8. STOCK BASED COMPENSATION (Tables)

9 Months Ended

Sep. 28, 2012

Stock Based Compensation Tables

Stock based Compensation

	Number of Shares Under Options			Weighted Average Exercise Price Per Share		Average Fair Value Per Share		Aggregate Intrinsic Value
Outstanding, December 30, 2011		3,092,000		$	0.20	$	0.17	$	993,060
Forfeited		(51,750	)		0.17		0.15		(23,288	)
Expired		(52,250	)		0.17		0.15		(8,880	)
Outstanding, March 30, 2012		2,988,000			0.20		0.17		960,893
Granted		1,875,000			0.41		0.33		656,250
Forfeited		(72,750	)		0.17		0.15		(25,463	)
Expired		(524,250	)		0.31		0.22		(19,365	)
Outstanding, June 29, 2012		4,266,000			0.28		0.22		1,572,315
Forfeited		(4,500	)		0.17		0.15		(1,170	)
Expired		(4,500	)		0.17		0.15		(405	)
Outstanding, September 28, 2012		4,257,000			0.28		0.23	$	1,570,740

Fair Value Assumption

	September 28, 2012
Expected term (years)		5.0
Expected volatility		116.9	%
Dividend yield		0.0	%
Risk-free rate		0.79	%

Nonvested stock options outstanding

	Number of Options			Weighted Average Exercise Price per Share		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Nonvested, December 30, 2011		1,652,750		$	0.17	$	0.15	$	738,783
Forfeited		(51,750	)		0.17		0.15		(23,288	)
Nonvested, March 30, 2012		1,601,000			0.17		0.15		715,495
Granted		1,875,000			0.41		0.33		656,250
Vested		(510,250	)		0.17		0.15		(89,345	)
Forfeited		(72,750	)		0.17		0.15		(13,095	)
Nonvested, June 29, 2012		2,893,000			0.33		0.27		1,269,305
Forfeited		(4,500	)		0.17		0.15		(405	)
Nonvested, September 28, 2012		2,888,500			0.33		0.27	$	1,268,900

Intrinsic value

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value
Outstanding		4,257,000		0.28		3.45		860,175
Exercisable		1,368,500		0.18		2.48		109,165