BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES: (Tables)
9 Months Ended
Sep. 29, 2012
Computation of Net Loss Per Basic and Diluted
The following table sets forth the computation of net loss per basic and diluted share available to common stockholders:
 
   
For the three months ended
   
For the nine months ended
 
   
Sept 29, 2012
   
Sept 24, 2011
   
Sept 29, 2012
   
Sept 24, 2011
 
Common shares
  $ (2,163,455 )   $ (2,830,663 )   $ (3,317,568 )   $ (4,298,321 )
Convertible preferred Series B-F
    -       -       -       -  
Net loss
  $ (2,163,455 )   $ (2,830,663 )   $ (3,317,568 )   $ (4,298,321 )
                                 
Net loss per share
                               
Basic and diluted
  $ (0.09 )   $ (0.12 )   $ (0.14 )   $ (0.18 )
                                 
Weighted-average shares outstanding:
                               
Common shares - basic
    24,418,284       24,408,594       24,414,432       24,378,188  
Common share equivalents of Series B-F convertible preferred stock
    -       -       -       -  
If - converted weighted-average shares outstanding
    24,418,284       24,408,594       24,414,432       24,378,188  
Common share equivalents of "in the money" stock options
    -       -       -       -  
Common share equivalents of "in the money" warrants
    -       -       -       -  
Diluted weighted-average shares outstanding
    24,418,284       24,408,594       24,414,432       24,378,188  
Stock-Based Compensation Expense
The stock-based compensation expense recognized by the Company was:
 
   
For the three months ended
   
For the nine months ended
 
   
Sept 29, 2012
   
Sept 24, 2011
   
Sept 29, 2012
   
Sept 24, 2011
 
Stock-based compensation expense
  $ 43,670     $ 39,506     $ 142,454     $ 151,576  
Assumptions used To Estimate Weighted Average Fair Value of Options Using Black-Scholes Option-Pricing Model
The weighted average fair value of the options at the date of the grant for options granted during the nine months ended September 29, 2012 and September 24, 2011 was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:
 
   
For the three months ended
 
For the nine months ended
   
Sept 29, 2012
Sept 24, 2011
 
Sept 29, 2012
Sept 24, 2011
Risk-free interest rate
 
N/A
N/A
 
0.98%
0.76%
Expected volatility
 
N/A
N/A
 
118.62%
114.23%
Weighted average expected life (in years)
 
N/A
N/A
 
5.70
5.27
Expected dividends
 
N/A
N/A
 
0.00%
0.00%
Summary of Stock Options
A summary of the Company's stock options is as follows:
 
   
Number of
Stock
Options
   
Weighted
Average
Exercise
Price
   
Price Range
   
Weighted
Average
Remaining
Life (Years)
   
Aggregate
Intrinsic
Value
 
Outstanding - December 31, 2011
    7,542,459       0.41       0.07 - 1.33       4.8       33,300  
Granted
    753,400       0.15       0.14 - 0.20       9.4       53,072  
Expired
    (626,378 )     0.33       0.30 - 1.06       -          
Forfeited
    (15,521 )     0.34       0.30 - 0.41       -          
Exercised
    -       -       - - -       -          
Outstanding - September 29, 2012
    7,653,960       0.39       0.07 - 1.33       5.6       200,684  
                                             
Exercisable - September 29, 2012
    6,444,841       0.43       0.07 - 1.33       5.1       151,228  
                                             
Available for grant - September 29, 2012
    1,797,289                                      
Options Outstanding and Exercisable
The following table summarizes information for options outstanding and exercisable at September 29, 2012:
 
           
Outstanding
   
Exercisable
 
                 
Weighted
                   
           
Number
   
Average
   
Weighted
   
Number
   
Weighted
 
           
of
   
Remaining
   
Average
   
of
   
Average
 
           
Stock
   
Life
   
Exercise
   
Stock
   
Exercise
 
Price Range
   
Options
   
(Years)
   
Price
   
Options
   
Price
 
$ 0.07 -   $ 0.20       2,038,760       7.6     $ 0.12       1,390,236     $ 0.11  
  0.21 -     0.30       2,170,668       7.8       0.28       1,666,359       0.28  
  0.31 -     0.50       1,649,624       4.6       0.42       1,593,338       0.42  
  0.51 -     1.00       1,761,908       1.8       0.81       1,761,908       0.81  
  1.01 -     1.33       33,000       1.2       1.13       33,000       1.13  
Total
              7,653,960       5.6     $ 0.39       6,444,841     $ 0.43  
Estimated useful life of the various categories of property and equipment
A listing of the estimated useful life of the various categories of property and equipment is as follows:

Asset Classification
 
Estimated Useful Life
Leasehold improvements
 
Lesser of term of lease or 10 years
Furniture and fixtures
 
7 years
Computer hardware and software
 
3 years
Equipment
 
5 years
Intangible Assets
Intangible assets as of September 29, 2012 and December 31, 2011 were:
 
   
Sept 29, 2012
   
Dec 31, 2011
 
Non-compete agreements
  $ 2,358,540     $ 2,358,540  
Occupancy valuations
    944,716       944,716  
Other
    157,855       157,855  
                 
Intangible assets
    3,461,111       3,461,111  
                 
Less: accumulated amortization
    (3,074,617 )     (2,834,211 )
                 
Intangible assets, net
  $ 386,494     $ 626,900  
Amortization Expense
Amortization expense for these intangible assets was:
 
   
For the three months ended
   
For the nine months ended
 
   
Sept 29, 2012
   
Sept 24, 2011
   
Sept 29, 2012
   
Sept 24, 2011
 
Amortization expense
  $ 80,135     $ 75,509     $ 240,406     $ 233,914  
Future Amortization Expense Related To Intangible Assets
Future amortization expense related to these intangible assets as of September 29, 2012 is:
 
Year
   
Amount
 
2012
    $ 80,135  
2013
      208,761  
2014
      59,848  
2015
      37,750  
Total
    $ 386,494