Summer Infant (SUMR) 10-K16 Mar 222021 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Jan. 01, 2022	Mar. 11, 2022	Jul. 02, 2021
Document and Entity Information
Entity Registrant Name	SUMMER INFANT, INC.
Document Type	10-K
Document Annual Report	true
Current Fiscal Year End Date	--01-01
Document Period End Date	Jan. 1, 2022
Document Transition Report	false
Entity File Number	001-33346
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1994619
Entity Address, Address Line One	1275 Park East Drive
Entity Address, City or Town	Woonsocket
Entity Address, State or Province	RI
Entity Address, Postal Zip Code	02895
City Area Code	401
Local Phone Number	671-6550
Title of 12(b) Security	Common Stock, Par Value $0.0001
Trading Symbol	SUMR
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 10.9
Entity Common Stock, Shares Outstanding		2,164,708
Entity Central Index Key	0001314772
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Firm ID	49
Auditor Name	RSM US LLP
Auditor Location	Boston, Massachusetts

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 535	$ 510
Trade receivables, net of allowance for doubtful accounts of $14 and $197 at January 1, 2022 and January 2, 2021, respectively	30,934	25,995
Inventory, net	28,621	25,123
Prepaids and other current assets	1,143	1,850
TOTAL CURRENT ASSETS	61,233	53,478
Property and equipment, net	4,128	4,789
Intangible assets, net	11,382	11,739
Right of use assets	14,383	3,625
Deferred tax assets, net		1,001
Other assets	104	105
TOTAL ASSETS	91,230	74,737
CURRENT LIABILITIES
Accounts payable	27,985	27,986
Accrued expenses	5,698	6,064
Lease liabilities, current	3,133	2,349
Current portion of long-term debt	2,125	2,125
TOTAL CURRENT LIABILITIES	38,941	38,524
Long-term debt, less current portion and unamortized debt issuance costs	37,420	27,536
Deferred tax liability	152
Lease liabilities, noncurrent	12,034	1,493
Other liabilities	108	2,064
TOTAL LIABILITIES	88,655	69,617
STOCKHOLDERS' EQUITY
Preferred Stock, $0.0001 par value, 1,000,000 authorized, none issued or outstanding at January 1, 2022 and January 2, 2021
Common Stock $0.0001 par value, authorized, issued and outstanding of 49,000,000, 2,194,892, and 2,164,708 at January 1, 2022 and 49,000,000, 2,162,459, and 2,132,275 at January 2, 2021, respectively	2	2
Treasury Stock at cost (30,184 shares at January 1, 2022 and January 2, 2021)	(1,283)	(1,283)
Additional paid-in capital	78,370	77,979
Accumulated deficit	(73,088)	(70,190)
Accumulated other comprehensive loss	(1,426)	(1,388)
TOTAL STOCKHOLDERS' EQUITY	2,575	5,120
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 91,230	$ 74,737

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Consolidated Balance Sheets
Trade receivables, allowance for doubtful accounts	$ 14	$ 197
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, authorized	1,000,000	1,000,000
Preferred Stock, issued	0	0
Preferred Stock, outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, authorized	49,000,000	49,000,000
Common Stock, issued	2,194,892	2,162,459
Common Stock, outstanding	2,164,708	2,132,275
Treasury Stock at cost, shares	30,184	30,184

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Consolidated Statements of Operations
Net sales	$ 143,665	$ 155,299
Cost of goods sold	104,286	104,448
Gross profit	39,379	50,851
General and administrative expenses	28,662	29,360
Selling expenses	10,785	12,574
Depreciation and amortization	2,239	3,348
Impairment of intangible asset		676
Operating (loss) income	(2,307)	4,893
Interest expense, net	1,386	4,078
(Gain) loss from extinguishment of debt	(1,972)	1,800
Loss before provision for income taxes	(1,721)	(985)
Provision for income taxes	1,177	117
Net loss	$ (2,898)	$ (1,102)
Net loss per share:
BASIC	$ (1.35)	$ (0.52)
DILUTED	$ (1.35)	$ (0.52)
Weighted average shares outstanding:
BASIC	2,152,926	2,119,499
DILUTED	2,152,926	2,119,499

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Consolidated Statements of Comprehensive Loss
Net loss	$ (2,898)	$ (1,102)
Other comprehensive loss:
Foreign currency translation adjustments	(38)	375
Comprehensive loss	$ (2,936)	$ (727)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Cash flows from operating activities:
Net loss	$ (2,898)	$ (1,102)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	2,239	3,348
Impairment of intangible asset		676
Stock-based compensation	327	253
(Gain) loss from extinguishment of debt	(1,972)	1,800
Amortization of deferred financing costs	294	651
Deferred income taxes	1,143	5
Amortization of right to use asset	2,999	2,431
Changes in assets and liabilities
(Increase) decrease in accounts receivable	(4,995)	6,763
(Increase) decrease in inventory	(3,571)	2,926
Decrease in lease liabilities	(2,431)	(2,678)
Decrease in prepaids and other assets	721	1,118
Increase in accounts payable and accrued expenses	(247)	1,416
Net cash (used in) provided by operating activities	(8,391)	17,607
Cash flows from investing activities:
Acquisitions of property and equipment	(1,160)	(1,258)
Acquisitions of intangible assets	(87)	(20)
Net cash used in investing activities	(1,247)	(1,278)
Cash flows from financing activities:
Repayment of Prior Term Loan Facility		(16,406)
Payment of financing fees and other costs		(1,522)
Proceeds from New Term Loan Facility		7,500
Proceeds from FILO Loan Facility		2,500
Repayment of New Term Loan Facility	(1,500)	(375)
Repayment of FILO Loan Facility	(625)	(156)
Net borrowings (repayment) on revolving facilities	11,714	(10,152)
Issuance of common stock upon exercise of stock options	64	11
Proceeds from PPP loan		1,956
Net cash provided by (used in) financing activities	9,653	(16,644)
Effect of exchange rate changes on cash and cash equivalents	10	430
Net increase in cash and cash equivalents	25	115
Cash and cash equivalents, beginning of year	510	395
Cash and cash equivalents, end of year	535	510
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	1,131	2,777
Cash paid (refunded) during the year for income taxes	8	(199)
Supplemental disclosure of non-cash investing and financing activities:
Derecognition of a building sale-leaseback fixed asset, net of depreciation		2,357
Derecognition of a building sale-leaseback financial obligation		(2,390)
Right-of-use asset acquired through new operating lease	13,802	(1,457)
Lease liability acquired through new operating lease	$ (13,802)	$ 1,457

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital	Treasury Stock	Accumulated Deficit	Accumulated Comprehensive Loss	Total
Balance, beginning of year at Dec. 28, 2019	$ 2	$ 77,715	$ (1,283)	$ (69,088)	$ (1,763)	$ 5,583
Balance, beginning of year (in shares) at Dec. 28, 2019	2,108,743
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	20,438
Issuance of common stock upon exercise of stock options		11				11
Issuance of common stock upon exercise of stock options (in shares)	1,474
Stock-based compensation		253				253
Fractional share issuance upon reverse stock split	1,620
Net loss for the year				(1,102)		(1,102)
Foreign currency translation adjustment					375	375
Balance, end of year at Jan. 02, 2021	$ 2	77,979	(1,283)	(70,190)	(1,388)	5,120
Balance, end of year (in shares) at Jan. 02, 2021	2,132,275
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted shares (in shares)	24,468
Issuance of common stock upon exercise of stock options		64				64
Issuance of common stock upon exercise of stock options (in shares)	7,965
Stock-based compensation		327				327
Net loss for the year				(2,898)		(2,898)
Foreign currency translation adjustment					(38)	(38)
Balance, end of year at Jan. 01, 2022	$ 2	$ 78,370	$ (1,283)	$ (73,088)	$ (1,426)	$ 2,575
Balance, end of year (in shares) at Jan. 01, 2022	2,164,708

