ) $ 2.70 $ 1.72 Income from discontinued operations - 4.26 0.11 Basic earnings (loss) per share $ (0.36 ) $ 6.96 $ 1.83 Diluted earnings (loss) per share: Income (loss) from continuing operations $ (0.36 ) $ 2.70 $ 1.72 Income from discontinued operations - 4.26 0.11 Diluted earnings (loss) per share $ (0.36 ) $ 6.96 $ 1.83 Dividends per share Regular dividends $ 0.68 $ 0.60 $ 0.53 Special dividend $ - $ 1.50 $ 0.25 The accompanying notes to consolidated financial statements are an integral part of these statements. 29 Consolidated Statements of Comprehensive Income (Loss) Bassett Furniture Industries, Incorporated and Subsidiaries For the years ended November 25, 2023, November 26, 2022, and November 27, 2021 (In thousands) 2023 2022 2021 Net income (loss) $ (3,171 ) $ 65,345 $ 18,042 Other comprehensive income (loss): Foreign currency translation adjustments (378 ) (274 ) - Income taxes related to foreign currency translation adjustments 96 70 - Actuarial adjustment to Long Term Cash Awards (LTCA) 100 303 26 Amortization associated with LTCA 119 132 144 Income taxes related to LTCA (59 ) (107 ) (44 ) Actuarial adjustment to supplemental executive retirement defined benefit plan (SERP) 324 2,200 (788 ) Amortization associated with SERP - 124 44 Income taxes related to SERP (100 ) (575 ) 190 Other comprehensive income (loss), net of tax 102 1,873 (428 ) Total comprehensive income (loss) $ (3,069 ) $ 67,218 $ 17,614 The accompanying notes to consolidated financial statements are an integral part of these statements. 30 Consolidated Statements of Cash Flows Bassett Furniture Industries, Incorporated and Subsidiaries For the years ended November 25, 2023, November 26, 2022, and November 27, 2021 (In thousands) 2023 2022 2021 Operating activities: Net income (loss) $ (3,171 ) $ 65,345 $ 18,042 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 10,141 11,309 14,597 Gain on disposal of discontinued operations - (52,534 ) - Non-cash goodwill impairment charge 5,409 - - Gain on revaluation of contingent consideration (1,013 ) - - Net loss (gain) on disposals of property and equipment 5 (4,595 ) (367 ) Inventory valuation charges 4,626 3,648 2,969 Deferred income taxes 831 (2,339 ) 1,545 Other, net 2,031 (302 ) 728 Changes in operating assets and liabilities Accounts receivable 4,102 3,169 (5,828 ) Inventories 17,869 (9,536 ) (26,087 ) Other current and long-term assets 1,773 5,944 (2,241 ) Right of use assets under operating leases 18,680 20,531 26,243 Customer deposits (13,175 ) (16,588 ) 11,730 Accounts payable and accrued liabilities (9,188 ) (4,073 ) 2,153 Obligations under operating leases (20,196 ) (22,949 ) (28,921 ) Net cash provided by (used in) operating activities 18,724 (2,970 ) 14,563 Investing activities: Purchases of property and equipment (17,489 ) (21,296 ) (10,750 ) Proceeds from sales of property and equipment 500 8,226 382 Cash paid for business acquisitions, net of cash acquired - (5,582 ) - Proceeds from the disposition of discontinued operations 1,000 84,534 - Other (1,774 ) (40 ) (1,203 ) Net cash provided by (used in) investing activities (17,763 ) 65,842 (11,571 ) Financing activities: Cash dividends (5,982 ) (20,162 ) (7,689 ) Proceeds from exercise of stock options - - 42 Issuance of common stock 318 424 363 Repurchases of common stock (4,176 ) (15,122 ) (5,566 ) Taxes paid related to net share settlement of equity awards (109 ) (19 ) (219 ) Repayment of finance lease obligations (278 ) (684 ) (1,348 ) Net cash used in financing activities (10,227 ) (35,563 ) (14,417 ) Effect of exchenge rate changes on cash and cash equivalents 48 (58 ) - Change in cash and cash equivalents (9,218 ) 27,251 (11,425 ) Cash and cash equivalents - beginning of year 61,625 34,374 45,799 . . .
Biggest changeRichmond, Virginia February 10, 2025 29 Consolidated Balance Sheets Bassett Furniture Industries, Incorporated and Subsidiaries November 30, 2024 and November 25, 2023 (In thousands, except share and per share data) 2024 2023 Assets Current assets Cash and cash equivalents $ 39,551 $ 52,407 Short-term investments 20,360 17,775 Accounts receivable, net of allowance for credit losses of $1,097 and $535 as of November 30, 2024 and November 25, 2023, respectively 13,181 13,736 Inventories 54,965 62,982 Recoverable income taxes 4,240 2,574 Other current assets 9,242 8,480 Total current assets 141,539 157,954 Property and equipment, net 77,047 83,981 Other long-term assets Deferred income taxes, net 6,867 4,645 Goodwill and other intangible assets 14,185 16,067 Right of use assets under operating leases 93,624 100,888 Other 7,908 6,889 Total other long-term assets 122,584 128,489 Total assets $ 341,170 $ 370,424 Liabilities and Stockholders ’ Equity Current liabilities Accounts payable $ 13,303 $ 16,338 Accrued compensation and benefits 6,898 8,934 Customer deposits 25,742 22,788 Current portion of operating lease obligations 18,050 18,827 Other accrued liabilities 9,410 11,003 Total current liabilities 73,403 77,890 Long-term liabilities Post employment benefit obligations 10,882 10,207 Long-term portion of operating lease obligations 88,395 97,357 Other long-term liabilities 1,163 1,529 Total long-term liabilities 100,440 109,093 Commitments and Contingencies Stockholders ’ equity Common stock, $5 par value; 50,000,000 shares authorized; issued and outstanding 8,736,046 at November 30, 2024 and 8,768,221 at November 25, 2023 43,681 43,842 Retained earnings 122,847 139,354 Additional paid-in-capital 6 93 Accumulated other comprehensive income 793 152 Total stockholders' equity 167,327 183,441 Total liabilities and stockholders ’ equity $ 341,170 $ 370,424 The accompanying notes to consolidated financial statements are an integral part of these statements. 30 Consolidated Statements of Operations Bassett Furniture Industries, Incorporated and Subsidiaries For the years ended November 30, 2024, November 25, 2023, and November 26, 2022 (In thousands, except per share data) 2024 2023 2022 Net sales of furniture and accessories $ 329,923 $ 390,136 $ 485,601 Cost of furniture and accessories sold 150,508 183,648 237,262 Gross profit 179,415 206,488 248,339 Selling, general and administrative expenses 187,527 205,227 218,069 Asset impairment charges 5,515 - - Loss on contract abandonment 1,240 - - Loss upon realization of cumulative translation adjustment 962 - - Restructuring charges 440 - - Goodwill impairment charge - 5,409 - Gain on revaluation of contingent consideration - 1,013 - Gain on sale of real estate - - 4,595 Income (loss) from continuing operations (16,269 ) (3,135 ) 34,865 Interest income 2,673 2,528 302 Interest expense (30 ) (22 ) (38 ) Other loss, net (744 ) (1,859 ) (1,067 ) Income (loss) from continuing operations before income taxes (14,370 ) (2,488 ) 34,062 Income tax expense (benefit) (4,675 ) 683 8,702 Income (loss) from continuing operations (9,695 ) (3,171 ) 25,360 Discontinued operations: Income from operations of logistical services - - 1,712 Gain on disposal - - 52,534 Income tax expense - - 14,261 Income from discontinued operations - - 39,985 Net income (loss) $ (9,695 ) $ (3,171 ) $ 65,345 Basic earnings (loss) per share: Income (loss) from continuing operations $ (1.11 ) $ (0.36 ) $ 2.70 Income from discontinued operations - - 4.26 Basic earnings (loss) per share $ (1.11 ) $ (0.36 ) $ 6.96 Diluted earnings (loss) per share: Income (loss) from continuing operations $ (1.11 ) $ (0.36 ) $ 2.70 Income from discontinued operations - - 4.25 Diluted earnings (loss) per share $ (1.11 ) $ (0.36 ) $ 6.95 Dividends per share Regular dividends $ 0.76 $ 0.68 $ 0.60 Special dividend $ - $ - $ 1.50 The accompanying notes to consolidated financial statements are an integral part of these statements. 