Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2017 | May 04, 2017 | |
Entity Registrant Name | UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC. | |
Entity Trading Symbol | UNIR | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 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 | Q1 | |
Ordinary Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 17,085,678 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 1,619,102 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,537,716 | $ 1,321,586 |
Accounts receivable, net | 16,329,872 | 14,555,463 |
Inventories, net | 18,953,494 | 17,046,171 |
Other current assets | 716,713 | 1,183,932 |
Related party receivable | 25,000 | 25,456 |
Total Current Assets | 37,562,795 | 34,132,608 |
PROPERTY AND EQUIPMENT, NET | 14,108,416 | 13,611,494 |
OTHER ASSETS | ||
Intangible assets | 3,156,493 | 3,133,564 |
Goodwill | 1,079,175 | 1,079,175 |
Other long-term assets | 6,829,509 | 6,665,375 |
Total Other Assets | 11,065,177 | 10,878,114 |
TOTAL ASSETS | 62,736,388 | 58,622,216 |
CURRENT LIABILITIES | ||
Checks issued in excess of bank balance | 800,633 | 679,494 |
Line of credit | 17,195,833 | 16,799,592 |
Current maturities of long-term debt | 925,688 | 851,988 |
Current maturities of capital lease obligations | 366,375 | 368,718 |
Accounts payable | 9,733,152 | 7,331,213 |
Accrued expenses | 4,226,196 | 3,645,526 |
Related party obligation | 372,583 | 371,161 |
Current portion of postretirement benefit liability - health and life | 158,527 | 158,527 |
Total Current Liabilities | 33,778,987 | 30,206,219 |
LONG-TERM LIABILITIES | ||
Long-term debt, less current portion | 2,047,908 | 1,994,910 |
Capital lease obligations, less current portion | 776,539 | 856,171 |
Related party lease financing obligations | 2,160,158 | 2,162,151 |
Long-term debt to related parties | 2,735,029 | 2,826,907 |
Postretirement benefit liability - health and life, less current portion | 2,880,650 | 2,883,684 |
Other long-term liabilities | 783,239 | 792,027 |
Total Long-Term Liabilities | 11,383,523 | 11,515,850 |
Total Liabilities | 45,162,510 | 41,722,069 |
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, Uniroyal Global (Europe) Limited, 50 shares issued and outstanding ($1.51 stated value) | 75 | 75 |
Common stock, 95,000,000 shares authorized ($.001 par value) 18,714,142 and 18,727,782 shares issued and outstanding as of April 2, 2017 and January 1, 2017, respectively | 18,714 | 18,728 |
Additional paid-in capital | 34,711,744 | 34,653,894 |
Accumulated deficit | (16,704,038) | (17,174,814) |
Accumulated other comprehensive income | (1,533,367) | (1,678,486) |
Total Stockholders' Equity | 17,573,878 | 16,900,147 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 62,736,388 | $ 58,622,216 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 02, 2017 | Jan. 01, 2017 |
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, Uniroyal Global (Europe) Limited shares Par value | $ 1.51 | $ 1.51 |
Preferred stock, Uniroyal Global (Europe) Limited shares issued | 50 | 50 |
Preferred stock, Uniroyal Global (Europe) 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 | 18,714,142 | 18,727,782 |
Common Stock, shares outstanding | 18,714,142 | 18,727,782 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Revenues [Abstract] | ||
NET SALES | $ 25,758,429 | $ 24,967,595 |
COST OF GOODS SOLD | 20,382,282 | 19,241,135 |
Gross Profit | 5,376,147 | 5,726,460 |
OPERATING EXPENSES: | ||
Selling | 1,284,947 | 1,382,643 |
General and administrative | 1,821,466 | 2,041,834 |
Research and development | 533,854 | 428,529 |
OPERATING EXPENSES | 3,640,267 | 3,853,006 |
Operating Income | 1,735,880 | 1,873,454 |
OTHER INCOME (EXPENSE): | ||
Interest and other debt related expense | (389,856) | (417,188) |
Other income (expense) | 99,254 | (173,496) |
Net Other Expense | (290,602) | (590,684) |
INCOME BEFORE TAX PROVISION | 1,445,278 | 1,282,770 |
TAX PROVISION | 234,586 | 129,766 |
NET INCOME | 1,210,692 | 1,153,004 |
Preferred stock dividend | (739,916) | (718,901) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 470,776 | $ 434,103 |
EARNINGS PER COMMON SHARE: | ||
Basic | $ 0.03 | $ 0.02 |
Diluted | $ 0.03 | $ 0.02 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||
Basic | 18,723,226 | 18,863,420 |
Diluted | 18,813,333 | 18,876,578 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
COMPREHENSIVE INCOME | ||
NET INCOME | $ 1,210,692 | $ 1,153,004 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Minimum benefit liability adjustment | (1,173) | |
Foreign currency translation adjustment | 145,119 | (286,009) |
OTHER COMPREHENSIVE INCOME (LOSS) | 145,119 | (287,182) |
COMPREHENSIVE INCOME | 1,355,811 | 865,822 |
Preferred stock dividend | (739,916) | (718,901) |
