Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 28, 2018 | Mar. 19, 2019 | Jun. 29, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Command Center, Inc. | ||
Entity Central Index Key | 0001140102 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 28, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-28 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16,500,000 | ||
Entity Common Stock, Shares Outstanding | 4,653,142 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 28, 2018 | Dec. 29, 2017 |
Current assets | ||
Cash | $ 7,934,287 | $ 7,768,631 |
Restricted cash | 69,423 | 12,853 |
Accounts receivable, net of allowance for doubtful accounts | 9,041,361 | 9,394,376 |
Prepaid expenses, deposits, and other assets | 380,930 | 740,280 |
Prepaid workers' compensation | 212,197 | 167,597 |
Current portion of workers' compensation risk pool deposits | 0 | 99,624 |
Total Current Assets | 17,638,198 | 18,183,361 |
Property and equipment - net | 329,255 | 372,145 |
Deferred taxes | 1,079,908 | 721,602 |
Workers' compensation risk pool deposit, less current portion, net | 193,984 | 201,563 |
Workers' compensation risk pool deposit in receivership, net | 260,000 | 1,800,000 |
Goodwill and other intangible assets, net | 3,930,900 | 4,085,576 |
Total Assets | 23,432,245 | 25,364,247 |
Current liabilities | ||
Accounts payable | 219,945 | 563,402 |
Account purchase agreement facility | 398,894 | 853,562 |
Other current liabilities | 821,142 | 898,809 |
Accrued wages and benefits | 1,218,699 | 1,503,688 |
Current portion of workers' compensation claims liability | 1,003,643 | 1,031,500 |
Total Current Liabilities | 3,662,323 | 4,850,961 |
Workers compensation claims liability, less current portion | 878,455 | 917,497 |
Total Liabilities | 4,540,778 | 5,768,458 |
Commitments and Contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock - $0.001 par value, 416,666 shares authorized; none issued | 0 | 0 |
Common stock - $0.001 par value, 8,333,333 shares authorized; 4,680,871 and 4,993,672 shares issued and outstanding, respectively | 4,681 | 4,994 |
Additional paid-in capital | 54,536,852 | 56,211,837 |
Accumulated deficit | (35,650,066) | (36,621,042) |
Total Stockholders' Equity | 18,891,467 | 19,595,789 |
Total Liabilities and Stockholders' Equity | $ 23,432,245 | $ 25,364,247 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 28, 2018 | Dec. 29, 2017 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ .001 |
Preferred stock, authorized | 416,666 | 416,666 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ .001 | $ 0.001 |
Common stock, authorized | 8,333,333 | 8,333,333 |
Common stock, issued | 4,680,871 | 4,993,672 |
Common stock, outstanding | 4,680,871 | 4,993,672 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 97,388,820 | $ 98,072,198 |
Cost of staffing services | 72,450,295 | 72,641,609 |
Gross Profit | 24,938,525 | 25,430,589 |
Selling, general, and administrative expenses | 23,433,198 | 21,347,681 |
Depreciation and amortization | 323,852 | 386,413 |
Income from operations | 1,181,475 | 3,696,495 |
Interest expense and other financing expense | 2,116 | 11,619 |
Net income before income taxes | 1,179,359 | 3,684,876 |
Provision for income taxes | 205,072 | 2,005,528 |
Net income | $ 974,287 | $ 1,679,348 |
Earnings per share: | ||
Basic | $ .20 | $ 0.33 |
Diluted | $ .20 | $ 0.33 |
Weighted average shares outstanding: | ||
Basic | 4,853,000 | 5,043,254 |
Diluted | 4,855,019 | 5,105,006 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Common Stock | APIC | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 30, 2016 | 5,052,888 | |||
Beginning Balance, Amount at Dec. 30, 2016 | $ 5,053 | $ 56,430,206 | $ (38,300,390) | $ 18,134,869 |
Common stock issued for services, Shares | 9,583 | 9,583 | ||
Common stock issued for services, Amount | $ 10 | 49,690 | $ 49,700 | |
Stock based compensation | 107,090 | $ 107,090 | ||
Common stock purchased and retired, Shares | (68,799) | (68,799) | ||
Common stock purchased and retired, Amount | $ (69) | (375,149) | $ (375,218) | |
Cumulative effect of accounting change | 0 | |||
Net income for the year | 1,679,348 | 1,679,348 | ||
Ending Balance, Shares at Dec. 29, 2017 | 4,993,672 | |||
Ending Balance, Amount at Dec. 29, 2017 | $ 4,994 | 56,211,837 | (36,621,042) | $ 19,595,789 |
Common stock issued for services, Shares | 10,973 | 10,973 | ||
Common stock issued for services, Amount | $ 11 | 62,425 | $ 62,436 | |
Stock based compensation | 332,089 | $ 332,089 | ||
Common stock purchased and retired, Shares | 323,774 | (323,774) | ||
Common stock purchased and retired, Amount | $ (324) | (1,828,829) | $ (1,829,153) | |
Cumulative effect of accounting change | (3,311) | (3,311) | ||
Effective repurchase of stock options | (240,670) | (240,670) | ||
Net income for the year | 974,287 | 974,287 | ||
Ending Balance, Shares at Dec. 28, 2018 | 4,680,871 | |||
Ending Balance, Amount at Dec. 28, 2018 | $ 4,681 | $ 54,536,852 | $ (35,650,066) | $ 18,891,467 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 974,287 | $ 1,679,348 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 323,852 | 386,413 |
Provision for bad debt | 71,278 | 209,805 |
Stock based compensation | 332,089 | 156,790 |
Deferred taxes | (358,306) | 1,666,043 |
Reserve on workers' compensation risk pool deposit in receivership | 1,540,000 | 0 |
Cumulative effect of accounting change | (3,311) | 0 |
Common stock issued for services | 62,436 | 0 |
Gain on disposition of property and equipment | (9,383) | 0 |
Change in assets and liabilities: | ||
Accounts receivable | 281,737 | 683,273 |
Prepaid expenses, deposits, and other assets | 359,350 | (106,665) |
Prepaid workers' compensation | (44,600) | 578,100 |
Accounts payable | (343,457) | (198,875) |
Other current liabilities | (77,667) | 502,883 |
Accrued wages and benefits | (525,659) | (63,897) |
Workers' compensation risk pool deposits | 107,203 | 12,153 |
Workers' compensation claims liability | (66,899) | (757,703) |
Net cash provided by operating activities | 2,622,950 | 4,747,668 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (158,578) | (103,665) |
Proceeds from the sale of property and equipment | 41,675 | 0 |
Net cash used in investing activities | (116,903) | (103,665) |
Cash flows from financing activities: | ||
Net change in account purchase agreement facility | (454,668) | 465,282 |
Purchase of treasury stock | (1,829,153) | (375,218) |
Net cash provided by (used in) financing activities | (2,283,821) | 90,064 |
Net increase in cash | 222,226 | 4,734,067 |
Cash and restricted cash, beginning of period | 7,781,484 | 3,047,417 |
Cash and restricted cash, end of period | 8,003,710 | 7,781,484 |
Supplemental disclosure of non-cash activities | ||
Effective purchase of vested stock options | 240,670 | 0 |
Supplemental disclosure of cash flow information | ||
Interest paid | 3,503 | 11,620 |
Income taxes paid | 18,227 | 522,525 |
Reconciliation of cash and cash equivalents | ||
Total cash and restricted cash | $ 7,781,484 | $ 7,781,484 |
1. SUMMARY OF SIGNIFICANT ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Description of Business: Basis of Presentation: Use of Estimates: Revenue Recognition: We account for revenue when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Our primarily source of revenue is from providing temporary contract labor to our customers. Revenue is recognized at the time we satisfy our performance obligation. Because our customers receive and consume the benefits of our services simultaneously, our performance obligations are typically satisfied when our services are provided. Revenue is reported net of customer credits, discounts, and taxes collected from customers that are remitted to taxing authorities. Below is a summary our revenue disaggregated by industry (in thousands, except percentages): Fifty-two weeks ended December 28, 2018 December 29, 2017 Industrial, manufacturing and warehousing $ 34,207,786 35.1 % $ 33,495,618 34.2 % Construction 18,462,347 19.0 % 19,988,048 20.4 % Hospitality 16,480,095 16.9 % 18,304,637 18.7 % Transportation 15,322,125 15.7 % 14,046,085 14.3 % Retail and Other 12,916,467 13.3 % 12,237,810 12.5 % Total $ 97,388,820 100.0 % $ 98,072,198 100.0 % Cost of Staffing Services: Restricted Cash: Accounts Receivable and Allowance for Doubtful Accounts: Property and Equipment: Workers’ Compensation Reserves: Goodwill and Intangible Assets: Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment at lease annually and whenever events and circumstances arise that indicate impairment may exist. Income Taxes: We have analyzed our filing positions in all jurisdictions where we are required to file returns, and found no positions that would require a liability for unrecognized income tax positions to be recognized. In the event that we are assessed penalties and/or interest, penalties will be charged to other financing expense and interest will be charged to interest expense. Earnings per Share: Diluted common shares outstanding were calculated using the Treasury Stock Method and are as follows: December 28, 2018 December 29, 2017 Weighted average number of common shares used in basic net income per common share 4,853,000 5,043,254 Dilutive effects of stock options 2,019 61,752 Weighted average number of common shares used in diluted net income per common share 4,855,019 5,105,006 Share-Based Compensation: Advertising Costs: Concentrations: Impairment of Long-lived Asset: Fair Value of Financial Instruments: carrying values of our account pruchse agreement, accounts receivable, and accounts payable approximated their fair values due to relatively short maturities. Recent Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace todays “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230) Restricted Cash.” The new guidance requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include restricted cash and restricted cash equivalents. If restricted cash is presented separately from cash and cash equivalents on the balance sheet, companies will be required to reconcile the amounts presented on the statement of cash flows to the amounts on the balance sheet. Companies also need to disclose information about the nature of the restrictions. This guidance is effective for fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. We adopted this guidance during the first quarter of 2017. In May 2014, the Financial Accounting Standards Board, or FASB, issued new revenue recognition guidance under Accounting Standards Update, or ASU, 2014-09 that supersedes the existing revenue recognition guidance under U.S. GAAP. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. The new standard became effective for us beginning December 30, 2017. We implemented the standard using the modified retrospective approach which recognized the cumulative effect of application on that date. As a result of adopting this new standard, we made an adjustment that increased Revenue on our Consolidated Statement of Income and decreased Accumulated deficit on our Consolidated Balance Sheet by approximately $3,000. We have applied the guidance in this new standard to all contracts at the date of initial application. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The new guidance simplifies the subsequent measurement of goodwill by eliminating the requirement to perform a Step 2 impairment test to compute the implied fair value of goodwill. Instead, companies will only compare the fair value of a reporting unit to its carrying value (Step 1) and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized may not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This amended guidance is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We adopted this guidance during our fiscal year 2018. Other accounting standards that have been issued by the Financial Accounting Standards Board or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations, and cash flows. For the period ended December 28, 2018, the adoption of other accounting standards had no material impact on our financial positions, results of operations, or cash flows. |
2. PROPERTY AND EQUIPMENT
2. PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | The following table summarizes the book value of our assets and accumulated depreciation and amortization: December 28, 2018 December 29, 2017 Leasehold improvements $ 289,576 $ 268,586 Vehicles and machinery 73,955 100,467 Furniture and fixtures 127,992 127,992 Computer hardware and licensed software 634,117 502,309 Accumulated depreciation (796,385 ) (627,209 ) Total property and equipment, net $ 329,255 $ 372,145 Depreciation and amortization expense related to property and equipment totaled approximately $169,000 and $165,000 during the fiscal years ended December 28, 2018 and December 29, 2017, respectively. |
3. GOODWILL AND INTANGIBLE ASSE
3. GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | At least annually, or whenever events or circumstances arise indicating an impairment may exist, we review goodwill for impairment. We are a single reporting unit consisting of purchased on-demand labor branches, thus the analysis is conducted for the Company as a whole. Our goodwill represents the consideration given for acquisitions in excess of the fair value of identifiable assets received. No provision has been made for an impairment loss as of December 28, 2018 or December 29, 2017. The following table reflects our purchased goodwill and finite-lived intangible assets. December 28, 2018 December 29, 2017 Gross Accumulated amortization Net Gross Accumulated amortization Net Goodwill $ 3,777,568 $ - $ 3,777,568 $ 3,777,568 $ - $ 3,777,568 Finite-lived intangible assets: Customer relationships 430,984 (277,652 ) 153,332 430,984 (170,597 ) 260,387 Non-compete agreements 228,580 (228,580 ) - 228,580 (180,959 ) 47,621 Total finite-lived intangible assets 659,564 (506,232 ) 153,332 659,564 (351,556 ) 308,008 Total goodwill and intangible assets $ 4,437,132 $ (506,232 ) $ 3,930,900 $ 4,437,132 $ (351,556 ) $ 4,085,576 Amortization expense related to intangible assets totaled approximately $155,000 and $221,000 during the fiscal years ended December 28, 2018 and December 29, 2017, respectively. The following table reflects estimated future amortization expenses of intangible assets with definite lives as of December 28, 2018: Year Obligation 2019 $ 107,746 2020 44,894 Thereafter - Total $ 152,640 |
4. ACCOUNT PURCHASE AGREEMENT &
4. ACCOUNT PURCHASE AGREEMENT & LINE OF CREDIT FACILITY | 12 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
ACCOUNT PURCHASE AGREEMENT & LINE OF CREDIT FACILITY | In May 2016, we signed an account purchase agreement with our lender, Wells Fargo Bank, N.A., which allows us to sell eligible accounts receivable for 90% of the invoiced amount on a full recourse basis up to the facility maximum, or $14.0 million on December 28, 2018 and December 29, 2017. When the receivable is paid by our customers, the remaining 10% is paid to us, less applicable fees and interest. Eligible accounts receivable are generally defined to include accounts that are not more than ninety days past due. Pursuant to this agreement, we owed approximately $399,000 and $854,000 at December 28, 2018 and December 29, 2017, respectively. The current agreement bears interest at the Daily One Month London Interbank Offered Rate plus 2.50% per annum. At December 28, 2018 the effective interest rate was 5.02%. Interest is payable on the actual amount advanced. Additional charges include an annual facility fee equal to 0.50% of the facility threshold in place and lockbox fees. As collateral for repayment of any and all obligations, we granted Wells Fargo Bank, N.A. a security interest in our all of our property including, but not limited to, accounts receivable, intangible assets, contract rights, deposit accounts, and other such assets. The agreement requires that the sum of our unrestricted cash plus net accounts receivable must at all times be greater than the sum of the amount outstanding under the agreement plus accrued payroll and accrued payroll taxes. At December 28, 2018 and December 29, 2017 we were in compliance with this covenant. As of December 28, 2018, we have a letter of credit with Wells Fargo for approximately $6.2 million that secures our obligations to our workers’ compensation insurance carrier and reduces the amount available to us under the account purchase agreement. For additional information related to this letter of credit, see Note 5 – Workers’ Compensation Insurance and Reserves |
5. WORKERS' COMPENSATION INSURA
5. WORKERS' COMPENSATION INSURANCE AND RESERVES | 12 Months Ended |
Dec. 28, 2018 | |
Workers Compensation Insurance And Reserves | |
