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Use these links to rapidly review the document TABLE OF CONTENTS INDEX TO FINANCIAL STATEMENTS Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission File No. 001-33346 SUMMER INFANT, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 20-1994619 (I.R.S. Employer Identification No.) 1275 Park East Drive, Woonsocket, Rhode Island (Address of principal executive offices) 02895 (Zip Code) (401) 671-6550 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of exchange on which registered Common Stock, Par Value $0.0001 Nasdaq Capital Market Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No ý Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No ý Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No o (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 29, 2018 Or o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to

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Page 1: INDEXTOFINANCIALSTATEMENTSd18rn0p25nwr6d.cloudfront.net/CIK-0001314772/a899a14f-5...consumers who increasingly demand high-quality, long-lasting, products that make family life easier,

UsetheselinkstorapidlyreviewthedocumentTABLEOFCONTENTSINDEXTOFINANCIALSTATEMENTS

TableofContents

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549

FORM10-K

CommissionFileNo.001-33346

SUMMERINFANT,INC.(Exactnameofregistrantasspecifiedinitscharter)

Delaware(Stateorotherjurisdictionof

incorporation)

20-1994619(I.R.S.EmployerIdentificationNo.)

1275ParkEastDrive,Woonsocket,RhodeIsland(Addressofprincipalexecutiveoffices)

02895(ZipCode)

(401)671-6550(Registrant'stelephonenumber,includingareacode)

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

Titleofeachclass NameofexchangeonwhichregisteredCommonStock,ParValue

$0.0001 NasdaqCapitalMarket

SecuritiesregisteredpursuanttoSection12(g)oftheAct:None

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesoNoý

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.YesoNoý

Indicatebycheckmarkwhethertheregistrant:(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesýNoo

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).YesýNoo

(MarkOne)

ý ANNUALREPORTPURSUANTTOSECTION13or15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthefiscalyearendedDecember29,2018

Or

o TRANSITIONREPORTPURSUANTTOSECTION13or15(d)OFTHESECURITIESEXCHANGEACTOF1934

Forthetransitionperiodfromto

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IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(§229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,tothebestofregistrant'sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.o

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerasmallerreportingcompany,oremerginggrowthcompany.Seethedefinitionsof"largeacceleratedfiler,""acceleratedfiler,""smallerreportingcompany,"and"emerginggrowthcompany"inRule12b-2oftheExchangeAct.

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.o

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).YesoNoý

Theaggregatemarketvalueoftheregistrant'svotingandnon-votingcommonequityheldbynon-affiliatesasofJune30,2018,was$11.8million.Forpurposesofthiscomputation,allofficers,directors,and10%beneficialownersoftheregistrantaredeemedtobeaffiliates.Suchdeterminationshouldnotbedeemedtobeanadmissionthatsuchofficers,directors,or10%beneficialownersare,infact,affiliatesoftheregistrant.

Thenumberofsharesissuedandoutstandingoftheregistrant'scommonstockasofFebruary19,2019was18,629,737(excludingunvestedrestrictedsharesthathavebeenissuedtoemployees).

DOCUMENTSINCORPORATEDBYREFERENCE

Portionsoftheregistrant'sProxyStatementforits2019AnnualMeetingofStockholdersareincorporatedbyreferenceintoPartIIIofthisAnnualReportonForm10-K.

Largeacceleratedfilero Acceleratedfilero Non-acceleratedfilero SmallerreportingcompanyýEmerginggrowthcompanyo

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INDEXTOFORM10-KFORTHEFISCALYEARENDEDDECEMBER29,2018

2

PAGE PARTI

ITEM1. Business 3ITEM1A. RiskFactors 9ITEM1B. UnresolvedStaffComments 16ITEM2. Properties 16ITEM3. LegalProceedings 16ITEM4. MineSafetyDisclosures 16

PARTII ITEM5. MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquity

Securities 17

ITEM6. SelectedFinancialData 17ITEM7. Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations 17ITEM7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 26ITEM8. FinancialStatementsandSupplementaryData 26ITEM9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 26ITEM9A. ControlsandProcedures 26ITEM9B. OtherInformation 27

PARTIII ITEM10. Directors,ExecutiveOfficersandCorporateGovernance 28ITEM11. ExecutiveCompensation 28ITEM12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 28ITEM13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 28ITEM14. PrincipalAccountingFeesandServices 28

PARTIV ITEM15. ExhibitsandFinancialStatementSchedules 29ITEM16. Form10-KSummary 29SIGNATURES 33

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PARTI

Whenusedinthisreport,theterms"Summer,"the"Company,""we,""us,"and"our"meanSummerInfant,Inc.anditssubsidiaries.NotethatalldollaramountsinPartIareinthousandsofU.S.dollarsunlessotherwisenoted.

Item1.Business

Overview

Weareaninfantandjuvenileproductscompanyoriginallyfoundedin1985andhavepubliclytradedontheNasdaqStockMarketsince2007underthesymbol"SUMR."Wearearecognizedauthorityinthejuvenileindustry,providingparentsandcaregiversafullrangeofinnovative,high-quality,andhigh-valueproductstocareforbabiesandtoddlers.Weseektoimprovethequalityoflifeofparents,caregivers,andbabiesthroughourproductofferings,whileatthesametimemaximizingshareholdervalueoverthelongterm.

Weoperateinoneprincipalindustrysegmentacrossgeographicallydiversemarketplaces,sellingourproductsgloballytolarge,nationalretailersaswellasindependentretailers,onourpartner'swebsites,andourowndirecttoconsumerwebsites.InNorthAmerica,ourcustomersincludeAmazon.com,Wal-Mart,Target,BuyBuyBaby,HomeDepot,andLowe's.OurlargestEuropean-basedcustomersareArgosandAmazon.Wealsosellthroughinternationaldistributors,representatives,andtoselectinternationalretailcustomersingeographiclocationswherewedonothaveadirectsalespresence.

Inearly2019,weannouncedournewbrandandproductstrategy,andwillbedoingbusinessunderthenameSUMRBrands.Webelievethis"familyofbrands"approachbetterreflectsourstrategicvisionandevolvingconsumerexpectations.Asdescribedbelowin"SalesandMarketing.",wewillleverageourbrands,Summer™,SwaddleMe®andbornfree®,tocovermultipleconsumerdemographics,retailersandchannels.

StrategicPriorities

Ourgoalistobecomeagloballyrecognizedleaderinthejuvenileindustrybycreatingproductsthatfamilieseverywhereneed,want,loveanddependon.Wewillcontinuetosupportaroadmapforsustainablegrowthin2019andbeyondbydevelopingandlaunchingnew,innovativeproductswhilesustainingourcorerangeofproducts.Additionally,wewillcontinuetoexpandourreachthroughaportfolioofbrands,strategicallypositionedtoappealtomultipleconsumerdemographics,andstrengthenourkeycustomerrelationships.Ourmanagementteamwillcontinuetoexecuteonthekeystrategicprioritiesthatwebelievepositionustocaptializeonmarkettrendsandwillfuelourfuturegrowth:

• Growththroughproduct.Wecontinuouslyseektocreatedifferentiated,innovativeproductsthatappealtoconsumerswhoincreasinglydemandhigh-quality,long-lasting,productsthatmakefamilylifeeasier,safer,andmorefun.Weprideourselvesasleadersofinnovationwithinthejuvenileproductsindustry.Westrivetodeliverinnovationinvariouswaysbaseduponproductcategory,includingforexamplesimpledesigninnovationinpotties,innovativeconveniencefeaturesinbathandstrollers,newtechnologyinourbabyvideomonitors,andinnovative,safe-sleepsolutionswithinourSwaddleMe®brandedproductline.OurnewBabyPixel™lineofmonitorshavebeenexpandedintoafulllinewithnewmodelsexpectedtocometomarketin2019.In2019,wewillalsoexpecttoexpandonthesuccessofMyBathSeat™,theonlyoneofitskindinthemarket,withnewproductofferingsintheline.

• Growththroughbrand.Bydevelopingastrategicapproachtoourconsumerbrandsin2018,webelievewearenowwell-positionedtoexpandourappealtoawidevarietyofconsumer

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demographics.In2019,weannouncedourfamilyofbrandsapproachandwillrelaunchthebornfree®brand,introducinganewstroller,babycarrier,bouncer,entertainer,andtwoplayardstotheU.S.market.Thisbrandwillinitiallybeanonline-onlybrand,andispositionedtoserveahigher-incomedemographicwhilestillremainingaccessible.Wecontinuetotakeadigital-firstapproachtomarketingcommunicationsandbranddevelopment.Byimplementingonlinemarketing,marketingautomation,socialpublishing/listening,anddigitalanalyticstools,webelieveweareabletocommunicatemoreeffectivelywithconsumersofourproductsandunderstandwhatisimportanttothem.Inaddition,weexpecttocontinuetofocusononlinemerchandisingtodriveconversionratesbothin-storeandonline,asamajorityofconsumersresearchproductsonlinebeforebuying—eitheratretailorthroughe-commerce.

• Growththroughdistribution.WehavestrongpartnershipswithoursuppliersintheU.S.andAsia.Webelievethatourabilitytodevelopproductsthatareconsumerpreferredandcost-efficientgivesusacompetitiveadvantageinmeetingourcustomerdemands.Wehavelong-standingrelationshipswithourbrickandmortarande-commerceretailcustomersintheU.S.,andwillcontinuetofocusonstrengtheningthemtoincreaseourpresenceinstoresandonline.Inaddition,wecontinuetodevelopourrelationshipsoutsidetheU.S.toexpandourbusinessinternationally.WeexpecttofocusoureffortsongrowingourEuropean,CanadianandAsianmarketpresencebyexpandingourcustomerbaseandestablishingnewdistributorrelationships.Weseeourinternationalbusinessashavingsignificantpotentialforfuturegrowthandexpansion.

• Continuousinfrastructureimprovement.Aswecontinuetorefineouroperatingmodel,weexpectourkeyareasoffocusfor2019toincludeprocessoptimization,worldwidelogisticsimprovements,andtalentdevelopment.ExpectedinitiativesincludeSKUrationalization,increasedwarehouseefficiency,increaseddirectimportbusinessasweemphasizecoregrowthcategories,andevaluationofdropshippartnershipsgoingforward.Wealsoexpecttobuildonourongingeffortstoimproveouranalyticandforecastingcapabilities,productdevelopmentprocess,andmanagementofworkingcapitalin2019.

Products

Wecurrentlymarketover1,100productsinseveralproductcategoriesincludingmonitoring,safety,nursery,andbabygear.Wemarketourcoreproducts,underourSummer™,SwaddleMe®,andbornfree®brandnames.

Anchorproductsinourproductcategoriesincludethefollowing:

Safety

Oursafetylineencompassesgates,bedrails,babyproofing,potties,bath,positioners,boosters,andinfanthealth.WeareaNorthAmericanmarketleaderinthegatecategory,withaproductrangeofover30gates.Ourlineofgatesofferversatilitythatcoversuseinhome,easeofinstallation,andaestheticallypleasingdesigns.In2018,wedevelopedandplacedwithalargeretaileranewlineofgatesthatareontrendwithhomedécor.In2019,weexpecttocontinuewithastrategyofmarrying

4

Safety Nursery Monitoring BabyGearGates SpecialtyBlankets Video StrollersBath TravelAccessories Audio BassinetsPotties Soothers Prenatal HighChairsBoosters SleepAides PlayardsPositioners

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high-qualitysafetygateswithhomedécor,andcontinuetoreceivepositivefeedbackfromretailersasweexpandourportfolio.

OurMySize™Pottycontinuestobeabestsellerformajorretailersnationwide.Tocapitalizeonitssuccess,werecentlylaunchedthefirstofanewrangeofMySize™PottyproductcalledtheMySize™PottyTrain&Transition,thathasbeenwell-receivedbyretailersandconsumeralike.In2019,weexpecttocontinuetoofferconsumersmoreoptionsinthisproductlineandtoobtainincrementalplacementswithourretailcustomers.Weareamarketshareleaderinpotties,withadditionalofferingsthatsupportdifferentconsumerneedsandpricepointsinregardstopottytraining.

Wefirstenteredtheinfantbathingcategoryin2002,andwehavecontinuedtocreateinnovativeandsafesolutionsforbathing.Ourinnovativebathproduct,MyBathSeat™,istheonlyoneofitskindinthemarketandcontinuestobeextremelypopularwithconsumersandpickedupincrementalplacementsin2018.New,innovativeofferingsthatexpandonthesuccessofthiscategoryarecurrentlyindevelopmentandareexpectedtobeavailablein2019.Wehaveanestablishedroadmapfordevelopingproductsinthefourphasesofbathing(sponges,bathers,bathtubs,andbathseats)toaddressconsumerneedsasbabygrows,andtocreateloyaltytoourbrand.

Nursery

OurnurserylineincludesourcorebrandofSwaddleMe®specialtyblanketsaswellasourexpandedlineofsafesleepproductssuchassleepaidesandsoothers.Acquiredin2008,SwaddleMe®continuestobeatrustedbrandsynonymouswithinfantsafesleep.Offeringsin2019areexpectedtoincludeanew"luxe"lineofferingupgradesandinnovationssuchasextrasoftfabrics,easy-changetechnology,anddifferentoptionsforbabybodyposition.

Monitoring

Ourmonitorswerefirstintroducedin2001andaredistinguishedbyeaseofuse,andinnovativefeatures.Currently,weofferaudioandvideomonitors,andanewwearableaudiomonitormarketedundertheSummer™brand.Ourmonitorshaveledthewayininnovationwithinthecategoryandfeaturehighqualitycomponents,intendedtofulfillthedesireforconsumerstoconnectwithbabyatanytimeorplace.TheBabyPixelmonitorwaslaunchedinNorthAmericain2018,andweplantobuildonitsearlysuccess.In2019,weexpecttogainincrementalshelfspacewithadditional,newinnovativemonitors,includinganexpandedlineofBabyPixel™Monitorswithpatent-pendingnewtechnology,SleepZone™VirtualBoundary.

Baby Gear

Our3Dlite®ConvenienceStrollercontinuestobeafavoriteamongparents.Wehavecontinuedtoexpandour3Dlineoflightweight,affordable,featurerichstrollers.In2018,weintroducednewcompactandlightweightofferings,includingthe3Dpac™,whichtakesthefeaturesofafull-sizestroller,andpacksitintoacompactpackage,andthelightweight3Dmini™,offeringconvenienceforparentson-the-go.The3Dlite®+,anewlightweightconveniencestrollerwithrefinedfashionandnewfeatures,isexpectedtolaunchinthefirstquarterof2019.

OurPop'nPlay™PortablePlayard,firstintroducedinfiscal2014,hasprovedtobepopularwithparentsandcaregiversalike,andwehavesinceexpandedtheplatformtoincludeaportablebooster,highchairandentertainerunderthesub-brandPOP™(portableon-the-goproducts).In2018,weexpandedandrefreshedtheseproductstoofferthematavarietyofpricepointsandretailers.WeexpecttolaunchanewfashionlineofPOPproductsinthesecondquarterof2019forthespring/summerseason,whenparentsarelookingforsolutionsthatallowthemtobeoutandaboutwiththeirchildren.

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ProductDevelopmentandDesign

Athoroughunderstandingofourconsumer,thecompetition,andourcustomerretailpartnersdrivesourproductdevelopment.Developingandmarketinginnovativesolutionsareacriticalelementofourstrategy.Westrivetoproduceproprietaryproductsthatofferdistinctivebenefits,arevisuallyappealing,andprovidesafe,thoughtfulsolutions.

Weconductmarketanalysisinourgeographicregionsofpriority,evaluateidentifiedopportunities,anddesignproductsaccordingly.ThemajorityofourproductsarecurrentlydesignedatourRhodeIslandheadquarters.WealsohavedevelopmenteffortsinourChinaandourUnitedKingdomoffices,andwhenappropriate,wealsopartnerwithmanufacturersinAsiaonproductdevelopment.Inadditiontonewproductdevelopment,wecontinuouslylookforwaystoimproveuponexistingproductsbasedonconsumerinsightswithastrongfocusontheend-userexperience.

SuppliersandManufacturing

ThemajorityofourproductsaremanufacturedinAsia(primarilyChina).WealsousemanufacturersintheUnitedStatesandMexicoforcertaininjection-moldedproducts,includingbathtubs,pottyseatsandboosterseats.

Wearenotdependentonanyonesupplierasweusemanydifferentmanufacturersandpresentlyownthetoolingandmoldsusedforourproducts.OurHongKongsubsidiaryprovidesuswithanAsiansourcingpresenceandtheabilitytooverseequality,electronicengineeringandotherissuesthatmayariseduringproduction.Generally,webuyfinishedgoodsfrommanufacturers,andthusdonotdirectlyprocurerawmaterialsforproductmanufacturing.Historically,wehavenotexperiencedanysignificantdisruptionofsupplyasaresultofrawmaterialshortagesorothermanufacturingfactors,butthereisthepossibilitythatshortagescouldoccurinthefuturebasedonavarietyoffactorsbeyondourcontrol.

Asian-madegoodsareshippedonthewatertoourwarehouses,whichtypicallytakesuptofourweeks.Wealsoutilizeadirectimportprogram,toreducecostsandshippingtimetocertaincustomers.WemaintaininventoryinwarehouseslocatedintheUnitedStates,Canada,andtheUnitedKingdomaswellasathird-partylogisticswarehouseinChina.Mostofourcustomerspickuptheirgoodsatourwarehouses.Wealsodelivershipmentsdirecttocustomersforsalesfromourownwebsiteandourconsumerreplacementsprogramaswellasforothersmallerretailpartnersthatrequestsucharrangements.

SalesandMarketing

Ourproductsarelargelymarketedandsoldthroughourowndirectglobalsalesforce.Wehavealsoestablishedastrongnetworkofindependentmanufacturers'representativesanddistributorstoprovidesalesandcustomerservicesupportforretailcustomersinNorthAmericanandinternationally.Beginningin2018,weimplementedaplantosupportgrowthofdirect-to-consumersales,whichwebelievewillalsoincreaseoverallbrandawareness.

Salesarerecognizedupontransferoftitletoourcustomersandaremadeutilizingstandardcredittermsofapproximately60days.Wegenerallyacceptreturnsonlyfordefectivemerchandise.

Marketing,promotionandconsumerengagementarekeyelementsinthejuvenileproductsindustry.Historically,asignificantpercentageofourpromotionalspendinghasbeenstructuredincoordinationwithourlargeretailpartners.In2019,wewillcontinuetofocusourmarketingeffortsongrowingbrandawarenessamongourconsumerdemographic,optimizingmarketinginvestment,andexecutinganintegratedmarketingstrategy.Webelieveanimportantcomponentofourfuturegrowthisbasedonspeakingtotherightcustomer,withtherightcontent,ontherightchannel,attherighttime.Wehaveimplementedonlinemarketing,socialmedia,anddigitalanalyticstools,whichallowusto

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bettermeasuretheperformanceofourmarketingactivities,learnfromourconsumers,andreceivevaluableinsightsintoindustryandcompetitoractivities.

Aspartofthiseffort,inearly2019,weannouncedournewbrandandproductstrategytoadapttoachangingretailandconsumerlandscape.WewillbedoingbusinessunderthenameSUMRBrands,withourportfoliooftheSummer™,SwaddleMe®andbornfree®brandstocovermultipleconsumerdemographics,retailersandchannels.

Customerserviceisacriticalcomponentofourmarketingstrategy.Wemaintainaninternalcustomerservicedepartmentthatrespondstocustomerinquiries,investigatesandresolvesissues,andisavailabletoassistcustomersandconsumersduringbusinesshours.Infiscal2018,wemadeinvestmentsinourconsumercareonlinethroughtheimplementationofdigitaltoolsthatallowustodelivermoretimelyresponsestoeveryconversation,reactionorquestion.In2019,wewillfocusonfurtherimprovingcustomerservicethroughavarietyoftoolsandtraining.

Competition

Thejuvenileproductindustryhasmanyparticipants,noneofwhichhasdominantmarketshare,thoughcertaincompaniesmayhavedisproportionatestrengthinspecificproductcategories.Wecompetewithanumberofdifferentcompaniesinavarietyofcategories,althoughthereisnosinglecompanythatcompeteswithusacrossallofourproductcategories.OurlargestdirectcompetitorsareMunchkin®,GB®(GoodbabyInternationalHoldings,Ltd.),Graco®(asubsidiaryofNewellRubbermaid),Chicco®,Fisher-Price®(asubsidiaryofMattel,Inc.),Aden&Anais®,Motorola®(alicensedbrandofBinatoneCommunicationsGroup),andVtech®.

Theprimarymethodofcompetitionintheindustryconsistsofbrandpositioning,productinnovation,quality,price,andtimelydistribution.Ourcompetitivestrengthsincludeourabilitytodevelopinnovativenewproducts,speedtomarket,ourrelationshipswithmajorretailers,andthequalityandpricingofourproducts.

IntellectualProperty

Werelyonacombinationofpatents,licensesandtradesecretstoprotectourintellectualproperty.OurcurrentU.S.patentsincludevariousdesignfeaturesrelatedtosafetygates,bouncers,bathers,andmonitorswithseveralotherpatentsunderreviewbytheUnitedStatesPatentandTrademarkOffice(USPTO).Theissuedpatentsexpireatvarioustimesdependingonthedateofissuanceduringthenext17years.Incertaincircumstances,wewillpartnerwiththirdpartiestodevelopproprietaryproducts,and,whereappropriate,wehavelicenseagreementsrelatedtotheuseofthird-partytechnologyinourproducts.

Customers

SalestotheCompany'stopsevencustomerstogethercomprisedapproximately77%ofoursalesinfiscal2018and77%ofoursalesinfiscal2017.Ofthesecustomers,threegeneratedmorethan10%ofsalesforfiscal2018:Amazon.com(23%),Walmart(23%),andTarget(16%).Infiscal2017,fourcustomersgeneratedmorethan10%ofsales:Amazon.com(25%),BabiesRUs/ToysRUs(17%),Walmart(16%),andTarget(11%).

Wehavenolong-termcontractswiththesecustomers,andasaresult,oursuccessdependsheavilyonourcustomers'willingnesstopurchaseandprovideshelfspaceforourproducts.

Seasonality

Wedoexperiencesomevariationsinseasonaldemandforourproductsinoursecondandthirdquartersofeachyear.However,weexpecttogeneratehigherthanaveragevolumesfortheinitial

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shipmentofnewproductswhichtypicallyincludesenoughinventorytofilleachstoreplusadditionalamountstobekeptatthecustomer'sdistributioncenter.Thetimingoftheseinitialshipmentsvariesbycustomerdependingonwhentheyfinalizestorelayoutsfortheupcomingyearandwhetherthereareanymid-yearproductintroductions.

RegulatoryMatters

Eachofourproductsisdesignedtocomplywithallapplicablemandatoryandvoluntarysafetystandards.IntheUnitedStates,thesesafetystandardsarepromulgatedbyfederal,stateandindependentagenciessuchastheUSConsumerProductSafetyCommission,ASTM,theFederalCommunicationsCommission,theFoodandDrugAdministration,theFederalTradeCommission,andvariousstatesAttorneyGeneralsandstateregulatoryagencies.AllofourproductsareindependentlytestedbythirdpartylaboratoriesacceptedbytheConsumerProductSafetyCommissiontoverifycompliancetoapplicablesafetystandards.Asimilarapproachisusedtodesignandtestproductssoldinternationally.

Insurance

Wecarryproductliabilityinsurancethatprovidesuswith$15millioncoveragewithaminimaldeductible.Weconsultwithourinsurerstoascertainappropriateliabilitycoverageforourproductmix.Webelieveourcurrentcoverageisadequateforourexistingbusinessandwillcontinuetoevaluateourcoverageinthefutureinlinewithourexpandingsalesandproductbreadth.

Employees

AsofDecember29,2018,wehad191employees,187ofwhomwerefulltimeemployeesand88ofwhomworkedinourRhodeIslandheadquarters.

AvailableInformation

TheCompanyisincorporatedunderthelawsoftheStateofDelaware.Ourprincipalexecutiveofficesarelocatedat1275ParkEastDrive,Woonsocket,RhodeIsland02895,andourtelephonenumberis(401)6716550.Wemaintainourcorporatewebsiteatwww.summerinfant.com.

WefilereportswiththeSecuritiesandExchangeCommission("SEC"),includinganannualreportonForm10-K,quarterlyreportsonForm10-Q,currentreportsonForm8-K,andamendmentstothosereportsthatwefilewith,orfurnishto,theSEC.TheSECmaintainsanInternetwebsite,www.sec.gov,thatcontainsreports,proxyandinformationstatementsandotherinformationthatwefileelectronicallywiththeSEC.Ourwebsitealsoincludescorporategovernanceinformation,includingourCodeofEthicsandourBoardcommitteecharters.Theinformationcontainedonourwebsitedoesnotconstituteapartofthisreport.

