Summer Infant (SUMR) 10-Q 10 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 26, 2020	Nov. 06, 2020
Document and Entity Information
Entity Registrant Name	Summer Infant, Inc.
Document Type	10-Q
Document Period End Date	Sep. 26, 2020
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
Trading Symbol	SUMR
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common Stock, par value $0.0001
Entity Common Stock, Shares Outstanding		2,131,507
Entity Central Index Key	0001314772
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 871	$ 395
Trade receivables, net of allowance for doubtful accounts	30,757	32,787
Inventory, net	24,460	28,056
Prepaids and other current assets	2,814	2,946
TOTAL CURRENT ASSETS	58,902	64,184
Property and equipment, net	5,205	8,788
Other intangible assets, net	12,613	12,896
Right of use assets, noncurrent	4,225	4,578
Deferred tax assets, net	1,615	996
Other assets	99	101
TOTAL ASSETS	82,659	91,543
CURRENT LIABILITIES
Accounts payable	29,460	25,396
Accrued expenses	7,858	7,289
Lease liabilities, current	2,877	2,495
Current portion of long term debt	656	875
TOTAL CURRENT LIABILITIES	40,851	36,055
Long-term debt, less current portion and unamortized debt issuance costs	32,130	45,359
Lease liabilities, noncurrent	1,629	2,546
Other liabilities		2,000
TOTAL LIABILITIES	74,610	85,960
STOCKHOLDERS' EQUITY
Preferred Stock, $0.0001 par value, 1,000,000 authorized, none issued or outstanding at September 26, 2020 and December 28, 2019, respectively
Common Stock $0.0001 par value, authorized, issued and outstanding of 49,000,000, 2,161,692 and 2,131,507 at September 26, 2020 and 49,000,000, 2,138,926, and 2,108,743 at December 28, 2019, respectively	2	2
Treasury Stock at cost (30,185 shares at September 26, 2020 and December 28, 2019)	(1,283)	(1,283)
Additional paid-in capital	77,861	77,715
Accumulated deficit	(66,801)	(69,088)
Accumulated other comprehensive loss	(1,730)	(1,763)
TOTAL STOCKHOLDERS' EQUITY	8,049	5,583
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 82,659	$ 91,543

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 26, 2020	Dec. 28, 2019
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	2,161,692	2,138,926
Common Stock, outstanding	2,131,507	2,108,743
Treasury Stock at cost, shares	30,185	30,185

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Condensed Consolidated Statements of Operations
Net sales	$ 40,704	$ 41,523	$ 119,256	$ 130,486
Cost of goods sold	27,168	28,928	79,178	89,599
Gross profit	13,536	12,595	40,078	40,887
General & administrative expenses	6,890	8,353	21,766	26,255
Selling expenses	2,802	3,597	9,984	10,981
Depreciation and amortization	783	919	2,563	2,808
Operating income (loss)	3,061	(274)	5,765	843
Interest expense	1,017	1,191	3,548	3,733
Income (loss) before (benefit) provision for income taxes	2,044	(1,465)	2,217	(2,890)
(Benefit) provision for income taxes	(166)	195	(70)	392
Net income (loss)	$ 2,210	$ (1,660)	$ 2,287	$ (3,282)
Net income (loss) per share:
BASIC (in dollars per share)	$ 1.04	$ (0.79)	$ 1.08	$ (1.56)
DILUTED (in dollars per share)	$ 1.03	$ (0.79)	$ 1.08	$ (1.56)
Weighted average shares outstanding:
BASIC (in shares)	2,126,497	2,104,207	2,115,694	2,098,886
DILUTED (in shares)	2,155,791	2,104,207	2,120,044	2,098,886

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 2,210	$ (1,660)	$ 2,287	$ (3,282)
Other comprehensive income (loss):
Changes in foreign currency translation adjustments	40	(100)	33	113
Comprehensive income (loss)	$ 2,250	$ (1,760)	$ 2,320	$ (3,169)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019
Cash flows from operating activities:
Net income (loss)	$ 2,287	$ (3,282)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	2,563	2,808
Stock-based compensation expense	135	224
Write off of unamortized deferred financing costs	266
(Recovery of) provision for allowance for doubtful accounts	(14)	21
Paid in kind interest expense	366
Amortization of right of use assets	1,810	1,569
Changes in assets and liabilities:
Decrease in trade receivables	1,988	1,666
Decrease in inventory	3,539	6,098
Decrease in lease liability	(1,992)	(1,053)
Increase (decrease) in prepaids and other assets	178	(351)
Increase (decrease) in accounts payable and accrued expenses	4,037	(6,558)
Net cash provided by operating activities	15,163	1,142
Cash flows from investing activities:
Acquisitions of property and equipment	(1,052)	(1,632)
Acquisitions of other intangible assets	(83)	(281)
Net cash used in investing activities	(1,135)	(1,913)
Cash flows from financing activities:
Issuance of common stock upon exercise of stock options	11
Proceeds from Paycheck Protection Program loan	1,956
Repayment of Term Loan Facility		(656)
Net (repayment) borrowings on revolving facilities	(15,623)	1,484
Net cash (used in) provided by financing activities	(13,656)	828
Effect of exchange rate changes on cash and cash equivalents	104	(119)
Net increase (decrease) in cash and cash equivalents	476	(62)
Cash and cash equivalents, beginning of period	395	721
Cash and cash equivalents, end of period	871	659
Supplemental disclosure of cash flow information:
Cash paid for interest	2,300	2,878
Cash (refunded) paid for income taxes	(204)	$ 5
Supplemental disclosure of non-cash investing and financing activities:
Derecognition of a building sale-leaseback fixed asset, net of depreciation	2,357
Derecognition of a building sale-leaseback financial obligation	(2,390)
Right-of-use asset acquired through new operating lease	(1,457)
Lease liability acquired through new operating lease	$ 1,457