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jan. 01, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Company designs, markets and distributes branded juvenile safety and convenience products that are sold globally to national retailers as well as independent retailers, primarily in North America. The Company currently markets its products in several product categories including gates, potty, bath, entertainers, specialty blankets, strollers, car seats and travel systems. Most products are sold under our core brand names of Summer™ and SwaddleMe ® 2022 Plan and COVID-19 Pandemic The accompanying consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern and contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the year ended January 1, 2022, the Company incurred a net loss $2,898 and used cash in operating activities of $8,391, primarily a result of the growth of accounts receivable and inventory. As of January 1, 2022, the Company had $535 of cash, $40,572 of outstanding indebtedness and borrowing availability of $2,949 under its asset-based lending agreement. Since January 1, 2022, the Company entered into a term loan agreement with Wynnefield Capital to provide additional availability to the Company. While the Company’s asset-based loan agreement with Bank of America and term loan agreement with Wynnefield Capital do not expire until October 15, 2025, both agreements have adjusted EBITDA and liquidity covenants. While these covenants provide room for the Company to conduct its business in the ordinary course, the Company currently faces a challenging supply chain environment that may impact its ability to execute on its operating plan and consequently, the Company amended its financial covenants with Bank of America and Wynnefield Capital on March 16, 2022. Due to continuing losses, the Company’s financial position and the challenging supply chain environment, there is no assurance that Company will be able to maintain compliance with the financial covenants under its loan agreements, which would impair its ability to meet its financial obligations as they become due without future amendments to its loan agreements. In addition, the COVID-19 pandemic has significantly increased economic and demand uncertainty across the globe, and while demand for the Company’s products has remained steady, if these challenges continue, the Company may not be able to meet demands of its customers which could result in lost or cancelled orders from our customers and could materially and adversely affect our business, financial condition, and results of operations. Based on its known cash needs as of March 16, 2022, and the anticipated availability under its loan agreements, the Company has developed plans to extend its liquidity to support its working capital requirements and our ability to meet our financial obligations. The Company’s plans with regard to these matters include the following: (1) continuing to explore price increases where possible, (2) enhancing certain supply chain processes to obtain lower cost containers for its products and reduce demurrage and detention charges through additional new procedures, (3) reducing warehouse costs through new processes as it relates to pallets, (4) reducing product costs through re-engineering of certain products, (5) reducing discretionary marketing to the extent that it does not impact revenue performance, and (6) considering additional financing and/or strategic alternatives. However, there can be no assurance the Company’s plans will be achieved and that the Company will be able to meet its financial obligations as they become due without obtaining additional financing or sources of capital. Therefore, in accordance with applicable accounting guidance, and based on the Company’s current financial condition and availability of funds, there is substantial doubt about the Company’s ability to continue as a going concern through twelve months from the date these financial statements were issued. Reverse Stock Split On March 13, 2020, the Company completed a reverse stock split and reduced its common stock outstanding by a ratio of one for nine Basis of Presentation and Principles of Consolidation It is the Company’s policy to prepare its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. All dollar amounts included in the Notes to Consolidated Financial Statements are in thousands of U.S. dollars except share and per share amounts. Fiscal Year The Company’s fiscal year ends on the Saturday closest to December 31 of each calendar year. There were fifty-two fifty-three Summary of Significant Accounting Policies Revenue Recognition The Company applies FASB ASC Topic 606, Revenue from Contracts with Customers The Company’s principal activities from which it generates its revenue is product sales. The Company has one reportable segment of business. Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring control over a product to a customer when product delivery occurs. Consideration is typically paid approximately 60 days from the time control is transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in selling costs. A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for the Company is transfer of primarily juvenile products to its customers. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. A transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimation into the determination of the transaction price. The Company conducts its business with customers through valid purchase or sales orders each of which is considered a separate contract because individual orders are not interdependent on one another. Product transaction prices on a purchase or sale order are discrete and stand-alone. Purchase or sales orders may be issued under either a customer master service agreement or a reseller allowance agreement. Purchase or sales orders, master service agreements, and reseller allowance agreements which are specific and unique to each customer, may include product price discounts, markdown allowances, return allowances, and/or volume rebates which reduce the consideration due from customers. Variable consideration is estimated using the most likely amount method, which is based on our historical experience as well as current information such as sales forecasts. Contracts may also include cooperative advertising arrangements where the Company allows a discount from invoiced product amounts in exchange for customer purchased advertising that features the Company’s products. These allowances are generally based upon product purchases or specific advertising campaigns. Such allowances are accrued when the related revenue is recognized. These cooperative advertising arrangements provide a distinct benefit and fair value and are accounted for as direct selling expenses. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents Cash flows, cash and cash equivalents include money market accounts and investments with an original maturity of three months or less. At times, the Company possesses cash balances in excess of federally-insured limits. Trade Receivables Trade receivables are carried at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts based on historical bad debts, factors related to specific customers’ ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Amounts are considered to be uncollectable based upon historical experience and management’s evaluation of outstanding accounts receivable. Changes in the allowance for doubtful accounts are as follows: For the fiscal year ended January 1, January 2, 2022 2021 Allowance for doubtful accounts, beginning of period $ 197 $ 542 Charges to (recovery of) costs and expenses 8 (27) Account write-offs and other (191) (318) Allowance for doubtful accounts, end of period $ 14 $ 197 Inventory Valuation Inventory is comprised mostly of finished goods and some component parts and is stated at the lower of cost using the first-in, first-out (FIFO) method, or net realizable value. The Company regularly reviews slow-moving and excess inventories and writes down inventories to net realizable value if the ultimate expected net proceeds from the disposals of excess inventory are less than the carrying cost of the merchandise. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company’s uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on fair values to the lease components and non-lease components. Although separation of lease and non-lease components is required, certain practical expedients are available to entities. Entities electing the practical expedient would not separate lease and non-lease components. Rather, they would account for each lease component and the related non-lease component together as a single component. The Company’s facilities operating leases have lease and non-lease components to which the Company has elected to apply the practical expedient and account for each lease component and related non-lease component as one single component. The lease component results in a ROU asset being recorded on the balance sheet. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Property and Equipment Property and equipment are recorded at cost. The Company owns the tools and molds used in the production of its products by third party manufacturers. Capitalized mold costs include costs incurred for the pre-production design and development of the molds. Depreciation is provided over the estimated useful lives of the respective assets using the straight-line method. Long-Lived Assets with Finite Lives The Company reviews long-lived assets with finite lives for impairment on an asset group level whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered to be impaired when its carrying amount exceeds both the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition and the assets’ fair value. Long-lived assets include property and equipment and finite-lived intangible assets. The amount of impairment loss, if any, is charged by the Company to current operations. Indefinite-Lived Intangible Assets The Company accounts for intangible assets in accordance with accounting guidance that requires that intangible assets with indefinite useful lives be tested annually for impairment and more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s annual impairment testing is conducted in the fourth quarter of every year. The Company tests indefinite-lived intangible assets for impairment by comparing the asset’s fair value to its carrying amount. If the fair value is less than the carrying amount, the excess of the carrying amount over fair value is recognized as an impairment charge and the adjusted carrying amount becomes the assets’ new cost basis. Management also evaluates the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, it is amortized prospectively over its estimated remaining useful life. Fair Value Measurements The Company follows ASC 820, “Fair Value Measurements and Disclosures” which includes a framework for measuring fair value and expanded related disclosures. Broadly, the framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The standard established a three-level valuation hierarchy based upon observable and non-observable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1—Quoted prices for identical instruments in active markets. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Significant inputs to the valuation model are unobservable. The Company maintains policies and procedures to value instruments using the best and most relevant data available. In addition, the Company utilizes third party specialists that review valuation, including independent price validation. The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and short and long-term borrowings. Because of their short maturity, the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value. The carrying value of the Company’s debt approximates fair value since the stated rate is similar to rates currently available to the Company for debt with similar terms and remaining maturities. The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets and finite-lived intangibles. The Company tests its indefinite-lived assets for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the carrying value may exceed its fair value. The resulting fair value measurements are considered to be Level 3 inputs. The Company did not record an impairment charge in fiscal 2021. During the fourth quarter of fiscal 2020, the Company determined that the estimated fair value of a definite-lived asset was non-recoverable, and the Company recorded a non-cash impairment charge of $676 which reduced the value of the intangible asset to $0, as more fully described in “Note 4 to the Consolidated Financial Statements-Intangible Assets.” Income taxes Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not that such benefits will be realized. Deferred income tax assets are recorded on a net basis as a long term asset. The Company follows the applicable guidance relative to uncertain tax positions. This standard provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-not in order for those tax positions to be recognized in the financial statements. Translation of Foreign Currencies Assets and liabilities of the Company’s foreign subsidiaries whose functional currency is its local currency, are translated into U.S. dollars at the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been translated at average rates prevailing during each respective quarter. Resulting translation adjustments are made to a separate component of stockholders’ equity within accumulated other comprehensive loss. Assets and liabilities of the Company’s foreign subsidiaries whose functional currency is the U.S. dollar are remeasured into U.S. dollars at their historical rates or the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been remeasured at average rates prevailing during each respective quarter. Resulting remeasurement adjustments are made to the consolidated statement of operations. Foreign exchange transaction gains and losses are included in the accompanying consolidated statement of operations. Shipping Costs Shipping costs to customers are included in selling expenses and amounted to approximately $2,206 and $2,485 for the fiscal years ended January 1, 2022 and January 2, 2021, respectively. Advertising Costs The Company charges advertising costs to selling expense as incurred. Advertising expense, which consists primarily of promotional and cooperative advertising allowances provided to customers, was approximately $7,881 and $9,215 for the fiscal years ended January 1, 2022 and January 2, 2021, respectively. Segment Information Operating segments are identified as components of an enterprise about which separate, discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business as one operating segment utilizing an omni-channel distribution strategy. Net Loss Per Share Basic loss per share for the Company is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted income or loss per share includes the dilutive impact of outstanding stock options and unvested restricted shares. Diluted loss per share for the Company is computed by dividing net loss by the dilutive weighted average shares outstanding which includes: the dilutive impact (using the “treasury stock” method) of “in the money” stock options and unvested restricted shares issued to employees. Options to purchase 70,635 and 60,639 shares of the Company’s common stock and 6,072 and 14,967 of restricted shares were not included in the calculation, due to the fact that these instruments were anti-dilutive for the fiscal years ended January 1, 2022 and January 2, 2021, respectively. New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and a subsequent amendment to the initial guidance, ASU 2018-19 Codification Improvements to Topic 325, Financial Instruments-Credit Losses (collectively, Topic 326). Topic 326 requires measurement and recognition of expected credit losses for financial assets held, which include, but are not limited to, trade and other receivables. The new standard is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

REVENUE

REVENUE	12 Months Ended
REVENUE	Jan. 01, 2022
REVENUE
REVENUE	2. REVENUE Disaggregation of Revenue The Company’s revenue is primarily from distinct fixed-price product sales in the juvenile product market, to similar customers and channels utilizing similar types of contracts that are short term in nature (less than one year). The Company does not sell service agreements or goods over a period of time and does not sell or utilize customer financing arrangements or time-and-material contracts. The following is a table that presents net sales by geographical area: For the fiscal year ended January 1, January 2, 2022 2021 United States $ 132,153 $ 140,173 All Other 11,512 15,126 $ 143,665 $ 155,299 All Other consists of Canada, Europe, South America, Mexico, Asia, and the Middle East. Contract Balances The Company does not have any contract assets such as work-in-process or contract liabilities such as customer advances. All trade receivables on the Company’s consolidated balance sheet are from contracts with customers. Contract Costs Costs incurred to obtain a contract are capitalized unless short term in nature. As a practical expedient, costs to obtain a contract that are short term in nature are expensed as incurred. All contract costs incurred in 2021 and 2020 fall under the provisions of the practical expedient and have therefore been expensed.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
PROPERTY AND EQUIPMENT	Jan. 01, 2022
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	3. PROPERTY AND EQUIPMENT Property and equipment, at cost, consisted of the following: For the fiscal year ended January 1, January 2, Depreciation/ 2022 2021 Amortization Period Computer-related $ 4,577 $ 4,560 5 years Tools, dies, prototypes, and molds 28,826 27,849 1 - 5 years Other 7,777 7,671 1 - 15 years 41,180 40,080 Less: accumulated depreciation 37,052 35,291 Property and equipment, net $ 4,128 $ 4,789 Total depreciation expense was $1,795 and $2,847 for the fiscal years ended January 1, 2022 and January 2, 2021, respectively. In May 2020, the Company entered into a lease agreement amendment related to our headquarters in Woonsocket, Rhode Island. The agreement decreased the leased premises square footage and extended the current term, which was set to end in March 2021 prior to the amendment to June 2025. It additionally granted two 5-year term extension options. The Company was accounting for the lease in Woonsocket as a sale-leaseback with the building on the balance sheet as property and equipment, net and a corresponding financing obligation in long-term liabilities. Upon the execution of the lease amendment, the Company re-assessed the classification of the lease and determined it to be an operating lease, as the criteria for a sale-leaseback had not been met. This resulted in the de-recognition of the building, from property and equipment, of $2,357, net of accumulated depreciation and the addition of a right-of-use asset and corresponding liability of $1,457.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
INTANGIBLE ASSETS	Jan. 01, 2022
INTANGIBLE ASSETS
INTANGIBLE ASSETS	4. INTANGIBLE ASSETS Intangible assets consisted of the following: For the fiscal year ended January 1, January 2, 2022 2021 Brand names $ 10,900 $ 10,900 Patents and licenses 4,208 4,125 Customer relationships 6,946 6,946 Other intangibles 1,886 1,882 23,940 23,853 Less: accumulated amortization (12,558) (12,114) Intangible assets, net $ 11,382 $ 11,739 The amortization period for the majority of the intangible assets ranges from 5 to 18 years for those assets that have an estimated life; certain assets have indefinite lives (a brand name). Total of intangibles not subject to amortization amounted to $8,400 for the fiscal years ended January 1, 2022 and January 2, 2021. Amortization expense amounted to $444 and $501 for the fiscal years ended January 1, 2022 and January 2, 2021, respectively. In the fourth quarter of 2020, the Company recorded an asset impairment charge of $676 representing the remaining unamortized balance of the definite long-lived asset related to the Company’s Born Free Holdings Limited (BFH) trademarks. This intangible asset was determined to have a carrying value that was non-recoverable. The determination resulted from the Company’s decision to dissolve the BFH entity which was completed in December 2020. The Company performed its annual indefinite-lived intangible asset impairment analysis in the fourth fiscal quarter. No asset impairment was recorded for the fiscal years ended January 1, 2022 and January 2, 2021. Estimated amortization expense for the remaining definite-lived assets for the next five years is as follows: Fiscal Year ending 2022 440 2023 440 2024 440 2025 437 2026 207

