UsetheselinkstorapidlyreviewthedocumentTABLEOFCONTENTSSummerInfant,Inc.andSubsidiariesIndextoFinancialStatements

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

ForthefiscalyearendedDecember31,2016

Or

o TRANSITIONREPORTPURSUANTTOSECTION13or15(d)OFTHESECURITIESEXCHANGEACTOF1934

Forthetransitionperiodfromto

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

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerorasmallerreportingcompany.Seethedefinitionsof"largeacceleratedfiler,""acceleratedfiler"and"smallerreportingcompany"inRule12b-2oftheExchangeAct.

Indicatebycheckmarkwhetherregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).YesoNoý

Theaggregatemarketvalueoftheregistrant'svotingandnon-votingcommonequityheldbynon-affiliatesasofJuly1,2016,was$17.7million.Forpurposesofthiscomputation,allofficers,directors,and10%beneficialownersoftheregistrantaredeemedtobeaffiliates.Suchdeterminationshouldnotbedeemedtobeanadmissionthatsuchofficers,directors,or10%beneficialownersare,infact,affiliatesoftheregistrant.

Thenumberofsharesissuedandoutstandingoftheregistrant'scommonstockasofFebruary20,2017was18,506,617(excludingunvestedrestrictedsharesthathavebeenissuedtoemployees).

DOCUMENTSINCORPORATEDBYREFERENCE

Portionsoftheregistrant'sProxyStatementforits2017AnnualMeetingofStockholdersareincorporatedbyreferenceintoPartIIIofthisAnnualReportonForm10-K.

Largeacceleratedfilero Acceleratedfilero Non-acceleratedfilero(Donotcheckifa

smallerreportingcompany)

Smallerreportingcompanyý

TableofContents

INDEXTOFORM10-KFORTHEFISCALYEARENDEDDECEMBER31,2016

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 27ITEM8. FinancialStatementsandSupplementaryData 27ITEM9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 27ITEM9A. ControlsandProcedures 27ITEM9B. OtherInformation 28

PARTIII ITEM10. Directors,ExecutiveOfficersandCorporateGovernance 29ITEM11. ExecutiveCompensation 29ITEM12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 29ITEM13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 29ITEM14. PrincipalAccountingFeesandServices 29

PARTIV ITEM15. ExhibitsandFinancialStatementSchedules 30SIGNATURES 31

TableofContents

PARTI

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

Item1.Business

Overview

Weareapremierinfantandjuvenileproductscompanyoriginallyfoundedin1985andhavepubliclytradedontheNasdaqStockMarketsince2007underthesymbol"SUMR."Wearealeaderinproductinnovationinthejuvenileindustry,providingmothersandcaregiversafullrangeofhighquality,highvalueproductstocareforbabiesandtoddlers.Weseektoimprovethequalityoflifeofbothcaregiversandbabiesthroughourproductofferings,whileatthesametimemaximizingshareholdervalueoverthelongterm.

Weoperateinoneprincipalindustrysegmentacrossgeographicallydiversemarketplaces,sellingourproductsgloballytolarge,nationalretailersaswellasindependentretailers,andonourpartner'swebsitesandourownsummerinfant.comwebsite.InNorthAmerica,ourcustomersincludeBabiesRUs,Amazon.com,Wal-Mart,Target,BuyBuyBaby,HomeDepot,andLowe's.OurlargestEuropean-basedcustomersareArgos,Amazon,ToysRUs,andMothercare.Wealsosellthroughinternationaldistributors,representatives,andtoselectinternationalretailcustomersingeographiclocationswherewedonothaveadirectsalespresence.

Weestimatethesizeofthejuvenileproductsmarkettobe$25billionworldwide,withconsumersfocusingonquality,safety,innovation,andstyle.Webelievewearepositionedtocapitalizeonpositivemarkettrendsinthejuvenileproductsindustry,includingapredictedincreaseinU.S.birthratesoverthenextseveralyears.

StrategicPriorities

Wearealeadingglobaljuvenileproductscompanythatprovidesafullrangeofinnovative,highquality,highvalueproductsthatmeetthedemandsofparents.In2016ourmanagementteamwasstrengthenedbytheappointmentofMarkMessnerasourChiefExecutiveOfficerandArtGehrasourChiefProductOfficer,eachofwhomhasover20yearsofexperienceinthejuvenileproductindustry.Asweenter2017,wewillcontinuetofocusonourcoreproductsandbrandbuilding,ourkeycustomerrelationshipsandcreatingaroadmapforsustainablegrowthin2017andbeyond.Ourmanagementteamwillcontinuetoexecuteonthekeystrategicprioritiesthatwebelievewillsupportourfuturegrowth:

• Continuouslystrivefordifferentiatedinnovation.Wecontinuouslyseektocreatedifferentiated,innovativesolutionsforconsumerswhodemandhighquality,longlasting,andsafeproducts.Weprideourselvesasleadersofinnovationwithinthejuvenileproductsindustrythatprovidedifferentiatedsolutionsfromourcompetitors.Wedeliverinnovationinvariouswaysbasedupontheproductcategory.Weoffersleekandsimpledesigninnovationinpotties,deliverinnovativeconveniencefeaturesinstrollers,implementnewtechnologyintoourbabyvideomonitors,anddeliverinnovative,safe-sleepsolutionswithinourSwaddleMe®brandedproductline.

• Increaseawarenessofourbrands.In2016,werelaunchedallofourcorebrandsandpackaginginordertoextendtherelevanceofourproductswithourcustomersandconsumers.Wearecommittedtoinvestinginourcorebrandstoincreasebrandawareness.In2017,wearelaunchingmarketingcampaignsthatwillreachacrossprint,digital,andsocialmediachannels.Weareworkingcloselywithourretailpartnerstoincreasebrandpresencewithintheirstoresandonline.Wearealsoparticipatingandsponsoringover50consumereventsacrossthecountry

3

TableofContents

inanefforttocontinuetostrengthenourbrandandproductrecognition.Webelievethataligningourcorebrandswithourtargetmarket'svaluesincreasesbrandawarenessandalsodrivesbrandaffinity.Ourgoalistobecomethe#1babybrandrecommendedbyparents.

• Continuouslyconnectwithconsumers.Weseektoconnectwithourconsumersacrossmultiplemediachannels.Weofferthreebrandedsocialchannels(SummerInfant,SwaddleMe,andBornFree)acrossmultiplesocialmediaplatforms(Facebook,Twitter,Instagram,Pinterest,etc.).Weuseinnovativewaystoincreaseourreachwithintheseplatformssuchasadvertisements,campaigns,andsweepstakes.OursocialchannelshavecontinuedtogrowsignificantlyyearoveryearandSummerInfantisamongthelargestfollowedwithintheindustry.Additionally,inthesecondquarterof2017weexpecttorelaunchourwebsite.Wedesignedournewwebsitetobeatrustedresourceofinformationforparentsandaplacewhereconsumerscanpurchasetheirfavoriteproductsforeverystageandagefortheirlittleone.Wealsouseconsumerresearchasanavenuetoconnectwithconsumers.Ourconsumerresearchisconductedinnumerouswaysincludingfocusgroups,in-homeethnographystudies,on-linesurveys,home-usertesting,andproductreviews.Insightsfromourresearcharestudiedandintegratedwithournewproductdevelopmentinitiativesandourcontinuouseffortforproductimprovements.Ourconsumerdatabaseisalsogrowingwhichallowsustoengageindirectmarketingopportunitiessuchasemailnewslettersandpromotions.

• Operationalefficiencies.Wecontinuetorefineouroperatingmodelaswebringmorefocustoourstrategicpriorities.TheseinitiativesincludeSKUrationalization,doingmoredirectimportbusinessasweemphasizecoregrowthcategories,andevaluatingthelevelofdropshippartnershipsgoingforward.Wearealsoimprovingouranalyticandforecastingcapabilities,productdevelopmentprocess,andmanagementofworkingcapital.Webelievetheseinitiativeswillcontinuetostreamlineoperations.

• Maintainandgrowourpartnerships.WehavestrongpartnershipswithoursuppliersintheUSandAsia.Webelievethatourflexibilitytodevelopproductsthatareconsumerpreferredandcost-efficientisacompetitiveadvantageinmeetingourcustomerdemands.Wehavelong-standingrelationshipswithourbrickandmortarandoure-commerceretailcustomersintheU.S.Wevaluetheserelationshipsandwillcontinuetofocusonstrengtheningthemtoincreaseourpresenceinstoresandonline.WewillcontinuetofurtherdevelopourrelationshipsoutsidetheU.S.toexpandourbusinessinternationally.WehavefocusedoureffortsongrowingourEuropean,CanadianandAsianmarketpresencebygrowingourcustomerbaseandestablishingnewdistributorrelationships.Weseeourinternationalbusinessashavingsignificantpotentialforgrowthandexpansion.

Byfocusingonthesekeystrategicpriorities,weexpecttodrivefuturesalesgrowth,improveprofitabilityandreturnoncapital,andfurtherdevelopandstrengthenourrelationshipswithoursuppliers,ourcustomersandtheconsumerswhouseourproducts.

Products

Wecurrentlymarketover1,100productsinseveralproductcategoriesincludingmonitoring,safety,nursery,babygear,andfeedingproducts.Wemarketourcoreproducts,underourSummerInfant®,SwaddleMe®,andBornFree®brandnames.Nosingleproductgeneratedmorethan10%ofsalesforthefiscalyearendedDecember31,2016("fiscal2016").

4

TableofContents

Anchorproductsinourproductcategoriesincludethefollowing:

Monitoring

Ourmonitorswerefirstintroducedin2001andaredistinguishedbypremiumquality,easeofuse,andinnovativefeatures.Currently,weofferaudio,videoandinternetviewablemonitors,andanewwearableaudiomonitormarketedundertheSummerInfant®brand.Ourmonitorshaveledthewayininnovationwithinthecategoryandfeaturehighqualitycomponents,intendedtofulfillthedesireforconsumerstoconnectwithbabyatanytimeorplace.Infiscal2016,welaunchedourawardwinningBabbleBand™,thefirsteverwearableaudiomonitorandtheLivCam™,aportablebatteryoperatedbabymonitorthatstreamslivevideodirectlytosmartdeviceswithoutwifiorcellularservice.Infiscal2017,wearelaunchinganewlineofbabyvideomonitorsthatwillintroduceinnovationinstyleanddesignwhileincludingqualityimprovementsinpicturequality,batterylife,andrange.Weconsidermonitoringtobeoneofourcorecategoriesandexpecttobepositionedinthesecondhalfof2017togainincrementalshelfspacewithadditional,newinnovativemonitors.

Safety

Oursafetylineencompassesgates,bedrails,babyproofing,potties,bath,positioners,andinfanthealth.WeareaNorthAmericanmarketleaderinthegatecategory,withaproductrangeofover30gates.Ourlineofgatesofferversatilitythatcoversuseinhome,easeofinstallation,andaestheticallypleasingdesigns.Infiscal2017,wewillintroduceanewlineofgatesthatareontrendwithhomedécorsuchasthenewRusticHome,ModernHome,andClassicHomedesigns.Wearepartneringwithstrategicdesigninfluencerstohelpbringabroaderawarenesstothedesignersegmentofthecategory.

Infiscal2015,weintroducedtheMySizePotty™.Thissimplydesignedpottyhasbecomehighlyrecognizedandisabestsellerformajorretailersnationwide.Infiscal2016,theMySizePottywasthemosttaggedproductbyconsumersonsocialmediawithinourportfolioofproducts.

Wefirstenteredtheinfantbathingcategoryin2002,andwehavecontinuedtocreateinnovativeandsafesolutionsforbathing.Infiscal2017,weexpecttolaunchourredesignedLil'LuxuriesWhirlpoolandSpaplatformsandRightHeightTubplatform.TheRightHeightTub,introducedinfiscal2010,wasthefirstinfantbathtubthatelevatedbabyforparentcomfortandconvenience.OurredesignedRightHeightTubwillofferthatsamekeybenefitwithamodernsleekdesign,largernewbornbathslingandintegratednon-slipsmarthumpforamorerelaxedbathingexperienceforbothparentandbaby.

Nursery

OurnurserylineincludesourcorebrandofSwaddleMe®wearableblanketsaswellasourexpandedlineofsafesleepproductssuchassleepaidesandsoothers.Acquiredin2008,SwaddleMe®continuestobeabrandsynonymouswithinfantsafesleep.Infiscal2015,werefreshedthispopularlinewhichallowedustoexpandourchannelsoftradeaswellasourselectionofproductinthisgrowingcategory.Infiscal2016,weintroducedtheByYourSideSleeperwhichprovidedasafeco-sleepingsolutionforparents.Infiscal2017,weexpecttointroducetheByYourBedSleeper,which

5

Monitoring Safety Nursery BabyGear FeedingProductsWi-Fi/Internet Gates Swaddle Strollers Bottles

Video Bath TravelAccessories Bassinets DrinkingCupsAudio Potties SafeSleep HighChairs Bibs&PlacematsPrenatal Boosters Soothers Playards Electronics

Positioners SleepAides Pacifiers

TableofContents

isaraisedbassinetwithaninclineoptionthatfitssnugalongsideparentsbed.BothsleeperspromoteroomsharingwhichisnowrecommendedbytheAmericanAcademyofPediatrics(AAP).

Baby Gear

Sincethesuccessfullaunchofour3Dlite™ConvenienceStrollerinfiscal2014,wehavecontinuedtoexpandour3Dlineoflightweight,affordable,featurerichstrollers.Infiscal2015weincludedthe3D-one™and3Dflip™andinfiscal2016,welaunchedourfirstdualstroller,the3Dtwo™.In2017,weexpecttocontinuetodeliverrevolutionaryconveniencefeatureswiththeintroductionofthe3Dtote™and3Dtrek.Thesefullyfeaturedstrollersweredevelopedbaseduponconsumerdemandformorestorage,abilitytoholddiaperbagsandadaptabilityforinfantcarseats.Withauniquegeometricdesign,theseplatformsincludediaperbagclipsforhangingadiaperbagonthehandleswithouttipping.Thesestrollerswillalsoofferanextralargestoragebasket,pocketsandloopsforstoringallyourbabysupplies.Wewillbelaunchingamarketingcampaigninearly2017toshowcaseallplatformswithinthe3Dline:3Dlite™,3D-one™,3Dflip™,3Dtwo™,3Dtote™,and3Dtrek.

OurPop'nPlayPortablePlayardwasintroducedinfiscal2014,drivenfromconsumerinsightsontheir"on-the-go"lifestyles.Compact,foldable,lightweightandportable,thePop'nPlayPortablePlayardhasbeenwellreceived.Infiscal2015,weexpandedthelinetoincludeaportablebooster,highchair,andentertainerandlaunchedanewsub-brandforthecollection,POP(portableon-the-goproducts).In2017,weexpectthePOPlineofproductstobecarriedbyallourmajorretailpartners.

Feeding Products

WeacquiredtheBornFree®brandin2011toprovidecalm,safefeedingsolutions.ThepremiumBornFree®Bottlecontinuestobethecoreproductinthefeedingcategorythathasevolvedtoincludepacifiers,drinkingcups,bibs,andelectronics.Inthefirstquarteroffiscal2016,welaunchedarevolutionarynewbottle,Breeze™,whichwebelievefeaturestheonly2piecedesignbottleinthemarketplacetoday.

ProductDevelopmentandDesign

Innovationdrivesourproductdevelopment,acriticalelementofourstrategy.Westrivetoproduceproprietaryproductsthatofferdistinctivebenefits,arevisuallyappealing,andprovidesafe,thoughtfulsolutionstotheconsumer.Ourretailcustomersarestrategicallymotivatedtobuyinnovativeproductstoprovidedifferentiationfromtheircompetitors.

WedesignthemajorityofourproductsatourRhodeIslandheadquarters,leveragingourinternalproductdevelopmentteams.WealsohavedevelopmenteffortsinourChinaandUnitedKingdomoffices.Inadditiontonewproductdevelopment,wecontinuouslylookforwaystoimproveuponexistingproductsbasedonconsumerinsights,withastrongfocusontheend-userexperienceandproductsafety.

Weengageinmarketresearchandtestmarketingtoevaluateconsumerreactionstoourproducts,bothpre-andpost-production.Ourproductdevelopmentteamandsalesforceareessentialinresearchingconsumerbuyingtrendsandanalyzinginformationfromretailstores,customersurveys,focusgroups,on-linesurveys,industryexpertsandvendorrecommendations.Wecontinuallyevaluateourproductstodeterminewhethertheyshouldbeupgraded,modified,orreplaced.

SuppliersandManufacturing

ThemajorityofourproductsaremanufacturedinAsia(primarilyChina).WealsouseseveralmanufacturersintheUnitedStatesforcertaininjection-moldedproducts,includingbathtubs,potty

6

TableofContents

seatsandboosterseats,whichtogetheraccountedforapproximately17%ofourannualsalesinfiscal2016.

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

Asian-madegoodsareshippedonthewatertoourwarehouses,whichtypicallytakesfourweeks.Wealsoutilizeadirectimportprogram,toreducecostsandshippingtimetocertaincustomers.WemaintaininventoryinwarehouseslocatedintheUnitedStates,Canada,UnitedKingdomandAustralia.Mostofourcustomerspickuptheirgoodsatourwarehouses.Wealsodelivershipmentsdirecttocustomersforsalesfromourownwebsiteandourconsumerreplacementsprogramaswellasforothersmallerretailpartnersthatrequestsucharrangements.

SalesandMarketing

Ourproductsarelargelymarketedandsoldthroughourowndirectglobalsalesforce.Oure-commercesaleshavecontinuedtogrowyearoveryear,whichisconsistentwithincreasedonlineshoppingbyconsumers.Wehavealsoestablishedastrongnetworkofindependentmanufacturers'representativesanddistributorstoprovidesalesandcustomerservicesupportfortheremainingportionofNorthAmericanandinternationalsales.

Salesarerecognizedupontransferoftitletoourcustomersandaremadeutilizingstandardcredittermsof30to60days.Wegenerallyacceptreturnsonlyfordefectivemerchandise.

Marketing,promotionandconsumerengagementarekeyelementsinthejuvenileproductsindustry.Historically,asignificantpercentageofourpromotionalspendinghasbeenstructuredincoordinationwithourlargeretailpartners.Infiscal2017,weexpecttofocusourmarketingeffortsonbuildingbrandawareness,promotingourbestsellingproductsandkeyproductlaunches,engagingwithconsumersacrossmultiplemediachannels,andsupportingourretailpartnerstoestablishbrandpresencebothinstoreandonline.Wewillinvestinourbrandswithadvertisingcampaigns,consumerengagementsprograms,andwewilllaunchournewconsumerecommercewebsite.Overall,wearestrategicallypositioningourselvesforenhancedfuturegrowthviabrandawarenessandbrandaffinity.

Customerserviceisacriticalcomponentofourmarketingstrategy.Wemaintainaninternalcustomerservicedepartmentthatrespondstocustomerinquiries,investigatesandresolvesissues,andisavailabletoassistcustomersandconsumersduringbusinesshours.

Competition

Thejuvenileproductindustryhasmanyparticipants,noneofwhichhasdominantmarketshare,thoughcertaincompaniesmayhavedisproportionatestrengthinspecificproductcategories.Wecompetewithanumberofdifferentcompaniesinavarietyofcategories,althoughthereisnosinglecompanythatcompeteswithusacrossallofourproductcategories.OurlargestdirectcompetitorsareMotorola®(alicensedbrandofBinatoneCommunicationsGroup),Munchkin®,GB®(GoodbabyInternationalHoldings,Ltd.),Graco®(asubsidiaryofNewellRubbermaid),Chicco®,Fisher-Price®(asubsidiaryofMattel,Inc.),andAden&Anais®

Theprimarymethodofcompetitionintheindustryconsistsofbrandpositioning,productinnovation,quality,price,andtimelydistribution.Ourcompetitivestrengthsincludeourabilityto

7

TableofContents

developinnovativenewproducts,speedtomarket,ourrelationshipswithmajorretailers,andthequalityandpricingofourproducts.

IntellectualProperty

Werelyonacombinationofpatents,licensesandtradesecretstoprotectourintellectualproperty.Ourcurrentpatentsincludevariousdesignfeaturesrelatedtosafetygates,bouncers,andbathers,withseveralotherpatentsunderreviewbytheUnitedStatesPatentandTrademarkOffice(USPTO).Thesepatentsexpireatvarioustimesduringthenext20years.Wealsohavelicenseagreementsinplacerelatedtotheuseofpatentedtechnologyownedbythirdpartiesincertainofourproducts.Incertaincircumstances,wewillpartnerwiththirdpartiestodevelopproprietaryproducts.

Customers

SalestotheCompany'stopsevencustomerstogethercomprisedmorethan75%ofoursalesinfiscal2016and73%ofoursalesinfiscal2015.Ofthesecustomers,fourgeneratedmorethan10%ofsalesforfiscal2016:BabiesRUs/ToysRUs(20%),Amazon.com(20%),Walmart(15%),andTarget(11%).Infiscal2015,fourcustomersgeneratedmorethan10%ofsales:BabiesRUs/ToysRUs(23%),Walmart(14%),Amazon.com(14%)andTarget(12%).

Wehavenolong-termcontractswiththesecustomers,andasaresult,oursuccessdependsheavilyonourcustomers'willingnesstopurchaseandprovideshelfspaceforourproducts.

Seasonality

Wedonotexperiencesignificantvariationsinseasonaldemandforourproducts.However,weexpecttogeneratehigherthanaveragevolumesfortheinitialshipmentofnewproductswhichtypicallyincludesenoughinventorytofilleachstoreplusadditionalamountstobekeptatthecustomer'sdistributioncenter.Thetimingoftheseinitialshipmentsvariesbycustomerdependingonwhentheyfinalizestorelayoutsfortheupcomingyearandwhetherthereareanymid-yearproductintroductions.

GeographicRegions

NorthAmericaaccountedforapproximately92%and91%ofourtotalnetsalesinfiscal2016andfiscal2015,respectively.Wemaintainsales,marketing,anddistributionofficesinCanadaandEngland,whichservicestheUnitedKingdomandotherpartsofEurope.Wealsomaintainaproductdevelopment,engineeringandqualityassuranceofficeinHongKong.

RegulatoryMatters

Eachofourproductsisdesignedtocomplywithallapplicablemandatory,voluntaryandindustrysafety,labeling,andmarketingstandards.IntheUnitedStates,thesesafetystandardsarepromulgatedbyfederal,stateandindependentagenciessuchastheUSConsumerProductSafetyCommission,ASTM,theJuvenileProductsManufacturersAssociation,theFederalCommunicationsCommission,theFoodandDrugAdministration,theFederalTradeCommission,andvariousstatesAttorneyGeneralandstateregulatoryagencies.AllofourproductsareindependentlytestedbythirdpartylaboratoriesaccreditedbytheConsumerProductSafetyCommission,toverifycompliancetoapplicablesafetystandards.Asimilarapproachisusedtodesignandtestproductssoldinternationally.

Insurance

Wecarryproductliabilityinsurancethatprovidesuswith$15millioncoveragewithaminimaldeductible.Weconsultwithourinsurerstoascertainappropriateliabilitycoverageforourproductmix.Webelieveourcurrentcoverageisadequateforourexistingbusinessandwillcontinuetoevaluateourcoverageinthefutureinlinewithourexpandingsalesandproductbreadth.

8

TableofContents

Employees

AsofDecember31,2016,wehad209employees,202whowerefulltimeemployees,and108ofwhomworkinourheadquarters.

AvailableInformation

TheCompanyisincorporatedunderthelawsoftheStateofDelaware.Ourprincipalexecutiveofficesarelocatedat1275ParkEastDrive,Woonsocket,RhodeIsland02895,andourtelephonenumberis(401)6716550.

Wemaintainourcorporatewebsiteatwww.summerinfant.comandwemakeavailable,freeofcharge,throughthiswebsiteourannualreportonForm10-K,quarterlyreportsonForm10-Q,currentreportsonForm8-K,andamendmentstothosereportsthatwefilewith,orfurnishto,theSecuritiesandExchangeCommission("SEC"),assoonasreasonablypracticableafterweelectronicallyfilethatmaterialwith,orfurnishitto,theSEC.YoumayalsoreadandcopyanymaterialfiledbyuswiththeSECattheSEC'sPublicReferenceRoomat100FStreet,N.E.,Washington,D.C.20549,andyoumayobtaininformationontheoperationofthePublicReferenceRoombycallingtheSECintheU.S.at1-800-SEC-0330.Inaddition,theSECmaintainsanInternetwebsite,www.sec.gov,thatcontainsreports,proxyandinformationstatementsandotherinformationthatwefileelectronicallywiththeSEC.Ourwebsitealsoincludescorporategovernanceinformation,includingourCodeofEthicsandourBoardcommitteecharters.Theinformationcontainedonourwebsitedoesnotconstituteapartofthisreport.

Item1A.RiskFactors

Ifanyoftheeventsorcircumstancesdescribedinthefollowingrisksactuallyoccur,ourbusiness,financialconditionorresultsofoperationscouldbemateriallyadverselyaffectedandthetradingpriceofourcommonstockcoulddecline.

The concentration of our business with certain retail customers means that economic difficulties or changes in the purchasing policies of these customerscould have a significant impact on our business and operating results.

Infiscal2016,salestoBabiesRUs/ToysRUs,Amazon.com,Wal-MartandTargetaccountedfor66%ofourtotalsales.Wedonothavelong-termcommitmentsorcontractswithanyofourretailcustomers,andretailersmakepurchasesbydeliveringone-timepurchaseorders.Assuch,anycustomercouldperiodicallyrenegotiatethetermsofourbusinessrelationshipatanytime,whichmightincludereducingoverallpurchasesofourproducts,alteringpricing,reducingthenumberandvarietyofourproductscarriedandtheshelfspaceallottedforourproducts,andreducingcooperativeadvertisingorpromotionsupport.Becauseofthecurrentconcentrationofourbusinesswiththeseretailcustomers,achangeinourrelationshipwithanyofthesecustomerscouldadverselyaffectourresultsofoperationsandfinancialcondition.Furthermore,thebankruptcyorotherlackofsuccessofoneormoreofoursignificantretailcustomerscouldnegativelyimpactourrevenuesandprofitability.

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

Thesaleswemaketocustomersaretypicallymadeoncreditwithoutcollateral.Thereisariskthatkeycustomerswillnotpayorthatpaymentmaybedelayed,becauseofbankruptcy,contractionofcreditavailabilitytosuchcustomers,weakretailsales,orotherfactorsbeyondourcontrol,whichcouldincreaseourexposuretolossesfrombaddebts.Inaddition,ifkeycustomersweretoceasedoingbusinessasaresultofbankruptcy,orsignificantlyreducethenumberofstoresoperated,itcouldhaveasignificantadverseeffectonourbusiness,financialcondition,andresultsofoperations.

9

TableofContents

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.Ourproductofferingscompetewiththoseofmanyotherlargercompanies.Manyofthesecompaniesenjoybroaderbrandrecognitionandhavesignificantdistributionchannelrelationshipsinplace,andasaresult,ourmarketpositionisalwaysatrisk.

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

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

Indevelopingnewproductsandproductlines,wehaveanticipateddatesfortheassociatedproductintroductions.Whenwestatethatwewillintroduce,oranticipateintroducing,aparticularproductorproductlineatacertaintimeinthefuture,thoseexpectationsarebasedoncompletingtheassociateddevelopment,implementation,marketingwork,andmanufacturinginaccordancewithourcurrentlyanticipateddevelopmentschedule.Theriskisalsoheightenedbythesophisticationofcertainproductswearedesigning,intermsofcombiningdigitalandanalogtechnologies,utilizingdigitalmediatoagreaterdegree,andprovidinggreaterinnovationandproductdifferentiation.Unforeseendelaysordifficultiesinthedevelopmentprocess,significantincreasesintheplannedcostofdevelopment,changesinanticipatedconsumerdemandforourproducts,anddelaysinthemanufacturingprocessmaycausetheintroductiondateforproductstobelaterthananticipatedor,insomesituations,maycauseaproductintroductiontobediscontinued.Ifweareunabletomanufacture,sourceandshipnewproductsinatimelymannerandonacosteffectivebasistomeetconstantlychangingcustomerdemand,itcouldhaveaadverseeffectonourbusinessandoperatingresults.

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.Todeliverourmerchandiseonatimelybasis,weneedtomaintainadequateinventorylevelsofthedesiredproducts.Thisapproachrequiresustobegintoplaceordersforcomponentsforcertainproductsuptoayearinadvance,andweprocureasignificantamountofproductmonthsinadvanceofcertaintimeperiods.Atthetimeweplacefactoryorders,wemaynothavefirmordersfromretailersoracompleteunderstandingofwhatconsumerdemandforthoseproductswillbe.Ifourinventoryforecastingprocessesarenotaccurate,itmayresultininventorylevelsinexcessofthelevelsforecastedandwemaynothavesufficientspaceatourmaindistributioncentertoaccommodateexcessinventory.Asa

10

TableofContents

result,wecouldberequiredtorecordinventorywrite-downsforexcessandobsoleteinventory,and/orincuradditionalexpenseforstorageofexcessinventory,whichwouldadverselyaffectouroperatingresults.Inaddition,ifourprocessesresultinourinventorylevelsbeingtoolowtomeetcustomerdemand,wemaylosesales,whichwouldadverselyaffectouroperatingresults.

We rely on external financing to help fund our operations. Covenants in our credit facility may affect our liquidity or limit our ability to complete acquisitions,incur debt, make investments, sell assets, merge or complete other significant transactions.

Tomeetourworkingcapitalneeds,werelyoncashgeneratedfromoperationsandourcreditfacilityforworkingcapital.Ourcreditfacilityagreementincludescertaincovenantsthatplacelimitationsonorrestrictanumberofouractivities,includingourabilityto:

• incuradditionaldebt;

• createliensonourassetsormakeguarantees;

• makecertaininvestmentsorloans;

• paydividendsormakedistributions;

• disposeoforsellassets;or

• enterintoamergerorsimilartransaction.

Theserestrictivecovenantsmaylimitourabilitytoengageinactsthatmaybeinourbestlong-terminterests.Ourperformanceandfinancialconditionmaynotmeetouroriginalexpectationsatthetimeweenteredintothecreditfacility,causingustofailtomeetsuchfinancialcovenants.Non-compliancewiththecovenantsinourcreditfacilitycouldresultinusbeingunabletoutilizeborrowingsunderourcreditfacility,acircumstancewhichpotentiallycouldoccurwhenoperatingshortfallswouldmostrequiresupplementaryborrowingstoenableustocontinuetofundouroperations.Thereisnoguaranteethatwewouldbeabletorefinancedebtonfavorableterms,oratall.

Deviations from expected results of operations and expected cash requirements could result in a failure to meet financial covenants under our credit facility,which would adversely affect our financial condition and results of operations.

Wearesubjecttofinancialcovenantsunderourcreditfacilityagreement,includingfixedchargecoverageratioandcertainquarterlyleverage.Anysignificantdeviationinactualresultsfromourexpectedresultsofoperations,orinthetimingofmaterialexpendituresfromcurrentestimates,anysignificantbusinessorproductacquisitions,orothersignificantunanticipatedexpensescouldresultinusnotmeetingthesefinancialcovenants.Ifweareunabletogeneratesufficientavailablecashflowtoserviceouroutstandingdebt,thenwewouldneedtoseekanamendmenttoourcreditfacilityagreementorrefinancesuchdebtorfacedefault.Insuchcircumstances,ourlenderscoulddeclareadefault,whichwouldhaveamaterialadverseeffectonourfinancialconditionandresultsofoperations.Ifaccesstoourcreditfacilityislimitedorterminated,ourliquiditywouldbeconstrained,affectingouroperationsandgrowthprospects,andwewouldneedtoseekadditionalequityordebtfinancing.Thereisnoassurancethatsuchfinancingwouldbeavailableonacceptabletermsoratall.Furthermore,anyequityfinancingmayresultindilutiontoexistingstockholdersandanydebtfinancingmayincluderestrictivecovenantsthatcouldimpedeourabilitytoeffectivelyoperateandgrowourbusinessinthefuture.

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

Weoperateinahighlycompetitivemarketandcompetewithseverallargedomesticandforeigncompaniesandwithotherproducersofinfantandjuvenileproducts.Manyofourcompetitorshave

11

TableofContents

longeroperatinghistories,greaterbrandrecognition,andgreaterfinancial,technical,marketingandotherresourcesthanus.Inaddition,wemayfacecompetitionfromnewparticipantsinourmarketsbecausetheinfantandjuvenileproductindustryhaslowbarrierstoentry.Weexperiencepricecompetitionforourproductsandcompetitionforshelfspaceatretailers,allofwhichmayincreaseinthefuture.Ifwecannotcompetesuccessfullyinthefuture,ournetsalesandprofitabilitywilllikelydecline.

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

WhilethemajorityofoursalescontinuetobeinNorthAmerica,weoperatefacilitiesandsellproductsincountriesoutsidetheUnitedStatesandexpecttogrowourinternationalpresence.Additionally,aswediscussbelow,weutilizethird-partysuppliersandmanufacturerslocatedinAsiatoproduceamajorityofourproducts.Thesesalesandmanufacturingoperations,includingoperationsinemergingmarketsthatwehaveentered,mayenter,ormayincreaseourpresencein,aresubjecttotherisksassociatedwithinternationaloperations,including:

• economicandpoliticalinstability;

• restrictiveactionsbyforeigngovernments;

• greaterdifficultyenforcingintellectualpropertyrightsandweakerlawsprotectingintellectualpropertyrights;

• traderestrictions;

• workstoppagesorotherchangesinlaborconditions;

• reductioninbusinessactivityinsomepartsoftheworld;

• currencyfluctuationsanddevaluations;

• changesinimportdutiesorimportorexportrestrictions;

• compliancewithanti-briberyandanti-corruptionregulations;

• untimelyshippingofproductandunloadingofproductthroughWestCoastports,aswellasuntimelytruckdeliverytoourwarehouses;

• complicationsincomplyingwiththelawsandpoliciesoftheUnitedStatesaffectingtheimportationofgoods,includingduties,quotas,andtaxes;

• limitationsonrepatriationofforeignearnings;and

• complicationsincomplyingwithforeigntaxlaws.

RecentuncertaintywithrespecttopotentialchangestotheU.S.tax,tariff,andimport/exportregulationsmayhaveanegativeeffectonourresultsofoperations.Inparticular,proposalshavebeenmadetoreformthetaxcodeinwaysthatcouldincreasetheamountoftaxpaidonimportedgoods.Inaddition,therecentpresidentialandcongressionalelectionshavecreatedsignificantuncertaintyaboutthefuturerelationshipbetweentheUnitedStatesandChina,includingwithrespecttotradepolicies,treaties,governmentregulations,andtariffs,allofwhichcouldgreatlyincreasethecostofChineseimports.DuetooursignificantmanufacturingpresenceinChina,fromwhichweimportamajorityofourproducts,theoccurrenceofsuchtaxreformsortraderestrictionscouldsignificantlyimpactourbusinessinanadversemanner.

Asaresultofourinternationaloperations,wearesubjecttotheU.S.ForeignCorruptPracticesActandsimilarforeignanti-corruptionandanti-briberylaws.Recentyearshaveseenasubstantial

12

TableofContents

increaseintheglobalenforcementofanti-corruptionlaws,withmorefrequentvoluntaryself-disclosuresbycompanies,aggressiveinvestigationsandenforcementproceedingsbyboththeU.S.DepartmentofJusticeandtheSECresultinginrecordfinesandpenalties,increasedenforcementactivitybynon-U.S.regulators,andincreasesincriminalandcivilproceedingsbroughtagainstcompaniesandindividuals.Complyingwiththeseregulationsimposescostsonuswhichcanreduceourprofitabilityandourfailuretosuccessfullycomplywithanysuchlegalrequirementscouldsubjectustomonetaryliabilitiesandothersanctionsthatcouldfurtherharmourbusinessandfinancialcondition.

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

We rely on suppliers in Asia to manufacture the majority of our products, and any adverse change in our relationship with our suppliers could harm ourbusiness.

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

Wehave,fromtimetotime,receivedclaimsofallegedinfringementofpatentsrelatingtocertainofourproducts,andwemayfacesimilarclaimsinthefuture.Theseclaimsrelatedtoallegedpatentinfringementandwereprimarilytheresultofnewly-issuedpatentsthatwerenotinforcewhenweinitiallybroughtthesubjectproductstomarket.Thedefenseofintellectualpropertyclaimscanbecostlyandtimeconsuming,evenincircumstanceswheretheclaimiswithoutmerit.Wemayberequiredtopaysubstantialdamagesorsettlementcostsinordertoresolvethesetypesofclaims.Inaddition,theseclaimscouldmateriallyharmourbrandname,reputationandoperations.

13

TableofContents

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,issuesinproductsthatmayleadtoproductliability,personalinjuryorpropertydamageclaims,recalls,withdrawals,replacementsofproducts,orregulatoryactionsbygovernmentalauthorities.Aproductrecallcouldhaveamaterialadverseeffectonourresultsofoperationsandfinancialcondition,dependingontheproductaffectedbytherecallandtheextentoftherecalleffortsrequired.Aproductrecallcouldalsonegativelyaffectourreputationandthesalesofotherproducts.Furthermore,concernsaboutpotentialliabilitymayleadustorecallvoluntarilyselectedproducts.Complyingwithexistingoranysuchadditionalregulationsorrequirementscouldimposeincreasedcostsonourbusinessoperations,decreasesales,increaselegalfeesandothercosts,andputusatacompetitivedisadvantagecomparedtoothermanufacturersnotaffectedbysimilarissueswithproducts,anyofwhichcouldhaveasignificantadverseeffectonourfinancialcondition.Similarly,increasedpenaltiesfornon-compliancecouldsubjectustogreaterexpenseintheeventanyofourproductswerefoundtonotcomplywithsuchregulations.

Inadditiontoproductliabilityrisksrelatingtotheusebyconsumersofourproducts,wealsomustcomplywithavarietyofstateandfederallawsandregulationswhichprohibitsunfairordeceptivetradepractices,includingdisseminationoffalseormisleadingadvertising.Whilewetakestepswebelievearenecessarytocomplywiththeselawsandregulations,therecanbenoassurancethatwewillalwaysbeincompliance.Compliancewiththesevariouslawsandregulationscouldimposesignificantcostsonourbusinessifwefailtocomply,andcouldresultinmonetaryliabilitiesandotherpenaltiesandleadtosignificantnegativemediaattentionandconsumerdissatisfaction,whichcouldhaveasignificantadverseeffectonourbusiness,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,safetyand

14

TableofContents

wellnessmarkets,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.

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

Aportionofourassetsareintangible,whicharereviewedonanannualbasisandwhenevereventsandchangesincircumstancesindicatethatthecarryingamountofanassetmaynotberecoverable.Ifthecarryingvalueoftheseassetsexceedsthecurrentfairvalue,theassetisconsideredimpairedandisreducedtofairvalue,resultinginanon-cashchargetoearningsduringtheperiodinwhichanyimpairmentisdetermined.Ifwemakechangesinourbusinessstrategy,ourfutureoperatingperformancewastofallsignificantlybelowforecastlevelsorifexternalconditionsadverselyaffectourbusinessoperations,wemayberequiredtorecordanimpairmentchargeforintangibles,whichwouldleadtodecreasedassetsandreducednetoperatingresultsandnetworth.AsdiscussedinManagement'sDiscussionandAnalysisofFinancialConditionandResultofOperationsbelow,werecordedanimpairmentchargeforcertainindefinite-livedintangibleassetsinthefourthquarterof2016.Wecannotaccuratelypredicttheamountandtimingofanyfutureimpairmentofassets.

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.

15

TableofContents

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

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

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,whichwillexpirein2018,andincludesanoptiontoextendtheleaseforanadditionalthree-yearterm.WealsoleasesmallofficesinArkansas,Canada,Israel,theUnitedKingdomandHongKong.

WemaintaininventoryatleasedwarehousesinCalifornia(approximately460,000squarefeet),Canada(approximately61,000squarefeet),Australia(thirdpartywarehouse)andtheUnitedKingdom(approximately25,000squarefeet).Theseleasesexpireatvarioustimesthrough2021.

Item3.LegalProceedings

TheinformationsetforthinNote10,CommitmentsandContingencies,underPartIV,Item15ofthisAnnualReportonForm10-Kisincorporatedhereinbyreference.

Item4.MineSafetyDisclosures

Notapplicable.

16

TableofContents

PARTII

Item5.MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities

Price Range of Common Stock

OurcommonstockistradedontheNasdaqCapitalMarketunderthesymbol"SUMR".

ThehighandlowsalespricesforourcommonstockasreportedontheNasdaqCapitalMarketfortheperiodsindicatedbelowwereasfollows:

Holders of Common Stock

AsofFebruary20,2017,therewere34holdersofrecordofourcommonstock.Becausesharesofourcommonstockareheldbydepositaries,brokersandothernominees,thenumberofbeneficialholdersofoursharesissubstantiallylargerthanthenumberofrecordholders.

Dividend Policy

TherehavebeennocashdividendsdeclaredonourcommonstocksinceourCompanywasformed.DividendsaredeclaredatthesolediscretionofourBoardofDirectors.Ourintentionisnottodeclarecashdividendsandretainallcashforouroperationsandfutureacquisitions.Inaddition,underthetermsofourcurrentcreditfacilities,wearerestrictedinourabilitytopaycashdividendstoourstockholders.

Issuer Repurchases of Equity Securities

None.

Recent Sales of Unregistered Securities

Notapplicable.

Item6.SelectedConsolidatedFinancialData

Notrequired.

Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations

Thefollowingdiscussionisintendedtoassistintheassessmentofsignificantchangesandtrendsrelatedtoourresultsofoperationsandfinancialcondition.Theinformationcontainedinthissectionhasbeenderivedfromourconsolidatedfinancialstatementsandshouldbereadtogetherwithourconsolidatedfinancialstatementsandrelatednotesincludedelsewhereinthisreport.Readersshould

17

High Low FiscalYearEndedJanuary2,2016 FirstQuarter $ 3.51 $ 2.51SecondQuarter $ 3.24 $ 2.00ThirdQuarter $ 2.36 $ 1.20FourthQuarter $ 2.25 $ 1.56FiscalYearEndedDecember31,2016 FirstQuarter $ 2.25 $ 1.43SecondQuarter $ 1.95 $ 1.22ThirdQuarter $ 2.44 $ 1.61FourthQuarter $ 2.32 $ 1.65

TableofContents

alsoreviewandconsiderourdisclosuresundertheheading"SpecialNoteRegardingForward-LookingStatements"describingvariousfactorsthatcouldaffectourbusinessandthedisclosuresundertheheading"RiskFactors"inthisreport.

NotethatalldollaramountsinthisItem7areinthousandsofU.S.dollars,exceptshareandpersharedata.

Overview

Weareapremierinfantandjuvenileproductscompanyoriginallyfoundedin1985andhavepubliclytradedontheNasdaqStockMarketsince2007underthesymbol"SUMR."Wearealeaderinproductinnovationinthejuvenileindustry,providingmothersandcaregiversafullrangeofhighquality,highvalueproductstocareforbabiesandtoddlers.Weseektoimprovethequalityoflifeofbothcaregiversandbabiesthroughourproductofferings,whileatthesametimemaximizingshareholdervalueoverthelongterm.

Weoperateinoneprincipalindustrysegmentacrossgeographicallydiversemarketplaces,sellingourproductsgloballytolarge,nationalretailersaswellasindependentretailers,andonourpartner'swebsitesandourownsummerinfant.comwebsite.InNorthAmerica,ourcustomersincludeBabiesRUs,Amazon.com,Wal-Mart,Target,BuyBuyBaby,HomeDepot,andLowe's.OurlargestEuropean-basedcustomersareArgos,Amazon,ToysRUs,andMothercare.Wealsosellthroughinternationaldistributors,representatives,andtoselectinternationalretailcustomersingeographiclocationswherewedonothaveadirectsalespresence.

Weestimatethesizeofthejuvenileproductsmarkettobe$25billionworldwide,withconsumersfocusingonquality,safety,innovation,andstyle.Webelievewearepositionedtocapitalizeonpositivemarkettrendsinthejuvenileproductsindustry,includingapredictedincreaseinU.S.birthratesoverthenextseveralyears.

Infiscal2016,wecontinuedtofocusonourcoreproductofferings,phasingoutlessprofitablecategories,andimprovingourbalancesheetandworkingcapitalpositions.SalesfortheyearendedDecember31,2016("fiscal2016")decreased5.6%comparedtotheyearendedJanuary2,2016("fiscal2015")duepredominantlytothephasingoutoflessprofitablecategories,unfavorableforeignexchangeratesandlowerthanexpectedsalesofcertainproducts.Whilegrossprofitdeclined0.3%infiscal2016ascomparedtofiscal2015,ourgrossmarginimprovedby170basispoints.

Generalandadministrativeexpensesdecreased10.5%infiscal2016duetothefullyearimpactofcostreductionactionsimplementedinthelatterhalfoffiscal2015andareductioninlitigationcosts.InDecember2016wesettledthelitigation(seeNote10totheConsolidatedFinancialStatements)andthereforeexpectnomateriallegalcostsin2017relatedtothelitigation.

Asdiscussedfurtherbelow,followingourannualintangibleassetimpairmentanalysis,wedeterminedthattheestimatedfairvalueofanindefinitelivedassetwaslowerthanitscarryingvalue,andwerecordedanon-cashimpairmentchargeof$2,993inthefourthquarteroffiscal2016.Inaddition,wedeemedtheremainingvalueoftheindefinitelivedassettohaveafinitelifesubjecttoamortizationoveritsremainingusefullifeoffifteenyears.Asaresult,ourearningspershareforfiscal2016werenegativelyimpactedby$0.12.However,theimpairmentchargehadnoimpactonourday-to-dayoperationsorliquidityandwillnotresultinanyfuturecashexpenditures.

Primarilyasaresultoftheimpairmentcharge,thelitigationcosts,andlowerthanexpectedsalesinfiscal2016,weendedfiscal2016withanetlossof$0.23pershareascomparedtoanetlossof$0.47pershareinfiscal2015.

In2017,weexpecttocontinuetofocusonourcorecategorieswithinnovativeproductofferings,strengtheningmarginsand,ifnecessary,phasingoutlessprofitableproducts.WiththesettlementofourlitigationinDecember2016,litigationcostsareexpectedtobeimmaterialin2017withimproved

18

TableofContents

bottomlineperformance.Asaresult,weexpecttocontinuetostrengthenourbalancesheetandourworkingcapitalresults.

SummaryofCriticalAccountingPoliciesandEstimates

Thefollowingsummaryofourcriticalaccountingpoliciesispresentedtoassistinunderstandingourconsolidatedfinancialstatements.Theconsolidatedfinancialstatementsandnotesarerepresentationsofourmanagement,whoareresponsiblefortheirintegrityandobjectivity.TheseaccountingpoliciesconformtoaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericaandhavebeenconsistentlyappliedinthepreparationoftheconsolidatedfinancialstatements.AdditionalinformationaboutouraccountingpoliciesandestimatesmaybefoundinNote1toourconsolidatedfinancialstatementsincludedinthisreport.

Wemakecertainestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandthereportedamountsofrevenuesandexpenses.Theaccountingpoliciesdescribedbelowarethoseweconsidercriticalinpreparingourfinancialstatements.Someofthesepoliciesincludesignificantestimatesmadebymanagementusinginformationavailableatthetimetheestimatesweremade.However,theseestimatescouldchangemateriallyifdifferentinformationorassumptionswereused.

Revenue Recognition

Werecordrevenuewhenallofthefollowingoccur:persuasiveevidenceofanarrangementexists,productdeliveryhasoccurred,thesalespricetothecustomerisfixedordeterminableandcollectabilityisreasonablyassured.Salesarerecordednetofprovisionsforreturnsandallowances,cashdiscountsandmarkdowns.Webaseourestimatesfordiscounts,returnsandallowancesonnegotiatedcustomerterms,andhistoricalexperience.Theseestimatesaresubjecttovariability,asactualdeductionstakenbycustomersmaybedifferentfromtheestimatesrecorded.Customersdonothavetherighttoreturnproductsunlesstheproductsaredefective.Werecordareductionofsalesforestimatedfuturedefectiveproductdeductionsbasedoncontractualtermsandhistoricalexperience.

Salesincentivesorotherconsiderationgivenbyustocustomersthatareconsideredadjustmentsofthesellingpriceofproducts,suchasmarkdowns,arereflectedasreductionsofrevenue.Salesincentivesandotherconsiderationthatrepresentcostsincurredbyusforassetsorservicesreceived,suchastheappearanceofourproductsinacustomer'snationalcircularad(co-opadvertising),arereflectedassellingandmarketingexpensesinouraccompanyingstatementofoperations.

Trade Receivables

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

Allowance for Doubtful Accounts

Theallowancefordoubtfulaccountsrepresentsadjustmentstocustomertradeaccountsreceivableforamountsdeemeduncollectible.Theallowancefordoubtfulaccountsreducesgrosstradereceivablestotheirestimatednetrealizablevalue.Theallowanceisbasedonourassessmentofthebusinessenvironment,customers'financialcondition,historicaltrends,customerpaymentpractices,receivableagingandcustomerdisputes.Wewillcontinuetoproactivelyreviewourcreditrisksandadjustcustomertermstoreflectthecurrentenvironment.

19

TableofContents

Inventory Valuation

Inventoryiscomprisedoffinishedgoodsandisstatedatthelowerofcost,inclusiveoffreightandduty,ormarket(netrealizablevalue)usingthefirst-in,first-out(FIFO)method.Ourwarehousingcostsarechargedtoexpenseasincurred.Weregularlyreviewslow-movingandexcessinventory,andwrite-downinventoriesasappropriate.Managementusesestimatestorecordwrite-downsbasedonitsreviewofinventorybyproductcategory,includinglengthoftimeonhandandestimatesoffutureordersforeachproduct.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.InterestandpenaltiesrelatedtouncertaintaxpositionswereaccruedatDecember31,2016.Allauditadjustmentshavebeenrecordedwithoutsignificantimpactonourresultsofoperations.Onaglobalbasis,theopentaxyearssubjecttoexaminationbymajortaxingjurisdictionsinwhichweoperateisbetweentwotosixyears.

20

TableofContents

ResultsofOperations

ThefollowingtablepresentsselectedcondensedconsolidatedfinancialinformationforourCompanyforthefiscalyearsendedDecember31,2016("fiscal2016")andJanuary2,2016("fiscal2015").

Fiscal 2016 Compared with Fiscal 2015

Netsalesdecreased5.6%from$205,804forfiscal2015to$194,328forfiscal2016.Fiscal2015included$8,265ofsalesrelatedtoourbank-approvedinventoryreductionplanandourfurnitureproductlineexit.Fiscal2016included$2,054ofunfavorableforeignexchangeonaconstantcurrencybasisprimarilyduetothedeclineinthevalueoftheBritishpound.Theyear-over-yearnetsalesdecreasewasalsoattributabletolowersalesofBornFree®Breeze™bottlesandcertainSummer®monitorspartiallyoffsetbyincreasedsafetyandgearproductsales.

Costofgoodssoldincludesthecostofthefinishedproductfromsuppliers,dutiesoncertainimporteditems,freight-infromsuppliers,andmiscellaneouscharges.Thecomponentsofcostofgoodssoldremainedsubstantiallythesameforfiscal2016ascomparedtofiscal2015.

Grossprofitdeclined0.3%from$61,950forfiscal2015to$61,751forfiscal2016,however,grossmarginincreasedfrom30.1%forfiscal2015to31.8%forfiscal2016.Fiscal2015included$1,937inlossesonthesaleofinventorybelowcostrelatingtoourbank-approvedinventoryreductionplan,$949ofinventorychargestakenaswecompletedourexitofthefurniturecategory,and$690intemporaryadditionalcostsduetoinventorymixchangesinourwestcoastdistributioncenter.Fiscal2016included$933ofunfavorableforeignexchangeonaconstantcurrencybasisprimarilyduetothedeclineinthevalueoftheBritishpound,$891incostoveragesrelatingtotheintroductionofourBornFree®Breeze™bottle,and$275intemporaryadditionalcostsduetoinventorymixchangesinourwestcoastdistributioncenter.

Generalandadministrativeexpensesdecreased10.5%from$46,132forfiscal2015to$41,292forfiscal2016andasapercentofsalesfrom22.4%forfiscal2015to21.2%forfiscal2016.Thedeclineingeneralandadministrativeexpenseswasattributabletocostreductionactionsimplementedinthelatterhalfoffiscal2015combinedwithareductioninlitigationcoststhatdeclinedto$2,397forfiscal2016ascomparedto$6,645forfiscal2015.InDecember2016,wesettledthelitigationandthereforedonotexpecttoincuranymateriallegalcostsin2017relatedtothelitigation.

Sellingexpensesdecreasedby14.1%from$17,780forfiscal2015to$15,269forfiscal2016andasapercentofsalesfrom8.6%forfiscal2015to7.9%forfiscal2016.Thisdecreaseinsellingexpense

21

Yearended

December31,2016 YearEnded

January2,2016 Netsales $ 194,328 100.0% $ 205,804 100.0%Costofgoodssold 132,577 68.2% 143,854 69.9%Grossprofit 61,751 31.8% 61,950 30.1%Generalandadministrativeexpenses 41,292 21.2% 46,132 22.4%Sellingexpenses 15,269 7.9% 17,780 8.6%Depreciationandamortization 5,011 2.6% 6,780 3.3%Impairmentofintangibleassets 2,993 1.5% — 0.0%(Loss)fromoperations (2,814) (1.4)% (8,742) (4.2)%Interestexpense,net 2,682 1.4% 3,333 1.6%(Benefit)forincometaxes (1,174) 0.6% (3,424) 1.7%Netloss $ (4,322) (2.2)% $ (8,651) (4.2)%

TableofContents

wasprimarilyattributabletolowersalesvolumeaswellaslowercooperativeadvertisementcostsandlowerfreightoutcostsduetocustomermix.

Depreciationandamortizationdecreased26.1%from$6,780infiscal2015to$5,011forfiscal2016.Fiscal2015included$1,532ofacceleratedamortizationduetotheshortenedestimatedusefullifeonoldertechnologyaswemovetoournextgenerationoftechnologythatisbeingdevelopedincertainproductlines.Fiscal2016included$341ofaccelerateddepreciationduetotheshortenedestimatedusefullifeonsomenextgenerationtechnologythatwasdiscontinued.

Inthefourthquarterof2016,weundertookourannualintangibleassetimpairmentanalysisandengagedathirdpartytoassistmanagementinvaluingourinfinitelivedintangibleassetsrecordedonourbalancesheet.Managementdeterminedthattheestimatedfairvalueofthatindefinitelivedassetwaslowerthanitscarryingvalue,andwerecordedanon-cashimpairmentchargeof$2,993inthefourthquarteroffiscal2016.Inaddition,managementdeemedtheremainingvalueoftheindefinitelivedassettohaveafinitelifesubjecttoamortizationoveritsremainingusefullifeestimatedtobe15years.Whilethechargeaffectedourfinancialconditionandresultsofoperationsforfiscal2016,ithadnoimpactonourday-to-dayoperationsorliquidityandwillnotresultinanyfuturecashexpenditures.NoimpairmentexistedforthefiscalyearendedJanuary2,2016.

Interestexpensedecreased19.5%from$3,333infiscal2015to$2,682forfiscal2016.Interestexpenseforfiscal2015includedawriteoffof$685forpastunamortizedfinancingfeesandterminationfeesinconnectionwiththerefinancingofourcreditfacilityinApril2015.

Forfiscal2016,werecordeda$1,174taxbenefiton$5,496ofpretaxlossfortheperiod.The21.4%taxrateforfiscal2016includedtheeffectsof$471ofnon-deductibletoolingdepreciation,$270ofexpiringcharitabledonationcarryforwards,and$299relatedtotheimpairmentcharge.Forfiscal2015,werecordeda$3,424taxbenefiton$12,075ofpretaxlossfortheperiod.The28.4%taxrateforfiscal2015includedtheeffectof$150ofreinstatedresearchanddevelopmenttaxcredits,a$327chargeforuncertaintaxpositions,anda$342valuationreserveestablishedonforeigntaxdepreciationandrelatedassets.

LiquidityandCapitalResources

Wefundouroperationsandworkingcapitalneedsthroughcashgeneratedfromoperationsandborrowingsunderourcreditfacilities.

Cash Flows

Inourtypicaloperationalcashflowcycle,inventoryispurchasedtomeetexpecteddemandplusasafetystock.ThemajorityofourinventoryissourcedfromAsiawhichtakesapproximatelythreetofourweekstoarriveatthevariousdistributionpointswemaintainintheUnitedStates,CanadaandtheUnitedKingdom.Paymenttermsforthesevendorsareapproximately60-90daysfromthedatetheproductshipsfromAsia,thereforewearegenerallypayingfortheproductashorttimeafteritisphysicallyreceivedintheUnitedStates.Inturn,salestocustomersgenerallyhavepaymenttermsof30to60days,resultinginanaccountsreceivableandincreasingtheamountofcashrequiredtofundworkingcapital.Tobridgethegapbetweenpayingoursuppliersandreceivingpaymentfromourcustomersforgoodssold,werelyonourcreditfacilities.

Themajorityofourcapitalexpendituresarefortoolsandmoldsrelatedtonewproductintroductions.Wereceiveindicationsfromretailersgenerallyaroundthemiddleofeachyearastowhatproductstheretailerwillbetakingintoitsproductlinefortheupcomingyear.Basedontheseindications,wewillacquiretoolsandmoldsrequiredtobuildandproducetheproducts.Inmostcases,thepaymentsforthetoolsandmoldsarespreadoverathreetofourmonthperiod.

Forfiscal2016,netcashprovidedbyoperatingactivitieswasapproximately$8,788andwasgeneratedprimarilyfromimprovedoperatingperformanceaswellasloweraccountsreceivabledueto

22

TableofContents

acombinationoflowersalesandimprovedcollections.Forfiscal2015netcashprovidedbyoperatingactivitiestotaled$9,339andwasprimarilyattributabletoimprovedinventoryturnsandmorefavorablepaymenttermsfromoursuppliers.

Forfiscal2016,netcashusedininvestingactivitieswasapproximately$2,266.Forfiscal2015,netcashusedininvestingactivitieswas$3,505.Theuseofcashininvestingactivitieswasprimarilyattributabletotoolingandmoldexpendituresrelatedtonewproductintroductions.

Forfiscal2016,netcashusedinfinancingactivitieswasapproximately$6,548,reflectingrepaymentsonourcreditfacility.Forfiscal2015,netcashusedinfinancingactivitieswasapproximately$5,116,reflectingrepaymentsonourcreditfacility.

Basedprimarilyontheabovefactors,netcashincreasedforfiscal2016by$76,resultinginacashbalanceofapproximately$999atfiscalyearend.

Thefollowingtablesummarizesoursignificantcontractualcommitmentsatfiscal2016yearend:

EstimatedfutureinterestpaymentsonourRevolvingFacility,FILOFacility,andTermLoanFacilityarebasedupontheinterestratesineffectatDecember31,2016.

Capital Resources

Inadditiontooperatingcashflow,wealsorelyonourexistingasset-basedrevolvingcreditfacilitywithBankofAmerica,N.A.tomeetourfinancingrequirements,whichissubjecttochangesinourinventoryandaccountreceivablelevels.Weregularlyevaluatemarketconditions,ourliquidityprofile,andvariousfinancingalternativesforopportunitiestoenhanceourcapitalstructure.Ifmarketconditionsarefavorable,wemayrefinanceourexistingdebtorissuedebtorequitysecurities.Basedonpastperformanceandcurrentexpectations,webelievethatouranticipatedcashflowfromoperationsandavailabilityunderourexistingcreditfacilityaresufficienttofundourworkingcapital,capitalexpendituresanddebtservicerequirementsforatleastthenext12months.

However,ifweareunabletomeetourcurrentfinancialforecast,donotadequatelycontrolexpenses,andcannotraiseadditionalfundsoradjustouroperationsaccordingly,wemaynotremainincompliancewiththefinancialcovenantsrequiredunderourrevolvingcreditfacility.Unforeseencircumstances,suchassoftnessintheretailindustryordeteriorationinthebusinessofasignificantcustomer,couldcreateasituationwherewecannotaccessallofouravailablelinesofcreditduetoinsufficientassetavailabilityoraninabilitytomeetthefinancialcovenantsasrequiredunderourcreditfacility.Thereisnoassurancethatwewillmeetallofourfinancialorothercovenantsinthefuture,or

23

PaymentDuebyFiscalPeriod

ContractualObligations Total 2017 2018 2019 2020 2021andbeyond

RevolvingFacility $ 36,182 — — — $ 36,182 —FILOFacility 3,750 $ 2,500 $ 1,250 — — —TermLoanFacility 7,000 2,000 2,000 $ 2,000 1,000 —EstimatedfutureinterestpaymentsonRevolvingFacility 3,629 1,170 1,102 1,035 322 —EstimatedfutureinterestpaymentsonFILOFacility 149 119 30 — — —EstimatedfutureinterestpaymentsonTermLoanFacility 594 285 190 95 24 —Operatingleases 10,631 2,415 2,215 2,140 2,185 $ 1,676Sale-leasebacklease 536 429 107 — — —Totalcontractualcashobligations $ 62,471 $ 8,918 $ 6,894 $ 5,270 $ 39,713 $ 1,676

TableofContents

thatourlenderswillgrantwaiversiftherearecovenantviolations.Inaddition,shouldweneedtoraiseadditionalfundsthroughdebtorequityfinancings,anysaleofdebtorequitysecuritiesmaycausedilutiontoexistingstockholders.Ifsufficientfundsarenotavailableorarenotavailableonacceptableterms,ourabilitytoaddressanyunexpectedchangesinouroperationscouldbelimited.Furthermore,therecanbenoassurancethatwewillbeabletoraisesuchfundsifandwhentheyarerequired.Failuretoobtainfuturefundingwhenneededoronacceptabletermscouldmateriallyadverselyaffectourresultsofoperations.

Credit Facilities

Weandourwhollyownedsubsidiary,SummerInfant(USA),Inc.,arepartiestoanamendedandrestatedloanandsecurityagreementwithBankofAmerica,N.A.,asagent,providingforanasset-basedcreditfacility(asamendedinDecember2015andMay2016,the"CreditFacility").

