What changed in this filing

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Item 1. Financial Statements

2022-05-12 compared with 2022-02-09 · 91 added, 71 removed, 369 unchanged (31% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of dollars, except for share data) January 1, 2022 October 2, 2021

(in thousands of dollars, except for share data) April 2, 2022 October 2, 2021

Current assets

34 unchanged sentences

Stockholders' equity (deficit)

Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at January 1, 2022 and October 2, 2021

Common stock, $ 0.0001 par value, 100,000,000 shares authorized, 31,975,274 and 27,205,269 shares outstanding at January 1, 2022 and October 2, 2021, respectively

Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at April 2, 2022 and October 2, 2021

Common stock, $ 0.0001 par value, 100,000,000 shares authorized, 31,990,860 and 27,205,269 shares outstanding at April 2, 2022 and October 2, 2021, respectively

Additional paid-in capital 172,191 96,170

1 unchanged sentence

Accumulated other comprehensive loss ( 44,352 ) ( 44,794 )

Treasury stock, at cost, 1,782,568 shares at January 1, 2022 and October 2, 2021

Treasury stock, at cost, 1,782,568 shares at April 2, 2022 and October 2, 2021

( 50,282 ) ( 50,282 )

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

(in thousands of dollars except for share data) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars except for share data) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Net sales $ 207,659 $ 164,698 $ 336,882 $ 295,132

3 unchanged sentences

Selling, general and administrative expenses 19,858 17,361 38,091 32,051

Operating loss $ ( 2,036 ) $ ( 222 )

Operating (loss) profit $ ( 16,701 ) $ 1,132 $ ( 18,737 ) $ 910

Interest expense ( 2,491 ) ( 2,334 ) ( 5,573 ) ( 4,264 )

14 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Net loss $ ( 12,147 ) $ ( 619 ) $ ( 16,229 ) $ ( 2,233 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021

Cash flows from operating activities

5 unchanged sentences

Equity in net loss of non-consolidated affiliate 2,015 351

Loss (gain) on disposal of fixed assets 9 ( 1 )

Loss on disposal of fixed assets 12 21

Impairment of fixed assets 1,354 —

Deferred taxes ( 9,127 ) ( 463 )

18 unchanged sentences

Proceeds from Private Placement (Note 11) 75,000 —

Cash paid for stock issuance costs ( 202 ) —

Cash paid for repurchases of common stock in connection with employee stock award exercises ( 1,503 ) ( 518 )

7 unchanged sentences

Interest paid, net of interest received $ 6,940 $ 6,119

Income tax paid (received), net of tax refunds — 25

Income tax paid, net of tax refunds 18 46

Non-cash investing and financing activities:

Changes in accounts payable for capital additions to property, plant and equipment $ 1,119 $ 409

Accrue common stock issuance fees 178 —

Right-of-use assets obtained in exchange for operating lease obligations — 107

5 unchanged sentences

Shares Par Value Additional Paid-In-Capital Shares Amount Accumulated Other Comprehensive Loss Accumulated Deficit Shares Amount Total Stockholders' Equity (Deficit)

Balance, January 1, 2022 31,975,274 $ 3 $ 171,150 — $ — $ ( 44,573 ) $ ( 37,835 ) 1,782,568 $ ( 50,282 ) $ 38,463

Private Placement (Note 11) — — ( 24 ) — — — — — — ( 24 )

Stock option activity 15,586 — 284 — — — — — — 284

Share-based compensation expense — — 781 — — — — — — 781

Net loss — — — — — — ( 12,147 ) — — ( 12,147 )

Other comprehensive income, net of tax — — — — — 221 — — — 221

Balance, April 2, 2022 31,990,860 $ 3 $ 172,191 — $ — $ ( 44,352 ) $ ( 49,982 ) 1,782,568 $ ( 50,282 ) $ 27,578

Balance, January 2, 2021 27,091,808 $ 3 $ 89,171 — $ — $ ( 58,044 ) $ ( 35,078 ) 1,782,568 $ ( 50,282 ) $ ( 54,230 )

Stock option activity 62,064 — 1,055 — — — — — — 1,055

Share-based compensation expense — — 852 — — — — — — 852

Net loss — — — — — — ( 619 ) — — ( 619 )

Other comprehensive income, net of tax — — — — — 354 — — — 354

Balance, April 3, 2021 27,153,872 $ 3 $ 91,078 — $ — $ ( 57,690 ) $ ( 35,697 ) 1,782,568 $ ( 50,282 ) $ ( 52,588 )

The accompanying notes are an integral part of these consolidated financial statements.

Six Months Ended

(in thousands of dollars, except for share data) Common Stock Convertible Preferred Stock Treasury Stock

Shares Par Value Additional Paid-In-Capital Shares Amount Accumulated Other Comprehensive Loss Accumulated Deficit Shares Amount Total Stockholders' Deficit

Balance, October 2, 2021 27,205,269 $ 3 $ 96,170 — $ — $ ( 44,794 ) $ ( 33,753 ) 1,782,568 $ ( 50,282 ) $ ( 32,656 )

5 unchanged sentences

Other comprehensive income, net of tax — — — — — 442 — — — 442

Balance, January 1, 2022 31,975,274 $ 3 $ 171,150 — $ — $ ( 44,573 ) $ ( 37,835 ) 1,782,568 $ ( 50,282 ) $ 38,463

Balance, April 2, 2022 31,990,860 $ 3 $ 172,191 — $ — $ ( 44,352 ) $ ( 49,982 ) 1,782,568 $ ( 50,282 ) $ 27,578

Balance, October 3, 2020 27,048,404 $ 3 $ 88,910 — $ — $ ( 58,397 ) $ ( 33,464 ) 1,782,568 $ ( 50,282 ) $ ( 53,230 )

4 unchanged sentences

Other comprehensive income, net of tax — — — — — 707 — — — 707

Balance, January 2, 2021 27,091,808 $ 3 $ 89,171 — $ — $ ( 58,044 ) $ ( 35,078 ) 1,782,568 $ ( 50,282 ) $ ( 54,230 )

The accompanying notes are an integral part of these consolidated financial statements.

Balance, April 3, 2021 27,153,872 $ 3 $ 91,078 — $ — $ ( 57,690 ) $ ( 35,697 ) 1,782,568 $ ( 50,282 ) $ ( 52,588 )

BLUE BIRD CORPORATION

3 unchanged sentences

Blue Bird Body Company ("BBBC"), a wholly-owned subsidiary of Blue Bird Corporation, was incorporated in 1958 and has manufactured, assembled and sold school buses to a variety of municipal, federal and commercial customers since 1927.

The majority of BBBC’s sales are made to an independent distributor network, which in turn sells buses to ultimate end users.

The majority of BBBC’s sales are made to an independent dealer network, which in turn sells buses to ultimate end users.

References in these notes to condensed consolidated financial statements to “Blue Bird,” the “Company,” “we,” “our,” or “us” relate to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise.

7 unchanged sentences

The fiscal years ending October 1, 2022 ("fiscal 2022") and ended October 2, 2021 ("fiscal 2021") consist or consisted of 52 weeks.

The first quarters of fiscal 2022 and fiscal 2021 both included 13 weeks.

The second quarters of fiscal 2022 and fiscal 2021 both included 13 weeks.

The six month periods in fiscal 2022 and 2021 both included 26 weeks.

In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made.

5 unchanged sentences

For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes as of and for the fiscal year ended October 2, 2021 as set forth in the Company's fiscal 2021 Form 10-K filed on December 15, 2021.

Towards the end of our second quarter of the fiscal year that ended October 3, 2020 ("fiscal 2020") and continuing through the first quarter of fiscal 2022, the novel coronavirus known as "COVID-19" spread throughout the world, resulting in a global pandemic.

The pandemic has significantly impacted our financial results from the second half of fiscal 2020, continuing throughout the first quarter of fiscal 2022, causing, among other matters, reduced demand for school buses and major supply chain disruptions during portions of this period of time.

Towards the end of our second quarter of the fiscal year that ended October 3, 2020 ("fiscal 2020") and continuing through the second quarter of fiscal 2022, the novel coronavirus known as "COVID-19" spread throughout the world, resulting in a global pandemic.

The pandemic has significantly impacted our financial results from the second half of fiscal 2020, continuing through the second quarter of fiscal 2022, causing, among other matters, reduced demand for school buses and major supply chain disruptions during portions of this period of time.

The continuing development and fluidity of the pandemic and its trailing impact precludes any prediction as to the ultimate severity of the adverse impacts on our business, financial condition, results of operations, and liquidity.

A prolonged economic downturn resulting from the pandemic would likely have a material adverse impact on our financial results.

