(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
The (The Nasdaq Capital Market) |
Large accelerated filer | o | Accelerated filer | o | |||||||||||
x | Smaller reporting company | |||||||||||||
Emerging growth company |
Page | ||||||||
March 30, 2024 | December 30, 2023 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade and other receivables, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Intangible assets - Soin, net | |||||||||||
Other intangible assets, net | |||||||||||
Marketable securities | |||||||||||
Deposits and other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities - other | |||||||||||
Due to Soin | |||||||||||
Related party notes payable | |||||||||||
Total current liabilities | |||||||||||
Deferred income taxes, net | |||||||||||
Related party note payable | |||||||||||
Notes payable | |||||||||||
Other noncurrent liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 12) | |||||||||||
Mezzanine equity | |||||||||||
Convertible preferred stock, series S - par value $ | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock, series A - par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Convertible preferred stock, series S - par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity (deficit) | ( | ||||||||||
Total liabilities and stockholders' equity | $ | $ |
For the Thirteen Weeks Ended | |||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||
Revenues | $ | $ | |||||||||
Cost of revenues | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative expenses | |||||||||||
Operating loss | ( | ( | |||||||||
Other income (expense): | |||||||||||
Interest income (expense), net | ( | ||||||||||
Unrealized loss on marketable securities | ( | ( | |||||||||
Other income, net | ( | ||||||||||
Total other income, net | ( | ||||||||||
Income (loss) from continuing operations before provision for income taxes | ( | ( | |||||||||
Income tax benefit | ( | ( | |||||||||
Net income (loss) from continuing operations | ( | ( | |||||||||
Gain (loss) from discontinued operations (including a $ | |||||||||||
Income tax provision for discontinued operations | |||||||||||
Net income (loss) from discontinued operations | |||||||||||
Net income | $ | ( | $ | ||||||||
Net income (loss) per share: | |||||||||||
Net loss per share from continuing operations, basic and diluted | $ | ( | $ | ( | |||||||
Net (loss) income per share from discontinued operations, basic and diluted | $ | $ | |||||||||
Net (loss) income per share, basic and diluted | $ | ( | $ | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
For the Thirteen Weeks Ended | |||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net loss from continuing operations | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock based compensation expense | |||||||||||
Accretion of note receivable discount | ( | ||||||||||
Unrealized loss on marketable securities | |||||||||||
Related party notes issued for shared services | |||||||||||
Change in deferred tax liability | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net of dispositions | ( | ( | |||||||||
Prepaid expenses and other current assets, net of dispositions | |||||||||||
Accounts payable and accrued expenses, net of dispositions | |||||||||||
Deposits and other assets | |||||||||||
Operating cash flows provided by discontinued operations | |||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
INVESTING ACTIVITIES: | |||||||||||
Investing cash flows used in discontinued operations | ( | ||||||||||
Net cash used in investing activities | ( | ||||||||||
FINANCING ACTIVITIES: | |||||||||||
Proceeds from equity financing, net | |||||||||||
Payments on short-term notes payable | ( | ||||||||||
Financing cash flows from discontinued operations | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of changes in exchange rate on cash and cash equivalents | |||||||||||
INCREASE IN CASH AND CASH EQUIVALENTS | |||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | |||||||||||
LESS CASH OF DISCONTINUED OPERATIONS, end of period | |||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | $ | |||||||||
Supplemental cash flow disclosures: | |||||||||||
Interest paid | $ | $ |
Series A-1 Preferred | Series S-1 Preferred | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 30, 2023 | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of Series S stock to liability | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of Series S stock to permanent equity | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for equity financing | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for consulting agreement | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued in lieu of note payable obligations | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for RSU's granted | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 30, 2024 | $ | $ | $ | $ | $ | ( | $ | $ |
Series A-1 Preferred | Series S-1 Preferred | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for equity financing | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for legal settlement | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2023 | $ | $ | $ | $ | $ | ( | $ | $ |
13 weeks ended | |||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||
Revenues | $ | $ | |||||||||
Cost of revenues | |||||||||||
Gross profit | ( | ||||||||||
Operating expenses from discontinued operations: | |||||||||||
Selling, general and administrative expenses | $ | $ | ( | ||||||||
Total operating income from discontinued operations | ( | ||||||||||
Operating income from discontinued operations | |||||||||||
Other expense from discontinued operations | |||||||||||
Interest expense, net | ( | ||||||||||
Other expense, net | ( | ||||||||||
Total other expense, net | ( | ||||||||||
Income before provision for income taxes from discontinued operations | |||||||||||
Income tax provision | |||||||||||
Net income from discontinued operations | $ | $ |
13 weeks ended | |||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||
DISCONTINUED OPERATING ACTIVITIES: | |||||||||||
Net income (loss) from discontinued operations | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs | |||||||||||
Amortization of right-of-use assets | |||||||||||
Change in deferred taxes | |||||||||||
Gain on sale of ARCA, net of cash | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Other assets | ( | ||||||||||
Net cash provided by (used in) operating activities from discontinued operations | $ | $ | |||||||||
DISCONTINUED INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | ( | ||||||||||
Purchase of intangible assets | ( | ||||||||||
Net cash used in investing activities from discontinued operations | $ | $ | ( | ||||||||
DISCONTINUED FINANCING ACTIVITIES: | |||||||||||
Proceeds from note payable | |||||||||||
Payment on related party note | ( | ||||||||||
Payments on short term notes payable | ( | ||||||||||
Payments on notes payable | ( | ||||||||||
Net cash used in financing activities from discontinued operations | $ | $ | ( | ||||||||
Effect of changes in exchange rate on cash and cash equivalents | ( | ||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS | ( | ||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | $ |
March 30, 2024 | December 30, 2023 | ||||||||||
Interest receivable - SPYR | $ | $ | |||||||||
Other receivables | |||||||||||
Trade and other receivables, net | $ | 331000 | $ |
March 30, 2024 | December 30, 2023 | ||||||||||
Prepaid consulting agreement | $ | $ | |||||||||
Prepaid insurance | |||||||||||
Prepaid other | $ | ||||||||||
Total prepaid expenses and other current assets | $ | $ |
March 30, 2024 | December 30, 2023 | ||||||||||
Soin intangibles * | $ | $ | |||||||||
Patents and domains | |||||||||||
Intangible assets | |||||||||||
Less accumulated amortization | ( | ( | |||||||||
Total intangible assets | $ | $ |
Series G Convertible Preferred Shares | Common Shares Equivalent | Amount | |||||||||||||||
Beginning Balance, December 30, 2023 | $ | ||||||||||||||||
Securities received | |||||||||||||||||
Mark-to-market | — | — | ( | ||||||||||||||
Ending Balance, March 30, 2024 |
March 30, 2024 | December 30, 2023 | ||||||||||
Other | $ | $ | |||||||||
Total deposits and other assets | $ | $ |
March 30, 2024 | December 30, 2023 | ||||||||||
Compensation and benefits | $ | $ | |||||||||
Accrued guarantees | |||||||||||
Accrued taxes | |||||||||||
Accrued litigation settlement | |||||||||||
Other | |||||||||||
Total accrued expenses | $ | $ |
Options Outstanding | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | ||||||||||||||||||||
Outstanding at December 30, 2023 | $ | $ | |||||||||||||||||||||
Outstanding at March 30, 2024 | $ | $ | |||||||||||||||||||||
Exercisable at March 30, 2024 | $ | $ |
For the Thirteen Weeks Ended | |||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||
Continuing Operations | |||||||||||
Basic and diluted | |||||||||||
Net loss from continuing operations | $ | ( | $ | ( | |||||||
Weighted average common shares outstanding | |||||||||||