WORKERS' COMPENSATION INSURANCE AND RESERVES | In April 2014, we changed our workers’ compensation carrier to ACE American Insurance Company, or ACE, in all states in which we operate other than Washington and North Dakota. The ACE policy is a large deductible policy where we have primary responsibility for all claims made. ACE provides insurance for covered losses and expenses in excess of $500,000 per incident. Under this large deductible program, we are largely self-insured. Per our contractual agreements with ACE, we must provide a collateral deposit of $6.2 million, which is accomplished through a letter of credit under our account purchase agreement with Wells Fargo. For workers’ compensation claims originating in Washington and North Dakota, we pay workers’ compensation insurance premiums and obtain full coverage under mandatory state government administered programs. Our liability associated with claims in these jurisdictions is limited to the payment of premiums, which are based upon the amount of payroll paid within the particular state. Accordingly, our consolidated financial statements reflect only the mandated workers’ compensation insurance premium liability for workers’ compensation claims in these jurisdictions. From April 2012 to March 2014, our workers’ compensation coverage was obtained through Dallas National Insurance in all states in which we operate, other than Washington and North Dakota. During this time period, Dallas National changed its corporate name to Freestone Insurance Company, or Freestone. The Freestone coverage was a large deductible policy where we have primary responsibility for claims under the policy. Freestone provided insurance for covered losses and expenses in excess of $350,000 per incident. Per our contractual agreements with Freestone, we made payments of $1.8 million as a non-depleting deposit as collateral for our self-insured claims. See Note 9 – Commitments and Contingencies, From April 2011 to March 2012, our workers’ compensation coverage was obtained through Zurich American Insurance Company, or Zurich, in all states in which we operate, other than Washington and North Dakota. The policy with Zurich was a guaranteed cost plan under which all claims are paid by Zurich. Zurich provided workers’ compensation coverage in all states in which we operate other than Washington and North Dakota. Prior to Zurich, our workers’ compensation coverage was provided under an agreement with AMS Staff Leasing II, or AMS, through its master workers’ compensation policy with Freestone. Prior to AMS, our workers’ compensation carrier was American International Group, Inc., or AIG, in all states in which we operate, other than Washington and North Dakota. The AIG coverage was a large deductible policy where we have primary responsibility for claims under the policy. Under the AIG policies, we made payments into a risk pool fund to cover claims within our self-insured layer. At December 29, 2017, our risk pool deposit with AIG was approximately $100,000 and was fully refunded in May, 2018. As part of our large deductible workers’ compensation programs, our carriers require that we collateralize a portion of our future workers’ compensation obligations in order to secure future payments made on our behalf. This collateral is typically in the form of cash and cash equivalents. At December 28, 2018, we had net cash collateral deposits of approximately $194,000. With the addition of the $6.2 million letter of credit, our cash and non-cash collateral totaled approximately $6.4 million at December 28, 2018. Workers’ compensation expense for field team members is recorded as a component of our cost of services and consists of the following components: changes in our self-insurance reserves as determined by our third party actuary, actual claims paid, insurance premiums and administrative fees paid to our workers’ compensation carrier(s), and premiums paid to mandatory state government administered programs. Workers’ compensation expense for our temporary workers totaled approximately $3.8 million and $3.7 million for the fiscal years ended December 28, 2018 and December 29, 2017, respectively. The following reflects the changes in our workers’ compensation deposits and our workers’ compensation claims liability during the fiscal years ended December 28, 2018 and December 29, 2017: December 28, 2018 December 29, 2017 Workers’ Compensation Deposits Workers’ compensation deposits available at the beginning of the period $ 301,187 $ 313,340 Deposits refunded (107,203 ) - Deposits applied to payment of claims during the period - (12,153 ) Deposits available for future claims at the end of the period $ 193,984 $ 301,187 Workers’ Compensation Claims Liability Estimated future claims liabilities at the beginning of the period $ 1,948,997 $ 2,706,701 Claims paid during the period (1,850,913 ) (2,246,367 ) Additional future claims liabilities recorded during the period 1,784,014 1,488,663 Estimated future claims liabilities at the end of the period $ 1,882,098 $ 1,948,997 The workers’ compensation risk pool deposits are classified as current and non-current assets on the consolidated balance sheet based upon management’s estimate of when the related claims liabilities will be paid. The deposits have not been discounted to present value in the accompanying consolidated financial statements. All liabilities associated with our workers’ compensation claims are fully reserved on our consolidated balance sheet. |
6. STOCKHOLDERS EQUITY
6. STOCKHOLDERS EQUITY | 12 Months Ended |
Dec. 28, 2018 | |
Stockholders' equity: | |
STOCKHOLDERS EQUITY | Issuance of Common Stock: Stock Repurchase Total shares purchased Average price per share Total number of shares purchased as part of publicly announced plan Approximate dollar value of shares that may be purchased under the plan December 30, 2017 to January 26, 2018 4,820 $ 5.75 585,892 $ 4,598,243 January 27, 2018 to February 23, 2018 10,541 5.83 596,433 4,536,840 February 24, 2018 to March 30, 2018 7,100 5.62 603,533 4,496,949 March 31, 2018 to April 27, 2018 34,310 5.67 637,843 4,302,379 April 28, 2018 to May 25, 2018 26,382 5.77 664,225 4,150,262 May 26, 2018 to June 29, 2018 42,900 5.66 707,125 3,907,442 June 30, 2018 to July 27, 2018 36,275 6.03 743,400 3,688,744 July 28, 2018 to August 24, 2018 57,400 5.69 800,800 3,361,906 August 25, 2018 to September 28, 2018 69,993 5.77 870,793 2,958,257 September 29, 2018 to October 26, 2018 12,642 5.51 883,435 2,888,566 October 27, 2018 to November 23, 2018 14,153 4.40 897,588 2,826,254 November 24, 2018 to December 28, 2018 7,258 4.05 904,846 2,796,828 Total 323,774 |
7. STOCK BASED COMPENSATION
7. STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 28, 2018 | |
Share-based Compensation [Abstract] | |
STOCK BASED COMPENSATION | Stock Incentive Plan In July 2018, our Board of Directors authorized a restricted stock grant of approximately 48,000 shares, valued at $300,000, to our six non-employee directors. These shares vest in equal installments at each grant date anniversary over the following two years. During 2018, we granted 117,500 stock options to certain members of our board and an officer of the Company. During 2017, we granted approximately 75,000 stock options to certain officers and an employee of the Company. The options were granted with an exercise price equal to the fair market value on the date of grant, ten year life and vesting over three years from the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model and expensed over the vesting period. Expected volatility is based on historical annualized volatility of our stock. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate is based upon the U.S. Treasury yield curve in effect at the time of grant. Currently we do not foresee the payment of dividends in the near term. The assumptions used to calculate the fair value are as follows: 2018 2017 Expected term (years) 5.8 5.8 Expected volatility 59.4% - 59.8 % 61.5 % Dividend yield 0.0 % 0.0 % Risk-free rate 2.1% - 2.4 % 1.1 % The following table summarizes our stock options outstanding at December 30, 2016, and changes during the fiscal years ended December 28, 2018 and December 29, 2017. The majority of the expired options in 2018 were issued to our former CEO and subsequently cancelled pursuant to the severance agreement with him. Number of shares under options Weighted average exercise price per share Weighted average grand date fair value Outstanding, December 30, 2016 208,166 $ 4.40 2.87 Granted 74,997 5.13 2.65 Forfeited (834 ) 8.04 4.53 Expired (27,334 ) 5.32 3.96 Outstanding, December 29, 2017 254,995 4.49 6.48 Granted 117,500 5.67 3.15 Forfeited (42,187 ) 5.61 2.96 Expired (169,477 ) 3.74 2.47 Outstanding, December 28, 2018 160,831 5.86 3.18 The following table reflects a summary of our non-vested stock options outstanding at December 30, 2016 and changes during the fiscal years ended December 28, 2018 and December 29, 2017: Number of options Weighted average exercise price per share Weighted average grant date fair value Non-vested, December 30, 2016 53,126 $ 4.81 $ 2.98 Granted 74,997 4.49 5.68 Vested (63,750 ) 5.47 2.86 Forfeited (834 ) 8.04 4.53 Non-vested, December 29, 2017 63,539 5.47 2.86 Granted 117,500 5.67 3.15 Vested (54,329 ) 5.65 3.11 Forfeited (42,187 ) 5.61 2.96 Non-vested, December 28, 2018 84,523 5.56 3.05 The following table summarizes information about our stock options outstanding on, and reflects the intrinsic value recalculated based on the closing price of our common stock of $3.77 at, December 28, 2018: Number of options Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding 160,831 $ 5.86 7.6 $ 318,652 Exercisable 76,308 6.18 6.8 - The following table summarized information about our stock options outstanding, and reflects the weighted average contractual life at December 28, 2018: Outstanding options Vested options Range of exercise prices Number of shares outstanding Weighted average contractual life Number of shares exercisable Weighted average contractual life $4.80 - 7.00 Range 144,582 8.2 42,916 8.1 $7.01 - 8.76 Range 16,249 1.9 16,249 1.9 Share-based compensation expense relating to the issuance of stock options totaled approximately $332,000 and $157,000 during the fiscal years ended December 28, 2018 and December 29, 2017, respectively. Share-based compensation expense relating to the issuance of stock grants totaled approximately $62,000 during the fiscal year ended December 28, 2018. As of December 28, 2018, there was unrecognized share-based compensation expense totaling approximately $425,000 relating to non-vested options and restricted stock grants that will be recognized over the next 2.5 years. |
8. INCOME TAX
8. INCOME TAX | 12 Months Ended |
Dec. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, or the Tax Act. The Tax Act made broad and complex changes to the U.S. tax code that affected our fiscal years ended December 29, 2017 and December 28, 2018, including, but not limited to, (1) reducing the U.S. federal corporate tax rate to 21%; (2) eliminating the corporate alternative minimum tax, or AMT, and changing how existing AMT credits can be realized; (3) creating the base erosion anti-abuse tax, or BEAT, a new minimum tax; (4) creating a new limitation on deductible interest expense; (5) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (6) bonus depreciation that will allow for full expensing of qualified property; and (7) imposing limitations on the deductibility of certain executive compensation. In connection with our initial analysis of the impact of the Tax Act, we recorded an additional tax expense of approximately $349,000 in the fourth quarter of 2017. This expense is primarily due to remeasurement of our net deferred tax assets at the enacted rate of 21% compared to the previous rate of 34%. The provision for deferred income taxes is comprised of the following: December 28, 2018 December 29, 2017 Current: Federal $ 473,964 $ 126,487 State 89,414 212,998 Deferred: Federal (211,514 ) 1,586,296 State (146,792 ) 79,747 Provision for income taxes $ 205,072 $ 2,005,528 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred taxes are as follows: December 28, 2018 December 29, 2017 Deferred Tax Assets and Liabilities Workers' compensation claims liability $ 469,040 $ 481,299 Depreciation/amortization 59,260 42,227 Bad debt reserve 28,037 69,622 Deferred Rent 17,610 21,235 Accrued vacation 36,202 49,030 Impairment of workers' comp deposit 383,786 - Stock based compensation 35,700 - State net operating loss carryforward 45,805 - Other 4,468 - AMT Credit - 58,189 Total deferred tax asset $ 1,079,908 $ 721,602 Management estimates that our combined federal and state tax rates was approximately 17.8% for 2018, net of federal benefit on state income taxes. The items accounting for the difference between income taxes computed at the statutory federal income tax rate and the income taxes reported on the statements of income are as follows: December 28, 2018 December 29, 2017 Income tax expense based on statutory rate $ 247,665 21.0 % $ 1,252,858 34.0 % Permanent differences 11,633 1.0 % 46,939 1.3 % State income taxes expense net of federal taxes (45,329 ) -3.8 % 220,326 6.0 % Remeasurement of net deferred tax asset at 21% - 0.0 % 349,240 9.5 % Stock based compensation - 0.0 % 36,411 1.0 % Other (8,897 ) -0.8 % 99,754 2.7 % Total taxes on income $ 205,072 17.4 % $ 2,005,528 54.5 % We have analyzed our filing positions in all jurisdictions where we are required to file income tax returns and found no positions that would require a liability for unrecognized income tax benefits to be recognized. We include interest and penalties as interest expense on the consolidated financial statements. |
9. COMMITMENTS AND CONTINGENCIE
9. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Freestone Insurance Company Liquidation: From July 2008 through March 2011, our workers’ compensation coverage was provided under an agreement with AMS Staff Leasing II, through its master workers’ compensation policy with Freestone. During this time period, we deposited approximately $500,000 with an affiliate of Freestone for collateral related to the coverage provided to the company through AMS Staff Leasing II and its policy with Freestone. In April 2014, the Insurance Commissioner of the State of Delaware placed Freestone in receivership due to concerns about its financial condition. In August 2014, the receivership was converted to a liquidation proceeding. In late 2015, we filed timely proofs of claim with the Receiver demonstrating our claimed right to return of the company’s collateral deposits. One proof of claim is filed as a priority claim seeking return of the full amount of our collateral deposits. The other proof of claim is a general claim covering non-collateral items. If it is ultimately determined by the court that our claim is not a priority claim, or if there are insufficient assets in the liquidation to satisfy the priority claims, we may not receive any or all of our collateral. During the second quarter of 2015 and the first quarter of 2016, after evaluating information known at each point in time regarding the Freestone receivership, it became apparent there was significant uncertainty related to the collectability of the $500,000 deposit previously placed under the AMS Staff Leasing II agreement related to our insurance coverage from July 2008 through March 2011. Because of this, we recorded a reserve of $250,000 in each of those quarters, thereby fully reserving this deposit. In late May 2017, the Receiver filed a petition with the court, proposing a plan as to how the Receiver would identify and pay collateral to all insureds that paid cash collateral to Freestone. In the petition, the Receiver acknowledged receiving only $500,000 of our collateral. Of the $500,000 acknowledged, the Receiver proposed to return only approximately $6,000 to us. In response to additional information provided to and sought from the Receiver by us and by others, the Receiver has withdrawn the initial petition, acknowledging possible inaccuracies. As part of our review of first quarter 2018 financial results, the company’s management and board of directors reviewed the likelihood of collecting the remaining $1.8 million of collateral paid to Freestone for policy years beginning in April of 2012 and continuing through March of 2014. Based on court filings and other available information, it was determined that it is more likely than not that our priority claim will be treated in a similar manner as other creditors, resulting in the priority claim having little to no value. We believe that our recovery, if any, of the deposits placed with Freestone and its affiliates will be the greater of: (i) the amount determined and allowed resulting from a tracing analysis of our collateral deposits; or (ii) the amount we would receive in distribution as a general unsecured claimant based on the amount of our collateral deposit. Therefore, we reasonably estimate the high end of the amount the company might possibly recover through the receivership process is approximately 20% of the $1.8 million deposit amount. Accordingly, for the first quarter of 2018, the reserve on this asset was reduced by approximately $1.5 million, resulting in a net carrying amount of $260,000. This amount is consistent with our current evaluation of the Freestone receivership matter. In July 2018, the Receiver filed with the Delaware Court of Chancery the Second Accounting setting forth Freestone’s estimated assets and liabilities for the period January 1, 2016, through December 31, 2016. The Second Accounting does not clarify the issues with respect to collateral claims, priorities or return of collateral. In the accounting, the Receiver reports total assets consisting of cash and cash equivalents of $87.8 million as of December 31, 2016, and estimated liabilities of $252,000,000. Presently, the Receiver has not put forth an amended or new petition regarding its position as to precisely how cash collateral claimants should be treated. Therefore, our stated reasonable estimate is the best guidance we can offer as to the ultimate outcome of this matter. In the event the company receives substantially less than our reasonably estimated amount, there may be a material negative effect on our financial statements. Operating leases: Year Obligation 2019 $ 1,116,737 2020 778,512 2021 295,769 2022 106,265 2023 24,038 Thereafter - Total $ 2,321,321 Lease expense totaled approximately $1.5 million and $1.4 million for the fiscal years ended December 28, 2018 and December 29, 2017, respectively. Legal Proceedings: |
10. SUBSEQUENT EVENTS
10. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 28, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Hire Quest Merger Agreement: Hire Quest is a trusted name in temporary staffing. Hire Quest provides the back-office support team for Trojan Labor and Acrux Staffing franchised branch locations across the United States. Trojan Labor provides temporary staffing services which includes general labor, industrial, and construction personnel. Acrux Staffing provides temporary staffing services which includes skilled, semi-skilled and general labor industrial personnel, as well as clerical and secretarial personnel. Subject to the terms and conditions of the Merger Agreement, which has been approved by the Board of Directors of the Company and the members of Hire Quest, if the Merger is completed, all of the ownership interests in Hire Quest will be converted into the right to receive an aggregate number of shares of the Company’s common stock representing 68% of the shares of the Company’s common stock outstanding immediately after the effective time of the Merger but prior to giving effect to the purchase of the Company’s common stock pursuant to the Offer. The Merger Agreement requires Hire Quest’s net tangible assets at closing to be at least $14 million. The Company and Hire Quest have made customary representations, warranties and covenants in the Merger Agreement. Subject to certain exceptions, each of the Company and Hire Quest is required, among other things, to conduct its business in the ordinary course in all material respects during the interim period between the execution of the Merger Agreement and the closing of the Merger. The Company is required to seek shareholder approval of (i) the amendment of the Company’s articles of incorporation to increase the authorized shares of Company’s common stock and to change the name of the Company to “HireQuest, Inc.”, (ii) the issuance of shares of common stock pursuant to the Merger Agreement and the related change of control of the Company pursuant to Nasdaq listing rules, and (iii) the conversion of the Company from a Washington corporation to a Delaware corporation. The Company will call and hold a shareholders meeting seeking to obtain such approvals. The Company will distribute proxy statements to shareholders of record containing additional details regarding the Merger. |
1. SUMMARY OF SIGNIFICANT ACC_2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 28, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: |
Basis of Presentation | Basis of Presentation: |
Use of Estimates | Use of Estimates: |
Revenue Recognition | Revenue Recognition: We account for revenue when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Our primarily source of revenue is from providing temporary contract labor to our customers. Revenue is recognized at the time we satisfy our performance obligation. Because our customers receive and consume the benefits of our services simultaneously, our performance obligations are typically satisfied when our services are provided. Revenue is reported net of customer credits, discounts, and taxes collected from customers that are remitted to taxing authorities. Below is a summary our revenue disaggregated by industry (in thousands, except percentages): Fifty-two weeks ended December 28, 2018 December 29, 2017 Industrial, manufacturing and warehousing $ 34,207,786 35.1 % $ 33,495,618 34.2 % Construction 18,462,347 19.0 % 19,988,048 20.4 % Hospitality 16,480,095 16.9 % 18,304,637 18.7 % Transportation 15,322,125 15.7 % 14,046,085 14.3 % Retail and Other 12,916,467 13.3 % 12,237,810 12.5 % Total $ 97,388,820 100.0 % $ 98,072,198 100.0 % |
Cost of Staffing Services | Cost of Staffing Services: |
Restricted Cash | Restricted Cash: |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts: |
Property and Equipment | Property and Equipment: |
Workers' Compensation Reserves | Workers’ Compensation Reserves: |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment at lease annually and whenever events and circumstances arise that indicate impairment may exist. |
Income Taxes | Income Taxes: We have analyzed our filing positions in all jurisdictions where we are required to file returns, and found no positions that would require a liability for unrecognized income tax positions to be recognized. In the event that we are assessed penalties and/or interest, penalties will be charged to other financing expense and interest will be charged to interest expense. |
Earnings per Share | Earnings per Share: Diluted common shares outstanding were calculated using the Treasury Stock Method and are as follows: December 28, 2018 December 29, 2017 Weighted average number of common shares used in basic net income per common share 4,853,000 5,043,254 Dilutive effects of stock options 2,019 61,752 Weighted average number of common shares used in diluted net income per common share 4,855,019 5,105,006 |
Share-Based Compensation | Share-Based Compensation: |
Advertising Costs | Advertising Costs: |
Concentrations | Concentrations: |
Impairment of Long-lived Asset | Impairment of Long-lived Asset: |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace todays “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230) Restricted Cash.” The new guidance requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include restricted cash and restricted cash equivalents. If restricted cash is presented separately from cash and cash equivalents on the balance sheet, companies will be required to reconcile the amounts presented on the statement of cash flows to the amounts on the balance sheet. Companies also need to disclose information about the nature of the restrictions. This guidance is effective for fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. We adopted this guidance during the first quarter of 2017. In May 2014, the Financial Accounting Standards Board, or FASB, issued new revenue recognition guidance under Accounting Standards Update, or ASU, 2014-09 that supersedes the existing revenue recognition guidance under U.S. GAAP. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. The new standard became effective for us beginning December 30, 2017. We implemented the standard using the modified retrospective approach which recognized the cumulative effect of application on that date. As a result of adopting this new standard, we made an adjustment that increased Revenue on our Consolidated Statement of Income and decreased Accumulated deficit on our Consolidated Balance Sheet by approximately $3,000. We have applied the guidance in this new standard to all contracts at the date of initial application. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The new guidance simplifies the subsequent measurement of goodwill by eliminating the requirement to perform a Step 2 impairment test to compute the implied fair value of goodwill. Instead, companies will only compare the fair value of a reporting unit to its carrying value (Step 1) and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized may not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This amended guidance is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We adopted this guidance during our fiscal year 2018. Other accounting standards that have been issued by the Financial Accounting Standards Board or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations, and cash flows. For the period ended December 28, 2018, the adoption of other accounting standards had no material impact on our financial positions, results of operations, or cash flows. |