COMPREHENSIVE INCOME TO COMMON SHAREHOLDERS | $ 615,895 | $ 146,921 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - 3 months ended Apr. 02, 2017 - USD ($) | Ueph Series A Units [Member] | UEPH Series B Units [Member] | EPAL Preferred Shares [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accmulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
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 | ||||
Net Income | 1,210,692 | 1,210,692 | ||||||
Other comprehensive loss | 145,119 | 145,119 | ||||||
Purchase treasury shares at cost | $ (14) | (45,472) | (45,486) | |||||
Purchase treasury shares at cost, shares | (13,640) | |||||||
Preferred stock dividend | (739,916) | (739,916) | ||||||
Balance at Apr. 02, 2017 | $ 617,571 | $ 463,179 | $ 75 | $ 18,714 | $ 34,711,744 | $ (16,704,038) | $ (1,533,367) | $ 17,573,878 |
Balance, shares at Apr. 02, 2017 | 200,000 | 150,000 | 50 | 18,714,142 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||
Net income | $ 1,210,692 | $ 1,153,004 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation | 420,247 | 414,082 |
Stock-based compensation expense | 103,322 | 59,141 |
Amortization of intangible assets | 5,001 | 5,001 |
Loss on disposal of property and equipment | 2,744 | |
Changes in assets and liabilities: | ||
Accounts receivable | (1,631,870) | (1,922,063) |
Inventories | (1,799,860) | (1,792,392) |
Other current assets | 477,648 | 21,246 |
Other long-term assets | (23,098) | 15,937 |
Accounts payable | 2,319,928 | 1,830,189 |
Accrued expenses | 527,891 | 484,869 |
Postretirement benefit liability - health and life | (3,034) | (1,980) |
Other long-term liabilities | (19,772) | 5,028 |
Cash Flows provided by Operating Activities | 1,587,095 | 274,806 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (482,959) | (401,089) |
Net payments on life insurance policies | (139,922) | (82,731) |
Cash Flows used in Investing Activities | (622,881) | (483,820) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Checks issued in excess of bank balance, net | 121,138 | 124,789 |
Net advances on line of credit | 188,894 | 855,402 |
Payments on long-term debt | (120,287) | (96,459) |
Payments on capital lease obligations | (99,424) | (115,158) |
Proceeds from (payments on) related party obligation | (86,037) | 60,098 |
Payment of preferred stock dividends | (720,121) | (699,165) |
Purchase of treasury stock | (45,486) | (159,668) |
Cash Flows used in Financing Activities | (761,323) | (30,161) |
Net Change in Cash and Cash Equivalents | 202,891 | (239,175) |
Cash and Cash Equivalents - Beginning of Period | 1,321,586 | 1,910,112 |
Effects of currency translation on cash and cash equivalents | 13,239 | (47,964) |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 1,537,716 | $ 1,622,973 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 02, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared based upon U.S. Securities and Exchange Commission rules that permit reduced disclosure for interim periods. Therefore, they do not include all information and footnote disclosures necessary for a complete presentation of Uniroyal Global Engineered Products, Inc.’s financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. Uniroyal Global Engineered Products, Inc. (the “Company,” “Uniroyal Global,” “we,” or “us”) filed audited consolidated financial statements as of and for the fiscal years ended January 1, 2017 and January 3, 2016 which included all information and notes necessary for such complete presentation in conjunction with its 2016 Annual Report on Form 10-K/A. The results of operations for the interim period ended April 2, 2017 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended January 1, 2017, which are contained in the Company’s 2016 Annual Report on Form 10-K/A. The Company owns all of the ownership interests in Uniroyal Engineered Products, LLC (“Uniroyal”) and its holding company UEP Holdings, LLC (“UEPH”), a U.S. manufacturer of textured coatings, and all of the ordinary common stock of Uniroyal Global (Europe) Limited (“UGEL”) formerly known as Engineered Products Acquisition Limited (“EPAL”), the holding company for Uniroyal Global Limited (“UGL”) formerly Wardle Storeys (Group) Limited (“Wardle Storeys”), a European manufacturer of textured coatings and polymer films. The Company and its subsidiaries have adopted a 52/53-week fiscal year ending on the Sunday nearest to December 31. The current year ending December 31, 2017 and the prior year ended January 1, 2017 are 52-week years. The accompanying unaudited interim consolidated financial statements contain all adjustments (consisting of normal recurring items) which are, in the opinion of management, necessary for a fair statement of the Company’s financial position as of April 2, 2017 and the results of operations, comprehensive income and cash flows for the interim periods ended April 2, 2017 and April 3, 2016. The unaudited interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the US dollar as the reporting currency for financial reporting. The financial position and results of operations of the Company’s UK-based operations are measured using the British Pound Sterling as the functional currency. See Note 5, Foreign Currency Translation. |