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Item1A.RiskFactors

Ifanyoftheeventsorcircumstancesdescribedinthefollowingrisksactuallyoccur,ourbusiness,financialconditionorresultsofoperationscouldbemateriallyadverselyaffectedandthetradingpriceofourcommonstockcoulddecline.Theriskfactorslistedbelowarenotexhaustive.Weoperateinaverycompetitiveandrapidlychangingenvironmentinwhichnewfactorsmayemergefromtimetotime,anditisnotpossibleformanagementtopredicttheimpactofallofthesefactorsonourbusiness,financialconditionorresultsofoperations.

Increased tariffs, additional tariffs or other import or export taxes on our products could have an adverse impact on the cost of our product, the demand for ourproducts and our business.

TheUnitedStatesandothercountrieshaveleviedtariffsandtaxesoncertaingoods,includingproductsimportedintotheUnitedStatesfromChina.ThemajorityofourproductsaremanufacturedoutsidetheUnitedStates,mainlyinChina,andimportedforsaleintheUnitedStates.TariffsenactedinSeptember2018impactedourfourthquarter2018resultsandcausedmarketdisruptionamongstourmajorcustomers.WhilewetookactionstomitigatetheimpactofthesetariffsthroughpriceincreasesandexploringalternativesourcesofsupplyoutsideofChina,ifexistingtariffsareincreasedorifadditionaltariffsortraderestrictionsareimplementedbytheUnitedStates,Chinaorothercountries,thecostofourproductsmanufacturedinChinaorothercountriesandimportedintotheUnitedStateswouldincreasesubstantially,whichwouldforceustoincreasethepricesoftheaffectedproducts.Thereisnoassurancethatwewouldbesuccessfulinmitigatingtheimpactofincreasedoradditionaltariffs,andanyincreaseinpricingtoallowustomaintainreasonablemarginscouldadverselyaffectthedemandforthoseproductsandmayresultindecreasedprofitabilityandlowersales,therebyhavinganadverseeffectonourbusiness,resultsofoperationsandfinancialcondition.

The concentration of our business with certain retail customers means that changes in the purchasing policies of these customers could have a significantimpact on our business and operating results.

Infiscal2018,salestoourtopsevencustomers,includingAmazon.com,Wal-Mart,andTarget,accountedforapproximately77%ofourtotalsales.Wedonothavelong-termcommitmentsorcontractswithanyofourretailcustomers,andretailersmakepurchasesbydeliveringone-timepurchaseorders.Assuch,anycustomercouldpotentiallyrenegotiatethetermsofourbusinessrelationshipatanytime,whichmightincludereducingoverallpurchasesofourproducts,alteringpricing,reducingthenumberandvarietyofourproductscarriedandtheshelfspaceallottedforourproducts,andreducingcooperativeadvertisingormarketingsupport.Becauseofthecurrentconcentrationofourbusinesswiththeseretailcustomers,achangeinourrelationshipwithanyofthesecustomerscouldadverselyaffectourresultsofoperationsandfinancialcondition.

Liquidity problems or bankruptcy of our key retail customers could have a significant adverse effect on our business, financial condition, and results ofoperations.

Asignificantportionofourrevenueiswithkeyretailcustomers.Duetothecurrentpressureontraditionalbrick-and-mortarretailers,thereisincreasedriskthatretailersmaysuffermateriallossesorfileforapetitionforbankruptcy.Salestoretailcustomersaretypicallymadeoncreditwithoutcollateral.Ifacustomerfilesforbankruptcy,ourpre-petitionaccountsreceivablemaynotberealizedandpost-petitionordersreducedorcancelled.Thebankruptcylawsmayseverelylimitourabilitytocollectpre-petitionaccountsreceivable.Ifkeycustomers,ceasedoingbusinessasaresultofbankruptcy,orsignificantlyreducethenumberofstoresoperatedandthereforetheamountofproductsorderedfromus,itcouldhaveanadverseeffectonourbusiness,financialcondition,andresultsofoperations,includingourabilitytoaccessavailabilityunderourcreditfacility.

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The intense competition in our market could reduce our net sales and profitability.

Weoperateinahighlycompetitivemarketandcompetewithseverallargedomesticandforeigncompaniesandwithother,smallerproducersofinfantandjuvenileproducts.Manyofourcompetitorshavelongeroperatinghistories,greaterbrandrecognition,andgreaterfinancial,technical,marketingandotherresourcesthanus,orhavegreatere-commerceandsocialmediapresencethanus.Weexperiencepricecompetitionforourproductsandcompetitionforshelfspaceatretailers,allofwhichmayincreaseinthefuture.Ifwecannotadjusttochangesinourmarketandcompetesuccessfullyinthefuture,ournetsalesandprofitabilitymaylikelydecline.

Our ability to grow and compete will be harmed if we do not successfully satisfy consumer preferences, enhance existing products, develop and introduce newproducts, successfully market and achieve acceptance of those products.

Ourbusinessandoperatingresultsdependlargelyuponprovidingourcustomersproductsthatappealtotheenduser.Consumerpreferences,particularlyamongparentswhomareoftentheendpurchasersofourproducts,areconstantlychanging.Oursuccesslargelydependsonourabilitytoidentifyemergingtrendsintheinfantandjuvenilehealth,safetyandwellnessmarketplace,andtodesignqualityproductsthataddressconsumerpreferencesandprovesafeandcosteffective.

Ourabilitytomaintainandincreaseourcurrentmarketsharewilldependuponourabilitytoanticipatechangesinconsumerpreferencesandsatisfythesepreferences,enhanceexistingproducts,developandintroducenewproducts,growexistingdistributionchannelsandseekadditionaldistributionchannelsfortheseproducts,successfullymarkettheproductsand,ultimately,achieveconsumeracceptanceoftheseproducts.Afailuretoachievemarketacceptanceofourproductscouldharmourabilitytogrowourbusiness.

An inability to develop and introduce planned new products or product lines in a timely and cost-effective manner may damage our business.

Indevelopingnewproductsandproductlines,wehaveanticipateddatesforassociatedproductintroductions.Whenwestatethatwewillintroduce,oranticipateintroducing,aparticularproductorproductlineatacertaintimeinthefuture,thoseexpectationsarebasedoncompletingtheassociateddevelopment,implementation,marketingwork,andmanufacturinginaccordancewithourcurrentlyanticipateddevelopmentschedule.Theriskisalsoheightenedbythesophisticationofcertainproductswearedesigning,intermsofcombiningdigitalandanalogtechnologies,utilizingdigitalmediatoagreaterdegree,andprovidinggreaterinnovationandproductdifferentiation.Unforeseendelaysordifficultiesinthedevelopmentprocess,significantincreasesintheplannedcostofdevelopment,changesinanticipatedconsumerdemandforourproducts,anddelaysinthemanufacturingprocessmaycausetheintroductiondateforproductstobelaterthananticipatedor,insomesituations,maycauseaproductintroductiontobediscontinued.Ifweareunabletomanufacture,sourceandshipnewproductsinatimelymannerandonacosteffectivebasis,itcouldhaveanadverseeffectonourbusinessandoperatingresults.

If we do not maintain sufficient inventory levels or if we are unable to deliver our products to our customers in sufficient quantities, or on a timely basis, or ifour inventory levels are too high, our operating results will be adversely affected.

Ourbusinessplacesstringentdemandsonourinventoryforecastingandproductionplanningprocesses.Thisinventorymanagementapproachmaybeparticularlychallengingwhencombinedwith"just-in-time"inventorymanagementsystemscommonlyusedbyretailerstominimizetheirinventorylevels.Ifwefailtomeettightshippingschedules,wecoulddamageourrelationshipswithretailers,increaseourshippingcostsorcausesalesopportunitiestobedelayedorlost.Todeliverour

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merchandiseonatimelybasis,weneedtomaintainadequateinventorylevelsofthedesiredproducts.Thisapproachrequiresustobegintoplaceordersforcomponentsforcertainproductsuptoayearinadvance,andweprocureasignificantamountofproductmonthsinadvanceofcertaintimeperiods.Atthetimeweplacefactoryorders,wemaynothavefirmordersfromretailersoracompleteunderstandingofwhatconsumerdemandforthoseproductswillbe.Ifourinventoryforecastingprocessesarenotaccurate,itmayresultininventorylevelsinexcessofthelevelsforecastedandwemaynothavesufficientspaceatourmaindistributioncentertoaccommodateexcessinventory.Asaresult,wecouldberequiredtorecordinventorywrite-downsforexcessandobsoleteinventory,and/orincuradditionalexpenseforstorageofexcessinventory,whichwouldadverselyaffectouroperatingresults.Inaddition,ifourprocessesresultinourinventorylevelsbeingtoolowtomeetcustomerdemand,wemaylosesales,whichcouldadverselyaffectouroperatingresults.

Covenants in our credit facility and term loan agreement may affect our liquidity or limit our ability to complete acquisitions, incur debt, make investments, sellassets, merge or complete other significant transactions. Deviations from expected results of operations and expected cash requirements could result in afailure to meet financial covenants, which would adversely affect our financial condition and results of operations.

Werelyonourcreditfacilityandcashgeneratedfromouroperationstomeetourworkingcapitalneeds.Ourcreditfacilityandtermloanagreementincludecertaincovenantsthatplacelimitationsonorrestrictanumberofouractivities,includingourabilitytoincuradditionaldebt,createliensonourassetsormakeguarantees,makecertaininvestmentsorloans,paydividendsormakedistributions,disposeoforsellassets,orenterintoamergerorsimilartransaction.

Theserestrictivecovenantsmaylimitourabilitytoengageinactsthatmaybeinourbestlong-terminterests.Inaddition,ifwedonotmaintainaspecifiedlevelofavailabilityunderourcreditfacilityandtermloanagreement,wewillberequiredtocomplywithafixedchargecoverageratiofinancialcovenant.Anysignificantdeviationinactualresultsfromourexpectedresultsofoperations,orinthetimingofmaterialexpendituresfromcurrentestimates,anysignificantbusinessorproductacquisitions,orothersignificantunanticipatedexpensescouldresultinusnotmeetingapplicablefinancialcovenants.

Non-compliancewiththecovenantsinourcreditfacilityandtermloanagreementcouldresultinusbeingunabletoutilizeborrowingsunderourcreditfacility,acircumstancewhichpotentiallycouldoccurwhenoperatingshortfallswouldmostrequiresupplementaryborrowingstoenableustocontinuetofundouroperations.Ifaccesstoourcreditfacilityislimitedorterminated,ourliquiditywouldbeconstrained,affectingouroperationsandgrowthprospects,andwewouldneedtoseekamendmentstoourcreditfacilityorobtainadditionalequityordebtfinancingorfacedefault.Thereisnoassurancethatsuchfinancingwouldbeavailableonacceptabletermsoratall.Furthermore,anyequityfinancingmayresultindilutiontoexistingstockholdersandanydebtfinancingmayincluderestrictivecovenantsthatcouldimpedeourabilitytoeffectivelyoperateandgrowourbusinessinthefuture.

Because we rely on foreign suppliers and we sell our products in foreign markets, we are subject to numerous risks associated with international business thatcould increase our costs or disrupt the supply of our products, resulting in a negative impact on our business and financial condition.

WhilethemajorityofoursalescontinuetobeinNorthAmerica,weoperatefacilitiesandsellproductsincountriesoutsidetheUnitedStates.Additionally,aswediscussbelow,weutilizethird-partysuppliersandmanufacturerslocatedinAsiatoproduceamajorityofourproducts.Thesesalesandmanufacturingoperations,includingoperationsinemergingmarketsthatwehaveentered,mayenter,

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ormayincreaseourpresencein,aresubjecttotherisksassociatedwithinternationaloperations,including:

• economicandpoliticalinstability;

• restrictiveactionsbyforeigngovernments;

• greaterdifficultyenforcingintellectualpropertyrightsandweakerlawsprotectingintellectualpropertyrights;

• traderestrictions;

• workstoppagesorotherchangesinlaborconditions;

• reductioninbusinessactivityinsomepartsoftheworld;

• currencyfluctuationsanddevaluations;

• changesinimportdutiesorimportorexportrestrictions;

• compliancewithanti-briberyandanti-corruptionregulations;

• untimelyshippingofproductandunloadingofproductthroughWestCoastports,aswellasuntimelytruckdeliverytoourwarehouses;

• complicationsincomplyingwiththelawsandpoliciesoftheUnitedStatesaffectingtheimportationofgoods,includingduties,quotas,andtaxes;

• limitationsonrepatriationofforeignearnings;and

• complicationsincomplyingwithforeigntaxlaws.

FuturechangestotheU.S.tariffandimport/exportregulationscouldhaveanegativeeffectonourresultsofoperations.DuetooursignificantmanufacturingpresenceinChina,fromwhichweimportamajorityofourproducts,theoccurrenceofsuchtradereformsorrestrictionscouldimpactourbusinessinanadversemanner.

Asaresultofourinternationaloperations,wearesubjecttotheU.S.ForeignCorruptPracticesActandsimilarforeignanti-corruptionandanti-briberylaws.Recentyearshaveseenasubstantialincreaseintheglobalenforcementofanti-corruptionlaws,withmorefrequentvoluntaryself-disclosuresbycompanies,aggressiveinvestigationsandenforcementproceedingsbyboththeU.S.DepartmentofJusticeandtheSECresultinginrecordfinesandpenalties,increasedenforcementactivitybynon-U.S.regulators,andincreasesincriminalandcivilproceedingsbroughtagainstcompaniesandindividuals.Ourfailuretosuccessfullycomplywithanysuchlegalrequirementscouldsubjectustomonetaryliabilitiesandothersanctionsthatcouldharmourbusinessandfinancialcondition.

Also,becausewegeneratesomeofourrevenueoutsidetheUnitedStatesbutreportourfinancialresultsinU.S.dollars,ourfinancialresultsareimpactedbyfluctuationsinforeigncurrencyexchangerates.IftheU.S.dollarisstrongagainstforeigncurrencies,ourtranslationofforeigncurrencydenominatedrevenueorexpensecouldresultinlowerU.S.dollardenominatednetrevenueandexpense.

Any adverse change in our relationship with our suppliers could harm our business.

Werelyonnumerousthird-partysupplierslocatedinAsiaforthemanufactureofmostofourproducts.Whilewebelievethatalternativesupplierscouldbelocatedifrequired,ourproductsourcingcouldbeaffectedifanyofthesesuppliersdonotcontinuetomanufactureourproductsinrequiredquantitiesoratall,orwiththerequiredlevelsofquality.Wedonothaveanylong-termsupplycontractswithourforeignsuppliers;rather,weenterintopurchaseorderswiththesesuppliers.In

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addition,difficultiesencounteredbythesesuppliers,suchasfire,accident,naturaldisasters,outbreaksofcontagiousdiseases,orpoliticalunrest,couldhaltordisruptproductionattheaffectedlocations,resultingindelayorcancellationoforders.Anyoftheseeventscouldresultindelayeddeliveriesbyusofourproducts,causingreducedsalesandharmtoourreputationandbrandname.

Increases in the cost of materials or labor used to manufacture our products could decrease our profitability and therefore negatively impact our business andfinancial condition.

Becauseourproductsaremanufacturedbythird-partysuppliers,wedonotdirectlypurchasethematerialsusedinthemanufactureofourproducts.However,thepricespaidbyustothesesupplierscouldincreaseifrawmaterials,labor,orothercostsincrease.Ifwecannotpasstheseincreasesalongtoourcustomers,ourprofitabilitywillbeadverselyaffected.

Earthquakes or other catastrophic events out of our control may damage our primary distribution facility and harm our results of operations.

OurprimarydistributionfacilityislocatedinRiverside,California,nearmajorearthquakefaults.Acatastrophicevent,suchasanearthquake,flood,fire,orothernaturalormanmadedisaster,couldimpactoperationsatthisfacilityandimpairdistributionofourproducts,damageinventory,interruptcriticalfunctions,orotherwiseaffectourbusinessnegatively,harmingourresultsofoperations.

Intellectual property claims relating to our products could increase our costs and adversely affect our business.

Wereceive,fromtimetotime,claimsofallegedinfringementofpatentsrelatingtocertainofourproducts,andwemayfacesimilarclaimsinthefuture.Thedefenseofintellectualpropertyclaimscanbecostlyandtimeconsuming,evenincircumstanceswheretheclaimiswithoutmerit.Wemayberequiredtopaysubstantialdamagesorsettlementcostsinordertoresolvethesetypesofclaims.Inaddition,theseclaimscouldmateriallyharmourbrandname,reputationandoperations.

As a manufacturer of consumer products, we are subject to various government regulations and may be subject to additional regulations in the future, violationof which could subject us to sanctions or otherwise harm our business. In addition, we could be the subject of future product liability suits, product recalls, andother claims relating to the use of our products, which could harm our business.

Becauseweproduceinfantandjuvenilehealth,safetyandwellnessconsumerproducts,wearesubjecttosignificantgovernmentregulationandfaceproductliabilityrisksrelatingtoconsumeruseofourproducts.Wemustcomplywithavarietyofstateandfederalproductsafetyandproducttestingregulations.Inparticular,ourproductsaresubjecttotheConsumerProductSafetyAct,theFederalHazardousSubstancesAct("FHSA")andtheConsumerProductSafetyImprovementAct("CPSIA"),whichempowertheConsumerProductSafetyCommission(the"CPSC"),totakeactionagainsthazardspresentedbyconsumerproducts.WithexpandedauthorityundertheCPSIA,theCPSChasandcontinuestoadoptnewregulationsforsafetyandproductstestingthatapplytoourproducts.Thesenewregulationshaveorlikelywillsignificantlyincreasetheregulatoryrequirementsgoverningthemanufactureandsaleofchildren'sproductsandincreasethepotentialpenaltiesfornoncompliancewithapplicableregulations.TheCPSChastheauthoritytoexcludefromthemarketandrecallcertainconsumerproductsthatarefoundtobepotentiallyhazardous.ConsumerproductsafetylawsalsoexistinsomestatesandcitieswithintheUnitedStatesandinCanadaandEurope,aswellascertainothercountries.Ifwefailtocomplywiththeselawsandregulations,orifwefaceproductliabilityclaims,wemaybesubjecttodamageawardsorsettlementcoststhatexceedanyavailableinsurancecoverageandwemayincursignificantcostsincomplyingwithrecallrequirements.

Wemaintainaqualitycontrolprogramtohelpensurecompliancewithapplicableproductsafetyrequirements.Nonetheless,wehaveexperienced,andmayinthefutureexperience,issuesinproducts

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thatmayleadtoproductliability,personalinjuryorpropertydamageclaims,recalls,withdrawals,replacementsofproducts,orregulatoryactionsbygovernmentalauthorities.Aproductrecallcouldhaveanadverseeffectonourresultsofoperationsandfinancialcondition,dependingontheproductaffectedbytherecallandtheextentoftherecalleffortsrequired.Aproductrecallcouldalsonegativelyaffectourreputationandthesalesofotherproducts.Furthermore,concernsaboutpotentialliabilitymayleadustorecallvoluntarilyselectedproducts.Complyingwithexistingoranysuchadditionalregulationsorrequirementscouldimposeincreasedcostsonourbusinessoperations,decreasesales,increaselegalfeesandothercosts,andputusatacompetitivedisadvantagecomparedtoothermanufacturersnotaffectedbysimilarissueswithproducts,anyofwhichcouldhaveanadverseeffectonourfinancialcondition.Similarly,increasedpenaltiesfornon-compliancecouldsubjectustogreaterexpenseintheeventanyofourproductswerefoundtonotcomplywithsuchregulations.

Inadditiontoproductliabilityrisksrelatingtotheusebyconsumersofourproducts,wealsomustcomplywithavarietyofstateandfederallawsandregulationswhichprohibitsunfairordeceptivetradepractices,includingdisseminationoffalseormisleadingadvertising.Whilewetakestepsthatwebelievearenecessarytocomplywiththeselawsandregulations,therecanbenoassurancethatwewillalwaysbeincompliance.Compliancewiththesevariouslawsandregulationscouldimposesignificantcostsonourbusinessifwefailtocomply,andcouldresultinmonetaryliabilitiesandotherpenaltiesandleadtosignificantnegativemediaattentionandconsumerdissatisfaction,whichcouldhaveanadverseeffectonourbusiness,financialconditionandresultsofoperations.

We are dependent on key personnel, and our ability to grow and compete in our industry will be harmed if we do not retain the continued services of our keypersonnel, or we fail to identify, hire, and retain additional qualified personnel.

Oursuccessdependsontheeffortsofourseniormanagementteamandotherkeypersonnel.Althoughwebelievethatwehaveastrongmanagementteam,thelossofservicesofmembersofourseniormanagementteam,whohavesubstantialexperienceintheinfantandjuvenilehealth,safetyandwellnessmarkets,couldhaveanadverseeffectonourbusiness.Inaddition,ifweexpecttogrowouroperations,itwillbenecessaryforustoattractandretainadditionalqualifiedpersonnel.Themarketforqualifiedandtalentedproductdevelopmentpersonnelintheconsumergoodsmarket,andspecificallyintheinfantandjuvenilehealth,safetyandwellnessproductsmarket,isintenselycompetitive.Ifweareunabletoattractorretainqualifiedpersonnelasneeded,thegrowthofouroperationscouldbeslowedorhampered.

We may have exposure to greater than anticipated tax liabilities that, if not identified, could negatively affect our consolidated operating results and net worth.

Ourprovisionforincometaxesissubjecttovolatilityandcouldbeadverselyaffectedbynondeductibleequity-basedcompensation,earningsbeinglowerthananticipatedinjurisdictionswherewehavelowerstatutoryratesandbeinghigherthananticipatedinjurisdictionswherewehavehigherstatutoryrates,transferpricingadjustments,notmeetingthetermsandconditionsoftaxholidaysorincentives,changesinthevaluationofourdeferredtaxassetsandliabilities,changesinactualresultsversusourestimates,orchangesintaxlaws,regulations,accountingprinciplesorinterpretationsthereof,andtaxesrelatingtodeemeddividendsresultingfromforeignguaranteesmadebycertainofourforeignsubsidiaries.Inaddition,likeothercompanies,wemaybesubjecttoexaminationofourincometaxreturnsbytheU.S.InternalRevenueServiceandothertaxauthorities.Whileweregularlyassessthelikelihoodofadverseoutcomesfromsuchexaminationsandtheadequacyofourprovisionforincometaxes,therecanbenoassurancethatsuchprovisionissufficientandthatadeterminationbyataxauthoritywillnothaveanadverseeffectonourresultsofoperations.

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A material impairment in the carrying value of other intangible assets could negatively affect our consolidated results of operations and net worth.

Aportionofourassetsareintangible,whicharereviewedonanannualbasisand/orwhenevereventsandchangesincircumstancesindicatethatthecarryingamountofanassetmaynotberecoverable.Ifthecarryingvalueoftheseassetsexceedsthecurrentfairvalue,theassetisconsideredimpairedandisreducedtofairvalue,resultinginanon-cashchargetoearningsduringtheperiodinwhichanyimpairmentisdetermined.Ifwemakechangesinourbusinessstrategy,ourfutureoperatingperformancewastofallsignificantlybelowforecastlevelsorifexternalconditionsadverselyaffectourbusinessoperations,wemayberequiredtorecordanimpairmentchargeforintangibles,whichwouldleadtodecreasedassetsandreducednetoperatingresultsandnetworth.

We rely on information technology in our operations, and any material failure, inadequacy, interruption, or security failure of that technology could harm ourability to effectively operate our business.

Werelyoninformationtechnologysystemsacrossouroperations,includingformanagementofoursupplychain,saleanddeliveryofourproducts,andvariousotherprocessesandtransactions,includingcreditcardprocessingforonlinesales.Ourabilitytoeffectivelymanageourbusinessandcoordinatetheproduction,distribution,andsaleofourproductsdependsonthereliabilityandcapacityofthesesystemsandinsomeinstances,third-partyserviceproviders.Thefailureofthesesystemstooperateeffectivelyduetoserviceinterruptions,problemswithtransitioningtoupgradedorreplacementsystems,orabreachinsecurityofthesesystemscouldcausedelaysinproductsalesandreducedefficiencyofouroperations,lossofproprietarydataorcustomerinformation,andcapitalinvestmentscouldberequiredtoremediatetheproblem.

Our stock price has been and may continue to be volatile.

Themarketpriceofourcommonstockhasbeen,andislikelytocontinuetobe,volatile.Whenweorourcompetitorsannouncenewproducts,experiencequarterlyfluctuationsinoperatingresults,announcestrategicrelationships,acquisitionsordispositions,changeearningsestimates,publishfinancialresultsorothermaterialnews,ourstockpriceisoftenaffected.Thevolatilityofourstockpricemaybeaccentuatedduringperiodsoflowvolumetrading,whichmayrequireastockholderwishingtosellalargenumberofsharestodosoinincrementsovertimetomitigateanyadverseimpactofthesalesonthemarketpriceofourstock.

We may not be able to maintain our listing on Nasdaq.

