Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
File Number | 001-33937 | |
Entity Registrant Name | Live Ventures Incorporated | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 85-0206668 | |
Entity Address, Address Line One | 325 E. Warm Springs Road | |
Entity Address, Address Line Two | Suite 102 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89119 | |
City Area Code | 702 | |
Local Phone Number | 997-5968 | |
Security12b Title | Common Stock, $0.001 par value per share | |
Trading Symbol | LIVE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,159,561 | |
Entity Central Index Key | 0001045742 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Assets | ||
Cash | $ 5,569 | $ 4,309 |
Trade receivables, net of allowance for doubtful accounts of $1.5 million at December 31, 2023 and $1.6 million at September 30, 2023 | 42,350 | 41,194 |
Inventories, net | 132,455 | 131,314 |
Income taxes receivable | 0 | 1,116 |
Prepaid expenses and other current assets | 4,751 | 4,919 |
Total current assets | 185,125 | 182,852 |
Property and equipment, net | 79,683 | 80,703 |
Right of use asset - operating leases | 65,799 | 54,544 |
Deposits and other assets | 1,240 | 1,282 |
Intangible assets, net | 28,163 | 26,568 |
Goodwill | 76,639 | 75,866 |
Total assets | 436,649 | 421,815 |
Liabilities: | ||
Accounts payable | 25,406 | 27,190 |
Accrued liabilities | 39,123 | 31,826 |
Income taxes payable | 431 | 0 |
Current portion of lease obligations - operating leases | 12,799 | 11,369 |
Current portion of lease obligations - finance leases | 361 | 359 |
Total current liabilities | 103,343 | 97,821 |
Lease obligation long term - operating leases | 58,291 | 48,156 |
Lease obligation long term - finance leases | 32,981 | 32,942 |
Deferred taxes | 11,714 | 14,035 |
Other non-current obligations | 5,975 | 4,104 |
Total liabilities | 337,252 | 321,680 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 10,000,000 shares authorized, 3,159,984 and 3,164,330 shares issued and outstanding at December 31, 2023 and September 30, 2023, respectively | 2 | 2 |
Paid in capital | 69,437 | 69,387 |
Treasury stock common 664,409 and 660,063 shares as of December 31, 2023 and September 30, 2023, respectively | (8,312) | (8,206) |
Retained earnings | 38,277 | 38,959 |
Total stockholders' equity | 99,397 | 100,135 |
Total liabilities and stockholders' equity | 436,649 | 421,815 |
Series E Convertible Preferred Stock | ||
Stockholders' equity: | ||
Series E convertible preferred stock, $0.001 par value, 200,000 shares authorized, 47,840 shares issued and outstanding at December 31, 2023 and September 30, 2023, respectively, with a liquidation preference of $0.30 per share outstanding | 0 | 0 |
Treasury stock Series E preferred 80,000 shares as of December 31, 2023 and September 30, 2023, respectively | (7) | (7) |
Nonrelated Party | ||
Liabilities: | ||
Current portion of long-term debt and noted payable related parties | 21,223 | 23,077 |
Long-term debt, net of current portion | 78,357 | 78,710 |
Related Party | ||
Liabilities: | ||
Current portion of long-term debt and noted payable related parties | 4,000 | 4,000 |
Long-term debt, net of current portion | 6,919 | 6,914 |
Related Party | Seller Notes | ||
Liabilities: | ||
Seller notes - related parties | $ 39,672 | $ 38,998 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Stockholders' equity: | ||
Allowance for doubtful accounts | $ 1.5 | $ 1.6 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 3,159,984 | 3,164,330 |
Common stock, shares outstanding (in shares) | 3,159,984 | 3,164,330 |
Treasury stock (in shares) | 664,409 | 660,063 |
Series E Convertible Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 47,840 | 47,840 |
Preferred stock, outstanding shares (in shares) | 47,840 | 47,840 |
Preferred stock, liquidation preference (in usd per share) | $ 0.30 | $ 0.30 |
Treasury stock, Series E preferred (in shares) | 80,000 | 80,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 117,593 | $ 68,986 |
Cost of revenues | 81,266 | 47,042 |
Gross profit | 36,327 | 21,944 |
Operating expenses: | ||
General and administrative expenses | 27,679 | 14,600 |
Sales and marketing expenses | 5,107 | 2,777 |
Total operating expenses | 32,786 | 17,377 |
Operating income | 3,541 | 4,567 |
Other expense: | ||
Interest expense, net | (4,163) | (2,047) |
Other expense | (284) | (61) |
Total other expense, net | (4,447) | (2,108) |
(Loss) income before provision for income taxes | (906) | 2,459 |
(Benefit) provision for income taxes | (224) | 615 |
Net (loss) income | $ (682) | $ 1,844 |
(Loss) income per share: | ||
Basic (in usd per share) | $ (0.22) | $ 0.60 |
Diluted (in usd per share) | $ (0.22) | $ 0.60 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 3,163,541 | 3,059,035 |
Diluted (in shares) | 3,163,541 | 3,089,741 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities: | ||
Net (loss) income | $ (682) | $ 1,844 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities, net of acquisition: | ||
Depreciation and amortization | 4,295 | 2,651 |
Amortization of seller note discount | 673 | 0 |
Amortization of debt issuance cost | 21 | 16 |
Stock based compensation expense | 50 | 0 |
Amortization of right-of-use assets | 1,143 | 540 |
Change in reserve for uncollectible accounts | (32) | 20 |
Change in reserve for obsolete inventory | 1,001 | (48) |
Changes in assets and liabilities, net of acquisitions: | ||
Trade receivables | 386 | 5,066 |
Inventories | 267 | 223 |
Income taxes payable/receivable | 1,547 | 558 |
Prepaid expenses and other current assets | 468 | 100 |
Deposits and other assets | 42 | (173) |
Accounts payable | (3,572) | (3,416) |
Accrued liabilities | 3,700 | (1,050) |
Change in deferred income taxes | (1,435) | 56 |
Other Liabilities | 0 | (133) |
Net cash provided by operating activities | 7,872 | 6,254 |
Investing Activities: | ||
Acquisition of CRO | (1,034) | 0 |
Acquisition of Johnson | (500) | 0 |
Purchase of property and equipment | (1,655) | (1,282) |
Net cash used in investing activities | (3,189) | (1,282) |
Financing Activities: | ||
Net payments under revolver loans | (756) | (51) |
Proceeds from issuance of notes payable | 0 | 5,709 |
Payments on notes payable | (1,767) | (1,362) |
Purchase of common treasury stock | (107) | (622) |
Payments on financing leases | (793) | (481) |
Net cash (used in) provided by financing activities | (3,423) | 3,193 |
Increase in cash | 1,260 | 8,165 |
Cash, beginning of period | 4,309 | 4,600 |
Cash, end of period | 5,569 | 12,765 |
Supplemental cash flow disclosures: | ||
Interest paid | 3,271 | 1,927 |
Income taxes received | 346 | 0 |
CRO acquisition | ||
Noncash financing and investing activities: | ||
Noncash items related to acquisition | 725 | 0 |
Flooring Liquidators adjustment | ||
Noncash financing and investing activities: | ||
Noncash items related to acquisition | 1,501 | 0 |
Kinetic Acquisition | ||
Noncash financing and investing activities: | ||
Goodwill adjustment | 0 | 312 |
PMW Acquisition | ||
Noncash financing and investing activities: | ||
Goodwill adjustment | $ 233 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Series E Preferred Stock | Preferred Stock Series E Preferred Stock | Common Stock | Paid-In Capital | Series E Preferred Stock Treasury Stock | Common Stock Treasury Stock | Retained Earnings | Non-controlling Interest |
Beginning balance, preferred stock (in shares) at Sep. 30, 2022 | 47,840 | ||||||||
Beginning balance at Sep. 30, 2022 | $ 97,162 | $ 0 | $ 2 | $ 65,321 | $ (7) | $ (7,215) | $ 39,509 | $ (448) | |
Beginning balance, common stock (in shares) at Sep. 30, 2022 | 3,074,833 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Purchase of common treasury stock (in shares) | (24,710) | ||||||||
Purchase of common treasury stock | (621) | (621) | |||||||
Net (loss) income | 1,844 | 1,844 | |||||||
Ending balance, preferred stock (in shares) at Dec. 31, 2022 | 47,840 | ||||||||
Ending balance at Dec. 31, 2022 | 98,385 | $ 0 | $ 2 | 65,321 | (7) | (7,836) | 41,353 | (448) | |
Ending balance, common stock (in shares) at Dec. 31, 2022 | 3,050,123 | ||||||||
Beginning balance, preferred stock (in shares) at Sep. 30, 2023 | 47,840 | 47,840 | |||||||
Beginning balance at Sep. 30, 2023 | $ 100,135 | $ 0 | $ 2 | 69,387 | (7) | (8,206) | 38,959 | 0 | |
Beginning balance, common stock (in shares) at Sep. 30, 2023 | 3,164,330 | 3,164,330 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock based compensation | $ 50 | 50 | |||||||
Purchase of common treasury stock (in shares) | (4,346) | ||||||||
Purchase of common treasury stock | (106) | (106) | |||||||
Net (loss) income | (682) | (682) | |||||||
Ending balance, preferred stock (in shares) at Dec. 31, 2023 | 47,840 | 47,840 | |||||||
Ending balance at Dec. 31, 2023 | $ 99,397 | $ 0 | $ 2 | $ 69,437 | $ (7) | $ (8,312) | $ 38,277 | $ 0 | |
Ending balance, common stock (in shares) at Dec. 31, 2023 | 3,159,984 | 3,159,984 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Live Ventures Incorporated, a Nevada corporation, and its subsidiaries (collectively, “Live Ventures” or the “Company”). Live Ventures is a diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies. The Company has five operating segments: Retail-Entertainment, Retail-Flooring, Flooring Manufacturing, Steel Manufacturing, and Corporate and Other. The Retail-Entertainment segment includes Vintage Stock, Inc. (“Vintage Stock”), which is engaged in the retail sale of new and used movies, music, collectibles, comics, books, games, game systems and components. The Retail-Flooring segment includes Flooring Liquidators, Inc. (“Flooring Liquidators”), which is engaged in the retail sale and installation of floors, carpets, and countertops. The Flooring Manufacturing segment includes Marquis Industries, Inc. (“Marquis”), which is engaged in the manufacture and sale of carpet and the sale of vinyl and wood floor coverings. The Steel Manufacturing Segment includes Precision Industries, Inc. (“Precision Marshall”), which is engaged in the manufacture and sale of alloy and steel plates, ground flat stock and drill rods, The Kinetic Co., Inc. (“Kinetic”), which is engaged in the production of industrial knives and hardened wear products for the tissue and metals industries, and Precision Metal Works, Inc. (“PMW”), which is engaged in metal forming, assembly, and finishing solutions across diverse industries, including appliance, automotive, hardware, electrical, electronic, medical products, and devices. PMW reports on a 13-week quarter, as opposed to the Company's calendar quarter reporting. However, the Company has determined that the difference in reporting periods has no material effect on its reported financial results. The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for audited financial statements. In the opinion of the Company’s management, this interim information includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results of operations for the three months ended December 31, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2024. The financial information included in these statements should be read in conjunction with the condensed consolidated financial statements and related notes thereto as of September 30, 2023 and for the fiscal year then ended included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 22, 2023 (the “2023 Form 10-K”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The unaudited condensed financial statements include the accounts of the Company and its majority owned subsidiaries over which the Company exercises control. All intercompany accounts and transactions have been eliminated in consolidation. These reclassifications have no material effect on the reported financial results. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in connection with the accompanying consolidated financial statements include the estimated reserve for doubtful current and long-term trade and other receivables, the estimated reserve for excess and obsolete inventory, fair values in connection with the analysis of goodwill, other intangibles and long-lived assets for impairment, valuation allowance against deferred tax assets, lease terminations, and estimated useful lives for intangible assets and property and equipment. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 requires, among other updates, enhanced disclosures about significant segment expenses that are regularly provided to the CODM, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires enhanced annual disclosures regarding the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Acquisition of CRO On October 13, 2023, Flooring Liquidators acquired certain assets and assumed certain liabilities of Carpet Remnant Outlet, Inc. (“CRO”), a floor covering retailer and installer serving residential and commercial customers throughout Northwest Arkansas. Total consideration for the acquisition was approximately $1.8 million and was comprised of cash at close of approximately $1.0 million, an indemnification holdback amount of $300,000, and additional consideration valued at $425,000. The fair value of the purchase price components was $1.8 million, as detailed below (in $000's): Cash $ 1,034 Additional consideration 425 Holdback 300 Purchase price $ 1,759 Under the preliminary purchase price allocation, the Company recognized goodwill of $425,000, which is calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of the identifiable assets acquired. The values assigned to the assets acquired and liabilities assumed are based on their estimates of fair value available as of October 13, 2023, as calculated by an independent third-party firm. The value of the additional consideration was calculated by management. The Company anticipates the $425,000 of goodwill arising from the acquisition to be fully deductible for tax purposes. The table below outlines the purchase price allocation of the purchase for CRO to the acquired identifiable assets, liabilities assumed and goodwill as of December 31, 2023 (in $000’s): Total purchase price $ 1,759 Accounts payable 770 Accrued liabilities 1,298 Total liabilities assumed 2,068 Total consideration 3,827 Accounts receivable 259 Inventory 1,406 Property, plant and equipment 261 Intangible assets Non-compete agreement 1,190 Subtotal intangible assets 1,190 Other assets 286 Total assets acquired 3,402 Total goodwill $ 425 Acquisition of Johnson On November 30, 2023, CRO acquired certain assets and assumed certain liabilities of Johnson Floor & Home (“Johnson”), a floor covering retailer and installer serving residential and commercial customers through four locations in the Tulsa, Oklahoma area, and one in Joplin, Missouri. Total consideration for the acquisition was $2.0 million, comprised of cash at close of $500,000, deferred consideration of $1.2 million, with additional consideration paid in the form of an earnout valued at approximately $300,000. The deferred consideration is payable in three $400,000 installments due annually on the first three anniversary dates following the closing date. Each installment will accrue interest at 6.0% per annum until paid. The fair value of the purchase price components outlined above was approximately $2.0 million, as detailed below (in $000's): Cash $ 500 Deferred consideration 1,200 Earnout 301 Purchase price $ 2,001 The values assigned to the assets acquired and liabilities assumed are based on their estimates of fair value available as of November 30, 2023, as calculated by management. The table below outlines the purchase price allocation of the purchase for Johnson to the acquired identifiable assets, liabilities assumed and goodwill as of December 31, 2023 (in $000’s): Total purchase price $ 2,001 Accounts payable 1,017 Accrued liabilities 1,141 Total liabilities assumed 2,158 Total consideration 4,159 Accounts receivable 1,252 Inventory 1,127 Property, plant and equipment 157 Intangible assets Customer relationships $ 1,301 Non-compete agreement 306 Subtotal intangible assets 1,607 Other assets 16 Total assets acquired 4,159 Total goodwill $ — Acquisition of Harris Flooring Group® Brands On September 20, 2023, Marquis acquired the Harris Flooring Group® brands from Q.E.P., a designer, manufacturer, and distributor of a broad range of best-in-class flooring and installation solutions for commercial and home improvement projects. Specifically, Marquis acquired the Harris Flooring Group brands, inventory, and book of business and intends to retain all sales representatives. The purchase price was $10.1 million, consisting of $3.0 million in cash at close, and the recording of a deferred payment of $5.1 million and holdback of $2.0 million. The acquisition was determined to be an asset acquisition for accounting purposes. The entirety of the purchase was allocated to inventory. Acquisition of PMW On July 20, 2023 (“Effective Date”), the Company acquired PMW, a Kentucky-based metal stamping and value-added manufacturing company. PMW was acquired for total consideration of approximately $28 million, comprised of a $25 million purchase price, plus closing cash, and subject to working capital adjustments, with additional consideration of up to $3 million paid in the form of an earn-out. The purchase price was funded in part by a $2.5 million seller note, borrowings under a credit facility of $14.4 million, and proceeds under a sale and leaseback transaction of approximately $8.6 million. The acquisition involved no issuance of stock of the Company. As of the Effective Date, the Company entered into a sales and leaseback transaction for two properties acquired, one located in Frankfort, Kentucky, and the other located in Louisville, Kentucky, with Legacy West Kentucky Portfolio, LLC (“Lessor”). The aggregate sales price of the real estate was approximately $14.5 million. The Louisville, Kentucky property was acquired on the Effective Date for $5.1 million in connection with an option of PMW to purchase that