Uniroyal Global Engineered Products (UNIR) 10-Q 14 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 04, 2021	May 03, 2021
Entity Registrant Name	UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC.
Document Type	10-Q
Document Period End Date	Apr. 4, 2021
Amendment Flag	false
Entity Central Index Key	0001172706
Current Fiscal Year End Date	--01-02
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	2021
Document Fiscal Period Focus	Q1
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		3,412,186
Common Class B [Member]
Entity Common Stock, Shares Outstanding		323,820

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Apr. 04, 2021	Jan. 03, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 1,820,504	$ 1,656,882
Accounts receivable, net	13,232,799	10,114,819
Inventories, net	18,806,113	17,952,850
Other current assets	2,032,971	1,841,153
Related party receivable	30,273	907
Total Current Assets	35,922,660	31,566,611
PROPERTY AND EQUIPMENT, NET	18,149,788	18,491,122
OPERATING LEASE RIGHT-OF-USE ASSETS, NET	6,144,689	6,242,736
OTHER ASSETS
Intangible assets	3,402,599	3,388,357
Goodwill	1,079,175	1,079,175
Other long-term assets	4,801,496	4,679,990
Total Other Assets	9,283,270	9,147,522
TOTAL ASSETS	69,500,407	65,447,991
CURRENT LIABILITIES
Checks issued in excess of bank balance	108,676	275,297
Lines of credit	18,629,921	17,760,583
Current maturities of long-term debt	1,774,366	1,432,301
Current maturities of finance lease liabilities	243,327	257,298
Accounts payable	8,428,939	7,344,785
Accrued expenses and other liabilities	9,113,066	7,987,333
Current maturities of related party finance lease liabilities	153,658	149,366
Current portion of postretirement benefit liability - health and life	162,977	162,977
Total Current Liabilities	38,614,930	35,369,940
LONG-TERM LIABILITIES
Long-term debt, less current portion	7,916,753	7,338,762
Finance lease liabilities, less current portion	176,339	235,116
Operating lease liabilities, less current portion	5,829,177	5,893,268
Related party finance lease liabilities, less current portion	2,465,810	2,504,404
Long-term debt to related parties	4,216,566	4,216,566
Postretirement benefit liability - health and life, less current portion	2,701,077	2,713,585
Other long-term liabilities	934,834	807,190
Total Long-Term Liabilities	24,240,556	23,708,891
Total Liabilities	62,855,486	59,078,831
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) 3,736,006 shares issued and outstanding as of April 4, 2021 and January 3, 2021	3,736	3,736
Additional paid-in capital	35,290,590	35,290,590
Accumulated deficit	(28,515,083)	(28,734,670)
Accumulated other comprehensive loss	(1,215,147)	(1,271,321)
Total Stockholders' Equity	6,644,921	6,369,160
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 69,500,407	$ 65,447,991

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 04, 2021	Jan. 03, 2021
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	3,736,006	3,736,006
Common Stock, shares outstanding	3,736,006	3,736,006

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Revenues [Abstract]
NET SALES	$ 21,896,001	$ 21,140,124
COST OF GOODS SOLD	18,658,664	17,309,542
Gross Profit	3,237,337	3,830,582
OPERATING EXPENSES:
Selling	898,712	992,447
General and administrative	1,579,027	1,603,717
Research and development	327,458	348,402
OPERATING EXPENSES	2,805,197	2,944,566
Operating Income	432,140	886,016
OTHER INCOME (EXPENSE):
Interest expense	(403,746)	(467,483)
Funding from Paycheck Protection Program	838,864
Other income (expense)	206,304	(190,889)
Net Other Income (Expense)	641,422	(658,372)
INCOME BEFORE TAX PROVISION	1,073,562	227,644
TAX PROVISION (BENEFIT)	37,561	(52,630)
NET INCOME	1,036,001	280,274
Preferred stock dividend	(816,414)	(792,835)
NET INCOME (LOSS) ALLOCABLE TO COMMON SHAREHOLDERS	$ 219,587	$ (512,561)
INCOME (LOSS) PER COMMON SHARE:
Basic and Diluted	$ 0.06	$ (0.14)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic and Diluted	3,736,006	3,736,006

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
COMPREHENSIVE LOSS
NET INCOME	$ 1,036,001	$ 280,274
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustment	56,174	(438,577)
OTHER COMPREHENSIVE INCOME (LOSS)	56,174	(438,577)
COMPREHENSIVE INCOME (LOSS)	1,092,175	(158,303)
Preferred stock dividend	(816,414)	(792,835)
COMPREHENSIVE INCOME (LOSS) TO COMMON SHAREHOLDERS	$ 275,761	$ (951,138)

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 Loss [Member]	Total
Balance at Dec. 29, 2019	$ 617,571	$ 463,179	$ 75	$ 18,680	$ 35,275,646	$ (24,301,203)	$ (1,297,439)	$ 10,776,509
Balance, shares at Dec. 29, 2019	200,000	150,000	50	3,736,006
Net income						280,274		280,274
Other comprehensive income (loss)							(438,577)	(438,577)
Preferred stock dividend						(792,835)		(792,835)
Adjustment for reverse stock split				(14,944)	14,944
Balance at Apr. 05, 2020	$ 617,571	$ 463,179	$ 75	$ 3,736	35,290,590	(24,813,764)	(1,736,016)	9,825,371
Balance, shares at Apr. 05, 2020	200,000	150,000	50	3,736,006
Balance at Jan. 03, 2021	$ 617,571	$ 463,179	$ 75	$ 3,736	35,290,590	(28,734,670)	(1,271,321)	6,369,160
Balance, shares at Jan. 03, 2021	200,000	150,000	50	3,736,006
Net income						1,036,001		1,036,001
Other comprehensive income (loss)							56,174	56,174
Preferred stock dividend						(816,414)		(816,414)
Balance at Apr. 04, 2021	$ 617,571	$ 463,179	$ 75	$ 3,736	$ 35,290,590	$ (28,515,083)	$ (1,215,147)	$ 6,644,921
Balance, shares at Apr. 04, 2021	200,000	150,000	50	3,736,006