OurcommonstockcurrentlytradesonTheNasdaqCapitalMarket.Thismarkethascontinuedlistingrequirementsthatwemustcontinuetomaintaintoavoiddelisting,including,amongothers,aminimumbidpricerequirementof$1.00pershareandanyof:(i)aminimumstockholders'equityof$2.5million;(ii)amarketvalueoflistedsecuritiesof$35million;or(iii)netincomefromcontinuingoperationsof$500,000inthemostrecentlycompletedfiscalyearorintwoofthelastthreefiscalyears.Ourresultsofoperationsandourfluctuatingstockpricedirectlyimpactourabilitytosatisfytheselistingstandards.Ifweareunabletomaintaintheselistingstandards,wemaybesubjecttodelisting.

AdelistingfromTheNasdaqCapitalMarketwouldresultinourcommonstockbeingeligibleforquotationon"over-the-counter"markets,whichisgenerallyconsideredtobealessefficientsystemthanlistingonmarketssuchasNasdaqorothernationalexchangesbecauseoflowertradingvolumes,transactiondelaysandreducedsecurityanalystandnewsmediacoverage.Thesefactorscouldcontributetolowerpricesandlargerspreadsinthebidandaskpricesforourcommonstock.Additionally,tradingofourcommonstockonover-the-countermarketsmaymakeuslessdesirabletoinstitutionalinvestorsandmay,therefore,limitourfutureequityfinancingoptionsandcouldnegativelyaffecttheliquidityofourstock.

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Anti-takeover provisions in our organizational documents and Delaware law may limit the ability of our stockholders to control our policies and effect achange of control of our Company and may prevent attempts by our stockholders to replace or remove our current management, which may not be in your bestinterests.

Thereareprovisionsinourcertificateofincorporationandbylawsthatmaydiscourageathirdpartyfrommakingaproposaltoacquireus,evenifsomeofourstockholdersmightconsidertheproposaltobeintheirbestinterests,andmaypreventattemptsbyourstockholderstoreplaceorremoveourcurrentmanagement.TheseprovisionsinourcertificateofincorporationincludeauthorizationforourBoardofDirectorstoissuesharesofpreferredstockwithoutstockholderapprovalandtoestablishthepreferencesandrightsofanypreferredstockissued,andtoissueoneormoreclassesorseriesofpreferredstockthatcoulddiscourageordelayatenderofferorchangeincontrol.Ourbylawsrequireadvancewrittennoticeofstockholderproposalsanddirectornominations.

Additionally,wearesubjecttoSection203oftheDelawareGeneralCorporationLaw,which,ingeneral,imposesrestrictionsuponacquirersof15%ormoreofourstock.Finally,theBoardofDirectorsmayinthefutureadoptotherprotectivemeasures,suchasastockholderrightsplan,whichcoulddelay,deterorpreventachangeofcontrol.

Item1B.UnresolvedStaffComments

None.

Item2.Properties

Weareheadquarteredina62,500squarefootfacilityinWoonsocket,RhodeIsland.Wehavealeaseonthisfacility,whichwillexpirein2021.WealsoleasesmallofficesinArkansas,Washington,Canada,theUnitedKingdomandHongKong.

WemaintaininventoryatleasedwarehousesinCalifornia(approximately460,000squarefeet),Canada(approximately61,000squarefeet),andtheUnitedKingdom(approximately25,000squarefeet).Theseleasesexpireatvarioustimesthrough2023.

Item3.LegalProceedings

TheCompanyisapartytoroutinelitigationandadministrativecomplaintsincidentaltoitsbusiness.TheCompanydoesnotbelievethattheresolutionofanyorallofsuchcurrentroutinelitigationandadministrativecomplaintsislikelytohaveamaterialadverseeffectontheCompany'sfinancialconditionorresultsofoperations.

Item4.MineSafetyDisclosures

Notapplicable.

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PARTII

Item5.MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities

Market Information

OurcommonstockistradedontheNasdaqCapitalMarketunderthesymbol"SUMR".

Holders of Common Stock

AsofFebruary19,2019,therewere34holdersofrecordofourcommonstock.Becausesharesofourcommonstockareheldbydepositaries,brokersandothernominees,thenumberofbeneficialholdersofoursharesissubstantiallylargerthanthenumberofrecordholders.

Issuer Repurchases of Equity Securities

None.

Recent Sales of Unregistered Securities

Notapplicable.

Item6.SelectedConsolidatedFinancialData

Notrequired.

Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations

Thefollowingdiscussionisintendedtoassistintheassessmentofsignificantchangesandtrendsrelatedtoourresultsofoperationsandfinancialcondition.Theinformationcontainedinthissectionhasbeenderivedfromourconsolidatedfinancialstatementsandshouldbereadtogetherwithourconsolidatedfinancialstatementsandrelatednotesincludedelsewhereinthisreport.Readersshouldalsoreviewandconsiderourdisclosuresundertheheading"SpecialNoteRegardingForward-LookingStatements"describingvariousfactorsthatcouldaffectourbusinessandthedisclosuresundertheheading"RiskFactors"inthisreport.

NotethatalldollaramountsinthisItem7areinthousandsofU.S.dollars,exceptshareandpersharedata.

Overview

Weareaninfantandjuvenileproductscompanyoriginallyfoundedin1985andhavepubliclytradedontheNasdaqStockMarketsince2007underthesymbol"SUMR."Wearearecognizedauthorityinthejuvenileindustry,providingparentsandcaregiversafullrangeofinnovative,high-quality,andhigh-valueproductstocareforbabiesandtoddlers.Weseektoimprovethequalityoflifeofparents,caregivers,andbabiesthroughourproductofferings,whileatthesametimemaximizingshareholdervalueoverthelongterm.

Weoperateinoneprincipalindustrysegmentacrossgeographicallydiversemarketplaces,sellingourproductsgloballytolarge,nationalretailersaswellasindependentretailers,andonourpartner'sandourowndirecttoconsumerwebsites.InNorthAmerica,ourcustomersincludeAmazon.com,Wal-Mart,Target,BuyBuyBaby,HomeDepot,andLowe's.OurlargestEuropean-basedcustomersareArgosandAmazon.Wealsosellthroughinternationaldistributors,representatives,andtoselectinternationalretailcustomersingeographiclocationswherewedonothaveadirectsalespresence.

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Ouroverallresultsin2018weremixed,aswesawthecontinuedimpactofthebankruptcyofToysRUs(TRU),theparentcompanyofBabiesRUs,oneofourlargestcustomers,onourresultsandtheindustryingeneralaswellastheimplementationofadditionaltradetariffswithChinaandtheenactmentoftheTaxCutsandJobsAct,yetsuccessfullyexpandedourdistributionthroughotherchannels,implementedcostreductionactionstorightsizeourbusinessandrefinancedourcreditfacilitiestomateriallyincreaseourliquidity.

Salesinthefourthquarterof2018declined14.5%,andsalesforthefullyear2018declined8.6%.Theyear-over-yeardecreasereflecteda$22,940reductioninsalesduetotheliquidationofTRU'sU.S.assets,anda$5,452declineinmonitorsalesasaresultofincreasedcompetition.WedidseeincreasedbusinesswithothercustomersasformerTRUbusinessbeganmigratingtootherchannels,andalsoachievedsalesgrowthinourpotty,entertainers,andgatecategories.

Thefourthquarterof2018wasnegativelyimpactedbythe10%tariffongoodsimportedintotheUnitedStatesfromChinaenactedinSeptember2018(the"10%tariffs").Thesetariffsmayincreaseanadditional15%toatotalof25%inMarch2019.Theimplementationofthe10%tariffscausedmarketdisruptionamongstourmajorcustomers,whochangedtheirbuyinghabits,includingdelayingorders,resultinginlowersalesforthequarter.Tomitigatetheimpactofthe10%tariffs,wehaveimplementedpriceincreasesandareexploringalternativesourcesofsupplyoutsideofChina.However,thereisnoassurancethatwewillbesuccessfulinmitigatingtheimpactofthe10%tariffsorafutureincreaseintariffsandtheincreaseinthecostofcertainofourproductsfortheforeseeablefuture.Ifweareunabletomitigatetheimpactofthetariffsonthecostofourproducts,itcouldhaveanadverseeffectonourcostofgoodssoldandfuturerevenueandprofitability.

Inthefourthquarterof2018,werecordedanadditionala$933non-cash,taxchargetoourtaxprovisionasaresultoftheTaxCutsandJobsAct(the"TaxAct")thatwasenactedinDecember2017.TheTaxActallowsforinterestexpensetobedeductiblefortaxpurposesupto30%oftaxableEBITDA.Anyinterestnotdeductiblecanbecarriedforwardindefinitely.Werecordedaninterestdeductionlimitationdeferredtaxassetof$933andrecordedanoffsettingfullvaluationallowanceonthisassetuntilsuchtimeaswecandemonstrateitismorelikelythannotthattheassetwillbeusedinthenearfuture.

Primarilyasaresultoflowersalesin2018,abaddebtchargeof$1,813relatedtotheTRUbankruptcy,andthe$933deferredtaxvaluationchargediscussedabove,weendedfiscal2018withanetlossof$0.23pershareascomparedtoanetlossof$0.12pershareinfiscal2017.

InJune2018,wesuccessfullyrefinancedourcreditfacilitythroughanamendedcreditfacilityandnewtermloan,whichprovideduswithadditionalcreditavailabilityandloweredourquarterlyprincipalpaymentsascomparedtoourpriorcreditfacility.

Whilewebelievewearewell-positionedforgrowthin2019,growthmaybeadverselyeffectedduetotariffsongoodsimportedintotheUnitedStatesfromChina,generaltradetensionsbetweentheUnitedStatesandChina,andgeneraleconomicuncertaintyasweenter2019.Inearly2019,weimplementedcostreductionactionsthatwebelievewillrightsizeourbusinessasaresultofthetariffdisruptioninthemarketplace,andweexpecttocontinueoureffortstocontrolcoststhroughout2019whilecontinuingtoinvestinproductdevelopmentandimprovingouroverallproductpositioning.

SummaryofCriticalAccountingPoliciesandEstimates

Thefollowingsummaryofourcriticalaccountingpoliciesispresentedtoassistinunderstandingourconsolidatedfinancialstatements.Theconsolidatedfinancialstatementsandnotesarerepresentationsofourmanagement,whoareresponsiblefortheirintegrityandobjectivity.TheseaccountingpoliciesconformtoaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericaandhavebeenconsistentlyappliedinthepreparationoftheconsolidatedfinancialstatements.

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AdditionalinformationaboutouraccountingpoliciesandestimatesmaybefoundinNote1toourconsolidatedfinancialstatementsincludedinthisreport.

Wemakecertainestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandthereportedamountsofrevenuesandexpenses.Theaccountingpoliciesdescribedbelowarethoseweconsidercriticalinpreparingourfinancialstatements.Someofthesepoliciesincludesignificantestimatesmadebymanagementusinginformationavailableatthetimetheestimatesweremade.However,theseestimatescouldchangemateriallyifdifferentinformationorassumptionswereused.

Revenue Recognition

Werecognizerevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectswhatweexpecttoreceiveinexchangeforthegoodsorservices.Ourprincipalactivityfromwhichwegeneraterevenueisproductsales.Revenueismeasuredbasedonconsiderationspecifiedinacontractwithacustomer.TheCompanyrecognizesrevenuewhenitsatisfiesaperformanceobligationinacontractbytransferringcontroloveraproducttoacustomerwhenproductdeliveryoccurs.Aperformanceobligationisapromiseinacontracttotransferadistinctproducttothecustomer,whichfortheCompanyistransferofjuvenileproductstoitscustomers.Thetransactionpriceofacontractisallocatedtoeachdistinctperformanceobligationandrecognizedasrevenuewhenorasthecustomerreceivesthebenefitoftheperformanceobligation.

AtransactionpriceistheamountofconsiderationtheCompanyexpectstoreceiveunderthearrangement.TheCompanyisrequiredtoestimatevariableconsideration(ifany)andtofactorthatestimationintothedeterminationofthetransactionprice.TheCompanyconductsitsbusinesswithcustomersthroughvalidpurchaseorsalesorderseachofwhichisconsideredaseparatecontractbecauseindividualordersarenotinterdependentononeanother.Producttransactionpricesonapurchaseorsaleorderarediscreteandstand-alone.Purchaseorsalesordersmaybeissuedundereitheracustomermasterserviceagreementoraresellerallowanceagreement.Purchaseorsalesorders,masterserviceagreements,andresellerallowanceagreementswhicharespecificanduniquetoeachcustomers,mayincludeproductpricediscounts,markdownallowances,returnallowances,and/orvolumerebateswhichreducetheconsiderationduefromcustomers.Variableconsiderationisestimatedusingthemostlikelyamountmethod,whichisbasedonourhistoricalexperienceaswellascurrentinformationsuchassalesforecasts.

ContractsmayalsoincludecooperativeadvertisingarrangementswheretheCompanyallowsadiscountfrominvoicedproductamountsinexchangeforcustomerpurchasedadvertisingthatfeaturestheCompany'sproducts.Theseallowancesaregenerallybaseduponproductpurchasesorspecificadvertisingcampaigns.Suchallowancesareaccruedwhentherelatedrevenueisrecognized.Thesecooperativeadvertisingarrangementsprovideadistinctbenefitandfairvalueandareaccountedforasdirectsellingexpenses.

Trade Receivables

Tradereceivablesarecarriedattheiroutstandingunpaidprincipalbalancesreducedbyanallowancefordoubtfulaccounts.Theallowancefordoubtfulaccountsrepresentsadjustmentstocustomertradeaccountsreceivableforamountsdeemeduncollectible.Theallowancefordoubtfulaccountsreducesgrosstradereceivablestotheirestimatednetrealizablevalue.TheCompanyestimatesdoubtfulaccountsbasedonhistoricalbaddebts,factorsrelatedtospecificcustomers'abilitytopayandcurrenteconomictrends.TheCompanywritesoffaccountsreceivableagainsttheallowancewhenabalanceisdeterminedtobeuncollectible.Amountsareconsideredtobeuncollectablebaseduponhistoricalexperienceandmanagement'sevaluationofoutstandingaccountsreceivable.

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Inventory Valuation

Inventoryiscomprisedoffinishedgoodsandisstatedatthelowerofcost,inclusiveoffreightandduty,ormarket(netrealizablevalue)usingthefirst-in,first-out(FIFO)methodornetrealizablevalue.Ourwarehousingcostsarechargedtoexpenseasincurred.Weregularlyreviewslow-movingandexcessinventoryandwrite-downinventoriesasappropriate.Managementusesestimatestorecordwrite-downsbasedonitsreviewofinventorybyproductcategoryincludinglengthoftimeonhandandestimatesoffutureordersforeachproduct.Changesinconsumerpreferences,aswellasdemandforproducts,customerbuyingpatternsandinventorymanagementcouldimpacttheinventoryvaluation.

Long-Lived Assets with Finite Lives

Wereviewlong-livedassetswithfinitelivesforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofalong-livedassetmaynotberecoverable.Anassetisconsideredtobeimpairedwhenitscarryingamountexceedsboththesumoftheundiscountedfuturenetcashflowsexpectedtoresultfromtheuseoftheassetanditseventualdispositionandtheassets'fairvalue.Long-livedassetsincludepropertyandequipmentandfinite-livedintangibleassets.Theamountofimpairmentloss,ifany,ischargedbyustocurrentoperations.

Indefinite-Lived Intangible Assets

Weaccountforindefinite-livedintangibleassetsinaccordancewithaccountingguidancethatrequiresindefinite-livedintangibleassetsbetestedannuallyforimpairmentandmorefrequentlyifeventsorchangesincircumstancesindicatethattheassetmightbeimpaired.Ourannualimpairmenttestingisconductedinthefourthquarterofeveryyear.

Wetestindefinite-livedintangibleassetsforimpairmentbycomparingtheasset'sfairvaluetoitscarryingamount.Ifthefairvalueislessthanthecarryingamount,theexcessofthecarryingamountoverfairvalueisrecognizedasanimpairmentchargeandtheadjustedcarryingamountbecomestheassets'newaccountingbasis.

Managementalsoevaluatestheremainingusefullifeofanintangibleassetthatisnotbeingamortizedeachreportingperiodtodeterminewhethereventsandcircumstancescontinuetosupportanindefiniteusefullife.Ifanintangibleassetthatisnotbeingamortizedissubsequentlydeterminedtohaveafiniteusefullife,itisamortizedprospectivelyoveritsestimatedremainingusefullife.

Income Taxes

Incometaxesarecomputedusingtheassetandliabilitymethodofaccounting.Undertheassetandliabilitymethod,adeferredtaxassetorliabilityisrecognizedforestimatedfuturetaxeffectsattributabletotemporarydifferencesandcarryforwards.Themeasurementofdeferredincometaxassetsisadjustedbyavaluationallowance,ifnecessary,torecognizefuturetaxbenefitsonlytotheextent,basedonavailableevidence;itismorelikelythannotthatsuchbenefitwillberealized.

Werecognizeinterestandpenalties,ifany,relatedtouncertaintaxpositionsininterestexpense.InterestandpenaltiesrelatedtouncertaintaxpositionswereaccruedatDecember29,2018.Onaglobalbasis,theopentaxyearssubjecttoexaminationbymajortaxingjurisdictionsinwhichweoperateisbetween2012and2018.

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ResultsofOperations

ThefollowingtablepresentsselectedcondensedconsolidatedfinancialinformationforourCompanyforthefiscalyearsendedDecember29,2018("fiscal2018")andDecember30,2017("fiscal2017").

Fiscal 2018 Compared with Fiscal 2017

Netsalesdecreased8.6%to$173,619forfiscal2018from$189,869forfiscal2017.Thedecreasewasprimarilyaresultofa$22,940reductioninsalestoTRUduetotheliquidationofitsU.S.assetsanda$5,452decreaseinmonitorsalesduetoincreasedcompetition.ThedecreaseinmonitorsalesexcludesanyoverlappingimpactwiththedecreasedsalestoTRU.Inaddition,the10%tariffscausedmarketdisruptioninthefourthquarteroffiscal2018amongourmajorcustomerswhochangedand/ordelayedtheirbuyinghabitswithus,resultinginlowersalesforthequarter.ThesedeclineswerepartiallyoffsetbyincreasedbusinesswithothercustomersasformerTRUbusinessmigratestootherexistingchannelsaswellasgrowthinourpotty,entertainers,andgatecategories.

Costofgoodssoldincludesthecostofthefinishedproductfromsuppliers,dutiesandtariffsoncertainimporteditems,freight-infromsuppliers,andmiscellaneouscharges.Thecomponentsofcostofgoodssoldremainedsubstantiallythesameforfiscal2018ascomparedtofiscal2017.

Grossprofitdeclined8.4%to$55,119forfiscal2018from$60,195forfiscal2017,however,grossmarginstayedrelativelyconstantat31.7%forfiscal2018andfiscal2017.Grossprofitdecreasedprimarilyduetolowersales.The10%tariffsincreasedcostofgoodssoldbutwasmitigatedbypriceincreasesandsalesofpre-tariffinventoryinthefourthfiscalquarter.

Generalandadministrativeexpensesof$38,880forfiscal2018wererelativelyflatcomparedto$38,878forfiscal2017butincreasedasapercentofsalesto22.4%forfiscal2018from20.5%forfiscal2017.Theincreaseinpercentofnetsaleswasprimarilyduetolowersales.Fiscal2018includedanet$1,813chargeforbaddebtsduetotheliquidationofTRU'sU.S.assetscomparedtoa$1,560chargeinfiscal2017duetotheTRUbankruptcyfilinginfiscal2017.

Sellingexpensesdecreasedby12.6%to$12,430forfiscal2018from$14,229forfiscal2017andasapercentofsalesto7.1%forfiscal2018from7.5%forfiscal2017.Thedecreaseinsellingexpensewasprimarilyattributabletolowersales,customermix,aswellaslowerfreightoutandconsumeradvertisingcosts.Thedecreaseasapercentofsaleswasprimarilyattributabletocustomermix,aswellaslowerfreightoutandconsumeradvertisingcosts.

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Yearended

December29,2018 YearEnded

December30,2017 Netsales $ 173,619 100.0% $ 189,869 100.0%Costofgoodssold 118,500 68.3% 129,674 68.3%Grossprofit 55,119 31.7% 60,195 31.7%Generalandadministrativeexpenses 38,880 22.4% 38,878 20.5%Sellingexpenses 12,430 7.1% 14,229 7.5%Depreciationandamortization 4,182 2.4% 4,197 2.2%(Loss)incomefromoperations (373) (0.2)% 2,891 1.5%Interestexpense,net 4,442 2.5% 2,968 1.6%Lossbefore(benefit)provisionforincometaxes (4,815) (2.7)% (77) (0.1)%(Benefit)provisionforincometaxes (564) 0.3% 2,172 (1.1)%Netloss $ (4,251) (2.4)% $ (2,249) (1.2)%

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Depreciationandamortizationwasslightlydownat$4,182forfiscal2018from$4,197infiscal2017.Capitalexpendituresincreasedslightlyinfiscal2018to$3,472from$3,103infiscal2017.

Netinterestexpenseincreased50%to$4,442forfiscal2018from$2,968infiscal2017.Interestexpenseincreasedprimarilyasaresultofthewriteoffof$518ofpreviouslyunamortizedprepaidfinancefeesassociatedwiththerepaymentofexistingdebtfromtheproceedsofourJune2018refinancing,higheraverageinterestratesunderournewcreditfacilities,andtheimpactofincreasesinmarketinterestratesoverthepastyear.

Forfiscal2018,werecordeda$564taxbenefiton$4,815ofpretaxlossfortheperiod.Thetaxprovisionforfiscal2018includeda$933chargeduetothenewTaxAct.TheTaxActallowsforinterestexpensetobedeductiblefortaxpurposesupto30%oftaxableEBITDA.Anyinterestnotdeductiblecanbecarriedforwardindefinitely.Werecordedaninterestdeductionlimitationdeferredtaxassetof$933andrecordedanoffsettingfullvaluationallowanceonthisassetuntilsuchtimeaswecandemonstrateitismorelikelythannotthattheassetwillbeusedinthenearfuture.Forfiscal2017,werecordeda$2,172taxprovisionon$77ofpretaxlossfortheperiod.Thefiscal2017taxprovisionwasalsoaffectedbytheTaxAct.Asaresult,werecordeda$734taxprovisionforthedeemedrepatriationofpastforeignincome,$882forawritedowninforeigntaxcreditsand$115forawritedownofthevalueofourdeferredtaxassetsduetofuturelowerincometaxrates.

LiquidityandCapitalResources

Wefundouroperationsandworkingcapitalneedsthroughcashgeneratedfromoperationsandborrowingsunderourcreditfacility.

Cash Flows

Inourtypicaloperationalcashflowcycle,inventoryispurchasedtomeetexpecteddemandplusasafetystock.ThemajorityofourinventoryissourcedfromAsiawhichtakesapproximatelythreetofourweekstoarriveatthevariousdistributionpointswemaintainintheUnitedStates,CanadaandtheUnitedKingdomandpaymenttermsforthesevendorsareapproximately60-75daysfromthedatetheproductshipsfromAsia.Inturn,salestocustomersgenerallyhavepaymenttermsofapproximately60days,resultinginanaccountsreceivableandincreasingtheamountofcashrequiredtofundworkingcapital.Tobridgethegapbetweenpayingoursuppliersandreceivingpaymentfromourcustomersforgoodssold,werelyonourcreditfacility.

Themajorityofourcapitalexpendituresarefortoolsandmoldsrelatedtonewproductintroductions.Wereceiveindicationsfromretailersgenerallynearthemiddleofeachyearastowhatproductstheywillbetakingintotheirproductlinesfortheupcomingyear.Basedontheseindications,wewillacquiretoolsandmoldsrequiredtobuildandproducetheproducts.Inmostcases,thepaymentsforthetoolsandmoldsarespreadoverathreetofourmonthperiod.

Forfiscal2018,netcashprovidedbyoperatingactivitieswasapproximately$5,546generatedprimarilyfromoperatingperformancepartiallyoffsetbyhigherinventoryattributableinparttoinventorypurchasesinadvanceofapotential15%increaseintariffsthatmaybeimplementedassoonasthefirstquarterof2019.Forfiscal2017,netcashprovidedbyoperatingactivitieswasapproximately$1,211generatedprimarilyfromoperatingperformancepartiallyoffsetbyhigheraccountsreceivableattributabletodelaysincollectionfromthebankruptcyofTRUcombinedwithahighermixofsaleswithcertaincustomerswithlongerpaymenttermsaswellasduetoareductioninaccountspayable.

Forfiscal2018,netcashusedininvestingactivitieswasapproximately$3,472.Forfiscal2017,netcashusedininvestingactivitieswasapproximately$3,103.Theuseofcashininvestingactivitieswasprimarilyattributabletotoolingandawarehouserackingefficiencyprojectcompletedinfiscal2018.

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Forfiscal2018,netcashusedinfinancingactivitieswasapproximately$1,999,reflectingrepaymentsonourcreditfacilityandtheproceedsfromournewTermLoan.Forfiscal2017,netcashprovidedbyfinancingactivitieswasapproximately$1,321,reflectingborrowingsonourcreditfacilityinparttofundworkingcapitalandinvestingactivities.

Basedprimarilyontheabovefactors,netcashincreasedforfiscal2018by$40,resultinginacashbalanceofapproximately$721atfiscalyearend.

Thefollowingtablesummarizesoursignificantcontractualcommitmentsatfiscal2018yearend:

EstimatedfutureinterestpaymentsonourRevolvingFacilityandTermLoanFacilityarebasedupontheinterestratesineffectatDecember29,2018.

Capital Resources

Inadditiontooperatingcashflow,wealsorelyonourexistingasset-basedrevolvingcreditfacilitywithBankofAmerica,N.A.tomeetourfinancingrequirements,whichissubjecttochangesinourinventoryandaccountreceivablelevels.Weregularlyevaluatemarketconditions,ourliquidityprofile,andvariousfinancingalternativesforopportunitiestoenhanceourcapitalstructure.

Ifweareunabletomeetourcurrentfinancialforecast,donotadequatelycontrolexpenses,oradjustouroperationsaccordingly,thesecircumstancescouldcreateasituationwherewecannotaccessouravailablelinesofcreditduetoinsufficientassetavailability,andwillberequiredtomaintaincompliancewithcertainfinancialcovenantsunderourcreditfacilityandtermloanagreement.Thereisnoassurancethatwewillmaintainsufficientavailabilityunderourcreditfacilityormeetallofourfinancialorothercovenantsinthefuture,orthatourlenderswillgrantwaiversiftherearecovenantviolations.Inaddition,shouldweseektoraiseadditionalfundsthroughdebtorequityfinancings,suchsalesmaycausedilutiontoexistingstockholders.Ifsufficientfinancingisnotavailableorisnotavailableonacceptableterms,ourabilitytoaddressanyunexpectedchangesinouroperationscouldbelimited.

Basedonpastperformanceandcurrentexpectations,webelievethatouranticipatedcashflowfromoperationsandavailabilityunderourexistingcreditfacilityaresufficienttofundourworkingcapital,capitalexpendituresanddebtservicerequirementsforatleastthenext12months.

Credit Facilities

Weandourwhollyownedsubsidiary,SummerInfant(USA),Inc.,arepartiestoaSecondAmendedandRestatedLoanandSecurityAgreementwithBankofAmerica,N.A.,asagent,thatprovidesfora$60,000asset-basedcreditfacility(the"CreditFacility").TotalborrowingcapacityundertheCreditFacilityisbasedonaborrowingbase,whichisdefinedas85%ofeligiblereceivablesplus

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PaymentDuebyFiscalPeriod

ContractualObligations Total 2019 2020 2021 2022 2023andbeyond

RevolvingFacility $ 30,630 — — — — 30,630TermLoanFacility 17,281 875 875 875 875 13,781EstimatedfutureinterestpaymentsonRevolvingFacility 5,449 1,341 1,251 1,161 1,071 625EstimatedfutureinterestpaymentsonTermLoanFacility 8,090 1,978 1,875 1,772 1,669 796Operatingleases 7,708 2,627 2,556 2,048 323 154Capitalleasesandotherliabilities 1,512 710 685 117 — —Totalcontractualcashobligations $ 70,670 $ 7,531 $ 7,242 $ 5,973 $ 3,938 $ 45,986

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thelesserof(i)70%ofthevalueofeligibleinventoryor(ii)85%ofthenetorderlyliquidationvalueofeligibleinventory,lessapplicablereserves.LoansundertheCreditFacilityarescheduledtomatureonJune28,2023(subjecttocustomaryearlyterminationprovisions).AllobligationsundertheCreditFacilityaresecuredbysubstantiallyalltheassetsoftheCompanyandcertainofoursubsidiariesareguarantors.

AsofDecember29,2018,theinterestratesforbase-rateloansandLIBOR-rateloansundertheCreditFacilitywere6.50%and4.50%,respectively.AtDecember29,2018,theamountoutstandingundertheCreditFacilitywas$30,630,totalborrowingcapacitywas$42,717,andborrowingavailabilitywas$12,087.

ForadditionalinformationontheCreditFacility,pleaseseeNote4toourcondensedconsolidatedfinancialstatementsincludedinthisAnnualReportonForm10-K.

Term Loan

Weandourwhollyownedsubsidiary,SummerInfant(USA),Inc.,arepartiestoaTermLoanandSecurityAgreementwithPathlightCapitalLLC,asagent,pursuanttowhichwereceiveda$17,500termloan(the"TermLoanAgreement").Principalonthetermloanisrepaidonaquarterlybasisininstallmentsof$219,andinterestpaymentsareduemonthly,inarrears.ThetermloanmaturesonJune28,2023.ObligationsundertheTermLoanAgreementarealsosubjecttorestrictionsonprepaymentandaprepaymentpenaltyifthetermloanisrepaidpriortothethirdanniversaryoftheclosingofthetermloan.ThetermloanissecuredbyalienoncertainassetsoftheCompany,includingafirstprioritylienonintellectualproperty,machineryandequipment,andapledgeof(i)100%oftheownershipinterestsofdomesticsubsidiariesand(ii)65%oftheownershipinterestsincertainforeignsubsidiariesoftheCompany,andajuniorlienoncertainassetssubjecttotheliensundertheCreditFacility.

TheinterestratefortheTermLoanAgreementwas11.74%asofDecember29,2018.TheamountoutstandingundertheTermLoanAgreementatDecember29,2018was$17,281.

ForadditionalinformationontheTermLoanAgreement,pleaseseeNote4toourcondensedconsolidatedfinancialstatementsincludedinthisAnnualReportonForm10-K.

Off-BalanceSheetArrangements

Wedidnothaveanyoff-balancesheetarrangementsduringtheyearendedDecember29,2018ortheyearendedDecember30,2017.

RecentlyIssuedAccountingPronouncements

InFebruary2016,theFASBissuedASU2016-02,"Leases(Topic842),"("newleasestandard").Thenewleasestandardwillsupersedethecurrentguidanceforleaseaccountingandwillrequirelesseestorecognizeright-to-useassetsandrelatedleaseliabilitiesonthebalancesheetforleaseswithleasetermsgreaterthantwelvemonths.Theobjectiveistoincreasetransparencyandcomparabilityamongorganizationsregardingleaseaccountinganddisclosingkeyinformationaboutleasingarrangements.InJuly2018,FASBissuedASU2018-10,CodificationImprovementstoTopic842(Leases),whichprovidesnarrowamendmentstoclarifyhowtoapplycertainaspectsofthenewleasestandard.Theamendmentsincludedprovidinganoptionalmodifiedretrospectivetransitionmethodthatallowstheinitialapplicationoftheleasestandardattheadoptiondateusingacumulative-effectadjustmenttotheopeningbalancesheetofretainedearningsintheperiodofadoption.TheCompanyadoptedthisstandardonDecember30,2018utilizingtheoptionalmodifiedretrospectivetransitionmethod.Aspartoftransition,theCompanyelectedthepackageoftransitionalpracticalexpedientstonotreassessifacontractcontainsalease,leaseclassification,orinitialdirectcostforleases.Upon

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adoptionofthenewleasingstandard,weexpecttorecognizealeaseliabilityofapproximately$7,000andrelatedright-to-useassetonourconsolidatedbalancesheetofapproximately$6,400.Theadoptionofthenewleasestandardwillhaveanimmaterialimpacttoourconsolidatedstatementofincome.

Managementdoesnotbelievethatanyotherrecentlyissued,butnotyeteffective,accountingstandardsifcurrentlyadoptedwouldhaveamaterialeffectontheaccompanyingfinancialstatements.

SpecialNoteRegardingForwardLookingStatements

Thisreportcontains"forward-lookingstatements"withinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended.Thesestatementsconcernmanagement'scurrentassumptions,estimates,beliefs,plans,strategiesandexpectationsandanticipatedeventsortrendsandsimilarexpressionsconcerningmattersthatarenothistoricalfacts.Suchforward-lookinginformationmaybeidentifiedbytermssuchas"expect,""anticipate,""believe,""outlook,""may,""estimate,""should,""predict"andsimilartermsorvariationsthereof,andincludesstatementsregardingourexpectationswithrespecttosustainablegrowthin2019,theeffectivenessofourstrategicinitiativesincludingournewbrandingandproductstrategytopromotefuturegrowthandprofitability,thestrengthofourcustomerandsupplierrelationships,ourliquidityforthenext12months,theopportunitytoexpandinternationally,andexpectedtrendsandproductofferingsin2019.Thesestatementsarebasedonaseriesofexpectations,assumptions,estimatesandprojectionsaboutourCompany,arenotguaranteesoffutureresultsorperformance,andinvolvesignificantrisks,uncertaintiesandotherfactors,includingassumptionsandprojections,forallforwardperiods.Ouractualresultsmaydiffermateriallyfromanyfutureresultsexpressedorimpliedbysuchforward-lookingstatements.Suchfactorsinclude,amongothers,thefollowing:

• theimpactofincreasedtariffs,additionaltariffsorimportorexporttaxesonthecostofourproductsandthereforedemandforourproducts;

• theconcentrationofourbusinesswithacertainretailcustomerswhomaychangetheirpurchasingpoliciesorsufferliquidityproblemsorbankruptcy;

• ourabilitytocompetebyintroducingnewproductsorenhancingexistingproductsthatsatisfyconsumerpreferences;

• ourabilitytodevelopandintroducenewproductsinatimelyandcosteffectivemanner;

• ourabilitytocompeteeffectivelywithlargerandsmallercompaniesthathavemorefinancialresourcesandgreatere-commercepresencethanus;

• ourabilitytomanageinventorylevelsandmeetcustomerdemand;

• ourabilitytomaintainsufficientavailabilityunderandtocomplywithfinancialandothercovenantsinourcreditfacilityandtermloanagreement;

• ourabilitytomanageourdebttoprovideadditionalliquiditytosupportgrowth;

• ourrelianceonforeignsuppliersandpotentialdisruptioninforeignmarketsinwhichweoperate;

• increasesinthecostofrawmaterialsusedtomanufactureourproducts;

• ourabilitytoprotectourintellectualproperty;

• compliancewithsafetyandtestingregulationsforourproducts;

• productliabilityclaimsarisingfromuseofourproducts;

• ourdependenceonkeypersonnel;

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• potentialexposuretogreaterthananticipatedtaxliabilities;

• animpairmentofotherintangibleassets;

• anyfailure,inadequacyorinterruptionofourinformationtechnologysystemsthatmaydisruptouroperations;and

• ourabilitytomaintainthelistingofourcommonstockontheNasdaqStockMarket.

Theforegoinglistofimportantfactorsdoesnotincludeallsuchfactors,nornecessarilypresenttheminorderofimportance.Inaddition,pleaserefertothe"RiskFactors"sectionofthisreportforadditionalinformationregardingfactorsthatcouldaffectourresultsofoperations,financialconditionandliquidity.

Weintendourforward-lookingstatementstospeakonlyasofthetimeofsuchstatementsanddonotundertakeorplantoupdateorrevisethemasmoreinformationbecomesavailableortoreflectchangesinexpectations,assumptionsorresults.Wecannotgiveanyassurancethatsuchexpectationsorforward-lookingstatementswillprovetobecorrect.Anoccurrenceof,oranymaterialadversechangein,oneormoreoftheriskfactorsorrisksanduncertaintiesreferredtointhisreportorincludedinourotherperiodicreportsfiledwiththeSECcouldmateriallyandadverselyimpactouroperationsandourfuturefinancialresults.

Anypublicstatementsordisclosuresbyusfollowingthisreportthatmodifyorimpactanyoftheforward-lookingstatementscontainedinoraccompanyingthisreportwillbedeemedtomodifyorsupersedesuchoutlookorotherforward-lookingstatementsinoraccompanyingthisreport.

Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk

Notrequired.

Item8.FinancialStatementsandSupplementaryData

ThefinancialstatementsrequiredbythisitemareattachedtothisAnnualReportonForm10-KbeginningonPageF-1.

Item9.ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure

None.

Item9A.ControlsandProcedures

(a) Evaluation of Disclosure Controls and Procedures

AsrequiredbyRule13a-15undertheSecuritiesExchangeActof1934,asoftheendoftheperiodcoveredbythisreport,wecarriedoutanevaluation,underthesupervisionandwiththeparticipationofourChiefExecutiveOfficerandourChiefFinancialOfficer,oftheeffectivenessofourdisclosurecontrolsandproceduresasofDecember29,2018.Ourprincipalexecutiveofficerandprincipalfinancialofficerhaveconcluded,basedontheirevaluation,thatourdisclosurecontrolsandprocedureswereeffectiveasofDecember29,2018.

(b) Management's Report on Internal Control over Financial Reporting

ManagementofourCompanyisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting.AsdefinedinRule13a-15(f)undertheExchangeAct,internalcontroloverfinancialreportingisaprocessdesignedby,orunderthesupervisionof,acompany'sprincipalexecutiveandprincipalfinancialofficersandeffectedbyacompany'sboardofdirectors,managementandotherpersonnel,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingand

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thepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Itincludesthosepoliciesandproceduresthat:

1)Pertaintothemaintenanceofrecordsthatinreasonabledetailaccuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofacompany;

2)Providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofacompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementandtheboardofdirectorsofthecompany;and

3)Providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,useordispositionofacompany'sassetsthatcouldhaveamaterialeffectonitsfinancialstatements.

Becauseoftheinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

TheCompany'smanagementhasusedthecriteriaestablishedinthe2013"InternalControl—IntegratedFramework"issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission("COSOFramework")toevaluatetheeffectivenessoftheCompany'sinternalcontroloverfinancialreporting.

ManagementoftheCompanyconductedanevaluationoftheeffectiveness,asofDecember29,2018,oftheCompany'sinternalcontroloverfinancialreportingandbasedonitsevaluationundertheCOSOFramework,managementhasconcludedthattheCompany'sinternalcontroloverfinancialreportingwaseffectiveasofDecember29,2018.

(c) Changes in Internal Control Over Financial Reporting

TherewasnochangeinourinternalcontroloverfinancialreportingthatoccurredduringthequarterendedDecember29,2018thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

Item9B.OtherInformation

None.

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PARTIII

Item10.Directors,ExecutiveOfficersandCorporateGovernance

Theinformationrelatingtodirectors,directornomineesandexecutiveofficersoftheCompanyissetforthinourdefinitiveProxyStatementtobefiledwiththeSECinconnectionwithour2019AnnualMeetingofStockholders(the"2019ProxyStatement")andisincorporatedhereinbyreference.

TheinformationrelatingtoSection16(a)beneficialownershipreportingcomplianceissetforthinthe2019ProxyStatementandisincorporatedhereinbyreference.

WehaveadoptedaCodeofEthicsthatappliestoallofourdirectors,officersandemployees.TheCodeofEthicsispubliclyavailableintheInvestorRelationssectionofourwebsiteatwww.summerinfant.com.AmendmentstotheCodeofEthicsandanygrantofawaiverfromaprovisionoftheCodeofEthicsrequiringdisclosureunderapplicableSECandNasdaqruleswillbedisclosedonourwebsite.

TheinformationrelatingtotheCompany'sAuditCommitteeanditsdesignatedauditcommitteefinancialexpertissetforthinthe2019ProxyStatementandisincorporatedhereinbyreference.

Theinformationconcerningproceduresbywhichstockholdersmayrecommenddirectornomineesissetforthinthe2019ProxyStatementandisincorporatedhereinbyreference.

Item11.ExecutiveCompensation

TheinformationrelatingtoexecutivecompensationandtheCompany'sCompensationCommitteeissetforthinthe2019ProxyStatementandisincorporatedhereinbyreference,providedthattheinformationunderthecaption"CompensationCommitteeReport"shallbedeemed"furnished"andshallnotbedeemed"filed"withthisreport,notdeemedincorporatedbyreferenceintoanyfilingundertheSecuritiesActof1933,asamended,exceptonlyasmaybeexpresslysetforthinanysuchfilingbyspecificreference.

Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters

Theinformationrelatingtosecurityownershipofmanagement,certainbeneficialowners,andtheCompany'sequityplansissetforthinthe2019ProxyStatementandisincorporatedhereinbyreference.

Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence

Theinformationrelatingtocertainrelationshipsandrelatedpartytransactionsanddirectorindependenceissetforthinthe2019ProxyStatementandisincorporatedhereinbyreference.

Item14.PrincipalAccountingFeesandServices

TheinformationrelatingtotheindependentregisteredpublicaccountingfirmfeesandservicesandtheCompany'spre-approvalpoliciesandproceduresforauditandnon-auditservicesprovidedbysuchaccountingfirmissetforthinthe2019ProxyStatementandisincorporatedhereinbyreference.

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PARTIV

Item15.ExhibitsandFinancialStatementSchedules

(a) (1)FinancialStatements

ThelistofconsolidatedfinancialstatementsandnotesrequiredbythisItem15(a)(1)issetforthinthe"IndextoFinancialStatements"onpageF-1ofthisAnnualReportonFrom10-K.

(2) FinancialStatementSchedules

Allscheduleshavebeenomittedbecausetherequiredinformationisincludedinthefinancialstatementsornotesthereto.

(b) Exhibits

Theexhibitslistedinthe"IndextoExhibits"belowarefiledaspartofthisAnnualReportonForm10-K.

Item16.Form10-KSummary

Notapplicable.

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IndextoExhibits

30

ExhibitNo. Description

2.1 AgreementandPlansofReorganization,datedasofSeptember1,2006,byandamongKBLHealthcareAcquisitionCorp.II,anditswhollyownedsubsidiary,SIIAcquisitionInc.,andSummerInfant,Inc.,SummerInfantEuropeLimited,SummerInfantAsia,Ltd.andtheirrespectivestockholders(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonSeptember5,2006,SECFileNo.000-51228)

2.2 PurchaseandSaleAgreement,datedMarch24,2009,betweenSummerInfant(USA),Inc.andFaithRealty

II,LLC(IncorporatedbyreferencetoExhibit2.1totheRegistrant'sQuarterlyReportonForm10-Q/AfiledonAugust18,2009,SECFileNo.001-33346)

2.3 LeaseAgreement,datedMarch24,2009,betweenSummerInfant(USA),Inc.andFaithRealtyII,LLC

(IncorporatedbyreferencetoExhibit2.2totheRegistrant'sQuarterlyReportonForm10-Q/AfiledonAugust18,2009,SECFileNo.001-33346)

2.4 StockPurchaseAgreement,datedasofMarch24,2011,byandamongtheRegistrant,SummerInfant

(USA),Inc.,BornFreeHoldingsLtd.,andeachstockholderofBornFreeHoldingsLtd.(IncorporatedbyreferencetoExhibit2.1totheRegistrant'sCurrentReportonForm8-KfiledonMarch28,2011,SECFileNo.001-33346)

3.1 AmendedandRestatedCertificateofIncorporation,asamended(IncorporatedbyreferencetoExhibit3.1tothe

Registrant'sAnnualReportonForm10-KfiledonFebruary22,2017) 3.2 AmendedandRestatedBylaws,asamendedthroughMay5,2016(IncorporatedbyreferencetoExhibit3.1tothe

Registrant'sCurrentReportonForm8-KfiledonMay9,2016) 4.1 SpecimenCommonStockCertificate(IncorporatedbyreferencetoExhibit4.2totheRegistrant'sForm8-Afiled

onMarch6,2007,SECFileNo.001-33346) 10.1 RegistrationRightsAgreementbyandamongtheRegistrant,JasonMacariandStevenGibree(Incorporatedby

referencetoExhibit10.9totheRegistrant'sCurrentReportonForm8-KfiledonSeptember5,2006,SECFileNo.000-51228)

10.2* 2006PerformanceEquityPlan(IncorporatedbyreferencetoAppendixAtotheRegistrant'sDefinitiveProxy

StatementonSchedule14AfiledonApril29,2008,SECFileNo.001-33346) 10.3 AmendedandRestatedLoanandSecurityAgreement,datedasofApril21,2015,amongSummerInfant,Inc.

andSummerInfant(USA),Inc.asBorrowers,theGuarantorsfromtimetotimepartythereto,CertainFinancialInstitutionsasLenders,BankofAmerica,N.A.asAgent,andMerrillLynch,Pierce,Fenner&SmithIncorporated,asSoleLeadArrangerandSoleBookRunner(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonApril22,2015)

10.4 AmendmenttoAmendedandRestatedLoanandSecurityAgreement,datedasofDecember10,2015,among

SummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonDecember14,2015)

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ExhibitNo. Description

10.5 SecondAmendmenttoAmendedandRestatedLoanandSecurityAgreement,datedasofMay24,2016,amongSummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sQuarterlyReportonForm10-QfiledonAugust2,2016)

10.6 ThirdAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement,datedasofFebruary17,

2017,amongSummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.14totheRegistrant'sAnnualReportonForm10-KfiledonFebruary22,2017)

10.7 FourthAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement,datedasofOctober16,

2017,amongSummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonOctober20,2017)

10.8 FifthAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement,datedasof

November29,2017,amongSummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.8totheRegistrant'sAnnualReportonForm10-KfiledonFebruary20,2018)

10.9 SixthAmendmenttoAmendedandRestatedLoanandSecurityAgreement,datedasofMarch1,2018,among

SummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonMarch2,2018)

10.10 SeventhAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement,datedasofApril24,

2018,amongSummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonApril25,2018)

10.11** SecondAmendedandRestatedLoanandSecurityAgreement,datedasofJune28,2018,amongSummer

Infant,Inc.andSummerInfant(USA),Inc.,asborrowers,theguarantorsfromtimetotimepartythereto,thefinancialinstitutionsfromtimetotimepartytheretoaslenders,andBankofAmerica,N.A.,asagentforthelenders(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonJune29,2018)

10.12** TermLoanandSecurityAgreement,datedasofJune28,2018,amongSummerInfant,Inc.andSummerInfant

(USA),Inc.,asborrowers,theguarantorsfromtimetotimepartythereto,thefinancialinstitutionsfromtimetotimepartytheretoaslenders,andPathlightCapitalLLC,asagentforthelenders(IncorporatedbyreferencetoExhibit10.2totheRegistrant'sCurrentReportonForm8-KfiledonJune29,2018)

10.13* 2012IncentiveCompensationPlan,asamended(IncorporatedbyreferencetoExhibit10.1totheRegistrant's

CurrentReportonForm8-KfiledonAugust5,2015)

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32

ExhibitNo. Description

10.14* SummerInfant,Inc.FormofIndemnificationAgreement(forofficersanddirectors)(IncorporatedbyreferencetoExhibit10.3totheRegistrant'sCurrentReportonForm8-KfiledonJanuary17,2014,SECFileNo.001-33346)

10.15 AmendmenttoLease,datedMay13,2015,byandbetweenFaithRealtyII,LLCandSummerInfant(USA),Inc.

(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonMay19,2015) 10.16 SecondAmendmenttoLease,datedJanuary22,2018,byandbetweenFaithRealtyII,LLCandSummerInfant

(USA),Inc.(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonJanuary26,2018)

10.17* EmploymentAgreement,datedasofJune27,2016,byandbetweentheRegistrantandMarkMessner

(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonJune29,2016) 10.18* SummerInfant,Inc.ChangeinControlPlan(IncorporatedbyreferencetoExhibit10.1totheRegistrant's

CurrentReportonForm8-KfiledonFebruary9,2018) 10.19*+ OfferLetterbyandbetweentheRegistrantandPaulFrancese 10.20*+ SeparationAgreementandGeneralReleasebyandbetweentheRegistrantandWilliamE.Mote,Jr. 21.1 ListofSubsidiaries(IncorporatedbyreferencetoExhibit21.1totheRegistrant'sAnnualReportonForm10-K

filedonMarch13,2013,SECFileNo.001-33346) 23.1+ ConsentofIndependentRegisteredPublicAccountingFirm 31.1+ CertificationofChiefExecutiveOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002 31.2+ CertificationofChiefFinancialOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002 32.1+ CertificationofChiefExecutiveOfficerpursuantto18U.S.C.Section1350(Section906oftheSarbanes-Oxley

Actof2002) 32.2+ CertificationofChiefFinancialOfficerpursuantto18U.S.C.Section1350(Section906oftheSarbanes-Oxley

Actof2002) 101.INS XBRLInstanceDocument 101.SCH XBRLTaxonomyExtensionSchemaDocument 101.CAL XBRLTaxonomyExtensionCalculationLinkbaseDocument 101.DEF XBRLTaxonomyExtensionDefinitionLinkbaseDocument 101.LAB XBRLTaxonomyExtensionLabelsLinkbaseDocument 101.PRE XBRLTaxonomyExtensionPresentationLinkbaseDocument

* Managementcontractorcompensatoryplanorarrangement.

** PortionsofthisExhibithavebeenomittedpursuanttoagrantofconfidentialtreatment.

+ Filedherewith.

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SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorizedonthe20thdayofFebruary2019.

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedatesindicated.

33

SUMMERINFANT,INC.

By: /s/MARKMESSNER

MarkMessnerChief Executive Officer

(Principal Executive Officer)

By: /s/PAULFRANCESE

PaulFranceseChief Financial Officer

(Principal Financial and Accounting Officer)

Name Title Date

/s/MARKMESSNER

MarkMessner ChiefExecutiveOfficerandDirector(Principal

ExecutiveOfficer) February20,2019

/s/PAULFRANCESE

PaulFrancese

SeniorVicePresidentandChiefFinancialOfficer(PrincipalFinancialandAccountingOfficer)

February20,2019

/s/ROBINMARINO

RobinMarino ChairwomanoftheBoard February20,2019

/s/EVELYND'AN

EvelynD'An Director February20,2019

/s/MARTINFOGELMAN

MartinFogelman Director February20,2019

/s/ALANMUSTACCHI

AlanMustacchi Director February20,2019

/s/ANDREWW.TRAIN

AndrewW.Train Director February20,2019

/s/STEPHENZELKOWICZ

StephenZelkowicz Director February20,2019

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SummerInfant,Inc.andSubsidiariesIndextoFinancialStatements

F-1

ReportofIndependentRegisteredPublicAccountingFirm F-2ConsolidatedBalanceSheets F-3ConsolidatedStatementsofOperations F-4ConsolidatedStatementsofComprehensiveLoss F-5ConsolidatedStatementsofCashFlows F-6ConsolidatedStatementsofStockholders'Equity F-7NotestoConsolidatedFinancialStatements F-8-F-27

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ReportofIndependentRegisteredPublicAccountingFirm

TotheStockholdersandtheBoardofDirectorsofSummerInfantInc.

OpinionontheFinancialStatements

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofSummerInfant,Inc.anditssubsidiaries(theCompany)asofDecember29,2018andDecember30,2017,therelatedconsolidatedstatementsofoperations,comprehensiveloss,stockholders'equityandcashflowsfortheyearsthenended,andtherelatednotestotheconsolidatedfinancialstatements(collectively,thefinancialstatements).Inouropinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyasofDecember29,2018andDecember30,2017,andtheresultsofitsoperationsanditscashflowsfortheyearsthenended,inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.

BasisforOpinion

ThesefinancialstatementsaretheresponsibilityoftheCompany'smanagement.OurresponsibilityistoexpressanopinionontheCompany'sfinancialstatementsbasedonouraudits.WeareapublicaccountingfirmregisteredwiththePublicCompanyAccountingOversightBoard(UnitedStates)(PCAOB)andarerequiredtobeindependentwithrespecttotheCompanyinaccordancewithU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.

WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement,whetherduetoerrororfraud.TheCompanyisnotrequiredtohave,norwereweengagedtoperform,anauditofitsinternalcontroloverfinancialreporting.AspartofourauditswearerequiredtoobtainanunderstandingofinternalcontroloverfinancialreportingbutnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany'sinternalcontroloverfinancialreporting.Accordingly,weexpressnosuchopinion.

Ourauditsincludedperformingprocedurestoassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetoerrororfraud,andperformingproceduresthatrespondtothoserisks.Suchproceduresincludedexamining,onatestbasis,evidenceregardingtheamountsanddisclosuresinthefinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethatourauditsprovideareasonablebasisforouropinion.

/s/RSMUSLLP

WehaveservedastheCompany'sauditorsince2010.

Boston,MassachusettsFebruary20,2019

F-2

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SummerInfant,Inc.andSubsidiaries

ConsolidatedBalanceSheets

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars,exceptshareamountsandparvaluepershare.

Seenotestoconsolidatedfinancialstatements.

F-3

December29,

2018 December30,

2017 ASSETS CURRENTASSETS Cashandcashequivalents $ 721 $ 681Tradereceivables,netofallowancefordoubtfulaccountsof$304and$1,622atDecember29,2018andDecember30,2017,respectively 31,223 36,640

Inventory,net 36,066 34,035Prepaidsandothercurrentassets 997 950TOTALCURRENTASSETS 69,007 72,306

Propertyandequipment,net 9,685 9,640Intangibleassets,net 13,300 14,046Deferredtaxassets,noncurrent 2,127 1,935Otherassets 97 103

TOTALASSETS $ 94,216 $ 98,030LIABILITIESANDSTOCKHOLDERS'EQUITY CURRENTLIABILITIES Accountspayable $ 28,120 $ 24,642Accruedexpenses 8,939 9,818Currentportionoflong-termdebt 875 3,250TOTALCURRENTLIABILITIES 37,934 37,710

Long-termdebt,lesscurrentportionandunamortizeddebtissuancecosts 44,641 43,772Otherliabilities 2,371 2,906

TOTALLIABILITIES 84,946 84,388STOCKHOLDERS'EQUITY PreferredStock,$0.0001parvalue,1,000,000authorized,noneissuedoroutstandingatDecember29,2018andDecember30,2017 — —

CommonStock$0.0001parvalue,authorized,issuedandoutstandingof49,000,000,19,092,251,and18,820,602atDecember29,2018and49,000,000,18,901,386,and18,629,737atDecember30,2017,respectively 2 2

TreasuryStockatcost(271,649sharesatDecember29,2018andDecember30,2017) (1,283) (1,283)Additionalpaid-incapital 77,396 76,848Accumulateddeficit (63,885) (59,634)Accumulatedothercomprehensiveloss (2,960) (2,291)TOTALSTOCKHOLDERS'EQUITY 9,270 13,642

TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY $ 94,216 $ 98,030

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SummerInfant,Inc.andSubsidiaries

ConsolidatedStatementsofOperations

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars,exceptshareandpershareamounts.

Seenotestoconsolidatedfinancialstatements.

F-4

Forthefiscalyearended

December29,

2018 December30,

2017 Netsales $ 173,619 $ 189,869Costofgoodssold 118,500 129,674Grossprofit 55,119 60,195Generalandadministrativeexpenses 38,880 38,878Sellingexpenses 12,430 14,229Depreciationandamortization 4,182 4,197Operating(loss)income (373) 2,891

Interestexpense,net 4,442 2,968Lossbefore(benefit)provisionforincometaxes (4,815) (77)

(Benefit)provisionforincometaxes (564) 2,172Netloss $ (4,251) $ (2,249)

Netlosspershare,basicanddiluted $ (0.23) $ (0.12)Weightedaveragesharesoutstanding,basicanddiluted 18,744,424 18,573,398

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TableofContents

SummerInfant,Inc.andSubsidiaries

ConsolidatedStatementsofComprehensiveLoss

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars.

Seenotestoconsolidatedfinancialstatements.

F-5

Forthefiscalyear

ended

December29,

2018 December30,

2017 Netloss $ (4,251) $ (2,249)Othercomprehensive(loss)income: Foreigncurrencytranslationadjustments (669) 571

Comprehensiveloss $ (4,920) $ (1,678)

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SummerInfant,Inc.andSubsidiaries

ConsolidatedStatementsofCashFlows

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars.

Seenotestoconsolidatedfinancialstatements.

F-6

Forthefiscalyear

ended

December29,

2018 December30,

2017 Cashflowsfromoperatingactivities: Netloss $ (4,251) $ (2,249)Adjustmentstoreconcilenetlosstonetcashprovidedbyoperatingactivities: Baddebtexpense 1,963 1,558Depreciationandamortization 4,182 4,197Stock-basedcompensation 523 494Writeoffofunamortizeddeferredfinancingcosts 518 —Deferredincometaxes (193) 1,911Changesinassetsandliabilities,netofeffectsofacquisitions Decrease(increase)inaccountsreceivable 3,035 (3,859)(Increase)decreaseininventory (2,524) 2,353(Increase)decreaseinprepaidsandothercurrentassets (71) 790Decreaseinotherassets (42) 19Increase(decrease)inaccountspayableandaccruedexpenses 2,406 (4,003)

Netcashprovidedbyoperatingactivities 5,546 1,211Cashflowsfrominvestingactivities: Acquisitionsofpropertyandequipment (3,472) (3,103)Netcashusedininvestingactivities (3,472) (3,103)Cashflowsfromfinancingactivities: RepaymentofPriorTermLoanFacility (5,000) (2,000)RepaymentofPriorFILOFacility (1,250) (2,500)Paymentoffinancingfeesandexpenses (1,958) —ProceedsfromNewTermLoanFacility 17,500 —RepaymentofNewTermLoanFacility (219) —Netborrowings(repayments)onrevolvingfacilities (11,097) 5,815Issuanceofcommonstockuponexerciseofstockoptions 25 6Netcash(usedin)providedbyfinancingactivities (1,999) 1,321Effectofexchangeratechangesoncashandcashequivalents (35) 253Netincrease(decrease)incashandcashequivalents 40 (318)Cashandcashequivalentsatbeginningofyear 681 999Cashandcashequivalentsatendofyear $ 721 $ 681Supplementaldisclosureofcashflowinformation: Cashpaidduringtheyearforinterest $ 2,944 $ 2,274Cashpaidduringtheyearforincometaxes $ 280 $ 358

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ConsolidatedStatementsofStockholders'Equity

FortheFiscalYearsEndedDecember29,2018andDecember30,2017

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars,exceptshareandpersharedata.

Seenotestoconsolidatedfinancialstatements.

F-7

CommonStock

AdditionalPaidinCapital

TreasuryStock

RetainedEarnings

AccumulatedComprehensive

Loss TotalEquity

Shares Amount BalanceatDecember31,2016 18,506,617 $ 2 $ 76,348 $ (1,283) $ (57,385) $ (2,862) $ 14,820Issuanceofcommonstockuponvestingofrestrictedshares 118,620

Issuanceofcommonstockuponexerciseofstockoptions 4,500 6 6

Stock-basedcompensation 494 494Netlossfortheyear (2,249) (2,249)Foreigncurrencytranslationadjustment 571 571

BalanceatDecember30,2017 18,629,737 $ 2 $ 76,848 $ (1,283) $ (59,634) $ (2,291) $ 13,642Issuanceofcommonstockuponvestingofrestrictedshares 170,315

Issuanceofcommonstockuponexerciseofstockoptions 20,550 25 25

Stock-basedcompensation 523 523Netlossfortheyear (4,251) (4,251)Foreigncurrencytranslationadjustment (669) (669)

BalanceatDecember29,2018 18,820,602 $ 2 $ 77,396 $ (1,283) $ (63,885) $ (2,960) $ 9,270

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

Nature of Operations

TheCompanydesigns,marketsanddistributesbrandedjuvenilehealth,safetyandwellnessproductsthataresoldgloballytolargenationalretailersaswellasindependentretailers,primarilyinNorthAmerica.TheCompanycurrentlymarketsitsproductsinseveralproductcategoriesincludingmonitoring,safety,nursery,andbabygear.MostproductsaresoldunderourcorebrandnamesofSummer™,SwaddleMe®,andBornFree®.

Basis of Presentation and Principles of Consolidation

ItistheCompany'spolicytoprepareitsfinancialstatementsontheaccrualbasisofaccountinginconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Theconsolidatedfinancialstatementsincludetheaccountsofitswholly-ownedsubsidiaries.Allsignificantintercompanyaccountsandtransactionshavebeeneliminatedintheconsolidation.

AlldollaramountsincludedintheNotestoConsolidatedFinancialStatementsareinthousandsofU.S.dollarsexceptshareandpershareamounts.

Fiscal Year

TheCompany'sfiscalyearendsontheSaturdayclosesttoDecember31ofeachcalendaryear.TherewerefiftytwoweeksinthefiscalyearsendedDecember29,2018andDecember30,2017.

SummaryofSignificantAccountingPolicies

Revenue Recognition

AsofDecember31,2017,theCompanyadoptedFASBASCTopic606,Revenue from Contracts with Customers ("ASC606").Thenewguidancesetsforthanewfive-steprevenuerecognitionmodelwhichreplacesthepriorrevenuerecognitionguidanceinitsentiretyandisintendedtoeliminatenumerousindustry-specificpiecesofrevenuerecognitionguidancethathavehistoricallyexistedinU.S.GAAP.Theunderlyingprincipleofthenewstandardisthatabusinessorotherorganizationwillrecognizerevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectswhatitexpectstoreceiveinexchangeforthegoodsorservices.Thestandardalsorequiresmoredetaileddisclosuresandprovidesadditionalguidancefortransactionsthatwerenotaddressedcompletelyintheprioraccountingguidance.

TheCompanyreviewedallcontractsatthedateofinitialapplicationandelectedtousethemodifiedretrospectivetransitionmethod,wherethecumulativeeffectoftheinitialapplicationisrecognizedasanadjustmenttoopeningretainedearningsatDecember31,2017.Therefore,comparativepriorperiodshavenotbeenadjustedandcontinuetobereportedunderFASBASCTopic605,RevenueRecognition,("ASC605").Theimpactoftheadoptionwasimmaterial.RefertoNote2foradditionalinformationregardingtheCompany'sadoptionofASC606.

TheCompany'sprincipalactivitiesfromwhichitgeneratesitsrevenueisproductsales.TheCompanyhasonereportablesegmentofbusiness.

Revenueismeasuredbasedonconsiderationspecifiedinacontractwithacustomer.TheCompanyrecognizesrevenuewhenitsatisfiesaperformanceobligationinacontractbytransferringcontroloveraproducttoacustomerwhenproductdeliveryoccurs.Considerationistypicallypaid

F-8

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

approximately60daysfromthetimecontrolistransferred.Taxesassessedbyagovernmentalauthoritythatarebothimposedonandconcurrentwithaspecificrevenue-producingtransaction,thatarecollectedbytheCompanyfromacustomer,areexcludedfromrevenue.Shippingandhandlingcostsassociatedwithoutboundfreightaftercontroloveraproducthastransferredtoacustomerareaccountedforasafulfillmentcostandareincludedinsellingcosts.

Aperformanceobligationisapromiseinacontracttotransferadistinctproducttothecustomer,whichfortheCompanyistransferofjuvenileproductstoitscustomers.Thetransactionpriceofacontractisallocatedtoeachdistinctperformanceobligationandrecognizedasrevenuewhenorasthecustomerreceivesthebenefitoftheperformanceobligation.

AtransactionpriceistheamountofconsiderationtheCompanyexpectstoreceiveunderthearrangement.TheCompanyisrequiredtoestimatevariableconsideration(ifany)andtofactorthatestimationintothedeterminationofthetransactionprice.TheCompanyconductsitsbusinesswithcustomersthroughvalidpurchaseorsalesorderseachofwhichisconsideredaseparatecontractbecauseindividualordersarenotinterdependentononeanother.Producttransactionpricesonapurchaseorsaleorderarediscreteandstand-alone.Purchaseorsalesordersmaybeissuedundereitheracustomermasterserviceagreementoraresellerallowanceagreement.Purchaseorsalesorders,masterserviceagreements,andresellerallowanceagreementswhicharespecificanduniquetoeachcustomers,mayincludeproductpricediscounts,markdownallowances,returnallowances,and/orvolumerebateswhichreducetheconsiderationduefromcustomers.Variableconsiderationisestimatedusingthemostlikelyamountmethod,whichisbasedonourhistoricalexperienceaswellascurrentinformationsuchassalesforecasts.

ContractsmayalsoincludecooperativeadvertisingarrangementswheretheCompanyallowsadiscountfrominvoicedproductamountsinexchangeforcustomerpurchasedadvertisingthatfeaturestheCompany'sproducts.Theseallowancesaregenerallybaseduponproductpurchasesorspecificadvertisingcampaigns.Suchallowancesareaccruedwhentherelatedrevenueisrecognized.Thesecooperativeadvertisingarrangementsprovideadistinctbenefitandfairvalueandareaccountedforasdirectsellingexpenses.

Use of Estimates

ThepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequiresmanagementtomakeestimatesandassumptionsthataffectcertainreportedamountsanddisclosures.Theseestimatesarebasedonmanagement'sbestknowledgeofcurrenteventsandactionstheCompanymayundertakeinthefuture.Accordingly,actualresultscoulddifferfromthoseestimates.

Cash and Cash Equivalents

Cashflows,cashandcashequivalentsincludemoneymarketaccountsandinvestmentswithanoriginalmaturityofthreemonthsorless.Attimes,theCompanypossessescashbalancesinexcessoffederally-insuredlimits.

F-9

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

Trade Receivables

Tradereceivablesarecarriedattheiroutstandingunpaidprincipalbalancesreducedbyanallowancefordoubtfulaccounts.TheCompanyestimatesdoubtfulaccountsbasedonhistoricalbaddebts,factorsrelatedtospecificcustomers'abilitytopayandcurrenteconomictrends.TheCompanywritesoffaccountsreceivableagainsttheallowancewhenabalanceisdeterminedtobeuncollectible.Amountsareconsideredtobeuncollectablebaseduponhistoricalexperienceandmanagement'sevaluationofoutstandingaccountsreceivable.

Changesintheallowancefordoubtfulaccountsareasfollows:

Inventory Valuation

Inventoryiscomprisedmostlyoffinishedgoodsandsomecomponentpartsandisstatedatthelowerofcostusingthefirst-in,first-out(FIFO)method,ornetrealizablevalue.TheCompanyregularlyreviewsslow-movingandexcessinventories,andwritesdowninventoriestonetrealizablevalueiftheultimateexpectednetproceedsfromthedisposalsofexcessinventoryarelessthanthecarryingcostofthemerchandise.

Property and Equipment

Propertyandequipmentarerecordedatcost.TheCompanyownsthetoolsandmoldsusedintheproductionofitsproductsbythirdpartymanufacturers.Capitalizedmoldcostsincludecostsincurredforthepre-productiondesignanddevelopmentofthemolds.

Depreciationisprovidedovertheestimatedusefullivesoftherespectiveassetsusingeitherstraight-lineoracceleratedmethods.

Long-Lived Assets with Finite Lives

TheCompanyreviewslong-livedassetswithfinitelivesforimpairmentonanassetgrouplevelwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofalong-livedassetmaynotberecoverable.Anassetisconsideredtobeimpairedwhenitscarryingamountexceedsboththesumoftheundiscountedfuturenetcashflowsexpectedtoresultfromtheuseoftheassetanditseventualdispositionandtheassets'fairvalue.Long-livedassetsincludepropertyandequipmentandfinite-livedintangibleassets.Theamountofimpairmentloss,ifany,ischargedbytheCompanytocurrentoperations.

F-10

Forthe

fiscalyearended

December29,

2018 December30,

2017 Allowancefordoubtfulaccounts,beginningofperiod $ 1,622 $ 64Chargestocostsandexpenses 1,963 1,646Accountwrite-offsandother (3,281) (88)Allowancefordoubtfulaccounts,endofperiod $ 304 $ 1,622

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

Indefinite-Lived Intangible Assets

TheCompanyaccountsforintangibleassetsinaccordancewithaccountingguidancethatrequiresthatintangibleassetswithindefiniteusefullivesbetestedannuallyforimpairmentandmorefrequentlyifeventsorchangesincircumstancesindicatethattheassetmightbeimpaired.TheCompany'sannualimpairmenttestingisconductedinthefourthquarterofeveryyear.

TheCompanytestsindefinite-livedintangibleassetsforimpairmentbycomparingtheasset'sfairvaluetoitscarryingamount.Ifthefairvalueislessthanthecarryingamount,theexcessofthecarryingamountoverfairvalueisrecognizedasanimpairmentchargeandtheadjustedcarryingamountbecomestheassets'newcostbasis.

Managementalsoevaluatestheremainingusefullifeofanintangibleassetthatisnotbeingamortizedeachreportingperiodtodeterminewhethereventsandcircumstancescontinuetosupportanindefiniteusefullife.Ifanintangibleassetthatisnotbeingamortizedissubsequentlydeterminedtohaveafiniteusefullife,itisamortizedprospectivelyoveritsestimatedremainingusefullife.

Fair Value Measurements

TheCompanyfollowsASC820,"FairValueMeasurementsandDisclosures"whichincludesaframeworkformeasuringfairvalueandexpandedrelateddisclosures.Broadly,theframeworkrequiresfairvaluetobedeterminedbasedontheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliability(anexitprice)intheprincipalormostadvantageousmarketfortheassetorliabilityinanorderlytransactionbetweenmarketparticipants.Thestandardestablishedathree-levelvaluationhierarchybaseduponobservableandnon-observableinputs.

Observableinputsreflectmarketdataobtainedfromindependentsources,whileunobservableinputsreflectourmarketassumptions.Preferenceisgiventoobservableinputs.Thesetwotypesofinputscreatethefollowingfairvaluehierarchy:

Level1—Quotedpricesforidenticalinstrumentsinactivemarkets.

Level2—Quotedpricesforsimilarinstrumentsinactivemarkets;quotedpricesforidenticalorsimilarinstrumentsinmarketsthatarenotactive;andmodel-derivedvaluationswhoseinputsareobservableorwhosesignificantvaluedriversareobservable.

Level3—Significantinputstothevaluationmodelareunobservable.

TheCompanymaintainspoliciesandprocedurestovalueinstrumentsusingthebestandmostrelevantdataavailable.Inaddition,theCompanyutilizesthirdpartyspecialiststhatreviewvaluation,includingindependentpricevalidation.

TheCompany'sfinancialinstrumentsincludecashandcashequivalents,accountsandnotesreceivable,accountspayable,accruedexpenses,andshortandlong-termborrowings.Becauseoftheirshortmaturity,thecarryingamountsofcashandcashequivalents,accountsandnotesreceivable,accountspayable,andaccruedexpensesapproximatefairvalue.ThecarryingvalueoftheCompany'sdebtapproximatesfairvaluesincethestatedrateissimilartoratescurrentlyavailabletotheCompanyfordebtwithsimilartermsandremainingmaturities.

TheCompany'sassetsmeasuredatfairvalueonanonrecurringbasisincludelong-livedassetsandfinite-livedintangibles.TheCompanytestsitsindefinite-livedassetsforimpairmentatleastannually

F-11

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

andwhenevereventsorchangesincircumstancesindicatethatthecarryingvaluemaynotberecoverableorthatthecarryingvaluemayexceeditsfairvalue.TheresultingfairvaluemeasurementsareconsideredtobeLevel3inputs.

Income taxes

Incometaxesarecomputedusingtheassetandliabilitymethodofaccounting.Undertheassetandliabilitymethod,adeferredtaxassetorliabilityisrecognizedforestimatedfuturetaxeffectsattributabletotemporarydifferencesandcarryforwards.Themeasurementofdeferredincometaxassetsisadjustedbyavaluationallowance,ifnecessary,torecognizefuturetaxbenefitsonlytotheextent,basedonavailableevidence,itismorelikelythannotthatsuchbenefitswillberealized.

TheCompanyfollowstheapplicableguidancerelativetouncertaintaxpositions.Thisstandardprovidesdetailedguidanceforthefinancialstatementrecognition,measurementanddisclosureofuncertaintaxpositionsrecognizedinthefinancialstatements.Uncertaintaxpositionsmustmeetarecognitionthresholdofmore-likely-than-notinorderforthosetaxpositionstoberecognizedinthefinancialstatements.

Translation of Foreign Currencies

TheassetsandliabilitiesoftheCompany'sEuropean,Canadian,Israeli,andAsianoperations,eachofwhichusesitslocalcurrencyasthetheirfunctionalcurrency,havebeentranslatedintoU.S.dollarsatyear-endexchangeratesandtheincomeandexpenseaccountsofthesesubsidiarieshavebeentranslatedataverageratesprevailingduringeachrespectiveyear.Resultingtranslationadjustmentsaremadetoaseparatecomponentofstockholders'equitywithinaccumulatedothercomprehensiveloss.Foreignexchangetransactiongainsandlossesareincludedintheaccompanyingconsolidatedstatementsofoperations.

Shipping Costs

Shippingcoststocustomersareincludedinsellingexpensesandamountedtoapproximately$2,045and$1,591forthefiscalyearsendedDecember29,2018andDecember30,2017,respectively.

Advertising Costs

TheCompanychargesadvertisingcoststosellingexpenseasincurred.Advertisingexpense,whichconsistsprimarilyofpromotionalandcooperativeadvertisingallowancesprovidedtocustomers,wasapproximately$9,555and$11,970forthefiscalyearsendedDecember29,2018andDecember30,2017,respectively.

Segment Information

Operatingsegmentsareidentifiedascomponentsofanenterpriseaboutwhichseparate,discretefinancialinformationisavailableforevaluationbythechiefoperatingdecision-maker,ordecision-makinggroup,inmakingdecisionsonhowtoallocateresourcesandassessperformance.TheCompanyviewsitsoperationsandmanagesitsbusinessasoneoperatingsegmentutilizinganomni-channeldistributionstrategy.

F-12

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

Net Loss Per Share

Basicearningspershareiscalculatedbydividingnetlossfortheperiodbytheweightedaveragenumberofcommonstockoutstandingduringtheperiod.