Use of Estimates and Assumptions

8 unchanged sentences

The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes.

Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations.

The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations.

Actual results could differ from the estimates that the Company has used.

1 unchanged sentence

The Company’s significant accounting policies are described in the Company’s fiscal 2021 Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on December 15, 2021.

Our senior management has reviewed these significant accounting policies and related disclosures and determined that there were no significant changes in our critical accounting policies in the three months ended January 1, 2022.

Recently Issued Accounting Standards

15 unchanged sentences

However, as management does not currently forecast that the Company will have sufficient cash to fund the term loan borrowings that are expected to be outstanding under the terms of the Amended Credit Agreement upon maturity, it is expecting to refinance such borrowings prior to maturity, with such refinancing likely to occur before the July 1, 2023 LIBOR cessation date.

Therefore, it is highly likely that neither the interest rate collar nor Amended Credit Agreement will be modified to reflect the discontinuation of 3 month LIBOR effective July 1, 2023 and accordingly, the Company will not be required to decide whether or not to elect to adopt such amendments prior to or on December 31, 2022 (i.e., the last effective date for adopting the amendments).

Therefore, it is likely that neither the interest rate collar nor Amended Credit Agreement will be modified to reflect the discontinuation of 3 month LIBOR effective July 1, 2023 and accordingly, the Company will not be required to decide whether or not to elect to adopt such amendments prior to or on December 31, 2022 (i.e., the last effective date for adopting the amendments).

However, to the extent that either or both of the contracts are modified prior to December 31, 2022, the Company plans to adopt the amendments on a prospective basis by adjusting the derivative fair value and/or debt effective interest rate, as applicable, neither of which is expected to have a material impact on the consolidated financial statements.

1 unchanged sentence

The following table presents the components of inventories at the dates indicated:

(in thousands of dollars) January 1, 2022 October 2, 2021

(in thousands of dollars) April 2, 2022 October 2, 2021

Raw materials $ 118,297 $ 74,862

4 unchanged sentences

The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented:

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Balance at beginning of period $ 17,252 $ 19,707 $ 18,550 $ 21,374

4 unchanged sentences

The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years , for the periods presented:

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Balance at beginning of period $ 19,088 $ 21,732 $ 20,144 $ 22,588

6 unchanged sentences

The following table reflects our total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:

(in thousands of dollars) January 1, 2022 October 2, 2021

(in thousands of dollars) April 2, 2022 October 2, 2021

Current portion $ 3,571 $ 2,781

3 unchanged sentences

Shipping and Handling Revenues

Shipping and handling revenues were $ 3.4 million and $ 2.7 million for the three months ended January 1, 2022 and January 2, 2021, respectively.

The related cost of goods sold was $ 3.1 million and $ 2.4 million for the three months ended January 1, 2022 and January 2, 2021, respectively.

Shipping and handling revenues were $ 3.5 million and $ 3.2 million for the three months ended April 2, 2022 and April 3, 2021, respectively, and $ 6.9 million and $ 5.9 million for the six months ended April 2, 2022 and April 3, 2021, respectively.

The related cost of goods sold was $ 3.1 million and $ 2.7 million for the three months ended April 2, 2022 and April 3, 2021, respectively, and $ 6.2 million and $ 5.1 million for the six months ended April 2, 2022 and April 3, 2021, respectively.

Pension Expense

Components of net periodic pension benefit (income) expense were as follows for the periods presented:

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Interest cost $ 1,092 $ 1,057 $ 2,184 $ 2,114

11 unchanged sentences

No payments or receipts are exchanged on the interest rate collar contract unless interest rates rise above or fall below the contracted ceiling or floor rates.

During the three months ended January 1, 2022, the three month LIBOR rate fell below the established floor, which required us to make $ 0.5 million in total cash payments to the counterparty.

During the six months ended April 2, 2022, the three month LIBOR rate fell below the established floor, which required us to make $ 1.0 million in total cash payments to the counterparty.

Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting.

At January 1, 2022, the fair value of the interest rate collar contract was $ 1.2 million and is included in other current liabilities on the Condensed Consolidated Balance Sheets.

At April 2, 2022, the fair value of the interest rate collar contract was $ 0.2 million and is included in other current liabilities on the Condensed Consolidated Balance Sheets.

The fair value of the interest rate collar is a Level 2 fair value measurement, based on quoted prices of similar items in active markets.