Basic and diluted loss per share from continuing operations | $ | ( | $ | ( | |||||||
Discontinued Operations | |||||||||||
Basic and diluted | |||||||||||
Net income from discontinued operations | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Basic and diluted income per share from discontinued operations | $ | $ | |||||||||
Total | |||||||||||
Basic and diluted | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Weighted average common shares outstanding | |||||||||||
Basic and diluted (loss) income per share | $ | ( | $ | ||||||||
Thirteen Weeks Ended | |||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||
Revenues | |||||||||||
Biotechnology | $ | $ | |||||||||
Discontinued operations | |||||||||||
Total Revenues | $ | $ | |||||||||
Gross profit | |||||||||||
Biotechnology | $ | $ | |||||||||
Discontinued operations | ( | ||||||||||
Total Gross profit | $ | $ | ( | ||||||||
Operating loss | |||||||||||
Biotechnology | $ | ( | $ | ( | |||||||
Discontinued operations | |||||||||||
Total Operating loss | $ | ( | $ | ||||||||
Depreciation and amortization | |||||||||||
Biotechnology | $ | $ | |||||||||
Discontinued operations | |||||||||||
Total Depreciation and amortization | $ | $ | |||||||||
Interest (income) expense, net | |||||||||||
Biotechnology | $ | $ | ( | ||||||||
Discontinued operations | |||||||||||
Total Interest expense, net | $ | $ | ( | ||||||||
Net income (loss) before income taxes | |||||||||||
Biotechnology | $ | ( | $ | ( | |||||||
Discontinued operations | |||||||||||
Total Net income before income taxes | $ | ( | $ |
13 Weeks Ended | 13 Weeks Ended | ||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||
Statement of Operations Data: | |||||||||||
Revenues | $ | — | $ | — | |||||||
Cost of revenues | — | — | |||||||||
Gross profit | — | — | |||||||||
Selling, general and administrative expenses | 1,806 | 1,099 | |||||||||
Operating loss | (1,806) | (1,099) | |||||||||
Interest income, net | (252) | 475 | |||||||||
Unrealized loss on marketable securities | (190) | (247) | |||||||||
Other income, net | 29 | (18) | |||||||||
Net income (loss) before provision of income taxes | (2,219) | (889) | |||||||||
Income tax benefit | (75) | (227) | |||||||||
Net income (loss) from continuing operations | (2,144) | (662) | |||||||||
Income from discontinued operations | — | 13,976 | |||||||||
Income tax provision (benefit) for discontinued operations | — | 3,229 | |||||||||
Net income (loss) from discontinued operations | — | 10,747 | |||||||||
Net loss | $ | (2,144) | $ | 10,085 |
13 Weeks Ended | 13 Weeks Ended | ||||||||||||||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||||||||||||||
Net Revenue | Percent of Total | Net Revenue | Percent of Total | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Revenue from discontinued operations | $ | — | — | % | $ | 3,795 | 100.0 | % | |||||||||||||||
Biotechnology | — | — | % | — | — | % | |||||||||||||||||
Total revenue | $ | — | — | % | $ | 3,795 | 100.0 | % |
13 Weeks Ended | 13 Weeks Ended | ||||||||||||||||||||||
March 30, 2024 | April 1, 2023 | ||||||||||||||||||||||
Gross Profit | Gross Profit Percentage | Gross Profit | Gross Profit Percentage | ||||||||||||||||||||
Gross Profit | |||||||||||||||||||||||
Gross profit from discontinued operations | $ | — | — | % | $ | (197) | -5.2 | % | |||||||||||||||
Biotechnology | — | — | % | — | — | % | |||||||||||||||||
Total gross profit | $ | — | — | % | $ | (197) | -5.2 | % |
13 Weeks Ended March 30, 2024 | 13 Weeks Ended April 1, 2023 | ||||||||||||||||||||||||||||||||||
Biotechnology | Discontinued Operations | Total | Biotechnology | Discontinued Operations | Total | ||||||||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | $ | 3,795 | $ | 3,795 | |||||||||||||||||||||||
Cost of revenue | — | — | — | — | 3,992 | 3,992 | |||||||||||||||||||||||||||||
Gross profit | — | — | — | — | (197) | (197) | |||||||||||||||||||||||||||||
Selling, general and administrative expense | 1,806 | — | 1,806 | 1,099 | (14,355) | (13,256) | |||||||||||||||||||||||||||||
Operating loss | $ | (1,806) | $ | — | $ | (1,806) | $ | (1,099) | $ | 14,158 | $ | 13,059 |
Exhibit Number | Exhibit Description | Form | File Number | Exhibit Number | Filing Date | |||||||||||||||||||||||||||
31.1 | * | |||||||||||||||||||||||||||||||
31.2 | * | |||||||||||||||||||||||||||||||
32.1 | * | |||||||||||||||||||||||||||||||
32.2 | * | |||||||||||||||||||||||||||||||
101.INS | * | Inline XBRL Instance Document | ||||||||||||||||||||||||||||||
101.SCH | * | Inline XBRL Taxonomy Extension Schema Document | ||||||||||||||||||||||||||||||
101.CAL | * | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||||||||||||||||||||||
101.DEF | * | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||||||||||||||||||||||
101.LAB | * | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||||||||||||||||||||||||
101.PRE | * | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
JanOne Inc. | |||||||||||
(Registrant) | |||||||||||
Date: | May 3, 2024 | By: | /s/ Tony Isaac | ||||||||
Tony Isaac | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | May 3, 2024 | By: | /s/ Virland A. Johnson | ||||||||
Virland A. Johnson | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) |
Date: May 3, 2024 | /s/ Tony Isaac | ||||
Tony Isaac | |||||
Chief Executive Officer |
Date: May 3, 2024 | /s/ Virland A. Johnson | ||||
Virland A. Johnson | |||||
Chief Financial Officer |
Date: May 3, 2024 | /s/ Tony Isaac | ||||
Tony Isaac | |||||
Chief Executive Officer |
Date: May 3, 2024 | /s/ Virland A. Johnson | ||||
Virland A. Johnson | |||||
Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) $ in Millions |
3 Months Ended |
---|---|
Apr. 01, 2023
USD ($)
| |
Income Statement [Abstract] | |
Gain on sale | $ 15.8 |
Background |
3 Months Ended |
---|---|
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background The accompanying consolidated financial statements include the accounts of JanOne Inc., a Nevada corporation, and its subsidiaries (collectively the “Company” or “JanOne”). The Company had two operating segments – Biotechnology and Recycling. In connection with the sale of ARCA Recycling, Inc. (“ARCA Recycling”) during March 2023, the accounts for the Recycling segment have been presented as discontinued operations in the accompanying consolidated financial statements. Biotechnology During September 2019, JanOne, through its biotechnology segment, broadened its business perspectives to become a pharmaceutical company focused on finding treatments for conditions that cause severe pain and bringing to market drugs with non-addictive pain-relieving properties. Effective December 28, 2022, the Company acquired Soin Therapeutics LLC, a Delaware limited liability company (“STLLC”), and its product, a patent-pending, novel formulation of low-dose naltrexone, (“JAN123”). The product is being developed for the treatment of Complex Regional Pain Syndrome (CRPS), an indication that causes severe, chronic pain generally affecting the arms or legs. At present, there are no truly effective treatments for CRPS. Because of the relatively small number of patients afflicted with CRPS, the FDA has granted Orphan Drug Designation for any product approved for treatment of CRPS. This designation will provide the Company with tax credits for its clinical trials, exemption of user fees, and the potential of seven years of market exclusivity following approval. In addition, development of orphan drugs currently also involves smaller trials and quicker times to approval, given the limited number of patients available to study. However, there can be no assurance that the product will receive FDA approval or that it will result in material sales. Recycling ARCA Recycling was the Company’s Recycling segment and provides turnkey recycling services for electric utility energy efficiency programs in the United States. ARCA Canada Inc. (“ARCA Canada”) provides turnkey recycling services for electric utility energy efficiency programs in Canada. Customer Connexx, LLC (“Connexx”) provides call center services for ARCA Recycling and ARCA Canada. On March 9, 2023, retroactive to March 1, 2023, the Company entered into a Stock Purchase Agreement with VM7 Corporation, a Delaware corporation, under which the Buyer agreed to acquire all of the outstanding equity interests of (a) ARCA Recycling, Inc., a California corporation, (b) Customer Connexx LLC, a Nevada limited liability company, and (c) ARCA Canada Inc., a corporation organized under the laws of Ontario, Canada (“ARCA Canada”; and, together with ARCA and Connexx, the “Subsidiaries”). The principal of the Buyer is Virland A. Johnson, our Chief Financial Officer. The sale of all of the outstanding equity interests of the Subsidiaries to the Buyer under the Purchase Agreement was consummated simultaneously with the execution of the Purchase Agreement (see Note 17). The Company's Board of Directors unanimously approved the Purchase Agreement and the Disposition Transaction. In connection with the disposition of ARCA Recycling, accounts for the Recycling