INCOME (LOSS) PER SHARE

6 Months Ended

Jul. 03, 2011

Income (Loss) Per Share [Abstract]

INCOME (LOSS) PER SHARE

NOTE I — INCOME (LOSS) PER SHARE

The Company accounts for income (loss) per common share under the provisions of ASC 260, Earnings Per Share, whichrequires a dual presentation of basic and diluted income (loss) per common share. Basic income (loss) per common share excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of commonshares outstanding for the year. Diluted income (loss) per common share is computed assuming the conversion of common stock equivalents, when dilutive.

For the three and six months ended July 3, 2011, the Company’s common stock equivalents, consisting of warrants to purchase 308,197 shares of common stock and options to purchase 58,800 sharesof common stock issued to employees under the 2005 Stock Option Plan, were not included in computing diluted loss per share because the effect of including the warrants and options would have been anti-dilutive.

For the three months ended July 4, 2010, the Company’s common stock equivalents, consisting of warrants to purchase 308,526shares of common stock and options to purchase 23,600 shares of common stock issued to employees under the 2005 Stock Option Plan were not included in computing diluted loss per share because the effect of including the warrants and options wouldhave been anti-dilutive. For the six months ended July 4, 2010, the Company’s common stock equivalents, consisting of a weighted average of 220,541 potential shares of common stock related to convertible subordinated debt securities,warrants to purchase a weighted average of 308,364 shares of common stock and options to purchase a weighted average 31,930 shares of common stock issued to employees under the 2005 Stock Option Plan, were not included in computing diluted loss pershare because the effect of including the warrants and options would have been anti-dilutive.