|
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
New York
|
|
14-1541629
|
State or Other Jurisdiction of Incorporation or Organization
|
|
I.R.S. Employer Identification No.
|
|
|
|
2818 N. Sullivan Rd. Ste 30 |
|
|
Spokane, WA 99216
|
|
99216
|
Address of Principal Executive Offices
|
|
Zip Code
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.01 par value per share
|
KSPN
|
NASDAQ Capital Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☒
|
Smaller reporting company ☒
|
Emerging growth company ☐
|
Form 10-Q
Page No.
|
||
|
||
PART I. FINANCIAL INFORMATION
|
||
|
|
|
3 | ||
|
|
|
|
3 | |
|
|
|
|
4 | |
|
|
|
|
5 | |
|
|
|
|
6 | |
|
|
|
|
7 | |
|
|
|
|
8 | |
|
|
|
25 | ||
|
|
|
32
|
||
|
|
|
32
|
||
|
|
|
PART II. OTHER INFORMATION
|
||
|
|
|
32
|
||
|
|
|
33
|
||
|
|
|
33
|
||
|
|
|
33
|
||
|
|
|
33
|
||
|
|
|
33
|
||
|
|
|
33
|
||
|
|
|
35
|
Thirteen Weeks Ended
|
Twenty-six Weeks Ended
|
|||||||||||||||
August 1,
2020
|
August 3,
2019
|
August 1,
2020
|
August 3,
2019
|
|||||||||||||
Net revenue
|
42,296
|
34,260
|
73,885
|
69,392
|
||||||||||||
Cost of sales
|
37,873
|
31,173
|
66,151
|
63,528
|
||||||||||||
Gross profit
|
4,423
|
3,087
|
7,734
|
5,864
|
||||||||||||
Selling, general and administrative expenses
|
4,916
|
6,666
|
13,406
|
13,644
|
||||||||||||
Loss from continuing operations
|
(493
|
)
|
(3,579
|
)
|
(5,672
|
)
|
(7,780
|
)
|
||||||||
Interest expense
|
406
|
172
|
634
|
308
|
||||||||||||
Loss from continuing operations before income tax benefit
|
(899
|
)
|
(3,751
|
)
|
(6,306
|
)
|
(8,088
|
)
|
||||||||
Income tax expense
|
-
|
7
|
-
|
16
|
||||||||||||
Loss from continued operations
|
(899
|
)
|
(3,758
|
)
|
(6,306
|
)
|
(8,104
|
)
|
||||||||
Loss from fye business, net of tax
|
-
|
(4,370
|
)
|
-
|
(7,826
|
)
|
||||||||||
Net loss
|
(899
|
)
|
(8,128
|
)
|
(6,306
|
)
|
(15,930
|
)
|
||||||||
BASIC AND DILUTED LOSS PER SHARE:
|
||||||||||||||||
Basic and diluted loss per common share
|
$
|
(0.49
|
)
|
$
|
(4.48
|
)
|
$
|
(3.46
|
)
|
$
|
(8.78
|
)
|
||||
Weighted average number of common shares outstanding – basic and diluted
|
1,825
|
1,816
|
1,823
|
1,815
|
Thirteen Weeks Ended
|
Twenty-six
|
|||||||||||||||
August 1,
2020
|
August 3,
2019
|
August 1,
2020
|
August 3,
2019
|
|||||||||||||
Net loss
|
$
|
(899
|
)
|
$
|
(8,128
|
)
|
$
|
(6,306
|
)
|
$
|
(15,930
|
)
|
||||
Amortization of pension gain
|
1
|
5
|
2
|
10
|
||||||||||||
Comprehensive loss
|
$
|
(898
|
)
|
$
|
(8,123
|
)
|
$
|
(6,304
|
)
|
$
|
(15,920
|
)
|
|
Thirteen Weeks Ended August 1, 2020
|
|||||||||||||||||||||||||||||||
|
Number of shares outstanding
|
Common
Stock
|
Additional
Paid-in
Capital
|
Treasury
Stock
At Cost
|
Accumulated
Other
Comprehensive
Loss
|
Retained
Earnings
(Accumulated
Deficit)
|
Shareholders’
Equity
|
|||||||||||||||||||||||||
|
Common
Shares
|
Treasury
Shares
|
||||||||||||||||||||||||||||||
Balance as of May 2, 2020
|
3,236
|
(1,410
|
)
|
$
|
32
|
$
|
346,442
|
$
|
(230,169
|
)
|
$
|
(1,476
|
)
|
$
|
(114,378
|
)
|
$
|
451
|
||||||||||||||