property. The provisions of each of the two lease agreements include a 20-year lease term with two five-year renewal options. The base rent under the Frankfort lease agreement is $34,977 per month for the first year of the term and a 2% per annum escalator thereafter. The base rent under the Louisville lease agreement is $63,493 per month for the first year of the term and a 2% per annum escalator thereafter. Both lease agreements are “net leases,” such that the lessees are also obligated to pay all taxes, insurance, assessments, and other costs, expenses, and obligations of ownership of the real property incurred by the lessor. Due to the highly specialized nature of the leased assets, the Company currently believes it is more likely than not that each of the two five-year options will be exercised. The proceeds of $14.5 million, net of closing fees, from the sale-leaseback were used to assist in funding the acquisition of PMW. The fair value of the purchase price components outlined above was $26.8 million due to fair value adjustments for the contingent consideration, cash acquired, and working capital adjustments, as detailed below (in $000's): Purchase price $ 25,000 Fair value of earnout 2,675 Cash from balance sheet 1,602 Working capital adjustment (2,500) Net purchase price $ 26,777 Under the preliminary purchase price allocation, the Company recognized goodwill of approximately $4.0 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of the identifiable assets acquired. The values assigned to the assets acquired and liabilities assumed are based on their estimates of fair value available as of July 20, 2023, as calculated by an independent third-party firm. Because the transaction was considered a stock purchase for tax purposes, none of the goodwill arising from the acquisition will be deductible for tax purposes. During the three months ended December 31, 2023, the Company recorded noncash fair value adjustments related to inventory and other liabilities assumed, as well as an adjustment to deferred tax liabilities in the aggregate amount of $652,000. The table below outlines the purchase price allocation of the purchase for PMW to the acquired identifiable assets, liabilities assumed and goodwill (in $000’s): Net purchase price $ 26,777 Accounts payable 10,788 Accrued liabilities 4,995 Total liabilities assumed 15,783 Total consideration 42,560 Cash 1,602 Accounts receivable 12,613 Inventory 6,266 Property, plant and equipment 13,616 Intangible assets 3,600 Other assets 849 Total assets acquired 38,546 Total goodwill $ 4,014 Acquisition of Cal Coast Carpets On June 2, 2023, Flooring Liquidators acquired certain fixed assets and other intangible assets of Cal Coast Carpets, Inc. (“Cal Coast”), and its shareholders. No liabilities were assumed as part of either transaction. The purchase price for the fixed assets acquired from Cal Coast was $35,000, and the intangible assets acquired from the shareholders was approximately $1.265 million, for a total combined purchase price of $1.3 million. The intangible assets acquired were comprised of customer relationships, trade name, and non-compete agreements. The acquisition was determined to be an asset acquisition for accounting purposes and, as such, no goodwill was recorded as part of the transaction. The values assigned to the assets acquired are based on their estimates of fair value available as of June 2, 2023, as calculated by management. The table below outlines the purchase price allocation of the purchase for Cal Coast to the acquired identifiable assets (in $000’s): Property, plant and equipment $ 35 Intangible assets Customer relationships 785 Trade name 425 Non-compete agreement 55 Total intangible assets 1,265 Total assets acquired $ 1,300 Acquisition of Flooring Liquidators On January 18, 2023, Live Ventures acquired 100% of the issued and outstanding equity interests (the “Equity Interests”) of Flooring Liquidators, Inc., Elite Builder Services, Inc. (“EBS”), 7 Day Stone, Inc., Floorable, LLC, K2L Leasing, LLC, and SJ & K Equipment, Inc. (collectively, the “Acquired Companies”). The Acquired Companies are leading retailers and installers of floors, carpets, and countertops to consumers, builders and contractors in California and Nevada. The acquisition was effected pursuant to a Securities Purchase Agreement (the “Purchase Agreement”) with an effective date of January 18, 2023 by and among the Company, and Stephen J. Kellogg, as the seller representative of the equity holders of the Acquired Companies and individually in his capacity as an equity holder of the Acquired Companies, and the other equity holders of the Acquired Companies (collectively, the “Seller”). The purchase price for the Equity Interests was $83.8 million before any fair value considerations, and is comprised of the following: • $41.8 million in cash to the Seller; • $34.0 million (the “Note Amount”) to certain trusts for the benefit of Kellogg and members of his family (the “Kellogg Trusts”) pursuant to the issuance by the Company of a subordinated promissory note (the “Note”) in favor of the Kellogg Trusts; • $4.0 million to the Kellogg 2022 Family Irrevocable Nevada Trust by issuance of 116,441 shares of Company Common Stock (as defined in the Purchase Agreement) (the “Share Amount”), calculated in the manner described in the Purchase Agreement; • $2.0 million holdback; and • $2.0 million of contingent consideration, comprised of $1.0 million in cash and $1.0 million in restricted stock units. The fair value of the purchase price components outlined above was $78.7 million due to fair value adjustments for the Note, and restricted stock, as detailed below (in $000's). Purchase price $ 83,800 Fair value adjustment, sellers note (3,300) Fair value adjustment, restricted stock (1,800) Net purchase price $ 78,700 Under the preliminary purchase price allocation, the Company recognized goodwill of approximately $31.4 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of the identifiable assets acquired. The values assigned to the assets acquired and liabilities assumed are based on their estimates of fair value available as of January 18, 2023, as calculated by an independent third-party firm. The Company anticipates approximately $13.4 million of the goodwill arising from the acquisition to be fully deductible for tax purposes. During the three months ended December 31, 2023, the Company recorded a fair value adjustment related to its contingent consideration of $1 million. The table below outlines the purchase price allocation, as revised, of the purchase for Flooring Liquidators to the acquired identifiable assets, liabilities assumed and goodwill (in $000’s): Purchase price $ 78,700 Accounts payable 5,189 Accrued liabilities 10,700 Debt 60 Total liabilities assumed 15,949 Total consideration 94,649 Cash 9,131 Accounts receivable 4,824 Inventory 19,402 Property, plant and equipment 4,643 Intangible assets Trade names $ 13,275 Customer relationships 7,700 Non-compete agreements 1,625 Other 49 Subtotal intangible assets 22,649 Other 2,581 Total assets acquired 63,230 Total goodwill $ 31,419 |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The following table details the Company's inventory as of December 31, 2023 and September 30, 2023 (in $000's): Inventory, net December 31, 2023 September 30, 2023 Raw materials $ 29,690 $ 32,590 Work in progress 9,682 9,028 Finished goods 51,806 50,082 Merchandise 46,098 43,438 137,276 135,138 Less: Inventory reserves (4,821) (3,824) Total inventory, net $ 132,455 $ 131,314 |
Property, Plant & Equipment
Property, Plant & Equipment | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table details the Company's property and equipment as of December 31, 2023 and September 30, 2023 (in $000's): December 31, 2023 September 30, 2023 Property and equipment, net: Land $ 2,029 $ 2,029 Building and improvements 36,417 35,684 Transportation equipment 2,088 2,062 Machinery and equipment 68,202 67,575 Furnishings and fixtures 6,287 6,028 Office, computer equipment and other 4,941 4,569 119,964 117,947 Less: Accumulated depreciation (40,281) (37,244) Total property and equipment, net $ 79,683 $ 80,703 Depreciation expense was $3.1 million and $2.4 million for the three months ended December 31, 2023 and 2022, respectively. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases retail stores, warehouse facilities, and office space. These assets and properties are generally leased under noncancelable agreements that expire at various future dates with many agreements containing renewal options for additional periods. The agreements, which have been classified as either operating or finance leases, generally provide for minimum and, in some cases, percentage rent, and require the Company to pay all insurance, taxes, and other maintenance costs. As a result, the Company recognizes assets and liabilities for all leases with lease terms greater than 12 months. The amounts recognized reflect the present value of remaining lease payments for all leases. The discount rate used is an estimate of the Company’s blended incremental borrowing rate based on information available associated with each subsidiary’s debt outstanding at lease commencement. In considering the lease asset value, the Company considers fixed and variable payment terms, prepayments and options to extend, terminate or purchase. Renewal, termination, or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The following table details the Company's right of use assets and lease liabilities as of December 31, 2023 and September 30, 2023 (in $000's): December 31, 2023 September 30, 2023 Right of use asset - operating leases $ 65,799 $ 54,544 Lease liabilities: Current - operating 12,799 11,369 Current - finance 361 359 Long term - operating 58,291 48,156 Long term - finance 32,981 32,942 As of December 31, 2023, the weighted average remaining lease term for operating leases is 10.3 years. The Company's weighted average discount rate for operating leases is 9.9%. Total cash payments for operating leases for the three months ended December 31, 2023 and 2022 were approximately $4.3 million and $2.4 million, respectively. Additionally, the Company recognized approximately $14.9 million in right of use assets and liabilities upon commencement of operating leases during the three months ended December 31, 2023. As of December 31, 2023, the weighted average remaining lease term for finance leases is 27.4 years. The Company's weighted average discount rate for finance leases is 11.7%. Total cash payments for finance leases for the three months ended December 31, 2023 and 2022 were approximately $793,000 and $481,000, respectively. No finance right-of-use assets or liabilities were recognized during the three months ended December 31, 2023. The Company records finance lease right of use assets as property and equipment. The balance, as of December 31, 2023 and September 30, 2023 is as follows (in $000’s): December 31, 2023 September 30, 2023 Property and equipment, at cost $ 22,526 $ 22,526 Accumulated depreciation $ (861) $ (702) Property and equipment, net $ 21,665 $ 21,824 Total present value of future lease payments of operating leases as of December 31, 2023 (in $000's): Twelve months ended December 31, 2024 $ 18,564 2025 16,784 2026 14,155 2027 12,252 2028 8,107 Thereafter 36,737 Total 106,599 Less implied interest (35,509) Present value of payments $ 71,090 Total present value of future lease payments of finance leases as of December 31, 2023 (in $000's): Twelve months ended December 31, 2024 $ 3,167 2025 3,197 2026 3,241 2027 3,320 2028 3,425 Thereafter 104,066 Total 120,416 Less implied interest (87,074) Present value of payments $ 33,342 During the three months ended December 31, 2023 and 2022, the Company recorded no impairment charges relating to any of its leases. |
Leases | Leases The Company leases retail stores, warehouse facilities, and office space. These assets and properties are generally leased under noncancelable agreements that expire at various future dates with many agreements containing renewal options for additional periods. The agreements, which have been classified as either operating or finance leases, generally provide for minimum and, in some cases, percentage rent, and require the Company to pay all insurance, taxes, and other maintenance costs. As a result, the Company recognizes assets and liabilities for all leases with lease terms greater than 12 months. The amounts recognized reflect the present value of remaining lease payments for all leases. The discount rate used is an estimate of the Company’s blended incremental borrowing rate based on information available associated with each subsidiary’s debt outstanding at lease commencement. In considering the lease asset value, the Company considers fixed and variable payment terms, prepayments and options to extend, terminate or purchase. Renewal, termination, or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The following table details the Company's right of use assets and lease liabilities as of December 31, 2023 and September 30, 2023 (in $000's): December 31, 2023 September 30, 2023 Right of use asset - operating leases $ 65,799 $ 54,544 Lease liabilities: Current - operating 12,799 11,369 Current - finance 361 359 Long term - operating 58,291 48,156 Long term - finance 32,981 32,942 As of December 31, 2023, the weighted average remaining lease term for operating leases is 10.3 years. The Company's weighted average discount rate for operating leases is 9.9%. Total cash payments for operating leases for the three months ended December 31, 2023 and 2022 were approximately $4.3 million and $2.4 million, respectively. Additionally, the Company recognized approximately $14.9 million in right of use assets and liabilities upon commencement of operating leases during the three months ended December 31, 2023. As of December 31, 2023, the weighted average remaining lease term for finance leases is 27.4 years. The Company's weighted average discount rate for finance leases is 11.7%. Total cash payments for finance leases for the three months ended December 31, 2023 and 2022 were approximately $793,000 and $481,000, respectively. No finance right-of-use assets or liabilities were recognized during the three months ended December 31, 2023. The Company records finance lease right of use assets as property and equipment. The balance, as of December 31, 2023 and September 30, 2023 is as follows (in $000’s): December 31, 2023 September 30, 2023 Property and equipment, at cost $ 22,526 $ 22,526 Accumulated depreciation $ (861) $ (702) Property and equipment, net $ 21,665 $ 21,824 Total present value of future lease payments of operating leases as of December 31, 2023 (in $000's): Twelve months ended December 31, 2024 $ 18,564 2025 16,784 2026 14,155 2027 12,252 2028 8,107 Thereafter 36,737 Total 106,599 Less implied interest (35,509) Present value of payments $ 71,090 Total present value of future lease payments of finance leases as of December 31, 2023 (in $000's): Twelve months ended December 31, 2024 $ 3,167 2025 3,197 2026 3,241 2027 3,320 2028 3,425 Thereafter 104,066 Total 120,416 Less implied interest (87,074) Present value of payments $ 33,342 During the three months ended December 31, 2023 and 2022, the Company recorded no impairment charges relating to any of its leases. |
Intangibles
Intangibles | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The following table details the Company's intangibles as of December 31, 2023 and September 30, 2023 (in $000's): December 31, 2023 September 30, 2023 Intangible assets, net: Intangible assets - Tradenames $ 14,940 $ 14,940 Intangible assets - Customer relationships 15,175 13,874 Intangible assets - Other 3,811 2,316 33,926 31,130 Less: Accumulated amortization (5,763) (4,562) Total intangibles, net $ 28,163 $ 26,568 Amortization expense was $1.2 million and $253,000 for the three months ended December 31, 2023 and 2022, respectively. The following table summarizes estimated future amortization expense related to intangible assets that have net balances (in $000’s): Twelve months ending December 31, 2024 $ 4,984 2025 4,984 2026 4,945 2027 4,866 2028 4,335 Thereafter 4,049 $ 28,163 |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table details the Company's goodwill as of September 30, 2023 and December 31, 2023 (in $000's): Retail - Entertainment Retail - Flooring Flooring Manufacturing Steel Manufacturing Total September 30, 2023 36,947 30,419 807 7,693 75,866 CRO acquisition — 425 — — 425 PMW adjustment — — — (652) (652) Flooring Liquidators adjustment — 1,000 — — 1,000 December 31, 2023 $ 36,947 $ 31,844 $ 807 $ 7,041 $ 76,639 During the three months ended December 31, 2023, the Company made fair value adjustments, in the amount of approximately $652,000, related to the acquisition of PMW, and $1.0 million related to the acquisition of Flooring Liquidators (see Note 3). As of December 31, 2023, the Company did not identify any triggering events that would require impairment testing. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities Abstract | |
Accrued Liabilities | Accrued Liabilities The following table details the Company's accrued liabilities as of December 31, 2023 and September 30, 2023, respectively (in $000's): December 31, 2023 September 30, 2023 Accrued liabilities: Accrued payroll and bonuses $ 5,775 $ 5,802 Accrued sales and use taxes 1,921 1,529 Accrued customer deposits 6,093 4,579 Accrued gift card and escheatment liability 1,873 1,819 Accrued interest payable 697 669 Accrued inventory 7,262 5,700 Accrued professional fees 5,454 3,146 Accrued expenses - other 10,048 8,582 Total accrued liabilities $ 39,123 $ 31,826 |
Long Term Debt
Long Term Debt | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long-Term Debt Long-term debt as of December 31, 2023 and September 30, 2023 consisted of the following (in $000's): December 31, 2023 September 30, 2023 Revolver loans $ 56,022 $ 56,779 Equipment loans 14,419 15,486 Term loans 13,669 14,290 Other notes payable 16,011 15,789 Total notes payable 100,121 102,344 Less: unamortized debt issuance costs (541) (557) Net amount 99,580 101,787 Less: current portion (21,223) (23,077) Total long-term debt $ 78,357 $ 78,710 Future maturities of long-term debt at December 31, 2023, are as follows which does not include related party debt separately stated (in $000's): Twelve months ending December 31, 2024 $ 21,223 2025 7,504 2026 28,217 2027 31,134 2028 1,306 Thereafter 10,196 Total future maturities of long-term debt $ 99,580 Bank of America Revolver Loan On January 31, 2020, Marquis entered into an amended $25.0 million revolving credit agreement (“BofA Revolver”) with Bank of America Corporation (“BofA”). The BofA Revolver is a five-year, asset-based facility that is secured by substantially all of Marquis’ assets. Availability under the BofA Revolver is subject to a monthly borrowing base calculation. Marquis’ ability to borrow under the BofA Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with BofA. The BofA Revolver has a variable interest rate and matures in January 2025. As of December 31, 2023 and September 30, 2023, the outstanding balance was approximately $6.5 million and $6.1 million, respectively. Loan with Fifth Third Bank (Precision Marshall) On January 20, 2022, Precision Marshall refinanced its Encina Business Credit loans with Fifth Third Bank, and the balance outstanding was repaid. The refinanced credit facility, totaling $29 million, is comprised of $23.0 million in revolving credit, $3.5 million in M&E lending, and $2.5 million for Capex lending. Advances under the new credit facility will bear interest at the 30-day SOFR plus 200 basis points for lending under the revolving facility, and 30-day SOFR plus 225 basis points for M&E and Capex lending. The refinancing of the Borrower’s existing credit facility reduces interest costs and improves the availability and liquidity of funds by approximately $3.0 million at the close. The facility terminates on January 20, 2027, unless terminated earlier in accordance with its terms. In connection with the acquisition of Kinetic, the existing revolving facility was amended to add Kinetic as a borrower. In addition, two additional term loans were executed to fund the purchase of Kinetic. Approximately $6.0 million was drawn from the revolving facility, and the two term loans were opened in the amounts of $4.0 million and $1.0 million, respectively. The $4.0 million term loan (“Kinetic Term Loan #1”), which matures on January 20, 2027, bears interest on the same terms as for M&E term lending as stated above. The $1.0 million term loan (“Kinetic Term Loan #2”), which matures on June 28, 2025, is a “Special Advance Term Loan”, and bears interest at SOFR plus 375 basis points. As of December 31, 2023 and September 30, 2023, the outstanding balance on the revolving loan was approximately $26.0 million and $23.0 million, respectively, and the outstanding balance on the original M&E lending, which is documented as a term note, was approximately $2.2 million and $2.3 million, respectively. The revolving loan has a variable interest rate and matures in January 2027. As of December 31, 2023 and September 30, 2023, the outstanding balance on Kinetic Term Loan #1 was approximately $3.1 million and $3.3 million, respectively. As of September 30, 2023, the Kinetic Term Loan #2 was fully repaid. On April 12, 2023, in connection with its existing credit facility with Fifth Third Bank, Precision Marshall took an advance against its Capex term lending in the amount of approximately $1.4 million. The loan matures January 2027 and bears interest on the same terms as for Capex lending as stated above. The first payment under this loan is due in February 2024. The outstanding balance on the Capex loan was $1.4 million as of each of December 31, 2023 and September 30, 2023. Eclipse Business Capital Loans In connection with the acquisition of Flooring Liquidators (see Note 3), on January 18, 2023, Flooring Liquidators entered into a credit facility with Eclipse Business Capital, LLC (“Eclipse”). The facility consists of $25.0 million in revolving credit (“Eclipse Revolver”) and $3.5 million in M&E lending (“Eclipse M&E”). The Eclipse Revolver is a three-year, asset-based facility that is secured by substantially all of Flooring Liquidators’ assets. Availability under the Eclipse Revolver is subject to a monthly borrowing base calculation. Flooring Liquidators’ ability to borrow under the Eclipse Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with Eclipse. The Eclipse Revolver bears interest at 4.5% per annum in excess of Adjusted Term SOFR prior to April 1, 2023, and 3.5% per annum in excess of Adjusted Term SOFR after April 1, 2023. The Eclipse M&E loan bears interest at 6.0% per annum in excess of Adjusted Term SOFR prior to April 1, 2023, and 5.0% per annum in excess of Adjusted Term SOFR after April 1, 2023. The credit facility matures in January 2026. As of December 31, 2023 and September 30, 2023, the outstanding balance on the Eclipse Revolver was approximately $8.8 million and $8.2 million, respectively, and the outstanding balance on the Eclipse M&E loan was approximately $2.3 million and $2.4 million, respectively. Loan with Fifth Third Bank (PMW) In connection with the acquisition of PMW (see Note 3), on July 20, 2023, PMW entered into a revolving credit facility with Fifth Third Bank. The facility consists of $15.0 million in revolving credit and approximately $5.0 million in M&E lending. The Fifth-Third Revolver is a three-year, asset-based facility that is secured by substantially all of PMW's assets. Availability under the Fifth-Third Revolver is subject to a monthly borrowing base calculation. PMW's ability to borrow under the Fifth-Third Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with Fifth-Third. Loans made under the Revolving Credit Facility are considered Reference Rate Loans, and bear interest at a rate equal to the sum of the Reference Rate plus the Applicable Margin. Reference Rate means the greater of (a) 3.0% or (b) the Lender’s publicly announced prime rate (which is not intended to be Lender’s lowest or most favorable rate in effect at any time) in effect from time to time. The Applicable Margin for revolving loans is zero, while for the M&E Term Loan or any Capital Expenditure Term Loan, it is 50 basis points (0.5%). The credit facility matures in July 2026. As of December 31, 2023 and September 30, 2023, the outstanding balance on the Fifth-Third Revolver was approximately $10.2 million and $11.0 million, respectively, and the balance on the Fifth-Third M&E loan was approximately $4.7 million and $4.8 million, respectively. Bank Midwest Revolver Loan On October 17, 2023, Vintage entered into a $15.0 million credit agreement with Bank Midwest (“Bank Midwest Revolver”), replacing a revolving credit facility between Vintage and Texas Capital Bank (“TCB Revolver”), which was entered into in November 2016 and set to mature in November 2023. In connection with the entry into the Credit Agreement, the revolving credit facility between Vintage Stock and Texas Capital Bank was terminated and the balance outstanding was repaid. The Bank Midwest Revolver interest accrues daily on the outstanding principal at a rate of the greater of (a) the one-month forward-looking term rate based on SOFR, plus 2.36% per annum, or (b) 6.5% per annum, and matures on October 17, 2024. As of December 31, 2023, the outstanding balance on the Bank Midwest Revolver was approximately $4.5 million. As of September 30, 2023, the outstanding balance on the TCB Revolver was approximately $5.3 million. Equipment Loans On June 20, 2016 and August 5, 2016, Marquis entered into a transaction that provided for a master agreement and separate loan schedules (the “Equipment Loans”) with Banc of America Leasing & Capital, LLC that provided for the following as of December 31, 2023: Note #3 is for approximately $3.7 million, secured by equipment. The Equipment Loan #3 matured in December 2023, payable in 84 monthly payments of $52,000 beginning January 2017, bearing interest rate at 4.8% per annum. As of December 31, 2023 and September 30, 2023, the balance was $0 and $154,000, respectively. Note #4 is for approximately $1.1 million, secured by equipment. The Equipment Loan #4 matured in December 2023, payable in 81 monthly payments of $16,000 beginning April 2017, bearing interest at 4.9% per annum. As of December 31, 2023 and September 30, 2023, the balance was $0 and $47,000, respectively. Note #5 is for approximately $4.0 million, secured by equipment. The Equipment Loan #5 is due December 2024, payable in 84 monthly payments of $55,000 beginning January 2018, bearing interest at 4.7% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $643,000 and $799,000, respectively. Note #6 is for $913,000, secured by equipment. The Equipment Loan #6 is due July 2024, payable in 60 monthly payments of $14,000 beginning August 2019, with a final payment of $197,000, bearing interest at 4.7% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $277,000 and $317,000, respectively. Note #7 is for $5.0 million, secured by equipment. The Equipment Loan #7 is due February 2027, payable in 84 monthly payments of $59,000 beginning March 2020, with the final payment of $809,000, bearing interest at 3.2% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $2.8 million and $2.9 million, respectively. Note #8 is for approximately $3.4 million, secured by equipment. The Equipment Loan #8 is due September 2027, payable in 84 monthly payments of $46,000 beginning October 2020, bearing interest at 4.0%. As of December 31, 2023 and September 30, 2023, the balance was approximately $1.9 million and $2.0 million, respectively. In December 2021, Marquis funded the acquisition of $5.5 million of new equipment under Note #9 of its master agreement. The Equipment Loan #9, which is secured by the equipment, matures December 2026, and is payable in 60 monthly payments of $92,000 beginning January 2022, with the final payment in the amount of approximately $642,000, bearing interest at 3.75% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $3.6 million and $3.9 million, respectively. In December 2022, Marquis funded the acquisition of $5.7 million of new equipment under Note #10 of its master agreement. The Equipment Loan #10, which is secured by the equipment, matures December 2029, and is payable in 84 monthly payments of $79,000, beginning January 2023, with the final payment in the amount of approximately $650,000, bearing interest at 6.50%. As of December 31, 2023 and September 30, 2023, the balance was approximately $5.1 million and $5.3 million. Loan Covenant Compliance As of December 31, 2023, the Company was in compliance with all covenants under its existing revolving and other loan agreements. Seller notes as of December 31, 2023 and September 30, 2023 consisted of the following (in $000’s): December 31, September 30, Seller of Flooring Liquidators, 8.24% interest rate, matures January 2028 $ 34,000 $ 34,000 Seller of PMW, 8.0% interest rate, matures July 2028 2,500 2,500 Seller of Kinetic, 7.0% interest rate, matures September 2027 3,000 3,000 Total Related party seller notes payable 39,500 39,500 Unamortized debt premium (discount) 172 (502) Net amount 39,672 38,998 Less current portion — — Long-term portion of Related party seller notes payable $ 39,672 $ 38,998 Future maturities of seller notes at December 31, 2023 are as follows (in $000’s): Twelve months ending December 31, 2026 500 2027 3,500 2028 35,672 Total $ 39,672 |
Notes Payable, Related Parties
Notes Payable, Related Parties | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable, Related Parties | Notes Payable-Related Parties Long-term debt payable to related parties (see Note 16) as of December 31, 2023 and September 30, 2023 consisted of the following (in $000's): December 31, 2023 September 30, 2023 Isaac Capital Group, LLC, 12.5% interest rate, matures May 2025 $ 2,000 $ 2,000 Spriggs Investments, LLC, 10% interest rate, matures July 2024 2,000 2,000 Spriggs Investments, LLC for Flooring Liquidators, 12% interest rate, matures July 2024 1,000 1,000 Isaac Capital Group, LLC revolver, 12% interest rate, matures April 2024 1,000 1,000 Isaac Capital Group, LLC for Flooring Liquidators, 12% interest rate, matures January 2028 5,000 5,000 Total notes payable - related parties 11,000 11,000 Less: unamortized debt issuance costs (81) (86) Net amount 10,919 10,914 Less: current portion (4,000) (4,000) Total long-term portion, related parties $ 6,919 $ 6,914 Twelve months ending December 31, 2024 $ 4,000 2025 2,000 2028 5,000 Total future maturities of long-term debt, related parties $ 11,000 |
Related Party Seller Notes
Related Party Seller Notes | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Related Party Seller Notes | Long-Term Debt Long-term debt as of December 31, 2023 and September 30, 2023 consisted of the following (in $000's): December 31, 2023 September 30, 2023 Revolver loans $ 56,022 $ 56,779 Equipment loans 14,419 15,486 Term loans 13,669 14,290 Other notes payable 16,011 15,789 Total notes payable 100,121 102,344 Less: unamortized debt issuance costs (541) (557) Net amount 99,580 101,787 Less: current portion (21,223) (23,077) Total long-term debt $ 78,357 $ 78,710 Future maturities of long-term debt at December 31, 2023, are as follows which does not include related party debt separately stated (in $000's): Twelve months ending December 31, 2024 $ 21,223 2025 7,504 2026 28,217 2027 31,134 2028 1,306 Thereafter 10,196 Total future maturities of long-term debt $ 99,580 Bank of America Revolver Loan On January 31, 2020, Marquis entered into an amended $25.0 million revolving credit agreement (“BofA Revolver”) with Bank of America Corporation (“BofA”). The BofA Revolver is a five-year, asset-based facility that is secured by substantially all of Marquis’ assets. Availability under the BofA Revolver is subject to a monthly borrowing base calculation. Marquis’ ability to borrow under the BofA Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with BofA. The BofA Revolver has a variable interest rate and matures in January 2025. As of December 31, 2023 and September 30, 2023, the outstanding balance was approximately $6.5 million and $6.1 million, respectively. Loan with Fifth Third Bank (Precision Marshall) On January 20, 2022, Precision Marshall refinanced its Encina Business Credit loans with Fifth Third Bank, and the balance outstanding was repaid. The refinanced credit facility, totaling $29 million, is comprised of $23.0 million in revolving credit, $3.5 million in M&E lending, and $2.5 million for Capex lending. Advances under the new credit facility will bear interest at the 30-day SOFR plus 200 basis points for lending under the revolving facility, and 30-day SOFR plus 225 basis points for M&E and Capex lending. The refinancing of the Borrower’s existing credit facility reduces interest costs and improves the availability and liquidity of funds by approximately $3.0 million at the close. The facility terminates on January 20, 2027, unless terminated earlier in accordance with its terms. In connection with the acquisition of Kinetic, the existing revolving facility was amended to add Kinetic as a borrower. In addition, two additional term loans were executed to fund the purchase of Kinetic. Approximately $6.0 million was drawn from the revolving facility, and the two term loans were opened in the amounts of $4.0 million and $1.0 million, respectively. The $4.0 million term loan (“Kinetic Term Loan #1”), which matures on January 20, 2027, bears interest on the same terms as for M&E term lending as stated above. The $1.0 million term loan (“Kinetic Term Loan #2”), which matures on June 28, 2025, is a “Special Advance Term Loan”, and bears interest at SOFR plus 375 basis points. As of December 31, 2023 and September 30, 2023, the outstanding balance on the revolving loan was approximately $26.0 million and $23.0 million, respectively, and the outstanding balance on the original M&E lending, which is documented as a term note, was approximately $2.2 million and $2.3 million, respectively. The revolving loan has a variable interest rate and matures in January 2027. As of December 31, 2023 and September 30, 2023, the outstanding balance on Kinetic Term Loan #1 was approximately $3.1 million and $3.3 million, respectively. As of September 30, 2023, the Kinetic Term Loan #2 was fully repaid. On April 12, 2023, in connection with its existing credit facility with Fifth Third Bank, Precision Marshall took an advance against its Capex term lending in the amount of approximately $1.4 million. The loan matures January 2027 and bears interest on the same terms as for Capex lending as stated above. The first payment under this loan is due in February 2024. The outstanding balance on the Capex loan was $1.4 million as of each of December 31, 2023 and September 30, 2023. Eclipse Business Capital Loans In connection with the acquisition of Flooring Liquidators (see Note 3), on January 18, 2023, Flooring Liquidators entered into a credit facility with Eclipse Business Capital, LLC (“Eclipse”). The facility consists of $25.0 million in revolving credit (“Eclipse Revolver”) and $3.5 million in M&E lending (“Eclipse M&E”). The Eclipse Revolver is a three-year, asset-based facility that is secured by substantially all of Flooring Liquidators’ assets. Availability under the Eclipse Revolver is subject to a monthly borrowing base calculation. Flooring Liquidators’ ability to borrow under the Eclipse Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with Eclipse. The Eclipse Revolver bears interest at 4.5% per annum in excess of Adjusted Term SOFR prior to April 1, 2023, and 3.5% per annum in excess of Adjusted Term SOFR after April 1, 2023. The Eclipse M&E loan