Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 01, 2017 | Mar. 17, 2017 | Jul. 03, 2016 | |
Entity Registrant Name | UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC. | ||
Entity Trading Symbol | UNIR | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 1, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,172,706 | ||
Current Fiscal Year End Date | --01-01 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 34,223,508 | ||
Common Class B [Member] | |||
Entity Common Stock, Shares Outstanding | 1,619,102 | ||
Ordinary Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 17,106,458 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,321,586 | $ 1,910,112 |
Accounts receivable, net | 14,555,463 | 14,209,056 |
Inventories, net | 17,046,171 | 17,527,728 |
Other current assets | 2,485,213 | 2,891,007 |
Related party receivable | 25,456 | 23,298 |
Total Current Assets | 35,433,889 | 36,561,201 |
PROPERTY AND EQUIPMENT, NET | 13,611,494 | 14,003,276 |
OTHER ASSETS | ||
Intangible assets | 3,133,564 | 3,534,936 |
Goodwill | 1,079,175 | 1,079,175 |
Other long-term assets | 5,410,375 | 3,095,414 |
Total Other Assets | 9,623,114 | 7,709,525 |
TOTAL ASSETS | 58,668,497 | 58,274,002 |
CURRENT LIABILITIES | ||
Checks issued in excess of bank balance | 679,494 | 322,307 |
Line of credit | 16,799,592 | 16,577,279 |
Current maturities of long-term debt | 851,988 | 639,018 |
Current maturities of capital lease obligations | 368,718 | 489,978 |
Accounts payable | 7,331,213 | 7,592,510 |
Accrued expenses | 3,645,526 | 3,941,296 |
Related party obligation | 371,161 | 276,880 |
Current portion of postretirement benefit liability - health and life | 158,527 | 136,725 |
Total Current Liabilities | 30,206,219 | 29,975,993 |
LONG-TERM LIABILITIES | ||
Long-term debt, less current portion | 1,994,910 | 2,134,243 |
Capital lease obligations, less current portion | 856,171 | 1,469,317 |
Related party lease financing obligations | 2,162,151 | 2,164,682 |
Long-term debt to related parties | 2,826,907 | 4,449,243 |
Postretirement benefit liability - health and life, less current portion | 2,883,684 | 2,836,638 |
Other long-term liabilities | 838,308 | 975,781 |
Total Long-Term Liabilities | 11,562,131 | 14,029,904 |
Total Liabilities | 41,768,350 | 44,005,897 |
STOCKHOLDERS' EQUITY | ||
Preferred units, Series A UEP Holdings, LLC, 200,000 units issued and outstanding ($100 issue price) | 617,571 | 617,571 |
Preferred units, Series B UEP Holdings, LLC, 150,000 units issued and outstanding ($100 issue price) | 463,179 | 463,179 |
Preferred stock, Engineered Products Acquisition Limited, 50 shares issued and outstanding ($1.51 stated value) | 75 | 75 |
Common stock, 95,000,000 shares authorized ($.001 par value) 18,727,782 and 18,890,909 shares issued and outstanding as of January 1, 2017 and January 3, 2016, respectively | 18,728 | 18,892 |
Additional paid-in capital | 34,653,894 | 34,823,886 |
Accumulated deficit | (17,174,814) | (21,674,478) |
Accumulated other comprehensive income | (1,678,486) | 18,980 |
Total Stockholders' Equity | 16,900,147 | 14,268,105 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 58,668,497 | $ 58,274,002 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 01, 2017 | Jan. 03, 2016 |
Assets [Abstract] | ||
Preferred Stock Par value | $ 100 | $ 100 |
Preferred Stock shares authorized | 5,000,000 | 5,000,000 |
Series A UEP Holdings LLC par value | $ 100 | $ 100 |
Series A UEP Holdings LLC shares issued | 200,000 | 200,000 |
Series A UEP Holdings LLC shares outstanding | 200,000 | 200,000 |
Series B UEP Holdings LLC par value | $ 100 | $ 100 |
Series B UEP Holdings LLC shares issued | 150,000 | 150,000 |
Series B UEP Holdings LLC shares outstanding | 150,000 | 150,000 |
Preferred Stock,Engineered Products Acquisition limited shares Par value | $ 1.51 | $ 1.51 |
Preferred Stock,Engineered Products Acquisition limited shares issued | 50 | 50 |
Preferred Stock,Engineered Products Acquisition limited shares outstanding | 50 | 50 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 95,000,000 | 95,000,000 |
Common Stock, shares issued | 18,727,782 | 18,890,909 |
Common Stock, shares outstanding | 18,727,782 | 18,890,909 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Revenues [Abstract] | ||
NET SALES | $ 100,377,278 | $ 99,761,973 |
COST OF GOODS SOLD | 77,515,316 | 77,813,354 |
Gross Profit | 22,861,962 | 21,948,619 |
OPERATING EXPENSES: | ||
Selling | 5,078,706 | 5,201,199 |
General and administrative | 8,008,975 | 7,779,012 |
Research and development | 1,727,616 | 1,728,867 |
OPERATING EXPENSES | 14,815,297 | 14,709,078 |
Operating Income | 8,046,665 | 7,239,541 |
OTHER EXPENSE: | ||
Interest and other debt related expense | (1,616,120) | (1,613,391) |
Other expense | (249,640) | (65,361) |
Other Expense | (1,865,760) | (1,678,752) |
INCOME BEFORE TAX BENEFIT | 6,180,905 | 5,560,789 |
TAX BENEFIT | (1,198,557) | (2,193,054) |
NET INCOME | 7,379,462 | 7,753,843 |
Preferred stock dividend | (2,879,798) | (2,801,687) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 4,499,664 | $ 4,952,156 |
EARNINGS PER COMMON SHARE: | ||
Basic | $ 0.24 | $ 0.35 |
Diluted | $ 0.24 | $ 0.26 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||
Basic | 18,828,378 | 14,334,485 |
Diluted | 18,869,709 | 19,040,032 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
COMPREHENSIVE INCOME | ||
NET INCOME | $ 7,379,462 | $ 7,753,843 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Minimum benefit liability adjustment | (76,405) | (391,785) |
Foreign currency translation adjustment | (1,621,061) | (380,197) |
OTHER COMPREHENSIVE LOSS | (1,697,466) | (771,982) |
COMPREHENSIVE INCOME | 5,681,996 | 6,981,861 |
Preferred stock dividend | (2,879,798) | (2,801,687) |
COMPREHENSIVE INCOME TO COMMON SHAREHOLDERS | $ 2,802,198 | $ 4,180,174 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Preferred Stock [Member]Preferred A Shares [Member] | Preferred Stock [Member]Preferred B Shares [Member] | Preferred Stock [Member]Preferred C Shares [Member] | Ueph Series A Units [Member] | UEPH Series B Units | EPAL Preferred Shares | Common Stock [Member] | Additional Paid-In Capital [Member] | Accmulated Deficit | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 28, 2014 | $ 798,500 | $ 270,160 | $ 1,600,467 | $ 617,571 | $ 463,179 | $ 75 | $ 14,352 | $ 32,549,585 | $ (26,626,634) | $ 790,962 | $ 10,478,217 |
Balance, shares at Dec. 28, 2014 | 9,715 | 2,702 | 16,124 | 200,000 | 150,000 | 50 | 14,351,398 | ||||
Net Income | 7,753,843 | 7,753,843 | |||||||||
Conversion of Preferred Stock | $ (798,500) | $ (270,160) | $ (1,600,467) | $ 4,757 | 2,664,370 | ||||||
Conversion of Preferred Stock, shares | (9,715) | (2,702) | (16,124) | 4,756,814 | 4,756,814 | ||||||
Other comprehensive loss | (771,982) | $ (771,982) | |||||||||
Stock-based compensation expense | 98,566 | 98,566 | |||||||||
Purchase treasury shares at cost | $ (217) | (488,635) | (488,852) | ||||||||
Purchase treasury shares at cost, shares | (217,303) | ||||||||||
Preferred stock dividend | $ (2,801,687) | (2,801,687) | |||||||||
Balance at Jan. 03, 2016 | $ 617,571 | $ 463,179 | $ 75 | $ 18,892 | 34,823,886 | (21,674,478) | 18,980 | 14,268,105 | |||
Balance, shares at Jan. 03, 2016 | 200,000 | 150,000 | 50 | 18,890,909 | |||||||
Net Income | 7,379,462 | 7,379,462 | |||||||||
Other comprehensive loss | (1,697,466) | (1,697,466) | |||||||||
Issuance of common stock | $ 3 | (3) | |||||||||
Issuance of common stock, shares | 3,576 | ||||||||||
Stock-based compensation expense | 381,262 | 381,262 | |||||||||
Purchase treasury shares at cost | $ (167) | (551,251) | (551,418) | ||||||||
Purchase treasury shares at cost, shares | (166,703) | ||||||||||
Preferred stock dividend | (2,879,798) | (2,879,798) | |||||||||
Balance at Jan. 01, 2017 | $ 617,571 | $ 463,179 | $ 75 | $ 18,728 | $ 34,653,894 | $ (17,174,814) | $ (1,678,486) | $ 16,900,147 | |||
Balance, shares at Jan. 01, 2017 | 200,000 | 150,000 | 50 | 18,727,782 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||
Net income | $ 7,379,462 | $ 7,753,843 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation | 1,706,996 | 1,551,295 |
Stock-based compensation expense | 381,262 | 98,566 |
Deferred tax benefit | (1,925,000) | (2,511,000) |
Amortization of intangible assets | 20,004 | 20,004 |
Loss on disposal of property and equipment | 76,432 | 47,468 |
Noncash postemployment health and life benefit | (76,405) | (180,915) |
Changes in assets and liabilities: | ||
Accounts receivable | (1,997,110) | (37,619) |
Inventories | (834,706) | (472,499) |
Other current assets | 178,050 | 5,278 |
Related party receivable | 29,301 | 31,372 |
Other long-term assets | (72,697) | 19,222 |
Accounts payable | 619,464 | (1,565,291) |
Accrued expenses | 69,390 | 332,056 |
Postretirement benefit liability - health and life | 68,848 | (15,116) |
Other long-term liabilities | 20,696 | 224,592 |
Cash Flows provided by Operating Activities | 5,643,987 | 5,301,256 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (2,031,709) | (2,782,525) |
Net payments on life insurance policies | (324,809) | (107,502) |
Cash paid for lease deposit | (37,169) | |
Cash Flows used in Investing Activities | (2,356,518) | (2,927,196) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Checks issued in excess of bank balance, net | 357,187 | (115,838) |
Net advances on line of credit | 1,225,943 | 508,038 |
Payments on long-term debt | (318,064) | (256,176) |
Proceeds from issuance of long-term debt and capital lease obligations | 350,000 | 2,149,010 |
Payments on capital lease obligations | (441,689) | (337,223) |
Proceeds from (payments on) related party obligation | (1,422,047) | 3,533 |
Payment of preferred stock dividends | (2,860,825) | (2,479,665) |
Purchase of treasury stock | (551,418) | (488,852) |
Cash Flows used in Financing Activities | (3,660,913) | (1,017,173) |
Net Change in Cash and Cash Equivalents | (373,444) | 1,356,887 |
Cash and Cash Equivalents - Beginning of Period | 1,910,112 | 604,234 |
Effects of currency translation on cash and cash equivalents | (215,082) | (51,009) |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 1,321,586 | $ 1,910,112 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 01, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - Summary of Significant Accounting Policies Description of the Business UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC. (the “Company”) is primarily engaged in the development, manufacturing and distribution of vinyl coated fabrics primarily for use in transportation, residential, hospitality, health care, office furniture and automotive applications. The Company’s customers are located primarily throughout North America and Europe. On April 29, 2015, the Board of Directors adopted an amendment to the Articles of Incorporation to change the Company’s name from Invisa, Inc. to Uniroyal Global Engineered Products, Inc. On June 25, 2015, the stockholders approved the amendment. The amended and restated Articles of Incorporation were filed with the Nevada Secretary of State and became effective on July 15, 2015. On November 10, 2014 the Company acquired all of the ownership interests in Uniroyal Engineered Products, LLC (“Uniroyal”), a U.S. manufacturer of textured coatings, and all of the ordinary common stock of Engineered Products Acquisition Limited (“EPAL”), the holding company for Wardle Storeys (Group) Limited (“Wardle Storeys”), a European manufacturer of textured coatings and polymer films. The Company made the acquisition of Uniroyal through its newly formed subsidiary, UEP Holdings, LLC (“UEPH”). The aggregate purchase consideration paid for 100% of the outstanding equity of Uniroyal was preferred ownership interests issued by UEPH having a liquidation preference of $35 million. See Note 14 for a description of the preferred units issued. In a separate transaction, the Company purchased EPAL for 100 shares of the Company’s Common Stock and the Company’s guaranty of outstanding EPAL preferred stock retained by the seller, having a liquidation preference of £12,518,240 (approximately $20 million at closing). The principal owner of Uniroyal and EPAL also owned all of the Company’s outstanding shares of Series A preferred stock and Series B preferred stock; a substantial portion of the Company’s outstanding Series C preferred stock; and approximately 6.8 million shares of Invisa common stock. As a result of this beneficial ownership, the seller controls in excess of 80% of the Company’s voting rights in all matters to come before the Company’s shareholders. As a result of this common ownership , In December 2016 the Company changed the name of EPAL to Uniroyal Global (Europe) Limited (“UGEL”) and the name of Wardle Storeys to Uniroyal Global Limited (“UGL”). The Company and its subsidiaries have adopted a 52/53-week fiscal year ending on the Sunday nearest to December 31. The years ended January 1, 2017 and January 3, 2016 were 52-week and 53-week years, respectively. Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries and are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). All intercompany balances have been eliminated. The Company manages its operations on a consolidated, integrated basis in order to optimize its equipment and facilities and to effectively service its global customer base, and concludes that it operates in a single business segment. Cash and Cash Equivalents The Company defines cash and cash equivalents as highly liquid, short‑term investments with a maturity at the date of acquisition of three months or less. The Company maintains cash in bank accounts which, at times, exceeds federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks. Accounts Receivable Accounts receivable are recorded net of an allowance for doubtful accounts, returns and discounts of $328,427 and $282,152 as of January 1, 2017 and January 3, 2016, respectively. On an ongoing basis, the Company evaluates its accounts receivable based on individual customer circumstances, historical write‑offs and collections, and current industry and customer credit conditions, and adjusts its allowance for doubtful accounts accordingly. The Company’s policy regarding write‑offs and collection efforts varies based on individual customer circumstances. Past due accounts receivable are determined based on individual customer credit terms. Customer Rebates The Company records customer rebates as a reduction of net sales and accounts receivable. Accounts receivable are recorded net of an allowance for customer rebates of $137,141 and $207,551 as of January 1, 2017 and January 3, 2016. Inventories Inventories are valued at the lower of cost, using the first‑in, first‑out (FIFO) method, or market. The Company and its subsidiaries have policies which are consistently applied to maintain reserves for obsolescence based on specific identification or a percentage of the amount on hand based on inventory aging. Property and Equipment Property and equipment are stated at cost. Major expenditures for property and equipment are capitalized. Maintenance, repairs, and minor refurbishments are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and resulting gains or losses are included in income. Property and equipment are depreciated using the straight‑line method over their estimated useful lives. For income tax reporting purposes, depreciation is calculated using both applicable straight‑line methods and accelerated methods or capital allowances based on the various taxing jurisdictions’ approved methods. Cash Surrender Value of Insurance Policies Cash surrender value of insurance policies is valued at the cash surrender value of the contract as determined by the life insurance company. The gross cash value of the insurance policies totaled $468,998 and $144,189 as of January 1, 2017 and January 3, 2016, respectively. The cash value of the insurance policies are included in other long‑term assets on the accompanying Consolidated Balance Sheets. Impairment of Finite-Lived Long‑Lived Assets The Company reviews long‑lived assets, including property, equipment, and intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized when the estimated future cash flows from the use of the asset are less than the carrying amount of that asset. To date, there have been no such losses. Goodwill and Intangible Indefinite-Lived Assets Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired. Trademarks are recorded at estimated fair value at the date they were acquired in certain business acquisitions. To the extent it has been determined that the carrying value of goodwill or trademarks is not recoverable and is in excess of its fair value, an impairment loss is recognized. Impairment is reviewed annually. No impairment loss was deemed necessary as of January 1, 2017 or January 3, 2016. Income Taxes The Company follows ASC 740 Income Taxes for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax asset to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. The tax effects from an uncertain tax position are recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company does not believe there is any uncertainty with respect to its tax positions which would result in a material change to the financial statements. The Company files income tax returns in the United States as a C-Corporation, and in several state jurisdictions and in the United Kingdom. The Company’s subsidiary , , The Company's tax returns for tax years 2012 and thereafter are subject to examination by taxing authorities. The Company records interest and penalties associated with uncertain tax positions related to these tax filings as interest expense. For the years ended January 1, 2017 and January 3, 2016, the Company has recorded no expense for interest or penalties. Derivatives The Company recognizes all of its derivative instruments as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, as to whether the hedge is a cash flow hedge or a fair value hedge. The Company incurs foreign currency risk on sales and purchases denominated in other currencies, primarily the British Pound Sterling and the Euro. Foreign currency exchange contracts are used by the Company principally to limit the exchange rate fluctuations of the Euro. The Euro risk is partially limited due to natural cash flow offsets. Currency exchange contracts are purchased for approximately 25% of the net risk. These contracts are not designated as cash flow hedges for accounting purposes. Changes in fair value of these contracts are reported in net earnings as part of other income and expense. Fair Value of Financial Instruments The Company’s short term financial instruments consist of cash and cash equivalents, receivables, accounts payable and the lines of credit. The Company adjusts the carrying value of financial assets denominated in other currencies such as cash, receivables, accounts payable and the lines of credit using the appropriate exchange rates at the balance sheet date. The Company believes that the carrying values of these short term financial instruments approximate their estimated fair values. The fair value of the Company’s long term debt is estimated based on current rates for similar instruments with the same remaining maturities. In determining the current interest rates for similar instruments the Company takes into account its risk of nonperformance. The Company believes that the carrying value of its long term debt approximates its estimated fair value. The Company uses foreign currency exchange contracts which are recorded at their estimated fair values in the accompanying Consolidated Balance Sheets. The fair value of the contracts at January 1, 2017 was an asset in the amount of $9,718 and was included in other current assets. At January 3, 2016, the fair value was a liability in the amount of $36,676 and was included in accrued expense. The fair values of the currency exchange contracts are based upon observable market transactions of spot and forward rates. For the fiscal year ended January 1, 2017, there have been no changes in the application of valuation methods applied to similar assets and liabilities. The Company follows accounting principles generally accepted in the United States of America for measuring, reporting, and disclosing fair value. These standards apply to all assets and liabilities that are measured, reported, and/or disclosed on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Assets and liabilities measured, reported and/or disclosed at fair value will be classified and disclosed in one of the following three categories: Level 1 ‑ Inputs to the valuation methodology are unadjusted quoted market prices for identical assets in active markets that the Company has the ability to access. Level 2 ‑ Observable market based inputs or unobservable inputs that are corroborated by market data. Inputs to the valuation methodology include: > quoted prices for similar assets or liabilities in active markets; > quoted prices for identical or similar assets or liabilities in inactive markets; > inputs other than quoted prices that are observable for the asset or liability; > inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 ‑ Unobservable inputs that are unobservable and not corroborated by market data. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Foreign Currency Translation The financial position and results of operations of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of operations denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, while the capital accounts are translated at the historical rate for the date they were recognized. Revenues and expenses are translated at the weighted average exchange rates during the year. The resulting translation gains and losses on assets and liabilities are recorded in accumulated other comprehensive income (loss), and are excluded from net income until realized through a sale or liquidation of the investment. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Revenue is generally recognized from product sales upon shipment to the customer or upon receipt by the customer in accordance with the agreed upon customer terms when title and risk of ownership have passed, the price to the buyer is fixed or determinable and collectability is reasonably assured. Based on historical results and analysis, we estimate and calculate provisions for customer rebates and sales returns and allowances and record these estimated amounts as an offset to revenue in the same period the related revenue is recognized. Shipping and Handling Costs Shipping and handling costs charged to customers and the costs incurred by the Company are netted. Shipping and handling costs incurred by the Company are included in cost of goods sold . Warranties The Company warrants that the materials and workmanship of its products will meet customer specifications. The Company estimates its accrued warranty expenses based upon prior warranty claims experience. Accrued warranty expenses were not material as of January 1, 2017 and January 3, 2016. Advertising Advertising costs, other than promotional materials, are charged to expense as incurred. Promotional materials are expensed as they are distributed. Advertising expense was $191,688 and $360,429 for the years ended January 1, 2017 and January 3, 2016, respectively. As of January 1, 2017 and January 3, 2016, $116,428 and $135,436, respectively, of promotional materials were included in other long‑term assets in the accompanying consolidated financial statements. Research and Development Research and development costs are charged to expense as incurred. Research and development expense was $1,727,616 and $1,728,867 for the years ended January 1, 2017 and January 3, 2016, respectively. Earnings Per Share The Company calculates basic net income per common share by dividing net income after the deduction of preferred stock or preference dividends by the weighted average number of common shares outstanding. The calculation of diluted net income per share is consistent with that of basic net income per common share but gives effect to all potential common shares (that is, securities underlying options, warrants or convertible securities) that were outstanding during the period, unless the effect is anti-dilutive. For the year ended January 1, 2017, there were 41,331 dilutive common stock equivalents related to stock options included in the calculation of diluted earnings per common share. There were no dilutive common stock equivalents related to stock options for the year ended January 3, 2016. The Company’s 28,541 shares of convertible preferred stock Series A, Series B and Series C which were outstanding at December 28, 2014, were converted into 4,756,814 common shares on December 30, 2015. As a result of this conversion, for the year ended January 1, 2017 there were no dilutive preferred shares outstanding. Future Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued a new standard ASU No. 2014-09, "Revenue from Contracts with Customers . On February 18, 2015 the Financial Accounting Standards Board issued a new standard ASU No. 2015 -0 . On April 7, 2015, the Financial Accounting Standards Board issued a new standard ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability . On July 22, 2015, the Financial Accounting Standards Board issued a new standard ASU No. 2015-11, “Simplifying the Measurement of Inventory”. The new standard requires entities to measure most inventory at the lower of cost and net realizable value, which is a change from the current guidance under which an entity must measure inventory at the lower of cost or market with market defined as replacement cost, net realizable value or net realizable value less a normal profit margin. The ASU will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method. It will be effective for the Company on January 2, 2017. The adoption of this standard for the year ending December 31, 2017 will not have a significant effect on its consolidated financial position, results of operations and cash flows. . On November 20 , - . . On February 25 , - On March 30, 2016 the Financial Accounting Standards Board issued a new standard ASU No. 2016-09, “Compensation – Stock Compensation.” The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. It will be effective for the Company on January 2, 2017. The adoption of this standard for the year ending December 31, 2017 will not have a significant effect on its consolidated financial position, results of operations and cash flows. . On August 26, 2016 the Financial Accounting Standards Board issued a new standard ASU No. 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.” The new standard applies to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. It will be effective for the Company on January 1, 2018. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date. On January 26, 2017 the Financial Accounting Standards Board issued a new standard ASU No. 2017-04, “Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment.” The new standard modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. It will be effective for the Company on December 30, 2019. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date. Subsequent Events The Company has evaluated subsequent events occurring through the date that the financial statements were issued, for events requiring recording or disclosure in the January 1, 2017 financial statements. There were no material events or transactions occurring during this period requiring recognition or disclosure. |
Noncash Transactions and Supple
Noncash Transactions and Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Jan. 01, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Noncash Transactions and Supplemental Disclosure of Cash Flow Information Text Block | NOTE 2 - Noncash Transactions and Supplemental Disclosure of Cash Flow Information During the year January 3, 2016, the Company reduced its borrowings on its lines of credit with additional borrowings on its term loan with Wells Fargo Capital Finance, LLC of $359,002. During the years ended January 1, 2017 and January 3, 2016, the Company paid down its term loans using available borrowings on its various lines of credit of $389,339 and $417,705, respectively. During the years ended January 1, 2017 and January 3, 2016, the Company entered into several new equipment leases and financing obligations with fair values of $619,921 and $1,130,609, respectively, which are accounted for as capital assets. The fair values were added to property and equipment and a corresponding amount to capital lease or financing obligations. The Company’s 28,541 shares of convertible preferred stock Series A, Series B and Series C which were outstanding at December 28, 2014, were converted into 4,756,814 common shares on December 30, 2015. See Note 14. Supplemental disclosure of cash paid for the years ended: January 1, January 3, Interest expense $ 1,592,550 $ 1,542,749 Income taxes $ 273,477 $ 28,069 |
Inventories
Inventories | 12 Months Ended |
Jan. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 3 - Inventories Inventories consist of the following: January 1, January 3, Raw materials $ 5,199,632 $ 5,066,589 Work‑in‑process 4,491,250 4,293,892 Finished goods 8,669,625 9,348,495 18,360,507 18,708,976 Less: Allowance for inventory obsolescence (1,314,336 ) (1,181,248 ) Total Inventories $ 17,046,171 $ 17,527,728 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jan. 01, 2017 | |
OTHER ASSETS | |
Other Current Assets | NOTE 4 – Other Current Assets Other current assets consist of the following: January 1, January 3, Current deferred tax asset, net of valuation $ 1,301,280 $ 1,872,417 Other 1,183,933 1,018,590 Total Other Current Assets $ 2,485,213 $ 2,891,007 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 5 - Property and Equipment The major categories of property and equipment are summarized as follows: Depreciable Lives January 1, January 3, Building and building improvements 8 – 25 yrs. $ 422,910 $ 226,873 Machinery and equipment 8 ‑ 10 yrs. 22,097,617 21,780,293 Computer equipment 3 ‑ 10 yrs. 1,263,127 1,223,229 Furniture and fixtures 7 ‑ 10 yrs. 164,322 172,945 Real estate under lease 20 yrs. 2,165,914 2,165,914 Construction‑in‑progress ‑ 57,530 52,316 Total Property and Equipment 26,171,420 25,621,570 Less: Accumulated depreciation (12,559,926 ) (11,618,294 ) Net Property and Equipment $ 13,611,494 $ 14,003,276 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 01, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | NOTE 6 - Intangible Assets Intangible assets are summarized as follows: Amortizable January 1, January 3, Trademarks and trade names Indefinite $ 3,091,889 $ 3,473,257 Other 5 years 41,675 61,679 Total Intangible Assets $ 3,133,564 $ 3,534,936 |
Other Long-term Assets
Other Long-term Assets | 12 Months Ended |
Jan. 01, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Other Long-term Assets | NOTE 7 – Other Long-term Assets Other long-term assets consist of the following: January 1, January 3, Non-current deferred tax asset, net of valuation $ 4,434,000 $ 2,509,000 Other 976,375 586,414 Total Other Long-term Assets $ 5,410,375 $ 3,095,414 |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Jan. 01, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-term Liabilities | NOTE 8 – Other Long-term Liabilities Other long-term liabilities consist of the following: January 1, January 3, Non-current deferred tax liability $ 790,252 $ 909,376 Other 48,056 66,405 Total Other Long-term Liabilities $ 838,308 $ 975,781 |
Lines of Credit
Lines of Credit | 12 Months Ended |
Jan. 01, 2017 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | NOTE 9 - Lines of Credit The Company’s Uniroyal subsidiary has available a $30,000,000 revolving line of credit financing agreement with Wells Fargo Capital Finance, LLC, which matures on October 17, 2019. Interest is payable monthly at the Eurodollar rate plus 2.25% or Wells Fargo Capital Finance, LLC's prime rate at the Company's election on outstanding balances up to $6,000,000 and prime rate on amounts in excess of $6,000,000. The line of credit weighted average interest rate including unused facility fees was approximately 3.81% as of January 1, 2017. Borrowings on the line of credit are subject to the underlying borrowing base specified in the agreement. The underlying borrowing base is currently determined based upon eligible accounts receivable, inventories and equipment. The line of credit is secured by substantially all of Uniroyal's assets and includes certain financial and restrictive covenants. The outstanding balance on the line of credit (“Uniroyal Line of Credit”) was $9,668,388 and $8,768,140 as of January 1, 2017 and January 3, 2016, respectively. The Company has classified the outstanding balance on this line of credit within current liabilities in the accompanying Consolidated Balance Sheets. The Company’s U.K. subsidiary has available a £8,500,000 (approximately $10.5 million) revolving line of credit financing agreement with Lloyds Bank Commercial Finance Limited (“UK Line of Credit”) which is subject a to six-month notice by either party. The line has several tranches based on currency or underlying security. Interest is payable monthly at the base rate (UK LIBOR or Lloyds Bank Base Rate as published) plus 1.95% to 2.45% depending on the tranche. The line of credit weighted average interest rate was approximately 2.44% as of January 1, 2017. Borrowings on the line of credit are subject to the underlying borrowing base specified in the agreement. The underlying borrowing base is currently determined based upon eligible accounts receivable and inventories. The line of credit is secured by substantially all of the subsidiary's assets and includes certain financial and restrictive covenants. The outstanding balance on the UK Line of Credit was £5,792,236 and £5,264,550 ($7,131,204 and $7,809,139) as of January 1, 2017 and January 3, 2016, respectively. The Company has classified the outstanding balance on this line of credit within current liabilities in the accompanying Consolidated Balance Sheets. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 01, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-Term Debt | NOTE 10 - Long‑Term Debt Long‑term debt consists of the following: January 1, January 3, Uniroyal term loans with Wells Fargo Capital 1,089,721 1,386,917 Term loan with Lloyds Bank Commercial Finance 181,392 319,413 Financing obligation to Kennet Equipment Leasing; 801,153 721,354 Note payable to Balboa Capital Corporation; 213,230 345,577 Note payable to Regents Capital Corporation; 350,000 - Note payable to De Lage Landen Financial 118,073 - Note payable to Ford Motor Credit payable in 44,387 - Note payable to Byline Financial Group, payable in 48,942 - Totals 2,846,898 2,773,261 Less: Current portion (851,988 ) (639,018 ) Long‑Term Portion $ 1,994,910 $ 2,134,243 Principal requirements on long‑term debt for years ending after January 1, 2017 are as follows: Totals 2017 $ 851,988 2018 819,008 2019 890,255 2020 242,256 2021 43,391 Total $ 2,846,898 In June 2015, the Company signed a pre-lease agreement with Kennet Equipment Leasing Limited (“Kennet”) whereby Kennet would advance funds in various tranches to finance the purchase, refurbishing and installation of certain equipment to be used in its UK manufacturing facility. The total financing obligation was £828,000 or approximately $1.02 million. Monthly payments are £16,636 ($20,482) over a 61-month period at 10.9% interest. At January 3, 2016, Kennet had incurred £549,560 or approximately $840,000 based on the exchange rate at that time. This amount was included in property and equipment and a corresponding amount less preliminary payments totaling £71,321 was recorded as a financing obligation . . |
Related Party Obligations
Related Party Obligations | 12 Months Ended |
Jan. 01, 2017 | |
Related Party Obligations | |
Related Party Obligations | NOTE 11 - Related Party Obligations Long‑term debt to related parties consists of the following: January 1, January 3, Senior subordinated promissory notes issued to the $ 2,000,000 $ 2,000,000 Secured promissory note issued to the Company’s - 1,254,822 Senior secured promissory note issued to Centurian 1,194,421 1,470,057 Totals 3,194,421 4,724,879 Less: Current portion (367,514 ) (275,636 ) Total Long-term Debt to Related Parties $ 2,826,907 $ 4,449,243 On November 24, 2015, the Company amended its secured promissory note related to the Wardle Storeys acquisition to convert the principal and interest to Euros rather than British Pounds Sterling. No other terms of the note were changed at that time. The change became effective November 24, 2015. On May 27, 2016, the Company amended the note to change the maturity date from December 31, 2023 to May 31, 2016, effective on that date. The principal of the note in the amount of €1,152,585 or $1,285,593 and accrued interest were paid on May 31, 2016. During 2013, the Company sold real estate to a related party owned by the Company's majority owners and as part of the transaction the Company leased real estate it sold, plus additional land owned by the related party. Due to the terms of the lease, it qualified for treatment as a capital lease and accordingly a lease financing obligation with the related party for $2,165,914 was recognized in addition to a corresponding capital lease asset of the same amount. The lease financing obligation, under which the Company leases its main manufacturing facility and certain other property from the related party lessor entity, accrues interest at 18.20% and currently requires monthly principal and interest payments of $32,439, which are adjusted annually based on the consumer price index. The lease financing obligation matures during October 2033. The Company made a security deposit of $267,500 with the lessor entity at the inception of the lease financing arrangement. This amount is included in other long-term assets in the accompanying Consolidated Balance Sheets. For the years 2014 through 2016 the amount of interest owed exceeded the amount of payments made, resulting in a net increase to the outstanding principal balance of the lease financing obligation. This obligation is shown in the accompanying Consolidated Balance Sheets as Related Party Lease Financing Obligation which has a balance of the following as of January 1, 2017 and January 3, 2016. January 1, January 3, Related party lease financing obligation $ 2,165,798 $ 2,165,926 Less: Current portion (3,647 ) (1,244 ) Long‑Term Portion $ 2,162,151 $ 2,164,682 The current portions of the long-term debt to related parties and the related party lease financing obligation are combined and are shown in current liabilities as related party obligations. January 1, January 3, Current portion of long-term debt to related parties $ 367,514 $ 275,636 Current portion related party lease financing 3,647 1,244 Related Party Obligation $ 371,161 $ 276,880 Principal payments on this obligation and the aforementioned long-term debt to related parties for years ending after January 1, 2017, are as follows: Totals 2017 $ 371,161 2018 2,376,337 2019 382,221 2020 113,645 2021 30,231 Thereafter 2,086,624 Total $ 5,360,219 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | NOTE 12 – Income Taxes The Company files income tax returns in the United States as a C-Corporation, and in several state jurisdictions and in the United Kingdom. The Company’s subsidiary, Uniroyal, is a limited liability company (LLC) for federal and state income tax purposes and as such, its income, losses, and credits are allocated to its members. Prior to November 10, 2014, as the previous owners, the sellers were the sole members and reported the allocations on their personal tax returns. As a result, there was no tax provision on its income prior to November 10, 2014. The Company made the acquisition of Uniroyal through UEPH, a limited liability corporation, which issued preferred ownership interests to the sellers that provide for quarterly dividends. Uniroyal’s post-acquisition taxable income is allocated entirely to UEPH as its sole member and since it is a pass-through entity, this income less the dividends paid to the sellers of Uniroyal is reported on the Company’s tax return. The taxable income applicable to the dividends for the preferred ownership interests is reported to the sellers who report it on their respective individual tax returns. The (benefit) provision for income taxes for the years ended January 1, 2017 and January 3, 2016 were: January 1, January 3, Current Federal $ - $ - State 174,323 100,231 Foreign - - Total current income tax provision 174,323 100,231 Deferred Federal (1,925,000 ) (2,511,000 ) Foreign 552,120 217,715 Total deferred income tax benefit (1,372,880 ) (2,293,285 ) Total income tax benefit $ (1,198,557 ) $ (2,193,054 ) The benefit for income taxes differs from the amount computed by applying the federal statutory income tax rate to income before income taxes. The Company’s combined federal, state and foreign effective tax rate as a percentage before taxes for the years ended January 1, 2017 and January 3, 2016, was a negative 19.4%, and 39.4%, respectively. The following is a reconciliation of the income tax at the effective tax rate with the income tax at the U.S. federal statutory tax rate for the years ended January 1, 2017 and January 3, 2016: January 1, January 3, Income tax at statutory rates $ 2,101,508 $ 1,890,668 Change in deferred tax valuation (1,904,665 ) (2,739,379 ) Foreign tax rate differential (587,609 ) (395,328 ) UEPH preference dividend (646,000 ) (624,104 ) Research and development credit (198,539 ) (406,884 ) Effect of change in tax rate on deferred items (115,420 ) (85,249 ) Other (22,155 ) 66,991 State tax provisions 174,323 100,231 Income tax benefit (1,198,557 ) (2,193,054 ) Effective income tax rate (19.4 )% (39.4 )% The following table summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities: January 1, January 3, Current: Deferred tax assets: Net operating loss carryforward $ 1,301,280 $ 1,872,417 Total current deferred tax assets 1,301,280 1,872,417 Noncurrent: Deferred tax assets: Net operating loss carryforward 4,493,877 2,585,067 Total noncurrent deferred tax assets 4,493,877 2,585,067 Deferred tax liabilities: Trademarks (316,521 ) (403,786 ) Deferred gain (205,949 ) (262,835 ) Capital allowances (327,659 ) (318,822 ) Total noncurrent deferred tax liabilities (850,129 ) (985,443 ) Total noncurrent deferred tax asset (liabilities), net 3,643,748 1,599,624 Net deferred tax assets $ 4,945,028 $ 3,472,041 Noncurrent deferred tax asset as of January 1, 2017 and January 3, 2016 are $4,434,000 and $2,509,000, respectively, resulting from carryforwards related to US net operating losses and $59,877 and $76,067, respectively, of carryforwards resulting from U.K. losses. The $4,434,000 and $2,509,000 of deferred assets for U.S. losses are shown separately in the accompanying financial statements as noncurrent deferred tax assets. The $59,877 and $76,067 deferred assets for U.K. losses are netted with the noncurrent deferred tax liabilities, which are all related to U.K. tax, and shown as net deferred tax liabilities of $790,252 and $909,376. The Company has a federal net operating loss carryforward of approximately $17 million as of January 3, 2016, which expires in years beginning 2020 through 2034. The Company has deferred tax assets as a result of these loss carryforwards which had been reduced by a valuation allowances to $3,764,000 at January 3, 2016. Based on evidence available at January 1, 2017, it was determined that a valuation allowance was no longer required. |
Postretirement and Postemployme
Postretirement and Postemployment Benefit Liabilities | 12 Months Ended |
Jan. 01, 2017 | |
Postretirement and Postemployment Benefit Liabilities | |
Postretirement and Postemployment Benefit Liabilities | NOTE 13 - Postretirement and Postemployment Benefit Liabilities Postretirement Benefit Liability ‑ Health and Life The Company provides certain health care and life insurance benefits for substantially all employees (active or retired) who were employed prior to February 20, 1987. Accounting standards for postretirement benefits require an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. Those changes will be reported in comprehensive income of a business entity. The accumulated postretirement benefit obligation, plan assets and accrued postretirement liability as of the plan's measurement date are as follows: January 1, January 3, Postretirement Benefit Liability ‑ Health and Life $ 3,276,088 $ 3,283,645 Less: Plan assets - - Accrued postretirement benefit cost 3,276,088 3,283,645 Less: Unrecognized net gain (233,877 ) (310,282 ) Accumulated postretirement benefit obligation 3,042,211 2,973,363 Less: Current portion (158,527 ) (136,725 ) Long‑Term Portion $ 2,883,684 $ 2,836,638 Net pension benefit for the plan is comprised of the following: January 1, January 3, Service cost $ - $ 2,651 Interest cost on projected benefit obligation 111,263 107,399 Amortization of prior service cost - (74,631 ) Amortization of net gain (4,692 ) (106,284 ) Net pension expense (benefit) $ 106,571 $ (70,865 ) Reconciliation of losses in other comprehensive income (loss) is as follows: January 1, January 3, Net actuarial loss $ (71,713 ) $ (210,870 ) Amortization of prior service credit and actuarial gain (4,692 ) (180,915 ) Pension adjustment in other comprehensive loss $ (76,405 ) $ (391,785 ) The amount in accumulated other comprehensive income at January 1, 2017 that has not yet been recognized as a component of net periodic benefit costs is $233,877 and consists of unrecognized net actuarial gains. The significant assumptions used in determining the accumulated postretirement benefit obligation and net periodic benefit cost are as follows: January 1, 2017 January 3, 2016 Health Care Cost Trend Rates: 2016 4.00% 4.00% Thereafter 4.00% 4.00% Discount rate 3.67% 3.83% Measurement Date December 31, 2016 December 31, 2015 In addition to the significant assumptions listed above, other assumptions used in determining the accumulated postretirement benefit obligation and net periodic benefit cost are retirement and termination probabilities and mortality estimates. The Company assumes that employees participating in the plan will continue to participate during retirement. The Company also assumes that employees not participating in the plan will not participate in the plan prior to or during retirement. Employer and employee contributions to the plan were $121,052 and $6,924, respectively, during the year ended January 1, 2017 and $136,645 and $5,429, respectively, during the year ended January 3, 2016. Contributions to the plan are made each year based on estimated benefit payments to be paid out of the plan. Estimated benefit payments from the plan for each of the next five years, and in the aggregate for the five years thereafter, are as follows: 2017 $ 158,527 2018 171,831 2019 188,306 2020 186,468 2021 187,588 2022 ‑ 2026 892,170 Total $ 1,784,890 Postemployment Benefit Liability ‑ Severance The Company provides certain severance benefits for substantially all union employees who began their employment prior to 1986. Accounting standards for postemployment benefits require the Company to accrue the estimated cost of future severance payments during the years the employees provide services. The accrued postemployment benefit liability as of January 1, 2017 and January 3, 2016 was $43,462 and $58,309, respectively, and is included in other long-term liabilities. The accrued postemployment benefit liability was determined using discount rates of 3.67% and 3.85% as of January 1, 2017 and January 3, 2016, respectively. Postemployment Benefit Liability ‑ Other Under the terms of the union contract, the Company provides monthly payments of $300 to the spouses of employees who died prior to retirement from the Company. The payments cease upon the earlier of the spouse’s remarrying, the spouse's death or the spouse attaining age 62. The spouses of two former employees are currently receiving benefit payments under this provision of the union contract as of January 1, 2017 and January 3, 2016. The Company has recorded a long‑term liability of $4,594 and $8,096 as of January 1, 2017 and January 3, 2016, respectively, which is included in other long‑term liabilities in the accompanying Consolidated Balance Sheets, related to the estimated future benefit payments to the two former employees' spouses. |
