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Note 4. EARNINGS (LOSS) PER SHARE
 6 Months Ended
Jun. 28, 2013
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 4.  EARNINGS (LOSS) PER SHARE

The consolidated financial statements include basic and diluted earnings (loss) per share. Diluted per share information is calculated by considering the impact of potential common stock on the weighted average shares outstanding. Potential common stock consists of (a) incremental shares that would be available for issuance upon the assumed exercise of stock options “in the money” based on the average stock price for the respective period and (b) convertible preferred shares, owned by Kohlberg & Co. LLC (see Note 9), accounted for using the “if converted” basis, which assumes their conversion to common stock at a ratio of 16.6:1. The basic and diluted earnings per share (“EPS”) calculations are as follows:

 
 
Three Months Ended
   
Six Months Ended
 
 
 
June 28,
   
June 29,
   
June 28,
   
June 29,
 
 
 
2013
   
2012
   
2013
   
2012
 
 
 
   
   
   
 
Income (loss) from continuing operations
 
$
322
   
$
(467
)
 
$
(1,077
)
   
(1,824
)
Discontinued operations
   
(182
)
   
(574
)
   
387
     
(1,477
)
Net income (loss)
 
$
140
   
$
(1,041
)
 
$
(690
)
 
$
(3,301
)
 
                               
Average common shares outstanding - Basic
   
7,951
     
7,951
     
7,951
     
7,951
 
Dilutive effect of stock options
   
-
     
-
     
-
     
-
 
Dilutive effect of convertible preferred stock
   
18,859
     
-
     
-
     
-
 
Average common shares outstanding - Diluted
   
26,810
     
7,951
     
7,951
     
7,951
 
 
                               
Per share amount - Basic:
                               
Loss from continuing operations
 
$
0.04
   
$
(0.06
)
 
$
(0.14
)
 
$
(0.23
)
Discontinued operations
   
(0.02
)
   
(0.07
)
   
0.05
     
(0.19
)
Net income (loss)
 
$
0.02
   
$
(0.13
)
 
$
(0.09
)
 
$
(0.42
)
 
                               
Per share amount - Diluted:
                               
Loss from continuing operations
 
$
0.01
   
$
(0.06
)
 
$
(0.14
)
 
$
(0.23
)
Discontinued operations
   
(0.01
)
   
(0.07
)
   
0.05
     
(0.19
)
Net income (loss)
 
$
(0.00
)
 
$
(0.13
)
 
$
(0.09
)
 
$
(0.42
)

As of June 28, 2013, no options were in the money and 18,000 options were out of the money. As of June 29, 2012, no options were in the money and 32,000 options were out of the money.  At June 28, 2013 and June 29, 2012 , 1,131,551 convertible preferred shares were outstanding, which are in total convertible into 18,859,183 shares of Katy common stock. Convertible preferred shares were not included in the calculation of diluted earnings (loss) per share for the three months ended June 29, 2012, the six months ended June 28, 2013 and the six months ended June 29, 2012, because of their anti-dilutive impact as a result of the Company’s net loss position.