Warrants

12 Months Ended

Dec. 31, 2016

FairValueAssumptionsRiskFreeInterestRateStockIssuance

Warrants

The following table summarizes activity of warrants at December 31, 2016, January 2, 2016 and January 3, 2015 and changes during the years then ended:

				Weighted Average
						Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
Outstanding at December 28, 2013		-		$	-		-		-
Warrants Issued		156,341			3.21		4.68
Warrants Exercised		-			-
Warrants Expired		-			-
Outstanding and exercisable at January 3, 2015		156,341			3.21		4.43
Warrants Issued		266,667			4.50
Warrants Exercised		-			-
Warrants Expired		-			-
Outstanding and exercisable at January 2, 2016		423,008			4.02		3.07
Warrants Issued		64,103			4.80
Warrants Exercised		-			-
Warrants Expired		(16,667	)		3.30
Outstanding and exercisable at December 31, 2016		470,444		$	4.15		2.17	$	17,000

The aggregate intrinsic values in the table above are based on the Company’s closing stock price of $3.31 on the last day of business for the year ended December 31, 2016.

The fair values of warrants issued were estimated at the date of issuance using the Black-Scholes based valuation model. The table below outlines the weighted average assumptions for the warrants issued during the years ended December 31, 2016, January 2, 2016 and January 3, 2015.

	2016			2015			2014
Fair value of common stock	$	4.41		$	4.41		$	3.20
Contractual term		3.0 years			3.0 years			4.7 years
Volatility		60	%		62	%		72	%
Risk-free rate		1.16	%		1.27	%		1.62	%
Expected dividends		0	%		0	%		0	%