Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Loss from Operations Before Provision for Income Taxes

Loss from operations before provision for income taxes was comprised of the following:

	FY 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
United States	$	(5,233	)	$	(6,486	)
Foreign		48			183
Total	$	(5,185	)	$	(6,303	)

Provision for Income Taxes

The provision for income taxes includes:

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Current:
Federal	$	—	$	—
State		20		12
Foreign		18		11
		38		23
Deferred:
Federal		1		1
State		1		2
		2		3
Provision for income taxes	$	40	$	26

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 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Income tax provision at statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		7.6	%		0.9	%
Permanent differences		17.1	%		(2.8	)%
Research and development credits		2.3	%		0.4	%
Change in valuation allowance		(47.4	)%		(23.3	)%
Foreign rate differential		(0.2	)%		0.4	%
Other		(1.2	)%		3.0	%
Effective tax rate		(0.8	)%		(0.4	)%

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 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Net operating losses	$	13,751		$	11,769
Research and development credits		3,582			3,273
Accruals and reserves		2,637			2,382
Deferred revenue		82			81
Property and equipment		361			307
Intangible assets		268			328
Stock compensation		574			658
Net deferred tax asset		21,255			18,798
Valuation allowance		(21,280	)		(18,820	)
Net deferred tax liabilities	$	(25	)	$	(22	)

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 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Balance at the beginning of the year	$	1,220	$	1,192
Additions based upon tax positions related to the current year		88		28
Balance at the end of the year	$	1,308	$	1,220