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Note 16 - Subsequent Events
12 Months Ended
Jan. 03, 2021
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 16-SUBSEQUENT EVENTS

 

Payroll Protection Program Loan

 

On May 6, 2020, the Company entered into a loan agreement with Heritage Bank (“PPP Loan”, or the "Note") for a loan of $1.2 million pursuant to the PPP under the CARES Act, as implemented by the U.S. Small Business Administration.

 

The Company applied for loan forgiveness in the fourth quarter of fiscal 2020, in accordance with the terms under the CARES Act.  On January 26, 2021, subsequent to its fiscal year end, the Company received a notice from Heritage Bank that amounts under the Note had been forgiven.  The amount forgiven of approximately $1.2 million, will be reported within Other income on the Company's Consolidated Statement of Operations for the first fiscal quarter ended April 4, 2021.

 

India Transfer Pricing notice

 

On January 27, 2021, the Company received an order from the Income Tax Department of the Ministry of Finance in India disputing the transfer pricing rate the company used for Assessment Years 2017-18, the result of which may affect later years. It is the intention of the Company to appeal such order as the rate requested by the government of India is not representative of the results of operations of the company, as well as other factors. In addition, The Company is in the process of evaluating the effect such order may have on its foreign tax provision. Such effect if any would be to the tax provision and amounts owed under taxes to foreign jurisdictions only.