iMedia Brands, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 02, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

A reconciliation of net income (loss) per share calculations and the number of shares used in the calculation of basic net income (loss) per share and diluted net income (loss) per share is as follows:



	For the Years Ended
	February 2, 2019			February 3, 2018		January 28, 2017
Numerator:
Net income (loss) (a)	$	(22,157,000	)	$	143,000	$	(8,745,000	)
Earnings allocated to participating share awards (b)	—			—		—
Net income (loss) attributable to common shares — Basic and diluted	$	(22,157,000	)	$	143,000	$	(8,745,000	)
Denominator:
Weighted average number of common shares outstanding — Basic	66,073,206			63,870,046		59,784,594
Dilutive effect of stock options, non-vested shares and warrants (c)	—			98,253		—
Weighted average number of common shares outstanding — Diluted	66,073,206			63,968,299		59,784,594
Net income (loss) per common share	$	(0.34	)	$	0.00	$	(0.15	)
Net income (loss) per common share — assuming dilution	$	(0.34	)	$	0.00	$	(0.15	)

(a) The net income (loss) for fiscal 2018, fiscal 2017 and fiscal 2016 includes executive and management transition costs of $2,093,000, $2,145,000 and $4,411,000. The net loss for fiscal 2018 includes a gain on the sale of television station of $665,000. The net income for fiscal 2017 includes a gain on the sale of television station of $551,000 and a loss on debt extinguishment of $1,457,000. The fiscal 2016 net loss includes distribution facility consolidation and technology upgrade costs of $677,000.

(b) During fiscal 2018, the Company issued a restricted stock award that is a participating security. For fiscal 2018, the entire undistributed loss is allocated to common shareholders.

(c) For fiscal 2018 and fiscal 2016, there were 340,000 and 119,000 incremental in-the-money potentially dilutive common shares outstanding. The incremental in-the-money potentially dilutive common stock shares are excluded from the computation of diluted earnings per share, as the effect of their inclusion would be anti-dilutive.

Schedule of the new revenue standard adoption [Table Text Block]

The impact of the new revenue standard adoption on our consolidated statements of operations was as follows (in thousands):



	For the Year Ended February 2, 2019
	As Reported			Balance without adoption of ASC 606			Effect of Change
Net sales	$	596,637		$	595,830		$	807
Cost of sales	389,790			389,010			780
Operating expense:
Distribution and selling	191,917			191,694			223
Net loss	(22,157		)	(21,961		)	(196		)

Reconciliation of cash and restricted cash equivalents [Table Text Block]

The following table provides a reconciliation of cash and restricted cash equivalents reported with the consolidated balance sheets to the total of the same amounts shown in the consolidated statements of cash flows:



	February 2, 2019		February 3, 2018		January 28, 2017		January 30, 2016
Cash	$	20,485,000	$	23,940,000	$	32,647,000	$	11,897,000
Restricted cash equivalents	450,000		450,000		450,000		450,000
Total cash and restricted cash equivalents	$	20,935,000	$	24,390,000	$	33,097,000	$	12,347,000