Staffing 360 Solutions (STAF) 10-Q 14 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 14, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Staffing 360 Solutions, Inc.
Entity Central Index Key	1,499,717
Current Fiscal Year End Date	--12-29
Entity Filer Category	Smaller Reporting Company
Trading Symbol	STAF
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018
Entity Common Stock, Shares Outstanding		4,720,377

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Current Assets:
Cash	$ 2,886	$ 3,100
Accounts receivable, net	28,985	33,392
Prepaid expenses and other current assets	1,421	1,443
Total Current Assets	33,292	37,935
Property and equipment, net	1,469	1,618
Identifiable intangible assets, net	16,572	17,145
Goodwill	28,714	27,169
Other assets	2,923	2,881
Total Assets	82,970	86,748
Current Liabilities:
Accounts payable and accrued expenses	22,221	16,709
Current portion of debt, net	683	245
Accounts receivable financing	15,988	25,983
Other current liabilities	7,524	6,372
Total Current Liabilities	46,416	49,309
Term loan - related party, net	40,342	38,749
Warrant Liability	0	1,426
Other long-term liabilities	4,034	4,049
Total Liabilities	90,792	93,533
Commitments and contingencies
Staffing 360 Solutions, Inc. Equity:
Preferred stock value
Common stock, $0.00001 par value, 40,000,000 and 20,000,000 shares authorized as of June 30, 2018 and December 30, 2017, respectively; 4,272,094 and 3,909,114 shares issued and outstanding, as of June 30, 2018 and December 30, 2017, respectively	0	0
Additional paid in capital	59,314	57,574
Accumulated other comprehensive income	1,121	783
Accumulated deficit	(68,257)	(65,142)
Total Stockholders' Deficit	(7,822)	(6,785)
Total Liabilities and Stockholders' Deficit	82,970	86,748
Series A Preferred Stock - Related Party [Member]
Staffing 360 Solutions, Inc. Equity:
Preferred stock value	0	0
Series B Preferred Stock [Member]
Staffing 360 Solutions, Inc. Equity:
Preferred stock value	0	0
Series C Preferred Stock [Member]
Staffing 360 Solutions, Inc. Equity:
Preferred stock value	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 30, 2017
Preferred Stock, Par Value Per Share (in dollars per share)	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	40,000,000	20,000,000
Common Stock, Shares, Issued	4,272,094	3,909,114
Common Stock, Shares, Outstanding	4,272,094	3,909,114
Series A Preferred Stock - Related Party [Member]
Preferred Stock, Stated Value Per Share (in dollars per share)	$ 1	$ 1
Preferred Stock, Shares Designated	1,663,008	1,663,008
Preferred Stock, Shares Issued	1,663,008	1,663,008
Preferred Stock, Shares Outstanding	1,663,008	1,663,008
Series B Preferred Stock [Member]
Preferred Stock, Stated Value Per Share (in dollars per share)	$ 10	$ 10
Preferred Stock, Shares Designated	200,000	200,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Series C Preferred Stock [Member]
Preferred Stock, Stated Value Per Share (in dollars per share)	$ 1	$ 1
Preferred Stock, Shares Designated	2,000,000	2,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income Statement [Abstract]
Revenue	$ 59,727	$ 42,117	$ 115,518	$ 82,829
Cost of Revenue, excluding depreciation and amortization stated below	47,845	34,193	92,055	67,579
Gross Profit	11,882	7,924	23,463	15,250
Operating Expenses:
Selling, general and administrative expenses	11,030	6,439	22,218	13,562
Depreciation and amortization	712	760	1,510	1,520
Total Operating Expenses	11,742	7,199	23,728	15,082
Income (Loss) From Operations	140	725	(265)	168
Other (Expenses) Income:
Interest expense	(1,951)	(580)	(3,906)	(1,082)
Amortization of debt discount and deferred financing costs	(115)	(839)	(237)	(1,398)
Loss on extinguishment of debt, net	0	0	0	(1,368)
Change in fair value of warrant liability	341	287	879	195
Gain from sale of business	238	0	238	0
Re-measurement loss on intercompany note	(721)	0	(146)	0
Other, net	(9)	(23)	241	(19)
Total Other Expenses, net	(2,217)	(1,155)	(2,931)	(3,672)
Loss Before Provision for Income Tax	(2,077)	(430)	(3,196)	(3,504)
Benefit from (Provision for) income taxes	233	(2)	81	(7)
Net Loss	(1,844)	(432)	(3,115)	(3,511)
Dividends - Series A preferred stock - related party	50	50	100	100
Deemed Dividends - Series D preferred stock	0	1,129	0	2,009
Net Loss Attributable to Common Stock Holders	$ (1,894)	$ (1,611)	$ (3,215)	$ (5,620)
Basic and Diluted Net Loss per Share:
Net Loss	$ (0.45)	$ (0.16)	$ (0.77)	$ (1.41)
Net Loss Attributable to Common Stock Holders	$ (0.46)	$ (0.59)	$ (0.79)	$ (2.26)
Weighted Average Shares Outstanding – Basic and Diluted	4,142,309	2,715,189	4,063,316	2,487,523

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net Loss	$ (1,844)	$ (432)	$ (3,115)	$ (3,511)
Other Comprehensive loss
Foreign exchange translation adjustment	1,254	(281)	338	(303)
Comprehensive Loss Attributable to the Company	$ (590)	$ (713)	$ (2,777)	$ (3,814)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (3,115)	$ (3,511)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,510	1,520
Amortization of debt discount and deferred financing costs	237	1,398
Loss on extinguishment of debt, net	0	1,368
Gain in fair value of warrants	(879)	(195)
Stock based compensation	663	618
Re-measurement loss on intercompany note	146	0
Gain from sale of business	(238)	0
Other		(87)
Changes in operating assets and liabilities:
Accounts receivable	12,919	2,281
Prepaid expenses and other current assets	(57)	(269)
Other assets	(58)	295
Accounts payable and accrued expenses	1,960	(1,201)
Interest payable - related party	(160)
Other current liabilities	(88)	138
Other long-term liabilities	(11)	53
Other	167	(304)
NET CASH PROVIDED BY OPERATING ACTIVITIES	12,996	2,104
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash acquired	(1,910)
Disposal of business, net of cash	1,968
Purchase of property and equipment	(140)	(126)
Collection of UK factoring facility deferred purchase price	3,550
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	3,468	(126)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of term loan	(254)	0
Repayment of promissory notes	0	(5,486)
Proceeds from term loan - related party	0	9,050
Proceeds from term loan	2,047
Proceeds from convertible notes		400
Repayment of bonds		(50)
Repayments on accounts receivable financing, net	(18,813)	(2,709)
Dividends paid to related parties	(100)
Proceeds from At-The-Market Facility	629	208
Repayment of Series D Preferred Stock		(1,500)
Payments made for earn-outs	(165)	(1,075)
Third party financing costs	(20)	(938)
NET CASH USED IN FINANCING ACTIVITIES	(16,676)	(2,100)
NET DECREASE IN CASH	(212)	(122)
Effect of exchange rates on cash	(2)	(2)
Cash - Beginning of period	3,100	650
Cash - End of period	$ 2,886	$ 526

