6. WARRANT LIABILITY (Tables)

9 Months Ended

Sep. 28, 2012

Notes to Financial Statements

Warrants Outstanding

	September 28, 2012		December 30, 2011
Warrants outstanding at beginning of period		12,137,803		14,887,803
Exercised		-		(2,750,000	)
Warrants outstanding at end of period		12,137,803		12,137,803

Detail of Warrants Outstanding

	Number of Warrants		Expiration Date
Exercisable at $1.25 per share		6,312,803	6/20/2013
Exercisable at $1.50 per share		250,000	4/14/2012
Exercisable at $0.08 per share		4,200,000	4/1/2014
Exercisable at between $0.32 and $1.00 per share		1,375,000	4/15/13 to 4/15/15
		12,137,803

Fair value of outstanding warrants using the Black-Scholes pricing model

	September 28, 2012			December 30, 2011
Expected terms (years)		1.51			2.25
Expected volatility		83.20	%		106.20	%
Dividend yield		-			-
Risk-free rate		23.00	%		0.25	%