Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2019 | Nov. 01, 2019 | |
Entity Registrant Name | UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001172706 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-50081 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | NV | |
Ordinary Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 17,060,928 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 1,619,102 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 818,289 | $ 1,028,841 |
Accounts receivable, net | 13,410,069 | 12,422,330 |
Inventories, net | 19,293,442 | 19,460,260 |
Other current assets | 626,065 | 965,520 |
Related party receivable | 33,217 | 20,118 |
Total Current Assets | 34,181,082 | 33,897,069 |
PROPERTY AND EQUIPMENT, NET | 25,177,807 | 18,878,949 |
OTHER ASSETS | ||
Intangible assets | 3,148,983 | 3,217,997 |
Goodwill | 1,079,175 | 1,079,175 |
Other long-term assets | 3,485,996 | 3,693,367 |
Total Other Assets | 7,714,154 | 7,990,539 |
TOTAL ASSETS | 67,073,043 | 60,766,557 |
CURRENT LIABILITIES | ||
Checks issued in excess of bank balance | 752,485 | 855,210 |
Lines of credit | 20,936,172 | 19,325,116 |
Current maturities of long-term debt | 1,502,555 | 1,369,967 |
Current maturities of finance lease liabilities | 177,190 | 388,862 |
Accounts payable | 9,332,977 | 9,335,235 |
Accrued expenses and other liabilities | 4,059,081 | 3,326,291 |
Related party obligation | 179,858 | 84,154 |
Current portion of postretirement benefit liability - health and life | 139,095 | 139,095 |
Total Current Liabilities | 37,079,413 | 34,823,930 |
LONG-TERM LIABILITIES | ||
Long-term debt, less current portion | 3,462,188 | 3,967,754 |
Finance lease liabilities, less current portion | 18,477 | 109,446 |
Related party lease financing obligation | 2,679,989 | 2,613,717 |
Long-term debt to related parties | 3,190,655 | 2,990,655 |
Postretirement benefit liability - health and life, less current portion | 2,083,684 | 2,101,892 |
Other long-term liabilities | 6,531,063 | 653,653 |
Total Long-Term Liabilities | 17,966,056 | 12,437,117 |
Total Liabilities | 55,045,469 | 47,261,047 |
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) 18,680,030 and 18,690,030 shares issued and outstanding as of September 29, 2019 and December 30, 2018, respectively | 18,680 | 18,690 |
Additional paid-in capital | 35,275,646 | 35,244,770 |
Accumulated deficit | (23,202,469) | (22,136,130) |
Accumulated other comprehensive loss | (1,145,108) | (702,645) |
Total Stockholders' Equity | 12,027,574 | 13,505,510 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 67,073,043 | $ 60,766,557 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 29, 2019 | Dec. 30, 2018 |
Assets [Abstract] | ||
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 | 18,680,030 | 18,690,030 |
Common Stock, shares outstanding | 18,680,030 | 18,690,030 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenues [Abstract] | ||||
NET SALES | $ 22,033,539 | $ 24,322,532 | $ 71,523,182 | $ 76,775,452 |
COST OF GOODS SOLD | 18,471,639 | 20,112,796 | 59,434,689 | 63,184,044 |
Gross Profit | 3,561,900 | 4,209,736 | 12,088,493 | 13,591,408 |
OPERATING EXPENSES: | ||||
Selling | 1,061,781 | 1,075,064 | 3,348,622 | 3,624,145 |
General and administrative | 1,373,118 | 1,587,656 | 4,332,978 | 5,194,622 |
Research and development | 377,989 | 408,256 | 1,302,707 | 1,260,784 |
Other operating expenses | 343,003 | |||
OPERATING EXPENSES | 2,812,888 | 3,070,976 | 9,327,310 | 10,079,551 |
Operating Income | 749,012 | 1,138,760 | 2,761,183 | 3,511,857 |
OTHER EXPENSE: | ||||
Interest and other debt related expense | (509,829) | (488,905) | (1,547,343) | (1,418,932) |
Other income (expense) | 50,213 | (22,956) | 53,396 | (8,894) |
Net Other Expense | (459,616) | (511,861) | (1,493,947) | (1,427,826) |
INCOME BEFORE TAX PROVISION | 289,396 | 626,899 | 1,267,236 | 2,084,031 |
TAX PROVISION (BENEFIT) | 12,022 | (132,670) | (6,287) | (89,670) |
NET INCOME | 277,374 | 759,569 | 1,273,523 | 2,173,701 |
Preferred stock dividend | (777,372) | (769,687) | (2,339,862) | (2,330,250) |
NET LOSS ALLOCABLE TO COMMON SHAREHOLDERS | $ (499,998) | $ (10,118) | $ (1,066,339) | $ (156,549) |
LOSS PER COMMON SHARE: | ||||
Basic | $ (0.03) | $ 0 | $ (0.06) | $ (0.01) |
Diluted | $ (0.03) | $ 0 | $ (0.06) | $ (0.01) |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic | 18,680,030 | 18,690,030 | 18,684,938 | 18,690,030 |
Diluted | 18,680,030 | 18,690,030 | 18,684,938 | 18,690,030 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
COMPREHENSIVE LOSS | ||||
NET INCOME | $ 277,374 | $ 759,569 | $ 1,273,523 | $ 2,173,701 |
OTHER COMPREHENSIVE LOSS: | ||||
Minimum benefit liability adjustment | (73,617) | (29,931) | (220,851) | (89,393) |
Foreign currency translation adjustment | (240,059) | (65,932) | (221,612) | (358,910) |
OTHER COMPREHENSIVE LOSS | (313,676) | (95,863) | (442,463) | (448,303) |
COMPREHENSIVE INCOME (LOSS) | (36,302) | 663,706 | 831,060 | 1,725,398 |
Preferred stock dividend | (777,372) | (769,687) | (2,339,862) | (2,330,250) |
COMPREHENSIVE LOSS TO COMMON SHAREHOLDERS | $ (813,674) | $ (105,981) | $ (1,508,802) | $ (604,852) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | UEPH Series A Units [Member] | UEPH Series B Units [Member] | UGEL Preferred Shares [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accmulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2017 | $ 617,571 | $ 463,179 | $ 75 | $ 18,690 | $ 34,944,972 | $ (20,276,944) | $ (375,152) | $ 15,392,391 |
Balance, shares at Dec. 31, 2017 | 200,000 | 150,000 | 50 | 18,690,030 | ||||
Net Income | 2,173,701 | 2,173,701 | ||||||
Other comprehensive loss | (448,303) | (448,303) | ||||||
Stock-based compensation expense | 255,631 | 255,631 | ||||||
Preferred stock dividend | (2,330,250) | (2,330,250) | ||||||
Balance at Sep. 30, 2018 | $ 617,571 | $ 463,179 | $ 75 | $ 18,690 | 35,200,603 | (20,433,493) | (823,455) | 15,043,170 |
Balance, shares at Sep. 30, 2018 | 200,000 | 150,000 | 50 | 18,690,030 | ||||
Balance at Jun. 30, 2018 | $ 617,571 | $ 463,179 | $ 75 | $ 18,690 | 35,138,353 | (20,423,375) | (727,592) | 15,086,901 |
Balance, shares at Jun. 30, 2018 | 200,000 | 150,000 | 50 | 18,690,030 | ||||
Net Income | 759,569 | 759,569 | ||||||
Other comprehensive loss | (95,863) | (95,863) | ||||||
Stock-based compensation expense | 62,250 | 62,250 | ||||||
Preferred stock dividend | (769,687) | (769,687) | ||||||
Balance at Sep. 30, 2018 | $ 617,571 | $ 463,179 | $ 75 | $ 18,690 | 35,200,603 | (20,433,493) | (823,455) | 15,043,170 |
Balance, shares at Sep. 30, 2018 | 200,000 | 150,000 | 50 | 18,690,030 | ||||
Balance at Dec. 30, 2018 | $ 617,571 | $ 463,179 | $ 75 | $ 18,690 | 35,244,770 | (22,136,130) | (702,645) | 13,505,510 |
Balance, shares at Dec. 30, 2018 | 200,000 | 150,000 | 50 | 18,690,030 | ||||
Net Income | 1,273,523 | 1,273,523 | ||||||
Other comprehensive loss | (442,463) | (442,463) | ||||||
Stock-based compensation expense | 44,166 | 44,166 | ||||||
Treasury shares purchased at cost and retired | $ (10) | (13,290) | (13,300) | |||||
Treasury shares purchased at cost and retired, shares | (10,000) | |||||||
Preferred stock dividend | (2,339,862) | (2,339,862) | ||||||
Balance at Sep. 29, 2019 | $ 617,571 | $ 463,179 | $ 75 | $ 18,680 | 35,275,646 | (23,202,469) | (1,145,108) | 12,027,574 |
Balance, shares at Sep. 29, 2019 | 200,000 | 150,000 | 50 | 18,680,030 | ||||
Balance at Jun. 30, 2019 | $ 617,571 | $ 463,179 | $ 75 | $ 18,680 | 35,275,646 | (22,702,471) | (831,432) | 12,841,248 |
Balance, shares at Jun. 30, 2019 | 200,000 | 150,000 | 50 | 18,690,030 | ||||
Net Income | 277,374 | 277,374 | ||||||