DEBT

DEBT	12 Months Ended
DEBT	Jan. 01, 2022
DEBT
DEBT	5. DEBT Loan Agreement with Bank of America. On October 15, 2020, the Company and its wholly owned subsidiary, Summer Infant (USA), Inc., became parties to a Third Amended and Restated Loan and Security Agreement (the “Loan Agreement”) with Bank of America, N.A., as agent, that provides for (i) a $40,000 asset-based revolving credit facility, with a $5,000 unused letter of credit sub-line facility as of January 1, 2022, (ii) a $7,500 term loan and (iii) a $2,500 FILO (first-in, last-out) loan. The Loan Agreement replaced the Company’s prior agreement with BofA and term loan with Pathlight Capital. Pursuant to the Loan Agreement, total borrowing capacity under the revolving credit facility is based on a borrowing base, which is generally defined as 85% of eligible receivables plus the lesser of (i) 70% of the value of eligible inventory (subject to certain limitations) or (ii) 85% of the net orderly liquidation value of eligible inventory, less applicable reserves. The scheduled maturity date of the loans under the revolving credit facility is October 15, 2025 (subject to customary early termination provisions). Loans under the revolving credit facility bear interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins based on average quarterly availability. Interest payments are due monthly, payable in arrears. The Company is also required to pay an annual non-use fee on unused amounts under the revolving credit facility, as well as other customary fees as are set forth in the Loan Agreement. As of January 1, 2022, the interest rate on LIBOR based revolver loans and on base rate revolver loans was 2.625% and 4.500%, respectively. The amount outstanding on the revolving credit facility Agreement on January 1, 2022 was $33,228. As of January 2, 2021, the interest rate was 2.625% on LIBOR based revolver loans. The amount outstanding on the Restated BofA Agreement at January 2, 2021 was $21,467. Total borrowing base at January 1, 2022 was $36,177 and borrowing availability was $2,949. The principal of the term loan is to be repaid, on a quarterly basis, in installments of $375, until paid in full on termination and subject to mandatory repayment in certain circumstances. The scheduled maturity date of the term loan is October 15, 2025 or earlier, if the revolving credit facility is terminated. The term loan bears interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins, and interest payments are due monthly, in arrears. As of January 1, 2022, the interest rate on LIBOR based term loans and on base rate term loans was 3.875% and 5.750%, respectively. The amount outstanding on the term loan under the Restated BofA Agreement was $5,625 as of January 1, 2022. The amount outstanding on the term loan under the Restated BofA Agreement was $7,125 as of January 2, 2021. The total borrowing capacity under the FILO loan is the lesser of (i) the then applicable aggregate FILO commitment amount and (ii) a borrowing base, generally defined as a specific percentage of the value of eligible accounts, plus a specified percentage of the value of eligible inventory. The aggregate FILO commitment amount as of January 1, 2022 was $1,719 with no further availability, and such amount will be proportionately reduced each quarter until the FILO loan is terminated at maturity on October 15, 2024. There can be no voluntary repayment on the FILO loan as long as there are loans outstanding under the revolving credit facility, unless (i) there is an overadvance under the FILO loan, or (ii) such prepayment is accompanied by a permanent dollar for dollar reduction in the aggregate FILO commitment amount such that, after giving effect to such prepayment and reduction, the outstanding principal amount of the FILO loan is equal to but does not exceed the lesser of (A) the aggregate FILO commitment amount and (B) the FILO borrowing base. The FILO loan bears interest, at the Company’s option, at a base rate or at LIBOR, plus applicable margins, and interest payments are due monthly, in arrears. As of January 1, 2022, the interest rate on the LIBOR based FILO loans and on base rate FILO loans was 3.625% and 5.500%, respectively. The aggregate FILO commitment amount of as of January 2, 2021 was $2,344. All obligations under the Loan Agreement are secured by substantially all the assets of the Company, and the Company’s subsidiaries, Summer Infant Canada Limited and Summer Infant Europe Limited, are guarantors under the Loan Agreement. The Loan Agreement contains customary affirmative and negative covenants. Among other restrictions, the Company is restricted in its ability to incur additional debt, make acquisitions or investments, dispose of assets, or make distributions unless in each case certain conditions are satisfied. Until the term loan and FILO loan have been repaid in full, the Company must maintain a fixed charge coverage ratio at the end of each fiscal month of at least 1.00 to 1.00 for the twelve-month period then ended. After the term loan and FILO loan have been repaid in full, the Company will be required to maintain the fixed charge coverage ratio if availability falls below $5,000. The Loan Agreement also contains customary events of default, including if the Company fails to comply with any required financial covenants, if there is an event of default under the PPP Loan (described below) and the occurrence of a change of control. In the event of a default, all of the obligations under the Loan Agreement may be declared immediately due and payable. For certain events of default relating to insolvency and receivership, all outstanding obligations become due and payable. Subsequent to fiscal year end, on January 28, 2022 and March 16, 2022, the Company (i) entered into a loan and security agreement with Wynnefield Capital, Inc., as agent, providing for a second lien, subordinated term loan in an amount up to $5,000 and (ii) amended the Loan Agreement to provide additional flexibility to the Company under its covenant requirements and to permit the second-lien term, subordinated term loan. See Note 13 for additional information regarding the new second lien, subordinated term loan and Loan Agreement amendment. Prior Bank of America Credit Facility. Prior Term Loan Agreement. term loan (the “Term Loan”). The principal of the Term Loan was being repaid, on a quarterly basis, in installments of $219, with the first installment having been paid on December 1, 2018, until paid in full on termination, provided that, in connection with the amendments to the Term Loan Agreement, principal payments for March, June and September 2020 were suspended. The Term Loan was repaid in full on October 15, 2020. The refinancing transaction was evaluated to determine the proper accounting treatment for the transaction. Accordingly, debt extinguishment accounting was used to account for the prepayment of the prior term loan facility with Pathlight Capital, LLC, resulting in a loss from the extinguishment of debt of $1,800 for the twelve months ended January 2, 2021. PPP Loan On August 3, 2020, the Company received loan proceeds of $1,956 (the “PPP Loan”) pursuant to the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”) under the U.S. CARES Act. The PPP Loan, which was in the form of a promissory note (the “PPP Note”), between the Company and BofA, as the lender, had a maturity date of July 27, 2025 and would bear interest at a fixed rate of 1% per annum. Monthly principal and interest payments were deferred until (i) the date on which the amount of forgiveness was remitted to the Company’s lender, (ii) the date on which the Company’s lender provided notice that the Company was not entitled to loan forgiveness, and (iii) if a borrower did not apply for loan forgiveness, 10 months after the date of the loan forgiveness covered period. The Company was permitted to voluntarily prepay the borrowings in full with no associated penalty or premium. Under the terms of the PPP, the principal and interest could be forgiven if the PPP Loan proceeds were used for qualifying expenses, including payroll costs, rent and utility costs. The PPP Note contained customary representations, warranties, and covenants for this type of transaction, including customary events of default relating to, among other things, payment defaults and breaches of representations and warranties or other provisions of the PPP Note. The occurrence of an event of default could have resulted in, among other things, the Company becoming obligated to repay all amounts outstanding under the PPP Note. On February 18, 2021, the Company applied for full forgiveness of the PPP loan through Bank of America. In May 2021, the SBA determined that the PPP Loan was fully approved for forgiveness and on May 23, 2021, the PPP Loan was repaid in full by the SBA to BofA. The forgiveness amount remitted was $1,956 in principal and $16 in interest and is included as a gain from the extinguishment of debt in the statement of operations. Aggregate maturities of bank debt related to the Loan Agreement are as follows: Fiscal Year ending: 2022 1,594 2023 2,125 2024 2,125 2025 34,728 2026 and beyond — Total $ 40,572 Unamortized debt issuance costs were $1,027 at January 1, 2022 and $1,275 at January 2, 2021, and are presented as a direct deduction of long-term debt on the consolidated balance sheets. Sale-Leaseback On March 24, 2009, Summer Infant (USA), Inc., (“Summer USA”) the Company’s wholly owned subsidiary, entered into a definitive agreement with Faith Realty II, LLC, a Rhode Island limited liability company (“Faith Realty”) (the owner of which is Jason Macari, the former Chief Executive Officer, former director of the Company, and current investor), pursuant to which Faith Realty purchased the corporate headquarters of the Company located at 1275 Park East Drive, Woonsocket, Rhode Island (the “Headquarters”), for $4,052 and subsequently leased the Headquarters back to Summer USA for an annual rent of $390 during the initial seven year term of the lease, payable monthly and in advance. The original lease was to expire on the seventh anniversary of its commencement. Mr. Macari had given a personal guarantee to secure the Faith Realty debt on its mortgage; therefore, due to his continuing involvement in the building transaction, the transaction had been recorded as a financing lease, with no gain recognition. On February 25, 2009, the Company’s Board of Directors (with Mr. Macari abstaining from such action) approved the sale leaseback transaction. In connection therewith, the Board of Directors granted a potential waiver, to the extent necessary, if at all, of the conflict of interest provisions of the Company’s Code of Ethics, effective upon execution of definitive agreements within the parameters approved by the Board. In connection with granting such potential waiver, the Board of Directors engaged independent counsel to review the sale leaseback transaction and an independent appraiser to ascertain (i) the value of the Headquarters and (ii) the market rent for the Headquarters. In reaching its conclusion that the sale leaseback transaction is fair to the Company, the Board of Directors considered a number of factors, including Summer USA’s ability to repurchase the headquarters at 110% of the initial sale price at the end of the initial term. The Company’s Audit Committee approved the sale leaseback transaction (as a related party transaction) and the potential waiver and recommended the matter to a vote of the entire Board of Directors (which approved the transaction). On May 13, 2015, Summer USA entered into an amendment (the “Amendment”) to its lease dated March 24, 2009 (the “Lease”) with Faith Realty (the “Landlord”). Pursuant to the Amendment, (i) the initial term of the Lease was extended for two On January 22, 2018, Summer USA entered into a second amendment (the “Second Amendment”) to the Lease. Pursuant to the Second Amendment, (i) the term of the Lease was extended to March 31, 2021, with no further rights of extension, (ii) the annual rent for the last three years of the newly amended term was set at $468, (iii) Summer USA no longer has the option to purchase the property subject to the Lease and (iv) the Landlord and Summer USA agreed to certain expenses, repairs and modifications to the property that is subject to the Lease. The Second Amendment was reviewed and approved by the audit committee because it was a related party transaction. On May 1, 2020, Summer USA entered into a third amendment (the “Third Amendment”) to the Lease. The agreement decreased the leased premises square footage and extended the current term, which was set to end in March 2021 prior to the amendment, to June 2025. It additionally granted two 5-year term extension options. Upon the execution of the lease amendment, the Company re-assessed the classification of the lease and determined it to be an operating lease, as the criteria for a sale-leaseback had not been met. This resulted in the de-recognition of the building of $2,357, net of depreciation and the addition of a right-of-use of $1,457 along with a short-term lease liability and a long-term lease liability for $264 and $1,193, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Jan. 01, 2022
INCOME TAXES
INCOME TAXES	6. INCOME TAXES In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that significantly revised the U.S. tax code effective January 1, 2018 by, among other things, lowering the corporate income tax rate from a top marginal rate of 35% to a flat 21%, limiting deductibility of interest expense and performance based incentive compensation and implementing a territorial tax system. As a result of the Tax Act in the fiscal years ending January 1, 2022 and January 2, 2021 the Company had non-deductible interest for tax purposes resulting in a deferred tax asset in the amount of $1,919 and $1,643, respectively. The Company recorded a valuation allowance on the value of this deferred tax asset until such time as it becomes more likely than not that this asset will be recognized. The provision for income taxes is summarized as follows: Fiscal 2021 Fiscal 2020 Current: Federal $ — $ 108 Foreign — 2 State and local 22 2 Total current 22 112 Deferred: Federal 718 $ (5) Foreign 237 6 State and local 200 4 Total deferred 1,155 5 Total provision $ 1,177 $ 117 The tax effects of temporary differences that comprise the deferred tax liabilities and assets are as follows: January 1, January 2, 2022 2021 Deferred tax assets: Accounts receivable $ 4 $ 51 Inventory and Uniform Capitalization reserve 467 475 Interest deduction limitation 1,919 1,643 Lease Liability and accrued expenses 3,912 806 Research and development credit 2,030 2,292 Foreign tax credit 795 795 Net operating loss carry-forward 2,735 2,565 Total deferred tax assets 11,862 8,627 Deferred tax liabilities: Intangible assets and other (2,271) (2,132) ROU Assets and deferred rent (3,745) (833) Property, plant and equipment (83) 28 Total deferred tax liabilities (6,099) (2,937) Valuation allowance (5,915) (4,689) Deferred tax liabilities and valuation allowance (12,014) (7,626) Net deferred income tax asset $ (152) $ 1,001 The following reconciles the benefit for income taxes at the U.S. federal income tax statutory rate to the benefit in the consolidated financial statements: Fiscal 2021 Fiscal 2020 Tax benefit at statutory rate $ (361) $ (207) State income taxes, net of U.S. federal income tax benefit 176 5 Adjustment to uncertain tax position — 7,543 Stock options 16 5 Foreign tax rate differential (49) 2 Tax credits 262 258 Worthless stock deduction — (7,435) Non-deductible expenses/Non-taxable income including PPP (428) 149 Expiration of unexercised stock options 24 90 Increase/(Decrease) in valuation allowance 1,512 (255) Other 25 (38) Total provision $ 1,177 $ 117 The income tax provision for the year ended January 1, 2022 was primarily the result of an increase in valuation allowance on US and foreign net operating losses, offset by federal non-taxability of PPP loan forgiveness. The income tax provision for the year ended January 2, 2021 was primarily the result of a deduction related to a worthless stock loss in the Company’s investment in its wholly owned subsidiary, Born Free Holdings Limited (“BFH”), net of reserve for uncertain tax positions. The Company, after analyzing the facts and circumstances, determined to no longer invest in BFH and liquidated the entity. The Company has maintained a permanent investment position and, therefore, has not previously recorded a deferred tax asset for the basis difference in this entity. The original acquisition and financial results of this entity had created an excess of tax basis over the book basis in which the worthless stock was deducted for income tax purposes of approximately $26,933, resulting in an estimated net tax benefit of $7,435. The Company analyzed this transaction and determined that this worthless stock deduction qualifies as an ordinary loss. While the Company believes this is a valid income tax deduction, due to the uncertain nature of worthless stock deductions, the Company has determined this tax benefit to be an uncertain tax position. Accordingly, the Company fully reserved for the tax benefit associated with the worthless stock deduction. As of January 1, 2022, the Company had approximately $6,563 of US federal and state net operating loss carry forwards (or “NOLs”) to offset future federal taxable income. The federal NOL will begin to expire in 2031 and the state NOL began to expire in 2021. As of January 1, 2022, the Company had approximately $1,832, $543, and $2,028 of NOLs in Canada, Asia, and the United Kingdom, respectively, which can be carried forward indefinitely. Authoritative guidance requires a valuation allowance to reduce the deferred tax assets reported, if based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. After consideration of all evidence, including the Company’s past earnings history and future earnings forecast, management determined that a valuation allowance in the amount of $3,201 at January 1, 2022 and $2,251 at January 2, 2021 relating to certain federal and state tax credits and foreign NOLs was necessary. Due to the Tax Act, the Company determined a valuation allowance in the amount of $2,714 at January 1, 2022 and $2,438 at January 2, 2021 relating to interest deduction limitations and foreign tax credits was necessary. We apply the accounting guidance in ASC 740 related to accounting for uncertainty in income taxes. Our reserves related to taxes are based on a determination of whether, and how much of, a tax benefit taken by us in our tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. A summary of the Company’s adjustment to its uncertain tax positions in fiscal years ended January 1, 2022 and January 2, 2021 is set forth below: January 1, January 2, 2022 2021 Balance, at beginning of the year $ 7,543 $ — Increase for tax positions related to the current year — 7,543 Balance, at end of year $ 7,543 $ 7,543 The unrecognized tax benefits mentioned above included an aggregate of $0 of accrued interest and penalty balances related to uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company does not anticipate that its accrual for uncertain tax positions will be reduced by a material amount over the next twelve-month period, as it does not expect to settle any potential disputed items with the appropriate taxing authorities, nor does it expect the statute of limitations to expire for any items. The Company is subject to U.S. federal income tax, as well as to income tax of multiple state and foreign tax jurisdictions. On a global basis, the open tax years subject to examination by major taxing jurisdictions in which the Company operates is between two

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION	12 Months Ended
SHARE BASED COMPENSATION	Jan. 01, 2022
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION	7. SHARE BASED COMPENSATION The Company is currently authorized to issue up to 374,889 shares for equity awards under the Company’s Amended and Restated 2012 Incentive Compensation Plan (“2012 Plan”). In May 2021, the Company’s stockholders approved an increase in the number of shares available for issuance under the 2012 Plan from 188,889 to 374,889. Periodically, the Company may also grant equity awards outside of its 2012 Plan as inducement grants for new hires. Under the 2012 Plan, awards may be granted to participants in the form of non-qualified stock options, incentive stock options, restricted stock, deferred stock, restricted stock units and other stock-based awards. Subject to the provisions of the plans, awards may be granted to employees, officers, directors, advisors and consultants who are deemed to have rendered or are able to render significant services to the Company or its subsidiaries and who are deemed to have contributed or to have the potential to contribute to the Company’s success. The Company accounts for options under the fair value recognition standard. The application of this standard resulted in share-based compensation expense for the twelve months ended January 1, 2022 and January 2, 2021 of $327 and $253, respectively. Share based compensation expense is included in selling, general and administrative expenses. As of January 1, 2022, there are 202,576 shares available to grant under the 2012 Plan. Stock Options The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the table below. The Company uses the simplified method to estimate the expected term of the options for grants of “plain vanilla” stock options as prescribed by the Securities and Exchange Commission. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Share-based compensation expense recognized in the consolidated financial statements in fiscal 2021 and 2020 is based on awards that are ultimately expected to vest. The following table summarizes the weighted average assumptions used for options granted during the fiscal years ended January 1, 2022 and January 2, 2021. Fiscal Fiscal 2021 2020 Expected life (in years) 4.6 4.7 Risk-free interest rate 0.7 % 0.3 % Volatility 105.3 % 98.9 % Dividend yield 0.0 % 0.0 % Forfeiture rate 50.6 % 51.9 % The weighted-average grant date fair value of options granted during the year ended January 1, 2022 was $9.95 per share. The weighted-average grant date fair value of options granted during the year ended January 2, 2021 was $2.61 per share. A summary of the status of the Company’s options as of January 1, 2022 and changes during the year then ended is presented below: Weighted- Number Average Of Exercise Shares Price Outstanding at beginning of year 60,639 $ 10.63 Granted 52,000 $ 13.41 Exercised or released (7,965) $ 8.03 Canceled or forfeited (33,705) $ 13.77 Expired (334) $ 66.96 Outstanding at end of year 70,635 $ 11.20 Options exercisable at January 1, 2022 13,425 $ 11.14 Outstanding stock options vested and expected to vest as of January 1, 2022 is 49,179. The intrinsic value of options exercised was $69 and $13 for the fiscal years ended January 1, 2022 and January 2, 2021, respectively. The following table summarizes information about stock options at January 1, 2022: Options Outstanding Options Exercisable Weighted Weighted Remaining Average Remaining Average Range of Number Contractual Exercise Number Contractual Exercise Exercise Prices Outstanding Life (years) Price Exercisable Life Price $3.51 - $6.00 13,056 7.4 $ 3.64 3,291 7.4 $ 3.64 $6.01 - $12.00 19,840 8.3 $ 9.26 5,895 6.7 $ 7.71 $12.01 - $20.00 36,396 8.9 $ 14.21 2,896 4.3 $ 17.11 $20.01 - $30.00 336 3.2 $ 23.76 336 3.2 $ 23.76 $30.01 - $48.51 1,007 1.1 $ 34.43 1,007 1.1 $ 34.43 70,635 8.3 $ 11.20 13,425 5.9 $ 11.14 The aggregate intrinsic value of options outstanding and exercisable 2022 Restricted Stock Awards Restricted stock awards require no payment from the grantee. The related compensation cost of each award is calculated using the market price on the grant date and is expensed equally over the vesting period. A summary of restricted stock awards made in the year ended January 1, 2022, is as follows: Number of Grant Date Shares Fair Value Non-vested restricted stock awards as of January 2, 2021 14,967 $ 8.68 Granted 20,960 $ 11.45 Vested and released (24,539) $ 11.13 Forfeited (5,316) $ 9.73 Non-vested restricted stock awards as of January 1, 2022 6,072 $ 7.44 As of January 1, 2022, there was approximately $21 of unrecognized compensation cost related to non-vested stock compensation arrangements granted under the Company’s stock incentive plan for restricted stock awards. That cost is expected to be recognized over the next 2.0 years. On March 13, 2020, the Company completed a 1-for-9

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	12 Months Ended
WEIGHTED AVERAGE COMMON SHARES	Jan. 01, 2022
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES	8. WEIGHTED AVERAGE COMMON SHARES Basic and diluted earnings or loss per share (“EPS”) is based upon the weighted average number of common shares outstanding during the period. Diluted weighted average number of common shares outstanding also included common stock equivalents such as stock options and restricted shares. The Company does not include the anti-dilutive effect of common stock equivalents in the calculation of dilutive common shares outstanding. A reconciliation of basic and diluted net income attributable to common stockholders is as follows: For the Twelve For the Twelve Months Ended Months Ended Calculation of Basic and Diluted EPS January 1, 2022 January 2, 2021 Weighted-average common shares outstanding – basic 2,152,926 2,119,499 Dilutive effect of restricted shares — — Dilutive effect of stock options — — Weighted-average common shares outstanding – diluted 2,152,926 2,119,499 Earnings per share – basic $ (1.35) $ (0.52) Earnings per share – diluted $ (1.35) $ (0.52) The computation of diluted common shares for the twelve months January 1, 2022 excluded 70,635 and stock options and 6,072 shares of restricted stock outstanding, respectively because to include them would have been anti-dilutive. The computation of diluted common shares for the twelve months ended January 2, 2021 excluded 60,639 of stock options outstanding and excluded 14,967 shares of restricted stock outstanding, respectively because to include them would have been anti-dilutive.

PROFIT SHARING PLAN

PROFIT SHARING PLAN	12 Months Ended
PROFIT SHARING PLAN	Jan. 01, 2022
PROFIT SHARING PLAN
PROFIT SHARING PLAN	9. PROFIT SHARING PLAN Summer Infant (USA), Inc. maintains a defined contribution salary deferral plan under Section 401(k) of the Internal Revenue Code. All employees who meet the plan’s eligibility requirements can participate. Employees may elect to make contributions up to federal limitations. In 2007, the Company adopted a matching plan which was further amended in 2013, and which was funded throughout the year. For the years ended January 1, 2022 and January 2, 2021, the Company recorded 401(k) matching expense of $235 and $278, respectively.

MAJOR CUSTOMERS

MAJOR CUSTOMERS	12 Months Ended
MAJOR CUSTOMERS	Jan. 01, 2022
MAJOR CUSTOMERS
MAJOR CUSTOMERS	10. MAJOR CUSTOMERS Sales to the Company’s top seven customers together comprised approximately 88% of our sales in fiscal 2021 and 87% of our sales in fiscal 2021. Of these customers, three generated more than 10% of sales for fiscal 2021: Amazon.com (38%), Walmart (24%), and Target (18%). In fiscal 2020, three customers generated more than 10% of sales: Amazon.com (33%), Walmart (28%), and Target (17%).

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 01, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES Leases The Company leases office space and distribution centers primarily related to its United States, Canada, United Kingdom, and Hong Kong operations. In connection with these leases, there were no cash incentives from the landlord to be used for the construction of leasehold improvements within the facility. In May 2020, the Company entered into a lease agreement amendment related to our headquarters in Woonsocket, Rhode Island. The agreement decreased the leased premises square footage and extended the current term, which was set to end in March 2021 prior to the amendment to June 2025. It additionally granted two 5-year term extension options. The Company was accounting for the lease in Woonsocket as a sale-leaseback with the building on the balance sheet as property and equipment, net and a corresponding financing obligation in long-term liabilities. Upon the execution of the lease amendment, the Company re-assessed the classification of the lease and determined it to be an operating lease, as the criteria for a sale had been met. As part of this re-classification, the Company derecognized the financing obligation of $2,390 from long-term liabilities and the amount related to the property and equipment, net of $2,357 from the balance sheet and recorded a ROU asset In April 2020, the Company entered into a twelve-month sublease agreement for a portion of its main leased warehouse and distribution center located in Riverside, California. In February 2021, Summer USA extended its lease at its Riverside, California distribution center. The existing lease was set to expire on September 30, 2021 and has been extended for 61 months through October 31, 2026. In addition, the amended lease grants a 60-month extension option. The Company concluded that this is a modification to the existing lease and continues to be classified as operating. Upon the execution of the lease extension, the Company recorded an increase in ROU In October 2021, the Company renewed its lease in Hong Kong for an additional two years beginning in November 2021 and terminating in November 2023. No options to renew were stipulated in the lease. Upon execution of the lease, the Company recorded an ROU asset The Company identified and assessed the following significant assumptions in recognizing the right-of-use asset and corresponding liabilities: ● Expected lease term— The expected lease term includes both contractual lease periods and, when applicable, cancelable option periods when it is reasonably certain that the Company would exercise such options. These leases have remaining lease terms between 0.17 and 4.83 years. The Woonsocket lease has two 5-year extension options, and the Canada lease has one 5-year extension option that have not been included in the lease term. ● Incremental borrowing rate —The Company’s lease agreements do not provide an implicit rate. As the Company does not have any external borrowings for comparable terms of its leases, the Company estimated the incremental borrowing rate based on secured borrowings available to the Company for the next 5 years . This is the rate the Company would have to pay if borrowing on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. ● Lease and non - lease components— In certain cases the Company is required to pay for certain additional charges for operating costs, including insurance, maintenance, taxes, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square footage. The Company determined that these costs are non-lease components, and they are not included in the calculation of the lease liabilities because they are variable. Payments for these variable, non-lease components are considered variable lease costs and are recognized in the period in which the costs are incurred. The components of the Company’s lease expense for the years ended January 1, 2022 and January 2, 2021 were as follows: Year Ended Year Ended January 1, 2022 January 2, 2021 Operating lease cost $ 3,553 $ 2,710 Variable lease cost 909 1,057 Less: sublease income (1,199) (749) Total lease expense $ 3,263 $ 3,018 Weighted-average remaining lease term 4.6 years 1.2 years Weighted-average discount rate: 3.35 % 5.00 % Cash paid for amounts included in the measurement of the Company’s lease liabilities were $2,969 and $2,911 for the years ended January 1, 2022 and January 2, 2021, respectively. As of January 1, 2022, the present value of maturities of the Company’s operating lease liabilities were as follows: Fiscal Year Ending: 2022 $ 3,592 2023 3,498 2024 3,347 2025 3,284 2026 2,672 Less imputed interest (1,226) Total $ 15,167 The future fixed sublease receipts under non-cancelable operating lease agreements as of January 1, 2022 are as follows: Fiscal Year Ending: 2022 $ 1,348 Thereafter — Total $ 1,348 Employment Contracts In accordance with applicable local law, Summer Infant Europe Limited is required to have employment contracts with all of its employees. In connection with these contracts, Summer Infant Europe Limited makes individual pension contributions to certain employees at varying rates from 1-7% of the employee’s annual salary, as part of their total compensation package. These pension contributions are expensed as incurred. There are no termination benefit provisions in these contracts. Litigation The Company is a party to routine litigation and administrative complaints incidental to its business. The Company does not believe that the resolution of any or all of such current routine litigation and administrative complaints is likely to have a material adverse effect on the Company’s financial condition or results of operations.