Noncash Transactions and Supple
Noncash Transactions and Supplemental Disclosure of Cash Flow Information | 3 Months Ended |
Apr. 02, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Noncash Transactions and Supplemental Disclosure of Cash Flow Information | 2. Noncash Transactions and Supplemental Disclosure of Cash Flow Information During the three months ended April 2, 2017 and April 3, 2016, the Company paid down its term loans using available borrowings on its various lines of credit of $102,363 and $131,495, respectively. During the three months ended April 2, 2017 and April 3, 2016, the Company entered into new equipment financing arrangements with a value of $335,251 and $256,244, respectively. The fair value was added to property and equipment and a corresponding amount to long-term debt or capital lease obligations. Supplemental disclosure of cash paid for : April 2, 2017 April 3, 2016 Interest $ 373,134 $ 429,434 Tax payments $ - $ - |
Derivatives
Derivatives | 3 Months Ended |
Apr. 02, 2017 | |
Derivatives | |
Derivatives | 3. 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 Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 02, 2017 | |
Fair Value Of Financial Instruments | |
Fair Value of Financial Instruments | 4. 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 values of the contracts at April 2, 2017 and January 1, 2017 were assets of $11,910 and $9,718, respectively, and were included in other current assets. The fair values of the currency exchange contracts are based upon observable market transactions of spot and forward rates. For the three months ended April 2, 2017, there have been no changes in the application of valuation methods applied to similar assets and liabilities. |
Foreign Currency Translation
Foreign Currency Translation | 3 Months Ended |
Apr. 02, 2017 | |
Foreign Currency Translation [Abstract] | |
Foreign Currency Translation | 5. 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 reporting period. 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. Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of our foreign operations are included in Other Income (Expense) in the accompanying Consolidated Statements of Operations. |
Inventory
Inventory | 3 Months Ended |
Apr. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventory Inventories consist of the following: April 2, 2017 January 1, 2017 Raw materials $ 5,815,120 $ 5,199,632 Work-in-process 4,453,198 4,491,250 Finished goods 10,035,890 8,669,625 20,304,208 18,360,507 Less: Allowance for inventory obsolescence (1,350,714 ) (1,314,336 ) Total Inventories $ 18,953,494 $ 17,046,171 |
Other Long-term Assets
Other Long-term Assets | 3 Months Ended |
Apr. 02, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Other Long-term Assets | 7. Other Long-term Assets Other long-term assets consist of the following: April 2, 2017 January 1, 2017 Non-current deferred tax asset $ 5,676,917 $ 5,689,000 Other 1,152,592 976,375 Total Other Long-term Assets $ 6,829,509 $ 6,665,375 |
Other Long-term Liabilities
Other Long-term Liabilities | 3 Months Ended |
Apr. 02, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-term Liabilities | 8. Other Long-term Liabilities Other long-term liabilities consist of the following: April 2, 2017 January 1, 2017 Non-current deferred tax liability $ 736,016 $ 743,971 Other 47,223 48,056 Total Other Long-term Liabilities $ 783,239 $ 792,027 |
Line of Credit
Line of Credit | 3 Months Ended |
Apr. 02, 2017 | |
Line of Credit Facility [Abstract] | |
Line of Credit | 9. Line 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. 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 $10,173,349 and $9,668,388 as of April 2, 2017 and January 1, 2017, 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 to a 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. 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 £5,619,628 and £5,792,236 ($7,022,484 and $7,131,204) as of April 2, 2017 and January 1, 2017, 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 | 3 Months Ended |