Equity
Equity | 12 Months Ended |
Jan. 01, 2017 | |
Equity [Abstract] | |
Equity | NOTE 14 - Equity The Company has authorized 5,000,000 shares of convertible preferred stock with a $100 face value per share. At December 28, 2014 the Company had the following outstanding: Issued and Series Outstanding Series A 9,715 Series B 2,702 Series C 16,124 On November 17, 2015, the Board of Directors took action which was subsequently amended on December 10, 2015 to create a new class of the Company’s common stock to be known as Class B Common Stock (“Class B”). The Board of Directors authorized 3,666,520 shares of such class with a par value of $0.001. The class had the same entitlement to dividends as may be declared for the ordinary common stock. The class did not have any preference with respect to holders of other equity interests in the Company in the event of any liquidation, dissolution or winding up of the Company. Each share of Class B has the right to 22 votes on matters that come before the shareholders. Each share of Class B is convertible into one share of ordinary common stock at any time. The Board of Directors also adopted a resolution to amend and restate the Designation of Preferences and Rights of Series A Convertible Preferred Stock which was approved by the holders of the Company’s Series A, Series B and Series C convertible preferred stock. The amendment gave the right for each share of Series A Preferred Stock to be converted into 166.66 shares of Class B Common Stock at any time. The shares of Class B Common Stock are not registered and do not trade in the open market. On December 30, 2015, all of shares of the Company’s outstanding Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock were converted to common stock in accordance with the following schedule Number Shares of Class of Common Series of Convertible Preferred Stock Series A 9,715 1,619,102 Class B Common Stock Series B 2,702 450,315 Ordinary Common Stock Series C 16,124 2,687,397 Ordinary Common Stock 4,756,814 The following table summarizes the Company’s common stock outstanding by class: January 1, 2017 January 3, 2016 Ordinary Common Stock 17,108,680 17,271,807 Class B Common Stock 1,619,102 1,619,102 Total 18,727,782 18,890,909 Acquisition On November 10, 2014, the Company acquired Uniroyal and UGEL (previously EPAL), the holding company for UGL (previously Wardle Storeys). Pursuant to the acquisition of Uniroyal, 200,000 units of Series A preferred units and 150,000 units of Series B preferred units of UEPH Holding LLC, a wholly-owned subsidiary of the Company, were issued to the former owners of Uniroyal. Each of the UEP Holdings Series A and Series B preferred units have an issue price of $100 per unit or a total face value of $20,000,000 and $15,000,000, respectively. The Series UEPH A preferred units are entitled to a preferred return of an amount per annum equal to five percent (5.00%) of the issue price of such UEPH Series A preferred unit. The UEPH Series B preferred units are entitled to a preferred return of an amount per annum equal to five and one half percent (5.50%) of the issue price of such UEPH Series B preferred unit, increasing by one half percent (0.50%) on the first anniversary of the effective date and by an additional one half percent (0.50%) on each successive anniversary of the effective date thereafter, up to a maximum of eight percent (8.00%) on the fifth anniversary of the effective date. As of January 1, 2017, the preferred return percentage of the Series UEPH B preferred units is 6.5%. In a separate transaction, the Company also purchased all the outstanding 50 common shares of UGEL, a UK limited company, for 100 shares of its common stock and its guaranty of outstanding UGEL preferred stock retained by the seller, having a liquidation preference of £12,518,240 (approximately $20 million at the date of the transaction). As part of the transaction, 50 shares of the UGEL common stock held by the seller had been converted and reclassified as preferred shares. These preferred shares were entitled to a fixed cumulative preferential dividend of £625,912 per annum payable quarterly (approximately $1,000,000 at the date of the transaction). On November 24, 2015, the Company amended the Articles of Association of UGEL to change the liquidation preference of the 50 shares of preferred stock from £12,518,240 to €17,699,314 (approximately $18,656,837) and the payment of the quarterly dividend from £156,478 to €221,241 (approximately $233,210). These conversions were based on the exchange rate of British Pounds Sterling to the Euro on November 24, 2015. |
Stock Options or Stock Based Co
Stock Options or Stock Based Compensation | 12 Months Ended |
Jan. 01, 2017 | |
Stock Options or Stock Based Compensation | |
Stock Options or Stock Based Compensation | NOTE 15 – Stock Options or Stock Based Compensation On June 25, 2015 the Company’s stockholders approved the adoption of the 2015 Stock Option Plan. This plan provides for the granting of options to purchase the Company’s common stock to employees and directors. The options granted are subject to a vesting schedule as set forth in each individual option agreement. Each option expires on the tenth anniversary of its date of grant unless an earlier termination date is provided in the grant agreement. The maximum aggregate number of shares of common stock that may be optioned and sold under the plan shall be 6% of the shares outstanding on the date of grant. The shares that may be optioned under the plan may be authorized but unissued or may be treasury shares. On July 30, 2015 the Company’s Board of Directors approved the granting of options to purchase 665,000 shares of the Company’s common stock to certain key employees and Company directors. The exercise price was $2.37 per share. The options will vest in three annual installments beginning on July 30, 2016. All options will expire on July 30, 2025. On April 7, 2016, the Company’s Board of Directors approved the granting of options to purchase 360,250 shares of the Company’s common stock to certain key employees and Company directors. The exercise price was $3.57 per share. The options will vest in three annual installments beginning April 7, 2017. All options will expire on April 7, 2026. Compensation expense is recognized on a straight-line basis over a three-year vesting period from date of grant. The Company utilizes the Black-Scholes option pricing model to estimate the fair value of its option awards. The following table summarizes the significant assumptions used in the model for the grants: April 7, July 30, Exercise price $3.57 $2.37 Expected volatility 45% 45% Risk free interest rate 1.30% 1.82% Expected term 6 years 6 years Expected dividends 0% 0% We based the expected volatility on comparable companies’ volatility because we determined that this was more reflective and a better indicator of the Company’s expected volatility than our historical volatility. The historical stock price and volatility have been significantly different from the expected business activities over what will be the service period . On a quarterly basis, we assess changes to our estimate of expected option award forfeitures based on our review of recent forfeiture activity and expected future employee turnover. We recognize the effect of adjustments made to the forfeiture rates, if any, in the period that we change the forfeiture estimate. For the year ended January 1, 2017 there were no forfeiture rate adjustments and future adjustments are not expected to be significant. Stock option activity for the year ended January 1, 2017 is as follows: Stock Options Total Weighted Exercisable Weighted Non- Weighted Outstanding at December 28, 2014 - $- $- $ - Granted - July 30, 2015 665,000 $2.37 - - 665,000 $ 2.37 Vested - Exercised - - - - - Forfeited or cancelled - - - - - Outstanding at 665,000 $2.37 - 665,000 $ 2.37 Granted - April 7, 2016 360,250 $3.57 - 360,250 $ 3.57 Vested 230,001 $2.37 (230,001 ) $ 2.37 Exercised (3,576 ) $2.37 (3,576 ) $2.37 Forfeited or cancelled (23,924 ) $2. (8,924 ) $2.37 (15,000 ) $ 2.77 Outstanding at January 1, 2017 997,750 $2. 80 217,501 $2.37 780,249 $ 2.92 Aggregate Intrinsic Value January 3, 2016 $ 551,950 $ - $ 551,950 Aggregate Intrinsic Value January 1, 2017 $ 597,525 $ 202,276 $ 395,249 Option expense recognized was $381,262 and $98,566 for the years ended January 1, 2017 and January 3, 2016, respectively. As of January 1, 2017, there was $781,524 in unrecognized compensation cost related to the options granted under the 2015 Stock Option Plan. We expect to recognize those costs over the remaining 27 months of the vesting term. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 01, 2017 | |
EARNINGS PER COMMON SHARE: | |
Earnings Per Share | NOTE 16 – Earnings Per Share The following table sets for the computation of earnings per common share - basic and earnings per common share - diluted: January 1, January 3, Numerator Net income available to common $ 4,499,664 $ 4,952,156 Denominator Denominator for basic earnings 18,828,378 14,334,485 Weighted average effect of 41,331 4,705,547 Denominator for dilutive earnings 18,869,709 19,040,032 Basic and Diluted Income Per Net income available to common $ 0.24 $ 0.35 Effect of dilutive securities (0.00 ) (0.09 ) Net income available to common $ 0.24 $ 0.26 For the year ended January 1, 2017, there were 41,331 dilutive common stock equivalents related to stock options included in the calculation of diluted earnings per common share. There were no dilutive common stock equivalents related to stock options for the year ended January 3, 2016. The Company’s 28,541 shares of convertible preferred stock Series A, Series B and Series C which were outstanding at December 28, 2014, were converted into 4,756,814 common shares on December 30, 2015. |
Capital Leases
Capital Leases | 12 Months Ended |
Jan. 01, 2017 | |
Capital Leases | |
Capital Leases | NOTE 17 – Capital Leases The Company has several equipment capital leases which expire from January 2017 through January 2021 with monthly lease payments ranging from approximately $1,119 to $31,120 per month. The capital lease obligations are secured by the related equipment. As of January 1, 2017 and January 3, 2016, assets recorded under capital leases are included in property and equipment in the accompanying Consolidated Balance Sheets. Amortization of items under capital lease obligations has been included with depreciation expense on owned property and equipment in the accompanying Consolidated Statements of Operations. The principal balances of the capital lease obligations are $1,224,889 and $1,959,295 as of January 1, 2017 and January 3, 2016, respectively, with interest rates ranging from 3.84% to 19.15%. Principal requirements on capital leases for years ending after January 1, 2017, are as follows: 2017 $ 425,440 2018 407,939 2019 392,676 2020 104,268 2021 6,106 1,336,429 Less interest (111,540 ) 1,224,889 Less current portion (368,718 ) Total $ 856,171 |
Operating Leases
Operating Leases | 12 Months Ended |
Jan. 01, 2017 | |
Operating Leases: | |
Operating Leases | NOTE 18 – Operating Leases The Company leases office facilities and equipment under various lease agreements which expire from January 2017 through March 2029. The agreements include payments ranging from approximately $31 to $31,421 per month. Total operating lease expense was approximately $1,071,018 and $1,223,242 for the years ended January 1, 2017 and January 3, 2016, respectively. Aggregate minimum rental expense under operating lease obligations for years ending after 2016 are as follows: 2017 $ 885,805 2018 701,504 2019 590,827 2020 477,329 2021 378,548 2022 and thereafter 2,733,547 Total $ 5,767,560 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Jan. 01, 2017 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 19 – Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income (loss) were as follows: Minimum Foreign Currency Total Balance at December 28, 2014 $ 702,067 $ 88,895 $ 790,962 Other comprehensive losses (210,870 ) (380,197 ) (591,067 ) Reclassification adjustment for (180,915 ) (180,915 ) Balance at January 3, 2016 310,282 (291,302 ) 18,980 Other comprehensive losses (71,713 ) (1,621,061 ) (1,692,774 ) Reclassification adjustment for (4,692 ) (4,692 ) Balance at January 1, 2017 $ 233,877 $ (1,912,363 ) $ (1,678,486 ) The gain (loss) reclassified from accumulated other comprehensive income (loss) into income is recorded to the following income statement line items: Other Comprehensive Income Component Income Statement Line Item Minimum Benefit Liability Adjustments General and administrative expense |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 01, 2017 | |
Retirement Plans: | |
Retirement Plans | NOTE 20 - Retirement Plans Effective February 3, 2004, the Company established a 401(k) plan which covers substantially all non‑union U.S. employees. The Company did not make any contributions to the plan during the years ended January 1, 2017 and January 3, 2016. The U.K. wage employees are covered by a statutory mandated defined contribution plan which initially provides that the Company will contribute 1% of the employee’s compensation when the employee contributes 1%. The statutory plan increases the Company’s percentage to 2% when the employee contributes 2% in 2017 and to 3% when the employee contributes 5% in 2018. The employees can opt out of the pension scheme which allows the Company to discontinue its contribution. The UK salaried employees are covered by a separate plan which meets the statutory minimum requirements and provides that the Company will contribute a percentage of the employee’s compensation based on the percentage contributed to the plan by the employee. For employees hired prior to July 2015, the schedule of contribution is as follows: Employee Company 2% 6% 3% 7% 4% 7 ½% 5% 8% For employees hired after June 2015, the schedule of contribution follows the statutory minimum requirements which are being phased in over time. This schedule is as follows: Phase in Period Employee Company Prior April 2018 1% 1% April 2018 to April 2019 2% 3% After April 2019 3% 5% The Company made contributions of £361,447 and £339,419 to the U.K. plans for the years ended January 1, 2017 and January 3, 2016, respectively. |
Concentrations
Concentrations | 12 Months Ended |
Jan. 01, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 21 - Concentrations Labor Union The Company relies on United Steel Workers International Union AFL-CIO, CLC Local #1207 for its U.S. manufacturing employees. The current pending union contract expires on March 12, 2023. The contract will continue from year‑to‑year thereafter, unless notice terminating the agreement is given by either party sixty days prior to March 12th in any year after March 12, 2023. Employees at the U.K. facility can be represented by UNITE although participation is not required . Major Customers Sales to eight automotive industry suppliers accounted for 46% and 43% of total Company sales during the years ended January 1, 2017 and January 3, 2016, respectively. Accounts receivables from these customers totaled 63% and 58% of total receivables as of January 1, 2017 and January 3, 2016, respectively. Major Suppliers The Company purchases a significant quantity of its raw materials from certain major suppliers. Management believes this concentration does not pose a significant risk to the Company's operations as other suppliers are readily available. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 01, 2017 | |
