Kidpik (PIKM) 10-Q 16 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 01, 2023	May 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Apr. 01, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-41032
Entity Registrant Name	Kidpik Corp.
Entity Central Index Key	0001861522
Entity Tax Identification Number	81-3640708
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	200 Park Avenue South
Entity Address, Address Line Two	3rd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10003
City Area Code	(212)
Local Phone Number	399-2323
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PIK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,688,194

Condensed Interim Balance Sheet

Condensed Interim Balance Sheets - USD ($)	Apr. 01, 2023	Dec. 31, 2022
Current assets
Cash	$ 264,669	$ 600,595
Restricted cash	4,618	4,618
Accounts receivable	192,718	336,468
Inventory	11,110,934	12,625,948
Prepaid expenses and other current assets	905,574	1,043,095
Total current assets	12,478,513	14,610,724
Leasehold improvements and equipment, net	132,506	67,957
Operating lease right-of-use assets	1,335,385	1,469,665
Total assets	13,946,404	16,148,346
Current liabilities
Accounts payable	1,716,630	2,153,389
Accrued expenses and other current liabilities	395,646	587,112
Operating lease liabilities, current	384,681	438,957
Short-term debt, related party	2,050,000	2,050,000
Total current liabilities	5,885,004	6,337,123
Operating lease liabilities, net of current portion	994,682	1,061,469
Total liabilities	6,879,686	7,398,592
Commitments and contingencies
Stockholders’ equity
Preferred stock, par value $0.001, 25,000,000 shares authorized, of which no shares are issued and outstanding as of April 1, 2023 and December 31, 2022, respectively
Common stock, par value $0.001, 75,000,000 shares authorized, of which 7,688,194 shares are issued and outstanding as of April 1, 2023 and December 31, 2022, respectively	7,688	7,688
Additional paid-in capital	50,543,987	50,276,511
Accumulated deficit	(43,484,957)	(41,534,445)
Total stockholders’ equity	7,066,718	8,749,754
Total liabilities and stockholders’ equity	13,946,404	16,148,346
Related Party [Member]
Current liabilities
Accounts payable	$ 1,338,047	$ 1,107,665

Condensed Interim Balance She_2

Condensed Interim Balance Sheets (Parenthetical) - $ / shares	Apr. 01, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	7,688,194	7,688,194
Common stock, shares outstanding	7,688,194	7,688,194

Condensed Interim Statements of

Condensed Interim Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Statement [Abstract]
Revenue, net	$ 4,029,478	$ 4,325,997
Cost of goods sold	1,619,226	1,733,914
Gross profit	2,410,252	2,592,083
Operating expenses
Shipping and handling	1,189,222	1,132,084
Payroll, related costs and equity-based compensation	1,111,101	1,599,236
General and administrative	2,024,562	1,930,893
Depreciation and amortization	10,689	5,665
Total operating expenses	4,335,574	4,667,878
Operating loss	(1,925,322)	(2,075,795)
Other expenses (income)
Interest expense	25,190	21,674
Other income		(286,794)
Total other expenses (income)	25,190	(265,120)
Net loss	$ (1,950,512)	$ (1,810,675)
Net loss per share attributable to common stockholders:
Basic	$ (0.25)	$ (0.24)
Diluted	$ (0.25)	$ (0.24)
Weighted average common shares outstanding
Basic	7,688,194	7,617,834
Diluted	7,688,194	7,617,834

Condensed Interim Statements _2

Condensed Interim Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Jan. 01, 2022	$ 7,618		$ 48,659,225	$ (33,919,184)	$ 14,747,659
Balance, shares at Jan. 01, 2022	7,617,834
Equity-based compensation			617,164		617,164
Equity-based compensation, shares
Net loss				(1,810,675)	(1,810,675)
Balance at Apr. 02, 2022	$ 7,618		49,276,389	(35,729,859)	13,554,148
Balance, shares at Apr. 02, 2022	7,617,834
Balance at Dec. 31, 2022	$ 7,688		50,276,511	(41,534,445)	8,749,754
Balance, shares at Dec. 31, 2022	7,688,194
Equity-based compensation			267,476		267,476
Equity-based compensation, shares
Net loss				(1,950,512)	(1,950,512)
Balance at Apr. 01, 2023	$ 7,688		$ 50,543,987	$ (43,484,957)	$ 7,066,718
Balance, shares at Apr. 01, 2023	7,688,194

Condensed Interim Statements _3

Condensed Interim Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Cash flows from operating activities
Net loss	$ (1,950,512)	$ (1,810,675)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10,689	5,665
Equity-based compensation	267,476	617,164
Bad debt expense	80,153	93,142
Changes in operating assets and liabilities:
Accounts receivable	63,597	66,171
Inventory	1,515,014	(650,649)
Prepaid expenses and other current assets	137,521	81,608
Operating lease right-of-use assets and liabilities	13,217	1,896
Accounts payable	(436,759)	28,282
Accounts payable, related parties	230,382	(194,142)
Accrued expenses and other current liabilities	(191,466)	(472,125)
Net cash flows used in operating activities	(260,688)	(2,233,663)
Cash flows from investing activities
Purchases of leasehold improvements and equipment	(75,238)	(17,018)
Net cash used in investing activities	(75,238)	(17,018)
Cash flows from financing activities
Net repayments from advance payable		(735,126)
Net cash used in financing activities		(735,126)
Net decrease in cash and restricted cash	(335,926)	(2,985,807)
Cash and restricted cash, beginning of period	605,213	8,420,500
Cash and restricted cash, end of period	269,287	5,434,693
Reconciliation of cash and restricted cash:
Cash	264,669	5,430,075
Restricted cash	4,618	4,618
Cash and restricted cash, end of period	269,287	5,434,693
Supplemental disclosure of cash flow data:
Interest paid		3,890
Supplemental disclosure of noncash investing and financing activities:
Record right-of-use asset and operating lease liabilities		$ 418,951

NATURE OF BUSINESS

NATURE OF BUSINESS	3 Months Ended
	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 1: NATURE OF BUSINESS Kidpik Corp. (the “Company”, “kidpik”, “we”, “our” or “us”) was incorporated on April 16, 2015 under the laws of Delaware. The Company is a subscription-based e-commerce business geared toward kid products for girls’ and boys’ apparel, footwear, and accessories. The Company serves its customers through the clothing subscription box business, its retail website, www.kidpik.com rd

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of accounting The accompanying condensed interim financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its condensed interim financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year. Fiscal year Use of estimates Emerging growth company Recently adopted accounting pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) Financial Instruments Credit Losses Concentration of credit risk Net loss per common share : The Company complies with the accounting and disclosure requirements of FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share Revenue recognition Revenue for subscription box sales is recognized when control of the promised goods is transferred and accepted by the subscriber. Subscribers have a maximum of 10 days from the date the product is delivered to return any items in the pre-paid delivery bag. Control is transferred either when a subscriber checks out or automatically ten days after the goods are delivered, whichever occurs first. Upon checkout or the 10-day period, the amount of the order not returned is recognized as revenue. Payment is due upon checkout or the end of the 10-day period after the goods are delivered, whichever occurs first. Between August 24, 2021 and January 6, 2022, we charged new subscribers an upfront styling fee before the box was shipped that was credited toward items purchased. The styling fees were included in deferred revenue until the time of client checkout or when the option to purchase the item expires. Revenue from online website sales, which includes sales from our and 3 rd The provision for anticipated sales returns consists of both contractual return rights and discretionary authorized returns. Estimates of discretionary authorized returns for sales other than subscription sales, discounts and claims are based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding discounts and claims and (3) estimated returns, discounts and claims expected, but not yet finalized with customers. Actual returns, discounts and claims in any future period are inherently uncertain and thus may differ from estimates recorded. If actual or expected future returns, discounts or claims were significantly greater or lower than reserves established, a reduction or increase to net revenue would be recorded in the period in which such determination was made. Shipping and handling costs associated with outbound freight fulfillment before control over a product has transferred to a customer are accounted for as a shipping and handling cost in the condensed interim statements of operations. Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue producing transaction and are collected by the Company from a customer are excluded from revenue and cost of goods sold in the condensed interim statements of operations. Restricted cash Inventory Leasehold improvements and equipment Impairment of long-lived assets Deferred financing costs Income taxes The Company applies U.S. GAAP accounting for uncertainty in income taxes. If the Company considers that a tax position is more likely than not of being sustained upon audit, based solely on the technical merits of the position, it recognizes the tax benefit. The Company measures the tax benefit by determining the amount that is greater than 50% likely of being realized upon settlement, presuming the tax position is examined by the appropriate taxing authority that has full knowledge of relevant information. The Company has no unrecognized tax benefits at April 1, 2023 and December 31, 2022. The Company’s federal, state and local income tax returns prior to fiscal year 2018 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The Company recognizes interest and penalties associated with tax matters, if any, as part of operating expenses and includes accrued interest and penalties with accrued expenses in the condensed interim balance sheets. Advertising costs 902,103 718,381 Bad debt expense Equity-based compensation Equity-based compensation Segment information

LIQUIDITY

LIQUIDITY	3 Months Ended
	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY	NOTE 3: LIQUIDITY The Company has sustained losses from operations since inception, negative operating cash flows and has an accumulated deficit of $ 43,484,957 To support the Company’s existing operations or any future expansion of business, including the ability to execute the Company’s growth strategy, the Company must have sufficient capital to continue to make investments and fund operations. Subject to availability of sufficient capital, management has plans to pursue a growth strategy for the expansion of operations through increased marketing to attract new members and refine the marketing strategy to strategically prioritize customer acquisition channels that management believes will be more successful at attracting new customers and members. The Company’s ability to continue its operations is dependent upon obtaining new financing for its ongoing operations and on the Company’s plans to reduce its inventory level. To manage operating cash flows in the near term, the Company plans to significantly reduce purchases of new inventory and if available, may enter into cash advance or other financing arrangements. Future financing options available to the Company may include equity financings, debt financings or other capital sources, including collaborations with other companies or other strategic transactions to fund existing operations and execute management’s growth strategy. Equity financings may include sales of common stock. Such financing may not be available on terms favorable to the Company or at all. The terms of any financing may adversely affect the holdings or rights of the Company’s stockholders and may cause significant dilution to existing stockholders. Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continued operations, if at all, which would have a material adverse effect on its business, financial condition and results of operations, and it could ultimately be forced to discontinue its operations and liquidate. These matters, when considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time, which is defined as within one year after the date that the condensed interim financial statements are issued. The accompanying condensed interim financial statements do not contain any adjustments to reflect the possible future effects on the classification of assets or the amounts and classification of liabilities that might result from the outcome of this uncertainty. On March 22, 2023, the Company received written notice (the “ Notification Letter Nasdaq 1.00 The Notification Letter does not impact the Company’s listing of its common stock on the Nasdaq Capital Market at this time. The Notification Letter states that the Company has 180 calendar days or until September 18, 2023, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the bid price of the Company’s common stock must have a closing bid price of at least $ 1.00 The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider implementing available options to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules. The Company is also seeking stockholder approval of an amendment to the Company’s Second Amended and Restated Certificate of Incorporation, to effect a reverse stock split of the Company’s issued and outstanding shares of our common stock, par value $0.001 per share, by a ratio of between one-for-five to one-for-twenty, inclusive, with the exact ratio to be set at a whole number to be determined by the Company’s Board of Directors or a duly authorized committee thereof in its discretion, at any time after approval of the amendment and prior to April 24, 2024

INVENTORY

INVENTORY	3 Months Ended
	Apr. 01, 2023
Inventory Disclosure [Abstract]
INVENTORY	NOTE 4: INVENTORY Inventory consists of the following: SCHEDULE OF INVENTORIES April 1, 2023 December 31, 2022 (unaudited) Finished goods $ 11,110,934 $ 12,625,948 Total $ 11,110,934 $ 12,625,948

LEASEHOLD IMPROVEMENTS AND EQUI

LEASEHOLD IMPROVEMENTS AND EQUIPMENT	3 Months Ended
	Apr. 01, 2023
Property, Plant and Equipment [Abstract]
LEASEHOLD IMPROVEMENTS AND EQUIPMENT	NOTE 5: LEASEHOLD IMPROVEMENTS AND EQUIPMENT Leasehold improvements and equipment consist of the following: SUMMARY OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT April 1, 2023 December 31, 2022 (unaudited) Computer equipment $ 120,459 $ 117,841 Furniture and fixtures 185,290 174,504 Leasehold improvements 137,060 65,523 Machinery and equipment 32,666 42,369 Total cost 475,475 400,237 Leasehold improvements and equipment, gross 475,475 400,237 Accumulated depreciation (342,969 ) (332,280 ) Leasehold improvements and equipment, net $ 132,506 $ 67,957 Depreciation expense amounted to $ 10,689 5,665

