QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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State or Other Jurisdiction of Incorporation or Organization
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I.R.S. Employer Identification No.
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Address of Principal Executive Offices
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Zip Code
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer ☐
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Accelerated filer ☐
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Smaller reporting company
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Emerging growth company
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Form 10-Q
Page No.
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PART I. FINANCIAL INFORMATION
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Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited)
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4
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5
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6
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7
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8
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9
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22
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Item 3 – Quantitative and Qualitative Disclosures about Market Risk
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28 |
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28
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PART II. OTHER INFORMATION
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29
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29
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29
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29
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29
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29
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30
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31
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April 29,
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January 28,
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April 30,
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||||||||||
2023
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2023
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2022
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||||||||||
ASSETS |
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||||||||||
CURRENT ASSETS
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||||||||||||
Cash and cash equivalents
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$
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$
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$
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||||||
Restricted cash
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Accounts receivable
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Merchandise inventory
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Prepaid expenses and other current assets
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Total current assets
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Restricted cash
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Fixed assets, net
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Operating lease right-of-use assets
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Cash surrender value
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Other assets
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TOTAL ASSETS
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$
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$
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$
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||||||
LIABILITIES
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||||||||||||
CURRENT LIABILITIES
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||||||||||||
Accounts payable
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$
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$
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$
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||||||
Short-term borrowings
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Accrued expenses and other current liabilities
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Current portion of operating lease liabilities
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Total current liabilities
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Operating lease liabilities
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Long-term debt
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Other long-term liabilities
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TOTAL LIABILITIES
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SHAREHOLDERS’ EQUITY
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Preferred stock ($
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Common stock ($
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Additional paid-in capital
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Treasury stock at cost (
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(
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)
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(
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)
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(
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)
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Accumulated other comprehensive gain (loss)
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(
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)
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Accumulated deficit
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(
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)
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(
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)
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(
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)
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TOTAL SHAREHOLDERS’ EQUITY
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(
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)
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(
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)
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$
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$
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$
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Thirteen Weeks Ended
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||||||||
April 29,
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April 30,
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|||||||
2023 |
2022
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Net revenue
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$
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$
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Cost of sales
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Gross profit
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Selling, general and administrative expenses
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Loss from operations
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(
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)
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(
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)
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Interest expense
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Loss from operations before income tax expense |
( |
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Income tax expense
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Net loss
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$
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(
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)
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$
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(
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)
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BASIC AND DILUTED INCOME PER SHARE:
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Basic and diluted loss per common share
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$
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(
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)
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$
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(
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)
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Weighted average number of common shares outstanding – basic and diluted
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Thirteen Weeks Ended
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April 29,
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April 30,
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|||||||
2023 |
2022
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Net loss
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$
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(
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)
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$
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(
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)
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Amortization of pension gain
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Comprehensive loss
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$
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(
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)
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$
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(
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)
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Thirteen Weeks Ended April 29, 2023
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Number of shares outstanding
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Accumulated |
Retained |
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Additional | Treasury | Other |
Earnings | |||||||||||||||||||||||||||||
Common |
Treasury | Common |
Paid-in |
Stock |
Comprehensive
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(Accumulated | Shareholders’ |
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Shares |
Shares | Stock |
Capital |
At Cost |
Loss |
Deficit) | Equity | |||||||||||||||||||||||||
Balance as of January 28, 2023
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(
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)
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$
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$
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$
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(
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)
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$
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$
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(
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)
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$
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(
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)
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Net Loss
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-
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-
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(
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)
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(
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)
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Amortization of unearned compensation/restricted stock amortization
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- | - | ||||||||||||||||||||||||||||||
Balance as of April 29, 2023
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$
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(
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)
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$