Other comprehensive loss | (313,676) | (313,676) | ||||||
Treasury shares purchased at cost and retired | 0 | |||||||
Preferred stock dividend | (777,372) | (777,372) | ||||||
Balance at Sep. 29, 2019 | $ 617,571 | $ 463,179 | $ 75 | $ 18,680 | $ 35,275,646 | $ (23,202,469) | $ (1,145,108) | $ 12,027,574 |
Balance, shares at Sep. 29, 2019 | 200,000 | 150,000 | 50 | 18,680,030 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,273,523 | $ 2,173,701 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation | 1,778,280 | 1,620,069 |
Stock-based compensation expense | 44,166 | 255,631 |
Amortization of intangible assets | 12,917 | 18,753 |
Loss on disposal of property and equipment | 68,395 | 48,380 |
Noncash postemployment health and life benefit | (220,851) | (89,393) |
Noncash lease expense | (26,258) | |
Changes in assets and liabilities: | ||
Accounts receivable | (1,187,917) | (164,748) |
Inventories | (82,294) | 132,267 |
Other current assets | 324,711 | (13,552) |
Related party receivable | (13,099) | (13,107) |
Other long-term assets | 74,135 | 51,740 |
Accounts payable | 185,837 | 625,564 |
Accrued expenses and other liabilities | 249,784 | 431,754 |
Postretirement benefit liability - health and life | (18,208) | (38,302) |
Other long-term liabilities | (7,244) | (117,935) |
Cash provided by operating activities | 2,455,877 | 4,920,822 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (1,584,511) | (3,063,256) |
Payments on life insurance policies, net of proceeds from policy loans | 127,440 | (122,299) |
Cash used in Investing Activities | (1,457,071) | (3,185,555) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in checks issued in excess of bank balance | (102,725) | 44,436 |
Net advances on lines of credit | 1,893,069 | 936,673 |
Payments on long-term debt | (959,539) | (924,382) |
Proceeds from issuance of long-term debt | 454,088 | 560,677 |
Payments on finance lease liabilities | (297,676) | (304,383) |
Additions to related party obligation | 800,000 | 272,000 |
Payments on related party obligation | (628,023) | (67,502) |
Payment of preferred stock dividends | (2,332,503) | (2,325,640) |
Purchase and retirement of treasury stock | (13,300) | |
Cash used in financing activities | (1,186,609) | (1,808,121) |
Net Change in Cash and Cash equivalents | (187,803) | (72,854) |
Cash and Cash equivalents - beginning of Period | 1,028,841 | 1,267,319 |
Effects of currency translation on cash and cash equivalents | (22,749) | (25,163) |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 818,289 | $ 1,169,302 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 29, 2019 | |
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 December 30, 2018 and December 31, 2017 which included all information and notes necessary for such complete presentation in conjunction with its 2018 Annual Report on Form 10-K. The results of operations for the interim period ended September 29, 2019 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 December 30, 2018, which are contained in the Company’s 2018 Annual Report on Form 10-K. 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 (Earby) Limited (“Wardle Storeys”), a European manufacturer of textured coatings and polymer films. The Company and its subsidiaries use a 52/53-week fiscal year ending on the Sunday nearest to December 31. The current year ending December 29, 2019 and the prior year ended December 30, 2018 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 presentation of the Company’s financial position as of September 29, 2019 and the results of operations, comprehensive loss and cash flows for the interim periods ended September 29, 2019 and September 30, 2018. 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 U.S. dollar as the reporting currency for financial reporting. The financial position and results of operations of the Company’s U.K.-based operations are measured using the British Pound Sterling as the functional currency. See Note 5, Foreign Currency Translation. For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. |
Noncash Transactions and Supple
Noncash Transactions and Supplemental Disclosure of Cash Flow Information | 9 Months Ended |
Sep. 29, 2019 | |
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 nine months ended September 29, 2019 and September 30, 2018, the Company entered into several equipment financing obligations with fair values of $379,126 and $793,001, respectively, which are accounted for as capital assets. The fair values were added to property and equipment and a corresponding amount to finance lease or long-term debt. See Note 12 for additional information on finance leases. The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases” on December 31, 2018. Under this new standard, the Company was required to record on its balance sheet previously unrecorded operating leases based on the present value of remaining lease payments. Per this new standard, the Company recorded right-of-use (“ROU”) operating lease assets and operating lease liabilities of $6,815,376 on its consolidated balance sheet as of December 31, 2018. During the nine months ended September 29, 2019, the Company recorded new lease ROU operating lease assets and operating lease liabilities of $287,828, amortization of its ROU operating lease assets of $457,692 and amortization of its operating lease liabilities of $483,950. See Note 12 for additional information on operating leases. During the third quarter of 2019, the Company obtained $249,051 in loans against the cash value of its company owned life insurance policies and are shown net of payments of $121,611 on the life insurance policies in the consolidated statements of cash flows. These loans have a weighted average interest rate of 3.66% and can be repaid at any time. On April 1, 2018, the Company’s majority shareholder purchased the company owned life insurance policy on his life. The policy had a net value of $128,399 based on the cash surrender value of $578,490 and a policy loan outstanding in the amount of $450,091. After his assumption of a related party demand note payable in the amount of $125,000, the balance due of $3,399 was paid on April 17, 2018. Supplemental disclosure of cash paid for the nine months ended : September 29, 2019 September 30, 2018 Interest expense $ 1,452,735 $ 1,344,520 Income taxes $ - $ - |
Derivatives
Derivatives | 9 Months Ended |
Sep. 29, 2019 | |
Derivatives | |
Derivatives | 3. Derivatives The Company recognizes all of its derivative instruments as either assets or liabilities in the consolidated 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 Other Income (Expense) in the accompanying consolidated statements of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 29, 2019 | |
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, accounts receivable, accounts payable and lines of credit. The Company adjusts the carrying value of financial instruments denominated in other currencies such as cash, receivables, accounts payable and 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 September 29, 2019 and December 30, 2018 were a net liability of $931 and $26,814, respectively, included in other current liabilities. The fair values of the currency exchange contracts are based upon observable market transactions of spot and forward rates. For the nine months ended September 29, 2019, there have been no changes in the application of valuation methods applied to similar assets and liabilities. |
Foreign Currency Translation
Foreign Currency Translation | 9 Months Ended |
Sep. 29, 2019 | |