bears interest at 6.0% per annum in excess of Adjusted Term SOFR prior to April 1, 2023, and 5.0% per annum in excess of Adjusted Term SOFR after April 1, 2023. The credit facility matures in January 2026. As of December 31, 2023 and September 30, 2023, the outstanding balance on the Eclipse Revolver was approximately $8.8 million and $8.2 million, respectively, and the outstanding balance on the Eclipse M&E loan was approximately $2.3 million and $2.4 million, respectively. Loan with Fifth Third Bank (PMW) In connection with the acquisition of PMW (see Note 3), on July 20, 2023, PMW entered into a revolving credit facility with Fifth Third Bank. The facility consists of $15.0 million in revolving credit and approximately $5.0 million in M&E lending. The Fifth-Third Revolver is a three-year, asset-based facility that is secured by substantially all of PMW's assets. Availability under the Fifth-Third Revolver is subject to a monthly borrowing base calculation. PMW's ability to borrow under the Fifth-Third Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with Fifth-Third. Loans made under the Revolving Credit Facility are considered Reference Rate Loans, and bear interest at a rate equal to the sum of the Reference Rate plus the Applicable Margin. Reference Rate means the greater of (a) 3.0% or (b) the Lender’s publicly announced prime rate (which is not intended to be Lender’s lowest or most favorable rate in effect at any time) in effect from time to time. The Applicable Margin for revolving loans is zero, while for the M&E Term Loan or any Capital Expenditure Term Loan, it is 50 basis points (0.5%). The credit facility matures in July 2026. As of December 31, 2023 and September 30, 2023, the outstanding balance on the Fifth-Third Revolver was approximately $10.2 million and $11.0 million, respectively, and the balance on the Fifth-Third M&E loan was approximately $4.7 million and $4.8 million, respectively. Bank Midwest Revolver Loan On October 17, 2023, Vintage entered into a $15.0 million credit agreement with Bank Midwest (“Bank Midwest Revolver”), replacing a revolving credit facility between Vintage and Texas Capital Bank (“TCB Revolver”), which was entered into in November 2016 and set to mature in November 2023. In connection with the entry into the Credit Agreement, the revolving credit facility between Vintage Stock and Texas Capital Bank was terminated and the balance outstanding was repaid. The Bank Midwest Revolver interest accrues daily on the outstanding principal at a rate of the greater of (a) the one-month forward-looking term rate based on SOFR, plus 2.36% per annum, or (b) 6.5% per annum, and matures on October 17, 2024. As of December 31, 2023, the outstanding balance on the Bank Midwest Revolver was approximately $4.5 million. As of September 30, 2023, the outstanding balance on the TCB Revolver was approximately $5.3 million. Equipment Loans On June 20, 2016 and August 5, 2016, Marquis entered into a transaction that provided for a master agreement and separate loan schedules (the “Equipment Loans”) with Banc of America Leasing & Capital, LLC that provided for the following as of December 31, 2023: Note #3 is for approximately $3.7 million, secured by equipment. The Equipment Loan #3 matured in December 2023, payable in 84 monthly payments of $52,000 beginning January 2017, bearing interest rate at 4.8% per annum. As of December 31, 2023 and September 30, 2023, the balance was $0 and $154,000, respectively. Note #4 is for approximately $1.1 million, secured by equipment. The Equipment Loan #4 matured in December 2023, payable in 81 monthly payments of $16,000 beginning April 2017, bearing interest at 4.9% per annum. As of December 31, 2023 and September 30, 2023, the balance was $0 and $47,000, respectively. Note #5 is for approximately $4.0 million, secured by equipment. The Equipment Loan #5 is due December 2024, payable in 84 monthly payments of $55,000 beginning January 2018, bearing interest at 4.7% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $643,000 and $799,000, respectively. Note #6 is for $913,000, secured by equipment. The Equipment Loan #6 is due July 2024, payable in 60 monthly payments of $14,000 beginning August 2019, with a final payment of $197,000, bearing interest at 4.7% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $277,000 and $317,000, respectively. Note #7 is for $5.0 million, secured by equipment. The Equipment Loan #7 is due February 2027, payable in 84 monthly payments of $59,000 beginning March 2020, with the final payment of $809,000, bearing interest at 3.2% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $2.8 million and $2.9 million, respectively. Note #8 is for approximately $3.4 million, secured by equipment. The Equipment Loan #8 is due September 2027, payable in 84 monthly payments of $46,000 beginning October 2020, bearing interest at 4.0%. As of December 31, 2023 and September 30, 2023, the balance was approximately $1.9 million and $2.0 million, respectively. In December 2021, Marquis funded the acquisition of $5.5 million of new equipment under Note #9 of its master agreement. The Equipment Loan #9, which is secured by the equipment, matures December 2026, and is payable in 60 monthly payments of $92,000 beginning January 2022, with the final payment in the amount of approximately $642,000, bearing interest at 3.75% per annum. As of December 31, 2023 and September 30, 2023, the balance was approximately $3.6 million and $3.9 million, respectively. In December 2022, Marquis funded the acquisition of $5.7 million of new equipment under Note #10 of its master agreement. The Equipment Loan #10, which is secured by the equipment, matures December 2029, and is payable in 84 monthly payments of $79,000, beginning January 2023, with the final payment in the amount of approximately $650,000, bearing interest at 6.50%. As of December 31, 2023 and September 30, 2023, the balance was approximately $5.1 million and $5.3 million. Loan Covenant Compliance As of December 31, 2023, the Company was in compliance with all covenants under its existing revolving and other loan agreements. Seller notes as of December 31, 2023 and September 30, 2023 consisted of the following (in $000’s): December 31, September 30, Seller of Flooring Liquidators, 8.24% interest rate, matures January 2028 $ 34,000 $ 34,000 Seller of PMW, 8.0% interest rate, matures July 2028 2,500 2,500 Seller of Kinetic, 7.0% interest rate, matures September 2027 3,000 3,000 Total Related party seller notes payable 39,500 39,500 Unamortized debt premium (discount) 172 (502) Net amount 39,672 38,998 Less current portion — — Long-term portion of Related party seller notes payable $ 39,672 $ 38,998 Future maturities of seller notes at December 31, 2023 are as follows (in $000’s): Twelve months ending December 31, 2026 500 2027 3,500 2028 35,672 Total $ 39,672 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Series E Convertible Preferred Stock As of December 31, 2023 and September 30, 2023, there were 47,840 shares of Series E Convertible Preferred Stock issued and outstanding, respectively. Treasury Stock As of December 31, 2023 and September 30, 2023, the Company had 664,409 and 660,063 shares of Treasury Stock, respectively. During the three months ended December 31, 2023 and 2022, the Company repurchased 4,346 and 24,710 shares of its common stock for approximately $106,532 and $622,000, respectively. During the three months ended December 31, 2023 and 2022, the average price paid per share was $24.51 and $25.16, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Our 2014 Omnibus Equity Incentive Plan (the “2014 Plan”) authorizes the issuance of distribution equivalent rights, incentive stock options, non-qualified stock options, performance stock, performance units, restricted ordinary shares, restricted stock units, stock appreciation rights, tandem stock appreciation rights and unrestricted ordinary shares to our directors, officer, employees, consultants and advisors. The Company has reserved up to 300,000 shares of common stock for issuance under the 2014 Plan. From time to time, the Company grants stock options to directors, officers, and employees. These awards are valued at the grant date by determining the fair value of the instruments. The value of each award is amortized on a straight-line basis over the requisite service period. The following table summarizes stock option activity for the fiscal year ended September 30, 2023 and the three months ended December 31, 2023: Number of Weighted Weighted Intrinsic Outstanding at September 30, 2022 87,500 $ 18.81 0.78 $ 771 Outstanding at December 31, 2022 87,500 $ 18.81 0.52 $ 1,201 Exercisable at December 31, 2022 87,500 $ 18.81 0.52 $ 1,201 Outstanding at September 30, 2023 53,750 $ 21.51 1.54 $ 540 Outstanding at December 31, 2023 53,750 $ 21.51 1.29 $ 450 Exercisable at December 31, 2023 53,750 $ 21.51 1.29 $ 450 The Company recognized compensation expense of approximately $50,000 and $0 during the three months ended December 31, 2023 and 2022, respectively, related to stock option awards and restricted stock awards granted to certain employees and officers based on the grant date fair value of the awards, and the revaluation for existing options whereby the expiration date was extended. As of December 31, 2023, the Company had no unrecognized compensation expense associated with stock option awards. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Net income per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average common shares outstanding do not include shares of restricted stock that have not yet vested, although such shares are included as outstanding shares in the Company’s Condensed Consolidated Balance Sheet. Diluted net income per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential common shares consist of the additional common shares issuable in respect of restricted share awards, stock options and convertible preferred stock. Preferred stock dividends are subtracted from net earnings to determine the amount available to common stockholders. The following table presents the computation of basic and diluted net earnings per share (in $000's): Three Months Ended December 31, 2023 2022 Basic Net (loss) income $ (682) $ 1,844 Less: preferred stock dividends — — Net (loss) income applicable to common stock $ (682) $ 1,844 Weighted average common shares outstanding 3,163,541 3,059,035 Basic (loss) earnings per share $ (0.22) $ 0.60 Diluted Net (loss) income applicable to common stock $ (682) $ 1,844 Add: preferred stock dividends — — Net (loss) income applicable for diluted earnings per share $ (682) $ 1,844 Weighted average common shares outstanding 3,163,541 3,059,035 Add: Options — 30,467 Add: Series E Preferred Stock — 239 Assumed weighted average common shares outstanding 3,163,541 3,089,741 Diluted (loss) earnings per share $ (0.22) $ 0.60 Basic earnings per common share ("EPS") is computed by dividing net income by the weighted average number of shares of Common Stock outstanding for the period. Diluted EPS is computed by dividing net income by the sum of the weighted average number of shares of Common Stock outstanding and the effect of dilutive securities. No diluted EPS computation was made for the three months ended December 31, 2023, as the Company recorded a net loss. Had the Company calculated diluted EPS for the three months ended December 31, 2023, the total assumed weighted average common shares outstanding would have been 3,182,083. For the three months ended December 31, 2022, there were 17,000 options to purchase shares of common stock that were anti-dilutive, and not included in the diluted EPS computation. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions with Isaac Capital Group, LLC As of December 31, 2023, Isaac Capital Group, LLC (“ICG”) beneficially owns 48.9% of the Company’s issued and outstanding capital stock. Jon Isaac, the Company's President and Chief Executive Officer, is the President and sole member of ICG, and, accordingly, has sole voting and dispositive power with respect to these shares. Mr. Isaac also personally owns 219,177 shares of common stock and holds options to purchase up to 25,000 shares of common stock at an exercise price of $10.00 per share, all of which are currently exercisable. Mr. Isaac's options to purchase 25,000 shares of common stock were originally scheduled to expire on January 15, 2023, but, as amended on January 13, 2023, the expiration date was extended to January 15, 2025. ICG Term Loan During 2015, Marquis entered into a mezzanine loan in the amount of up to $7.0 million (the “ICF Loan”) with Isaac Capital Fund I, LLC (“ICF”), a private lender whose managing member is Jon Isaac. On July 10, 2020, (i) ICF released and discharged Marquis from all obligations under the loan, (ii) ICF assigned all of its rights and obligations under the instruments, documents, and agreements with respect to the ICF Loan to ICG, of which Jon Isaac, the Company’s President and Chief Executive Officer, is the sole member, and (iii) Live Ventures borrowed $2.0 million (the “ICG Loan”) from ICG. The ICG Loan bears interest at 12.5% and matures in May 2025. As of December 31, 2023 and September 30, 2023, the outstanding balance on this note was $2.0 million. ICG Revolving Promissory Note On April 9, 2020, the Company, as borrower, entered into an unsecured revolving line of credit promissory note whereby ICG agreed to provide the Company with a $1.0 million revolving credit facility (the “ICG Revolver”). On June 23, 2022, as approved by unanimous consent of the Board of Directors of the Company, the amount of available revolving credit under the facility was increased to $6.0 million. No other terms of the Note were changed. On April 1, 2023, the Company entered into the First Amendment of the ICG Revolver that extended the maturity date to April 8, 2024 and increased the interest rate from 10% to 12% per annum. As of each of December 31, 2023 and September 30, 2023, the the ICG Revolver was $1.0 million. ICG Flooring Liquidators Note On January 18, 2023, in connection with the acquisition of Flooring Liquidators, Flooring Affiliated Holdings, LLC, a wholly-owned subsidiary of the Company, as borrower, entered into a promissory note for the benefit of ICG in the amount of $5.0 million (“ICG Flooring Liquidators Loan”). The ICG Flooring Liquidators Loan matures on January 18, 2028, and bears interest at 12%. Interest is payable in arrears on the last day of each calendar month. The note is fully guaranteed by the Company. As of December 31, 2023, the outstanding balance on this loan was $5.0 million. Transactions with JanOne Inc. Tony Isaac, a member of the Company's board of directors, and father of the Company's CEO, Jon Isaac, is the Chief Executive Officer and a director of JanOne Inc.(“JanOne”). Richard Butler, a member of the Company's board of directors, is a director of JanOne. Lease Agreement Customer Connexx LLC, formerly a subsidiary of JanOne, rents approximately 9,900 square feet of office space from the Company at its Las Vegas office, which totals 16,500 square feet. JanOne paid the Company $36,000 and $52,000 in rent and other reimbursed expenses for three months ended December 31, 2023 and 2022, respectively. Purchase Agreement with ARCA Recycling On April 5, 2022, the Company entered into a Purchasing Agreement with ARCA Recycling ("ARCA"), which was a wholly owned subsidiary of JanOne, Inc. until March 2023. Pursuant to the agreement, the Company agreed to purchase inventory from time to time for ARCA as set forth in submitted purchase orders. The inventory is owned by the Company until ARCA installs it in customer's homes, and payment by ARCA to the Company is due upon ARCA's receipt of payment from the customer. All purchases made by the Company shall be paid back by ARCA in full plus an additional five percent surcharge or broker-type fee. As of December 31, 2023, the Company has a full allowance of approximately $690,000 recorded in the reserve for doubtful accounts for the amount due. Transactions with Vintage Stock CEO Rodney Spriggs, the President and Chief Executive Officer of Vintage Stock, Inc., a wholly owned subsidiary of the Company, is the sole member of Spriggs Investments, LLC (“Spriggs Investments”). Spriggs Promissory Note I On July 10, 2020, the Company executed a promissory note (the “Spriggs Promissory Note I”) in favor of Spriggs Investments that memorializes a loan by Spriggs Investments to the Company in the initial principal amount of $2.0 million (the “Spriggs Loan I”). The Spriggs Loan I originally matured on July 10, 2022; however, the maturity date was extended to July 10, 2023, pursuant to unanimous written consent of the Board of Directors. The Spriggs Promissory Note I bears simple interest at a rate of 10.0% per annum. On January 19, 2023, the Company entered into a modification agreement of the Spriggs Loan I. Consequently, the Spriggs Promissory Note I will bear interest at a rate of 12% per annum, and the maturity date was extended to July 31, 2024. As of December 31, 2023 and September 30, 2023, the amount owed was $2.0 million. Spriggs Promissory Note II On January 19, 2023, in connection with the acquisition of Flooring Liquidators, the Company executed a promissory note in favor of Spriggs Investments in the initial principal amount of $1.0 million (the “Spriggs Loan II”). The Spriggs Loan II matures on July 31, 2024, and bears interest at a rate of 12% per annum. As of December 31, 2023 and September 30, 2023, the amount owed was $1.0 million. Transactions with Spyglass Estate Planning, LLC Jon Isaac, the Company's President and Chief Executive Officer, is the sole member of Spyglass Estate Planning, LLC (“Spyglass”). Building Leases On July 1, 2022, in connection with its acquisition of Better Backers, Marquis entered into two building leases with Spyglass. The building leases are for 20 years with two options to renew for an additional five years each. The provisions of the lease agreements include an initial 24-month month-to-month rental period, during which the lessee may cancel with 90-day notice, followed by a 20-year lease term with two five-year renewal options. The Company has evaluated each lease and determined the rental amounts to be at market rates. Transactions with Flooring Liquidators CEO Stephen Kellogg is the Chief Executive Officer of Flooring Liquidators, Inc., a wholly owned subsidiary of the Company. Flooring Liquidators leases five properties from K2L Property Management, and one from Railroad Investments, each of which Mr. Kellogg is a member. Additionally, Flooring Liquidators leases two properties from Stephen Kellogg and Kimberly Hendrick as a couple, and properties from each of The Stephen Kellogg and Kimberly Hendrick Trust, The Stephen Kellogg Trust, and Mr. Kellogg personally. Ms. Hendrick is Mr. Kellogg's spouse. Sellers Notes Note Payable to the Sellers of Kinetic In connection with the purchase of Kinetic, on June 28, 2022, Kinetic entered into an employment agreement with the previous owner of Kinetic to serve as its Head of Equipment Operations. The employment agreement is for an initial term of five years and shall be automatically extended in 90-day increments unless either party provides notice as required under the agreement. Additionally, Precision Marshall entered into a seller financed loan in the amount of $3.0 million with the previous owner of Kinetic. The Sellers Subordinated Acquisition Note bears interest at 7.0% per annum, with interest payable quarterly in arrears. The Sellers Subordinated Acquisition Note has a maturity date of September 27, 2027. As of December 31, 2023 and September 30, 2023, the remaining principal balance was $3.0 million. Note Payable to the Seller of Flooring Liquidators In connection with the purchase of Flooring Liquidators (see Note 3), on January 18, 2023, the Company entered into an employment agreement with the previous owner of Flooring Liquidators to serve as its Chief Executive Officer. The employment agreement is for an initial term of five years and shall be automatically extended in 90-day increments unless either party provides notice as required under the agreement. Additionally, the Company entered into a seller financed mezzanine loan, which is fully guaranteed by the Company, in the amount of $34.0 million with the previous owners of Flooring Liquidators. The Seller Subordinated Acquisition Note bears interest at 8.24% per annum, with interest payable monthly in arrears beginning on January 18, 2024. The Sellers Note has a maturity date of January 18, 2028. The fair value assigned to the Sellers Note, as calculated by an independent third-party firm, was $31.7 million, or a discount of $2.3 million. The $2.3 million discount is being accreted to interest expense, using the effective interest rate method, as required by GAAP, over the term of the Sellers Note. As of December 31, 2023 and September 30, 2023, the carrying value of the Sellers Note was approximately $34.2 million and $33.5 million, respectively. Note Payable to the Seller of PMW In connection with the purchase of PMW (see Note 3), on July 20, 2023, the Company entered into an consulting agreement with the previous owner of PMW to serve as part-time President and Chief Executive Officer . The consulting agreement commenced on the Effective Date and shall terminate upon the later of (i) Sellers’ receipt of earn-out payments in an aggregate amount equal to $3.0 million and (ii) the full satisfaction and payment of all amounts due and to that are to become due under the seller note, unless earlier terminated in accordance with the terms set forth in the consulting agreement . Additionally, PMW entered into two seller financed loans, in the aggregate amount of $2.5 million, which are fully guaranteed by the Company. The seller financed loans bear interest at 8.0% per annum, with interest payable quarterly in arrears. The seller financed loans have a maturity date of July 18, 2028. As of December 31, 2023 and September 30, 2023, the carrying value of the seller financed loans was approximately $2.5 million. Procedures for Approval of Related Party Transactions In accordance with its charter, the Audit Committee reviews and determines whether to approve all related party transactions (as such term is defined for purposes of Item 404 of Regulation S-K). The Audit Committee participated in the review, approval, or ratification of the transactions described above. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation SEC Investigation On February 21, 2018, the Company received a subpoena from the Securities and Exchange Commission (“SEC”) and a letter from the SEC stating that it was conducting an investigation. The subpoena requested documents and information concerning, among other things, the restatement of the Company’s financial statements for the quarterly periods ended December 31, 2016, March 31, 2017, and June 30, 2017, the acquisition of Marquis Industries, Inc., Vintage Stock, Inc., and ApplianceSmart, Inc., and the change in auditors. On August 12, 2020, three of the Company’s corporate executive officers (together, the “Executives”) each received a “Wells Notice” from the Staff of the SEC relating to the Company’s SEC investigation. On October 7, 2020, the Company received a “Wells Notice” from the Staff of the SEC relating to the SEC investigation. The Wells Notices related to, among other things, the Company’s reporting of its financial performance for its fiscal year ended September 30, 2016, certain disclosures related to executive compensation, and its previous acquisition of ApplianceSmart, Inc. A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. The Wells Notices informed the Company and the Executives that the SEC Staff had made a preliminary determination to recommend that the SEC file an enforcement action against the Company and each of the Executives to allege certain violations of the federal securities laws. On October 1, 2018, the Company received a letter from the SEC requesting information regarding a potential violation of Section 13(a) of the Securities Exchange Act of 1934, based upon the timing of the Company’s Form 8-K filed on February 14, 2018. The Company cooperated fully with the SEC inquiry and provided a response to the SEC on October 26, 2018. On August 2, 2021, the SEC filed a civil complaint in the United States District Court for the District of Nevada naming the Company and two of its executive officers - Jon Isaac, the Company’s current President and Chief Executive Officer, and Virland Johnson, the Company’s former Chief Financial Officer, as defendants (collectively, the “Company Defendants”) as well as certain other related third parties (the “SEC Complaint”). The SEC Complaint alleges various financial, disclosure, and reporting violations related to income and earnings per share data, purported undisclosed stock promotion and trading, purported inaccurate disclosure regarding beneficial ownership of common stock, and undisclosed executive compensation from 2016 through 2018. The violations are brought under Section 10(b) of the Exchange Act and Rule 10b-5; Sections 13(a), 13(b)(2)(B) and 13(b)(5) of the Exchange Act and Rules 12b-20, 13a-1, 13a-14, 13a-13, 13b2-1, 13b2-2; Section 14(a) of the Exchange Act and Rule 14a-3; and Section 17(a) of the Securities Act of 1933. The SEC seeks permanent injunctions against the Company Defendants, permanent officer-and-director bars, disgorgement of profits, and civil penalties. The foregoing is only a general summary of the SEC Complaint, which may be accessed on the SEC’s website at https://www.sec.gov/litigation/litreleases/2021/lr25155.htm. On October 1, 2021, the Company Defendants and third-party defendants moved to dismiss the SEC complaint. On September 7, 2022, the court denied the Company Defendants’ motion to dismiss, but granted one of the third-party defendant’s motions to dismiss, granting the SEC leave to file an amended complaint. On September 21, 2022, the SEC filed an amended complaint to which the Company Defendants filed an answer on October 11, 2022, denying liability. The court subsequently entered a discovery scheduling order and the parties exchanged initial disclosures. The parties participated in a mediation in June 2023. The mediation was not successful and the case is currently in the midst of discovery. Discovery deadlines have been extended because counsel for JanOne Inc. and Virland Johnson moved to withdraw on August 18, 2023, which motion the court granted on October 2, 2023. Since that time, JanOne Inc. and Virland Johnson have obtained new counsel who have appeared in the case. In light of the new counsel in this case, the Court approved a stipulated order to extend the discovery period approximately 45 days. Fact discovery is now set to be completed by May 20, 2024. The Company Defendants strongly dispute and deny the allegations and intend to continue to defend themselves vigorously against the claims. Sieggreen Class Action On August 13, 2021, Daniel E. Sieggreen, individually and on behalf of all others similarly situated claimants ("Plaintiff"), filed a class action complaint for violation of federal securities laws in the United States District Court for the District of Nevada, naming the Company, Jon Isaac, the Company's current President and Chief Executive Officer, and Virland Johnson, the Company's former Chief Financial Officer, as defendants (collectively, the "Company Defendants"). The allegations asserted are similar to those in the SEC Complaint. Among other sought relief, the complaint seeks damages in connection with the purchases and sales of the Company’s securities between December 28, 2016 and August 3, 2021. As of December 17, 2021, the judge granted a stipulation to stay proceedings pending the resolutions of the motions to dismiss in the SEC Complaint. On February 1, 2023, the final motion to dismiss relating to the SEC Complaint was denied, which was subsequently noticed in the Sieggreen action on February 2, 2023. Plaintiff filed an Amended Complaint on March 6, 2023. On May 5, 2023, the Company Defendants filed a Motion to Dismiss the Amended Complaint, and the briefing on that motion is now complete. Discovery is automatically stayed in this case until after the disposition of the Motion to Dismiss. If the Motion to Dismiss is not successful, the case will proceed to discovery. The Company Defendants strongly dispute and deny the allegations at issue in this case and intend to continue to defend themselves vigorously against these claims. Holdback Matter On October 10, 2022, a representative for the former shareholders of Precision Industries, Inc. filed a civil complaint in the Court of Chancery of the State of Delaware. The complaint alleged that the Company violated the terms of an agreement and plan of merger dated July 14, 2020, by failing to pay the shareholders a certain indemnity holdback of $2,500,000. The Chancery Court dismissed that action for lack of jurisdiction. On January 12, 2023, the representative re-filed the same action in the United States District Court for the Western District of Pennsylvania. On October 26, 2023, the Company counterclaimed against the representative and all represented shareholders for fraudulently misrepresenting the seller’s inventory and accounting methodology and asserting damages in excess of $4,500,000. Several of the individual shareholders have moved to dismiss the counterclaim. The Company expects discovery to last for approximately one year. Wage and Hour Matter On July 27, 2022, Irma Sanchez, a former employee of Elite Builder Services, Inc. (“Elite Builders”), filed a class action complaint against Elite Builders in the Superior Court of California, County of Alameda. The complaint alleges that Elite Builders failed to pay all minimum and overtime wages, failed to provide lawful meal periods and rest breaks, failed to provide accurate itemized wage statements, and failed to pay all wages due upon separation as required by California law. The complaint was later amended as a matter of right on October 4, 2022. Further, Ms. Sanchez has put the Labor & Workforce Development Agency on notice to exhaust administrative remedies and enable her to bring an additional claim under the California Labor Code Private Attorneys General Act, which permits an employee to assert a claim for violations of certain California Labor Code provisions on behalf of all aggrieved employees to recover statutory penalties. The Court has set this for a Case Management Conference on September 30, 2024 after the parties have had a chance to exchange discovery regarding the claims. Elite Builders maintains that Ms. Sanchez’s claims lack merit and intends to defend this action vigorously. The Company is currently unable to estimate the range of possible losses associated with this proceeding as we are in the early stages of discovery and the scope of class is not yet known. Generally The Company is involved in various claims and lawsuits arising in the normal course of business. The ultimate results of claims and litigation cannot be predicted with certainty. The Company currently believes that the ultimate outcome of such lawsuits and proceedings will not, individually, or in the aggregate, have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows. As applicable, liabilities pertaining to these matters, that are probable and estimable, have been accrued. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company operates in five operating segments which are characterized as: (1) Retail-Entertainment, (2) Retail-Flooring, (3) Flooring Manufacturing, (4) Steel Manufacturing, and (5) Corporate and Other. The Retail-Entertainment segment consists of Vintage Stock; the Retail-Flooring segment consists of Flooring Liquidators; the Flooring Manufacturing Segment consists of Marquis; and the Steel Manufacturing Segment consists of Precision Marshall and Kinetic. The following tables summarize segment information (in $000's): For the Three Months Ended December 31, 2023 2022 Revenues Retail-Entertainment $ 20,586 $ 23,273 Retail-Flooring 34,319 — Flooring Manufacturing 29,245 26,432 Steel Manufacturing 33,354 17,981 Corporate & Other 89 1,300 Total revenues $ 117,593 $ 68,986 Gross profit Retail-Entertainment $ 11,528 $ 12,210 Retail-Flooring 13,032 — Flooring Manufacturing 6,422 4,661 Steel Manufacturing 5,262 4,392 Corporate & Other 83 681 Total gross profit $ 36,327 $ 21,944 Operating income (loss) Retail-Entertainment $ 3,143 $ 3,664 Retail-Flooring 90 — Flooring Manufacturing 945 751 Steel Manufacturing 982 1,455 Corporate & Other (1,619) (1,303) Total operating income $ 3,541 $ 4,567 Depreciation and amortization Retail-Entertainment $ 266 $ 311 Retail-Flooring 1,352 — Flooring Manufacturing 1,056 1,111 Steel Manufacturing 1,617 1,093 Corporate & Other 4 136 Total depreciation and amortization $ 4,295 $ 2,651 Interest expense Retail-Entertainment $ 164 $ 154 Retail-Flooring 1,200 — Flooring Manufacturing 984 987 Steel Manufacturing 1,622 787 Corporate & Other 193 119 Total interest expense $ 4,163 $ 2,047 Net (loss) income before provision for income taxes Retail-Entertainment $ 3,055 $ 3,538 Retail-Flooring (1,628) — Flooring Manufacturing (163) (313) Steel Manufacturing (1,018) 268 Corporate & Other (1,152) (1,034) Total (loss) net income before provision for income taxes $ (906) $ 2,459 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the filing of this Form 10-Q, and determined that there have been no events that have occurred that would require adjustments to disclosures in its condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The unaudited condensed financial statements include the accounts of the Company and its majority owned subsidiaries over which the Company exercises control. All intercompany accounts and transactions have been eliminated in consolidation. These reclassifications have no material effect on the reported financial results. |
Use of Estimates | Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in connection with the accompanying consolidated financial statements include the estimated reserve for doubtful current and long-term trade and other receivables, the estimated reserve for excess and obsolete inventory, fair values in connection with the analysis of goodwill, other intangibles and long-lived assets for impairment, valuation allowance against deferred tax assets, lease terminations, and estimated useful lives for intangible assets and property and equipment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 requires, among other updates, enhanced disclosures about significant segment expenses that are regularly provided to the CODM, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires enhanced annual disclosures regarding the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Purchase Price Allocation of Purchase of Acquired Identifiable Assets, Liabilities Assumed and Goodwill | The fair value of the purchase price components was $1.8 million, as detailed below (in $000's): Cash $ 1,034 Additional consideration 425 Holdback 300 Purchase price $ 1,759 Total purchase price $ 1,759 Accounts payable 770 Accrued liabilities 1,298 Total liabilities assumed 2,068 Total consideration 3,827 Accounts receivable 259 Inventory 1,406 Property, plant and equipment 261 Intangible assets Non-compete agreement 1,190 Subtotal intangible assets 1,190 Other assets 286 Total assets acquired 3,402 Total goodwill $ 425 The fair value of the purchase price components outlined above was approximately $2.0 million, as detailed below (in $000's): Cash $ 500 Deferred consideration 1,200 Earnout 301 Purchase price $ 2,001 Total purchase price $ 2,001 Accounts payable 1,017 Accrued liabilities 1,141 Total liabilities assumed 2,158 Total consideration 4,159 Accounts receivable 1,252 Inventory 1,127 Property, plant and equipment 157 Intangible assets Customer relationships $ 1,301 Non-compete agreement 306 Subtotal intangible assets 1,607 Other assets 16 Total assets acquired 4,159 Total goodwill $ — The fair value of the purchase price components outlined above was $26.8 million due to fair value adjustments for the contingent consideration, cash acquired, and working capital adjustments, as detailed below (in $000's): Purchase price $ 25,000 Fair value of earnout 2,675 Cash from balance sheet 1,602 Working capital adjustment (2,500) Net purchase price $ 26,777 Net purchase price $ 26,777 Accounts payable 10,788 Accrued liabilities 4,995 Total liabilities assumed 15,783 Total consideration 42,560 Cash 1,602 Accounts receivable 12,613 Inventory 6,266 Property, plant and equipment 13,616 Intangible assets 3,600 Other assets 849 Total assets acquired 38,546 Total goodwill $ 4,014 Purchase price $ 78,700 Accounts payable 5,189 Accrued liabilities 10,700 Debt 60 Total liabilities assumed 15,949 Total consideration 94,649 Cash 9,131 Accounts receivable 4,824 Inventory 19,402 Property, plant and equipment 4,643 Intangible assets Trade names $ 13,275 Customer relationships 7,700 Non-compete agreements 1,625 Other 49 Subtotal intangible assets 22,649 Other 2,581 Total assets acquired 63,230 Total goodwill $ 31,419 |
