DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 29, 2012

Description Of Business and Summary Of Significant Accounting Policies [Abstract]

Fiscal Year

Fiscal Year - The Company operates on a fiscal year ending on the Saturday closest to December 31st.  Fiscal years for the financial statements included herein are the fifty-two week fiscal periods ended on December 29, 2012 and December 31, 2011, respectively.

Estimates and Uncertainties

Estimates and Uncertainties - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include allowance for doubtful accounts, sales promotion accruals, inventory reserves and reserves for uncertain tax positions.  Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition - Revenue is recognized when goods are shipped from production facilities or outside warehouses to customers. Revenue is recognized when the following four criteria under ASC 605  have been met: the product has been shipped and the Company has no significant remaining obligations; persuasive evidence of an arrangement exists; the price to the buyer is fixed or determinable; and collection is probable.  Deductions from sales for promotional programs, manufacturers’ charge-backs, co-operative advertising programs and other programs are recorded as reductions of revenues and are provided for at the time of initial sale of product. Freight charged to customers is included in revenues, and has generally been insignificant.

Concentration of Credit/Sales Risk

Concentration of Credit/Sales Risk - Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and unsecured trade receivables.  During the year, the Company’s cash balance at its financial institution exceeded the FDIC limit of $250.

The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral.  Management feels that credit risk beyond the established allowances at December 29, 2012 is limited.

During the fiscal years ended December 29, 2012 and December 31, 2011, the Company derived approximately 86% and 87%, respectively, of its net sales domestically.  The remaining sales in both periods were exports to foreign countries.  The accounts receivable balance of one customer represented approximately 11% of total accounts receivable at December 29, 2012 and 11% of total accounts receivable at December 31, 2011. In addition, a significant portion of the Company’s sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 45% and 35% of the Company’s net sales for the fiscal years ended December 29, 2012 and December 31, 2011.

Accounts Receivable

Accounts Receivable - The majority of the Company’s accounts receivables are due from distributors (domestic and international) and retailers.  Credit is extended based on evaluation of a customers’ financial condition and, generally, collateral is not required. Accounts receivable are most often due within 30 to 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the bad debt expense. The Company does not accrue interest on accounts receivable past due.

Deferred Revenue and Deferred Costs

Deferred Revenue and Deferred Costs - Deferred revenue represents amounts from sales of the Company’s product that have been billed, but for which the transactions have not met its revenue recognition criteria.  The cost of the related product has been recorded as deferred costs on its balance sheet.

Cash and Equivalents

Cash and Equivalents - The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.

Inventories

Inventories - Inventory is stated at lower of cost or market determined by first in first out (FIFO) method.  Inventories in excess of future demand are written down and charged to the provision for inventories.  At the point of which loss is recognized, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in the newly established cost basis.

The Company purchased approximately 26% and 28% of its finished products from one supplier and 30% and 24% of its finished products from another supplier during the periods ended December 29, 2012 and December 31, 2011, respectively.

Fixed Assets

Fixed Assets - Fixed assets consist of leasehold improvements.  Amortization is provided by charges to income using the straight-line method over the useful life of ten years.

Income Taxes

Income Taxes - Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  A valuation allowance is recorded if there is uncertainty as to the realization of deferred tax assets. The Company will recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes.

Net Income Per Share

Net Income Per Share - Basic earnings per common share has been computed by dividing net income by the weighted average number of common shares outstanding.  Diluted earnings per share has been computed by dividing net income by the weighted average number of common shares outstanding, including the dilutive effects of stock options.  For the fiscal years ended December 29, 2012 and December 31, 2011, stock equivalents of 0 shares and 41,000 shares, respectively were excluded from diluted earnings per share calculations since the effect was anti-dilutive due to overall net loss as of December 29, 2012 and because the strike price was greater than the quoted market value as of December 31, 2011.

	Fiscal Year Ended December 29, 2012			Fiscal Year Ended December 31, 2011
Net (loss) income, numerator, basic and diluted computation	$	(824	)	$	43
Weighted average shares - denominator basic computation		5,154			5,176
Effect of dilutive stock options		—			—
Weighted average shares, as adjusted - denominator diluted computation		5,154			5,176
Net (loss) income per common share:
Basic	$	(0.16	)	$	0.01
Diluted	$	(0.16	)	$	0.01

Stock Based Compensation

Stock Based Compensation  -The Company follows the provisions of ASC 718 Share-Based Payment.  The Company uses the Black-Scholes option pricing model to measure the estimated fair value of the options under ASC 718. The compensation expense, less forfeitures, is being recognized over the service period on a straight-line basis.

Fair Value of Financial Instruments

Fair Value of Financial Instruments -  The fair value of financial instruments, which primarily consist of cash and equivalents, accounts receivable and accounts payable are stated at their carrying values.  The carrying amounts approximate fair value because of the short-term nature of those instruments.

Freight Costs

Freight Costs - Freight costs to ship inventory to customers and to outside warehouses amounted to $989 and $1,033 during the fiscal years ended December 29, 2012  and December 31, 2011, respectively.  Such costs are included in costs of goods sold.

Advertising Costs

Advertising Costs - The Company expenses advertising costs as they are incurred.  Advertising expenses amounted to $279 and $244 during the fiscal years ended December 29, 2012  and December 31, 2011, respectively.

Product Development Costs

Product Development Costs  - Costs of new product development and product redesign are charged to expense as incurred. Product development costs amounted to $643 and $546 during the fiscal years ended December 29, 2012  and December 31, 2011, respectively.

Recent Accounting Pronouncements

Recent Accounting Pronouncements -Accounting Standards Updates that became effective during fiscal 2012 or after are not expected to have a significant effect on the Company’s financial position or results of operations.