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 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 the Company’s foreign operations are included in Other Income (Expense) in the accompanying consolidated statements of operations. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories consist of the following: September 29, 2019 December 30, 2018 Raw materials $ 6,228,673 $ 5,863,762 Work-in-process 4,706,757 5,040,582 Finished goods 10,009,870 10,049,567 20,945,300 20,953,911 Less: Allowance for inventory obsolescence (1,651,858 ) (1,493,651 ) Total Inventories, net $ 19,293,442 $ 19,460,260 |
Other Long-term Assets
Other Long-term Assets | 9 Months Ended |
Sep. 29, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Long-term Assets | 7. Other Long-term Assets Other long-term assets consist of the following: September 29, 2019 December 30, 2018 Deferred tax asset $ 2,859,409 $ 2,899,634 Other 626,587 793,733 Total Other Long-term Assets $ 3,485,996 $ 3,693,367 |
Other Long-term Liabilities
Other Long-term Liabilities | 9 Months Ended |
Sep. 29, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-term Liabilities | 8. Other Long-term Liabilities Other long-term liabilities consist of the following: September 29, 2019 December 30, 2018 Deferred tax liability $ 620,693 $ 640,219 Operating lease liabilities 5,903,344 - Other 7,026 13,434 Total Other Long-term Liabilities $ 6,531,063 $ 653,653 See Note 12 for additional information on operating lease liabilities. |
Lines of Credit
Lines of Credit | 9 Months Ended |
Sep. 29, 2019 | |
Line of Credit Facility [Abstract] | |
Line of Credit | 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 (“Uniroyal Line of Credit”), which matures on June 15, 2023. 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 Company was in compliance with these covenants as of September 29, 2019. The outstanding balance on the Uniroyal Line of Credit was $11,668,852 and $10,713,318 as of September 29, 2019 and December 30, 2018, 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 £10,000,000 (approximately $12.3 million) revolving line of credit financing agreement with Lloyds Bank Commercial Finance Limited (“U.K. 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 (U.K. 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 Company was in compliance with these covenants as of September 29, 2019. The outstanding balance on the U.K. Line of Credit was £7,523,861 and £6,787,260 ($9,267,320 and $8,611,798) as of September 29, 2019 and December 30, 2018, 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 | 9 Months Ended |
Sep. 29, 2019 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-Term Debt | 10. Long-term Debt Long-term debt consists of the following: Interest Rate September 29, December 30, Wells Fargo Capital Finance, LLC Prime $ 1,178,251 $ 1,413,898 Kennet Equipment Leasing Limited 10.90% 279,675 451,173 Regents Capital Corporation 6.20%-7.41% 1,102,711 1,058,305 De Lage Landen Financial Services 7.35% 49,895 68,208 Ford Motor Credit 4.31% 21,042 27,881 Byline Financial Group 8.55% - 5,913 BB&T Equipment Finance Corporation 4.02%-5.12% 724,509 879,600 Crown Credit Company 7.06% 12,194 - Lloyds Bank Commercial Finance Limited LIBOR + 3.15% - +3.50% 230,076 14,380 Lloyds Bank Commercial Finance Limited LIBOR + 3.50% 1,305,486 1,344,801 Lloyds Bank Commercial Finance Limited 4.23% 60,904 73,562 4,964,743 5,337,721 Less: Current portion (1,502,555 ) (1,369,967 ) Long-term Portion $ 3,462,188 $ 3,967,754 |
Related Party Obligations
Related Party Obligations | 9 Months Ended |
Sep. 29, 2019 | |
Related Party Obligations | |
Related Party Obligations | 11. Related Party Obligations Long-term debt to related parties consists of the following: Interest Rate September 29, 2019 December 30, 2018 Senior subordinated promissory note 9.25% $ 2,000,000 $ 2,000,000 Senior secured promissory note 10.00% 765,655 765,655 Subordinated secured promissory note 8.00% 225,000 225,000 Subordinated secured promissory note 8.00% 200,000 - 3,190,655 2,990,655 Less: Current portion - - Long-term Portion $ 3,190,655 $ 2,990,655 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, owned by the Company’s majority shareholder. The lease financing obligation accrues interest at 14.95% and currently requires monthly principal and interest payments of $45,201, 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. The lease financing obligation consists of the following: September 29, 2019 December 30, 2018 Related party lease financing obligation $ 2,809,847 $ 2,697,871 Less: Current portion (129,858 ) (84,154 ) Long-term Portion $ 2,679,989 $ 2,613,717 The long-term portion of the lease financing obligation is shown in the accompanying consolidated balance sheets as Related Party Lease Financing Obligation. In July 2019, the Company issued $600,000 of subordinated secured promissory notes to the Company’s majority shareholder at a rate of 10%. Of these notes, $550,000 was repaid in September 2019 while the remaining $50,000 balance was repaid in October 2019. The remaining balance of the related party subordinated secured promissory notes and the current portion of the related party lease financing obligation total $179,858 and are shown in current liabilities as Related Party Obligation. During October 2019, the Company issued a $350,000 subordinated secured promissory note to the Company’s majority shareholder at a rate of 10%. |
Leases
Leases | 9 Months Ended |
Sep. 29, 2019 | |
Capital Leases | |
Leases | 12. Leases The Company has operating leases for equipment and office facilities and finance leases for equipment. These leases expire at various dates from January 2020 through March 2039. Operating lease right-of-use assets are included in property and equipment, the current portion of operating lease liabilities is included in accrued expenses and other liabilities, and the long-term portion of operating lease liabilities is included in other long-term liabilities in the accompanying consolidated balance sheet at September 29, 2019. Finance lease right-of-use assets are included in property and equipment, the current portion of finance lease liabilities is included in current maturities of finance lease liabilities, and the long-term portion of finance liabilities is included in finance lease liabilities, less current portion in the accompanying consolidated balance sheet at September 29, 2019. The Company determines if an arrangement is a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the beginning date of a lease based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on information that is available at the beginning date of a lease to determine the present value of lease payments, since its leases generally do not provide an implicit rate. The implicit rate is used when readily determinable. The terms of the Company’s leases may include options to extend or terminate a lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements with lease and non-lease components are accounted for separately. The components of lease expense for the three and nine months ended September 29, 2019 are as follows: Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Operating lease expense $ 285,732 $ 849,936 Finance lease expense: Amortization of right-of-use assets $ 36,532 $ 113,837 Interest on lease liabilities 3,255 14,291 Total finance lease expense $ 39,787 $ 128,128 Cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 29, 2019 are as follows: Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Operating cash flows from operating leases $ 135,454 $ 633,267 Operating cash flows from finance leases $ 3,255 $ 14,291 Financing cash flows from finance leases $ 93,966 $ 297,676 Right-of-use assets obtained in exchange for lease obligations