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital	Treasury Stock	Accumulated Deficit	Accumulated Comprehensive Loss	Total
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	2,091,178
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	3,681
Stock-based compensation		48				48
Net income (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	2,094,859
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	2,091,178
Increase (Decrease) in Shareholders' Equity
Net income (loss) for the period						(3,282)
Foreign currency translation adjustment						113
Balance, end of period at Sep. 28, 2019	$ 2	77,620	(1,283)	(67,167)	(2,847)	6,325
Balance, end of period (in shares) at Sep. 28, 2019	2,104,608
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	2,094,859
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	8,109
Stock-based compensation		104				104
Net income (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	2,102,968
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	1,640
Stock-based compensation		72				72
Net income (loss) for the period				(1,660)		(1,660)
Foreign currency translation adjustment					(100)	(100)
Balance, end of period at Sep. 28, 2019	$ 2	77,620	(1,283)	(67,167)	(2,847)	6,325
Balance, end of period (in shares) at Sep. 28, 2019	2,104,608
Balance, beginning of period at Dec. 28, 2019	$ 2	77,715	(1,283)	(69,088)	(1,763)	5,583
Balance, beginning of period (in shares) at Dec. 28, 2019	2,108,743
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	1,064
Stock-based compensation		(11)				(11)
Fractional share issuance upon reverse stock split	1,620
Net income (loss) for the period				(1,210)		(1,210)
Foreign currency translation adjustment					(55)	(55)
Balance, end of period at Mar. 28, 2020	$ 2	77,704	(1,283)	(70,298)	(1,818)	4,307
Balance, end of period (in shares) at Mar. 28, 2020	2,111,427
Balance, beginning of period at Dec. 28, 2019	$ 2	77,715	(1,283)	(69,088)	(1,763)	5,583
Balance, beginning of period (in shares) at Dec. 28, 2019	2,108,743
Increase (Decrease) in Shareholders' Equity
Net income (loss) for the period						2,287
Foreign currency translation adjustment						33
Balance, end of period at Sep. 26, 2020	$ 2	77,861	(1,283)	(66,801)	(1,730)	8,049
Balance, end of period (in shares) at Sep. 26, 2020	2,131,507
Balance, beginning of period at Mar. 28, 2020	$ 2	77,704	(1,283)	(70,298)	(1,818)	4,307
Balance, beginning of period (in shares) at Mar. 28, 2020	2,111,427
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	2,676
Stock-based compensation		42				42
Net income (loss) for the period				1,287		1,287
Foreign currency translation adjustment					48	48
Balance, end of period at Jun. 27, 2020	$ 2	77,746	(1,283)	(69,011)	(1,770)	5,684
Balance, end of period (in shares) at Jun. 27, 2020	2,114,103
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	16,014
Issuance of common stock upon exercise of stock options		11				11
Issuance of common stock upon exercise of stock options (in shares)	1,390
Stock-based compensation		104				104
Net income (loss) for the period				2,210		2,210
Foreign currency translation adjustment					40	40
Balance, end of period at Sep. 26, 2020	$ 2	$ 77,861	$ (1,283)	$ (66,801)	$ (1,730)	$ 8,049
Balance, end of period (in shares) at Sep. 26, 2020	2,131,507

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 26, 2020
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 free TM . 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 28, 2019 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 28, 2019 included in its Annual Report on Form 10-K filed with the SEC on March 18, 2020, as amended on April 24, 2020. 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. In March 2020, the Company completed a 1-for-9 reverse stock split of the Company's issued and outstanding shares of common stock in order to regain compliance with Nasdaq's minimum bid price requirement. Accordingly, all information in the financial statements and accompanying notes included within this Quarterly Report on Form 10-Q have been adjusted retrospectively to give effect to the reverse stock split as if it occurred at the beginning of the first period presented. Reclassification Previously reported amounts have been revised in the accompanying condensed consolidated statement of cash flows to properly state certain right to use assets and lease liabilities. These revisions had no impact on the Company’s net cash provided by operating activities. Revenue Recognition The Company recognizes revenue to depict the transfer of promised goods to customers in an amount that reflects what it expects to receive in exchange for the goods. 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 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 Nine months ended September 26, 2020 September 28, 2019 Allowance for doubtful accounts, beginning of period $ $ 304 (Reversals of) charges to costs and expenses, net 21 Account write-offs — Allowance for doubtful accounts, end of period $ $ 325 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 ROU 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 and nine months ended September 26, 2020 and for the three and nine months ended September 28, 2019 as it believes the discrete method results in a more accurate representation of the income tax provision for the periods. 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. On March 27, 2020, the U.S. CARES Act was enacted, which provided a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic. The U.S. CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. As a result of the U.S. CARES Act tax law changes and revised final regulations released on July 28, 2020, we recognized a $624 tax benefit for the nine months ended September 26, 2020 related to the increase in interest deduction occurring during the fiscal years ended December 28, 2019 and December 29, 2018 which was previously fully reserved for. The impact of the U.S. CARES Act in prospective periods may differ from our estimate as of September 26, 2020 due to changes in interpretations and assumptions, additional guidance that may be issued and actions the Company may take in response to the U.S. CARES Act. The U.S. CARES Act is highly detailed, and the Company will continue to assess the impact that various provisions will have on its business. Net Loss/Income Per Share Basic income or loss per share for the Company is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. Diluted income or loss per share includes the dilutive impact of outstanding stock options and unvested restricted shares. Translation of Foreign Currencies Assets and liabilities of the Company’s foreign subsidiaries 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. Assets and liabilities of the Company’s foreign subsidiaries whose functional currency is the U.S. dollar are remeasured into U.S. dollars at their historical rates or the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been remeasured at average rates prevailing during each respective quarter. Resulting remeasurement adjustments are made to the condensed consolidated statement of operations. Foreign exchange transaction gains and losses are included in the accompanying interim condensed consolidated statement of operations. 2020 Plan and COVID-19 Pandemic In March 2020, the COVID-19 outbreak was declared a global pandemic and became widespread in the U.S. While our products are considered “essential” and our distribution center located in California continues to operate, some of our customers have been impacted and, to the extent they operated retail stores, have been required to close their stores and curtail operations. We began to see an impact on orders at the end of March and have continued to see lower demand from our mid-sized and smaller customers as governmental restrictions on businesses remain in place and with the resurgence of COVID-19. Due to the uncertainty with respect to when governmental restrictions may be lifted and the widespread nature of the pandemic, we cannot currently predict how it will impact our business in the long term. The Company is not currently aware of any events or circumstances arising from the COVID-19 pandemic that would require us to update any estimates, judgments or materially revise the carrying value of our assets or liabilities. The Company’s estimates may change, however, as events evolve and additional information is obtained, and any such changes will be recognized in the condensed consolidated financial statements. Beginning in the first quarter of 2020, the Company implemented various restructuring initiatives to streamline operations and support its liquidity needs, including headcount reductions, reductions in facility space, and other cost reductions, as well as working with its lenders to amend its credit facility and term loan agreement to undertake these restructuring initiatives and to provide availability. In addition, the Company began taking actions to mitigate the impact of the expiration in August 2020 of tariff exclusions previously granted with respect to certain of its products, including seeking price increases from its customers and alternative manufacturing sources. In light of the ongoing uncertainty surrounding the COVID-19 pandemic in the U.S. and other countries and unpredictable economic consequences in the coming months, the Company applied for and in August 2020, received a loan through the Paycheck Protection Program of the U.S. CARES Act in the amount of $1,956, which may be used to fund certain qualified expenses, including payroll costs, rent and utility costs. Further, as noted in Note 9, after the end of the third quarter the Company refinanced its existing debt. The Company believes that its existing plan will generate sufficient cash which, along with its existing cash and availability under its facilities, will enable it to fund operations through at least the next 12 months. To the extent the Company experiences unexpected impacts from the COVID-19 pandemic or is unable to meet its current financial forecast, the Company would take further action to reduce costs, mitigate risks to its supply chain and, if necessary, seek to raise additional funds through debt or equity financings, engage in strategic collaborations, and/or a strategic transaction.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 26, 2020
REVENUE RECOGNITION
REVENUE RECOGNITION	2. REVENUE RECOGNITION 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 Three Months Ended Months Ended September 26, 2020 September 28, 2019 United States $ 35,729 $ 35,833 All Other 4,975 5,690 Net Sales $ 40,704 $ 41,523 For the nine For the nine months ended months ended September 26, 2020 September 28, 2019 United States $ 107,307 $ 111,133 All Other 11,949 19,353 Net Sales $ 119,256 $ 130,486 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 three and nine months ended September 26, 2020 and three and nine months ended September 28, 2019 fall under the provisions of the practical expedient and have therefore been expensed .

