|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
|
9 Months Ended |
|
Sep. 29, 2012
|
Sep. 24, 2011
|
| Operating activities: |
|
|
| Net loss |
$ (3,317,568) |
$ (4,298,321) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation |
757,444 |
898,672 |
| Amortization |
268,595 |
297,858 |
| Deferred rent |
78,582 |
(12,931) |
| Non-cash stock-based compensation expense |
142,454 |
151,576 |
| Loss on disposal of assets |
3,103 |
34,432 |
| Non-cash warrant expense |
(64) |
(17,173) |
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
422,101 |
(303,347) |
| Inventories |
(4,955,039) |
(6,536,039) |
| Prepaid expenses and other assets |
(426,264) |
(243,256) |
| Accounts payable and book overdrafts |
5,484,532 |
5,972,673 |
| Accrued expenses and other liabilities |
445,951 |
221,189 |
| Net cash used in operating activities |
(1,096,173) |
(3,834,667) |
| Investing activity: |
|
|
| Purchase of property and equipment |
(951,535) |
(839,308) |
| Net cash used in investing activity |
(951,535) |
(839,308) |
| Financing activities: |
|
|
| Net borrowings under line of credit |
1,810,491 |
4,649,337 |
| Decrease in restricted cash |
250,830 |
19,455 |
| Principal payments on capital lease obligations |
(4,613) |
(6,920) |
| Proceeds from exercise of stock options |
|
24,103 |
| Net cash provided by financing activities |
2,056,708 |
4,685,975 |
| Net increase in cash |
9,000 |
12,000 |
| Cash beginning of period |
63,650 |
62,650 |
| Cash end of period |
72,650 |
74,650 |
| Supplemental disclosure of non-cash financing activities: |
|
|
| Conversion of Series B convertible preferred stock to common stock |
11,160 |
12,053 |
| Disposal of property and equipment |
$ 66,305 |
$ 188,758 |