Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 30, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Summer Infant, Inc. | |
Entity Central Index Key | 1,314,772 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 18,769,015 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 929 | $ 681 |
Trade receivables, net of allowance for doubtful accounts | 36,040 | 36,640 |
Inventory, net | 26,726 | 34,035 |
Prepaid and other current assets | 1,255 | 950 |
TOTAL CURRENT ASSETS | 64,950 | 72,306 |
Property and equipment, net | 9,696 | 9,640 |
Other intangible assets, net | 13,669 | 14,046 |
Deferred tax assets, net | 1,915 | 1,935 |
Other assets | 101 | 103 |
TOTAL ASSETS | 90,331 | 98,030 |
CURRENT LIABILITIES | ||
Accounts payable | 24,558 | 24,642 |
Accrued expenses | 9,428 | 9,818 |
Current portion of long-term debt | 656 | 3,250 |
TOTAL CURRENT LIABILITIES | 34,642 | 37,710 |
Long-term debt, less current portion and unamortized debt issuance costs | 41,647 | 43,772 |
Other liabilities | 2,875 | 2,906 |
TOTAL LIABILITIES | 79,164 | 84,388 |
STOCKHOLDERS' EQUITY | ||
Preferred Stock, $0.0001 par value, 1,000,000 authorized, none issued or outstanding at June 30, 2018 and December 30, 2017, respectively | ||
Common Stock $0.0001 par value, authorized, issued and outstanding of 49,000,000, 19,040,664, and 18,769,015 at June 30, 2018 and 49,000,000, 18,901,386, and 18,629,737 at December 30, 2017, respectively | 2 | 2 |
Treasury Stock at cost (271,649 shares at June 30, 2018 and December 30, 2017) | (1,283) | (1,283) |
Additional paid-in capital | 77,182 | 76,848 |
Accumulated deficit | (62,043) | (59,634) |
Accumulated other comprehensive loss | (2,691) | (2,291) |
TOTAL STOCKHOLDERS' EQUITY | 11,167 | 13,642 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 90,331 | $ 98,030 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 30, 2017 |
Condensed Consolidated Balance Sheets | ||
Preferred Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, authorized | 1,000,000 | 1,000,000 |
Preferred Stock, issued | 0 | 0 |
Preferred Stock, outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, authorized | 49,000,000 | 49,000,000 |
Common Stock, issued | 19,040,664 | 18,901,386 |
Common Stock, outstanding | 18,769,015 | 18,629,737 |
Treasury Stock at cost, shares | 271,649 | 271,649 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Consolidated Statements of Operations | ||||
Net sales | $ 47,678 | $ 52,579 | $ 89,733 | $ 99,919 |
Cost of goods sold | 32,284 | 35,263 | 60,747 | 67,314 |
Gross profit | 15,394 | 17,316 | 28,986 | 32,605 |
General & administrative expenses | 9,376 | 10,252 | 21,964 | 19,524 |
Selling expenses | 3,091 | 4,220 | 5,769 | 8,131 |
Depreciation and amortization | 1,074 | 1,041 | 2,075 | 2,097 |
Operating income (loss) | 1,853 | 1,803 | (822) | 2,853 |
Interest expense, net | 1,409 | 734 | 2,182 | 1,458 |
Income (loss) before provision (benefit) for income taxes | 444 | 1,069 | (3,004) | 1,395 |
Provision (benefit) for income taxes | 146 | 528 | (595) | 684 |
Net income (loss) | $ 298 | $ 541 | $ (2,409) | $ 711 |
Net income (loss) per share: | ||||
BASIC (in dollars per share) | $ 0.02 | $ 0.03 | $ (0.13) | $ 0.04 |
DILUTED (in dollars per share) | $ 0.02 | $ 0.03 | $ (0.13) | $ 0.04 |
Weighted average shares outstanding: | ||||
BASIC (in shares) | 18,731,553 | 18,554,523 | 18,690,711 | 18,532,412 |
DILUTED (in shares) | 18,735,858 | 18,600,949 | 18,690,711 | 18,599,899 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Condensed Consolidated Statements of Comprehensive (Loss) Income | ||||
Net income (loss) | $ 298 | $ 541 | $ (2,409) | $ 711 |
Other comprehensive (loss) income: | ||||
Changes in foreign currency translation adjustments | (348) | 243 | (400) | 333 |
Comprehensive (loss) income | $ (50) | $ 784 | $ (2,809) | $ 1,044 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (2,409) | $ 711 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,068 | 2,129 |
Stock-based compensation | 314 | 274 |
Write off of unamortized deferred financing costs | 518 | |
Provision for allowance for doubtful accounts | 2,269 | 29 |
Changes in assets and liabilities: | ||
(Increase) in trade receivables | (1,972) | (2,304) |
Decrease (increase) in inventory | 6,953 | (1,273) |
(Increase) decrease in prepaids and other assets | (317) | 753 |
(Decrease) increase in accounts payable and accrued expenses | (273) | 2,443 |
Net cash provided by operating activities | 7,151 | 2,762 |
Cash flows from investing activities: | ||
Acquisitions of property and equipment | (1,751) | (1,287) |
Net cash used in investing activities | (1,751) | (1,287) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon exercise of stock options | 19 | |
Repayment of Prior Term Loan Facility | (5,000) | (1,000) |
Repayment of Prior FILO | (1,250) | (1,250) |
Payment of financing fees and expenses | (1,958) | |
Proceeds from New Term Loan Facility | 17,500 | |
Net (repayment) borrowings on revolving facilities | (14,529) | 1,081 |
Net cash used in provided by financing activities | (5,218) | (1,169) |
Effect of exchange rate changes on cash and cash equivalents | 66 | 109 |
Net increase in cash and cash equivalents | 248 | 415 |
Cash and cash equivalents, beginning of period | 681 | 999 |
Cash and cash equivalents, end of period | 929 | 1,414 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,411 | $ 1,281 |
Cash paid for income taxes | $ 4 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Company designs, markets and distributes branded juvenile health, safety and wellness products that are sold globally to large national retailers as well as independent retailers, primarily in North America. The Company currently markets its products in several product categories including monitoring, safety, nursery, baby gear, and feeding products. Most products are sold under our core brand names of Summer Infant®, SwaddleMe®, and Born Free®. When used herein, the terms the “Company,” “we,” “us,” and “our” mean Summer Infant, Inc. and its consolidated subsidiaries. Basis of Presentation and Principles of Consolidation The accompanying interim, condensed consolidated financial statements of the Company are unaudited, but in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. The results of operations for interim periods are not necessarily indicative of results to be expected for the entire fiscal year or any other period. The balance sheet at December 30, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes for the year ended December 30, 2017 included in its Annual Report on Form 10-K filed with the SEC on February 20, 2018. It is the Company’s policy to prepare its financial statements on the accrual basis of accounting in conformity with GAAP. The interim condensed consolidated financial statements include the accounts of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. All dollar amounts included in the Notes to Condensed Consolidated Financial Statements are in thousands of U.S. dollars, except share and per share amounts. Revenue Recognition As of December 31, 2017, the Company adopted FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) . The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The Company reviewed all contracts at the date of initial application and elected to use the modified retrospective transition method, where the cumulative effect of the initial application is recognized as an adjustment to opening retained earnings at December 31, 2017. Therefore, comparative prior periods have not been adjusted and continue to be reported under FASB ASC Topic 605, Revenue Recognition, (“ASC 605”). The adoption of the new revenue recognition guidance was immaterial to the Company’s condensed consolidated statements of operations, comprehensive (loss) income, balance sheet, and cash flows as of and for the six months ending June 30, 2018. Refer to Note 2 for additional information regarding the Company’s adoption of ASC 606. The Company’s principal activities from which it generates its revenue is product sales. The Company has one reportable segment of business. Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring control over a product to a customer when product delivery occurs. Consideration is typically paid approximately 60 days from the time control is transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in selling costs. A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for the Company is transfer of juvenile products to its customers. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. A transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimation into the determination of the transaction price. The Company conducts its business with customers through valid purchase or sales orders each of which is considered a separate contract because individual orders are not interdependent on one another. Product transaction prices on a purchase or sale order are discrete and stand-alone. Purchase or sales orders may be issued under either a customer master service agreement or a reseller allowance agreement. Purchase or sales orders, master service agreements, and reseller allowance agreements which are specific and unique to each customers, may include product price discounts, markdown allowances, return allowances, and/or volume rebates which reduce the consideration due from customers. Variable consideration is estimated using the most likely amount method, which is based on our historical experience as well as current information such as sales forecasts. Contracts may also include cooperative advertising arrangements where the Company allows a discount from invoiced product amounts in exchange for customer purchased advertising that features the Company’s products. These allowances are generally based upon product purchases or specific advertising campaigns. Such allowances are accrued when the related revenue is recognized. These cooperative advertising arrangements provide a distinct benefit and fair value and are accounted for as direct selling expenses. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts of revenues, expenses, assets, liabilities and related disclosures. These estimates are based on management’s best knowledge as of the date the financial statements are published of current events and actions the Company may undertake in the future. Accordingly, actual results could differ from those estimates. Allowance for Doubtful Accounts Trade receivables are carried at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts based on historical bad debts, factors related to specific customers’ ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Amounts are considered to be uncollectable based upon historical experience and management’s evaluation of outstanding accounts receivable. Changes in the allowance for doubtful accounts are as follows: For the June 30, 2018 July 1, 2017 Allowance for doubtful accounts, beginning of period $ $ Charges to costs and expenses Allowance for doubtful accounts, end of period $ $ Inventory Valuation Inventory is comprised mostly of finished goods and some component parts and is stated at the lower of cost using the first-in, first-out (“FIFO”) method, or net realizable value. The Company regularly reviews slow-moving and excess inventories, and writes down inventories to net realizable value if the expected net proceeds from the disposals of excess inventory are less than the carrying cost of the merchandise. Income Taxes Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred income tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carry-forwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, that it is more likely than not that such benefits will be realized. The net deferred tax assets and liabilities are presented as noncurrent. The Company follows the appropriate guidance relative to uncertain tax positions. This standard provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-not in order for those tax positions to be recognized in the financial statements. Net Income (Loss) Per Share Basic earnings (loss) per share for the Company is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share includes the dilutive impact of outstanding stock options and unvested restricted shares. Translation of Foreign Currencies All assets and liabilities of the Company’s foreign subsidiaries, each of whose functional currency is in its local currency, are translated into U.S. dollars at the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been translated at average rates prevailing during each respective quarter. Resulting translation adjustments are made to a separate component of stockholders’ equity within accumulated other comprehensive (loss) income. Foreign exchange transaction gains and losses are included in the accompanying interim, condensed consolidated statement of operations. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“new lease standard”). The new lease standard will supersede the current guidance for lease accounting and will require lessees to recognize right-to-use assets and related lease liabilities on the balance sheet for leases with lease terms greater than twelve months. The objective is to increase transparency and comparability among organizations regarding lease accounting and disclosing key information about leasing arrangements. In July 2018, FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The effective date for both standards for the Company will be the first quarter of fiscal year 2019, with early adoption permitted. The Company is evaluating the impact the adoption of this new standard will have on its consolidated financial statements and believes it is following an appropriate timeline to allow for proper recognition, presentation and disclosure upon adoption effective the beginning of fiscal year 2019. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE | |
REVENUE | 2. REVENUE Disaggregation of Revenue The Company’s revenue is primarily from distinct fixed-price product sales in the juvenile product market, to similar customers and channels utilizing similar types of contracts that are short term in nature (less than one year). The Company does not sell service agreements or goods over a period of time and does not sell or utilize customer financing arrangements or time-and-material contracts. The following is a table that presents net sales by geographical area: For the three For the six months United States $ $ All Other Net Sales $ $ All Other consists of Canada, Europe, South America, Mexico, Asia, and the Middle East. Contract Balances The Company does not have any contract assets such as work-in-process or contract liabilities such as customer advances. All trade receivables on the Company’s condensed consolidated balance sheet are from contracts with customers. Contract Costs Costs incurred to obtain a contract are capitalized unless short term in nature. As a practical expedient, costs to obtain a contract that are short term in nature are expensed as incurred. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2018 | |
DEBT | |
DEBT | 3. DEBT Credit Facilities On June 28, 2018, the Company and its subsidiary, Summer Infant (USA), Inc. (“Summer USA”), as borrowers, entered into (i) a Second Amended and Restated Loan and Security Agreement, providing for a $60,000 asset-based revolving credit facility and (ii) a Term Loan and Security Agreement, providing for a $17,500 term loan. Bank of America Credit Facility Amended and Restated Credit Facility . On June 28, 2018, the Company and Summer USA, as borrowers, entered into a Second Amended and Restated Loan and Security Agreement with Bank of America, N.A., as agent, the financial institutions party to the agreement from time to time as lenders, and certain subsidiaries of the Company as guarantors (the “Restated BofA Agreement”). The Restated BofA Agreement replaced the Company’s prior credit facility with Bank of America, and provides for a $60,000, asset-based revolving credit facility, with a $5,000 letter of credit sub-line facility. The total borrowing capacity is based on a borrowing base, which is defined as 85% of eligible receivables plus the lesser of (i) 70% of the value or (ii) 85% of the net orderly liquidation value (NOLV) of eligible inventory, less applicable reserves. The scheduled maturity date of loans under the Restated BofA Agreement is June 28, 2023 (subject to customary early termination provisions). All obligations under the Restated BofA Agreement are secured by substantially all the assets of the Company, including a first priority lien on accounts receivable and inventory and a junior lien on certain assets subject to the term loan lender’s first priority lien as described below. Summer Infant Canada Limited and Summer Infant Europe Limited, subsidiaries of the Company, are guarantors under the Restated BofA Agreement. Proceeds from the loans were used to satisfy existing debt, pay fees and transaction expenses associated with the closing of the Restated BofA Agreement and may be used to pay obligations under the Restated BofA Agreement, and for lawful corporate purposes, including working capital. Loans under the Restated BofA Agreement bear interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins based on average quarterly availability under the Restated BofA Agreement. Interest