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Description of Business	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Staffing 360 Solutions, Inc. (“we,” “us,” “our,” “Staffing 360,” or the “Company”) was incorporated in the State of Nevada on December 22, 2009, as Golden Fork Corporation, which changed its name to Staffing 360 Solutions, Inc., ticker symbol “STAF”, on March 16, 2012. On June 15, 2017, the Company changed its state of domicile to Delaware. The Company effected a one-for-ten reverse stock split on September 17, 2015 and a one-for-five reverse stock split on January 3, 2018. All share and per share information in these consolidated financial statements has been retroactively adjusted to reflect these reverse stock splits.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of significant accounting policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation These condensed consolidated financial statements and related notes are presented in accordance with generally accepted accounting principles in the United States (“GAAP”), expressed in U.S. dollars. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 30, 2017, the transition period ended December 31, 2016 and fiscal year ended May 31, 2016, which are included in the Company’s December 30, 2017 Form 10-K, filed with the United States Securities and Exchange Commission on March 29, 2018. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the period ended June 30, 2018 are not necessarily indicative of results for the entire year ending December 29, 2018. This report is for the periods April 1, 2018 to June 30, 2018 (“Q2 2018”), April 2, 2017 to July 1, 2017 (“Q2 2017”), December 31, 2017 to June 30, 2018 (“Q2 2018 YTD”) and January 1, 2017 to July 1, 2017 (“Q2 2017 YTD”). Clement May Acquisition On June 28, 2018, the Company and Longbridge Recruitment 360 Limited (“Longbridge”), a wholly-owned subsidiary of the Company, entered into share purchase agreements (“Share Purchase Agreements”) to acquire all of the share capital of Clement May Limited (“CML”). Consideration for the acquisition of all the shares was (i) an aggregate cash payment of £1,550 ($2,047), (ii) 15,000 shares of the Company’s common stock, (iii) the assignment of certain outstanding debt owed to the CML Majority Holder to the Principal as set forth in that Share Purchase Agreement, (iv) an earn-out payment of up to £500, the amount to be calculated pursuant to that Share Purchase Agreement and to be paid on or around December 28, 2018, and (v) deferred consideration of £350, to be paid on or around June 28, 2019, depending on the satisfaction of certain conditions set forth in that Share Purchase Agreement. To finance the above transaction, the Company entered into a term loan with HSBC Bank plc. Refer to Note 5 for further details. PeopleServe Disposition On June 6, 2018, the Company divested the stock of PeopleServe Inc., and PeopleServe PRS, Inc. for a total consideration of $1,502, net of $567 that was remitted back to the buyer on July 31, 2018 in connection with a net working capital true up. The Company recorded a gain of $238 from sale of the business. Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers for all open contracts and related amendments as of January 1, 2018 using the modified retrospective method. The adoption had no impact to the reported results. Results for reporting periods beginning after January 1, 2018 will be presented under ASC 606, while the comparative information will not be restated and will continue to be reported under the accounting standards in effect for those periods. The Company accounts for revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered. The Company has primarily two main forms of revenue – temporary contractor revenue and permanent placement revenue. Temporary contractor revenue is accounted for as a single performance obligation satisfied over time because the customer simultaneously receives and consumes the benefits of the Company’s performance on an hourly basis. The contracts stipulate weekly billing and the Company has elected the “as invoiced” practical expedient to recognize revenue based on the hours incurred at the contractual rate as we have the right to payment in an amount that corresponds directly with the value of performance completed to date. Permanent placement revenue is recognized on the date the candidate’s full-time employment with the customer has commenced. The customer is invoiced on the start date, and the contract stipulates payment due under varying terms, typically 30 days. The contract with the customer stipulates a guarantee period whereby the customer may be refunded if the employee is terminated within a short period time, however this has historically been infrequent, and immaterial upon occurrence. As such, the Company’s performance obligations are satisfied upon commencement of the employment, at which point control has transferred to the customer. Reclassifications We may make certain reclassifications to prior period amounts to conform with the current year’s presentation. These reclassifications did not have a material effect on our condensed consolidated statement of financial position, results of operations or cash flows. Income Taxes The Company's provision for income taxes is based upon an estimated annual tax rate for the year applied to federal, state and foreign income. On a quarterly basis, the annual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. The Company’s effective tax rate may change from period to period based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, state and local income taxes, and tax audit settlements. The effective income tax rate was 2.52%, 12.8%, 11.1% and 8% for the period ending Q2 2018, Q2 2017, Q2 2018 YTD and Q2 2017 YTD, respectively. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was signed into law making significant changes to the Internal Revenue Code. The changes include, but are not limited to, a U.S. corporate tax rate decrease from 35% to 21 The Company remeasured domestic deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally the 21% rate imposed by the Tax Act. The Company recorded an expense of $3.7 million to reduce the net deferred tax assets, along with a corresponding benefit for the reduction of the valuation allowance recorded against At June 30, 2018, in accordance with SAB 118, the Company has not completed its accounting for the tax effects of the one-time transition tax imposed by the Tax Act. In order to determine the amount of the liability with respect to the one-time transition tax, the Company must determine, in addition to other factors, the amount of post-1986 Earnings & Profits of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. In order to quantify the liability, we are awaiting further interpretative guidance, continuing to assess available tax methods and elections, and continuing to gather additional information to more precisely compute the amount of the transition tax. Therefore, we have not recorded an estimate of the transition tax in our financial statements. In addition, the Company is continuing to evaluate whether Global Intangible Low Tax Income taxes (“GILTI”) are recorded as a current period expense when incurred or whether such amounts should be factored into the Company's measurement of its deferred taxes. As a result, the Company has not included an estimate of the tax impacts related to GILTI in the second quarter of 2018. The Company has not elected a method and will only do so after completing their analysis of the GILTI provisions. Foreign Currency Staffing 360 Solutions, Inc. has an intercompany note due from Longbridge Recruitment 360 (U.K.) Limited (“Longbridge”), Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). This guidance will be effective for public entities for fiscal years beginning after December 15, 2018 including the interim periods within those fiscal years. Early application is permitted. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) Financing leases, similar to capital leases, which will require the recognition of an asset and liability, measured at the present value of the lease payments and (ii) Operating leases which will require the recognition of an asset and liability measured at the present value of the lease payments. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. For sale leaseback transactions, the sale will only be recognized if the criteria in the new revenue recognition standard are met. The Company is currently evaluating the impact of adopting this guidance.

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Loss Per Common Share	NOTE 3 – LOSS PER COMMON SHARE The Company utilizes the guidance per ASC 260, “Earnings per Share”. Basic earnings per share are calculated by dividing income available to stockholders by the weighted average number of common stock shares outstanding during each period. Our Series A preferred stock holders (related parties) receive certain dividends or dividend equivalents that are considered participating securities and our loss per share is computed using the two-class method. For Q2 2018 YTD and Q2 2017 YTD, pursuant to the two-class method, as a result of the net loss, losses were not allocated to the participating securities. Diluted earnings per share are computed using the weighted average number of common stock shares and dilutive common share equivalents outstanding during the period. Dilutive common stock equivalents consist of common shares issuable upon the conversion of preferred stock, convertible notes and the exercise of stock options and warrants (calculated using the modified treasury stock method). Such securities, shown below, presented on a common share equivalent basis and outstanding as of June 30, 2018 and July 1, 2017 have been excluded from the per share computations, since their inclusion would be anti-dilutive: June 30, July 1, 2018 2017 Convertible promissory notes — 253,885 Convertible preferred shares 43,239 43,239 Warrants 925,935 912,234 Restricted shares - unvested 565,932 271,852 Long term incentive plan (LTIP) 178,728 178,728 Options 125,400 125,460 Total 1,839,234 1,785,398