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,036,001	$ 280,274
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	619,375	594,416
Amortization of intangible assets	6,633	3,750
Loss on disposal of property and equipment	23,083	1,588
Funding from Paycheck Protection Program recognized as income	(838,864)
Deferred interest on loan from Main Street Lending Program	24,242
Noncash lease adjustment	24,060	22,319
Changes in assets and liabilities:
Accounts receivable	(3,048,143)	(232,480)
Inventories	(784,585)	(1,365,004)
Other current assets	(176,348)	242,258
Related party receivable	(29,366)	(4,224)
Other long-term assets	(70,991)	(4,510)
Accounts payable	1,032,380	2,191,699
Accrued expenses and other liabilities	280,844	490,565
Postretirement benefit liability - health and life	(12,508)	(5,724)
Other long-term liabilities	119,553	(50,195)
Cash (used in) provided by operating activities	(1,794,634)	2,164,732
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(202,778)	(458,353)
Payments on life insurance policies	(49,901)	(25,761)
Cash used in Investing Activities	(252,679)	(484,114)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in checks issued in excess of bank balance	(166,621)	(332,141)
Net advances (payments) on lines of credit	782,781	(139,799)
Payments on long-term debt	(314,631)	(335,116)
Proceeds from issuance of long-term debt - Paycheck Protection Program	2,000,000
Payments on finance lease liabilities	(72,812)	(149,417)
Proceeds from related party obligations		200,000
Payments on related party obligations	(34,302)	(555,626)
Cash provided by (used in) financing activities	2,194,415	(1,312,099)
Net Change in Cash and Cash equivalents	147,102	368,519
Cash and Cash equivalents - beginning of Period	1,656,882	513,588
Effects of currency translation on cash and cash equivalents	16,520	(40,824)
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 1,820,504	$ 841,283

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 04, 2021
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	1. Basis of Presentation and Summary of Significant Accounting Policies Uniroyal Global Engineered Products, Inc. (the “Company,” “Uniroyal Global,” “we,” or “us”) owns all of the ownership interests in Uniroyal Engineered Products, LLC (“Uniroyal”), a U.S. manufacturer of textured coatings, and its holding company, UEP Holdings, LLC (“UEPH”), 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. 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 the Company’s financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. Uniroyal Global filed audited consolidated financial statements as of and for the fiscal years ended January 3, 2021 and December 29, 2019 which included all information and notes necessary for such complete presentation in conjunction with its 2020 Annual Report on Form 10-K. The results of operations for the interim period ended April 4, 2021 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 3, 2021, which are contained in the Company’s 2020 Annual Report on Form 10-K. The Company and its subsidiaries use a 52/53-week fiscal year ending on the Sunday nearest to December 31. The current year ending January 2, 2022 is a 52-week year whereas the prior year ended January 3, 2021 was a 53-week year. The Company’s U.K. subsidiaries use the calendar year end of December 31. The activity of the U.K. subsidiaries that occurs on the days that do not coincide with the Company’s year-end is not material. The three months ended April 4, 2021 was a 13-week period and the three months ended April 5, 2020 was a 14-week period. 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 April 4, 2021 and the results of operations, comprehensive income (loss) and cash flows for the interim periods ended April 4, 2021 and April 5, 2020. 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 4 – “Foreign Currency Translation” for additional discussion. For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. Significant Accounting Policies For a discussion of Uniroyal Global’s significant accounting policies, refer to Note 1 – “Basis of Presentation and Summary of Significant Accounting Policies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021. Coronavirus (“COVID-19”) Demand for Uniroyal Global’s products continues to improve since the initial impact of COVID-19 on the global economy, which began for the Company in the latter part of March 2020, and as businesses move closer to resuming normal activities. However, COVID-19 is a continually evolving situation and the Company cannot predict the long-term impact the coronavirus will have on the economy or the Company’s business. The impact could have a material adverse effect on the Company’s financial position, results of operations and cash flows, which may require the Company to obtain additional financing. The Company continues to pursue supplementary cash flow opportunities to provide further liquidity, as described below. In March 2021, the Company’s U.S. operations received $2.0 million in funds from One Community Bank through the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security Act (“the CARES Act”). The loan matures in March 2026 and bears an interest rate of 1.0%. The loan may be prepaid at any time prior to maturity with no prepayment penalties. All or a portion of the loan may be forgiven by the SBA for costs the Company incurs for payroll, rent, utilities and all other allowable expenses during the 24-week period that began March 1, 2021. The Company intends to use all proceeds from the loan to maintain payroll and make payments for lease, utility and other allowable expenses. As a result, management believes that the Company will meet the PPP eligibility criteria for forgiveness and has concluded that the loan represents, in substance, a government grant that is expected to be forgiven. As such, in accordance with International Accounting Standards (“IAS”) 20, “Accounting for Government Grants and Disclosure of Government Assistance,” the Company recognized $838,864 as grant income, which is included as a component of net other income (expense) in the consolidated statement of operations for the three months ended April 4, 2021. As of April 4, 2021, the remaining balance of the loan ($1,161,136), which was included in long-term debt, less current portion in the accompanying consolidated balance sheet, is expected to be recognized as forgiven debt during the second quarter of 2021. Additionally, quarterly dividend payments have been deferred each quarter beginning with the dividends that were accrued for the three months ended December 29, 2019 through the dividends that were accrued for the three months ended April 4, 2021. As of April 4, 2021 and January 3, 2021, accrued dividends of $4,775,094 and $4,019,905, respectively, were included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. Legal Proceedings On October 1, 2020, the Health and Safety Executive (“HSE”), the government agency responsible for the enforcement of health and safety law in the U.K., charged our U.K. subsidiary, Uniroyal Global Limited, with an offense under the Health and Safety at Work etc. Act 1974 arising from an August 2019 incident in which an employee was injured in the course of his employment. The Company fully cooperated with the HSE investigation and negotiated a plea based on legal advice provided to it. Based on this legal advice, the Company believed that £150,000 ($193,000) was a reasonable estimate of the fine to be imposed and, accordingly, recorded an accrual for this charge in 2020, which was included in accrued expenses and other liabilities in the accompanying consolidated balance sheets as of April 4, 2021 and January 3, 2021. In April 2021, a fine of £120,000 ($165,500) was imposed on the Company related to this matter. The Company has until October 2022 to pay the fine in full. In addition, a fee of £5,463 ($7,533) to reimburse the HSE for legal expenses was paid in May 2021.