payments are due monthly, payable in arrears. The Company is also required to pay an annual non-use fee on unused amounts, as well as other customary fees as are set forth in the Restated BofA Agreement. The Restated BofA Agreement contains customary affirmative and negative covenants. Among other restrictions, the Company is restricted in its ability to incur additional debt, make acquisitions or investments, dispose of assets, or make distributions unless in each case certain conditions are satisfied. In addition, if availability falls below a specified amount, then the Company must maintain a fixed charge coverage ratio at the end of each fiscal month of at least 1.0 to 1.0 for the twelve-month period then ended. The Restated BofA Agreement also contains customary events of default, including a cross default with the term loan and the occurrence of a change of control. In the event of a default, all of the obligations of the Company and its subsidiaries under the Restated BofA Agreement may be declared immediately due and payable. For certain events of default relating to insolvency and receivership, all outstanding obligations become due and payable. As of June 30, 2018, under the Restated BofA Agreement, the rate on base-rate loans was 6.0% and the rate on LIBOR-rate loans was 4.125%. The amount outstanding on the Restated BofA Agreement at June 30, 2018 was $27,436. Total borrowing capacity at June 30, 2018 was $40,725 and permitted borrowing availability was $13,289. Prior Credit Facility . Prior to entering into the Restated BofA Agreement, the Company and Summer USA were parties to an amended and restated loan and security agreement with Bank of America, N.A., as agent, which provided for an asset-based credit facility (the “Prior Credit Facility”). The Prior Credit Facility consisted of a $60,000 asset-based revolving credit facility, with a $10,000 letter of credit sub-line facility (the “Revolving Facility”), a $5,000 “first in last out” (FILO) revolving credit facility (the “FILO Facility”) and a $10,000 term loan facility (the “Term Loan Facility”). The total borrowing capacity under the Revolving Facility was based on a borrowing base, generally defined as 85% of the value of eligible accounts plus the lesser of (i) 70% of the value of eligible inventory or (ii) 85% of the net orderly liquidation value of eligible inventory, less reserves. The total borrowing capacity under the FILO Facility was based on a borrowing base, generally defined as a specified percentage of the value of eligible accounts that steps down over time, plus a specified percentage of the value of eligible inventory that steps down over time. As noted above, all obligations under the Revolving Facility and Term Loan Facility were repaid in connection with the Restated BofA Agreement and Term Loan Agreement described below. Loans under the FILO Facility terminated April 21, 2018. Borrowings under the Revolving Facility generally accrued interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins based on average quarterly availability and ranging between 2.0% and 2.5% on LIBOR borrowings and 0.5% and 1.0% on base rate borrowings. Loans under the FILO Facility and Term Loan Facility accrued interest, at the Company’s option, at a base rate or at LIBOR, plus a margin of 4.25% on LIBOR borrowings and 2.75% on base rate borrowings. From April 24, 2018 through May 21, 2018, interest on the Revolving Facility accrue an additional 2.0% on the then applicable interest rate. The refinancing transaction was evaluated, to determine the proper accounting treatment for the transaction. Accordingly, debt extinguishment accounting was used to account for the prepayment of the prior term loan facility and to prepay two members of the lender group for the prior credit facility with Bank of America that did not continue in the amended and restated credit facility, resulting in the write off of $518 in remaining unamortized deferred financing costs for the six months ended June 30, 2018. Debt modification accounting was used for the remaining member of the lender group for the prior credit facility, resulting in remaining unamortized deferred financing costs of $675 and the new financing costs of $1,958 to be capitalized and amortized over the life of the new debt. New Term Loan Agreement On June 28, 2018, the Company and Summer USA, as borrowers, entered into a Term Loan and Security Agreement (the “Term Loan Agreement”) with Pathlight Capital LLC, as agent, each lender from time to time a party to the Term Loan Agreement, and certain subsidiaries of the Company as guarantors, providing for a $17,500 term loan (the “Term Loan”). Proceeds from the Term Loan were used to satisfy existing debt, pay fees and transaction expenses associated with the closing of the Term Loan and may be used to pay obligations under the Term Loan Agreement, and for lawful corporate purposes, including working capital. The Term Loan is secured by a lien on certain assets of the Company, including a first priority lien on intellectual property, machinery and equipment, and a pledge of (i) 100% of the ownership interests of domestic subsidiaries and (ii) 65% of the ownership interests in certain foreign subsidiaries of the Company, and a junior lien on certain assets subject to the liens under the Restated BofA Agreement described above. The Term Loan matures on June 28, 2023. Summer Infant Canada Limited and Summer Infant Europe Limited, subsidiaries of the Company, are guarantors under the Term Loan Agreement. The principal of the Term Loan will be repaid, on a quarterly basis, in installments of $219, with the first installment to be paid on December 1, 2018, until paid in full on termination. The Term Loan bears interest at an annual rate equal to LIBOR, plus 