Schedule of Asset Acquisition | The table below outlines the purchase price allocation of the purchase for Cal Coast to the acquired identifiable assets (in $000’s): Property, plant and equipment $ 35 Intangible assets Customer relationships 785 Trade name 425 Non-compete agreement 55 Total intangible assets 1,265 Total assets acquired $ 1,300 |
Schedule of Business Acquisitions, by Acquisition | The fair value of the purchase price components outlined above was $78.7 million due to fair value adjustments for the Note, and restricted stock, as detailed below (in $000's). Purchase price $ 83,800 Fair value adjustment, sellers note (3,300) Fair value adjustment, restricted stock (1,800) Net purchase price $ 78,700 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table details the Company's inventory as of December 31, 2023 and September 30, 2023 (in $000's): Inventory, net December 31, 2023 September 30, 2023 Raw materials $ 29,690 $ 32,590 Work in progress 9,682 9,028 Finished goods 51,806 50,082 Merchandise 46,098 43,438 137,276 135,138 Less: Inventory reserves (4,821) (3,824) Total inventory, net $ 132,455 $ 131,314 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following table details the Company's property and equipment as of December 31, 2023 and September 30, 2023 (in $000's): December 31, 2023 September 30, 2023 Property and equipment, net: Land $ 2,029 $ 2,029 Building and improvements 36,417 35,684 Transportation equipment 2,088 2,062 Machinery and equipment 68,202 67,575 Furnishings and fixtures 6,287 6,028 Office, computer equipment and other 4,941 4,569 119,964 117,947 Less: Accumulated depreciation (40,281) (37,244) Total property and equipment, net $ 79,683 $ 80,703 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Right of Use Assets and Lease Liabilities | The following table details the Company's right of use assets and lease liabilities as of December 31, 2023 and September 30, 2023 (in $000's): December 31, 2023 September 30, 2023 Right of use asset - operating leases $ 65,799 $ 54,544 Lease liabilities: Current - operating 12,799 11,369 Current - finance 361 359 Long term - operating 58,291 48,156 Long term - finance 32,981 32,942 |
Schedule of Finance Lease Right of Use Assets | The Company records finance lease right of use assets as property and equipment. The balance, as of December 31, 2023 and September 30, 2023 is as follows (in $000’s): December 31, 2023 September 30, 2023 Property and equipment, at cost $ 22,526 $ 22,526 Accumulated depreciation $ (861) $ (702) Property and equipment, net $ 21,665 $ 21,824 |
Schedule of Present Value of Future Lease Payments of Operating and Finance Lease | Total present value of future lease payments of operating leases as of December 31, 2023 (in $000's): Twelve months ended December 31, 2024 $ 18,564 2025 16,784 2026 14,155 2027 12,252 2028 8,107 Thereafter 36,737 Total 106,599 Less implied interest (35,509) Present value of payments $ 71,090 |
Schedule of Present Value of Future Lease Payments of Operating and Finance Lease | Total present value of future lease payments of finance leases as of December 31, 2023 (in $000's): Twelve months ended December 31, 2024 $ 3,167 2025 3,197 2026 3,241 2027 3,320 2028 3,425 Thereafter 104,066 Total 120,416 Less implied interest (87,074) Present value of payments $ 33,342 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table details the Company's intangibles as of December 31, 2023 and September 30, 2023 (in $000's): December 31, 2023 September 30, 2023 Intangible assets, net: Intangible assets - Tradenames $ 14,940 $ 14,940 Intangible assets - Customer relationships 15,175 13,874 Intangible assets - Other 3,811 2,316 33,926 31,130 Less: Accumulated amortization (5,763) (4,562) Total intangibles, net $ 28,163 $ 26,568 |
Schedule of Future Amortization Expense related to Intangible Assets | The following table summarizes estimated future amortization expense related to intangible assets that have net balances (in $000’s): Twelve months ending December 31, 2024 $ 4,984 2025 4,984 2026 4,945 2027 4,866 2028 4,335 Thereafter 4,049 $ 28,163 |
Goodwill - (Tables)
Goodwill - (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Company's Goodwill | The following table details the Company's goodwill as of September 30, 2023 and December 31, 2023 (in $000's): Retail - Entertainment Retail - Flooring Flooring Manufacturing Steel Manufacturing Total September 30, 2023 36,947 30,419 807 7,693 75,866 CRO acquisition — 425 — — 425 PMW adjustment — — — (652) (652) Flooring Liquidators adjustment — 1,000 — — 1,000 December 31, 2023 $ 36,947 $ 31,844 $ 807 $ 7,041 $ 76,639 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities Abstract | |
Schedule of Accrued Liabilities | The following table details the Company's accrued liabilities as of December 31, 2023 and September 30, 2023, respectively (in $000's): December 31, 2023 September 30, 2023 Accrued liabilities: Accrued payroll and bonuses $ 5,775 $ 5,802 Accrued sales and use taxes 1,921 1,529 Accrued customer deposits 6,093 4,579 Accrued gift card and escheatment liability 1,873 1,819 Accrued interest payable 697 669 Accrued inventory 7,262 5,700 Accrued professional fees 5,454 3,146 Accrued expenses - other 10,048 8,582 Total accrued liabilities $ 39,123 $ 31,826 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of December 31, 2023 and September 30, 2023 consisted of the following (in $000's): December 31, 2023 September 30, 2023 Revolver loans $ 56,022 $ 56,779 Equipment loans 14,419 15,486 Term loans 13,669 14,290 Other notes payable 16,011 15,789 Total notes payable 100,121 102,344 Less: unamortized debt issuance costs (541) (557) Net amount 99,580 101,787 Less: current portion (21,223) (23,077) Total long-term debt $ 78,357 $ 78,710 Seller notes as of December 31, 2023 and September 30, 2023 consisted of the following (in $000’s): December 31, September 30, Seller of Flooring Liquidators, 8.24% interest rate, matures January 2028 $ 34,000 $ 34,000 Seller of PMW, 8.0% interest rate, matures July 2028 2,500 2,500 Seller of Kinetic, 7.0% interest rate, matures September 2027 3,000 3,000 Total Related party seller notes payable 39,500 39,500 Unamortized debt premium (discount) 172 (502) Net amount 39,672 38,998 Less current portion — — Long-term portion of Related party seller notes payable $ 39,672 $ 38,998 |
Schedule of Future Maturities of Long-term Debt | Future maturities of long-term debt at December 31, 2023, are as follows which does not include related party debt separately stated (in $000's): Twelve months ending December 31, 2024 $ 21,223 2025 7,504 2026 28,217 2027 31,134 2028 1,306 Thereafter 10,196 Total future maturities of long-term debt $ 99,580 Future maturities of seller notes at December 31, 2023 are as follows (in $000’s): Twelve months ending December 31, 2026 500 2027 3,500 2028 35,672 Total $ 39,672 |
Notes Payable, Related Parties
Notes Payable, Related Parties (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Related Parties | Long-term debt payable to related parties (see Note 16) as of December 31, 2023 and September 30, 2023 consisted of the following (in $000's): December 31, 2023 September 30, 2023 Isaac Capital Group, LLC, 12.5% interest rate, matures May 2025 $ 2,000 $ 2,000 Spriggs Investments, LLC, 10% interest rate, matures July 2024 2,000 2,000 Spriggs Investments, LLC for Flooring Liquidators, 12% interest rate, matures July 2024 1,000 1,000 Isaac Capital Group, LLC revolver, 12% interest rate, matures April 2024 1,000 1,000 Isaac Capital Group, LLC for Flooring Liquidators, 12% interest rate, matures January 2028 5,000 5,000 Total notes payable - related parties 11,000 11,000 Less: unamortized debt issuance costs (81) (86) Net amount 10,919 10,914 Less: current portion (4,000) (4,000) Total long-term portion, related parties $ 6,919 $ 6,914 Twelve months ending December 31, 2024 $ 4,000 2025 2,000 2028 5,000 Total future maturities of long-term debt, related parties $ 11,000 |
Related Party Seller Notes (Tab
Related Party Seller Notes (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of December 31, 2023 and September 30, 2023 consisted of the following (in $000's): December 31, 2023 September 30, 2023 Revolver loans $ 56,022 $ 56,779 Equipment loans 14,419 15,486 Term loans 13,669 14,290 Other notes payable 16,011 15,789 Total notes payable 100,121 102,344 Less: unamortized debt issuance costs (541) (557) Net amount 99,580 101,787 Less: current portion (21,223) (23,077) Total long-term debt $ 78,357 $ 78,710 Seller notes as of December 31, 2023 and September 30, 2023 consisted of the following (in $000’s): December 31, September 30, Seller of Flooring Liquidators, 8.24% interest rate, matures January 2028 $ 34,000 $ 34,000 Seller of PMW, 8.0% interest rate, matures July 2028 2,500 2,500 Seller of Kinetic, 7.0% interest rate, matures September 2027 3,000 3,000 Total Related party seller notes payable 39,500 39,500 Unamortized debt premium (discount) 172 (502) Net amount 39,672 38,998 Less current portion — — Long-term portion of Related party seller notes payable $ 39,672 $ 38,998 |
Schedule of Future Maturities of Long-term Debt | Future maturities of long-term debt at December 31, 2023, are as follows which does not include related party debt separately stated (in $000's): Twelve months ending December 31, 2024 $ 21,223 2025 7,504 2026 28,217 2027 31,134 2028 1,306 Thereafter 10,196 Total future maturities of long-term debt $ 99,580 Future maturities of seller notes at December 31, 2023 are as follows (in $000’s): Twelve months ending December 31, 2026 500 2027 3,500 2028 35,672 Total $ 39,672 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity for the fiscal year ended September 30, 2023 and the three months ended December 31, 2023: Number of Weighted Weighted Intrinsic Outstanding at September 30, 2022 87,500 $ 18.81 0.78 $ 771 Outstanding at December 31, 2022 87,500 $ 18.81 0.52 $ 1,201 Exercisable at December 31, 2022 87,500 $ 18.81 0.52 $ 1,201 Outstanding at September 30, 2023 53,750 $ 21.51 1.54 $ 540 Outstanding at December 31, 2023 53,750 $ 21.51 1.29 $ 450 Exercisable at December 31, 2023 53,750 $ 21.51 1.29 $ 450 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Earnings Per Share | The following table presents the computation of basic and diluted net earnings per share (in $000's): Three Months Ended December 31, 2023 2022 Basic Net (loss) income $ (682) $ 1,844 Less: preferred stock dividends — — Net (loss) income applicable to common stock $ (682) $ 1,844 Weighted average common shares outstanding 3,163,541 3,059,035 Basic (loss) earnings per share $ (0.22) $ 0.60 Diluted Net (loss) income applicable to common stock $ (682) $ 1,844 Add: preferred stock dividends — — Net (loss) income applicable for diluted earnings per share $ (682) $ 1,844 Weighted average common shares outstanding 3,163,541 3,059,035 Add: Options — 30,467 Add: Series E Preferred Stock — 239 Assumed weighted average common shares outstanding 3,163,541 3,089,741 Diluted (loss) earnings per share $ (0.22) $ 0.60 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables summarize segment information (in $000's): For the Three Months Ended December 31, 2023 2022 Revenues Retail-Entertainment $ 20,586 $ 23,273 Retail-Flooring 34,319 — Flooring Manufacturing 29,245 26,432 Steel Manufacturing 33,354 17,981 Corporate & Other 89 1,300 Total revenues $ 117,593 $ 68,986 Gross profit Retail-Entertainment $ 11,528 $ 12,210 Retail-Flooring 13,032 — Flooring Manufacturing 6,422 4,661 Steel Manufacturing 5,262 4,392 Corporate & Other 83 681 Total gross profit $ 36,327 $ 21,944 Operating income (loss) Retail-Entertainment $ 3,143 $ 3,664 Retail-Flooring 90 — Flooring Manufacturing 945 751 Steel Manufacturing 982 1,455 Corporate & Other (1,619) (1,303) Total operating income $ 3,541 $ 4,567 Depreciation and amortization Retail-Entertainment $ 266 $ 311 Retail-Flooring 1,352 — Flooring Manufacturing 1,056 1,111 Steel Manufacturing 1,617 1,093 Corporate & Other 4 136 Total depreciation and amortization $ 4,295 $ 2,651 Interest expense Retail-Entertainment $ 164 $ 154 Retail-Flooring 1,200 — Flooring Manufacturing 984 987 Steel Manufacturing 1,622 787 Corporate & Other 193 119 Total interest expense $ 4,163 $ 2,047 Net (loss) income before provision for income taxes Retail-Entertainment $ 3,055 $ 3,538 Retail-Flooring (1,628) — Flooring Manufacturing (163) (313) Steel Manufacturing (1,018) 268 Corporate & Other (1,152) (1,034) Total (loss) net income before provision for income taxes $ (906) $ 2,459 |
Background and Basis of Prese_2
Background and Basis of Presentation - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 5 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | 3 Months Ended | ||||||||
Nov. 30, 2023 USD ($) Location installment | Oct. 13, 2023 USD ($) | Sep. 20, 2023 USD ($) | Jul. 20, 2023 USD ($) option property shares | Jun. 02, 2023 USD ($) | Jan. 18, 2023 USD ($) shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Business Combination Segment Allocation [Line Items] | |||||||||
Goodwill | $ 76,639,000 | $ 75,866,000 | |||||||
Purchase of property and equipment | 1,655,000 | $ 1,282,000 | |||||||
PMW | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Proceeds from failed sales-type lease transactions, financing activities | $ 14,500,000 | ||||||||
Harris Flooring Group® Brands | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Total assets acquired | $ 10,100,000 | ||||||||
Payments to acquire productive assets | 3,000,000 | ||||||||
Deferred payment | 5,100,000 | ||||||||
Holdback amount | $ 2,000,000 | ||||||||
Cal Coast | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Total assets acquired | $ 1,300,000 | ||||||||
Payments to acquire productive assets | 35,000 | ||||||||
Intangible assets | $ 1,265,000 | ||||||||
Carpet Remnant Outlet, Inc | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Net purchase price | $ 1,759,000 | ||||||||
Cash consideration at close | 1,034,000 | ||||||||
Indemnification holdback | 300,000 | ||||||||
Earnout | 425,000 | ||||||||
Goodwill | 425,000 | ||||||||
Business combination additional consideration | $ 300,000 | ||||||||
Johnson Floor & Home | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Net purchase price | $ 2,001,000 | ||||||||
Cash consideration at close | 500,000 | ||||||||
Indemnification holdback | 300,000 | ||||||||
Earnout | 301,000 | ||||||||
Goodwill | 0 | ||||||||
Note amount | 1,200,000 | ||||||||
Business combination additional consideration | $ 300,000 | ||||||||
Number of installment | installment | 3 | ||||||||
Installments due | $ 400,000 | ||||||||
Accrue interest | 6% | ||||||||
Johnson Floor & Home | Tulsa | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Number of location | Location | 4 | ||||||||
Johnson Floor & Home | Joplin | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Number of location | Location | 1 | ||||||||
PMW | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Net purchase price | 26,777,000 | ||||||||
Cash consideration at close | 25,000,000 | ||||||||
Indemnification holdback | 2,500,000 | ||||||||
Earnout | 2,675,000 | ||||||||
Goodwill | 4,014,000 | ||||||||
Note amount | 2,500,000 | ||||||||
Business combination additional consideration | 2,500,000 | ||||||||
Total consideration | 28,000,000 | ||||||||
Additional consideration | 3,000,000 | ||||||||
Advance made on existing credit facility | 14,400,000 | ||||||||
Proceeds from failed sales-type lease transactions, financing activities | $ 8,600,000 | ||||||||
Issuance of stock (in shares) | shares | 0 | ||||||||
Business acquisition, goodwill, expected tax deductible amount | $ 0 | ||||||||
Aggregate adjustments related to inventory, other liabilities and deferred tax liabilities | $ 652,000 | ||||||||
PMW | Sale Lease Back Transaction | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Sale leaseback transaction, number of leased properties | property | 2 | ||||||||
Sale leaseback transaction, net book value | $ 14,500,000 | ||||||||
Purchase of property and equipment | $ 5,100,000 | ||||||||
Lease term | 20 years | ||||||||
Lessee, renewal option | option | 2 | ||||||||
Lessee, renewal term | 5 years | ||||||||
Rent escalation per annum (percent) | 2% | ||||||||
PMW | Sale Lease Back Transaction | Frankfort Lease Agreement | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Base rent | $ 34,977 | ||||||||
PMW | Sale Lease Back Transaction | Louisville Lease Agreement | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Base rent | $ 63,493 | ||||||||
Flooring Liquidators | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Net purchase price | $ 78,700,000 | ||||||||