DEBT

DEBT	9 Months Ended
	Sep. 26, 2020
DEBT
DEBT	3. DEBT Credit Facilities On October 15, 2020, the Company and its subsidiary, Summer Infant (USA), Inc., as borrowers, entered into a Third Amended and Restated Loan and Security Agreement (the “Third Restated BofA Agreement”) with Bank of America, N.A. (“BofA”) that replaced its existing agreement with BofA and funded in part the prepayment of the Company’s outstanding term loan with Pathlight Capital LLC, increased revolver and lowered its interest rates. Information about the Third Restated BofA Agreement is included below in Note 9. The following description of debt reflects the Company’s agreements that were effective as of September 26, 2020. 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 through August 2020 (as amended, the “Restated BofA Agreement”). The Restated BofA Agreement replaced the Company’s prior credit facility with Bank of America, and provided for an asset-based revolving credit facility with a letter of credit sub-line facility. As of September 26, 2020, total revolver commitments under the credit facility were $48,000. The total borrowing capacity as of September 26, 2020 was based on a borrowing base, 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 was June 28, 2023 (subject to customary early termination provisions). As a result of the amendments made to the Restated BofA Agreement in the first nine months of 2020, (i) the definition of Financial Covenant Trigger Amount was modified, (ii) the lenders' aggregate revolver commitments were reduced to $48,000, (iii) the definition of EBITDA was amended to exclude certain fees and expenses, (iv) the Company was required to meet certain minimum net sales amounts for each period of three consecutive fiscal months through the three-month period ending December 31, 2020, (v) the Company was required to meet a certain minimum EBITDA (as defined in the Restated BofA Agreement) as of the end of each fiscal month, calculated on a trailing 12-month basis, (vi) the applicable margin and applicable unused line fee rate were increased, (vii) a LIBOR floor of 0.75% was added, (viii) certain reporting requirements were modified, (ix) the maximum percentage of accounts owing from the Amazon Companies that could be included as eligible accounts was temporarily increased and (x) certain provisions were modified to accommodate the PPP Loan described below. All obligations under the Restated BofA Agreement were 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, were 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 could be used to pay obligations under the Restated BofA Agreement, and for lawful corporate purposes, including working capital. Loans under the Restated BofA Agreement bore 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 were due monthly, payable in arrears. The Company was 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 contained customary affirmative and negative covenants. Among other restrictions, the Company was restricted in its ability to incur additional debt, make acquisitions or investments, dispose of assets, or make distributions unless in each case certain conditions were satisfied. The Company was also required to meet certain financial covenants through the end of fiscal 2020, specifically (a) a minimum net sales amount for each period of three consecutive fiscal months, measured at the end of each month, and (b) a trailing, 12-month minimum adjusted EBITDA amount (as defined in the Restated BofA Agreement), measured at the end of each fiscal month. In addition, if availability fell below agreed minimum amounts, a springing covenant would have been 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 contained customary events of default, including a cross default with the Term Loan Agreement described below or the occurrence of a change of control. In the event of a default, the lenders could declare all of the obligations of the Company and its subsidiaries under the Restated BofA Agreement immediately due and payable. For events of default relating to insolvency and receivership, all outstanding obligations automatically would have become due and payable without any action on the part of the lenders. As of September 26, 2020, under the Restated BofA Agreement, the rate on base-rate loans was 5.75% and the rate on LIBOR-rate loans was 4.25%. The amount outstanding on the Restated BofA Agreement at September 26, 2020, was $16,255 and borrowing availability was $15,924. The amendments executed in the nine months ended September 26, 2020 were evaluated to determine the proper accounting treatment for the transactions. Accordingly, debt extinguishment accounting was used to account for the reduction in the total revolver commitments under the credit facility, resulting in the write off of $266 in remaining unamortized deferred financing costs during the three months ended March 28, 2020. Term Loan Agreement. On June 28, 2018, the Company and Summer Infant (USA), Inc., as borrowers, entered into a Term Loan and Security Agreement with Pathlight Capital LLC, as agent, each lender from time to time a party thereto, and certain subsidiaries of the Company as guarantors, as amended of IP Advance Rate Reduction was modified , (ii) t he definition of Term Loan Borrowing Base was modified to deduct a specified equipment reserve amount from the calculation of the borrowing base, (iii) the definitions of Financial Covenant Trigger Amount and EBITDA were amended consistent with the Restated BofA Agreement, (iv) consistent with the Restated BofA Agreement, the Company was required to meet certain minimum net sales amounts for each period of three consecutive fiscal months through the three-month period ending December 31, 2020 and certain minimum EBITDA as of the end of each fiscal month, calculated on a trailing 12-month period, (v) principal payments on the term loan were suspended for 2020 and such payments were to resume in March 2021, (vi) a LIBOR floor of 0.75% was added, (vii) certain reporting requirements were modified, and (viii) certain provisions were modified to accommodate the PPP Loan described below. In addition, as described below, beginning March 10, 2020, the Term Loan began to bear additional interest, to be paid in kind ("PIK interest") at an annual rate of 4.0%. The principal of the Term Loan was to 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. In connection with the March 2020 amendment, principal payments on the Term Loan were suspended for 2020 and were to resume in March 2021. The Term Loan bore interest at an annual rate equal to LIBOR, plus 9.0%. Cash interest payments were due monthly, in arrears. In addition, the Term Loan began to accrue PIK (payment in kind) interest at an annual rate of 4.0% in March 2020, which interest would become payable upon the earlier to occur of (i) the repayment of the Term Loan in full, (ii) a sale or merger of the Company, (iii) the occurrence of default or event of default under the Term Loan Agreement, or (iv) the Company achieving adjusted EBITDA of $12 million (calculated on a trailing, 12-month basis). If, and only if, the PIK interest became due and payable as a result of the Company achieving the adjusted EBITDA event noted in clause (iv), then the Company was required to pay all PIK interest then due and thereafter, PIK interest would continue to accrue and be paid on each subsequent anniversary of such event. Obligations under the Term Loan Agreement were also subject to a prepayment penalty if the Term Loan was repaid prior to the third anniversary of the closing of the Term Loan. The Term Loan Agreement contained customary affirmative and negative covenants that were substantially the same as the Restated BofA Agreement. Consistent with the Restated BofA Agreement, the Company was also required to meet certain financial covenants through the end of fiscal 2020, specifically (a) a minimum net sales amount for each period of three consecutive fiscal months, measured at the end of each month, and (b) a trailing, 12-month minimum adjusted EBITDA amount (as defined in the Restated BofA Agreement), measured at the end of each fiscal month. In addition, consistent with the Restated BofA Agreement, if availability fell below a specified amount as described