9.0%. Interest payments are due monthly, in arrears. Obligations under the Term Loan Agreement are also subject to restrictions on prepayment and a prepayment penalty if the Term Loan is repaid prior to the third anniversary of the closing of the Term Loan. The Term Loan Agreement contains customary affirmative and negative covenants that are substantially the same as the Restated BofA Agreement. In addition, if availability falls below a specified amount, then the Company must maintain a fixed charge coverage ratio at the end of each fiscal month of at least 1.0 to 1.0 for the twelve-month period then ended. The Term Loan Agreement also contains events of default, including a cross default and the occurrence of a change of control. In the event of a default, all of the obligations of the Company and its subsidiaries under the Term Loan Agreement may be declared immediately due and payable. For certain events of default relating to insolvency and receivership, all outstanding obligations become due and payable. As of June 30, 2018, the interest rate on the Term Loan was 11.34%. The amount outstanding on the Term Loan at June 30, 2018 was $17,500. Aggregate maturities of bank debt related to the Restated BofA Agreement and the Term Loan Agreement: Fiscal Year ending: 2018 2019 2020 2021 2022 and thereafter $ Total $ Unamortized debt issuance costs were $2,633 at June 30, 2018 and $1,127 at December 30, 2017, and are presented as a direct deduction of long-term debt on the consolidated balance sheets. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 4. INTANGIBLE ASSETS Intangible assets consisted of the following: June 30, December 30, 2018 2017 Brand names $ $ Patents and licenses Customer relationships Other intangibles Less: Accumulated amortization ) ) Intangible assets, net $ $ The amortization period for the majority of the intangible assets ranges from 5 to 20 years for those assets that have an estimated life; certain of the assets have indefinite lives (brand names). Total of intangibles not subject to amortization amounted to $8,400 as of June 30, 2018 and December 30, 2017. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 5. COMMITMENTS AND CONTINGENCIES Litigation The Company is a party to various routine claims, litigation and administrative complaints incidental to its business, including claims involving product liability, employee matters and other general liability claims, most of which are covered by insurance. We are not aware of any such proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, results of operations or financial condition. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 6. SHARE BASED COMPENSATION The Company is currently authorized to issue up to 1,700,000 shares for equity awards under the Company’s 2012 Incentive Compensation Plan (as amended, “2012 Plan”). Periodically, the Company may also grant equity awards outside of its 2012 Plan as inducement grants for new hires. Under the 2012 Plan, awards may be granted to participants in the form of non-qualified stock options, incentive stock options, restricted stock, deferred stock, restricted stock units and other stock-based awards. Subject to the provisions of the plans, awards may be granted to employees, officers, directors, advisors and consultants who are deemed to have rendered or are able to render significant services to the Company or its subsidiaries and who are deemed to have contributed or to have the potential to contribute to the Company’s success. The Company accounts for options under the fair value recognition standard. Share-based compensation expense for the three months ended June 30, 2018 and July 1, 2017 was $216 and $189, respectively, and share-based compensation expense for the six months ended June 30, 2018 and July 1, 2017 was $314 and $274, respectively. Share based compensation expense is included in general and administrative expenses. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the table below. The Company uses the simplified method to estimate the expected term of the options, but used an estimate for grants of “plain vanilla” stock options based on a formula prescribed by the Securities and Exchange Commission. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Share-based compensation expense recognized in the consolidated financial statements is based on awards that are ultimately expected to vest. As of June 30, 2018, there were 1,188,010 stock options outstanding and 356,766 unvested restricted shares outstanding. During the six months ended June 30, 2018, the Company granted 341,240 stock options and 168,000 shares of restricted stock, respectively. The following table summarizes the weighted average assumptions used for stock options granted during the six months ended June 30, 2018 and July 1, 2017. For the Six For the Six Expected life (in years) Risk-free interest rate % % Volatility % % Dividend yield % % Forfeiture rate % % As of June 30, 2018, there were 856,182 shares available to grant under the 2012 Plan. Restricted Stock Units On July 13, 2016, the Company granted 100,000 performance-based RSUs to its new Chief Executive Officer. The RSUs represent the right to receive shares of the Company’s common stock upon achievement of specified performance metrics, and only vest if such performance metrics are achieved for fiscal year 2017 and fiscal year 2018. The RSUs expire if the performance metrics are not achieved or if employment is terminated. The fair value of the RSUs will be recognized as they are earned and when it is probable that the performance conditions will be met. In 2017, 50,000 of the RSUs expired as the performance metrics for 2017 were not achieved. The Company has not recognized any compensation expense in 2018 related to this award as it is unlikely that performance metrics will be achieved. |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES | 6 Months Ended |