GEOGRAPHICAL INFORMATION

GEOGRAPHICAL INFORMATION	12 Months Ended
GEOGRAPHICAL INFORMATION	Jan. 01, 2022
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION	12. GEOGRAPHICAL INFORMATION The Company sells products throughout the United States, Canada, and the United Kingdom, and various other parts of the world. The Company does not disclose product line revenues as it is not practicable for the Company to do so. The following is a table that presents net revenue by geographic area: For the fiscal year ended January 1, January 2, 2022 2021 United States $ 132,153 $ 140,173 All Other 11,512 15,126 $ 143,665 $ 155,299 The following is a table that presents total assets by geographic area: January 1, January 2, 2022 2021 United States $ 88,836 $ 70,689 All Other 2,394 4,048 $ 91,230 $ 74,737 The following is a table that presents total long-lived assets by geographic area: January 1, January 2, 2022 2021 United States $ 29,224 $ 19,983 All Other 773 1,276 $ 29,997 $ 21,259

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jan. 01, 2022
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	13. SUBSEQUENT EVENTS The Company has evaluated all events or transactions that occurred after January 1, 2022 through the date of this Annual Report on Form 10-K and determined that no subsequent events occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto except as follows: Loan and Security Agreement. The New Term Loan Agreement provides for a second lien, subordinated term loan in an amount up to $5,000, with requests for the funding of tranches limited to every 30 days (the “New Term Loan”), subject to certain limitations. Borrowings under the New Term Loan Agreement will bear interest at a rate of 5.0% per annum until January 27, 2024, and thereafter at a rate of 9.0% per annum, payable in arrears on a quarterly basis. The principal amount of any borrowing will be repaid quarterly in installments equal to 2.5% of the highest amount of borrowings outstanding under the New Term Loan Agreement during the applicable quarter, commencing on July 1, 2022 and continuing until the maturity date of April 19, 2026. Borrowings under the New Loan Term Agreement are secured by a second lien on substantially all of the assets of the Company and are subordinated to the Company’s obligations under the BofA Agreement. The New Term Loan Agreement as amended contains customary affirmative and negative covenants and events of default substantially the same as the BofA Agreement. Amendments to BofA Agreement. Proposed Merger with Kids2, Inc.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jan. 01, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition	Revenue Recognition The Company applies FASB ASC Topic 606, Revenue from Contracts with Customers The Company’s principal activities from which it generates its revenue is product sales. The Company has one reportable segment of business. Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring control over a product to a customer when product delivery occurs. Consideration is typically paid approximately 60 days from the time control is transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in selling costs. A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for the Company is transfer of primarily juvenile products to its customers. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. A transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimation into the determination of the transaction price. The Company conducts its business with customers through valid purchase or sales orders each of which is considered a separate contract because individual orders are not interdependent on one another. Product transaction prices on a purchase or sale order are discrete and stand-alone. Purchase or sales orders may be issued under either a customer master service agreement or a reseller allowance agreement. Purchase or sales orders, master service agreements, and reseller allowance agreements which are specific and unique to each customer, may include product price discounts, markdown allowances, return allowances, and/or volume rebates which reduce the consideration due from customers. Variable consideration is estimated using the most likely amount method, which is based on our historical experience as well as current information such as sales forecasts. Contracts may also include cooperative advertising arrangements where the Company allows a discount from invoiced product amounts in exchange for customer purchased advertising that features the Company’s products. These allowances are generally based upon product purchases or specific advertising campaigns. Such allowances are accrued when the related revenue is recognized. These cooperative advertising arrangements provide a distinct benefit and fair value and are accounted for as direct selling expenses.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash flows, cash and cash equivalents include money market accounts and investments with an original maturity of three months or less. At times, the Company possesses cash balances in excess of federally-insured limits.
Trade Receivables	Trade Receivables Trade receivables are carried at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts based on historical bad debts, factors related to specific customers’ ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Amounts are considered to be uncollectable based upon historical experience and management’s evaluation of outstanding accounts receivable. Changes in the allowance for doubtful accounts are as follows: For the fiscal year ended January 1, January 2, 2022 2021 Allowance for doubtful accounts, beginning of period $ 197 $ 542 Charges to (recovery of) costs and expenses 8 (27) Account write-offs and other (191) (318) Allowance for doubtful accounts, end of period $ 14 $ 197
Inventory Valuation	Inventory Valuation Inventory is comprised mostly of finished goods and some component parts and is stated at the lower of cost using the first-in, first-out (FIFO) method, or net realizable value. The Company regularly reviews slow-moving and excess inventories and writes down inventories to net realizable value if the ultimate expected net proceeds from the disposals of excess inventory are less than the carrying cost of the merchandise.
Leases	Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company’s uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on fair values to the lease components and non-lease components. Although separation of lease and non-lease components is required, certain practical expedients are available to entities. Entities electing the practical expedient would not separate lease and non-lease components. Rather, they would account for each lease component and the related non-lease component together as a single component. The Company’s facilities operating leases have lease and non-lease components to which the Company has elected to apply the practical expedient and account for each lease component and related non-lease component as one single component. The lease component results in a ROU asset being recorded on the balance sheet. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. The Company owns the tools and molds used in the production of its products by third party manufacturers. Capitalized mold costs include costs incurred for the pre-production design and development of the molds. Depreciation is provided over the estimated useful lives of the respective assets using the straight-line method.
Long-Lived Assets with Finite Lives	Long-Lived Assets with Finite Lives The Company reviews long-lived assets with finite lives for impairment on an asset group level whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered to be impaired when its carrying amount exceeds both the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition and the assets’ fair value. Long-lived assets include property and equipment and finite-lived intangible assets. The amount of impairment loss, if any, is charged by the Company to current operations.
Indefinite-Lived Intangible Assets	Indefinite-Lived Intangible Assets The Company accounts for intangible assets in accordance with accounting guidance that requires that intangible assets with indefinite useful lives be tested annually for impairment and more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s annual impairment testing is conducted in the fourth quarter of every year. The Company tests indefinite-lived intangible assets for impairment by comparing the asset’s fair value to its carrying amount. If the fair value is less than the carrying amount, the excess of the carrying amount over fair value is recognized as an impairment charge and the adjusted carrying amount becomes the assets’ new cost basis. Management also evaluates the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, it is amortized prospectively over its estimated remaining useful life.
Fair Value Measurements	Fair Value Measurements The Company follows ASC 820, “Fair Value Measurements and Disclosures” which includes a framework for measuring fair value and expanded related disclosures. Broadly, the framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The standard established a three-level valuation hierarchy based upon observable and non-observable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1—Quoted prices for identical instruments in active markets. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Significant inputs to the valuation model are unobservable. The Company maintains policies and procedures to value instruments using the best and most relevant data available. In addition, the Company utilizes third party specialists that review valuation, including independent price validation. The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and short and long-term borrowings. Because of their short maturity, the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value. The carrying value of the Company’s debt approximates fair value since the stated rate is similar to rates currently available to the Company for debt with similar terms and remaining maturities. The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets and finite-lived intangibles. The Company tests its indefinite-lived assets for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the carrying value may exceed its fair value. The resulting fair value measurements are considered to be Level 3 inputs. The Company did not record an impairment charge in fiscal 2021. During the fourth quarter of fiscal 2020, the Company determined that the estimated fair value of a definite-lived asset was non-recoverable, and the Company recorded a non-cash impairment charge of $676 which reduced the value of the intangible asset to $0, as more fully described in “Note 4 to the Consolidated Financial Statements-Intangible Assets.”
Income Taxes	Income taxes Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not that such benefits will be realized. Deferred income tax assets are recorded on a net basis as a long term asset. The Company follows the applicable guidance relative to uncertain tax positions. This standard provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-not in order for those tax positions to be recognized in the financial statements.
Translation of Foreign Currencies	Translation of Foreign Currencies Assets and liabilities of the Company’s foreign subsidiaries whose functional currency is its local currency, are translated into U.S. dollars at the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been translated at average rates prevailing during each respective quarter. Resulting translation adjustments are made to a separate component of stockholders’ equity within accumulated other comprehensive loss. Assets and liabilities of the Company’s foreign subsidiaries whose functional currency is the U.S. dollar are remeasured into U.S. dollars at their historical rates or the exchange rate in effect at the end of the quarter and the income and expense accounts of these affiliates have been remeasured at average rates prevailing during each respective quarter. Resulting remeasurement adjustments are made to the consolidated statement of operations. Foreign exchange transaction gains and losses are included in the accompanying consolidated statement of operations.
Shipping Costs	Shipping Costs Shipping costs to customers are included in selling expenses and amounted to approximately $2,206 and $2,485 for the fiscal years ended January 1, 2022 and January 2, 2021, respectively.
Advertising Costs	Advertising Costs The Company charges advertising costs to selling expense as incurred. Advertising expense, which consists primarily of promotional and cooperative advertising allowances provided to customers, was approximately $7,881 and $9,215 for the fiscal years ended January 1, 2022 and January 2, 2021, respectively.
Segment Information	Segment Information Operating segments are identified as components of an enterprise about which separate, discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business as one operating segment utilizing an omni-channel distribution strategy.
Net Loss Per Share	Net Loss Per Share Basic loss per share for the Company is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted income or loss per share includes the dilutive impact of outstanding stock options and unvested restricted shares. Diluted loss per share for the Company is computed by dividing net loss by the dilutive weighted average shares outstanding which includes: the dilutive impact (using the “treasury stock” method) of “in the money” stock options and unvested restricted shares issued to employees. Options to purchase 70,635 and 60,639 shares of the Company’s common stock and 6,072 and 14,967 of restricted shares were not included in the calculation, due to the fact that these instruments were anti-dilutive for the fiscal years ended January 1, 2022 and January 2, 2021, respectively.
New Accounting Pronouncements	New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and a subsequent amendment to the initial guidance, ASU 2018-19 Codification Improvements to Topic 325, Financial Instruments-Credit Losses (collectively, Topic 326). Topic 326 requires measurement and recognition of expected credit losses for financial assets held, which include, but are not limited to, trade and other receivables. The new standard is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Jan. 01, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of changes in the allowance for doubtful accounts	For the fiscal year ended January 1, January 2, 2022 2021 Allowance for doubtful accounts, beginning of period $ 197 $ 542 Charges to (recovery of) costs and expenses 8 (27) Account write-offs and other (191) (318) Allowance for doubtful accounts, end of period $ 14 $ 197

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
REVENUE (Tables)	Jan. 01, 2022
REVENUE
Schedule of net sales by geographical area	For the fiscal year ended January 1, January 2, 2022 2021 United States $ 132,153 $ 140,173 All Other 11,512 15,126 $ 143,665 $ 155,299

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Jan. 01, 2022
PROPERTY AND EQUIPMENT
Schedule of property and equipment, at cost	For the fiscal year ended January 1, January 2, Depreciation/ 2022 2021 Amortization Period Computer-related $ 4,577 $ 4,560 5 years Tools, dies, prototypes, and molds 28,826 27,849 1 - 5 years Other 7,777 7,671 1 - 15 years 41,180 40,080 Less: accumulated depreciation 37,052 35,291 Property and equipment, net $ 4,128 $ 4,789

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
INTANGIBLE ASSETS (Tables)	Jan. 01, 2022
INTANGIBLE ASSETS
Schedule of intangible assets	For the fiscal year ended January 1, January 2, 2022 2021 Brand names $ 10,900 $ 10,900 Patents and licenses 4,208 4,125 Customer relationships 6,946 6,946 Other intangibles 1,886 1,882 23,940 23,853 Less: accumulated amortization (12,558) (12,114) Intangible assets, net $ 11,382 $ 11,739
Estimated amortization expense for the remaining definite-lived assets for the next five years	Estimated amortization expense for the remaining definite-lived assets for the next five years is as follows: Fiscal Year ending 2022 440 2023 440 2024 440 2025 437 2026 207

DEBT (Tables)

DEBT (Tables)	12 Months Ended
DEBT (Tables)	Jan. 01, 2022
DEBT
Schedule of aggregate maturities of the Loan Agreement and the PPP Loan	Aggregate maturities of bank debt related to the Loan Agreement are as follows: Fiscal Year ending: 2022 1,594 2023 2,125 2024 2,125 2025 34,728 2026 and beyond — Total $ 40,572

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Jan. 01, 2022
INCOME TAXES
Schedule of provision (benefit) for income taxes	Fiscal 2021 Fiscal 2020 Current: Federal $ — $ 108 Foreign — 2 State and local 22 2 Total current 22 112 Deferred: Federal 718 $ (5) Foreign 237 6 State and local 200 4 Total deferred 1,155 5 Total provision $ 1,177 $ 117
Schedule of tax effects of temporary differences that comprise the deferred tax liabilities and assets	January 1, January 2, 2022 2021 Deferred tax assets: Accounts receivable $ 4 $ 51 Inventory and Uniform Capitalization reserve 467 475 Interest deduction limitation 1,919 1,643 Lease Liability and accrued expenses 3,912 806 Research and development credit 2,030 2,292 Foreign tax credit 795 795 Net operating loss carry-forward 2,735 2,565 Total deferred tax assets 11,862 8,627 Deferred tax liabilities: Intangible assets and other (2,271) (2,132) ROU Assets and deferred rent (3,745) (833) Property, plant and equipment (83) 28 Total deferred tax liabilities (6,099) (2,937) Valuation allowance (5,915) (4,689) Deferred tax liabilities and valuation allowance (12,014) (7,626) Net deferred income tax asset $ (152) $ 1,001
Schedule of reconciliation of the benefit for income taxes at the U.S. federal income tax statutory rate to the benefit in the consolidated financial statements	Fiscal 2021 Fiscal 2020 Tax benefit at statutory rate $ (361) $ (207) State income taxes, net of U.S. federal income tax benefit 176 5 Adjustment to uncertain tax position — 7,543 Stock options 16 5 Foreign tax rate differential (49) 2 Tax credits 262 258 Worthless stock deduction — (7,435) Non-deductible expenses/Non-taxable income including PPP (428) 149 Expiration of unexercised stock options 24 90 Increase/(Decrease) in valuation allowance 1,512 (255) Other 25 (38) Total provision $ 1,177 $ 117
Schedule of the Company's adjustment to its uncertain tax positions	January 1, January 2, 2022 2021 Balance, at beginning of the year $ 7,543 $ — Increase for tax positions related to the current year — 7,543 Balance, at end of year $ 7,543 $ 7,543

SHARE BASED COMPENSATION (Table

SHARE BASED COMPENSATION (Tables)	12 Months Ended
SHARE BASED COMPENSATION (Tables)	Jan. 01, 2022
SHARE BASED COMPENSATION
Summary of weighted average assumptions used for stock options granted	Fiscal Fiscal 2021 2020 Expected life (in years) 4.6 4.7 Risk-free interest rate 0.7 % 0.3 % Volatility 105.3 % 98.9 % Dividend yield 0.0 % 0.0 % Forfeiture rate 50.6 % 51.9 %
Summary of status of the Company's options and changes during the period	Weighted- Number Average Of Exercise Shares Price Outstanding at beginning of year 60,639 $ 10.63 Granted 52,000 $ 13.41 Exercised or released (7,965) $ 8.03 Canceled or forfeited (33,705) $ 13.77 Expired (334) $ 66.96 Outstanding at end of year 70,635 $ 11.20 Options exercisable at January 1, 2022 13,425 $ 11.14
Summary of stock options, by range of exercise prices	The following table summarizes information about stock options at January 1, 2022: Options Outstanding Options Exercisable Weighted Weighted Remaining Average Remaining Average Range of Number Contractual Exercise Number Contractual Exercise Exercise Prices Outstanding Life (years) Price Exercisable Life Price $3.51 - $6.00 13,056 7.4 $ 3.64 3,291 7.4 $ 3.64 $6.01 - $12.00 19,840 8.3 $ 9.26 5,895 6.7 $ 7.71 $12.01 - $20.00 36,396 8.9 $ 14.21 2,896 4.3 $ 17.11 $20.01 - $30.00 336 3.2 $ 23.76 336 3.2 $ 23.76 $30.01 - $48.51 1,007 1.1 $ 34.43 1,007 1.1 $ 34.43 70,635 8.3 $ 11.20 13,425 5.9 $ 11.14
Schedule of non-vested activity - Restricted Stock Awards	Number of Grant Date Shares Fair Value Non-vested restricted stock awards as of January 2, 2021 14,967 $ 8.68 Granted 20,960 $ 11.45 Vested and released (24,539) $ 11.13 Forfeited (5,316) $ 9.73 Non-vested restricted stock awards as of January 1, 2022 6,072 $ 7.44

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	12 Months Ended
WEIGHTED AVERAGE COMMON SHARES (Tables)	Jan. 01, 2022
WEIGHTED AVERAGE COMMON SHARES
Schedule of reconciliation of basic and diluted net income attributable to common stockholders	For the Twelve For the Twelve Months Ended Months Ended Calculation of Basic and Diluted EPS January 1, 2022 January 2, 2021 Weighted-average common shares outstanding – basic 2,152,926 2,119,499 Dilutive effect of restricted shares — — Dilutive effect of stock options — — Weighted-average common shares outstanding – diluted 2,152,926 2,119,499 Earnings per share – basic $ (1.35) $ (0.52) Earnings per share – diluted $ (1.35) $ (0.52)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Jan. 01, 2022
COMMITMENTS AND CONTINGENCIES
Schedule of lease expense	The components of the Company’s lease expense for the years ended January 1, 2022 and January 2, 2021 were as follows: Year Ended Year Ended January 1, 2022 January 2, 2021 Operating lease cost $ 3,553 $ 2,710 Variable lease cost 909 1,057 Less: sublease income (1,199) (749) Total lease expense $ 3,263 $ 3,018 Weighted-average remaining lease term 4.6 years 1.2 years Weighted-average discount rate: 3.35 % 5.00 %
Schedule of present value of maturities of operating lease liabilities	As of January 1, 2022, the present value of maturities of the Company’s operating lease liabilities were as follows: Fiscal Year Ending: 2022 $ 3,592 2023 3,498 2024 3,347 2025 3,284 2026 2,672 Less imputed interest (1,226) Total $ 15,167
Schedule of future fixed sublease receipts under non-cancelable operating lease agreements	The future fixed sublease receipts under non-cancelable operating lease agreements as of January 1, 2022 are as follows: Fiscal Year Ending: 2022 $ 1,348 Thereafter — Total $ 1,348

GEOGRAPHICAL INFORMATION (Table

GEOGRAPHICAL INFORMATION (Tables)	12 Months Ended
GEOGRAPHICAL INFORMATION (Tables)	Jan. 01, 2022
GEOGRAPHICAL INFORMATION
Schedule of net revenue by geographic area	The following is a table that presents net revenue by geographic area: For the fiscal year ended January 1, January 2, 2022 2021 United States $ 132,153 $ 140,173 All Other 11,512 15,126 $ 143,665 $ 155,299
Schedule of total assets by geographic area	The following is a table that presents total assets by geographic area: January 1, January 2, 2022 2021 United States $ 88,836 $ 70,689 All Other 2,394 4,048 $ 91,230 $ 74,737
Schedule of total long lived assets by geographic area	The following is a table that presents total long-lived assets by geographic area: January 1, January 2, 2022 2021 United States $ 29,224 $ 19,983 All Other 773 1,276 $ 29,997 $ 21,259

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	Mar. 13, 2020	Jan. 02, 2021USD ($)	Jan. 01, 2022USD ($)segmentshares	Jan. 02, 2021USD ($)shares
2022 Plan and COVID-19 Pandemic
Cash		$ 510	$ 535	$ 510
Net loss			(2,898)	(1,102)
Cash in operating activities			(8,391)	17,607
Outstanding indebtedness			40,572
Borrowing availability			2,949
Reverse Stock Split
Reverse stock split	0.1111
Reclassification
Amortization of deferred financing costs			$ 294	$ 651
Fiscal Year
Fiscal Period Duration			364 days	371 days
Revenue Recognition
Number of reportable segments \| segment			1
Days in accounts receivable			P60D
Changes in the allowance for doubtful accounts
Allowance for doubtful accounts, beginning of period			$ 197	$ 542
Charges to (recovery of) costs and expenses			8	(27)
Account write-offs and other			(191)	(318)
Allowance for doubtful accounts, end of period		197	$ 14	197
Fair Value Measurements
Amortization of definite-lived intangible assets		676		676
Adjusted value of definite-lived intangible asset		0		0
Segment Information
Number of operating segments \| segment			1
New Accounting Pronouncements
ROU asset		$ 3,625	$ 14,383	$ 3,625
Operating Lease, Liability			$ 15,167
Stock Options
Net Income/Loss Per Share
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) \| shares			70,635	60,639
Restricted shares
Net Income/Loss Per Share
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) \| shares			6,072	14,967
Selling expenses
Shipping costs and Advertising costs
Shipping costs			$ 2,206	$ 2,485
Advertising costs			$ 7,881	$ 9,215

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
REVENUE (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Net sales by geographical area
Net sales	$ 143,665	$ 155,299
Election of practical expedient, incremental cost of obtaining contracts	true	true
United States
Net sales by geographical area
Net sales	$ 132,153	$ 140,173
All Other
Net sales by geographical area
Net sales	$ 11,512	$ 15,126

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) $ in Thousands	12 Months Ended
PROPERTY AND EQUIPMENT (Details) $ in Thousands	Jan. 01, 2022USD ($)item	Jan. 02, 2021USD ($)	May 31, 2020USD ($)	May 01, 2020USD ($)
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 41,180	$ 40,080
Less: accumulated depreciation	37,052	35,291
Property and equipment, net	4,128	4,789
Total depreciation expense	1,795	2,847
ROU asset	$ 14,383	3,625
Woonsocket, RI
PROPERTY AND EQUIPMENT
Number of options to extend \| item	2
Extension term	5 years
ROU asset			$ 1,457
Adjustments resulting from lease amendment agreement
PROPERTY AND EQUIPMENT
Property and equipment, net			(2,357)	$ (2,357)
ROU asset			$ 1,457	$ 1,457
Computer-related
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 4,577	$ 4,560
Depreciation/Amortization Period	5 years	5 years
Tools, dies, prototypes, and molds
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 28,826	$ 27,849
Tools, dies, prototypes, and molds \| Minimum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	1 year	1 year
Tools, dies, prototypes, and molds \| Maximum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	5 years	5 years
Other
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 7,777	$ 7,671
Other \| Minimum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	1 year	1 year
Other \| Maximum
PROPERTY AND EQUIPMENT
Depreciation/Amortization Period	15 years	15 years