ACCOUNTS RECEIVABLE BASED FINAN

ACCOUNTS RECEIVABLE BASED FINANCING FACILITIES	6 Months Ended
	Jun. 30, 2018
Accounts Receivable Based Financing Activities [Abstract]
Accounts Receivable Based Financing Facilities	NOTE 4 – ACCOUNTS RECEIVABLE BASED FINANCING FACILITIES HSBC Invoice Finance (UK) Ltd – New Facility On February 8, 2018, CBS Butler, Longbridge and The JM Group, entered into a new arrangement with HSBC Invoice Finance (UK) Ltd (“HSBC”) which provides for HSBC to purchase the subsidiaries’ accounts receivable up to an aggregate amount of £11,500 across all three subsidiaries. The terms of the arrangement provide for HSBC to fund 90% of the purchased accounts receivable upfront and, a secured borrowing line of 70% of unbilled receivables capped at £1,000 (within the overall aggregate total facility of £11,500). The arrangement has an initial term of 12 months, with an automatic rolling three-month extension and carries a service charge of 1.80%. On June 28, 2018, the Company’s new subsidiary Clement May Limited (“CML”) entered into a new agreement with a minimum term of twelve months for purchase of debt (“APD”) with HSBC, joining CBS Butler, Longbridge and The JM Group (collectively, with CML, the “Borrowers”) as “Connected Clients” as defined in the APD. The new Connected Client APDs carry an aggregate Facility Limit of £20,000 across all Borrowers. The obligations of the Borrowers are secured by a fixed charge and a floating charge on the Borrowers’ respective accounts receivable and are subject to cross-company guarantees among the Borrowers. In addition, the secured borrowing line against unbilled receivables was increased to £1,500 for a period of 90 days. Under ASU 2016-16, “Statement of Cash Flows (Topic 230, Classification of Certain Cash Receipts and Cash Payments, a consensus of the FASB Emerging Issues Task Force ABN AMRO Commercial Finance In conjunction with the HSBC Invoice Finance (UK) Ltd – New Facility, on February 8, 2018, Longbridge and The JM Group terminated this facility and the remaining balance was paid in full. CBS Butler In conjunction with the HSBC Invoice Finance (UK) Ltd – New Facility, on February 8, 2018, CBS Butler terminated this facility and the remaining balance was paid in full.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	NOTE 5 – DEBT June 30, December 30, 2018 2017 Jackson Investment Group - related party $ 40,000 $ 40,000 HSBC Term Loan 2,047 — ABN AMRO — 254 Total Debt, Gross 42,047 40,254 Less: Debt Discount and Deferred Financing Costs (1,022 ) (1,260 ) Total Debt, Net 41,025 38,994 Less: Current Portion, Net (683 ) (245 ) Total Long-Term Debt, Net $ 40,342 $ 38,749 HSBC Term Loan On June 26, 2018, the Company’s UK subsidiary, Staffing 360 Solutions Limited (the “S360 Ltd”), entered into a term loan agreement (the “Term Loan”) with HSBC Bank plc (“HSBC plc”). The Term Loan was drawn down on June 28, 2018 in an original principal amount of £1,550 ($2,047) to fund the upfront cash consideration of the Clement May acquisition. The Term Loan matures on June 28, 2021, unless otherwise accelerated or terminated earlier. The interest rate on the Term Loan is 2.35% over the base rate of 0.5%, which is subject to periodic adjustment, and is payable in monthly installments of principal and interest. The obligations of S360 Ltd under the term Loan are secured by fixed and floating charges in favor of HSBC plc on all of S360 Ltd and its UK subsidiaries’ assets, undertakings, accounts receivable and certain other assets pursuant to the terms of the Term Loan agreement. Non-interest bearing convertible note - April 11, 2017 On April 11, 2017, the Company entered into a non-interest bearing convertible note for $477, whereby the Company received cash of $400, maturing in October 2017. The Company paid this in full on September 18, 2017. Jackson Investment Group Term Loan Note #2 – Related Party On April 5, 2017, the Company amended the note and warrant purchase agreement and entered into a second subordinated secured note for $1,650. Under the terms of this amended agreement, the Company issued to Jackson 59,397 shares of common stock, with an additional 74,184 shares of common stock that was issued after obtaining shareholder approval for issuance of shares to Jackson in excess of the 19.99% limit in June 2017. Also on April 5, 2017, the Company amended the Warrant to allow Jackson to purchase up to an additional 275,508 shares of common stock, modified the initial exercise price of the Warrant to $5.00 per share and modified the conversion price of accrued interest on the note issued to Jackson in January 2017 to $7.50. The Warrant was also amended to increase the amount of common stock issuable to Jackson pursuant to the anti-dilution clause contained therein. The second note accrues interest on the principal amount at a rate of 6% per annum and has a maturity date of June 8, 2019; however, in the event the Company satisfied all of its outstanding obligations with Midcap Financial Trust, the maturity date would have been adjusted to July 25, 2018. No interest or principal is payable on the second note until maturity. At any time during the term of the second note, upon notice to Jackson, the Company may also, at its option, redeem all or some of the then outstanding principal amount of the note by paying to Jackson an amount not less than $100 of the outstanding principal (and in multiples of $100), plus any accrued but unpaid interest and liquidated damages and other amounts due under the note. The second note’s principal is not convertible into shares of common stock; however, 50% of the accrued interest on the second note can be converted into shares of common stock, at the sole election of Jackson at maturity or in the event of a prepayment by the Company, at a conversion price equal to $7.50 per share. The proceeds of this transaction were used to redeem the remaining shares and conversion rights of the Series D Preferred Stock. The Company has accounted for these warrants as a liability under ASC 815-40 due to certain anti-dilution protection provisions. The Company has recorded a liability of $1,426 at December 30, 2017. One April 25, 2018, the Company and Jackson amended the Warrant to remove the anti-dilution clauses. Refer to Note 6 for further details. 8% Convertible Note (July 8, 2015) and 8% Convertible Note (February 8, 2016) On January 3, 2017, the Company entered into an amendment agreement pursuant to which, the parties refinanced an aggregate amount of $2,688 of indebtedness and extended all amortization payments for the two 8% convertible notes dated July 8, 2015 and February 8, 2016 (collectively, the “Amendment”) to October 1, 2018, which was approximately 21 months from the date of the refinancing. The Amendment had a new face value of $3,126, and an 8% interest rate per annum, with no interest payments due until October 1, 2017, payable quarterly thereafter, and an overall term of 21 months with principal due at maturity. The Amendment was convertible into shares of common stock at a price of $3.00 per share ($15 per shares after stock split in Q1 2018) at holder’s election, and the holder agreed to eliminate the 20% pre-payment penalty for an early redemption. In connection with the refinancing, the Company issued the holder 120,000 shares of common stock, valued at $498. The Amendment resulted in the extinguishment of the old notes of $2,688 and recording of the new debt and debt issue costs. The Company recorded a $870 loss upon extinguishment. On January 26, 2017, the Amendment was paid in full resulting a loss of $498. Series B Bonds The balance of $50 was paid in full in April 2017.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2018
Stockholders Equity Note [Abstract]
Equity	NOTE 6 – EQUITY Common Stock The Company issued the following shares of common stock during the six month period ended June 30, 2018: Shares issued to/for: Number of common shares issued Fair Value of shares issued Fair Value at Issuance (minimum and maximum per share) At-the-Market Facility 237,232 $ 629 $ 1.61 $ 3.59 Employees 85,000 137 1.61 1.61 Consultants 15,522 48 1.50 3.42 Acquisition 15,000 21 1.38 1.38 Board and Committee members 9,800 24 1.74 3.25 Reverse stock split (rounding up shares) 426 - - - 362,980 $ 859 Subsequent to June 30, 2018, the Company sold 400,000 shares of common stock through its at-the-market facility at a value of $1,449, and granted 5,600 shares of common stock valued $8 to the board of directors. Restricted Shares The Company has issued shares to employees and board and committee members under its 2015 Omnibus Incentive Plan and 2016 Omnibus Incentive Plan. Under these plans, the shares are restricted for a period of three years from issuance. As of June 30, 2018, the Company has a total of 565,932 the Company’s stock price on the date of issuance. The impact of forfeitures has historically been immaterial to the financial statements. The Company recorded compensation expense associated with these restricted shares of $235, $196, $480 and $369, for the periods ended Q2 2018, Q2 2017, Q2 2018 YTD and Q2 2017 YTD, respectively. Stock Options The Company recorded share based payment expense of $53, $105, $135 and $198 for the periods ended Q2 2018, Q2 2017, Q2 2018 YTD and Q2 2017 YTD, respectively. Convertible Preferred Shares Series A Preferred Stock – Related Party In the period ended Q2 2018 YTD and Q2 2017 YTD, the Company paid $100 and $0, respectively, in dividends to its Series A preferred stock holders. At July 1, 2017, the Company has accrued $100 with respect to Series A dividends payable to preferred stock holders. Series D Preferred Stock The Series D Preferred Stock contained beneficial conversion features; a portion was quantifiable at the date of issuance in the amount of $615, which was recognized immediately due to the immediate convertibility of the Series D Preferred Stock and that it had no true redemption date. The additional contingent beneficial conversion feature was quantifiable only at the date of each subsequent conversion. Both beneficial conversion features represent additional value to the holders. As such, they represent a dividend on the Series D Preferred Stock and recorded as a Deemed Dividend. These Deemed Dividends are presented on the Statement of Operations for purposes of calculation Earnings Per Share only and have no net impact on Shareholders’ Deficit. Deemed Dividends recorded were $0 and $2,009 for Q2 2018 YTD and Q2 2017 YTD, respectively. On April 5, 2017, the Company entered into an agreement with holders of the Series D Preferred shares to redeem the remaining 62 shares of Series D Preferred Stock and terminate all future conversion rights, in return for $1,500 in cash and 60,000 shares of common stock. Warrants The Company had accounted for the warrants issued to Jackson as a liability under ASC 815-40 due to certain anti-dilution protection provisions. The warrants issued to Jackson are considered to be Level 3 liabilities under ASC 820. On April 25

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7 – COMMITMENTS AND CONTINGENCIES Earn-out Liabilities and Stock Value Guarantees Pursuant to the acquisition of Control Solutions International, Inc. (“CSI”) on November 4, 2013, the purchase price included monthly cash payments to the former owner and shareholder of CSI for performance-based compensation equal to 20% of CSI’s consolidated gross profit from the date of closing through the end of the sixteenth quarter following the date of closing not to exceed a total of $2,100. During Q2 2018 and Q2 2017, the Company paid $0 and $24, respectively, towards the earn-out liability. During Q2 2018 YTD and Q2 2017 YTD, the Company paid $15 and $48, respectively, towards the earn-out liability No further payments are due. Pursuant to the acquisition of The JM Group on November 5, 2015, the purchase price includes a cash payment to the shareholders for performance-based compensation of (a) £850 if the gross profit for the 12 month period ending on the anniversary date of the date of completion (the “Anniversary TTM Gross Profit”) is equal to 90% or more of the gross profit for the twelve months ending October 31, 2015 (the “Completion TTM Gross Profit”); or (b) if the Anniversary TTM Gross Profit is less than 90% of the Completion TTM Gross Profit, a sum equal to £850 multiplied by the Anniversary TTM Gross Profit/Completion TTM Gross Profit. The Company recorded the maximum contingent liability amount of £850 ($1,180). At December 31, 2016, the remaining balance was $1,026 and was recorded in other current liabilities. While unpaid, the balance accrued interest at 10.25% per annum. The balance was paid in full in January 2017. Pursuant to the acquisition of Clement May on June 28, 2018, the purchase price includes an earnout payment of up to £500 to be paid on or around December 28, 2018; and deferred consideration of £350, the amount to be calculated and paid pursuant to the Share Purchase Agreement, to be paid on or around June 28, 2019. Legal Proceedings NewCSI, Inc. vs. Staffing 360 Solutions, Inc. On May 22, 2014, NewCSI, Inc. (“NewCSI”), the former owners of Control Solutions International, filed a complaint in the United States District Court for the Western District of Texas, Austin Division, against the Company arising from the terms of the Stock Purchase Agreement dated August 14, 2013 between the Company and NewCSI. NewCSI claims that the Company breached a provision of the Stock Purchase Agreement (“SPA § 2.7”) that required the Company to calculate and pay to NewCSI 50% of certain “Deferred Tax Assets” within 90 days after December 31, 2013, subject to certain criteria. The Complaint sought payment of the amount allegedly owed under SPA § 2.7 and acceleration of earn-out payments provided for in the Stock Purchase Agreement of $1,400, less amounts paid to date, and attorneys’ fees. On December 31, 2014, NewCSI filed an amended complaint to which NewCSI added an additional count asserting an “Adjustment Event” had occurred requiring an acceleration of earn-out payments provided for in the CSI Stock Purchase Agreement of $2,100, less amounts paid as of December 31, 2014 totaling $429 (balance of $1,671 at December 31, 2014), should the Company or CSI “be unable, or admit in writing its inability, to pay its debts as they mature.” The Company responded denying the material allegations and interposing numerous affirmative defenses, including that the earn-out liability was fully expensed at the time of the acquisition and fully accrued for on the Company’s balance sheet as part of the purchase accounting at the time of the acquisition. A the trial was held May 18-20, 2015. On May 20, 2015, the jury rendered a verdict, finding that the Company had not complied with SPA § 2.7 and owed $154, but that NewCSI had not proven that the Company or CSI had become unable to pay debts as they came due. On June 3, 2015, NewCSI filed a Motion for Entry of Judgment as Matter of Law seeking entry of a judgment in the amount of $154, plus accelerated earn-out payments in the amount of $1,152, plus statutory interest. NewCSI did not challenge the jury verdict on the ability to pay issue. Also on June 3, 2015, the Company filed a Motion for Entry of Judgment as a Matter of Law seeking entry of judgment against NewCSI on the jury’s finding that the Company had not complied with SPA § 2.7, or, in the alternative, for a reduction of damages to $154 and to hold that NewCSI may not be awarded accelerated earn-out payments as that would result in an illegal penalty. On October 21, 2015, judgment was entered in this action in favor of NewCSI and against the Company in the amount of $1,307, plus pre-judgment interest, post-judgment interest, and costs. On January 26, 2016, the District Court set the bond in respect of the NewCSI litigation at $1,384. The Company has filed a notice of appeal to the United States Court of Appeals for the Fifth Circuit (“Appellate Court”) seeking reversal of the judgment and posted a supersedeas bond to stay the execution of the judgment pending appeal. On April 18, 2016, the Court granted the NewCSI shareholders’ request for payment of attorneys’ fees, but reserved judgment on the amount of fees to award pending the outcome of the Company’s appeal. On November 3, 2016, oral arguments for the appeal were heard and on July 26, 2017, the Appellate Court affirmed the trial Court’s decision but left the legal fee award open for determination by further proceedings in the trial court. On August 29, 2017 the surety company released the supersedeas bond to the New CSI shareholders’ counsel, which was amount was approximately $5 less than the judgment amount with accumulated interest. Payment of this remaining balance has been made by the Company. On September 29, 2017 NewCSI filed a Supplemental Motion in the United States District Court for the Western District of Texas, Austin Division, seeking $629 in attorneys’ fees. The Company opposed this motion but the magistrate judge issued a report and recommendation on November 17, 2017 recommending an award of fees in the amount of $606. The Company filed an objection with the trial judge to the magistrate’s report and recommendation. On May 30, 2018 the trial judge issued an order adopting the report and recommendation of the magistrate judge and awarding NewCSI the amount of $606 in legal fees, plus interest at the statutory rate of 2.27% per annum. The Company paid $606 in full settlement of this matter in June 2018. Staffing 360 Solutions, Inc. v. Former Officers of Staffing 360 Solutions, Inc. On November 13, 2015, in a separate proceeding, Staffing 360 initiated an arbitration before JAMS entitled Staffing 360 Solutions, Inc. v. Former Officers of Staffing 360 Solutions, Inc. On July 20, 2016, the arbitrator decided in favor of both of the respondents’ motions. Further on September 21, 2016 the arbitrator rendered the final award, which was set at $1,433. The former officers brought an action in US District Court in New York City under the caption Dealy et al., v. Staffing 360 Solutions, Inc. .

