Warrants

9 Months Ended

Sep. 28, 2013

Warrants

Note 8. Warrants

During the nine months ended September 28, 2013, 7,803,564 warrants with an exercise price of $0.21 per share were exercised and the Company received proceeds of $1,638,748 from exercise of these warrants.  These warrants were issued during the year ended January 1, 2011 pursuant to a subscription agreement entered into by the holders of such warrants and the Company on April 22, 2010. There were no warrants exercised during the three months ended September 28, 2013.

In addition, during the three and nine months ended September 28, 2013, 404,047 and 1,718,350 warrants issued during the year 2008 with an exercise price of $3.00 per share expired, respectively.

At September 28, 2013, the following warrants were outstanding and exercisable:

Warrants granted in connection with :	Weighted Average Exercise Prices		Number Outstanding And Exercisable At September 28, 2013		Weighted Average Remaining Contractual Life
2012 Placement agent commission	$	0.85		285,000	10.2 months
2012 Non-employee award	$	0.75		250,000	9.9 months
	$	0.80		535,000	10.0 months