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Discontinued Operations | 9 Months Ended
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Sep. 28, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 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 September 28, 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 39 weeks ended September 28, 2024 and September 30, 2023 have been reflected as discontinued operations in the consolidated statements of operations and comprehensive income (loss) and consist of the following:
| 13 weeks ended |  | 39 Weeks Ended
| September 28, 2024 |  | September 30, 2023 |  | September 28, 2024 |  | September 30, 2023
Revenues | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,795 |
Cost of revenues | — |  |  | — |  |  | — |  |  | 3,992 |
Gross profit | — |  |  | — |  |  | — |  |  | (197) |
Operating expenses from discontinued operations: |  |  |  |  |  |  |
Selling, general and administrative expenses | $ | — |  |  | $ | — |  |  | — |  |  | 1,468 |
Gain on sale of ARCA | — |  |  | — |  |  | — |  |  | (15,824) |
Total operating expenses from discontinued operations | — |  |  | — |  |  | — |  |  | (14,356) |
Operating income from discontinued operations | — |  |  | — |  |  | — |  |  | 14,159 |
Other income (expense) from discontinued operations |  |  |  |  |  |  |
Interest expense, net | — |  |  | — |  |  | — |  |  | (181) |
Other income expense, net | — |  |  | — |  |  | — |  |  | (2) |
Total other income (loss), net | — |  |  | — |  |  | $ | — |  |  | $ | (183) |
Income before provision for income taxes from discontinued operations | — |  |  | — |  |  | — |  |  | 13,976 |
Income tax provision (benefit) | — |  |  | (28) |  |  | — |  |  | 3,158 |
Net income from discontinued operations | $ | — |  |  | $ | 28 |  |  | $ | — |  |  | $ | 10,818 |
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 39 weeks ended September 28, 2024 and September 30, 2023 have been reflected as discontinued operations in the consolidated statements of cash flows and consist of the following:
| 39 weeks ended
| September 28, 2024 |  | September 30, 2023
DISCONTINUED OPERATING ACTIVITIES: |  |  |
Net income from discontinued operations | — |  |  | 10,818 |
Depreciation and amortization | — |  |  | 96 |
Amortization of debt issuance costs | — |  |  | 11 |
Amortization of right-of-use assets | — |  |  | 53 |
Change in deferred taxes | — |  |  | 3,157 |
Gain on sale of ARCA, net of cash | — |  |  | (15,967) |
Gain on sale of GeoTraq | — |  |  | — |
Changes in assets and liabilities: |  |  |
Accounts receivable | — |  |  | 2,932 |
Inventories | — |  |  | 299 |
Prepaid expenses and other current assets | — |  |  | 55 |
Accounts payable and accrued expenses | — |  |  | 866 |
Net cash provided by operating activities from discontinued operations | $ | — |  |  | $ | 2,320 |
DISCONTINUED INVESTING ACTIVITIES: |  |  |
Purchases of property and equipment | — |  |  | (123) |
Purchase of intangible assets | — |  |  | (33) |
Net cash used in investing activities from discontinued operations | $ | — |  |  | $ | (156) |
DISCONTINUED FINANCING ACTIVITIES: |  |  |
Proceeds from note payable | — |  |  | 5,162 |
Payment on related party note | — |  |  | (38) |
Proceeds from issuance of short-term notes payable | — |  |  | (7,291) |
Payments on notes payable | — |  |  | (45) |
Net cash used in financing activities from discontinued operations | $ | — |  |  | $ | (2,212) |
Effect of changes in exchange rate on cash and cash equivalents | — |  |  | (5) |
DECREASE IN CASH AND CASH EQUIVALENTS | — |  |  | (53) |
CASH AND CASH EQUIVALENTS, beginning of period | — |  |  | 53 |
CASH AND CASH EQUIVALENTS, end of period | $ | — |  |  | $ | — |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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