31 Consolidated Statements of Comprehensive Income (Loss) Bassett Furniture Industries, Incorporated and Subsidiaries For the years ended November 30, 2024, November 25, 2023, and November 25, 2022 (In thousands) 2024 2023 2022 Net income (loss) $ (9,695 ) $ (3,171 ) $ 65,345 Other comprehensive income (loss): Foreign currency translation adjustments 652 (378 ) (274 ) Income taxes related to foreign currency translation adjustments (166 ) 96 70 Actuarial adjustment to Long Term Cash Awards (LTCA) (117 ) 100 303 Amortization associated with LTCA 61 119 132 Income taxes related to LTCA 14 (59 ) (107 ) Actuarial adjustment to supplemental executive retirement defined benefit plan (SERP) 287 324 2,200 Amortization associated with SERP (22 ) - 124 Income taxes related to SERP (68 ) (100 ) (575 ) Other comprehensive income (loss), net of tax 641 102 1,873 Total comprehensive income (loss) $ (9,054 ) $ (3,069 ) $ 67,218 The accompanying notes to consolidated financial statements are an integral part of these statements. 32 Consolidated Statements of Cash Flows Bassett Furniture Industries, Incorporated and Subsidiaries For the years ended November 30, 2024, November 25, 2023, and November 26, 2022 (In thousands) 2024 2023 2022 Operating activities: Net income (loss) $ (9,695 ) $ (3,171 ) $ 65,345 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 9,918 10,141 11,309 Gain on disposal of discontinued operations - - (52,534 ) Non-cash goodwill impairment charge - 5,409 - Gain on revaluation of contingent consideration - (1,013 ) - Asset impairment charges 5,515 - - Net loss (gain) on disposals of property and equipment 7 5 (4,595 ) Inventory valuation charges 5,001 4,626 3,648 Deferred income taxes (2,442 ) 831 (2,339 ) Other, net 2,277 2,031 (302 ) Changes in operating assets and liabilities Accounts receivable 555 4,102 3,169 Inventories 3,016 17,869 (9,536 ) Other current and long-term assets (2,427 ) 1,773 5,944 Right of use assets under operating leases 17,254 18,680 20,531 Customer deposits 2,954 (13,175 ) (16,588 ) Accounts payable and accrued liabilities (7,246 ) (9,188 ) (4,073 ) Obligations under operating leases (20,637 ) (20,196 ) (22,949 ) Net cash provided by (used in) operating activities 4,050 18,724 (2,970 ) Investing activities: Purchases of property and equipment (5,211 ) (17,489 ) (21,296 ) Proceeds from sales of property and equipment - 500 8,226 Cash paid for business acquisitions, net of cash acquired - - (5,582 ) Investment in certificates of deposit (2,585 ) (60 ) - Proceeds from the disposition of discontinued operations - 1,000 84,534 Other (972 ) (1,714 ) (40 ) Net cash provided by (used in) investing activities (8,768 ) (17,763 ) 65,842 Financing activities: Cash dividends (6,654 ) (5,982 ) (20,162 ) Issuance of common stock 371 318 424 Repurchases of common stock (1,420 ) (4,176 ) (15,122 ) Taxes paid related to net share settlement of equity awards (161 ) (109 ) (19 ) Repayment of finance lease obligations (253 ) (278 ) (684 ) Net cash used in financing activities (8,117 ) (10,227 ) (35,563 ) Effect of exchange rate changes on cash and cash equivalents (21 ) 48 (58 ) Change in cash and cash equivalents (12,856 ) (9,218 ) 27,251 Cash and cash equivalents - beginning of year 52,407 61,625 34,374 Cash and cash equivalents - end of year $ 39,551 $ 52,407 $ 61,625 The accompanying notes to consolidated financial statements are an integral part of these statements. 33 Consolidated Statements of Stockholders ’ Equity Bassett Furniture Industries, Incorporated and Subsidiaries For the years ended November 30, 2024, November 25, 2023, and November 26, 2022 (In thousands, except share and per share data) Accumulated Additional other Common Stock paid-in Retained comprehensive Shares Amount capital earnings income (loss) Total Balance, November 27, 2021 9,762,125 $ 48,811 $ 113 $ 115,631 $ (1,823 ) $ 162,732 Comprehensive income (loss) Net income - - - 65,345 - 65,345 Foreign currency translation adjustments, net of tax - - - - (204 ) (204 ) Amortization of defined benefit plan costs, net of tax - - - - 192 192 Actuarial adjustments to defined benefit plans, net of tax - - - - 1,885 1,885 Regular dividends ($0.60 per share) - - - (5,668 ) - (5,668 ) Special dividend ($1.50 per share) - - - (14,494 ) - (14,494 ) Issuance of common stock 59,024 295 129 - - 424 Purchase and retirement of common stock (869,310 ) (4,347 ) (780 ) (10,014 ) - (15,141 ) Stock-based compensation - - 538 - - 538 Balance, November 26, 2022 8,951,839 44,759 - 150,800 50 195,609 Comprehensive income (loss) Net loss - - - (3,171 ) - (3,171 ) Foreign currency translation adjustments, net of tax - - - - (282 ) (282 ) Amortization of defined benefit plan costs, net of tax - - - - 68 68 Actuarial adjustments to defined benefit plans, net of tax - - - - 316 316 Regular dividends ($0.68 per share) - - - (5,982 ) - (5,982 ) Issuance of common stock 74,421 373 (55 ) - - 318 Purchase and retirement of common stock (258,039 ) (1,290 ) (701 ) (2,293 ) - (4,284 ) Stock-based compensation - - 849 - - 849 Balance, November 25, 2023 8,768,221 43,842 93 139,354 152 183,441 Comprehensive income (loss) Net income - - - (9,695 ) - (9,695 ) Foreign currency translation adjustments, net of tax - - - - 486 486 Amortization of defined benefit plan costs, net of tax - - - - 29 29 Actuarial adjustments to defined benefit plans, net of tax - - - - 126 126 Regular dividends ($0.76 per share) - - - (6,654 ) - (6,654 ) Issuance of common stock 79,490 397 (26 ) - - 371 Purchase and retirement of common stock (111,665 ) (558 ) (865 ) (158 ) - (1,581 ) Stock-based compensation - - 804 - - 804 Balance, November 30, 2024 8,736,046 $ 43,681 $ 6 $ 122,847 $ 793 $ 167,327 The accompanying notes to consolidated financial statements are an integral part of these statements. 34 1.