segment have been presented as discontinued operations in the accompanying consolidated financial statements (see Note 4). The Company reports on a 52- or 53-week fiscal year. The Company’s 2023 fiscal year (“2023”) ended on December 30, 2023, and the current fiscal year (“2024”) will end on December 28, 2024. Going concern The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business, however, the issues described below raise substantial doubt about the Company’s ability to do so. The Company currently faces a challenging competitive environment and is focused on improving its overall profitability and liquidity, which includes managing expenses. The Company reported a net loss from continuing operations of approximately $2.1 million for the 13 weeks ended March 30, 2024. Additionally, as of March 30, 2024, the Company has total current assets of approximately $1.2 million and total current liabilities of approximately $8.1 million resulting in a net negative working capital of approximately $6.9 million. Cash used in operations from continuing operations was approximately $544,000. Additionally, stockholders' equity, as of March 30, 2024, is approximately $3.8 million. The Company intends to raise funds to support future development of JAN 123 and JAN 101 either through capital raises or structured arrangements. However, the success of such funding cannot be assured. The ability of the Company to continue as a going concern is dependent upon the success of future capital raises or structured settlements to fund the required testing to obtain FDA approval of JAN 123 and JAN 101, as well as to fund its day-to-day operations. Such approval is contingent on several factors and no assurance can be provided that approval will be obtained. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. While the Company will actively pursue these additional sources of financing, management cannot make any assurances that such financing will be secured or FDA approvals will be obtained.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2: Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in conformity with U.S. GAAP. In our opinion, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. However, the Company’s results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Form 10-K for the fiscal year ended December 30, 2023. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in connection with the accompanying consolidated financial statements include the fair value in connection with the Series S convertible preferred stock issued in the Soin merger, valuation allowance against deferred tax assets, and estimated useful lives for intangible assets. Financial Instruments Financial instruments consist primarily of cash equivalents, trade and other receivables, and obligations under accounts payable, accrued expenses and notes payable. The carrying amounts of cash equivalents, trade receivables and other receivables, accounts payable, accrued expenses and short-term notes payable approximate fair value because of the short maturity of these instruments. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 requires, among other updates, enhanced disclosures about significant segment expenses that are regularly provided to the CODM, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires enhanced annual disclosures regarding the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures.
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Mergers and Acquisitions |
3 Months Ended |
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Mar. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Mergers and Acquisitions | Note 3: Mergers and Acquisitions Soin Pharmaceuticals Effective January 24, 2024, the Company, Amol Soin (“Dr. Soin”), and Soin Therapeutics LLC, a wholly-owned subsidiary of the Company that was had acquired from Dr. Soin entered into an amendment (the “Soin Amendment”) to the parties’ Agreement and Plan of Merger that was dated as of December 28, 2022 (the “Soin Agreement”). With reference to the Soin Agreement, the parties to the Soin Amendment agreed that the $3.0 million convertible tranche (the first of the three original conversion tranches under the Soin Agreement) would be payable to Dr. Soin in cash rather than through his conversion of shares of the Series S Convertible Preferred Stock (the “Soin Preferred”) that constituted the consideration under the Soin Agreement. We tendered the first $100,000 amended tranche cash payment to Dr. Soin in March 2024; the second amended tranche cash payment to Dr. Soin, also in the amount of $100,000, is due on July 1, 2024; and the third amended tranche cash payment to Dr. Soin, in the amount of $2.8 million, is due on December 31, 2024. During the pendency of the amended cash tranche period, Dr. Soin agreed that he would not convert any of his shares of Soin Preferred. After we have tendered the second and third amended tranche cash payments to Dr. Soin, his conversion rights for the second and third original conversion tranches will remain convertible under the original provisions of the Soin Agreement and the related Certificate of Designation for the Soin Preferred. If we do not tender the second and third amended tranche cash payments to Dr. Soin, we agreed that we will transfer to him the membership interests of Soin Therapeutics LLC, and he will transfer to us the shares of Soin Preferred for cancellation. In connection with the Soin Amendment, the Company reclassified the $3.0 million convertible tranche, originally valued at approximately $2.7 million on our balance sheet, from mezzanine equity to current liabilities, and reclassified the $10.0 million convertible tranche, originally valued at approximately $8.0 million on our balance sheet, to permanent equity. As of March 30, 2024, the outstanding balance in mezzanine equity relates to the $17.0 million convertible tranche originally valued at approximately $3.9 million.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Note 4: Discontinued Operations On March 9, 2023, the Company discontinued operations of its Recycling segment as follows: On March 9, 2023, the Company executed a Stock Purchase Agreement with VM7 Corporation, a Delaware corporation, under which, as of March 1, 2023, the Buyer agreed to acquire all of the outstanding equity interests of (a) ARCA Recycling, Inc., a California corporation, (b) Customer Connexx LLC, a Nevada limited liability company, and (c) ARCA Canada Inc., a corporation organized under the laws of Ontario, Canada (“ARCA Canada”; and, together with ARCA and Connexx, the “Subsidiaries”). The principal of the Buyer is Virland A. Johnson, our Chief Financial Officer. The sale of all of the outstanding equity interests of the Subsidiaries to the Buyer under the Purchase Agreement was consummated simultaneously with the execution of the Purchase Agreement. As of March 30, 2024 and December 30, 2023, no Recycling assets or liabilities were included in discontinued operations. In accordance with the provisions of ASC 205-20, the Company has not included in the results of continuing operations the results of operations of the discontinued operations in the consolidated statements of operations and comprehensive income (loss). The results of operations for these entities for the 13 weeks ended March 30, 2024 and April 1, 2023 have been reflected as discontinued operations in the consolidated statements of operations and comprehensive income (loss) and consist of the following:
In accordance with the provisions of ASC 205-20, the Company has separately reported the cash flow activity of the discontinued operations in the consolidated statements of cash flows. The cash flow activity from discontinued operations for the 13 weeks ended March 30, 2024 and April 1, 2023 have been reflected as discontinued operations in the consolidated statements of cash flows and consist of the following:
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Trade and other receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade and other receivables | Note 5: Trade and other receivables The Company’s trade and other receivables as of March 30, 2024 and December 30, 2023, respectively, were as follows (in $000’s):
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Prepaids and other current assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaids and other current assets | Note 6: Prepaids and other current assets Prepaids and other current assets as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Note 7: Intangible Assets Intangible assets as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
*The Soin intangibles acquired by the Company consist of the following: 1.Two pending patents and one approved patent related to the methods of using low-dose Naltrexone to treat chronic pain; 2.Final formula for Naltrexone; and 3.Orphan drug designation as approved by the FDA. Intangible amortization expense was $639,000 and $363,000 for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively.
