XML 22 R9.htm IDEA: XBRL DOCUMENT v3.21.1
Note 3 - Net Loss Per Share
12 Months Ended
Jan. 03, 2021
Notes to Financial Statements  
Earnings Per Share [Text Block]

NOTE 3-NET LOSS PER SHARE

 

Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net loss per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants.

 

For 2020, 2019 and 2018, 921,000 shares, 563,000 shares, and 435,000 shares, respectively, associated with equity awards outstanding and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan were not included in the calculation of diluted net loss per share, as they were considered antidilutive due to the net loss the Company experienced during those years. Warrants to purchase up to 386,000 shares were issued in connection with May 29, 2018 stock offering were also not included in the diluted loss per share calculation for the year ended January 3, 2021 and December 29, 2019 as they were also considered anti-dilutive due to the net loss the Company experienced during these periods.

 

On December 6, 2019, the Board of Directors of the Company approved a 1-for-14 reverse stock split of the Company’s outstanding common stock, which became effective on December 23, 2019. The reverse stock split was previously approved by the Company’s shareholders in a special meeting held on November 26, 2019. Accordingly, all share, equity award, and per share amounts have been adjusted to reflect the reverse stock split for all periods presented.