Income Taxes (Tables)

12 Months Ended

Jan. 03, 2015

Income Taxes Tables

Reconciliation of income tax expense (benefit)

	2014			2013
Federal income tax expense at statutory rate		(34.0	)%		(34.0	)%
State income tax, net of federal benefit		(5.3	)%		(4.3	)%
Permanent differences		2.7	%		2.6	%
Change in tax rates		(6.1	)%		(3.7	)%
Change in valuation allowance		42.8	%		39.2	%
Other		(0.1	)%		0.2	%
Effective tax rate		0.0	%		0.0	%

Deferred income tax assets and liabilities

	2014			2013
Deferred tax assets:
Net operating loss carryforward	$	11,401,000		$	8,953,000
Stock options and restricted stock		2,934,000			1,945,000
Investment in affiliate related to BluScience transaction		-			1,187,000
Inventory reserve		226,000			100,000
Allowance for doubtful accounts		15,000			3,000
Accrued expenses		125,000			100,000
Deferred revenue		4,000			64,000
Intangibles		26,000			36,000
Deferred rent		81,000			99,000
		14,812,000			12,487,000
Less valuation allowance		14,669,000			12,361,000
		143,000			126,000
Deferred tax liabilities:
Leasehold improvements and equipment		(108,000	)		(100,000	)
Prepaid expenses		(35,000	)		(26,000	)
		(143,000	)		(126,000	)
	$	-		$	-