Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Jan. 03, 2015	Mar. 12, 2015	Jun. 27, 2014
Document And Entity Information [Abstract]
Entity Registrant Name	IRIDEX CORP
Entity Central Index Key	0001006045
Document Type	10-K
Document Period End Date	Jan. 03, 2015
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--01-03
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 49,005,071
Entity Common Stock, Shares Outstanding		9,858,612

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Current assets:
Cash and cash equivalents	$ 13,303	$ 13,444
Accounts receivable, net of allowance for doubtful accounts of $223 in 2014 and $207 in 2013	8,337	7,345
Inventories	9,119	10,605
Prepaid expenses and other current assets	510	576
Deferred income taxes - current	1,625
Total current assets	32,894	31,970
Property and equipment, net	735	543
Other intangible assets, net	284	328
Goodwill	533	533
Deferred income taxes - long term	7,151
Other long-term assets	221	303
Total assets	41,818	33,677
Current liabilities:
Accounts payable	1,758	2,278
Accrued compensation	1,863	1,891
Accrued expenses	1,770	1,592
Accrued warranty	469	468
Deferred revenue	1,179	1,133
Total current liabilities	7,039	7,362
Long-term liabilities:
Other long-term liabilities	1,043	461
Total liabilities	8,082	7,823
Commitments and contingencies (Note 9)
Stockholders’ equity:
Convertible preferred stock, $0.01 par value; 2,000,000 shares authorized; none issued
Common stock, $0.01 par value: Authorized: 30,000,000 shares; Issued and outstanding: 9,786,695 shares in 2014 and 9,899,483 shares in 2013	108	104
Additional paid-in capital	38,511	40,671
Accumulated deficit	(4,883)	(14,921)
Total stockholders’ equity	33,736	25,854
Total liabilities and stockholders’ equity	$ 41,818	$ 33,677

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 223	$ 207
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	2,000,000	2,000,000
Convertible preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	9,786,695	9,899,483
Common stock, shares outstanding	9,786,695	9,899,483

Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Income Statement [Abstract]
Total revenues	$ 42,814	$ 38,273	$ 33,859
Cost of revenues	21,409	19,686	17,513
Gross profit	21,405	18,587	16,346
Operating expenses:
Research and development	4,629	3,684	4,385
Sales and marketing	8,155	7,720	7,895
General and administrative	6,034	5,023	4,926
Proceeds from demutualization of insurance carrier		(473)
Total operating expenses	18,818	15,954	17,206
Income (loss) from continuing operations	2,587	2,633	(860)
Legal settlement			800
Interest and other expense, net	(1,255)	(371)	(210)
Income (loss) from continuing operations before (benefit from) provision for income taxes	1,332	2,262	(270)
(Benefit from) provision for income taxes	(8,706)	31	(100)
Income (loss) from continuing operations, net of tax	10,038	2,231	(170)
Income (loss) from discontinued operations, net of tax			(264)
Gain on sale of discontinued operations, net of tax			1,872
Income from discontinued operations, net of tax			1,608
Net income	$ 10,038	$ 2,231	$ 1,438
Basic -
Continuing operations	$ 1.01	$ 0.24	$ (0.02)
Discontinued operations	$ 0.00	$ 0.00	$ 0.18
Net income	$ 1.01	$ 0.24	$ 0.16
Diluted -
Continuing operations	$ 0.97	$ 0.22	$ (0.02)
Discontinued operations	$ 0.00	$ 0.00	$ 0.18
Net income	$ 0.97	$ 0.22	$ 0.16
Weighted average shares used in computing net income per common share - basic	9,892	9,245	8,935
Weighted average shares used in computing net income per common share - diluted	10,357	10,104	8,935

Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 10,038	$ 2,231	$ 1,438
Other comprehensive income, net of tax:
Recognition of accumulated foreign currency translation loss			35
Other comprehensive income, net of tax			35
Comprehensive income	$ 10,038	$ 2,231	$ 1,473

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Consolidated Statements of Stockholders' Equity (USD $) In Thousands, except Share data	Total	Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balance, value at Dec. 31, 2011	$ 22,426	$ 5	$ 92	$ 42,032	$ (1,078)	$ (35)	$ (18,590)
Beginning Balance, shares at Dec. 31, 2011		500,000	8,917,824
Issuance of common stock under stock option plan	445		2	443
Issuance of common stock under stock option plan, shares	174,631		174,631
Employee stock-based compensation expense	396			396
Release of restricted stock and escrow shares			36,815
Stock repurchase	(734)				(734)
Stock repurchase, shares			(188,799)
Stock repurchased from tender offer, value	(2,101)			(2,101)
Stock repurchased from tender offer, share			(487,500)
Retirement of treasury stock				(1,812)	1,812
Foreign currency translation adjustments	35					35
Net income	1,438						1,438
Ending Balance, value at Dec. 29, 2012	21,905	5	94	38,958			(17,152)
Ending Balance, shares at Dec. 29, 2012		500,000	8,452,971
Issuance of common stock under stock option plan	1,495		5	1,490
Issuance of common stock under stock option plan, shares	493,622		493,622
Employee stock-based compensation expense	689			689
Release of restricted stock and escrow shares			27,915
Stock repurchase	(426)			(426)
Stock repurchase, shares			(75,025)
Stock repurchased from tender offer, value	(40)			(40)
Preferred stock conversion to common stock		(5)	5
Preferred stock conversion to common stock, share		(500,000)	1,000,000
Net income	2,231						2,231
Ending Balance, value at Dec. 28, 2013	25,854		104	40,671			(14,921)
Ending Balance, shares at Dec. 28, 2013			9,899,483
Issuance of common stock under stock option plan	1,501		4	1,497
Issuance of common stock under stock option plan, shares	399,390		399,390
Employee stock-based compensation expense	972			972
Excess tax benefits from stock-based awards	36			36
Release of restricted stock and escrow shares			50,262
Stock repurchase	(4,665)			(4,665)
Stock repurchase, shares			(562,440)
Net income	10,038						10,038
Ending Balance, value at Jan. 03, 2015	$ 33,736		$ 108	$ 38,511			$ (4,883)
Ending Balance, shares at Jan. 03, 2015			9,786,695