Noncash Transactions and Supple

Noncash Transactions and Supplemental Disclosure of Cash Flow Information	3 Months Ended
	Apr. 04, 2021
Supplemental Cash Flow Elements [Abstract]
Noncash Transactions and Supplemental Disclosure of Cash Flow Information	2. Noncash Transactions and Supplemental Disclosure of Cash Flow Information The following is supplemental disclosure of cash paid for the three months ended : April 4, 2021 April 5, 2020 Interest $ 397,515 $ 530,762

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Apr. 04, 2021
Fair Value Of Financial Instruments
Fair Value of Financial Instruments	3. 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, accounts receivable, 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 currency exchange contracts are based upon observable market transactions of spot and forward rates. For the three months ended April 4, 2021, 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. 04, 2021
Foreign Currency Translation [Abstract]
Foreign Currency Translation	4. 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	3 Months Ended
	Apr. 04, 2021
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories consist of the following: April 4, 2021 January 3, 2021 Raw materials $ 6,382,342 $ 5,193,919 Work-in-process 4,794,986 4,281,035 Finished goods 9,866,950 10,594,088 21,044,278 20,069,042 Less: Allowance for inventory obsolescence (2,238,165 ) (2,116,192 ) Total Inventories, net $ 18,806,113 $ 17,952,850

Other Long-term Assets

Other Long-term Assets	3 Months Ended
	Apr. 04, 2021
Other Assets, Noncurrent [Abstract]
Other Long-term Assets	6. Other Long-term Assets Other long-term assets consist of the following: April 4, 2021 January 3, 2021 Deferred tax asset, net $ 4,154,675 $ 4,072,184 Other 646,821 607,806 Total Other Long-term Assets $ 4,801,496 $ 4,679,990

Other Long-term Liabilities

Other Long-term Liabilities	3 Months Ended
	Apr. 04, 2021
Other Liabilities, Noncurrent [Abstract]
Other Long-term Liabilities	7. Other Long-term Liabilities Other long-term liabilities consist of the following: April 4, 2021 January 3, 2021 Deferred tax liability $ 928,780 $ 801,136 Other 6,054 6,054 Total Other Long-term Liabilities $ 934,834 $ 807,190

Lines of Credit

Lines of Credit	3 Months Ended
	Apr. 04, 2021
Line of Credit Facility [Abstract]
Lines of Credit	8. 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 April 4, 2021. The outstanding balance on the Uniroyal Line of Credit was $10,349,999 and $9,204,572 as of April 4, 2021 and January 3, 2021, respectively. The Company has classified the outstanding balance on this line of credit within current liabilities in the accompanying consolidated balance sheets. Based upon eligible accounts receivable, inventories and equipment at April 4, 2021, the Uniroyal Line of Credit provided additional availability of approximately $1.1 million and, combined with its total cash balance of $1,512,208, Uniroyal had liquidity of approximately $2.6 million as of April 4, 2021. The Company’s UGL subsidiary has available a £10,500,000 (approximately $14.5 million) revolving line of credit financing agreement with Lloyds Bank Commercial Finance Limited (“UGL 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 April 4, 2021. The outstanding balance on the UGL Line of Credit was £6,005,518 and £6,268,526 ($8,279,922 and $8,556,011) as of April 4, 2021 and January 3, 2021, respectively. The Company has classified the outstanding balance on this line of credit within current liabilities in the accompanying consolidated balance sheets. Based upon eligible accounts receivable and inventories at April 4, 2021, the UGL Line of Credit provided additional availability of approximately $1.4 million and, combined with its total cash balance of $285,505, UGL had liquidity of approximately $1.7 million as of April 4, 2021.

Long-term Debt

Long-term Debt	3 Months Ended
	Apr. 04, 2021
Long-term Debt, by Current and Noncurrent [Abstract]
Long-term Debt	9. Long-term Debt Long-term debt consists of the following: Interest Rate April 4, 2021 January 3, 2021 Notes Payable Wells Fargo Capital Finance, LLC Prime $ 680,769 $ 785,501 Lloyds Bank Commercial Finance Limited 4.43% 43,447 51,905 Lloyds Bank Commercial Finance Limited 4.87% 134,477 156,422 Automotive lenders 0.0% 3,301,719 3,268,664 Wells Fargo Capital Finance, LLC LIBOR+3.00% 2,456,595 2,432,353 One Community Bank 1.00% 1,161,136 - 7,778,143 6,694,845 Equipment Financing Obligations Kennet Equipment Leasing Limited 10.90% 5,751 23,960 Regents Capital Corporation 6.20%-7.24% 595,829 678,329 Lloyds Bank Commercial Finance Limited 3.95% 1,311,396 1,373,929 1,912,976 2,076,218 Total 9,691,119 8,771,063 Less: Current portion (1,774,366 ) (1,432,301 ) Long-term Portion $ 7,916,753 $ 7,338,762 During the first quarter of 2021, the Company received $2.0 million in loans from One Community Bank through the Paycheck Protection Program. See Note 1 for additional discussion.

Related Party Obligations

Related Party Obligations	3 Months Ended
	Apr. 04, 2021
Related Party Obligations
Related Party Obligations	10. Related Party Obligations Long-term debt to related parties consists of the following: Interest Rate April 4, 2021 January 3, 2021 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 0.00% 1,225,911 1,225,911 Long-term debt to related parties $ 4,216,566 $ 4,216,566 The above notes were issued to the Company’s majority shareholder. The first three notes above were amended on March 26, 2021 to change the maturity date to January 15, 2023. No other terms of the notes were changed. The Company has finance leases under which it leases its main U.S. manufacturing facility and certain other property from a related party lessor entity that is owned by the Company’s majority shareholder. These related party finance leases expire at various dates from October 2023 through October 2033. The Company has security deposits aggregating $267,500 held by the lessor entity. There were no new right-of-use assets obtained in exchange for related party finance lease obligations for the three months ended April 4, 2021 and April 5, 2020. The components of lease expense for the related party finance leases for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Finance lease expense: Amortization of right-of-use assets $ 41,794 $ 41,794 Interest on lease liabilities 103,299 105,972 Total finance lease expense $ 145,093 $ 147,766 Cash paid for amounts included in the measurement of related party finance lease liabilities for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Operating cash flows from finance leases $ 103,299 $ 105,972 Financing cash flows from finance leases $ 34,302 $ 30,626 Supplemental balance sheet and other information regarding related party finance leases are as follows: April 4, 2021 January 3, 2021 Finance leases: Property and equipment, net $ 1,998,887 $ 2,040,681 Current maturities of finance lease liabilities $ 153,658 $ 149,366 Finance lease liabilities, less current portion 2,465,810 2,504,404 Total finance lease liabilities $ 2,619,468 $ 2,653,770 Weighted average remaining lease term 11.0 years 11.2 years Weighted average discount rate 16.81% 16.77% Maturities of related party finance lease liabilities as of April 4, 2021 are as follows: Totals Due in one year or less $ 559,885 Due after one year through two years 555,816 Due after two years through three years 523,777 Due after three years through four years 469,141 Due after four years through five years 473,329 Thereafter 3,472,475 Total lease payments 6,054,423 Less: Interest (3,434,955 ) Total related party finance lease liabilities $ 2,619,468