Net Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(899
|
)
|
(899
|
)
|
||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
3
|
-
|
3
|
||||||||||||||||||||||||
Issuance of warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Vested restricted shares
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Common stock issued- Director grants
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
-
|
15
|
-
|
-
|
-
|
15
|
||||||||||||||||||||||||
Balance as of August 1, 2020
|
3,236
|
$
|
(1,410
|
)
|
$
|
32
|
$
|
346,457
|
$
|
(230,169
|
)
|
$
|
(1,473
|
)
|
$
|
(115,277
|
)
|
$
|
(430
|
)
|
|
Twenty-six Weeks Ended August 1, 2020
|
|||||||||||||||||||||||||||||||
|
Number of shares outstanding
|
Common
Stock
|
Additional
Paid-in
Capital
|
Treasury
Stock
At Cost
|
Accumulated
Other
Comprehensive
Loss
|
Retained
Earnings
(Accumulated
Deficit)
|
Shareholders’
Equity
|
|||||||||||||||||||||||||
|
Common
Shares
|
Treasury
Shares
|
||||||||||||||||||||||||||||||
Balance as of February 1, 2020
|
3,226
|
(1,409
|
)
|
$
|
32
|
$
|
345,102
|
$
|
(230,169
|
)
|
$
|
(1,479
|
)
|
$
|
(108,971
|
)
|
$
|
4,515
|
||||||||||||||
Net Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,306
|
)
|
(6,306
|
)
|
||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
6
|
-
|
6
|
||||||||||||||||||||||||
Issuance of warrants
|
-
|
-
|
-
|
836
|
-
|
-
|
-
|
836
|
||||||||||||||||||||||||
Vested restricted shares
|
4
|
(1
|
)
|
-
|
(9
|
)
|
-
|
-
|
-
|
(9
|
)
|
|||||||||||||||||||||
Common stock issued- Director grants
|
6
|
-
|
-
|
243
|
-
|
-
|
-
|
243
|
||||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
-
|
285
|
-
|
-
|
-
|
285
|
||||||||||||||||||||||||
Balance as of August 1, 2020
|
3,236
|
$
|
(1,410
|
)
|
$
|
32
|
$
|
346,457
|
$
|
(230,169
|
)
|
$
|
(1,473
|
)
|
$
|
(115,277
|
)
|
$
|
(430
|
)
|
|
Thirteen Weeks Ended August 3, 2019
|
|||||||||||||||||||||||||||||||
|
Number of shares outstanding
|
Common
Stock
|
Additional
Paid-in
Capital
|
Treasury
Stock
At Cost
|
Accumulated
Other
Comprehensive
Loss
|
Accumulated
Deficit
|
Shareholders’
Equity
|
|||||||||||||||||||||||||
|
Common
Shares
|
Treasury
Shares
|
||||||||||||||||||||||||||||||
Balance as of May 4, 2019
|
3,222
|
(1,409
|
)
|
$
|
32
|
$
|
344,905
|
$
|
(230,166
|
)
|
$
|
(730
|
)
|
$
|
(58,029
|
)
|
$
|
56,012
|
||||||||||||||
Net Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,128
|
)
|
(8,128
|
)
|
||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
5
|
-
|
5
|
||||||||||||||||||||||||
Vested restricted shares
|
2
|
-
|
-
|
3
|
(2
|
)
|
-
|
-
|
1
|
|||||||||||||||||||||||
Amortization of unearned compensation/restricted stock amortization
|
-
|
-
|
-
|
75
|
-
|
-
|
-
|
75
|
||||||||||||||||||||||||
Balance as of August 3, 2019
|
3,224
|
(1,409
|
)
|
$
|
32
|
$
|
344,983
|
$
|
(230,168
|
)
|
$
|
(725
|
)
|
$
|
(66,157
|
)
|
$
|
47,965
|
|
Twenty-six Weeks Ended August 3, 2019
|
|||||||||||||||||||||||||||||||
|
Number of shares outstanding
|
Common
Stock
|
Additional
Paid-in
Capital
|
Treasury
Stock
At Cost
|
Accumulated
Other
