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v3.23.1

Restatements and Reclassifications | 6 Months Ended
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Jul. 02, 2022
Prior Period Adjustment [Abstract] |
Restatements | Note 3: Restatements and Reclassifications On April 17, 2023, the Company’s management and the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) reached a determination that the Company’s previously issued unaudited consolidated financial statements and related disclosures for each of the quarterly periods ended July 2, 2022 and October 1, 2022, should no longer be relied upon because of a material misstatement contained in those two quarterly unaudited condensed consolidated financial statements. In connection with the Company’s preparation of its unaudited condensed consolidated financial statements and related disclosures for each of the two referenced periods, the Company’s management and Audit Committee relied upon the report issued by a third-party valuation firm to determine the carrying value of the promissory note the Company had received from SPYR Technologies, Inc. (the “SPYR Note”), in connection with the Company’s sale of the assets of its GeoTraq, Inc. subsidiary to SPYR Technologies, Inc. in the second quarter of the Company’s 2022 fiscal year. At December 31, 2022, the Company reviewed the original valuation of the Promissory Note to determine if the original 10.5% used to discount the Note was appropriate. In connection with this review, the Company determined that the discount rate should be revised to 14.5%. The Company’s management and the Audit Committee discussed the matters with Frazier & Deeter, LLC, the Company’s independent registered public accounting firm for the 2022 fiscal year, and with WSRP, LLC, the Company’s independent registered public accounting firm during the second and third quarters in the 2022 fiscal year and prior fiscal periods since 2019, and determined to restate the Company’s unaudited condensed consolidated financial statements for the second and third fiscal quarters ended July 2, 2022, and October 1, 2022. Further, the gain associated with the GeoTraq disposition (Technology segment) has been restated and presented as discontinued operations for the periods ending July 2, 2022. As such, the results of the Technology segment have been reclassified and presented as discontinued operations for the periods ending July 3, 2021. The Company will also file an amended Quarterly Report on Form 10-Q for its third fiscal quarter ended October 1, 2022.
|  | July 2, 2022 |
|  | (Unaudited) |  |  |  | (Unaudited) |
|  | Previously Reported |  | Effect of Restatement |  | (As restated) |
Consolidated balance sheets as of July 2, 2022 |  |  |  |  |  |  |
Note receivable, net |  |  | 11,277 |  |  | (1,813 | ) |  | 9,464 |
Total assets |  | $ | 27,519 |  | $ | (1,813 | ) | $ | 25,706 |
Total liabilities |  |  | 24,301 |  |  | — |  |  | 24,301 |
Accumulated deficit |  |  | (41,914 | ) |  | (1,813 | ) |  | (43,727 | )
Total stockholders' equity (deficit) |  |  | 3,218 |  |  | (1,813 | ) |  | 1,405 |
Total liabilities and stockholders' equity (deficit) |  | $ | 27,519 |  | $ | (1,813 | ) | $ | 25,706 |
|  | For the Thirteen Weeks Ended |  |  | For the Twenty Six Weeks Ended |
|  | July 2, 2022 |  |  | July 2, 2022 |
|  | Previously Reported |  | Effect of Restatement |  | (As restated) |  |  | Previously Reported |  | Effect of Restatement |  | (As restated) |
Selling, general and administrative expenses |  |  | 2,908 |  |  | (2 | ) |  | 2,906 |  |  |  | 5,853 |  |  | (6 | ) |  | 5,847 |
Gain on sale of GeoTraq |  |  | (12,091 | ) |  | 12,091 |  |  | — |  |  |  | (12,091 | ) |  | 12,091 |  |  | — |
Operating income (loss) |  |  | 10,832 |  |  | (12,089 | ) |  | (1,257 | ) |  |  | 9,740 |  |  | (12,085 | ) |  | (2,345 | )
Interest expense, net |  |  | (98 | ) |  | 37 |  |  | (61 | ) |  |  | (290 | ) |  | 37 |  |  | (253 | )
Total other income (expense), net |  |  | (141 | ) |  | 37 |  |  | (104 | ) |  |  | 2,165 |  |  | 37 |  |  | 2,202 |
Income (loss) from operations before provision for income taxes |  |  | 10,691 |  |  | (12,052 | ) |  | (1,361 | ) |  |  | 11,905 |  |  | (12,048 | ) |  | (143 | )
Net income (loss) from continuing operations |  |  | 10,687 |  |  | (12,052 | ) |  | (1,365 | ) |  |  | 11,898 |  |  | (12,048 | ) |  | (150 | )
Net income from discontinued operations, net of tax |  |  | — |  | $ | 10,239 |  | $ | 10,239 |  |  |  | — |  |  | 10,235 |  |  | 10,235 |
Net income (loss) |  | $ | 10,687 |  | $ | (1,813 | ) | $ | 8,874 |  |  | $ | 11,898 |  | $ | (1,813 | ) | $ | 10,085 |
Net income (loss) per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted income (loss) per share from continuing operations |  | $ | 3.39 |  | $ | (3.83 | ) | $ | (0.43 | ) |  | $ | 3.78 |  | $ | (3.82 | ) | $ | (0.05 | )
Basic income per share from discontinued operations |  | $ | — |  | $ | 3.25 |  | $ | 3.25 |  |  | $ | — |  | $ | 3.25 |  | $ | 3.25 |
Diluted income per share from discontinued operations |  | $ | — |  | $ | 2.93 |  | $ | 2.93 |  |  | $ | — |  | $ | 2.93 |  | $ | 2.93 |
Basic income (loss) per share |  | $ | 3.39 |  | $ | (0.58 | ) | $ | 2.82 |  |  | $ | 3.78 |  | $ | (0.58 | ) | $ | 3.20 |
Diluted income (loss) per share |  | $ | 3.06 |  | $ | (0.52 | ) | $ | 2.54 |  |  | $ | 3.40 |  | $ | (0.52 | ) | $ | 2.88 |
|  | For the Twenty Six Weeks Ended |
|  | July 2, 2022 |
|  | Previously Reported |  | Effect of Restatement |  | (As restated) |
OPERATING ACTIVITIES: |  |  |  |  |  |  |
Net income (loss) |  | $ | 11,898 |  | $ | (1,813 | ) | $ | 10,085 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |  |  |  |  |
Accretion of note receivable discount |  |  | (27 | ) |  | (37 | ) |  | (64 | )
Gain on sale of GeoTraq |  |  | (12,091 | ) |  | 1,850 |  |  | (10,241 | )
Net cash provided by (used in) operating activities |  |  | 1,489 |  |  | — |  |  | 1,489 |

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