The more likely than not threshold is defined as having a likelihood of more than 50 percent.
The more likely than not threshold is defined as having a likelihood of more than 50 percent.
If, after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative impairment test is unnecessary and our goodwill is considered to be unimpaired.
If, after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative impairment test is unnecessary and our goodwill is considered to be unimpaired.
However, if based on our qualitative assessment we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we will proceed with performing the quantitative evaluation process.
However, if based on our qualitative assessment we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we will proceed with performing the quantitative evaluation process.
Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, a goodwill impairment charge will be recognized in the amount by which the reporting unit’s carrying amount exceeds its fair value, but not to exceed the total goodwill assigned to the reporting unit.
Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, a goodwill impairment charge will be recognized in the amount by which the reporting unit’s carrying amount exceeds its fair value, but not to exceed the total goodwill assigned to the reporting unit.
The cash flows used to determine fair value are dependent on a number of significant management assumptions such as our expectations of future performance and the expected future economic environment, which are partly based upon our historical experience. Our estimates are subject to change given the inherent uncertainty in predicting future results.
The cash flows used to determine fair value are dependent on a number of significant management assumptions such as our expectations of future performance and the expected future economic environment, which are partly based upon our historical experience. Our estimates are subject to change given the inherent uncertainty in predicting future results.
Additionally, the discount rate and the terminal growth rate are based on our judgment of the rates that would be utilized by a hypothetical market participant. As part of the goodwill impairment testing, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our reporting units.
Additionally, the discount rate and the terminal growth rate are based on our judgment of the rates that would be utilized by a hypothetical market participant. As part of the goodwill impairment testing, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our reporting units.
We lease land and buildings that are used in the operation of our Company-owned retail stores as well as in the operation of certain of our licensee-owned stores, and we lease land and buildings at various locations throughout the continental United States for warehouse space used in our retail segment.
We lease land and buildings that are used in the operation of our Company-owned retail stores as well as in the operation of certain of our licensee-owned stores, and we lease land and buildings at various locations throughout the continental United States for warehouse space used in our retail segment.
If the estimates of the useful lives should change, we will amortize the remaining book value over the remaining useful lives or, if an asset is deemed to be impaired, a write-down of the value of the asset may be required at such time.
If the estimates of the useful lives should change, we will amortize the remaining book value over the remaining useful lives or, if an asset is deemed to be impaired, a write-down of the value of the asset may be required at such time.
However, due to the actual and expected future underperformance of our Noa Home reporting unit relative to management's original expectations, we performed a strategic review of the operations as of the beginning of the fourth quarter and concluded that Noa should exit the Australian market and focus more on the North American market.
However, due to the actual and expected future underperformance of our Noa Home reporting unit relative to management's original expectations, we performed a strategic review of the operations as of the beginning of the fourth quarter and concluded that Noa Home should exit the Australian market and focus more on the North American market.
The cash flows used to determine fair value are dependent on a number of significant management assumptions such as our expectations of future performance and the expected future economic environment, which are partly based upon our historical experience. Our estimates are subject to change given the inherent uncertainty in predicting future results.
The cash flows used to determine fair value are dependent on a number of significant management assumptions such as our expectations of future performance and the expected future economic environment, which are partly based upon our historical experience. Our estimates are subject to change given the inherent uncertainty in predicting future results.
The allocation of the purchase price (translated into U.S. dollars as of the acquisition date) is as follows: Fair value of consideration transferred in exchange for 100% of Noa Home: Cash $ 5,878 Fair value of contingent consideration payable 1,375 Total fair value of consideration paid or payable $ 7,253 Allocation of the fair value of consideration transferred: Identifiable assets acquired: Cash $ 296 Inventory 1,585 Other current assets 317 Property & equipment 155 Intangible asset - trade name 1,929 Total identifiable assets acquired 4,282 Liabilities assumed: Accounts payable (1,227 ) Customer deposits (1,059 ) Other current liabilities and accrued expenses (458 ) Total liabilities assumed (2,744 ) Net identifiable assets acquired 1,538 Goodwill 5,715 Total net assets acquired $ 7,253 39 Goodwill was determined based on the residual difference between the fair value of the consideration transferred and the value assigned to the tangible and intangible assets and liabilities recognized in connection with the acquisition and is deductible for US tax purposes.
The allocation of the purchase price (translated into U.S. dollars as of the acquisition date) is as follows: Fair value of consideration transferred in exchange for 100% of Noa Home: Cash $ 5,878 Fair value of contingent consideration payable 1,375 Total fair value of consideration paid or payable $ 7,253 Allocation of the fair value of consideration transferred: Identifiable assets acquired: Cash $ 296 Inventory 1,585 Other current assets 317 Property & equipment 155 Intangible asset - trade name 1,929 Total identifiable assets acquired 4,282 Liabilities assumed: Accounts payable (1,227 ) Customer deposits (1,059 ) Other current liabilities and accrued expenses (458 ) Total liabilities assumed (2,744 ) Net identifiable assets acquired 1,538 Goodwill 5,715 Total net assets acquired $ 7,253 Goodwill was determined based on the residual difference between the fair value of the consideration transferred and the value assigned to the tangible and intangible assets and liabilities recognized in connection with the acquisition and is deductible for US tax purposes.
We have made an accounting policy election to not recognize ROU assets and lease liabilities on the balance sheet for those leases with initial terms of one year or less and instead such lease obligations will be expensed on a straight-line basis over the lease term. 36 See Note 15 for additional information regarding our leases.
We have made an accounting policy election to not recognize ROU assets and lease liabilities on the balance sheet for those leases with initial terms of one year or less and instead such lease obligations will be expensed on a straight-line basis over the lease term. See Note 15 for additional information regarding our leases.
While we believe such assumptions and estimates are reasonable, the actual results may differ materially from the projected amounts. 23 Other Intangible Assets – Intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized but are tested for impairment annually or between annual tests when an impairment indicator exists.
While we believe such assumptions and estimates are reasonable, the actual results may differ materially from the projected amounts. Other Intangible Assets – Intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized but are tested for impairment annually or between annual tests when an impairment indicator exists.
Subsequent to the completion of the exchange transactions during the third quarter of fiscal 2022, the sole equity interest in the VIE was transferred to Bassett and the entity is now consolidated as a wholly owned subsidiary Other loss, net for the fiscal 2022 includes a gain of $1,441 arising from death benefits from Company-owned life insurance. 15.
Subsequent to the completion of the exchange transactions during the third quarter of fiscal 2022, the sole equity interest in the VIE was transferred to Bassett and the entity is now consolidated as a wholly owned subsidiary. 54 Other loss, net for the fiscal 2022 includes a gain of $1,441 arising from death benefits from Company-owned life insurance. 15.
Our primary non-recurring fair value estimates typically involve the following: business acquisitions (Note 3) which involve a combination of Level 2 and Level 3 inputs to determine the fair value of contingent consideration and net assets acquired, including identified intangible assets; goodwill impairment testing (Note 8), which involves Level 3 inputs; and asset impairments (Note 14) which utilize Level 3 inputs. 5.
Our primary non-recurring fair value estimates typically involve the following: business acquisitions (Note 3) which involve a combination of Level 2 and Level 3 inputs to determine the fair value of contingent consideration and net assets acquired, including identified intangible assets; goodwill impairment testing (Note 8), which involves Level 3 inputs; and asset impairments (Note 14) which utilize Level 3 inputs. 43 5.
Coupled with the financial underperformance and the planned exit of Australia, we performed a quantitative test of the carrying value of the goodwill recognized as part of the 2022 acquisition of Noa Home and concluded that it was necessary to fully impair the carrying value of the Noa Home goodwill, resulting in a non-cash impairment charge of $5,409 in fiscal 2023.
Coupled with the financial underperformance and the exit of Australia, we performed a quantitative test of the carrying value of the goodwill recognized as part of the 2022 acquisition of Noa Home and concluded that it was necessary to fully impair the carrying value of the Noa Home goodwill, resulting in a non-cash impairment charge of $5,409 in fiscal 2023.
During the year ended November 26, 2022, we recognized a gain of $4,595 from the sale of the real estate at a former retail location in Houston, Texas. Certain other items affecting comparability between fiscal 2023 and 2022 are discussed below in “Other Items Affecting Net Income”.
During the year ended November 26, 2022, we recognized a gain of $4,595 from the sale of the real estate at a former retail location in Houston, Texas. Certain other items affecting comparability between fiscal 2024 and 2023 are discussed below in “Other Items Affecting Net Income”.
We believe that our existing cash, together with cash from operations, will be sufficient to meet our capital expenditure and working capital requirements for the foreseeable future. 21 Fair Value Measurements We account for items measured at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures .
We believe that our existing cash, together with cash from operations, will be sufficient to meet our capital expenditure and working capital requirements for the foreseeable future. Fair Value Measurements We account for items measured at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures .
Leasehold improvements are amortized based on the underlying lease term, or the asset’s estimated useful life, whichever is shorter. Goodwill Goodwill represents the excess of the fair value of consideration given over the fair value of the tangible assets and liabilities and identifiable intangible assets of businesses acquired.
Leasehold improvements are amortized based on the underlying lease term, or the asset’s estimated useful life, whichever is shorter. 37 Goodwill Goodwill represents the excess of the fair value of consideration given over the fair value of the tangible assets and liabilities and identifiable intangible assets of businesses acquired.
Our short-term investments consist of certificates of deposit that have original maturities of twelve months or less but greater than three months. Accounts Receivable Substantially all of our trade accounts receivable is due from customers located within the United States.
Our short-term investments consist of certificates of deposit that have original maturities of twelve months or less but greater than three months. 36 Accounts Receivable Substantially all of our trade accounts receivable is due from customers located within the United States.
The inputs into these fair value estimates reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures . See Note 4. 41 6.
The inputs into these fair value estimates reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures . See Note 4. 6.
As discussed in Note 2 and Note 6 to the consolidated financial statements, cost for domestic manufactured furniture inventories is determined using the last-in, first-out (“LIFO”) method and are stated at the lower of cost or market.
As discussed in Note 2 and Note 6 to the consolidated financial statements, cost for wholesale, domestic manufactured furniture inventories is determined using the last-in, first-out (“LIFO”) method and are stated at the lower of cost or market.
In addition to the furniture that we manufacture domestically, we source most of our formal bedroom and dining room furniture (casegoods) and certain leather upholstery offerings from several foreign plants, primarily in Vietnam and China.
In addition to the furniture that we manufacture domestically, we source most of our formal bedroom and dining room furniture (casegoods) and certain leather upholstery offerings from several foreign plants, primarily in Vietnam.
How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s determination of the reserves for excess and obsolete inventories.
How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s determination of the wholesale reserves for excess and obsolete inventories.
Therefore, we have agreed to replace the contingent consideration with two fixed payments of C$200 each, the first of which was paid in June of 2023 with the second to be paid in December of 2024.
Therefore, we have agreed to replace the contingent consideration with two fixed payments of C$200 each, the first of which was paid in June of 2023 with the second paid in December of 2024.
Our products are sold primarily through a network of Company-owned and licensee-owned branded stores under the Bassett Home Furnishings (“BHF”) name, with additional distribution through other wholesale channels including multi-line furniture stores, many of which feature Bassett galleries or design centers. We also sell our products through our newly redesigned website at www.bassettfurniture.com .
Our products are sold primarily through a network of Company-owned and licensee-owned branded stores under the Bassett Home Furnishings (“BHF”) name, with additional distribution through other wholesale channels including multi-line furniture stores, many of which feature Bassett galleries or design centers. We also sell our products through our website at www.bassettfurniture.com.
We also distribute our products through other multi-line furniture stores, many of which feature Bassett galleries or design centers. Products can also be purchased by the end consumer directly from our website. We sourced approximately 23% of our wholesale products from various foreign countries, with the remaining volume produced at our five domestic manufacturing facilities. 2.
We also distribute our products through other multi-line furniture stores, many of which feature Bassett galleries or design centers. Products can also be purchased by the end consumer directly from our website. We sourced approximately 20% of our wholesale products from various foreign countries, with the remaining volume produced at our five domestic manufacturing facilities. 2.
Per the terms of the agreement at the acquisition date, the Noa Home co-founders also had the opportunity to receive additional cash payments totaling approximately C$1,330 per year for the three fiscal years following the year of acquisition based on established increases in net revenues and achieving certain internal EBITDA goals.
Per the terms of the agreement at the acquisition date, the Noa Home co-founders also had the opportunity to receive additional cash payments totaling approximately C$1,330 per year for the three fiscal years following the year of acquisition based on established increases in net revenues and achieving certain internal EBITDA goal.
We were founded in 1902 and incorporated under the laws of Virginia in 1930. Our rich 121-year history has instilled the principles of quality, value, and integrity in everything we do, while simultaneously providing us with the expertise to respond to ever-changing consumer tastes and meet the demands of a global economy.
We were founded in 1902 and incorporated under the laws of Virginia in 1930. Our rich 122-year history has instilled the principles of quality, value, and integrity in everything we do, while simultaneously providing us with the expertise to respond to ever-changing consumer tastes and meet the demands of a global economy.
In the second quarter of 2023, we debuted the Bassett Outdoor contract line at the HD Expo Show in Las Vegas targeting the hospitality segment. 12 We have factories in Newton, North Carolina that manufacture both stationary and motion upholstered furniture for inside the home along with our outdoor furniture offerings.
In the second quarter of 2023, we debuted the Bassett Outdoor contract line at the HD Expo Show in Las Vegas targeting the hospitality segment. 14 We have factories in Newton, North Carolina that manufacture both stationary and motion upholstered furniture for inside the home along with our outdoor furniture offerings.
In fiscal 2023, 2022 and 2021, no customer accounted for more than 10% of total consolidated net sales. We have no foreign manufacturing operations. We define export sales from our wholesale segment as sales to any country or territory other than the United States or its territories or possessions.
In fiscal 2024, 2023 and 2022, no customer accounted for more than 10% of total consolidated net sales. We have no foreign manufacturing operations. We define export sales from our wholesale segment as sales to any country or territory other than the United States or its territories or possessions.
Recent Accounting Pronouncements See Note 2 to our Consolidated Financial Statements regarding the impact or potential impact of recent accounting pronouncements upon our financial position and results of operations. 24 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are exposed to market risk from changes in the value of foreign currencies.
Recent Accounting Pronouncements See Note 2 to our Consolidated Financial Statements regarding the impact or potential impact of recent accounting pronouncements upon our financial position and results of operations. 26 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are exposed to market risk from changes in the value of foreign currencies.
Should we have to close or otherwise abandon one of these leased locations, we could incur additional impairment charges if rental market conditions do not support a fair value for the right of use asset in excess of its carrying value. 25 ITEM 8.
Should we have to close or otherwise abandon one of these leased locations, we could incur additional impairment charges if rental market conditions do not support a fair value for the right of use asset in excess of its carrying value. 27 ITEM 8.
Substantially all of our purchases outside of North America are denominated in U.S. dollars. Therefore, we believe that gains or losses resulting from changes in the value of foreign currencies relating to foreign purchases not denominated in U.S. dollars would not be material to our results from operations in fiscal 2023.
Substantially all of our purchases outside of North America are denominated in U.S. dollars. Therefore, we believe that gains or losses resulting from changes in the value of foreign currencies relating to foreign purchases not denominated in U.S. dollars would not be material to our results from operations in fiscal 2024.
Although the final outcome of these matters cannot be determined, based on the facts presently known, it is our opinion that the final resolution of these matters will not have a material adverse effect on our financial position or future results of operations. 55 17.
Although the final outcome of these matters cannot be determined, based on the facts presently known, it is our opinion that the final resolution of these matters will not have a material adverse effect on our financial position or future results of operations. 57 17.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Bassett Furniture Industries, Incorporated and Subsidiaries Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Bassett Furniture Industries, Incorporated and Subsidiaries (the Company) as of November 25, 2023 and November 26, 2022, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended November 25, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Bassett Furniture Industries, Incorporated and Subsidiaries Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Bassett Furniture Industries, Incorporated and subsidiaries (the Company) as of November 30, 2024 and November 25, 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended November 30, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).
Business Combinations On September 2, 2022, we acquired 100% of the capital stock of Noa Home, a mid-priced e-commerce furniture retailer headquartered in Montreal, Canada. Noa Home has operations in Canada, Australia, Singapore and the United Kingdom.
Business Combinations On September 2, 2022, we acquired 100% of the capital stock of Noa Home, a mid-priced e-commerce furniture retailer headquartered in Montreal, Canada. Noa Home had operations in Canada, Australia, Singapore and the United Kingdom.
ITEM 6. [RESERVED] 11 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Amounts in thousands except share and per share data) Overview Bassett is a leading retailer, manufacturer and marketer of branded home furnishings.
ITEM 6. [RESERVED] 13 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Amounts in thousands except share and per share data) Overview Bassett is a leading retailer, manufacturer and marketer of branded home furnishings.
This sale, together with our purchase of real property in Tampa, Florida for $7,668 in cash during the second quarter of fiscal 2022 will be treated as an exchange of like-kind property under Section 1031 of the Internal Revenue Code of 1986, as amended, for the purpose of deferring approximately $4,300 of the taxable gain arising from the sale of the Houston property.
This sale, together with our purchase of real property in Tampa, Florida for $7,668 in cash during the second quarter of fiscal 2022 was treated as an exchange of like-kind property under Section 1031 of the Internal Revenue Code of 1986, as amended, for the purpose of deferring approximately $4,300 of the taxable gain arising from the sale of the Houston property.
Compensation expense related to restricted stock and stock options included in selling, general and administrative expenses in our consolidated statements of operations for fiscal 2023, 2022 and 2021 was as follows: 2023 2022 2021 Stock based compensation expense $ 849 $ 538 $ 158 Incentive Stock Compensation Plans 2021 Plan On March 10, 2021, our shareholders approved the Bassett Furniture Industries, Incorporated 2021 Stock Incentive Plan (the “2021 Plan”).
Compensation expense related to restricted stock and stock options included in selling, general and administrative expenses in our consolidated statements of operations for fiscal 2024, 2023 and 2022 was as follows: 2024 2023 2022 Stock based compensation expense $ 804 $ 849 $ 538 Incentive Stock Compensation Plans 2021 Plan On March 10, 2021, our shareholders approved the Bassett Furniture Industries, Incorporated 2021 Stock Incentive Plan (the “2021 Plan”).
The cost of foam products, which are petroleum-based, is sensitive to changes in the price of oil. We are also exposed to commodity price risk related to diesel fuel prices for fuel used in our retail segment for home delivery as well as through amounts we are charged for logistical services by our service providers.
The cost of foam products, which are petroleum-based, is sensitive to changes in the prices of oil and refined petroleum materials. We are also exposed to commodity price risk related to diesel fuel prices for fuel used in our retail segment for home delivery as well as through amounts we are charged for logistical services by our service providers.
Financial Instruments, Investments and Fair Value Measurements Financial Instruments Our financial instruments include cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, accounts payable and long-term debt. Because of their short maturities, the carrying amounts of cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, and accounts payable approximate fair value.
Financial Instruments, Investments and Fair Value Measurements Financial Instruments Our financial instruments include cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, and accounts payable. Because of their short maturities, the carrying amounts of cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, and accounts payable approximate fair value.
Bassett’s full range of furniture products and accessories, designed to provide quality, style and value, are sold through an exclusive nation-wide network of 87 retail stores known as Bassett Home Furnishings (referred to as “BHF”). Of the 87 stores, the Company owns and operates 56 stores (“Company-owned retail stores”) with the other 31 being independently owned (“licensee operated”).
Bassett’s full range of furniture products and accessories, designed to provide quality, style and value, are sold through an exclusive nation-wide network of 87 retail stores known as Bassett Home Furnishings (referred to as “BHF”). Of the 87 stores, the Company owns and operates 58 stores (“Company-owned retail stores”) with the other 29 being independently owned (“licensee operated”).
There have been no changes in our internal controls over financial reporting during our fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 61 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Bassett Furniture Industries, Incorporated and Subsidiaries Opinion on Internal Control over Financial Reporting We have audited Bassett Furniture Industries, Incorporated and Subsidiaries’ internal control over financial reporting as of November 25, 2023, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
There have been no changes in our internal controls over financial reporting during our fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 63 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Bassett Furniture Industries, Incorporated and Subsidiaries Opinion on Internal Control over Financial Reporting We have audited Bassett Furniture Industries, Incorporated and subsidiaries’ internal control over financial reporting as of November 30, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
Substantially all of the customer deposits held at November 26, 2022 related to performance obligations were satisfied during fiscal 2023 and have therefore been recognized in revenue for the year ended November 25, 2023. Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns.
Substantially all of the customer deposits held at November 25, 2023 related to performance obligations were satisfied during fiscal 2024 and have therefore been recognized in revenue for the year ended November 30, 2024. Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns.
Substantially all of the customer deposits held at November 26, 2022 related to performance obligations satisfied during fiscal 2023 and have therefore been recognized in revenue for the year ended November 25, 2023. Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns.
Substantially all of the customer deposits held at November 25, 2023 related to performance obligations satisfied during fiscal 2024 and have therefore been recognized in revenue for the year ended November 30, 2024. Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns.
Based on this evaluation, management concluded that our internal control over financial reporting was effective as of November 25, 2023, based on those criteria. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
Based on this evaluation, management concluded that our internal control over financial reporting was effective as of November 30, 2024, based on those criteria. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 25, 2023 and November 26, 2022, and the results of its operations and its cash flows for each of the three years in the period ended November 25, 2023, in conformity with U.S. generally accepted accounting principles.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 30, 2024 and November 25, 2023, and the results of its operations and its cash flows for each of the three years in the period ended November 30, 2024, in conformity with U.S. generally accepted accounting principles.
The proceeds of the above options are estimated to cover the maximum amount of our future payments under the guarantee obligations, net of reserves. The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at November 25, 2023 and November 26, 2022, were not material. 16.
The proceeds of the above options are estimated to cover the maximum amount of our future payments under the guarantee obligations, net of reserves. The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at November 30, 2024 and November 25, 2023, were not material. 16.
For the annual test of the goodwill performed as of the beginning of the fourth quarter of fiscal 2023 with respect to our Noa Home reporting unit, we proceeded to the quantitative test and concluded that the goodwill allocated to that reporting unit as of November 25, 2023 was fully impaired as the difficult environment for companies selling furniture on the web resulted in Noa Home performing well below initial projections and expectations.
For the annual test of the goodwill performed as of the beginning of the fourth quarter of fiscal 2023, we concluded that there was no impairment of the goodwill allocated to our upholstery reporting unit, however with respect to our Noa Home reporting unit, we proceeded to the quantitative test and concluded that the goodwill allocated to that reporting unit as of November 25, 2023 was fully impaired as the difficult environment for companies selling furniture on the web resulted in Noa Home performing well below initial projections and expectations.
For additional analysis of the fiscal year 2022 results as compared to fiscal year 2021, see “Analysis of Operations” in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s 2022 Annual Report on Form 10-K, filed with the SEC on January 24, 2023.
For additional analysis of the fiscal year 2023 results as compared to fiscal year 2022, see “Analysis of Operations” in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s 2023 Annual Report on Form 10-K, filed with the SEC on January 25, 2024.
Company contributions are subject to the same rules described above regarding the crediting of gains or losses from deemed investments and the timing of distributions. Expense (credits) associated with deferred compensation under the Plan was $46, $ (16) and $338 for fiscal 2023, 2022 and 2021, respectively.
Company contributions are subject to the same rules described above regarding the crediting of gains or losses from deemed investments and the timing of distributions. Expense (credits) associated with deferred compensation under the Plan was $925, $46 and $(16) for fiscal 2024, 2023 and 2022, respectively.
The fair values of consideration transferred and net assets acquired were determined using a combination of Level 2 and Level 3 inputs as specified in the fair value hierarchy in ASC 820, Fair Value Measurements and Disclosures . See Note 4.
The fair values of consideration transferred and net assets acquired were determined using a combination of Level 2 and Level 3 inputs as specified in the fair value hierarchy in ASC 820, Fair Value Measurements and Disclosures .
