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. 02, 2016

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 2, 2016 and January 3, 2015:



	January 2, 2016		January 3, 2015
Assets
Current assets	$	696	$	912
Property and equipment, net	8,077		8,775
Other assets	142		127
Total assets	$	8,915	$	9,814
Liabilities
Accounts payable	$	2,342	$	923
Accrued expenses	399		199
Current maturities of long-term debt obligations	946		795
Long-term debt obligations, net of current maturities	3,498		3,737
Other liabilities (a)	289		289
Total liabilities	$	7,474	$	5,943

(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 2015 and 2014:



	For the fiscal years ended
	January 2, 2016			January 3, 2015
Revenues	$	6,838		$	11,137
Gross profit (loss)	(280		)	2,461
Operating income (loss)	(2,205		)	334