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Operating activities:
Net income	$ 10,038	$ 2,231	$ 1,438
Less income from discontinued operations			1,608
Income (loss) from continuing operations	10,038	2,231	(170)
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization	420	490	427
Change in fair value of earn-out liability	1,258	355	215
Stock-based compensation cost recognized	972	689	388
Deferred income taxes	(8,776)
Excess tax benefits from stock-based awards	(36)
Provision for doubtful accounts	86	61	33
Changes in operating assets and liabilities, net of assets and liabilities acquired:
Accounts receivable	(1,078)	(1,926)	38
Inventories	1,486	(2,514)	(1,376)
Prepaid expenses and other current assets	66	553	(665)
Other long-term assets	82	(16)	(88)
Accounts payable	(520)	173	525
Accrued compensation	(28)	328	383
Accrued expenses	17	171	(756)
Accrued warranty	1	15	(103)
Deferred revenue	46	129	(10)
Other long-term liabilities	(20)	28	21
Net cash provided (used in) by operating activities	4,014	767	(1,138)
Investing activities:
Acquisition of property and equipment	(568)	(380)	(394)
Payment on earn-out liability	(459)	(383)	(328)
Net cash used in investing activities	(1,027)	(763)	(722)
Cash flows from financing activities:
Proceeds from stock option exercises	1,501	1,495	445
Excess tax benefits from stock-based awards	36
Repurchase of common stock	(4,665)	(426)	(2,835)
Payment of legal costs in connection with tender offer		(40)
Net cash (used in) provided by financing activities	(3,128)	1,029	(2,390)
Net cash provided by operating activities from discontinued operations			695
Net cash provided by investing activities from discontinued operations		510	4,632
Effect of foreign exchange rate changes from discontinued operations			35
Net cash provided by discontinued operations		510	5,362
Net (decrease) increase in cash and cash equivalents	(141)	1,543	1,112
Cash and cash equivalents, beginning of year	13,444	11,901	10,789
Cash and cash equivalents, end of year	13,303	13,444	11,901
Cash paid (received) during the year for:
Income taxes	35	(536)	(145)
Supplemental disclosure of non-cash activities:
Conversion of preferred stock to common stock		$ 5

Organization	12 Months Ended
Organization	Jan. 03, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization	1. Organization Description of Business. IRIDEX Corporation (“IRIDEX”, the “Company”, “we”, “us”, or “our”) is a leading worldwide provider of therapeutic based laser systems, delivery devices and consumable instrumentation used to treat sight-threatening eye diseases in ophthalmology. Our ophthalmology products are sold in the United States (“U.S.”) predominantly through a direct sales force, and an independent sales force, and internationally through approximately 70 independent distributors in over 100 countries. In February 2012, we completed the sale of our aesthetics business to Cutera, Inc. and reclassified the aesthetics business segment as discontinued operations.

Summary of Significant Accounting Policies

12 Months Ended

Jan. 03, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Financial Statement Presentation.

The consolidated financial statements include the accounts of IRIDEX and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Our fiscal year always ends on the Saturday closest to December 31. Fiscal 2014 ended on January 3, 2015 (“FY 2014”), fiscal 2013 ended on December 28, 2013 (“FY 2013”), and fiscal 2012 ended on December 29, 2012 (“FY 2012”). Consequently, fiscal year 2014 included 53 weeks of operations while fiscal years 2013 and 2012 included only 52 weeks.

Reclassifications.

In February 2012, we completed the sale of our aesthetics business to Cutera, Inc. In accordance with accounting principles generally accepted in the U.S. (“GAAP”), we have recast our financial information to show the results from our ophthalmology business as continuing operations and the results from our aesthetics business as discontinued operations.

Use of Estimates.

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results.

Discontinued Operations.

Discontinued operations are accounted for and presented in accordance with Accounting Standards Codification (“ASC”) 360, Impairment or Disposal of Long-Lived Assets, (“ASC 360”). When a qualifying component of the Company is disposed of or has been classified as held for sale, the operating results of that component are removed from continuing operations for all periods presented and displayed as discontinued operations if: (a) elimination of the component’s operations and cash flows from the Company’s ongoing operations has occurred (or will occur) and (b) significant continuing involvement by the Company in the component’s operations does not exist after the disposal transaction.

On December 30, 2011, we entered into an agreement to sell our aesthetics business to Cutera, Inc. The operating results of our aesthetics business were therefore classified as discontinued operations, and the associated assets and liabilities were classified as discontinued operations for all periods presented under the requirements of ASC 360. The sale of the aesthetics business was completed on February 2, 2012.

	FY 2014 Year Ended		FY 2013 Year Ended		FY 2012 Year Ended
(in thousands)	January 3, 2015		December 28, 2013		December 29, 2012
Total revenues	$	—	$	—	$	1,630
Income (loss) from discontinued operations	$	—	$	—	$	(325	)
Gain on sales of aesthetics business	$	—	$	—	$	1,149
Income from discontinued operations, before income taxes	$	—	$	—	$	824
Income tax (benefit) expense	$	—	$	—	$	(784	)
Income from discontinued operations, net of tax	$	—	$	—	$	1,608

Current assets of discontinued operations as of December 29, 2012 comprised of restricted cash in the amount of $510 thousand. In accordance with the terms of the sale of the aesthetics segment to Cutera, Inc., 10% of the total purchase price was deposited and held in an escrow account for a period of twelve months from the date of closing and was available to resolve certain claims by Cutera, Inc., if any, against which the Company had indemnified Cutera, Inc. There had been no claims made by Cutera, Inc. and in May 2013, the cash held in the escrow account was released to the Company.

Cash and Cash Equivalents.

We consider all highly liquid debt instruments with insignificant interest rate risk and an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of cash deposits in money market funds that are available for withdrawal without restriction.

Sales Returns Allowance and Allowance for Doubtful Accounts.

The Company estimates future product returns related to current period product revenue. We analyze historical returns, and changes in customer demand and acceptance of our products when evaluating the adequacy of the sales returns allowance. Significant management judgment and estimates must be made and used in connection with establishing the sales returns allowance in any accounting period. Material differences may result in the amount and timing of our revenue for any period if management made different judgments or utilized different estimates. Our provision for sales returns is recorded net of the associated costs. The balance for the provision of sales returns was $47 thousand and $33 thousand as of January 3, 2015 and December 28, 2013, respectively, and is recorded within the deferred revenue accounts in the consolidated balance sheets.

Similarly management must make estimates regarding the uncollectibility of accounts receivable. We are exposed to credit risk in the event of non-payment by customers to the extent of amounts recorded on the consolidated balance sheets. As sales levels change, the level of accounts receivable would likely also change. In addition, in the event that customers were to delay their payments to us, the levels of accounts receivable would likely increase. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is based on past payment history with the customer, analysis of the customer’s current financial condition, the aging of the accounts receivable balance, customer concentration and other known factors.

Inventories.

Inventories are stated at the lower of cost or market and include on-hand inventory physically held at the Company’s facility, sales demo inventory and service loaner inventory. Cost is determined on a standard cost basis which approximates actual cost on a first-in, first-out (“FIFO”) method. Lower of cost or market is evaluated by considering obsolescence, excessive levels of inventory, deterioration and other factors. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess, obsolescence or impaired inventory and are charged to cost of revenues. Once the cost of the inventory is reduced, a new lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Factors influencing these adjustments include changes in demand, product life cycle and development plans, component cost trends, product pricing, physical deterioration and quality issues. Revisions to these adjustments would be required if these factors differ from our estimates.

As part of our normal business, we generally utilize various finished goods inventory as either sales demos to facilitate the sale of our products to prospective customers, or as loaners that we allow our existing customers to use while we repair their products. The Company is amortizing these demos and loaners over an estimated useful life of four years. The amortization of the demos is charged to sales expense while the amortization on the loaners is charged to cost of revenues. The gross value of demos and loaners was $1.4 million and $1.6 million and the accumulated amortization was $524 thousand and $601 thousand as of January 3, 2015 and December 28, 2013, respectively. The net book value of demos and loaners is charged to cost of revenues when such demos or loaners are sold.

Property and Equipment.

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight–line basis over the estimated useful lives of the assets, which is generally three years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the lease term. Repairs and maintenance costs are expensed as incurred.

Valuation of Goodwill and Intangible Assets.

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. If, after assessing the totality of circumstances, an entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then it is required to perform the two-step impairment test. It does not require an entity to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying value. However, an entity also has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment, its common stock price is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit and can lead to potential impairment in future periods. The Company performed its annual impairment test during the second quarter of 2014 and determined that its goodwill was not impaired. As of January 3, 2015, the Company had not identified any factors that indicated there was an impairment of its goodwill and determined that no additional impairment analysis was then required.

Intangible assets with definite lives are amortized over the useful life of the asset. We review our amortizing intangible assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future non-discounted net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. In such circumstances, the Company conducts an impairment analysis in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”).

Revenue Recognition.

Our revenues arise from the sale of laser consoles, delivery devices, consumables and service and support activities. Revenue from product sales is recognized upon receipt of a purchase order and product shipment provided that no significant obligations remain and collection of the receivables is reasonably assured. Shipments are generally made with Free-On-Board (“FOB”) shipping point terms, whereby title passes upon shipment from our dock. Any shipments with FOB receiving point terms are recorded as revenue when the shipment arrives at the receiving point. Cost is recognized as product sales revenue is recognized. The Company’s sales may include post-sales obligations for training or other deliverables. For revenue arrangements such as these, we recognize revenue in accordance with ASC 605, Revenue Recognition, Multiple-Element Arrangements. The Company allocates revenue among deliverables in multiple-element arrangements using the relative selling price method. Revenue allocated to each element is recognized when the basic revenue recognition criteria is met for each element. The Company is required to apply a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of selling price (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). In general, the Company is unable to establish VSOE or TPE for all of the elements in the arrangement; therefore, revenue is allocated to these elements based on the Company’s ESP, which the Company determines after considering multiple factors such as management approved pricing guidelines, geographic differences, market conditions, competitor pricing strategies, internal costs and gross margin objectives. These factors may vary over time depending upon the unique facts and circumstances related to each deliverable. As a result, the Company’s ESP for products and services could change. Revenues for post-sales obligations are recognized as the obligations are fulfilled.

In international regions, we utilize distributors to market and sell our products. We recognize revenue upon shipment for sales to these independent, third-party distributors as we have no continuing obligations subsequent to shipment. Generally our distributors are responsible for all marketing, sales, installation, training and warranty labor coverage for our products. Our standard terms and conditions do not provide price protection or stock return rights to any of our distributors.

Royalty revenues are typically based on licensees’ net sales of products that utilize our technology and are recognized as earned in accordance with the contract terms when royalties from licensees can be reliably measured and collectibility is reasonably assured, such as upon the earlier of the receipt of a royalty statement from the licensee or upon payment by the licensee.

Taxes Collected from Customers and Remitted to Governmental Authorities.