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Jan. 01, 2022	Jan. 02, 2021
INTANGIBLE ASSETS
Intangible assets, gross	$ 23,853	$ 23,940	$ 23,853
Less: Accumulated amortization	(12,114)	(12,558)	(12,114)
Intangible assets, net	11,739	11,382	11,739
Amortization expense		444	501
Amortization of definite-lived intangible assets	676		676
Intangibles not subject to amortization	8,400	8,400	8,400
Impairment of intangible asset		0	$ 0
Estimated future amortization expense
2022		440
2023		440
2024		440
2025		437
2026		$ 207
Minimum
INTANGIBLE ASSETS
Amortization period of intangible assets		5 years	5 years
Maximum
INTANGIBLE ASSETS
Amortization period of intangible assets		18 years	18 years
Patents and licenses
INTANGIBLE ASSETS
Intangible assets, gross	4,125	$ 4,208	$ 4,125
Customer relationships
INTANGIBLE ASSETS
Intangible assets, gross	6,946	6,946	6,946
Other intangibles
INTANGIBLE ASSETS
Intangible assets, gross	1,882	1,886	1,882
Brand names
INTANGIBLE ASSETS
Intangible assets, gross	$ 10,900	$ 10,900	$ 10,900

DEBT - Loan Agreement with Bank

DEBT - Loan Agreement with Bank of America (Details) $ in Thousands	Jun. 28, 2018USD ($)	Jan. 01, 2022USD ($)	Jan. 02, 2021USD ($)	Mar. 16, 2022USD ($)	Jan. 28, 2022USD ($)	Oct. 15, 2020USD ($)
DEBT
Borrowing availability		$ 2,949
Prior Bank of America Credit Facility \| Revolving credit facility \| Financial Covenant
DEBT
Borrowing base as a percentage of eligible receivables	85.00%
Borrowing base as a percentage of eligible inventory	70.00%
Borrowing base as a percentage of net orderly liquidation value of eligible inventory and less reserves	85.00%
Prior Bank of America Credit Facility \| Letter of credit sub-line facility
DEBT
Maximum borrowing capacity	$ 5,000
BofA Agreement \| Minimum \| Financial Covenant
DEBT
Fixed charge coverage ratio at the end of each fiscal month		1
BofA Agreement \| Term Loan
DEBT
Maximum borrowing capacity						$ 7,500
Amount outstanding		$ 5,625	$ 7,125
Quarterly basis installment amount		375
BofA Agreement \| Term Loan \| Financial Covenant
DEBT
Threshold availability to maintain minimum fixed charge coverage ratio		$ 5,000
BofA Agreement \| Term Loan \| LIBOR
DEBT
Interest rate during the period		3.875%
BofA Agreement \| Term Loan \| Base rate
DEBT
Interest rate during the period		5.75%
BofA Agreement \| FILO Loan
DEBT
Maximum borrowing capacity						2,500
Amount outstanding		$ 1,719	2,344
BofA Agreement \| FILO Loan \| LIBOR
DEBT
Interest rate during the period		3.625%
BofA Agreement \| FILO Loan \| Base rate
DEBT
Interest rate during the period		5.50%
BofA Agreement \| Revolving credit facility
DEBT
Maximum borrowing capacity						$ 40,000
Amount outstanding		$ 33,228	$ 21,467
Borrowing capacity		36,177
Borrowing availability		$ 2,949
BofA Agreement \| Revolving credit facility \| Financial Covenant
DEBT
Borrowing base as a percentage of eligible receivables		85.00%
Borrowing base as a percentage of eligible inventory		70.00%
Borrowing base as a percentage of net orderly liquidation value of eligible inventory and less reserves		85.00%
BofA Agreement \| Revolving credit facility \| LIBOR
DEBT
Interest rate during the period		2.625%	2.625%
BofA Agreement \| Revolving credit facility \| Base rate
DEBT
Interest rate during the period		4.50%
BofA Agreement \| Letter of credit sub-line facility
DEBT
Maximum borrowing capacity		$ 5,000
Term Loan and Security Agreement \| New Term Loan Agreement
DEBT
Subordinated Debt				$ 5,000,000	$ 5,000,000
Term Loan and Security Agreement \| Financial Covenant
DEBT
Interest rate basis	LIBOR
Prior Term Loan \| Term Loan
DEBT
Quarterly basis installment amount		$ 219

DEBT - Term Loan Agreement (Det

DEBT - Term Loan Agreement (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Jun. 28, 2018
DEBT
Loss from extinguishment of debt	$ 1,972	$ (1,800)
Prior Term Loan
DEBT
Loss from extinguishment of debt		$ (1,800)
Prior Term Loan \| Term Loan
DEBT
Quarterly basis installment amount	$ 219
Face amount of loan			$ 17,500

DEBT - PPP Loan and Aggregate m

DEBT - PPP Loan and Aggregate maturities (Details) - USD ($) $ in Thousands	May 23, 2021	Aug. 03, 2020	Jan. 01, 2022	Jan. 02, 2021
Aggregate maturities of bank debt related to the Loan Agreement
2022			$ 1,594
2023			2,125
2024			2,125
2025			34,728
Total			40,572
Long-term Debt
Aggregate maturities of bank debt related to the Loan Agreement
Unamortized debt issuance costs			$ 1,027	$ 1,275
PPP Loan
DEBT
Amount of interest forgiven	$ 16
PPP Loan
DEBT
Loan proceeds		$ 1,956
Amount of principal forgiven	$ 1,956
Fixed rate interest		1.00%
Period for loan forgiveness		10 months

DEBT - Sale Leaseback Transacti

DEBT - Sale Leaseback Transactions (Details) $ in Thousands	Jan. 22, 2018USD ($)	May 13, 2015USD ($)period	May 12, 2015	Mar. 24, 2009USD ($)	Feb. 25, 2009	Jan. 01, 2022USD ($)	Jan. 02, 2021USD ($)	May 31, 2020USD ($)	May 01, 2020USD ($)item
Sale Leaseback Transaction [Line Items]
Property and equipment, net						$ 4,128	$ 4,789
ROU asset						14,383	3,625
Lease liabilities, current						3,133	2,349
Lease liabilities, noncurrent						$ 12,034	$ 1,493
Adjustments resulting from lease amendment agreement
Sale Leaseback Transaction [Line Items]
Property and equipment, net								$ (2,357)	$ (2,357)
ROU asset								$ 1,457	1,457
Lease liabilities, current									264
Lease liabilities, noncurrent									$ 1,193
Operating Lease, Third Amendment
Sale Leaseback Transaction [Line Items]
Number of options to extend \| item									2
Extension term									5 years
Summer Infant (USA), Inc. \| Faith Realty \| Sale-leaseback definitive agreement
Sale Leaseback Transaction [Line Items]
Sale proceeds				$ 4,052
Repurchase price as a percentage of the initial sale price					110.00%
Summer Infant (USA), Inc. \| Faith Realty \| Original Lease
Sale Leaseback Transaction [Line Items]
Annual rent				$ 390
Lease term				7 years
Summer Infant (USA), Inc. \| Faith Realty \| Amended Lease
Sale Leaseback Transaction [Line Items]
Annual rent		$ 429
Lease term		2 years
Leasehold improvement allowance		$ 78
Summer Infant (USA), Inc. \| Faith Realty \| Amended Lease, Optional Extension
Sale Leaseback Transaction [Line Items]
Annual rent		$ 468
Number of extensions \| period		1
Lease term		3 years	5 years
Prior notice required for extension		12 months
Leasehold improvement allowance		$ 234
Summer Infant (USA), Inc. \| Faith Realty \| Second Amendment
Sale Leaseback Transaction [Line Items]
Annual rent	$ 468
Lease term	3 years

INCOME TAXES - Tax Act (Details

INCOME TAXES - Tax Act (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Tax Act (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 29, 2018	Dec. 30, 2017
Tax Cuts and Jobs Act
Federal statutory income tax rate			21.00%	35.00%
Deferred tax asset, non-deductible interest	$ 1,919	$ 1,643

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Current:
Federal		$ 108
Foreign		2
State and local	$ 22	2
Total current	22	112
Deferred:
Federal	718	(5)
Foreign	237	6
State and local	200	4
Total deferred	1,155	5
Total provision	$ 1,177	$ 117

INCOME TAXES - Deferred Income

INCOME TAXES - Deferred Income Taxes (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Deferred tax assets:
Accounts receivable	$ 4	$ 51
Inventory and Uniform Capitalization reserve	467	475
Interest deduction limitation	1,919	1,643
Lease Liability and accrued expenses	3,912	806
Research and development credit	2,030	2,292
Foreign tax credit	795	795
Net operating loss carry-forward	2,735	2,565
Total deferred tax assets	11,862	8,627
Deferred tax liabilities:
Intangible assets and other	(2,271)	(2,132)
ROU Assets and deferred rent	(3,745)	(833)
Property, plant and equipment	(83)	28
Total deferred tax liabilities	(6,099)	(2,937)
Valuation allowance	(5,915)	(4,689)
Deferred tax liabilities and valuation allowance	(12,014)	(7,626)
Net deferred income tax asset	$ (152)	$ (1,001)

INCOME TAXES - Reconciliation (

INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Effective Income Tax Rate Reconciliation
Tax benefit at statutory rate	$ (361)	$ (207)
State income taxes, net of U.S. federal income tax benefit	176	5
Adjustment to uncertain tax position		7,543
Stock options	16	5
Foreign tax rate differential	(49)	2
Tax credits	262	258
Worthless stock deduction		(7,435)
Non-deductible expenses/Non-taxable income including PPP	(428)	149
Expiration of unexercised stock options	24	90
Increase/(Decrease) in valuation allowance	1,512	(255)
Other	25	(38)
Total provision	$ 1,177	117
Worthless stock deducted for income tax purposes		$ 26,933

INCOME TAXES - NOL Carryforward

INCOME TAXES - NOL Carryforwards and Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Net operating loss carryforwards
Valuation Allowance	$ 5,915	$ 4,689
Writedown related to interest deduction limitations	2,714	2,438
Accrued interest and penalties relating to uncertain tax positions	0
Reconciliation of Unrecognized Tax positions
Balance, at beginning of the year	7,543	0
Increase for tax positions related to the current year		7,543
Balance, at end of year	$ 7,543	7,543
Minimum
Net operating loss carryforwards
Period subject to examination by major taxing jurisdictions	2 years
Maximum
Net operating loss carryforwards
Period subject to examination by major taxing jurisdictions	6 years
Federal and state
Net operating loss carryforwards
Net operating loss carryforwards	$ 6,563
Foreign \| Canada
Net operating loss carryforwards
Net operating loss carryforwards	1,832
Foreign \| Asia
Net operating loss carryforwards
Net operating loss carryforwards	543
Foreign \| United Kingdom
Net operating loss carryforwards
Net operating loss carryforwards	2,028
State and foreign
Net operating loss carryforwards
Valuation Allowance	$ 3,201	$ 2,251

SHARE BASED COMPENSATION - Summ

SHARE BASED COMPENSATION - Summary of Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Oct. 02, 2021	May 31, 2021	Apr. 30, 2021
Selling, general and administrative expenses
SHARE BASED COMPENSATION
Share-based compensation expense	$ 327	$ 253
2012 Plan
SHARE BASED COMPENSATION
Number of shares authorized under the plan			374,889	374,889	188,889
Shares available to grant	202,576

SHARE BASED COMPENSATION - Stoc

SHARE BASED COMPENSATION - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Weighted average assumptions
Expected life (in years)	4 years 7 months 6 days	4 years 8 months 12 days
Risk-free interest rate	0.70%	0.30%
Volatility	105.30%	98.90%
Dividend yield	0.00%	0.00%
Forfeiture rate	50.60%	51.90%
Additional information
Weighted-average grant date fair value of options granted (in dollars per share)	$ 9.95	$ 2.61
Outstanding stock options expected to vest (in shares)	49,179
Intrinsic value of options exercised	$ 69	$ 13
Number Of Shares
Outstanding at beginning of year (in shares)	60,639
Granted (in shares)	52,000
Exercised or released (in shares)	(7,965)
Canceled or forfeited (in shares)	(33,705)
Expired (in shares)	(334)
Outstanding at end of year (in shares)	70,635	60,639
Options exercisable at end of year (in shares)	13,425
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 10.63
Granted (in dollars per share)	13.41
Exercised or released (in dollars per share)	8.03
Canceled or forfeited (in dollars per share)	13.77
Expired (in dollars per share)	66.96
Outstanding at end of year (in dollars per share)	11.20	$ 10.63
Options exercisable at January 2, 2021 (in dollars per share)	$ 11.14