DilutedlosspersharefortheCompanyiscomputedbydividingnetlossbythedilutiveweightedaveragesharesoutstandingwhichincludes:thedilutiveimpact(usingthe"treasurystock"method)of"inthemoney"stockoptionsandunvestedrestrictedsharesissuedtoemployees.Optionstopurchase1,108,023and1,052,026sharesoftheCompany'scommonstockand271,975and331,516ofrestrictedshareswerenotincludedinthecalculation,duetothefactthattheseinstrumentswereanti-dilutiveforthefiscalyearsendedDecember29,2018andDecember30,2017,respectively.

New Accounting Pronouncements

InFebruary2016,theFASBissuedASU2016-02,"Leases(Topic842),"("newleasestandard").Thenewleasestandardwillsupersedethecurrentguidanceforleaseaccountingandwillrequirelesseestorecognizeright-to-useassetsandrelatedleaseliabilitiesonthebalancesheetforleaseswithleasetermsgreaterthantwelvemonths.Theobjectiveistoincreasetransparencyandcomparabilityamongorganizationsregardingleaseaccountinganddisclosingkeyinformationaboutleasingarrangements.InJuly2018,FASBissuedASU2018-10,CodificationImprovementstoTopic842(Leases),whichprovidesnarrowamendmentstoclarifyhowtoapplycertainaspectsofthenewleasestandard.Theamendmentsincludedprovidinganoptionalmodifiedretrospectivetransitionmethodthatallowstheinitialapplicationoftheleasestandardattheadoptiondateusingacumulative-effectadjustmenttotheopeningbalancesheetofretainedearningsintheperiodofadoption.TheCompanyadoptedthisstandardonDecember30,2018utilizingtheoptionalmodifiedretrospectivetransitionmethod.Aspartoftransition,theCompanyelectedthepackageoftransitionalpracticalexpedientstonotreassessifacontractcontainsalease,leaseclassification,orinitialdirectcostforleases.Uponadoptionofthenewleasingstandard,weexpecttorecognizealeaseliabilityofapproximately$7,000andrelatedright-to-useassetonourconsolidatedbalancesheetofapproximately$6,400.Theadoptionofthenewleasestandardwillhaveanimmaterialimpacttoourconsolidatedstatementofincome.

Managementdoesnotbelievethatanyotherrecentlyissued,butnotyeteffective,accountingstandardsifcurrentlyadoptedwouldhaveamaterialeffectontheaccompanyingfinancialstatements.

2.REVENUE

Disaggregation of Revenue

TheCompany'srevenueisprimarilyfromdistinctfixed-priceproductsalesinthejuvenileproductmarket,tosimilarcustomersandchannelsutilizingsimilartypesofcontractsthatareshortterminnature(lessthanoneyear).TheCompanydoesnotsellserviceagreementsorgoodsoveraperiodoftimeanddoesnotsellorutilizecustomerfinancingarrangementsortime-and-materialcontracts.

F-13

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

2.REVENUE(Continued)

Thefollowingisatablethatpresentsnetsalesbygeographicalarea:

AllOtherconsistsofCanada,Europe,SouthAmerica,Mexico,Asia,andtheMiddleEast.

Contract Balances

TheCompanydoesnothaveanycontractassetssuchaswork-in-processorcontractliabilitiessuchascustomeradvances.AlltradereceivablesontheCompany'scondensedconsolidatedbalancesheetarefromcontractswithcustomers.

Contract Costs

Costsincurredtoobtainacontractarecapitalizedunlessshortterminnature.Asapracticalexpedient,coststoobtainacontractthatareshortterminnatureareexpensedasincurred.Allcontractcostsincurredin2018fallundertheprovisionsofthepracticalexpedientandhavethereforebeenexpensed.

3.PROPERTYANDEQUIPMENT

Propertyandequipment,atcost,consistedofthefollowing:

Propertyandequipmentincludedamountsacquiredundercapitalleasesofapproximately$589and$0atDecember29,2018andDecember30,2017,respectively,withrelatedaccumulateddepreciationofapproximately$31and$0,respectively.Totaldepreciationexpensewas$3,436and$3,430forthefiscalyearsendedDecember29,2018andDecember30,2017,respectively.

F-14

Forthe

fiscalyearended

December29,

2018 December30,

2017 UnitedStates $ 145,534 $ 157,159AllOther 28,085 32,710

$ 173,619 $ 189,869

Forthefiscalyear

ended

December29,

2018 December30,

2017 Depreciation/

AmortizationPeriodComputer-related $ 4,556 $ 3,994 5yearsTools,dies,prototypes,andmolds 28,361 28,445 1-5yearsBuilding 4,156 4,156 30yearsOther 7,148 6,246 1-15years

44,221 42,841 Less:accumulateddepreciation 34,536 33,201

Propertyandequipment,net $ 9,685 $ 9,640

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

4.INTANGIBLEASSETS

Intangibleassetsconsistedofthefollowing:

Theamortizationperiodforthemajorityoftheintangibleassetsrangesfrom5to20yearsforthoseassetsthathaveanestimatedlife;certainassetshaveindefinitelives(abrandname).Totalofintangiblesnotsubjecttoamortizationamountedto$8,400and$8,400forthefiscalyearsendedDecember29,2018andDecember30,2017,respectively.

Amortizationexpenseamountedto$746and$768forthefiscalyearsendedDecember29,2018andDecember30,2017,respectively.

TheCompanyperformeditsannualindefinite-livedintangibleassetimpairmentanalysisinthefourthfiscalquarter.NoassetimpairmentwasrecordedforthefiscalyearsendedDecember29,2018andDecember30,2017.

Estimatedamortizationexpensefortheremainingdefinite-livedassetsforthenextfiveyearsisasfollows:

5.DEBT

Bank of America Credit Facility. OnJune28,2018,theCompanyandSummerInfant(USA),Inc.,asborrowers,enteredintoaSecondAmendedandRestatedLoanandSecurityAgreementwithBankofAmerica,N.A.,asagent,thefinancialinstitutionspartytotheagreementfromtimetotimeaslenders,andcertainsubsidiariesoftheCompanyasguarantors(the"RestatedBofAAgreement").TheRestatedBofAAgreementreplacedtheCompany'spriorcreditfacilitywithBankofAmerica,andprovidesfora$60,000,asset-basedrevolvingcreditfacility,witha$5,000letterofcreditsub-linefacility.Thetotalborrowingcapacityisbasedonaborrowingbase,whichisdefinedas85%ofeligiblereceivablesplusthelesserof(i)70%ofthevalueofeligibleinventoryor(ii)85%ofthenetorderlyliquidationvalueofeligibleinventory,lessapplicablereserves.Thescheduledmaturitydateofloans

F-15

Forthe

fiscalyearended

December29,

2018 December30,

2017 Brandnames $ 11,819 $ 11,819Patentsandlicenses 3,766 3,766Customerrelationships 6,946 6,946Otherintangibles 1,882 1,882

24,413 24,413Less:accumulatedamortization (11,113) (10,367)Intangibleassets,net $ 13,300 $ 14,046

FiscalYearending 2019 $ 7382020 4882021 4882022 4882023 488

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

5.DEBT(Continued)

undertheRestatedBofAAgreementisJune28,2023(subjecttocustomaryearlyterminationprovisions).

AllobligationsundertheRestatedBofAAgreementaresecuredbysubstantiallyalltheassetsoftheCompany,includingafirstprioritylienonaccountsreceivableandinventoryandajuniorlienoncertainassetssubjecttothetermloanlender'sfirstpriorityliendescribedbelow.SummerInfantCanadaLimitedandSummerInfantEuropeLimited,subsidiariesoftheCompany,areguarantorsundertheRestatedBofAAgreement.Proceedsfromtheloanswereusedtosatisfyexistingdebt,payfeesandtransactionexpensesassociatedwiththeclosingoftheRestatedBofAAgreementandmaybeusedtopayobligationsundertheRestatedBofAAgreement,andforlawfulcorporatepurposes,includingworkingcapital.

LoansundertheRestatedBofAAgreementbearinterest,attheCompany'soption,atabaserateoratLIBOR,plusapplicablemarginsbasedonaveragequarterlyavailabilityundertheRestatedBofAAgreement.Interestpaymentsareduemonthly,payableinarrears.TheCompanyisalsorequiredtopayanannualnon-usefeeonunusedamounts,aswellasothercustomaryfeesasaresetforthintheRestatedBofAAgreement.TheRestatedBofAAgreementcontainscustomaryaffirmativeandnegativecovenants.Amongotherrestrictions,theCompanyisrestrictedinitsabilitytoincuradditionaldebt,makeacquisitionsorinvestments,disposeofassets,ormakedistributionsunlessineachcasecertainconditionsaresatisfied.Inaddition,ifavailabilityfallsbelowaspecifiedamount,aspringingcovenantwouldbeineffectrequiringtheCompanytomaintainafixedchargecoverageratioattheendofeachfiscalmonthofatleast1.0to1.0forthetwelve-monthperiodthenended.

TheRestatedBofAAgreementalsocontainscustomaryeventsofdefault,includingacrossdefaultwiththeTermLoanandtheoccurrenceofachangeofcontrol.Intheeventofadefault,alloftheobligationsoftheCompanyanditssubsidiariesundertheRestatedBofAAgreementmaybedeclaredimmediatelydueandpayable.Forcertaineventsofdefaultrelatingtoinsolvencyandreceivership,alloutstandingobligationsbecomedueandpayable.

AsofDecember29,2018,undertheRestatedBofAAgreement,therateonbase-rateloanswas6.50%andtherateonLIBOR-rateloanswas4.50%.TheamountoutstandingontheRestatedBofAAgreementatDecember29,2018was$30,630.TotalborrowingcapacityatDecember29,2018was$42,717andborrowingavailabilitywas$12,087.

PriortoenteringintotheRestatedBofAAgreement,theCompanyandSummerInfant(USA),Inc.werepartiestoanamendedandrestatedloanandsecurityagreementwithBankofAmerica,N.A.,asagent,whichprovidedforanasset-basedcreditfacility(the"PriorCreditFacility").ThePriorCreditFacilityconsistedofa$60,000asset-basedrevolvingcreditfacility,witha$10,000letterofcreditsub-linefacility(the"RevolvingFacility"),a$5,000"firstinlastout"revolvingcreditfacility(the"FILOFacility")anda$10,000termloanfacility(the"TermLoanFacility").ThetotalborrowingcapacityundertheRevolvingFacilitywasbasedonaborrowingbase,generallydefinedas85%ofthevalueofeligibleaccountsplusthelesserof(i)70%ofthevalueofeligibleinventoryor(ii)85%ofthenetorderlyliquidationvalueofeligibleinventory,lessreserves.ThetotalborrowingcapacityundertheFILOFacilitywasbasedonaborrowingbase,generallydefinedasaspecifiedpercentageofthevalueofeligibleaccountsthatstepsdownovertime,plusaspecifiedpercentageofthevalueofeligibleinventorythatstepsdownovertime.Asnotedabove,allobligationsundertheRevolvingFacilityandTermLoanFacilitywererepaidinconnectionwiththeRestatedBofAAgreementandTermLoanAgreementdescribedbelow.LoansundertheFILOFacilitywererepaidApril21,2018.

F-16

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

5.DEBT(Continued)

Term Loan Agreement. OnJune28,2018,theCompanyandSummerInfant(USA),Inc.,asborrowers,enteredintoaTermLoanandSecurityAgreement(the"TermLoanAgreement")withPathlightCapitalLLC,asagent,eachlenderfromtimetotimeapartytotheTermLoanAgreement,andcertainsubsidiariesoftheCompanyasguarantors,providingfora$17,500termloan(the"TermLoan").ProceedsfromtheTermLoanwereusedtosatisfyexistingdebt,payfeesandtransactionexpensesassociatedwiththeclosingoftheTermLoanandmaybeusedtopayobligationsundertheTermLoanAgreement,andforlawfulcorporatepurposes,includingworkingcapital.TheTermLoanissecuredbyalienoncertainassetsoftheCompany,includingafirstprioritylienonintellectualproperty,machineryandequipment,andapledgeof(i)100%oftheownershipinterestsofdomesticsubsidiariesand(ii)65%oftheownershipinterestsincertainforeignsubsidiariesoftheCompany,andajuniorlienoncertainassetssubjecttotheliensundertheRestatedBofAAgreementdescribedabove.TheTermLoanmaturesonJune28,2023.SummerInfantCanadaLimitedandSummerInfantEuropeLimited,subsidiariesoftheCompany,areguarantorsundertheTermLoanAgreement.

TheprincipaloftheTermLoanwillberepaid,onaquarterlybasis,ininstallmentsof$219,withthefirstinstallmentpaidonDecember1,2018,untilpaidinfullontermination.TheTermLoanbearsinterestatanannualrateequaltoLIBOR,plus9.0%.Interestpaymentsareduemonthly,inarrears.ObligationsundertheTermLoanAgreementarealsosubjecttorestrictionsonprepaymentandaprepaymentpenaltyiftheTermLoanisrepaidpriortothethirdanniversaryoftheclosingoftheTermLoan.

TheTermLoanAgreementcontainscustomaryaffirmativeandnegativecovenantsthataresubstantiallythesameastheRestatedBofAAgreement.Inaddition,ifavailabilityfallsbelowaspecifiedamount,thentheCompanymustmaintainafixedchargecoverageratioattheendofeachfiscalmonthofatleast1.0to1.0forthetwelve-monthperiodthenended.TheTermLoanAgreementalsocontainseventsofdefault,includingacrossdefaultwiththeRestatedBofAAgreementandtheoccurrenceofachangeofcontrol.Intheeventofadefault,alloftheobligationsoftheCompanyanditssubsidiariesundertheTermLoanAgreementmaybedeclaredimmediatelydueandpayable.Forcertaineventsofdefaultrelatingtoinsolvencyandreceivership,alloutstandingobligationsbecomedueandpayable.

AsofDecember29,2018,theinterestrateontheTermLoanwas11.74%.TheamountoutstandingontheTermLoanatDecember29,2018was$17,281.

Therefinancingtransactionwasevaluatedtodeterminetheproperaccountingtreatmentforthetransaction.Accordingly,debtextinguishmentaccountingwasusedtoaccountfortheprepaymentofthepriortermloanfacilityandtoprepaytwomembersofthelendergroupforthepriorcreditfacilitywithBankofAmericathatdidnotcontinueintheamendedandrestatedcreditfacility,resultinginthewriteoffof$518inremainingunamortizeddeferredfinancingcostsforthetwelvemonthsendedDecember29,2018.Debtmodificationaccountingwasusedfortheremainingmemberofthelendergroupforthepriorcreditfacility,resultinginremainingunamortizeddeferredfinancingcostsof$675andthenewfinancingcostsof$1,958tobecapitalizedandamortizedoverthelifeofthenewcreditfacility.

F-17

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

5.DEBT(Continued)

Aggregatematuritiesofbankdebtrelatedtothecreditfacility:

Unamortizeddebtissuancecostswere$2,395atDecember29,2018and$1,127atDecember30,2017,andarepresentedasadirectdeductionoflong-termdebtontheconsolidatedbalancesheets.

Sale-Leaseback

OnMarch24,2009,SummerInfant(USA),Inc.,("SummerUSA")theCompany'swhollyownedsubsidiary,enteredintoadefinitiveagreementwithFaithRealtyII,LLC,aRhodeIslandlimitedliabilitycompany("FaithRealty")(theownerofwhichisJasonMacari,theformerChiefExecutiveOfficer,formerdirectoroftheCompany,andcurrentinvestor),pursuanttowhichFaithRealtypurchasedthecorporateheadquartersoftheCompanylocatedat1275ParkEastDrive,Woonsocket,RhodeIsland(the"Headquarters"),for$4,052andsubsequentlyleasedtheHeadquartersbacktoSummerUSAforanannualrentof$390duringtheinitialsevenyeartermofthelease,payablemonthlyandinadvance.Theoriginalleasewastoexpireontheseventhanniversaryofitscommencement.Mr.MacarihadgivenapersonalguaranteetosecuretheFaithRealtydebtonitsmortgage;therefore,duetohiscontinuinginvolvementinthebuildingtransaction,thetransactionhadbeenrecordedasafinancinglease,withnogainrecognition.

OnFebruary25,2009,theCompany'sBoardofDirectors(withMr.Macariabstainingfromsuchaction)approvedthesaleleasebacktransaction.Inconnectiontherewith,theBoardofDirectorsgrantedapotentialwaiver,totheextentnecessary,ifatall,oftheconflictofinterestprovisionsoftheCompany'sCodeofEthics,effectiveuponexecutionofdefinitiveagreementswithintheparametersapprovedbytheBoard.Inconnectionwithgrantingsuchpotentialwaiver,theBoardofDirectorsengagedindependentcounseltoreviewthesaleleasebacktransactionandanindependentappraisertoascertain(i)thevalueoftheHeadquartersand(ii)themarketrentfortheHeadquarters.InreachingitsconclusionthatthesaleleasebacktransactionisfairtotheCompany,theBoardofDirectorsconsideredanumberoffactors,includingSummerUSA'sabilitytorepurchasetheheadquartersat110%oftheinitialsalepriceattheendoftheinitialterm.TheCompany'sAuditCommitteeapprovedthesaleleasebacktransaction(asarelatedpartytransaction)andthepotentialwaiverandrecommendedthemattertoavoteoftheentireBoardofDirectors(whichapprovedthetransaction).

OnMay13,2015,SummerUSAenteredintoanamendment(the"Amendment")toitsleasedatedMarch24,2009(the"Lease")withFaithRealty(the"Landlord").PursuanttotheAmendment,(i)theinitialtermoftheLeasewasextendedfortwoadditionalyears,suchthattheinitialtermwouldendonMarch31,2018,andthetermoftheLeasecouldbeextendedatSummerUSA'selectionforoneadditionaltermofthreeyears(ratherthanfiveyears)upontwelvemonths'priornotice,(ii)theannualrentforthelasttwoyearsofthenewlyamendedinitialtermwassetat$429andtheannualrentfor

F-18

FiscalYearending: 2019 $ 8752020 8752021 8752022 8752023 44,411Total $ 47,911

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

5.DEBT(Continued)

theextensionperiod,ifelected,wassetat$468and(iii)theLandlordagreedtoprovideanaggregateimprovementallowanceofnotmorethan$78forthenewlyamendedinitialterm,tobeappliedagainstSummerUSA'smonthlyrent,andanadditionalimprovementallowanceof$234fortheextensionterm,ifelected,tobeappliedagainstSummerUSA'smonthlyrentduringsuchextensionterm.TheAmendmentwasreviewedandapprovedbytheauditcommitteebecauseitwasarelatedpartytransaction.

OnJanuary22,2018,SummerUSAenteredintoasecondamendment(the"SecondAmendment")totheLease.PursuanttotheSecondAmendment,(i)thetermoftheLeasewasextendedtoMarch31,2021,withnofurtherrightsofextension,(ii)theannualrentforthelastthreeyearsofthenewlyamendedtermwassetat$468,(iii)SummerUSAnolongerhastheoptiontopurchasethepropertysubjecttotheLeaseand(iv)theLandlordandSummerUSAagreedtocertainexpenses,repairsandmodificationstothepropertythatissubjecttotheLease.TheSecondAmendmentwasreviewedandapprovedbytheauditcommitteebecauseitwasarelatedpartytransaction.

AtDecember29,2018,approximately$406oftheleaseobligationwasincludedinaccruedexpenses,withthebalanceofapproximately$2,164includedinotherliabilities,intheaccompanyingconsolidatedbalancesheet.Thisobligationisreducedeachmonth(alongwithachargetointerestexpense)astherentpaymentismadetoFaithRealty.

Approximatefutureminimumsale-leasebackpaymentsdueundertheleaseisasfollows:

6.INCOMETAXES

InDecember2017,theU.S.governmentenactedcomprehensivetaxlegislationcommonlyreferredtoastheTaxCutsandJobsAct(the"TaxAct")thatsignificantlyrevisedtheU.S.taxcodeeffectiveJanuary1,2018by,amongotherthings,loweringthecorporateincometaxratefromatopmarginalrateof35%toaflat21%,limitingdeductibilityofinterestexpenseandperformancebasedincentivecompensationandimplementingaterritorialtaxsystem.AsaresultoftheTaxActinthefiscalquarterendingDecember29,2018theCompanyhasnon-deductibleinterestfortaxpurposesresultinginadeferredtaxassetintheamountof$933.TheCompanyrecordedavaluationallowanceonthevalueofthisdeferredtaxassetof$933untilsuchtimeasitbecomesmorelikelythannotthatthisassetwillberecognized.InthefiscalquarterendingDecember30,2017,theCompanyrecordedataxor"tollcharge"of$734onpreviouslyunremittedearningsofforeignsubsidiaries,awrite-downof$882relatedtoforeigntaxcreditsandawrite-downofthevalueofourdeferredtaxassetsof$115whichwasaresultofthechangeinfederaltaxratesfrom35%to21%.

F-19

FiscalYearEnding: 2019 4682020 4682021 117Total $ 1,053

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

6.INCOMETAXES(Continued)

Theprovision(benefit)forincometaxesissummarizedasfollows:

Thetaxeffectsoftemporarydifferencesthatcomprisethedeferredtaxliabilitiesandassetsareasfollows:

F-20

Fiscal2018 Fiscal2017 Current: Federal $ — $ —Foreign (382) 256Stateandlocal 11 5

Totalcurrent (371) 261Deferred: Federal $ 114 $ 1,631Foreign (109) 175Stateandlocal (198) 105

Totaldeferred (193) 1,911Totalprovision(benefit) $ (564) $ 2,172

December29,

2018 December30,

2017 Deferredtaxassets: Accountsreceivable $ 43 $ 7InventoryandUnicapreserve 492 477Interestdeductionlimitation 933 —Researchanddevelopmentcredit,foreigntaxcreditandnetoperatinglosscarry-forward 6,553 6,338

Totaldeferredtaxassets 8,021 6,822Deferredtaxliabilities: Intangibleassetsandother (1,834) (1,905)Property,plantandequipment (42) (193)

Totaldeferredtaxliabilities (1,876) (2,098)Valuationallowance (4,018) (2,789)Deferredtaxliabilitiesandvaluationallowance (5,894) (4,887)Netdeferredincometaxasset $ 2,127 $ 1,935

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

6.INCOMETAXES(Continued)

ThefollowingreconcilesthebenefitforincometaxesattheU.S.federalincometaxstatutoryratetothebenefitintheconsolidatedfinancialstatements:

AsofDecember29,2018,theCompanyhadapproximately$4,758ofUSfederalandstatenetoperatinglosscarryforwards(or"NOLs")tooffsetfuturefederaltaxableincome.ThefederalNOLwillbegintoexpirein2031andthestateNOLbegantoexpirein2018.TheCompanyalsohasapproximately$1,043,$432,$2,823,$415,and$1,134ofNOLsinCanada,Australia,Israel,Asia,andtheUnitedKingdom,whichcanbecarriedforwardindefinitely.

Authoritativeguidancerequiresavaluationallowancetoreducethedeferredtaxassetsreported,ifbasedontheweightoftheevidence,itismorelikelythannotthatsomeportionorallofthedeferredtaxassetswillnotberealized.Afterconsiderationofallevidence,includingtheCompany'spastearningshistoryandfutureearningsforecast,managementhasdeterminedthatavaluationallowanceintheamountof$2,290relatingtocertainstatetaxcreditsandforeignNOLsisnecessaryatDecember29,2018and$1,907atDecember30,2017.DuetotheTaxAct,theCompanydeterminedavaluationallowanceintheamountof$1,728atDecember29,2018and$882atDecember30,2017relatingtointerestdeductionlimitationsandforeigntaxcreditswasnecessary.

AsummaryoftheCompany'sadjustmenttoitsuncertaintaxpositionsinfiscalyearsendedDecember29,2018andDecember30,2017areasfollows:

F-21

Fiscal2018 Fiscal2017 Taxbenefitatstatutoryrate $ (1,014) $ (26)Stateincometaxes,netofU.S.federalincometaxbenefit (147) 87Adjustmenttouncertaintaxposition (325) (16)Stockoptions 46 52Foreigntaxratedifferential 108 (14)Taxcredits (515) (172)Non-deductibleexpenses 158 315Foreignrepatriation/tolltax — 734Increaseinvaluationallowance 1,229 882Foreigndividends/section956 — 86Taxratechanges — 115Other (104) 129Totalbenefit $ (564) $ 2,172

December29,

2018 December30,

2017 Balance,atbeginningoftheyear $ 325 $ 341Increasefortaxpositionsrelatedtothecurrentyear — —Increasefortaxpositionsrelatedtoprioryears — —Increaseforinterestandpenalties — 13Decreaseforlapsesofstatuteoflimitations (325) (29)

Balance,atendofyear $ 0 $ 325

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

6.INCOMETAXES(Continued)

Theunrecognizedtaxbenefitsmentionedaboveincludeanaggregateof$65ofaccruedinterestandpenaltybalancesrelatedtouncertaintaxpositions.TheCompanyrecognizesinterestandpenaltiesrelatedtouncertaintaxpositionsinincometaxexpense.Anincreaseinaccruedinterestandpenaltychargesofapproximately$13,netoffederaltaxexpense,wasrecordedasataxexpenseduringthepriorfiscalyear.Theentirebalanceof$325wasreversedasoftheyear-endedDecember29,2018duetolapseofstatuteoflimitations.

TheCompanyissubjecttoU.S.federalincometax,aswellastoincometaxofmultiplestateandforeigntaxjurisdictions.Onaglobalbasis,theopentaxyearssubjecttoexaminationbymajortaxingjurisdictionsinwhichtheCompanyoperatesisbetweentwotosixyears.

7.SHAREBASEDCOMPENSATION

TheCompanyiscurrentlyauthorizedtoissueupto1,700,000sharesforequityawardsundertheCompany's2012IncentiveCompensationPlan(asamended,"2012Plan").Periodically,theCompanymayalsograntequityawardsoutsideofits2012Planasinducementgrantsfornewhires.TheCompanywasauthorizedtoissueupto3,000,000sharesforequityawardsunderits2006PerformanceEquityPlan("2006Plan").InMarch2017,the2006Planexpiredandnoadditionalequityawardscanbegrantedunderthe2006Plan.

Underthe2012Plan,awardsmaybegrantedtoparticipantsintheformofnon-qualifiedstockoptions,incentivestockoptions,restrictedstock,deferredstock,restrictedstockunitsandotherstock-basedawards.Subjecttotheprovisionsoftheplans,awardsmaybegrantedtoemployees,officers,directors,advisorsandconsultantswhoaredeemedtohaverenderedorareabletorendersignificantservicestotheCompanyoritssubsidiariesandwhoaredeemedtohavecontributedortohavethepotentialtocontributetotheCompany'ssuccess.TheCompanyaccountsforoptionsunderthefairvaluerecognitionstandard.Theapplicationofthisstandardresultedinshare-basedcompensationexpenseforthetwelvemonthsendedDecember29,2018andDecember30,2017of$523and$494,respectively.Sharebasedcompensationexpenseisincludedinselling,generalandadministrativeexpenses.

AsofDecember29,2018,thereare868,655sharesavailabletograntunderthe2012Plan.

Stock Options

ThefairvalueofeachoptionawardisestimatedonthedateofgrantusingtheBlack-Scholesoptionvaluationmodelthatusestheassumptionsnotedinthetablebelow.TheCompanyusesthesimplifiedmethodtoestimatetheexpectedtermoftheoptionsforgrantsof"plainvanilla"stockoptionsasprescribedbytheSecuritiesandExchangeCommission.Forfeituresareestimatedatthetimeofgrantandrevised,ifnecessary,insubsequentperiodsifactualforfeituresdifferfromthoseestimates.Share-basedcompensationexpenserecognizedintheconsolidatedfinancialstatementsinfiscal2018and2017isbasedonawardsthatareultimatelyexpectedtovest.

F-22

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

7.SHAREBASEDCOMPENSATION(Continued)

ThefollowingtablesummarizestheweightedaverageassumptionsusedforoptionsgrantedduringthefiscalyearsendedDecember29,2018andDecember30,2017.

Theweighted-averagegrantdatefairvalueofoptionsgrantedduringtheyearendedDecember29,2018was$0.55pershare.Theweighted-averagegrantdatefairvalueofoptionsgrantedduringtheyearendedDecember30,2017was$1.16pershare.

AsummaryofthestatusoftheCompany'soptionsasofDecember29,2018andchangesduringtheyearthenendedispresentedbelow:

OutstandingstockoptionsvestedandexpectedtovestasofDecember29,2018is955,014.Theintrinsicvalueofoptionsexercisedtotaledwas$2and$3forthefiscalyearsendedDecember29,2018andDecember30,2017,respectively.

ThefollowingtablesummarizesinformationaboutstockoptionsatDecember29,2018:

TheaggregateintrinsicvalueofoptionsoutstandingandexercisableatDecember29,2018andDecember30,2017are$0and$5,respectively.AsofDecember29,2018,therewasapproximately

F-23

Fiscal2018

Fiscal2017

Expectedlife(inyears) 4.9 4.9Risk-freeinterestrate 2.7% 1.9%Volatility 64.1% 71.4%Dividendyield 0% 0.0%Forfeiturerate 23.2% 22.6%

NumberOf

Shares Weighted-AverageExercisePrice

Outstandingatbeginningofyear 1,052,026 $ 2.32Granted 375,240 $ 0.99Exercised 20,550 $ 1.21Canceledorexpired 298,693 $ 1.94Outstandingatendofyear 1,108,023 $ 2.00OptionsexercisableatDecember29,2018 568,513 $ 2.48

OptionsOutstanding OptionsExercisable

Rangeof

ExercisePrices Number

Outstanding

RemainingContractualLife(years)

WeightedAverageExercisePrice

NumberExercisable

RemainingContractual

Life

WeightedAverageExercisePrice

$0.81-$1.00 189,000 9.4 $ 0.84 0 $1.01-$1.50 199,140 8.5 $ 1.26 126,065 8.6 $ 1.22 $1.51-$2.00 462,000 7.6 $ 1.89 224,750 7.2 $ 1.86 $2.01-$4.00 199,563 6.2 $ 2.69 159,378 5.9 $ 2.78 $4.01-$8.00 58,320 2.2 $ 6.75 58,320 2.2 $ 6.75 1,108,023 7.6 $ 2.00 568,513 6.6 $ 2.48

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

7.SHAREBASEDCOMPENSATION(Continued)

$235ofunrecognizedcompensationcostrelatedtonon-vestedstockoptionawards,whichisexpectedtoberecognizedoveraremainingweighted-averagevestingperiodof2.3years.

Restricted Stock Awards

Restrictedstockawardsrequirenopaymentfromthegrantee.Therelatedcompensationcostofeachawardiscalculatedusingthemarketpriceonthegrantdateandisexpensedequallyoverthevestingperiod.AsummaryofrestrictedstockawardsmadeintheyearendedDecember29,2018,isasfollows:

AsofDecember29,2018,therewasapproximately$236ofunrecognizedcompensationcostrelatedtonon-vestedstockcompensationarrangementsgrantedundertheCompany'sstockincentiveplanforrestrictedstockawards.Thatcostisexpectedtoberecognizedoverthenext2.4years.

Restricted Stock Units

OnJuly13,2016,theCompanygranted100,000performance-basedRSUstoitsnewChiefExecutiveOfficer.TheRSUsrepresentedtherighttoreceivesharesoftheCompany'scommonstockuponachievementofspecifiedperformancemetricsandonlyvestedifsuchperformancemetricswereachievedforfiscalyear2017andfiscalyear2018.TheRSUsexpireiftheperformancemetricsarenotachievedorifemploymentisterminated.Astheperformancemetricshavenotbeenachieved,theRSUshaveexpiredandtheCompanydidnotrecognizeanycompensationexpenseinfiscal2018and2017relatedtothisaward.

8.PROFITSHARINGPLAN

SummerInfant(USA),Inc.maintainsadefinedcontributionsalarydeferralplanunderSection401(k)oftheInternalRevenueCode.Allemployeeswhomeettheplan'seligibilityrequirementscanparticipate.Employeesmayelecttomakecontributionsuptofederallimitations.In2007,theCompanyadoptedamatchingplanwhichwasfurtheramendedin2013,andwhichwasfundedthroughouttheyear.FortheyearsendedDecember29,2018andDecember30,2017,theCompanyrecorded401(k)matchingexpenseof$380and$386,respectively.

9.MAJORCUSTOMERS

SalestotheCompany'stopsevencustomerstogethercomprisedapproximately77%ofoursalesinfiscal2018and77%ofoursalesinfiscal2017.Ofthesecustomers,threegeneratedmorethan10%ofsalesforfiscal2018:Amazon.com(23%),Walmart(23%),andTarget(16%).Infiscal2017,four

F-24

NumberofShares

GrantDateFairValue

Non-vestedrestrictedstockawardsasofDecember30,2017 331,516 $ 1.88Granted 188,000 $ 1.27Vestedandreleased 173,391 $ 1.52Forfeited 74,150 $ 1.78Non-vestedrestrictedstockawardsasofDecember29,2018 271,975 $ 1.75

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

9.MAJORCUSTOMERS(Continued)

customersgeneratedmorethan10%ofsales:Amazon.com(25%),BabiesRUs/ToysRUs(17%),Walmart(16%),andTarget(11%).

10.COMMITMENTSANDCONTINGENCIES

Lease Commitments

Forleaseagreementswithescalationclauses,theCompanyrecordsthetotalrenttobepaidundertheleaseonastraight-linebasisoverthetermofthelease,withthedifferencebetweentheexpenserecognizedandthecashpaidrecordedasadeferredrentliabilityincludedinaccruedexpensesonthebalancesheetforamountstoberecognizedwithintwelvemonthsandinotherliabilitiesforamountstoberecognizedaftertwelvemonthsfromthebalancesheetdate,intheconsolidatedbalancesheets.Leaseincentivesarerecordedasdeferredrentatthebeginningoftheleasetermandrecognizedasareductionofrentexpenseoverthetermofthelease.

SummerInfantEuropeLimitedleasesofficespaceunderanon-cancelableoperatingleaseagreement.Thisleaseisforafive-yeartermthroughMarch2022,andrequiresmonthlypaymentsofapproximately$6.Inaddition,SummerInfantEuropeLimitedisrequiredtopayitsproportionateshareofpropertytaxes.

SummerInfantCanada,Ltd.enteredintoafive-yearleaseforofficeandwarehousespaceunderanon-cancelableoperatingleaseagreementexpiringJune2023.TheCompanyisobligatedaspartoftheleasetopaymaintenanceexpensesaswellaspropertytaxesandinsurancecostsasdefinedintheagreement.Monthlypaymentsareapproximately$25overthecourseoftheleaseterm.SummerInfantCanada,Ltd.hastheoptiontorenewthisleaseforoneadditionalperiodoffiveyearsundersimilartermsandconditions.

SummerInfant(USA)Inc.enteredintoa72monthleaseinSeptember2010forwarehousespaceunderanon-cancelableoperatingleaseagreement.TheCompanyisobligatedtopaycertaincommonareamaintenancechargesincludinginsuranceandutilities.Theleasewasextendedin2015andnowexpiresinSeptember2021.Monthlypaymentswere$175infiscal2018andescalateto$186overtheremaininglifeofthelease.

DuringNovember2017,SummerInfantAsiaenteredintoatwoyearofficeleasewhichrequiresmonthlypaymentsof$10through2019.

Approximatefutureminimumrentalpaymentsdueundertheseleasesareasfollows(a):

F-25

FiscalYearEnding: 2019 $ 2,6272020 2,5562021 2,0482022 3232023andbeyond 154Total $ 7,708

(a) Amountsexcludepaymentsforsales-leasebacktransactionasdescribedinNote5.

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SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

10.COMMITMENTSANDCONTINGENCIES(Continued)

Rentexpense(excludingtaxes,feesandothercharges)fortheyearsendedDecember29,2018andDecember30,2017totaledapproximately$2,736and$2,654,respectively.

Employment Contracts

InaccordancewithUnitedKingdomandEUlaw,SummerInfantEuropeLimitedisrequiredtohaveemploymentcontractswithallofitsemployees.Inconnectionwiththesecontracts,SummerInfantEuropeLimitedmakesindividualpensioncontributionstocertainemployeesatvaryingratesfrom1-7%oftheemployee'sannualsalary,aspartoftheirtotalcompensationpackage.Thesepensioncontributionsareexpensedasincurred.Therearenoterminationbenefitprovisionsinthesecontracts.

Litigation

TheCompanyisapartytoroutinelitigationandadministrativecomplaintsincidentaltoitsbusiness.TheCompanydoesnotbelievethattheresolutionofanyorallofsuchcurrentroutinelitigationandadministrativecomplaintsislikelytohaveamaterialadverseeffectontheCompany'sfinancialconditionorresultsofoperations.

11.GEOGRAPHICALINFORMATION

TheCompanysellsproductsthroughouttheUnitedStates,Canada,andtheUnitedKingdom,andvariousotherpartsoftheworld.TheCompanydoesnotdiscloseproductlinerevenuesasitisnotpracticablefortheCompanytodoso.

Thefollowingisatablethatpresentsnetrevenuebygeographicarea:

Thefollowingisatablethatpresentstotalassetsbygeographicarea:

F-26

Forthefiscalyear

ended

December29,

2018 December30,

2017 UnitedStates $ 145,534 $ 157,159AllOther 28,085 32,710

$ 173,619 $ 189,869

December29,

2018 December30,

2017 UnitedStates $ 82,631 $ 82,851AllOther 11,585 15,179

$ 94,216 $ 98,030

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TableofContents

SUMMERINFANT,INC.ANDSUBSIDIARIES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

11.GEOGRAPHICALINFORMATION(Continued)

Thefollowingisatablethatpresentstotallonglivedassetsbygeographicarea:

12.SUBSEQUENTEVENTS

TheCompanyhasevaluatedalleventsortransactionsthatoccurredafterDecember29,2018throughthedateofthisAnnualReportonForm10-K.Nosubsequenteventdisclosuresarerequired.

F-27

December29,

2018 December30,

2017 UnitedStates $ 23,165 $ 22,763AllOther 2,044 2,961

$ 25,209 $ 25,724

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Exhibit 10.19

Private and ConfidentialNovember21,2018By EmailPaulFrancese28JamaicaCourtEastHaven,[email protected]:FurthertoourrecentdiscussionsinrespectofyouremploymentwithSummerInfant(USA),Inc.(“Summer”),wearedelightedtoofferyouthefull-timepositionofSeniorVicePresidentandChiefFinancialOfficer(“SVP/CFO”),tocommenceonNovember27,2018.YouwillalsoserveasSeniorVicePresident/ChiefFinancialOfficerofSummerInfant,Inc.,Summer’sparentcompany(“Parent”).Thisofferofemploymentletterisconditional,subjecttosatisfactoryresultsofbackgroundinvestigation,referencechecks,pre-employmentalcoholanddrugtests,productionofdocumentssufficienttodemonstrateidentityandauthorizationtowork,andyouragreementtothetermsoftheNon-Competition,Non-SolicitationandDevelopmentsAgreementattachedheretoandtheChangeinControlPlanreferencedbelow.Position and Responsibilities :YouremploymentwithSummerwillcommenceonNovember 27, 2018 .YourresponsibilitieswillincludeanyandalldutiesassignedtoyouasSVP/CFO.YouwillreportdirectlytoMark Messner, Chief Executive Officer (“CEO”) .Youagreethatyoushallatalltimesconscientiouslyperformallofthedutiesandobligationsassignedtoyoutothebestofyourabilityandexperienceandincompliancewithlaw.YoumustuseyourbesteffortstopromotetheinterestsofSummerandtodevoteyourfullbusinesstimeandenergiestothebusinessandaffairsofSummerandtheperformanceofyourjobduties.YourepresentandwarranttoSummerthatyourexecutionofthisletterandtheperformanceofyourservicesasSVP/CFOtoSummershallnotviolateanyobligationsyoumayhavetoanyformeremployer,personorentity,including,withoutlimitation,anyrestrictiveobligationsthatwouldpreventyoufromtheperformanceofyourservicestoSummeroranyobligationwithrespecttoproprietaryorconfidentialinformationofanyotherpersonorentity.Salary :Youwillreceiveanannualbasesalaryof$330,000.00 payableinbi-weekly(everytwoweeks)installmentsof$12,692.31 subjecttoapplicablewithholdingandotherlawfuldeductions.

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Bonus :YouwillbeeligibletoparticipateinSummer’sSTI(short-termincentive)programbeginningin2019,withanannualbonustargetof40%(“Target”)ofyourbasesalary($132,000)uptoamaximumof200%ofTargetdependentuponcorporateandpersonalperformancegoalsdeterminedbytheCompensationCommitteeoftheParent’sBoardofDirectors(“CompensationCommittee”).Also,uponthecommencementofyouremployment,beginningwithgrantsmadeinfiscal2019,youareeligibletoparticipateinthecompany’sLTI(Long-TermIncentive)plan.SubjecttotheapprovaloftheCompensationCommittee,youwillbeeligibleforahiringgrantof30,000StockOptionsand20,000sharesofRestrictedStock;suchgranttobemadeinaccordancewiththecompany’s2012IncentiveCompensationPlan.Eachequityawardwillvestinfourequalannualinstallmentsonourstandardscheduleof25%peryear,withthefirst25%beingfullyvestedonthefirstanniversaryofyourdateofhire.ThespecificmixandnumberofsharesgrantedinfutureyearsaspartoftheannualequitygrantprogramwillbedeterminedannuallyinlinewiththeCompany’sequityplan(s)andatthediscretionoftheBoardofDirectors.Performance Review and Benefits :YouwillbeeligibleforaperformanceandsalaryreviewinFebruary2019(proratedbaseduponyourdateofhire).YouwillalsobeeligibleforSummer’sstandardemployeebenefitssubjecttoplaneligibilityrequirements.Summer’scurrentbenefitsincludeMedicalbenefits,Dentalbenefits,VisionCare(availablethefirstofthemonthfollowingyourdateofhire);a401Kplanandmatchprogram(followingthewaitingperiod);Long-TermDisability(after90days);aHealthcareSpendingAccount(proratedonyourdateofhire);generousproductdiscountsand20daysofPaidTimeOffperyear,accruedatarateof6.15hoursbi-weekly(includesvacation,sickandpersonaltime).Governing Law/At Will Employment:YouremploymentwithSummershallbegovernedbyandinterpretedinaccordancewiththelawsoftheStateofRhodeIsland.Byexecutionanddeliveryofthisemploymenttermletter,youirrevocablysubmittoandaccepttheexclusivejurisdictionofthecourtsintheStateofRhodeIslandandwaiveanyobjection(includinganyobjectiontovenueoranyobjectionbaseduponthegroundsofforumnonconveniens)whichmightbeassertedagainstthebringingofanysuchaction,suitorotherlegalproceedinginsuchcourts.YouremploymentwithSummeris“atwill,”inthateitheryouorSummerhastherighttoterminatetheemploymentrelationshipatanytime,withorwithoutcause.Thisstatusmayonlybealteredbywrittenagreement,whichisspecificastoallmaterialtermsandissignedbyanauthorizedofficerofSummer.Thetermsofthisemploymentletterdonot,andarenot,intendedtocreateeitheranexpressand/orimpliedcontractofemploymentwithSummerforadefinitiveterm.Notwithstandingtheforegoing,intheeventthatyouremploymentisterminatedbySummerwithoutcauseorintheeventthatyouterminateyouremploymentwithSummerforGoodReason(ashereinafterdefined),thenyoushallbeentitledtoreceiveyourbasesalary,thenineffect,foraperiodofsix(6)monthsfollowingtheterminationofyouremploymentpayableinaccordancewithSummer’scustomarypayrollperiodsandpracticesandshallbelessapplicabletaxesandwithholdings(the“SeveranceConsideration”).YoushallnotbeentitledtoreceivetheSeveranceConsiderationintheeventthati)youvoluntarilyleaveyouremploymentforwhateverreasonotherthanforGoodReason,ii)youremploymentisterminatedforCause(ashereinafterdefined),oriii)astheresultofyourdeathordisability(ashereinafterdefined).

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YouacknowledgethatSummer’sobligationtopaytoyoutheSeveranceConsiderationshallbeconditioneduponyouexecutingaGeneralReleaseandTerminationAgreementinfavorofSummer.

“Cause”meanstheoccurrenceofoneormoreofthefollowing:i)yourwillfulandcontinuedfailuretosubstantiallyperformyourservicesforSummer,whichfailurecontinuesforaperiodofatleastthirty(30)daysafterwrittendemandforsubstantialperformancehasbeendeliveredbySummertoyouwhichidentifiesthemannerinwhichyouhavefailedtosubstantiallyperformyourservices;ii)yourwillfulconductwhichconstitutesmisconductandismateriallyanddemonstrablyinjurioustoSummer,asdeterminedingoodfaithbyavoteofatleasttwo-thirdsofthenon-ExecutivedirectorsoftheBoardatameetingoftheBoardatwhichyouareprovidedanopportunitytobeheard;iii)yourbeingconvictedof,orpleadingnolocontenderetoafelony;oriv)yourbeingconvictedof,orpleadingnolocontenderetoamisdemeanorbasedindishonestyorfraud.

“Disability”meansthatyouhavebeneunabletoperformtheservicesasaresultofyourincapacityduetophysicalormentalillness,andsuchinability,atleastfour(4)weeksafteritscommencement,isdeterminedtobetotalandpermanentbyaphysicianselectedbySummeroritsinsurersandacceptabletoyouoryourlegalrepresentative(suchagreementastoacceptabilitynottobeunreasonablywithheld).TerminationresultingfromDisabilitymayonlybeaffectedafteratleastthirty(30)days’writtennoticebySummerofitsintentiontoterminateyouremployment.Intheeventthatyouresumetheperformanceofsubstantiallyalloftheserviceshereunderbeforetheterminationofyouremploymentbecomeseffective,thenoticeofintenttoterminateshallbeautomaticallydeemedtoberevoked.

“GoodReason”meansi)thematerialdiminutioninyourauthority,dutiesorresponsibilities;ii)amaterialdiminutioninyourannualbasesalaryasineffectimmediatelypriortosuchdiminution,otherthaninconnectionwithageneraldiminutioninSummer’scompensationlevelsandinamountscommensuratewiththepercentagediminutionofotherSummeremployeesofcomparableseniorityandresponsibility;oriii)Ifapplicable,anyotheractionorinactionwhichconstitutesamaterialbreachbySummerofanagreementwithyoupursuanttowhichyouprovideservicestoSummer.Noviolationdescribedinclausesi)throughiii)aboveshallconstituteGoodReasonunlessyouhavegivenwrittennoticetoSummerspecifyingtheapplicableclauseandrelatedfactsgivingrisetosuchviolationwithinninety(90)daysaftertheoccurrenceofsuchviolationandSummerhasnotremediedsuchviolationtoyourreasonablesatisfactionwithinthirty(30)dayofitsreceiptofsuchnotice.Inaddition,youwillbeentitledtocertainpaymentsifyouareterminatedinconnectionwithachangeofcontrolofParentpursuanttothetermsofSummerInfant,Inc.’sChangeofControlPlan(the“CICPlan”).AsaconditiontoyouremploymentyouwillberequiredtoexecuteanddeliveranotificationindicatingyouracceptancetothetermsoftheCICPlanonthecommencementdateofyouremployment.Employment Documentation:YouremploymentwithSummeriscontingentuponyoursubmissionofsatisfactoryproofofyouridentityandlegalauthorizationtoworkintheUnitedStatesaswellascompletionofallemploymentrelatedformsandagreementsrequiredbySummer.Ifyoufailtoprovidesatisfactorydocumentation,federallawmayprohibitSummerfromhiringyou.

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Expense Reimbursement:SummerwillreimburseyouforyourreasonabletravelandbusinessexpensesinaccordancewithSummer’sexpensereimbursementpolicy,acopyofwhichisattachedhereto.Further,Summerwillreimburseyouforcertainlivingexpensesincurredduringyourfirstmonthofemployment(consistingofmovingcosts,hotelexpenses,mealsandmileage)upto$8,000uponpresentationofappropriatereceipts.Employment Manual:DuringyouremploymentwithSummer,youwillberequiredtoabidebySummer’scodeofconduct,policiesandproceduresassetforthinSummer’semployeemanualorasotherwisecommunicatedtoyouinwriting.SEC Compliance:ForpurposesofSecuritiesandExchangeCommission(“SEC”)reporting,youwillbedeemedan“executiveofficer”andaresubjecttotherulesandrequirementsofSection16oftheSecuritiesExchangeActof1934.YouunderstandandagreethatyouwillkeepthetermsandconditionsofyouremploymentconfidentialuntilsuchtimeasyouremploymentispubliclydisclosedbyParentasrequiredbyapplicableSECrulesandregulations.Return of Employment Term Letter:WeareexcitedaboutthisopportunitytoworkwithyoutobuildtheSummerbrandandbusiness.Toacceptthisoffer,pleasesignanddatethispage,keepacopyforyourrecords,andreturnacopytome.Pleasealsosignanddatetheattachedagreementsandreturnthesignedagreementstomyattention.Weareextremelyconfidentthatyouremploymentwithuswillprovemutuallybeneficialandwelookforwardtohavingyoujoinourwinningteam!

Verytrulyyours,

SummerInfant(USA),Inc.

By: /s/MarkMessner

Name:MarkMessner,President&CEO

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Iacceptyourofferofemploymentassetforthinthisemploymenttermletter.Iunderstandthatmyemploymentis“atwill”andthateitheryouorIcanterminatemyemploymentatanytime,foranyreason.Nooralcommitmentshavebeenmadeconcerningmyemployment.PaulFrancese

/s/PaulFranceseEmployeeName(pleaseprint)

EmployeeSignature Nov.25,2018

Date

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Non-Competition, Non-Solicitation and Developments Agreement

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Exhibit 10.20

SEPARATIONAGREEMENTANDGENERALRELEASE

ThisSeparationAgreementandGeneralRelease(“Agreement”)ismadethis27thdayofNovember,2018,byandamongSummerInfant(USA),Inc.(“SIUSA”),SummerInfant,Inc.(“SII”,andtogetherwithSIUSAthe“Company”)andWilliamE.Mote,Jr.(“Mote”).