for the three and nine months ended September 29, 2019 are as follows: Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Operating leases $ - $ 287,828 Financing leases $ - $ - Supplemental balance sheet and other information related to operating leases are as follows: September 29, 2019 Operating leases: Property and equipment, net $ 6,461,639 Accrued expenses and other liabilities $ 532,884 Other long-term liabilities 5,903,344 Total operating lease liabilities $ 6,436,228 Weighted average remaining lease term 15.6 years Weighted average discount rate 7.11% Supplemental balance sheet and other information related to finance leases are as follows: September 29, 2019 Finance leases: Property and equipment, net $ 1,279,513 Current maturities of finance lease liabilities $ 177,190 Finance lease liabilities, less current portion 18,477 Total finance lease liabilities $ 195,667 Weighted average remaining lease term 0.9 year Weighted average discount rate 5.99% Maturities of operating and finance lease liabilities as of September 29, 2019 are as follows: Operating Leases Finance Leases Due in one year or less $ 965,345 $ 181,081 Due after one year through two years 850,387 18,805 Due after two years through three years 802,196 - Due after three years through four years 686,813 - Due after four years through five years 497,887 - Thereafter 7,653,201 - Total lease payments 11,455,829 199,886 Less: Interest (5,019,601 ) (4,219 ) Total $ 6,436,228 $ 195,667 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 29, 2019 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss were as follows: Minimum Foreign Currency Total Balance at December 30, 2018 $ 836,593 $ (1,539,238 ) $ (702,645 ) Other comprehensive loss before - (221,612 ) (221,612 ) Reclassification adjustment for gains included (220,851 ) - (220,851 ) Balance at September 29, 2019 $ 615,742 $ (1,760,850 ) $ (1,145,108 ) The gains reclassified from accumulated other comprehensive loss are recorded to the following line items in the consolidated statements of operations: Other Comprehensive Loss Component Consolidated Statements of Minimum Benefit Liability Adjustments General and administrative expense |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 29, 2019 | |
Stock Options or Stock Based Compensation | |
Stock Based Compensation | 14. 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. Compensation expense is recognized on a straight-line basis over a three-year vesting period from date of grant. Stock option activity for the nine months ended September 29, 2019 and September 30, 2018 is as follows: Stock Options Total Weighted Exercisable Weighted Non- Weighted Outstanding at December 31, 2017 961,500 $ 2.80 527,165 $ 2.63 434,335 $ 3.00 Granted - - - - - - Vested - - 315,504 2.80 (315,504 ) 2.80 Exercised - - - - - - Forfeited or cancelled (15,000 ) 2.77 (8,334 ) 2.61 (6,666 ) 2.97 Outstanding at September 30, 2018 946,500 $ 2.80 834,335 $ 2.69 112,165 $ 3.57 Outstanding at December 30, 2018 946,500 $ 2.80 834,335 $ 2.69 112,165 $ 3.57 Granted - - - - - - Vested - - 112,165 3.57 (112,165 ) 3.57 Exercised - - - - - - Forfeited or cancelled (37,500 ) 2.77 (37,500 ) 2.77 - - Outstanding at September 29, 2019 909,000 $ 2.80 909,000 $ 2.80 - $ - Aggregate Intrinsic Value September 30, 2018 $ - $ - $ - Aggregate Intrinsic Value September 29, 2019 $ - $ - $ - As of September 29, 2019 and September 30, 2018, there was no aggregate intrinsic value of the options outstanding because the options’ exercise prices of $2.37 and $3.57 per share were greater than the average market prices of the common shares. Option expense recognized was $0 and $62,250 for the three months ended September 29, 2019 and September 30, 2018, respectively, and $44,166 and $255,631 for the nine months ended September 29, 2019 and September 30, 2018, respectively. As of September 29, 2019, there was no unrecognized compensation cost related to the options granted under the 2015 Stock Option Plan. |
Recent Accounting Standards
Recent Accounting Standards | 9 Months Ended |
Sep. 29, 2019 | |
Related Party Obligations Schedule Of Current Portions Details | |
Recent Accounting Standards | 15. Recent Accounting Standards On February 25, 2016, the Financial Accounting Standards Board issued a new standard, ASU No. 2016-02, “Leases,” on July 30, 2018, it issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” and on March 5, 2019, it issued ASU No. 2019-01, “Leases (Topic 842): Codification Improvements.” Under the new guidance, a lessee is required to recognize right-of-use (“ROU”) assets and lease liabilities for leases with lease terms of more than 12 months. Consistent with previous U.S. generally accepted accounting principles (“U.S. GAAP”), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily depends on its classification as a finance or operating lease. However, unlike previous GAAP, which required only finance leases to be recognized on the balance sheet, the new ASU requires both types of leases to be recognized on the balance sheet. The Company adopted this standard on December 31, 2018. The Company elected to recognize and measure leases at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings; however, no adjustment to the opening balance of retained earnings was needed. The Company elected the available practical expedients for leases that began before the effective date of this new standard except the Company did not elect to use hindsight in determining the lease term and in assessing impairment of its ROU assets. The Company elected to apply and adopt as an accounting policy to exclude leases with terms of 12 months or less but did not elect to apply and adopt as an accounting policy not to separate lease components from non-lease components. The adoption of this standard for the year ending December 29, 2019 will have a significant effect on the Company’s consolidated financial position as it records previously unrecorded operating leases but it will not have a significant effect on its results of operations and cash flows. 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 adoption of this standard is not expected to have a significant effect on the Company’s consolidated financial position, results of operations and cash flows. On August 28, 2018, the Financial Accounting Standards Board issued a new standard, ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The new standard modifies the disclosure requirements on fair value measurements in Topic 820, “Fair Value Measurement.” Certain requirements were removed such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, certain requirements were modified and certain disclosures were added such as the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period. This standard will be effective for the Company on December 30, 2019. Since this standard only revises disclosure requirements, the adoption of this standard will not have a significant effect on the Company’s consolidated financial position, results of operations and cash flows. |
Loss per Common Share
Loss per Common Share | 9 Months Ended |
Sep. 29, 2019 | |
LOSS PER COMMON SHARE: | |