It will require approximately $18,000 of future taxable income to utilize our net deferred tax assets. Liquidity and Capital Resources We are committed to maintaining a strong balance sheet in order to weather difficult industry conditions, to allow us to take advantage of opportunities as market conditions improve, and to execute our long-term retail strategies.
It will require approximately $31,700 of future taxable income to utilize our net deferred tax assets. 22 Liquidity and Capital Resources We are committed to maintaining a strong balance sheet in order to weather difficult industry conditions, to allow us to take advantage of opportunities as market conditions improve, and to execute our long-term retail strategies.
The amendments in ASU 2022-03 will become effective for us as of the beginning of our 2026 fiscal year. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. We do not expect that this guidance will have a material impact upon our financial position and results of operations. 3.
The amendments in ASU 2023-09 will become effective for us as of the beginning of our 2026 fiscal year. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. We do not expect that this guidance will have a material impact upon our financial position and results of operations.
We are also exposed to foreign currency market risk through our investment in Noa Home. Our investment in Noa Home is subject to changes in the value of the Canadian dollar versus the U.S. dollar. Additionally, Noa Home is exposed to other local currency fluctuation risk through its operations in Australia, Singapore, the United States and the United Kingdom.
We were also exposed to foreign currency market risk through our investment in Noa Home. Our investment in Noa Home was subject to changes in the value of the Canadian dollar versus the U.S. dollar. Additionally, Noa Home was exposed to other local currency fluctuation risk through its operations in Australia, Singapore, the United States and the United Kingdom.
With 87 BHF stores at November 25, 2023, we have leveraged our strong brand name in furniture into a network of Company-owned and licensed stores that focus on providing consumers with a friendly and casual environment for buying furniture and accessories.
With 87 BHF stores at November 30, 2024, we have leveraged our strong brand name in furniture into a network of Company-owned and licensed stores that focus on providing consumers with a friendly and casual environment for buying furniture and accessories.
As the CDs mature, we expect to reinvest them in CDs of similar maturities of up to one year. Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at November 25, 2023 and November 26, 2022 approximates their fair value.
As the CDs mature, we expect to reinvest them in CDs of similar maturities of up to one year. Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments at November 30, 2024 and November 25, 2023 approximates their fair value.
With the participation of our CEO and CFO, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of November 25, 2023 based on the criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
With the participation of our CEO and CFO, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of November 30, 2024 based on the criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
For the annual test of goodwill performed as of the beginning of the fourth quarter of fiscal 2023, we performed the qualitative assessment as described above with respect to our upholstery reporting unit and concluded that there was no impairment of the goodwill allocated to that reporting unit as of November 25, 2023.
For the annual test of goodwill performed as of the beginning of the fourth quarter of fiscal 2024, we performed the qualitative assessment as described above with respect to our upholstery reporting unit and concluded that there was no impairment of the goodwill allocated to that reporting unit as of November 30, 2024.
Subsequent to the acquisition date, the parties concluded that the targets originally set forth by which the Noa Home co-founders were to earn the contingent consideration would likely not be met within the initially anticipated time frame.
See Note 4. 42 Subsequent to the acquisition date, the parties concluded that the targets originally set forth by which the Noa Home co-founders were to earn the contingent consideration would likely not be met within the initially anticipated time frame.
Zenith also charged Bassett for logistical services provided to our wholesale segment in the amount of $9,121 during 2022 prior to disposal, and $31,329 for all of 2021. We have entered into a service agreement with J.B. Hunt for the continuation of these services for a period of seven years following the sale of Zenith.
Zenith also charged Bassett for logistical services provided to our wholesale segment in the amount of $9,121 during 2022 prior to disposal. We have entered into a service agreement with J.B. Hunt for the continuation of these services for a period of seven years following the sale of Zenith.
Our retail real estate holdings of $24,279 and $21,164 at November 25, 2023 and November 26, 2022, respectively, for Company-owned stores, consisting of eight locations with a total of 203,465 square feet of space, could suffer significant impairment in value if we are forced to close additional stores and sell or lease the related properties during periods of weakness in certain markets.
Our retail real estate holdings of $24,127 and $24,279 at November 30, 2024 and November 25, 2023, respectively, for Company-owned stores, consisting of eight locations with a total of 203,465 square feet of space, could suffer significant impairment in value if we are forced to close additional stores and sell or lease the related properties during periods of weakness in certain markets.
For fiscal 2023, 2022 and 2021, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive: 2023 2022 2021 Unvested restricted shares 92,313 - - 56 18. Discontinued Operations On January 31, 2022, we entered into a definitive agreement to sell substantially all of the assets of Zenith to J.B. Hunt.
For fiscal 2024, 2023 and 2022, the following potentially dilutive shares were excluded from the computations as their effect was anti-dilutive: 2024 2023 2022 Unvested restricted shares 94,409 92,313 - 58 18. Discontinued Operations On January 31, 2022, we entered into a definitive agreement to sell substantially all of the assets of Zenith to J.B. Hunt.
(2) Beginning with the fourth quarter of fiscal 2022, our Corporate and other segment includes the sales of Noa Home, which was acquired on September 2, 2022 (see Note 3). 60 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A.
(2) Beginning with the fourth quarter of fiscal 2022, our Corporate and other reconciling category includes the sales of Noa Home, which was acquired on September 2, 2022 (see Note 3). 62 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A.
At November 25, 2023 our definite-lived intangible assets consist of customer relationships acquired in the acquisition of Lane Venture with a carrying value of $175. Impairment of Long-Lived Assets - We periodically evaluate whether events or circumstances have occurred that indicate long-lived assets may not be recoverable or that the remaining useful life may warrant revision.
At November 30, 2024 our definite-lived intangible assets consist of customer relationships acquired in the acquisition of Lane Venture with a carrying value of $120. Impairment of Long-Lived Assets - We periodically evaluate whether events or circumstances have occurred that indicate long-lived assets may not be recoverable or that the remaining useful life may warrant revision.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of November 25, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated January 25, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of November 30, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 10, 2025 expressed an unqualified opinion thereon.
Our liability for Company contributions and participant deferrals at November 25, 2023 and November 26, 2022 was $2,661 and $2,070, respectively, and is included in post-employment benefit obligations in our consolidated balance sheets. On May 2, 2017, we made Long Term Cash Awards (“LTC Awards”) totaling $2,000 under the Plan to certain management employees in the amount of $400 each.
