28. Subsequent Event
|3 Months Ended|
Mar. 30, 2019
|Subsequent Events [Abstract]|
Note 28: Subsequent Events
Sears Holdings Management Corp – Logistics Services
On February 18, 2019, the Company informed Sears Holdings Management Corp – Logistics Services (“Sears”) that Sears may have overcharged ARCA Recycling $642 and that it planned on filing a proof of claim with the trustee in the Sears’ bankruptcy against Sears for the overcharged amount. The Company requested that Sears provide contractual written proof to the contrary supporting their claim for invoices submitted in excess of the contractually agreed upon amounts for transportation services. Sears provided transportation services to ARCA Recycling in fiscal years 2013 through 2018. ARCA Recycling has $559 recorded as outstanding and un-paid accounts payable as of March 30, 2019 and December 30, 2018. The Company is of the opinion that Sears owes ARCA Recycling a net amount due of $83. The overcharged amount has not been corrected in the consolidated results of the Company through March 30, 2019. The Company filed a proof of claim on April 5, 2019 for a net amount owing the Company of $83.
On March 15, 2019, the Company entered into subordination agreements with third parties pursuant to which it agreed to subordinate the payment of indebtedness under the ApplianceSmart Note and the Company’s security interest in the assets of ApplianceSmart and other related parties in exchange for up to $1,200 payable within 15 days of the agreement. ApplianceSmart paid $1,200 to the Company as follows: $100 on March 29, 2019, $250 on April 5, 2019 and $850 on April 15, 2019 as principal payments on the ApplianceSmart Note.
Reverse Stock Split
On April 16, 2019, the Company’s board of directors authorized a one-for-five reverse stock split and a contemporaneous one-for-five (1:5) reduction in the number of authorized shares of common stock, par value $0.001 per share from 50,000,000 to 10,000,000 shares (exact numbers), to take effect for stockholders of record as of April 17, 2019. No fractional shares will be issued.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef