Bassett Furniture Swings to Profit on Strong Sales Growth

TL;DR

**BSET is back in the black, signaling a potential buy as the furniture market rebounds.**

AI Summary

Bassett Furniture Industries Inc. (BSET) reported a significant turnaround in its financial performance for the quarter and nine months ended August 30, 2025. For the quarter, net income surged to $801 thousand, a substantial improvement from a net loss of $4,505 thousand in the prior-year quarter. This was driven by a 5.9% increase in net sales to $80,103 thousand from $75,619 thousand, and a notable rise in gross profit to $44,994 thousand from $40,093 thousand. Operating income also swung to a positive $593 thousand from an operating loss of $6,357 thousand. For the nine-month period, net income reached $4,573 thousand, reversing a net loss of $12,899 thousand in the comparable prior period. Net sales for the nine months slightly increased to $246,613 thousand from $245,583 thousand, while gross profit improved to $138,733 thousand from $131,720 thousand. The company's cash and cash equivalents decreased to $34,413 thousand at August 30, 2025, from $39,551 thousand at November 30, 2024, primarily due to cash used in financing activities, including $5,210 thousand in cash dividends. Inventories increased to $61,459 thousand from $54,965 thousand, reflecting an $8,220 thousand use of cash in operating activities for inventory changes.

Why It Matters

This turnaround signals a potential recovery for Bassett Furniture, which is crucial for investors looking for stability and growth in the home furnishings sector. The positive net income and increased sales, especially in a competitive market, suggest effective operational adjustments and potentially stronger consumer demand for Bassett's products. For employees, this could mean greater job security and potential for growth. Customers might see continued investment in product development and service. In the broader market, Bassett's performance could indicate a broader rebound in discretionary consumer spending on home goods, impacting competitors like Ethan Allen Interiors and La-Z-Boy.

Risk Assessment

Risk Level: medium — While BSET reported positive net income, cash and cash equivalents decreased by $5,138 thousand during the nine months ended August 30, 2025, and inventories increased by $8,220 thousand, indicating potential working capital strain. The company also faces ongoing challenges in managing operating lease obligations, with long-term obligations still at $73,198 thousand.

Analyst Insight

Investors should consider BSET's improved profitability and sales growth as a positive indicator, but closely monitor inventory levels and cash flow from operations. A deeper dive into the drivers of inventory increase is warranted to ensure it's not a sign of slowing demand rather than strategic stocking. Consider a small position with a tight stop-loss.

Financial Highlights

debt To Equity

N/A

revenue

$80,103 thousand

operating Margin

0.74%

total Assets

$324,241 thousand

total Debt

N/A

net Income

$801 thousand

eps

$0.09

gross Margin

56.17%

cash Position

$34,413 thousand

revenue Growth

+5.9%

Revenue Breakdown

Key Numbers

• $801 thousand — Net income (quarter) (Swung from a $4,505 thousand net loss in prior-year quarter)
• $4,573 thousand — Net income (nine months) (Reversed a $12,899 thousand net loss in prior-year nine months)
• $80,103 thousand — Net sales (quarter) (Increased 5.9% from $75,619 thousand in prior-year quarter)
• $246,613 thousand — Net sales (nine months) (Slightly increased from $245,583 thousand in prior-year nine months)
• $593 thousand — Income from operations (quarter) (Swung from a $6,357 thousand loss in prior-year quarter)
• $5,545 thousand — Income from operations (nine months) (Swung from a $17,176 thousand loss in prior-year nine months)
• $34,413 thousand — Cash and cash equivalents (Decreased from $39,551 thousand at November 30, 2024)
• $61,459 thousand — Inventories (Increased from $54,965 thousand at November 30, 2024)
• $5,210 thousand — Cash dividends paid (Used in financing activities during the nine months ended August 30, 2025)
• 26.8% — Effective tax rate (For the three and nine months ended August 30, 2025)

Key Players & Entities

• BASSETT FURNITURE INDUSTRIES INC (company) — Registrant
• Bloomberg (company) — publisher
• SEC (regulator) — filing authority
• One Big Beautiful Bill Act (other) — new tax legislation
• Noa Home Inc. (company) — entity with deferred tax asset valuation allowance
• NASDAQ (other) — exchange where BSET is listed
• Ethan Allen Interiors (company) — competitor
• La-Z-Boy (company) — competitor

FAQ

Risk Factors

• Inventory Management [medium — operational]: Inventories increased by $6,494 thousand to $61,459 thousand as of August 30, 2025, from $54,965 thousand at November 30, 2024. This increase represents a $8,220 thousand use of cash in operating activities for inventory changes, indicating potential challenges in managing stock levels and sales velocity.
• Cash Position Decline [medium — financial]: Cash and cash equivalents decreased by $5,138 thousand to $34,413 thousand as of August 30, 2025, from $39,551 thousand at November 30, 2024. This reduction, primarily due to cash used in financing activities like $5,210 thousand in cash dividends, could impact the company's short-term liquidity.
• Lease Obligation Management [medium — operational]: Right of use assets under operating leases decreased by $13,037 thousand to $80,587 thousand as of August 30, 2025, from $93,624 thousand at November 30, 2024. Correspondingly, long-term lease obligations decreased by $15,200 thousand. While this shows a reduction in lease commitments, the significant ongoing obligations require careful management.
• Economic Sensitivity [medium — market]: As a furniture retailer, the company's performance is sensitive to consumer spending and broader economic conditions. A downturn in the economy could negatively impact demand for its products.

Industry Context

The furniture industry is characterized by its cyclical nature, heavily influenced by consumer confidence, housing market trends, and disposable income. Competition is often intense, with players ranging from large manufacturers to smaller, specialized firms. Recent trends include a growing emphasis on e-commerce, sustainable materials, and customizable options. Supply chain disruptions and rising raw material costs remain persistent challenges for the sector.

Regulatory Implications

Bassett Furniture Industries operates under standard corporate regulations, including financial reporting requirements mandated by the SEC. Compliance with environmental regulations related to manufacturing processes and product safety standards are also critical. Changes in trade policies or tariffs could impact the cost of imported materials or finished goods, requiring careful monitoring.

What Investors Should Do

1. Monitor inventory levels and turnover ratios.
2. Analyze the sustainability of the operational turnaround.
3. Evaluate cash flow generation and dividend policy.
4. Track SG&A expense management.

Key Dates

• 2025-08-30: Quarter and Nine Months Ended — Reported significant turnaround with net income of $801 thousand for the quarter and $4,573 thousand for the nine months, reversing prior year losses.
• 2024-11-30: Fiscal Year End — Previous reporting period, used as a comparison point for current asset and liability balances.
• 2024-08-31: Prior Year Quarter and Nine Months Ended — Provided the comparative period for the current quarter's and nine months' financial performance, highlighting the substantial improvement.

Glossary

Operating Activities

Cash generated from or used in the normal day-to-day business operations of a company. (Shows the company's ability to generate cash from its core business, which improved significantly to $5,726 thousand in the nine months ended August 30, 2025, from a use of $2,323 thousand in the prior year period.)

Investing Activities

Cash flows related to the purchase or sale of long-term assets, such as property, plant, and equipment. (Indicates the company's investment in its future operational capacity. Net cash used in investing activities was $4,145 thousand for the nine months ended August 30, 2025.)

Financing Activities

Cash flows related to debt, equity, and dividends, reflecting how a company funds its operations and returns capital to shareholders. (Highlights the company's capital structure management. Net cash used in financing activities was $6,719 thousand for the nine months ended August 30, 2025, including $5,210 thousand in cash dividends.)

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products. (A key indicator of pricing strategy and production efficiency. Gross profit increased to $44,994 thousand for the quarter and $138,733 thousand for the nine months ended August 30, 2025.)

Operating Income (Loss)

Profitability from a company's core business operations before interest and taxes. (Measures the efficiency of a company's operations. BSET swung to an operating income of $593 thousand for the quarter and $5,545 thousand for the nine months ended August 30, 2025, from prior year losses.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Bassett Furniture Industries has demonstrated a significant financial recovery. Net sales for the quarter increased by 5.9% to $80,103 thousand, and for the nine months, they saw a slight increase to $246,613 thousand. Most notably, the company swung from substantial net losses to net income of $801 thousand for the quarter and $4,573 thousand for the nine months. Operating income also reversed from significant losses to positive figures. However, cash and cash equivalents have decreased, and inventory levels have risen, indicating areas that require continued management attention.

Key Financial Figures

• $5.00 — ange on which registered Common Stock ($5.00 par value) BSET NASDAQ Indicate b
• $250 — other CDs. This CD is in excess of the $250 Federal deposit insurance limit. 4. Ac

Filing Documents

• bset20250830_10q.htm (10-Q) — 1715KB
• ex_866449.htm (EX-31.A) — 13KB
• ex_866448.htm (EX-31.B) — 13KB
• ex_866447.htm (EX-32.A) — 6KB
• ex_866440.htm (EX-32.B) — 6KB
• 0001437749-25-030703.txt ( ) — 7380KB
• bset-20250830.xsd (EX-101.SCH) — 57KB
• bset-20250830_def.xml (EX-101.DEF) — 367KB
• bset-20250830_lab.xml (EX-101.LAB) — 292KB
• bset-20250830_pre.xml (EX-101.PRE) — 396KB
• bset-20250830_cal.xml (EX-101.CAL) — 50KB
• bset20250830_10q_htm.xml (XML) — 1422KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. Condensed Consolidated Financial Statements as of August 30, 2025 (unaudited) and November 30, 2024 and for the three and nine months ended August 30, 2025 (unaudited) and August 31, 2024 (unaudited) Condensed Consolidated Statements of Operations 3 Condensed Consolidated Statements of Comprehensive Income (Loss) 4 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 7 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 4.

Controls and Procedures

Controls and Procedures 31

- OTHER INFORMATION

PART II - OTHER INFORMATION 1.

Legal Proceedings

Legal Proceedings 32 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 32 3. Defaults Upon Senior Securities 32 5. Other Information 32 6. Exhibits 32 2 of 34

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE PERIODS ENDED AUGUST 30, 2025 AND AUGUST 31, 2024 – UNAUDITED (In thousands except per share data) Quarter Ended Nine Months Ended August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Net sales of furniture and accessories $ 80,103 $ 75,619 $ 246,613 $ 245,583 Cost of furniture and accessories sold 35,109 35,526 107,880 113,863 Gross profit 44,994 40,093 138,733 131,720 Selling, general and administrative expenses 44,401 45,210 133,188 142,141 Loss on contract abandonment - 1,240 - 1,240 Asset impairment charges - - - 5,515 Income (loss) from operations 593 ( 6,357 ) 5,545 ( 17,176 ) Interest income 472 692 1,552 2,075 Other income (loss), net 30 ( 109 ) ( 851 ) ( 489 ) Income (loss) before income taxes 1,095 ( 5,774 ) 6,246 ( 15,590 ) Income tax expense (benefit) 294 ( 1,269 ) 1,673 ( 2,691 ) Net income (loss) $ 801 $ ( 4,505 ) $ 4,573 $ ( 12,899 ) Basic earnings (loss) per share $ 0.09 $ ( 0.52 ) $ 0.53 $ ( 1.48 ) Diluted earnings (loss) per share $ 0.09 $ ( 0.52 ) $ 0.53 $ ( 1.48 ) Regular dividends per share $ 0.20 $ 0.20 $ 0.60 $ 0.54 The accompanying notes to condensed consolidated financial statements are an integral part of the condensed consolidated financial statements. 3 of 34

– FINANCIAL INFORMATION – CONTINUED

PART I – FINANCIAL INFORMATION – CONTINUED

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) FOR THE PERIODS ENDED AUGUST 30, 2025 AND AUGUST 31, 2024 – UNAUDITED (In thousands) Quarter Ended Nine Months Ended August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Net income (loss) $ 801 $ ( 4,505 ) $ 4,573 $ ( 12,899 ) Other comprehensive income (loss): Foreign currency translation adjustments - ( 32 ) - ( 266 ) Income taxes related to foreign currency translation adjustments - 8 - 68 Amortization associated with Long Term Cash Awards (LTCA) - 16 - 46 Income taxes related to LTCA - ( 4 ) - ( 12 ) Amortization associated with supplemental executive retirement defined benefit plan (SERP) ( 16 ) ( 5 ) ( 48 ) ( 16 ) Income taxes related to SERP 4 1 12 4 Other comprehensive loss, net of tax ( 12 ) ( 16 ) ( 36 ) ( 176 ) Total comprehensive income (loss) $ 789 $ ( 4,521 ) $ 4,537 $ ( 13,075 ) The accompanying notes to condensed consolidated financial statements are an integral part of the condensed consolidated financial statements. 4 of 34