LEASES

LEASES	3 Months Ended
	Apr. 01, 2023
Leases
LEASES	NOTE 6: LEASES The Company adopted the ASC 842 guidance on January 2, 2022, using the modified retrospective transition effective date method. As part of that adoption, the Company has elected the package of three practical expedients, which includes the following: an entity may elect not to reassess whether expired or existing contracts contain a lease under the revised definition of a lease; an entity may elect not to reassess the lease classification for expired or existing leases; and an entity may elect not to reassess whether previously capitalized initial direct costs would qualify for capitalization. The Company has elected not to utilize the hindsight expedient in determining the lease term, and to not record leases with an initial term of 12 months or less on our condensed interim balance sheets. Additionally, the Company has elected to account for lease components and non-lease components as a single lease component for all asset classes. Lease expense is recognized over the expected term on a straight-line basis. The adoption did not have a material impact on the Company’s condensed interim statements of operations or cash flows. The Company entered into a sub-lease agreement for warehouse space from a related party on April 1, 2021. The Company pays 33.3 September 30, 2023 127,404 The table below includes the balances of operating lease right-of-use assets and operating lease liabilities as of April 1, 2023: SCHEDULE OF OPERATING LEASE RIGHT OF USE OF ASSET AND LIABILITIES April 1, 2023 Assets Operating lease right-of-use assets, net $ 1,335,385 Liabilities Operating lease liabilities – current $ 384,681 Operating lease liabilities – non-current 994,682 Total Lease Liabilities $ 1,379,363 The maturities of our operating lease liabilities as of April 1, 2023, are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES FOR OPERATING LEASES Maturity of Operating Lease Liabilities 2023 $ 381,504 2024 346,698 2025 357,099 2026 367,812 2027 123,806 Total lease payments 1,576,919 Less: imputed interest (197,556 ) Present value of lease liabilities $ 1,379,363

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Apr. 01, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7: RELATED PARTY TRANSACTIONS In the normal course of business, the Company made purchases from related parties for merchandise and shared services which amounted to $ 12,591 73,075 A related party performs certain management services for the Company pursuant to a management services agreement. For these services, the Company pays a monthly management fee equal to 0.75 28,990 30,926 In addition, the Company is using a related party to run its Amazon Marketplace site. The consulting fees for this service amounted to $ 19,323 30,545 The Company entered into a new revocable monthly sub-lease agreement for office space from a related party on January 1, 2021. The Company will pay 50 zero 82,500 The Company entered into a new sub-lease agreement for warehouse space from a related party on April 1, 2021. The Company will pay 33.3 September 30, 2023 191,106 As of April 1, 2023 and December 31, 2022, there was $ 1,338,047 1,107,665 See Note 8 for a description of short-term debt from affiliated entities under common control and from stockholders.

SHORT-TERM DEBT

SHORT-TERM DEBT	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
SHORT-TERM DEBT	NOTE 8: SHORT-TERM DEBT On August 13, 2021, the Company entered into two unsecured convertible promissory notes with stockholders in the aggregate amount of $ 200,000 Each of the convertible notes were payable on January 15, 2022 and were automatically convertible into shares of the Company’s common stock at a conversion price equal to the per share price of the next equity funding completed by the Company in an amount of at least $2,000,000 and requires the repayment of 110% of such convertible note amount upon a sale of the Company (including a change of 50% or more of the voting shares). On August 25, 2021, the parties agreed to amend the previously convertible notes to remove the conversion rights provided for therein and clarify that no interest accrues on the convertible notes. On March 31, 2022, and effective on January 15, 2022, the parties amended the notes to be payable on demand In September, October and November 2021, the Company borrowed $ 2,500,000 110 50 500,000 150,000 1,850,000

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
NET LOSS PER COMMON SHARE	NOTE 9: NET LOSS PER COMMON SHARE The computation of basic net loss per share is based on the weighted average number of common shares outstanding for the 13 weeks ended April 1, 2023 and April 1, 2022. Diluted net loss per share gives effect to stock options and restricted stock units using the treasury stock method, unless the impact is anti-dilutive. Diluted net loss per share for the 13 weeks ended April 1, 2023 does not include 250,000 176,000 SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES April 1, 2023 April 2, 2022 Net loss $ (1,950,512 ) $ (1,810,675 ) Weighted Average Shares – Basic 7,688,194 7,617,834 Dilutive effect of stock options and restricted stock units - - Weighted Average Shares – Diluted 7,688,194 7,617,834 Basic net loss per share (0.25 ) (0.24 ) Diluted net loss per share (0.25 ) (0.24 )

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Apr. 01, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 10: STOCKHOLDERS’ EQUITY On May 10, 2021, the Company filed an amended and restated Certificate of Incorporation which authorized 75,000,000 0.001 25,000,000 0.001 671 On May 12, 2021, the Company and each then stockholder of the Company, other than one minority stockholder holding 147,620 2.7 10