Apr. 02, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-Term Debt | 10. Long-term Debt Long-term debt consists of the following: Interest Rate April 2, 2017 January 1, 2017 Wells Fargo Capital Finance LLC Prime $ 1,015,422 $ 1,089,721 Lloyds Bank Commercial Finance Limited LIBOR + 3.15% 155,788 181,392 Kennet Equipment Leasing Limited 10.90% 771,800 801,153 Balboa Capital Corporation 5.72% 178,946 213,230 Regents Capital Corporation 7.40% 321,717 350,000 De Lage Landen Financial Services 7.35% 114,191 118,073 Ford Motor Credit 4.30% 43,005 44,387 Byline Financial Group 8.56% 43,956 48,942 Regents Capital Corporation 6.20% 328,771 - 2,973,596 2,846,898 Current portion (925,688 ) (851,988 ) $ 2,047,908 $ 1,994,910 |
Related Party Obligations
Related Party Obligations | 3 Months Ended |
Apr. 02, 2017 | |
Related Party Obligations | |
Related Party Obligations | 11. Related Party Obligations Long-term debt to related parties consists of the following: Interest Rate April 2, 2017 January 1, 2017 Senior subordinated promissory note 9.25% $ 2,000,000 $ 2,000,000 Senior secured promissory note 10.00% 1,102,543 1,194,421 3,102,543 3,194,421 Current portion (367,514 ) (367,514 ) $ 2,735,029 $ 2,826,907 The Company has a lease financing obligation under which it leases its main U.S. manufacturing facility and certain other property from a 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 on October 31, 2033. The Company has security deposits aggregating $267,500 held by the lessor entity. This obligation is shown in the accompanying Consolidated Balance Sheets as Related Party Lease Financing Obligation which consists of the following: April 2, 2017 January 1, 2017 Related party lease financing obligation $ 2,165,227 $ 2,165,798 Less: current portion (5,069 ) (3,647 ) Long-term Portion $ 2,160,158 $ 2,162,151 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. April 2, 2017 January 1, 2017 Current portion of long-term debt to related parties $ 367,514 $ 367,514 Current portion related party lease financing obligation 5,069 3,647 Related Party Obligation $ 372,583 $ 371 |
Capital Leases
Capital Leases | 3 Months Ended |
Apr. 02, 2017 | |
Capital Leases | |
Capital Leases | 12. Capital Leases The Company has several capital leases on equipment which expire from April 2, 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 April 2, 2017 and January 1, 2017, 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. Interest rates on these obligations range from 3.84% to 19.15% Capital lease obligations consist of the following: April 2, 2017 January 1, 2017 Capital lease obligation $ 1,142,914 $ 1,224,889 Less: current portion (366,375 ) (368,718 ) Long-term Portion $ 776,539 $ 856,171 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Apr. 02, 2017 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income | 13. Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income (loss) were as follows: Minimum Foreign Total Balance at January 1, 2017 $ 233,877 $ (1,912,363 ) $ (1,678,486 ) Other comprehensive losses before reclassifications, net - 145,119 145,119 Balance at April 2, 2017 $ 233,877 $ (1,767,244 ) $ (1,533,367 ) The gain (loss) reclassified from accumulated other comprehensive income (loss) into income is recorded to the following income statement line items: Other Comprehensive Income Income Statement Line Item Minimum Benefit Liability Adjustments General and administrative expense |
Stock Option Plan
Stock Option Plan | 3 Months Ended |
Apr. 02, 2017 | |
Stock Options or Stock Based Compensation | |
Stock Option Plan | 14. Stock Option Plan 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. Compensation expense is recognized on a straight-line basis over a three-year vesting period from date of grant. Stock option activity for the three months ended April 2, 2017 and April 3, 2016 is as follows: Stock Options Total Weighted Exercis- Weighted Non-Vested Weighted Outstanding at January 3, 2016 665,000 $2.37 - - 665,000 $2.37 Granted - - - - - - Vested - - - - - - Exercised - - - - - - Forfeited or cancelled - - - - - - Outstanding at April 3, 2016 665,000 $2.37 - 665,000 $2.37 Outstanding at January 1, 2017 997,950 $2.80 217,501 $2.37 780,249 $2.92 Granted - - - - - - Vested - - - - - - Exercised - - - - - - Forfeited or cancelled - - - - - - Outstanding April 2, 2017 997,750 $2.80 217,501 $2.37 780,249 $2.92 Aggregate Intrinsic Value April 3, 2016 $ 1,017,450 $ - $ 1,017,450 Aggregate Intrinsic Value April 2, 2017 $ 758,150 $ 256,651 $ 501,499 Option expense recognized was $103,322 and $59,141 for the three months ended April 2, 2017 and April 3, 2016, respectively. As of April 2, 2017, there was $678,192 in unrecognized compensation cost related to the options granted under the 2015 Stock Option Plan. We expect to recognize those costs over the remaining vesting term of 24 months. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 02, 2017 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncement | 15. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued a new standard ASU No. 2014-09, "Revenue from Contracts with Customers." Under ASU 2014-09 recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard will be effective for the Company 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 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 became 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, 2015, the Financial Accounting Standards Board issued a new standard ASU No. 2015-17, “Income Taxes - Balance Sheet Classification of Deferred Taxes”. Under the new guidance deferred tax liabilities and assets will be classified as noncurrent in a classified statement of financial position. It became 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. The Company is applying the change retrospectively for all periods presented. Thus, current deferred tax assets in the amount of $1,301,280 which had been included in Other Current Asset in the accompanying Consolidated Balance Sheets at January 1, 2017 were reclassified to Other Long-term Assets or Other Long-term liabilities at that date. On February 25, 2016, the Financial Accounting Standards Board issued a new standard ASU No. 2016-02, “Leases”. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU will require both types of leases to be recognized on the balance sheet. It will be effective for the Company on December 31, 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 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 became 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. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Apr. 02, 2017 | |
EARNINGS PER COMMON SHARE: | |
Earnings Per Common Share | 16. Earnings per Common Share The following table sets for the computation of earnings per common share - basic and earnings per common share - diluted: April 2, 2017 April 3, 2016 Numerator Net income available to common shareholders $ 470,776 $ 434,103 Denominator Denominator for basic earnings per share - weighted average shares outstanding 18,723,226 18,863,420 Weighted average effect of dilutive securities 90,107 13,158 Denominator for dilutive earnings per share - weighted average shares outstanding 18,813,333 18,876,578 Basic and Diluted Income Per Share Net income available to common shareholders $ 0.03 $ 0.02 Effect of dilutive securities (0.00 ) (0.00 ) Net income available to common shareholders $ 0.03 $ 0.02 For the three months ended April 2, 2017 and April 3, 2016, there were 90,107 and 13,158, respectively, of dilutive common stock equivalents related to stock options included in the calculation of diluted earnings per common share. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 02, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. 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 April 2, 2017 financial statements. There were no material events or transactions occurring during this period requiring recognition or disclosure. |
Noncash Transactions and Supp25
Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Noncash Transactions and Supplemental Disclosure of Cash Flow Information Text Block | April 2, 2017 April 3, 2016 Interest $ 373,134 $ 429,434 Tax payments $ - $ - |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | April 2, 2017 January 1, 2017 Raw materials $ 5,815,120 $ 5,199,632 Work-in-process 4,453,198 4,491,250 Finished goods 10,035,890 8,669,625 20,304,208 18,360,507 Less: Allowance for inventory obsolescence (1,350,714 ) (1,314,336 ) Total Inventories $ 18,953,494 $ 17,046,171 |
Other Long-term Assets (Tables)
Other Long-term Assets (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Long-term Assets | April 2, 2017 January 1, 2017 Non-current deferred tax asset $ 5,676,917 $ 5,689,000 Other 1,152,592 976,375 Total Other Long-term Assets $ 6,829,509 $ 6,665,375 |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Long-term Liabilities | April 2, 2017 January 1, 2017 Non-current deferred tax liability $ 736,016 $ 743,971 Other 47,223 48,056 Total Other Long-term Liabilities $ 783,239 $ 792,027 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-Term Debt | Interest Rate April 2, 2017 January 1, 2017 Wells Fargo Capital Finance LLC Prime $ 1,015,422 $ 1,089,721 Lloyds Bank Commercial Finance Limited LIBOR + 3.15% 155,788 181,392 Kennet Equipment Leasing Limited 10.90% 771,800 801,153 Balboa Capital Corporation 5.72% 178,946 213,230 Regents Capital Corporation 7.40% 321,717 350,000 De Lage Landen Financial Services 7.35% 114,191 118,073 Ford Motor Credit 4.30% 43,005 44,387 Byline Financial Group 8.56% 43,956 48,942 Regents Capital Corporation 6.20% 328,771 - 2,973,596 2,846,898 Current portion (925,688 ) (851,988 ) $ 2,047,908 $ 1,994,910 |
Related Party Obligations (Tabl
Related Party Obligations (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Related Party Obligations Tables | |
Schedule of Long-term Debt to Related Parties | Interest Rate April 2, 2017 January 1, 2017 Senior subordinated promissory note 9.25% $ 2,000,000 $ 2,000,000 Senior secured promissory note 10.00% 1,102,543 1,194,421 3,102,543 3,194,421 Current portion (367,514 ) (367,514 ) $ 2,735,029 $ 2,826,907 |
Schedule of Related Party Lease Obligation | April 2, 2017 January 1, 2017 Related party lease financing obligation $ 2,165,227 $ 2,165,798 Less: current portion (5,069 ) (3,647 ) Long-term Portion $ 2,160,158 $ 2,162,151 |
Schedule of Related Party Obligations, Current | April 2, 2017 January 1, 2017 Current portion of long-term debt to related parties $ 367,514 $ 367,514 Current portion related party lease financing obligation 5,069 3,647 Related Party Obligation $ 372,583 $ 371 |
Capital Leases (Tables)
Capital Leases (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Capital Leases Tables | |
Schedule of Capital Leases Principal Requirements | April 2, 2017 January 1, 2017 Capital lease obligation $ 1,142,914 $ 1,224,889 Less: current portion (366,375 ) (368,718 ) Long-term Portion $ 776,539 $ 856,171 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Minimum Foreign Total Balance at January 1, 2017 $ 233,877 $ (1,912,363 ) $ (1,678,486 ) Other comprehensive losses before reclassifications, net - 145,119 145,119 Balance at April 2, 2017 $ 233,877 $ (1,767,244 ) $ (1,533,367 ) |
Gain (Loss) Reclassified from AOCI | Other Comprehensive Income Income Statement Line Item Minimum Benefit Liability Adjustments General and administrative expense |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Schedule of Stock Option Plan: | |
Schedule of Stock Options Activity | Stock Options Total Weighted Exercis- Weighted Non-Vested Weighted Outstanding at January 3, 2016 665,000 $2.37 - - 665,000 $2.37 Granted - - - - - - Vested - - - - - - Exercised - - - - - - Forfeited or cancelled - - - - - - Outstanding at April 3, 2016 665,000 $2.37 - 665,000 $2.37 Outstanding at January 1, 2017 997,950 $2.80 217,501 $2.37 780,249 $2.92 Granted - - - - - - Vested - - - - - - Exercised - - - - - - Forfeited or cancelled - - - - - - Outstanding April 2, 2017 997,750 $2.80 217,501 $2.37 780,249 $2.92 Aggregate Intrinsic Value April 3, 2016 $ 1,017,450 $ - $ 1,017,450 Aggregate Intrinsic Value April 2, 2017 $ 758,150 $ 256,651 $ 501,499 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Earnings Per Common Share Tables | |
Schedule of Earnings Per Common Share | April 2, 2017 April 3, 2016 Numerator Net income available to common shareholders $ 470,776 $ 434,103 Denominator Denominator for basic earnings per share - weighted average shares outstanding 18,723,226 18,863,420 Weighted average effect of dilutive securities 90,107 13,158 Denominator for dilutive earnings per share - weighted average shares outstanding 18,813,333 18,876,578 Basic and Diluted Income Per Share Net income available to common shareholders $ 0.03 $ 0.02 Effect of dilutive securities (0.00 ) (0.00 ) Net income available to common shareholders $ 0.03 $ 0.02 |
Noncash Transactions and Supp35
Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Details) - USD ($) | 3 Months Ended | ||
Apr. 02, 2017 | Apr. 03, 2016 | Dec. 28, 2014 | |
Line of Credit Facility [Line Items] | |||
Payments on term loans | $ 102,363 | $ 131,495 | |
New equipment leases during the year | 335,251 | 256,244 | |
Interest expense | 373,134 | 429,434 | |
Income taxes | |||
Convertible Preferred Stock [Member] | |||
Line of Credit Facility [Line Items] | |||
Shares outstanding | 28,541 |
Derivatives (Details)
Derivatives (Details) | 3 Months Ended |
Apr. 02, 2017 | |
Derivatives Details | |
Percentage of risk on currency exchange contracts | 25.00% |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Details) - EUR (€) | Apr. 02, 2017 | Jan. 01, 2017 |
Fair Value Of Financial Instruments Details | ||
Fair value of foreign currency exchange contracts | € 11,910 | € 9,718 |
Inventory (Details)
Inventory (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,815,120 | $ 5,199,632 |
Work-in-process | 4,453,198 | 4,491,250 |
Finished goods | 10,035,890 | 8,669,625 |
Inventories gross | 20,304,208 | 18,360,507 |
Less: Allowance for inventory obsolescence | (1,350,714) | (1,314,336) |
Total Inventories | $ 18,953,494 | $ 17,046,171 |
Other Long-term Assets (Details
Other Long-term Assets (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Other Assets, Noncurrent [Abstract] | ||
Non-current deferred tax asset | $ 5,676,917 | $ 5,689,000 |
Other | 1,152,592 | 976,375 |
Total Other Long-term Assets | $ 6,829,509 | $ 6,665,375 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Other Liabilities, Noncurrent [Abstract] | ||
Non-current deferred tax liability | $ 736,016 | $ 743,971 |
Other | 47,223 | 48,056 |
Total Other Long-term Liabilities | $ 783,239 | $ 792,027 |
Line of Credit (Details)
Line of Credit (Details) | 3 Months Ended | |||
Apr. 02, 2017USD ($) | Apr. 02, 2017GBP (£) | Jan. 01, 2017USD ($) | Jan. 01, 2017GBP (£) | |
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 amount outstanding | $ 7,022,484 | $ 7,131,204 | ||
Lloyds Bank Commercial Finance Limited [Member] | Minimum [Member] | Wardle Storeys [Member] | ||||
Line of credit premium over base rate | 1.95% | |||
Lloyds Bank Commercial Finance Limited [Member] | Maximum [Member] | Wardle Storeys [Member] | ||||
Line of credit premium over base rate | 2.45% | |||
Lloyds Bank Commercial Finance Limited [Member] | British Pound Sterling [Member] | Wardle Storeys [Member] | ||||
Line of credit maximum amount | £ | £ 8,500,000 | |||
Line of credit amount outstanding | £ | £ 5,619,628 | £ 5,792,236 | ||
Wells Fargo Capital Finance, LLC [Member] | ||||
Line of credit maximum amount | $ 30,000,000 | |||
Line of credit premium over base rate | 2.25% | |||
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 amount outstanding | $ 10,173,349 | $ 9,668,388 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term debt) (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,973,596 | $ 2,846,898 |
Less: Current portion | (925,688) | (851,988) |
Long-Term Portion | 2,047,908 | 1,994,910 |
Balboa Capital Corporation Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 178,946 | 213,230 |
Regents Capital Corporation Note Payable 2 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 328,771 | |
Wells Fargo Capital Finance LLC Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,015,422 | 1,089,721 |
Ford Motor Credit Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 43,005 | 44,387 |
De Lage Landen Financial Services Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 114,191 | 118,073 |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 155,788 | 181,392 |
Regents Capital Corporation Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 321,717 | 350,000 |
Kennet Equipment Leasing Financing Obligation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 771,800 | 801,153 |
Byline Financial Group Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 43,956 | $ 48,942 |
Long-Term Debt (Schedule of L43
Long-Term Debt (Schedule of Long-term debt) (Parenthetical) (Details) | 3 Months Ended |
Apr. 02, 2017 | |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate above LIBOR | 3.15% |
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 |
Kennet Equipment Leasing Financing Obligation [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 10.90% |
Balboa Capital Corporation Note Payable [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 5.72% |
Regents Capital Corporation Note Payable [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 7.40% |
De Lage Landen Financial Services Note Payable [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 7.35% |
Ford Motor Credit Note Payable [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 4.30% |
Byline Financial Group Note Payable [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 8.56% |
Regents Capital Corporation Note Payable 2 [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 6.20% |
Related Party Obligations (Long
Related Party Obligations (Long-term debt to related parties) (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Total debt to related parties | $ 3,102,543 | $ 3,194,421 |
Less: Current portion of debt to related parties | (367,514) | (367,514) |
Total Long-term Debt to Related Parties | 2,735,029 | 2,826,907 |
Senior secured promissory note [Member] | ||
Total debt to related parties | 1,102,543 | 1,194,421 |
Wardle Storeys [Member] | ||
Total debt to related parties | 2,000,000 | |
Senior subordinated promissory note [Member] | ||
Total debt to related parties | $ 2,000,000 | $ 2,000,000 |
Related Party Obligations (Lo45
Related Party Obligations (Long-term debt to related parties) (Details) (Parenthetical) | May 31, 2016 | May 29, 2016 | Apr. 02, 2017 |
Wardle Storeys [Member] | |||
Long-term debt, maturity date | May 31, 2016 | Dec. 31, 2023 | |
Company's Majority Owners [Member] | |||
Long-term debt, interest rate | 18.20% | ||
Senior secured promissory note [Member] | |||
Long-term debt, interest rate | 10.00% | ||
Senior subordinated promissory note [Member] | |||
Long-term debt, interest rate | 9.25% | ||
Long-term debt, maturity date | Oct. 17, 2018 |
Related Party Obligations (Narr
Related Party Obligations (Narrative) (Details) - USD ($) | May 31, 2016 | May 29, 2016 | Apr. 02, 2017 | Jan. 01, 2017 | Dec. 31, 2013 |
Rate of interest payable on capital lease obligation | 18.20% | ||||
Wardle Storeys [Member] | |||||
Long-term debt, maturity date | May 31, 2016 | Dec. 31, 2023 | |||
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 | ||||
Senior secured promissory note [Member] | |||||
Long-term debt, interest rate | 10.00% | ||||
Senior subordinated promissory note [Member] | |||||
Long-term debt, interest rate | 9.25% | ||||
Long-term debt, maturity date | Oct. 17, 2018 |
Related Party Obligations (Leas
Related Party Obligations (Lease Financing Obligation) (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Related Party Lease Financing Obligation Details | ||
Related party lease financing obligation | $ 2,165,227 | $ 2,165,798 |
Less: Current portion | (5,069) | (3,647) |
Long-Term Portion | $ 2,160,158 | $ 2,162,151 |
Related Party Obligations (Sche
Related Party Obligations (Schedule of Current Portions) (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Related Party Obligations Schedule Of Current Portions Details | ||
Current portion of long-term debt to related parties | $ 367,514 | $ 367,514 |
Current portion related party lease financing obligation | 5,069 | 3,647 |
Related Party Obligation | $ 372,583 | $ 371,161 |
Capital Leases (Details)
Capital Leases (Details) - USD ($) | Apr. 02, 2017 | Jan. 01, 2017 |
Capital Leases Details | ||
Capital Leases on equipment - Monthly lease payments minimum | $ 1,119 | |
Capital Leases on equipment - Monthly lease payments maximum | $ 31,120 | |
Capital Leases on equipment -Interest rates minimum | 3.84% | |
Capital Leases on equipment -Interest rates maximum | 19.15% | |
Capital lease obligation | $ 1,142,914 | $ 1,224,889 |
Less: current portion | (366,375) | (368,718) |
Long-term Portion | $ 776,539 | $ 856,171 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Details) | 3 Months Ended |
Apr. 02, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ (1,678,486) |
Other comprehensive losses before reclassifications, net | 145,119 |
Balance | (1,533,367) |
Minimum Benefit Liability Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 233,877 |
Other comprehensive losses before reclassifications, net | |
Balance | 233,877 |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (1,912,363) |
Other comprehensive losses before reclassifications, net | 145,119 |
Balance | $ (1,767,244) |
Stock Option Plan (Narrative) (
Stock Option Plan (Narrative) (Details) - USD ($) | Apr. 07, 2016 | Jul. 30, 2015 | Apr. 02, 2017 | Apr. 03, 2016 |
Stock Option Plan Narrative Details | ||||
Number of options granted in period | 360,250 | 665,000 | ||
Exercise price of options granted in period | $ 3.57 | $ 2.37 | ||
Stock-based compensation expense | $ 103,322 | $ 59,141 | ||
Unrecognized compensation cost | $ 678,192 | |||
Unrecognized compensation cost, recognition period | 24 months |
Stock Option Plan (Option Activ
Stock Option Plan (Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 07, 2016 | Jul. 30, 2015 | Apr. 02, 2017 | Apr. 03, 2016 |
Total Stock Options | ||||
Outstanding | 997,950 | 665,000 | ||
Granted | ||||
Vested | ||||
Exercised | ||||
Cancelled | ||||
Outstanding | 997,750 | 665,000 | ||
Total Weighted Average Exercise Price | ||||
Outstanding | $ 2.80 | $ 2.37 | ||
Granted | ||||
Vested | ||||
Exercised | ||||
Cancelled | ||||
Outstanding | $ 2.80 | $ 2.37 | ||
Exercisable | ||||
Outstanding | 217,501 | |||
Granted | ||||
Vested | ||||
Exercised | ||||
Forfeited or cancelled | ||||
Outstanding | 217,501 | |||
Exercisable Weighted Average Exercise Price | ||||
Outstanding | $ 2.37 | |||
Granted | ||||
Vested | ||||
Exercised | ||||
Forfeited or cancelled | ||||
Outstanding | $ 2.37 | |||
Nonvested | ||||
Outstanding | 780,249 | 665,000 | ||
Granted | 360,250 | 665,000 | ||
Vested | ||||
Forfeited or cancelled | ||||
Outstanding | 780,249 | 665,000 | ||
Nonvested Weighted Average Exercise Price | ||||
Outstanding | $ 2.92 | $ 2.37 | ||
Granted | $ 3.57 | $ 2.37 | ||
Vested | ||||
Forfeited or cancelled | ||||
Outstanding | $ 2.92 | $ 2.37 | ||
Aggregate intrinsic value | ||||
Outstanding | $ 758,150 | $ 1,017,450 | ||
Exercisable | 256,651 | |||
Nonvested | $ 501,499 | $ 1,017,450 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Numerator | ||
Net income available to common shareholders | $ 470,776 | $ 434,103 |
Denominator | ||
Denominator for basic earnings per share - weighted average shares outstanding | 18,723,226 | 18,863,420 |
Weighted average effect of dilutive securities | 90,107 | 13,158 |
Denominator for dilutive earnings per share - weighted average shares outstanding | 18,813,333 | 18,876,578 |
Basic and Diluted Income Per Share | ||
Net income available to common shareholders | $ 0.03 | $ 0.02 |
Effect of dilutive securities | 0 | 0 |
Net income available to common shareholders | $ 0.03 | $ 0.02 |
Stock Option [Member] | ||
Denominator | ||
Weighted average effect of dilutive securities | 90,107 | 13,158 |