– FINANCIAL INFORMATION – CONTINUED

PART I – FINANCIAL INFORMATION – CONTINUED

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AUGUST 30, 2025 AND NOVEMBER 30, 2024 (In thousands) (Unaudited) August 30, 2025 November 30, 2024 Assets Current assets Cash and cash equivalents $ 34,413 $ 39,551 Short-term investments 20,221 20,360 Accounts receivable, net 13,135 13,181 Inventories 61,459 54,965 Recoverable income taxes 4,255 4,240 Other current assets 7,537 9,242 Total current assets 141,020 141,539 Property and equipment, net 74,665 77,047 Deferred income taxes 5,560 6,867 Goodwill 7,217 7,217 Intangible assets 6,924 6,968 Right of use assets under operating leases 80,587 93,624 Other 8,268 7,908 Total long-term assets 108,556 122,584 Total assets $ 324,241 $ 341,170 Liabilities and Stockholders ' Equity Current liabilities Accounts payable $ 14,425 $ 13,303 Accrued compensation and benefits 8,497 6,898 Customer deposits 23,149 25,742 Current portion operating lease obligations 19,548 18,050 Other current liabilites and accrued expenses 7,656 9,410 Total current liabilities 73,275 73,403 Long-term liabilities Post employment benefit obligations 11,087 10,882 Long-term portion of operating lease obligations 73,198 88,395 Other long-term liabilities 963 1,163 Total long-term liabilities 85,248 100,440 Stockholders ' equity Common stock 43,378 43,681 Retained earnings 121,583 122,847 Additional paid-in capital - 6 Accumulated other comprehensive income 757 793 Total stockholders' equity 165,718 167,327 Total liabilities and stockholders ' equity $ 324,241 $ 341,170 The accompanying notes to condensed consolidated financial statements are an integral part of the condensed consolidated financial statements. 5 of 34

– FINANCIAL INFORMATION – CONTINUED

PART I – FINANCIAL INFORMATION – CONTINUED

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED AUGUST 30, 2025 AND AUGUST 31, 2024 – UNAUDITED (In thousands) Nine Months Ended August 30, 2025 August 31, 2024 Operating activities: Net income (loss) $ 4,573 $ ( 12,899 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 6,626 7,613 Asset impairment charges - 5,515 Inventory valuation charges 1,726 4,954 Deferred income taxes 1,307 ( 2,765 ) Other, net 841 937 Changes in operating assets and liabilities: Accounts receivable 46 762 Inventories ( 8,220 ) 1,890 Recoverable income taxes and other current assets 1,690 ( 1,213 ) Right of use assets under operating leases 12,768 13,029 Customer deposits ( 2,593 ) 912 Accounts payable and other liabilities 393 ( 5,364 ) Obligations under operating leases ( 13,431 ) ( 15,694 ) Net cash provided by (used in) operating activities 5,726 ( 2,323 ) Investing activities: Purchases of property and equipment ( 3,737 ) ( 4,720 ) Other ( 408 ) ( 909 ) Net cash used in investing activities ( 4,145 ) ( 5,629 ) Financing activities: Cash dividends ( 5,210 ) ( 4,909 ) Other issuance of common stock 249 275 Repurchases of common stock ( 1,522 ) ( 1,127 ) Taxes paid related to net share settlement of equity awards ( 136 ) ( 161 ) Repayments of finance lease obligations ( 100 ) ( 210 ) Net cash used in financing activities ( 6,719 ) ( 6,132 ) Effect of exchange rate changes on cash and cash equivalents - 6 Change in cash and cash equivalents ( 5,138 ) ( 14,078 ) Cash and cash equivalents - beginning of period 39,551 52,407 Cash and cash equivalents - end of period $ 34,413 $ 38,329 The accompanying notes to conde