Due from Related Parties, Current [Abstract] | |
Related Party Transactions | NOTE 22 - Related Party Transactions During 2013, the Company entered into a lease arrangement and obtained a lease financing obligation with a related party lessor entity (see Note 11). Related party receivable of $25,456 and $23,298 at January 1, 2017 and January 3, 2016, respectively, were short-term advances to employees that were repaid after January 1, 2017 and January 3, 2016, respectively. The Company’s chief financial officer, who is also on the Company’s Board of Directors, does not have a written employment agreement and works on a part-time basis for the Company. The Company paid $24,000 and $2000 to a company controlled by him as a consulting fee during for the years ended January 1, 2017 and January 3, 2016, respectively. |
Employment Agreements
Employment Agreements | 12 Months Ended |
Jan. 01, 2017 | |
Employment Agreements: | |
Employment Agreements | NOTE 23 - Employment Agreements The Company has employment agreements with three management employees as of January 1, 2017. The initial term of the employment agreements is three years. The term can be renewed or extended as provided for in the employment agreements. The agreements include various benefits to be provided to the employees including salary, bonus, life insurance and severance benefits. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2017 | |
Accounting Policies [Abstract] | |
Description of the Business | Description of the Business UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC. (the “Company”) is primarily engaged in the development, manufacturing and distribution of vinyl coated fabrics primarily for use in transportation, residential, hospitality, health care, office furniture and automotive applications. The Company’s customers are located primarily throughout North America and Europe. On April 29, 2015, the Board of Directors adopted an amendment to the Articles of Incorporation to change the Company’s name from Invisa, Inc. to Uniroyal Global Engineered Products, Inc. On June 25, 2015, the stockholders approved the amendment. The amended and restated Articles of Incorporation were filed with the Nevada Secretary of State and became effective on July 15, 2015. On November 10, 2014 the Company acquired all of the ownership interests in Uniroyal Engineered Products, LLC (“Uniroyal”), a U.S. manufacturer of textured coatings, and all of the ordinary common stock of Engineered Products Acquisition Limited (“EPAL”), the holding company for Wardle Storeys (Group) Limited (“Wardle Storeys”), a European manufacturer of textured coatings and polymer films. The Company made the acquisition of Uniroyal through its newly formed subsidiary, UEP Holdings, LLC (“UEPH”). The aggregate purchase consideration paid for 100% of the outstanding equity of Uniroyal was preferred ownership interests issued by UEPH having a liquidation preference of $35 million. See Note 14 for a description of the preferred units issued. In a separate transaction, the Company purchased EPAL for 100 shares of the Company’s Common Stock and the Company’s guaranty of outstanding EPAL preferred stock retained by the seller, having a liquidation preference of £12,518,240 (approximately $20 million at closing). The principal owner of Uniroyal and EPAL also owned all of the Company’s outstanding shares of Series A preferred stock and Series B preferred stock; a substantial portion of the Company’s outstanding Series C preferred stock; and approximately 6.8 million shares of Invisa common stock. As a result of this beneficial ownership, the seller controls in excess of 80% of the Company’s voting rights in all matters to come before the Company’s shareholders. As a result of this common ownership , In December 2016 the Company changed the name of EPAL to Uniroyal Global (Europe) Limited (“UGEL”) and the name of Wardle Storeys to Uniroyal Global Limited (“UGL”). The Company and its subsidiaries have adopted a 52/53-week fiscal year ending on the Sunday nearest to December 31. The years ended January 1, 2017 and January 3, 2016 were 52-week and 53-week years, respectively. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries and are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). All intercompany balances have been eliminated. The Company manages its operations on a consolidated, integrated basis in order to optimize its equipment and facilities and to effectively service its global customer base, and concludes that it operates in a single business segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company defines cash and cash equivalents as highly liquid, short‑term investments with a maturity at the date of acquisition of three months or less. The Company maintains cash in bank accounts which, at times, exceeds federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded net of an allowance for doubtful accounts, returns and discounts of $328,427 and $282,152 as of January 1, 2017 and January 3, 2016, respectively. On an ongoing basis, the Company evaluates its accounts receivable based on individual customer circumstances, historical write‑offs and collections, and current industry and customer credit conditions, and adjusts its allowance for doubtful accounts accordingly. The Company’s policy regarding write‑offs and collection efforts varies based on individual customer circumstances. Past due accounts receivable are determined based on individual customer credit terms. |
Customer Rebates | Customer Rebates The Company records customer rebates as a reduction of net sales and accounts receivable. Accounts receivable are recorded net of an allowance for customer rebates of $137,141 and $207,551 as of January 1, 2017 and January 3, 2016. |
Inventories | Inventories Inventories are valued at the lower of cost, using the first‑in, first‑out (FIFO) method, or market. The Company and its subsidiaries have policies which are consistently applied to maintain reserves for obsolescence based on specific identification or a percentage of the amount on hand based on inventory aging. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Major expenditures for property and equipment are capitalized. Maintenance, repairs, and minor refurbishments are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and resulting gains or losses are included in income. Property and equipment are depreciated using the straight‑line method over their estimated useful lives. For income tax reporting purposes, depreciation is calculated using both applicable straight‑line methods and accelerated methods or capital allowances based on the various taxing jurisdictions’ approved methods. |
Cash Surrender Value of Insurance Policies | Cash Surrender Value of Insurance Policies Cash surrender value of insurance policies is valued at the cash surrender value of the contract as determined by the life insurance company. The gross cash value of the insurance policies totaled $468,998 and $144,189 as of January 1, 2017 and January 3, 2016, respectively. The cash value of the insurance policies are included in other long‑term assets on the accompanying Consolidated Balance Sheets. |
Impairment of Finite-Lived Long-Lived Assets | Impairment of Finite-Lived Long‑Lived Assets The Company reviews long‑lived assets, including property, equipment, and intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized when the estimated future cash flows from the use of the asset are less than the carrying amount of that asset. To date, there have been no such losses. |
Goodwill and Intangible Indefinite-Lived Assets | Goodwill and Intangible Indefinite-Lived Assets Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired. Trademarks are recorded at estimated fair value at the date they were acquired in certain business acquisitions. To the extent it has been determined that the carrying value of goodwill or trademarks is not recoverable and is in excess of its fair value, an impairment loss is recognized. Impairment is reviewed annually. No impairment loss was deemed necessary as of January 1, 2017 or January 3, 2016. |
Income Taxes | Income Taxes The Company follows ASC 740 Income Taxes for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax asset to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. The tax effects from an uncertain tax position are recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company does not believe there is any uncertainty with respect to its tax positions which would result in a material change to the financial statements. The Company files income tax returns in the United States as a C-Corporation, and in several state jurisdictions and in the United Kingdom. The Company’s subsidiary , , The Company's tax returns for tax years 2012 and thereafter are subject to examination by taxing authorities. The Company records interest and penalties associated with uncertain tax positions related to these tax filings as interest expense. For the years ended January 1, 2017 and January 3, 2016, the Company has recorded no expense for interest or penalties. |
Derivatives | Derivatives The Company recognizes all of its derivative instruments as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, as to whether the hedge is a cash flow hedge or a fair value hedge. The Company incurs foreign currency risk on sales and purchases denominated in other currencies, primarily the British Pound Sterling and the Euro. Foreign currency exchange contracts are used by the Company principally to limit the exchange rate fluctuations of the Euro. The Euro risk is partially limited due to natural cash flow offsets. Currency exchange contracts are purchased for approximately 25% of the net risk. These contracts are not designated as cash flow hedges for accounting purposes. Changes in fair value of these contracts are reported in net earnings as part of other income and expense. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s short term financial instruments consist of cash and cash equivalents, receivables, accounts payable and the lines of credit. The Company adjusts the carrying value of financial assets denominated in other currencies such as cash, receivables, accounts payable and the lines of credit using the appropriate exchange rates at the balance sheet date. The Company believes that the carrying values of these short term financial instruments approximate their estimated fair values. The fair value of the Company’s long term debt is estimated based on current rates for similar instruments with the same remaining maturities. In determining the current interest rates for similar instruments the Company takes into account its risk of nonperformance. The Company believes that the carrying value of its long term debt approximates its estimated fair value. The Company uses foreign currency exchange contracts which are recorded at their estimated fair values in the accompanying Consolidated Balance Sheets. The fair value of the contracts at January 1, 2017 was an asset in the amount of $9,718 and was included in other current assets. At January 3, 2016, the fair value was a liability in the amount of $36,676 and was included in accrued expense. The fair values of the currency exchange contracts are based upon observable market transactions of spot and forward rates. For the fiscal year ended January 1, 2017, there have been no changes in the application of valuation methods applied to similar assets and liabilities. The Company follows accounting principles generally accepted in the United States of America for measuring, reporting, and disclosing fair value. These standards apply to all assets and liabilities that are measured, reported, and/or disclosed on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Assets and liabilities measured, reported and/or disclosed at fair value will be classified and disclosed in one of the following three categories: Level 1 ‑ Inputs to the valuation methodology are unadjusted quoted market prices for identical assets in active markets that the Company has the ability to access. Level 2 ‑ Observable market based inputs or unobservable inputs that are corroborated by market data. Inputs to the valuation methodology include: > quoted prices for similar assets or liabilities in active markets; > quoted prices for identical or similar assets or liabilities in inactive markets; > inputs other than quoted prices that are observable for the asset or liability; > inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 ‑ Unobservable inputs that are unobservable and not corroborated by market data. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. |
Foreign Currency Translation | Foreign Currency Translation The financial position and results of operations of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of operations denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, while the capital accounts are translated at the historical rate for the date they were recognized. Revenues and expenses are translated at the weighted average exchange rates during the year. The resulting translation gains and losses on assets and liabilities are recorded in accumulated other comprehensive income (loss), and are excluded from net income until realized through a sale or liquidation of the investment. |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Revenue is generally recognized from product sales upon shipment to the customer or upon receipt by the customer in accordance with the agreed upon customer terms when title and risk of ownership have passed, the price to the buyer is fixed or determinable and collectability is reasonably assured. Based on historical results and analysis, we estimate and calculate provisions for customer rebates and sales returns and allowances and record these estimated amounts as an offset to revenue in the same period the related revenue is recognized. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs charged to customers and the costs incurred by the Company are netted. Shipping and handling costs incurred by the Company are included in cost of goods sold . |
Warranties | Warranties The Company warrants that the materials and workmanship of its products will meet customer specifications. The Company estimates its accrued warranty expenses based upon prior warranty claims experience. Accrued warranty expenses were not material as of January 1, 2017 and January 3, 2016. |
Advertising | Advertising Advertising costs, other than promotional materials, are charged to expense as incurred. Promotional materials are expensed as they are distributed. Advertising expense was $191,688 and $360,429 for the years ended January 1, 2017 and January 3, 2016, respectively. As of January 1, 2017 and January 3, 2016, $116,428 and $135,436, respectively, of promotional materials were included in other long‑term assets in the accompanying consolidated financial statements. |
Research and Development | Research and Development Research and development costs are charged to expense as incurred. Research and development expense was $1,727,616 and $1,728,867 for the years ended January 1, 2017 and January 3, 2016, respectively. |