Jun. 30, 2018 | |
WEIGHTED AVERAGE COMMON SHARES | |
WEIGHTED AVERAGE COMMON SHARES | 7. WEIGHTED AVERAGE COMMON SHARES Basic and diluted earnings or loss per share (“EPS”) is based upon the weighted average number of common shares outstanding during the period. Diluted weighted average number of common shares outstanding also included common stock equivalents such as stock options and restricted shares. The Company does not include the anti-dilutive effect of common stock equivalents in the calculation of dilutive common shares outstanding. The computation of diluted common shares for the three months ended June 30, 2018 excluded 1,188,010 stock options and 321,000 shares of restricted stock outstanding. The computation of diluted common shares for the six months ended June 30, 2018 excluded 1,188,010 stock options and 356,766 shares of restricted stock outstanding. The computation of diluted common shares for the three months ended July 1, 2017 excluded 1,259,756 stock options and 239,930 shares of restricted stock outstanding. The computation of diluted common shares for the six months ended July 1, 2017 excluded 1,254,506 stock options and 239,930 shares of restricted stock outstanding. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 8. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing date of this Quarterly Report on Form 10-Q and determined that no subsequent events occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto. |
BASIS OF PRESENTATION AND SUM15
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Revenue Recognition | Revenue Recognition As of December 31, 2017, the Company adopted FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) . The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The Company reviewed all contracts at the date of initial application and elected to use the modified retrospective transition method, where the cumulative effect of the initial application is recognized as an adjustment to opening retained earnings at December 31, 2017. Therefore, comparative prior periods have not been adjusted and continue to be reported under FASB ASC Topic 605, Revenue Recognition, (“ASC 605”). The adoption of the new revenue recognition guidance was immaterial to the Company’s condensed consolidated statements of operations, comprehensive (loss) income, balance sheet, and cash flows as of and for the six months ending June 30, 2018. Refer to Note 2 for additional information regarding the Company’s adoption of ASC 606. The Company’s principal activities from which it generates its revenue is product sales. The Company has one reportable segment of business. Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring control over a product to a customer when product delivery occurs. Consideration is typically paid approximately 60 days from the time control is transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in selling costs. A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for the Company is transfer of juvenile products to its customers. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. A transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimation into the determination of the transaction price. The Company conducts its business with customers through valid purchase or sales orders each of which is considered a separate contract because individual orders are not interdependent on one another. Product transaction prices on a purchase or sale order are discrete and stand-alone. Purchase or sales orders may be issued under either a customer master service agreement or a reseller allowance agreement. Purchase or sales orders, master service agreements, and reseller allowance agreements which are specific and unique to each customers, may include product price discounts, markdown allowances, return allowances, and/or volume rebates which reduce the consideration due from customers. Variable consideration is estimated using the most likely amount method, which is based on our historical experience as well as current information such as sales forecasts. Contracts may also include cooperative advertising arrangements where the Company allows a discount from invoiced product amounts in exchange for customer purchased advertising that features the Company’s products. These allowances are generally based upon product purchases or specific advertising campaigns. Such allowances are accrued when the related revenue is recognized. These cooperative advertising arrangements provide a distinct benefit and fair value and are accounted for as direct selling expenses. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts of revenues, expenses, assets, liabilities and related disclosures. These estimates are based on management’s best knowledge as of the date the financial statements are published of current events and actions the Company may undertake in the future. Accordingly, actual results could differ from those estimates. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Trade receivables are carried at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts based on historical bad debts, factors related to specific customers’ ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Amounts are considered to be uncollectable based upon historical experience and management’s evaluation of outstanding accounts receivable. Changes in the allowance for doubtful accounts are as follows: For the June 30, 2018 July 1, 2017 Allowance for doubtful accounts, beginning of period $ $ Charges to costs and expenses Allowance for doubtful accounts, end of period $ $ |
Inventory Valuation | Inventory Valuation Inventory is comprised mostly of finished goods and some component parts and is stated at the lower of cost using the first-in, first-out (“FIFO”) method, or net realizable value. The Company regularly reviews slow-moving and excess inventories, and writes down inventories to net realizable value if the expected net proceeds from the disposals of excess inventory are less than the carrying cost of the merchandise. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred income tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carry-forwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, that it is more likely than not that such benefits will be realized. The net deferred tax assets and liabilities are presented as noncurrent. The Company follows the appropriate guidance relative to uncertain tax positions. This standard provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-not in order for those tax positions to be recognized in the financial statements. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic earnings (loss) per share for the Company is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share includes the dilutive impact of outstanding stock options and unvested restricted shares. |
Translation of Foreign Currencies | Translation of Foreign Currencies All assets and liabilities of the Company’s foreign subsidiaries, each of whose functional currency is in its local currency, are translated into U.S. dollars at the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been translated at average rates prevailing during each respective quarter. Resulting translation adjustments are made to a separate component of stockholders’ equity within accumulated other comprehensive (loss) income. Foreign exchange transaction gains and losses are included in the accompanying interim, condensed consolidated statement of operations. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“new lease standard”). The new lease standard will supersede the current guidance for lease accounting and will require lessees to recognize right-to-use assets and related lease liabilities on the balance sheet for leases with lease terms greater than twelve months. The objective is to increase transparency and comparability among organizations regarding lease accounting and disclosing key information about leasing arrangements. In July 2018, FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The effective date for both standards for the Company will be the first quarter of fiscal year 2019, with early adoption permitted. The Company is evaluating the impact the adoption of this new standard will have on its consolidated financial statements and believes it is following an appropriate timeline to allow for proper recognition, presentation and disclosure upon adoption effective the beginning of fiscal year 2019. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
BASIS OF PRESENTATION AND SUM16
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Changes in the allowance for doubtful accounts | For the June 30, 2018 July 1, 2017 Allowance for doubtful accounts, beginning of period $ $ Charges to costs and expenses Allowance for doubtful accounts, end of period $ $ |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE | |
Schedule of net sales by geographical area | For the three For the six months United States $ $ All Other Net Sales $ $ |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
DEBT | |
Schedule of aggregate maturities of bank debt | Fiscal Year ending: 2018 2019 2020 2021 2022 and thereafter $ Total $ |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | June 30, December 30, 2018 2017 Brand names $ $ Patents and licenses Customer relationships Other intangibles Less: Accumulated amortization ) ) Intangible assets, net $ $ |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
SHARE BASED COMPENSATION | |
Summary of weighted average assumptions used for stock options granted | For the Six For the Six Expected life (in years) Risk-free interest rate % % Volatility % % Dividend yield % % Forfeiture rate % % |
BASIS OF PRESENTATION AND SUM21
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) | 6 Months Ended |
Jun. 30, 2018segment | |
Revenue Recognition | |
Number of reportable segment | 1 |
Payment terms | 60 days |
BASIS OF PRESENTATION AND SUM22
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Changes in the allowance for doubtful accounts | ||
Allowance for doubtful accounts, beginning of period | $ 1,622 | $ 59 |
Charges to costs and expenses | 2,269 | 29 |
Allowance for doubtful accounts, end of period | $ 3,891 | $ 88 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Net sales by geographical area | ||||
Net sales | $ 47,678 | $ 52,579 | $ 89,733 | $ 99,919 |
United States | ||||
Net sales by geographical area | ||||
Net sales | 39,412 | 74,503 | ||
All Other | ||||
Net sales by geographical area | ||||
Net sales | $ 8,266 | $ 15,230 |
DEBT (Details)
DEBT (Details) $ in Thousands | Jun. 30, 2018USD ($) | Jun. 28, 2018USD ($) | May 21, 2018 | Jun. 30, 2018USD ($) | Dec. 30, 2017USD ($) |
Credit Facilities | |||||
Write off of unamortized deferred financing costs | $ 518 | ||||
Aggregate maturities of bank debt | |||||
2,018 | $ 219 | 219 | |||
2,019 | 875 | 875 | |||
2,020 | 875 | 875 | |||
2,021 | 875 | 875 | |||
2022 and thereafter | 42,092 | 42,092 | |||
Total | 44,936 | $ 44,936 | |||
Credit Facility | |||||
Credit Facilities | |||||
Number of most recent consecutive months used to measure fixed charge coverage ratio | 12 months | ||||
Unamortized debt issuance costs | 2,633 | $ 2,633 | $ 1,127 | ||
Write off of unamortized deferred financing costs | 518 | ||||
Credit Facility | Minimum | |||||
Credit Facilities | |||||
Fixed charge coverage ratio | 1 | ||||
Revolving Facility | |||||