TheCreditFacilityconsistsofa$60,000asset-basedrevolvingcreditfacility,witha$10,000letterofcreditsub-linefacility(the"RevolvingFacility"),a$5,000"firstinlastout"(FILO)revolvingcreditfacility(the"FILOFacility")anda$10,000termloanfacility(the"TermLoanFacility").Pursuanttoanaccordionfeature,theCreditFacilityincludestheabilitytoincreasetheRevolvingFacilitybyanadditional$15,000upontheCompany'srequestandtheagreementofthelendersparticipatingintheincrease.ThetotalborrowingcapacityundertheRevolvingFacilityisbasedonaborrowingbase,generallydefinedas85%ofthevalueofeligibleaccountsplusthelesserof(i)70%ofthevalueofeligibleinventoryor(ii)85%ofthenetorderlyliquidationvalueofeligibleinventory,lessreserves.ThetotalborrowingcapacityundertheFILOFacilityisbasedonaborrowingbase,generallydefinedasaspecifiedpercentageofthevalueofeligibleaccountsthatstepsdownovertime,plusaspecifiedpercentageofthevalueofeligibleinventorythatstepsdownovertime.ForadditionalinformationontheCreditFacility,pleaseseeNote4toourconsolidatedfinancialstatementsincludedinthisAnnualReportonForm10-K.

AsofDecember31,2016,therateforbase-rateloanswas4.75%andrateforLIBOR-rateloanswas3.375%.TheamountoutstandingontheRevolvingFacilityatDecember31,2016was$36,182.TotalborrowingcapacityundertheRevolvingFacilityatDecember31,2016was$47,196andborrowingavailabilitywas$11,014.TheamountsoutstandingontheTermLoanFacilityandFILOFacilityatDecember31,2016were$7,000and$3,750,respectively.

WewereincompliancewiththefinancialcovenantsundertheCreditFacilityasofDecember31,2016.

Subsequenttofiscalyearend,onFebruary17,2017,theCompanyamendedtheCreditFacilitytoprovideadditionalflexibilityunderitscovenantrequirementstotheCompanyduringfiscal2017.SeeItem9B.OtherInformationbelowforadditionalinformationregardingtheamendment.

Off-BalanceSheetArrangements

Wedidnothaveanyoff-balancesheetarrangementsduringtheyearendedDecember31,2016ortheyearendedJanuary2,2016.

RecentlyIssuedAccountingPronouncements

InMay2014,theFASBissuednewaccountingguidancerelatedtorevenuerecognition.ThisguidancewasoriginallyproposedtobeeffectiveforreportingperiodsbeginningafterDecember15,2016,howeverinJuly2015,theFASBapprovedthedelayinthisguidanceuntilreportingperiodsbeginningafterDecember15,2017.Wearestillfinalizingtheanalysistoquantifytheadoptionimpactoftheprovisionsofthenewstandard,butwedonotcurrentlyexpectittohaveamaterialimpactonourconsolidatedfinancialpositionorresultsofoperations.Basedontheevaluationofourcurrentcontractsandrevenuestreams,mostwillberecordedconsistentlyunderboththecurrentandnewstandard.TheFASBhasissued,andmayissueinthefuture,interpretiveguidancewhichmaycauseourevaluationtochange.Webelievewearefollowinganappropriatetimelinetoallowforproperrecognition,presentationanddisclosureuponadoptioneffectivethebeginningoffiscalyear2018.

24

TableofContents

InApril2015,theFASBissuedASU2015-03,"Interest-ImputationofInterest(Subtopic835-30):SimplifyingthePresentationofDebtIssuanceCosts."Thisguidancerequiresdebtissuancecostsrelatedtoarecognizeddebtliabilitybepresentedinthebalancesheetasadirectdeductionfromthecarryingamountofthedebtliability.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2015.TheCompanyadoptedthisguidanceinthefirstquarterof2016anditresultedintheretrospectivereclassificationof$1,489asofJanuary2,2016inunamortizeddebtissuancecostsfromotherassetstoadirectreductionoflong-termdebt.

InJuly2015,theFASBissuedASU2015-11,"SimplifyingtheMeasurementofInventory."ThisguidancerequiresinventorywithinthescopeofASU2015-11tobemeasuredatthelowerofcostandnetrealizablevalue.Netrealizablevalueisdefinedastheestimatedsellingpriceintheordinarycourseofbusiness,lessreasonablypredictablecostsofcompletion,disposal,andtransportation.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2016.TheCompanyhasevaluatedtheimpactthisguidancewillhaveonitsconsolidatedfinancialstatementsandexpectstheimpacttobeimmaterial.

InNovember2015,theFASBissuedASU2015-17,"IncomeTaxes(Topic740):BalanceSheetClassificationofDeferredTaxes."Thisguidanceeliminatesthecurrentrequirementforanentitytoseparatedeferredincometaxliabilitiesanddeferredtaxassetsintocurrentandnon-currentamountsinaclassifiedbalancesheet.Instead,thisguidancerequiresdeferredtaxliabilities,deferredtaxassets,andvaluationallowancesbeclassifiedasnoncurrentinaclassifiedbalancesheet.ThisASUiseffectiveforannualreportingperiodsbeginningafterDecember15,2016andinterimperiodswithinthoseannualperiods.Earlyadoptionispermitted.TheCompanyadoptedthisguidanceinthefirstquarterof2016anditresultedintheretrospectivereclassificationof$799asofJanuary2,2016incurrentdeferredtaxassetstononcurrentdeferredtaxassets.

InFebruary2016,theFASBissuedASU2016-02,"Leases(Topic842),"("ASU2016-02").ASU2016-02requireslesseestorecognizeassetsandliabilitiesonthebalancesheetforleaseswithleasetermsgreaterthantwelvemonthsanddisclosekeyinformationaboutleasingarrangements.Theeffectivedatewillbethefirstquarteroffiscalyear2019,withearlyadoptionpermitted.TheCompanyisevaluatingtheimpactthatadoptionofthisnewstandardwillhaveonitsconsolidatedfinancialstatements.

InAugust2016,theFASBissuedASU2016-15,"StatementofCashFlows(Topic230):ClassificationofCertainCashReceiptsandCashPayments(AConsensusoftheFASBEmergingIssuesTaskForce).Inanefforttoreducediversityinpractice,ASU2016-15providessolutionsforeightspecificstatementofcashflowclassificationissues.TheASUiseffectiveforpubliccompaniesbeginningafterDecember15,2017,andinterimperiodswithinthosefiscalyears.Earlyadoptionispermitted,includingadoptioninaninterimperiod.TheCompanyhasevaluatedtheimpactthisguidancewillhaveonitsconsolidatedfinancialstatementsandexpectstheimpacttobeimmaterial.

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,andincludesstatementsregardingtheeffectivenessofourstrategytopromotefuturegrowthandprofitability,thestrengthofourcustomerandsupplierrelationships,expected

25

TableofContents

litigationcostsin2017,improvedbottomlineperformancein2017,ourliquidityforthenext12months,andexpectedtrendsandproductofferingsin2017.Thesestatementsarebasedonaseriesofexpectations,assumptions,estimatesandprojectionsaboutourCompany,arenotguaranteesoffutureresultsorperformance,andinvolvesignificantrisks,uncertaintiesandotherfactors,includingassumptionsandprojections,forallforwardperiods.Ouractualresultsmaydiffermateriallyfromanyfutureresultsexpressedorimpliedbysuchforward-lookingstatements.Suchfactorsinclude,amongothers,thefollowing:

• theconcentrationofourbusinesswithasmallnumberofretailcustomers;

• liquidityproblemsorbankruptcyofanykeyretailcustomers;

• ourabilitytocompetebyintroducingnewproductsorenhancingexistingproductsthatsatisfyconsumerpreferences;

• ourabilitytodevelopnewproductsinatimelyandcost-efficientmanner;

• ourabilitytomanageinventorylevelsandmeetcustomerdemand;

• ourabilitytocomplywithfinancialandothercovenantsinourcreditfacility;

• ourabilitytoeffectivelycompeteinthejuvenileproductmarket;

• ourrelianceonforeignsuppliersandpotentialdisruptioninforeignmarketsinwhichweoperate;

• exchangerateandforeigncurrencydevaluations;

• increasesinthecostofrawmaterialsusedtomanufactureourproducts;

• earthquakesorothercatastrophiceventsthatmaydamageourpropertiesordisruptouroperations;

• ourabilitytoprotectourintellectualproperty;

• compliancewithsafetyandtestingregulationsforourproducts;

• productliabilityclaimsarisingfromuseofourproducts;

• ourdependenceonkeypersonnel;

• unanticipatedtaxliabilities;

• animpairmentofotherintangibleassets;and

• anyfailure,inadequacyorinterruptionofourinformationtechnologysystemsthatmaydisruptouroperations.

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

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

26

TableofContents

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,oftheeffectivenessofourdisclosurecontrolsandproceduresasofDecember31,2016.Ourprincipalexecutiveofficerandprincipalfinancialofficerhaveconcluded,basedontheirevaluation,thatourdisclosurecontrolsandprocedureswereeffectiveasofDecember31,2016.

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

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

1)Pertaintothemaintenanceofrecordsthatinreasonabledetailaccuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofacompany;

2)Providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofacompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementandtheboardofdirectorsofthecompany;and

3)Providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,useordepositionofacompany'sassetsthatcouldhaveamaterialeffectonitsfinancialstatements.

Becauseoftheinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

27

TableofContents

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

ManagementoftheCompanyconductedanevaluationoftheeffectiveness,asofDecember31,2016,oftheCompany'sinternalcontroloverfinancialreportingandbasedonitsevaluationundertheCOSOFramework,managementhasconcludedthattheCompany'sinternalcontroloverfinancialreportingwaseffectiveasofDecember31,2016.

(c) Changes in Internal Control Over Financial Reporting

TherewasnochangeinourinternalcontroloverfinancialreportingthatoccurredduringthequarterendedDecember31,2016thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

Item9B.OtherInformation

OnFebruary17,2017,theCompanyanditssubsidiaries,SummerInfant(USA),Inc.,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,enteredintoanamendmentandwaiver(the"LoanAmendment")toitsCreditFacilitywithBankofAmerica,N.A.,asagent,andthelendersundertheCreditFacility.PursuanttotheLoanAmendment,thelendersagreedtowaivetheexistingdeliverydatebywhichtheCompanymustdeliverprojectionsforthe2017fiscalyear,andextendedthedatetoMarch1,2017.Inaddition,theLoanAmendmentamendedcertainprovisionsoftheCreditFacilitytoprovideadditionalflexibilitytotheCompanyduringfiscal2017,including:

• amendingthedefinitionsof"Availability,""AvailabilityReserve"and"EligibleAccount";

• amendingthedefinitionofEBITDAwithrespecttobonuspaymentsandcertainfeesandexpensesthatcanbeaddedbacktothecalculationofEBITDA;and

• amendingthedefinitionof"FixedCharges"andrevisedthemaximumleverageratiofinancialcovenanttobemaintainedasoftheendofeachfiscalquarter.

TheforegoingsummaryoftheLoanAmendmentdoesnotpurporttobecompleteandisqualifiedinitsentiretybyreferencetothefulltextoftheLoanAmendment,acopyofwhichisfiledherewithasExhibit10.14andisincorporatedhereinbyreference.

28

TableofContents

PARTIII

Item10.Directors,ExecutiveOfficersandCorporateGovernance

TheinformationrelatingtodirectorsanddirectornomineesoftheCompanyissetforthinourdefinitiveProxyStatementtobefiledwiththeSECinconnectionwithour2017AnnualMeetingofStockholders(the"2017ProxyStatement")andisincorporatedhereinbyreference.

TheinformationrelatingtotheCompany'sexecutiveofficersandSection16(a)beneficialownershipreportingcomplianceissetforthinthe2017ProxyStatementandisincorporatedhereinbyreference.

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

TheinformationrelatingtotheCompany'sAuditCommitteeanditsdesignatedauditcommitteefinancialexpertissetforthinthe2017ProxyStatementandisincorporatedhereinbyreference.

Theinformationconcerningproceduresbywhichstockholdersmayrecommenddirectornomineesissetforthinthe2017ProxyStatementandisincorporatedhereinbyreference.

Item11.ExecutiveCompensation

Theinformationrelatingtoexecutivecompensationissetforthinthe2017ProxyStatementandisincorporatedhereinbyreference,providedthattheinformationunderthecaption"CompensationCommitteeReport"shallbedeemed"furnished"andshallnotbedeemed"filed"withthisreport,notdeemedincorporatedbyreferenceintoanyfilingundertheSecuritiesActof1933,asamended,exceptonlyasmaybeexpresslysetforthinanysuchfilingbyspecificreference.

Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters

Theinformationrelatingtosecurityownershipofmanagement,certainbeneficialowners,andtheCompany'sequityplansissetforthinthe2017ProxyStatementandisincorporatedhereinbyreference.

Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence

Theinformationrelatingtocertainrelationshipsandrelatedpartytransactionsanddirectorindependenceissetforthinthe2017ProxyStatementandisincorporatedhereinbyreference.

Item14.PrincipalAccountingFeesandServices

TheinformationrelatingtotheindependentregisteredpublicaccountingfirmfeesandservicesandtheCompany'spre-approvalpoliciesandproceduresforauditandnon-auditservicesprovidedbysuchaccountingfirmissetforthinthe2017ProxyStatementandisincorporatedhereinbyreference.

29

TableofContents

PARTIV

Item15.ExhibitsandFinancialStatementSchedules

(a) (1)FinancialStatements

ThelistofconsolidatedfinancialstatementsandnotesrequiredbythisItem15(a)(1)issetforthinthe"IndextoFinancialStatements"onpageF-1ofthisAnnualReport.

(2) FinancialStatementSchedules

Allscheduleshavebeenomittedbecausetherequiredinformationisincludedinthefinancialstatementsornotesthereto.

(b) Exhibits

Theexhibitslistedinthe"IndextoExhibits"immediatelyprecedingtheexhibitsarefiledaspartofthisAnnualReport.

30

TableofContents

SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorizedonthe22nddayofFebruary2017.

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedatesindicated.

31

SUMMERINFANT,INC.

By: /s/MARKMESSNER

MarkMessnerChief Executive Officer

(Principal Executive Officer)

By: /s/WILLIAME.MOTE,JR.

WilliamE.Mote,Jr.Chief Financial Officer

(Principal Financial and Accounting Officer)

Name Title Date

/s/MARKMESSNER

MarkMessner ChiefExecutiveOfficer(PrincipalExecutive

Officer) February22,2017

/s/WILLIAME.MOTE,JR.

WilliamE.Mote,Jr. ChiefFinancialOfficer(PrincipalFinancialand

AccountingOfficer) February22,2017

/s/ROBINMARINO

RobinMarino ChairwomanoftheBoard February22,2017

/s/MARTINFOGELMAN

MartinFogelman Director February22,2017

/s/ALANMUSTACCHI

AlanMustacchi Director February22,2017

/s/ROBERTSTEBENNE

RobertStebenne Director February22,2017

/s/EVELYND'AN

EvelynD'An Director February22,2017

/s/STEPHENZELKOWICZ

StephenZelkowicz Director February22,2017

TableofContents

SummerInfant,Inc.andSubsidiariesIndextoFinancialStatements

F-1

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

TableofContents

REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TotheBoardofDirectorsandStockholdersSummerInfant,Inc.

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofSummerInfant,Inc.andSubsidiariesasofDecember31,2016andJanuary2,2016,andtherelatedconsolidatedstatementsofoperations,comprehensiveloss,cashflows,andstockholders'equityfortheyearsthenended.ThesefinancialstatementsaretheresponsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudits.

WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.TheCompanyisnotrequiredtohave,norwereweengagedtoperform,anauditofitsinternalcontroloverfinancialreporting.Ourauditsincludedconsiderationofinternalcontroloverfinancialreportingasabasisfordesigningauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany'scontrolsoverfinancialreporting.Accordingly,weexpressnosuchopinion.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion.

Inouropinion,theconsolidatedfinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionofSummerInfant,Inc.andSubsidiariesasofDecember31,2016andJanuary2,2016,andtheresultsoftheiroperationsandtheircashflowsfortheyearsthenended,inconformitywithU.S.generallyacceptedaccountingprinciples.

/s/RSMUSLLP

RSMUSLLPBoston,MassachusettsFebruary22,2017

F-2

TableofContents

SummerInfant,Inc.andSubsidiaries

ConsolidatedBalanceSheets

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars,exceptshareamountsandparvaluepershare.

Seenotestoconsolidatedfinancialstatements.

F-3

December31,

2016 January2,

2016 ASSETS CURRENTASSETS Cashandcashequivalents $ 999 $ 923Tradereceivables,netofallowancefordoubtfulaccountsof$59and$142atDecember31,2016andJanuary2,2016,respectively 34,137 40,514

Inventory,net 36,140 36,846Prepaidsandothercurrentassets 1,737 1,758TOTALCURRENTASSETS 73,013 80,041

Propertyandequipment,net 9,965 12,007Intangibleassets,net 14,813 18,512Deferredtaxassets,noncurrent 3,848 2,483Otherassets 98 95

TOTALASSETS $ 101,737 $ 113,138LIABILITIESANDSTOCKHOLDERS'EQUITY CURRENTLIABILITIES Accountspayable $ 30,684 $ 29,541Accruedexpenses 7,757 9,584Currentportionoflong-termdebtandcapitalleases 4,500 3,318TOTALCURRENTLIABILITIES 42,941 42,443

Long-termdebt,lesscurrentportionandunamortizeddebtissuancecosts 41,206 48,767Otherliabilities 2,770 2,962

TOTALLIABILITIES 86,917 94,172STOCKHOLDERS'EQUITY PreferredStock,$0.0001parvalue,1,000,000authorized,noneissuedoroutstandingatDecember31,2016andJanuary2,2016 — —

CommonStock$0.0001parvalue,authorized,issuedandoutstandingof49,000,000,18,778,266,and18,506,617atDecember31,2016and49,000,000,18,639,407and18,367,758atJanuary2,2016,respectively 2 2

TreasuryStockatcost(271,649sharesatDecember31,2016andJanuary2,2016) (1,283) (1,283)Additionalpaid-incapital 76,348 75,812Accumulateddeficit (57,385) (53,063)Accumulatedothercomprehensiveloss (2,862) (2,502)TOTALSTOCKHOLDERS'EQUITY 14,820 18,966

TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY $ 101,737 $ 113,138

TableofContents

SummerInfant,Inc.andSubsidiaries

ConsolidatedStatementsofOperations

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars,exceptshareandpershareamounts.

Seenotestoconsolidatedfinancialstatements.

F-4

Forthefiscalyearended

December31,

2016 January2,

2016 Netsales $ 194,328 $ 205,804Costofgoodssold 132,577 143,854Grossprofit 61,751 61,950Generalandadministrativeexpenses 41,292 46,132Sellingexpenses 15,269 17,780Depreciationandamortization 5,011 6,780Impairmentofintangibleassets 2,993 —Operatingloss (2,814) (8,742)

Interestexpense,net 2,682 3,333Lossbeforeprovisionforincometaxes (5,496) (12,075)

Benefitforincometaxes (1,174) (3,424)NETLOSS $ (4,322) $ (8,651)

NetlosspershareBASICandDILUTED $ (0.23) $ (0.47)WeightedaveragesharesoutstandingBASICandDILUTED 18,440,436 18,267,596

TableofContents

SummerInfant,Inc.andSubsidiaries

ConsolidatedStatementsofComprehensiveLoss

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars.

Seenotestoconsolidatedfinancialstatements.

F-5

Forthefiscalyearended

December31,

2016 January2,

2016 Netloss $ (4,322) $ (8,651)Othercomprehensiveloss: Foreigncurrencytranslationadjustments (360) (1,092)

Comprehensiveloss $ (4,682) $ (9,743)

TableofContents

SummerInfant,Inc.andSubsidiaries

ConsolidatedStatementsofCashFlows

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars.

Seenotestoconsolidatedfinancialstatements.