Earnings Per Share | Earnings Per Share The Company calculates basic net income per common share by dividing net income after the deduction of preferred stock or preference dividends by the weighted average number of common shares outstanding. The calculation of diluted net income per share is consistent with that of basic net income per common share but gives effect to all potential common shares (that is, securities underlying options, warrants or convertible securities) that were outstanding during the period, unless the effect is anti-dilutive. For the year ended January 1, 2017, there were 41,331 dilutive common stock equivalents related to stock options included in the calculation of diluted earnings per common share. There were no dilutive common stock equivalents related to stock options for the year ended January 3, 2016. The Company’s 28,541 shares of convertible preferred stock Series A, Series B and Series C which were outstanding at December 28, 2014, were converted into 4,756,814 common shares on December 30, 2015. As a result of this conversion, for the year ended January 1, 2017 there were no dilutive preferred shares outstanding. |
Future Accounting Pronouncements | Future Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued a new standard ASU No. 2014-09, "Revenue from Contracts with Customers . On February 18, 2015 the Financial Accounting Standards Board issued a new standard ASU No. 2015 -0 . On April 7, 2015, the Financial Accounting Standards Board issued a new standard ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability . On July 22, 2015, the Financial Accounting Standards Board issued a new standard ASU No. 2015-11, “Simplifying the Measurement of Inventory”. The new standard requires entities to measure most inventory at the lower of cost and net realizable value, which is a change from the current guidance under which an entity must measure inventory at the lower of cost or market with market defined as replacement cost, net realizable value or net realizable value less a normal profit margin. The ASU will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method. It will be effective for the Company on January 2, 2017. The adoption of this standard for the year ending December 31, 2017 will not have a significant effect on its consolidated financial position, results of operations and cash flows. . On November 20 , - . . On February 25 , - On March 30, 2016 the Financial Accounting Standards Board issued a new standard ASU No. 2016-09, “Compensation – Stock Compensation.” The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. It will be effective for the Company on January 2, 2017. The adoption of this standard for the year ending December 31, 2017 will not have a significant effect on its consolidated financial position, results of operations and cash flows. . On August 26, 2016 the Financial Accounting Standards Board issued a new standard ASU No. 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.” The new standard applies to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. It will be effective for the Company on January 1, 2018. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date. On January 26, 2017 the Financial Accounting Standards Board issued a new standard ASU No. 2017-04, “Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment.” The new standard modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. It will be effective for the Company on December 30, 2019. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events occurring through the date that the financial statements were issued, for events requiring recording or disclosure in the January 1, 2017 financial statements. There were no material events or transactions occurring during this period requiring recognition or disclosure. |
Noncash Transactions and Supp32
Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Noncash Transactions and Supplemental Disclosure of Cash Flow Information Text Block | January 1, January 3, Interest expense $ 1,592,550 $ 1,542,749 Income taxes $ 273,477 $ 28,069 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | January 1, January 3, Raw materials $ 5,199,632 $ 5,066,589 Work‑in‑process 4,491,250 4,293,892 Finished goods 8,669,625 9,348,495 18,360,507 18,708,976 Less: Allowance for inventory obsolescence (1,314,336 ) (1,181,248 ) Total Inventories $ 17,046,171 $ 17,527,728 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
OTHER ASSETS | |
Schedule of Other Current Assets | January 1, January 3, Current deferred tax asset, net of valuation $ 1,301,280 $ 1,872,417 Other 1,183,933 1,018,590 Total Other Current Assets $ 2,485,213 $ 2,891,007 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciable Lives January 1, January 3, Building and building improvements 8 – 25 yrs. $ 422,910 $ 226,873 Machinery and equipment 8 ‑ 10 yrs. 22,097,617 21,780,293 Computer equipment 3 ‑ 10 yrs. 1,263,127 1,223,229 Furniture and fixtures 7 ‑ 10 yrs. 164,322 172,945 Real estate under lease 20 yrs. 2,165,914 2,165,914 Construction‑in‑progress ‑ 57,530 52,316 Total Property and Equipment 26,171,420 25,621,570 Less: Accumulated depreciation (12,559,926 ) (11,618,294 ) Net Property and Equipment $ 13,611,494 $ 14,003,276 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Amortizable January 1, January 3, Trademarks and trade names Indefinite $ 3,091,889 $ 3,473,257 Other 5 years 41,675 61,679 Total Intangible Assets $ 3,133,564 $ 3,534,936 |
Other Long-term Assets (Tables)
Other Long-term Assets (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Long-term Assets | January 1, January 3, Non-current deferred tax asset, net of valuation $ 4,434,000 $ 2,509,000 Other 976,375 586,414 Total Other Long-term Assets $ 5,410,375 $ 3,095,414 |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Long-term Liabilities | January 1, January 3, Non-current deferred tax liability $ 790,252 $ 909,376 Other 48,056 66,405 Total Other Long-term Liabilities $ 838,308 $ 975,781 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-Term Debt | January 1, January 3, Uniroyal term loans with Wells Fargo Capital 1,089,721 1,386,917 Term loan with Lloyds Bank Commercial Finance 181,392 319,413 Financing obligation to Kennet Equipment Leasing; 801,153 721,354 Note payable to Balboa Capital Corporation; 213,230 345,577 Note payable to Regents Capital Corporation; 350,000 - Note payable to De Lage Landen Financial 118,073 - Note payable to Ford Motor Credit payable in 44,387 - Note payable to Byline Financial Group, payable in 48,942 - Totals 2,846,898 2,773,261 Less: Current portion (851,988 ) (639,018 ) Long‑Term Portion $ 1,994,910 $ 2,134,243 |
Schedule of Principal Requirements on Long-Term Debt | Totals 2017 $ 851,988 2018 819,008 2019 890,255 2020 242,256 2021 43,391 Total $ 2,846,898 |
Related Party Obligations (Tabl
Related Party Obligations (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Related Party Obligations Tables | |
Schedule of Long-term Debt to Related Parties | January 1, January 3, Senior subordinated promissory notes issued to the $ 2,000,000 $ 2,000,000 Secured promissory note issued to the Company’s - 1,254,822 Senior secured promissory note issued to Centurian 1,194,421 1,470,057 Totals 3,194,421 4,724,879 Less: Current portion (367,514 ) (275,636 ) Total Long-term Debt to Related Parties $ 2,826,907 $ 4,449,243 |
Schedule of Related Party Lease Obligation | January 1, January 3, Related party lease financing obligation $ 2,165,798 $ 2,165,926 Less: Current portion (3,647 ) (1,244 ) Long‑Term Portion $ 2,162,151 $ 2,164,682 |
Schedule of Related Party Obligations, Current | January 1, January 3, Current portion of long-term debt to related parties $ 367,514 $ 275,636 Current portion related party lease financing 3,647 1,244 Related Party Obligation $ 371,161 $ 276,880 |
Schedule of Principal Payments Due to Related Parties | Totals 2017 $ 371,161 2018 2,376,337 2019 382,221 2020 113,645 2021 30,231 Thereafter 2,086,624 Total $ 5,360,219 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Benefit) Provision For Income Taxes | January 1, January 3, Current Federal $ - $ - State 174,323 100,231 Foreign - - Total current income tax provision 174,323 100,231 Deferred Federal (1,925,000 ) (2,511,000 ) Foreign 552,120 217,715 Total deferred income tax benefit (1,372,880 ) (2,293,285 ) Total income tax benefit $ (1,198,557 ) $ (2,193,054 ) |
Schedule of Effective Income Tax Rate Reconciliation | January 1, January 3, Income tax at statutory rates $ 2,101,508 $ 1,890,668 Change in deferred tax valuation (1,904,665 ) (2,739,379 ) Foreign tax rate differential (587,609 ) (395,328 ) UEPH preference dividend (646,000 ) (624,104 ) Research and development credit (198,539 ) (406,884 ) Effect of change in tax rate on deferred items (115,420 ) (85,249 ) Other (22,155 ) 66,991 State tax provisions 174,323 100,231 Income tax benefit (1,198,557 ) (2,193,054 ) Effective income tax rate (19.4 )% (39.4 )% |
Schedule of Deferred Tax Assets and Liabilities | January 1, January 3, Current: Deferred tax assets: Net operating loss carryforward $ 1,301,280 $ 1,872,417 Total current deferred tax assets 1,301,280 1,872,417 Noncurrent: Deferred tax assets: Net operating loss carryforward 4,493,877 2,585,067 Total noncurrent deferred tax assets 4,493,877 2,585,067 Deferred tax liabilities: Trademarks (316,521 ) (403,786 ) Deferred gain (205,949 ) (262,835 ) Capital allowances (327,659 ) (318,822 ) Total noncurrent deferred tax liabilities (850,129 ) (985,443 ) Total noncurrent deferred tax asset (liabilities), net 3,643,748 1,599,624 Net deferred tax assets $ 4,945,028 $ 3,472,041 |
Postretirement and Postemploy42
Postretirement and Postemployment Benefit Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Postretirement and Postemployment Benefit Liabilities (Tables): | |
Schedule of Postretirement and Postemployment Benefit Liabilities | January 1, January 3, Postretirement Benefit Liability ‑ Health and Life $ 3,276,088 $ 3,283,645 Less: Plan assets - - Accrued postretirement benefit cost 3,276,088 3,283,645 Less: Unrecognized net gain (233,877 ) (310,282 ) Accumulated postretirement benefit obligation 3,042,211 2,973,363 Less: Current portion (158,527 ) (136,725 ) Long‑Term Portion $ 2,883,684 $ 2,836,638 |
Schedule of Net pension benefit for the plan | January 1, January 3, Service cost $ - $ 2,651 Interest cost on projected benefit obligation 111,263 107,399 Amortization of prior service cost - (74,631 ) Amortization of net gain (4,692 ) (106,284 ) Net pension expense (benefit) $ 106,571 $ (70,865 ) |
Schedule of reconciliation of losses in other comprehensive income (loss) | January 1, January 3, Net actuarial loss $ (71,713 ) $ (210,870 ) Amortization of prior service credit and actuarial gain (4,692 ) (180,915 ) Pension adjustment in other comprehensive loss $ (76,405 ) $ (391,785 ) |
Schedule of significant assumptions used in determining the accumulated postretirement benefit obligation and net periodic benefit | January 1, 2017 January 3, 2016 Health Care Cost Trend Rates: 2016 4.00% 4.00% Thereafter 4.00% 4.00% Discount rate 3.67% 3.83% Measurement Date December 31, 2016 December 31, 2015 |
Schedule of estimated benefit payments from the plan for each of the next five | 2017 $ 158,527 2018 171,831 2019 188,306 2020 186,468 2021 187,588 2022 ‑ 2026 892,170 Total $ 1,784,890 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Class of Stock [Line Items] | |
Schedule of Conversion of Preferred Stock Into Common Stock | Number Shares of Class of Common Series of Convertible Preferred Stock Series A 9,715 1,619,102 Class B Common Stock Series B 2,702 450,315 Ordinary Common Stock Series C 16,124 2,687,397 Ordinary Common Stock 4,756,814 |
Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Schedule of Stock by Class | Issued and Series Outstanding Series A 9,715 Series B 2,702 Series C 16,124 |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Schedule of Stock by Class | January 1, 2017 January 3, 2016 Ordinary Common Stock 17,108,680 17,271,807 Class B Common Stock 1,619,102 1,619,102 Total 18,727,782 18,890,909 |
Stock Options or Stock Based 44
Stock Options or Stock Based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Schedule of Stock Option Plan: | |
Schedule of Summary of Significant assumptions used by utilizing the Black-Scholes Option pricing model | April 7, July 30, Exercise price $3.57 $2.37 Expected volatility 45% 45% Risk free interest rate 1.30% 1.82% Expected term 6 years 6 years Expected dividends 0% 0% |
Schedule of Stock Options Activity | Stock Options Total Weighted Exercisable Weighted Non- Weighted Outstanding at December 28, 2014 - $- $- $ - Granted - July 30, 2015 665,000 $2.37 - - 665,000 $ 2.37 Vested - Exercised - - - - - Forfeited or cancelled - - - - - Outstanding at 665,000 $2.37 - 665,000 $ 2.37 Granted - April 7, 2016 360,250 $3.57 - 360,250 $ 3.57 Vested 230,001 $2.37 (230,001 ) $ 2.37 Exercised (3,576 ) $2.37 (3,576 ) $2.37 Forfeited or cancelled (23,924 ) $2. (8,924 ) $2.37 (15,000 ) $ 2.77 Outstanding at January 1, 2017 997,750 $2. 80 217,501 $2.37 780,249 $ 2.92 Aggregate Intrinsic Value January 3, 2016 $ 551,950 $ - $ 551,950 Aggregate Intrinsic Value January 1, 2017 $ 597,525 $ 202,276 $ 395,249 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Earnings Per Share Tables | |
Earnings Per Share, Basic and Diluted | January 1, January 3, Numerator Net income available to common $ 4,499,664 $ 4,952,156 Denominator Denominator for basic earnings 18,828,378 14,334,485 Weighted average effect of 41,331 4,705,547 Denominator for dilutive earnings 18,869,709 19,040,032 Basic and Diluted Income Per Net income available to common $ 0.24 $ 0.35 Effect of dilutive securities (0.00 ) (0.09 ) Net income available to common $ 0.24 $ 0.26 |
Capital Leases (Tables)
Capital Leases (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Capital Leases Tables | |
Schedule of Capital Leases Principal Requirements | 2017 $ 425,440 2018 407,939 2019 392,676 2020 104,268 2021 6,106 1,336,429 Less interest (111,540 ) 1,224,889 Less current portion (368,718 ) Total $ 856,171 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Schedule of operating leases (Tables): | |
Schedule of Future Minimum Rental Payments for Operating Leases | 2017 $ 885,805 2018 701,504 2019 590,827 2020 477,329 2021 378,548 2022 and thereafter 2,733,547 Total $ 5,767,560 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Minimum Foreign Currency Total Balance at December 28, 2014 $ 702,067 $ 88,895 $ 790,962 Other comprehensive losses (210,870 ) (380,197 ) (591,067 ) Reclassification adjustment for (180,915 ) (180,915 ) Balance at January 3, 2016 310,282 (291,302 ) 18,980 Other comprehensive losses (71,713 ) (1,621,061 ) (1,692,774 ) Reclassification adjustment for (4,692 ) (4,692 ) Balance at January 1, 2017 $ 233,877 $ (1,912,363 ) $ (1,678,486 ) |
Gain (Loss) Reclassified from AOCI | Other Comprehensive Income Component Income Statement Line Item Minimum Benefit Liability Adjustments General and administrative expense |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Schedule of Retirement Plan for Employees Hired Prior To June 2015 | Employee Company 2% 6% 3% 7% 4% 7 ½% 5% 8% |
Schedule of Retirement Plan for Employees Hired After June 2015 | Phase in Period Employee Company Prior April 2018 1% 1% April 2018 to April 2019 2% 3% After April 2019 3% 5% |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Description of the Business) (Details) shares in Millions | Nov. 10, 2014USD ($)shares | Nov. 10, 2014GBP (£) | Jan. 01, 2017USD ($) | Jan. 01, 2017GBP (£) | Nov. 24, 2015USD ($) | Nov. 10, 2014GBP (£)shares |
Acquisition of business, Percentage | 100.00% | 100.00% | ||||
Company purchased EPAL for 100 shares of Invisa's Common Stock and guaranty of outstanding EPAL preferred stock retained by the seller having a liquidation preference | $ 20,000,000 | |||||
As a result of this beneficial ownership, the seller controls in excess of company voting rights in all matters | 80.00% | 80.00% | ||||
Owner of Uniroyal and EPAL also owned all of Company's outstanding shares of preferred stock | shares | 6.8 | 6.8 | ||||
EPAL Preferred Shares | ||||||