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Marketable Securities |
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | Marketable Securities Marketable securities consist of the following (in $000’s, except shares):
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Deposits and other assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Deposits and other assets | Note 9: Deposits and other assets Deposits and other assets as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
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Accrued Liabilities |
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Accrued Liabilities | Note 10: Accrued Liabilities Accrued liabilities as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
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Debt |
3 Months Ended |
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Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 7, 2024, the Company amended its outstanding related party promissory obligations (the “ICG Note”) in favor of Isaac Capital Group (“ICG”) to add a convertibility provision. In accordance with Nasdaq Rules, the per-share conversion price was set at $0.61, subject to standard adjustments for (i) stock dividends and splits, (ii) subsequent rights offerings, and (iii) pro rata distributions. The Company’s board of directors provided its approvals of the amendments on February 7, 2024. On March 6, 2024, ICG entered into a Note Purchase Agreement with an otherwise unaffiliated third party, under which the third party acquired the ICG Note. The terms and conditions of the ICG Note were not modified in connection with its acquisition by the third party. The principal amount of the ICG Note on the date of acquisition was approximately $1.2 million. On March 25, 2024, the third party converted $183,000 of the Company's obligation under the ICG Note into 300,000 shares of the Company's common stock. As of March 30, 2024, the amount outstanding on the ICG Note was approximately $987,000. On February 7, 2024, the Company amended its outstanding related party promissory obligations (the “Live Note”) in favor of Live Ventures Incorporated (“Live”) to add a convertibility provision. In accordance with Nasdaq Rules, the per-share conversion price for each obligation, as amended, was set at $0.61, subject to standard adjustments for (i) stock dividends and splits, (ii) subsequent rights offerings, and (iii) pro rata distributions. The Company’s board of directors provided its final approvals of the amendments on February 7, 2024. On March 6, 2024, Live entered into a Note Purchase Agreement with with another otherwise unaffiliated third party, under which under which the third party acquired the Live Note. The terms and conditions of the acquired Live Note were not modified in connection with its acquisition by the third party. The principal amount of the Live Note on the date of acquisition was approximately $1.0 million. On March 22, 2024, the third party converted $183,000 of the Company's obligation under the Live Note into 300,000 shares of the Company's common stock. As of March 30, 2024, the amount outstanding on the Live Note was approximately $819,000.
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Commitments and Contingencies |
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Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12: Commitments and Contingencies Litigation SEC Complaint On August 2, 2021, the U.S. Securities and Exchange Commission (“SEC”) filed a civil complaint (the “SEC Complaint”) in the United States District Court for the District of Nevada naming the Company and one of its executive officers, Virland Johnson, the Company's Chief Financial Officer, as defendants (collectively, the “Defendants”). The SEC Complaint alleges financial, disclosure and reporting violations against the Company and the executive officer under Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5. The SEC Complaint also alleges various claims against the executive officer under Sections 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, 13a-14, 13b2-1, and 13b2-2. The SEC seeks permanent injunctions and civil penalties against the Defendants, and an officer-and-director bar against the executive officer. The foregoing is only a general summary of the SEC Complaint, which may be accessed on the SEC’s website at https://www.sec.gov/litigation/litreleases/2021/lr25155.htm. The Company continues to assert that the SEC’s pursuit of this matter will not result in any benefit to investors and instead will only serve as a distraction from its core business. On October 1, 2021, the Company, filed a motion with the court to dismiss the complaint. The SEC filed its response opposing the motions on November 1, 2021.On September 7, 2022, the motions to dismiss were denied by the court. Pursuant to the automatic stay of proceedings under the Private Securities Litigation Reform Act, all discovery was stayed pending the motions to dismiss and continues to be stayed pending the June 23, 2023 mediation to which all of the parties have agreed. As of the date of these financial statements, the Company and the SEC have reached a settlement agreement in principal, the written agreement for which was executed by the Company and the SEC and was filed with the Clerk of the Court to be signed by the judge. Skybridge On December 29, 2016, the Company served a Minnesota state court complaint for breach of contract on Skybridge Americas, Inc. (“SA”), the Company’s primary call center vendor throughout 2015 and most of 2016. The Company sought damages in the millions of dollars as a result of alleged overcharging by SA and lost client contracts. On January 25, 2017, SA served a counterclaim for unpaid invoices in the amount of approximately $460,000 plus interest and attorneys’ fees. On March 29, 2017, the Hennepin County district court (the “District Court”) dismissed the Company’s breach of contract claim based on SA’s overuse of its Canadian call center but permitted the Company’s remaining claims to proceed. Following motion practice, on January 8, 2018 the District Court entered judgment in SA’s favor, which was amended as of February 28, 2018, for a total amount of approximately $614,000, including interest and attorneys’ fees. On March 4, 2019, the Minnesota Court of Appeals (the “Court of Appeals”) ruled and (i) reversed the District Court’s judgment in favor of Skybridge on the call center location claim and remanded the issue back to the District Court for further proceedings, (ii) reversed the District Court’s judgment in favor of Skybridge on the net payment issue and remanded the issue to the District Court for further proceedings, and (iii) affirmed the District Court’s judgment in Skybridge’s favor against the Company’s claim that Skybridge breached the contract when it failed to meet the service level agreements. As a result of the decision by the Court of Appeals, the District Court’s award of interest and attorneys’ fees, etc. was reversed. The Company and SA held a mediation session in July 2020. Trial was held in August 2020 and on February 1, 2021, the District Court assessed damages against the Company in the amount of approximately $715,000 plus interest, fees, and costs and attorneys’ fees of $475,000. In subsequent proceedings, the Appeals Court affirmed the District Court judgment. Of the total amount awarded to SA, less the funds that the Company had previously deposited with the District Court, SA remains entitled to approximately $422,000 of statutory interest, which obligation has been assumed by the Buyer in connection with the ARCA and Subsidiaries Disposition transaction. On April 10, 2024, SA sold its judgment to an otherwise unaffiliated third party for the face value of the judgment and the interest accrued thereon through that date (an aggregate of $433,920.03), plus accrued legal fees (in the amount of $18,123.50) to which SA was entitled in accordance with the terms of the underlying agreement with the Company and with the judgment. The purchaser agreed to forbear from enforcing the judgment, subject to the Company’s repayment or his conversion thereof. In connection with the third-party’s forbearance, the Company issued its promissory note to such person in the initial principal