Summer Infant (SUMR) 10-Q 7 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 29, 2019	Aug. 05, 2019
Document and Entity Information
Entity Registrant Name	Summer Infant, Inc.
Document Type	10-Q
Document Period End Date	Jun. 29, 2019
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,926,704
Entity Central Index Key	0001314772
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 580	$ 721
Trade receivables, net of allowance for doubtful accounts	35,975	31,223
Inventory, net	32,599	36,066
Prepaid and other current assets	1,223	997
TOTAL CURRENT ASSETS	70,377	69,007
Property and equipment, net	9,621	9,685
Other intangible assets, net	13,044	13,300
Right to use assets, noncurrent	5,396
Deferred tax assets, net	2,138	2,127
Other assets	101	97
TOTAL ASSETS	100,677	94,216
CURRENT LIABILITIES
Accounts payable	24,679	28,120
Accrued expenses	7,745	8,939
Lease liabilities, current	2,316
Current portion of long-term debt	875	875
TOTAL CURRENT LIABILITIES	35,615	37,934
Long-term debt, less current portion and unamortized debt issuance costs	51,249	44,641
Lease liabilities, noncurrent	3,634
Other liabilities	2,166	2,371
TOTAL LIABILITIES	92,664	84,946
STOCKHOLDERS' EQUITY
Preferred Stock, $0.0001 par value, 1,000,000 authorized, none issued or outstanding at June 29, 2019 and December 29, 2018, respectively
Common Stock $0.0001 par value, authorized, issued and outstanding of 49,000,000, 19,198,353, and 18,926,704 at June 29, 2019 and 49,000,000, 19,092,251, and 18,820,602 at December 29, 2018, respectively	2	2
Treasury Stock at cost (271,649 shares at June 29, 2019 and December 29, 2018)	(1,283)	(1,283)
Additional paid-in capital	77,548	77,396
Accumulated deficit	(65,507)	(63,885)
Accumulated other comprehensive loss	(2,747)	(2,960)
TOTAL STOCKHOLDERS' EQUITY	8,013	9,270
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 100,677	$ 94,216

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 29, 2019	Dec. 29, 2018
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	19,198,353	19,092,251
Common Stock, outstanding	18,926,704	18,820,602
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. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Condensed Consolidated Statements of Operations
Net sales	$ 46,425	$ 47,678	$ 88,963	$ 89,733
Cost of goods sold	31,583	32,284	60,671	60,747
Gross profit	14,842	15,394	28,292	28,986
General & administrative expenses	8,523	9,376	17,902	21,964
Selling expense	4,031	3,091	7,384	5,769
Depreciation and amortization	952	1,074	1,889	2,075
Operating income (loss)	1,336	1,853	1,117	(822)
Interest expense, net	1,293	1,409	2,542	2,182
Income (loss) before provision (benefit) for income taxes	43	444	(1,425)	(3,004)
Provision (benefit) for income taxes	267	146	197	(595)
Net (loss) income	$ (224)	$ 298	$ (1,622)	$ (2,409)
Net (loss) income per share:
BASIC (in dollars per share)	$ (0.01)	$ 0.02	$ (0.09)	$ (0.13)
DILUTED (in dollars per share)	$ (0.01)	$ 0.02	$ (0.09)	$ (0.13)
Weighted average shares outstanding:
BASIC (in shares)	18,899,340	18,731,553	18,866,100	18,690,711
DILUTED (in shares)	18,899,340	18,735,858	18,866,100	18,690,711

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Condensed Consolidated Statements of Comprehensive Loss
Net (loss) income	$ (224)	$ 298	$ (1,622)	$ (2,409)
Other comprehensive income (loss):
Changes in foreign currency translation adjustments	48	(348)	213	(400)
Comprehensive net loss	$ (176)	$ (50)	$ (1,409)	$ (2,809)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (1,622)	$ (2,409)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,855	2,068
Stock-based compensation expense	152	314
Write off of unamortized deferred financing costs		518
Provision for allowance for doubtful accounts	34	2,269
Changes in assets and liabilities:
Increase in trade receivables	(4,553)	(1,972)
Decrease in inventory	3,725	6,953
Increase in right of use assets	(5,381)
Increase in lease liability	5,935
Increase in prepaids and other assets	(220)	(317)
Decrease in accounts payable and accrued expenses	(5,042)	(273)
Net cash (used in) provided by operating activities	(5,117)	7,151
Cash flows from investing activities:
Acquisitions of property and equipment	(1,416)	(1,751)
Acquisitions of other intangible assets	(114)
Net cash (used) in investing activities	(1,530)	(1,751)
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)
Repayment of Prior FILO		(1,250)
Payment of financing fees and expenses		(1,958)
Proceeds from New Term Loan Facility		17,500
Repayment of Term Loan Facility	(438)
Net borrowings (repayment) on revolving facilities	7,046	(14,529)
Net cash provided by (used in) financing activities	6,608	(5,218)
Effect of exchange rate changes on cash and cash equivalents	(102)	66
Net (decrease) increase in cash and cash equivalents	(141)	248
Cash and cash equivalents, beginning of period	721	681
Cash and cash equivalents, end of period	580	929
Supplemental disclosure of cash flow information:
Cash paid for interest	2,034	1,411
Cash paid for income taxes	$ 5	$ 4

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital	Treasury Stock	Retained Earnings	Accumulated Comprehensive Loss	Total
Balance, beginning of period at Dec. 30, 2017	$ 2	$ 76,848	$ (1,283)	$ (59,634)	$ (2,291)	$ 13,642
Balance, beginning of period (in shares) at Dec. 30, 2017	18,629,737
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	55,500
Stock-based compensation		99				99
Net loss for the period				(2,707)		(2,707)
Foreign currency translation adjustment					(52)	(52)
Balance, end of period at Mar. 31, 2018	$ 2	76,947	(1,283)	(62,341)	(2,343)	10,982
Balance, end of period (in shares) at Mar. 31, 2018	18,685,237
Balance, beginning of period at Dec. 30, 2017	$ 2	76,848	(1,283)	(59,634)	(2,291)	13,642
Balance, beginning of period (in shares) at Dec. 30, 2017	18,629,737
Increase (Decrease) in Shareholders' Equity
Net loss for the period						(2,409)
Foreign currency translation adjustment						(400)
Balance, end of period at Jun. 30, 2018	$ 2	77,182	(1,283)	(62,043)	(2,691)	11,167
Balance, end of period (in shares) at Jun. 30, 2018	18,769,015
Balance, beginning of period at Mar. 31, 2018	$ 2	76,947	(1,283)	(62,341)	(2,343)	10,982
Balance, beginning of period (in shares) at Mar. 31, 2018	18,685,237
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	67,728
Issuance of common stock upon exercise of stock options		20				20
Issuance of common stock upon exercise of stock options (in shares)	16,050
Stock-based compensation		215				215
Net loss for the period				298		298
Foreign currency translation adjustment					(348)	(348)
Balance, end of period at Jun. 30, 2018	$ 2	77,182	(1,283)	(62,043)	(2,691)	11,167
Balance, end of period (in shares) at Jun. 30, 2018	18,769,015
Balance, beginning of period at Dec. 29, 2018	$ 2	77,396	(1,283)	(63,885)	(2,960)	9,270
Balance, beginning of period (in shares) at Dec. 29, 2018	18,820,602
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	33,125
Stock-based compensation		48				48
Net loss for the period				(1,398)		(1,398)
Foreign currency translation adjustment					165	165
Balance, end of period at Mar. 30, 2019	$ 2	77,444	(1,283)	(65,283)	(2,795)	8,085
Balance, end of period (in shares) at Mar. 30, 2019	18,853,727
Balance, beginning of period at Dec. 29, 2018	$ 2	77,396	(1,283)	(63,885)	(2,960)	9,270
Balance, beginning of period (in shares) at Dec. 29, 2018	18,820,602
Increase (Decrease) in Shareholders' Equity
Net loss for the period						(1,622)
Foreign currency translation adjustment						213
Balance, end of period at Jun. 29, 2019	$ 2	77,548	(1,283)	(65,507)	(2,747)	8,013
Balance, end of period (in shares) at Jun. 29, 2019	18,926,704
Balance, beginning of period at Mar. 30, 2019	$ 2	77,444	(1,283)	(65,283)	(2,795)	8,085
Balance, beginning of period (in shares) at Mar. 30, 2019	18,853,727
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	72,977
Stock-based compensation		104				104
Net loss for the period				(224)		(224)
Foreign currency translation adjustment					48	48
Balance, end of period at Jun. 29, 2019	$ 2	$ 77,548	$ (1,283)	$ (65,507)	$ (2,747)	$ 8,013
Balance, end of period (in shares) at Jun. 29, 2019	18,926,704