F-6

Forthefiscalyearended

December31,

2016 January2,

2016 Cashflowsfromoperatingactivities: Netloss $ (4,322) $ (8,651)Adjustmentstoreconcilenetlosstonetcashprovidedbyoperatingactivities: Impairmentofintangibleassets 2,993 —Depreciationandamortization 5,011 6,780Stock-basedcompensation 482 865Lossonassetdisposal 37 42Deferredincometaxes (1,384) (3,685)Changesinassetsandliabilities,netofeffectsofacquisitions Decrease(increase)inaccountsreceivable 6,151 (1,715)Decreaseininventory 344 7,170(Increase)decreaseinprepaidsandothercurrentassets (44) 250Decrease(increase)inotherassets 164 (342)(Decrease)increaseinaccountspayableandaccruedexpenses (644) 8,625

Netcashprovidedbyoperatingactivities 8,788 9,339Cashflowsfrominvestingactivities: Acquisitionsofpropertyandequipment (2,266) (3,033)Acquisitionsofotherintangibleassets — (472)Netcashusedininvestingactivities (2,266) (3,505)Cashflowsfromfinancingactivities: ProceedsfromNewTermLoanFacility — 10,000ProceedsfromNewFILOFacility — 5,000(Repayment)ofPriorTermLoan — (12,500)(Repayment)ofNewTermLoanFacility (1,500) (1,500)(Repayment)ofNewFILOFacility (1,250) —Net(repayments)borrowingsonrevolvingfacilities (3,798) (6,163)Issuanceofcommonstockuponexerciseofstockoptions — 47Netcashusedinfinancingactivities (6,548) (5,116)Effectofexchangeratechangesoncashandcashequivalents 102 (1,067)Netincrease(decrease)incashandcashequivalents 76 (349)Cashandcashequivalentsatbeginningofyear 923 1,272Cashandcashequivalentsatendofyear $ 999 $ 923Supplementaldisclosureofcashflowinformation: Cashpaidduringtheyearforinterest $ 1,963 $ 2,318Cashpaidduringtheyearforincometaxes $ 100 $ 158

TableofContents

ConsolidatedStatementsofStockholders'Equity

FortheFiscalYearsEndedDecember31,2016andJanuary2,2016

NotethatallamountspresentedinthetablebelowareinthousandsofU.S.dollars,exceptshareandpersharedata.

Seenotestoconsolidatedfinancialstatements.

F-7

CommonStock

AdditionalPaidinCapital

TreasuryStock

RetainedEarnings

AccumulatedComprehensive

Loss TotalEquity

Shares Amount BalanceatJanuary3,2015 18,144,285 $ 2 $ 74,954 $ (1,283) $ (44,412) $ (1,410) $ 27,851Issuanceofcommonstockuponvestingofrestrictedshares 198,473

Issuanceofcommonstockuponexerciseofstockoptions 25,000 — 47 47

Stock-basedcompensation 811 811Netlossfortheyear (8,651) (8,651)Foreigncurrencytranslationadjustment (1,092) (1,092)

BalanceatJanuary2,2016 18,367,758 $ 2 $ 75,812 $ (1,283) $ (53,063) $ (2,502) $ 18,966Issuanceofcommonstockuponvestingofrestrictedshares 138,859 80 80

Stock-basedcompensation 456 456Netlossfortheyear (4,322) (4,322)Foreigncurrencytranslationadjustment (360) (360)

BalanceatDecember31,2016 18,506,617 $ 2 $ 76,348 $ (1,283) $ (57,385) $ (2,862) $ 14,820

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

Nature of Operations

TheCompanydesigns,marketsanddistributesbrandedjuvenilehealth,safetyandwellnessproductsthataresoldgloballytolargenationalretailersaswellasindependentretailers,primarilyinNorthAmerica.TheCompanycurrentlymarketsitsproductsinseveralproductcategoriesincludingmonitoring,safety,nursery,babygear,andfeedingproducts.MostproductsaresoldunderourcorebrandnamesofSummer®,SwaddleMe®,andBornFree®.

Basis of Presentation and Principles of Consolidation

ItistheCompany'spolicytoprepareitsfinancialstatementsontheaccrualbasisofaccountinginconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Theconsolidatedfinancialstatementsincludetheaccountsofitswholly-ownedsubsidiaries.Allsignificantintercompanyaccountsandtransactionshavebeeneliminatedintheconsolidation.

AlldollaramountsincludedintheNotestoConsolidatedFinancialStatementsareinthousandsofU.S.dollarsexceptshareandpershareamounts.

Fiscal Year

TheCompany'sfiscalyearendsontheSaturdayclosesttoDecember31ofeachcalendaryear.TherewerefiftytwoweeksinthefiscalyearsendedDecember31,2016andJanuary2,2016.

SummaryofSignificantAccountingPolicies

Revenue Recognition

TheCompanyrecordsrevenuewhenallofthefollowingoccur:persuasiveevidenceofanarrangementexists,productdeliveryhasoccurred,thesalespricetothecustomerisfixedordeterminable,andcollectabilityisreasonablyassured.Salesarerecordednetofprovisionsforreturnsandallowances,customerdiscounts,andothersalesrelateddiscounts.TheCompanybasesitsestimatesfordiscounts,returnsandallowancesonnegotiatedcustomertermsandhistoricalexperience.Customersdonothavetherighttoreturnproductsunlesstheproductsaredefective.TheCompanyrecordsareductionofsalesforestimatedfuturedefectiveproductdeductionsbasedoncontractualtermsandhistoricalexperience.

SalesincentivesorotherconsiderationgivenbytheCompanytocustomersthatareconsideredadjustmentsofthesellingpriceofproducts,suchasmarkdowns,arereflectedasreductionsofrevenue.SalesincentivesandotherconsiderationthatrepresentcostsincurredbytheCompanyforassetsorservicesreceived,suchastheappearanceoftheCompany'sproductsinacustomer'snationalcircularad,arereflectedassellingandmarketingexpensesintheaccompanyingstatementsofoperations.

Use of Estimates

ThepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequiresmanagementtomakeestimatesandassumptionsthataffectcertainreportedamountsanddisclosures.Theseestimatesarebasedonmanagement'sbestknowledgeofcurrenteventsandactionstheCompanymayundertakeinthefuture.Accordingly,actualresultscoulddifferfromthoseestimates.

F-8

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

Cash and Cash Equivalents

Cashflows,cashandcashequivalentsincludemoneymarketaccountsandinvestmentswithanoriginalmaturityofthreemonthsorless.Attimes,theCompanypossessescashbalancesinexcessoffederally-insuredlimits.

Trade Receivables

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

Inventory Valuation

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

Property and Equipment

Propertyandequipmentarerecordedatcost.TheCompanyownsthetoolsandmoldsusedintheproductionofitsproductsbythirdpartymanufacturers.Capitalizedmoldcostsincludecostsincurredforthepre-productiondesignanddevelopmentofthemolds.

Depreciationisprovidedovertheestimatedusefullivesoftherespectiveassetsusingeitherstraight-lineoracceleratedmethods.

Long-Lived Assets with Finite Lives

TheCompanyreviewslong-livedassetswithfinitelivesforimpairment(usingthegroupconcept)whenevereventsorchangesincircumstancesindicatethatthecarryingamountofalong-livedassetmaynotberecoverable.Anassetisconsideredtobeimpairedwhenitscarryingamountexceedsboththesumoftheundiscountedfuturenetcashflowsexpectedtoresultfromtheuseoftheassetanditseventualdispositionandtheassets'fairvalue.Long-livedassetsincludepropertyandequipmentandfinite-livedintangibleassets.Theamountofimpairmentloss,ifany,ischargedbytheCompanytocurrentoperations.

Indefinite-Lived Intangible Assets

TheCompanyaccountsforintangibleassetsinaccordancewithaccountingguidancethatrequiresthatintangibleassetswithindefiniteusefullivesbetestedannuallyforimpairmentandmorefrequentlyifeventsorchangesincircumstancesindicatethattheassetmightbeimpaired.TheCompany'sannualimpairmenttestingisconductedinthefourthquarterofeveryyear.

F-9

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

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

Managementalsoevaluatestheremainingusefullifeofanintangibleassetthatisnotbeingamortizedeachreportingperiodtodeterminewhethereventsandcircumstancescontinuetosupportanindefiniteusefullife.Ifanintangibleassetthatisnotbeingamortizedissubsequentlydeterminedtohaveafiniteusefullife,itisamortizedprospectivelyoveritsestimatedremainingusefullife.

FortheyearendedDecember31,2016,theCompanydeterminedthatcertainindefinite-livedintangibleassetswereimpaired.FortheyearendedJanuary2,2016,theCompanydeterminedthatnoimpairmentexistedonitsindefinite-livedintangibleassets.SeeNote3foradiscussiononthefiscalyear2016impairmentcharge.

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,accruedexpensesandshort-termborrowingsapproximatefairvalue.Thecarryingvalueoflong-termborrowingsapproximatesfairvalue.

Non-recurring Fair Value Measurements

TheCompany'sassetsmeasuredatfairvalueonanonrecurringbasisincludelong-livedassetsandintangibleassets.TheCompanytestsitslong-livedassetsforimpairmentatleastannuallyandwhenever

F-10

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

eventsorchangesincircumstancesindicatethatthecarryingvaluemaynotberecoverableorthatthecarryingvaluemayexceeditsfairvalue.TheresultingfairvaluemeasurementsareconsideredtobeLevel3inputs.Duringthefourthquarteroffiscal2016,theCompanydeterminedthattheestimatedfairvalueofanindefinitelivedassetwaslowerthanitscarryingvalueandtheCompanyrecordedanon-cashimpairmentchargeof$2,993whichreducedthevalueoftheintangibleassettoapproximately$915,asmorefullydescribedin"Note3totheConsolidatedFinancialStatements—IntangibleAssets."TheCompanydidnotincuranimpairmentchargeinfiscal2015.

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,andAsianoperationshavebeentranslatedintoU.S.dollarsatyear-endexchangeratesandtheincomeandexpenseaccountsofthesesubsidiarieshavebeentranslatedataverageratesprevailingduringeachrespectiveyear.Resultingtranslationadjustmentsaremadetoaseparatecomponentofstockholders'equitywithinaccumulatedothercomprehensiveloss.Foreignexchangetransactiongainsandlossesareincludedintheaccompanyingconsolidatedstatementsofoperations.

Shipping Costs

Shippingcoststocustomersareincludedinsellingexpensesandamountedtoapproximately$1,477and$1,882forthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.

Advertising Costs

TheCompanychargesadvertisingcoststosellingexpenseasincurred.Advertisingexpense,whichconsistsprimarilyofpromotionalandcooperativeadvertisingallowancesprovidedtocustomers,wasapproximately$12,863and$14,743forthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.

Segment Information

Operatingsegmentsareidentifiedascomponentsofanenterpriseaboutwhichseparate,discretefinancialinformationisavailableforevaluationbythechiefoperatingdecision-maker,ordecision-makinggroup,inmakingdecisionsonhowtoallocateresourcesandassessperformance.TheCompany

F-11

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

viewsitsoperationsandmanagesitsbusinessasoneoperatingsegmentutilizinganomni-channeldistributionstrategy.

Net Loss Per Share

Basicearningspershareiscalculatedbydividingnetlossfortheperiodbytheweightedaveragenumberofcommonstockoutstandingduringtheperiod.

DilutedlosspersharefortheCompanyiscomputedbydividingnetlossbythedilutiveweightedaveragesharesoutstandingwhichincludes:thedilutiveimpact(usingthe"treasurystock"method)of"inthemoney"stockoptionsandunvestedrestrictedsharesissuedtoemployees.Optionstopurchase1,023,825and1,380,147sharesoftheCompany'scommonstockand268,432and197,572ofrestrictedshareswerenotincludedinthecalculation,duetothefactthattheseinstrumentswereanti-dilutiveforthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.

New Accounting Pronouncements

InMay2014,theFASBissuednewaccountingguidancerelatedtorevenuerecognition.ThisguidancewasoriginallyproposedtobeeffectiveforreportingperiodsbeginningafterDecember15,2016,howeverinJuly2015,theFASBapprovedthedelayinthisguidanceuntilreportingperiodsbeginningafterDecember15,2017.Wearestillfinalizingtheanalysistoquantifytheadoptionimpactoftheprovisionsofthenewstandard,butwedonotcurrentlyexpectittohaveamaterialimpactonourconsolidatedfinancialpositionorresultsofoperations.Basedontheevaluationofourcurrentcontractsandrevenuestreams,mostwillberecordedconsistentlyunderboththecurrentandnewstandard.TheFASBhasissued,andmayissueinthefuture,interpretiveguidancewhichmaycauseourevaluationtochange.Webelievewearefollowinganappropriatetimelinetoallowforproperrecognition,presentationanddisclosureuponadoptioneffectivethebeginningoffiscalyear2018.

InApril2015,theFASBissuedASU2015-03,"Interest-ImputationofInterest(Subtopic835-30):SimplifyingthePresentationofDebtIssuanceCosts."Thisguidancerequiresdebtissuancecostsrelatedtoarecognizeddebtliabilitybepresentedinthebalancesheetasadirectdeductionfromthecarryingamountofthedebtliability.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2015.TheCompanyadoptedthisguidanceinthefirstquarterof2016anditresultedintheretrospectivereclassificationof$1,489asofJanuary2,2016inunamortizeddebtissuancecostsfromotherassetstoadirectreductionoflong-termdebt.

InJuly2015,theFASBissuedASU2015-11,"SimplifyingtheMeasurementofInventory."ThisguidancerequiresinventorywithinthescopeofASU2015-11tobemeasuredatthelowerofcostandnetrealizablevalue.Netrealizablevalueisdefinedastheestimatedsellingpriceintheordinarycourseofbusiness,lessreasonablypredictablecostsofcompletion,disposal,andtransportation.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2016.TheCompanyhasevaluatedtheimpactthisguidancewillhaveonitsconsolidatedfinancialstatementsandexpectstheimpacttobeimmaterial.

InNovember2015,theFASBissuedASU2015-17,"IncomeTaxes(Topic740):BalanceSheetClassificationofDeferredTaxes."Thisguidanceeliminatesthecurrentrequirementforanentitytoseparatedeferredincometaxliabilitiesanddeferredtaxassetsintocurrentandnon-currentamountsinaclassifiedbalancesheet.Instead,thisguidancerequiresdeferredtaxliabilities,deferredtaxassets,and

F-12

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

valuationallowancesbeclassifiedasnoncurrentinaclassifiedbalancesheet.ThisASUiseffectiveforannualreportingperiodsbeginningafterDecember15,2016andinterimperiodswithinthoseannualperiods.Earlyadoptionispermitted.TheCompanyadoptedthisguidanceinthefirstquarterof2016anditresultedintheretrospectivereclassificationof$799asofJanuary2,2016incurrentdeferredtaxassetstononcurrentdeferredtaxassets.

InFebruary2016,theFASBissuedASU2016-02,"Leases(Topic842),"("ASU2016-02").ASU2016-02requireslesseestorecognizeassetsandliabilitiesonthebalancesheetforleaseswithleasetermsgreaterthantwelvemonthsanddisclosekeyinformationaboutleasingarrangements.Theeffectivedatewillbethefirstquarteroffiscalyear2019,withearlyadoptionpermitted.TheCompanyisevaluatingtheimpactthatadoptionofthisnewstandardwillhaveonitsconsolidatedfinancialstatements.

InAugust2016,theFASBissuedASU2016-15,"StatementofCashFlows(Topic230):ClassificationofCertainCashReceiptsandCashPayments(AConsensusoftheFASBEmergingIssuesTaskForce).Inanefforttoreducediversityinpractice,ASU2016-15providessolutionsforeightspecificstatementofcashflowclassificationissues.TheASUiseffectiveforpubliccompaniesbeginningafterDecember15,2017,andinterimperiodswithinthosefiscalyears.Earlyadoptionispermitted,includingadoptioninaninterimperiod.TheCompanyhasevaluatedtheimpactthisguidancewillhaveonitsconsolidatedfinancialstatementsandexpectstheimpacttobeimmaterial.

Managementdoesnotbelievethatanyotherrecentlyissued,butnotyeteffective,accountingstandardsifcurrentlyadoptedwouldhaveamaterialeffectontheaccompanyingfinancialstatements.

2.PROPERTYANDEQUIPMENT

Propertyandequipment,atcost,consistedofthefollowing:

Propertyandequipmentincludedamountsacquiredundercapitalleasesofapproximately$0and$470atDecember31,2016andJanuary2,2016,respectively,withrelatedaccumulateddepreciationofapproximately$0and$257,respectively.Totaldepreciationexpensewas$4,304and$4,142forthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.

F-13

Forthefiscalyear

ended

December31,

2016 January2,

2016 Depreciation/

AmortizationPeriodComputer-related $ 3,861 $ 6,327 5yearsTools,dies,prototypes,andmolds 28,342 31,052 1-5yearsBuilding 4,156 4,156 30yearsOther 6,145 5,793 various

42,504 47,328 Less:accumulateddepreciation 32,539 35,321

Propertyandequipment,net $ 9,965 $ 12,007

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

3.INTANGIBLEASSETS

Intangibleassetsconsistedofthefollowing:

Theamortizationperiodforthemajorityoftheintangibleassetsrangesfrom5to20yearsforthoseassetsthathaveanestimatedlife;certainassetshaveindefinitelives(certainbrandnames).Totalofintangiblesnotsubjecttoamortizationamountedto$8,400and$12,308forthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.

Amortizationexpenseamountedto$707and$2,638forthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.InthefourthquarteroftheyearendedJanuary2,2016,theCompanyrecorded$1,532ofacceleratedamortizationduetotheshortenedestimatedusefullifeonoldertechnologyaswemovedtoournextgenerationoftechnologythatwasbeingdevelopedinourproductlines.

TheCompanyundertookitsannualindefinite-livedintangibleassetimpairmentanalysisandengagedathirdpartytoassistmanagementinvaluingtheinfinitelivedintangibleassetsrecordedonthebalancesheetinthefourthquarteroffiscal2016.TheCompanydeterminedthattheestimatedfairvalueofthatindefinitelivedassetwaslowerthanitscarryingvalue,andtheCompanyrecordedanon-cashimpairmentchargeof$2,993infiscal2016.Inaddition,theCompanydeemedtheremainingvalueoftheindefinitelivedassettohaveafinitelifesubjecttoamortizationoveritsremainingusefullifeestimatedtobe15years.ThiswasachangeinestimateandthefinancialimpactwaszeroasofDecember31,2016.TheCompanyalsoconsideredwhetherotherlong-livedassetsintheassetgroupwereimpairedandconcludedthattheywerenot.NoimpairmentwasrecordedforthefiscalyearendedJanuary2,2016.

Estimatedamortizationexpensefortheremainingindefinite-livedassetsforthenextfiveyearsisasfollows:

F-14

Forthe

fiscalyearended

December31,

2016 January2,

2016 Brandnames $ 11,819 $ 14,812Patentsandlicenses 3,766 3,766Customerrelationships 6,946 6,946Otherintangibles 1,882 1,882

24,413 27,406Less:accumulatedamortization (9,600) (8,894)Intangibleassets,net $ 14,813 $ 18,512

FiscalYearending 2017 $ 7672018 7462019 7382020 4882021 488

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

4.DEBT

Credit Facilities

InApril2015,theCompanyanditswhollyownedsubsidiary,SummerInfant(USA),Inc.,enteredintoanamendedandrestatedloanandsecurityagreementwithBankofAmerica,N.A.,asagent,providingforanasset-basedcreditfacility.TheamendedandrestatedCreditFacilityreplacedtheCompany'spriorcreditfacilitywithBankofAmerica.TheamendedandrestatedcreditfacilitywassubsequentlyamendedinDecember2015andMay2016to(i)modifytheinterestrateundereachoftheRevolvingFacility,FILOFacilityandTermLoanFacility(eachasdefinedbelow),(ii)modifythemaximumleverageratiofinancialcovenant;(iii)amendthedefinitionofEBITDAwithrespecttocertainfeesandexpensesincludedwithinthedefinition;(iv)modifycertainreportingrequirementsand(v)removetheoccurrenceofaneventhavingamaterialadverseeffectontheCompanyasaneventofdefault(asamended,the"CreditFacility").

TheCreditFacilityconsistsofa$60,000asset-basedrevolvingcreditfacility,witha$10,000letterofcreditsub-linefacility(the"RevolvingFacility"),a$5,000"firstinlastout"(FILO)revolvingcreditfacility(the"FILOFacility")anda$10,000termloanfacility(the"TermLoanFacility").Pursuanttoanaccordionfeature,theCreditFacilityincludestheabilitytoincreasetheRevolvingFacilitybyanadditional$15,000upontheCompany'srequestandtheagreementofthelendersparticipatingintheincrease.ThetotalborrowingcapacityundertheRevolvingFacilityisbasedonaborrowingbase,generallydefinedas85%ofthevalueofeligibleaccountsplusthelesserof(i)70%ofthevalueofeligibleinventoryor(ii)85%ofthenetorderlyliquidationvalueofeligibleinventory,lessreserves.ThetotalborrowingcapacityundertheFILOFacilityisbasedonaborrowingbase,generallydefinedasaspecifiedpercentageofthevalueofeligibleaccountsthatstepsdownovertime,plusaspecifiedpercentageofthevalueofeligibleinventorythatstepsdownovertime.

ThescheduledmaturitydateoftheloansundertheRevolvingFacilityandtheTermLoanFacilityisApril21,2020,andloansundertheFILOFacilityterminateApril21,2018,subjectineachcasetocustomaryearlyterminationprovisions.AnyterminationoftheRevolvingFacilitywouldrequireterminationoftheTermLoanFacilityandtheFILOFacility.