amount of 147,956.47, which bears interest at the rate of 10% per annum, and, as with the underlying judgment, is convertible into shares of the Company’s common stock at a fixed per-share conversion price of $2.60. GeoTraq On or about April 9, 2021, GeoTraq, Gregg Sullivan, Tony Isaac, and we, among others, resolved all of their claims that related to, among other items, the Company's acquisition of GeoTraq in August 2017, all post-acquisition activities, and Mr. Sullivan’s post-acquisition employment relationship with GeoTraq (all of such claims, the “GeoTraq Matters”). The resolution was effectuated through the parties’ execution and delivery of a Settlement Agreement and Mutual Agreement of Claims (the “GeoTraq Settlement Agreement”). Under the terms of the Settlement Agreement, the Company, on its own behalf and on behalf of GeoTraq and Mr. Isaac, agreed to tender to Mr. Sullivan an aggregate of $1.95 million (the “GeoTraq Settlement Consideration”) in the following manner: (i) $250,000, which was tendered in cash on or about the date of the Settlement Agreement and (ii) up to 10 quarterly installments of not less than $170,000 that commenced on June 1, 2021, and continued not less frequently than every three months thereafter (the “GeoTraq Installments”). The Company may tender the GeoTraq Installments in cash or in the equivalent value of shares of its common stock (the value of the shares to be determined by a formula set forth in the Settlement Agreement), in either case at the Company's discretion. The Company may also prepay one or more GeoTraq Installments in full or in part at any time or from time to time either in cash or in shares of its common stock (a “GeoTraq Prepayment”). If the Company elected to prepay one or more GeoTraq Installments with shares of its common stock, Mr. Sullivan reserved the right not to consent to a tender thereof in excess of 50% of the value of that specific GeoTraq Prepayment; however, Mr. Sullivan was restricted in the reasons for which he can refuse to provide his written consent. The number of shares of the Company's common stock to be issued upon any GeoTraq Prepayment is determined by a different formula than the one to be utilized for a GeoTraq Installment. On March 17, 2023, the Company converted 5,185 of Mr. Sullivan’s Series A-1 Preferred shares and issued 103,707 shares of the Company's common stock as payment for its quarterly installment. On June 1, 2023, the Company converted 7,697 of Mr. Sullivan’s Series A-1 Preferred shares into 153,941 shares of the Company’s common stock in payment of its June 30, 2023 quarterly installment. On September 1, 2023, the Company converted 14,471 of Mr. Sullivan’s Series A-1 Preferred shares into 289,421 shares of the Company’s common stock in payment of its September 30, 2023 quarterly installment. As of September 30, 2023, the full balance due under the Settlement Agreement had been repaid and the remaining 1,505 shares of Mr. Sullivan’s Series A-1 Preferred shares were returned to the Company for cancellation without any further consideration. The parties to the Settlement Agreement released and forever discharged one another from any and all known and unknown claims that were asserted or could have been asserted arising out of the GeoTraq Litigation Matters. Alixpartners, LLC On October 19, 2022, Alixpartners, LLC filed a complaint in the Supreme Court of the State of New York, County of New York, styled Alixpartners, LLC, plaintiff/petitioner, against JanOne Inc., Index No. 653877/2022. Plaintiff alleged the breach of an agreement and sought damages in the amount of approximately $345,000. The Company denied that obligation. After extensive negotiations, the parties reached a settlement, pursuant to which the Company agreed to pay to Alixpartners the sum of $125,000 in two tranches and to provide a confession of judgment in its favor in the amount of approximately $450,000, which represented the amount sought in the complaint plus interest thereon. The confession of judgment will be null and void and the complaint will be dismissed with prejudice upon the Company tendering both tranches timely. The Company tendered both settlement payments in May 2023, and the complaint was subsequently dismissed. Sieggreen In a matter pending in the United States District Court for the District Of Nevada, Case No. 2:21-cv-01517-CDS-EJY, styled as Sieggreen, Individually and On Behalf of All Others Similarly Situated, Plaintiff, v. Live Ventures Incorporated, Jon Isaac, and Virland A. Johnson, Defendants, the Company was added as a defendant on March 6, 2023, and was served on March 23, 2023. Plaintiff has alleged causes of action against the Company for (i) violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and (ii) violation of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) promulgated thereunder. In June 2023 the Company filed a Motion to Dismiss, regarding which, as of the date of these financial statements, the Court has not ruled. The Company strongly disputes and denies all of the allegations contained therein and will continue to defend itself vigorously against the claims. Main/270 The Company is a defendant in an action filed on April 11, 2022, in the U.S. District Court Southern District of Ohio, Eastern Division, styled, Trustees Main/270, LLC, Plaintiff, vs ApplianceSmart, Inc. and JANONE, Inc., Defendant, Case no.: 2:22-cv-01938-ALM-EPD. The Company was a guarantor of the lease between the Plaintiff and ApplianceSmart, Inc. Plaintiff alleged a cause of action against the Company in respect of the guaranty and seeks approximately $90,000 therefor. Plaintiff also seeks approximately $1,420,000 against ApplianceSmart and the Company on a joint and several basis. The Company and Live Ventures Incorporated (“Live Ventures”), the parent company of ApplianceSmart, have an agreement, pursuant to which all attorney's fees and any judgment will be divided equally between the parties. Nevertheless, the Company does not believe that it is obligated to Plaintiff in that amount and the parties continue to negotiate a potential settlement. Westerville Square In an attempt to recover payments due under a lease, in 2021, Westerville Square, Inc., as the landlord, initiated a civil action against the Company, styled Westerville Square, Inc. v. Appliance Recycling Centers Of America, Inc., et al., in the Court of Common Pleas of Franklin County, Ohio, Case No. 19 CV 8627. The case was stayed during the bankruptcy proceedings of ApplianceSmart, Inc., and was reinstated on June 7, 2021. The landlord is currently seeking $120,000, which amount is disputed by the Company. Effective June 4, 2023, the parties settled the matter, pursuant to which settlement the Company tendered the sum of $110,000 to the landlord, the parties entered into a Settlement Agreement and Release, and the case was dismissed with prejudice. Other Commitments On December 30, 2017, the Company disposed of its retail appliance segment and sold ApplianceSmart to Live Ventures, a related party. In connection with that sale, as of January 2, 2021, the Company accrued an aggregate amount of future real property lease payments of approximately $767,000 which represented amounts guaranteed or which may have been owed under certain lease agreements to three third party landlords in which the Company either remained the counterparty, was a guarantor, or had agreed to remain contractually liable under the lease (“ApplianceSmart Leases”). A final decree was issued by the court on February 28, 2022, upon the full satisfaction of the Plan, at which time ApplianceSmart emerged from Chapter 11. During the year ended December 30, 2023, the Company reversed approximately $637,000 of the accrual, as the Company is no longer liable for two of these guarantees upon ApplianceSmart's emergence from bankruptcy. As of December 30, 2023, a balance of approximately $130,000 remains as an accrued liability due to an ongoing dispute concerning one of the leases. The Company and Live Ventures have agreed to divide in half between them any ultimate balance owing thereunder and any attorneys’ fees expended in relation thereto. The Company is party from time to time to other ordinary course disputes that we do not believe to be material to our financial condition as of March 30, 2024.
