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DISCONTINUED OPERATIONS
 12 Months Ended
Jan. 01, 2023
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS
On March 21, 2022, the Company sold substantially all of the assets and certain liabilities of InStaff to Sentech Engineering Services, Inc. (“Sentech”) for a sale price of approximately $30.3 million cash, subject to customary sales price and working capital adjustments specified in the purchase agreement, which were received in the amount of $0.6 million in October 2022. The purchase agreement further provides for deferred consideration of $2 million one year following the date of the acquisition, which is included in Other current assets, see “Note 5 - Other Current Assets”. The sale resulted in a pre-tax gain on sale of discontinued operations of $17.7 million. The Company provided certain back-office services to Sentech through February 2023.

The InStaff financial results for periods prior to the sale have been reflected in our Consolidated Statements of Operations and Comprehensive Income and Consolidated Statements of Cash Flows as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations in the periods presented are classified as discontinued operations in our Consolidated Balance Sheets.

The financial results of InStaff are as follows (dollars in thousands):

Fiscal Year
202220212020
Revenue$16,465 $71,292 $70,765 
Cost of services14,144 60,948 60,585 
Gross profit2,321 10,344 10,180 
Selling expenses1,062 5,684 5,314 
Depreciation24 90 99 
Income from operations of discontinued operations before gain on sale and income taxes $1,235 $4,570 $4,767 
December 26,
2021
Carrying amount of assets included as part of discontinued operations:
Accounts receivable$7,198 
Property and equipment, net201 
Deposits36 
Right-of-use assets - operating leases303 
Intangible assets, net1,648 
Goodwill5,025 
Total assets classified as discontinued operations$14,411 
Carrying amount of liabilities included as part of discontinued operations:
Accrued payroll and expenses$1,129 
Lease liability, current portion133 
Lease liability, less current portion190 
Total liabilities classified as discontinued operations$1,452