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7. Assets of held for sale - discontinued operations | 12 Months Ended
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Dec. 30, 2017
Notes to Financial Statements |
Assets of held for sale - discontinued operations | Note 7: Assets of held for sale – discontinued operations On December 30, 2017, we signed an agreement to dispose of our Appliancesmart retail appliance segment. ApplianceSmart Holdings LLC (the “Purchaser”), a wholly owned subsidiary of Live Ventures Incorporated, entered into a Stock Purchase Agreement (the “Agreement”) with the Company and ApplianceSmart, Inc. (“ApplianceSmart”), a subsidiary of the Company. ApplianceSmart is a 17-store chain specializing in new and out-of-the-box appliances with annualized revenues of approximately $65,000. Pursuant to the Agreement, the Purchaser purchased from the Company all the issued and outstanding shares of capital stock (the “Stock”) of ApplianceSmart in exchange for $6,500 (the “Purchase Price”). See Note 25. The Purchase Price per agreement is due and payable on or before March 31, 2018. As of December 30, 2017, the Company has an amount due from ApplianceSmart Holdings LLC a subsidiary of Live Ventures Incorporated in the sum of $6,500 recorded as a current asset. Discontinued operations and assets held for sale include our retail appliance business Appliancesmart. Results of operations, financial position and cash flows for this business are separately reported as discontinued operations for all periods presented. The Company made the decision to sell Appliancesmart to eliminate losses and poor financial performance from our retail segment, decrease existing leverage, assign and eliminate long term lease liabilities for store leases, increase cash balances, enhance shareholder value and focus Company resources on its’ two remaining segments, Recycling and Technology. FINANCIAL INFORMATION FOR HELD FOR SALE AND DISCONTINUED OPERATIONS (In Thousands)
|  | 52 weeks |  |  | 52 weeks |
|  | Ended |  |  | Ended |
|  | December 30, 2017 |  |  | December 31, 2016 |
Revenue |  | $ | 56,296 |  |  | $ | 63,130 |
Cost of revenue |  |  | 42,252 |  |  |  | 46,824 |
Gross profit |  |  | 14,044 |  |  |  | 16,306 |
Selling, general and administrative expense |  |  | 15,911 |  |  |  | 17,970 |
Operating loss - discontinued operations |  |  | (1,867 | ) |  |  | (1,664 | )
Other income |  |  | 862 |  |  |  | 141 |
Other expense |  |  | (5 | ) |  |  | (251 | )
Net loss - discontinued operations before income tax benefit |  |  | (1,010 | ) |  |  | (1,774 | )
Income tax benefit |  |  | 270 |  |  |  | 475 |
Net loss - discontinued operations, net of tax |  | $ | (740 | ) |  | $ | (1,299 | )
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (In Thousands) As of December 30, 2017 (date of sale), and December 31, 2016
|  | 2017 |  |  | 2016 |
Accounts Receivable |  | $ | 2,356 |  |  | $ | 1,538 |
Inventories |  |  | 8,836 |  |  |  | 14,793 |
Prepaid expenses |  |  | 173 |  |  |  | – |
Total current assets held for sale |  |  | 11,365 |  |  |  | 16,331 |
Buildings and improvements |  |  | 2,073 |  |  |  | 1,948 |
Equipment |  |  | 1,756 |  |  |  | 1,753 |
Accumulated depreciation |  |  | (3,319 | ) |  |  | (3,148 | )
Restricted cash |  |  | 1,298 |  |  |  | 500 |
Other assets |  |  | 204 |  |  |  | 221 |
Total non-current assets held for sale |  |  | 2,012 |  |  |  | 1,274 |
Total assets held for sale - discontinued operations |  | $ | 13,377 |  |  | $ | 17,605 |
Purchase price |  |  | 6,500 |  |  |  |  |
Loss of sale of assets held for sale |  |  | (6,877 | ) |  |  |  |
Income tax benefit |  |  | 1,842 |  |  |  |  |
Net loss on sale of assets held for sale and discontinued operations, net of tax |  | $ | (5,035 | ) |  |  |  |

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