54 unchanged sentences

Term debt consisted of the following at the dates indicated:

(in thousands of dollars) January 1, 2022 October 2, 2021

(in thousands of dollars) April 2, 2022 October 2, 2021

2023 term loan, net of deferred financing costs of $ 2,088 and $ 2,027 , respectively

5 unchanged sentences

If measured at fair value in the financial statements, the term loans would be classified as Level 2 in the fair value hierarchy.

At January 1, 2022 and October 2, 2021, $ 162.7 million and $ 166.5 million, respectively, were outstanding on the term loans.

At January 1, 2022 and October 2, 2021, the stated interest rates on the term loans were 6.0 % and 4.0 %, respectively.

At January 1, 2022 and October 2, 2021, the weighted-average annual effective interest rates for the term loans were 7.2 % and 6.0 %, respectively, which includes amortization of the deferred financing costs and interest relating to the interest rate collar, as applicable.

At January 1, 2022, $ 6.3 million of letters of credit were outstanding, which reduces the availability on the revolving line of credit.

$ 5.0 million of borrowings were outstanding on the revolving credit facility;

At April 2, 2022 and October 2, 2021, $ 159.0 million and $ 166.5 million, respectively, were outstanding on the term loans.

At April 2, 2022 and October 2, 2021, the stated interest rates on the term loans were 6.1 % and 4.0 %, respectively.

At April 2, 2022 and October 2, 2021, the weighted-average annual effective interest rates for the term loans were 7.2 % and 6.0 %, respectively, which includes amortization of the deferred financing costs and interest relating to the interest rate collar, as applicable.

At April 2, 2022, $ 6.3 million of letters of credit were outstanding, which reduces the availability on the revolving line of credit.

No borrowings were outstanding on the revolving credit facility;

therefore, the Company would have been able to borrow $ 93.7 million on the revolving line of credit.

Interest expense on all indebtedness was $ 3.1 million and $ 1.9 million for the three months ended January 1, 2022 and January 2, 2021, respectively.

Interest expense on all indebtedness was $ 2.5 million and $ 2.3 million for the three months ended April 2, 2022 and April 3, 2021, respectively, and $5.6 million and $4.3 million for the six months ended April 2, 2022 and April 3, 2021, respectively.

The schedule of remaining principal payments through maturity for the term loans is as follows:

1 unchanged sentence

Fiscal Year Principal Payments

2022 $ 11,138

Total remaining principal payments $ 159,025

2 unchanged sentences

In periods where our operating income approximates or is equal to break-even, the effective tax rates for quarter-to-date and full-year periods may not be meaningful due to discrete period items.

The effective tax rate for the three months ended January 1, 2022 was 35.6 %, which differed from the statutory federal income tax rate of 21 %.

The effective tax rate for the three months ended April 2, 2022 was 40.2 %, which differed from the statutory federal income tax rate of 21 %.

The difference is mainly due to normal tax rate items, including impacts from state taxes and federal and state tax credits (net of valuation allowances), which was partially offset by discrete period tax expense resulting from net non-deductible compensation expenses and other tax adjustments.

The effective tax rate for the three months ended January 2, 2021 was 24.7 %, which differed from the statutory federal tax rate of 21 %.

The difference is mainly due to normal tax rate items, such as the impact from state taxes.

The effective tax rate for the three months ended April 3, 2021 was 61.9 %, which differed from the statutory federal tax rate of 21 %.

The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, including impacts from state taxes.

The effective tax rate for the six months ended April 2, 2022 was 39.2 % and differed from the statutory federal tax rate of 21 %.

The effective tax rate for the six months ended April 3, 2021 was 34.8 % and differed from the statutory federal income tax rate of 21 %.

The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, including impacts from state taxes.

Guarantees, Commitments and Contingencies

At January 1, 2022, the Company had a number of product liability and other cases pending.

At April 2, 2022, the Company had a number of product liability and other cases pending.

Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse effect on the Company’s financial statements.

5 unchanged sentences

In the ordinary course of business, we may provide guarantees for certain transactions entered into by our dealers.

At January 1, 2022, we had a $ 3.0 million guarantee outstanding that relates to a guarantee of dealer indebtedness for a term loan with remaining maturity up to 1.0 year.

At April 2, 2022, we had a $ 3.0 million guarantee outstanding that relates to a guarantee of dealer indebtedness for a term loan with remaining maturity up to 0.8 years.