Liquidation preference | $ 20,000,000 | |||||
British Pound Sterling [Member] | EPAL Preferred Shares | ||||||
Liquidation preference | £ | £ 12,518,240 | |||||
Uniroyal LLC [Member] | ||||||
Acquisition of business, Amount | $ 35,000,000 | |||||
UGEL (Previously EPAL) [Member] | ||||||
Acquisition of business, Amount | 20,000,000 | |||||
Liquidation preference | $ 20,000,000 | $ 18,656,837 | ||||
UGEL (Previously EPAL) [Member] | British Pound Sterling [Member] | ||||||
Acquisition of business, Amount | £ | £ 12,601,198 | |||||
Liquidation preference | £ | £ 12,518,240 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | Dec. 30, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 |
Accounts receivable | $ 328,427 | $ 282,152 | ||
Customer rebates net of allowance | 137,141 | 207,551 | ||
Cash surrender value of insurance policies | 468,998 | 144,189 | ||
Fair value of the contracts | 9,718 | (36,676) | ||
Advertising costs | 191,688 | 360,429 | ||
Promotional materials expenses included in other long-term assets | 116,428 | 135,436 | ||
Research and development | $ 1,727,616 | $ 1,728,867 | ||
Dilutive common stock equivalents | 41,331 | |||
Convertible preferred stock outstanding | 50 | 50 | 28,541 | |
Common shares issued in conversion | 4,756,814 | |||
Current deferred tax assets | $ 1,301,280 | $ 1,872,417 | ||
Reclassification of current deferred tax assets to non-current deferred tax assets | 1,301,280 | |||
Scenario, Previously Reported [Member] | ||||
Current deferred tax assets | $ 1,301,280 |
Noncash Transactions and Supp52
Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Line of Credit Facility [Line Items] | |||
New equipment leases during the year | $ 619,921 | $ 1,130,609 | |
Interest expense | 1,592,550 | 1,542,749 | |
Income taxes | 273,477 | $ 28,069 | |
Conversion of convertible preferred stock | 4,756,814 | ||
Convertible Preferred Stock [Member] | |||
Line of Credit Facility [Line Items] | |||
Shares outstanding | 28,541 | ||
Wells Fargo Capital Finance LLC Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Proceeds from line of credit | $ 359,002 | ||
Payments on term loans | $ 389,339 | $ 417,705 |
Inventories (Details)
Inventories (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,199,632 | $ 5,066,589 |
Work-in-process | 4,491,250 | 4,293,892 |
Finished goods | 8,669,625 | 9,348,495 |
Inventories gross | 18,360,507 | 18,708,976 |
Less: Allowance for inventory obsolescence | (1,314,336) | (1,181,248) |
Total Inventories | $ 17,046,171 | $ 17,527,728 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
OTHER ASSETS | ||
Current deferred tax asset, net of valuation allowance at January 3, 2016 | $ 1,301,280 | $ 1,872,417 |
Other | 1,183,933 | 1,018,590 |
Total Other Current Assets | $ 2,485,213 | $ 2,891,007 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Property, Plant and Equipment [Abstract] | ||
Building and building improvements | $ 422,910 | $ 226,873 |
Machinery and equipment | 22,097,617 | 21,780,293 |
Computer equipment | 1,263,127 | 1,223,229 |
Furniture and fixtures | 164,322 | 172,945 |
Real estate under lease | 2,165,914 | 2,165,914 |
Construction-in-progress | 57,530 | 52,316 |
Total Property and Equipment | 26,171,420 | 25,621,570 |
Less: Accumulated depreciation | (12,559,926) | (11,618,294) |
Net Property and Equipment | $ 13,611,494 | $ 14,003,276 |
Property and Equipment (Depreci
Property and Equipment (Depreciable Lives) (Details) | 12 Months Ended |
Jan. 01, 2017 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 8 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 25 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 8 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 10 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 10 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 7 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 10 years |
Real Estate Under Lease [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 20 years |
Construction-in-progress [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Depreciable Lives | 0 years |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Trademarks and tradenames | $ 3,091,889 | $ 3,473,257 |
Other | 41,675 | 61,679 |
Total Intangible Assets | $ 3,133,564 | $ 3,534,936 |
Amortizable lives, other intangible assets | 5 years |
Other Long-term Assets (Details
Other Long-term Assets (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Other Assets, Noncurrent [Abstract] | ||
Non-current deferred tax asset, net of valuation allowance at January 3, 2016 | $ 4,434,000 | $ 2,509,000 |
Other | 976,375 | 586,414 |
Total Other Long-term Assets | $ 5,410,375 | $ 3,095,414 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Other Liabilities, Noncurrent [Abstract] | ||
Non-current deferred tax liability | $ 790,252 | $ 909,376 |
Other | 48,056 | 66,405 |
Total Other Long-term Liabilities | $ 838,308 | $ 975,781 |
Lines of Credit (Details)
Lines of Credit (Details) | 12 Months Ended | |||
Jan. 01, 2017USD ($) | Jan. 01, 2017GBP (£) | Jan. 03, 2016USD ($) | Jan. 03, 2016GBP (£) | |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | ||||
Line of credit maximum amount | $ 10,500,000 | |||
Line of credit interest rate description | The line has several tranches based on currency or underlying security. Interest is payable monthly at the base rate (UK LIBOR) plus 1.95% to 2.45% depending on the tranche. | |||
Line of credit interest rate | 2.44% | 2.44% | ||
Line of credit amount outstanding | $ 7,131,204 | $ 7,809,139 | ||
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | British Pound Sterling [Member] | ||||
Line of credit maximum amount | £ | £ 8,500,000 | |||
Line of credit amount outstanding | £ | £ 5,792,236 | £ 5,264,550 | ||
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | Maximum [Member] | ||||
Line of credit premium over base rate | 2.45% | |||
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | Minimum [Member] | ||||
Line of credit premium over base rate | 1.95% | |||
Wells Fargo Capital Finance, LLC [Member] | ||||
Line of credit maximum amount | $ 30,000,000 | |||
Line of credit premium over base rate | 2.50% | |||
Line of credit interest rate description | Interest is payable monthly at the Euro dollar rate plus 2.25% or Wells Fargo Capital Finance, LLCs prime rate at the Companys election on outstanding balances up to $6,000,000 and prime rate on amounts in excess of $6,000,000. | |||
Line of credit interest rate | 3.81% | 3.81% | ||
Line of credit amount outstanding | $ 9,668,388 | $ 8,768,140 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term debt) (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,846,898 | $ 2,773,261 |
Less: Current portion | (851,988) | (639,018) |
Long-Term Portion | 1,994,910 | 2,134,243 |
Wells Fargo Capital Finance LLC Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,089,721 | 1,386,917 |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 181,392 | 319,413 |
Kennet Equipment Leasing Financing Obligation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 801,153 | 721,354 |
Balboa Capital Corporation Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 213,230 | 345,577 |
Regents Capital Corporation Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 350,000 | |
De Lage Landen Financial Services Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 118,073 | |
Ford Motor Credit Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 44,387 | |
Byline Financial Group Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 48,942 |
Long-Term Debt (Schedule of L62
Long-Term Debt (Schedule of Long-term debt) (Parenthetical) (Details) | 12 Months Ended | ||
Jan. 01, 2017USD ($) | Jan. 01, 2017GBP (£) | Jan. 01, 2017GBP (£) | |
Byline Financial Group Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 8.55% | 8.55% | |
Long-term debt, periodic payment | $ 1,999 | ||
Long-term debt, maturity date | Mar. 31, 2019 | Mar. 31, 2019 | |
Ford Motor Credit Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 4.31% | 4.31% | |
Long-term debt, periodic payment | $ 849 | ||
Long-term debt, maturity date | Nov. 30, 2021 | Nov. 30, 2021 | |
De Lage Landen Financial Services Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 7.35% | 7.35% | |
Long-term debt, periodic payment | $ 2,658 | ||
Long-term debt, maturity date | May 31, 2021 | May 31, 2021 | |
Regents Capital Corporation Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 7.41% | 7.41% | |
Long-term debt, periodic payment | $ 10,805 | ||
Long-term debt, maturity date | Dec. 31, 2019 | Dec. 31, 2019 | |
Wells Fargo Capital Finance LLC Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate terms | Monthly interest only payments at the Euro dollar rate plus 2.25% or Wells Fargo Bank, National Association's prime rate | Monthly interest only payments at the Euro dollar rate plus 2.25% or Wells Fargo Bank, National Association's prime rate | |
Long term debt, interest rate | 3.51% | 3.51% | |
Long-term debt, periodic principal payment | $ 24,766 | ||
Long-term debt, frequency of periodic payment | Monthly | Monthly | |
Long-term debt, maturity date | Oct. 31, 2019 | Oct. 31, 2019 | |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, face amount | $ 560,000 | ||
Long-term debt, periodic payment | $ 8,500 | ||
Long-term debt, frequency of periodic payment | Monthly | Monthly | |
Long-term debt, maturity date | Feb. 28, 2019 | Feb. 28, 2019 | |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | British Pound Sterling [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, face amount | £ | £ 340,000 | ||
Long-term debt, periodic payment | £ | £ 5,667 | ||
Kennet Equipment Leasing Financing Obligation [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 10.90% | 10.90% | |
Long-term debt, periodic payment | $ 24,677 | ||
Long-term debt, frequency of periodic payment | Monthly | Monthly | |
Kennet Equipment Leasing Financing Obligation [Member] | British Pound Sterling [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, periodic payment | £ | £ 16,636 | ||
Balboa Capital Corporation Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, periodic payment | $ 37,169 | ||
Long-term debt, frequency of periodic payment | Quarterly | Quarterly |
Long-Term Debt (Principal requi
Long-Term Debt (Principal requirements on long-term debt) (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Long-term Debt, by Current and Noncurrent [Abstract] | ||
2,017 | $ 851,988 | |
2,018 | 819,008 | |
2,019 | 890,255 | |
2,020 | 242,256 | |
2,021 | 43,391 | |
Totals | $ 2,846,898 | $ 2,773,261 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 12 Months Ended | ||||
Jan. 01, 2017USD ($) | Jan. 01, 2017GBP (£) | Jan. 03, 2016USD ($) | Jan. 01, 2017GBP (£) | Jan. 03, 2016GBP (£) | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,846,898 | $ 2,773,261 | |||
Long-term debt, repayments | 318,064 | 256,176 | |||
Proceeds from long-term debt | 350,000 | 2,149,010 | |||
Kennet Equipment Leasing Financing Obligation [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, amount incurred | 840,000 | ||||
Long-term debt | $ 801,153 | $ 721,354 | |||
Long term debt, interest rate | 10.90% | 10.90% | |||
Long-term debt, periodic payment | $ 24,677 | ||||
Long-term debt, frequency of periodic payment | Monthly | Monthly | |||
Long-term debt, repayments | $ 109,000 | ||||
Kennet Equipment Leasing Financing Obligation [Member] | British Pound Sterling [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, amount incurred | £ | £ 549,560 | £ 549,560 | |||
Long-term debt | £ | £ 828,000 | ||||
Long-term debt, periodic payment | £ | £ 16,636 | ||||
Long-term debt, repayments | £ | £ 71,321 | ||||
Proceeds from long-term debt | $ 278,440 |
Related Party Obligations (Long
Related Party Obligations (Long-term debt to related parties) (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Total debt to related parties | $ 3,194,421 | $ 4,724,879 |
Less: Current portion of debt to related parties | (367,514) | (275,636) |
Total Long-term Debt to Related Parties | 2,826,907 | 4,449,243 |
Majority Shareholder [Member] | ||
Total debt to related parties | 2,000,000 | 2,000,000 |
Wardle Storeys [Member] | ||
Total debt to related parties | 1,254,822 | |
Centurian Investors, Inc. [Member] | ||
Total debt to related parties | $ 1,194,421 | $ 1,470,057 |
Related Party Obligations (Lo66
Related Party Obligations (Long-term debt to related parties) (Details) (Parenthetical) | 12 Months Ended |
Jan. 01, 2017USD ($) | |
Majority Shareholder [Member] | |
Long-term debt, interest rate | 9.25% |
Long-term debt, periodic principal payment | $ 2,000,000 |
Long-term debt, maturity date | Oct. 17, 2018 |
Wardle Storeys [Member] | |
Long-term debt, interest rate | 6.25% |
Long-term debt, maturity date | Dec. 31, 2023 |
Long-term debt, principal payment rate due on December 31, 2020 | 10.00% |
Long-term debt, principal payment rate due on December 31, 2021 | 20.00% |
Long-term debt, principal payment rate due on December 31, 2022 | 30.00% |
Long-term debt, principal payment rate due on December 31, 2023 | 40.00% |
Centurian Investors, Inc. [Member] | |
Long-term debt, interest rate | 10.00% |
Long-term debt, periodic principal payment | $ 91,879 |
Related Party Obligations (Narr
Related Party Obligations (Narrative) (Details) | May 31, 2016USD ($) | May 31, 2016EUR (€) | Jan. 01, 2017USD ($) | Nov. 30, 2014USD ($) | Dec. 31, 2013USD ($) |
Lease financing obligation | $ 2,165,914 | ||||
Security deposit made with the lessor entity | $ 267,500 | ||||
Rate of interest payable on capital lease obligation | 18.20% | ||||
Monthly principal and interest payments to be made on capital lease obligation | $ 30,000 | ||||
Increase in the monthly payment due to Lease amendment | $ 1,500 | ||||
Increase in the Security deposit due to Lease amendment | 17,500 | ||||
Increase in the principal amount due to Lease amendment | $ 141,049 | ||||
Wardle Storeys [Member] | |||||
Repayments of related party debt | $ 1,285,593 | ||||
Long-term debt, interest rate | 6.25% | ||||
Wardle Storeys [Member] | Euro [Member] | |||||
Repayments of related party debt | € | € 1,152,585 | ||||
Company's Majority Owners [Member] | |||||
Long-term debt, interest rate | 18.20% | ||||
Long-term debt, periodic payment | $ 32,439 | ||||
Long-term debt, security deposit | $ 267,500 |
Related Party Obligations (Leas
Related Party Obligations (Lease Financing Obligation) (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Related Party Lease Financing Obligation Details | ||
Related party lease financing obligation | $ 2,165,798 | $ 2,165,926 |
Less: Current portion | (3,647) | (1,244) |
Long-Term Portion | $ 2,162,151 | $ 2,164,682 |
Related Party Obligations (Curr
Related Party Obligations (Current Related Party Obligations) (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Related Party Obligations Current Related Party Obligations Details | ||
Current portion of long-term debt to related parties | $ 367,514 | $ 275,636 |
Current portion related party lease financing obligation | 3,647 | 1,244 |
Related Party Obligation | $ 371,161 | $ 276,880 |
Related Party Obligations (Prin
Related Party Obligations (Principal Payments on Related Party Obligations) (Details) | Jan. 01, 2017USD ($) |
Principal requirements on all related party obligations | |
2,017 | $ 371,161 |
2,018 | 2,376,337 |
2,019 | 382,221 |
2,020 | 113,645 |
2,021 | 30,231 |
Thereafter | 2,086,624 |
Total | $ 5,360,219 |
Income Taxes ((Benefit)_Provisi
Income Taxes ((Benefit)/Provision For Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Current: | ||
Federal | ||
State | 174,323 | 100,231 |
Foreign | ||
Total current income tax provision | 174,323 | 100,231 |
Deferred: | ||
Federal | (1,925,000) | (2,511,000) |
Foreign | 552,120 | 217,715 |
Total deferred income tax benefit | (1,372,880) | (2,293,285) |
