Annual report pursuant to Section 13 and 15(d)

Note 3 - Consolidated Financial Statement Details

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Note 3 - Consolidated Financial Statement Details
 12 Months Ended
Jan. 03, 2016
Notes to Financial Statements  
Condensed Financial Statements [Text Block]
3.
Consolidated financial statement details
 
The following consolidated financial statement details are presented as of the period end dates indicated for the consolidated balance sheets and for each of the periods indicated for the consolidated statements of operations and comprehensive loss.
 
Consolidated balance sheets
 
 
Restricted cash – guaranteed deposits
 
 
 
January 3,
2016
 
 
December 28,
2014
 
Restricted cash – guaranteed deposits
   $ 805     $ —  
 
Restricted cash pertains to deposits which have been guaranteed to a government agency pertaining to estimated value added taxes (VAT) on imported raw materials inventory in Suzhou, China. Typically, the cash is restricted for a contractual term of 12 months or less and is released when the finished goods are exported or the expected imported raw materials are cancelled.
 
Accounts receivable—net:
 
 
 
January 3,
2016
 
 
December 28,
2014
 
Trade accounts receivable
   $ 28,797     $ 30,782  
Other receivables
     1,347       572  
Allowance for doubtful accounts
     (259
)
     (330
)
Accounts receivable—net
   $ 29,885     $ 31,024  
 
Inventories:
 
 
 
January 3,
2016
 
 
December 28,
2014
 
Raw materials
   $ 19,385     $ 25,973  
Work in process
     1,416       2,099  
Finished goods
     4,400       2,743  
Parts and other
     676       775  
Inventories
  $ 25,877     $ 31,590  
 
Inventories are recorded net of a provision for obsolescence as at January 3, 2016 and December 28, 2014 of $673 and $475 respectively.
 
Property, plant and equipment—net:
 
 
 
January 3,
2016
 
 
December 28,
2014
 
Cost (a):
                
Land
   $ 1,648     $ 1,648  
Buildings
     9,852       9,878  
Machinery and equipment (b)
     30,707       31,592  
Office furniture and equipment
     599       1,690  
Computer hardware and software (c)
     3,447       5,930  
Leasehold improvements (d)
     3,232       2,456  
      49,485       53,194  
                 
Less accumulated depreciation (a):
               
Land
     —       —  
Buildings
     (7,719
)
     (7,275
)
Machinery and equipment (b)
     (20,347
)
     (20,545
)
Office furniture and equipment
     (496
)
     (1,513
)
Computer hardware and software (c)
     (2,284
)
     (4,774
)
Leasehold improvements (d)
     (2,196
)
     (1,497
)
      (33,042
)
     (35,604
)
Property, plant and equipment—net
   $ 16,443     $ 17,590  
 
 
 
(a)
During 2015, the Company wrote off fully depreciated assets that were no longer in use with a cost and accumulated depreciation of $6,522.
 
(b)
At January 3, 2016 and December 28, 2014, included within machinery and equipment were assets under capital leases with costs of $2,528 and $3,495, respectively and associated accumulated depreciation of $865 and $916, respectively. The related depreciation expense for the years ended January 3, 2016, December 28, 2014 and December 29, 2013 was $417, $694 and $769, respectively.
 
(c)
At January 3, 2016 and December 28, 2014, included within computer hardware and software were assets under capital leases with costs of $119 and $498, respectively and associated accumulated depreciation of $86 and $417 respectively. The related depreciation expense for the years ended January 3, 2016, December 28, 2014 and December 29, 2013 was $49, $151 and $144, respectively.
 
(
d
)
At January 3, 2016 and December 28, 2014, included within leasehold improvements were assets under capital leases with costs of $nil and $73 respectively, and associated accumulated depreciation of $nil and $42, respectively. The related depreciation expense for the years ended January 3, 2016, December 28, 2014 and December 29, 2013 was $2, $15 and $15 respectively.
 
Accrued liabilities:
 
 
 
January 3,
2016
 
 
December 28,
2014
 
Customer-related
   $ 1,852     $ 2,074  
Payroll
     2,649       4,014  
Professional services
     367       395  
Vendor related
     383       29  
Other
     311       568  
Accrued liabilities
  $ 5,562     $ 7,080  
 
 
Consolidated statements of operations and comprehensive loss
 
Interest expense:
 
 
 
Year ended
January 3,
2016
 
 
Year ended
December 28,
2014
 
 
Year ended
December 29,
2013
 
                         
Long-term debt
   $ —     $ —     $ 76  
Revolving credit facility
     1,035       1,096       1,071  
Amortization of deferred financing costs
     32       385       389  
Obligations under capital leases
     116       212       188  
                         
Interest expense
   $ 1,183     $ 1,693     $ 1,724