Note 7—Long-Term Debt

Long-term debt consists of the following (in thousands):


	December 31, 2011			January 1, 2011
Obligations under capital leases (see Note 9)	$	300		$	362
Term Loan I (see Note 6)		875			1,375
Term Loan II, net of issuance cost of $38 (see Note 6)		2,087			—

		3,262			1,737
Less current portion		(2,144	)		(674	)

	$	1,118		$	1,063

The Company has purchased manufacturing and computer equipment through the use of various capital leases that mature at various dates through October 2013 (see Note 9). The interest rates on these leases vary between 6.0% and 6.8%.

As of December 31, 2011, maturities of long-term debt were as follows (in thousands):


Fiscal Year
2012	$	2,182
2013		1,118

Total payments on long-term debt		3,300
Debt discount		(38	)

Long-term debt	$	3,262

Interest expense related to the Company's long-term debt is presented in the following table (in thousands):


	Year Ended
	December 31, 2011		January 1, 2011
Interest expense	$	202	$	56