JanOne (JAN) - 2021 Q4 - Annual Report

Revenue Performance - Total revenue for the fiscal year ended January 2, 2021, was $33,867,000, a decrease of 3.5% from $35,097,000 for the fiscal year ended December 28, 2019[286] - Revenue from Replacement Appliances increased by $1,953,000 or 14.3%, while Recycling and Byproducts revenue decreased by $3,183,000 or 14.8% due to COVID-19 related facility closures[288] - Total revenue for the fiscal year ended January 2, 2021, was $33,867, a decrease of 3.5% from $35,097 for the fiscal year ended December 28, 2019[1] Cost and Expenses - Cost of revenue decreased by $2,271,000 or 8.3% for the fiscal year ended January 2, 2021, primarily due to cost-cutting efforts and temporary facility closures[289] - Selling, general and administrative expenses decreased by $2,394,000 or 11.8% for the fiscal year ended January 2, 2021, attributed to a temporary reduction in employees and cost-cutting measures[290] - Interest expense net decreased by $976,000 or 65.9% for the fiscal year ended January 2, 2021, primarily due to a decrease in related party debt balance[291] Profitability - Gross profit for the fiscal year ended January 2, 2021, was $8,827,000, representing a gross profit margin of 26.1%, compared to $7,786,000 and 22.2% for the fiscal year ended December 28, 2019[286] - Gross profit increased to $8,827 for the fiscal year ended January 2, 2021, compared to $7,786 in the prior year, reflecting a gross profit margin improvement[1] - Operating loss decreased by $3,225 or 50.4% to $8,996 for the fiscal year ended January 2, 2021, compared to $12,431 in the previous year[1] - The company reported a net loss of $8,498 for the fiscal year ended January 2, 2021, compared to a net loss of $11,964 in the prior year, showing improved financial performance[20] Biotechnology Segment - The biotechnology segment is focused on developing non-addictive pain-relieving drugs, while the recycling segment operates 18 Regional Processing Centers in North America[282] - The company expects future revenues and profits in the biotechnology segment to be driven by the development of non-opioid painkillers[300] - The biotechnology segment incurred expenses of $1,738 for the fiscal year ended January 2, 2021, up from $1,038 in the prior year, due to increased operational costs[3] Cash Flow and Liquidity - Cash used in operations decreased to $617 for the fiscal year ended January 2, 2021, compared to $3,510 in the previous year, primarily due to a reduction in net loss[16] - Total cash on hand as of January 2, 2021, was $379, indicating liquidity challenges as the company prepares for late-stage clinical development of its pharmaceutical product, JAN101[8] - Cash provided by financing activities was $1,404 for the fiscal year ended January 2, 2021, primarily from short-term debt related to the Payroll Protection Program[18] Strategic Plans - The company recorded a net gain on litigation settlement of $418,000 as of January 2, 2021, which included an $800 gain from a settlement with a former service provider[294] - The company has no impairment charges for the fiscal year ended January 2, 2021, compared to an impairment charge of $2,992,000 in the previous fiscal year[292] - The company plans to pursue strategic transactions to expand and grow its business, indicating potential future acquisitions or investments[23]