Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Income Taxes Tables

Provision for income tax

	2017		2016		2015
Current
Federal	$	-	$	-	$	-
State		-		-		4,527
Deferred (net of valuation allowance)
Federal		-		-		-
State		-		-		-
Income tax provision	$	-	$	-	$	4,527

Reconciliation of income tax expense (benefit)

	2017			2016			2015
Federal income tax expense at statutory rate		(34.0	)%		(34.0	)%		(34.0	)%
State income tax, net of federal benefit		(5.3	)%		(5.3	)%		(5.1	)%
Permanent differences		7.6	%		8.4	%		5.7	%
Change in tax rates		0	%		(0.3	)%		0.7	%
Changes of state net operating losses		1.3	%		1.8	%		17.4	%
Change in stock options and restricted stock		(1.3	)%		11.8	%		0.0	%
Change in valuation allowance		(23.1	)%		16.4	%		13.7	%
Remeasurement of deferred taxes asset / liability		53.4	%		-			-
Other		1.4	%		1.2	%		1.8	%
Effective tax rate		0.0	%		0.0	%		0.2	%

Deferred income tax assets and liabilities

	2017			2016
Deferred tax assets:
Net operating loss carryforward	$	9,963,000		$	11,023,000
Capital loss carryforward		-			811,000
Stock options and restricted stock		1,873,000			2,694,000
Inventory reserve		143,000			195,000
Allowance for doubtful accounts		183,000			425,000
Accrued expenses		674,000			487,000
Deferred revenue		19,000			13,000
Intangibles		27,000			29,000
Deferred rent		166,000			252,000
		13,048,000			15,929,000
Less valuation allowance		(12,904,000	)		(15,530,000	)
		144,000			399,000
Deferred tax liabilities:
Leasehold improvements and equipment		(9,000	)		(282,000	)
Prepaid expenses		(135,000	)		(117,000	)
		(144,000	)		(399,000	)
	$	-		$	-