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

3 Months Ended

Apr. 04, 2015

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 April 4, 2015, and January 3, 2015:



	April 4, 2015		January 3, 2015
Assets
Current assets	$	758	$	912
Property and equipment, net	8,583		8,775
Other assets	123		127
Total Assets	$	9,464	$	9,814
Liabilities
Accounts payable	$	902	$	923
Accrued expenses	249		199
Current maturities of long-term debt obligations	1,115		795
Long-term debt obligations, net of current maturities	3,608		3,737
Other liabilities (a)	289		289
Total Liabilities	$	6,163	$	5,943

(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 months ended April 4, 2015, and March 29, 2014:



	Three Months Ended
	April 4, 2015			March 29, 2014
Revenues	$	1,850		$	2,824
Gross profit	6			890
Operating income (loss)	(516		)	342
Net income (loss)	(570		)	274