1. SUMMARY OF SIGNIFICANT ACC_3
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | Fifty-two weeks ended December 28, 2018 December 29, 2017 Industrial, manufacturing and warehousing $ 34,207,786 35.1 % $ 33,495,618 34.2 % Construction 18,462,347 19.0 % 19,988,048 20.4 % Hospitality 16,480,095 16.9 % 18,304,637 18.7 % Transportation 15,322,125 15.7 % 14,046,085 14.3 % Retail and Other 12,916,467 13.3 % 12,237,810 12.5 % Total $ 97,388,820 100.0 % $ 98,072,198 100.0 % |
Schedule of earnings per share | December 28, 2018 December 29, 2017 Weighted average number of common shares used in basic net income per common share 4,853,000 5,043,254 Dilutive effects of stock options 2,019 61,752 Weighted average number of common shares used in diluted net income per common share 4,855,019 5,105,006 |
2. PROPERTY AND EQUIPMENT (Tabl
2. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | December 28, 2018 December 29, 2017 Leasehold improvements $ 289,576 $ 268,586 Vehicles and machinery 73,955 100,467 Furniture and fixtures 127,992 127,992 Computer hardware and licensed software 634,117 502,309 Accumulated depreciation (796,385 ) (627,209 ) Total property and equipment, net $ 329,255 $ 372,145 |
3. GOODWILL AND INTANGIBLE AS_2
3. GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and finite-lived intangible assets | December 28, 2018 December 29, 2017 Gross Accumulated amortization Net Gross Accumulated amortization Net Goodwill $ 3,777,568 $ - $ 3,777,568 $ 3,777,568 $ - $ 3,777,568 Finite-lived intangible assets: Customer relationships 430,984 (277,652 ) 153,332 430,984 (170,597 ) 260,387 Non-compete agreements 228,580 (228,580 ) - 228,580 (180,959 ) 47,621 Total finite-lived intangible assets 659,564 (506,232 ) 153,332 659,564 (351,556 ) 308,008 Total goodwill and intangible assets $ 4,437,132 $ (506,232 ) $ 3,930,900 $ 4,437,132 $ (351,556 ) $ 4,085,576 |
Estimated future amortization expenses of intangible assets | Year Obligation 2019 $ 107,746 2020 44,894 Thereafter - Total $ 152,640 |
5. WORKERS' COMPENSATION INSU_2
5. WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Workers Compensation Insurance And Reserves | |
Changes in workers' compensation deposits and liabilities | December 28, 2018 December 29, 2017 Workers’ Compensation Deposits Workers’ compensation deposits available at the beginning of the period $ 301,187 $ 313,340 Deposits refunded (107,203 ) - Deposits applied to payment of claims during the period - (12,153 ) Deposits available for future claims at the end of the period $ 193,984 $ 301,187 Workers’ Compensation Claims Liability Estimated future claims liabilities at the beginning of the period $ 1,948,997 $ 2,706,701 Claims paid during the period (1,850,913 ) (2,246,367 ) Additional future claims liabilities recorded during the period 1,784,014 1,488,663 Estimated future claims liabilities at the end of the period $ 1,882,098 $ 1,948,997 |
6. STOCKHOLDERS EQUITY (Tables)
6. STOCKHOLDERS EQUITY (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Stockholders' equity: | |
Common stock purchases | Total shares purchased Average price per share Total number of shares purchased as part of publicly announced plan Approximate dollar value of shares that may be purchased under the plan December 30, 2017 to January 26, 2018 4,820 $ 5.75 585,892 $ 4,598,243 January 27, 2018 to February 23, 2018 10,541 5.83 596,433 4,536,840 February 24, 2018 to March 30, 2018 7,100 5.62 603,533 4,496,949 March 31, 2018 to April 27, 2018 34,310 5.67 637,843 4,302,379 April 28, 2018 to May 25, 2018 26,382 5.77 664,225 4,150,262 May 26, 2018 to June 29, 2018 42,900 5.66 707,125 3,907,442 June 30, 2018 to July 27, 2018 36,275 6.03 743,400 3,688,744 July 28, 2018 to August 24, 2018 57,400 5.69 800,800 3,361,906 August 25, 2018 to September 28, 2018 69,993 5.77 870,793 2,958,257 September 29, 2018 to October 26, 2018 12,642 5.51 883,435 2,888,566 October 27, 2018 to November 23, 2018 14,153 4.40 897,588 2,826,254 November 24, 2018 to December 28, 2018 7,258 4.05 904,846 2,796,828 Total 323,774 |
7. STOCK BASED COMPENSATION (Ta
7. STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Share-based Compensation [Abstract] | |
Fair value assumptions | 2018 2017 Expected term (years) 5.8 5.8 Expected volatility 59.4% - 59.8 % 61.5 % Dividend yield 0.0 % 0.0 % Risk-free rate 2.1% - 2.4 % 1.1 % |
Schedule of stock options outstanding | Number of shares under options Weighted average exercise price per share Weighted average grand date fair value Outstanding, December 30, 2016 208,166 $ 4.40 2.87 Granted 74,997 5.13 2.65 Forfeited (834 ) 8.04 4.53 Expired (27,334 ) 5.32 3.96 Outstanding, December 29, 2017 254,995 4.49 6.48 Granted 117,500 5.67 3.15 Forfeited (42,187 ) 5.61 2.96 Expired (169,477 ) 3.74 2.47 Outstanding, December 28, 2018 160,831 5.86 3.18 |
Nonvested stock options outstanding | Number of options Weighted average exercise price per share Weighted average grant date fair value Non-vested, December 30, 2016 53,126 $ 4.81 $ 2.98 Granted 74,997 4.49 5.68 Vested (63,750 ) 5.47 2.86 Forfeited (834 ) 8.04 4.53 Non-vested, December 29, 2017 63,539 5.47 2.86 Granted 117,500 5.67 3.15 Vested (54,329 ) 5.65 3.11 Forfeited (42,187 ) 5.61 2.96 Non-vested, December 28, 2018 84,523 5.56 3.05 |
Summary of stock options outstanding and exercisable | Number of options Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding 160,831 $ 5.86 7.6 $ 318,652 Exercisable 76,308 6.18 6.8 - |
Summary of stock by price range | Outstanding options Vested options Range of exercise prices Number of shares outstanding Weighted average contractual life Number of shares exercisable Weighted average contractual life $4.80 - 7.00 Range 144,582 8.2 42,916 8.1 $7.01 - 8.76 Range 16,249 1.9 16,249 1.9 |
8. INCOME TAX (Tables)
8. INCOME TAX (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for deferred income taxes | December 28, 2018 December 29, 2017 Current: Federal $ 473,964 $ 126,487 State 89,414 212,998 Deferred: Federal (211,514 ) 1,586,296 State (146,792 ) 79,747 Provision for income taxes $ 205,072 $ 2,005,528 |
Components of deferred tax assets/liabilities | December 28, 2018 December 29, 2017 Deferred Tax Assets and Liabilities Workers' compensation claims liability $ 469,040 $ 481,299 Depreciation/amortization 59,260 42,227 Bad debt reserve 28,037 69,622 Deferred Rent 17,610 21,235 Accrued vacation 36,202 49,030 Impairment of workers' comp deposit 383,786 - Stock based compensation 35,700 - State net operating loss carryforward 45,805 - Other 4,468 - AMT Credit - 58,189 Total deferred tax asset $ 1,079,908 $ 721,602 |
Schedule of effective income tax rate reconciliation | December 28, 2018 December 29, 2017 Income tax expense based on statutory rate $ 247,665 21.0 % $ 1,252,858 34.0 % Permanent differences 11,633 1.0 % 46,939 1.3 % State income taxes expense net of federal taxes (45,329 ) -3.8 % 220,326 6.0 % Remeasurement of net deferred tax asset at 21% - 0.0 % 349,240 9.5 % Stock based compensation - 0.0 % 36,411 1.0 % Other (8,897 ) -0.8 % 99,754 2.7 % Total taxes on income $ 205,072 17.4 % $ 2,005,528 54.5 % |
9. COMMITMENTS AND CONTINGENC_2
9. COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum operating lease obligations | Year Obligation 2019 $ 1,116,737 2020 778,512 2021 295,769 2022 106,265 2023 24,038 Thereafter - Total $ 2,321,321 |
1. SUMMARY OF SIGNIFICANT ACC_4
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Revenue | $ 97,388,820 | $ 98,072,198 |
Revenue concentration | 100.00% | 100.00% |
Industrial, manufacturing and warehousing | ||
Revenue | $ 34,207,786 | $ 33,495,618 |
Revenue concentration | 35.10% | 34.20% |
Construction | ||
Revenue | $ 18,462,347 | $ 19,988,048 |
Revenue concentration | 19.00% | 20.40% |
Hospitality | ||
Revenue | $ 16,480,095 | $ 18,304,637 |