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
EQUITY-BASED COMPENSATION	NOTE 11: EQUITY-BASED COMPENSATION On May 9, 2021, the Board of Directors and majority stockholders adopted an Equity Incentive Plan which provides an opportunity for any employee, officer, director or consultant of the Company to receive incentive stock options, nonqualified stock options, restricted stock, stock awards, shares in performance of services or any combination of the foregoing. On September 30, 2021, the Board of Directors and majority stockholders of the Company amended and restated its 2021 Equity Incentive Plan (as amended and restated, the “2021 Plan”). The 2021 Plan provides for the grant of incentive stock options, or ISOs, within the meaning of Section 422 of the Internal Revenue Code, to our employees, and for the grant of nonstatutory stock options, or NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards (RSU awards), performance awards and other forms of awards to our employees, directors and consultants and any of our affiliates’ employees and consultants. A total of 2,600,000 On November 10, 2021, prior to the pricing of the Company’s initial public offering (the “IPO”), the Company granted (a) options to purchase an aggregate of 480,000 8.50 254,000 10,000 five years 88,000 70,360 17,640 88,000 In determining the fair value of the stock-based awards, we used the Black-Scholes option-pricing model and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment. Expected Term Expected Volatility Risk-Free Interest Rate Expected Dividend The fair value of each option we issued on November 10, 2021 was $ 3.16 0.88 52.4 0 8.50 A summary of the Company’s time-based stock option activity under the 2021 Plan was as follows: SCHEDULE OF COMPANY’S TIME BASED STOCK OPTION ACTIVITY Number of Weighted Average Exercise Price Unvested options as of December 31, 2022 286,000 $ 8.50 Granted - - Vested - - Forfeited/Repurchased (36,000 ) - Unvested options as of April 1, 2023 250,000 $ 8.50 As of April 1, 2023, there was $ 1.3 1.1 Amortization of this charge, which is included in non-cash compensation expense, for the 13 weeks ended April 1, 2023, was $ 267,476

RISK CONCENTRATION AND UNCERTAI

RISK CONCENTRATION AND UNCERTAINTIES	3 Months Ended
	Apr. 01, 2023
Risks and Uncertainties [Abstract]
RISK CONCENTRATION AND UNCERTAINTIES	NOTE 12: RISK CONCENTRATION AND UNCERTAINTIES The Company uses various vendors for purchases of inventory. For the 13 weeks ended April 1, 2023, no 53 Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising the Company’s customer base. In addition, the Company reviews receivables and recognizes bad debt on a monthly basis for accounts that are deemed uncollectible.

REVENUE, NET

REVENUE, NET	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
REVENUE, NET	NOTE 13: REVENUE, NET SCHEDULE OF REVENUES, NET April 1, 2023 April 2, 2022 Revenue by channel Subscription boxes $ 2,971,567 $ 3,483,851 3 rd 436,298 549,500 Online website sales 621,613 292,646 Total revenue $ 4,029,478 $ 4,325,997

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Basis of accounting	Basis of accounting The accompanying condensed interim financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its condensed interim financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year.
Fiscal year	Fiscal year
Use of estimates	Use of estimates
Emerging growth company	Emerging growth company
Recently adopted accounting pronouncements	Recently adopted accounting pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) Financial Instruments Credit Losses
Concentration of credit risk	Concentration of credit risk
Net loss per common share	Net loss per common share : The Company complies with the accounting and disclosure requirements of FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share
Revenue recognition	Revenue recognition Revenue for subscription box sales is recognized when control of the promised goods is transferred and accepted by the subscriber. Subscribers have a maximum of 10 days from the date the product is delivered to return any items in the pre-paid delivery bag. Control is transferred either when a subscriber checks out or automatically ten days after the goods are delivered, whichever occurs first. Upon checkout or the 10-day period, the amount of the order not returned is recognized as revenue. Payment is due upon checkout or the end of the 10-day period after the goods are delivered, whichever occurs first. Between August 24, 2021 and January 6, 2022, we charged new subscribers an upfront styling fee before the box was shipped that was credited toward items purchased. The styling fees were included in deferred revenue until the time of client checkout or when the option to purchase the item expires. Revenue from online website sales, which includes sales from our and 3 rd The provision for anticipated sales returns consists of both contractual return rights and discretionary authorized returns. Estimates of discretionary authorized returns for sales other than subscription sales, discounts and claims are based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding discounts and claims and (3) estimated returns, discounts and claims expected, but not yet finalized with customers. Actual returns, discounts and claims in any future period are inherently uncertain and thus may differ from estimates recorded. If actual or expected future returns, discounts or claims were significantly greater or lower than reserves established, a reduction or increase to net revenue would be recorded in the period in which such determination was made. Shipping and handling costs associated with outbound freight fulfillment before control over a product has transferred to a customer are accounted for as a shipping and handling cost in the condensed interim statements of operations. Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue producing transaction and are collected by the Company from a customer are excluded from revenue and cost of goods sold in the condensed interim statements of operations.
Restricted cash	Restricted cash
Inventory	Inventory
Leasehold improvements and equipment	Leasehold improvements and equipment
Impairment of long-lived assets	Impairment of long-lived assets
Deferred financing costs	Deferred financing costs
Income taxes	Income taxes The Company applies U.S. GAAP accounting for uncertainty in income taxes. If the Company considers that a tax position is more likely than not of being sustained upon audit, based solely on the technical merits of the position, it recognizes the tax benefit. The Company measures the tax benefit by determining the amount that is greater than 50% likely of being realized upon settlement, presuming the tax position is examined by the appropriate taxing authority that has full knowledge of relevant information. The Company has no unrecognized tax benefits at April 1, 2023 and December 31, 2022. The Company’s federal, state and local income tax returns prior to fiscal year 2018 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The Company recognizes interest and penalties associated with tax matters, if any, as part of operating expenses and includes accrued interest and penalties with accrued expenses in the condensed interim balance sheets.
Advertising costs	Advertising costs 902,103 718,381
Bad debt expense	Bad debt expense
Equity-based compensation	Equity-based compensation Equity-based compensation
Segment information	Segment information

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Apr. 01, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventory consists of the following: SCHEDULE OF INVENTORIES April 1, 2023 December 31, 2022 (unaudited) Finished goods $ 11,110,934 $ 12,625,948 Total $ 11,110,934 $ 12,625,948

LEASEHOLD IMPROVEMENTS AND EQ_2

LEASEHOLD IMPROVEMENTS AND EQUIPMENT (Tables)	3 Months Ended
	Apr. 01, 2023
Property, Plant and Equipment [Abstract]
SUMMARY OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT	Leasehold improvements and equipment consist of the following: SUMMARY OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT April 1, 2023 December 31, 2022 (unaudited) Computer equipment $ 120,459 $ 117,841 Furniture and fixtures 185,290 174,504 Leasehold improvements 137,060 65,523 Machinery and equipment 32,666 42,369 Total cost 475,475 400,237 Leasehold improvements and equipment, gross 475,475 400,237 Accumulated depreciation (342,969 ) (332,280 ) Leasehold improvements and equipment, net $ 132,506 $ 67,957

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Apr. 01, 2023
Leases
SCHEDULE OF OPERATING LEASE RIGHT OF USE OF ASSET AND LIABILITIES	The table below includes the balances of operating lease right-of-use assets and operating lease liabilities as of April 1, 2023: SCHEDULE OF OPERATING LEASE RIGHT OF USE OF ASSET AND LIABILITIES April 1, 2023 Assets Operating lease right-of-use assets, net $ 1,335,385 Liabilities Operating lease liabilities – current $ 384,681 Operating lease liabilities – non-current 994,682 Total Lease Liabilities $ 1,379,363
SCHEDULE OF MATURITIES OF LEASE LIABILITIES FOR OPERATING LEASES	The maturities of our operating lease liabilities as of April 1, 2023, are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES FOR OPERATING LEASES Maturity of Operating Lease Liabilities 2023 $ 381,504 2024 346,698 2025 357,099 2026 367,812 2027 123,806 Total lease payments 1,576,919 Less: imputed interest (197,556 ) Present value of lease liabilities $ 1,379,363

NET LOSS PER COMMON SHARE (Tabl

NET LOSS PER COMMON SHARE (Tables)	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES	SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES April 1, 2023 April 2, 2022 Net loss $ (1,950,512 ) $ (1,810,675 ) Weighted Average Shares – Basic 7,688,194 7,617,834 Dilutive effect of stock options and restricted stock units - - Weighted Average Shares – Diluted 7,688,194 7,617,834 Basic net loss per share (0.25 ) (0.24 ) Diluted net loss per share (0.25 ) (0.24 )

EQUITY-BASED COMPENSATION (Tabl

EQUITY-BASED COMPENSATION (Tables)	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF COMPANY’S TIME BASED STOCK OPTION ACTIVITY	A summary of the Company’s time-based stock option activity under the 2021 Plan was as follows: SCHEDULE OF COMPANY’S TIME BASED STOCK OPTION ACTIVITY Number of Weighted Average Exercise Price Unvested options as of December 31, 2022 286,000 $ 8.50 Granted - - Vested - - Forfeited/Repurchased (36,000 ) - Unvested options as of April 1, 2023 250,000 $ 8.50

REVENUE, NET (Tables)

REVENUE, NET (Tables)	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
SCHEDULE OF REVENUES, NET	SCHEDULE OF REVENUES, NET April 1, 2023 April 2, 2022 Revenue by channel Subscription boxes $ 2,971,567 $ 3,483,851 3 rd 436,298 549,500 Online website sales 621,613 292,646 Total revenue $ 4,029,478 $ 4,325,997

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
General and Administrative Expense [Member]
Advertising and promotion expenses	$ 902,103	$ 718,381

LIQUIDITY (Details Narrative)

LIQUIDITY (Details Narrative) - USD ($)	3 Months Ended
	Apr. 01, 2023	Sep. 18, 2023	Mar. 22, 2023	Dec. 31, 2022
Accumulated deficit	$ 43,484,957			$ 41,534,445
Closing bid price			$ 1
Reverse stock split, description	The Company is also seeking stockholder approval of an amendment to the Company’s Second Amended and Restated Certificate of Incorporation, to effect a reverse stock split of the Company’s issued and outstanding shares of our common stock, par value $0.001 per share, by a ratio of between one-for-five to one-for-twenty, inclusive, with the exact ratio to be set at a whole number to be determined by the Company’s Board of Directors or a duly authorized committee thereof in its discretion, at any time after approval of the amendment and prior to April 24, 2024
Forecast [Member]
Closing bid price		$ 1

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Apr. 01, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 11,110,934	$ 12,625,948
Total	$ 11,110,934	$ 12,625,948

SUMMARY OF LEASEHOLD IMPROVEMEN

SUMMARY OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT (Details) - USD ($)	Apr. 01, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Leasehold improvements and equipment, gross	$ 475,475	$ 400,237
Accumulated depreciation	(342,969)	(332,280)
Leasehold improvements and equipment, net	132,506	67,957
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvements and equipment, gross	120,459	117,841
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvements and equipment, gross	185,290	174,504
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvements and equipment, gross	137,060	65,523
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvements and equipment, gross	$ 32,666	$ 42,369

LEASEHOLD IMPROVEMENTS AND EQ_3

LEASEHOLD IMPROVEMENTS AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 10,689	$ 5,665

SCHEDULE OF OPERATING LEASE RIG

SCHEDULE OF OPERATING LEASE RIGHT OF USE OF ASSET AND LIABILITIES (Details) - USD ($)	Apr. 01, 2023	Dec. 31, 2022
Leases
Operating lease right-of-use assets, net	$ 1,335,385	$ 1,469,665
Operating lease liabilities – current	384,681	438,957
Operating lease liabilities – non-current	994,682	$ 1,061,469
Total Lease Liabilities	$ 1,379,363

SCHEDULE OF MATURITIES OF LEASE

SCHEDULE OF MATURITIES OF LEASE LIABILITIES FOR OPERATING LEASES (Details)	Apr. 01, 2023 USD ($)
Leases
2023	$ 381,504
2024	346,698
2025	357,099
2026	367,812
2027	123,806
Total lease payments	1,576,919
Less: imputed interest	(197,556)
Present value of lease liabilities	$ 1,379,363

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	Apr. 02, 2021	Apr. 02, 2021	Apr. 01, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease payments			$ 1,576,919
Sublease Agreement [Member] | Warehouse [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Rent payments, percentage	33.30%	33.30%
Lease expiration date	Sep. 30, 2023	Sep. 30, 2023
Sublease Agreement [Member] | Warehouse [Member] | December 30, 2023 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease payments			$ 127,404

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)			3 Months Ended
	Apr. 02, 2021	Apr. 02, 2021	Apr. 01, 2023	Apr. 02, 2022	Dec. 31, 2022	Jan. 01, 2021
Related Party Transaction [Line Items]
Purchases from related parties			$ 12,591	$ 73,075
Management fee percent			0.75%
Management fees			$ 28,990	30,926
Consulting fees			19,323	30,545
Operating leases rent expense sublease rentals percentage						50%
Payments for rent			0	$ 82,500
Lease payments			381,504
Nina Footwear [Member] | Related Party [Member]
Related Party Transaction [Line Items]
Due to related parties			1,338,047		$ 1,107,665
Sublease Agreement [Member] | December 30, 2023 [Member]
Related Party Transaction [Line Items]
Lease payments			$ 191,106
Sublease Agreement [Member] | Warehouse [Member]
Related Party Transaction [Line Items]
Rent payments, percentage	33.30%	33.30%
Lease expiration date	Sep. 30, 2023	Sep. 30, 2023

SHORT-TERM DEBT (Details Narrat

SHORT-TERM DEBT (Details Narrative) - USD ($)				3 Months Ended		12 Months Ended
	Jul. 02, 2022	Dec. 27, 2021	Aug. 13, 2021	Apr. 01, 2023	Nov. 30, 2021	Dec. 31, 2022
Short-Term Debt [Line Items]
Repayment of borrowings	$ 150,000	$ 500,000
outstanding amount				$ 1,850,000		$ 1,850,000
Shareholder [Member]
Short-Term Debt [Line Items]
Short term borrowings					$ 2,500,000
Debt instrument redemption price percentage					110%
Equity investment ownership percentage					50%
Two Unsecured Convertible Promissory Notes [Member] | Shareholder [Member]
Short-Term Debt [Line Items]
Debt face, amount			$ 200,000
Debt description			Each of the convertible notes were payable on January 15, 2022 and were automatically convertible into shares of the Company’s common stock at a conversion price equal to the per share price of the next equity funding completed by the Company in an amount of at least $2,000,000 and requires the repayment of 110% of such convertible note amount upon a sale of the Company (including a change of 50% or more of the voting shares). On August 25, 2021, the parties agreed to amend the previously convertible notes to remove the conversion rights provided for therein and clarify that no interest accrues on the convertible notes. On March 31, 2022, and effective on January 15, 2022, the parties amended the notes to be payable on demand

SCHEDULE OF WEIGHTED AVERAGE NU

SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Earnings Per Share [Abstract]
Net loss	$ (1,950,512)	$ (1,810,675)
Weighted Average Shares – Basic	7,688,194	7,617,834
Dilutive effect of stock options and restricted stock units
Weighted Average Shares – Diluted	7,688,194	7,617,834
Basic net loss per share	$ (0.25)	$ (0.24)
Diluted net loss per share	$ (0.25)	$ (0.24)

NET LOSS PER COMMON SHARE (Deta

NET LOSS PER COMMON SHARE (Details Narrative)	3 Months Ended
	Apr. 01, 2023 shares
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share, amount	250,000
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share, amount	176,000

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	May 12, 2021	May 10, 2021	Apr. 01, 2023	Dec. 31, 2022
Common stock, shares authorized		75,000,000	75,000,000	75,000,000
Common stock, par value		$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized		25,000,000	25,000,000	25,000,000
Preferred stock, par value		$ 0.001	$ 0.001	$ 0.001
Stock split shares		671
One Minority Stockholder [Member]
Investment owned balance shares	147,620
Holding percentage	2.70%
Noncontrolling interest decrease from deconsolidation	$ 10

SCHEDULE OF COMPANY_S TIME BASE

SCHEDULE OF COMPANY’S TIME BASED STOCK OPTION ACTIVITY (Details)	3 Months Ended
	Apr. 01, 2023 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Number of Options Unvested, Balance | shares	286,000
Weighted Average Exercise Price Balance | $ / shares	$ 8.50
Number of Options, Granted | shares
Weighted Average Exercise Price, Granted | $ / shares
Number of Options, Vested | shares
Weighted Average Exercise Price, Vested | $ / shares
Number of Options, Forfeited/Repurchased | shares	(36,000)
Weighted Average Exercise Price, Forfeited/Repurchased | $ / shares
Number of Options Unvested, Balance | shares	250,000
Weighted Average Exercise Price Balance | $ / shares	$ 8.50

EQUITY-BASED COMPENSATION (Deta

EQUITY-BASED COMPENSATION (Details Narrative) - USD ($)				3 Months Ended
	May 15, 2023	May 15, 2022	Nov. 10, 2021	Apr. 01, 2023	Apr. 02, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price per share
Shares vested
Fair value of option issued per share			$ 3.16
Risk free interest rate			0.88%
Expected stock price volatility			52.40%
Dividend rate			0%
Unrecognized compensation cost				$ 1,300,000
Stock option weighted average term				1 year 1 month 6 days
Non-cash compensation expense				$ 267,476	$ 617,164
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of option issued per share			$ 8.50
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares vested		88,000
Shares issued, shares		70,360
Stock issued, restricted stock award shares, forfeited		17,640
Restricted Stock [Member] | Subsequent Event [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares vested	88,000
IPO [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Option to purchase common stock			480,000
Exercise price per share			$ 8.50
Options, term			5 years
IPO [Member] | Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares granted			254,000
IPO [Member] | Board of Directors [Member] | Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares granted			10,000
2021 Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common shares reserved for issuance						2,600,000

RISK CONCENTRATION AND UNCERT_2

RISK CONCENTRATION AND UNCERTAINTIES (Details Narrative) - Inventory Purchases [Member] - Supplier Concentration Risk [Member]	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Vendors [Member]
Concentration Risk [Line Items]
Concentration risk percentage	0%
Two Vendors [Member]
Concentration Risk [Line Items]
Concentration risk percentage		53%

SCHEDULE OF REVENUES, NET (Deta

SCHEDULE OF REVENUES, NET (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,029,478	$ 4,325,997
Subscription Boxes [Member]
Disaggregation of Revenue [Line Items]
Total revenue	2,971,567	3,483,851
Third Party Websites [Member]
Disaggregation of Revenue [Line Items]
Total revenue	436,298	549,500
Online Website Sales [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 621,613	$ 292,646