Goodwill | 31,419,000 | ||||||||
Note amount | 34,000,000 | ||||||||
Business acquisition, goodwill, expected tax deductible amount | 13,400,000 | ||||||||
Purchase price for equity interests | 83,800,000 | ||||||||
Cash paid to the seller representative | 41,800,000 | ||||||||
Stock issued during period, value | $ 4,000,000 | ||||||||
Issuance of common stock (in shares) | shares | 116,441 | ||||||||
Business combination, holdback amount | $ 2,000,000 | ||||||||
Additional consideration | 2,000,000 | ||||||||
Flooring Liquidators | Restricted Stock Units | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Additional consideration | 1,000,000 | ||||||||
Flooring Liquidators | Cash | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Additional consideration | $ 1,000,000 | ||||||||
Flooring Liquidators | Precision Industries Affiliated Holdings | |||||||||
Business Combination Segment Allocation [Line Items] | |||||||||
Ownership percentage by parent (percent) | 100% |
Acquisitions - Fair Value of Pu
Acquisitions - Fair Value of Purchase Price Components (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Oct. 13, 2023 | Jul. 20, 2023 |
Carpet Remnant Outlet, Inc | |||
Business Acquisition [Line Items] | |||
Cash | $ 1,034 | ||
Fair value of earnout | 425 | ||
Working capital adjustment | (300) | ||
Net purchase price | $ 1,759 | ||
Johnson Floor & Home | |||
Business Acquisition [Line Items] | |||
Cash | $ 500 | ||
Deferred consideration | 1,200 | ||
Fair value of earnout | 301 | ||
Working capital adjustment | (300) | ||
Net purchase price | $ 2,001 | ||
PMW | |||
Business Acquisition [Line Items] | |||
Cash | $ 25,000 | ||
Deferred consideration | 2,500 | ||
Fair value of earnout | 2,675 | ||
Cash from balance sheet | 1,602 | ||
Working capital adjustment | (2,500) | ||
Net purchase price | $ 26,777 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation of Purchase of Acquired Identifiable Assets, Liabilities Assumed and Goodwill (Details) - USD ($) | Nov. 30, 2023 | Oct. 13, 2023 | Jul. 20, 2023 | Jan. 18, 2023 | Dec. 31, 2023 | Sep. 30, 2023 |
Business Combination Segment Allocation [Line Items] | ||||||
Goodwill | $ 76,639,000 | $ 75,866,000 | ||||
Carpet Remnant Outlet, Inc | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Purchase price | $ 1,759,000 | |||||
Accounts payable | 770,000 | |||||
Accrued liabilities | 1,298,000 | |||||
Total liabilities assumed | 2,068,000 | |||||
Purchase price | 3,827,000 | |||||
Accounts receivable | 259,000 | |||||
Inventory | 1,406,000 | |||||
Property, plant and equipment | 261,000 | |||||
Intangible assets | 1,190,000 | |||||
Other | 286,000 | |||||
Total assets acquired | 3,402,000 | |||||
Goodwill | 425,000 | |||||
Carpet Remnant Outlet, Inc | Non-compete agreements | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Intangible assets | $ 1,190,000 | |||||
Johnson Floor & Home | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Purchase price | $ 2,001,000 | |||||
Accounts payable | 1,017,000 | |||||
Accrued liabilities | 1,141,000 | |||||
Total liabilities assumed | 2,158,000 | |||||
Purchase price | 4,159,000 | |||||
Accounts receivable | 1,252,000 | |||||
Inventory | 1,127,000 | |||||
Property, plant and equipment | 157,000 | |||||
Intangible assets | 1,607,000 | |||||
Other | 16,000 | |||||
Total assets acquired | 4,159,000 | |||||
Goodwill | 0 | |||||
Johnson Floor & Home | Customer relationships | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Intangible assets | 1,301,000 | |||||
Johnson Floor & Home | Non-compete agreements | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Intangible assets | $ 306,000 | |||||
PMW | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Purchase price | $ 26,777,000 | |||||
Accounts payable | 10,788,000 | |||||
Accrued liabilities | 4,995,000 | |||||
Total liabilities assumed | 15,783,000 | |||||
Purchase price | 42,560,000 | |||||
Cash | 1,602,000 | |||||
Accounts receivable | 12,613,000 | |||||
Inventory | 6,266,000 | |||||
Property, plant and equipment | 13,616,000 | |||||
Intangible assets | 3,600,000 | |||||
Other | 849,000 | |||||
Total assets acquired | 38,546,000 | |||||
Goodwill | $ 4,014,000 | |||||
Flooring Liquidators | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Purchase price | $ 78,700,000 | |||||
Accounts payable | 5,189,000 | |||||
Accrued liabilities | 10,700,000 | |||||
Debt | 60,000 | |||||
Total liabilities assumed | 15,949,000 | |||||
Purchase price | 94,649,000 | |||||
Cash | 9,131,000 | |||||
Accounts receivable | 4,824,000 | |||||
Inventory | 19,402,000 | |||||
Property, plant and equipment | 4,643,000 | |||||
Intangible assets | 22,649,000 | |||||
Other | 2,581,000 | |||||
Total assets acquired | 63,230,000 | |||||
Goodwill | 31,419,000 | |||||
Flooring Liquidators | Customer relationships | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Intangible assets | 7,700,000 | |||||
Flooring Liquidators | Non-compete agreements | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Intangible assets | 1,625,000 | |||||
Flooring Liquidators | Trade names | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Intangible assets | 13,275,000 | |||||
Flooring Liquidators | Other | ||||||
Business Combination Segment Allocation [Line Items] | ||||||
Intangible assets | $ 49,000 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation for the Company Cal Coast (Details) - Cal Coast $ in Thousands | Jun. 02, 2023 USD ($) |
Business Combination Segment Allocation [Line Items] | |
Property and equipment, gross | $ 35 |
Intangible assets | 1,265 |
Total assets acquired | 1,300 |
Customer relationships | |
Business Combination Segment Allocation [Line Items] | |
Intangible assets | 785 |
Trade names | |
Business Combination Segment Allocation [Line Items] | |
Intangible assets | 425 |
Non-compete agreements | |
Business Combination Segment Allocation [Line Items] | |
Intangible assets | $ 55 |
Acquisitions - Fair Value Adjus
Acquisitions - Fair Value Adjustment of Purchase Price Components (Details) - Flooring Liquidators $ in Thousands | Jan. 18, 2023 USD ($) |
Business Acquisition [Line Items] | |
Purchase price | $ 83,800 |
Fair value adjustment, sellers note | (3,300) |
Fair value adjustment, restricted stock | (1,800) |
Net purchase price | $ 78,700 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 29,690 | $ 32,590 |
Work in progress | 9,682 | 9,028 |
Finished goods | 51,806 | 50,082 |
Merchandise | 46,098 | 43,438 |
Total inventory, gross | 137,276 | 135,138 |
Less: Inventory reserves | (4,821) | (3,824) |
Total inventory, net | $ 132,455 | $ 131,314 |
Property, Plant & Equipment - S
Property, Plant & Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 119,964 | $ 117,947 |
Less: Accumulated depreciation | (40,281) | (37,244) |
Total property and equipment, net | 79,683 | 80,703 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,029 | 2,029 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 36,417 | 35,684 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,088 | 2,062 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 68,202 | 67,575 |
Furnishings and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,287 | 6,028 |
Office, computer equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,941 | $ 4,569 |
Property, Plant & Equipment - A
Property, Plant & Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 3.1 | $ 2.4 |
Leases - Schedule of Right of U
Leases - Schedule of Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Leases [Abstract] | ||
Right of use asset - operating leases | $ 65,799 | $ 54,544 |
Current - operating | 12,799 | 11,369 |
Current - finance | 361 | 359 |
Long term - operating | 58,291 | 48,156 |
Long term - finance | $ 32,981 | $ 32,942 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 10 years 3 months 18 days | |
Weighted average discount rate (percent) | 9.90% | |
Total cash payments | $ 4,300,000 | $ 2,400,000 |
Right-of-use assets in exchange of lease liabilities | $ 14,900,000 | |
Finance lease weighted average remaining lease term (years) | 27 years 4 months 24 days | |
Finance lease weighted average discount rate (percent) | 11.70% | |
Finance Lease cash payments | $ 793,000 | 481,000 |
Right-of-use assets were exchange for finance lease liability | 0 | |
Operating lease, impairment charges | 0 | 0 |
Finance lease, impairment charges | $ 0 | $ 0 |
Leases - Schedule of Property,
Leases - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Leases [Abstract] | ||
Property and equipment, at cost | $ 22,526 | $ 22,526 |
Accumulated depreciation | (861) | (702) |
Property and equipment, net | $ 21,665 | $ 21,824 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Leases - Schedule of Present Va
Leases - Schedule of Present Value of Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 18,564 |
2025 | 16,784 |
2026 | 14,155 |
2027 | 12,252 |
2028 | 8,107 |
Thereafter | 36,737 |
Total | 106,599 |
Less implied interest | (35,509) |
Present value of payments | $ 71,090 |
Leases - Present Value of Futur
Leases - Present Value of Future Lease Payments of Finance Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 3,167 |
2025 | 3,197 |
2026 | 3,241 |
2027 | 3,320 |
2028 | 3,425 |
Thereafter | 104,066 |
Total | 120,416 |
Less implied interest | (87,074) |
Present value of payments | $ 33,342 |
Intangibles - Schedule of Intan
Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 33,926 | $ 31,130 |
Less: Accumulated amortization | (5,763) | (4,562) |
Total intangibles, net | 28,163 | 26,568 |
Intangible assets - Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 14,940 | 14,940 |
Intangible assets - Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 15,175 | 13,874 |
Intangible assets - Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,811 | $ 2,316 |
Intangibles - Additional Inform
Intangibles - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 1,200 | $ 253 |
Intangibles - Schedule of Futur
Intangibles - Schedule of Future Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 4,984 | |
2025 | 4,984 | |
2026 | 4,945 | |
2027 | 4,866 | |
2028 | 4,335 | |
Thereafter | 4,049 | |
Total intangibles, net | $ 28,163 | $ 26,568 |
Goodwill - Summary of Company's
Goodwill - Summary of Company's goodwill (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 75,866 |
Goodwill, ending balance | 76,639 |
CRO acquisition | |
Goodwill [Roll Forward] | |
CRO acquisition | 425 |
PMW | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | (652) |
Flooring Liquidators | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | 1,000 |
Retail - Entertainment | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 36,947 |
Goodwill, ending balance | 36,947 |
Retail - Entertainment | CRO acquisition | |
Goodwill [Roll Forward] | |
CRO acquisition | 0 |
Retail - Entertainment | PMW | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | 0 |
Retail - Entertainment | Flooring Liquidators | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | 0 |
Retail - Flooring | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 30,419 |
Goodwill, ending balance | 31,844 |
Retail - Flooring | CRO acquisition | |
Goodwill [Roll Forward] | |
CRO acquisition | 425 |
Retail - Flooring | PMW | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | 0 |
Retail - Flooring | Flooring Liquidators | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | 1,000 |
Flooring Manufacturing | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 807 |
Goodwill, ending balance | 807 |
Flooring Manufacturing | CRO acquisition | |
Goodwill [Roll Forward] | |
CRO acquisition | 0 |
Flooring Manufacturing | PMW | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | 0 |
Flooring Manufacturing | Flooring Liquidators | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | 0 |
Steel Manufacturing | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 7,693 |
Goodwill, ending balance | 7,041 |
Steel Manufacturing | CRO acquisition | |
Goodwill [Roll Forward] | |
CRO acquisition | 0 |
Steel Manufacturing | PMW | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | (652) |
Steel Manufacturing | Flooring Liquidators | |
Goodwill [Roll Forward] | |
PWM and Flooring Liquidators adjustments | $ 0 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
PMW | |
Goodwill [Line Items] | |
Fair value adjustments | $ (652) |
Flooring Liquidators | |
Goodwill [Line Items] | |
Fair value adjustments | $ 1,000 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Accrued Liabilities Abstract | ||
Accrued payroll and bonuses | $ 5,775 | $ 5,802 |
Accrued sales and use taxes | 1,921 | 1,529 |
Accrued customer deposits | 6,093 | 4,579 |
Accrued gift card and escheatment liability | 1,873 | 1,819 |
Accrued interest payable | 697 | 669 |
Accrued inventory | 7,262 | 5,700 |
Accrued professional fees | 5,454 | 3,146 |
Accrued expenses - other | 10,048 | 8,582 |
Total accrued liabilities | $ 39,123 | $ 31,826 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Details) - Nonrelated Party - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 100,121 | $ 102,344 |
Less: unamortized debt issuance costs | (541) | (557) |
Net amount | 99,580 | 101,787 |
Less: current portion | (21,223) | (23,077) |
Total long-term debt | 78,357 | 78,710 |
Revolver loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 56,022 | 56,779 |
Equipment loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 14,419 | 15,486 |
Term loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 13,669 | 14,290 |
Other notes payable | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 16,011 | $ 15,789 |
Long Term Debt - Schedule of Fu
Long Term Debt - Schedule of Future Maturities of Long-term Debt (Details) - Notes Payable $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 21,223 |
2025 | 7,504 |
2026 | 28,217 |
2027 | 31,134 |
2028 | 1,306 |
Thereafter | 10,196 |
Total future maturities of long-term debt | $ 99,580 |
Long Term Debt - Bank of Americ
Long Term Debt - Bank of America Revolver Loan - Additional Information (Details) - Revolving Credit Facility - Marquis - Revolver loans - Secured debt - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 | Jan. 31, 2020 |
Debt Instrument [Line Items] | |||
Credit line maximum | $ 25 | ||
Long-term debt, term | 5 years | ||
Credit balance outstanding | $ 6.5 | $ 6.1 |
Long Term Debt - Loan with Fift
Long Term Debt - Loan with Fifth Third Bank (Precision Marshall) - Additional Information (Details) $ in Millions | 3 Months Ended | ||||
Apr. 12, 2023 USD ($) | Jan. 20, 2022 USD ($) loan | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jul. 20, 2023 USD ($) | |
Kinetic Industries | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | $ 6 | ||||
Term Loan One | Kinetic Industries | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | 4 | $ 4 | |||
Maturity date | Jan. 20, 2027 | ||||
Term loans | Kinetic Industries | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | $ 1 | $ 1 | |||
Maturity date | Jun. 28, 2025 | ||||
Term loans | SOFR | Kinetic Industries | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate (percent) | 3.75% | ||||
Fifth Third Bank | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jan. 20, 2027 | ||||
Fifth Third Bank | SOFR | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate (percent) | 2.25% | ||||
Fifth Third Bank | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | $ 15 | ||||
Credit balance outstanding | $ 10.2 | $ 11 | |||
Advance made on existing credit facility | $ 1.4 | ||||
Fifth Third Bank | Revolving Credit Facility | SOFR | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate (percent) | 2% | ||||
Fifth Third Bank | Term Loan One and Term Loan Two | Kinetic Industries | |||||
Debt Instrument [Line Items] | |||||
Number of term loans | loan | 2 | ||||
Fifth Third Bank | Term Loan One | Kinetic Industries | |||||
Debt Instrument [Line Items] | |||||
Credit balance outstanding | 3.1 | 3.3 | |||
Fifth Third Bank | Encina Loans | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | $ 29 | ||||
Reduction in interest costs and availability of liquid funds | 3 | ||||
Credit balance outstanding | 2.2 | 2.3 | |||
Fifth Third Bank | Encina Loans | Machinery and equipment | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | 3.5 | ||||
Fifth Third Bank | Encina Loans | Capital expenditure | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | 2.5 | ||||
Credit balance outstanding | 1.4 | 1.4 | |||
Fifth Third Bank | Encina Loans | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit line maximum | $ 23 | ||||
Credit balance outstanding | $ 26 | $ 23 |
Long-Term Debt - Eclipse Busine
Long-Term Debt - Eclipse Business Capital Loans - Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Jan. 18, 2023 | Dec. 31, 2023 | Sep. 30, 2023 |
M&E loan | Loan | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum | $ 3.5 | |||
Credit balance outstanding | $ 2.3 | $ 2.4 | ||
M&E loan | Loan | SOFR | ||||
Debt Instrument [Line Items] | ||||
Spread on variable rate (percent) | 5% | 6% | ||
Revolving Credit Facility | Eclipse Revolver | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum | $ 25 | |||
Debt instrument, term | 3 years | |||
Credit balance outstanding | $ 8.8 | $ 8.2 | ||
Revolving Credit Facility | Eclipse Revolver | SOFR | ||||
Debt Instrument [Line Items] | ||||
Spread on variable rate (percent) | 3.50% | 4.50% |
Long-Term Debt - Loan with Fift
Long-Term Debt - Loan with Fifth Third Bank (PMW) - Additional Information (Details) - Fifth Third Bank - USD ($) $ in Millions | Jul. 20, 2023 | Dec. 31, 2023 | Sep. 30, 2023 |
M&E loan | |||
Debt Instrument [Line Items] | |||
Credit line maximum | $ 5 | ||
Credit balance outstanding | $ 4.7 | $ 4.8 | |
M&E loan | Reference Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 0.50% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit line maximum | $ 15 | ||
Debt instrument, term | 3 years | ||
Interest rate (percent) | 3% | ||
Credit balance outstanding | $ 10.2 | $ 11 | |