Total income tax benefit | $ (1,198,557) | $ (2,193,054) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Income Tax at the Effective Tax Rate) (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax at statutory rates | $ 2,101,508 | $ 1,890,668 |
Change in deferred tax valuation | (1,904,665) | (2,739,379) |
Foreign tax rate differential | (587,609) | (395,328) |
UEPH preference dividend | (646,000) | (624,104) |
Research and development credit | (198,539) | (406,884) |
Effect of change in tax rate on deferred items | (115,420) | (85,249) |
Other | (22,115) | 66,991 |
State tax provisions | 174,323 | 100,231 |
Total income tax benefit | $ (1,198,557) | $ (2,193,054) |
Effective income tax rate | (1940.00%) | (3940.00%) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Current deferred tax assets: | ||
Net operating loss carryforward | $ 1,301,280 | $ 1,872,417 |
Total current deferred tax assets | 1,301,280 | 1,872,417 |
Noncurrent deferred tax assets | ||
Net operating loss carryforward | 4,493,877 | 2,585,067 |
Total noncurrent deferred tax assets | 4,493,877 | 2,585,067 |
Noncurrent deferred tax liabilities: | ||
Trademarks | (316,521) | (403,786) |
Deferred gain | (205,949) | (262,835) |
Capital allowances | (327,659) | (318,822) |
Total noncurrent deferred tax liabilities | (850,129) | (985,443) |
Total noncurrent deferred tax asset (liabilities), net | 3,643,748 | 1,599,624 |
Net deferred tax assets | $ 4,945,028 | $ 3,472,041 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforward, noncurrent | $ 4,493,877 | $ 2,585,067 |
Noncurrent deferred tax assets | 4,434,000 | 2,509,000 |
Net deferred tax liabilities, noncurrent | 3,643,748 | 1,599,624 |
US [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforward, noncurrent | 4,434,000 | 2,509,000 |
Noncurrent deferred tax assets | $ 434,000 | 2,509,000 |
Operating loss carryforward | 17,000,000 | |
Net operating loss carryforward | 3,764,000 | |
US [Member] | Minimum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Expiration years | Dec. 31, 2020 | |
US [Member] | Maximum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Expiration years | Dec. 31, 2034 | |
U.K. [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforward, noncurrent | $ 59,877 | 76,067 |
Net deferred tax liabilities, noncurrent | $ 59,877 | $ 76,067 |
Postretirement and Postemploy75
Postretirement and Postemployment Benefit Liabilities (Accumulated Postretirement Benefit Obligation) (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Accumulated postretirement benefit obligation, plan assets and accrued postretirement liability: | ||
Postretirement Benefit Liability - Health and Life | $ 3,276,088 | $ 3,283,645 |
Less: Plan assets | ||
Accrued postretirement benefit cost | 3,276,088 | 3,283,645 |
Less: Unrecognized net gain | (233,877) | (310,282) |
Accumulated postretirement benefit obligation | 3,042,211 | 2,973,363 |
Less: Current portion | (158,527) | (136,725) |
Long-Term Portion | $ 2,883,684 | $ 2,836,638 |
Postretirement and Postemploy76
Postretirement and Postemployment Benefit Liabilities (Net Pension Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Net pension benefit for the plan: | ||
Service cost | $ 2,651 | |
Interest cost on projected benefit obligation | 111,263 | 107,399 |
Amortization of prior service cost | (74,631) | |
Amortization of net gain | (4,692) | (106,284) |
Net pension expense (benefit) | $ 106,571 | $ (70,865) |
Postretirement and Postemploy77
Postretirement and Postemployment Benefit Liabilities (Reconciliation of losses in other comprehensive income (loss)) (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Reconciliation of losses in other comprehensive income (loss): | ||
Net actuarial loss | $ (71,713) | $ (210,870) |
Amortization of prior service credit and actuarial gain | (4,692) | (180,915) |
Pension adjustment in other comprehensive loss | $ (76,405) | $ (391,785) |
Postretirement and Postemploy78
Postretirement and Postemployment Benefit Liabilities (Significant Assumptions) (Details) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Health Care Cost Trend Rates | ||
Health Care Cost Trend Rates 2016 | 4.00% | 4.00% |
Health Care Cost Trend Rates Thereafter | 4.00% | 4.00% |
Discount rate | 3.67% | 3.83% |
Measurement Date | Dec. 31, 2016 | Dec. 31, 2015 |
Postretirement and Postemploy79
Postretirement and Postemployment Benefit Liabilities (Estimated Benefit Payments For Next Five Years) (Details) | Jan. 01, 2017USD ($) |
Estimated benefit payments from the plan for each of the next years: | |
2,017 | $ 158,527 |
2,018 | 171,831 |
2,019 | 188,306 |
2,020 | 186,468 |
2,021 | 187,588 |
2022-2026 | 892,170 |
Total | $ 1,784,890 |
Postretirement and Postemploy80
Postretirement and Postemployment Benefit Liabilities (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Postemployment Benefit Liability - Severance | ||
Defined benefit contributions by employer | $ 121,052 | $ 136,645 |
Defined benefit contributions by employee | 6,924 | 5,429 |
Accrued postemployment benefit liability - severance | $ 43,462 | $ 58,309 |
Accrued postemployment benefit liability was determined using discount rates | 3.67% | 3.85% |
Postemployment Benefit Liability - Other | ||
Company provides monthly payments to the spouses of employees who died prior to retirement from the Company | 300 | |
Number of former employees receiving benefit payments under the provision | 2 | |
Spouse death benefits | $ 4,594 | $ 8,096 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Dec. 30, 2015shares | Nov. 17, 2015$ / sharesshares | Nov. 10, 2014USD ($)$ / sharesshares | Jan. 01, 2017$ / sharesshares | Jan. 03, 2016$ / sharesshares | Nov. 24, 2015USD ($) | Nov. 24, 2015EUR (€) | Dec. 28, 2014shares | Nov. 10, 2014GBP (£) |
Class of Stock [Line Items] | |||||||||
Preferred Stock shares authorized | 5,000,000 | 5,000,000 | |||||||
Preferred Stock Par value | $ / shares | $ 100 | $ 100 | |||||||
Series A Shares issued | 9,715 | ||||||||
Series A Shares outstanding | 9,715 | ||||||||
Series B Shares issued | 2,702 | ||||||||
Series B Shares outstanding | 2,702 | ||||||||
Series C Shares issued | 16,124 | ||||||||
Series C Shares outstanding | 16,124 | ||||||||
Common Stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||||||
Common Stock, shares authorized | 95,000,000 | 95,000,000 | |||||||
Shares converted, number of new common shares issued | 4,756,814 | ||||||||
Common Stock, shares outstanding | 18,727,782 | 18,890,909 | |||||||
Preferred A Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued per share upon conversion of preferred stock | 166.66 | ||||||||
Shares converted, number of new common shares issued | 1,619,102 | ||||||||
Value of shares issued to former owners of Uniroyal | $ | $ 20,000,000 | ||||||||
Preferred B Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares converted, number of new common shares issued | 450,315 | ||||||||
Common Class B [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common Stock, par value | $ / shares | $ 0.001 | ||||||||
Common Stock, shares authorized | 3,666,520 | ||||||||
Common Stock, votes per share | 22 | ||||||||
Shares issued per share upon conversion of common stock | 1 | ||||||||
Common Stock, shares outstanding | 1,619,102 | 1,619,102 | |||||||
Preferred C Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares converted, number of new common shares issued | 2,687,397 | ||||||||
Ordinary Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common Stock, shares outstanding | 17,108,680 | 17,271,807 | |||||||
UGEL (Previously EPAL) [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued to former owners of company acquired | 100 | ||||||||
Number of shares of UGEL purchased | 50 | ||||||||
Preferred shares, liquidation preference | $ | $ 20,000,000 | $ 18,656,837 | |||||||
Preferred shares, fixed dividend payable quarterly | $ | $ 233,210 | ||||||||
UGEL (Previously EPAL) [Member] | Euro [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred shares, liquidation preference | € | € 17,699,314 | ||||||||
Preferred shares, fixed dividend payable quarterly | € | € 221,241 | ||||||||
UGEL (Previously EPAL) [Member] | British Pound Sterling [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred shares, liquidation preference | £ | £ 12,518,240 | ||||||||
Preferred shares, fixed dividend payable quarterly | £ | 156,478 | ||||||||
Uniroyal LLC [Member] | Preferred A Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued to former owners of company acquired | 200,000 | ||||||||
Price per share of shares issued to former owners | $ / shares | $ 100 | ||||||||
Preferred return per annum | 5.00% | ||||||||
Preferred shares, fixed dividend payable quarterly | $ | $ 1,000,000 | ||||||||
Uniroyal LLC [Member] | Preferred B Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued to former owners of company acquired | 150,000 | ||||||||
Price per share of shares issued to former owners | $ / shares | $ 100 | ||||||||
Value of shares issued to former owners of Uniroyal | $ | $ 15,000,000 | ||||||||
Preferred return per annum | 55.00% | ||||||||
Preferred return per annum, first anniversary increase | 0.50% | ||||||||
Uniroyal LLC [Member] | Preferred B Shares [Member] | Maximum [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred return per annum | 8.00% | ||||||||
Uniroyal LLC [Member] | British Pound Sterling [Member] | Preferred A Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred shares, fixed dividend payable quarterly | £ | £ 625,912 |
Stock Options or Stock Based 82
Stock Options or Stock Based Compensation (Significant Assumptions) (Details) - $ / shares | Apr. 07, 2016 | Jul. 30, 2015 |
Accounting Policies [Abstract] | ||
Exercise price | $ 3.57 | $ 2.37 |
Expected volatility | 45.00% | 45.00% |
Risk free interest rate | 13.00% | 18.20% |
Expected term | 6 years | 6 years |
Expected dividends | 0.00% | 0.00% |
Stock Options or Stock Based 83
Stock Options or Stock Based Compensation (Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 07, 2016 | Jul. 30, 2015 | Jan. 01, 2017 | Jan. 03, 2016 |
Total Stock Options | ||||
Outstanding | 665,000 | |||
Granted | 360,250 | 665,000 | ||
Exercised | (3,576) | |||
Cancelled | (23,924) | |||
Outstanding | 997,750 | 665,000 | ||
Total Weighted Average Exercise Price | ||||
Outstanding | $ 2.37 | |||
Granted | 3.57 | 2.37 | ||
Exercised | 2.37 | |||
Cancelled | 2.62 | |||
Outstanding | $ 2.80 | $ 2.37 | ||
Exercisable | ||||
Outstanding | ||||
Granted | ||||
Vested | 230,001 | |||
Exercised | (3,576) | |||
Forfeited or cancelled | (8,924) | |||
Outstanding | 217,501 | |||
Exercisable Weighted Average Exercise Price | ||||
Outstanding | ||||
Granted | ||||
Vested | 2.37 | |||
Exercised | 2.37 | |||
Forfeited or cancelled | 2.37 | |||
Outstanding | $ 2.37 | |||
Nonvested | ||||
Outstanding | 665,000 | |||
Granted | 360,250 | 665,000 | 360,250 | 665,000 |
Vested | (230,001) | |||
Forfeited or cancelled | (15,000) | |||
Outstanding | 780,249 | 665,000 | ||
Nonvested Weighted Average Exercise Price | ||||
Outstanding | $ 2.37 | |||
Granted | $ 3.57 | $ 2.37 | 3.57 | 2.37 |
Vested | 2.37 | |||
Forfeited or cancelled | 2.77 | |||
Outstanding | $ 2.92 | $ 2.37 | ||
Aggregate intrinsic value | ||||
Outstanding | $ 597,525 | $ 551,950 | ||
Exercisable | 202,276 | |||
Nonvested | $ 395,249 | $ 551,950 |
Stock Options or Stock Based 84
Stock Options or Stock Based Compensation (Narrative) (Details) - USD ($) | Apr. 07, 2016 | Jul. 30, 2015 | Jan. 01, 2017 | Jan. 03, 2016 |
Stock Options Or Stock Based Compensation Narrative Details | ||||
Number of options granted in period | 360,250 | 665,000 | 360,250 | 665,000 |
Exercise price of options granted in period | $ 3.57 | $ 2.37 | $ 3.57 | $ 2.37 |
Expiration date | Apr. 7, 2026 | Jul. 3, 2025 | ||
Stock-based compensation expense | $ 381,262 | $ 98,566 | ||
Unrecognized compensation cost | $ 781,524 | |||
Unrecognized compensation cost, recognition period | 27 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Numerator | |||
Net income available to common shareholders | $ 4,499,664 | $ 4,952,156 | |
Denominator | |||
Denominator for basic earnings per share - weighted average shares outstanding | 18,828,378 | 14,334,485 | |
Weighted average effect of dilutive securities | 41,331 | 4,705,547 | |
Denominator for dilutive earnings per share - weighted average shares outstanding | 18,869,709 | 19,040,032 | |
Basic and Diluted Income Per Share | |||
Net income available to common shareholders | $ 0.24 | $ 0.35 | |
Effect of dilutive securities | 0 | (0.09) | |
Net income available to common shareholders | $ 0.24 | $ 0.26 | |
Convertible preferred stock outstanding | 50 | 50 | 28,541 |
Conversion of convertible preferred stock | 4,756,814 | ||
Stock Option [Member] | |||
Denominator | |||
Weighted average effect of dilutive securities | 41,331 | 0 |
Capital Leases (Details)
Capital Leases (Details) - USD ($) | Jan. 01, 2017 | Jan. 03, 2016 |
Capital Leases Details | ||
Capital Leases on equipment - Monthly lease payments minimum | $ 1,119 | |
Capital Leases on equipment - Monthly lease payments maximum | 31,120 | |
Principal balance of all capital lease obligations | $ 1,959,295 | $ 1,224,889 |
Capital Leases on equipment -Interest rates minimum | 3.84% | |
Capital Leases on equipment -Interest rates maximum | 19.15% | |
Principal requirements on capital leases for years ending after January 1, 2017: | ||
2,017 | $ 425,440 | |
2,018 | 407,939 | |
2,019 | 392,676 | |
2,020 | 104,268 | |
2,021 | 6,106 | |
Total Principal Requirement on capital lease | 1,336,429 | |
Less Interest | (111,540) | |
Gross Principal Requirement on capital Lease | 1,224,889 | |
Less current portion | (368,718) | |
Net Total Principal Requirment on capital lease | $ 856,171 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Operating Lease Details | ||
The agreements include payments ranging minimum | $ 31 | |
The agreements include payments ranging maximum | 31,421 | |
Total operating lease expense | 1,071,018 | $ 1,223,242 |
Aggregate minimum rental expense: | ||
2,017 | 885,805 | |
2,018 | 701,504 | |
2,019 | 590,827 | |
2,020 | 477,329 | |
2,021 | 378,548 | |
2022 and thereafter | 2,733,547 | |
Total | $ 5,767,560 |
Accumulated Other Comprehensi88
Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 18,980 | $ 790,962 |
Other comprehensive losses before reclassifications | (1,692,774) | (591,067) |
Reclassification adjustment for gains included in net income | (4,692) | (180,915) |
Balance | (1,678,486) | 18,980 |
Minimum Benefit Liability Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 310,282 | 702,067 |
Other comprehensive losses before reclassifications | (71,713) | (210,870) |
Reclassification adjustment for gains included in net income | (4,692) | (180,915) |
Balance | 233,877 | 310,282 |
Foreign Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (291,302) | 88,895 |
Other comprehensive losses before reclassifications | (1,621,061) | (380,197) |
Balance | $ (1,912,363) | $ (291,302) |
Retirement Plans (Details)
Retirement Plans (Details) - GBP (£) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Contributions made by the employer | £ 361,447 | £ 339,419 |
Employee 2% [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employee contribution | 2.00% | |
Company contribution | 6.00% | |
Employee 3% [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employee contribution | 3.00% | |
Company contribution | 7.00% | |
Employee 4% [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employee contribution | 4.00% | |
Company contribution | 7.50% | |
Employee 5% [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employee contribution | 5.00% | |
Company contribution | 8.00% |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 46.00% | 43.00% |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 63.00% | 58.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Due from Related Parties, Current [Abstract] | ||
Related party receivable | $ 25,456 | $ 23,298 |
Consulting fees paid to a related party | $ 24,000 | $ 2,000 |