Our liability for Company contributions and participant deferrals at November 30, 2024 and November 25, 2023 was $3,486 and $2,661, respectively, and is included in post-employment benefit obligations in our consolidated balance sheets. On May 2, 2017, we made Long Term Cash Awards (“LTC Awards”) totaling $2,000 under the Plan to certain management employees in the amount of $400 each.
In our opinion, Bassett Furniture Industries, Incorporated and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of November 25, 2023, based on the COSO criteria.
In our opinion, Bassett Furniture Industries, Incorporated and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of November 30, 2024, based on the COSO criteria.
Minimum future lease payments due to us under these subleases are as follows: Fiscal 2024 $ 899 Fiscal 2025 899 Fiscal 2026 586 Fiscal 2027 215 Fiscal 2028 - Thereafter - Total minimum future rental income $ 2,599 Guarantees As part of the strategy for our store program, we have guaranteed certain lease obligations of licensee operators.
Minimum future lease payments due to us under these subleases are as follows: Fiscal 2025 $ 899 Fiscal 2026 586 Fiscal 2027 215 Fiscal 2028 - Fiscal 2029 - Thereafter - Total minimum future rental income $ 1,700 Guarantees As part of the strategy for our store program, we have guaranteed certain lease obligations of licensee operators.
Inventories accounted for under the LIFO method represented 51% and 46% of total inventory before reserves at November 25, 2023 and November 26, 2022, respectively. We estimate inventory reserves for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand and market conditions.
Inventories accounted for under the LIFO method represented 50% and 51% of total inventory before reserves at November 30, 2024 and November 25, 2023, respectively. We estimate inventory reserves for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand and market conditions.
Our reserves for excess and obsolete inventory were $5,183 and $5,167 at November 25, 2023 and November 26, 2022, respectively, representing 7.6% and 5.8%, respectively, of our inventories on a LIFO basis. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may be required.
Our reserves for excess and obsolete inventory were $5,395 and $5,183 at November 30, 2024 and November 25, 2023, respectively, representing 8.9% and 7.6%, respectively, of our inventories on a LIFO basis. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may be required.
Advertising Costs incurred for producing and distributing advertising and advertising materials are expensed when incurred and are included in selling, general and administrative expenses. Advertising costs totaled $19,106, $16,698, and $15,228 in fiscal 2023, 2022, and 2021, respectively. Insurance Reserves We have self-funded insurance programs in place to cover workers’ compensation and health insurance.
Advertising Costs incurred for producing and distributing advertising and advertising materials are expensed when incurred and are included in selling, general and administrative expenses. Advertising costs totaled $13,256, $19,106, and $16,698 in fiscal 2024, 2023, and 2022, respectively. Insurance Reserves We have self-funded insurance programs in place to cover workers’ compensation and health insurance.
Additionally, if we are required to assume responsibility for payment under the lease obligations of $1,845 and $1,880 which we have guaranteed on behalf of licensees as of November 25, 2023 and November 26, 2022, respectively, we may not be able to secure sufficient sub-lease income in the current market to offset the payments required under the guarantees.
Additionally, if we are required to assume responsibility for payment under the lease obligations of $5,131 and $1,845 which we have guaranteed on behalf of licensees as of November 30, 2024 and November 25, 2023, respectively, we may not be able to secure sufficient sub-lease income in the current market to offset the payments required under the guarantees.
Over 75% of our wholesale revenues are derived from products that are manufactured in the United States using a mix of domestic and globally sourced components and raw materials.
Approximately 80% of our wholesale revenues are derived from products that are manufactured in the United States using a mix of domestic and globally sourced components and raw materials.
We provide post-employment benefits to certain current and former executives and management level employees of the Company. Included among these benefits are two defined-benefit plans with a combined projected benefit obligation of $6,979 at November 25, 2023. See Note 10 to our consolidated financial statements for a projection of future benefit payments under these plans from 2024 through 2033.
We provide post-employment benefits to certain current and former executives and management level employees of the Company. Included among these benefits are two defined-benefit plans with a combined projected benefit obligation of $6,917 at November 30, 2024. See Note 10 to our consolidated financial statements for a projection of future benefit payments under these plans from 2025 through 2034.
On September 2, 2022, we acquired 100% of the capital stock of Noa Home Inc. (“Noa Home”), a mid-priced e-commerce furniture retailer headquartered in Montreal, Canada. Noa Home has operations in Canada, Australia, Singapore and the United Kingdom. Since acquisition, Noa Home has been consolidated as a wholly-owned subsidiary. See Note 3 for additional information.
On September 2, 2022, we acquired 100% of the capital stock of Noa Home Inc. (“Noa Home”), a mid-priced e-commerce furniture retailer headquartered in Montreal, Canada. Noa Home had operations in Canada, Australia, Singapore and the United Kingdom. Since acquisition, Noa Home has been consolidated as a wholly-owned subsidiary.
Our estimates of the fair value of the impaired ROU assets included estimates of discounted cash flows based upon current market rents and other inputs which we consider to be Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurement and Disclosure (see Note 4).
Our estimates of the fair value of the impaired right-of-use assets included estimates of discounted cash flows based upon current market rents and other inputs which we consider to be Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurement and Disclosure.
As part of the goodwill impairment testing, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our reporting units. 44 Changes in the carrying amounts of goodwill by reportable segment were as follows: Corporate Wholesale Retail and Other Total Balance as of November 27, 2021 $ 7,217 $ - $ - $ 7,217 Acquisition of Noa Home - - 5,715 5,715 Foreign currency translation adjustment - - (161 ) (161 ) Balance as of November 26, 2022 7,217 - 5,554 12,771 Foreign currency translation adjustment - - (145 ) (145 ) Full impairment of Noa Home goodwill - - (5,409 ) (5,409 ) Balance as of November 25, 2023 $ 7,217 $ - $ - $ 7,217 Accumulated impairment losses were $9,306, $3,897 and $3,897 at November 25, 2023, November 26, 2022 and November 27, 2021, respectively.
As part of the goodwill impairment testing, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our reporting units. 46 Changes in the carrying amounts of goodwill by reportable segment were as follows: Wholesale Retail Corporate and Other Total Balance as of November 26, 2022 $ 7,217 $ - $ 5,554 $ 12,771 Foreign currency translation adjustment - - (145 ) (145 ) Full impairment of Noa Home goodwill - - (5,409 ) (5,409 ) Balance as of November 25, 2023 7,217 - - 7,217 No changes in fiscal 2024 - - - - Balance as of November 30, 2024 $ 7,217 $ - $ - $ 7,217 Accumulated impairment losses were $9,306, $9,306 and $3,897 at November 30, 2024, November 25, 2023 and November 26, 2022, respectively.

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