Revolving Credit Facility | Reference Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 0% |
Long-Term Debt - Bank Midwest R
Long-Term Debt - Bank Midwest Revolver Loan - Additional Information (Details) - Line of Credit - USD ($) $ in Millions | Oct. 17, 2023 | Dec. 31, 2023 | Sep. 30, 2023 |
Bank Midwest | |||
Debt Instrument [Line Items] | |||
Credit line maximum | $ 15 | ||
Interest rate (percent) | 6.50% | ||
Credit balance outstanding | $ 4.5 | ||
Bank Midwest | SOFR | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 2.36% | ||
Texas Capital Bank Revolver Loan | |||
Debt Instrument [Line Items] | |||
Credit balance outstanding | $ 5.3 |
Long Term Debt - Equipment Loan
Long Term Debt - Equipment Loans - Additional Information (Details) - Marquis | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2022 USD ($) option | Dec. 31, 2021 USD ($) payment | Dec. 31, 2023 USD ($) payment | Sep. 30, 2023 USD ($) | |
Banc Note Payable Bank Three | Equipment loans | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 3,700,000 | |||
Debt periodic frequency | payment | 84 | |||
Debt periodic payment | $ 52,000,000 | |||
Interest rate (percent) | 4.80% | |||
Balance outstanding | $ 0 | $ 154,000,000 | ||
Banc Note Payable Bank Four | Equipment loans | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 1,100,000 | |||
Debt periodic frequency | payment | 81 | |||
Debt periodic payment | $ 16,000,000 | |||
Interest rate (percent) | 4.90% | |||
Balance outstanding | $ 0 | 47,000,000 | ||
Banc Note Payable Bank Five | Equipment loans | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 4,000,000 | |||
Debt periodic frequency | payment | 84 | |||
Debt periodic payment | $ 55,000,000 | |||
Interest rate (percent) | 4.70% | |||
Balance outstanding | $ 643,000,000 | 799,000 | ||
Banc Note Payable Bank Six | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 913,000,000 | |||
Debt periodic frequency | payment | 60 | |||
Debt periodic payment | $ 14,000,000 | |||
Interest rate (percent) | 4.70% | |||
Balance outstanding | $ 277,000,000 | 317,000,000 | ||
Debt instrument, periodic payment terms | 197,000,000 | |||
Banc Note Payable Bank Seven | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 5,000,000 | |||
Debt periodic frequency | payment | 84 | |||
Debt periodic payment | $ 59,000,000 | |||
Interest rate (percent) | 3.20% | |||
Balance outstanding | $ 2,800,000 | 2,900,000 | ||
Debt instrument, periodic payment terms | 809,000,000 | |||
Banc Note Payable Bank Eight | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 3,400,000 | |||
Debt periodic frequency | payment | 84 | |||
Debt periodic payment | $ 46,000,000 | |||
Interest rate (percent) | 4% | |||
Balance outstanding | $ 1,900,000 | 2,000,000 | ||
Banc Note Payable Bank Nine | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 5,500,000 | |||
Debt periodic frequency | payment | 60 | |||
Debt periodic payment | $ 92,000,000 | |||
Interest rate (percent) | 3.75% | |||
Balance outstanding | 3,600,000 | 3,900,000 | ||
Debt instrument, periodic payment terms | $ 642,000,000 | |||
Banc Note Payable Bank Ten | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 5,700,000 | |||
Debt periodic frequency | option | 84 | |||
Debt periodic payment | $ 79,000,000 | |||
Interest rate (percent) | 6.50% | |||
Debt instrument, periodic payment terms | $ 650,000,000 | |||
Banc Note Payable Bank Ten | Equipment loans | ||||
Debt Instrument [Line Items] | ||||
Balance outstanding | $ 5,100,000 | $ 5,300,000 |
Notes Payable, Related Partie_2
Notes Payable, Related Parties - Schedule of Long-term Related Parties (Details) - Related Party - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||
Loan outstanding | $ 11,000 | $ 11,000 |
Less: unamortized debt issuance costs | (81) | (86) |
Net amount | 10,919 | 10,914 |
Less: current portion | (4,000) | (4,000) |
Total long-term portion, related parties | $ 6,919 | 6,914 |
Isaac Capital Fund | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate during period (percent) | 12.50% | |
Loan outstanding | $ 2,000 | 2,000 |
Isaac Capital Fund | Flooring Liquidators | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate during period (percent) | 12% | |
Loan outstanding | $ 5,000 | 5,000 |
Isaac Capital Fund | Revolver loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate during period (percent) | 12% | |
Loan outstanding | $ 1,000 | 1,000 |
Spriggs Investments, LLC | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate during period (percent) | 10% | |
Loan outstanding | $ 2,000 | 2,000 |
Spriggs Investments, LLC | Flooring Liquidators | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate during period (percent) | 12% | |
Loan outstanding | $ 1,000 | $ 1,000 |
Notes Payable, Related Partie_3
Notes Payable, Related Parties - Schedule of Future Maturities of Notes (Details) - Notes Payable, Related Parties - Related Party $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 4,000 |
2025 | 2,000 |
2028 | 5,000 |
Net amount | $ 11,000 |
Related Party Seller Notes - Re
Related Party Seller Notes - Related Party of Seller Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Related Party | ||
Debt Instrument [Line Items] | ||
Loan outstanding | $ 11,000 | $ 11,000 |
Net amount | 10,919 | 10,914 |
Less current portion | 4,000 | 4,000 |
Long-term portion of Related party seller notes payable | 6,919 | 6,914 |
Seller Notes | Loan | ||
Debt Instrument [Line Items] | ||
Net amount | 39,672 | |
Seller Notes | Related Party | Loan | ||
Debt Instrument [Line Items] | ||
Loan outstanding | 39,500 | 39,500 |
Unamortized debt premium (discount) | 172 | (502) |
Net amount | 39,672 | 38,998 |
Less current portion | 0 | 0 |
Long-term portion of Related party seller notes payable | $ 39,672 | $ 38,998 |
Note Payable to the Sellers of Flooring Liquidators | Related Party | Loan | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 8.24% | 8.24% |
Loan outstanding | $ 34,000 | $ 34,000 |
Note Payable To The Sellers Of PMW | Related Party | Loan | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 8% | 8% |
Loan outstanding | $ 2,500 | $ 2,500 |
Note Payable to the Sellers of Kinetic | Related Party | Loan | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 7% | 7% |
Loan outstanding | $ 3,000 | $ 3,000 |
Related Party Seller Notes - Fu
Related Party Seller Notes - Future Minimum of Seller Notes (Details) - Seller Notes - Loan $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2026 | $ 500 |
2027 | 3,500 |
2028 | 35,672 |
Net amount | $ 39,672 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Class Of Stock [Line Items] | |||
Treasury stock (in shares) | 664,409 | 660,063 | |
Repurchase of common stock (in shares) | 4,346 | 24,710 | |
Payment for repurchase of common stock | $ 106,532 | $ 622,000 | |
Treasury stock market share price (in usd per share) | $ 24.51 | $ 25.16 | |
Series E Convertible Preferred Stock | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 47,840 | 47,840 | 47,840 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock Options and Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation expense | $ 50,000 | $ 0 |
Employee Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 0 | |
2014 Omnibus Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 300,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Number of Shares | ||||
Outstanding, beginning balance (in shares) | 53,750 | 87,500 | 87,500 | |
Outstanding, ending balance (in shares) | 53,750 | 87,500 | 53,750 | 87,500 |
Exercisable (in shares) | 53,750 | 87,500 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning balance (in usd per share) | $ 21.51 | $ 18.81 | $ 18.81 | |
Outstanding, ending balance (in usd per share) | 21.51 | 18.81 | $ 21.51 | $ 18.81 |
Exercisable (in usd per share) | $ 21.51 | $ 18.81 | ||
Weighted Average Remaining Contractual Life | ||||
Outstanding, weighted average remaining contractual life | 1 year 3 months 14 days | 6 months 7 days | 1 year 6 months 14 days | 9 months 10 days |
Exercisable, weighted average remaining contractual life | 1 year 3 months 14 days | 6 months 7 days | ||
Outstanding, intrinsic value | $ 450 | $ 1,201 | $ 540 | $ 771 |
Exercisable, intrinsic value | $ 450 | $ 1,201 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Basic | ||
Net (loss) income | $ (682) | $ 1,844 |
Less: preferred stock dividends | 0 | 0 |
Net (loss) income applicable to common stock | $ (682) | $ 1,844 |
Weighted average common shares outstanding (in shares) | 3,163,541 | 3,059,035 |
Basic (loss) earnings per share (in usd per share) | $ (0.22) | $ 0.60 |
Diluted | ||
Net (loss) income applicable to common stock | $ (682) | $ 1,844 |
Add: preferred stock dividends | 0 | 0 |
Net (loss) income applicable for diluted earnings per share | $ (682) | $ 1,844 |
Weighted average common shares outstanding (in shares) | 3,163,541 | 3,059,035 |
Add: Options (in shares) | 0 | 30,467 |
Weighted average common shares outstanding (in shares) | 3,163,541 | 3,089,741 |
Diluted (loss) earnings per share (in usd per share) | $ (0.22) | $ 0.60 |
Series E Preferred Stock | ||
Diluted | ||
Add: Series E Preferred Stock (in shares) | 0 | 239 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted (in shares) | 3,163,541 | 3,089,741 |
Pro Forma | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted (in shares) | 3,182,083 | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 17,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||||||||||
Dec. 31, 2023 USD ($) ft² lease $ / shares shares | Dec. 31, 2022 USD ($) shares | Sep. 30, 2023 USD ($) | Jul. 20, 2023 USD ($) loan | Apr. 01, 2023 | Mar. 31, 2023 | Jan. 19, 2023 USD ($) | Jan. 18, 2023 USD ($) | Jul. 01, 2022 option lease | Jun. 28, 2022 USD ($) | Jun. 23, 2022 USD ($) | Apr. 05, 2022 | Jul. 10, 2020 USD ($) | Apr. 09, 2020 USD ($) | Dec. 31, 2015 USD ($) | |
Related Party Transaction [Line Items] | |||||||||||||||
Repurchase of common stock (in shares) | shares | 4,346 | 24,710 | |||||||||||||
Related Party | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Capital stock outstanding (percent) | 48.90% | ||||||||||||||
Notes payable | $ 10,919 | $ 10,914 | |||||||||||||
Loan outstanding | 11,000 | 11,000 | |||||||||||||
Related Party | Spriggs Promissory Note | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest rate (percent) | 12% | 10% | |||||||||||||
Related Party | ICG Flooring Liquidators Note | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest rate (percent) | 12% | ||||||||||||||
Notes payable | 5,000 | ||||||||||||||
Loan outstanding | $ 5,000 | ||||||||||||||
Related Party | Note Payable to the Sellers of Kinetic | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt face amount | $ 3,000 | ||||||||||||||
Interest rate (percent) | 7% | ||||||||||||||
Notes payable | 3,000 | ||||||||||||||
Initial term | 5 years | ||||||||||||||
Extended initial term | 90 days | ||||||||||||||
Related Party | Note Payable to the Sellers of Flooring Liquidators | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt face amount | $ 34,000 | ||||||||||||||
Interest rate (percent) | 8.24% | ||||||||||||||
Notes payable | 34,200 | 33,500 | |||||||||||||
Initial term | 5 years | ||||||||||||||
Extended initial term | 90 days | ||||||||||||||
Debt fair value | $ 31,700 | ||||||||||||||
Debt unamortized discount | $ 2,300 | ||||||||||||||
Related Party | Note Payable To The Sellers Of PMW | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt face amount | $ 2,500 | ||||||||||||||
Interest rate (percent) | 8% | ||||||||||||||
Notes payable | $ 2,500 | 2,500 | |||||||||||||
Aggregate earn-out payments | $ 3,000 | ||||||||||||||
Seller financial loans | loan | 2 | ||||||||||||||
Related Party | Revolving Credit Facility | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest rate (percent) | 12% | 10% | |||||||||||||
Related Party | ICF Loan | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt face amount | $ 7,000 | ||||||||||||||
Related Party | Common Stock | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Repurchase of common stock (in shares) | shares | 25,000 | ||||||||||||||
Related Party | Jon Isaac | Common Stock | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Issuance of common stock (in shares) | shares | 219,177 | ||||||||||||||
Repurchase of common stock (in shares) | shares | 25,000 | ||||||||||||||
Exercise price of common stock (in usd per share) | $ / shares | $ 10 | ||||||||||||||
Related Party | ICG | Revolving Credit Facility | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Notes payable | $ 1,000 | 1,000 | |||||||||||||
Credit line maximum | $ 6,000 | $ 1,000 | |||||||||||||
Related Party | ICG | ICF Loan | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt face amount | $ 2,000 | ||||||||||||||
Interest rate (percent) | 12.50% | ||||||||||||||
Notes payable | $ 2,000 | 2,000 | |||||||||||||
Related Party | JanOne Inc | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Rentable square feet of office space | ft² | 9,900 | ||||||||||||||
Square feet of total office space | ft² | 16,500 | ||||||||||||||
Related Party | JanOne Inc | Rent Income | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Other operating income | $ 36,000 | $ 52,000 | |||||||||||||
Related Party | ARCA Recycling Inc | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Reserve for doubtful accounts | 690 | ||||||||||||||
Related Party | ARCA Recycling Inc | ARCA Note | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Broker-type fees (percent) | 0.05 | ||||||||||||||
Related Party | Spriggs Investments, LLC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Loan outstanding | 2,000 | 2,000 | |||||||||||||
Related Party | Spriggs Investments, LLC | Spriggs Promissory Note | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt face amount | $ 2,000 | ||||||||||||||
Balance outstanding | 2,000 | 2,000 | |||||||||||||
Related Party | Spriggs Investments, LLC | Spriggs Promissory Note II | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt face amount | $ 1,000 | ||||||||||||||
Interest rate (percent) | 12% | ||||||||||||||
Balance outstanding | $ 1,000 | $ 1,000 | |||||||||||||
Related Party | Spyglass Estate Planning, LLC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Lessee, renewal option | option | 2 | ||||||||||||||
Lessee, renewal term | 5 years | ||||||||||||||
Lessee, rental cancel notice | 90 days | ||||||||||||||
Related Party | Spyglass Estate Planning, LLC | Minimum | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Lease term | 24 months | ||||||||||||||
Related Party | Spyglass Estate Planning, LLC | Maximum | Better Backer | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Lessee, renewal option | option | 2 | ||||||||||||||
Lessee, renewal term | 5 years | ||||||||||||||
Lessee, operating lease, remaining lease term | 20 years | ||||||||||||||
Related Party | Spyglass Estate Planning, LLC | Building | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of leases | lease | 2 | ||||||||||||||
Lease term | 20 years | ||||||||||||||
Related Party | K2L Property Management | Flooring Liquidators | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of leases | lease | 5 | ||||||||||||||
Related Party | Railroad Investments | Flooring Liquidators | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of leases | lease | 1 | ||||||||||||||
Related Party | Mr Stephen Kellog And Ms Kimberly Hendrick | Flooring Liquidators | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of leases | lease | 2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Oct. 10, 2022 USD ($) | Sep. 07, 2022 defendant | Aug. 02, 2021 executive | Aug. 12, 2020 executive |
SEC Investigations | ||||
Loss Contingencies [Line Items] | ||||
Number of corporate executive officers | executive | 2 | 3 | ||
Number of defendants | defendant | 1 | |||
Indemnity Holdback Matter | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, merger agreement, indemnity holdback | $ 2,500 | |||
Loss contingency, damages sought, value | $ 4,500 | |||
Expected discovery period | 1 year |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 117,593 | $ 68,986 |
Total gross profit | 36,327 | 21,944 |
Total operating income | 3,541 | 4,567 |
Total depreciation and amortization | 4,295 | 2,651 |
Total interest expense | 4,163 | 2,047 |
Total (loss) net income before provision for income taxes | (906) | 2,459 |
Retail - Entertainment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 20,586 | 23,273 |
Total gross profit | 11,528 | 12,210 |
Total operating income | 3,143 | 3,664 |
Total depreciation and amortization | 266 | 311 |
Total interest expense | 164 | 154 |
Total (loss) net income before provision for income taxes | 3,055 | 3,538 |
Retail - Flooring | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 34,319 | 0 |
Total gross profit | 13,032 | 0 |
Total operating income | 90 | 0 |
Total depreciation and amortization | 1,352 | 0 |
Total interest expense | 1,200 | 0 |
Total (loss) net income before provision for income taxes | (1,628) | 0 |
Flooring Manufacturing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 29,245 | 26,432 |
Total gross profit | 6,422 | 4,661 |
Total operating income | 945 | 751 |
Total depreciation and amortization | 1,056 | 1,111 |
Total interest expense | 984 | 987 |
Total (loss) net income before provision for income taxes | (163) | (313) |
Steel Manufacturing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 33,354 | 17,981 |
Total gross profit | 5,262 | 4,392 |
Total operating income | 982 | 1,455 |
Total depreciation and amortization | 1,617 | 1,093 |
Total interest expense | 1,622 | 787 |
Total (loss) net income before provision for income taxes | (1,018) | 268 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 89 | 1,300 |
Total gross profit | 83 | 681 |
Total operating income | (1,619) | (1,303) |
Total depreciation and amortization | 4 | 136 |
Total interest expense | 193 | 119 |
Total (loss) net income before provision for income taxes | $ (1,152) | $ (1,034) |