Leases

Leases	3 Months Ended
	Apr. 04, 2021
Capital Leases
Leases	11. Leases The Company has operating leases for equipment and office facilities and finance leases for equipment. These leases expire at various dates from April 2021 through March 2039. Operating leases are included in operating lease right-of-use assets, accrued expenses and other liabilities, and operating lease liabilities in the accompanying consolidated balance sheets. Finance leases are included in property and equipment, current maturities of finance lease liabilities, and finance lease liabilities, less current portion in the accompanying consolidated balance sheets. There were no new right-of-use assets obtained in exchange for lease obligations for the three months ended April 4, 2021 and April 5, 2020. The components of lease expense for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Operating lease expense $ 253,945 $ 250,921 Finance lease expense: Amortization of right-of-use assets $ 24,982 $ 55,395 Interest on lease liabilities 5,267 9,404 Total finance lease expense $ 30,249 $ 64,799 Cash paid for amounts included in the measurement of lease liabilities for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Operating cash flows from operating leases $ 292,219 $ 239,232 Operating cash flows from finance leases $ 5,267 $ 9,404 Financing cash flows from finance leases $ 72,812 $ 149,417 Supplemental balance sheet and other information related to operating leases are as follows: April 4, 2021 January 3, 2021 Operating leases: Operating lease right-of-use assets, net $ 6,144,689 $ 6,242,736 Accrued expenses and other liabilities $ 431,405 $ 440,386 Operating lease liabilities, less current portion 5,829,177 5,893,268 Total operating lease liabilities $ 6,260,582 $ 6,333,654 Weighted average remaining lease term 15.7 years 15.7 years Weighted average discount rate 7.29% 7.26% Supplemental balance sheet and other information related to finance leases are as follows: April 4, 2021 January 3, 2021 Finance leases: Property and equipment, net $ 1,054,291 $ 1,084,394 Current maturities of finance lease liabilities $ 243,327 $ 257,298 Finance lease liabilities, less current portion 176,339 235,116 Total finance lease liabilities $ 419,666 $ 492,414 Weighted average remaining lease term 1.7 years 1.8 years Weighted average discount rate 4.44 % 4.56 % Maturities of operating and finance lease liabilities as of April 4, 2021 are as follows: Operating Leases Finance Leases Due in one year or less $ 872,533 $ 256,870 Due after one year through two years 835,141 167,532 Due after two years through three years 615,644 12,504 Due after three years through four years 537,491 261 Due after four years through five years 537,491 - Thereafter 7,760,302 - Total lease payments 11,158,602 437,167 Less: Interest (4,898,020 ) (17,501 ) Total $ 6,260,582 $ 419,666

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Apr. 04, 2021
AOCI Attributable to Parent [Abstract]
Accumulated Other Comprehensive Loss	12. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss were as follows: Minimum Foreign Currency Total Balance at December 29, 2019 $ 5,694 $ (1,303,133 ) $ (1,297,439 ) Other comprehensive loss - (438,577 ) (438,577 ) Balance at April 5, 2020 $ 5,694 $ (1,741,710 ) $ (1,736,016 ) Balance at January 3, 2021 $ (154,662 ) $ (1,116,659 ) $ (1,271,321 ) Other comprehensive income - 56,174 56,174 Balance at April 4, 2021 $ (154,662 ) $ (1,060,485 ) $ (1,215,147 )

Recent Accounting Standards

Recent Accounting Standards	3 Months Ended
	Apr. 04, 2021
Related Party Obligations Schedule Of Current Portions Details
Recent Accounting Standards	13. Recent Accounting Standards On December 18, 2019, the Financial Accounting Standards Board issued a new standard, ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This new guidance simplifies the accounting for income taxes by removing certain exceptions such as the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income/gain from other items; and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The new guidance also simplifies the accounting for income taxes under certain circumstances such as requiring that an entity recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of a business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted this standard for fiscal year 2021 and management has determined that the adoption of this standard for fiscal year 2021 did not have a significant effect on the Company’s consolidated financial position, results of operations and cash flows.

Income (Loss) per Common Share

Income (Loss) per Common Share	3 Months Ended
	Apr. 04, 2021
INCOME (LOSS) PER COMMON SHARE:
Income (Loss) per Common Share	14. Income (Loss) per Common Share The calculation of diluted earnings per share for the three months ended April 4, 2021 excluded options (as provided under the Company’s 2015 Stock Option Plan) to purchase 139,300 shares of common stock because the options’ exercise price of $14.02 per share was greater than the average market price of the common shares. Due to the net loss allocable to common shareholders for the three months ended April 5, 2020, the calculations of basic and diluted loss per share were the same since including options to purchase shares of the Company’s common stock in the calculation of diluted loss per share would have been anti-dilutive. However, if diluted earnings per share had been reported for the three months ended April 5, 2020, the calculation would have excluded options to purchase 151,800 shares of common stock because the options’ weighted average exercise price of $14.02 per share was greater than the average market price of the common shares.

Revenue

Revenue	3 Months Ended
	Apr. 04, 2021
Revenue Recognition and Deferred Revenue [Abstract]
Revenue	15. 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. The following table sets forth revenue disaggregated by the Company’s automotive and industrial sectors Three Months Ended April 4, 2021 April 5, 2020 Revenue by sector: Automotive $ 14,022,402 $ 13,298,059 Industrial 7,873,599 7,842,065 Total Revenue $ 21,896,001 $ 21,140,124 The following table sets forth revenue disaggregated by the geographic locations of the Company’s customers Three Months Ended April 4, 2021 April 5, 2020 Revenue by customer location: North America $ 10,166,297 $ 10,748,197 Europe 10,303,440 8,994,499 Asia 1,281,196 1,181,859 Other 145,068 215,569 Total Revenue $ 21,896,001 $ 21,140,124