Loss per Common Share | 16. Loss per Common Share The following table sets forth the computation of loss per common share - basic and loss per common share – diluted Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Numerator Net loss allocable to common $ (499,998 ) $ (10,118 ) $ (1,066,339 ) $ (156,549 ) Denominator Denominator for basic earnings per 18,680,030 18,690,030 18,684,938 18,690,030 Weighted average effect of dilutive - - - - Denominator for dilutive earnings 18,680,030 18,690,030 18,684,938 18,690,030 Basic and Diluted Loss Per Share Net loss allocable to common $ (0.03 ) $ (0.00 ) $ (0.06 ) $ (0.01 ) Effect of dilutive securities - - - - Net loss allocable to common $ (0.03 ) $ (0.00 ) $ (0.06 ) $ (0.01 ) Due to the net loss for the three and nine months ended September 29, 2019 and the three and nine months ended September 30, 2018, the calculations of basic and diluted loss per share were the same since including options to purchase shares of common stock in the calculations of diluted loss per share would have been anti-dilutive. However, if diluted earnings per share had been reported for the three and nine months ended September 29, 2019, the calculations would have excluded options to purchase 909,000 shares of common stock and for the three and nine months ended September 30, 2018, the calculations would have excluded options to purchase 946,500 shares of common stock because the options’ exercise prices of $2.37 and $3.57 per share were greater than the average market prices of the common shares. |
Revenue
Revenue | 9 Months Ended |
Sep. 29, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue | 17. Revenue The Company recognizes revenue and related accounts receivable when obligations under the terms of a contract with a customer are satisfied, which includes the control of products transferring to the customer. For Uniroyal, this generally occurs when products are shipped and, for UGL, this generally occurs when the customer accepts delivery either at the Company’s U.K. facility or at a mutually agreed upon location. Revenue is measured as the amount of consideration the Company expects to receive in exchange for products transferred to the customer. A contract asset occurs when an entity transfers products to a customer before payment is due while a contract liability occurs when an entity has an obligation to transfer products to a customer for which the entity has already received payment (or payment is due) from the customer. Remaining performance obligations exist when an entity expects to record future revenue on partially completed contracts. The Company does not have contract assets or contract liabilities and has no remaining performance obligations since it does not recognize revenue until a contract is complete. The following table sets forth revenue disaggregated by the Company’s automotive and industrial sectors Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Revenue by product sector: Automotive sector $ 14,133,223 $ 15,704,983 $ 46,433,893 $ 50,779,733 Industrial sector 7,900,316 8,617,549 25,089,289 25,995,719 Total Revenue $ 22,033,539 $ 24,322,532 $ 71,523,182 $ 76,775,452 The following table sets forth revenue disaggregated by the geographic locations of the Company’s customers Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Revenue by customer location: North America $ 11,213,393 $ 12,024,258 $ 35,527,931 $ 35,925,458 Europe 9,362,032 11,088,469 31,968,702 36,253,258 Asia 1,383,081 1,128,556 3,799,104 4,381,679 Other 75,033 81,249 227,445 215,057 Total Revenue $ 22,033,539 $ 24,322,532 $ 71,523,182 $ 76,775,452 |
Restructuring Expenses
Restructuring Expenses | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring Expenses | |
Restructuring Expenses | 18. Restructuring Expenses In order to increase operating efficiencies and decrease costs, the Company developed a plan to restructure the operations and the management team of its foreign operations located in Earby, England. As part of this restructuring, the Company announced the decommissioning of the calender operations which could not be economically modernized. An impairment charge of $510,230 for the assets used in this operation was included in the operating results for the year ended December 30, 2018. The decommissioning plan was implemented over an extended period to permit existing customers time to arrange for alternate sources of product or for them to switch to one of the Company’s other coated fabric solutions from its state-of-the art production facility. The final calender run was in August 2019. The Company anticipated that it would reduce its work force but would also offer a retraining program to allow a limited number of employees the opportunity to move to other production areas within the facility. The Company does not expect that the cost associated with this aspect of the plan to be significant and will expense these costs as incurred. Also, as part of the restructuring, during the quarter ended March 31, 2019 the Company entered into settlement agreements with certain members of that facility’s management team which terminated their continuing service. The Company recorded a charge of $343,003 for the cost of these agreements which is included in Other Operating Expenses in the accompanying consolidated statements of operations for the nine months ended September 29, 2019. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events The Company has evaluated subsequent events occurring through the date that the financial statements were available to be issued for events requiring recording or disclosure in the September 29, 2019 consolidated financial statements. There were no material events or transactions occurring during this period requiring recognition or disclosure. |
Noncash Transactions and Supp_2
Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Noncash Transactions and Supplemental Disclosure of Cash Flow Information Text Block | Supplemental disclosure of cash paid for the nine months ended : September 29, 2019 September 30, 2018 Interest expense $ 1,452,735 $ 1,344,520 Income taxes $ - $ - |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: September 29, 2019 December 30, 2018 Raw materials $ 6,228,673 $ 5,863,762 Work-in-process 4,706,757 5,040,582 Finished goods 10,009,870 10,049,567 20,945,300 20,953,911 Less: Allowance for inventory obsolescence (1,651,858 ) (1,493,651 ) Total Inventories, net $ 19,293,442 $ 19,460,260 |
Other Long-term Assets (Tables)
Other Long-term Assets (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Long-term Assets | Other long-term assets consist of the following: September 29, 2019 December 30, 2018 Deferred tax asset $ 2,859,409 $ 2,899,634 Other 626,587 793,733 Total Other Long-term Assets $ 3,485,996 $ 3,693,367 |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Long-term Liabilities | Other long-term liabilities consist of the following: September 29, 2019 December 30, 2018 Deferred tax liability $ 620,693 $ 640,219 Operating lease liabilities 5,903,344 - Other 7,026 13,434 Total Other Long-term Liabilities $ 6,531,063 $ 653,653 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: Interest Rate September 29, December 30, Wells Fargo Capital Finance, LLC Prime $ 1,178,251 $ 1,413,898 Kennet Equipment Leasing Limited 10.90% 279,675 451,173 Regents Capital Corporation 6.20%-7.41% 1,102,711 1,058,305 De Lage Landen Financial Services 7.35% 49,895 68,208 Ford Motor Credit 4.31% 21,042 27,881 Byline Financial Group 8.55% - 5,913 BB&T Equipment Finance Corporation 4.02%-5.12% 724,509 879,600 Crown Credit Company 7.06% 12,194 - Lloyds Bank Commercial Finance Limited LIBOR + 3.15% - +3.50% 230,076 14,380 Lloyds Bank Commercial Finance Limited LIBOR + 3.50% 1,305,486 1,344,801 Lloyds Bank Commercial Finance Limited 4.23% 60,904 73,562 4,964,743 5,337,721 Less: Current portion (1,502,555 ) (1,369,967 ) Long-term Portion $ 3,462,188 $ 3,967,754 |
Related Party Obligations (Tabl
Related Party Obligations (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Related Party Obligations Tables | |