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Stockholders' Equity |
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Stockholders' Equity | Note 13: Stockholders’ Equity Common Stock: Our Articles of Incorporation authorize 200,000,000 shares of common stock that may be issued from time to time having such rights, powers, preferences and designations as the Board of Directors may determine. During the 13 weeks ended March 30, 2024 and April 1, 2023, no shares of common stock were issued in lieu of professional services. On August 18, 2023, the Company entered into a Securities Purchase Agreement with a certain institutional investor for the sale by the Company in a registered direct offering of: (i) 418,000 shares of the Company’s common stock, par value $0.001 per share, at an offering price of $0.8811 per share and (ii) pre-funded warrants exercisable for up to 481,348 shares of Common Stock to the Investor at an offering price equal to $0.8801 per pre-funded Warrant. In connection with the Securities Purchase Agreement, during the 13 weeks ended March 30, 2024, the Company issued 27,738 shares of its common stock to three third-parties in exchange for brokerage services. On October 9, 2023, the stockholders approved the Company's 2023 Equity Incentive Plan (the “2023 Plan”) at its Annual Meeting of Stockholders held in October 2023, the Company's Compensation Committee awarded 908,852 Restricted Stock Units (“RSU's”) to various employees of the Company. The RSU's were immediately vested, and the total value of the award was $345,000 based upon the closing price of $0.3796 of the Company's stock on October 9, 2023. The 2023 Plan having been approved by stockholders, 908,852 shares of the Company's common stock were issued during the 13 weeks ended March 30, 2024. On February 23, 2024, the Company entered into Unit Purchase Agreements with two otherwise unaffiliated third-party investors, pursuant to which each Investor agreed to purchase 408,163 units of securities from the Company, at a price per Unit of $0.7350, for an aggregate purchase price of $300,000 per investor for an aggregate price of $600,000. Each Unit consists of one share of the Company’s common stock and one warrant to purchase an additional share of common stock. The per-Unit price is allocated as follows: $0.61 per share of common stock and $0.125 per Warrant. The Warrant has a three-year term and will be immediately exercisable. Each Warrant is exercisable at $0.61 per share. The Company intends to use the proceeds from the Unit Purchases for its working capital needs. Further, the Company issued an additional 40,816 shares of its common stock to another party in exchange for brokerage services rendered. On March 4, 2024, the Company entered into a two-year Consulting Agreement (the “Consulting Agreement”) with Jon Isaac, pursuant to which he will provide a variety of services to the Company. In connection with the Consulting Agreement, the Company issued to Mr. Isaac 200,000 restricted shares of its common stock (see Note 18). On March 22, 2024, pursuant to the terms and conditions of a promissory note, the Company converted $183,000 of obligations into 300,000 shares of the Company's common stock (see Note 11). On March 25, 2024, pursuant to the terms and conditions of a promissory note, the Company converted $183,000 of obligations into 300,000 shares of the Company's common stock (see Note 11). As of March 30, 2024, and December 30, 2023, there were 7,551,379 and 4,957,647 shares, respectively, of common stock issued and outstanding. Equity Offerings: The Company's 2023 Plan, which was adopted by the Board in August 2023 and approved by the stockholders at the 2023 Annual Meeting of Stockholders, replaces the 2016 Plan, which replaced the 2011 Plan. Under the 2023 Plan, the maximum aggregate number of shares, which may be subject to or delivered under Awards granted under the Plan is two million (2,000,000) shares. Awards may be in the form of a Stock Award, Option, Stock Appreciation Right, Stock Unit, or Other Stock-based Award granted in accordance with the terms of the respective Plan. During the 13 weeks ended March 30, 2024, the Company recognized $345,000 in share-based compensation expense related to the 908,852 RSU's that were awarded and immediately vested (see above). The Company's 2016 Plan authorizes the granting of awards in any of the following forms: (i) incentive stock options, (ii) nonqualified stock options, (iii) restricted stock awards, and (iv) restricted stock units, and expires on the earlier of October 28, 2026, or the date that all shares reserved under the 2016 Plan are issued or no longer available. On November 4, 2020, the Company amended the 2016 Plan to increase the issuance of common shares from 400,000 to 800,000. The vesting period is determined by the Board of Directors at the time of the stock option grant. As of March 30, 2024 and December 30, 2023, 100,000 options were outstanding under the 2016 Plan. The Company's 2011 Plan authorizes the granting of awards in any of the following forms: (i) stock options, (ii) stock appreciation rights, and (iii) other share-based awards, including but not limited to, restricted stock, restricted stock units or performance shares, and expired on the earlier of May 12, 2021, or the date that all shares reserved under the 2011 Plan are issued or no longer available. As of March 30, 2024 and December 30, 2023, 14,000 were outstanding under the 2011 Plan. No additional awards will be granted under the 2011 Plan. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. There were no stock options granted during the 13 weeks ended March 30, 2024. Additional information relating to all outstanding stock options is as follows:
The Company recognized $0 and $8,000 of share-based compensation expense related to stock options for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively. As of April 1, 2023, the Company has the Company had no unrecognized share-based compensation expense associated with equity awards. Series A-1 Preferred Stock Shares of Series A-1 Preferred Stock are convertible into the Company’s common shares at a ratio of 20:1. No shares were converted during the 13 weeks ended March 30, 2024. As of March 30, 2024 and December 30, 2023, there were 176,230 shares of Series A-1 Preferred Stock outstanding. Series S Preferred Stock On December 28, 2022 the Company acquired Soin Therapeutics by way of merger. In connection with this transaction, with a potential value of up to $30 million, the Company tendered 100,000 shares of the Company's Series S Convertible Preferred Stock. Shares of Series S Convertible Preferred Stock are convertible into the Company’s common shares at a ratio of 1:1. As of March 30, 2024 and December 30, 2023, there were 100,000 shares of Series S Convertible Preferred Stock outstanding.
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Mezzanine Equity |
3 Months Ended |
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Mar. 30, 2024 | |
Mezzanine equity [Abstract] | |
Mezzanine Equity | Mezzanine Equity During the 13 weeks ended March 30, 2024, the Company reclassified approximately $2.7 million from mezzanine equity to current liabilities, and approximately $8.0 million from mezzanine equity to permanent equity (see Note 3). Consequently, as of March 30, 2024, the outstanding balance in mezzanine equity was approximately $3.9 million.
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Earnings Per Share |
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Earning Per Share | Note 15: Earnings Per Share Net income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average common shares outstanding do not include shares of restricted stock that have not yet vested, although such shares are included as outstanding shares in the Company’s Consolidated Balance Sheet. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential common shares consist of the additional common shares issuable in respect of restricted share awards, stock options and convertible preferred stock. The following table presents the computation of basic and diluted net income (loss) per share (in $000’s, except share and per–share data):
Potentially dilutive securities totaling 114,000 and 120,000 were excluded from the calculation of diluted earnings per share for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively, because the effects were anti-dilutive based on the application of the treasury stock method. Additionally, 176,230 shares of Series A-1 Preferred Stock, convertible into approximately 3.5 million shares of the Company’s common stock, and 100,000 shares of Series S Preferred Stock, convertible into 3.0 million shares of the Company's commons stock (subject to certain contractual, event-based, and temporal limitations), were excluded from the calculation of diluted earnings per share as, by agreement, these shares could not be converted as of March 30, 2024.
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Income Taxes |
3 Months Ended |
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Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16: Income Taxes The Company recorded an income tax benefit from continuing operations of approximately $75,000 and $227,000 for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively, and an income tax expense from discontinued operations of approximately $0 and $3.2 million for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively. The Company’s overall effective tax rate was 3.4% and 22.9% for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively. The effective tax rates and related provisional tax amounts vary from the U.S. federal statutory rate primarily due to state taxes and certain non-deductible expenses.