Subsequent Events

Subsequent Events	3 Months Ended
	Apr. 04, 2021
Subsequent Events [Abstract]
Subsequent Events	16. 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 April 4, 2021 consolidated financial statements. Subsequent to April 4, 2021, as previously discussed, a fine of £120,000 ($165,500) was imposed on the Company related to the HSE investigation. The Company has until October 2022 to pay the fine in full. In addition, a fee of £5,463 ($7,533) to reimburse the HSE for legal expenses was paid in May 2021.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 04, 2021
Accounting Policies [Abstract]
Basis of Presentation	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 the Company’s financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. Uniroyal Global filed audited consolidated financial statements as of and for the fiscal years ended January 3, 2021 and December 29, 2019 which included all information and notes necessary for such complete presentation in conjunction with its 2020 Annual Report on Form 10-K. The results of operations for the interim period ended April 4, 2021 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 3, 2021, which are contained in the Company’s 2020 Annual Report on Form 10-K. The Company and its subsidiaries use a 52/53-week fiscal year ending on the Sunday nearest to December 31. The current year ending January 2, 2022 is a 52-week year whereas the prior year ended January 3, 2021 was a 53-week year. The Company’s U.K. subsidiaries use the calendar year end of December 31. The activity of the U.K. subsidiaries that occurs on the days that do not coincide with the Company’s year-end is not material. The three months ended April 4, 2021 was a 13-week period and the three months ended April 5, 2020 was a 14-week period. 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 April 4, 2021 and the results of operations, comprehensive income (loss) and cash flows for the interim periods ended April 4, 2021 and April 5, 2020. 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 4 – “Foreign Currency Translation” for additional discussion. For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation.
Significant Accounting Policies	Significant Accounting Policies For a discussion of Uniroyal Global’s significant accounting policies, refer to Note 1 – “Basis of Presentation and Summary of Significant Accounting Policies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021.
Coronavirus (COVID-19)	Coronavirus (“COVID-19”) Demand for Uniroyal Global’s products continues to improve since the initial impact of COVID-19 on the global economy, which began for the Company in the latter part of March 2020, and as businesses move closer to resuming normal activities. However, COVID-19 is a continually evolving situation and the Company cannot predict the long-term impact the coronavirus will have on the economy or the Company’s business. The impact could have a material adverse effect on the Company’s financial position, results of operations and cash flows, which may require the Company to obtain additional financing. The Company continues to pursue supplementary cash flow opportunities to provide further liquidity, as described below. In March 2021, the Company’s U.S. operations received $2.0 million in funds from One Community Bank through the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security Act (“the CARES Act”). The loan matures in March 2026 and bears an interest rate of 1.0%. The loan may be prepaid at any time prior to maturity with no prepayment penalties. All or a portion of the loan may be forgiven by the SBA for costs the Company incurs for payroll, rent, utilities and all other allowable expenses during the 24-week period that began March 1, 2021. The Company intends to use all proceeds from the loan to maintain payroll and make payments for lease, utility and other allowable expenses. As a result, management believes that the Company will meet the PPP eligibility criteria for forgiveness and has concluded that the loan represents, in substance, a government grant that is expected to be forgiven. As such, in accordance with International Accounting Standards (“IAS”) 20, “Accounting for Government Grants and Disclosure of Government Assistance,” the Company recognized $838,864 as grant income, which is included as a component of net other income (expense) in the consolidated statement of operations for the three months ended April 4, 2021. As of April 4, 2021, the remaining balance of the loan ($1,161,136), which was included in long-term debt, less current portion in the accompanying consolidated balance sheet, is expected to be recognized as forgiven debt during the second quarter of 2021. Additionally, quarterly dividend payments have been deferred each quarter beginning with the dividends that were accrued for the three months ended December 29, 2019 through the dividends that were accrued for the three months ended April 4, 2021. As of April 4, 2021 and January 3, 2021, accrued dividends of $4,775,094 and $4,019,905, respectively, were included in accrued expenses and other liabilities in the accompanying consolidated balance sheets.
Legal Proceedings	Legal Proceedings On October 1, 2020, the Health and Safety Executive (“HSE”), the government agency responsible for the enforcement of health and safety law in the U.K., charged our U.K. subsidiary, Uniroyal Global Limited, with an offense under the Health and Safety at Work etc. Act 1974 arising from an August 2019 incident in which an employee was injured in the course of his employment. The Company fully cooperated with the HSE investigation and negotiated a plea based on legal advice provided to it. Based on this legal advice, the Company believed that £150,000 ($193,000) was a reasonable estimate of the fine to be imposed and, accordingly, recorded an accrual for this charge in 2020, which was included in accrued expenses and other liabilities in the accompanying consolidated balance sheets as of April 4, 2021 and January 3, 2021. In April 2021, a fine of £120,000 ($165,500) was imposed on the Company related to this matter. The Company has until October 2022 to pay the fine in full. In addition, a fee of £5,463 ($7,533) to reimburse the HSE for legal expenses was paid in May 2021.

Noncash Transactions and Supp_2

Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Tables)	3 Months Ended
	Apr. 04, 2021
Supplemental Cash Flow Elements [Abstract]
Schedule of Noncash Transactions and Supplemental Disclosure of Cash Flow Information Text Block	The following is supplemental disclosure of cash paid for the three months ended : April 4, 2021 April 5, 2020 Interest $ 397,515 $ 530,762

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 04, 2021
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: April 4, 2021 January 3, 2021 Raw materials $ 6,382,342 $ 5,193,919 Work-in-process 4,794,986 4,281,035 Finished goods 9,866,950 10,594,088 21,044,278 20,069,042 Less: Allowance for inventory obsolescence (2,238,165 ) (2,116,192 ) Total Inventories, net $ 18,806,113 $ 17,952,850

Other Long-term Assets (Tables)

Other Long-term Assets (Tables)	3 Months Ended
	Apr. 04, 2021
Other Assets, Noncurrent [Abstract]
Schedule of Other Long-term Assets	Other long-term assets consist of the following: April 4, 2021 January 3, 2021 Deferred tax asset, net $ 4,154,675 $ 4,072,184 Other 646,821 607,806 Total Other Long-term Assets $ 4,801,496 $ 4,679,990

Other Long-term Liabilities (Ta

Other Long-term Liabilities (Tables)	3 Months Ended
	Apr. 04, 2021
Other Liabilities, Noncurrent [Abstract]
Schedule of Other Long-term Liabilities	Other long-term liabilities consist of the following: April 4, 2021 January 3, 2021 Deferred tax liability $ 928,780 $ 801,136 Other 6,054 6,054 Total Other Long-term Liabilities $ 934,834 $ 807,190

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Apr. 04, 2021
Long-term Debt, by Current and Noncurrent [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following: Interest Rate April 4, 2021 January 3, 2021 Notes Payable Wells Fargo Capital Finance, LLC Prime $ 680,769 $ 785,501 Lloyds Bank Commercial Finance Limited 4.43% 43,447 51,905 Lloyds Bank Commercial Finance Limited 4.87% 134,477 156,422 Automotive lenders 0.0% 3,301,719 3,268,664 Wells Fargo Capital Finance, LLC LIBOR+3.00% 2,456,595 2,432,353 One Community Bank 1.00% 1,161,136 - 7,778,143 6,694,845 Equipment Financing Obligations Kennet Equipment Leasing Limited 10.90% 5,751 23,960 Regents Capital Corporation 6.20%-7.24% 595,829 678,329 Lloyds Bank Commercial Finance Limited 3.95% 1,311,396 1,373,929 1,912,976 2,076,218 Total 9,691,119 8,771,063 Less: Current portion (1,774,366 ) (1,432,301 ) Long-term Portion $ 7,916,753 $ 7,338,762