Schedule of Long-term Debt to Related Parties | Long-term debt to related parties consists of the following: Interest Rate September 29, 2019 December 30, 2018 Senior subordinated promissory note 9.25% $ 2,000,000 $ 2,000,000 Senior secured promissory note 10.00% 765,655 765,655 Subordinated secured promissory note 8.00% 225,000 225,000 Subordinated secured promissory note 8.00% 200,000 - 3,190,655 2,990,655 Less: Current portion - - Long-term Portion $ 3,190,655 $ 2,990,655 |
Schedule of Related Party Lease Obligation | The lease financing obligation consists of the following: September 29, 2019 December 30, 2018 Related party lease financing obligation $ 2,809,847 $ 2,697,871 Less: Current portion (129,858 ) (84,154 ) Long-term Portion $ 2,679,989 $ 2,613,717 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense | The components of lease expense for the three and nine months ended September 29, 2019 are as follows: Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Operating lease expense $ 285,732 $ 849,936 Finance lease expense: Amortization of right-of-use assets $ 36,532 $ 113,837 Interest on lease liabilities 3,255 14,291 Total finance lease expense $ 39,787 $ 128,128 |
Schedule of Cash Paid for Lease Liabilities | Cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 29, 2019 are as follows: Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Operating cash flows from operating leases $ 135,454 $ 633,267 Operating cash flows from finance leases $ 3,255 $ 14,291 Financing cash flows from finance leases $ 93,966 $ 297,676 |
Schedule of Right-of-use assets Obtained in Exchange for Lease Obligations | Right-of-use assets obtained in exchange for lease obligations for the three and nine months ended September 29, 2019 are as follows: Three Months Ended Nine Months Ended September 29, 2019 September 29, 2019 Operating leases $ - $ 287,828 Financing leases $ - $ - |
Schedule of Supplemental Information Related to Operating Leases | Supplemental balance sheet and other information related to operating leases are as follows: September 29, 2019 Operating leases: Property and equipment, net $ 6,461,639 Accrued expenses and other liabilities $ 532,884 Other long-term liabilities 5,903,344 Total operating lease liabilities $ 6,436,228 Weighted average remaining lease term 15.6 years Weighted average discount rate 7.11% |
Schedule of Supplemental Information Related to Finance Leases | Supplemental balance sheet and other information related to finance leases are as follows: September 29, 2019 Finance leases: Property and equipment, net $ 1,279,513 Current maturities of finance lease liabilities $ 177,190 Finance lease liabilities, less current portion 18,477 Total finance lease liabilities $ 195,667 Weighted average remaining lease term 0.9 year Weighted average discount rate 5.99% |
Schedule of Maturities of Lease Liabilities | Maturities of operating and finance lease liabilities as of September 29, 2019 are as follows: Operating Leases Finance Leases Due in one year or less $ 965,345 $ 181,081 Due after one year through two years 850,387 18,805 Due after two years through three years 802,196 - Due after three years through four years 686,813 - Due after four years through five years 497,887 - Thereafter 7,653,201 - Total lease payments 11,455,829 199,886 Less: Interest (5,019,601 ) (4,219 ) Total $ 6,436,228 $ 195,667 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss were as follows: Minimum Foreign Currency Total Balance at December 30, 2018 $ 836,593 $ (1,539,238 ) $ (702,645 ) Other comprehensive loss before - (221,612 ) (221,612 ) Reclassification adjustment for gains included (220,851 ) - (220,851 ) Balance at September 29, 2019 $ 615,742 $ (1,760,850 ) $ (1,145,108 ) |
Gain (Loss) Reclassified from AOCI | The gains reclassified from accumulated other comprehensive loss are recorded to the following line items in the consolidated statements of operations: Other Comprehensive Loss Component Consolidated Statements of Minimum Benefit Liability Adjustments General and administrative expense |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Schedule of Stock Option Plan: | |
Schedule of Stock Options Activity | Stock option activity for the nine months ended September 29, 2019 and September 30, 2018 is as follows: Stock Options Total Weighted Exercisable Weighted Non- Weighted Outstanding at December 31, 2017 961,500 $ 2.80 527,165 $ 2.63 434,335 $ 3.00 Granted - - - - - - Vested - - 315,504 2.80 (315,504 ) 2.80 Exercised - - - - - - Forfeited or cancelled (15,000 ) 2.77 (8,334 ) 2.61 (6,666 ) 2.97 Outstanding at September 30, 2018 946,500 $ 2.80 834,335 $ 2.69 112,165 $ 3.57 Outstanding at December 30, 2018 946,500 $ 2.80 834,335 $ 2.69 112,165 $ 3.57 Granted - - - - - - Vested - - 112,165 3.57 (112,165 ) 3.57 Exercised - - - - - - Forfeited or cancelled (37,500 ) 2.77 (37,500 ) 2.77 - - Outstanding at September 29, 2019 909,000 $ 2.80 909,000 $ 2.80 - $ - Aggregate Intrinsic Value September 30, 2018 $ - $ - $ - Aggregate Intrinsic Value September 29, 2019 $ - $ - $ - |
Loss per Common Share (Tables)
Loss per Common Share (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Loss Per Common Share | |
Schedule of Loss per Common Share | The following table sets forth the computation of loss per common share - basic and loss per common share – diluted Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Numerator Net loss allocable to common $ (499,998 ) $ (10,118 ) $ (1,066,339 ) $ (156,549 ) Denominator Denominator for basic earnings per 18,680,030 18,690,030 18,684,938 18,690,030 Weighted average effect of dilutive - - - - Denominator for dilutive earnings 18,680,030 18,690,030 18,684,938 18,690,030 Basic and Diluted Loss Per Share Net loss allocable to common $ (0.03 ) $ (0.00 ) $ (0.06 ) $ (0.01 ) Effect of dilutive securities - - - - Net loss allocable to common $ (0.03 ) $ (0.00 ) $ (0.06 ) $ (0.01 ) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Disaggregated Revenue | The following table sets forth revenue disaggregated by the Company’s automotive and industrial sectors Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Revenue by product sector: Automotive sector $ 14,133,223 $ 15,704,983 $ 46,433,893 $ 50,779,733 Industrial sector 7,900,316 8,617,549 25,089,289 25,995,719 Total Revenue $ 22,033,539 $ 24,322,532 $ 71,523,182 $ 76,775,452 The following table sets forth revenue disaggregated by the geographic locations of the Company’s customers Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Revenue by customer location: North America $ 11,213,393 $ 12,024,258 $ 35,527,931 $ 35,925,458 Europe 9,362,032 11,088,469 31,968,702 36,253,258 Asia 1,383,081 1,128,556 3,799,104 4,381,679 Other 75,033 81,249 227,445 215,057 Total Revenue $ 22,033,539 $ 24,322,532 $ 71,523,182 $ 76,775,452 |
Noncash Transactions and Supp_3
Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2019 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | Apr. 17, 2018 | Apr. 04, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||||||
New equipment leases during the year | $ 379,126 | $ 793,001 | ||||
Policy net value | $ 128,399 | |||||
Cash surrender value of insurance policies | 578,490 | |||||
Insurance policy loans | $ 249,051 | 249,051 | 450,091 | |||
Notes payable | $ 3,399 | $ 125,000 | ||||
Interest expense | 1,452,735 | 1,344,520 | ||||
Income taxes | ||||||
Right-of-use operating lease assets | 287,828 | 287,828 | $ 6,815,376 | |||
Operating lease liabilities | 6,436,228 | 6,436,228 | $ 6,815,376 | |||
Amortization of right-of-use asset | 457,692 | |||||
Amortization of operating lease liability | $ 483,950 | |||||
Payment for life insurance policies | $ 121,611 | |||||
Weighted average interest rate | 3.66% | 3.66% |
