INCOME TAXES (Tables)

12 Months Ended

Jan. 02, 2015

INCOME TAXES

Schedule of provision (benefit) for income taxes

	Fiscal Year
	2014			2013		2012
Current federal taxes	$	274,000		$	88,000	$	88,000
Current state taxes		164,000			44,000		77,000
Deferred federal taxes (benefit)		(782,000	)		—		(1,830,000	)
Deferred state taxes (benefit)		(646,000	)		—		(418,000	)
	$	(990,000	)	$	132,000	$	(2,083,000	)

Schedule of sources and tax effects of the differences

	2014			2013			2012
Computed "expected" federal income tax expense (benefit)	$	2,864,000		$	940,000		$	(6,590,000	)
Permanent differences		139,000			93,000			93,000
Current and deferred state income tax expense (benefit), net of federal benefit		586,000			(19,000	)		(1,081,000	)
Change in valuation allowances on deferred tax assets		(4,576,000	)		(897,000	)		5,473,000
Other		(3,000	)		15,000			22,000
	$	(990,000	)	$	132,000		$	(2,083,000	)

Schedule of the tax effects of temporary differences that give rise to significant portions of the net deferred tax assets and liabilities

	January 2, 2015			December 27, 2013			December 28, 2012
Current deferred tax assets:
Accounts receivable allowance	$	265,000		$	156,000		$	119,000
Other accrued liabilities		1,482,000			764,000			866,000
		1,747,000			920,000			985,000
Valuation allowance		—			(483,000	)		(570,000	)
Net deferred tax assets		1,747,000			437,000			415,000
Current deferred tax liabilities:
Deferred revenue		(4,878,000	)		(4,125,000	)		(3,867,000	)
		(4,878,000	)		(4,125,000	)		(3,867,000	)
Net current deferred tax liability	$	(3,131,000	)	$	(3,688,000	)	$	(3,452,000	)
Deferred tax assets, net of current portion:
Federal and state net operating losses	$	244,000		$	3,157,000		$	3,370,000
Intangible assets		4,016,000			4,571,000			4,962,000
Other		409,000			64,000			143,000
		4,669,000			7,792,000			8,475,000
Valuation allowance		—			(4,093,000	)		(4,903,000	)
Net deferred tax assets		4,669,000			3,699,000			3,572,000
Deferred tax liabilities, net of current portion:
Fixed assets		(111,000	)		(11,000	)		(67,000	)
Other		—			—			(53,000	)
Net non-current deferred tax assets	$	4,558,000		$	3,688,000		$	3,452,000