What changed in BASSETT FURNITURE INDUSTRIES INC's 2025 10-K compared to 2024?

Across the narrative sections we track, BASSETT FURNITURE INDUSTRIES INC (BSET) added 363 paragraphs, removed 425, and edited 301 between the 2024 and 2025 10-K filings. The biggest movers are Item 6. [Reserved] (+289/−341), Item 1. Business (+41/−44), Item 1C. Cybersecurity (+11/−18).

Did BASSETT FURNITURE INDUSTRIES INC add new Risk Factors in the 2025 10-K?

Yes — Item 1A Risk Factors shows 10 new/edited paragraphs and 10 removed paragraphs versus the 2024 10-K.

Did BASSETT FURNITURE INDUSTRIES INC update its Cybersecurity disclosure (Item 1C) in 2025?

Item 1C Cybersecurity has 11 paragraph-level changes between the 2024 and 2025 filings.

Where does this BSET 10-K diff come from?

The source filings are BASSETT FURNITURE INDUSTRIES INC's official 2024 and 2025 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

BASSETT FURNITURE INDUSTRIES INCBSET财报

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深度分析

Bassett Furniture Industries, Inc. is a furniture manufacturer and retailer, headquartered in Bassett, Virginia, United States. It was founded in 1902 by John D. Bassett, Charles C. Bassett, Samuel H. Bassett, and Reed L. Stone. Bassett Furniture is one of the oldest furniture manufacturers in Virginia. The company began when the founders, operating a family sawmill in the foothills of the Blue Ridge Mountains, decided to use surplus lumber to produce bedroom furniture. According to oral hist...

What changed in BASSETT FURNITURE INDUSTRIES INC's 10-K — 2024 vs 2025

Top changes in BASSETT FURNITURE INDUSTRIES INC's 2025 10-K

363 paragraphs added · 425 removed · 301 edited across 6 sections

Item 6. [Reserved]+289 / −341 · 239 edited
Item 1. Business+41 / −44 · 32 edited
Item 1C. Cybersecurity+11 / −18 · 10 edited
Item 1A. Risk Factors+10 / −10 · 8 edited
Item 4. Mine Safety Disclosures+7 / −7 · 7 edited

Item 1. Business

Business — how the company describes what it does

32 edited+9 added−12 removed19 unchanged

2024 filing

2025 filing

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.

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. ● Our benefits and wellness app, free to our associates and their dependents, 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.

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.

Approximately 23% of our 2025 wholesale sales were of imported product compared to 20% in 2024 and 22% in 2023. We define imported product as fully finished product that is sourced. Our domestic product includes certain products that contain components which were also sourced.

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.

As of and for the periods ended November 29, 2025, November 30, 2024 and November 25, 2023, the only such operating segment included in Corporate and other was Noa Home, which was acquired on September 2, 2022.

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.

Headcount by segment is as follows: ● 615 in the wholesale segment ● 444 in the retail segment ● 135 in the corporate 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.

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.

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.

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.

As of the end of 2024, we had 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.

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 filings with the Securities and Exchange Commission (“SEC”) are available to the public at the SEC’s website at www.sec.gov.

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.

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 $18,528 and $18,281 at November 29, 2025 and November 30, 2024, respectively.

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.

As of the end of 2024, we had substantially completed the liquidation of Noa Home. 4 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.

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.

At November 29, 2025 and November 30, 2024, approximately 41% and 43%, respectively, of the aggregate risk exposure, net of reserves, was attributable to five customers. In fiscal 2025, 2024 and 2023, no customer accounted for more than 10% of total consolidated net sales.

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.

The following table shows the number of Company-owned stores by state at November 29, 2025: Number of Number of State Stores State Stores Arizona 3 Nevada 1 Arkansas 1 New Jersey 2 California 1 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 57 Net sales for our Company-owned retail stores by major product category for the last three fiscal years are summarized below: 2025 2024* 2023 Bassett Custom Upholstery $ 117,231 54.1 % $ 111,943 54.7 % $ 134,000 56.8 % Bassett Leather 9,121 4.2 % 4,990 2.4 % 1,951 0.8 % Bassett Custom Wood 31,885 14.7 % 32,201 15.7 % 36,732 15.6 % Bassett Casegoods 29,218 13.5 % 26,179 12.8 % 32,252 13.7 % Accessories, mattresses & other (1) 29,226 13.5 % 29,250 14.3 % 31,005 13.1 % Total $ 216,681 100.0 % $ 204,563 100.0 % $ 235,940 100.0 % (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 2025 and 2023.

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.

The dollar value of our wholesale backlog, representing orders received but not yet shipped to the BHF store network or independent dealers, was $19,519 at November 29, 2025 and $21,750 at November 30, 2024. We use lumber, fabric, leather, foam and other materials in the production of wood and upholstered furniture.

ITEM 1. BUSINESS (dollar amounts in thousands except per share data) General Bassett is a leading retailer, manufacturer and marketer of branded home furnishings.

ITEM 1. BUSINESS (dollar amounts in thousands except per share data) General Bassett is a leading retailer, manufacturer and marketer of branded home furnishings. We were founded in 1902 and incorporated under the laws of Virginia in 1930.

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.

We have a factory in Martinsville, Virginia that assembles and finishes our custom bedroom and dining offerings. We also have a facility in Haleyville, Alabama where we manufacture aluminum frames for our outdoor furniture.

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.

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 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.

Professional Development We offer opportunities to our associates for educational and skill development, including: ● Tuition reimbursement for associates who desire to further their education ● Online training for managers, with classes completed monthly ● Training for customer-facing associates designed to enhance the in-store and follow up experiences for our customers 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.

Our store program is designed to provide a single source home furnishings retail store that provides a unique combination of stylish, quality furniture and accessories with a high level of customer service.

Our store program is designed to provide a single source home furnishings retail store with a unique combination of stylish, quality furniture and accessories with a high level of customer service. The stores highlight our custom furniture design and manufacturing capabilities, free in-home or virtual design visits (“home makeovers”) and coordinated decorating accessories.

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.

Our comprehensive human resources, benefits, payroll and timekeeping system gives our associates the ability to view, and where applicable, update their personal information, benefits enrollments, pay history and time worked in real time. Through our “Opportunities For Improvement” program, associates can submit an “OFI” about a job-related issue they’ve experienced or observed and a suggestion for improvement.

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.

Our rich 123-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. Approximately 60% of our wholesale sales arise from our network of 86 Company-owned and licensee-owned Bassett Home Furnishings (“BHF”) stores.

Wholesale 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.

Wholesale shipments by category for the last three fiscal years, excluding intercompany sales to our retail segment, are summarized below: 2025 2024* 2023 External Intercompany Total External Intercompany Total External Intercompany Total Bassett Custom Upholstery $ 76,923 $ 59,391 $ 136,314 63.5 % $ 79,281 $ 55,168 $ 134,449 64.8 % $ 89,005 $ 66,363 $ 155,368 62.4 % Bassett Leather 16,484 3,252 19,736 9.2 % 15,705 1,920 17,625 8.5 % 26,701 1,171 27,872 11.2 % Bassett Custom Wood 12,357 16,297 28,654 13.4 % 13,735 15,932 29,667 14.3 % 17,357 20,070 37,427 15.0 % Bassett Casegoods 12,835 17,075 29,910 13.9 % 11,720 14,001 25,721 12.4 % 12,329 15,915 28,244 11.3 % Total $ 118,599 $ 96,015 $ 214,614 100.0 % $ 120,441 $ 87,021 $ 207,462 100.0 % $ 145,392 $ 103,519 $ 248,911 100.0 % *53 weeks for fiscal 2024 as compared with 52 weeks for fiscal 2025 and 2023.

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.

While we currently do not believe that costs associated with such trade policies will have a material adverse effect on our financial position or future results of operations, changes to such policies in the future could negatively impact our financial position or future results of operations. Human Capital We employed 1,194 people as of November 29, 2025.

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.

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.

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.

Our associate count represents a decrease of 34 from a year ago, 29 due to headcount reductions in our manufacturing facilities in response to business conditions and 9 in our retail segment primarily attributable to the closure of a store location and the consolidation of several warehouses.

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.

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. As a whole, our store network which includes 29 licensee-owned stores in addition to the 57 BHF Company-owned stores, ranks in the top 40 in retail furniture sales in the United States.

Since the debut of the new site, we have seen increased engagement with the brand through a greater number of page views per customer along with more time spent on the site. We have also seen an increase in average order value that has resulted in increased e-commerce revenue.

We introduced a new web platform late in 2023 that leverages world class features including enhanced customer research capabilities and streamlined navigation. Since the debut of the new site, we have seen increased engagement with the brand through a greater number of page views per customer along with more time spent on the site.

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.

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. We closed one store in 2025 and expect to open two new stores in 2026. We are also planning to relocate one store within the same market in late 2026 or 2027.

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.

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.

These components are purchased from a variety of domestic and international suppliers and are widely available. The price and availability of foam, which is highly dependent on the cost of oil and available capacity of oil refineries, can be subject to significant volatility from time to time.

The price and availability of foam, which is highly dependent on the cost of oil and available capacity of oil refineries, can be subject to significant volatility from time to time. 3 Retail Segment Overview – Company-Owned Retail Stores The retail—Company-owned stores segment consists of 57 BHF stores that provide consumers with a friendly and casual environment for buying furniture and accessories.

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.

Although e-commerce sales continue to be small relative to in-store sales, we will continue to invest in ongoing improvements to the aesthetics and user experience on our website while not compromising on 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”).

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.

Digital outreach strategies have been the primary vehicle for brand advertising and customer acquisition. We began supplementing the digital outreach strategy with added direct mail and television late in 2024 and expect to continue with a balanced blend of both digital and traditional direct mail and television in 2026.

We believe that these investments are crucial to the success of our associates and our Company. Workplace Respect We value the diversity of our associates as an essential component in the way we do business.

Based on opinions shared by the focus groups, we gained valuable insight into how we can improve our work environments and better communicate with our associates. Workplace Respect We value the diversity of our associates as an essential component in the way we do business.

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.

This event is hosted by our BenchMade supply partners, and over 220,000 trees have been planted to date – and counting. Additionally, we remain committed to our recycling efforts.

Removed

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.

Added

Bassett also has a significant traditional wholesale business with more than 1,000 open market accounts. Most of the open market sales are through Bassett Design Centers and Bassett Custom Studios which function as a store within a multi-line store featuring the Company’s custom furniture capabilities.

Removed

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.

Added

The wholesale business, including the Lane Venture outdoor brand, also services general furniture stores and a growing number of interior design firms through a network of over 30 independent sales representatives who have stated geographical territories. These sales representatives are compensated based on a standard commission rate.

Removed

In order for the Bassett brand to reach markets that cannot be effectively served by our retail store network, we also distribute our products through other wholesale channels including multi-line furniture stores, many of which feature Bassett galleries or design centers. We use a network of over 30 independent sales representatives who have stated geographical territories.

Added

We have also seen an increase in average order value that has resulted in increased e-commerce revenue. While traffic to the website decreased 8% during 2025, sales conversion rates increased 28% resulting in a 25% increase in total web sales.

Removed

These sales representatives are compensated based on a standard commission rate. We believe this blended strategy provides us the greatest ability to effectively distribute our products throughout the United States and ultimately gain market share. The BHF stores feature custom order furniture, free in-home or virtual design visits (“home makeovers”) and coordinated decorating accessories.

Added

These components are purchased from a variety of domestic and international suppliers and are widely available.

Removed

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).

Added

We believe that these investments are crucial to the success of our associates and our Company. Focus Group Study In 2025 we conducted a focus group study, facilitated by a third-party consultant, in our manufacturing facilities and our corporate office.

Removed

Our strategy is to distribute these products outside of our BHF store network through independent sales representatives each of which have a stated geographic territory. Using Lane Venture as a platform, we developed the Bassett Outdoor brand that is only marketed through the BHF store network.

Added

Meeting in groups of 8-10, approximately 20% of our associates participated and shared their thoughts about the Company and their work environment. This information was provided to senior management by the consultant in location-specific summary reports.

Removed

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.

Added

These include: ● Continued installation of air quality control equipment at our Martinsville, VA facility. ● Roof replacement and a complete freight elevator refurbishment at our Central Warehouse in Bassett, VA. ● Installation of a new HVAC system at one of our upholstery manufacturing facilities in Newton, NC. ● Installation of a biometric (finger scan) building entry system at our Corporate Office to improve security.

Removed

Hunt Transport Services, Inc. (“J.B. Hunt”), and the transaction was completed on February 28, 2022. As a result of the sale, the operations of our former logistical services segment, which consisted entirely of the operations of Zenith, are presented in this Annual Report on Form 10-K as discontinued operations.

Added

Examples include concerns related to product quality, process improvement, safety and communication issues.

Removed

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.

Added

Materials recycled in 2025 include: Tons Tons Wood Dust 1,333 Fabric Scraps 177 Paper/Cardboard 162 Wood Pallets 148 Metal/Electronics 56 Finishing Materials 16 Plastic 36 Foam 9,450 cubic feet In 2025, we partnered with the mission-driven team from Military Makeover with Montel® to design and furnish a home for a North Carolina veteran and his family.

Removed

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.

Removed

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.

Removed

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

8 edited+2 added−2 removed25 unchanged

2024 filing

2025 filing

Should current economic conditions weaken, the current rate of housing starts decline, or rising inflation persist, consumer confidence and demand for home furnishings could deteriorate which could adversely affect our business through its impact on the performance of our Company-owned stores, as well as our licensees and the ability of a number of them to meet their obligations to us.

Should current economic conditions weaken, the current rate of housing starts continue to decline, or rising inflation persist, consumer confidence and demand for home furnishings could deteriorate which could adversely affect our business through its impact on the performance of our Company-owned stores, as well as our licensees and the ability of a number of them to meet their obligations to us.

We attempt to monitor changes in consumer tastes and home design trends through attendance at international industry events and fashion shows, internal marketing research, and communication with our retailers and design consultants who provide valuable input on consumer tendencies.

As with all retailers, our business is susceptible to changes in consumer tastes and trends. We attempt to monitor changes in consumer tastes and home design trends through attendance at international industry events and fashion shows, internal marketing research, and communication with our retailers and design consultants who provide valuable input on consumer tendencies.

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.

These risks are related to government regulation, volatile ocean freight costs, delays in shipments, and extended lead time in ordering.

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.

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.

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. 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.

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. Our use of foreign sources for the supply of certain of our products exposes us to risks associated with overseas sourcing.

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.

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 on our website. Digital outreach strategies have been the primary vehicle for brand advertising and customer acquisition.

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.

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. Sales of our furniture are dependent upon consumer acceptance of our designs, styles, quality and price.

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 have a significant amount of accounts receivable attributable to our network of licensee-owned stores. We also guarantee one lease each for two licensees. 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.

Removed

Sales of our furniture are dependent upon consumer acceptance of our designs, styles, quality and price. As with all retailers, our business is susceptible to changes in consumer tastes and trends.

Added

We began supplementing the digital outreach strategy with added direct mail and television late in 2024 and expect to continue with a balanced blend of both digital and traditional direct mail and television in 2026. We have also invested heavily in our website and e-commerce.

Removed

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.

Added

We have been a target of a cybersecurity attack in the past, and while such attack did not result in a material impact on our operations, business, customer relationships or reputation, we can provide no assurance that cybersecurity attacks or incidents in the future will not have a material adverse impact on our business.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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2025 filing

As described above, we utilize a risk-based approach and judgment to determine the security controls to implement and it is possible we may not implement appropriate controls if we do not recognize or underestimate a particular risk. In addition, security controls, no matter how well designed or implemented, may only mitigate and not fully eliminate risks.

As described above, we utilize a risk-based approach and judgment to determine the security controls to implement and it is possible we may not implement appropriate controls if we do not recognize or if we underestimate a particular risk. In addition, security controls, no matter how well designed or implemented, may only mitigate and not fully eliminate risks.

The CIO reports to the Audit Committee annually on cybersecurity risks and related internal controls and attends quarterly meetings to provide updates and address any questions regarding cybersecurity and information technology systems.

And events, when detected by security tools or third parties, may not always be immediately understood or acted upon. The Company activated their incident response plan to address a security incident in 2024.

And events, when detected by security tools or third parties, may not always be immediately understood or acted upon. In fiscal 2024, the Company activated its incident response plan to address a cybersecurity incident that was resolved without material impact to the Company.

An internal information security audit program is in place to ensure controls remain operational and effective. 9 Third-party security firms are used by the Company in different capacities to provide or operate some of these controls and technology systems. Third parties are also used to conduct assessments, such as vulnerability scans and penetration testing of the Company and its systems.

Third-party security firms are used by the Company in different capacities to provide or operate some of these controls and technology systems. Third parties are also used to conduct assessments, such as vulnerability scans and penetration testing of the Company and its systems.

The Company is not aware of additional cybersecurity threats or any material cybersecurity incidents to date that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition. On July 10, 2024, we detected unauthorized occurrences on a portion of our information technology (IT) systems.

The Company is not aware of any additional cybersecurity threats or incidents to date that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations or financial condition.

The CIO is also a member of the Company’s executive leadership team, meeting regularly with the CEO, CFO, and other senior leaders. The CIO directly reports to the Board at least annually, addressing cybersecurity risks and strategy, and attends Board meetings to discuss cybersecurity matters as needed. The Audit Committee provides oversight of the information security program.

The CIO directly reports to the Board at least annually, addressing cybersecurity risks and strategy, and attends Board meetings to discuss cybersecurity matters as needed. The Audit Committee provides oversight of the information security program.

A risk assessment is conducted annually. The risk assessment along with risk-based analysis and judgment are used to select security controls to address risks.

The maturity and effectiveness of the information security program are evaluated biennially by an independent third party. 9 A risk assessment is conducted annually. The risk assessment along with risk-based analysis and judgment are used to select security controls to address risks.

Specific controls that are used to some extent by the Company include endpoint threat detection and response (EDR), identity and access management (IAM), multi-factor authentication (MFA), firewalls and intrusion detection and prevention, and vulnerability and patch management.

Specific controls used by the Company include, endpoint threat detection and response (EDR), identity and access management (IAM), multi-factor authentication (MFA), firewalls and intrusion detection and prevention systems, vulnerability and patch management, and ongoing employee information security awareness and training programs. An internal information security audit program is maintained to help ensure that these controls remain operational and effective.

This team also has responsibility to maintain and enhance the Company’s written cyber security incident response plan, which identifies incident severity classifications and serves as a trigger for escalation for the response team. 10 With over 25 years of experience across diverse IT technologies, the CIO brings extensive expertise to the role.

Governance The Chief Information Officer ("CIO") holds primary oversight responsibility for the team managing the development, operation, and maintenance of our information security program. This team also has responsibility to maintain and enhance the Company’s written cyber security incident response plan, which identifies incident severity classifications and serves as a trigger for escalation for the response team.

ITEM 1C. CYBERSECURITY Risk Management and Strategy The Company has developed a standards-based information security program to address risks from cybersecurity threats. The program includes policies and procedures that identify how security measures and controls are developed, implemented, and maintained. The maturity and effectiveness of the security program is reviewed biennially by a reputable third party.

ITEM 1C. CYBERSECURITY Risk Management and Strategy The Company maintains an information security program designed in alignment with the ISO/IEC 27001 and ISO/IEC 27002 standards to address risks arising from cybersecurity threats. The program consists of documented policies, standards, and procedures that define the design, implementation, operation, and maintenance of security controls.

Removed

Upon detecting the unauthorized occurrences, we immediately began taking steps to contain, assess and remediate the cybersecurity incident, including beginning an investigation with leading external cybersecurity specialists, activating our incident response plan, and shutting down some systems. As a result of these and other measures, we believe the threat actor was ejected from our IT systems on July 10, 2024.

Added

With over 25 years of experience across diverse IT technologies, the CIO brings extensive expertise to the role. The CIO is also a member of the Company’s executive leadership team, meeting regularly with the CEO, CFO, and other senior leaders.

Removed

After we shut down some of our systems, we experienced disruption to certain of our operations, including interrupted manufacturing at our domestic plants and delayed order fulfillment for our retail network and delay of some wholesale shipments.

Removed

Within a few days of the incident, we were able to resume retail order fulfillment and caught up on fulfilling wholesale orders that were delayed as a result of the cybersecurity incident.

Removed

We have fully restored the IT systems and data and our investigation has not found evidence that any of our core operating systems for manufacturing, wholesale and retail order processing and fulfillment, or financial reporting were impacted.

Removed

While we believe the impacts were not material to our financial condition and results of operations for the fiscal year, we estimate that between $1,000 and $2,000 of sales were lost due to the shutdown during the cybersecurity incident.

Removed

During the third quarter of 2024, we also incurred legal and remediation costs related to the incident of approximately $98 which are included in selling, general and administrative expenses. In addition, cost of goods sold for year ended November 30, 2024 includes $609 for wages paid to hourly production employees during the work stoppage resulting from the cybersecurity incident.

Removed

Because no inventory was produced during the temporary shutdown of our manufacturing operations, these wages were charged directly to expense. We are seeking reimbursement of certain costs, expenses and losses stemming from the cybersecurity incident and have submitted a claim to our cybersecurity insurer. We expect final resolution and payment of the claim during the first half of 2025.

Removed

Governance The Chief Information Officer ("CIO") holds primary oversight responsibility for the team managing the development, operation, and maintenance of our information security program.

Item 2. Properties

Properties — owned and leased real estate

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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.

All facilities are in regular use and provide adequate capacity for our manufacturing and warehousing needs. In addition to the owned properties shown above, we lease facilities in Newton, North Carolina for the manufacturing of upholstered furniture and the manufacturing and warehousing operations of Lane Venture and Bassett Outdoor.

In 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.

In addition to retail stores, we also lease ten 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, Virginia.

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.

ITEM 2. PROPERTIES We own the following facilities, by segment: Wholesale Segment: Facility Location Bassett Wood Division Martinsville, Virginia Bassett Upholstery Division Newton, North Carolina Bassett Upholstery Division Haleyville, Alabama 2 Warehouses Bassett, Virginia 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 $24,137.

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 approximately $23,500,000.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Issuer Purchases of Equity Securities: We are authorized to repurchase Company stock under a plan which was originally announced in 1998. On March 9, 2022, the Board of Directors increased the remaining limit of the repurchase plan to $40,000. The repurchase program does not include a specific timetable or price targets and may be suspended or terminated at any time.

Issuer Purchases of Equity Securities: We are authorized to repurchase Company stock under a plan which was originally announced in 1998. On March 9, 2022, the Board of Directors increased the remaining limit of the repurchase plan to $40,000,000. The repurchase program does not include a specific timetable or price targets and may be suspended or terminated at any time.

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.

ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 11 INFORMATION ABOUT OUR EXECUTIVE OFFICERS John E. Bassett III, 67, 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.

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.

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, 64, 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, 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.

He was appointed Senior Vice President, Wood in 2009. In 2019, he was promoted to the position of Senior Vice President, Chief Operations Officer. Bruce R. Cohenour, 67, 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.

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.

Jay R. Hervey, Esq., 66, has served as the General Counsel, Vice President and Secretary for the Company since 1997. Robert H. Spilman, Jr., 69, 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 6,300 beneficial stockholders at January 23, 2025.

The 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

The following table summarizes the stock repurchase activity for the three months ended November 29, 2025, and the approximate dollar value of shares that may yet be repurchased pursuant to our stock repurchase program: Issuer Purchases of Equity Securities (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 August 31, 2025 - October 4, 2025 8,890 $ 15.53 8,890 $ 18,744 October 5 - November 1, 2025 17,199 $ 15.34 17,199 $ 18,480 November 2, 2025 - November 29, 2025 15,172 $ 14.90 15,172 $ 18,254

Item 6. [Reserved]

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

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2025 filing

Inventories Inventories (retail merchandise, finished goods, work in process and raw materials) accounted for under the first-in, first out (“FIFO”) method are stated at the lower of cost or net realizable value or, in the case of inventory accounted for under the last-in, first out (“LIFO”) method, at the lower of cost or market.

Inventories Inventories (finished goods, work in process, raw materials and retail merchandise) accounted for under the first-in, first out (“FIFO”) method are stated at the lower of cost or net realizable value or, in the case of inventory accounted for under the last-in, first out (“LIFO”) method, at the lower of cost or market.

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.

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.

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.

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.

In addition to the two reportable segments described above, we include our remaining business activities and assets in a reconciling category known as Corporate and other.

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.

In addition to property and equipment and various other assets associated with the shared corporate functions, the identifiable assets of Corporate and other include substantially all of our cash and our investments in CDs.

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.

All sales reported in our Corporate and other category are attributable to Noa Home, which generated substantially all of its sales outside of the United States.

In addition, we must maintain the following financial covenants, measured quarterly on a rolling twelve-month basis and commencing as of the end of the first fiscal quarter after the first date that the used commitment (the sum of any outstanding advances plus standby letters of credit) equals or exceeds $8,250: ● Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.2 times and 47 ● Consolidated Lease Adjusted Leverage to EBITDAR Ratio (as defined in the Credit Facility) not to exceed 3.35 times.

In addition, we must maintain the following financial covenants, measured quarterly on a rolling twelve-month basis and commencing as of the end of the first fiscal quarter after the first date that the used commitment (the sum of any outstanding advances plus standby letters of credit) equals or exceeds $8,250: ● Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.2 times and ● Consolidated Lease Adjusted Leverage to EBITDAR Ratio (as defined in the Credit Facility) not to exceed 3.35 times.

The determination of the fair value of our reporting units is based on a combination of a market approach, that considers benchmark company market multiples, an income approach, that utilizes discounted cash flows for each reporting unit and other Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosure (see Note 4), and, in the case of our retail reporting unit, a cost approach that utilizes estimates of net asset value.

The determination of the fair value of our reporting units is based on a combination of a market approach, that considers benchmark company market multiples, an income approach, that utilizes discounted cash flows for each reporting unit and other Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosure (see Note 3), and, in the case of our retail reporting unit, a cost approach that utilizes estimates of net asset value.

During the second quarter we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and decided to cease operations by selling the remaining inventory in an orderly fashion through then end of fiscal 2024. $1,827 of these charges are for the full impairment of the Noa Home trade name intangible asset , and $74 relates to the full impairment of customized software used in the Noa Home operations.

During the second quarter we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and decided to cease operations by selling the remaining inventory in an orderly fashion through the end of fiscal 2024. $1,827 of these charges are for the full impairment of the Noa Home trade name intangible asset , and $74 relates to the full impairment of customized software used in the Noa Home operations.

Segment Information We have strategically aligned our business into two reportable segments as defined in ASC 280, Segment Reporting , and as described below: ● Wholesale. The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (Company-owned and licensee-owned retail stores) and independent furniture retailers.

We have strategically aligned our business into two reportable segments as defined in ASC 280, Segment Reporting , and as described below: ● Wholesale. The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (Company-owned and licensee-owned retail stores) and independent furniture retailers.

Critical Accounting Policies and Estimates Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which requires that certain estimates and assumptions be made that affect the amounts and disclosures reported in those financial statements and the related accompanying notes. Actual results could differ from these estimates and assumptions.

Critical Accounting Estimates Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which requires that certain estimates and assumptions be made that affect the amounts and disclosures reported in those financial statements and the related accompanying notes. Actual results could differ from these estimates and assumptions.

The amendments in ASU 2024-03 will become effective for us for our 2028 fiscal year and for interim periods beginning with our 2029 fiscal year. Early adoption is permitted. We do not expect that this guidance will have a material impact upon our financial position and results of operations. 41 3.

The components of net periodic pension cost other than the service cost component are included in other loss, net in our consolidated statements of operations. Deferred Compensation Plan We have an unfunded Deferred Compensation Plan that covers one current and certain former executives and provides for voluntary deferral of compensation.

The components of net periodic pension cost other than the service cost component are included in other loss, net in our consolidated statements of operations. 47 Deferred Compensation Plan We have an unfunded Deferred Compensation Plan that covers one current and certain former executives and provides for voluntary deferral of compensation.

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.

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.

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.

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.

Leases 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.

(6) Represents the charge for accruing the remaining minimum payments under a contract for logistical services in Riverside, CA which is no longer utilized. (7) Represents a charge for the realization of Noa Home's cumulative translation losses previously recorded in accumulated other comprehensive income due to the closure and substantially complete liquidation of that business.

(7) Represents the charge for accruing the remaining minimum payments under a contract for logistical services in Riverside, CA which is no longer utilized. (8) Represents a charge for the realization of Noa Home's cumulative translation losses previously recorded in accumulated other comprehensive income due to the closure and substantially complete liquidation of that business.

Other Gains and Losses Asset Impairment Charges During fiscal 2024, we recognized non-cash charges for asset impairments totaling $5,515 which consisted of the following: ● $2,887 in our retail segment which included $1,978 related to the impairment of leasehold improvements and $750 from the impairment of right-of-use assets at certain underperforming retail stores, as well as $159 for the impairment of right-of-use assets at certain warehouse locations resulting from the consolidation of our retail warehouses. ● $727 for the impairment of plant and equipment in our wholesale segment related to the consolidation of our domestic wood production facilities. ● $1,901 for the impairment of long-lived assets at Noa Home.

During fiscal 2024, we recognized non-cash charges for asset impairments totaling $5,515 which consisted of the following: ● $2,887 in our retail segment which included $1,978 related to the impairment of leasehold improvements and $750 from the impairment of right-of-use assets at certain underperforming retail stores, as well as $159 for the impairment of right-of-use assets at certain warehouse locations resulting from the consolidation of our retail warehouses. ● $727 for the impairment of plant and equipment in our wholesale segment related to the consolidation of our domestic wood production facilities. ● $1,901 for the impairment of long-lived assets at Noa Home.

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.

In fiscal 2025, 2024 and 2023, 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.

Cost is determined for domestic manufactured furniture inventories using the LIFO method because we believe this methodology provides better matching of revenue and expenses. The cost of imported inventories as well as Lane Venture, Bassett Outdoor and Noa Home product inventories are determined on a first-in, first-out (“FIFO”) basis.

Cost is determined for domestic manufactured furniture inventories using the LIFO method because we believe this methodology provides better matching of revenue and expenses. The cost of imported inventories as well as Lane Venture and Bassett Outdoor product inventories are determined on a first-in, first-out (“FIFO”) basis.

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.

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. 25 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. 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 2024.

We adjust insurance reserves, as needed, in the event that future loss experience differs from historical loss patterns. Supplemental Cash Flow Information Refer to the supplemental lease disclosures in Note 15 for cash flow impacts of leasing transactions during fiscal 2024, 2023 and 2022.

The objective of the disclosure requirements is to provided disaggregated information about a public business entity's expenses to help investors (a) better understand the entity's performance, (b) better assess the entity's prospects for future cash flows, and (c) compare an entity's performance over time and with that of other entities.

The objective of the disclosure requirements is to provide disaggregated information about a public business entity's expenses to help investors (a) better understand the entity's performance, (b) better assess the entity's prospects for future cash flows, and (c) compare an entity's performance over time and with that of other entities.

Capital Stock and Stock Compensation We account for our stock-based employee and director compensation plans in accordance with ASC 718, Compensation – Stock Compensation .

Capital Stock and Stock Compensation We account for our stock-based employee and director compensation plans in accordance with ASC Topic 718, Compensation – Stock Compensation .

Significant Accounting Policies Basis of Presentation and Principles of Consolidation Our fiscal year ends on the last Saturday in November, which periodically results in a 53-week year. Fiscal 2024 contained 53 weeks while fiscal 2023 and 2022 each contained 52 weeks.

Significant Accounting Policies Basis of Presentation and Principles of Consolidation Our fiscal year ends on the last Saturday in November, which periodically results in a 53-week year. Fiscal 2025 and 2023 each contained 52 weeks while fiscal 2024 contained 53 weeks.

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 goodwill.

For the annual test of goodwill performed as of the beginning of the fourth quarter of fiscal 2025, 2024 and 2023 we performed the qualitative assessment as described above with respect to our upholstery reporting unit and concluded that there was no impairment of goodwill.

(5) Represents asset impairment charges of $2,887 and $727 in our retail and wholesale segments, respectively, a $1,827 charge for the impairment of the Noa Home trade name intangible asset, and a $74 charge for the impairment of Noa Home customized software.

(6) Represents asset impairment charges of $2,887 and $727 in our retail and wholesale segments, respectively, a $1,827 charge for the impairment of the Noa Home trade name intangible asset, and a $74 charge for the impairment of Noa Home customized software.

At November 30, 2024, our indefinite-lived intangible asset other than goodwill consisted of the trade name acquired in the acquisition of Lane Venture and had a carrying value of $6,848. Definite-lived intangible assets are amortized over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

At November 29, 2025, our indefinite-lived intangible asset other than goodwill consisted of the trade name acquired in the acquisition of Lane Venture and had a carrying value of $6,848. Definite-lived intangible assets are amortized over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

The terms of these leases generally match those of the lease we have with the lessor. In addition, we sublease space in certain closed store locations that are still under lease.

The terms of these leases generally match those of the lease we have with the lessor. In addition, we sublease space in certain closed store and warehouse locations that are still under lease.

The line bears interest at the One-Month Term Secured Overnight Financing Rate (“One-Month Term SOFR”) plus 1.75% and is secured by our accounts receivable and inventory. Our bank charges a fee of 0.25% on the daily unused balance of the line, payable quarterly.

The line bears interest at the One-Month Term Secured Overnight Financing Rate (“One-Month Term SOFR”) plus 1.75% and is secured by our accounts receivable (Note 4) and inventory (Note 5). Our bank charges a fee of 0.25% on the daily unused balance of the line, payable quarterly.

During the second fiscal quarter of 2024 we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and have ceased operations as of November 30, 2024 by selling the remaining inventory in an orderly fashion over the second half of fiscal 2024.

During the second fiscal quarter of 2024 we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and ceased operations as of November 30, 2024 after selling the remaining inventory in an orderly fashion over the second half of fiscal 2024.

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.

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. In 2025 we sourced approximately 23% of our wholesale products from various foreign countries, with the remaining volume produced at our five domestic manufacturing facilities. 2.

Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Ernst & Young LLP, the Company’s independent registered public accounting firm, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting.

Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Grant Thornton LLP, the Company’s independent registered public accounting firm, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting.

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”).

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 86 retail stores known as Bassett Home Furnishings (referred to as “BHF”). Of the 86 stores, the Company owns and operates 57 stores (“Company-owned retail stores”) with the other 29 being independently owned (“licensee operated”).

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”).

Compensation expense related to restricted stock and stock options included in selling, general and administrative expenses in our consolidated statements of operations for fiscal 2025, 2024 and 2023 was as follows: 2025 2024 2023 Stock based compensation expense $ 639 $ 804 $ 849 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”).

Our effective tax rate of 32.5% for 2024 differs from the federal statutory rate of 21.0% due to the increases in the valuation allowance placed on deferred tax assets resulting from pre-tax losses in foreign tax jurisdictions associated with Noa Home, the nondeductible impairment of the Noa Home tradename, the tax benefit recorded for the capital loss associated with the cumulative investment in Noa Home due to the shutdown of the operations, and the effects of state income taxes and various permanent differences.

Our effective tax rate of 32.5% for 2024 differs from the federal statutory rate of 21.0% due to the increases in the valuation allowance placed on deferred tax assets resulting from pre-tax losses in foreign tax jurisdictions associated with Noa Home, the nondeductible impairment of the Noa Home tradename, the tax benefit recorded for the capital loss associated with the cumulative investment in Noa Home due to the shutdown of the operations, the effects of state income taxes, various permanent differences, provision to return adjustments and other charges.

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 is Noa Home, which was acquired on September 2, 2022.

As of and for the periods ended November 29, 2025, November 30, 2024 and November 25, 2023, the only such operating segment included in Corporate and other is Noa Home, which was acquired on September 2, 2022.

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.

Based on this evaluation, management concluded that our internal control over financial reporting was effective as of November 29, 2025, 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.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

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.

In fiscal 2023, 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 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.

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 29, 2025 and November 30, 2024, were not material. 16.

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.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 30, 2024, and the results of its operations and its cash flows for each of the two years in the period ended November 30, 2024, in conformity with U.S. generally accepted accounting principles.

Costs incurred to deliver retail merchandise to customers, including the cost of operating regional distribution warehouses, are also recorded in selling, general and administrative expense and totaled $20,342, $23,399, and $23,812 for fiscal 2024, 2023 and 2022, respectively.

Costs incurred to deliver retail merchandise to customers, including the cost of operating regional distribution warehouses, are also recorded in selling, general and administrative expense and totaled $20,317, $20,342, and $23,399 for fiscal 2025, 2024 and 2023, respectively.

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.

Our liability for Company contributions and participant deferrals at November 29, 2025 and November 30, 2024 was $3,968 and $3,486, 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.

During the second fiscal quarter of 2024 we concluded that Noa Home was not likely to achieve profitability in the foreseeable future and ceased operations as of the end of 2024 by selling the remaining inventory in an orderly fashion over the second half of fiscal 2024.

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.

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 29, 2025 based on the criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

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 30, 2024 related to performance obligations that were satisfied during fiscal 2025 and have therefore been recognized in revenue for the year ended November 29, 2025. Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns.

During 2024, 2023 and 2022, purchases from our three largest vendors primarily located in Vietnam were $11,689, $15,601 and $33,253 respectively. We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand, market conditions and the respective valuations at LIFO.

During 2025, 2024 and 2023, purchases from our three largest vendors primarily located in Vietnam were $15,108, $11,689 and $15,601 respectively. 41 We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand, market conditions and the respective valuations at LIFO.

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.

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.