Taxes collected from customers and remitted to governmental authorities are recognized on a net basis in the accompanying consolidated statements of operations as well as accrued expenses to the degree which is appropriate.

Deferred Revenue.

Revenue related to service contracts is deferred and recognized on a straight line basis over the period of the applicable service period. Costs associated with these service arrangements are recognized as incurred. A reconciliation of the changes in the Company’s deferred revenue balances for the years ended January 3, 2015 and December 28, 2013 are as follows (in thousands):

FY 2012: Balance as of December 29, 2012	$	1,004
Additions to deferral		1,383
Revenue recognized		(1,254	)
FY 2013: Balance as of December 28, 2013		1,133
Additions to deferral		1,514
Revenue recognized		(1,468	)
FY 2014: Balance as of January 3, 2015	$	1,179

Warranty.

We provide reserves for the estimated cost of product warranties at the time revenue is recognized based on historical experience of known product failure rates and expected material and labor costs to provide warranty services. We generally provide a two-year warranty on our products. Additionally, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Alternatively, if estimates are determined to be greater than the actual amounts necessary, we may reverse a portion of such provisions in future periods. Warranty costs are reflected in the consolidated statements of operations as costs of revenues. A reconciliation of the changes in the Company’s warranty liability for the years ended January 3, 2015 and December 28, 2013 are as follows (in thousands):

FY 2012: Balance as of December 29, 2012	$	453
Accruals for product warranties		213
Cost of warranty claims		(198	)
FY 2013: Balance as of December 28, 2013		468
Accruals for product warranties		313
Cost of warranty claims		(312	)
FY 2014: Balance as of January 3, 2015	$	469

Shipping and Handling Costs.

Our shipping and handling costs billed to customers are included in revenues and the associated expense is recorded in cost of revenues for all periods presented. Shipping and handling costs amounted to $0.3 million for each of the fiscal years 2014, 2013 and 2012.

Research and Development.

Research and development expenditures are charged to operations as incurred.

Advertising.

Advertising and promotion costs are expensed as they are incurred; such costs were approximately $0.2 million in 2014, $0.1 million in 2013, and $0.2 million in 2012 and are included in sales and marketing expenses in the accompanying consolidated statements of operations.

Income Taxes.

We account for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. Under ASC 740, the liability method is used in accounting for income taxes. Deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We evaluate annually the realizability of our deferred tax assets by assessing our valuation allowance and by adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization include our forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. In 2013, we recorded a full valuation allowance for our deferred tax assets based on our historical loss and the uncertainty regarding our ability to project future taxable income. In 2014, the Company released $9.2 million of valuation allowance against most of its deferred tax assets except for the California Research and Development Credit.

Accounting for Uncertainty in Income Taxes.

The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740 seeks to reduce the diversity in practice associated with certain aspects of measurement and recognition in accounting for income taxes. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax provision that an entity takes or expects to take in a tax return. Additionally, ASC 740 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. Under ASC 740, an entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. In accordance with our accounting policy, we recognize accrued interests and penalties related to unrecognized tax benefits as a component of income tax expense. There were no accrued interest and penalties during the year ended January 3, 2015.

Accounting for Stock-Based Compensation.

The Company accounts for stock-based compensation granted to employees and directors, including employees stock option awards, restricted stock and restricted stock units in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). Accordingly, stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the employee’s service period. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award.

The Company values options using the Black-Scholes option pricing model. Restricted stock and time-based restricted stock units are valued at the grant date fair value of the underlying common shares. Performance-based restricted stock units are valued using the Monte Carlo simulation model. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions which determine the fair value of share-based awards, including the option’s expected term and the price volatility of the underlying stock. The Monte Carlo simulation model incorporates assumptions for the holding period, risk-free interest rate, stock price volatility and dividend yield.

Concentration of Credit Risk and Other Risks and Uncertainties.

The Company’s cash and cash equivalents are deposited in demand and money market accounts. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally these deposits may be redeemed upon demand and therefore, bear minimal risk.

The Company markets its products to distributors and end-users throughout the world. Sales to international distributors are generally made on open credit terms and letters of credit. Management performs ongoing credit evaluations of our customers and maintains an allowance for potential credit losses. Historically, the Company has not experienced any significant losses related to individual customers or a group of customers in any particular geographic area. For the years ended January 3, 2015, December 28, 2013, and December 29, 2012, no single customer accounted for greater than 10% of total revenues. As of January 3, 2015, one customer accounted for approximately 13% of our net accounts receivable balance. No customer accounted for more than 10% of our accounts receivable balance as of December 28, 2013.

The Company’s products require approvals from the Food and Drug Administration and international regulatory agencies prior to commercialized sales. The Company’s future products may not receive required approvals. If the Company were denied such approvals, or if such approvals were delayed, it would have a materially adverse impact on the Company’s business, results of operations and financial condition.

Reliance on Certain Suppliers.

Certain components and services used by the Company to manufacture and develop its products are presently available from only one or a limited number of suppliers or vendors. The loss of any of these suppliers or vendors would potentially require a significant level of hardware and/or software development efforts to incorporate the products or services into the Company’s products.

Net Income per Share.

Net income per share is computed in accordance with ASC 260, Earnings per Share. Basic net income per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalents outstanding during the period. Common stock equivalents consist of incremental common shares issuable upon the exercise of stock options, release (vesting) of restricted stock units and awards, and the conversion of Series A Preferred Stock into common stock and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, unvested restricted stock units and awards and the conversion of Series A Preferred Stock are excluded from the computation for periods in which the Company incurs a loss from continuing operations or if the exercise price of such options is greater than the average market price of the stock for the period as their effect is anti-dilutive. See Note 14 - Computation of Basic and Diluted Net Income (Loss) Per Common Share.

Recently Issued and Adopted Accounting Standards.

