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. 27, 2014

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 September 27, 2014, and December 28, 2013:



	September 27, 2014		December 28, 2013
Assets
Current assets	$	942	$	1,099
Property and equipment, net	8,981		8,713
Other assets	129		137
Total Assets	$	10,052	$	9,949
Liabilities
Accounts payable	$	778	$	861
Accrued expenses	182		202
Current maturities of long-term debt obligations	833		797
Long-term debt obligations, net of current maturities	3,946		3,796
Other liabilities (a)	334		469
Total Liabilities	$	6,073	$	6,125

(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 27, 2014, and September 28, 2013:



	Three Months Ended					Nine Months Ended
	September 27, 2014			September 28, 2013		September 27, 2014		September 28, 2013
Revenues	$	2,888		$	3,037	$	8,340	$	8,281
Gross profit	536			819		1,972		1,569
Operating income (loss)	(34		)	331		359		272
Net income (loss)	(103		)	255		154		62