SEGMENTS

SEGMENTS	6 Months Ended
	Jun. 30, 2018
Segments Geographical Areas [Abstract]
Segments	NOTE 8 – SEGMENTS The Company generated revenue and gross profit by segment as follows: Q2 2018 Q2 2017 Q2 2018 YTD Q2 2017 YTD Commercial Staffing - US $ 23,549 $ 23,308 $ 44,945 $ 45,719 Professional Staffing - US 14,066 12,232 28,733 23,928 Professional Staffing - UK 22,112 6,577 41,840 13,182 Total Revenue $ 59,727 $ 42,117 $ 115,518 $ 82,829 Commercial Staffing - US $ 3,917 $ 4,288 $ 7,815 $ 8,305 Professional Staffing - US 4,214 2,245 8,199 4,117 Professional Staffing - UK 3,751 1,391 7,449 2,828 Total Gross Profit $ 11,882 $ 7,924 $ 23,463 $ 15,250 Selling, general and administrative expenses $ (11,030 ) $ (6,439 ) $ (22,218 ) $ (13,562 ) Depreciation and amortization (712 ) (760 ) (1,510 ) (1,520 ) Interest expense (1,951 ) (580 ) (3,906 ) (1,082 ) Amortization of debt discount and deferred financing costs (115 ) (839 ) (237 ) (1,398 ) Loss on extinguishment of debt, net — — — (1,368 ) Change in fair value of warrant liability 341 287 879 195 Gain from sale of business 238 — 238 — Re-measurement loss on intercompany note (721 ) — (146 ) — Other (expense) income, net (9 ) (23 ) 241 (19 ) Loss Before Provision for Income Tax $ (2,077 ) $ (430 ) $ (3,196 ) $ (3,504 ) The following table disaggregates revenues by segments: Q2 2018 Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 43 $ 1,666 $ 1,180 $ 2,889 Temporary Revenue 23,506 12,400 20,932 56,838 Total $ 23,549 $ 14,066 $ 22,112 $ 59,727 Q2 2017 Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 12 $ 153 $ 629 $ 794 Temporary Revenue 23,296 12,079 5,948 41,323 Total $ 23,308 $ 12,232 $ 6,577 $ 42,117 Q2 2018 YTD Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 115 $ 3,173 $ 2,395 $ 5,683 Temporary Revenue 44,830 25,560 39,445 109,835 Total $ 44,945 $ 28,733 $ 41,840 $ 115,518 Q2 2017 YTD Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 44 $ 279 $ 1,256 $ 1,579 Temporary Revenue 45,675 23,649 11,926 81,250 Total $ 45,719 $ 23,928 $ 13,182 $ 82,829 As of June 30, 2018 and December 30, 2017, the Company has assets in the U.S., the U.K. and Canada as follows: June 30, December 30, 2018 2017 United States $ 42,971 $ 53,814 United Kingdom 39,948 32,861 Canada 51 73 Total Assets $ 82,970 $ 86,748

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Acquisitions	NOTE 9 – ACQUISITIONS In accordance with ASC 805, the Company accounts for acquisitions using the purchase method under which the acquisition purchase price is allocated to the assets acquired and liabilities assumed based upon their respective fair values. The Company utilizes management estimates and, in some instances, may retain the services of an independent third-party valuation firm to assist in determining the fair values of assets acquired, liabilities assumed and contingent consideration granted. Such estimates and valuations require the Company to make significant assumptions, including projections of future events and operating performance. In connection with the acquisition of Clement May, the Company recorded the following identifiable intangible assets, based on preliminary valuation. Clement May Goodwill $ 1,545 Intangible assets Tradenames $ 470 Non-compete 273 Customer Relationships 451 $ 1,194 Goodwill of Clement May is included in the Company’s Professional-UK reportable segment. These identified intangible assets are being amortized on a straight-line basis over their weighted average estimated useful life of 8.4 of $14,305 i The following table summarizes the final allocation of the purchase price to the estimated fair values of net assets acquired at the date of the acquisition: Clement May Purchase price $ 3,543 Less: Net assets acquired $ (804 ) Intangible assets (1,194 ) Goodwill $ 1,545 The Company recorded a total of $105 in third party expenses associated with consummating this acquisition, which are included in Selling, general and administrative expenses, excluding depreciation and amortization stated on the Consolidated Statement of Operations. The following unaudited pro forma consolidated results of operation have been prepared, as if the acquisition of FirstPro and CBS Butler had occurred as of June 1, 2016, and acquisition of Clement May acquired on January 1, 2017. Q2 2018 Q2 2017 Q2 2018 YTD Q2 2017 YTD Revenues $ 71,089 $ 70,280 $ 139,545 $ 140,668 Net loss from continuing operations (1,779 ) (780 ) (2,911 ) (4,296 )

OTHER RELATED PARTY TRANSACTION

OTHER RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Other Related Party Transactions	NOTE 10 – OTHER RELATED PARTY TRANSACTIONS In addition to the Series A Preferred Shares and Notes issued to Jackson, the following are other related party transactions: Board and Committee Members The Company had the following activity with its Board and Committee Members: Q2 2018 Q2 2017 Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Dimitri Villard $ 19 1,400 $ 2 $ 20 $ 19 5,200 $ 24 $ 17 Jeff Grout 19 1,400 2 20 19 5,200 24 17 Nick Florio 19 1,400 2 20 19 5,200 24 17 Alicia Barker 19 1,400 2 - - - - - $ 76 5,600 $ 8 $ 60 $ 57 15,600 $ 72 $ 51 Q2 2018 YTD Q2 2017 YTD Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Dimitri Villard $ 38 2,800 $ 7 $ 40 $ 31 13,500 $ 55 $ 34 Jeff Grout 38 2,800 7 40 31 13,500 55 34 Nick Florio 38 2,800 7 40 31 13,700 55 34 Alicia Barker 19 1,400 2 - - - - - $ 133 9,800 $ 23 $ 120 $ 93 40,700 $ 165 $ 102 The Company has no balances within accrued in accounts payable and accrued expenses – related parties account as of June 30, 2018. The Briand Separation Agreement The Company’s former employee, board member and officer resigned from his positions with the Company and subsidiaries. The Company entered into an agreement (the “Briand Separation Agreement”) with Mr. Briand dated December 21, 2017, with an effective date (“Separation Date”) of January 31, 2018, pursuant to which Mr. Briand may provide advisory services, if requested by the Company, through the effective date. The Company paid $18 in Q2 2018 to Mr. Briand as part of this separation agreement. The accrued balance due to Mr. Briand as of June 30, 2018 is $300. Appointment of Officers On March 28, 2018, the Company appointed Alicia Barker to fill the Class II director vacancy created by the departure of Mr. Briand earlier this year, such appointment to be effective April 1, 2018. Ms. Barker joined the company’s board of directors as an independent director and serves on the Board’s Compensation Committee and on the Nominating and Corporate Governance Committee. Effective July 1, 2018, the Company entered into an Employment Agreement with Alicia Barker that appointed her as the Company’s Chief Operating Officer. Ms. Barker will continue as a member of the Company’s board of directors, but effective with her appointment will no longer be a member of any Board committee, nor an independent member of the Board, bringing the number of independent directors to three of five Board members.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
	Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	NOTE 11 – SUPPLEMENTAL CASH FLOW INFORMATION Q2 2018 YTD Q2 2017 YTD Cash paid for: Interest $ 3,360 $ 827 Income taxes 98 130 Non-Cash Investing and Financing Activities: Deferred purchase price of UK factoring facility $ 3,585 $ — Shares issued in connection with acquisition of business 21 — Shares issued in connection with convertible note — 498 Shares issued in connection with Jackson term loan — 1,198 Shares issued in connection with Series D payoff — 208 Warrants issued in connection with Jackson term loan — 1,614 Deemed Dividends 2,009