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Segment Information |
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Segment Information | Note 17: Segment Information The Company operates within targeted markets through two reportable segments for continuing operations: biotechnology and recycling. The Biotechnology segment commenced operations in September 2019 and is focused on development of new and innovative solutions for ending the opioid epidemic ranging from digital technologies to educational advocacy. The Recycling segment includes all fees charged and costs incurred for collecting, recycling and installing appliances for utilities and other customers. The Recycling segment also includes byproduct revenue, which is primarily generated through the recycling of appliances. The nature of products, services and customers for each segment varies significantly. As such, the segments are managed separately. Our Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”). The CODM evaluates performance and allocates resources based on sales and income from operations of each segment. Operating loss represents revenues less cost of revenues and operating expenses, including certain allocated selling, general and administrative costs. There are no intersegment sales or transfers. Due the sale of Company's Recycling segment during March 2023, it is being presented as discontinued operations for the 13 weeks ended April 1, 2023. The following tables present the Company's segment information for the 13 weeks ended March 30, 2024 and April 1, 2023 (in $000's):
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Related Parties |
3 Months Ended |
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Mar. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 18: Related Parties Shared Services Tony Isaac, the Company’s Chief Executive Officer, is the father of Jon Isaac, President and Chief Executive Officer of Live Ventures and managing member of Isaac Capital Group LLC (“ICG”). Tony Isaac, Chief Executive Officer, and Richard Butler, Board of Directors member of the Company, are members of the Board of Directors of Live Ventures. The Company also shares certain executive, accounting and legal services with Live Ventures. The total services shared were approximately $338,000 and $32,000 for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively. Customer Connexx rents approximately 9,900 square feet of office space from Live Ventures in Las Vegas, Nevada. Effective August 2023, due to the winding down of operations of the Recycling Subsidiaries, the Company ceased leasing office space in the Las Vegas, Nevada facility. The total rent and common area expense was approximately $— and $36,000 for the 13 weeks ended March 30, 2024 and April 1, 2023, respectively. Notes with Live Ventures and ICG On February 7, 2024, the Company entered into a promissory notes with each of Live Ventures and ICG. The initial principal amount of each note is $300,000, with an interest rate of 10% per annum. Pursuant to an amendment to each note, $100,000 of principal, and accrued interest thereon, is due on September 7, 2024 for each note, and the balance of each note is due on December 31, 2024. At the Company’s option, the obligation under each note is convertible after the six- month anniversary thereof at a per-share conversion price of $0.61, subject to standard adjustments for (i) stock dividends and splits, (ii) subsequent rights offerings, and (iii) pro rata distributions. The Company’s board of directors approved the issuance of the two notes on February 7, 2024. As of March 30, 2024, the principal balances outstanding on each of the promissory notes was $300,000. Isaac Consulting Agreement On March 4, 2024, the Company entered into a two-year Consulting Agreement with Jon Isaac, pursuant to which he will provide to the Company (the “Services”): (i) strategic financial advice, including growth strategies, capital allocation, and financial restructuring; (ii) sales and business development advice, including for the acquisition of new clients and new products through networking, referrals, and marketing efforts for our prospective products; (iii) in-depth research and market intelligence on specific industries, sectors, and market trends; (iv) financial models and financial analysis to support strategic decision-making; (v) assistance, through site visits, in the preparation of new client offers and bids for proposed projects; (vi) weekly update calls with management to align on progress of objectives and goals; (vii) enhanced non-confidential materials; (viii) business risk management support; and (ix) other services to which the Company and he may agree that will be memorialized in writing if, when, and as needed during the two-year term. As compensation for the Services, the Company agreed to (i) assign to him two universal life insurance policies that relate to the life of one of the founders of our now-disposed legacy recycling business (the first policy has an accumulated value/surrender value of approximately $3,854 and the second has an accumulated value/surrender value of approximately $468); (ii) contingently tender to him funds in our Canadian counsel’s trust account in the event that the prospective Order of the Court of Appeal for Ontario Canada in the matter styled, Amtim Capital Inc. and Appliance Recycling Centers of America, Case No. COA-23-CV-0156, becomes the final Order of the Court, which amount we estimated not to exceed approximately US$220,000; (iii) issue to him 200,000 restricted shares of our common stock with the per-share value being the average of the Nasdaq historical NOCP closing price during the five trading days prior to our board approving the Consulting Agreement, which shares were awarded from our 2023 Equity Incentive Plan; and (iv) a two-year, straight 10% convertible promissory note in the initial principal amount of $500,000, with a per-share conversion price equivalent to the per-share value of the restricted common stock that he was granted ($1.16). The maturity date of the promissory note is March 4, 2026. The value of the restricted shares was $232,000 on the date issued. As of March 30, 2024, the principal balance outstanding on the promissory note was $500,000
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Subsequent Event |
3 Months Ended |
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Mar. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 19: Subsequent event The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that there have been no events that have occurred that would require adjustments to disclosures in its condensed consolidated financial statements.
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in conformity with U.S. GAAP. In our opinion, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. However, the Company’s results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Form 10-K for the fiscal year ended December 30, 2023.
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Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
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Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in connection with the accompanying consolidated financial statements include the fair value in connection with the Series S convertible preferred stock issued in the Soin merger, valuation allowance against deferred tax assets, and estimated useful lives for intangible assets.
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Financial Instruments | Financial Instruments Financial instruments consist primarily of cash equivalents, trade and other receivables, and obligations under accounts payable, accrued expenses and notes payable. The carrying amounts of cash equivalents, trade receivables and other receivables, accounts payable, accrued expenses and short-term notes payable approximate fair value because of the short maturity of these instruments.
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 requires, among other updates, enhanced disclosures about significant segment expenses that are regularly provided to the CODM, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires enhanced annual disclosures regarding the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures.
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Discontinued Operations (Tables) |
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Discontinued Operations | The results of operations for these entities for the 13 weeks ended March 30, 2024 and April 1, 2023 have been reflected as discontinued operations in the consolidated statements of operations and comprehensive income (loss) and consist of the following:
|
Trade and other receivables (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Trade and Other Receivables | The Company’s trade and other receivables as of March 30, 2024 and December 30, 2023, respectively, were as follows (in $000’s):
|
Prepaids and other current assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaids and Other Current Assets | Prepaids and other current assets as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
|
Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | Intangible assets as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
*The Soin intangibles acquired by the Company consist of the following: 1.Two pending patents and one approved patent related to the methods of using low-dose Naltrexone to treat chronic pain; 2.Final formula for Naltrexone; and 3.Orphan drug designation as approved by the FDA.
