Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Income Tax Disclosure [Abstract]

Loss from Operations Before Provision for Income Taxes

Loss from operations before provision for income taxes was comprised of the following:

	FY 2020			FY 2019
	Year Ended			Year Ended
	January 2, 2021			December 28, 2019
United States	$	(6,486	)	$	(8,711	)
Foreign		183			(54	)
Total	$	(6,303	)	$	(8,765	)

Provision for Income Taxes

The provision for income taxes includes:

	FY 2020		FY 2019
	Year Ended		Year Ended
	January 2, 2021		December 28, 2019
Current:
Federal	$	—	$	—
State		12		19
Foreign		11		27
		23		46
Deferred:
Federal		1		1
State		2		1
		3		2
Provision for income taxes	$	26	$	48

Effective Tax Rate Differs from the Statutory Federal Income Tax Rate

Our effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2020			FY 2019
	Year Ended			Year Ended
	January 2, 2021			December 28, 2019
Income tax provision at statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		0.9	%		2.8	%
Permanent differences		(2.8	)%		(3.4	)%
Research and development credits		0.4	%		0.4	%
Change in valuation allowance		(23.3	)%		(21.3	)%
Foreign rate differential		0.4	%		(0.3	)%
Other		3.0	%		0.3	%
Effective tax rate		(0.4	)%		(0.5	)%

Tax Effect of Temporary Differences and Carryforwards that Give Rise to Significant Portions of the Net Deferred Tax Assets

The tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets are presented below (in thousands):

	FY 2020			FY 2019
	Year Ended			Year Ended
	January 2, 2021			December 28, 2019
Net operating losses	$	11,769		$	10,426
Research and development credits		3,273			3,175
Accruals and reserves		2,382			2,334
Deferred revenue		81			54
Property and equipment		307			316
Intangible assets		328			370
Stock compensation		658			657
Net deferred tax asset		18,798			17,332
Valuation allowance		(18,820	)		(17,351	)
Net deferred tax liabilities	$	(22	)	$	(19	)

A Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	FY 2020		FY 2019
	Year Ended		Year Ended
	January 2, 2021		December 28, 2019
Balance at the beginning of the year	$	1,192	$	1,155
Additions based upon tax positions related to the current year		28		37
Balance at the end of the year	$	1,220	$	1,192