above, then the Company was required 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 Term Loan Agreement also contained 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, the lenders could declare all of the obligations of the Company and its subsidiaries under the Term Loan Agreement immediately due and payable. For events of default relating to insolvency and receivership, all outstanding obligations automatically become due and payable without any action on the part of the lenders. As of September 26, 2020, the interest rate on the Term Loan was 9.75% of cash interest and 4.0% of PIK interest. The amount outstanding on the Term Loan at September 26, 2020 was $16,406 and $366 of accrued PIK interest. Aggregate maturities of bank debt related to the Restated BofA Agreement and the Term Loan Agreement including PIK interest as of September 26, 2020 was as follows: Fiscal Year ending: 2020 — 2021 875 2022 875 2023 and thereafter $ 31,277 Total $ 33,027 Unamortized debt issuance costs were $2,197 at September 26, 2020 and $2,398 at December 28, 2019, and are presented as a direct deduction of long-term debt on the condensed consolidated balance sheets. PPP Loan . On August 3, 2020, the Company received loan proceeds of $1,956 (the "PPP Loan") pursuant to the Paycheck Protection Program ("PPP") administered by the U.S. Small Business Administration under the U.S. CARES Act. The PPP Loan, which was in the form of a promissory note (the "PPP Note"), between the Company and BofA, as the lender, matures on July 27, 2025 and bears interest at a fixed rate of 1% per annum, payable monthly commencing six months from the date of the PPP Loan. The Company may voluntarily prepay the borrowings in full with no associated penalty or premium. Under the terms of the PPP, the principal and interest may be forgiven if the PPP Loan proceeds are used for qualifying expenses, including payroll costs, rent and utility costs. The PPP Note contains customary representations, warranties, and covenants for this type of transaction, including customary events of default relating to, among other things, payment defaults and breaches of representations and warranties or other provisions of the PPP Note. The occurrence of an event of default may result in, among other things, the Company becoming obligated to repay all amounts outstanding under the PPP Note.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 26, 2020
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	4. PROPERTY AND EQUIPMENT Property and equipment, at cost, consisted of the following: September 26, December 28, Depreciation/ 2020 2019 Amortization Period Computer-related 4,532 $ 4,511 5 years Tools, dies, prototypes, and molds 27,662 27,457 1 - 5 years Building — 4,156 30 years Other 7,650 7,474 1 - 15 years 39,844 43,598 Less: accumulated depreciation 34,639 34,810 Property and equipment, net $ 5,205 $ 8,788 Property and equipment included amounts acquired under capital leases of approximately $589 and $589 at September 26, 2020 and December 28, 2019, respectively, with related accumulated depreciation of approximately $189 and $115, respectively. Total depreciation expense was $2,197 and $2,254 for the nine months ended September 26, 2020 and September 28, 2019, respectively. See Note 6 on the derecognition of the building asset in May 2020.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 26, 2020
INTANGIBLE ASSETS
INTANGIBLE ASSETS	5. INTANGIBLE ASSETS Intangible assets consisted of the following: September 26, 2020 December 28, 2019 Brand names $ 11,819 $ 11,819 Patents and licenses 4,184 4,101 Customer relationships 6,946 6,946 Other intangibles 1,882 1,882 24,831 24,748 Less: Accumulated amortization (12,218) (11,852) Intangible assets, net $ 12,613 $ 12,896 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). Amortization expense for the nine months ended September 26, 2020 and September 28, 2019 was $366 and $554, respectively. Total of intangibles not subject to amortization amounted to $8,400 as of September 26, 2020 and September 28, 2019.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 26, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	6. COMMITMENTS AND CONTINGENCIES Leases The Company leases office space and distribution centers primarily related to its United States, 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. In May 2020, the Company entered into a lease agreement amendment related to our headquarters in Woonsocket, Rhode Island. The agreement decreased the leased premises square footage and extended the current term, which was set to end in March 2021 prior to the amendment to June 2025. It additionally granted two 5-year term extension options. The Company was accounting for the lease in Woonsocket as a sale-leaseback with the building on the balance sheet as property and equipment, net and a corresponding financing obligation in long-term liabilities. Upon the execution of the lease amendment, the Company re-assessed the classification of the lease and determined it to be an operating lease, as the criteria for a sale had been met. As part of this re-classification, the Company derecognized the financing obligation of $2,390 from long-term liabilities and the amount related to the property and equipment, net of $2,357 from the balance sheet and recorded a ROU asset and lease liability of $1,457 respectively. The Company did not include either of the term extension options in the calculation of the ROU asset and lease liability. In April 2020, the Company entered into a twelve-month sublease agreement for a portion of the distribution warehouse located in Riverside, California. Fixed sublease payments received are recognized on a straight-line basis over the sublease term in general and administrative expenses. 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 1.00 and 4.75 years. The Woonsocket lease has two 5-year extension options and the Canada lease has one 5-year extension option that have 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 nine months ended September 26, 2020 and September 28, 2019 were as follows: Nine Months Ended Nine Months Ended September 26, 2020 September 28, 2019 Operating lease cost $ 1,999 $ 1,867 Variable lease cost $ 785 $ 890 Less: sublease income (500) — Total lease expense $ 2,284 $ 2,757 Weighted-average remaining lease term 1.0 year Weighted-average discount rate: % Cash paid for amounts included in the measurement of the Company’s lease liabilities were $2,145 and $1,946 for the nine months ended September 26, 2020 and September 28, 2019 respectively. As of September 26, 2020, the present value of maturities of the Company’s operating lease liabilities were as follows: Fiscal Year Ending: 2020 757 2021 2,448 2022 618 2023 465 2024 325 Thereafter 164 Less imputed interest (271) Total $ 4,506 The future fixed sublease receipts under non-cancelable operating lease agreements as of September 26, 2020 are as follows: Fiscal Year Ending: 2020 250 2021 250 Thereafter — Total $ 500 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	9 Months Ended
	Sep. 26, 2020
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION	7. SHARE BASED COMPENSATION The Company is currently authorized to issue up to 188,889 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 nine months ended September 26, 2020 and September 28, 2019 was $136 and $224, 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 condensed consolidated financial statements is based on awards that are ultimately expected to vest. As of September 26, 2020, there were 65,170 stock options outstanding and 17,680 unvested restricted shares outstanding. During the nine months ended September 26, 2020, the Company granted 21,433 stock options and 25,202 shares of restricted stock, respectively. The following table summarizes the weighted average assumptions used for stock options granted during the nine months ended September 26, 2020 and September 28, 2019. For the Nine For the Nine Months Ended Months Ended September 26, 2020 September 28, 2019 Expected life (in years) 4.7 5.0 Risk-free interest rate 0.3 % 2.3 % Volatility 98.9 % 64.2 % Dividend yield 0 % 0 % Forfeiture rate 26.5 % 24.2 % As of September 26, 2020, there were 58,851 shares available to grant under the 2012 Plan.