Sales commissions at wholesale are accrued upon the shipment of goods. Sales commissions at retail are accrued at the time a sale is written (i.e. – when the customer’s order is placed) and are carried as prepaid commissions in other current assets until the goods are delivered and revenue is recognized.

Sales commissions at retail are accrued at the time a sale is written (i.e. – when the customer’s order is placed) and are carried as prepaid commissions in other current assets until the goods are delivered and revenue is recognized.

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.

Our retail real estate holdings of $23,513 and $24,127 at November 29, 2025 and November 30, 2024, 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.

At November 30, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $2,928 and $2,245, respectively.

At November 29, 2025, November 30, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $2,662, $2,928 and $2,245, respectively.

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.

Inventories accounted for under the LIFO method represented 46% and 50% of total inventory before reserves at November 29, 2025 and November 30, 2024, 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.

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.

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 $10,330, $13,256, and $19,106 in fiscal 2025, 2024, and 2023, respectively. Insurance Reserves We have self-funded insurance programs in place to cover workers’ compensation and health insurance.

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.

Therefore, during fiscal 2022 we 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.

Some of the more significant estimates include allowances for doubtful accounts, calculation of inventory reserves, the valuation of our reporting units for the purpose of testing the carrying value of goodwill, and the valuation of our right of use assets.

Some of the more significant estimates include allowances for credit losses, calculation of inventory reserves, the valuation of our reporting units for the purpose of testing the carrying value of goodwill, and the valuation of our right of use assets.

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.

For additional analysis of the fiscal year 2024 results as compared to fiscal year 2023, see “Analysis of Continuing Operations” in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s 2024 Annual Report on Form 10-K, filed with the SEC on February 10, 2025.

The Consolidated Financial Statements include the accounts of Bassett Furniture Industries, Incorporated and our majority-owned subsidiaries in which we have a controlling interest. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP").

The Consolidated Financial Statements include the accounts of Bassett Furniture Industries, Incorporated and our subsidiaries, all of which are wholly owned.. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP").

We own life insurance policies on these executives with a current net death benefit of $1,587 at November 30, 2024. We expect that any death benefit payable out of the plan would be substantially offset by the proceeds received from our life insurance policy upon the death of the executive.

We own life insurance policies on these executives with a current net death benefit of $1,542 at November 29, 2025. We expect that any death benefit payable out of the plan would be substantially offset by the proceeds received from our life insurance policy upon the death of the executive.

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.

At November 29, 2025 our definite-lived intangible assets consist of customer relationships acquired in the acquisition of Lane Venture with a carrying value of $62. 24 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.

Unless otherwise indicated, references in the Consolidated Financial Statements to fiscal 2024, 2023 and 2022 are to Bassett's fiscal year ended November 30, 2024, November 25, 2023 and November 26, 2022, respectively. References to the “ASC” included hereinafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board as the source of authoritative GAAP.

Unless otherwise indicated, references in the Consolidated Financial Statements to fiscal 2025, 2024 and 2023 are to Bassett's fiscal years ended November 29, 2025, November 30, 2024 and November 25, 2023, respectively. References to the “ASC” included hereinafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board as the source of authoritative GAAP.

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.

We were contingently liable under licensee lease obligation guarantees in the amount of $5,131 at November 30, 2024. The remaining terms under these lease guarantees range from approximately one to five years. See Note 15 to our consolidated financial statements for a schedule of future cash payments on our lease obligations and additional details regarding our leases and lease guarantees.

We were contingently liable under licensee lease obligation guarantees in the amount of $4,148 at November 29, 2025. The remaining terms under these lease guarantees range from approximately one to five years. See Note 15 to our Consolidated Financial Statements for a schedule of future cash payments on our lease obligations and additional details regarding our leases and lease guarantees.

Our wholesale export sales were approximately $323, $406, and $731 in fiscal 2024, 2023, and 2022, respectively. All of our export sales are invoiced and settled in U.S. dollars.

Our wholesale export sales were approximately $334, $323, and $406 in fiscal 2025, 2024, and 2023, respectively. All of our export sales are invoiced and settled in U.S. dollars.

Our investment in CDs at November 30, 2024 includes one CD in the amount of $2,500 which was placed with a financial institution that provides merchant services for our retail segment. This CD has been pledged as security for the merchant services agreement.

Our investment in CDs at November 30, 2024 included one CD in the amount of $2,500 which was placed with a financial institution that provided merchant services for our retail segment. This CD was pledged as security for the merchant services agreement.

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.

Additionally, if we are required to assume responsibility for payment under the lease obligations of $4,148 and $5,131 which we have guaranteed on behalf of licensees as of November 29, 2025 and November 30, 2024, respectively, we may not be able to secure sufficient sub-lease income in the current market to offset the payments required under the guarantees.

This Credit Facility provides for a line of credit of up to $25,000. At November 30, 2024, we had $6,013 outstanding under standby letters of credit against our line. The line bears interest at the One-Month Term Secured Overnight Financing Rate (“One-Month Term SOFR”) plus 1.75% and is secured by our accounts receivable and inventory.

This Credit Facility provides for a line of credit of up to $25,000. At November 29, 2025, we had $8,182 outstanding under standby letters of credit against our line. The line bears interest at the One-Month Term Secured Overnight Financing Rate (“One-Month Term SOFR”) plus 1.75% and is secured by our accounts receivable and inventory.

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Top changes in BASSETT FURNITURE INDUSTRIES INC's 2025 10-K

Item 1. Business

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Item 2. Properties

Item 4. Mine Safety Disclosures

Item 6. [Reserved]

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