JanOne Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entity

Variable Interest Entity

9 Months Ended

Sep. 29, 2012

The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity and because we have the ability to significantly influence the economic performance of the entity through our contractual agreement with GE.

The following table summarizes the assets and liabilities of AAP as of September 29, 2012 and December 31, 2011:



	September 29, 2012		December 31, 2011
Assets
Current assets	$	780	$	1,134
Property and equipment, net	9,174		9,419
Goodwill	1,082		1,082
Other assets	152		136
	$	11,188	$	11,771
Liabilities
Accounts payable	$	549	$	858
Accrued expenses	161		250
Current maturities of long-term debt obligations	624		593
Long-term debt obligations, net of current maturities	4,600		5,022
Other liabilities (a)	849		647
	$	6,783	$	7,370

(a) Other liabilities represent loans between ARCA and AAP that are eliminated in consolidation.

The following table summarizes the operating results of AAP for the three and nine months ended September 29, 2012 and October 1, 2011:



	Three Months Ended						Nine Months Ended
	September 29, 2012			October 1, 2011			September 29, 2012		October 1, 2011
Revenues	$	2,956		$	3,042		$	8,389	$	8,278
Gross profit (loss)	(15		)	45			536		587
Operating income (loss)	(71		)	(3		)	284		376