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation These condensed consolidated financial statements and related notes are presented in accordance with generally accepted accounting principles in the United States (“GAAP”), expressed in U.S. dollars. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 30, 2017, the transition period ended December 31, 2016 and fiscal year ended May 31, 2016, which are included in the Company’s December 30, 2017 Form 10-K, filed with the United States Securities and Exchange Commission on March 29, 2018. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the period ended June 30, 2018 are not necessarily indicative of results for the entire year ending December 29, 2018. This report is for the periods April 1, 2018 to June 30, 2018 (“Q2 2018”), April 2, 2017 to July 1, 2017 (“Q2 2017”), December 31, 2017 to June 30, 2018 (“Q2 2018 YTD”) and January 1, 2017 to July 1, 2017 (“Q2 2017 YTD”).
Clement May Acquisition	Clement May Acquisition On June 28, 2018, the Company and Longbridge Recruitment 360 Limited (“Longbridge”), a wholly-owned subsidiary of the Company, entered into share purchase agreements (“Share Purchase Agreements”) to acquire all of the share capital of Clement May Limited (“CML”). Consideration for the acquisition of all the shares was (i) an aggregate cash payment of £1,550 ($2,047), (ii) 15,000 shares of the Company’s common stock, (iii) the assignment of certain outstanding debt owed to the CML Majority Holder to the Principal as set forth in that Share Purchase Agreement, (iv) an earn-out payment of up to £500, the amount to be calculated pursuant to that Share Purchase Agreement and to be paid on or around December 28, 2018, and (v) deferred consideration of £350, to be paid on or around June 28, 2019, depending on the satisfaction of certain conditions set forth in that Share Purchase Agreement. To finance the above transaction, the Company entered into a term loan with HSBC Bank plc. Refer to Note 5 for further details.
PeopleServe Disposition	PeopleServe Disposition On June 6, 2018, the Company divested the stock of PeopleServe Inc., and PeopleServe PRS, Inc. for a total consideration of $1,502, net of $567 that was remitted back to the buyer on July 31, 2018 in connection with a net working capital true up. The Company recorded a gain of $238 from sale of the business.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers for all open contracts and related amendments as of January 1, 2018 using the modified retrospective method. The adoption had no impact to the reported results. Results for reporting periods beginning after January 1, 2018 will be presented under ASC 606, while the comparative information will not be restated and will continue to be reported under the accounting standards in effect for those periods. The Company accounts for revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered. The Company has primarily two main forms of revenue – temporary contractor revenue and permanent placement revenue. Temporary contractor revenue is accounted for as a single performance obligation satisfied over time because the customer simultaneously receives and consumes the benefits of the Company’s performance on an hourly basis. The contracts stipulate weekly billing and the Company has elected the “as invoiced” practical expedient to recognize revenue based on the hours incurred at the contractual rate as we have the right to payment in an amount that corresponds directly with the value of performance completed to date. Permanent placement revenue is recognized on the date the candidate’s full-time employment with the customer has commenced. The customer is invoiced on the start date, and the contract stipulates payment due under varying terms, typically 30 days. The contract with the customer stipulates a guarantee period whereby the customer may be refunded if the employee is terminated within a short period time, however this has historically been infrequent, and immaterial upon occurrence. As such, the Company’s performance obligations are satisfied upon commencement of the employment, at which point control has transferred to the customer.
Reclassifications	Reclassifications We may make certain reclassifications to prior period amounts to conform with the current year’s presentation. These reclassifications did not have a material effect on our condensed consolidated statement of financial position, results of operations or cash flows.
Income Taxes	Income Taxes The Company's provision for income taxes is based upon an estimated annual tax rate for the year applied to federal, state and foreign income. On a quarterly basis, the annual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. The Company’s effective tax rate may change from period to period based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, state and local income taxes, and tax audit settlements. The effective income tax rate was 2.52%, 12.8%, 11.1% and 8% for the period ending Q2 2018, Q2 2017, Q2 2018 YTD and Q2 2017 YTD, respectively. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was signed into law making significant changes to the Internal Revenue Code. The changes include, but are not limited to, a U.S. corporate tax rate decrease from 35% to 21 The Company remeasured domestic deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally the 21% rate imposed by the Tax Act. The Company recorded an expense of $3.7 million to reduce the net deferred tax assets, along with a corresponding benefit for the reduction of the valuation allowance recorded against At June 30, 2018, in accordance with SAB 118, the Company has not completed its accounting for the tax effects of the one-time transition tax imposed by the Tax Act. In order to determine the amount of the liability with respect to the one-time transition tax, the Company must determine, in addition to other factors, the amount of post-1986 Earnings & Profits of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. In order to quantify the liability, we are awaiting further interpretative guidance, continuing to assess available tax methods and elections, and continuing to gather additional information to more precisely compute the amount of the transition tax. Therefore, we have not recorded an estimate of the transition tax in our financial statements. In addition, the Company is continuing to evaluate whether Global Intangible Low Tax Income taxes (“GILTI”) are recorded as a current period expense when incurred or whether such amounts should be factored into the Company's measurement of its deferred taxes. As a result, the Company has not included an estimate of the tax impacts related to GILTI in the second quarter of 2018. The Company has not elected a method and will only do so after completing their analysis of the GILTI provisions.
Foreign Currency	Foreign Currency Staffing 360 Solutions, Inc. has an intercompany note due from Longbridge Recruitment 360 (U.K.) Limited (“Longbridge”),
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). This guidance will be effective for public entities for fiscal years beginning after December 15, 2018 including the interim periods within those fiscal years. Early application is permitted. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) Financing leases, similar to capital leases, which will require the recognition of an asset and liability, measured at the present value of the lease payments and (ii) Operating leases which will require the recognition of an asset and liability measured at the present value of the lease payments. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. For sale leaseback transactions, the sale will only be recognized if the criteria in the new revenue recognition standard are met. The Company is currently evaluating the impact of adopting this guidance.

LOSS PER COMMON SHARE (Tables)

LOSS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Loss Per Common Share	The Company utilizes the guidance per ASC 260, “Earnings per Share”. Basic earnings per share are calculated by dividing income available to stockholders by the weighted average number of common stock shares outstanding during each period. Our Series A preferred stock holders (related parties) receive certain dividends or dividend equivalents that are considered participating securities and our loss per share is computed using the two-class method. For Q2 2018 YTD and Q2 2017 YTD, pursuant to the two-class method, as a result of the net loss, losses were not allocated to the participating securities. Diluted earnings per share are computed using the weighted average number of common stock shares and dilutive common share equivalents outstanding during the period. Dilutive common stock equivalents consist of common shares issuable upon the conversion of preferred stock, convertible notes and the exercise of stock options and warrants (calculated using the modified treasury stock method). Such securities, shown below, presented on a common share equivalent basis and outstanding as of June 30, 2018 and July 1, 2017 have been excluded from the per share computations, since their inclusion would be anti-dilutive: June 30, July 1, 2018 2017 Convertible promissory notes — 253,885 Convertible preferred shares 43,239 43,239 Warrants 925,935 912,234 Restricted shares - unvested 565,932 271,852 Long term incentive plan (LTIP) 178,728 178,728 Options 125,400 125,460 Total 1,839,234 1,785,398

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Debt	June 30, December 30, 2018 2017 Jackson Investment Group - related party $ 40,000 $ 40,000 HSBC Term Loan 2,047 — ABN AMRO — 254 Total Debt, Gross 42,047 40,254 Less: Debt Discount and Deferred Financing Costs (1,022 ) (1,260 ) Total Debt, Net 41,025 38,994 Less: Current Portion, Net (683 ) (245 ) Total Long-Term Debt, Net $ 40,342 $ 38,749

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Jun. 30, 2018
Stockholders Equity Note [Abstract]
Schedule of Stockholders Equity	The Company issued the following shares of common stock during the six month period ended June 30, 2018: Shares issued to/for: Number of common shares issued Fair Value of shares issued Fair Value at Issuance (minimum and maximum per share) At-the-Market Facility 237,232 $ 629 $ 1.61 $ 3.59 Employees 85,000 137 1.61 1.61 Consultants 15,522 48 1.50 3.42 Acquisition 15,000 21 1.38 1.38 Board and Committee members 9,800 24 1.74 3.25 Reverse stock split (rounding up shares) 426 - - - 362,980 $ 859

SEGMENTS (Tables)

SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Segments Geographical Areas [Abstract]
Schedule of Revenues Gross Profit and Assets by Geographical Segment	The Company generated revenue and gross profit by segment as follows: Q2 2018 Q2 2017 Q2 2018 YTD Q2 2017 YTD Commercial Staffing - US $ 23,549 $ 23,308 $ 44,945 $ 45,719 Professional Staffing - US 14,066 12,232 28,733 23,928 Professional Staffing - UK 22,112 6,577 41,840 13,182 Total Revenue $ 59,727 $ 42,117 $ 115,518 $ 82,829 Commercial Staffing - US $ 3,917 $ 4,288 $ 7,815 $ 8,305 Professional Staffing - US 4,214 2,245 8,199 4,117 Professional Staffing - UK 3,751 1,391 7,449 2,828 Total Gross Profit $ 11,882 $ 7,924 $ 23,463 $ 15,250 Selling, general and administrative expenses $ (11,030 ) $ (6,439 ) $ (22,218 ) $ (13,562 ) Depreciation and amortization (712 ) (760 ) (1,510 ) (1,520 ) Interest expense (1,951 ) (580 ) (3,906 ) (1,082 ) Amortization of debt discount and deferred financing costs (115 ) (839 ) (237 ) (1,398 ) Loss on extinguishment of debt, net — — — (1,368 ) Change in fair value of warrant liability 341 287 879 195 Gain from sale of business 238 — 238 — Re-measurement loss on intercompany note (721 ) — (146 ) — Other (expense) income, net (9 ) (23 ) 241 (19 ) Loss Before Provision for Income Tax $ (2,077 ) $ (430 ) $ (3,196 ) $ (3,504 ) As of June 30, 2018 and December 30, 2017, the Company has assets in the U.S., the U.K. and Canada as follows: June 30, December 30, 2018 2017 United States $ 42,971 $ 53,814 United Kingdom 39,948 32,861 Canada 51 73 Total Assets $ 82,970 $ 86,748
Disaggregation of Revenues by Segments	The following table disaggregates revenues by segments: Q2 2018 Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 43 $ 1,666 $ 1,180 $ 2,889 Temporary Revenue 23,506 12,400 20,932 56,838 Total $ 23,549 $ 14,066 $ 22,112 $ 59,727 Q2 2017 Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 12 $ 153 $ 629 $ 794 Temporary Revenue 23,296 12,079 5,948 41,323 Total $ 23,308 $ 12,232 $ 6,577 $ 42,117 Q2 2018 YTD Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 115 $ 3,173 $ 2,395 $ 5,683 Temporary Revenue 44,830 25,560 39,445 109,835 Total $ 44,945 $ 28,733 $ 41,840 $ 115,518 Q2 2017 YTD Commercial Staffing - US Professional Staffing - US Professional Staffing - UK Total Permanent Revenue $ 44 $ 279 $ 1,256 $ 1,579 Temporary Revenue 45,675 23,649 11,926 81,250 Total $ 45,719 $ 23,928 $ 13,182 $ 82,829