SHARE BASED COMPENSATION - St_2

SHARE BASED COMPENSATION - Stock Options by Exercise Price (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Options Outstanding
Number Outstanding (in shares)	70,635
Remaining Contractual Life (years)	8 years 3 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 11.20
Options Exercisable
Number Exercisable (in shares)	13,425
Remaining Contractual Life (in years)	5 years 10 months 24 days
Weighted Average Exercise Price (in dollars per share)	$ 11.14
Share based compensation, additional information
Aggregate intrinsic value of options outstanding	$ 39	$ 73
Aggregate intrinsic value of options exercisable	39	$ 73
Unrecognized compensation cost	$ 204
Weighted average vesting period for recognition of unrecognized cost	3 years 2 months 12 days
$3.51 - $6.00
Range of Exercise Prices
Exercise price, low end of range (in dollars per share)	$ 3.51
Exercise price, high end of range (in dollars per share)	$ 6
Options Outstanding
Number Outstanding (in shares)	13,056
Remaining Contractual Life (years)	7 years 4 months 24 days
Weighted Average Exercise Price (in dollars per share)	$ 3.64
Options Exercisable
Number Exercisable (in shares)	3,291
Remaining Contractual Life (in years)	7 years 4 months 24 days
Weighted Average Exercise Price (in dollars per share)	$ 3.64
$6.01 - $12.00
Range of Exercise Prices
Exercise price, low end of range (in dollars per share)	6.01
Exercise price, high end of range (in dollars per share)	$ 12
Options Outstanding
Number Outstanding (in shares)	19,840
Remaining Contractual Life (years)	8 years 3 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 9.26
Options Exercisable
Number Exercisable (in shares)	5,895
Remaining Contractual Life (in years)	6 years 8 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 7.71
$12.00 - $20.00
Range of Exercise Prices
Exercise price, low end of range (in dollars per share)	12.01
Exercise price, high end of range (in dollars per share)	$ 20
Options Outstanding
Number Outstanding (in shares)	36,396
Remaining Contractual Life (years)	8 years 10 months 24 days
Weighted Average Exercise Price (in dollars per share)	$ 14.21
Options Exercisable
Number Exercisable (in shares)	2,896
Remaining Contractual Life (in years)	4 years 3 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 17.11
$20.01 - $30.00
Range of Exercise Prices
Exercise price, low end of range (in dollars per share)	20.01
Exercise price, high end of range (in dollars per share)	$ 30
Options Outstanding
Number Outstanding (in shares)	336
Remaining Contractual Life (years)	3 years 2 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 23.76
Options Exercisable
Number Exercisable (in shares)	336
Remaining Contractual Life (in years)	3 years 2 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 23.76
$30.01 - $48.51
Range of Exercise Prices
Exercise price, low end of range (in dollars per share)	30.01
Exercise price, high end of range (in dollars per share)	$ 48.51
Options Outstanding
Number Outstanding (in shares)	1,007
Remaining Contractual Life (years)	1 year 1 month 6 days
Weighted Average Exercise Price (in dollars per share)	$ 34.43
Options Exercisable
Number Exercisable (in shares)	1,007
Remaining Contractual Life (in years)	1 year 1 month 6 days
Weighted Average Exercise Price (in dollars per share)	$ 34.43

SHARE BASED COMPENSATION - Rest

SHARE BASED COMPENSATION - Restricted Stock (Details) $ / shares in Units, $ in Thousands	Mar. 13, 2020shares	Jan. 01, 2022USD ($)$ / sharesshares
Additional disclosures
Reverse stock split	0.1111
Outstanding common shares	2,108,743
Restricted shares
SHARE BASED COMPENSATION
Required payment from grantee \| $		$ 0
Number of Shares
Non-vested restricted stock awards, Beginning of year		14,967
Granted (in shares)		20,960
Vested and released (in shares)		(24,539)
Forfeited (in shares)		(5,316)
Non-vested restricted stock awards, End of year		6,072
Grant Date Fair Value
Non-vested restricted stock awards, Beginning of year (in dollars per share) \| $ / shares		$ 8.68
Granted (in dollars per share) \| $ / shares		11.45
Vested and released (in dollars per share) \| $ / shares		11.13
Forfeited (in dollars per share) \| $ / shares		9.73
Non-vested restricted stock awards, End of year (in dollars per share) \| $ / shares		$ 7.44
Additional disclosures
Unrecognized compensation cost \| $		$ 21
Weighted average vesting period for recognition of unrecognized cost		2 years

WEIGHTED AVERAGE COMMON SHARE_2

WEIGHTED AVERAGE COMMON SHARES - Reconciliation of Basic and Diluted Net Income (Loss) Attributable to Common Stockholders (Details) - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Calculation of Basic and Diluted EPS
Weighted-average common shares outstanding - basic	2,152,926	2,119,499
Weighted-average common shares outstanding - diluted	2,152,926	2,119,499
Earnings per share - basic	$ (1.35)	$ (0.52)
Earnings per share - diluted	$ (1.35)	$ (0.52)

WEIGHTED AVERAGE COMMON SHARE_3

WEIGHTED AVERAGE COMMON SHARES - Anti-dilutive securities (Details) - shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Stock Options
WEIGHTED AVERAGE COMMON SHARES
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares)	70,635	60,639
Restricted shares
WEIGHTED AVERAGE COMMON SHARES
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares)	6,072	14,967

PROFIT SHARING PLAN (Details)

PROFIT SHARING PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
PROFIT SHARING PLAN (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
PROFIT SHARING PLAN
Matching expense	$ 235	$ 278

MAJOR CUSTOMERS (Details)

MAJOR CUSTOMERS (Details) - Sales - Customer concentration risk - customer	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
MAJOR CUSTOMERS
Number of significant customers	7	7
Number of customers individually representing more than 10% of sales	3	3
Amazon.com
MAJOR CUSTOMERS
Percentage of concentration risk	38.00%	33.00%
Walmart
MAJOR CUSTOMERS
Percentage of concentration risk	24.00%	28.00%
Target
MAJOR CUSTOMERS
Percentage of concentration risk	18.00%	17.00%
Seven customers
MAJOR CUSTOMERS
Percentage of concentration risk	88.00%	87.00%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Summary of Leases (Details) $ in Thousands	Feb. 28, 2021USD ($)	May 31, 2020USD ($)item	Apr. 30, 2020	Jan. 01, 2022USD ($)item	Jan. 02, 2021USD ($)	Oct. 31, 2021USD ($)
Leases
Derecognition of a building sale-leaseback financial obligation					$ 2,390
Derecognition of a building sale-leaseback fixed asset, net of depreciation					2,357
ROU asset				$ 14,383	3,625
Operating lease liability				$ 12,034	$ 1,493
Term of secured borrowings used to estimate incremental borrowing rate				5 years
Minimum
Leases
Remaining lease term				2 months 1 day
Maximum
Leases
Remaining lease term				4 years 9 months 29 days
Woonsocket, RI
Leases
Number of options to extend \| item				2
Extension term				5 years
Derecognition of a building sale-leaseback financial obligation		$ 2,390
Derecognition of a building sale-leaseback fixed asset, net of depreciation		2,357
ROU asset		1,457
Operating lease liability		$ 1,457
Riverside, CA
Leases
Extension term	61 months
Sublease term			12 months
Canada
Leases
Number of options to extend \| item				1
Extension term				5 years
Hong Kong
Leases
Extension term						2 years
ROU asset						$ 291
Operating lease liability						$ 291
Office space and distribution centers
Leases
Cash incentives from the landlord				$ 0
Lease Amendment \| Woonsocket, RI
Leases
Number of options to extend \| item		2
Extension term		5 years
Lease Amendment \| Riverside, CA
Leases
Extension term	60 months
Increase to ROU Assets due to lease modification	$ 13,583
Increase to lease liabilities due to lease modification	$ 13,583

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Components of lease expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
COMMITMENTS AND CONTINGENCIES
Operating lease cost	$ 3,553	$ 2,710
Variable lease cost	909	1,057
Less: sublease income	(1,199)	(749)
Total lease expense	$ 3,263	$ 3,018
Weighted-average remaining lease term (in years)	4 years 7 months 6 days	1 year 2 months 12 days
Weighted-average discount rate:	3.35%	5.00%
Cash paid for amounts included in the measurement of the Company's lease liabilities	$ 2,969	$ 2,911

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Maturities of operating lease liabilities (Details) $ in Thousands	Jan. 01, 2022USD ($)
Maturities of the operating lease liabilities
2022	$ 3,592
2023	3,498
2024	3,347
2025	3,284
2026	2,672
Less imputed interest	(1,226)
Total	$ 15,167

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES - Future fixed sublease receipts (Details) $ in Thousands	Jan. 01, 2022USD ($)
Future fixed sublease receipts under non-cancelable operating lease agreements
2022	$ 1,348
Total	$ 1,348

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES - Employment contracts (Details) - Summer Infant Europe Limited $ in Thousands	12 Months Ended
	Jan. 01, 2022USD ($)
COMMITMENTS AND CONTINGENCIES
Termination benefit provisions	$ 0
Minimum
COMMITMENTS AND CONTINGENCIES
Employer's contribution as a percentage of employee's annual salary	1.00%
Maximum
COMMITMENTS AND CONTINGENCIES
Employer's contribution as a percentage of employee's annual salary	7.00%

GEOGRAPHICAL INFORMATION (Detai

GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
GEOGRAPHICAL INFORMATION
Net revenue	$ 143,665	$ 155,299
Total assets	91,230	74,737
Total long-lived assets	29,997	21,259
United States
GEOGRAPHICAL INFORMATION
Net revenue	132,153	140,173
Total assets	88,836	70,689
Total long-lived assets	29,224	19,983
All Other
GEOGRAPHICAL INFORMATION
Net revenue	11,512	15,126
Total assets	2,394	4,048
Total long-lived assets	$ 773	$ 1,276

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands	Mar. 16, 2022USD ($)$ / shares	Jan. 28, 2022USD ($)
New Term Loan Agreement \| Term Loan and Security Agreement
Subsequent events
Subordinated Debt	$ 5,000,000	$ 5,000,000
Subsequent Event \| New Term Loan Agreement
Subsequent events
Loan agreement, Interest percentage		5.00%
Percentage of highest amount of borrowings outstanding than Principal outstanding under New Loan Agreement		2.50%
Subsequent Event \| New Term Loan Agreement \| Forecast [Member]
Subsequent events
Loan agreement, Interest percentage		9.00%
Subsequent Event \| New Term Loan Agreement \| BofA Agreement
Subsequent events
Minimum Credit availability	3,500	$ 3,500
Aggregate amount not to exceed	$ 1,000	$ 1,000
Fixed charge coverage ratio	1	1
Subsequent Event \| New Term Loan Agreement \| BofA Agreement \| Maximum
Subsequent events
Borrowing base of eligible accounts under loan agreements, Amount	$ 11,000	$ 11,000
Subsequent Event \| New Term Loan Agreement \| BofA Agreement \| Amazon \| Minimum
Subsequent events
Borrowing base as a percentage of eligible accounts under loan agreements	45.00%	45.00%
Subsequent Event \| New Term Loan Agreement \| BofA Agreement \| Amazon \| Maximum
Subsequent events
Borrowing base as a percentage of eligible accounts under loan agreements	55.00%	55.00%
Subsequent Event \| New Term Loan Agreement \| Term Loan and Security Agreement
Subsequent events
Subordinated Debt		$ 5,000
Period for funding of Tranches		30 days
Subsequent Event \| Merger Agreement \| BofA Agreement \| Amazon \| Minimum
Subsequent events
Borrowing base of eligible accounts under loan agreements, Amount	$ 7,000	$ 7,000
Subsequent Event \| Merger Agreement \| Kids 2
Subsequent events
Sale of Stock, Price Per Share \| $ / shares	$ 12
Subsequent Event \| Wynnefield Partners Small Cap Value, L.P. and Wynnefield Partners Small Cap Value, L.P. I \| New Term Loan Agreement
Subsequent events
Ownership percentage		35.00%