Credit Facilities | |||||
Maximum amount of credit available | 60,000 | $ 60,000 | $ 60,000 | ||
Borrowing base as a percentage of eligible receivables | 85.00% | ||||
Borrowing base as a percentage of eligible inventory | 70.00% | ||||
Borrowing base as a percentage of net orderly liquidation value of eligible inventory and less reserves | 85.00% | ||||
Loan Amendment, additional interest rate | 2.00% | ||||
Unamortized debt issuance costs | $ 675 | $ 675 | |||
Revolving Facility | LIBOR | |||||
Credit Facilities | |||||
Interest rate basis | LIBOR | ||||
Revolving Facility | Base rate | |||||
Credit Facilities | |||||
Interest rate basis | base rate | ||||
Letter of Credit | |||||
Credit Facilities | |||||
Maximum amount of credit available | $ 10,000 | 10,000 | |||
FILO Facility | |||||
Credit Facilities | |||||
Maximum amount of credit available | 5,000 | 5,000 | |||
Term Loan Facility | |||||
Credit Facilities | |||||
Maximum amount of credit available | $ 10,000 | $ 17,500 | $ 10,000 | ||
Interest rate basis | LIBOR | ||||
Interest rate on borrowings | 11.34% | 11.34% | |||
Quarterly basis installment amount | $ 219 | ||||
Amount outstanding on credit facility | $ 17,500 | $ 17,500 | |||
Term Loan Facility | LIBOR | |||||
Credit Facilities | |||||
Applicable margin (as a percent) | 9.00% | ||||
Interest Rate Option One | Revolving Facility | LIBOR | Minimum | |||||
Credit Facilities | |||||
Applicable margin (as a percent) | 2.00% | ||||
Interest Rate Option One | Revolving Facility | LIBOR | Maximum | |||||
Credit Facilities | |||||
Applicable margin (as a percent) | 2.50% | ||||
Interest Rate Option One | Revolving Facility | Base rate | Minimum | |||||
Credit Facilities | |||||
Applicable margin (as a percent) | 0.50% | ||||
Interest Rate Option One | Revolving Facility | Base rate | Maximum | |||||
Credit Facilities | |||||
Applicable margin (as a percent) | 1.00% | ||||
Interest Rate Option Two | Term Loan Facility | LIBOR | |||||
Credit Facilities | |||||
Applicable margin (as a percent) | 4.25% | ||||
Interest Rate Option Two | Term Loan Facility | Base rate | |||||
Credit Facilities | |||||
Applicable margin (as a percent) | 2.75% | ||||
Restated Bank of America Agreement | Credit Facility | |||||
Credit Facilities | |||||
Amount outstanding on credit facility | $ 27,436 | $ 27,436 | |||
Borrowing capacity | 40,725 | 40,725 | |||
Borrowing availability | $ 13,289 | 13,289 | |||
Restated Bank of America Agreement | Credit Facility | LIBOR | |||||
Credit Facilities | |||||
Interest rate during the period | 4.125% | ||||
Restated Bank of America Agreement | Credit Facility | Base rate | |||||
Credit Facilities | |||||
Interest rate during the period | 6.00% | ||||
Term Loan and Security Agreement | Term Loan Facility | |||||
Credit Facilities | |||||
Unamortized debt issuance costs | $ 1,958 | $ 1,958 | |||
Percentage of ownership interests of domestic subsidiaries pledged | 100.00% | ||||
percentage of ownership interests of foreign subsidiaries pledged | 65.00% | ||||
Bank of America | Restated Bank of America Agreement | Letter of Credit | |||||
Credit Facilities | |||||
Maximum amount of credit available | $ 5,000 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 30, 2017 | |
Intangible assets | ||
Intangible assets, gross | $ 24,413 | $ 24,413 |
Less: accumulated amortization | (10,744) | (10,367) |
Intangible assets, net | 13,669 | 14,046 |
Intangibles not subject to amortization | $ 8,400 | 8,400 |
Minimum | ||
Intangible assets | ||
Amortization period of intangible assets | 5 years | |
Maximum | ||
Intangible assets | ||
Amortization period of intangible assets | 20 years | |
Patents and licenses | ||
Intangible assets | ||
Intangible assets, gross | $ 3,766 | 3,766 |
Customer relationships | ||
Intangible assets | ||
Intangible assets, gross | 6,946 | 6,946 |
Other intangibles | ||
Intangible assets | ||
Intangible assets, gross | 1,882 | 1,882 |
Brand names | ||
Intangible assets | ||
Intangible assets, gross | $ 11,819 | $ 11,819 |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of Plans and Stock Option Info (Details) - 2012 Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
SHARE BASED COMPENSATION | ||||
Number of shares authorized under the plan | 1,700,000 | 1,700,000 | ||
Shares available to grant | 856,182 | 856,182 | ||
Weighted average assumptions | ||||
Expected life (in years) | 4 years 10 months 24 days | 4 years 10 months 24 days | ||
Risk-free interest rate (as a percent) | 2.68% | 1.88% | ||
Volatility (as a percent) | 64.00% | 71.40% | ||
Dividend yield (as a percent) | 0.00% | 0.00% | ||
Forfeiture rate (as a percent) | 23.10% | 22.60% | ||
General and Administrative Expense | ||||
SHARE BASED COMPENSATION | ||||
Share-based compensation expense | $ 216 | $ 189 | $ 314 | $ 274 |
Stock Options | ||||
SHARE BASED COMPENSATION | ||||
Stock options outstanding (in shares) | 1,188,010 | 1,188,010 | ||
Stock options granted during the period (in shares) | 341,240 | |||
Restricted Stock Awards | ||||
SHARE BASED COMPENSATION | ||||
Unvested restricted shares outstanding | 356,766 | 356,766 | ||
Granted (in shares) | 168,000 |
SHARE BASED COMPENSATION - Rest
SHARE BASED COMPENSATION - Restricted Stock Units (Details) - Restricted Stock Units - Chief Executive Officer - shares | Jul. 13, 2016 | Dec. 30, 2017 |
SHARE BASED COMPENSATION | ||
Granted (in shares) | 100,000 | |
Expired shares | 50,000 |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Stock Options | ||||
WEIGHTED AVERAGE COMMON SHARES | ||||
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) | 1,188,010 | 1,259,756 | 1,188,010 | 1,254,506 |
Restricted Stock Awards | ||||
WEIGHTED AVERAGE COMMON SHARES | ||||
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) | 321,000 | 239,930 | 356,766 | 239,930 |