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

Jan. 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 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 January 3, 2015, and December 28, 2013:



	January 3, 2015		December 28, 2013
Assets
Current assets	$	912	$	1,099
Property and equipment, net	8,775		8,713
Other assets	127		137
Total assets	$	9,814	$	9,949
Liabilities
Accounts payable	$	923	$	861
Accrued expenses	199		202
Current maturities of long-term debt obligations	795		797
Long-term debt obligations, net of current maturities	3,737		3,796
Other liabilities (a)	289		469
Total liabilities	$	5,943	$	6,125

(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 2014 and 2013:



	For the fiscal years ended
	January 3, 2015		December 28, 2013
Revenues	$	11,137	$	11,833
Gross profit	2,461		2,766
Operating income	334		956