AllobligationsundertheCreditFacilityaresecuredbysubstantiallyalloftheCompany'sassets.Inaddition,SummerInfantCanadaLimitedandSummerInfantEuropeLimited,subsidiariesoftheCompany,areguarantorsundertheCreditFacility.Proceedsfromtheloanswereusedto(i)repaytheCompany'sthenoutstandingtermloan,(ii)payfeesandtransactionexpensesassociatedwiththeclosingoftheCreditFacility,(iii)payobligationsundertheCreditFacility,and(iv)payforlawfulcorporatepurposes,includingworkingcapital.

BorrowingsundertheRevolvingFacilitybearinterest,attheCompany'soption,atabaserateoratLIBOR,plusapplicablemarginsbasedonaveragequarterlyavailabilityandrangingbetween2.0%and2.5%onLIBORborrowingsand0.5%and1.0%onbaserateborrowings.LoansundertheFILOFacilityandTermLoanFacilitywillbearinterest,attheCompany'soption,atabaserateoratLIBOR,plusamarginof4.25%onLIBORborrowingsand2.75%onbaserateborrowings.

BeginningonJuly1,2015,theCompanywasrequiredtobeginrepayingtheTermLoanFacilityinquarterlyinstallmentsof$500.BeginningwiththefiscalyearendingJanuary2,2016,theCompanywasrequiredtoprepaytheTermLoanFacilityinanamountequalto50%oftheCompany's"excesscashflow,"assuchtermisdefinedintheCreditFacility,attheendofeachfiscalyear.

F-15

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

4.DEBT(Continued)

UndertheCreditFacility,theCompanymustcomplywithcertainfinancialcovenants,includingthattheCompany(i)maintainafixedchargecoverageratioofatleast1.0to1.0forthetwelveconsecutivefiscalmonthsmostrecentlyendedand(ii)maintainacertainleverageratioattheendofeachfiscalquarter.Forpurposesofthefinancialcovenants,consolidatedEBITDAisdefinedasnetincomebeforeinterest,taxes,depreciationandamortization,pluscertaincustomaryexpenses,fees,non-cashchargesandupto$2,000ofspecifiedinventorydispositionsin2015,andminuscertaincustomarynon-cashitemsincreasingnetincomeandotherspecifieditems.

TheCreditFacilitycontainscustomaryaffirmativeandnegativecovenants.Amongotherrestrictions,theCompanyisrestrictedinitsabilitytoincuradditionaldebt,makeacquisitionsorinvestments,disposeofassets,ormakedistributionsunlessineachcasecertainconditionsaresatisfied.TheCreditFacilityalsocontainscustomaryeventsofdefault,includingtheoccurrenceofachangeofcontrol.Intheeventofadefault,alloftheCompany'sobligationsundertheCreditFacilitymaybedeclaredimmediatelydueandpayable.Forcertaineventsofdefaultrelatingtoinsolvencyandreceivership,alloutstandingobligationsimmediatelybecomedueandpayable.

AsofDecember31,2016,therateonbase-rateloanswas4.75%andtherateonLIBOR-rateloanswas3.375%.TheamountoutstandingontheRevolvingFacilityatDecember31,2016was$36,182.TotalborrowingcapacityundertheRevolvingFacilityatDecember31,2016was$47,196andborrowingavailabilitywas$11,014.TheamountsoutstandingontheTermLoanFacilityandFILOFacilityatDecember31,2016were$7,000and$3,750,respectively.

AggregatematuritiesofbankdebtrelatedtotheBofAcreditfacility:

Unamortizeddebtissuancecostswere$1,226atDecember31,2016and$1,489atJanuary2,2016,andarepresentedasadirectdeductionoflong-termdebtontheconsolidatedbalancesheets.

Subsequenttofiscalyearend,onFebruary17,2017,theCompanyamendedtheCreditFacilitytoprovideadditionalflexibilityunderitscovenantrequirementstotheCompanyduringfiscal2017.SeeNote12foradditionalinformationregardingtheamendment.

Prior Credit Facility and Term Loan

TheCreditFacilityreplacedtheCompany'spriorcreditfacilitywithBankofAmericaandtheCompany'spriortermloanagreementwithSalusCapitalPartners,LLC.PriortoApril2015,theCompanyhadaloanandsecurityagreementwithBankofAmericaN.A.thatprovidedforan$80,000,asset-basedrevolvingcreditfacility,witha$10,000letterofcreditsub-linefacility.

TheCompanyevaluatedtheCreditFacility,bylender,todeterminetheproperaccountingtreatmentforthetransaction.Accordingly,debtextinguishmentaccountingwasusedtoaccountforthepayoffofthepriortermloanagreementwithSalusCapitalPartners,LLCandforthepayoffofa

F-16

FiscalYearending: 2017 $ 4,5002018 3,2502019 2,0002020 37,182Total $ 46,932

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

4.DEBT(Continued)

memberofthepriorcreditfacilitywithBankofAmericawhodidnotcontinueintheCreditFacilityresultinginthewriteoffof$549inremainingunamortizeddeferredfinancingcostsand$135interminationfees.Debtmodificationaccountingwasusedfortheremainingmembersofthepriorcreditfacilityresultingintheirremainingunamortizeddeferredfinancingcostsof$601andthenewfinancingcostsof$1,134tobecapitalizedandamortizedoverthelifeofthenewdebtbeginninginthesecondquarteroffiscal2015.

Sale-Leaseback

OnMarch24,2009,SummerInfant(USA),Inc.,theCompany'swhollyownedsubsidiary("SummerUSA"),enteredintoadefinitiveagreementwithFaithRealtyII,LLC,aRhodeIslandlimitedliabilitycompany("FaithRealty")(themembersofwhichareJasonMacari,theformerChiefExecutiveOfficeroftheCompanyandcurrentinvestor,andhisspouse),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,suchthattheinitialtermnowendsonMarch31,2018,andthetermoftheLeasemaybeextendedatSummerUSA'selectionforoneadditionaltermofthreeyears(ratherthanfiveyears)upontwelvemonths'priornotice,(ii)theannualrentforthelasttwoyearsofthenewlyamendedinitialtermwassetat$429andtheannualrentfortheextensionperiod,ifelected,wassetat$468and(iii)theLandlordagreedtoprovideanaggregateimprovementallowanceofnotmorethan$78forthenewlyamendedinitialterm,tobeappliedagainstSummerUSA'smonthlyrent,andanadditionalimprovementallowanceof$234fortheextensionterm,ifelected,tobeappliedagainstSummerUSA'smonthlyrentduringsuchextensionterm.TheAmendmentwasreviewedandapprovedbytheauditcommitteebecauseitwasarelatedpartytransaction.

F-17

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

4.DEBT(Continued)

AtDecember31,2016,approximately$404oftheleaseobligationwasincludedinaccruedexpenses,withthebalanceofapproximately$2,429includedinotherliabilities,intheaccompanyingconsolidatedbalancesheet.Thisobligationisreducedeachmonth(alongwithachargetointerestexpense)astherentpaymentismadetoFaithRealty.

Approximatefutureminimumsale-leasebackpaymentsdueundertheleaseisasfollows:

5.INCOMETAXES

Theprovision(benefit)forincometaxesissummarizedasfollows:

F-18

FiscalYearEnding: 2017 $ 4292018 1072019andbeyond —Total $ 536

Fiscal2016 Fiscal2015 Current: Federal $ — $ (150)Foreign 185 389Stateandlocal 6 5

Totalcurrent 191 244Deferred: Federal $ (406) $ (3,386)Foreign (910) 175Stateandlocal (49) (457)

Totaldeferred (1,365) (3,668)Totalbenefit $ (1,174) $ (3,424)

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

5.INCOMETAXES(Continued)

Thetaxeffectsoftemporarydifferencesthatcomprisethedeferredtaxliabilitiesandassetsareasfollows:

ThefollowingreconcilesthebenefitforincometaxesattheU.S.federalincometaxstatutoryratetothebenefitintheconsolidatedfinancialstatements:

TheCompanyhadundistributedearningsfromcertainforeignsubsidiaries(SummerInfantAsia,SummerInfantAustralia,andBornFreeHoldings,Ltd)ofapproximately$12,588atDecember31,2016,andalloftheseearningsareconsideredtobepermanentlyreinvestedduetotheCompany'splanstoreinvestsuchearningsforfutureexpansionincertainforeignjurisdictions.EarningsandprofitsfromSummerInfantEuropeandSummerInfantCanadaarenotconsideredtobepermanentlyreinvestedduetothebankrefinancingasdiscussedinNote4—Debt.Theamountoftaxesattributabletothepermanentlyreinvestedundistributedearningsisnotpracticablydeterminable.

AsofDecember31,2016,theCompanyhasapproximately$7,016,000offederalandstatenetoperatinglosscarryforwards(or"NOLs")tooffsetfuturefederaltaxableincome.ThefederalNOL

F-19

December31,

2016 January2,

2016 Deferredtaxassets: Accountsreceivable $ 17 $ 7InventoryandUnicapreserve 676 689Researchanddevelopmentcredit,foreigntaxcreditandnetoperatinglosscarry-forward 7,658 7,183

Other 102 103Totaldeferredtaxassets 8,453 7,982Deferredtaxliabilities: Intangibleassetsandother (2,595) (3,233)Property,plantandequipment (653) (748)

Totaldeferredtaxliabilities (3,248) (3.981)Valuationallowance (1,357) (1,518)Deferredtaxliabilitiesandvaluationallowance (4,605) (5,499)Netdeferredincometaxasset $ 3,848 $ 2,483

Fiscal2016 Fiscal2015 Taxbenefitatstatutoryrate $ (1,869) $ (4,093)Stateincometaxes,netofU.S.federalincometaxbenefit (28) (298)Adjustmenttouncertaintaxposition 14 327Stockoptions 70 92Foreigntaxratedifferential 133 289Taxcredits (123) (150)Non-deductibleexpenses 498 438Other 131 (29)Totalbenefit $ (1,174) $ (3,424)

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

5.INCOMETAXES(Continued)

willbegintoexpirein2028andthestateNOLbegantoexpirein2016.TheCompanyalsohasapproximately$1,839,$530,and$708ofNOLsinCanada,Australia,andtheUnitedKingdom,whichcanbecarriedforwardindefinitely.

Authoritativeguidancerequiresavaluationallowancetoreducethedeferredtaxassetsreported,ifbasedontheweightoftheevidence,itismorelikelythannotthatsomeportionorallofthedeferredtaxassetswillnotberealized.Afterconsiderationofallevidence,includingtheCompany'spastearningshistoryandfutureearningsforecast,managementhasdeterminedthatavaluationallowanceintheamountof$1,357relatingtocertainstatetaxcreditsisnecessaryatDecember31,2016and$1,518atJanuary2,2016.

AsummaryoftheCompany'sadjustmenttoitsuncertaintaxpositionsinfiscalyearsendedDecember31,2016andJanuary2,2016areasfollows:

Theunrecognizedtaxbenefitsmentionedaboveincludeanaggregateof$58ofaccruedinterestandpenaltybalancesrelatedtouncertaintaxpositions.TheCompanyrecognizesinterestandpenaltiesrelatedtouncertaintaxpositionsinincometaxexpense.Anincreaseinaccruedinterestandpenaltychargesofapproximately$14,netoffederaltaxexpense,wasrecordedasataxexpenseduringthecurrentfiscalyear.TheCompanydoesnotanticipatethatitsaccrualforuncertaintaxpositionswillbereducedbyamaterialamountoverthenexttwelvemonthperiod,asitdoesnotexpecttosettleanypotentialdisputeditemswiththeappropriatetaxingauthoritiesnordoesitexpectthestatuteoflimitationstoexpireforanyitems.

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

6.SHAREBASEDCOMPENSATION

TheCompanyisauthorizedtoissueupto3,000,000sharesforequityawardsundertheCompany's2006PerformanceEquityPlan("2006Plan")and1,700,000sharesforequityawardsundertheCompany's2012IncentiveCompensationPlan(asamended,"2012Plan").Periodically,theCompanyalsoprovidesequityawardsoutsideoftheplans.

F-20

December31,

2016 January2,

2016 Balance,atbeginningoftheyear $ 327 $ —Increasefortaxpositionsrelatedtothecurrentyear — —Increasefortaxpositionsrelatedtoprioryears — 283Increaseforinterestandpenalties 14 44Decreaseforlapsesofstatuteoflimitations — —

Balance,atendofyear $ 341 $ 327

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

6.SHAREBASEDCOMPENSATION(Continued)

Underthe2006Planand2012Plan,awardsmaybegrantedtoparticipantsintheformofnon-qualifiedstockoptions,incentivestockoptions,restrictedstock,deferredstock,restrictedstockunitsandotherstock-basedawards.SubjecttotheprovisionsofthePlans,awardsmaybegrantedtoemployees,officers,directors,advisorsandconsultantswhoaredeemedtohaverenderedorareabletorendersignificantservicestotheCompanyoritssubsidiariesandwhoaredeemedtohavecontributedortohavethepotentialtocontributetotheCompany'ssuccess.TheCompanyaccountsforoptionsunderthefairvaluerecognitionstandard.Theapplicationofthisstandardresultedinshare-basedcompensationexpenseforthetwelvemonthsendedDecember31,2016andJanuary2,2016of$482and$865,respectively.Sharebasedcompensationexpenseisincludedinselling,generalandadministrativeexpenses.

AsofDecember31,2016,thereare561,729sharesavailabletograntunderthe2006Planand1,393,797sharesavailabletograntunderthe2012Plan.

Stock Options

ThefairvalueofeachoptionawardisestimatedonthedateofgrantusingtheBlack-Scholesoptionvaluationmodelthatusestheassumptionsnotedinthetablebelow.TheCompanyusesthesimplifiedmethodtoestimatetheexpectedtermoftheoptionsforgrantsof"plainvanilla"stockoptionsasprescribedbytheSecuritiesandExchangeCommission.Forfeituresareestimatedatthetimeofgrantandrevised,ifnecessary,insubsequentperiodsifactualforfeituresdifferfromthoseestimates.Share-basedcompensationexpenserecognizedintheconsolidatedfinancialstatementsinfiscal2016and2015isbasedonawardsthatareultimatelyexpectedtovest.

ThefollowingtablesummarizestheweightedaverageassumptionsusedforoptionsgrantedduringthefiscalyearsendedDecember31,2016andJanuary2,2016.

Theweighted-averagegrantdatefairvalueofoptionsgrantedduringtheyearendedDecember31,2016was$0.92persharewhichtotaled$316forthe343,300optionsgrantedduringsuchperiod.DuringtheyearendedJanuary2,2016,theweighted-averagegrantdatefairvalueofoptionsgrantedwas$1.58persharewhichtotaled$767forthe485,750optionsgrantedduringtheyear.

F-21

Fiscal2016

Fiscal2015

Expectedlife(inyears) 5.1 5.3Risk-freeinterestrate 1.3% 1.6%Volatility 70.8% 67.4%Dividendyield 0.0% 0.0%Forfeiturerate 21.0% 16.5%

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

6.SHAREBASEDCOMPENSATION(Continued)

AsummaryofthestatusoftheCompany'soptionsasofDecember31,2016andchangesduringtheyearthenendedispresentedbelow:

OutstandingstockoptionsexpectedtovestasofDecember31,2016is882,342.Theintrinsicvalueofoptionsexercisedtotaledwaszeroand$27forthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.

ThefollowingtablesummarizesinformationaboutstockoptionsatDecember31,2016:

TheaggregateintrinsicvalueofoptionsoutstandingandexercisableatDecember31,2016andJanuary2,2016are$9and$36,respectively.AsofDecember31,2016,therewasapproximately$322ofunrecognizedcompensationcostrelatedtonon-vestedstockoptionawards,whichisexpectedtoberecognizedoveraremainingweighted-averagevestingperiodof2.7years.

Restricted Stock Awards

Restrictedstockawardsrequirenopaymentfromthegrantee.Therelatedcompensationcostofeachawardiscalculatedusingthemarketpriceonthegrantdateandisexpensedequallyoverthe

F-22

NumberOf

Shares Weighted-AverageExercisePrice

Outstandingatbeginningofyear 1,302,213 $ 3.45Granted 343,300 $ 1.56Canceled 621,688 $ 3.23Outstandingatendofyear 1,023,825 $ 2.93OptionsexercisableatDecember31,2016 515,407 $ 3.88

OptionsOutstanding OptionsExercisable

RangeofExercisePrices

NumberOutstanding

RemainingContractualLife(years)

WeightedAverageExercisePrice

NumberExercisable

RemainingContractual

Life

WeightedAverageExercisePrice

$1.29-$2.00 355,300 8.9 $ 1.56 50,750 7.4 $ 1.82$2.01-$3.00 310,500 6.3 $ 2.36 152,630 3.7 $ 2.25$3.01-$4.00 134,000 7.0 $ 3.32 88,002 6.8 $ 3.34$4.01-$6.00 174,325 1.1 $ 5.28 174,325 1.1 $ 5.28$6.01-$8.00 49,700 4.0 $ 7.04 49,700 4.0 $ 7.04

1,023,825 6.3 $ 2.93 515,407 3.8 $ 3.88

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

6.SHAREBASEDCOMPENSATION(Continued)

vestingperiod.AsummaryofrestrictedstockawardsmadeintheyearendedDecember31,2016,isasfollows:

AsofDecember31,therewasapproximately$282ofunrecognizedcompensationcostrelatedtonon-vestedstockcompensationarrangementsgrantedundertheCompany'sstockincentiveplanforrestrictedstockawards.Thatcostisexpectedtoberecognizedoverthenext2.6years.

Restricted Stock Units

InDecember2015,theCompany'sBoardofDirectorsgrantedrestrictedstockunits("RSUs")totheexecutiveChairmanoftheBoard.TheRSUsrepresenttherighttoreceivesharesoftheCompany'scommonstockuponachievementofspecifiedstockpriceperformancemetrics,andonlyvestifsuchmarket-basedperformancemetricsareachieved.Therewas$26ofrecognizedcompensationcostfortheyearendedDecember31,2016.TheRSUsexpiredonAugust3,2016.

OnJuly13,2016,theCompanygranted100,000performance-basedRSUstoitsnewChiefExecutiveOfficer.TheRSUsrepresenttherighttoreceivesharesoftheCompany'scommonstockuponachievementofspecifiedperformancemetrics,andonlyvestifsuchperformancemetricsareachievedforfiscalyear2017andfiscalyear2018.TheRSU'sexpireiftheperformancemetricsarenotachievedorifemploymentisterminated.ThefairvalueoftheRSUswillberecognizedasitisearnedandwhenitisprobablethattheperformanceconditionswillbemet.TheCompanyhasnotrecognizedanycompensationexpensein2016relatedtothisaward.

7.CAPITALLEASEOBLIGATIONS

TheCompanyleasedcertainequipmentundercapitalleaseswhichexpiredinDecember2016.Thecapitalleaseliabilitybalanceofapproximately$0and$71isincludedindebtontheconsolidatedbalancesheetsasofDecember31,2016andJanuary2,2016,ofwhichapproximately$0and$2isincludedinlong-termliabilitiesasofDecember31,2016andJanuary2,2016,respectively.

8.PROFITSHARINGPLAN

SummerInfant(USA),Inc.maintainsadefinedcontributionsalarydeferralplanunderSection401(k)oftheInternalRevenueCode.Allemployeeswhomeettheplan'seligibilityrequirementscanparticipate.Employeesmayelecttomakecontributionsuptofederallimitations.In2007,theCompanyadoptedamatchingplanwhichwasfurtheramendedin2013,andwhichwasfundedthroughouttheyear.FortheyearsendedDecember31,2016andJanuary2,2016,theCompanyrecorded401(k)matchingexpenseof$356and$366,respectively.

F-23

NumberofShares

GrantDateFairValue

Non-vestedrestrictedstockawardsasofJanuary2,2016 175,844 $ 2.70Granted 236,900 $ 1.63Vested 102,524 $ 2.39Forfeited 41,788 $ 2.09Non-vestedrestrictedstockawardsasofDecember31,2016 268,432 $ 1.96

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

9.MAJORCUSTOMERS

SalestotheCompany'stopsevencustomerstogethercomprisedmorethan75%ofoursalesinfiscal2016and73%ofoursalesinfiscal2015.Ofthesecustomers,fourgeneratedmorethan10%ofsalesforfiscal2016:BabiesRUs/ToysRUs(20%),Amazon.com(20%),Walmart(15%),andTarget(11%).Infiscal2015,fourcustomersgeneratedmorethan10%ofsales:BabiesRUs/ToysRUs(23%),Walmart(14%),Amazon.com(14%)andTarget(12%).

10.COMMITMENTSANDCONTINGENCIES

Royalty Commitments

SummerInfant(USA),Inc.hasenteredintovariouslicenseagreementswiththirdpartiesfortheuseofproductdesigns,softwarelicenses,andtradenamesfortheproductsmanufacturedbytheCompany.TheseagreementshaveterminationdatesthroughDecember2017.RoyaltyexpenseundertheselicensingagreementsfortheyearsendedDecember31,2016andJanuary2,2016wereapproximately$315and$735,respectively.

Customer Agreements

TheCompanyentersintoannualagreementswithitscustomersinthenormalcourseofbusiness.Theseagreementsdefinethetermsofproductsalesincluding,insomeinstances,cooperativeadvertisingcostsandproductreturnprivileges(fordefectiveproductsonly)ordefectiveallowances(whicharebaseduponhistoricalexperience).ThesecontractsaregenerallyannualinnatureandobligatetheCompanyonlyastoproductsactuallysoldtothecustomerpursuanttoapurchaseorder.

Lease Commitments

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

SummerInfantEuropeLimitedleasesofficespaceunderanon-cancelableoperatingleaseagreement.Thisleaseisforafive-yeartermthroughApril2017,andrequiresmonthlypaymentsofapproximately$6.Inaddition,SummerInfantEuropeLimitedisrequiredtopayitsproportionateshareofpropertytaxes.

SummerInfantCanada,Ltd.enteredintoafive-yearleaseforofficeandwarehousespaceunderanon-cancelableoperatingleaseagreementexpiringJune2018.TheCompanyisobligatedaspartoftheleasetopaymaintenanceexpensesaswellaspropertytaxesandinsurancecostsasdefinedintheagreement.Monthlypaymentsareapproximately$27overthecourseoftheleaseterm.SummerInfantCanada,Ltd.hastheoptiontorenewthisleaseforoneadditionalperiodoffiveyearsundersimilartermsandconditions.

SummerInfant(USA)Inc.enteredintoa72monthleaseinSeptember2010forwarehousespaceunderanon-cancelableoperatingleaseagreement.TheCompanyisobligatedtopaycertaincommonareamaintenancechargesincludinginsuranceandutilities.Theleasewasextendedin2015andnow

F-24

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

10.COMMITMENTSANDCONTINGENCIES(Continued)

expiresinSeptember2021.Monthlypaymentswere$166infiscal2016andescalateto$186overtheremaininglifeofthelease.

DuringNovember2015,SummerInfantAsiaenteredintoatwoyearofficeleasewhichrequiresmonthlypaymentsof$10through2017.

Approximatefutureminimumrentalpaymentsdueundertheseleasesareasfollows(a):

Rentexpense(excludingtaxes,feesandothercharges)fortheyearsendedDecember31,2016andJanuary2,2016totaledapproximately$2,692and$1,906,respectively.

Employment Contracts

InaccordancewithUnitedKingdomandEUlaw,SummerInfantEuropeLimitedisrequiredtohaveemploymentcontractswithallofitsemployees.Inconnectionwiththesecontracts,SummerInfantEuropeLimitedmakesindividualpensioncontributionstocertainemployeesatvaryingratesfrom3-7%oftheemployee'sannualsalary,aspartoftheirtotalcompensationpackage.Thesepensioncontributionsareexpensedasincurred.Therearenoterminationbenefitprovisionsinthesecontracts.

Litigation

TheCompanyisapartytoroutinelitigationandadministrativecomplaintsincidentaltoitsbusiness.TheCompanydoesnotbelievethattheresolutionofanyorallofsuchroutinelitigationandadministrativecomplaintsislikelytohaveamaterialadverseeffectontheCompany'sfinancialconditionorresultsofoperations.

OnMay27,2015,theCompanyfiledaComplaintagainstCarolE.Bramson,AnnamariaDooley,KennethN.Price,CarsonJ.Darling,DulcieM.Madden,andBruceWorkintheUnitedStatesDistrictCourtfortheDistrictofRhodeIsland(CivilActionNo.1:15-CV-00218-5-LDA)(the"Complaint").TheComplaintallegedtheftandmisappropriationoftheCompany'sconfidentialandproprietarytradesecrets,intellectualproperty,andbusiness,brandingandmarketingstrategies.Ms.BramsonisaformermemberoftheCompany'sBoardofDirectorsandtheCompany'sformerChiefExecutiveOfficer,Ms.DooleyistheCompany'sformerSeniorVicePresidentofProductDevelopment,andMr.PriceistheformerPresidentofGlobalSales&MarketingoftheCompany.Mr.DarlingandMs.MaddenareprincipalsofRestDevices,Inc.,aformerconsultanttotheCompany(the"RestDefendants").

OnAugust25,2015,theCompanyandtheRestDefendantsreachedanagreement-in-principlewithregardtoaproposedsettlement,andtheCompanysubsequentlywithdrewitsmotionfora

F-25

FiscalYearEnding: 2017 $ 2,4152018 2,2152019 2,1402020 2,1852021andbeyond 1,676Total $ 10,631

(a) Amountsexcludepaymentsforsales-leasebacktransactionasdescribedinNote4.

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

10.COMMITMENTSANDCONTINGENCIES(Continued)

preliminaryinjunction.OnNovember1,2015,theCompanyandtheRestDefendantsenteredintoaconfidentialsettlementagreement(the"RestSettlementAgreement")pursuanttowhichtheCompanyandtheRestDefendantsmutuallyreleasedclaimsagainsteachother,andtheCompanyvoluntarilydismissedallclaimsintheComplaintagainsttheRestDefendants.TheRestSettlementAgreementdidnotreleaseanyclaimsagainstMmes.BramsonorDooleyorMr.Price.

InDecember2016,theremainingpartiesintheactionresolvedtheirclaimsagainsteachother,andtheCourtenteredaStipulationandOrderofVoluntaryDismissalonJanuary19,2017.Theretherewasnomaterialimpactonthefinancialstatementsasaresultofthesettlement.

11.GEOGRAPHICALINFORMATION

TheCompanysellsproductsthroughouttheUnitedStates,Canada,andtheUnitedKingdom,andvariousotherpartsoftheworld.TheCompanydoesnotdiscloseproductlinerevenuesasitisnotpracticablefortheCompanytodoso.

Thefollowingisatablethatpresentsnetrevenuebygeographicarea:

Thefollowingisatablethatpresentstotalassetsbygeographicarea:

Thefollowingisatablethatpresentstotallonglivedassetsbygeographicarea:

12.SUBSEQUENTEVENTS

TheCompanyhasevaluatedalleventsortransactionsthatoccurredafterDecember31,2016throughthedateofthisAnnualReport.

F-26

Forthefiscalyear

ended

December31,

2016 January2,

2016 UnitedStates $ 163,381 $ 171,310AllOther 30,947 34,494

$ 194,328 $ 205,804

December31,

2016 January2,

2016 UnitedStates $ 84,519 $ 90,890AllOther 17,218 22,248

$ 101,737 $ 113,138

December31,

2016 January2,

2016 UnitedStates $ 24,512 $ 25,375AllOther 4,212 7,722

$ 28,724 $ 33,097

TableofContents

SUMMERINFANT,INC.ANDSUBSIDIAIRES

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

12.SUBSEQUENTEVENTS(Continued)

OnFebruary17,2017,theCompanyanditssubsidiaries,SummerInfant(USA),Inc.,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,enteredintoanamendmentandwaiver(the"LoanAmendment")totheCreditFacility.PursuanttotheLoanAmendment,theLendersagreedtowaivetheexistingdeliverydatebywhichtheCompanymustdeliverprojectionsforthe2017fiscalyear,andextendedthedatetoMarch1,2017.Inaddition,theLoanAmendmentamendedcertainprovisionsoftheCreditFacilitytoprovideadditionalflexibilitytotheCompanyduringfiscal2017,including(i)amendingthedefinitionsof"Availability,""AvailabilityReserve"and"EligibleAccount";(ii)amendingthedefinitionofEBITDAwithrespecttobonuspaymentsandcertainfeesandexpensesthatcanbeaddedbacktothecalculationofEBITDA;and(iii)amendingthedefinitionof"FixedCharges"andrevisedthemaximumleverageratiofinancialcovenanttobemaintainedasoftheendofeachfiscalquarter.

F-27

TableofContents

IndextoExhibits

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.andFaithRealtyII,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,FileNo.001-33346)

3.1+ AmendedandRestatedCertificateofIncorporation,asamended

3.2 AmendedandRestatedBylaws,asamendedthroughMay5,2016(IncorporatedbyreferencetoExhibit3.1totheRegistrant'sCurrentReportonForm8-KfiledonMay9,2016)

4.1 SpecimenCommonStockCertificate(IncorporatedbyreferencetoExhibit4.2totheRegistrant'sForm8-AfiledonMarch6,2007,SECFileNo.001-33346)

10.1 RegistrationRightsAgreementbyandamongtheRegistrant,JasonMacariandStevenGibree(IncorporatedbyreferencetoExhibit10.9totheRegistrant'sCurrentReportonForm8-KfiledonSeptember5,2006,SECFileNo.000-51228)

10.2* 2006PerformanceEquityPlan(IncorporatedbyreferencetoAppendixAtotheRegistrant'sDefinitiveProxyStatementonSchedule14AfiledonApril29,2008,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,amongSummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonDecember14,2015)

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* 2012IncentiveCompensationPlan,asamended(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonAugust5,2015)

TableofContents

ExhibitNo. Description

10.7* FormofChangeofControlAgreementwithChiefFinancialOfficer,ChiefOperatingOfficerandotherkeyemployees(IncorporatedbyreferencetoExhibit10.2totheRegistrant'sCurrentReportonForm8-KfiledonDecember14,2015)

10.8 SeparationAgreementandRelease,datedasofJanuary15,2014,byandbetweentheRegistrantandJasonMacari(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonJanuary17,2014)

10.9* SummerInfant,Inc.FormofIndemnificationAgreement(forofficersanddirectors)(IncorporatedbyreferencetoExhibit10.3totheRegistrant'sCurrentReportonForm8-KfiledonJanuary17,2014)

10.10* OfferLetterandChangeofControlAgreementbyandbetweentheRegistrantandWilliamE.Mote(IncorporatedbyreferencetoExhibit10.19totheRegistrant'sAnnualReportonForm10-KfiledonMarch4,2015)

10.11* OfferLetterandChangeofControlAgreementbyandbetweentheRegistrantandRobertStebenne(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sQuarterlyReportonForm10-QfiledonMay7,2015)

10.12 AmendmenttoLease,datedMay13,2015,byandbetweenFaithRealtyII,LLCandSummerInfant(USA),Inc.(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonMay19,2015)

10.13* EmploymentAgreement,datedasofJune27,2016,byandbetweentheRegistrantandMarkMessner(IncorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8-KfiledonJune29,2016)

10.14+ ThirdAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement,datedasofFebruary17,2017,amongSummerInfant,Inc.andSummerInfant(USA),Inc.,asBorrowers,SummerInfantCanada,LimitedandSummerInfantEuropeLimited,asGuarantors,CertainFinancialInstitutionsasLendersandBankofAmerica,N.A.asAgent

21.1 ListofSubsidiaries(IncorporatedbyreferencetoExhibit21.1totheRegistrant'sAnnualReportonForm10-KfiledonMarch13,2013)

23.1+ ConsentofIndependentRegisteredPublicAccountingFirm

31.1+ CertificationofChiefExecutiveOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002

31.2+ CertificationofChiefFinancialOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002

32.1+ CertificationofChiefExecutiveOfficerpursuantto18U.S.C.Section1350(Section906oftheSarbanes-OxleyActof2002)

32.2+ CertificationofChiefFinancialOfficerpursuantto18U.S.C.Section1350(Section906oftheSarbanes-OxleyActof2002)

101.INS XBRLInstanceDocument

101.SCH XBRLTaxonomyExtensionSchemaDocument

101.CAL XBRLTaxonomyExtensionCalculationLinkbaseDocument

101.DEF XBRLTaxonomyExtensionDefinitionLinkbaseDocument

101.LAB XBRLTaxonomyExtensionLabelsLinkbaseDocument

101.PRE XBRLTaxonomyExtensionPresentationLinkbaseDocument

* Managementcontractorcompensatoryplanorarrangement.

+ Filedherewith.

Exhibit3.1

AMENDEDANDRESTATED

CERTIFICATEOFINCORPORATIONOF

SUMMERINFANT,INC.

(ConformedcopyincorporatingallamendmentsthroughJune24,2014)

PursuanttoSection245ofthe

DelawareGeneralCorporationLaw

FIRST:Thenameofthecorporationis“SummerInfant,Inc.”(hereinaftersometimesreferredtoasthe“Corporation”).

SECOND:TheregisteredofficeoftheCorporationistobelocatedat615SouthDuPontHighway,KentCounty,Dover,Delaware.Thenameofits

registeredagentatthataddressisNationalCorporateResearch,Ltd.

THIRD:ThepurposeoftheCorporationshallbetoengageinanylawfulactoractivityforwhichcorporationsmaybeorganizedundertheGCL.

FOURTH:ThetotalnumberofsharesofallclassesofcapitalstockwhichtheCorporationshallhaveauthoritytoissueis50,000,000ofwhich49,000,000sharesshallbeCommonStock,havingaparvalueof$0.0001pershare,and1,000,000sharesshallbePreferredStock,havingaparvalueof$0.0001pershare.

A.PreferredStock.TheBoardofDirectorsisexpresslygrantedauthoritytoissuesharesofthePreferredStock,inoneormoreseries,andtofixforeachsuchseriessuchvotingpowers,fullorlimited,andsuchdesignations,preferencesandrelative,participating,optionalorotherspecialrightsandsuchqualifications,limitationsorrestrictionsthereofasshallbestatedandexpressedintheresolutionorresolutionsadoptedbytheBoardofDirectorsprovidingfortheissueofsuchseries(a“PreferredStockDesignation”)andasmaybepermittedbytheGCL.ThenumberofauthorizedsharesofPreferredStockmaybeincreasedordecreased(butnotbelowthenumberofsharesthereofthenoutstanding)bytheaffirmativevoteoftheholdersofamajorityofthevotingpowerofallofthethenoutstandingsharesofthecapitalstockoftheCorporationentitledtovotegenerallyintheelectionofdirectors,votingtogetherasasingleclass,withoutaseparatevoteoftheholdersofthePreferredStock,oranyseriesthereof,unlessavoteofanysuchholdersisrequiredpursuanttoanyPreferredStockDesignation.

B.CommonStock.ExceptasotherwiserequiredbylaworasotherwiseprovidedinanyPreferredStockDesignation,theholdersoftheCommonStockshallexclusivelypossessallvotingpowerandeachshareofCommonStockshallhaveonevote.

FIFTH:ThenameandmailingaddressofthesoleincorporatoroftheCorporationareasfollows:

Name

Address JeffreyM.Gallant

GraubardMiller

TheChryslerBuilding

405LexingtonAvenue

NewYork,NewYork10174

SIXTH:TheBoardofDirectorsshallbedividedintothreeclasses:ClassA,ClassBandClassC.Thenumberofdirectorsineachclassshallbeasnearly

equalaspossible.ThedirectorsinClassAshallbeelectedforatermexpiringatthefirstAnnualMeetingofStockholders,thedirectorsinClassBshallbeelectedforatermexpiringatthesecondAnnualMeetingofStockholdersandthedirectorsinClassCshallbeelectedforatermexpiringatthethirdAnnualMeetingofStockholders.CommencingatthefirstAnnualMeetingofStockholders,andateachannualmeetingthereafter,directorselectedtosucceedthosedirectorswhosetermsexpireshallbeelectedforatermofofficetoexpireatthethirdsucceedingannualmeetingofstockholdersaftertheirelection.NotwithstandingandirrespectiveoftheprovisionssetforthinthefirstfoursentencesofthisArticleSixth,ateachannualelectionoftheCorporation’sdirectorscommencingwithandatthe2014AnnualMeetingofStockholders,thesuccessorstotheclassoftheCorporation’sdirectorswhosetermofofficeexpiresatsuchtimeshallbeelectedtoholdofficeforatermofoneyear(andnotthreeyears),andcommencingwithandatthe2016AnnualMeetingofStockholders,thedivisionoftheBoardofDirectorsintothreeclassesasnearlyequalinsizeaspossibleshallterminate,andthereuponandcontinuingindefinitelythereafter,ateachannualelectionofdirectors,alldirectorsoftheCorporationshallbeconstitutedofoneclassandallsuchdirectorsshallbeelectedonanannualbasis.ExceptastheGCLmayotherwiserequire,intheinterimbetweenannualmeetingsofstockholdersorspecialmeetingsofstockholderscalledfortheelectionofdirectorsand/ortheremovalofoneormoredirectorsandthefillingofanyvacancyinthatconnection,newlycreateddirectorshipsandanyvacanciesintheBoardofDirectors,includingunfilledvacanciesresultingfromtheremovalofdirectorsforcause,maybefilledbythevoteofamajorityoftheremainingdirectorstheninoffice,althoughlessthanaquorum(asdefinedintheCorporation’sBylaws),orbythesoleremainingdirector.Alldirectorsshallholdofficeuntiltheexpirationoftheirrespectivetermsofofficeanduntiltheirsuccessorsshallhavebeenelectedandqualified.Adirectorelectedtofillavacancyresultingfromthedeath,resignationorremovalofadirectorshallservefortheremainderofthefulltermofthedirectorwhosedeath,resignationorremovalshallhavecreatedsuchvacancyanduntilhissuccessorshallhavebeenelectedandqualified.

SEVENTH:ThefollowingprovisionsareinsertedforthemanagementofthebusinessandfortheconductoftheaffairsoftheCorporation,andforfurtherdefinition,limitationandregulationofthepowersoftheCorporationandofitsdirectorsandstockholders:

A.Electionofdirectorsneednotbebyballotunlesstheby-lawsoftheCorporationsoprovide.

B.TheBoardofDirectorsshallhavethepower,withouttheassentorvoteofthestockholders,tomake,alter,amend,change,addtoorrepealtheby-lawsoftheCorporationasprovidedintheby-lawsoftheCorporation.

C.Thedirectorsintheirdiscretionmaysubmitanycontractoractforapprovalorratificationatanyannualmeetingofthestockholdersoratanymeetingofthestockholderscalledforthepurposeofconsideringanysuchactorcontract,andanycontractoractthatshallbeapprovedorberatifiedbythevoteoftheholdersofamajorityofthestockoftheCorporationwhichisrepresentedinpersonorbyproxyatsuchmeetingandentitledtovotethereat(providedthatalawfulquorumofstockholdersbethererepresentedinpersonorbyproxy)shallbeasvalidandbindingupontheCorporationanduponallthestockholdersasthoughithadbeenapprovedorratifiedbyeverystockholderoftheCorporation,whetherornotthecontractoractwouldotherwisebeopentolegalattackbecauseofdirectors’interests,orforanyotherreason.

D.Inadditiontothepowersandauthoritieshereinbeforeorbystatuteexpresslyconferreduponthem,thedirectorsareherebyempoweredtoexerciseallsuchpowersanddoallsuchactsandthingsasmaybeexercisedordonebytheCorporation;subject,nevertheless,totheprovisionsofthestatutesofDelaware,ofthisCertificateofIncorporation,andtoanyby-lawsfromtimetotimemadebythestockholders;provided,however,thatnoby-lawsomadeshallinvalidateanyprioractofthedirectorswhichwouldhavebeenvalidifsuchby-lawhadnotbeenmade.

2

EIGHTH:A.AdirectoroftheCorporationshallnotbepersonallyliabletotheCorporationoritsstockholdersformonetarydamagesfor

breachoffiduciarydutyasadirector,exceptforliability(i)foranybreachofthedirector’sdutyofloyaltytotheCorporationoritsstockholders,(ii)foractsoromissionsnotingoodfaithorwhichinvolveintentionalmisconductoraknowingviolationoflaw,(iii)underSection174oftheGCL,or(iv)foranytransactionfromwhichthedirectorderivedanimproperpersonalbenefit.IftheGCLisamendedtoauthorizecorporateactionfurthereliminatingorlimitingthepersonalliabilityofdirectors,thentheliabilityofadirectoroftheCorporationshallbeeliminatedorlimitedtothefullestextentpermittedbytheGCL,assoamended.AnyrepealormodificationofthisparagraphAbythestockholdersoftheCorporationshallnotadverselyaffectanyrightorprotectionofadirectoroftheCorporationwithrespecttoeventsoccurringpriortothetimeofsuchrepealormodification.

B.TheCorporation,tothefullextentpermittedbySection145oftheGCL,asamendedfromtimetotime,shallindemnifyallpersonswhomitmayindemnifypursuantthereto.Expenses(includingattorneys’fees)incurredbyanofficerordirectorindefendinganycivil,criminal,administrative,orinvestigativeaction,suitorproceedingforwhichsuchofficerordirectormaybeentitledtoindemnificationhereundershallbepaidbytheCorporationinadvanceofthefinaldispositionofsuchaction,suitorproceedinguponreceiptofanundertakingbyoronbehalfofsuchdirectororofficertorepaysuchamountifitshallultimatelybedeterminedthatheisnotentitledtobeindemnifiedbytheCorporationasauthorizedhereby.

NINTH:WheneveracompromiseorarrangementisproposedbetweenthisCorporationanditscreditorsoranyclassofthemand/orbetweenthisCorporationanditsstockholdersoranyclassofthem,anycourtofequitablejurisdictionwithintheStateofDelawaremay,ontheapplicationinasummarywayofthisCorporationorofanycreditororstockholderthereoforontheapplicationofanyreceiverorreceiversappointedforthisCorporationunderSection291ofTitle8oftheDelawareCodeorontheapplicationoftrusteesindissolutionorofanyreceiverorreceiversappointedforthisCorporationunderSection279ofTitle8oftheDelawareCodeorderameetingofthecreditorsorclassofcreditors,and/orofthestockholdersorclassofstockholdersofthisCorporation,asthecasemaybe,tobesummonedinsuchmannerasthesaidcourtdirects.Ifamajorityinnumberrepresentingthreefourthsinvalueofthecreditorsorclassofcreditors,and/orofthestockholdersorclassofstockholdersofthisCorporation,asthecasemaybe,agreetoanycompromiseorarrangementandtoanyreorganizationofthisCorporationasaconsequenceofsuchcompromiseorarrangement,thesaidcompromiseorarrangementandthesaidreorganizationshall,ifsanctionedbythecourttowhichthesaidapplicationhasbeenmade,bebindingonallthecreditorsorclassofcreditors,and/oronallthestockholdersorclassofstockholders,ofthisCorporation,asthecasemaybe,andalsoonthisCorporation.

3

Exhibit10.14

THIRDAMENDMENTANDWAIVERTOAMENDEDANDRESTATEDLOANANDSECURITYAGREEMENT

ThisTHIRDAMENDMENTANDWAIVERTOAMENDEDANDRESTATEDLOANANDSECURITYAGREEMENT(this“Amendment”)is

datedasofFebruary17,2017byandamongSUMMERINFANT,INC.andSUMMERINFANT(USA),INC.,as“Borrowers”undertheLoanAgreementreferencedbelow(“Borrowers”),SUMMERINFANTCANADA,LIMITEDandSUMMERINFANTEUROPELIMITED,as“Guarantors”undertheLoanAgreementreferencedbelow(“Guarantors”andtogetherwiththeBorrowers,the“Obligors”),the“Lenders”partytotheLoanAgreementreferencedbelow(“Lenders”),andBANKOFAMERICA,N.A.,initscapacityas“Agent”fortheLendersundertheLoanAgreementreferencedbelow(“Agent”).

WHEREAS,Borrowers,Guarantors,LendersandAgentarepartiestothatcertainAmendedandRestatedLoanandSecurityAgreementdatedasofApril21,2015,asamendedbythatcertainAmendmenttoAmendedandRestatedLoanandSecurityAgreementdatedasofDecember10,2015,andasfurtheramendedbythatcertainSecondAmendmenttoAmendedandRestatedLoanandSecurityAgreementdatedasofMay24,2016(asthesamemaybeamended,restated,supplementedorotherwisemodifiedfromtimetotime,the“LoanAgreement”);

WHEREAS,ObligorshavepreviouslyadvisedAgentthatObligorsrequireadditionaltimetodelivertheprojectionsofBorrowers’consolidatedbalancesheets,resultsofoperations,cashflowandAvailabilityforFiscalYear2017(the“2017Projections”);and

WHEREAS,Borrowers,Guarantors,LendersandAgentdesiretoamendcertainprovisionsoftheLoanAgreement,allasmorefullydescribedherein.

NOW,THEREFORE,inconsiderationoftheforegoingandtheagreementscontainedherein,thepartiesagreethattheLoanAgreementisherebyamendedasfollows:

1.CapitalizedTerms.CapitalizedtermsusedhereinwhicharedefinedintheLoanAgreementhavethesamemeaningshereinastherein,excepttotheextentsuchtermsareamendedhereby.

2.AgreementtoExtendDeliveryDatefor2017Projections.SubjecttothesatisfactionofthetermsandconditionssetforthinthisAmendment,theAgentandLendershereby(a)waivetherequirementspursuanttoclause(f)ofSection10.1.2oftheLoanAgreementthatObligorsdeliverthe2017Projectionsnolaterthan30dayspriortotheendofFiscalYear2016,and(b)agreethatthedatefordeliverybyObligorsofthe2017ProjectionsshallbeextendedtoMarch1,2017.Obligorsherebyexpresslyacknowledgeandagreethat(i)notlaterthanMarch1,2017,theObligorsshallcausetobedeliveredtotheAgentthe2017Projectionsand(ii)intheeventtheAgentfailstoreceivethe2017ProjectionsonorbeforeMarch1,2017,suchfailureshallconstituteanEventofDefaultundertheLoanAgreement.Thepartiesagreethat(a)theforegoingwaiverislimitedsolelytotheObligors’obligationpursuanttoclause(f)ofSection10.1.2oftheLoanAgreementtodeliverthe2017Projectionsnolaterthan30dayspriortotheendofFiscalYear2016and(b)thatnothinghereinshallbeconstruedasawaiverofanyotherprovisionoftheLoanAgreement.

3.AmendmentstoSection1.1oftheLoanAgreement.Section1.1oftheLoanAgreementisherebyamendedasfollows:

(a)Thedefinitionof“Availability”isherebyamendedandrestatedinitsentirety,asfollows:

“Availability:atanytime,(a)thelesserof(i)theaggregateRevolverCommitmentsatsuchtimeand(ii)theRevolverBorrowingBase,atsuchtimeminus(b)theRevolverExposureatsuchtime.Notwithstandingtheforegoing,solelyforpurposesofdeterminingwhetheraCashDominionPeriodisineffect,AvailabilityshallbeincreasedbytheamountoftheFILOReserveineffectatsuchtime.”

(b)Thedefinitionof“AvailabilityReserve”isherebyamendedbydeletingtheword“and”followingtheendofclause(i),relabeling

clause“(j)”asclause“(k)”,andinsertinganewclause(j)asfollows:

“(j)theFILOReserve;and”

(c)Thedefinitionof“EligibleAccount”isherebyamendedbydeletingclause(e)ofsuchdefinitioninitsentiretyandreplacingsuchclausewiththefollowing:

“(e)withrespecttoanyAccountowingbytheAmazonCompanies,whenaggregatedwithotherAccountsowingbyAmazon.com,Inc.,itexceeds35%oftheaggregateEligibleAccounts,provided,however,thatif,atanytime,thecorporatecreditratingofAmazon.com,Inc.fallsbelow“BBB-”(byS&PorFitch)or“Baa3”(byMoody’s),theAgentshallhavetheright,initssolediscretiontodecreasesuchmaximumpercentage(providedfurther,thatonlytheamountofAccountsinexcessofthepercentagesetforthinthisclause(e)(orsuchlowerpercentageasshallbespecifiedbyAgentinaccordancewiththeforegoingproviso)shallbedeemedineligibleunderthisclause(e));”

(d)Thedefinitionof“EligibleAccount”isherebyamendedbydeletingclause(i)ofsuchdefinitioninitsentiretyandreplacingsuch

clausewiththefollowing:

“(i)itisowingbyacreditororsupplier,orisotherwisesubjecttoapotentialoffset,counterclaim,dispute,deduction,discount,recoupment,reserve,defense,chargeback,creditorallowance(butineligibilityshallbelimitedtotheamountthereof),provided,that,theforegoingineligibilityshallnotapplytothePermittedContraAccountsinanamountuptothePermittedContraAmount;”

(e)Thedefinitionof“EBITDA”isherebyamendedbydeletingclause(b)(xii)ofsuchdefinitioninitsentiretyandreplacingsuchclause

withthefollowing:

“(xii)(1)solelywithrespecttothecalculationoftheFixedChargeCoverageRatioandtheLeverageRatiopursuanttoSection10.3.1and10.3.2,respectively,hereof,feesandexpensesofadvisorsandindependentconsultantsretainedbyObligorsinconnectionwiththeFormerManagementLitigation;provided,thattheaggregateamountofsuchfeesandexpensesaddedbacktoEBITDApursuanttothisclause(b)(xii)shallnotexceed(A)$3,500,000intheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingOctober1,2016,(B)$2,500,000intheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingDecember31,2016,and(C)$1,250,000intheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingApril1,2017;and(2)withoutduplicationtotheforegoingclause(1),feesandexpensesofadvisorsandindependentconsultantsretainedbyObligorsandapprovedbyAgentinitsPermittedDiscretion,provided,thattheaggregateamountofsuchfeesandexpensesaddedbacktoEBITDApursuanttothisclause(2)shallnotexceed$250,000duringanyFiscalQuarter;”

2

(f)Thedefinitionof“EBITDA”isherebyamendedbydeletingtheword“and”followingtheendofclause(b)(xvii),relabelingclause“(b)

(xviii)”asclause“(b)(xx)”,andinsertingnewclauses(b)(xviii)and(b)(xix)asfollows:

“(xviii)solelywithrespecttothecalculationoftheFixedChargeCoverageRatioandtheLeverageRatiopursuanttoSection10.3.1and10.3.2,respectively,hereof,chargesincurredinconnectionwithBorrowerexitingcertain“BornFree”productlinesduringthe2016FiscalYear;provided,thattheaggregateamountofsuchchargesaddedbacktoEBITDApursuanttothisclause(b)(xviii)shallnotexceed(A)$795,000intheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingApril1,2017,(B)$445,000intheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingJuly1,2017,(C)$236,000intheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingSeptember30,2017,and(D)zerointheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingDecember30,2017;

(xix)solelywithrespecttothecalculationoftheFixedChargeCoverageRatioandtheLeverageRatiopursuanttoSection10.3.1and10.3.2,respectively,hereof,cashpaymentsofbonuscompensationmadetoofficersand/oremployeesoftheObligors;provided,thattheaggregateamountofsuchbonuspaymentsaddedbacktoEBITDApursuanttothisclause(b)(xix)shallnotexceed$550,000intheaggregatefortheperiodoffourconsecutiveFiscalQuartersendingDecember30,2017;and”

(g)Thedefinitionof“FixedCharges”isherebyamendedandrestatedinitsentirety,asfollows:

“FixedCharges:thesumofinterestexpense(otherthanpayment-in-kind),principalpaymentsmadeonBorrowedMoney(including,withoutlimitation,theTermLoans,butexcludingtheRevolverLoansunlesssuchprincipalpaymentoftheRevolverLoansisaccompaniedbyapermanentreductionintheRevolverCommitmentsandexcludingtheFILOLoansunlesssuchprincipalpaymentoftheFILOLoansisaccompaniedbyapermanentreductionintheFILOCommitments),andDistributionsmade.Notwithstandingtheforegoing,anyprincipalpaymentsmadeinconnectionwiththefirstthree(3)scheduledreductionstotheAggregateFILOCommitmentAmountasprovidedforinthedefinitionof“AggregateFILOCommitmentAmount”inSection1.1shallnotconstitute“FixedCharges”forpurposeshereof.”

(h)ThefollowingnewdefinedtermsareherebyinsertedinSection1.1oftheLoanAgreementintheappropriatealphabeticalorder:

“FILOReserve:$1,250,000,provided,thatsuchamountshallbereducedtozeroatsuchtimeastheprincipalpaymentinconnectionwiththe

scheduledpermanentreductiontotheAggregateFILOCommitmentAmounttooccuronOctober21,2017ismade.

PermittedContraAccounts:anyAccountsowingfromANAGlobalorNorcoPlastics.

PermittedContraAmount:withrespecttoanyPermittedContraAccounts,anaggregateamountequalto$500,000withrespecttoallsuchAccounts,provided,that,thePermittedContraAmountshallbereducedtozeroonJune30,2017.”

3

4.AmendmentstoSection10.1.2(j)oftheLoanAgreement.Section10.1.2(j)oftheLoanAgreementisherebyamendedandrestatedinits

entirety,asfollows:

“(j)Reserved.”

5.AmendmenttoSection10.3.2oftheLoanAgreement.Section10.3.2oftheLoanAgreementisherebyamendedandrestatedinitsentirety,asfollows:

“10.3.2MaximumLeverageRatio.AsoftheendofeachFiscalQuarter,maintainaLeverageRatioofnotgreaterthantheratiosetforthbelowoppositesuchFiscalQuarter:

FourFiscalQuartersEnding

MaximumLeverageRatioDecember31,2016

5.25to1.00April1,2017

5.50to1.00July1,2017

5.50to1.00September30,2017

5.50to1.00December30,2017

5.00to1.00April1,2018andthereafter

3.75to1.00

6.NoDefault;RepresentationsandWarranties,Etc.Obligorsherebyrepresent,warrantandconfirmthat:(a)allrepresentationsandwarrantiesofObligorsintheLoanAgreementandtheotherLoanDocumentsaretrueandcorrectinallmaterialrespects(withoutduplicationofanymaterialityqualifiercontainedtherein)onandasofthedatehereofasifmadeonsuchdate(excepttotheextentthatsuchrepresentationsandwarrantiesexpresslyrelatetoorarestatedtohavebeenmadeasofanearlierdate,inwhichcase,suchrepresentationsandwarrantiesshallbetrueandcorrectinallmaterialrespects(withoutduplicationofanymaterialityqualifiercontainedtherein)asofsuchearlierdate);(b)aftergivingeffecttothisAmendment,noDefaultorEventofDefaulthasoccurredandiscontinuing;and(c)theexecution,deliveryandperformancebyObligorsofthisAmendmentandallotherdocuments,instrumentsandagreementsexecutedanddeliveredinconnectionherewithortherewith(i)havebeendulyauthorizedbyallnecessaryactiononthepartofObligors(includinganynecessaryshareholderconsentsorapprovals),(ii)donotviolate,conflictwithorresultinadefaultunderandwillnotviolateorconflictwithorresultinadefaultunderanyapplicablelaworregulation,anytermorprovisionoftheorganizationaldocumentsofanyObligororanytermorprovisionofanymaterialindenture,agreementorotherinstrumentbindingonanyObligororanyofitsassets,and(iii)donotrequiretheconsentofanyPersonwhichhasnotbeenobtained.

7.RatificationandConfirmation.ObligorsherebyratifyandconfirmallofthetermsandprovisionsoftheLoanAgreementandtheotherLoanDocumentsandagreethatallofsuchtermsandprovisions,asamendedhereby,remaininfullforceandeffect.Withoutlimitingthegeneralityoftheforegoing,Obligorsherebyacknowledgeandconfirmthatallofthe“Obligations”underandasdefinedintheLoanAgreementarevalidandenforceableandaresecuredbyandentitledtothebenefitsoftheLoanAgreementandtheotherLoanDocuments,andObligorsherebyratifyandconfirmthegrantoftheliensandsecurityinterestsintheCollateralinfavorofAgent,forthebenefitofitselfandLenders,pursuanttotheLoanAgreementandtheotherLoanDocuments,assecurityfortheObligations.

8.ConditionstoEffectivenessofAmendment.ThisAmendmentshallbecomeeffectiveasofthedatewhen,andonlywhen,eachofthefollowingconditionsprecedentshallhavebeensatisfiedorwaivedinwritingbyAgent:

(a)AgentshallhavereceivedcounterpartstothisAmendment,dulyexecutedbyAgent,LendersandObligors.

4

(b)BorrowersshallhavepaidtoAgent,fortheaccountofeachLender(includingBankofAmerica,N.A.,initscapacityasaLender)that

executesanddeliverstoAgentby3:00p.m.NewYorkCitytimeonFebruary,2017acounterparttothisAmendment(eachsuchLender,an“ApprovingLender”),anamendmentfeeinanamountequalto12.5basispointsmultipliedbysuchApprovingLender’sCommitment.

(c)BorrowersshallhavepaidallotherfeesandamountsdueandpayabletoAgentanditslegalcounselinconnectionwiththeLoan

Agreement,thisAmendmentandtheotherLoanDocuments,including,(i)thefeespayablepursuanttothatcertainAmendmentFeeLetterdatedasofthedatehereofbetweenBorrowersandAgent,and(ii)totheextentinvoiced,allout-of-pocketexpensesrequiredtobereimbursedorpaidbyBorrowersundertheLoanAgreement.

9.Miscellaneous.

(a)Excepttotheextentspecificallyamendedhereby,theLoanAgreement,theotherLoanDocumentsandallrelateddocumentsshall

remaininfullforceandeffect.

(b)ThisAmendmentmaybeexecutedinanynumberofcounterparts,eachofwhich,whenexecutedanddelivered,shallbeanoriginal,butallcounterpartsshalltogetherconstituteoneinstrument.

(c)BorrowersshallreimburseAgentfor,orpaydirectly,allreasonableout-of-pocketcostsandexpensesofAgent(including,without

limitation,thereasonablefeesandexpensesofAgent’slegalcounsel)inconnectionwiththepreparation,negotiation,executionanddeliveryofthisAmendmentandtheotherLoanDocuments,within30daysofBorrowers’receiptofinvoices(inreasonablysufficientdetail)settingforthsuchcostsandexpenses.

(d)ThisAmendmentshallbegovernedbythelawsoftheStateofNewYorkandshallbebindinguponandinuretothebenefitofthe

partiesheretoandtheirrespectivesuccessorsandassigns.

{Remainderofpageintentionallyleftblank;signaturesbeginonthefollowingpage]

5

INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAmendmentwhichshallbedeemedtobeasealedinstrumentasofthedatefirstabove

written.BORROWERS

SUMMERINFANT,INC.

By: /s/MarkMessnerName: MarkMessnerTitle: CEO

SUMMERINFANT(USA),INC.

By: /s/MarkMessnerName: MarkMessnerTitle: CEO

GUARANTORS

SUMMERINFANTCANADA,LIMITED

By: /s/MarkMessnerName: MarkMessnerTitle: CEO

SUMMERINFANTEUROPELIMITED

By: /s/MarkMessnerName: MarkMessnerTitle: CEO

[SignaturePagetoThirdAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement]

AGENT

BANKOFAMERICA,N.A.,asAgent

By /s/CynthiaG.StannardName:CynthiaG.StannardTitle:SeniorVicePresident

[SignaturePagetoThirdAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement]

LENDER

BANKOFAMERICA,N.A.,asLender

By /s/CynthiaG.StannardName:CynthiaG.StannardTitle:SeniorVicePresident

[SignaturePagetoThirdAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement]

LENDER

CITIZENSBUSINESSCAPITAL,ADIVISIONOFCITIZENSASSETFINANCE,INC.,asLender

By /s/PeterVelleName:PeterVelleTitle:VP

[SignaturePagetoThirdAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement]

LENDER

KEYBANKNATIONALASSOCIATION,asLender

By /s/PeterDrooff,VPName:PeterDrooffTitle:VicePresident

[SignaturePagetoThirdAmendmentandWaivertoAmendedandRestatedLoanandSecurityAgreement]

QuickLinks--Clickheretorapidlynavigatethroughthisdocument

Exhibit23.1

ConsentofIndependentRegisteredPublicAccountingFirm

WeconsenttotheincorporationbyreferenceintheRegistrationStatements(Nos.333-156725;333-191405;333-206682;333-206683;and333-212947)onFormS-8and(Nos.333-164241and333-198315)onFormS-3ofSummerInfant,Inc.andSubsidiariesofourreportdatedFebruary22,2017,relatingtotheconsolidatedfinancialstatementsofSummerInfant,Inc.andSubsidiariesappearinginthisAnnualReportonForm10-KofSummerInfant,Inc.andSubsidiariesfortheyearendedDecember31,2016.

/s/RSMUSLLPRSMUSLLPBoston,MAFebruary22,2017

QuickLinks

Exhibit23.1

ConsentofIndependentRegisteredPublicAccountingFirm

QuickLinks--Clickheretorapidlynavigatethroughthisdocument

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:February22,2017 /s/MARKMESSNER

MarkMessnerChief Executive Officer

QuickLinks

Exhibit31.1

CERTIFICATIONOFCHIEFEXECUTIVEOFFICER

QuickLinks--Clickheretorapidlynavigatethroughthisdocument

Exhibit31.2

CERTIFICATIONOFCHIEFFINANCIALOFFICER

I,WilliamE.Mote,Jr.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:February22,2017 /s/WILLIAME.MOTE,JR.

WilliamE.Mote,Jr.Chief Financial Officer

QuickLinks

Exhibit31.2

CERTIFICATIONOFCHIEFFINANCIALOFFICER

QuickLinks--Clickheretorapidlynavigatethroughthisdocument

Exhibit32.1

SECTION1350CERTIFICATION

InconnectionwiththeAnnualReportonForm10-KofSummerInfant,Inc.(the"Company")fortheyearendedDecember31,2016(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:February22,2017 /s/MARKMESSNER

MarkMessnerChief Executive Officer

QuickLinks

Exhibit32.1

SECTION1350CERTIFICATION

QuickLinks--Clickheretorapidlynavigatethroughthisdocument

Exhibit32.2

SECTION1350CERTIFICATION

InconnectionwiththeAnnualReportonForm10-KofSummerInfant,Inc.(the"Company")fortheyearendedDecember31,2016(the"Report"),asfiledwiththeSecuritiesandExchangeCommissiononthedatehereof,I,WilliamE.Mote,Jr.,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:February22,2017 /s/WILLIAME.MOTE,JR.

WilliamE.Mote,Jr.Chief Financial Officer

QuickLinks

Exhibit32.2

SECTION1350CERTIFICATION