XML 32 R22.htm IDEA: XBRL DOCUMENT
v3.22.1

Shareholders' Equity | 3 Months Ended
--- | ---
Apr. 02, 2022
Stockholders' Equity Note [Abstract] |
Shareholders' Equity | Note 16: Stockholders’ Equity Common Stock: Our Articles of Incorporation authorize 200,000,000 shares of common stock that may be issued from time to time having such rights, powers, preferences and designations as the Board of Directors may determine. During the 13 weeks ended April 2, 2022 and April 3, 2021, no shares of common stock were issued in lieu of professional services. As of April 2, 2022, and January 1, 2022, there were 2,827,410, and 2,827,410 shares, respectively, of common stock issued and outstanding. Equity Offering On January 29, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Purchasers”) for the sale by the Company in a registered direct offering (the “Offering”) of 571,428 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at a purchase price per share of Common Stock of $10.50. The Offering closed on February 2, 2021 with gross proceeds to the Company of approximately $6.0 million before deducting placement agent fees and other offering expenses. The Company is utilizing the net proceeds for general working capital. The Purchase Agreement contains customary representations, warranties and agreements by the Company and the Purchasers and customary indemnification rights and obligations of the parties. A.G.P./Alliance Global Partners acted as the sole placement agent (the “Placement Agent”) for the Company on a “reasonable best efforts” basis in connection with the Offering. The Company entered into a Placement Agency Agreement, dated as of January 29, 2021, by and between the Company and the Placement Agent (the “Placement Agency Agreement”). Pursuant to the Placement Agency Agreement, the Placement Agent was paid a cash fee of 7% of the gross proceeds paid to the Company for the securities or $420,000, and reimbursement for accountable legal expenses incurred by it in connection with the Offering of $35,000. The shares of Common Stock sold in the Offering were offered and sold by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-251645) (the “Registration Statement”), which was initially filed with the Securities and Exchange Commission on December 23, 2020 and was declared effective on December 29, 2020. The representations, warranties and covenants contained in the Purchase Agreement were made solely for the benefit of the parties to the Purchase Agreement. In addition, such representations, warranties, and covenants (i) are intended as a way of allocating the risk between the parties to the Purchase Agreement and not as statements of fact, and (ii) may apply standards of materiality in a way that is different from what may be viewed as material by stockholders of, or other investors in, the Company. Accordingly, the Purchase Agreement incorporated by reference in this filing only to provide investors with information regarding the terms of the transaction, and not to provide investors with any other factual information regarding the Company. Stockholders should not rely on the representations, warranties, and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the Company or any of its subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations and warranties may change after the date of the Purchase Agreement, which subsequent information may or may not be fully reflected in public disclosures. The foregoing descriptions of the Purchase Agreement and the Placement Agency Agreement are not complete and are qualified in their entireties by reference to the full text of the Purchase Agreement and the Placement Agency Agreement, a copy of each of which is filed as Exhibit 10.1 and Exhibit 1.1, respectively, to the Company’s Current Report on Form 8-K as filed on January 29, 2021 and each is incorporated by reference herein. Stock Options: The 2016 Plan, which replaces the 2011 Plan, authorizes the granting of awards in any of the following forms: (i) incentive stock options, (ii) nonqualified stock options, (iii) restricted stock awards, and (iv) restricted stock units, and expires on the earlier of October 28, 2026, or the date that all shares reserved under the 2016 Plan are issued or no longer available. The 2016 Plan provides for the issuance of up to 800,000 shares of common stock pursuant to awards granted under the 2016 Plan. The vesting period is determined by the Board of Directors at the time of the stock option grant. As of April 2, 2022, and January 1, 2022, 90,000 and 90,000 options were outstanding under the 2016 Plan, respectively. The Company's 2011 Plan, which has expired, authorizes the granting of awards in any of the following forms: (i) stock options, (ii) stock appreciation rights, and (iii) other share-based awards, including but not limited to, restricted stock, restricted stock units or performance shares. As of April 2, 2022, and January 1, 2022, 27,500 and 27,500 options, respectively, were outstanding under the 2011 Plan. No additional awards will be granted under the 2011 Plan. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. No options were granted during the 13 weeks ended April 2, 2022. Additional information relating to all outstanding options is as follows:
|  |  |  |  | Weighted Average |  |  | Aggregate |  |  | Weighted Average Remaining |
|  | Options Outstanding |  |  | Exercise Price |  |  | Intrinsic Value |  |  | Contractual Life |
Outstanding at January 2, 2021 |  |  | 113,900 |  |  | $ | 11.97 |  |  | $ | 78 |  |  |  | 7.0 |
Granted |  |  | 38,000 |  |  |  | 8.16 |  |  |  |  |  |  |
Cancelled/expired |  |  | (28,400 | ) |  |  | 9.71 |  |  |  |  |  |  |
Exercised |  |  | (6,000 | ) |  |  | 4.32 |  |  |  |  |  |  |
Outstanding at January 1, 2022 |  |  | 117,500 |  |  | $ | 7.16 |  |  | $ | 21 |  |  |  | 7.0 |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |
Cancelled/expired/forfeited |  |  | — |  |  |  | — |  |  |  |  |  |  |
Balance at April 2, 2022 |  |  | 117,500 |  |  | $ | 7.16 |  |  | $ | — |  |  |  | 6.8 |
Exercisable at January 1, 2022 |  |  | 116,500 |  |  | $ | 7.16 |  |  | $ | — |  |  |  | 6.8 |
The Company recognized approximately $4,000 and $109,000 of share-based compensation expense for the 13 weeks ended April 2, 2022 and April 3, 2021, respectively. As of April 2, 2022, the Company has approximately $1,000 of unrecognized share-based compensation expense associated with stock option awards which the company expects to recognize as share-based compensation expense through Q2 2022. Series A-1 Preferred Stock Shares of Series A-1 Preferred Stock are convertible into the Company’s common shares at a ratio of 1:20. No shares were converted during the 13 weeks ended April 2, 2022. As of April 2, 2022 and January 1, 2022, there were 238,729 and 238,729 shares, respectively, of Series A-1 Preferred Stock outstanding.

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_StockholdersEquityNoteAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration