Annual report pursuant to Section 13 and 15(d)

Inventory

v3.22.1
Inventory
 12 Months Ended
Jan. 01, 2022
Inventory Disclosure [Abstract]  
Inventory

Note 5: Inventory

Inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or net realizable value and consist of the following as of January 1, 2022 and January 2, 2021, respectively (in $000's):

 

 

 

January 1, 2022

 

 

January 2, 2021

 

Appliances held for resale

 

$

1,104

 

 

$

1,430

 

Raw material - chips

 

 

105

 

 

 

200

 

Total inventory

 

$

1,209

 

 

$

1,630

 

 

The Company provides estimated provisions for the obsolescence of its appliance inventories, as necessary, including adjustments to net realizable value, based on various factors, including the age of such inventory and management’s assessment of the need for such provisions. The Company looks at historical inventory aging reports and margin analyses in determining its provision estimate. A revised cost basis is used once a provision for obsolescence is recorded. No provision for obsolescence was recorded during the years ended January 1, 2022, or January 2, 2021.