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 29, 2019
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 safety, nursery, monitoring, and baby gear. Most products are sold under our core brand names of Summer™, SwaddleMe®, and born freeTM. 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 29, 2018 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 29, 2018 included in its Annual Report on Form 10-K filed with the SEC on February 20, 2019, as amended on March 22, 2019. 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 The Company recognizes 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 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 customer, 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. Trade Receivables 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 Six months ended June 29, 2019 June 30, 2018 Allowance for doubtful accounts, beginning of period $ $ 1,622 Charges to costs and expenses, net 2,269 Account write-offs — — Allowance for doubtful accounts, end of period $ $ 3,891 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. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the Company’s condensed consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company’s uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on fair values to the lease components and non-lease components. Although separation of lease and non-lease components is required, certain practical expedients are available to entities. Entities electing the practical expedient would not separate lease and non-lease components. Rather, they would account for each lease component and the related non-lease component together as a single component. The Company’s facilities operating leases have lease and non-lease components to which the Company has elected to apply the practical expedient and account for each lease component and related non-lease component as one single component. The lease component results in a right-of-use asset being recorded on the balance sheet. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 utilized the discrete method of accounting for income taxes in the U.S. for the three months ended March 30, 2019 and the three months ended June 29, 2019 as it believes the discrete method results in a more accurate representation of the income tax benefit for the quarter. 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 Loss/Income Per Share Basic loss per share for the Company is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss 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 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. Foreign exchange transaction gains and losses are included in the accompanying interim, condensed consolidated statement of operations. Recent ly Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize most leases on their balance sheet as a right-of-use asset and a lease liability. Leases are classified as either operating or finance, and classification is based on criteria similar to past lease accounting, but without explicit bright lines. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU No. 2018-11, “Leases (Topic 842) – Targeted Improvements” (ASU 2018-11), which addresses implementation issues related to the new lease standard. The guidance became effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted the standard on the effective date of December 31, 2018 by applying the new lease requirements at the effective date. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allows the Company to carry forward the historical lease classification. The impact of the adoption of ASC 842 on the condensed consolidated balance sheet was an increase of $6,411 in assets and an increase of $7,037 of liabilities for the recognition of right-of-use assets and lease liabilities. The adoption of ASU 2016-02 was immaterial to the condensed consolidated results of operations and cash flows. 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. 29, 2019
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 months ended ended June 29, 2019 June 29, 2019 United States $ 39,064 $ 75,300 All Other 7,361 13,663 Net Sales $ 46,425 $ 88,963 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. All contract costs incurred in the six months ended June 29, 2019 and six months ended June 30, 2018 fall under the provisions of the practical expedient and have therefore been expensed.

DEBT

DEBT	6 Months Ended
	Jun. 29, 2019
DEBT
DEBT	3. DEBT Credit Facilities Bank of America Credit Facility. On June 28, 2018, the Company and Summer Infant (USA), Inc., 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 (as amended, 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 of eligible inventory or (ii) 85% of the net orderly liquidation value 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). On March 25, 2019, the Company and Summer Infant (USA), Inc., as borrowers, entered into Amendment No. 1 to the Second Amended and Restated Loan and Security Agreement that modified the definitions of Capital Lease, EBITDA, Eligible Account and Revolver Borrowing Base in the Restated BofA Agreement in order to account for FASB mandated changes to lease accounting standards and provide additional financing flexibility to the Company. 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 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, a springing covenant would be in effect requiring the Company to 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 Agreement or 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 29, 2019, under the Restated BofA Agreement, the rate on base-rate loans was 6.50% and the rate on LIBOR-rate loans was 4.50%. The amount outstanding on the Restated BofA Agreement at June 29, 2019 was $37,712. Total borrowing capacity at June 29, 2019 was $45,854 and borrowing availability was $8,142. Prior to entering into the Restated BofA Agreement, the Company and Summer Infant (USA), Inc. 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” 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 stepped 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 were repaid April 21, 2018. Term Loan Agreement. On June 28, 2018, the Company and Summer Infant (USA), Inc., as borrowers, entered into a Term Loan and Security Agreement (as amended, 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. On March 25, 2019, the Company and Summer Infant (USA), Inc., as borrowers, entered into Amendment No. 1 to the Term Loan and Security Agreement that modified definitions consistent with the amendment of the Restated BofA Agreement and also modified the IP Advance Rate Reduction Amount definition in order to provide additional financing flexibility to the Company. The principal of the Term Loan will be repaid, on a quarterly basis, in installments of $219, with the first installment having been 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 with the Restated BofA Agreement or 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 29, 2019, the interest rate on the Term Loan was 11.52%. The amount outstanding on the Term Loan at June 29, 2019 was $16,844. Aggregate maturities of bank debt related to the Restated BofA Agreement and the Term Loan Agreement: Fiscal Year ending: 2019 2020 2021 2022 2023 and thereafter $ Total $ Unamortized debt issuance costs were $2,432 at June 29, 2019 and $2,395 at December 29, 2018, and are presented as a direct deduction of long-term debt on the consolidated balance sheets.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 29, 2019
INTANGIBLE ASSETS
INTANGIBLE ASSETS	4. INTANGIBLE ASSETS Intangible assets consisted of the following: June 29, December 29, 2019 2018 Brand names $ $ 11,819 Patents and licenses 3,766 Customer relationships 6,946 Other intangibles 1,882 24,413 Less: Accumulated amortization (11,113) Intangible assets, net $ $ 13,300 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 29, 2019 and December 29, 2018.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 29, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	5. COMMITMENTS AND CONTINGENCIES Leases The Company leases office space and distribution centers primarily related to its Riverside California, Canada, United Kingdom, and Hong Kong operations. In connection with these leases, there were no cash incentives from the landlord to be used for the construction of leasehold improvements within the facility. Our headquarters in Woonsocket, Rhode Island continues to be accounted for as a sale-leaseback lease. The Company identified and assessed the following significant assumptions in recognizing the right-of-use asset and corresponding liabilities: · Expected lease term – The expected lease term includes both contractual lease periods and, when applicable, cancelable option periods when it is reasonably certain that the Company would exercise such options. These leases have remaining lease terms between 7 months and 4 years. The Canada lease has one 5-year extension option that has also not been included in the lease term. · Incremental borrowing rate – The Company’s lease agreements do not provide an implicit rate. As the Company does not have any external borrowings for comparable terms of its leases, the Company estimated the incremental borrowing rate based on secured borrowings available to the Company for the next 5 years. This is the rate the Company would have to pay if borrowing on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. · Lease and non - lease components – In certain cases the Company is required to pay for certain additional charges for operating costs, including insurance, maintenance, taxes, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square footage. The Company determined that these costs are non-lease components and they are not included in the calculation of the lease liabilities because they are variable. Payments for these variable, non-lease components are considered variable lease costs and are recognized in the period in which the costs are incurred. The components of the Company’s lease expense for the three and six months ended June 29, 2019 were as follows: Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Operating lease cost $ $ Variable lease cost Total lease cost $ $ Weighted-average remaining lease term years Weighted Average discount rate: % Cash paid for amounts included in the measurement of the Company’s lease liabilities were $1,298 for the six months ended June 29, 2019. As of June 29, 2019, the present value of maturities of the Company’s operating lease liabilities were as follows: Fiscal Year Ending: 2019 $ 2020 2021 2022 2023 Less imputed interest Total $ Prior to the adoption of ASU 2016-02 and for the six months ended June 29, 2018, the Company recognized rent expense on a straight-line basis over the lease period and recorded deferred rent expense for rent expense incurred but not yet paid. The Company also recorded deferred rent attributable to cash incentives received under its lease agreements which are amortized to rent expense over the lease term. During the three and six months ended June 29, 2018, the Company recognized rent expense of $613 and $1,225 respectively. Disclosures related to periods prior to adoption of the new lease standard: Under ASC 840, approximate future minimum rental payments due under these leases as of June 29, 2019 were as follows: Fiscal Year Ending: 2019 $ 2,627 2020 2,556 2021 2,048 2022 323 2023 and beyond 154 Total (a) $ 7,708 (a) Amounts exclude payments for sales-leaseback transaction of the Woonsocket headquarters. 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. 29, 2019
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 six months ended June 29, 2019 and June 30, 2018 was $152 and $314, 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 29, 2019, there were 1,213,660 stock options outstanding and 292,275 unvested restricted shares outstanding. During the six months ended June 29, 2019, the Company granted 237,000 stock options and 169,500 shares of restricted stock, respectively. The following table summarizes the weighted average assumptions used for stock options granted during the six months ended June 29, 2019 and June 30, 2018. For the Six For the Six Months Ended Months Ended June 29, 2019 June 30, 2018 Expected life (in years) Risk-free interest rate 2.34 % 2.68 % Volatility 64.2 % 64.0 % Dividend yield % % Forfeiture rate 24.2 % 23.1 % As of June 29, 2019, there were 516,218 shares available to grant under the 2012 Plan.

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	6 Months Ended
	Jun. 29, 2019
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 and six months ended June 29, 2019 excluded 1,213,660 stock options and 292,275 shares of restricted stock outstanding. The computation of diluted common shares for the three and six months ended June 30, 2018 excluded 1,188,010 stock options and 321,000 shares of restricted stock outstanding and 1,188,010 stock options and 356,766 shares of restricted stock outstanding, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 29, 2019
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 SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 29, 2019
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition	Revenue Recognition The Company recognizes 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 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 customer, 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.
Trade Receivables	Trade Receivables 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 Six months ended June 29, 2019 June 30, 2018 Allowance for doubtful accounts, beginning of period $ $ 1,622 Charges to costs and expenses, net 2,269 Account write-offs — — Allowance for doubtful accounts, end of period $ $ 3,891
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.
Leases	Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the Company’s condensed consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company’s uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on fair values to the lease components and non-lease components. Although separation of lease and non-lease components is required, certain practical expedients are available to entities. Entities electing the practical expedient would not separate lease and non-lease components. Rather, they would account for each lease component and the related non-lease component together as a single component. The Company’s facilities operating leases have lease and non-lease components to which the Company has elected to apply the practical expedient and account for each lease component and related non-lease component as one single component. The lease component results in a right-of-use asset being recorded on the balance sheet. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
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 utilized the discrete method of accounting for income taxes in the U.S. for the three months ended March 30, 2019 and the three months ended June 29, 2019 as it believes the discrete method results in a more accurate representation of the income tax benefit for the quarter. 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 Loss/Income Per Share	Net Loss/Income Per Share Basic loss per share for the Company is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss 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 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. Foreign exchange transaction gains and losses are included in the accompanying interim, condensed consolidated statement of operations.
Recently Issued Accounting Pronouncements	Recent ly Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize most leases on their balance sheet as a right-of-use asset and a lease liability. Leases are classified as either operating or finance, and classification is based on criteria similar to past lease accounting, but without explicit bright lines. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU No. 2018-11, “Leases (Topic 842) – Targeted Improvements” (ASU 2018-11), which addresses implementation issues related to the new lease standard. The guidance became effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted the standard on the effective date of December 31, 2018 by applying the new lease requirements at the effective date. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allows the Company to carry forward the historical lease classification. The impact of the adoption of ASC 842 on the condensed consolidated balance sheet was an increase of $6,411 in assets and an increase of $7,037 of liabilities for the recognition of right-of-use assets and lease liabilities. The adoption of ASU 2016-02 was immaterial to the condensed consolidated results of operations and cash flows. 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 SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 29, 2019
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of changes in the allowance for doubtful accounts	Changes in the allowance for doubtful accounts are as follows: For the Six months ended June 29, 2019 June 30, 2018 Allowance for doubtful accounts, beginning of period $ $ 1,622 Charges to costs and expenses, net 2,269 Account write-offs — — Allowance for doubtful accounts, end of period $ $ 3,891

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 29, 2019
REVENUE
Schedule of net sales by geographical area	For the three For the six months months ended ended June 29, 2019 June 29, 2019 United States $ 39,064 $ 75,300 All Other 7,361 13,663 Net Sales $ 46,425 $ 88,963

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 29, 2019
DEBT
Schedule of aggregate maturities of bank debt	Fiscal Year ending: 2019 2020 2021 2022 2023 and thereafter $ Total $

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 29, 2019
INTANGIBLE ASSETS
Schedule of intangible assets	June 29, December 29, 2019 2018 Brand names $ $ 11,819 Patents and licenses 3,766 Customer relationships 6,946 Other intangibles 1,882 24,413 Less: Accumulated amortization (11,113) Intangible assets, net $ $ 13,300

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 29, 2019
COMMITMENTS AND CONTINGENCIES
Schedule of lease expense	The components of the Company’s lease expense for the three and six months ended June 29, 2019 were as follows: Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Operating lease cost $ $ Variable lease cost Total lease cost $ $ Weighted-average remaining lease term years Weighted Average discount rate: %
Schedule of maturities of the operating lease liabilities	As of June 29, 2019, the present value of maturities of the Company’s operating lease liabilities were as follows: Fiscal Year Ending: 2019 $ 2020 2021 2022 2023 Less imputed interest Total $
Schedule of approximate future minimum rental payments due under leases	Under ASC 840, approximate future minimum rental payments due under these leases as of June 29, 2019 were as follows: Fiscal Year Ending: 2019 $ 2,627 2020 2,556 2021 2,048 2022 323 2023 and beyond 154 Total (a) $ 7,708 (a) Amounts exclude payments for sales-leaseback transaction of the Woonsocket headquarters.

SHARE BASED COMPENSATION (Table

SHARE BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 29, 2019
SHARE BASED COMPENSATION
Summary of weighted average assumptions used for stock options granted	For the Six For the Six Months Ended Months Ended June 29, 2019 June 30, 2018 Expected life (in years) Risk-free interest rate 2.34 % 2.68 % Volatility 64.2 % 64.0 % Dividend yield % % Forfeiture rate 24.2 % 23.1 %

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Trade Receivables (Details) $ in Thousands	6 Months Ended
	Jun. 29, 2019USD ($)segment	Jun. 30, 2018USD ($)
Revenue Recognition
Number of reportable segment | segment	1
Days in accounts receivable	P60D
Changes in the allowance for doubtful accounts
Allowance for doubtful accounts, beginning of period	$ 304	$ 1,622
Charges to costs and expenses	34	2,269
Allowance for doubtful accounts, end of period	$ 338	$ 3,891

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 31, 2018
Leases
Operating lease, right-to-use asset	$ 5,396
Operating lease liability	$ 5,950
2016-02 | Adjustment
Leases
Operating lease, right-to-use asset		$ 6,411
Operating lease liability		$ 7,037

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Net sales by geographical area
Net sales	$ 46,425	$ 47,678	$ 88,963	$ 89,733
Election of practical expedient, incremental cost of obtaining contracts			true
United States
Net sales by geographical area
Net sales	39,064		$ 75,300
All Other
Net sales by geographical area
Net sales	$ 7,361		$ 13,663

DEBT - Bank of America Credit F

DEBT - Bank of America Credit Facility (Details) $ in Thousands	Jun. 28, 2018USD ($)	Jun. 29, 2019USD ($)	Jun. 27, 2018USD ($)
Restated Bank of America Agreement | Credit Facility
DEBT
Amount outstanding on credit facility		$ 37,712
Borrowing capacity		45,854
Borrowing availability		$ 8,142
Restated Bank of America Agreement | Credit Facility | Minimum
DEBT
Fixed charge coverage ratio	1
Restated Bank of America Agreement | Credit Facility | LIBOR
DEBT
Interest rate during the period		4.50%
Restated Bank of America Agreement | Credit Facility | Base rate
DEBT
Interest rate during the period		6.50%
Restated Bank of America Agreement | Revolving Facility
DEBT
Maximum borrowing capacity	$ 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%
Restated Bank of America Agreement | Letter of Credit
DEBT
Maximum borrowing capacity	$ 5,000
Prior Credit Facility | Revolving Facility
DEBT
Maximum borrowing capacity			$ 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%
Prior Credit Facility | Letter of Credit
DEBT
Maximum borrowing capacity			$ 10,000
Prior Credit Facility | FILO Facility
DEBT
Maximum borrowing capacity			5,000
Prior Credit Facility | Term Loan Facility
DEBT
Maximum borrowing capacity			$ 10,000

DEBT - Term Loan Agreement (Det

DEBT - Term Loan Agreement (Details) $ in Thousands	Jun. 28, 2018USD ($)	Jun. 29, 2019USD ($)	Dec. 29, 2018USD ($)
DEBT
Unamortized debt issuance costs		$ 2,432	$ 2,395
Term Loan
DEBT
Face amount of loan	$ 17,500
Percentage of ownership interests of domestic subsidiaries pledged	100.00%
Percentage of ownership interests of foreign subsidiaries pledged	65.00%
Quarterly basis installment amount	$ 219
Interest rate on borrowings		11.52%
Amount outstanding		$ 16,844
Term Loan | Minimum
DEBT
Fixed charge coverage ratio	1
Term Loan | LIBOR
DEBT
Interest rate basis	LIBOR
Applicable margin (as a percent)	9.00%

DEBT - Aggregate maturities (De

DEBT - Aggregate maturities (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Aggregate maturities of bank debt
2019	$ 438
2020	875
2021	875
2022	875
2023 and thereafter	51,493
Total	54,556
Unamortized debt issuance costs	$ 2,432	$ 2,395

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2019	Dec. 29, 2018
INTANGIBLE ASSETS
Intangible assets, gross	$ 24,527	$ 24,413
Less: Accumulated amortization	(11,483)	(11,113)
Intangible assets, net	13,044	13,300
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	$ 3,880	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

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019USD ($)item	Jun. 30, 2018USD ($)	Jun. 29, 2019USD ($)item	Jun. 30, 2018USD ($)
Leases
Term of secured borrowings used to estimate incremental borrowing rate (in years)			5 years
Cash paid for amounts included in the measurement of the Company's lease liabilities			$ 1,298
Components of the lease expense (Topic 842)
Operating lease cost	$ 624		1,247
Variable lease cost	270		644
Total lease cost	$ 894		$ 1,891
Weighted-average remaining lease term (in years)	2 years 6 months 26 days		2 years 6 months 26 days
Weighted Average discount rate:	5.00%		5.00%
Maturities of the operating lease liabilities (Topic 842)
2019	$ 1,294		$ 1,294
2020	2,550		2,550
2021	2,041		2,041
2022	319		319
2023	153		153
Less imputed interest	(407)		(407)
Total	5,950		5,950
Leases recorded under Topic 840
Total rent expense		$ 613		$ 1,225
Future minimum rental payments (Topic 840)
2019	2,627		2,627
2020	2,556		2,556
2021	2,048		2,048
2022	323		323
2023 and beyond	154		154
Total	$ 7,708		$ 7,708
Minimum
Leases
Remaining lease term (in years)	7 months		7 months
Maximum
Leases
Remaining lease term (in years)	4 years		4 years
Canada
Leases
Operating lease, option to extend			True
Number of options to extend | item	1		1
Extension term (in years)	5 years		5 years

SHARE BASED COMPENSATION - Summ

SHARE BASED COMPENSATION - Summary of Plans and Stock Option Info (Details) - 2012 Plan - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018
SHARE BASED COMPENSATION
Number of shares authorized under the plan	1,700,000
Shares available to grant	516,218
Weighted average assumptions
Expected life (in years)	4 years 9 months 18 days	4 years 10 months 24 days
Risk-free interest rate	2.34%	2.68%
Volatility	64.20%	64.00%
Dividend yield	0.00%	0.00%
Forfeiture rate	24.20%	23.10%
General and Administrative Expense
SHARE BASED COMPENSATION
Share-based compensation expense	$ 152	$ 314
Stock Options
SHARE BASED COMPENSATION
Stock options outstanding (in shares)	1,213,660
Stock options granted during the period (in shares)	237,000
Restricted Stock Awards
SHARE BASED COMPENSATION
Unvested restricted shares outstanding	292,275
Granted (in shares)	169,500

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Stock Options
WEIGHTED AVERAGE COMMON SHARES
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares)	1,213,660	1,188,010	1,213,660	1,188,010
Restricted Stock Awards
WEIGHTED AVERAGE COMMON SHARES
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares)	292,275	321,000	292,275	356,766