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

Oct. 03, 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 substantial 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 October 3, 2015, and January 3, 2015:



	October 3, 2015		January 3, 2015
Assets
Current assets	$	647	$	912
Property and equipment, net	8,235		8,775
Other assets	145		127
Total Assets	$	9,027	$	9,814
Liabilities
Accounts payable	$	1,192	$	923
Accrued expenses	264		199
Current maturities of long-term debt obligations	959		795
Long-term debt obligations, net of current maturities	3,586		3,737
Other liabilities (a)	702		289
Total Liabilities	$	6,703	$	5,943

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

The following table summarizes the operating results of AAP for the three months and nine months ended October 3, 2015, and September 27, 2014:



	Three Months Ended						Nine Months Ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Revenues	$	1,577		$	2,888		$	5,455		$	8,340
Gross profit (loss)	(234		)	536			69			1,972
Operating income (loss)	(684		)	(34		)	(1,366		)	359
Net income (loss)	(748		)	(103		)	(1,548		)	154