Related Party Obligations (Tabl

Related Party Obligations (Tables)	3 Months Ended
	Apr. 04, 2021
Schedule of Components of Lease Expense	The components of lease expense for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Operating lease expense $ 253,945 $ 250,921 Finance lease expense: Amortization of right-of-use assets $ 24,982 $ 55,395 Interest on lease liabilities 5,267 9,404 Total finance lease expense $ 30,249 $ 64,799
Related party [Member]
Schedule of Long-term Debt to Related Parties	Long-term debt to related parties consists of the following: Interest Rate April 4, 2021 January 3, 2021 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 0.00% 1,225,911 1,225,911 Long-term debt to related parties $ 4,216,566 $ 4,216,566
Schedule of Components of Lease Expense	The components of lease expense for the related party finance leases for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Finance lease expense: Amortization of right-of-use assets $ 41,794 $ 41,794 Interest on lease liabilities 103,299 105,972 Total finance lease expense $ 145,093 $ 147,766
Schedule of Measurement of Related Party Finance Lease Liabilities	Cash paid for amounts included in the measurement of related party finance lease liabilities for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Operating cash flows from finance leases $ 103,299 $ 105,972 Financing cash flows from finance leases $ 34,302 $ 30,626
Schedule of Supplemental Information Related to Finance Leases	Supplemental balance sheet and other information regarding related party finance leases are as follows: April 4, 2021 January 3, 2021 Finance leases: Property and equipment, net $ 1,998,887 $ 2,040,681 Current maturities of finance lease liabilities $ 153,658 $ 149,366 Finance lease liabilities, less current portion 2,465,810 2,504,404 Total finance lease liabilities $ 2,619,468 $ 2,653,770 Weighted average remaining lease term 11.0 years 11.2 years Weighted average discount rate 16.81% 16.77%
Schedule of Maturities of Related Party Finance Lease Liabilities	Maturities of related party finance lease liabilities as of April 4, 2021 are as follows: Totals Due in one year or less $ 559,885 Due after one year through two years 555,816 Due after two years through three years 523,777 Due after three years through four years 469,141 Due after four years through five years 473,329 Thereafter 3,472,475 Total lease payments 6,054,423 Less: Interest (3,434,955 ) Total related party finance lease liabilities $ 2,619,468

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 04, 2021
Leases [Abstract]
Schedule of Operating Lease Expense	The components of lease expense for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Operating lease expense $ 253,945 $ 250,921 Finance lease expense: Amortization of right-of-use assets $ 24,982 $ 55,395 Interest on lease liabilities 5,267 9,404 Total finance lease expense $ 30,249 $ 64,799
Schedule of Cash Paid for Lease Liabilities	Cash paid for amounts included in the measurement of lease liabilities for the three months ended April 4, 2021 and April 5, 2020 are as follows: Three Months Ended April 4, 2021 April 5, 2020 Operating cash flows from operating leases $ 292,219 $ 239,232 Operating cash flows from finance leases $ 5,267 $ 9,404 Financing cash flows from finance leases $ 72,812 $ 149,417
Schedule of Supplemental Information Related to Operating Leases	Supplemental balance sheet and other information related to operating leases are as follows: April 4, 2021 January 3, 2021 Operating leases: Operating lease right-of-use assets, net $ 6,144,689 $ 6,242,736 Accrued expenses and other liabilities $ 431,405 $ 440,386 Operating lease liabilities, less current portion 5,829,177 5,893,268 Total operating lease liabilities $ 6,260,582 $ 6,333,654 Weighted average remaining lease term 15.7 years 15.7 years Weighted average discount rate 7.29% 7.26%
Schedule of Supplemental Information Related to Finance Leases	Supplemental balance sheet and other information related to finance leases are as follows: April 4, 2021 January 3, 2021 Finance leases: Property and equipment, net $ 1,054,291 $ 1,084,394 Current maturities of finance lease liabilities $ 243,327 $ 257,298 Finance lease liabilities, less current portion 176,339 235,116 Total finance lease liabilities $ 419,666 $ 492,414 Weighted average remaining lease term 1.7 years 1.8 years Weighted average discount rate 4.44 % 4.56 %
Schedule of Maturities of Lease Liabilities	Maturities of operating and finance lease liabilities as of April 4, 2021 are as follows: Operating Leases Finance Leases Due in one year or less $ 872,533 $ 256,870 Due after one year through two years 835,141 167,532 Due after two years through three years 615,644 12,504 Due after three years through four years 537,491 261 Due after four years through five years 537,491 - Thereafter 7,760,302 - Total lease payments 11,158,602 437,167 Less: Interest (4,898,020 ) (17,501 ) Total $ 6,260,582 $ 419,666

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Apr. 04, 2021
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 29, 2019 $ 5,694 $ (1,303,133 ) $ (1,297,439 ) Other comprehensive loss - (438,577 ) (438,577 ) Balance at April 5, 2020 $ 5,694 $ (1,741,710 ) $ (1,736,016 ) Balance at January 3, 2021 $ (154,662 ) $ (1,116,659 ) $ (1,271,321 ) Other comprehensive income - 56,174 56,174 Balance at April 4, 2021 $ (154,662 ) $ (1,060,485 ) $ (1,215,147 )

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Apr. 04, 2021
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 April 4, 2021 April 5, 2020 Revenue by sector: Automotive $ 14,022,402 $ 13,298,059 Industrial 7,873,599 7,842,065 Total Revenue $ 21,896,001 $ 21,140,124 The following table sets forth revenue disaggregated by the geographic locations of the Company’s customers Three Months Ended April 4, 2021 April 5, 2020 Revenue by customer location: North America $ 10,166,297 $ 10,748,197 Europe 10,303,440 8,994,499 Asia 1,281,196 1,181,859 Other 145,068 215,569 Total Revenue $ 21,896,001 $ 21,140,124

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details)	1 Months Ended		3 Months Ended
	May 31, 2021USD ($)	May 31, 2021GBP (£)	Apr. 04, 2021USD ($)	Apr. 05, 2020USD ($)	Apr. 04, 2021GBP (£)	Mar. 31, 2021USD ($)	Jan. 03, 2021USD ($)	Oct. 01, 2020USD ($)	Oct. 01, 2020GBP (£)
Debt Instrument [Line Items]
Accrued dividends			$ 4,775,094				$ 4,019,905
Gain from debt forgiveness			838,864
Remaining loan balance to be forgiven			(1,161,136)
Health and Safety Executive [Member]
Debt Instrument [Line Items]
Estimated amount of fine to be imposed under legal advice								$ 193,000
Fees imposed			165,500
Health and Safety Executive [Member] | British Pound Sterling [Member]
Debt Instrument [Line Items]
Estimated amount of fine to be imposed under legal advice | £									£ 150,000
Fees imposed | £					£ 120,000
HSE for legal expenses [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Fees paid	$ 7,533
HSE for legal expenses [Member] | British Pound Sterling [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Fees paid | £		£ 5,463
Paycheck Protection Program Loan [Member]
Debt Instrument [Line Items]
Proceeds from loan			$ 2,000,000
COVID-19 [Member] | Paycheck Protection Program Loan [Member]
Debt Instrument [Line Items]
Proceeds from loan						$ 2,000,000
Interest rate						1.00%