In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2016. We are currently evaluating the impact that this standard will have on our consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)”. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. For all entities, the ASU is effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. We expect to adopt this standard in fiscal 2016 and do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

Fair Value Measurement

12 Months Ended

Jan. 03, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurement

3. Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

—	Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

—

Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.

—	Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

The carrying amounts of the Company’s financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses as of January 3, 2015 and December 28, 2013, approximate fair value because of the short maturity of these instruments.

As of January 3, 2015 and December 28, 2013, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands):

	As of January 3, 2015							As of December 28, 2013
	Fair Value Measurements							Fair Value Measurements
	Level 1		Level 2	Level 3		Total		Level 1		Level 2	Level 3		Total
Assets:
Money market funds	$	11,846				$	11,846	$	12,742				$	12,742
Liabilities:
Earn-out liability				$	1,423	$	1,423				$	624	$	624

The Company’s Level 1 financial assets are money market funds whose fair values are based on quoted market prices. The Company does not have any Level 2 financial assets or liabilities. The fair value of the earn-out liability arising from the acquisitions of RetinaLabs and Ocunetics is classified within Level 3 of the fair value hierarchy since it is based on significant unobservable inputs. The significant unobservable inputs include projected royalties and discount rates to present value the payments. A significant increase (decrease) in the projected royalty payments in isolation could result in a significantly higher (lower) fair value measurement and a significant increase (decrease) in the discount rate in isolation could result in a significantly lower (higher) fair value measurement. The fair value of the earn-out liability is calculated on a quarterly basis by the Company based on a collaborative effort of the Company’s operations, finance and accounting groups based on additional information as it becomes available. We continue to generate revenues from our RetinaLabs acquisition and anticipate generating revenues from our Ocunetics transaction. Both of these deals were structured with an earn-out component. Our expectations of the future revenues to be generated from these deals have increased; we now anticipate increasing our payment under the earn-out conditions. The earn-out liability is included in accrued expenses and other long-term liabilities in the consolidated balance sheets. Any change in the fair value adjustment is recorded in the consolidated statements of operations.

Charges related to fair value adjustments were $1,258 thousand, $355 thousand and $215 thousand for the fiscal years 2014, 2013 and 2012, respectively

The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of January 3, 2015 and December 28, 2013.

As of January 3, 2015

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

1,423

Discounted cash

Projected royalties

$3,048

flow

(in thousands)

($669 – $3,613)

Discount rate

13.54%

(10.34% - 27.00%)

As of December 28, 2013

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

624

Discounted cash

Projected royalties

$1,463

flow

(in thousands)

($414 – $1,675)

Discount rate

21.61%

(20.52% - 27.00%)

The following table provides a reconciliation of the beginning and ending balances of the contingent consideration – cash (Level 3 liabilities) (in thousands):

Balance as of December 29, 2012	$	652
Payments against earn-out		(383	)
Change in fair value of earn-out liability		355
Balance as of December 28, 2013		624
Payments against earn-out		(459	)
Change in fair value of earn-out liability		1,258
Balance as of January 3, 2015	$	1,423

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Inventories

12 Months Ended

Jan. 03, 2015

Inventory Disclosure [Abstract]

Inventories

4. Inventories

The components of the Company’s inventories are as follows (in thousands):

	FY 2014 January 3, 2015		FY 2013 December 28, 2013
Raw materials	$	3,966	$	5,922
Work in process		1,609		976
Finished goods		3,544		3,707
Total inventories	$	9,119	$	10,605

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References+ Details

Property and Equipment

12 Months Ended

Jan. 03, 2015

Property Plant And Equipment [Abstract]

Property and Equipment

5. Property and Equipment

The components of the Company’s property and equipment are as follows (in thousands):

	FY 2014 January 3, 2015			FY 2013 December 28, 2013
Equipment	$	7,623		$	7,065
Leasehold improvements		2,309			2,299
Less: accumulated depreciation and amortization		(9,197	)		(8,821	)
Property and equipment, net	$	735		$	543

Depreciation expense related to property and equipment was $376 thousand, $264 thousand and $236 thousand for the fiscal years 2014, 2013 and 2012, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

Intangible Assets

12 Months Ended

Jan. 03, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

7. Intangible Assets

The components of the Company’s purchased intangible assets as of January 3, 2015 are as follows (in thousands):

	Useful Lives	FY 2014 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	76	$	164	10.25 Years
Patents	Varies		28		720		600		120	Varies
		$	44	$	960	$	676	$	284

The components of the Company’s purchased intangible assets as of December 28, 2013 are as follows (in thousands):

	Useful Lives	FY 2013 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	60	$	180	11.25 Years
Patents	Varies		210		720		572		148	Varies
		$	226	$	960	$	632	$	328

Aggregate amortization expense for the fiscal years 2014, 2013 and 2012 were $44 thousand, $226 thousand and $191 thousand, respectively. The amortization of customer relations was charged to sales and marketing expense and the amortization of Patents was charged to cost of revenues.

Estimated future amortization expense for purchased intangible assets is as follows (in thousands):

Fiscal Year:
2015	$	53
2016		99
2017		16
2018		16
2019		16
Thereafter		84
Total	$	284

Accrued Expenses

12 Months Ended

Jan. 03, 2015

Payables And Accruals [Abstract]

Accrued Expenses

8. Accrued Expenses

The components of the Company’s accrued expenses are as follows (in thousands):

	FY 2014 January 3, 2015		FY 2013 December 28, 2013
Customer deposits	$	500	$	200
Earn-out – short term		382		184
Distributor commission		300		524
Sales and use tax payable		107		111
Royalties payable		36		32
Other accrued expenses		445		541
Total accrued expenses	$	1,770	$	1,592

Commitments and Contingencies

12 Months Ended

Jan. 03, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Lease Agreements.

The Company leases its operating facilities under a non-cancelable operating lease. In December 2009, the lease for the Mountain View, California facility was amended and renewed to lease for an additional six year period beginning March 1, 2010 until February 28, 2015. In August 2014, the Company executed an amendment to extend the term of the lease through February 28, 2017. There are no remaining options to extend or renew the terms of this lease. Rent expense totaled $0.6 million for each of the fiscal years 2014, 2013 and 2012.

Future minimum lease payments under current operating leases at January 3, 2015 are summarized as follows (in thousands):

Fiscal Year	Operating Lease Payments
2015	$	858
2016		993
2017		164
Total future minimum lease payments	$	2,015

Manufacture and Supply Agreement.

In January 2014, the Company and Peregrine Surgical Ltd. amended the manufacture, supply and distributor agreement that was originally entered into in April 2013. The amendment modified the term and termination period from April 1, 2013 through April 1, 2017 to January 1, 2014 through January 1, 2018. All other terms under the original agreement remained in force.

Under the agreement, the Company has a minimum commitment to purchase annually $750 thousand of certain components and ophthalmic instrumentation. In 2014, the Company was not able to meet the minimum commitment, having purchased only $678 thousand. The deficient amount of $72 thousand was mutually agreed upon by both parties to be added to the 2015 minimum commitment.

Future minimum payments for manufacture and supply commitments as of January 3, 2015 are summarized as follows (in thousands):

Fiscal Year	Contract Manufacturing and Supply Commitments
2015	$	6,171
2016		2,013
2017		750
Total contract manufacturing and supply commitments	$	8,934

License Agreements.

The Company is obligated to pay royalties equivalent to 5% of sales on certain products under certain license agreements with termination dates as early as the end of 2018 and as late as the end of 2021. Royalty expense, charged to cost of revenues, was approximately $0.2 million, $0.1 million, and $0.1 million for the fiscal years 2014, 2013 and 2012, respectively.

Indemnification Arrangements.

The Company enters into standard indemnification arrangements in our ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, generally our business partners or customers, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to our products. The term of these indemnification agreements is generally perpetual anytime after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal.

The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to make good faith determination whether or not it is practicable for the Company to obtain directors and officers insurance. The Company currently has directors and officers liability insurance.

In general, management believes that claims which are pending or known to be threatened, will not have a material adverse effect on the Company’s financial position or results of operations and are adequately covered by the Company’s liability insurance. However, it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one of more of these contingencies or because of the diversion of management’s attention and the incurrence of significant expenses.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

Stockholders' Equity

12 Months Ended

Jan. 03, 2015

Equity [Abstract]

Stockholders' Equity

10. Stockholders’ Equity

Convertible Preferred Stock

The Company is authorized to issue up to 2,000,000 shares of undesignated preferred stock from time to time in one or more series. During August 2007, the Company filed a Certificate of Designation authorizing the Company to issue up to 500,000 of the 2,000,000 shares of authorized undesignated preferred stock as shares of Series A Preferred Stock, par value $0.01 per share and the Company issued 500,000 shares of Series A Preferred Stock, convertible into 1 million shares of common stock, and warrants to purchase an aggregate of 600,000 shares of common stock at an exercise price of $0.01 per share. The warrants were to expire December 31, 2007 but were exercised prior to that date. The purchase price for a unit of 1 share of Series A Preferred Stock and a warrant to purchase 1.2 shares of common stock was $10.00, resulting in net proceeds to the Company of approximately $4.9 million. Of the total $4.9 million proceeds received, approximately $2.3 million was allocated to the common stock warrants based on their estimated fair value at the time of issuance. On June 11, 2013, all outstanding shares of the Company’s Series A Preferred Stock automatically converted into 1,000,000 shares of common stock.

Stock-Based Compensation

1998 Stock Plan.

The 1998 Stock Plan (“the 1998 Plan”), as amended, provides for the granting to employees (including officers and non-employee directors) of incentive stock options and for the granting to employees (including officers and non-employee directors) and consultants of nonstatutory stock options, stock purchase rights (“SPRs”), restricted stock, restricted stock units (“RSUs”), performance shares, performance units and stock appreciation rights. The exercise price of incentive stock options and stock appreciation rights granted under the 1998 Plan must be at least equal to the fair market value of the shares at the time of grant. With respect to any recipient who owns stock possessing more than 10% of the voting power of our outstanding capital stock, the exercise price of any option or SPR granted must be at least equal to 110% of the fair market value at the time of grant. Options granted under the 1998 Plan are exercisable at such times and under such conditions as determined by the administrator; generally over a four year period. The maximum term of incentive stock options granted to any recipient must not exceed ten years; provided, however, that the maximum term of an incentive stock option granted to any recipient possessing more than 10% of the voting power of the Company’s outstanding capital stock must not exceed five years. In the case of SPRs, unless the administrator determines otherwise, the Company has a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s employment with the Company for any reason (including death or disability). Such repurchase option lapses at a rate determined by the administrator. The purchase price for shares repurchased by the Company is the original price paid by the purchaser. As of January 3, 2015 and December 28, 2013, no shares were subject to repurchase. The form of consideration for exercising an option or stock purchase right, including the method of payment, is determined by the administrator. The 1998 Plan expired in February 2008.

2008 Equity Incentive Plan.

On June 11, 2008, the shareholders approved the adoption of the 2008 Equity Incentive Plan, (“the Incentive Plan”). There are no material changes in the Incentive Plan from the 1998 Plan. In 2014, the stockholders approved an amendment to the Incentive Plan for purposes of complying with Section 162(m) of the Internal Revenue Code of 1986, as amended, to increase the share reserve under the Incentive Plan, and to make certain other amendments to the terms of the Incentive Plan. The maximum aggregate number of shares that may be awarded and sold under the Incentive Plan is 300,000 shares plus any shares subject to stock options or similar awards granted under the 1998 Plan that expire or otherwise terminate without having been exercised in full and shares issued pursuant to awards granted under the 1998 Plan that are forfeited to the Company on or after the date the 1998 Plan expires.

