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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2022
Income Tax Disclosure [Abstract] |
Schedule of Benefit of Income Taxes | For fiscal years ended January 1, 2022, and January 2, 2021, the Company recorded an income tax provision of approximately $273,000, and an income tax benefit of approximately $427,000, respectively, which consisted of the following (in $000's):
|  | Fiscal Years Ended |
|  | January 1, 2022 |  |  | January 2, 2021 |
Current tax expense: |  |  |  |  |  |
State |  | $ | (75 | ) |  | $ | (46 | )
Federal |  |  | — |  |  |  | 203 |
Current tax expense |  |  | (75 | ) |  |  | 157 |
Deferred tax benefit - domestic |  |  | (198 | ) |  |  | 270 |
Total benefit (provision) of income taxes |  | $ | (273 | ) |  | $ | 427 |
Schedule of Reconciliation of Our Benefit of Income Taxes with the Federal Statutory Tax Rate | A reconciliation of the Company's income tax benefit (provision) with the federal statutory tax rate for the fiscal years ended January 1, 2022, and January 2, 2021, respectively, is shown below:
|  | Fiscal Years Ended |
|  | January 1, 2022 |  |  | January 2, 2021 |
U.S statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
State tax rate |  |  | 4.3 | % |  |  | 7.5 | %
Foreign rate differential |  |  | 0.2 | % |  |  | 0.4 | %
Permanent differences |  |  | 2.3 | % |  |  | -0.1 | %
Change in tax rates |  |  | 0.2 | % |  |  | -0.8 | %
Benefit from CARES Act carryback claim |  |  | -1.2 | % |  |  | 0.8 | %
Change in valuation allowance |  |  | -27.5 | % |  |  | -24.5 | %
Other |  |  | -0.9 | % |  |  | 0.6 | %
|  |  | -1.6 | % |  |  | 4.9 | %
Schedule of Loss Before Benefit of Income Taxes | Loss before benefit (provision) of income taxes was derived from the following sources for fiscal years January 1, 2022 and January 2, 2021, respectively, as shown below (in $000's):
|  | Fiscal Years Ended |
|  | January 1, 2022 |  |  | January 2, 2021 |
United States |  | $ | (16,074 | ) |  | $ | (8,270 | )
Canada |  |  | (540 | ) |  |  | (655 | )
Total |  | $ | (16,614 | ) |  | $ | (8,925 | )
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred tax assets (liabilities) as of January 1, 2022 and January 2, 2021, respectively, are as follows (in $000's):
|  | January 1, 2022 |  |  | January 2, 2021 |
Deferred tax assets (liabilities): |  |  |  |  |  |
Allowance for bad debts |  | $ | 795 |  |  | $ | 823 |
Accrued expenses |  |  | 2,118 |  |  |  | 1,769 |
Accrued compensation |  |  | 91 |  |  |  | 76 |
Prepaid expenses |  |  | (375 | ) |  |  | (304 | )
Net operating loss |  |  | 4,440 |  |  |  | 3,477 |
Lease liability |  |  | 25 |  |  |  | 35 |
Tax credits |  |  | 92 |  |  |  | 290 |
Share-based compensation |  |  | 219 |  |  |  | 176 |
Intangibles |  |  | (5 | ) |  |  | (3,717 | )
Property and equipment |  |  | (407 | ) |  |  | (214 | )
Unrealized losses (gains) |  |  | 148 |  |  |  | 140 |
Section 163(j) interest |  |  | 361 |  |  |  | 387 |
|  |  | 7,502 |  |  |  | 2,938 |
Less: valuation allowance |  |  | (7,502 | ) |  |  | (2,938 | )
Net deferred tax assets (liabilities) |  | $ | — |  |  | $ | — |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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