|
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 |
|
|