Noncash Transactions and Supp_3

Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Supplemental Cash Flow Elements [Abstract]
Interest	$ 397,515	$ 530,762

Inventories (Schedule of Invent

Inventories (Schedule of Inventories) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 6,382,342	$ 5,193,919
Work-in-process	4,794,986	4,281,035
Finished goods	9,866,950	10,594,088
Inventories gross	21,044,278	20,069,042
Less: Allowance for inventory obsolescence	(2,238,165)	(2,116,192)
Total Inventories, net	$ 18,806,113	$ 17,952,850

Other Long-term Assets (Schedul

Other Long-term Assets (Schedule of Other Long-term Assets) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Other Assets, Noncurrent [Abstract]
Deferred tax asset, net	$ 4,154,675	$ 4,072,184
Other	646,821	607,806
Total Other Long-term Assets	$ 4,801,496	$ 4,679,990

Other Long-term Liabilities (Sc

Other Long-term Liabilities (Schedule of Other Long-term Liabilities) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Other Liabilities, Noncurrent [Abstract]
Deferred tax liability	$ 928,780	$ 801,136
Other	6,054	6,054
Total Other Long-term Liabilities	$ 934,834	$ 807,190

Lines of Credit (Details)

Lines of Credit (Details)	3 Months Ended
	Apr. 04, 2021USD ($)	Apr. 04, 2021GBP (£)	Jan. 03, 2021USD ($)	Jan. 03, 2021GBP (£)
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	$ 10,349,999		$ 9,204,572
Line of credit amount additional availability	1,100,000
Line of credit with total cash balance	1,512,208
Line of credit liquidity amount	$ 2,600,000
Line of credit, maturity date	Jun. 15, 2023
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member]
Line of credit maximum amount	$ 14,500,000
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 (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	$ 8,279,922		$ 8,556,011
Line of credit amount additional availability	1,400,000
Line of credit with total cash balance	285,505
Line of credit liquidity amount	$ 1,700,000
Lloyds Bank Commercial Finance Limited [Member] | Wardle Storeys [Member] | British Pound Sterling [Member]
Line of credit maximum amount | £		£ 10,500,000
Line of credit amount outstanding | £		£ 6,005,518		£ 6,268,526
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 (Details)

Long-term Debt (Details)	Apr. 04, 2021USD ($)
Paycheck Protection Program Loan [Member]
Debt Instrument [Line Items]
Proceeds from loan	$ 2,000,000

Long-term Debt (Schedule of Lon

Long-term Debt (Schedule of Long-term debt) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Debt Instrument [Line Items]
Long-term debt	$ 9,691,119	$ 8,771,063
Less: Current portion	(1,774,366)	(1,432,301)
Long-Term Portion	7,916,753	7,338,762
Notes Payable [Member]
Debt Instrument [Line Items]
Long-term debt	7,778,143	6,694,845
Notes Payable [Member] | Wells Fargo Capital Finance, LLC [Member]
Debt Instrument [Line Items]
Long-term debt	680,769	785,501
Notes Payable [Member] | Lloyds Bank Commercial Finance Limited [Member]
Debt Instrument [Line Items]
Long-term debt	43,447	51,905
Notes Payable [Member] | Lloyds Bank Commercial Finance Limited [Member]
Debt Instrument [Line Items]
Long-term debt	134,477	156,422
Notes Payable [Member] | Automotive lenders [Member]
Debt Instrument [Line Items]
Long-term debt	3,301,719	3,268,664
Notes Payable [Member] | Wells Fargo Capital Finance, LLC [Member]
Debt Instrument [Line Items]
Long-term debt	2,456,595	2,432,353
Notes Payable [Member] | One Community Bank [Member]
Debt Instrument [Line Items]
Long-term debt	1,161,136
Equipment Financing Obligations [Member]
Debt Instrument [Line Items]
Long-term debt	1,912,976	2,076,218
Equipment Financing Obligations [Member] | Lloyds Bank Commercial Finance Limited [Member]
Debt Instrument [Line Items]
Long-term debt	1,311,396	1,373,929
Equipment Financing Obligations [Member] | Kennet Equipment Leasing Limited [Member]
Debt Instrument [Line Items]
Long-term debt	5,751	23,960
Equipment Financing Obligations [Member] | Regents Capital Corporation [Member]
Debt Instrument [Line Items]
Long-term debt	$ 595,829	$ 678,329

Long-term Debt (Schedule of L_2

Long-term Debt (Schedule of Long-term debt Interest Rate) (Details)	3 Months Ended
	Apr. 04, 2021
Notes Payable [Member] | Wells Fargo Capital Finance, LLC [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate basis	Prime
Notes Payable [Member] | Lloyds Bank Commercial Finance Limited [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	4.43%
Notes Payable [Member] | Lloyds Bank Commercial Finance Limited [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	4.87%
Notes Payable [Member] | Automotive lenders [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	0.00%
Notes Payable [Member] | Wells Fargo Capital Finance, LLC [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate above basis	3.00%
Long-term debt, interest rate basis	LIBOR
Notes Payable [Member] | One Community Bank [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	1.00%
Equipment Financing Obligations [Member] | Lloyds Bank Commercial Finance Limited [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	3.95%
Equipment Financing Obligations [Member] | Kennet Equipment Leasing Limited [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	10.90%
Equipment Financing Obligations [Member] | Regents Capital Corporation [Member] | Minimum [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	6.20%
Equipment Financing Obligations [Member] | Regents Capital Corporation [Member] | Maximum [Member]
Debt Instrument [Line Items]
Long term debt, interest rate	7.24%

Related Party Obligations (Narr

Related Party Obligations (Narrative) (Details)	3 Months Ended
	Apr. 04, 2021USD ($)
Company's Majority Owners [Member]
Related party finance lease, security deposit	$ 267,500
Promissory notes [Member]
Long-term debt, maturity date	Jan. 15, 2023

Related Party Obligations (Long

Related Party Obligations (Long-term debt to related parties) (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Jan. 03, 2021
Total Long-term Debt to Related Parties	$ 4,216,566	$ 4,216,566
Senior subordinated promissory note [Member]
Total Long-term Debt to Related Parties	$ 2,000,000	2,000,000
Long-term debt, interest rate	9.25%
Senior secured promissory note [Member]
Total Long-term Debt to Related Parties	$ 765,655	765,655
Long-term debt, interest rate	10.00%
Subordinated secured promissory note [Member]
Total Long-term Debt to Related Parties	$ 225,000	225,000
Long-term debt, interest rate	8.00%
Subordinated secured promissory note 2 [Member]
Total Long-term Debt to Related Parties	$ 1,225,911	$ 1,225,911
Long-term debt, interest rate	0.00%