Comprehensive
Loss
|
Accumulated
Deficit
|
Shareholders’
Equity
|
|||||||||||||||||||||||||
|
Common
Shares
|
Treasury
Shares
|
||||||||||||||||||||||||||||||
Balance as of February 2, 2019
|
3,222
|
(1,409
|
)
|
$
|
32
|
$
|
344,826
|
$
|
(230,166
|
)
|
$
|
(735
|
)
|
$
|
(50,227
|
)
|
$
|
63,730
|
||||||||||||||
Net Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(15,930
|
)
|
(15,930
|
)
|
||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
10
|
-
|
10
|
||||||||||||||||||||||||
Vested restricted shares
|
2
|
-
|
-
|
3
|
(2
|
)
|
-
|
-
|
1
|
|||||||||||||||||||||||
Common stock issued-new grants
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Balance as of August 3, 2019
|
3,224
|
(1,409
|
)
|
$
|
32
|
$
|
344,983
|
$
|
(230,168
|
)
|
$
|
(725
|
)
|
$
|
(66,157
|
)
|
$
|
47,965
|
Twenty-Six Weeks Ended
|
||||||||
August 1,
2020
|
August 3,
2019 (1)
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income loss
|
$
|
(6,306
|
)
|
$
|
(15,930
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation of fixed assets
|
493
|
1,460
|
||||||
Amortization of intangible assets
|
514
|
572
|
||||||
Stock-based compensation
|
285
|
154
|
||||||
Loss on disposal of fixed assets
|
-
|
5
|
||||||
Write down investment
|
-
|
500
|
||||||
Amortization of ROU asset
|
281
|
|||||||
Change in cash surrender value
|
(58
|
)
|
(175
|
)
|
||||
Changes in operating assets and liabilities that provide (use) cash:
|
||||||||
Accounts receivable
|
1,901
|
102
|
||||||
Merchandise inventory
|
(2,739
|
)
|
5,057
|
|||||
Prepaid expenses and other current assets
|
2,054
|
1,267
|
||||||
Other long-term assets
|
-
|
3,472
|
||||||
Accounts payable
|
1,978
|
(5,285
|
)
|
|||||
Accrued expenses and other current liabilities
|
(6,242
|
)
|
(995
|
)
|
||||
Deferred revenue
|
-
|
(981
|
)
|
|||||
Other long-term liabilities
|
(49
|
)
|
(4,185
|
)
|
||||
Net cash used in operating activities
|
(7,888
|
)
|
(14,962
|
)
|
||||
INVESTING ACTIVITIES:
|
||||||||
Purchases of fixed assets
|
(588
|
)
|
(1,541
|
)
|
||||
Proceeds from sale of fye business
|
11,779
|
-
|
||||||
Capital distribution from joint venture
|
-
|
121
|
||||||
Net cash provided by (used in) investing activities
|
11,191
|
(1,420
|
)
|
|||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from short term borrowings
|
2,151
|
12,086
|
||||||
Proceeds from long term borrowings
|
4,401
|
-
|
||||||
Proceeds from issuance of warrants
|
836
|
-
|
||||||
Proceeds from PPP loan
|
2,018
|
-
|
||||||
Issuance of director deferred shares and RSUs
|
237
|
-
|
||||||
Payment of short term borrowings
|
(13,149
|
)
|
-
|
|||||
Net cash provided by (used in) financing activities
|
(3,506
|
)
|
12,086
|
|||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
(203
|
)
|
(4,296
|
)
|
||||
Cash, cash equivalents, and restricted cash, beginning of period
|
8,852
|
14,226
|
||||||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
8,649
|
$
|
9,930
|
(1) |
The cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statements of Cash Flows. See footnote 3.
|
•
|
Partner Obsession
|
•
|
Results
|
•
|
Insights Driven |
•
|
Ownership |
•
|
Simplicity |
•
|
Diversity and Teamwork |
•
|
Innovation |
|
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
(In thousands)
|
August 1,
2020
|
August 3,
2019
|
August 1,
2020
|
August 3,
2019
|
||||||||||||
Net revenue
|
$
|
—
|
$
|
41,744
|
$
|
—
|
$
|
86,762
|
||||||||
Cost of goods sold
|
—
|
24,731
|
—
|
52,247
|
||||||||||||
Selling, general and administrative expenses
|
—
|
20,835
|
—
|
41,777
|
||||||||||||
Interest expense
|
—
|
22
|
—
|
18
|
||||||||||||
Other expense
|
—
|
462
|
—
|
419
|
||||||||||||
Loss from discontinued operations before income taxes
|
—
|
(4,306
|
)
|
—
|
(7,699
|
)
|
||||||||||
Income tax expense
|
—
|
64
|
—
|
127
|
||||||||||||
Loss from discontinued operations, net of tax
|
$
|
—
|
$
|
(4,370
|
)
|
$
|
—
|
$
|
(7,826
|
)
|
(In thousands)
|
August 1, 2020
|
February 1, 2020
|
August 3, 2019
|
|||||||||
Cash
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Accounts receivable, net
|
—
|
62
|
2,957
|
|||||||||
Inventories
|
—
|
50,122
|
69,600
|
|||||||||
Other current assets
|
—
|
1,005
|
3,659
|
|||||||||
Property, plant and equipment, net
|
—
|
—
|
5,707
|
|||||||||
Operating lease right-to-use asset
|
—
|
—
|
21,118
|
|||||||||
Other assets
|
—
|
—
|
1,080
|
|||||||||
Total assets of discontinued operations
|
$
|
—
|
$
|
51,189
|
$
|
104,121
|
||||||
Accounts payable
|
$
|
—
|
$
|
9,769
|
19,759
|
|||||||
Accrued liabilities
|
—
|
779
|
3,533
|
|||||||||
Deferred revenue
|
—
|
6,764
|
5,974
|
|||||||||
Current portion of lease liabilities
|
—
|
8,976
|
8,755
|
|||||||||
Operating lease liabilities
|
—
|
11,059
|
16,070
|
|||||||||
Other liabilities
|
—
|
2,063
|
2,113
|
|||||||||
Total liabilities of discontinued operations (a)
|
$
|
—
|
$
|
39,410
|
$
|
56,204
|
Twenty-six Weeks Ended
|
||||||||
(In thousands)
|
August 1, 2020
|
August 3, 2019
|
||||||
Net cash used in operating activities
|
$
|
—
|
$
|
(11,555
|
)
|
|||
Net cash provided by(used) in investing activities
|
—
|
(477
|
)
|
|||||
Depreciation and amortization
|
—
|
1,188
|
||||||
Purchases of fixed assets
|
—
|
(1,068
|
)
|
Assets sold
|
||||
Inventory
|
$
|
50,122
|
||
Accounts receivable
|
62
|
|||
Prepaid expenses and other current assets
|
654
|
|||
Other assets
|
351
|
|||
fye business assets sold
|
$
|
51,189
|
||
Less liabilities assumed:
|
||||
Accounts payable
|
(9,769
|
)
|
||
Deferred revenue
|
(6,764
|
)
|
||
Accrued expenses and other current liabilities
|
(779
|
)
|
||
Other long-term liabilities
|
(2,063
|
)
|
||
Operating lease liabilities
|
(20,035
|
)
|
||
fye business liabilities assumed
|
$
|
39,410
|
||
Net proceeds
|
$
|
11,779
|
August 1, 2020
|
||||||||||||||||||||
Weighted
Average
Amortization
Period
(in months) |
Original
Gross
Carrying
Amount
|
Accumulated
Impairment
|
Accumulated
Amortization
|
Net Carrying
Amount
|
||||||||||||||||
Vendor relationships
|
120
|
$
|
19,100
|
$
|
14,587
|
$
|
4,513
|
$
|
-
|
|||||||||||
Technology
|
60
|
6,700
|
2,587
|
3,660
|
453
|
|||||||||||||||
Trade names and trademarks
|
60
|
3,200
|
-
|
2,407
|
793
|
|||||||||||||||
$
|
29,000
|
$
|
17,174
|
$
|
10,580
|
$
|
1,246
|
(amounts in thousands)
|
February 1,
2020 |
Impairment
Expense
|
Amortization
Expense
|
August 1,
2020 |
||||||||||||
Amortized intangible assets:
|
||||||||||||||||
Technology
|
$
|
647
|
$
|
-
|
$
|
194
|
$
|
453
|
||||||||
Trade names and trademarks
|
1,113
|
-
|
320
|
793
|
||||||||||||
Net amortized intangible assets
|
$
|
1,760
|
$
|
-
|
$
|
514
|
$
|
1,246
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
(amounts in thousands)
|
August 1,
2020 |
August 3,
2019
|
August 1,
2020 |
August 3,
2019
|
||||||||||||
Amortized intangible assets:
|
||||||||||||||||
Vendor relationships
|
$
|
-
|
$
|
29
|
$
|
-
|
$
|
58
|
||||||||
Technology
|
97
|
97
|
194
|
194
|
||||||||||||
Trade names and trademarks
|
160
|
160
|
320
|
320
|
||||||||||||
Total amortization expense
|
$
|
257
|
$
|
286
|
$
|
514
|
$
|
572
|
Fiscal Year
|
Amortization
|
|||
2020
|
$
|
514
|
||
2021
|
732
|
|||
2022
|
-
|
|||
2023
|
-
|
|||
2024
|
-
|
|||
Thereafter
|
-
|
August 1,
2020
|
February 1,
2020
|
August 3,
2019
|
||||||||||
Cash and cash equivalents
|
$
|
3,337
|
$
|
2,977
|
$
|
3,635
|
||||||
Restricted cash
|
5,312
|
5,875
|
6,295
|
|||||||||
Total cash, cash equivalents and restricted cash
|
$
|
8,649
|
$
|
8,852
|
$
|
9,930
|
Employee and Director Stock Award Plans
|
||||||||||||||||||||
Number
of Shares
Subject To
Option
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Other
Share
Awards
(1)
|
Weighted
Average
Grant Fair
Value
|
||||||||||||||||
Balance February 1, 2020
|
129,196
|
$
|
52.11
|
5.8
|
9,945
|
$
|
36.75
|
|||||||||||||
Granted
|
86,562
|
6.27
|
9.9
|
-
|
-
|
|||||||||||||||
Canceled
|
(82,297
|
)
|
54.92
|
-
|
-
|
-
|
||||||||||||||
Exercised
|
-
|
-
|
-
|
(9,945
|
)
|
36.75
|
||||||||||||||
Balance August 1, 2020
|
133,461
|
$
|
20.64
|
7.6
|
-
|
$
|
-
|
|||||||||||||
Exercisable August 1, 2020
|
55,900
|
$
|
47.18
|
3.3
|
-
|
$
|
-
|
|
(1) |
Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers.
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
(amounts in thousands)
|
August 1,
2020
|
August 3,
2019
|
August 1,
2020
|
August 3,
2019
|
||||||||||||
Service cost
|
$
|
-
|
$
|
14
|
$
|
-
|
$
|
28
|
||||||||
Interest cost
|
89
|
142
|
178
|
284
|
||||||||||||
Amortization of net gain(1)
|
(3
|
)
|
(5
|
)
|
(6
|
)
|
(10
|
)
|
||||||||
Net periodic pension cost
|
$
|
86
|
$
|
151
|
$
|
172
|
$
|
302
|
(1)
|
The amortization of net gain is related to a director retirement plan previously provided by the Company.
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
(in thousands, except per share amounts)
|
August 1,
2020
|
August 3,
2019
|
August 1,
2020
|
August 3,
2019
|
||||||||||||
Loss from continuing operations
|
$
|
(899
|
)
|
$
|
(3,758
|
)
|
$
|
(6,306
|
)
|
$
|
(8,104
|
)
|
||||
Basic and diluted loss per common share from continuing operations
|
$
|
(0.49
|
)
|
$
|
(2.07
|
)
|
$
|
(3.46
|
)
|
$
|
(4.47
|
)
|
||||
Loss from discontinued operations
|
$
|
-
|
$
|
(4,370
|
)
|
$
|
-
|
$
|
(7,826
|
)
|
||||||
Basic and diluted loss per common share from discontinued operations
|
$
|
-
|
$
|
(2.41
|
)
|
$
|
-
|
$
|
(4.31
|
)
|
||||||
Net loss
|
$
|
(899
|
)
|
$
|
(8,128
|
)
|
$
|
(6,306
|
)
|
$
|
(15,930
|
)
|
||||
Basic and diluted loss per common share
|
$
|
(0.49
|
)
|
$
|
(4.48
|
)
|
$
|
(3.46
|
)
|
$
|
(8.78
|
)
|
||||
Weighted average number of common shares outstanding – basic and diluted
|
1,825
|
1,816
|
1,823
|
1,815
|
• |
Partner Obsession
|
• |
Results
|
• |
Insights Driven
|
• |
Ownership
|
• |
Simplicity
|
• |
Diversity and Teamwork
|
• |
Innovation
|
Thirteen Weeks Ended
|
Change
|
Twenty-Six Weeks Ended
|
Change
|
|||||||||||||||||||||||||||||
(amounts in thousands)
|
August 1,
2020
|
August 3,
2019
|
$ |
|
%
|
August 1,
2020
|
August 3,
2019
|
$ |
|
%
|
||||||||||||||||||||||
Net Revenue
|
$
|
42,296
|
$
|
34,260
|
$
|
8,036
|
23.5
|
%
|
$
|
73,885
|
$
|
69,392
|
$
|
4,493
|
6.5
|
%
|
||||||||||||||||
Gross profit
|
4,423
|
3,087
|
1,336
|
43.3
|
%
|
7,734
|
5,864
|
1,870
|
31.9
|
%
|
||||||||||||||||||||||
% to sales
|
10.5
|
%
|
9.0
|
%
|
10.5
|
%
|
8.5
|
%
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||||||||||
August 1,
2020
|
August 3,
2019
|
Change
|
August 1,
2020
|
August 3,
2019
|
Change
|
|||||||||||||||||||
Amazon US
|
94.7
|
%
|
96.4
|
%
|
-1.7
|
%
|
94.8
|
%
|
96.1
|
%
|
-1.3
|
%
|
||||||||||||
Amazon International
|
4.2
|
%
|
3.0
|
%
|
1.2
|
%
|
4.1
|
%
|
3.2
|
%
|
0.9
|
%
|
||||||||||||
Walmart and other Marketplaces
|
0.4
|
%
|
0.2
|
%
|
0.2
|
%
|
0.5
|
%
|
0.3
|
%
|
0.1
|
%
|
||||||||||||
Subtotal Retail
|
99.3
|
%
|
99.6
|
%
|
-0.3
|
%
|
99.4
|
%
|
99.6
|
%
|
-0.3
|
%
|
||||||||||||
Subscriptions and other
|
0.7
|
%
|
0.4
|
%
|
0.3
|
%
|
0.6
|
%
|
0.4
|
%
|
0.3
|
%
|
||||||||||||
Total
|
100.0
|
%
|
100.0
|
%
|
0.0
|
%
|
100.0
|
%
|
100.0
|
%
|
0.0
|
%
|
Thirteen Weeks Ended
|
Change
|
Twenty-Six Weeks Ended
|
Change
|
|||||||||||||||||||||||||||||||||
(amounts in thousands)
|
August 1,
2020
|
August 3,
2019
|
$
|
|
%
|
August 1,
2020
|
August 3,
2019
|
$ |
|
%
|
||||||||||||||||||||||||||
Kaspien SG&A
|
$
|
4,106
|
$
|
3,833
|
$
|
273
|
7.1
|
%
|
$
|
8,197
|
$
|
8,084
|
$
|
113
|
1.4
|
%
|
||||||||||||||||||||
Corporate SG&A expenses
|
810
|
2,833
|
(1)
|
(2,023
|
)
|
-71.4
|
%
|
5,209
|
5,560
|
(1)
|
(351
|
)
|
-6.3
|
%
|
||||||||||||||||||||||
Total SG&A expenses
|
$
|
4,916
|
$
|
6,666
|
$
|
(1,750
|