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of Identifiable Intangible Assets Acquisition	In connection with the acquisition of Clement May, the Company recorded the following identifiable intangible assets, based on preliminary valuation. Clement May Goodwill $ 1,545 Intangible assets Tradenames $ 470 Non-compete 273 Customer Relationships 451 $ 1,194
Summary of Final Allocation of Purchase Price to Estimated Fair Values of Net Assets Acquired	The following table summarizes the final allocation of the purchase price to the estimated fair values of net assets acquired at the date of the acquisition: Clement May Purchase price $ 3,543 Less: Net assets acquired $ (804 ) Intangible assets (1,194 ) Goodwill $ 1,545
Schedule of Unaudited Pro Forma Consolidated Results of Operations	The following unaudited pro forma consolidated results of operation have been prepared, as if the acquisition of FirstPro and CBS Butler had occurred as of June 1, 2016, and acquisition of Clement May acquired on January 1, 2017. Q2 2018 Q2 2017 Q2 2018 YTD Q2 2017 YTD Revenues $ 71,089 $ 70,280 $ 139,545 $ 140,668 Net loss from continuing operations (1,779 ) (780 ) (2,911 ) (4,296 )

OTHER RELATED PARTY TRANSACTI24

OTHER RELATED PARTY TRANSACTIONS (Table)	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Summary of Other Related Party Transactions	The Company had the following activity with its Board and Committee Members: Q2 2018 Q2 2017 Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Dimitri Villard $ 19 1,400 $ 2 $ 20 $ 19 5,200 $ 24 $ 17 Jeff Grout 19 1,400 2 20 19 5,200 24 17 Nick Florio 19 1,400 2 20 19 5,200 24 17 Alicia Barker 19 1,400 2 - - - - - $ 76 5,600 $ 8 $ 60 $ 57 15,600 $ 72 $ 51 Q2 2018 YTD Q2 2017 YTD Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Cash Compensation Shares Issued Value of Shares Issued Compensation Expense Recognized Dimitri Villard $ 38 2,800 $ 7 $ 40 $ 31 13,500 $ 55 $ 34 Jeff Grout 38 2,800 7 40 31 13,500 55 34 Nick Florio 38 2,800 7 40 31 13,700 55 34 Alicia Barker 19 1,400 2 - - - - - $ 133 9,800 $ 23 $ 120 $ 93 40,700 $ 165 $ 102

SUPPLEMENTAL CASH FLOW INFORM25

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow Supplemental Information	Q2 2018 YTD Q2 2017 YTD Cash paid for: Interest $ 3,360 $ 827 Income taxes 98 130 Non-Cash Investing and Financing Activities: Deferred purchase price of UK factoring facility $ 3,585 $ — Shares issued in connection with acquisition of business 21 — Shares issued in connection with convertible note — 498 Shares issued in connection with Jackson term loan — 1,198 Shares issued in connection with Series D payoff — 208 Warrants issued in connection with Jackson term loan — 1,614 Deemed Dividends 2,009

ORGANIZATION AND DESCRIPTION 26

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual)	Jan. 03, 2018	Sep. 17, 2015	Jun. 30, 2018
Business Combinations [Abstract]
Stockholders' Equity, Reverse Stock Split			one-for-ten reverse stock split on September 17, 2015 and a one-for-five reverse stock split on January 3, 2018
Reverse stock split, ratio	0.2	0.1

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) £ in Thousands, $ in Thousands	Dec. 28, 2018GBP (£)	Jun. 28, 2018USD ($)shares	Jun. 28, 2018GBP (£)shares	Jun. 30, 2018USD ($)	Jul. 01, 2017USD ($)	Jun. 30, 2018USD ($)	Jul. 01, 2017USD ($)	Dec. 29, 2018	Dec. 30, 2017USD ($)	Dec. 28, 2019GBP (£)	Jul. 31, 2018USD ($)	Jun. 06, 2018USD ($)
Accounting Policies [Line Items]
Gain from sale of business				$ 238	$ 0	$ 238	$ 0
Revenue				$ 59,727	$ 42,117	$ 115,518	$ 82,829
Customer contract stipulates payment due				30 days		30 days
Effective income tax rate				2.52%	12.80%	11.10%	8.00%
U.S. corporate tax rate									35.00%
Tax expense effect on net deferred tax assets									$ 3,700
Foreign currency remeasurement loss				$ 721	$ 0	$ 146	$ 0
Temporary Contractor Revenue [Member]
Accounting Policies [Line Items]
Revenue				56,838	41,323	109,835	81,250
Permanent Placement Revenue [Member]
Accounting Policies [Line Items]
Revenue				$ 2,889	$ 794	5,683	$ 1,579
PeopleServe Inc., and PeopleServe PRS, Inc. [Member]
Accounting Policies [Line Items]
Total consideration received												$ 1,502
Gain from sale of business						$ 238
PeopleServe Inc., and PeopleServe PRS, Inc. [Member] | Subsequent Event [Member]
Accounting Policies [Line Items]
Consideration remitted back to buyer											$ 567
Scenario, Plan [Member]
Accounting Policies [Line Items]
U.S. corporate tax rate								21.00%
Clement May Limited [Member]
Accounting Policies [Line Items]
Aggregate cash payment		$ 2,047	£ 1,550
Number of common stock issued | shares		15,000	15,000
Contingent consideration arrangements, description						Consideration for the acquisition of all the shares was (i) an aggregate cash payment of £1,550 ($2,047), (ii) 15,000 shares of the Company’s common stock, (iii) the assignment of certain outstanding debt owed to the CML Majority Holder to the Principal as set forth in that Share Purchase Agreement, (iv) an earn-out payment of up to £500, the amount to be calculated pursuant to that Share Purchase Agreement and to be paid on or around December 28, 2018, and (v) deferred consideration of £350, to be paid on or around June 28, 2019, depending on the satisfaction of certain conditions set forth in that Share Purchase Agreement.
Clement May Limited [Member] | Scenario, Forecast [Member]
Accounting Policies [Line Items]
Payments for earn-out | £	£ 500
Deferred consideration | £										£ 350

LOSS PER COMMON SHARE (Details)

LOSS PER COMMON SHARE (Details) - shares	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	1,839,234	1,785,398
Convertible promissory notes [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share		253,885
Convertible preferred shares [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	43,239	43,239
Warrants [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	925,935	912,234
Restricted shares - unvested [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	565,932	271,852
Long term incentive plan (LTIP) [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	178,728	178,728
Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	125,400	125,460

ACCOUNTS RECEIVABLE BASED FIN29

ACCOUNTS RECEIVABLE BASED FINANCING FACILITIES- HSBC Invoice Finance (UK) Ltd New Facility (Details Textual) - HSBC Invoice Finance (UK) Ltd - New Facility [Member] - CBS Butler, Longbridge and The JM Group [Member]	Jun. 28, 2018GBP (£)	Feb. 08, 2018GBP (£)Subsidiary
Accounts Receivable Based Financing Activities [Line Items]
Lending facility		£ 11,500,000
Number of subsidiaries | Subsidiary		3
Factoring Arrangement Advance Percentage Eligible Receivable		90.00%
Percentage of secured borrowing line of unbilled receivables		70.00%
Unbilled receivables, maximum secured borrowing		£ 1,000,000
Arrangement initial term		12 months
Arrangement automatic rolling extension period		3 months
Percentage of service charge		1.80%
Clement May Limited [Member] | Agreement Purchase Debt [Member]
Accounts Receivable Based Financing Activities [Line Items]
Lending facility	£ 20,000,000
Unbilled receivables, maximum secured borrowing	£ 1,500,000
Minimum agreement term for purchase of debt	12 months
Unbilled receivables period	90 days

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Debt Instrument [Line Items]
Debt instrument	$ 42,047	$ 40,254
Less: Debt Discount and Deferred Financing Costs	(1,022)	(1,260)
Total Debt, Net	41,025	38,994
Less: Current Portion, Net	(683)	(245)
Total Long-Term Debt, Net	40,342	38,749
HSBC Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument	2,047	0
Jackson Investment Group - related party [Member]
Debt Instrument [Line Items]
Debt instrument	40,000	40,000
ABN AMRO [Member]
Debt Instrument [Line Items]
Debt instrument	$ 0	$ 254

DEBT (Details Textual)

DEBT (Details Textual) $ / shares in Units, £ in Thousands

Jun. 28, 2018USD ($)

Jun. 28, 2018GBP (£)

Apr. 11, 2017USD ($)

Apr. 05, 2017USD ($)$ / sharesshares

Jan. 26, 2017USD ($)

Jan. 03, 2017USD ($)$ / sharesshares

Apr. 30, 2017USD ($)

Jun. 30, 2018USD ($)

Jul. 01, 2017USD ($)

Jun. 30, 2018USD ($)shares

Jul. 01, 2017USD ($)

Mar. 31, 2018$ / shares

Dec. 30, 2017USD ($)

Jan. 31, 2017$ / shares

Debt Instrument [Line Items]

Proceeds from convertible notes

$ 400,000

Shares issued, shares | shares

362,980

Warrant liability

$ 0

$ 0

$ 1,426,000

Loss on extinguishment of debt

$ 0

$ 0

$ 0

(1,368,000)

Repayments of bonds

$ 50,000

8% Convertible Note (July 8, 2015) and 8% Convertible Note (February 8, 2016) [Member]

Debt Instrument [Line Items]

Debt Instrument, Maturity Date

Oct. 1, 2018

Debt Instrument, Interest Rate, Stated Percentage

8.00%

Debt Instrument Face Amount

$ 3,126,000

Debt Instrument, conversion price | $ / shares

$ 3

Debt instrument refinanced aggregate amount

$ 2,688,000

Financing Original Issue Term

21 months

Debt instrument, payment terms

No interest payments due until October 1, 2017, payable quarterly thereafter, and an overall term of 21 months with principal due at maturity.