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$
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$
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(
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)
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$
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$
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(
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)
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$
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(
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)
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Thirteen Weeks Ended April 30, 2022
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Number of shares outstanding
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Accumulated |
Retained |
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Additional |
Treasury | Other | Earnings |
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Common | Treasury |
Common |
Paid-in | Stock | Comprehensive |
(Accumulated |
Shareholders’ | |||||||||||||||||||||||||
Shares | Shares | Stock |
Capital |
At Cost | Loss | Deficit) |
Equity | |||||||||||||||||||||||||
Balance as of January 29, 2022
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(
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)
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$
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$
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$
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(
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)
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$
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(
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)
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$
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(
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)
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$
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Net Loss
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-
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-
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(
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)
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(
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Issuance of warrants
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- | - | ||||||||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
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-
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-
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Balance as of April 30, 2022
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$
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(
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)
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$
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$
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$
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(
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)
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$
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(
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)
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$
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(
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)
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$ |
Thirteen Weeks Ended |
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April 29,
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April 30,
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|||||||
2023 |
2022 |
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OPERATING ACTIVITIES:
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Net income loss
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$
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(
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)
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$
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(
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)
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Adjustments to reconcile net loss to net cash used in operating activities:
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||||||||
Depreciation of fixed assets
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Stock-based compensation
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Interest on long-term debt
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Amortization of ROU asset
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Change in cash surrender value
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Changes in operating assets and liabilities that provide (use) cash:
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||||||||
Accounts receivable
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(
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)
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(
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)
|
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Merchandise inventory
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(
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)
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(
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)
|
||||
Prepaid expenses and other current assets
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||||||
Other long-term assets
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Accounts payable
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||||||
Accrued expenses and other current liabilities
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(
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)
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(
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)
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||||
Other long-term liabilities
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(
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)
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(
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)
|
||||
Net cash used in operating activities
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(
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)
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(
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)
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||||
INVESTING ACTIVITIES:
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Purchases of fixed assets
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( |
) | ( |
) | ||||
Net cash provided by (used in) investing activities
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( |
) | ( |
) | ||||
FINANCING ACTIVITIES:
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||||||||
Proceeds from short term borrowings
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||||||||
Proceeds from long term borrowings
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Net cash provided by financing activities
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Net decrease in cash, cash equivalents, and restricted cash
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(
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)
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(
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)
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||||
Cash, cash equivalents, and restricted cash, beginning of period
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||||||
Cash, cash equivalents, and restricted cash, end of period
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$
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$
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||||
Supplemental disclosures and non-cash investing and financing activities: |
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Interest paid |
$ | $ | ||||||
Warrants issued with debt |
•
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We are partner obsessed. Our customers are our partners. Every decision is focused on building mutually beneficial relationships that deliver results.
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•
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We are insights driven. We make data actionable. Our curiosity drives us to discover opportunities early and often.
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•
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We create simplicity. We challenge the status quo. We take the complicated and simplify it.
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•
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We take ownership. We make things happen. We hold ourselves accountable and have a bias for action.
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•
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We empower each other. We welcome and learn from diverse experiences. Our empathy ignites innovation and empowers meaningful change.
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April 29,
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January 28,
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April 30,
|
||||||||||
2023 | 2023 | 2022 |
||||||||||
Cash and cash equivalents
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$
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$
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$
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||||||
Restricted cash
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|||||||||
Total cash, cash equivalents and restricted cash
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$
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$
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$
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Employee Stock Award Plans |
||||||||||||||||||||
Number of
Shares
Subject To
Option
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Weighted
Average
Exercise
Price
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Weighted
Average
Remaining
Contractual
Term
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Other
Share
Awards (1)
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Weighted
Average
Grant Fair
Value
|
||||||||||||||||
Balance January 28, 2023
|
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$
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$ | |||||||||||||||
Granted
|
|
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-
|
|||||||||||||||||
Forfeited
|
|
|
-
|
|||||||||||||||||
Canceled
|
|
|
-
|
|||||||||||||||||
Exercised
|
|
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-
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|||||||||||||||||
Balance April 29, 2023
|
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$
|
|
|
$ | |||||||||||||||
Exercisable April 29, 2023
|
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$
|
|
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$ |
Exercise
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Number
|
|||||
Price
|
Outstanding
|
|||||
$
|
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|
||||
$
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|
||||
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Thirteen Weeks Ended
|
||||||||
(amounts in thousands)
|
April 29,
|
April 30,
|
||||||
2023 | 2022 | |||||||
|
$
|
|
$
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|
||||
Net periodic pension cost
|
$
|
|
$
|
|
• |
We are partner obsessed. Our customers are our partners. Every decision is focused on building mutually beneficial relationships that deliver results.
|
• |
We are insights driven. We make data actionable. Our curiosity drives us to discover opportunities early and often.
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• |
We create simplicity. We challenge the status quo. We take the complicated and simplify it.
|
• |
We take ownership. We make things happen. We hold ourselves accountable and have a bias for action.
|
• |
We empower each other. We welcome and learn from diverse experiences. Our empathy ignites innovation and empowers meaningful change.