The $ 3.0 million represents the estimated maximum amount we would be required to pay upon default of all guaranteed indebtedness, and we believe the likelihood of required performance to be remote.

At January 1, 2022, $ 0.1 million was included in other current liabilities on our Condensed Consolidated Balance Sheets for the estimated fair value of the guarantee.

At April 2, 2022, $ 0.1 million was included in other current liabilities on our Condensed Consolidated Balance Sheets for the estimated fair value of the guarantee.

Segment Information

3 unchanged sentences

The tables below present segment net sales and gross profit for the periods presented:

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Bus (1) $ 188,484 $ 150,307 $ 300,921 $ 268,141

1 unchanged sentence

Segment net sales $ 207,659 $ 164,698 $ 336,882 $ 295,132

(1) Parts segment revenue includes $ 0.8 million for each of the three months ended January 1, 2022 and January 2, 2021 related to inter-segment sales of parts that were eliminated by the Bus segment upon consolidation.

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

(1) Parts segment revenue includes $ 1.1 million and $ 1.2 million for the three months ended April 2, 2022 and April 3, 2021, respectively, and $ 1.9 million and $ 2.0 million for the six months ended April 2, 2022 and April 3, 2021, respectively, related to inter-segment sales of parts that were eliminated by the Bus segment upon consolidation.

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Bus $ ( 3,984 ) $ 13,084 $ 5,658 $ 22,794

2 unchanged sentences

The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented:

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Segment gross profit $ 3,157 $ 18,493 $ 19,354 $ 32,961

6 unchanged sentences

Sales are attributable to geographic areas based on customer location and were as follows for the periods presented:

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

United States $ 194,245 $ 137,359 $ 294,792 $ 256,436

3 unchanged sentences

The following table disaggregates revenue by product category for the periods presented:

Three Months Ended

(in thousands of dollars) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Diesel buses $ 96,281 $ 76,115 $ 142,314 $ 135,825

7 unchanged sentences

The following table presents the loss per share computation for the periods presented:

Three Months Ended

(in thousands except for share data) January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

(in thousands except for share data) April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Net loss $ ( 12,147 ) $ ( 619 ) $ ( 16,229 ) $ ( 2,233 )

4 unchanged sentences

Diluted loss per share $ ( 0.38 ) $ ( 0.02 ) $ ( 0.54 ) $ ( 0.08 )

(1) Potentially dilutive securities representing 0.4 million and 0.8 million shares of common stock were excluded from the computation of diluted loss per share for the three months ending January 1, 2022 and January 2, 2021, respectively, as their effect would have been antidilutive.

(1) Potentially dilutive securities representing 0.3 million and 0.7 million shares of common stock were excluded from the computation of diluted loss per share for the three months ending April 2, 2022 and April 3, 2021, respectively, and potentially dilutive securities representing 0.3 million and 0.7 million shares of common stock were excluded from the computation of diluted loss per share for the six months ending April 2, 2022 and April 3, 2021, respectively, as their effect would have been antidilutive.

Accumulated Other Comprehensive Loss

The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented:

Three Months Ended

(in thousands of dollars) Defined Benefit Pension Plan Total AOCL

January 1, 2022

Three Months Ended Six Months Ended

(in thousands of dollars) Defined Benefit Pension Plan Total AOCL Defined Benefit Pension Plan Total AOCL

April 2, 2022

Beginning Balance $ ( 44,573 ) $ ( 44,573 ) $ ( 44,794 ) $ ( 44,794 )

2 unchanged sentences

Income taxes ( 70 ) ( 70 ) ( 140 ) ( 140 )

Ending Balance January 1, 2022 $ ( 44,573 ) $ ( 44,573 )

January 2, 2021

Ending Balance April 2, 2022 $ ( 44,352 ) $ ( 44,352 ) $ ( 44,352 ) $ ( 44,352 )

April 3, 2021

Beginning Balance $ ( 58,044 ) $ ( 58,044 ) $ ( 58,397 ) $ ( 58,397 )

2 unchanged sentences

Income taxes ( 112 ) ( 112 ) ( 224 ) ( 224 )

Ending Balance January 2, 2021 $ ( 58,044 ) $ ( 58,044 )

Ending Balance April 3, 2021 $ ( 57,690 ) $ ( 57,690 ) $ ( 57,690 ) $ ( 57,690 )

Stockholders' Equity (Deficit)

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements