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Income Taxes | 12 Months Ended
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Dec. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes [Text Block] | 14. Income Taxes The income tax expense (benefit) differs from the amount that would have resulted from applying the combined Canadian federal and provincial statutory income tax rate to earnings (loss) from continuing operations before income taxes due to the following:
|  | December 30, 2023 |  |  | December 31, 2022 |  |  | January 1, 2022 |
|  | $ |  |  | $ |  |  | $ |
Earnings (loss) from continuing operations before income taxes |  | (18,641 | ) |  | 4,777 |  |  | 689 |
Canadian statutory rate |  | 26.5% |  |  | 26.5% |  |  | 26.5% |
Income tax expense (benefit) at statutory rate |  | (4,940 | ) |  | 1,266 |  |  | 183 |
Stock-based compensation |  | (778 | ) |  | 1,054 |  |  | (4,714 | )
Change in valuation allowance |  | 5,911 |  |  | (471 | ) |  | 975 |
Disallowed executive compensation |  | 2,372 |  |  | 367 |  |  | 135 |
Foreign tax rate differential |  | 107 |  |  | (156 | ) |  | (73 | )
Change in enacted tax rates |  | 90 |  |  | (9 | ) |  | 17 |
Other |  | 507 |  |  | (1,155 | ) |  | (1,377 | )
Income tax expense (benefit) |  | 3,269 |  |  | 896 |  |  | (4,854 | )
The components of earnings (loss) from continuing operations before income taxes are shown below:
|  | December 30, 2023 |  |  | December 31, 2022 |  |  | January 1, 2022 |
|  | $ |  |  | $ |  |  | $ |
Canada |  | (9,202 | ) |  | (11,455 | ) |  | (10,522 | )
U.S. |  | (9,439 | ) |  | 16,232 |  |  | 11,211 |
Earnings (loss) from continuing operations before income taxes |  | (18,641 | ) |  | 4,777 |  |  | 689 |
The components of income tax expense (benefit) are shown below:
|  | December 30, 2023 |  |  | December 31, 2022 |  |  | January 1, 2022 |
|  | $ |  |  | $ |  |  | $ |
Current income tax expense (benefit): |  |  |  |  |  |  |  |  |
Canada |  | (32 | ) |  | 84 |  |  | (9 | )
U.S. |  | (677 | ) |  | 1,108 |  |  | (283 | )
|  | (709 | ) |  | 1,192 |  |  | (292 | )
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |  |
Canada |  | - |  |  | - |  |  | 299 |
U.S. |  | 3,978 |  |  | (296 | ) |  | (4,861 | )
|  | 3,978 |  |  | (296 | ) |  | (4,562 | )
Income tax expense (benefit) |  | 3,269 |  |  | 896 |  |  | (4,854 | )
Deferred income taxes of the Company are comprised of the following:
|  | December 30, 2023 |  |  | December 31, 2022 |
|  | $ |  |  | $ |
Loss and credit carryovers |  | 43,871 |  |  | 20,201 |
Lease liabilities |  | 29,395 |  |  | 23,609 |
Interest expense limitation (163j) |  | 15,906 |  |  | 9,464 |
Inventory basis differences |  | 3,723 |  |  | 1,805 |
Stock-based compensation |  | 1,255 |  |  | 2,160 |
Right-of-use lease assets |  | (28,285 | ) |  | (23,071 | )
Property, plant and equipment and intangible assets |  | (18,537 | ) |  | (28,088 | )
Other |  | 2,623 |  |  | 2,458 |
|  | 49,951 |  |  | 8,538 |
Less: valuation allowance |  | 50,456 |  |  | 4,826 |
Deferred income tax asset (liability) |  | (505 | ) |  | 3,712 |
The components of the deferred income tax asset (liability) are shown below:
|  | December 30, 2023 |  |  | December 31, 2022 |
|  | $ |  |  | $ |
Canada |  | (325 | ) |  | (325 | )
U.S. |  | - |  |  | 3,978 |
Other |  | (180 | ) |  | 59 |
Deferred income tax asset (liability) |  | (505 | ) |  | 3,712 |
The components of the deferred income tax valuation allowance are as follows:
|  | December 30, 2023 |  |  | December 31, 2022 |
|  | $ |  |  | $ |
Balance, beginning of year |  | 4,826 |  |  | 5,267 |
Increase (decrease) in valuation allowance |  | 45,630 |  |  | (441 | )
Balance, end of year |  | 50,456 |  |  | 4,826 |
The following table details the Company's tax attributes as at December 30, 2023, primarily related to net operating losses, tax credits and capital losses for which it has recorded deferred tax assets:
|  | Gross attribute amount |  |  | Net attribute amount |  |  | Expiration years |
Tax Attributes |  |  |  |  |  |  |  |  |
Net operating losses - Canada | $ | 2,123 |  | $ | 563 |  |  | 2040-2041 |
Net operating losses - U.S. Federal |  | 145,989 |  |  | 30,658 |  |  | 2037 and indefinite |
Net operating losses - U.S. State |  | 103,009 |  |  | 5,613 |  |  | 2027-2043 and indefinite |
Net operating losses - Other |  | 167 |  |  | 50 |  |  | 2028 |
Federal credits - Canada |  | - |  |  | 255 |  |  | N/A |
Federal credits - U.S. |  | - |  |  | 2,833 |  |  | 2031-2043 |
State credits - U.S. |  | - |  |  | 211 |  |  | 2024-2026 |
Federal capital loss - Canada |  | 27,838 |  |  | 3,688 |  |  | N/A |
Total |  |  |  | $ | 43,871 |  |  |  |
The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determinations, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax planning strategies and recent financial operations. Based on this evaluation, as at December 30, 2023, a valuation allowance of $50.5 million (December 31, 2022 - $4.8 million) had been recorded against certain assets to reduce the net benefit recorded in the consolidated financial statements. As the undistributed earnings of the Company's non-Canadian affiliates and associated companies are considered to be indefinitely reinvested, no provision for deferred taxes has been provided thereon. For the years ended December 30, 2023, December 31, 2022 and January 1, 2022, the Company did not identify any material uncertain tax positions or recognize any related tax benefits. The Company believes it has adequately examined its tax positions taken or expected to be taken in a tax return; however, amounts asserted by taxing authorities could differ from the Company's positions. Accordingly, additional provisions on federal, provincial, state and foreign tax-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. Consistent with its historical financial reporting, the Company has classified interest and penalties related to income tax liabilities, when applicable, as part of interest expense in its consolidated statements of operations, and with the related liability on the consolidated balance sheets. The number of years with open tax audits varies depending on the tax jurisdiction. The Company's major taxing jurisdictions are the U.S. (including multiple states) and Canada (Ontario). The Company's 2019 through 2022 tax years (and any tax year for which available non-capital loss carryforwards were generated up to the amount of non-capital loss carryforward) remain subject to examination by the Internal Revenue Service for U.S. federal tax purposes, and tax years 2016 through 2022 remain subject to examination by the appropriate governmental agencies for Canadian federal tax purposes. There are other ongoing audits in various other jurisdictions that are not considered material to the Company's consolidated financial statements.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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