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	9 Months Ended
	Sep. 26, 2020
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES	8. 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. A reconciliation of basic and diluted net income (loss) attributable to common stockholders is as follows: For the Three For the Three Months Ended Months Ended Calculation of Basic and Diluted EPS September 26, 2020 September 28, 2019 Weighted-average common shares outstanding - basic 2,126,497 2,104,207 Dilutive effect of restricted shares 8,672 — Dilutive effect of stock options 20,622 — Weighted-average common shares outstanding – diluted 2,155,791 2,104,207 Earnings (loss) per share - basic $ 1.04 $ (0.79) Earnings (loss) per share - diluted $ 1.03 $ (0.79) For the Nine For the Nine Months Ended Months Ended Calculation of Basic and Diluted EPS September 26, 2020 September 28, 2019 Weighted-average common shares outstanding - basic 2,115,694 2,098,886 Dilutive effect of restricted shares 1,956 — Dilutive effect of stock options 2,394 — Weighted-average common shares outstanding – diluted 2,120,044 2,098,886 Earnings (loss) per share - basic $ 1.08 $ (1.56) Earnings (loss) per share - diluted $ 1.08 $ (1.56) The computation of diluted common shares for the three and nine months ended September 26, 2020 excluded 44,548 and 62,776 of stock options outstanding, respectively and excluded 9,008 and 15,724 shares of restricted stock outstanding, respectively. The computation of diluted common shares for the three and nine months ended September 28, 2019 excluded 112,292 stock options and 31,142 shares of restricted stock outstanding.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 26, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	9. 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 condensed consolidated financial statements or disclosure in the notes thereto except as follows. On October 15, 2020, the Company and its subsidiary, Summer Infant (USA), Inc., as borrowers, entered into a Third Amended and Restated Loan and Security Agreement (the "Third Restated BofA 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 Third Restated BofA Agreement provides for (i) a $40 million asset-based revolving credit facility, with a $5 million letter of credit sub-line facility, (ii) a $7.5 million term loan and (iii) a $2.5 million FILO (first-in, last-out) loan as described below. Proceeds from the Third Restated BofA Agreement were used to repay the Company's outstanding term loan with Pathlight Capital, other related obligations, and to pay fees and transaction expenses associated with the closing of the Third Restated BofA Agreement, and may be used for paying obligations under the Third Restated BofA Agreement and for lawful corporate purposes, including working capital. · Revolving Credit Facility - Total borrowing capacity under the revolving credit facility is based on a borrowing base, which is generally defined as 85% of eligible receivables plus the lesser of (i) 70% of the value of eligible inventory (subject to certain limitations) or (ii) 85% of the net orderly liquidation value (NOLV) of eligible inventory, less applicable reserves. The scheduled maturity date of loans under the revolving credit facility is October 15, 2025 (subject to customary early termination provisions). Loans under the revolving credit facility bear interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins based on average quarterly availability. Interest payments are due monthly, payable in arrears. The Company is also required to pay an annual non-use fee on unused amounts under the revolving credit facility, as well as other customary fees as are set forth in the Third Restated BofA Agreement. As of October 15, 2020, the applicable margin for base rate loans under the revolving credit facility was 1.25% and for LIBOR rate loans was 2.25%. · Term Loan - The principal of the term loan will be repaid, on a quarterly basis, in installments of $375, with the first installment to be paid on January 1, 2021, until paid in full on termination and subject to mandatory repayment in certain circumstances. The scheduled maturity date of the term loan is October 15, 2025 or, if earlier, the date the revolving credit facility is terminated. The term loan bears interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins, and interest payments are due monthly, in arrears. As of October 15, 2020, the applicable margin for term loans at base rate was 2.50% and for term loans at LIBOR rate was 3.50%. · FILO Loan - The total borrowing capacity under the FILO loan is the lesser of (i) the then applicable aggregate FILO commitment amount and (ii) a borrowing base, generally defined as a specific percentage of the value of eligible accounts, plus a specified percentage of the value of eligible inventory. The aggregate FILO commitment amount as of October 15, 2020 was $2.5 million, and such amount will be proportionately reduced on the first calendar day of each quarter beginning January 1, 2021 until the FILO loan is terminated at maturity on October 15, 2024. There can be no voluntary repayment on the FILO loan as long as there are loans outstanding under the revolving credit facility, unless (i) there is an overadvance under the FILO loan, or (ii) such prepayment is accompanied by a permanent dollar for dollar reduction in the aggregate FILO commitment amount such that, after giving effect to such prepayment and reduction, the outstanding principal amount of the FILO loan is equal to but does not exceed the lesser of (A) the aggregate FILO commitment amount and (B) the FILO borrowing base. The FILO loan bears interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins, and interest payments are due monthly, in arrears. As of October 15, 2020, the applicable margin for the FILO loan at base rate was 2.25% and for the FILO loan at LIBOR rate was 3.25%. All obligations under the Third Restated BofA Agreement are secured by substantially all the assets of the Company. Summer Infant Canada Limited and Summer Infant Europe Limited, subsidiaries of the Company, are guarantors under the Third Restated BofA Agreement. The Third 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. Until the term loan and FILO loan have been repaid in full, the Company must maintain a fixed charge coverage ratio at the end of each fiscal month of at least 1.00 to 1.00 for the twelve-month period then ended. After the term loan and FILO loan have been repaid in full, the Company will be required to maintain the fixed charge coverage ratio if availability falls below $5.0 million. The Third Restated BofA Agreement also contains customary events of default, including if the Company fails to comply with any required financial covenants, if there is an event of default under the PPP 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 Third 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.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 26, 2020
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reclassification	Reclassification Previously reported amounts have been revised in the accompanying condensed consolidated statement of cash flows to properly state certain right to use assets and lease liabilities. These revisions had no impact on the Company’s net cash provided by operating activities.
Revenue Recognition	Revenue Recognition The Company recognizes revenue to depict the transfer of promised goods to customers in an amount that reflects what it expects to receive in exchange for the goods. 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 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 Nine months ended September 26, 2020 September 28, 2019 Allowance for doubtful accounts, beginning of period $ $ 304 (Reversals of) charges to costs and expenses, net 21 Account write-offs — Allowance for doubtful accounts, end of period $ $ 325
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 ROU 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 and nine months ended September 26, 2020 and for the three and nine months ended September 28, 2019 as it believes the discrete method results in a more accurate representation of the income tax provision for the periods. 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. On March 27, 2020, the U.S. CARES Act was enacted, which provided a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic. The U.S. CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. As a result of the U.S. CARES Act tax law changes and revised final regulations released on July 28, 2020, we recognized a $624 tax benefit for the nine months ended September 26, 2020 related to the increase in interest deduction occurring during the fiscal years ended December 28, 2019 and December 29, 2018 which was previously fully reserved for. The impact of the U.S. CARES Act in prospective periods may differ from our estimate as of September 26, 2020 due to changes in interpretations and assumptions, additional guidance that may be issued and actions the Company may take in response to the U.S. CARES Act. The U.S. CARES Act is highly detailed, and the Company will continue to assess the impact that various provisions will have on its business.
Net Loss/Income Per Share	Net Loss/Income Per Share Basic income or loss per share for the Company is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. Diluted income or loss per share includes the dilutive impact of outstanding stock options and unvested restricted shares.
Translation of Foreign Currencies	Translation of Foreign Currencies Assets and liabilities of the Company’s foreign subsidiaries 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. Assets and liabilities of the Company’s foreign subsidiaries whose functional currency is the U.S. dollar are remeasured into U.S. dollars at their historical rates or the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been remeasured at average rates prevailing during each respective quarter. Resulting remeasurement adjustments are made to the condensed consolidated statement of operations. Foreign exchange transaction gains and losses are included in the accompanying interim condensed consolidated statement of operations.
2020 Plan and COVID-19 Pandemic	2020 Plan and COVID-19 Pandemic In March 2020, the COVID-19 outbreak was declared a global pandemic and became widespread in the U.S. While our products are considered “essential” and our distribution center located in California continues to operate, some of our customers have been impacted and, to the extent they operated retail stores, have been required to close their stores and curtail operations. We began to see an impact on orders at the end of March and have continued to see lower demand from our mid-sized and smaller customers as governmental restrictions on businesses remain in place and with the resurgence of COVID-19. Due to the uncertainty with respect to when governmental restrictions may be lifted and the widespread nature of the pandemic, we cannot currently predict how it will impact our business in the long term. The Company is not currently aware of any events or circumstances arising from the COVID-19 pandemic that would require us to update any estimates, judgments or materially revise the carrying value of our assets or liabilities. The Company’s estimates may change, however, as events evolve and additional information is obtained, and any such changes will be recognized in the condensed consolidated financial statements. Beginning in the first quarter of 2020, the Company implemented various restructuring initiatives to streamline operations and support its liquidity needs, including headcount reductions, reductions in facility space, and other cost reductions, as well as working with its lenders to amend its credit facility and term loan agreement to undertake these restructuring initiatives and to provide availability. In addition, the Company began taking actions to mitigate the impact of the expiration in August 2020 of tariff exclusions previously granted with respect to certain of its products, including seeking price increases from its customers and alternative manufacturing sources. In light of the ongoing uncertainty surrounding the COVID-19 pandemic in the U.S. and other countries and unpredictable economic consequences in the coming months, the Company applied for and in August 2020, received a loan through the Paycheck Protection Program of the U.S. CARES Act in the amount of $1,956, which may be used to fund certain qualified expenses, including payroll costs, rent and utility costs. Further, as noted in Note 9, after the end of the third quarter the Company refinanced its existing debt. The Company believes that its existing plan will generate sufficient cash which, along with its existing cash and availability under its facilities, will enable it to fund operations through at least the next 12 months. To the extent the Company experiences unexpected impacts from the COVID-19 pandemic or is unable to meet its current financial forecast, the Company would take further action to reduce costs, mitigate risks to its supply chain and, if necessary, seek to raise additional funds through debt or equity financings, engage in strategic collaborations, and/or a strategic transaction.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 26, 2020
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 Nine months ended September 26, 2020 September 28, 2019 Allowance for doubtful accounts, beginning of period $ $ 304 (Reversals of) charges to costs and expenses, net 21 Account write-offs — Allowance for doubtful accounts, end of period $ $ 325

