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TABLE OF CONTENTS
JAMBA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2013, JANUARY 1, 2013 AND
JANUARY 3, 2012
1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business — Jamba, Inc. consummated its initial public offering in July 2005. On March 10, 2006, Jamba, Inc. entered into an
Agreement and Plan of Merger with Jamba Juice Company (the “Merger Agreement”). On November 29, 2006 (the “Merger Date”), the
Jamba, Inc. consummated the merger with Jamba Juice Company (the “Merger”) whereby Jamba Juice Company became its wholly owned
subsidiary. Jamba, Inc. was incorporated in January 2005, and went public through an initial public offering later that year. In November
2006, the Company completed its acquisition of Jamba Juice Company, which first began operations in 1990.
Jamba, Inc. through its wholly-owned subsidiary, Jamba Juice Company, is a healthy, active lifestyle brand with a global business
driven by a portfolio of company-owned and franchised Jamba Juice® stores, innovative product platforms that utilize our JambaGO® and
Jamba Smoothie StationTM formats, and Jamba-branded consumer packaged goods. As a leading “better-for-you,” specialty food and
beverage brand, Jamba offers great tasting, whole fruit smoothies, fresh squeezed juices and juice blends, hot teas, and a variety of food
items including, hot oatmeal, breakfast wraps, sandwiches, Artisan FlatbreadsTM, baked goods and snacks in our restaurants. Jamba
Juice Company has expanded the Jamba brand by direct selling of consumer packaged goods (“CPG”) products and licensing its
trademarks.
As of December 31, 2013, there were 851 Jamba Juice stores globally, consisting of 268 Company-owned and operated stores
(“Company Stores”), 535 franchise-operated stores (“Franchise Stores”) in the United States, and 48 franchise-operated stores at
international locations (“International Stores”).
Basis of Presentation — The consolidated financial statements include the accounts of the Company and its wholly owned
subsidiary, Jamba Juice Company. All intercompany balances and transactions have been eliminated. The equity method of accounting is
used to account for the joint venture owned by Jamba Juice Company because Jamba Juice Company exercises significant influence over
operating and financial policies of its partners. Accordingly, the carrying value of this investment is reported in other long-term assets, and
the Company’s equity in the net income and losses of this investment is reported in other operating, net.
Fiscal Year End — Our fiscal year ends on the Tuesday closest to December 31. The Company’s most recently completed fiscal year,
referred to as fiscal 2013, started on January 2, 2013, and ended on December 31, 2013, and had 52 weeks. The Company’s fiscal 2012,
started on January 4, 2012 and ended on January 1, 2013, and had 52 weeks, and fiscal 2011, started on December 29, 2010, and ended
on January 3, 2012, and had 53 weeks.
Significant Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities,
revenue and expenses and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ
from those estimates, and such differences could affect the results of operations reported in future periods.
Reverse Stock Split — Effective May 31, 2013, the Company filed a Certificate of Amendment to its Amended and Restated Certificate
of Incorporation, as amended, and consummated a five-for-one reverse stock split (“Reverse Stock Split”) of its issued and outstanding
common stock, $0.001 par value per share. The Reverse Stock Split and the Certificate of Amendment were approved by the Company’s
stockholders at the Company’s Annual Meeting of Stockholders held on May 14, 2013 for stockholders of record as of the close of business
on March 20, 2013.
On the effective date of the Reverse Stock Split, every five shares of the Company's issued and outstanding common stock were
combined into one issued and outstanding share of the Company's common stock, without any change in the par value per share. No
fractional shares were issued as a result of the Reverse Stock Split. Stockholders who otherwise were entitled to receive a fractional share in
connection with
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