)
|
-26.3
|
%
|
$
|
13,406
|
$
|
13,644
|
$
|
(238
|
)
|
-1.7
|
%
|
||||||||||||||||||
As a % of total revenue
|
11.6
|
%
|
19.5
|
%
|
18.1
|
%
|
19.7
|
%
|
As of or for the
Twenty-Six Weeks Ended
|
Change
|
|||||||||||||||
(amounts in thousands)
|
August 1,
|
August 3,
2019
|
|
$
|
||||||||||||
Operating Cash Flows
|
$
|
(8,087
|
)
|
$
|
(14,962
|
)
|
$
|
6,875
|
||||||||
Investing Cash Flows
|
11,191
|
(1,420
|
)
|
12,611
|
||||||||||||
Financing Cash Flows
|
(3,307
|
)
|
12,086
|
(15,393
|
)
|
|||||||||||
Capital Expenditures
|
|
(1) |
|
(588
|
)
|
(1,541
|
)
|
953
|
||||||||
Cash, Cash Equivalents, and Restricted Cash
|
(2)
|
|
8,649
|
9,930
|
(1,281
|
)
|
||||||||||
Merchandise Inventory
|
20,576
|
20,185
|
391
|
|||||||||||||
(1)
|
Included in Investing Cash Flows
|
|||||||||||||||
(2)
|
Cash and cash equivalents per condensed consolidated balance sheets
|
$
|
3,337
|
$
|
3,635
|
|||||||||||
Add: restricted cash
|
5,312
|
6,295
|
||||||||||||||
Cash, cash equivalents, and restricted cash
|
$
|
8,649
|
$
|
9,930
|
(A) Exhibits -
|
|
||
Exhibit No.
|
Description
|
||
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)
|
September 15, 2020
|
By: /s/ Kunal Chopra
|
|
Kunal Chopra
|
|
Principal Executive Officer
|
|
(Principal Executive Officer)
|
September 15, 2020
|
By: /s/ Edwin Sapienza
|
|
Edwin Sapienza
|
|
|
Chief Financial Officer
|
|
(Principal and Chief Accounting Officer)
|
|
(1) |
I have reviewed this report on Form 10–Q of the Registrant;
|
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
|
(4) |
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c. |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
|
d. |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
(5) |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
|
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report
financial information; and
|
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: September 15, 2020
|
|
|
/s/ Kunal Chopra
|
||
Kunal Chopra
|
||
Principal Executive Officer
|
||
Kaspien Holdings Inc.
|
|
(1) |
I have reviewed this report on Form 10–Q of the Registrant;
|
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
|
(4) |
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c. |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
|
d. |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
(5) |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
|
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report
financial information; and
|
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: September 15, 2020
|
|
|
/s/ Edwin Sapienza
|
||
Edwin Sapienza
|
||
Chief Financial Officer
|
||
Kaspien Holdings Inc.
|
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Kunal Chopra
|
/s/ Edwin Sapienza
|
||
Kunal Chopra
|
Edwin Sapienza
|
||
Principal Executive Officer
|
Chief Financial Officer
|
||
September 15, 2020
|
September 15, 2020
|