The following table summarizes information regarding activity in our stock option plans during the fiscal years ended 2014, 2013 and 2012 (in thousands except share and per share data):

				Outstanding Options
	Shares Available for Grant			Number of Shares			Aggregate Price			Weighted Average Exercise Price
Balances as of December 31, 2011		505,221			1,766,401		$	6,380		$	3.61
Additional shares reserved		391,166			—			—			—
Options granted		(335,050	)		335,050			1,313			3.92
Restricted stock granted		(66,665	)
Options exercised		—			(174,631	)		(445	)		2.55
Options cancelled		356,277			(356,277	)		(1,550	)		4.35
Options expired		(108,971)			—			—			—
Balances as of December 29, 2012		741,978			1,570,543			5,698			3.63
Additional shares reserved		52,128			—			—			—
Options granted		(149,600	)		149,600			851			5.69
Restricted stock granted		(234,012	)		—			—			—
Options exercised		—			(493,622	)		(1,495	)		3.03
Options cancelled		123,679			(123,679	)		(698	)		5.64
Options expired		(57,628)			—			—			—
Balances as of December 28, 2013		476,545			1,102,842			4,356			3.97
Additional shares reserved		503,306			—			—			—
Options granted		(158,300	)		158,300			1,362			8.61
Restricted stock granted		(62,225	)		—			—			—
Options exercised		—			(399,390	)		(1,501	)		3.76
Options cancelled		27,957			(27,957	)		(171	)		6.13
Awards cancelled		79,890			—			—			—
Options expired		(13,056	)		—			—			—
Balances as of January 3, 2015		854,117			833,795		$	4,046		$	4.88

There were 1,687,912 shares reserved for future issuance under the stock option plans as of January 3, 2015.

The following table summarizes information with respect to stock options outstanding and exercisable as of January 3, 2015:

	Options Outstanding						Options Vested and Exercisable
Range of Exercise Prices	Number of Shares Outstanding as of January 3, 2015		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Shares Exercisable as of January 3, 2015		Weighted Average Exercise Price
$0.90 - $3.07		96,025		1.12	$	1.70		96,025	$	1.70
$3.08 - $3.60		91,707		3.17	$	3.51		72,064	$	3.49
$3.72 - $3.75		33,250		3.83	$	3.72		22,000	$	3.73
$3.86 - $3.86		147,896		4.91	$	3.86		59,646	$	3.86
$3.89 - $4.31		140,325		3.12	$	4.12		112,521	$	4.15
$4.70 - $5.92		137,463		4.54	$	5.50		64,546	$	5.45
$6.00 - $8.58		122,129		5.92	$	7.91		25,131	$	7.45
$8.60 - $8.98		42,000		6.55	$	8.84		—	$	—
$9.34 - $9.34		20,000		6.18	$	9.34		—	$	—
$10.19 - $10.19		3,000		5.92	$	10.19		813	$	10.19
$0.90 - $10.19		833,795		4.14	$	4.88		452,746	$	3.85

The determination of the fair value of options granted by the Company is computed using the Black-Scholes option pricing model with the following weighted average assumptions:

	Employee Stock Option Plan
	FY 2014	FY 2013	FY 2012
Average risk free interest rate	1.49%	1.12%	0.68%
Expected life (in years)	4.50 years	4.50 years	4.55 years
Dividend yield	—	—	—
Average volatility	56.2%	71.5%	89.2%

The weighted average grant date fair value of options granted as calculated using Black-Scholes option pricing was $4.02, $3.16, and $2.60 per share for the fiscal years 2014, 2013 and 2012, respectively.

Option pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history over a period commensurate with the expected term of the options, trading volume of the Company’s stock, look-back volatilities and Company specific events that affected volatility in a prior period. The Company had elected to use the simplified method for estimating the expected term prior to July 3, 2011. Effective July 3, 2011, the expected term of employee stock options represents the weighted average period the stock options are expected to remain outstanding and is based on the history of exercises and cancellations on all past option grants made by the Company, the contractual term, the vesting period and the expected remaining term of the outstanding options. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future.

The following table shows stock-based compensation expense by functional line item in the consolidated statements of operations for 2014, 2013 and 2012 (in thousands):

	FY 2014 Year Ended		FY 2013 Year Ended		FY 2012 Year Ended
	January 3, 2015		December 28, 2013		December 29, 2012
Cost of revenues	$	149	$	108	$	63
Research and development		105		71		77
Sales and marketing		118		113		105
General and administrative		600		397		143
Total stock-based compensation expense – continuing operations		972		689		388
Total stock-based compensation expense – discontinued operations		—		—		8
Total stock-based compensation expense	$	972	$	689	$	396

Stock-based compensation expense capitalized to inventory was immaterial for 2014, 2013, and 2012.

Information regarding stock options outstanding, exercisable and expected to vest as of January 3, 2015 is summarized below:


	Number of			Weighted Average		Weighted Average Remaining Contractual		Aggregate Intrinsic Value
	Shares			Exercise Price		Life (years)		(thousands)
Options outstanding		833,795	$		4.88		4.14	$	3,139
Options vested and expected to vest		781,361	$		4.77		4.04	$	3,026
Options exercisable		452,746	$		3.85		3.01	$	2,158

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on January 3, 2015. This amount changes based on the fair market value of the Company’s common stock. The total intrinsic value of options exercised for fiscal years 2014, 2013 and 2012 was approximately $1.9 million, $1.5 million, and $261 thousand, respectively.

As of January 3, 2015, there was $1.2 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements under both of the plans. The cost is expected to be recognized over a weighted average period of 2.44 years.