Derivatives (Details)
Derivatives (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Derivatives Details Abstract | |
Percentage of risk on currency exchange contracts | 25.00% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Fair Value Of Financial Instruments Details Abstract | ||
Fair value of foreign currency exchange contracts liability | $ 931 | $ 26,814 |
Inventories (Details)
Inventories (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,228,673 | $ 5,863,762 |
Work-in-process | 4,706,757 | 5,040,582 |
Finished goods | 10,009,870 | 10,049,567 |
Inventories gross | 20,945,300 | 20,953,911 |
Less: Allowance for inventory obsolescence | (1,651,858) | (1,493,651) |
Total Inventories, net | $ 19,293,442 | $ 19,460,260 |
Other Long-term Assets (Details
Other Long-term Assets (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Other Assets, Noncurrent [Abstract] | ||
Deferred tax asset | $ 2,859,409 | $ 2,899,634 |
Other | 626,587 | 793,733 |
Total Other Long-term Assets | $ 3,485,996 | $ 3,693,367 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred tax liability | $ 620,693 | $ 640,219 |
Operating lease liabilities | 5,903,344 | |
Other | 7,026 | 13,434 |
Total Other Long-term Liabilities | $ 6,531,063 | $ 653,653 |
Lines of Credit (Details)
Lines of Credit (Details) | 9 Months Ended | |||
Sep. 29, 2019USD ($) | Sep. 29, 2019GBP (£) | Dec. 30, 2018USD ($) | Dec. 30, 2018GBP (£) | |
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 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. | |||
Line of credit amount outstanding | $ 11,668,852 | $ 10,713,318 | ||
Line of credit, maturity date | Jun. 15, 2023 | |||
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | ||||
Line of credit maximum amount | $ 12,300,000 | |||
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 (U.K. LIBOR or Lloyds Bank Base Rate as published) plus 1.95% to 2.45% depending on the tranche. | |||
Line of credit amount outstanding | $ 9,267,320 | $ 8,611,798 | ||
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | British Pound Sterling [Member] | ||||
Line of credit maximum amount | £ | £ 10,000,000 | |||
Line of credit amount outstanding | £ | £ 7,523,861 | £ 6,787,260 | ||
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | Minimum [Member] | ||||
Line of credit premium over base rate | 1.95% | |||
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | Maximum [Member] | ||||
Line of credit premium over base rate | 2.45% |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term debt) (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,964,743 | $ 5,337,721 |
Less: Current portion | (1,502,555) | (1,369,967) |
Long-Term Portion | 3,462,188 | 3,967,754 |
Wells Fargo Capital Finance LLC Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,178,251 | 1,413,898 |
Kennet Equipment Leasing Financing Obligation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 279,675 | 451,173 |
Regents Capital Corporation Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,102,711 | 1,058,305 |
De Lage Landen Financial Services Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 49,895 | 68,208 |
Ford Motor Credit Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 21,042 | 27,881 |
Byline Financial Group Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 5,913 | |
BB&T Equipment Finance Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 724,509 | 879,600 |
Crown Credit Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 12,194 | |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 230,076 | 14,380 |
Lloyds Bank Commercial Finance Limited [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,305,486 | 1,344,801 |
Lloyds Bank Commercial Finance Limited 2 [Member] | Wardle Storeys [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 60,904 | $ 73,562 |
Long-Term Debt (Schedule of L_2
Long-Term Debt (Schedule of Long-term debt Interest Rate) (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Wells Fargo Capital Finance LLC Loan [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate basis | Prime |
Kennet Equipment Leasing Financing Obligation [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 10.90% |
Regents Capital Corporation Note Payable [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 6.20% |
Regents Capital Corporation Note Payable [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 7.41% |
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 | 4.31% |
Byline Financial Group Note Payable [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 8.55% |
BB&T Equipment Finance Corporation [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 4.02% |
BB&T Equipment Finance Corporation [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 5.12% |
Crown Credit Company [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 7.06% |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | LIBOR [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate above basis | 3.15% |
Long-term debt, interest rate basis | LIBOR |
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | LIBOR [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate above basis | 3.50% |
Lloyds Bank Commercial Finance Limited 2 [Member] | Wardle Storeys [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate above basis | 3.50% |
Long-term debt, interest rate basis | LIBOR |
Lloyds Bank Commercial Finance Limited [Member] | |
Debt Instrument [Line Items] | |
Long term debt, interest rate | 4.23% |
Related Party Obligations (Narr
Related Party Obligations (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019 | Sep. 30, 2019 | Jul. 31, 2019 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Repayments of related party debt | $ 628,023 | $ 67,502 | ||||
Related party lease financing obligation | 2,809,847 | $ 2,697,871 | ||||
Related party obligation | $ 179,858 | $ 84,154 | ||||
Company's Majority Owners [Member] | ||||||
Long-term debt, interest rate | 14.95% | |||||
Long-term debt, periodic payment | $ 45,201 | |||||
Long-term debt, security deposit | $ 267,500 | |||||
Long-term debt, maturity date | Oct. 31, 2033 | |||||
Related party obligation | $ 179,858 | |||||
Senior subordinated promissory note [Member] | ||||||
Repayments of related party debt | $ 50,000 | $ 550,000 | ||||
Long-term debt, interest rate | 9.25% | |||||
Related party subordinated secured promissory note | $ 350,000 | $ 600,000 | ||||
Promissory notes interest rates | 10.00% | 10.00% |
Related Party Obligations (Long
Related Party Obligations (Long-term debt to related parties) (Details) - USD ($) | 9 Months Ended | |
Sep. 29, 2019 | Dec. 30, 2018 | |
Total debt to related parties | $ 3,190,655 | $ 2,990,655 |
Less: Current portion of debt to related parties | ||
Total Long-term Debt to Related Parties | 3,190,655 | 2,990,655 |
Senior subordinated promissory note [Member] | ||
Total debt to related parties | $ 2,000,000 | 2,000,000 |
Long-term debt, interest rate | 9.25% | |
Senior secured promissory note [Member] | ||
Total debt to related parties | $ 765,655 | 765,655 |
Long-term debt, interest rate | 10.00% | |
Subordinated secured promissory note [Member] | ||
Total debt to related parties | $ 225,000 | 225,000 |
Long-term debt, interest rate | 8.00% | |
Subordinated secured promissory note 2 [Member] | ||
Total debt to related parties | $ 200,000 | |
Long-term debt, interest rate | 8.00% |
Related Party Obligations (Leas
Related Party Obligations (Lease Financing Obligation) (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Related Party Lease Financing Obligation Details | ||
Related party lease financing obligation | $ 2,809,847 | $ 2,697,871 |
Less: Current portion | (129,858) | (84,154) |