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 26, 2020
REVENUE RECOGNITION
Schedule of net sales by geographical area	For the Three For the Three Months Ended Months Ended September 26, 2020 September 28, 2019 United States $ 35,729 $ 35,833 All Other 4,975 5,690 Net Sales $ 40,704 $ 41,523 For the nine For the nine months ended months ended September 26, 2020 September 28, 2019 United States $ 107,307 $ 111,133 All Other 11,949 19,353 Net Sales $ 119,256 $ 130,486 All Other consists of Canada, Europe, South America, Mexico, Asia, and the Middle East.

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 26, 2020
DEBT
Schedule of aggregate maturities of the Restated BofA Agreement and the Term Loan Agreement	Fiscal Year ending: 2020 — 2021 875 2022 875 2023 and thereafter $ 31,277 Total $ 33,027

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 26, 2020
PROPERTY AND EQUIPMENT
Schedule of property and equipment, at cost	September 26, December 28, Depreciation/ 2020 2019 Amortization Period Computer-related 4,532 $ 4,511 5 years Tools, dies, prototypes, and molds 27,662 27,457 1 - 5 years Building — 4,156 30 years Other 7,650 7,474 1 - 15 years 39,844 43,598 Less: accumulated depreciation 34,639 34,810 Property and equipment, net $ 5,205 $ 8,788

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 26, 2020
INTANGIBLE ASSETS
Schedule of intangible assets	September 26, 2020 December 28, 2019 Brand names $ 11,819 $ 11,819 Patents and licenses 4,184 4,101 Customer relationships 6,946 6,946 Other intangibles 1,882 1,882 24,831 24,748 Less: Accumulated amortization (12,218) (11,852) Intangible assets, net $ 12,613 $ 12,896

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 26, 2020
COMMITMENTS AND CONTINGENCIES
Schedule of lease expense	The components of the Company’s lease expense for the nine months ended September 26, 2020 and September 28, 2019 were as follows: Nine Months Ended Nine Months Ended September 26, 2020 September 28, 2019 Operating lease cost $ 1,999 $ 1,867 Variable lease cost $ 785 $ 890 Less: sublease income (500) — Total lease expense $ 2,284 $ 2,757 Weighted-average remaining lease term 1.0 year Weighted-average discount rate: %
Schedule of maturities of the operating lease liabilities	As of September 26, 2020, the present value of maturities of the Company’s operating lease liabilities were as follows: Fiscal Year Ending: 2020 757 2021 2,448 2022 618 2023 465 2024 325 Thereafter 164 Less imputed interest (271) Total $ 4,506
Schedule of future fixed sublease receipts under non-cancelable operating lease agreements	The future fixed sublease receipts under non-cancelable operating lease agreements as of September 26, 2020 are as follows: Fiscal Year Ending: 2020 250 2021 250 Thereafter — Total $ 500

SHARE BASED COMPENSATION (Table

SHARE BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 26, 2020
SHARE BASED COMPENSATION
Summary of weighted average assumptions used for stock options granted	For the Nine For the Nine Months Ended Months Ended September 26, 2020 September 28, 2019 Expected life (in years) 4.7 5.0 Risk-free interest rate 0.3 % 2.3 % Volatility 98.9 % 64.2 % Dividend yield 0 % 0 % Forfeiture rate 26.5 % 24.2 %

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	9 Months Ended
	Sep. 26, 2020
WEIGHTED AVERAGE COMMON SHARES
Schedule of reconciliation of basic and diluted net income (loss) attributable to common stockholders	A reconciliation of basic and diluted net income (loss) attributable to common stockholders is as follows: For the Three For the Three Months Ended Months Ended Calculation of Basic and Diluted EPS September 26, 2020 September 28, 2019 Weighted-average common shares outstanding - basic 2,126,497 2,104,207 Dilutive effect of restricted shares 8,672 — Dilutive effect of stock options 20,622 — Weighted-average common shares outstanding – diluted 2,155,791 2,104,207 Earnings (loss) per share - basic $ 1.04 $ (0.79) Earnings (loss) per share - diluted $ 1.03 $ (0.79) For the Nine For the Nine Months Ended Months Ended Calculation of Basic and Diluted EPS September 26, 2020 September 28, 2019 Weighted-average common shares outstanding - basic 2,115,694 2,098,886 Dilutive effect of restricted shares 1,956 — Dilutive effect of stock options 2,394 — Weighted-average common shares outstanding – diluted 2,120,044 2,098,886 Earnings (loss) per share - basic $ 1.08 $ (1.56) Earnings (loss) per share - diluted $ 1.08 $ (1.56)

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Aug. 03, 2020USD ($)	Aug. 31, 2020USD ($)	Mar. 31, 2020	Sep. 26, 2020USD ($)segment	Sep. 28, 2019USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reverse stock split			0.1111
Tax benefit recognized related to increase in interest deduction from tax law changes				$ 624,000
Revenue Recognition
Number of reportable segments | segment				1
Days in accounts receivable				P60D
Changes in the allowance for doubtful accounts
Allowance for doubtful accounts, beginning of period				$ 542,000	$ 304,000
(Reversals of) charges to costs and expenses, net				(14,000)	21,000
Account write-offs				(222,000)
Allowance for doubtful accounts, end of period				306,000	$ 325,000
2020 Plan and COVID-19 Pandemic
Proceeds from issuance of loan				$ 1,956,000
PPP Loan
2020 Plan and COVID-19 Pandemic
Proceeds from issuance of loan	$ 1,956,000	$ 1,956

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Net sales by geographical area
Net sales	$ 40,704	$ 41,523	$ 119,256	$ 130,486
United States
Net sales by geographical area
Net sales	35,729	35,833	107,307	111,133
All Other
Net sales by geographical area
Net sales	$ 4,975	$ 5,690	$ 11,949	$ 19,353

DEBT - Credit Facilities, Term

DEBT - Credit Facilities, Term Loan Agreement and PPP Loan (Details) - USD ($)	Aug. 03, 2020	Jun. 28, 2018	Aug. 31, 2020	Mar. 31, 2020	Mar. 28, 2020	Sep. 26, 2020
DEBT
Write off of unamortized deferred financing costs						$ 266,000
Proceeds from issuance of loan						1,956,000
Term Loan
DEBT
Quarterly basis installment amount						$ 219,000
Adjusted EBITDA				$ 12,000,000
Cash interest rate						9.75%
PIK interest rate (as a percent)		4.00%		4.00%		4.00%
Amount outstanding						$ 16,406,000
Accrued PIK interest amount						$ 366,000
Term Loan | Minimum
DEBT
Fixed charge coverage ratio at the end of each fiscal month						1
Term Loan | LIBOR
DEBT
Interest rate basis						LIBOR
Applicable margin (as a percent)						9.00%
Restated Bank of America Agreement | Credit Facility
DEBT
Amount outstanding on credit facility						$ 16,255,000
Borrowing availability						$ 15,924,000
Write off of unamortized deferred financing costs					$ 266,000
Restated Bank of America Agreement | Credit Facility | Base rate
DEBT
Interest rate during the period						5.75%
Restated Bank of America Agreement | Credit Facility | LIBOR
DEBT
Interest rate during the period						4.25%
Restated Bank of America Agreement | Credit Facility | Financial Covenant | Minimum
DEBT
Fixed charge coverage ratio at the end of each fiscal month						1
Restated Bank of America Agreement | Credit Facility | Financial Covenant | LIBOR
DEBT
Interest rate basis						LIBOR
Reference rate floor (as a percentage)						0.75%
Restated Bank of America Agreement | Revolving Facility
DEBT
Maximum borrowing capacity						$ 48,000,000
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%
Term Loan and Security Agreement | Term Loan
DEBT
Face amount of loan		$ 17,500,000
Percentage of ownership interests of domestic subsidiaries pledged		100.00%
Percentage of ownership interests of foreign subsidiaries pledged		65.00%
Term Loan and Security Agreement | Term Loan | Financial Covenant | LIBOR
DEBT
Interest rate basis		LIBOR
Reference rate floor (as a percentage)		0.75%
PPP Loan
DEBT
Proceeds from issuance of loan	$ 1,956,000		$ 1,956

DEBT - Aggregate maturities (De

DEBT - Aggregate maturities (Details) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Aggregate maturities related to the Restated BofA Agreement and the Term Loan Agreement
2020	$ 0
2021	875
2022	875
2023 and thereafter	31,277
Total	33,027
Unamortized debt issuance costs	$ 2,197	$ 2,398

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 39,844		$ 43,598
Less: accumulated depreciation	34,639		34,810
Property and equipment, net	5,205		8,788
Total depreciation expense	2,197	$ 2,254
Computer-related
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 4,532		4,511
Depreciation/Amortization Period	5 years
Tools, dies, prototypes, and molds
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 27,662		27,457
Tools, dies, prototypes, and molds | Minimum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	1 year
Tools, dies, prototypes, and molds | Maximum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	5 years
Building
PROPERTY AND EQUIPMENT
Property and equipment, gross			4,156
Depreciation/Amortization Period	30 years
Other
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 7,650		7,474
Other | Minimum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	1 year
Other | Maximum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	15 years
Property and equipment acquired under capital leases
PROPERTY AND EQUIPMENT
Less: accumulated depreciation	$ 189		115
Property and equipment, net	$ 589		$ 589

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
INTANGIBLE ASSETS
Intangible assets, gross	$ 24,831		$ 24,748
Less: Accumulated amortization	(12,218)		(11,852)
Intangible assets, net	12,613		12,896
Amortization expense	366	$ 554
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	$ 4,184		4,101
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 -

COMMITMENTS AND CONTINGENCIES - Leases (Details) $ in Thousands	1 Months Ended		9 Months Ended
	May 31, 2020USD ($)item	Apr. 30, 2020	Sep. 26, 2020USD ($)item	Sep. 28, 2019USD ($)	Dec. 28, 2019USD ($)
Leases
Cash incentives from the landlord			$ 0
Derecognition of a building sale-leaseback financial obligation			2,390
Derecognition of a building sale-leaseback fixed asset, net of depreciation			2,357
ROU asset			4,225		$ 4,578
Lease liability			$ 4,506
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			$ 2,145	$ 1,946
Components of lease expense
Operating lease cost			1,999	1,867
Variable lease cost			785	890
Less: sublease income			(500)
Total lease expense			$ 2,284	$ 2,757
Weighted-average remaining lease term (in years)			1 year
Weighted-average discount rate			5.00%
Minimum
Leases
Remaining lease term (in years)			1 year
Maximum
Leases
Remaining lease term (in years)			4 years 9 months
Woonsocket, RI
Leases
Number of options to extend | item			2
Extension term (in years)			5 years
Derecognition of a building sale-leaseback financial obligation	$ 2,390
Derecognition of a building sale-leaseback fixed asset, net of depreciation	2,357
ROU asset	1,457
Lease liability	$ 1,457
Riverside, CA
Leases
Sublease term		12 months
Canada
Leases
Number of options to extend | item			1
Extension term (in years)			5 years
Lease Amendment | Woonsocket, RI
Leases
Number of options to extend | item	2
Extension term (in years)	5 years

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Maturities of the operating lease liabilities (Details) $ in Thousands	Sep. 26, 2020USD ($)
Maturities of the operating lease liabilities
2020	$ 757
2021	2,448
2022	618
2023	465
2024	325
Thereafter	164
Less imputed interest	(271)
Total	$ 4,506

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Future fixed sublease receipts (Details) $ in Thousands	Sep. 26, 2020USD ($)
Future fixed sublease receipts under non-cancelable operating lease agreements
2020	$ 250
2021	250
Total	$ 500

SHARE BASED COMPENSATION (Detai

SHARE BASED COMPENSATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019
SHARE BASED COMPENSATION
Stock options granted during the period (in shares)	21,433
Restricted stock granted during the period (in shares)	25,202
Stock Options
Weighted average assumptions
Expected life (in years)	4 years 8 months 12 days	5 years
Risk-free interest rate	0.30%	2.30%
Volatility	98.90%	64.20%
Dividend yield	0.00%	0.00%
Forfeiture rate	26.50%	24.20%
2012 Plan
SHARE BASED COMPENSATION
Number of shares authorized under the plan	188,889
Shares available to grant	58,851
2012 Plan | General and Administrative Expense
SHARE BASED COMPENSATION
Share-based compensation expense	$ 136	$ 224
2012 Plan | Stock Options
SHARE BASED COMPENSATION
Stock options outstanding (in shares)	65,170
2012 Plan | Restricted Stock Awards
SHARE BASED COMPENSATION
Unvested restricted shares outstanding	17,680

WEIGHTED AVERAGE COMMON SHARE_2

WEIGHTED AVERAGE COMMON SHARES - Reconciliation of Basic and Diluted Net Income (Loss) Attributable to Common Stockholders (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Calculation of Basic and Diluted EPS
Weighted-average common shares outstanding - basic	2,126,497	2,104,207	2,115,694	2,098,886
Dilutive effect of restricted shares	8,672		1,956
Dilutive effect of stock options	20,622		2,394
Weighted-average common shares outstanding - diluted	2,155,791	2,104,207	2,120,044	2,098,886
Earnings (loss) per share - basic	$ 1.04	$ (0.79)	$ 1.08	$ (1.56)
Earnings (loss) per share - diluted	$ 1.03	$ (0.79)	$ 1.08	$ (1.56)

WEIGHTED AVERAGE COMMON SHARE_3

WEIGHTED AVERAGE COMMON SHARES (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Stock Options
WEIGHTED AVERAGE COMMON SHARES
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares)	44,548	112,292	62,776
Restricted Stock Awards
WEIGHTED AVERAGE COMMON SHARES
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares)	9,008		15,724	31,142

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent events - Third Restated BofA Agreement $ in Thousands	Oct. 15, 2020USD ($)
Subsequent Event [Line Items]
Fixed charge coverage ratio	1
Threshold availability to maintain minimum fixed charge coverage ratio	$ 5,000
Revolving Facility
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 40,000
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%
Revolving Facility | Base rate
Subsequent Event [Line Items]
Applicable margin (as a percent)	1.25%
Revolving Facility | LIBOR
Subsequent Event [Line Items]
Applicable margin (as a percent)	2.25%
Letter of credit sub-line facility
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 5,000
Term Loan Facility
Subsequent Event [Line Items]
Maximum borrowing capacity	7,500
Quarterly basis installment amount	$ 375
Term Loan Facility | Base rate
Subsequent Event [Line Items]
Applicable margin (as a percent)	2.50%
Term Loan Facility | LIBOR
Subsequent Event [Line Items]
Applicable margin (as a percent)	3.50%
FILO Facility
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 2,500
FILO Facility | Base rate
Subsequent Event [Line Items]
Applicable margin (as a percent)	2.25%
FILO Facility | LIBOR
Subsequent Event [Line Items]
Applicable margin (as a percent)	3.25%