RECITALS

ThisAgreementismadeinlightof,andinconsiderationof,thefollowingfactsandcircumstanceswhichformamaterialpartofthisAgreement:

A.SinceNovember10,2014,MotehasbeenemployedbytheCompanyinvariouspositions,includingmostrecentlyasChiefFinancialOfficer.

B.MoteisapartytoaNon-Competition,Non-DisclosureandDevelopmentsAgreementexecutedbyMoteonOctober7,2014(“RestrictiveAgreement”),acopyofwhichisattachedheretoasExhibitA.

C.TheCompanyandMotehavemutuallyagreeduponMote’sresignationfromemploymentandthatMote’slastdayofemploymentshallbeNovember27,2018.

NOW,THEREFORE,inconsiderationofthemutualpromisessetforthhereinandforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,thepartiesagreeasfollows:

1.MoteandtheCompanyagreethatthelastdateofMote’semploymentisNovember27,2018(the“SeparationDate”)atwhichtimeMoteshallberemovedfromallofficesheldintheCompanyandanysubsidiariesoftheCompany.Motewillbepaidallearnedwages,accruedbutunpaidvacationbenefits,andreimbursementsthroughtheSeparationDatebythenextregularpaydateaftertheSeparationDate.

2.Inconsiderationoftheexecution,deliveryandnon-revocationofthisAgreementbyMoteandinconsiderationofthecovenantsandpromisesofMotesetforthherein,including,withoutlimitation,theRelease(asdefinedinParagraph6)providedbyMotetotheCompany,theCompanyshallprovidetoMotethefollowingseparationconsideration(“ReleaseConsideration”):

(a)Foraperiodoftwenty-six(26)weekscommencingonthenextregularpaydayfollowingtheEffectiveDateasdefinedinParagraph7(c),theCompanyshallpaytoMoteanamountequaltohisbasesalary,payableinbi-weeklyinstallments,onsuchdatesashisbasesalarywouldotherwisebepaidbytheCompanyinaccordancewithitsregularpayrollprocedures,lessapplicabledeductionsandwithholdings;

(b)TheCompanyagreestotheimmediatevestingoffive-thousand,two-hundredfifty(5,250)restrictedsharesofstockundertheawardoriginallygrantedonFebruary22,2017,andten-thousand,two-hundredfifty(10,250)stockoptionsundertheawardoriginallygrantedFebruary22,2017.Inaddition,theCompanyagreesthattheexerciseperiodforMote’svestedandoutstandingstockoptionswillbeextendedforanadditionalsix(6)

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monthsfromtheexpirationdatesetforthintherelevantequityplancoveringtheoptions.TheamendedexpirationdateisAugust26,2019.Mr.Mote’sabilitytosellsuchrestrictedstockand/orexercisesuchoptionsandsellsuchsharesand/orengagein“cashless”transactionsshallnotbesubjecttoanycompany-imposed“blackout”orsimilarrestrictionsbeginningonthethirdtradingdayafterpublicreleaseoftheCompany’sresultsforthequarterendedDecember29,2018;and

(c)TheCompanywillprovide,atitsexpense,forMotetoreceiveoutplacementserviceswithanoutplacementproviderusedbytheCompanyforaperiodofuptotwelve(12)monthsfollowingtheEffectiveDate.

(d)Mote’sgrouphealthplancoverage,ifany,willbeterminatedeffectiveonthelastdayoftheterminationmonth,onNovember30,2018.TheSeparationDateshallbethedateofthe“qualifyingevent”undertheConsolidatedOmnibusBudgetReconciliationActof1985(“COBRA”)andCompanywillpresentMotewithinformationonCOBRAunderseparatecover.Ifelected,theCompanywillreimburseMoteforthefirstmonthofCOBRAcoverage.Benefitssuchaslifeinsurance,long-termdisability,accidentaldeath&dismemberment,tuitionreimbursement,amongothers,terminateimmediately,effectiveupontheSeparationDate.

3.Moteunderstands,acknowledgesandagreesthatheisreceivingtheReleaseConsiderationsetforthinParagraph2inexchangefortheReleasesetforthinParagraph6andhisagreementtohonorandabidebythetermsandconditionsofthisAgreement,andisotherwisenotentitledtoreceivetheReleaseConsideration.

4.MoteacknowledgesandagreesthathisparticipationintheCompany’s401(k)planandhisrightstobenefitsunderthatplanfollowingtheSeparationDatewillbegovernedbythetermsofthatplan.

5.ExceptassetforthinthisAgreement,Moteacknowledgesthatanyoutstandingunvestedawardsunderanyplan(s)maintainedbytheCompanyshallbetreatedinaccordancewiththerulesoftherelevantplanandthetermsoftherelevantaward.

6.Therelease(“Release”)setforthinthisParagraph6iseffectiveasoftheEffectiveDateofthisAgreement.

(a)InexchangefortheconsiderationsetforthinParagraph2,Moteforhimselfandhisagents,attorneys,successors,andassigns,herebyreleasesandforeverdischargestheCompanyanditspresentand/orformerparents,affiliates,divisions,subsidiaries,predecessors,successorsandassignsaswellasitsand/ortheirpresentandformerofficers,directors,shareholders,agents,counsel,insurers,andemployees(collectivelythe“Releasees”),tothefullestextentpermittedbylaw,ofandfromallactions,causesofaction,suits,debts,dues,sumsofmoney,damages,judgments,executions,claimsanddemandswhichmaybelegallywaivedbyprivateagreement,inlaworinequity,knownorunknown,foreseenorunforeseen,whichheeverhad,nowhasorwhichhisheirs,executors,administrators,successorsandassigns(collectivelywithMote,the“Releasors”)hereaftershall,canormayhave,uponorbyreasonofanymatter,causeorthingarisingatanytimeuptothedateofMote’sexecutionofthisAgreement.

2

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(b)TheforegoingreleasebyReleasorsincludes,butisnotlimitedto,anyandallclaims,individualorcollective,arisingonorbeforeMote’s

executionofthisAgreementundertheAgeDiscriminationinEmploymentActof1967,asamended,29U.S.C.§621etseq.,TitleVIIoftheCivilRightsActof1964,asamended,42U.S.C.§2000etseq.,theCivilRightsActof1871,asamended,42U.S.C.§1981etseq.,theAmericanswithDisabilitiesAct,42U.S.C.§12101etseq.,theEmployeeRetirementIncomeSecurityActof1974,asamended,29U.S.C.§1001etseq.,FamilyandMedicalLeaveAct,29U.S.C.§2601etseq.andallotherfederal,stateandlocallaws,includingbutnotlimitedtotheRhodeIslandFairEmploymentPracticesAct,R.I.Gen.Laws§§28-5-1etseq.,theRhodeIslandCivilRightsActof1990,R.I.Gen.Laws§§42-112-1etseq.,theCivilRightsofPeoplewithDisabilitiesAct,R.I.Gen.Laws§§42-87-1etseq.,theRhodeIslandParentalandFamilyMedicalLeaveAct,R.I.Gen.Laws§§28-48-1etseq.,RhodeIslandwagepaymentlaws,RhodeIslandWhistleblowerProtectionAct(R.I.G.L§28-50-1,etseq.),anyExecutiveOrders(governingemploymentpractices)whichmayaffecttheCompany,andallotherfederal,stateandlocallaws,aseachoftheforegoinghavebeenormaybeamended,andanyandallclaimsarisingunderanyotherfederal,stateorlocalstatute,law,rule,regulation,ordecision,includingclaimsfordiscrimination,harassment,retaliation,breachofcontract,inflictionofemotionaldistress,negligence,defamationorslander,wrongfuldischargeinviolationofpublicpolicy,andanyandallothercommonlawclaims,aswellasanyandallclaimsforattorneys’feesandcosts.

(c)MoteacknowledgesandagreesthattheReleaseConsiderationheisreceivingunderthisAgreementissufficientconsiderationtosupportthereleaseofallentitiesandpersonsidentifiedinthisParagraph7(a)ofthisAgreement,andthatsaidReleaseConsiderationisinadditiontoanythingofvaluetowhichMoteisentitled.

(d)Moteagreesthathewillnotsueon,orcommenceanyproceedingsrelatingto,anyclaimwhichwouldbereleasedbythisAgreement,otherthanhisparticipationinagovernmentalorstateagencyinvestigationorproceedingasdescribedinParagraph9.IfhesubsequentlyconteststhisAgreementforanyreason,MoteagreestofirsttenderbacktotheCompanythepaymentbeingmadetohimunderParagraph3.Moteagreesandrepresentsthathehasnotfiled,orcausedtobefiled,anyclaimorchargewithanycourt,adjudicativebody,regulatorybody,oragencyarisingoutofhisemploymentorterminationofemployment.

(e)Moteagreesandrepresentsthat:(i)hehasreceivedallleave(paidorunpaid),compensation,wages,overtimeifapplicable,bonuses,commissions,and/orbenefitstowhichhemaybeentitledandthatnootheramountsand/orbenefitsaredueexceptasexpresslyprovidedinthisAgreement;(ii)hasnoknownworkplaceinjuriesoroccupationaldiseasesthathehasnotalreadyreportedtoCompany;(iii)haseitherbeenprovidedornotbeendeniedanyleaverequestedundertheFamilyandMedicalLeaveActorstatelaw;(iv)isnoteligibletoreceivepaymentsorbenefitsunderanyotherseverancepaypolicy,plan,practiceorarrangementoftheCompanyotherthanassetforthherein;and(v)hasnotcomplainedofandisnotawareofanyfraudulentactivityoranyact(s)whichwouldformthebasisofaclaimoffraudulentorillegalactivitybytheCompany.

(f)Motefurtherwaivesandreleasesanyrighttobecome,andagreesnottoconsenttobecome,amemberofanyclassinacaseinwhichclaimsareassertedagainstthe

3

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CompanyortheReleaseesthatarerelatedinanywaytoMote’semploymentortheterminationofhisemploymentwithCompany.If,withouthispriorknowledgeandconsent,Moteismadeamemberofaclassinanyproceeding,heagreestooptoutoftheclassatthefirstopportunity.

7.Age Discrimination in Employment Act (“ADEA”) .BecauseMoteis40yearsofageorolder,theCompanyisadvisingMoteof,andMoteacknowledges,thefollowing:

(a)Twenty-One(21)DayConsiderationPeriod.Moteshallhavetwenty-one(21)daystoconsiderandacceptthetermsofthisAgreementbyfullyexecutingitbelow,andreturningittotheCompanytoMaryBethSchneider’sattentionattheaddressprovidedinParagraph11.Duringthistwenty-one(21)dayperiodandbeforesigningthisAgreement,MoteisencouragedtoconsultwithanattorneyregardingthetermsandprovisionsofthisAgreementathisownexpense.MotemaysigntheAgreementofhisownvolitionpriortotheconclusionofthetwenty-one(21)dayperiod.

(b)ReleaseofAgeDiscriminationinEmploymentActClaims.BysigningthisAgreement,MotewaivesanyclaimshehasormighthaveagainsttheCompanyortheReleaseesundertheADEAthataccruedpriortothedateofMote’sexecutionoftheAgreement.

(c)RevocationPeriod.Moteshallhaveseven(7)daysfromthedatehesignsthisAgreementtochangehismindandrevoketheagreementtowaiveclaimsofdiscriminationundertheADEA.Thisseven-dayrightofrevocationdoesnotapplytoanyothertypeofclaimcoveredbythereleaseinParagraph6above.Anyrevocationwithinthisperiodmuststate“IherebyrevokemyacceptanceofourAgreementandGeneralReleaserelatedtoclaimsundertheAgeDiscriminationinEmploymentAct.”ThewrittenrevocationmustbedeliveredtoprovidewrittennoticeofrevocationofthisAgreementtoMaryBethSchneider’sattention,attheaddressprovidedinParagraph11andmustbepostmarkedwithinseven(7)calendardaysofMote’sexecutionofthisAgreement.IfMotedoesnotrevokethisAgreementpriortotheexpirationofthisseven(7)dayperiod,thisAgreementshalltakeeffectatthattimeasalegallybindingagreementbetweenMoteandtheCompanyonthebasissetforthherein(the“EffectiveDate”).MOTE IS HEREBY ADVISED THAT HE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW AND CONSIDER THIS AGREEMENTAND IS HEREBY ADVISED IN WRITING TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS AGREEMENT.MOTE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT DO NOT RESTART OR AFFECTIN ANY MANNER THE ORIGINAL TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD.

4

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HAVING ELECTED TO EXECUTE THIS AGREEMENT, TO FULFILL THE PROMISES AND TO RECEIVE THE SUMS AND BENEFITS INPARAGRAPH 2 ABOVE, MOTE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENTINTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS MOTE HAS OR MIGHT HAVE AGAINST THE RELEASEES.

8.NothinginthisAgreement,includingbutnotlimitedtothereleaseofclaims,proprietaryinformation,confidentiality,cooperation,andnon-disparagementprovisions,(a)limitsoraffectsMote’srighttochallengethevalidityofthisReleaseundertheADEAortheOWBPAor(b)preventsMotefromfilingachargeorcomplaintwithorfromparticipatinginaninvestigationorproceedingconductedbytheEEOC,theNationalLaborRelationsBoard,theSecuritiesandExchangeCommission,oranyotherfederal,stateorlocalagencychargedwiththeenforcementofanylaws,includingprovidingdocumentsorotherinformation,or(c)preventsMotefromexercisinghisrightsunderSection7oftheNLRAtoengageinprotected,concertedactivitywithotheremployees,althoughbysigningthisReleaseheiswaivinghisrighttorecoveranyindividualrelief(includingbackpay,frontpay,reinstatementorotherlegalorequitablerelief)inanycharge,complaint,orlawsuitorotherproceedingbroughtbyhimoronhisbehalfbyanythirdparty,exceptforanyrighthemayhavetoreceiveapaymentfromagovernmentagency(andnottheCompany)forinformationprovidedtothegovernmentagency.MoteunderstandsandagreesthatnothinginthisAgreement,includingtheRelease,prohibitsorrestrictshimfromprovidingtruthfulinformation,orcooperatingwith,orotherwiseassistinginaninvestigationbyanytestimonyinanylegalproceedingorfromcooperatingwith,ormakingtruthfuldisclosuresto,anygovernmentalagency.

EventhoughMoteintendstoreleaseallclaimsthathemayhaveexistingatthetimeof,orthatMotehadpriorto,theexecutionofthisAgreement,thisAgreementdoesnotreleaseMote’srightto(i)anyvested401(k)orotherretirementbenefitstowhichheisorwillbeentitled,or(ii)anywagesMotehasearnedonorbeforethedateheexecutesthisAgreement.ThisreleasedoesnotextendtoanyclaimsMotehasmadeormaymakeforworkers’compensationorunemploymentcompensation.Also,thisAgreementdoesnotreleaseclaimsthatcannotbereleasedasamatteroflaw.Forexample,thisAgreementdoesnotreleaseclaimsundertheFairLaborStandardsActof1938.Finally,thisAgreementdoesnotreleaseanyclaimswhichMr.MotemayhaveresultingfromanybreachofthisAgreementbytheCompany.

9.FromandaftertheSeparationDate,Moteshallnotrepresenthimselfasanemployee,officer,directororrepresentativeoftheCompanyorattempttoconductbusinessinthenameoronbehalfoftheCompanyoranyofitssubsidiaries.UpontheSeparationDate,MoteagreestopromptlyreturnallitemsofCompanypropertyhehasoroverwhichhehascontrol,includingbutnotlimitedtoallkeys,records,laptopcomputer,cellphone,designs,businessplans,financialstatements,manuals,memoranda,lists,andotherpropertydeliveredtoorcompiledbyMotebyoronbehalfoftheCompany(oritssubsidiaries)oritsrepresentatives,vendors,orcustomersthatpertaintothebusinessoftheCompany(oritssubsidiaries),allequipmentbelongingtotheCompany,allcodeandcomputerprogramsand

5

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informationofwhatevernature,tools,manuals,andanyandallothermaterials,documentsorinformation,includingbutnotlimitedtoconfidentialinformationinhispossessionorcontrol,andthathewillretainnocopiesthereof.Likewise,allcorrespondence,reports,records,charts,advertisingmaterials,andothersimilardatapertainingtothebusiness,activitiesorfutureplansoftheCompany(oritssubsidiaries)thathasbeencollectedbyMoteshallbedeliveredpromptlytotheCompanyupontheSeparationDate.

10.MoteandtheCompany(togetherreferredtoasthe“Parties”)mutuallyagreetomaintaininstrictconfidence,andnottodisclose,theterms,conditions,amount,factof,andcircumstancesleadingtothemakingofthisAgreement,andanyandallactionstakeninaccordancewiththisAgreement,providedhowever,that:(a)MotemaydisclosethisAgreementtohisimmediatefamily;(b)thePartiesmaydisclosethisAgreementinconfidencetotheirrespectiveattorneys,accountants,auditors,taxpreparers,andfinancialadvisors;(c)theCompanymaydisclosethisAgreementasnecessarytotheBoardofDirectorsandCompanyemployeesforbusiness-relatedreasons,ortootherstofulfillstandardorlegallyrequiredcorporatereportingordisclosurerequirements;(d)MotemaydisclosethisAgreementpursuanttoParagraph8,and(e)thePartiesmaydisclosethisAgreementinsofarassuchdisclosuremaybenecessarytoenforceitstermsorasotherwiserequiredbylaw.Further,thePartiesrepresentthattheyhavenotdisclosedthefactof,orthetermsofthisAgreementandreceiptofthepaymentdescribedinParagraph2toanyone,otherthanthepermitteddisclosuresreferencedabove,atanytimepriortoexecutionofthisAgreement.MotespecificallyacknowledgesandagreesthatheshallnotdisclosethetermsorexistenceofthisAgreementtoanycurrentorformerCompanyemployeeinanymanner,whetherinwritingororally,directlyorindirectly,orbyorthroughanagent,representative,attorneyoranyothersuchperson.

11.Allnotices,requests,consentsandothercommunicationshereunderthatarerequiredtobeprovided,orthatthesenderelectstoprovide,inwriting,willbeaddressedtothereceivingparty’saddresssetforthbelowortosuchotheraddressasapartymaydesignatebynoticehereunder,andwillbeeither(i)deliveredbyhand,(ii)sentbyovernightcourier,or(iii)sentbyregisteredorcertifiedmail,returnreceiptrequested,postageprepaid.IftotheCompany:

IftoMote: SummerInfant(USA),Inc.

WilliamE.Mote,Jr.SummerInfant,Inc.

12GloucesterStreet,#11275ParkEastDrive

Boston,Massachusetts02115Woonsocket,RhodeIsland02895

Attn:MaryBethSchneider,VP/GeneralCounsel

12.Moteacknowledges,representsandwarrantsthatheentersintothisAgreementknowingly,voluntarily,freeofduressorcoercion,andwithafull

understandingofalltermsandconditionscontainedherein.

13.ShouldanyprovisioninthisAgreementbedeclaredordeterminedtobeillegalorinvalidthevalidityoftheremainingparts,terms,orprovisionsshallnotbeaffected

6

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andtheillegalorinvalidpart,term,orprovisionsshallbedeemednottobepartofthisAgreement.

14.ThisAgreementandtheagreementsreferencedherein,includingtheRestrictiveAgreement,constitutetheentireagreementbetweentheparties,andsupersedealloralnegotiationsandanypriorandotherwritingswithrespecttothesubjectmatterofthisAgreement,andareintendedbythepartiesasthefinal,completeandexclusivestatementofthetermsagreedtobythem.

15.ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofRhodeIsland.

16.ThisAgreementshallbebindinguponthepartiesandmaynotbeamended,supplemented,changed,ormodifiedinanymanner,orallyorotherwise,exceptbyaninstrumentinwritingofconcurrentorsubsequentdatesignedbytheCompanyandMote.

17.MoteagreesthathemaynotassignanyofhisrightsordelegateanyofhisdutiesunderthisAgreement.TherightsandobligationsoftheCompanyshallinuretothebenefitoftheCompany’ssuccessorsandassigns.

18.ThisAgreementshallnotinanywaybeconstruedasanadmissionbyeithertheCompanyorMotethatitorhehasactedwrongfullywithrespecttotheotherandboththeCompanyandMotespecificallydenythecommissionofanywrongfulactsagainsttheother.

19.Moteagreesthathewillnotmakeanywrittenororalstatementortakeanyactionwhichheknowsorreasonablyshouldknowconstitutesanuntrue,disparaging,ornegativecommentconcerningtheCompany.

20.ThisAgreementdoesnotvoidornullifytheprovisionsoftheNon-Competition,Non-DisclosureandDevelopmentsAgreementsignedbyyou,acopyofwhichisattachedasExhibitA,whichremainsinfullforceandeffect.

21.ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemedtobeanoriginalbutallofwhichtogetherconstituteoneandthesameinstrument.

[RemainderofPageIntentionallyLeftBlank]

7

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INWITNESSWHEREOF,thepartiesexecutethisAgreementasofthedateindicatedbelow.

I have read this Agreement and understand that if I sign it I will be giving up important rights. I have been given ample opportunity to consult with andreview this Agreement with an attorney of my choice. By signing below, I acknowledge that I willingly, voluntarily, and knowingly accept and agree to allthe terms and conditions of this Agreement./s/WilliamE.Mote,Jr.

12/05/2018WilliamE.Mote,Jr.

Date EMPLOYEEID:

SummerInfant(USA),Inc.and

SummerInfant,Inc.

/s/MarkMessner

By: MarkMessner

Title: President&CEO

Date: November27,2018

8

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Exhibit A

Non-Competition, Non-Disclosure and Developments AgreementDated October 7, 2014

9

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Exhibit23.1

ConsentofIndependentRegisteredPublicAccountingFirm

WeconsenttotheincorporationbyreferenceintheRegistrationStatements(Nos.333-156725,333-191405,333-206682,333-206683,and333-212947)onFormS-8andRegistrationStatement(No.333-218891)onFormS-3ofSummerInfant,Inc.andSubsidiariesofourreportdatedFebruary20,2019,relatingtotheconsolidatedfinancialstatementsofSummerInfant,Inc.andSubsidiariesappearinginthisAnnualReportonForm10-KofSummerInfant,Inc.andSubsidiariesfortheyearendedDecember29,2018.

/s/RSMUSLLPRSMUSLLPBoston,MAFebruary20,2019

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Exhibit23.1

ConsentofIndependentRegisteredPublicAccountingFirm

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Exhibit31.1

CERTIFICATIONOFCHIEFEXECUTIVEOFFICER

I,MarkMessner,certifythat:

1.IhavereviewedthisAnnualReportonForm10-KofSummerInfant,Inc.;

2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

(a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and

5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.

Date:February20,2019 /s/MARKMESSNER

MarkMessnerChief Executive Officer

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Exhibit31.1

CERTIFICATIONOFCHIEFEXECUTIVEOFFICER

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Exhibit31.2

CERTIFICATIONOFCHIEFFINANCIALOFFICER

I,PaulFrancesecertifythat:

1.IhavereviewedthisAnnualReportonForm10-KofSummerInfant,Inc.;

2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport.;

3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport.;

4.Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

(a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and

5.Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.

Date:February20,2019 /s/PAULFRANCESE

PaulFranceseChief Financial Officer

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Exhibit31.2

CERTIFICATIONOFCHIEFFINANCIALOFFICER

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Exhibit32.1

SECTION1350CERTIFICATION

InconnectionwiththeAnnualReportonForm10-KofSummerInfant,Inc.(the"Company")fortheyearendedDecember29,2018(the"Report"),asfiledwiththeSecuritiesandExchangeCommissiononthedatehereof,I,MarkMessner,ChiefExecutiveOfficeroftheCompany,certifypursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2002,that:

1.TheReportfullycomplieswiththerequirementsofsection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78m(a)or78o(d));and

2.TheinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

Date:February20,2019 /s/MARKMESSNER

MarkMessnerChief Executive Officer

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Exhibit32.1

SECTION1350CERTIFICATION

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Exhibit32.2

SECTION1350CERTIFICATION

InconnectionwiththeAnnualReportonForm10-KofSummerInfant,Inc.(the"Company")fortheyearendedDecember29,2018(the"Report"),asfiledwiththeSecuritiesandExchangeCommissiononthedatehereof,I,PaulFrancese,ChiefFinancialOfficeroftheCompany,certifypursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2002,that:

1.TheReportfullycomplieswiththerequirementsofsection13(a)or15(d)oftheSecuritiesExchangeActof1934(15U.S.C.78m(a)or78o(d));and

2.TheinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

Date:February20,2019 /s/PAULFRANCESE

PaulFranceseChief Financial Officer

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Exhibit32.2

SECTION1350CERTIFICATION


RE IMAG INE - AICPA Global...2 As the Association was developing its 2019 Integrated Report, the devastating and long-lasting effects of COVID-19 were becoming increasingly clear

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