Long-Term Portion | $ 2,679,989 | $ 2,613,717 |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Expense) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019 | Sep. 29, 2019 | |
Lessee Disclosure [Abstract] | ||
Operating lease expense | $ 285,732 | $ 849,936 |
Finance lease expense: | ||
Amortization of right-of-use assets | 36,532 | 113,837 |
Interest on lease liabilities | 3,255 | 14,291 |
Total finance lease expense | $ 39,787 | $ 128,128 |
Leases (Schedule of Cash Paid f
Leases (Schedule of Cash Paid for Lease Liabilities) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019 | Sep. 29, 2019 | |
Lessee Disclosure [Abstract] | ||
Operating cash flows from operating leases | $ 135,454 | $ 633,267 |
Operating cash flows from finance leases | 3,255 | 14,291 |
Financing cash flows from finance leases | $ 93,966 | $ 297,676 |
Leases (Schedule of Right-of-us
Leases (Schedule of Right-of-use assets Obtained in Exchange for Lease Obligations) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019 | Sep. 29, 2019 | |
Lessee Disclosure [Abstract] | ||
Operating leases | $ 287,828 | |
Financing leases |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Information Related to Operating Leases) (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Operating leases: | ||
Property and equipment, net | $ 6,461,639 | |
Accrued expenses and other liabilities | 532,884 | |
Other long-term liabilities | 5,903,344 | |
Total operating lease liabilities | $ 6,436,228 | $ 6,815,376 |
Weighted average remaining lease term | 15 years 7 months 6 days | |
Weighted average discount rate | 7.11% |
Leases (Schedule of Supplemen_2
Leases (Schedule of Supplemental Information Related to Finance Leases) (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Finance leases: | ||
Property and equipment, net | $ 1,279,513 | |
Current maturities of finance lease liabilities | 177,190 | $ 388,862 |
Finance lease liabilities, less current portion | 18,477 | |
Total finance lease liabilities | $ 195,667 | |
Weighted average remaining lease term | 10 months 25 days | |
Weighted average discount rate | 5.99% |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Operating leases | ||
Due in one year or less | $ 965,345 | |
Due after one year through two years | 850,387 | |
Due after two years through three years | 802,196 | |
Due after three years through four years | 686,813 | |
Due after four years through five years | 497,887 | |
Thereafter | 7,653,201 | |
Total lease payments | 11,455,829 | |
Less: Interest | (5,019,601) | |
Total operating lease liabilities | 6,436,228 | $ 6,815,376 |
Finance lease | ||
Due in one year or less | 181,081 | |
Due after one year through two years | 18,805 | |
Due after two years through three years | ||
Due after three years through four years | ||
Due after four years through five years | ||
Thereafter | ||
Total lease payments | 199,886 | |
Less: Interest | (4,219) | |
Total finance lease liabilities | $ 195,667 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) | 9 Months Ended |
Sep. 29, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ (702,645) |
Other comprehensive loss before reclassifications | (221,612) |
Reclassification adjustment for gains included in net income | (220,851) |
Balance | (1,145,108) |
Minimum Benefit Liability Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 836,593 |
Other comprehensive loss before reclassifications | |
Reclassification adjustment for gains included in net income | (220,851) |
Balance | 615,742 |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (1,539,238) |
Other comprehensive loss before reclassifications | (221,612) |
Reclassification adjustment for gains included in net income | |
Balance | $ (1,760,850) |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Stock-based compensation expense | $ 0 | $ 62,250 | $ 44,166 | $ 255,631 |
Minimum [Member] | ||||
Option exercise price | $ 2.37 | $ 2.37 | $ 2.37 | $ 2.37 |
Maximum [Member] | ||||
Option exercise price | $ 3.57 | $ 3.57 | $ 3.57 | $ 3.57 |
Stock Based Compensation (Optio
Stock Based Compensation (Option Activity) (Details) - USD ($) | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Total Stock Options | ||
Outstanding | 946,500 | 961,500 |
Granted | ||
Vested | ||
Exercised | ||
Forfeited or cancelled | (37,500) | (15,000) |
Outstanding | 909,000 | 946,500 |
Total Weighted Average Exercise Price | ||
Outstanding | $ 2.80 | $ 2.80 |
Granted | ||
Vested | ||
Exercised | ||
Forfeited or cancelled | 2.77 | 2.77 |
Outstanding | $ 2.80 | $ 2.80 |
Exercisable | ||
Outstanding | 834,335 | 527,165 |
Granted | ||
Vested | 112,165 | 315,504 |
Exercised | ||
Forfeited or cancelled | (37,500) | (8,334) |
Outstanding | 909,000 | 834,335 |
Exercisable Weighted Average Exercise Price | ||
Outstanding | $ 2.69 | $ 2.63 |
Granted | ||
Vested | 3.57 | 2.80 |
Exercised | ||
Forfeited or cancelled | 2.77 | 2.61 |
Outstanding | $ 2.80 | $ 2.69 |
Nonvested | ||
Outstanding | 112,165 | 434,335 |
Granted | ||
Vested | (112,165) | (315,504) |
Forfeited or cancelled | (6,666) | |
Outstanding | 112,165 | |
Nonvested Weighted Average Exercise Price | ||
Outstanding | $ 3.57 | $ 3 |
Granted | ||
Vested | 3.57 | 2.80 |
Forfeited or cancelled | 2.97 | |
Outstanding | $ 3.57 | |
Aggregate intrinsic value | ||
Outstanding | ||
Exercisable | ||
Nonvested |
Loss per Common Share (Details)
Loss per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Numerator | ||||
Net loss allocable to common shareholders | $ (499,998) | $ (10,118) | $ (1,066,339) | $ (156,549) |
Denominator | ||||
Denominator for basic earnings per share - weighted average shares outstanding | 18,680,030 | 18,690,030 | 18,684,938 | 18,690,030 |
Weighted average effect of dilutive securities | ||||
Denominator for dilutive earnings per share - weighted average shares outstanding | 18,680,030 | 18,690,030 | 18,684,938 | 18,690,030 |
Basic and Diluted Loss Per Share | ||||
Net loss allocable to common shareholders | $ (0.03) | $ 0 | $ (0.06) | $ (0.01) |
Effect of dilutive securities | ||||
Net loss allocable to common shareholders | $ (0.03) | $ 0 | $ (0.06) | $ (0.01) |
Loss per Common Share (Narrativ
Loss per Common Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Weighted average effect of dilutive securities | ||||
Option exercise price | ||||
Stock Option [Member] | ||||
Weighted average effect of dilutive securities | 909,000 | 946,500 | 909,000 | 946,500 |
Stock Option [Member] | Minimum [Member] | ||||
Option exercise price | $ 2.37 | $ 2.37 | ||
Stock Option [Member] | Maximum [Member] | ||||
Option exercise price | $ 3.57 | $ 3.57 |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregated Revenue) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 22,033,539 | $ 24,322,532 | $ 71,523,182 | $ 76,775,452 |
Automotive Sector [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 14,133,223 | 15,704,983 | 46,433,893 | 50,779,733 |
Industrial Sector [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,900,316 | 8,617,549 | 25,089,289 | 25,995,719 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,213,393 | 12,024,258 | 35,527,931 | 35,925,458 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,362,032 | 11,088,469 | 31,968,702 | 36,253,258 |
Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,383,081 | 1,128,556 | 3,799,104 | 4,381,679 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 75,033 | $ 81,249 | $ 227,445 | $ 215,057 |
Restructuring Expenses (Narrati
Restructuring Expenses (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
LOSS PER COMMON SHARE: | |||||
Impairment charge assets | $ 510,230 | ||||
Other operating expenses | $ 343,003 |