14. COMMON STOCK REPURCHASE PROGRAM

On June 3, 2015, the Company’s Board of Directors authorized an amendment to the Company’s previously announced stock repurchase program to extend the program through June 30, 2016. The program was initially authorized in February 2014 and authorized the Company to repurchase up to $2 million of Company common stock. Under the program, repurchases may be made by the Company from time to time in the open market or through privately negotiated transactions depending on market conditions, share price and other factors. The stock repurchase program may be modified or discontinued at any time by the Board of Directors. The Company expects to fund repurchases through cash on hand, future cash flow from operations and future borrowings. In order to facilitate repurchases, the Company entered into a Rule 10b5-1 plan, which permits stock repurchases when the Company might otherwise be precluded from doing so under insider trading laws or because of self-imposed trading blackout periods. During the fiscal year ended January 2, 2016, the Company purchased 64,923 shares under the stock repurchase program at an average cost of $2.44 per share. Through January 2, 2016, approximately $1,838,000 remained outstanding under the share repurchase program for future repurchases of Company common stock. There were no share repurchases under the share repurchase program during fiscal year 2014.