JanOne Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Variable Interest Entity

Variable Interest Entity

12 Months Ended

Dec. 28, 2013

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 due to our contribution in excess of 50% of the total equity, subordinated debt and other forms of financial support. We have a controlling financial interest in AAP through our contractual agreement with GE, which is material to AAP, and we have provided substantially all of the financial support to fund the operations of AAP since its inception. The financial position and results of operations for AAP are reported in our recycling segment.

The following table summarizes the assets and liabilities of AAP as of December 28, 2013, and December 29, 2012:



	December 28, 2013		December 29, 2012
Assets
Current assets	$	1,099	$	787
Property and equipment, net	8,713		9,109
Other assets	137		149
Total assets	$	9,949	$	10,045
Liabilities
Accounts payable	$	861	$	826
Accrued expenses	202		204
Current maturities of long-term debt obligations	797		635
Long-term debt obligations, net of current maturities	3,796		4,437
Other liabilities (a)	469		749
Total liabilities	$	6,125	$	6,851

(a) Other liabilities represent outstanding loans from ARCA and are eliminated in consolidation.

The following table summarizes the operating results of AAP for fiscal years 2013 and 2012:



	For the fiscal years ended
	December 28, 2013		December 29, 2012
Revenues	$	11,833	$	11,163
Gross profit	2,766		1,948
Operating income (loss) (b)	956		(847		)

(b) The operating loss reported in fiscal year 2012 includes a $1,082 goodwill impairment charge.