Revenue concentration | 16.90% | 18.70% |
Transportation | ||
Revenue | $ 15,322,125 | $ 14,046,085 |
Revenue concentration | 15.70% | 14.30% |
Retail and other | ||
Revenue | $ 12,916,467 | $ 12,237,810 |
Revenue concentration | 13.30% | 12.50% |
1. SUMMARY OF SIGNIFICANT ACC_5
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - shares | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Accounting Policies [Abstract] | ||
Weighted average number of common shares used in basic net income per common share | 4,853,000 | 5,043,254 |
Dilutive effects of stock options | 2,019 | 61,752 |
Weighted average number of common shares used in diluted net income per common share | 4,855,019 | 5,105,006 |
1. SUMMARY OF SIGNIFICANT ACC_6
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | |
Dec. 28, 2018USD ($)Integershares | Dec. 29, 2017USD ($)shares | |
Stores in operation | Integer | 67 | |
States in operation | Integer | 22 | |
Allowance for doubtful accounts | $ | $ 113,000 | $ 282,000 |
Present value interest rate | 5.00% | |
Antidilutive shares | shares | 160,831 | 254,995 |
Advertising costs | $ | $ 32,000 | $ 33,000 |
Concentration risk | 100.00% | 100.00% |
Accounts Payable | Two Vendors | ||
Concentration risk | 27.40% | |
Accounts Receivable | Single Vendor | ||
Concentration risk | 12.90% | 11.80% |
2. PROPERTY AND EQUIPMENT (Deta
2. PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 28, 2018 | Dec. 29, 2017 |
Accumulated depreciation | $ (796,385) | $ (627,209) |
Property, plant and equipment, net | 329,255 | 372,145 |
Leasehold Improvements | ||
Property, plan and equipment, gross | 289,576 | 268,586 |
Vehicles and Machinery | ||
Property, plan and equipment, gross | 73,955 | 100,467 |
Furniture and Fixtures | ||
Property, plan and equipment, gross | 127,992 | 127,992 |
Computer Hardware and Licensed Software | ||
Property, plan and equipment, gross | $ 634,117 | $ 502,309 |
2. PROPERTY AND EQUIPMENT (De_2
2. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 169,000 | $ 165,000 |
3. GOODWILL AND INTANGIBLE AS_3
3. GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) | Dec. 28, 2018 | Dec. 29, 2017 |
Intangible assets, gross | $ 4,437,132 | $ 4,437,132 |
Accumulated amortization | (506,232) | (351,556) |
Intangible assets, net | 3,930,900 | 4,085,576 |
Goodwill | ||
Intangible assets, gross | 3,777,568 | 3,777,568 |
Accumulated amortization | 0 | 0 |
Intangible assets, net | 3,777,568 | 3,777,568 |
Customer Relationships | ||
Intangible assets, gross | 430,984 | 430,984 |
Accumulated amortization | (277,652) | (170,597) |
Intangible assets, net | 153,332 | 260,387 |
Non-compete agreements | ||
Intangible assets, gross | 228,580 | 228,580 |
Accumulated amortization | (228,580) | (180,959) |
Intangible assets, net | 0 | 47,621 |
Total finite-lived intangible assets | ||
Intangible assets, gross | 659,564 | 659,564 |
Accumulated amortization | (506,232) | (351,556) |
Intangible assets, net | $ 153,332 | $ 308,008 |
3. GOODWILL AND INTANGIBLE AS_4
3. GOODWILL AND INTANGIBLE ASSETS (Details 1) | Dec. 28, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 107,746 |
2020 | 44,894 |
Thereafter | 0 |
Total | $ 152,640 |
3. GOODWILL AND INTANGIBLE AS_5
3. GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 155,000 | $ 221,000 |
4. ACCOUNT PURCHASE AGREEMENT_2
4. ACCOUNT PURCHASE AGREEMENT & LINE OF CREDIT FACILITY (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Debt Disclosure [Abstract] | ||
Current financing agreement accounts receivable percentage for sale | 90.00% | |
Percent paid to company after account is paid by customers | 10.00% | |
Current facility Maximum | $ 14,000,000 | $ 14,000,000 |
Account purchase agreement facility | $ 398,894 | $ 853,562 |
Per annum rate added to Daily One Month London Interbank Offered Rate | 2.50% | |
Effective interest rate | 5.02% | |
Annual facility fee | 0.50% | |
Letter of credit | $ 6,200,000 |
5. WORKERS' COMPENSATION INSU_3
5. WORKERS' COMPENSATION INSURANCE AND RESERVES (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Workers' Compensation Deposits | ||
Workers' compensation deposits available at the beginning of the period | $ 301,187 | $ 313,340 |
Additional workers' compensation deposits made during the period | (107,203) | 0 |
Deposits applied to payment of claims during the period | 0 | (12,153) |
Deposits available for future claims at the end of the period | 193,984 | 301,187 |
Workers' Compensation Claims Liability | ||
Estimated future claims liabilities at the beginning of the period | 1,948,997 | 2,706,701 |
Claims paid during the period | (1,850,913) | (2,246,367) |
Additional future claims liabilities recorded during the period | 1,784,014 | 1,488,663 |
Estimated future claims liabilities at the end of the period | $ 1,882,098 | $ 1,948,997 |
5. WORKERS' COMPENSATION INSU_4
5. WORKERS' COMPENSATION INSURANCE AND RESERVES (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Mar. 31, 2014 | Apr. 01, 2011 | |
Letter of credit | $ 6,200,000 | |||
Non-cash collateral | 6,400,000 | |||
Workers' compensation expense | 3,800,000 | $ 3,700,000 | ||
ACE | ||||
Maximum amount covered by workers compensation insurance | 500,000 | |||
Collateral deposit | 6,200,000 | |||
Dallas National Insurance | ||||
Collateral deposit | $ 1,800,000 | $ 500,000 | ||
AMS | ||||
Collateral deposit | 500,000 | |||
Current collateral deposit | $ 483,000 | 192,000 | ||
AIG | ||||
Workers' compensation risk pool deposits | $ 100,000 |
6. STOCKHOLDERS' EQUITY (Detail
6. STOCKHOLDERS' EQUITY (Details) | 12 Months Ended |
Dec. 28, 2018USD ($)$ / sharesshares | |
Total shares purchased | 323,774 |
Period 1 | |
Total shares purchased | 4,820 |
Average price per share | $ / shares | $ 5.75 |
Total number of share purchased as part of publicly announced plan | 585,892 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 4,598,243 |
Period 2 | |
Total shares purchased | 10,541 |
Average price per share | $ / shares | $ 5.83 |
Total number of share purchased as part of publicly announced plan | 596,433 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 4,536,840 |
Period 3 | |
Total shares purchased | 7,100 |
Average price per share | $ / shares | $ 5.62 |
Total number of share purchased as part of publicly announced plan | 603,533 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 4,496,949 |
Period 4 | |
Total shares purchased | 34,310 |
Average price per share | $ / shares | $ 5.67 |
Total number of share purchased as part of publicly announced plan | 637,843 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 4,302,379 |
Period 5 | |
Total shares purchased | 26,382 |
Average price per share | $ / shares | $ 5.77 |
Total number of share purchased as part of publicly announced plan | 664,225 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 4,150,262 |
Period 6 | |
Total shares purchased | 42,900 |
Average price per share | $ / shares | $ 5.66 |
Total number of share purchased as part of publicly announced plan | 707,125 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 3,907,442 |
Period 7 | |
Total shares purchased | 36,275 |
Average price per share | $ / shares | $ 6.03 |
Total number of share purchased as part of publicly announced plan | 743,400 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 3,688,744 |
Period 8 | |
Total shares purchased | 57,400 |
Average price per share | $ / shares | $ 5.69 |
Total number of share purchased as part of publicly announced plan | 800,800 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 3,361,906 |
Period 9 | |
Total shares purchased | 69,993 |
Average price per share | $ / shares | $ 5.77 |
Total number of share purchased as part of publicly announced plan | 870,793 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 2,958,257 |
Period 10 | |
Total shares purchased | 12,642 |
Average price per share | $ / shares | $ 5.51 |
Total number of share purchased as part of publicly announced plan | 883,435 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 2,888,566 |
Period 11 | |
Total shares purchased | 14,153 |
Average price per share | $ / shares | $ 4.40 |
Total number of share purchased as part of publicly announced plan | 897,588 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 2,826,254 |
Period 12 | |
Total shares purchased | 7,258 |
Average price per share | $ / shares | $ 4.05 |
Total number of share purchased as part of publicly announced plan | 904,846 |
Approximate dollar value of shares that may yet be purchased under the plan | $ | $ 2,796,828 |
6. STOCKHOLDERS' EQUITY (Deta_2
6. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Stockholders' equity: | ||
Stock issued for services, shares | 10,973 | 9,583 |
Stock issued for services, amount | $ 62,436 | $ 49,700 |
Stock repurchase authorized amount | $ 5,000,000 | |
Shares purchased | 323,774 | 68,799 |
Shares purchased, amount | $ 1,829,153 | $ 375,218 |
Average price per share | $ 5.65 | $ 5.45 |
Stock repurchase remaining amount | $ 2,800,000 |
7. STOCK BASED COMPENSATION (De
7. STOCK BASED COMPENSATION (Details) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation [Abstract] | ||
Expected term (years) | 5 years 9 months 18 days | 5 years 9 months 18 days |
Expected volatility | 61.50% | |
Expected volatility, minimum | 59.40% | |
Expected volatility, maximum | 59.80% | |
Dividend yield | 0.00% | 0.00% |
Risk-free rate | 1.10% | |
Risk-free rate, minimum | 2.10% | |
Risk-free rate, maximum | 2.40% |
7. STOCK BASED COMPENSATION (_2
7. STOCK BASED COMPENSATION (Details 1) - $ / shares | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation [Abstract] | ||
Number of options outstanding, beginning balance | 254,995 | 208,166 |
Options, granted | 117,500 | 74,997 |
Options, forfeited | (42,187) | (834) |
Options, expired | (169,477) | (27,334) |
Number of options outstanding, ending balance | 160,831 | 254,995 |
Weighted Average Exercise Price Per Share | ||
Outstanding at beginning of period | $ 4.49 | $ 4.40 |
Granted | 5.67 | 5.13 |
Forfeited | 5.61 | 8.04 |
Expired | 3.74 | 5.32 |
Outstanding at end of period | 5.86 | 4.49 |
Weighted Average Grant Date Fair Value Per Share | ||
Outstanding at beginning of period | 6.48 | 2.87 |
Granted | 3.15 | 2.65 |
Forfeited | 2.96 | 4.53 |
Expired | 2.47 | 3.96 |
Outstanding at end of period | $ 3.18 | $ 6.48 |
7. STOCK BASED COMPENSATION (_3
7. STOCK BASED COMPENSATION (Details 2) - $ / shares | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation [Abstract] | ||
Number of nonvested options outstanding, beginning balance | 63,539 | 53,126 |
Granted | 117,500 | 74,997 |
Vested | (54,329) | (63,750) |
Forfeited | (42,187) | (834) |
Number of nonvested options outstanding, ending balance | 84,523 | 63,539 |
Weighted Average Exercise Price Per share | ||
Outstanding nonvested at beginning of period | $ 5.47 | $ 4.81 |
Granted | 5.67 | 4.49 |
Vested | 5.65 | 5.47 |
Forfeited | 5.61 | 8.04 |
Outstanding nonvested at end of period | 5.56 | 5.47 |
Outstanding nonvested at beginning of period | 2.86 | 2.98 |
Granted | 3.15 | 5.68 |
Vested | 3.11 | 2.86 |
Forfeited | 2.96 | 4.53 |
Outstanding nonvested at end of period | $ 3.05 | $ 2.86 |
7. STOCK BASED COMPENSATION (_4
7. STOCK BASED COMPENSATION (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 30, 2016 | |
Share-based Compensation [Abstract] | |||
Number of options, outstanding | 160,831 | 254,995 | 208,166 |
Weighted average exercise price per share, outstanding | $ 5.86 | $ 4.49 | $ 4.40 |
Weighted average remaining contractual life (years), outstanding | 7 years 7 months 6 days | ||
Aggregate intrinsic value, outstanding | $ 318,652 | ||
Number of options, exercisable | 76,308 | ||
Weighted average exercise price per share, exercisable | $ 6.18 | ||
Weighted average remaining contractual life (years), exercisable | 6 years 9 months 18 days | ||
Aggregate intrinsic value, exercisable | $ 0 |
7. STOCK BASED COMPENSATION (_5
7. STOCK BASED COMPENSATION (Details 4) - shares | 12 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 30, 2016 | |
Number of options, outstanding | 160,831 | 254,995 | 208,166 |
Weighted average remaining contractual life (years), outstanding | 7 years 7 months 6 days | ||
Number of options, exercisable | 76,308 | ||
Weighted average remaining contractual life (years), exercisable | 6 years 9 months 18 days | ||
$4.80 - $7.00 | |||
Number of options, outstanding | 144,582 | ||
Weighted average remaining contractual life (years), outstanding | 8 years 2 months 12 days | ||
Number of options, exercisable | 4,216 | ||
Weighted average remaining contractual life (years), exercisable | 8 years 1 month 6 days | ||
$7.01 - $8.76 | |||
Number of options, outstanding | 16,249 | ||
Weighted average remaining contractual life (years), outstanding | 1 year 10 months 24 days | ||
Number of options, exercisable | 16,249 | ||
Weighted average remaining contractual life (years), exercisable | 1 year 10 months 24 days |
7. STOCK BASED COMPENSATION (_6
7. STOCK BASED COMPENSATION (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Nov. 17, 2016 | |
Options vested | 54,329 | 63,750 | |
Options, granted | 117,500 | 74,997 | |
Share-based compensation expense | $ 332,089 | $ 156,790 | |
Unrecognized share-based compensation expense | $ 425,000 | ||
Unrecognized share-based compensation expense period of recognition | 2 years 6 months | ||
2008 Stock Incentive Plan | |||
Authorized shares under plan | 533,333 | ||
Remaining life of plan | 10 years | ||
Options vested | 76,000 | 191,000 | |
2016 Stock Incentive Plan | |||
Authorized shares under plan | 500,000 | ||
2008 Employee Stock Purchase Plan | |||
Authorized shares under plan | 83,333 |
8. INCOME TAX (Details)
8. INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Current: | ||
Federal | $ 473,964 | $ 126,487 |
State | 89,414 | 212,998 |
Deferred: | ||
Federal | (211,514) | 1,586,296 |
State | (146,792) | 79,747 |
Provision for income taxes | $ 205,072 | $ 2,005,528 |
8. INCOME TAX (Details 1)
8. INCOME TAX (Details 1) - USD ($) | Dec. 28, 2018 | Dec. 29, 2017 |
Income Tax Disclosure [Abstract] | ||
Workers' compensation claims liability | $ 469,040 | $ 481,299 |
Depreciation and amortization | 59,260 | 42,227 |
Bad debt reserve | 28,037 | 69,622 |
Deferred rent | 17,610 | 21,235 |
Accrued vacation | 36,202 | 49,030 |
Impairment of workers' comp deposit | 383,786 | 0 |
Stock compensation | 35,700 | 0 |
State net operating loss carryforward | 45,805 | 0 |
Other | 4,468 | 0 |
AMT credit | 0 | 58,189 |
Total deferred tax asset | $ 1,079,908 | $ 721,602 |
8. INCOME TAX (Details 2)
8. INCOME TAX (Details 2) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense based on statutory rate | 21.00% | 34.00% |
Income tax expense based on statutory rate, amount | $ 247,665 | $ 1,252,858 |
Permanent difference | 1.00% | 1.30% |
Permanent difference, amount | $ 11,633 | $ 46,939 |
State income taxes expense net of federal taxes | (3.80%) | 6.00% |
State income taxes expense net of federal taxes, amount | $ (45,329) | $ 220,326 |
Remeasurement of net deferred tax assets at 21% | 0.00% | 9.50% |
Remeasurement of net deferred tax assets at 21%, amount | $ 0 | $ 349,240 |
Stock based compensation | 0.00% | 1.00% |
Stock based compensation, amount | $ 0 | $ 36,411 |
Other | (0.80%) | 2.70% |
Other, amount | $ (8,897) | $ 99,754 |
Total taxes (benefits) on income | 17.40% | 54.50% |
Total taxes (benefits) on income, amount | $ 205,072 | $ 2,005,528 |
8. INCOME TAX (Details Narrativ
8. INCOME TAX (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||
Remeasurement of net deferred tax assets at 21% | $ 0 | $ 349,240 |
Combined federal and state tax rates | 17.80% |
9. COMMITMENTS AND CONTINGENC_3
9. COMMITMENTS AND CONTINGENCIES (Details) | Dec. 28, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 1,116,737 |
2020 | 778,512 |
2021 | 295,769 |
2022 | 106,265 |
2023 | 24,038 |
Thereafter | 0 |
Total | $ 2,321,321 |
9. COMMITMENTS AND CONTINGENC_4
9. COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended | 12 Months Ended | ||||
Jun. 26, 2015USD ($) | Dec. 28, 2018USD ($)Integer | Dec. 29, 2017USD ($) | Dec. 30, 2016USD ($) | Mar. 31, 2014USD ($) | Apr. 01, 2011USD ($) | |
Reserves on the deposit balance | $ 250,000 | |||||
Total reserves on the deposit balance | $ 500,000 | |||||
Cash and cash equivalents reported by receiver | $ 87,800,000 | |||||
Liabilities reported by receiver | $ 252,000,000 | |||||
Lease expense | $ 1,500,000 | $ 1,400,000 | ||||
Minimum | ||||||
Store size (in sqft) | Integer | 1,000 | |||||
Office lease term | 3 years | |||||
Maximum | ||||||
Store size (in sqft) | Integer | 5,000 | |||||
Office lease term | 5 years | |||||
Dallas National Insurance | ||||||
Collateral deposit per year | $ 900,000 | |||||
Collateral deposit | $ 1,800,000 | $ 500,000 |
Uncategorized Items - ccni-2018
Label | Element | Value |
Restricted Cash [Default Label] | us-gaap_RestrictedCash | $ 12,853 |
Restricted Cash [Default Label] | us-gaap_RestrictedCash | $ 69,423 |