-FINANCIAL INFORMATION-CONTINUED

PART I-FINANCIAL INFORMATION-CONTINUED BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED AUGUST 30, 2025 (Dollars in thousands except share and per share data) 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. References to "ASC" included hereinafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board ("FASB") as the source of authoritative GAAP. The condensed consolidated financial statements include the accounts of Bassett Furniture Industries, Incorporated ("Bassett", "we", "our", or the "Company") and our wholly-owned subsidiaries of which we have a controlling interest. In accordance with ASC Topic 810, we have evaluated our licensees and certain other entities to determine whether they are variable interest entities ("VIEs") of which we are the primary beneficiary and thus would require consolidation in our financial statements. As of and for the periods ended August 30, 2025 and August 31, 2024 and as of November 30, 2024 we have concluded that none of the evaluated entities represent VIEs. Revenue from the sale of furniture and accessories is reported in the accompanying condensed consolidated statements of operations net of estimates for returns and allowances. We exclude from revenues amounts collected from customers for sales tax. Our fiscal year, which ends on the last Saturday of November, periodically results in a 53-week year instead of the normal 52 weeks. The prior fiscal year ended November 30,

-FINANCIAL INFORMATION-CONTINUED

PART I-FINANCIAL INFORMATION-CONTINUED BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED AUGUST 30, 2025 (Dollars in thousands except share and per share data) Lessor Income We receive lease income as the lessor on a small number of leased premises which we have subleased to other tenants. Sublease income for closed stores and warehouses is included in selling general and administrative expense in the accompanying condensed consolidated statements of operations and was $ 149 and $ 399 for the three and nine months ended August 30, 2025, respectively, and $ 103 and $ 308 for the three and nine months ended August 31, 2024. We also sublease one location to a licensee. This sublease income is included in other loss, net in the accompanying condensed consolidated statements of operations and was $ 114 and $ 343 for the three and nine months ended August 30, 2025, respectively, and $ 114 and $ 343 for the three and nine months ended August 31, 2024, respectively. 3. Financial Instruments and Investments Financial Instruments Our financial instruments include cash and cash equivalents, short-term investments in certificates of deposit (CDs), accounts receivable, and accounts payable. Because of their short maturities, the carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value. Investments Our short-term investments of $ 20,221 and $ 20,360 at August 30, 2025 and November 30, 2024, respectively, consisted of CDs. At August 30, 2025, the CDs had original terms averaging seven months, bearing interest at rates ranging from 1.0 % to 4.4 % and the weighted average remaining time to maturity was approximately five months and the weighted average yield of the CDs was approximately 3.8 %. Each CD is placed with a federally insured financial institution and, except as noted below, all deposits are within federal deposit insurance limits.

-FINANCIAL INFORMATION-CONTINUED

PART I-FINANCIAL INFORMATION-CONTINUED BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED AUGUST 30, 2025 (Dollars in thousands except share and per share data) Activity in the allowance for credit losses for the nine months ended August 30, 2025 was as follows: Balance at November 30, 2024 $ 1,097 Net recoveries credited to expense ( 67 ) Write-offs against allowance ( 590 ) Balance at August 30, 2025 $ 440 Substantially all of the accounts receivable written off against the reserve during the three and nine months ended August 30, 2025 originated during fiscal 2024. We believe that the carrying value of our net accounts receivable approximates fair value. The inputs into these fair value estimates reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures . 5. Inventories Domestic furniture inventories are valued at the lower of cost, which is determined using the last-in, first-out (LIFO) method, or market. Imported inventories and those applicable to our Lane Venture and Bassett Outdoor lines are valued at the lower of cost, which is determined using the first-in, first-out (FIFO) method, or net realizable value. Inventories were comprised of the following: August 30, 2025 November 30, 2024 Wholesale finished goods $ 28,937 $ 24,841 Work in process 556 519 Raw materials and supplies 16,975 14,921 Retail merchandise 32,907 31,744 Total inventories on first-in, first-out method 79,375 72,025 LIFO adjustment ( 12,096 ) ( 11,665 ) Reserve for excess and obsolete inventory ( 5,820 ) ( 5,395 ) $ 61,459 $ 54,965 We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand

-FINANCIAL INFORMATION-CONTINUED

PART I-FINANCIAL INFORMATION-CONTINUED BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED AUGUST 30, 2025 (Dollars in thousands except share and per share data) Activity in the reserves for excess quantities and obsolete inventory by segment are as follows: Wholesale Segment Retail Segment Total Balance at November 30, 2024 $ 4,158 $ 1,237 $ 5,395 Additions charged to expense 1,252 474 1,726 Write-offs ( 983 ) ( 318 ) ( 1,301 ) Balance at August 30, 2025 $ 4,427 $ 1,393 $ 5,820 Our estimates and assumptions have been reasonably accurate in the past. We have not made any significant changes to our methodology for determining inventory reserves in 2025 and do not anticipate that our methodology is likely to change in the future. 6. Goodwill The carrying amounts of goodwill by reportable segment, including accumulated impairment losses, at both August 30, 2025 and November 30, 2024 were as follows: Original Accumulated Recorded Impairment Carrying Value Losses Amount Wholesale $ 9,188 $ ( 1,971 ) $ 7,217 Retail 1,926 ( 1,926 ) - Corporate and other 5,409 ( 5,409 ) - Total goodwill $ 16,523 $ ( 9,306 ) $ 7,217 7. Intangible Assets Intangible assets at August 30, 2025 and November 30, 2024 consisted of the following: August 30, 2025 November 30, 2024 Intangibles subject to amortization: Customer relationships $ 512 $ 512 Less accumulated amortization ( 436 ) ( 392 ) Intangibles subject to amortization, net 76 120 Intangibles not subject to amortization: Trade names 6,848 6,848 Total intangible assets $ 6,924 $ 6,968 Amortization expense associated with intangible assets during the three and nine months ended August 30, 2025 and August 31, 2024 was as follows: Quarter Ended Nine Months Ended August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024

-FINANCIAL INFORMATION-CONTINUED

PART I-FINANCIAL INFORMATION-CONTINUED BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED AUGUST 30, 2025 (Dollars in thousands except share and per share data) Estimated future amortization expense for intangible assets that exist at August 30, 2025 is as follows: Remainder of fiscal 2025 $ 14 Fiscal 2026 57 Fiscal 2027 5 Total $ 76 8. Bank Credit Facility On May 15, 2024, we entered into the Eighth Amended and Restated Credit Agreement with our bank (the "Credit Facility"). This Credit Facility provides for a line of credit of up to $ 25,000 . At August 30, 2025, we had $ 8,182 outstanding under standby letters of credit against our line. The line bears interest at the One-Month Term Secured Overnight Financing Rate ("One-Month Term SOFR") plus 1.75 % and is secured by our accounts receivable and inventory. Our bank charges a fee of 0.25 % on the daily unused balance of the line, payable quarterly. Under the terms of the Credit Facility, Consolidated Minimum Tangible Net Worth (as defined in the Credit Facility) shall at no time be less than $ 120,000 . In addition, we must maintain the following financial covenants, measured quarterly on a rolling twelve-month basis and commencing as of the end of the first fiscal quarter after the first date that the used commitment (the sum of any outstanding advances plus standby letters of credit) equals or exceeds $ 8,250 : Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.2 times and Consolidated Lease Adjusted Leverage to EBITDAR Ratio (as defined in the Credit Facility) not to exceed 3.35 times. Since our used commitment was less than $ 8,250 at August 30, 2025, we were not required to test the Consolidated Fixed Charge Coverage Ratio or the Consolidated Lease Adjusted Leverage to EBITDAR Ratio. However, had we been required to test those ratios, we would have been in full complian

-FINANCIAL INFORMATION-CONTINUED

PART I-FINANCIAL INFORMATION-CONTINUED BASSETT FURNITURE INDUSTRIES, INCORPORATED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-UNAUDITED AUGUST 30, 2025 (Dollars in thousands except share and per share data) Components of net periodic pension costs for our defined benefit plans for the three and nine months ended August 30, 2025 and August 31, 2024 are as follows: Quarter Ended Nine Months Ended August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Service cost $ 4 $ 3 $ 11 $ 10 Interest cost 81 98 244 293 Amortization of prior service costs - 26 - 77 Amortization of loss ( 16 ) ( 16 ) ( 49 ) ( 48 ) Net periodic pension cost $ 69 $ 111 $ 206 $ 332 The components of net periodic pension cost other than the service cost component, which is included in selling, general and administrative expenses, are included in other loss, net in our condensed consolidated statements of operations. Deferred Compensation Plans We have an unfunded deferred compensation plan that covers one current executive and certain former executives and provides for voluntary deferral of compensation. This plan has been frozen with no additional participants or deferrals permitted. Our liability under this plan was $ 1,584 and $ 1,601 as of August 30, 2025 and November 30, 2024, respectively. We also have an unfunded, nonqualified deferred compensation plan maintained for the benefit of certain highly compensated or management level employees which was est

View Full Filing

View this 10-Q filing on SEC EDGAR