Commitments

12 Months Ended

Dec. 29, 2012

Commitments and Contingencies Disclosure [Abstract]

Note 12. Commitments

Lease

The Company leases its office and research facilities in California and Colorado under operating lease agreements that expire at various dates from August 2013 through April 2016. Monthly lease payments range from $1,114 per month to $21,480 per month, and minimum lease payments escalate during the terms of the leases. Generally accepted accounting principles require total minimum lease payments to be recognized as rent expense on a straight-line basis over the term of the lease. The excess of such expense over amounts required to be paid under the lease agreement is carried as a liability on the Company’s consolidated balance sheet.

Minimum future rental payments under all of the leases are as follows:

Fiscal years ending:
2013	$	500,469
2014		270,800
2015		278,925
2016		93,886
	$	1,144,080

Rent expense was $512,110, and $467,675 for the years ended December 29, 2012 and December 31, 2011, respectively.

Royalty

The Company has six royalty agreements related to certain products the Company offers to its customers. These agreements expire at various dates from December 31, 2019 through May 11, 2031. Yearly minimum royalty payments including license maintenance fees range from $1,000 per year to $35,000 per year, however these minimum payments escalate each year with a maximum of $75,000 per year. In addition, the Company is required to pay a range of 2% to 5% of sales related to the licensed products under these agreements. Total royalty expense including license maintenance fees from continuing operations for the year ended December 29, 2012 and December 31, 2011 was $74,804 and $37,049, respectively under these agreements. Minimum royalties including license maintenance fees for the next five years are as follows:

Fiscal years ending:
2013	$	83,306
2014		100,315
2015		102,031
2016		116,333
2017		130,572
	$	532,557