Debt instrument convertible, conversion price after stock split | $ / shares

$ 15

Debt instrument percentage of prepayment penalty for early redemption

20.00%

Common stock issued to holder | shares

120,000

Common stock issued to holder, value

$ 498,000

Extinguishment of Debt, Amount

2,688,000

Loss on extinguishment of debt

$ (498,000)

$ (870,000)

Jackson Investment Group, LLC [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

6.00%

Jackson Investment Group, LLC [Member] | Common Stock [Member]

Debt Instrument [Line Items]

Debt Instrument, conversion price | $ / shares

$ 7.50

Non-interest Bearing Convertible Note - April 11, 2017 [Member]

Debt Instrument [Line Items]

Convertible Notes Payable

$ 477,000

Proceeds from convertible notes

$ 400,000

Convertible notes, maturity date

2017-10

Convertible bonds - Series B [Member]

Debt Instrument [Line Items]

Repayments of bonds

$ 50,000

HSBC Term Loan [Member]

Debt Instrument [Line Items]

Proceeds from credit agreement

$ 2,047,000

£ 1,550

Debt Instrument, Maturity Date

Jun. 28, 2021

Debt Instrument, Interest Rate, Stated Percentage

2.35%

2.35%

Debt Instrument Basis Spread On Variable Rate

0.50%

0.50%

Jackson Investment Group Term Loan Note #2 - Related Party [Member]

Debt Instrument [Line Items]

Debt Instrument, Maturity Date

Jun. 8, 2019

Debt Instrument Face Amount

$ 1,650,000

Shares issued, shares | shares

59,397

Additional stock issued during period shares to be issued in excess percentage | shares

74,184

Minimum threshold limit of ownership interest percentage

19.99%

Additional stock issued during period shares new issues | shares

275,508

Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares

$ 5

Debt Instrument, conversion price | $ / shares

$ 7.50

Interest or principal payment

$ 0

Restated debt instrument, maturity date

Jul. 25, 2018

Redemption of outstanding principal amount, multiples

$ 100,000

Redemption of aggregate principal amount of outstanding notes, description

At any time during the term of the second note, upon notice to Jackson, the Company may also, at its option, redeem all or some of the then outstanding principal amount of the note by paying to Jackson an amount not less than $100 of the outstanding principal (and in multiples of $100), plus any accrued but unpaid interest and liquidated damages and other amounts due under the note.

Percentage of accrued interest convertible into shares of common stock

50.00%

Warrant liability

$ 1,426,000

Jackson Investment Group Term Loan Note #2 - Related Party [Member] | Minimum [Member]

Debt Instrument [Line Items]

Redemption of outstanding principal amount

$ 100,000

EQUITY (Details)

EQUITY (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Stockholders Equity [Line Items]
Number of common shares issued | shares	362,980
Fair Value of shares issued | $	$ 859
At-the-Market Facility [Member]
Stockholders Equity [Line Items]
Number of common shares issued | shares	237,232
Fair Value of shares issued | $	$ 629
At-the-Market Facility [Member] | Minimum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 1.61
At-the-Market Facility [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 3.59
Reverse Stock Split [Member]
Stockholders Equity [Line Items]
Number of common shares issued | shares	426
Acquisition [Member]
Stockholders Equity [Line Items]
Number of common shares issued | shares	15,000
Fair Value of shares issued | $	$ 21
Acquisition [Member] | Minimum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 1.38
Acquisition [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 1.38
Employees [Member]
Stockholders Equity [Line Items]
Number of common shares issued | shares	85,000
Fair Value of shares issued | $	$ 137
Employees [Member] | Minimum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 1.61
Employees [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 1.61
Consultants [Member]
Stockholders Equity [Line Items]
Number of common shares issued | shares	15,522
Fair Value of shares issued | $	$ 48
Consultants [Member] | Minimum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 1.50
Consultants [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 3.42
Board and Committee members [Member]
Stockholders Equity [Line Items]
Number of common shares issued | shares	9,800
Fair Value of shares issued | $	$ 24
Board and Committee members [Member] | Minimum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 1.74
Board and Committee members [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Fair Value at Issuance (per share)	$ 3.25

EQUITY (Details Textual)

EQUITY (Details Textual) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 10, 2018	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Apr. 05, 2017
Stockholders Equity [Line Items]
Shares issued, shares				362,980
Stock issued				$ 859
Stock based compensation				663	$ 618
Dividends paid				100
Deemed dividends		$ 0	$ 1,129	0	2,009
Change in fair value of warrant liability		341	287	879	195
Level 3 [Member]
Stockholders Equity [Line Items]
Change in fair value of warrant liability		341	287	879	195
Series A Preferred Stock - Related Party [Member]
Stockholders Equity [Line Items]
Dividends paid				100	0
Preferred stock accrued dividends			100		100
Series D Preferred Stock [Member]
Stockholders Equity [Line Items]
Temporary Equity Beneficial Conversion Feature		615		615
Deemed dividends				0	2,009
Redemption of remaining shares						62
Termination of future conversion rights for cash						$ 1,500
Series D Preferred Stock [Member] | Common Stock [Member]
Stockholders Equity [Line Items]
Termination of future conversion rights for shares						60,000
Stock Options [Member]
Stockholders Equity [Line Items]
Stock based compensation		53	105	$ 135	198
2015 And 2016 Omnibus Incentive Plan [Member] | Restricted Shares [Member]
Stockholders Equity [Line Items]
Share-based Compensation arrangement by share-based payment award, expiration period				3 years
Stock based compensation		$ 235	$ 196	$ 480	$ 369
2015 And 2016 Omnibus Incentive Plan [Member] | Employees and Board and Committee Members [Member] | Restricted Shares [Member]
Stockholders Equity [Line Items]
Unvested shares issued				565,932
At-the-Market Facility [Member]
Stockholders Equity [Line Items]
Shares issued, shares				237,232
Stock issued				$ 629
Subsequent Event [Member] | Board of Directors [Member]
Stockholders Equity [Line Items]
Shares issued, shares	5,600
Stock issued	$ 8
Subsequent Event [Member] | At-the-Market Facility [Member]
Stockholders Equity [Line Items]
Shares issued, shares	400,000
Stock issued	$ 1,449

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Earn-out Liabilities and Stock Value Guarantees (Details Textual)	Nov. 04, 2013USD ($)	Jun. 30, 2018USD ($)	Jul. 01, 2017USD ($)	Jun. 30, 2018USD ($)	Jul. 01, 2017USD ($)	Oct. 31, 2015GBP (£)	Jun. 28, 2018GBP (£)	Dec. 31, 2016USD ($)	Oct. 31, 2015USD ($)	Oct. 31, 2015GBP (£)
Commitments And Contingencies [Line Items]
Payments To Earn Out Agreement				$ 165,000	$ 1,075,000
Performance Based Compensation Percentage Of Gross Profit Below Threshold						90.00%
CSI Acquisition [Member]
Commitments And Contingencies [Line Items]
Performance Based Compensation Percentage Of Gross Profit Above Threshold	20.00%
Business Combination Maximum Contingent Consideration	$ 2,100,000
Payments To Earn Out Agreement		$ 0	$ 24,000	$ 15,000	$ 48,000
JM Group Acquisition [Member]
Commitments And Contingencies [Line Items]
Performance Based Compensation Percentage Of Gross Profit Above Threshold						90.00%
Performance based compensation, gross profit threshold | £						£ 850,000
Business Combination, Contingent Consideration, Liability									$ 1,180,000	£ 850,000
JM Group Acquisition [Member] | Other Current Liabilities [Member]
Commitments And Contingencies [Line Items]
Business Combination, Contingent Consideration, Liability								$ 1,026,000
Business Combination Contingent Consideration Percentage Of Accrued Interest Rate On Liability								10.25%
Clement May Limited [Member] | Share Purchase Agreement [Member]
Commitments And Contingencies [Line Items]
Business combination deferred consideration | £							£ 350,000
Clement May Limited [Member] | Share Purchase Agreement [Member] | Maximum [Member]
Commitments And Contingencies [Line Items]
Business combination earn out payment | £							£ 500,000

COMMITMENTS AND CONTINGENCIES35

COMMITMENTS AND CONTINGENCIES - Legal Proceedings (Details Textual) - USD ($) $ in Thousands

