Income Taxes (Tables)

12 Months Ended

Jan. 02, 2016

Income Tax Disclosure [Abstract]

Income Before (Benefit from) Provision for Income Taxes

Income before (benefit from) provision for income taxes was comprised of the following:

	FY 2015 Year Ended January 2, 2016		FY 2014 Year Ended January 3, 2015		FY 2013 Year Ended December 28, 2013
United States	$	291	$	1,332	$	2,262
Foreign		—		—		—
Total	$	291	$	1,332	$	2,262

(Benefit from) Provision for Income Taxes

The (benefit from) provision for income taxes includes:

	FY 2015 Year Ended January 2, 2016			FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013
Current:
Federal	$	(4	)	$	54		$	11
State		30			16			20
		26			70			31
Deferred:
Federal		(12	)		(7,862	)		—
State		(197	)		(914	)		—
		(209	)		(8,776	)		—
(Benefit from) provision for income taxes	$	(183	)	$	(8,706	)	$	31

Effective Tax Rate Differs from the Statutory Federal Income Tax Rate

Our effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2015 Year Ended January 2, 2016			FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013
Income tax provision at statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal benefit		(70.8	)%		(68.0	)%		(13.3	)%
Permanent differences		12.0	%		(1.1	)%		(17.0	)%
Research and development credits		(34.8	)%		(2.6	)%		0.0	%
Change in valuation allowance		—			(613.5	)%		(2.3	)%
Other		(3.3	)%		(2.4	)%		0.0	%
Effective tax rate		(62.9	)%		(653.6	)%		1.4	%

Tax Effect of Temporary Differences and Carryforwards that Give Rise to Significant Portions of the Net Deferred Tax Assets

The tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets are presented below (in thousands):

	FY 2015 January 2, 2016			FY 2014 January 3, 2015
Net operating losses	$	4,135		$	4,278
Research and development credits		1,820			1,575
Accruals and reserves	$	1,823		$	1,681
Deferred revenue		120			113
Property and equipment		399			439
Intangible assets		792			825
Stock compensation		613			676
Other tax credits		89			94
Net deferred tax asset	$	9,791		$	9,681
Valuation allowance		(806	)		(905	)
Net deferred tax assets	$	8,985		$	8,776

A Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	FY 2015 Year Ended January 2, 2016		FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013
Balance at the beginning of the year	$	861	$	1,027		$	954
Additions based upon tax positions related to the current year		73		53			48
Additions based upon tax positions related to the prior year		—		51			25
Reductions based upon tax positions related to the prior year		3		(270	)		—
Balance at the end of the year	$	937	$	861		$	1,027