|
Marketable Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of marketable securities | Marketable securities consist of the following (in $000’s, except shares):
|
Deposits and other assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits and Other Assets | Deposits and other assets as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
|
Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities as of March 30, 2024 and December 30, 2023 consist of the following (in $000’s):
|
Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of All Outstanding Options Activity | Additional information relating to all outstanding stock options is as follows:
|
Earnings Per Share (Table) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Net Earnings per Share | The following table presents the computation of basic and diluted net income (loss) per share (in $000’s, except share and per–share data):
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | The following tables present the Company's segment information for the 13 weeks ended March 30, 2024 and April 1, 2023 (in $000's):
|
Background (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 30, 2024
USD ($)
segment
|
Apr. 01, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of operating segments | segment | 2 | |||
Potential market exclusivity period | 7 years | |||
Net loss | $ 2,144 | $ 662 | ||
Current assets | 1,191 | $ 346 | ||
Current liabilities | 8,075 | 5,905 | ||
Working capital | 6,900 | |||
Cash used in operating activities | 544 | |||
Stockholders' equity | $ 3,773 | $ 13,560 | $ (3,308) | $ 2,307 |
Mergers and Acquisitions (Details) - Soin Therapeutics LLC - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jan. 24, 2024 |
Dec. 28, 2022 |
Mar. 31, 2024 |
Mar. 30, 2024 |
|
Business Acquisition [Line Items] | ||||
Cash payment tendered | $ 100 | |||
Soin Agreement Convertible Tranche One | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, shares issued, fair value | $ 3,000 | $ 2,700 | ||
Soin Agreement Convertible Tranche Two | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, shares issued, fair value | 10,000 | 8,000 | ||
Soin Agreement Convertible Tranche Three | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, shares issued, fair value | $ 3,900 | $ 17,000 | ||
Tranche One due July 1, 2024 | ||||
Business Acquisition [Line Items] | ||||
Tranche payments due | 100 | |||
Tranche One due December 31, 2024 | ||||
Business Acquisition [Line Items] | ||||
Tranche payments due | $ 2,800 | |||
Series S Convertible Preferred Stock | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, shares issued, fair value | $ 3,000 |
Discontinued Operations - Schedule of Discontinued Operations in Consolidated Statements of Operations (Details) - Discontinued Operations - ARCA And Subsidiaries - Recycling Segment - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Revenues | $ 0 | $ 3,795 |
Cost of revenues | 0 | 3,992 |
Gross profit | 0 | (197) |
Selling, general and administrative expenses | 0 | (14,355) |
Total operating income from discontinued operations | 0 | (14,355) |
Operating income from discontinued operations | 0 | 14,158 |
Other expense from discontinued operations | ||
Interest expense, net | 0 | (181) |
Other expense, net | 0 | (1) |
Total other expense, net | 0 | (182) |
Income before provision for income taxes from discontinued operations | 0 | 13,976 |
Income tax provision | 0 | 3,229 |
Net income from discontinued operations | $ 0 | $ 10,747 |
Trade and other receivables - Schedule of Trade and Other Receivables (Details) - USD ($) $ in Thousands |
Mar. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Receivables [Abstract] | ||
Interest receivable - SPYR | $ 251 | $ 266 |
Other receivables | 80 | 0 |
Trade and other receivables, net | $ 331 | $ 266 |
Prepaids and other current assets - Schedule of Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands |
Mar. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid consulting agreement | $ 732 | $ 3 |
Prepaid insurance | 2 | 72 |
Prepaid other | 65 | 0 |
Total prepaid expenses and other current assets | $ 799 | $ 75 |
Intangible Assets - Schedule of Intangible Assets (Details) $ in Thousands |
Mar. 30, 2024
USD ($)
patent
|
Dec. 31, 2023
USD ($)
patent
|
---|---|---|
Finite Lived Intangible Assets [Line Items] | ||
Number of pending patents | patent | 2 | 2 |
Number of approved patent | patent | 1 | 1 |
Continuing Operations | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 19,297 | $ 19,297 |
Less accumulated amortization | (2,090) | (1,451) |
Total intangible assets | 17,207 | 17,846 |
Soin intangibles | Continuing Operations | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets | 19,293 | 19,293 |
Patents and domains | Continuing Operations | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 4 | $ 4 |
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 639 | $ 363 |
Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Marketable Securities, Value [Roll Forward] | ||
Beginning balance | $ 286 | |
Securities received | 84 | |
Mark-to-market | (190) | $ (247) |
Ending balance | $ 180 | |
Series G Convertible Preferred Shares | ||
Marketable Securities, Shares [Roll Forward] | ||
Beginning balance (in shares) | 9,224 | |
Securities received (in shares) | 8,469 | |
Ending balance (in shares) | 17,693 | |
Common Shares Equivalent | ||
Marketable Securities, Shares [Roll Forward] | ||
Beginning balance (in shares) | 952,442,000 | |
Securities received (in shares) | 846,900,000 | |
Ending balance (in shares) | 1,799,342,000 |
Deposits and other assets - Schedule of Deposits and Other Assets (Details) - USD ($) $ in Thousands |
Mar. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Total deposits and other assets | $ 0 | $ 9 |
Continuing Operations And Discontinued Operations | ||
Total deposits and other assets | $ 0 | $ 9 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 58 | $ 37 |
Accrued guarantees | 1,983 | 3,049 |
Accrued taxes | 103 | 102 |
Accrued litigation settlement | 397 | 397 |
Other | 0 | 48 |
Total accrued expenses | $ 2,541 | $ 3,633 |
Debt (Details) - Related Party - Promissory Note - USD ($) $ / shares in Units, shares in Thousands |
Mar. 25, 2024 |
Mar. 22, 2024 |
Feb. 07, 2024 |
---|---|---|---|
ICG Note | ICG Note | |||
Short Term Debt [Line Items] | |||
Conversion price (in usd per share) | $ 0.61 | ||
Debt face amount | $ 1,200,000 | ||
Debt conversion, converted amount | $ 183,000 | $ 183,000 | |
Principle outstanding balance | $ 987,000 | ||
ICG Note | Equity Unit Purchase Agreements | ICG Note | |||
Short Term Debt [Line Items] | |||
Debt conversion, converted (in shares) | 300 | ||
Live | Live Note | |||
Short Term Debt [Line Items] | |||
Conversion price (in usd per share) | $ 0.61 | ||
Debt face amount | $ 1,000,000 | ||
Debt conversion, converted amount | $ 183,000 | ||
Principle outstanding balance | $ 819,000 | ||
Live | Equity Unit Purchase Agreements | Live Note | |||
Short Term Debt [Line Items] | |||
Debt conversion, converted (in shares) | 300 |
Stockholders' Equity - Schedule of All Outstanding Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 30, 2024 |
Dec. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, beginning balance (in shares) | 114,000 | |
Options outstanding, ending balance (in shares) | 114,000 | 114,000 |
Options outstanding, exercisable (in shares) | 114,000 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning balance (in shares) | $ 5.68 | |
Weighted average exercise price, ending balance (in shares) | 5.68 | $ 5.68 |
Weighted average exercise price, exercisable (in shares) | $ 5.68 | |
Options outstanding, intrinsic value | $ 11 | $ 0 |
Options exercisable, intrinsic value | $ 11 | |
Weighted average remaining contractual life | 5 years 10 months 24 days | 6 years 1 month 6 days |
Weighted average remaining contractual life, exercisable | 5 years 10 months 24 days |
Mezzanine Equity (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 30, 2024
USD ($)
| |
Mezzanine equity [Abstract] | |
Reclassification of Series S stock from mezzanine equity to current liabilities | $ 2,700 |
Reclassification of Series S stock to permanent equity | 7,993 |
Outstanding balance in mezzanine equity | $ 3,900 |
Earnings Per Share - Additional Information (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Potentially dilutive shares excluded from earnings per share calculation | 114,000 | 120,000 |
Preferred Stock | Series A-1 | ||
Potentially dilutive shares excluded from earnings per share calculation | 176,230 | |
Preferred stock convertible into common shares | 3,500,000 | |
Preferred Stock | Series S | ||
Potentially dilutive shares excluded from earnings per share calculation | 100,000 | |
Preferred stock convertible into common shares | 3,000,000 |
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 30, 2024 |
Apr. 01, 2023 |
|
Income Tax Contingency [Line Items] | ||
Income tax (benefit) expense | $ (75) | $ (227) |
Effective tax rate (percent) | 3.40% | 22.90% |
Discontinued Operations | ||
Income Tax Contingency [Line Items] | ||
Income tax (benefit) expense | $ 0 | $ 3,200 |
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