May 30, 2018

Nov. 17, 2017

Sep. 29, 2017

Aug. 29, 2017

Sep. 21, 2016

Jan. 26, 2016

Oct. 21, 2015

Jun. 03, 2015

May 20, 2015

Aug. 14, 2013

Aug. 31, 2017

Jun. 30, 2018

Jul. 01, 2017

Dec. 31, 2014

Commitments And Contingencies [Line Items]

Payments To Earn Out Agreement

$ 165

$ 1,075

Purchase agreement commitment earn out amount

$ 2,100

Loss Contingency, Final Award

$ 1,433

Loss contingency, amount paid

$ 1,582

NewCSI Inc [Member]

Commitments And Contingencies [Line Items]

Payments To Earn Out Agreement

$ 1,400

Loss Contingency Damages Sought Deferred Tax Assets Percentage

50.00%

Acceleration of Earn Out Payments Amount

$ 1,152

429

Purchase agreement commitment earn out amount remaining balance

$ 1,671

Damage sought, deferred tax asset

154

$ 154

Litigation Settlement, Amount

$ 1,384

$ 1,307

$ 154

$ 606

Remaining judgment amount to be paid

$ 5

Litigation settlement attorney's seeking fees

$ 629

Litigation settlement judge recommended award fees

$ 606

Litigation settlement legal fees

$ 606

Litigation settlement statutory interest rate percentage

2.27%

SEGMENTS (Details)

SEGMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Revenues From External Customers And Long Lived Assets [Line Items]
Total Revenue	$ 59,727	$ 42,117	$ 115,518	$ 82,829
Total Gross Profit	11,882	7,924	23,463	15,250
Selling, general and administrative expenses	(11,030)	(6,439)	(22,218)	(13,562)
Depreciation and amortization	(712)	(760)	(1,510)	(1,520)
Interest expense	(1,951)	(580)	(3,906)	(1,082)
Amortization of debt discount and deferred financing costs	(115)	(839)	(237)	(1,398)
Loss on extinguishment of debt, net	0	0	0	(1,368)
Change in fair value of warrant liability	341	287	879	195
Gain from sale of business	238	0	238	0
Re-measurement loss on intercompany note	(721)	0	(146)	0
Other (expense) income, net	(9)	(23)	241	(19)
Loss Before Provision for Income Tax	(2,077)	(430)	(3,196)	(3,504)
Total Assets	82,970		82,970		$ 86,748
UNITED STATES [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Total Assets	42,971		42,971		53,814
UNITED STATES [Member] | Commercial Staffing [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Total Revenue	23,549	23,308	44,945	45,719
Total Gross Profit	3,917	4,288	7,815	8,305
UNITED STATES [Member] | Professional Staffing [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Total Revenue	14,066	12,232	28,733	23,928
Total Gross Profit	4,214	2,245	8,199	4,117
UNITED KINGDOM [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Total Assets	39,948		39,948		32,861
UNITED KINGDOM [Member] | Professional Staffing [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Total Revenue	22,112	6,577	41,840	13,182
Total Gross Profit	3,751	$ 1,391	7,449	$ 2,828
CANADA [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Total Assets	$ 51		$ 51		$ 73

SEGMENTS (Details 1)

SEGMENTS (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 59,727	$ 42,117	$ 115,518	$ 82,829
Temporary Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	56,838	41,323	109,835	81,250
Permanent Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	2,889	794	5,683	1,579
UNITED STATES [Member] | Commercial Staffing [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	23,549	23,308	44,945	45,719
UNITED STATES [Member] | Commercial Staffing [Member] | Temporary Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	23,506	23,296	44,830	45,675
UNITED STATES [Member] | Commercial Staffing [Member] | Permanent Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	43	12	115	44
UNITED STATES [Member] | Professional Staffing [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	14,066	12,232	28,733	23,928
UNITED STATES [Member] | Professional Staffing [Member] | Temporary Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	12,400	12,079	25,560	23,649
UNITED STATES [Member] | Professional Staffing [Member] | Permanent Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	1,666	153	3,173	279
UNITED KINGDOM [Member] | Professional Staffing [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	22,112	6,577	41,840	13,182
UNITED KINGDOM [Member] | Professional Staffing [Member] | Temporary Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	20,932	5,948	39,445	11,926
UNITED KINGDOM [Member] | Professional Staffing [Member] | Permanent Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 1,180	$ 629	$ 2,395	$ 1,256

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 28, 2018	Dec. 30, 2017
Acquired Indefinite Lived Intangible Assets [Line Items]
Goodwill	$ 28,714		$ 27,169
Clement May [Member]
Acquired Indefinite Lived Intangible Assets [Line Items]
Goodwill		$ 1,545
Intangible assets
Intangible assets		1,194
Clement May [Member] | Tradenames [Member]
Intangible assets
Intangible assets		470
Clement May [Member] | Non-compete [Member]
Intangible assets
Intangible assets		273
Clement May [Member] | Customer Relationships [Member]
Intangible assets
Intangible assets		$ 451

ACQUISITIONS (Details Textual)

ACQUISITIONS (Details Textual) - Jun. 28, 2018 £ in Thousands, $ in Thousands	USD ($)	GBP (£)
Clement May [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Business acquired receivables and fair value	$ 14,305
Business Combination, Contingent Consideration, Liability	1,122	£ 850
Clement May [Member] | Selling, General and Administrative Expenses, Excluding Depreciation and Amortization [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Business acquisition expenses related to third party	$ 105
Tradenames [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average estimated useful life	8 years 4 months 24 days
Non-compete [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average estimated useful life	8 years 4 months 24 days
Customer Relationships [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average estimated useful life	8 years 4 months 24 days

ACQUISITIONS (Details 1)

ACQUISITIONS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 28, 2018	Dec. 30, 2017
Acquired Indefinite Lived Intangible Assets [Line Items]
Goodwill	$ 28,714		$ 27,169
Clement May [Member]
Acquired Indefinite Lived Intangible Assets [Line Items]
Purchase price		$ 3,543
Net assets acquired		(804)
Intangible assets		(1,194)
Goodwill		$ 1,545

ACQUISITIONS (Details 2)

ACQUISITIONS (Details 2) - FirstPro, CBS Butler and Clement May [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Revenues	$ 71,089	$ 70,280	$ 139,545	$ 140,668
Net loss from continuing operations	$ (1,779)	$ (780)	$ (2,911)	$ (4,296)

OTHER RELATED PARTY TRANSACTI42

OTHER RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Related Party Transaction [Line Items]
Stock based compensation			$ 663	$ 618
Board and Committee members [Member]
Related Party Transaction [Line Items]
Cash Compensation	$ 76	$ 57	$ 133	$ 93
Shares Issued	5,600	15,600	9,800	40,700
Value of Shares Issued	$ 8	$ 72	$ 23	$ 165
Stock based compensation	60	51	120	102
Board and Committee members [Member] | Dimitri Villard [Member]
Related Party Transaction [Line Items]
Cash Compensation	$ 19	$ 19	$ 38	$ 31
Shares Issued	1,400	5,200	2,800	13,500
Value of Shares Issued	$ 2	$ 24	$ 7	$ 55
Stock based compensation	20	17	40	34
Board and Committee members [Member] | Jeff Grout [Member]
Related Party Transaction [Line Items]
Cash Compensation	$ 19	$ 19	$ 38	$ 31
Shares Issued	1,400	5,200	2,800	13,500
Value of Shares Issued	$ 2	$ 24	$ 7	$ 55
Stock based compensation	20	17	40	34
Board and Committee members [Member] | Nick Florio [Member]
Related Party Transaction [Line Items]
Cash Compensation	$ 19	$ 19	$ 38	$ 31
Shares Issued	1,400	5,200	2,800	13,700
Value of Shares Issued	$ 2	$ 24	$ 7	$ 55
Stock based compensation	20	$ 17	40	$ 34
Board and Committee members [Member] | Alicia Barker [Member]
Related Party Transaction [Line Items]
Cash Compensation	$ 19		$ 19
Shares Issued	1,400		1,400
Value of Shares Issued	$ 2		$ 2

OTHER RELATED PARTY TRANSACTI43

OTHER RELATED PARTY TRANSACTIONS (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)Board_MemberDirector	Dec. 30, 2017USD ($)
Related Party Transaction [Line Items]
Accounts payable and accrued expenses	$ 22,221,000	$ 22,221,000	$ 16,709,000
Employment agreement description		Effective July 1, 2018, the Company entered into an Employment Agreement with Alicia Barker that appointed her as the Company’s Chief Operating Officer. Ms. Barker will continue as a member of the Company’s board of directors
Number of board members | Board_Member		5
Number of independent directors | Director		3
Mr. Briand [Member] | Separation Agreement [Member]
Related Party Transaction [Line Items]
Severance pay	18,000
Accrued balance due	300,000	$ 300,000
Board and Committee members [Member]
Related Party Transaction [Line Items]
Accounts payable and accrued expenses	$ 0	$ 0

SUPPLEMENTAL CASH FLOW INFORM44

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Cash paid for:
Interest	$ 3,360	$ 827
Income taxes	98	130
Non-Cash Investing and Financing Activities:
Collection of UK factoring facility deferred purchase price	3,550
Deemed Dividends	0	2,009
Acquisition of Business [Member]
Non-Cash Investing and Financing Activities:
Shares issued	21	0
HSBC Invoice Finance (UK) Ltd – Factoring Facility [Member]
Non-Cash Investing and Financing Activities:
Collection of UK factoring facility deferred purchase price	3,585	0
Convertible Note [Member]
Non-Cash Investing and Financing Activities:
Shares issued	0	498
Jackson Investment Group Term Loan [Member]
Non-Cash Investing and Financing Activities:
Shares issued	0	1,198
Warrants issued in connection with Jackson term loan	0	1,614
Series D Payoff [Member]
Non-Cash Investing and Financing Activities:
Shares issued	$ 0	$ 208