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Thirteen weeks ended
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Change
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|||||||||||||||||||||||
April 29, 2023
|
April 30, 2022
|
$ |
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%
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||||||||||||||||||||
Amazon US
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$
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31,676
|
96.2
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%
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$
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29,620
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93.2
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%
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$
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2,056
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6.9
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%
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||||||||||||
Amazon International
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503
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1.5
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%
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1,287
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4.0
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%
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(784
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)
|
-60.9
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%
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Walmart, Target & other marketplaces
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476
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1.4
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%
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430
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1.4
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%
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46
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10.7
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%
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|||||||||||||||
Subtotal Retail as a Service
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32,655
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99.2
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%
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31,337
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98.6
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%
|
1,318
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4.2
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%
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|||||||||||||||
Subscriptions
|
277
|
0.8
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%
|
454
|
1.4
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%
|
(177
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)
|
-39.0
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%
|
||||||||||||||
Net revenue
|
$
|
32,932
|
100.0
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%
|
$
|
31,791
|
100.0
|
%
|
$
|
1,141
|
3.6
|
%
|
Thirteen Weeks Ended
|
Change
|
|||||||||||||||
(amounts in thousands)
|
April 29,
2023
|
April 30,
2022
|
$ |
|
%
|
|||||||||||
Merchandise margin
|
$
|
13,309
|
$
|
14,046
|
$
|
(737
|
)
|
(5.2
|
)%
|
|||||||
% of net revenue
|
40.4
|
%
|
44.2
|
%
|
(3.8
|
)%
|
||||||||||
Fulfillment fees
|
(4,112
|
)
|
(4,568
|
)
|
(456
|
)
|
(10.0
|
)%
|
||||||||
Warehousing and freight
|
(1,744
|
)
|
(2,627
|
)
|
(883
|
)
|
(33.6
|
)%
|
||||||||
Gross profit
|
$
|
7,453
|
$
|
6,851
|
$
|
602
|
8.8
|
%
|
||||||||
% of net revenue
|
22.6
|
%
|
21.6
|
%
|
Thirteen weeks ended
|
Change
|
|||||||||||||||
April 29,
2023
|
April 30,
2023
|
$ |
|
%
|
||||||||||||
Selling expenses
|
$
|
4,631
|
$
|
4,601
|
$
|
30
|
0.7
|
%
|
||||||||
General and administrative expenses
|
4,078
|
5,916
|
(1,838
|
)
|
-31.1
|
%
|
||||||||||
SG&A Expenses
|
$
|
8,709
|
$
|
10,517
|
$
|
(1,808
|
)
|
-17.2
|
%
|
|||||||
As a % of total revenue
|
27.4
|
%
|
33.1
|
%
|
As of or for the
Thirteen Weeks Ended
|
Change
|
|||||||||||
(amounts in thousands)
|
April 29,
2023
|
April 30,
2022
|
$ |
|||||||||
Operating Cash Flows
|
$
|
(763
|
)
|
$
|
(5,820
|
)
|
$
|
5,057
|
||||
Investing Cash Flows
|
(103
|
)
|
(399
|
)
|
296
|
|||||||
Financing Cash Flows
|
482
|
5,542
|
(5,060
|
)
|
||||||||
Capital Expenditures(1)
|
(103
|
)
|
(399
|
)
|
296
|
|||||||
Cash, Cash Equivalents, and Restricted Cash (2)
|
3,243
|
4,146
|
(903
|
)
|
||||||||
Merchandise Inventory
|
28,929
|
32,254
|
(3,325
|
)
|
||||||||
(1)Included in Investing Cash Flows
|
||||||||||||
(2)Cash and cash equivalents per condensed consolidated balance sheets
|
$
|
514
|
$
|
828
|
||||||||
Add: restricted cash
|
2,729
|
3,318
|
||||||||||
Cash, cash equivalents, and restricted cash
|
$
|
3,243
|
$
|
4,146
|
Exhibit No.
|
Description
|
|
Amendment No. 5 to Loan and Security Agreement
|
||
Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101.INS
|
XBRL Instance Document (furnished herewith)
|
|
101.SCH
|
XBRL Taxonomy Extension Schema (furnished herewith)
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase (furnished herewith)
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase (furnished herewith)
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase (furnished herewith)
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase (furnished herewith)
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
KASPIEN HOLDINGS INC.
|
||
June 13, 2023
|
By: /s/ Brock Kowalchuk
|
|
Brock Kowalchuk
|
||
Principal Executive Officer
|
||
(Principal Executive Officer)
|
||
June 13, 2023
|
By: /s/ Edwin Sapienza
|
|
Edwin Sapienza
|
||
Chief Financial Officer
|
||
(Principal and Chief Accounting Officer)
|