Related Party Obligations (Sche

Related Party Obligations (Schedule of Components of Lease Expense) (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Finance lease expense:
Amortization of right-of-use assets	$ 41,794	$ 41,794
Interest on lease liabilities	103,299	105,972
Total finance lease expense	$ 145,093	$ 147,766

Related Party Obligations (Meas

Related Party Obligations (Measurement of Related Party Finance Lease Liabilities) (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Principal requirements on all related party obligations
Operating cash flows from finance leases	$ 103,299	$ 105,972
Financing cash flows from finance leases	$ 34,302	$ 30,626

Related Party Obligations (Sc_2

Related Party Obligations (Schedule of Supplemental Information Related to Finance Leases) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Finance leases:
Property and equipment, net	$ 18,149,788	$ 18,491,122
Current maturities of finance lease liabilities	243,327	257,298
Finance lease liabilities, less current portion	176,339	235,116
Total finance lease liabilities	$ 419,666	$ 492,414
Weighted average remaining lease term	1 year 8 months 12 days	1 year 9 months 18 days
Weighted average discount rate	4.44%	4.56%
Related party [Member]
Finance leases:
Property and equipment, net	$ 1,998,887	$ 2,040,681
Current maturities of finance lease liabilities	153,658	149,366
Finance lease liabilities, less current portion	2,465,810	2,504,404
Total finance lease liabilities	$ 2,619,468	$ 2,653,770
Weighted average remaining lease term	11 years	11 years 2 months 12 days
Weighted average discount rate	16.81%	16.77%

Related Party Obligations (Matu

Related Party Obligations (Maturities of Related Party Finance Lease Liabilities) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Due in one year or less	$ 256,870
Due after one year through two years	167,532
Due after two years through three years	12,504
Due after three years through four years	261
Due after four years through five years
Thereafter
Total lease payments	437,167
Total related party finance lease liabilities	419,666	$ 492,414
Related party [Member]
Due in one year or less	559,885
Due after one year through two years	555,816
Due after two years through three years	523,777
Due after three years through four years	469,141
Due after four years through five years	473,329
Thereafter	3,472,475
Total lease payments	6,054,423
Less: Interest	(3,434,955)
Total related party finance lease liabilities	$ 2,619,468	$ 2,653,770

Leases (Schedule of Operating L

Leases (Schedule of Operating Lease Expense) (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Lessee Disclosure [Abstract]
Operating lease expense	$ 253,945	$ 250,921
Finance lease expense:
Amortization of right-of-use assets	24,982	55,395
Interest on lease liabilities	5,267	9,404
Total finance lease expense	$ 30,249	$ 64,799

Leases (Schedule of Cash Paid f

Leases (Schedule of Cash Paid for Lease Liabilities) (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Lessee Disclosure [Abstract]
Operating cash flows from operating leases	$ 292,219	$ 239,232
Operating cash flows from finance leases	5,267	9,404
Financing cash flows from finance leases	$ 72,812	$ 149,417

Leases (Schedule of Supplementa

Leases (Schedule of Supplemental Information Related to Operating Leases) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Operating leases:
Operating lease right-of-use assets, net	$ 6,144,689	$ 6,242,736
Accrued expenses and other liabilities	431,405	440,386
Operating lease liabilities, less current portion	5,829,177	5,893,268
Total operating lease liabilities	$ 11,158,602	$ 6,333,654
Weighted average remaining lease term	15 years 8 months 12 days	15 years 8 months 12 days
Weighted average discount rate	7.29%	7.26%

Leases (Schedule of Supplemen_2

Leases (Schedule of Supplemental Information Related to Finance Leases) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Finance leases:
Property and equipment, net	$ 1,054,291	$ 1,084,394
Current maturities of finance lease liabilities	243,327	257,298
Finance lease liabilities, less current portion	176,339	235,116
Total finance lease liabilities	$ 419,666	$ 492,414
Weighted average remaining lease term	1 year 8 months 12 days	1 year 9 months 18 days
Weighted average discount rate	4.44%	4.56%

Leases (Schedule of Maturities

Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($)	Apr. 04, 2021	Jan. 03, 2021
Operating leases
Due in one year or less	$ 872,533
Due after one year through two years	835,141
Due after two years through three years	615,644
Due after three years through four years	537,491
Due after four years through five years	537,491
Thereafter	7,760,302
Total lease payments	11,158,602	$ 6,333,654
Less: Interest	(4,898,020)
Total operating lease liabilities	6,260,582
Finance Leases
Due in one year or less	256,870
Due after one year through two years	167,532
Due after two years through three years	12,504
Due after three years through four years	261
Due after four years through five years
Thereafter
Total lease payments	437,167
Less: Interest	(17,501)
Total finance lease liabilities	$ 419,666	$ 492,414

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ (1,271,321)	$ (1,297,439)
Other comprehensive income (loss)	56,174	(438,577)
Balance	(1,215,147)	(1,736,016)
Minimum Benefit Liability Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(154,662)	5,694
Other comprehensive income (loss)
Balance	(154,662)	5,694
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(1,116,659)	(1,303,133)
Other comprehensive income (loss)	56,174	(438,577)
Balance	$ (1,060,485)	$ (1,741,710)

Income (Loss) per Common Share

Income (Loss) per Common Share (Narrative) (Details) - Stock Option [Member] - $ / shares	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Weighted average effect of dilutive securities	139,300	151,800
Option exercise price	$ 14.02	$ 14.02

Revenue (Schedule of Disaggrega

Revenue (Schedule of Disaggregated Revenue) (Details) - USD ($)	3 Months Ended
	Apr. 04, 2021	Apr. 05, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 21,896,001	$ 21,140,124
Automotive Sector [Member]
Disaggregation of Revenue [Line Items]
Total revenue	14,022,402	13,298,059
Industrial Sector [Member]
Disaggregation of Revenue [Line Items]
Total revenue	7,873,599	7,842,065
North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	10,166,297	10,748,197
Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue	10,303,440	8,994,499
Asia [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,281,196	1,181,859
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 145,068	$ 215,569

Subsequent Events (Details)

Subsequent Events (Details)	1 Months Ended
	May 31, 2021USD ($)	May 31, 2021GBP (£)	Apr. 04, 2021USD ($)	Apr. 04, 2021GBP (£)
Health and Safety Executive [Member]
Subsequent Event [Line Items]
Fees imposed | $			$ 165,500
Health and Safety Executive [Member] | British Pound Sterling [Member]
Subsequent Event [Line Items]
Fees imposed | £				£ 120,000
HSE for legal expenses [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Fees paid | $	$ 7,533
HSE for legal expenses [Member] | British Pound Sterling [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Fees paid | £		£ 5,463