Cash flows resulting from excess tax benefits are classified as a part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for exercised stock options and vested restricted stock units and awards in excess of the deferred tax asset attributable to stock-based compensation expense for such stock-based awards. Excess tax benefits are considered realized when the tax deductions reduce taxes that otherwise would be payable. Excess tax benefits classified as a financing cash inflow for fiscal 2014were $36 thousand.

Restricted Stock Awards/Restricted Stock Units

Effective for the 2011 fiscal year, each non-employee member of the Board received an annual equity award of either restricted stock or RSU, at the election of such Board member, in each case equal to $20 thousand worth of our common stock (determined at the fair market value of the shares at the time such award is granted) under the Company’s 2008 Equity Incentive Plan. Each equity award or RSU vests in full on the one-year anniversary of the date of grant provided that the non-employee member continues to serve on the Board through such date.

Summary of Restricted Stock Units and Awards

The Company recognizes the estimated compensation expense of restricted stock units and awards, net of estimated forfeitures, over the vesting term. The estimated compensation expense is based on the fair value of the Company’s common stock on the date of grant.

Information regarding the restricted stock units outstanding, vested and expected to vest as of January 3, 2015 is summarized below:

	Number of Shares		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (thousands)
Restricted stock units outstanding		277,390		0.59	$	2,388
Restricted stock units vested and expected to vest		196,858		0.23	$	1,695

The intrinsic value of the restricted stock units is calculated based on the closing price of IRIDEX shares as quoted on the NASDAQ Global Market on the last trading day of the year, January 2, 2015 of $8.61.

In March 2013, the Company granted a restricted stock unit award for up to 220,000 shares of the Company’s common stock (the “Market Performance Award #1”) under the terms of the Company’s 2008 Equity Incentive Plan, as amended, to the Company’s President and Chief Executive Officer. The number of shares issuable pursuant to the Market Performance Award #1 will be based upon the Company’s average stock price performance during the two months prior to and two months following the date the service condition is met. Based on the Company’s average stock price performance, the Market Performance Award #1 is expected to vest on December 31, 2014. See Note 15 – Subsequent Events.

In January 2014, the Company granted a restricted stock unit award for up to 50,000 shares of the Company’s common stock (the “Market Performance Award #2”) under the terms of the Company’s 2008 Equity Incentive Plan, as amended, to the Company’s President and Chief Executive Officer. The number of shares issuable pursuant to the Market Performance Award #2 will be based upon the Company’s calculated stock price (average stock price performance during the two months prior to and two months following the date the service condition is met. Under the Market Performance Award #2, none of the restricted stock units will vest if the calculated stock price is less than $11.00 per share. Based on the Company’s average stock price performance, the Market Performance Award #2 is not expected to vest on December 31, 2014. See Note 15 – Subsequent Events.

With respect to the Market Performance Award #1 and Market Performance Award #2 (the “Performance Awards”), to the extent that the market condition is not met, the Performance Awards will not vest and will be cancelled. Since the market conditions will affect the vesting of the Performance Awards, the Company could not use the Black-Scholes option pricing model to value the award; instead, a binomial model was used. The Company utilized the Monte Carlo simulation technique, which incorporated assumptions for the expected holding period, risk-free interest rate, stock price volatility and dividend yield. The total value of the Market Performance Award #1 was $258 thousand the total value of the Market Performance Award #2 was $234 thousand. Compensation expense was recognized ratably over the expected vesting term.

Information regarding the restricted stock units activity during the year ended January 3, 2015, December 28, 2013 and December 29, 2012 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2011		90,189		$	3.49
Restricted stock units granted		55,999		$	3.85
Restricted stock units released		(15,189	)	$	3.95
Restricted stock units forfeited		(75,000	)	$	3.40
Outstanding as of December 29, 2012		55,999		$	3.85
Restricted stock units granted		230,509		$	4.51
Restricted stock units released		(17,249	)	$	3.77
Outstanding as of December 28, 2013		269,259		$	4.42
Restricted stock units granted		59,780		$	9.76
Restricted stock units released		(46,759	)	$	9.29
Restricted stock units forfeited		(4,890	)	$	8.18
Outstanding as of January 3, 2015		277,390		$	4.68

Information regarding the restricted stock awards activity during the year ended January 3, 2015, December 28, 2013 and December 29, 2012 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2011		10,126		$	3.95
Restricted stock awards granted		10,666			3.75
Restricted stock awards released		(10,126	)	$	3.95
Outstanding as of December 29, 2012		10,666		$	3.75
Restricted stock awards granted		3,503		$	5.71
Restricted stock awards released		(10,666	)	$	3.75
Outstanding as of December 28, 2013		3,503		$	5.71
Restricted stock awards granted		2,445		$	8.18
Restricted stock awards released		(3,503	)	$	5.71
Outstanding as of January 3, 2015		2,445		$	8.18

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Name Accounting Standards Codification

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-Name Regulation S-X (SX)

-Number 210

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-Article 5

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-Number 210

-Section 08

-Article 4

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-Number Topic 4

-Section C

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-Name Accounting Standards Codification

-Glossary Preferred Stock

-URI http://asc.fasb.org/extlink&oid=6521494

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+ Details

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Jan. 03, 2015
Employee Benefits And Share Based Compensation [Abstract]
Employee Benefit Plan	11. Employee Benefit Plan The Company has a plan known as the IRIS Medical Instruments 401(k) Trust to provide retirement benefits through the deferred salary deductions for substantially all U.S. employees. Employees may contribute up to 15% of their annual compensation to the plan, limited to a maximum amount set by the Internal Revenue Service. The plan also provides for Company contributions at the discretion of the Board of Directors. Prior to the start of fiscal 2009, the Company suspended the matching contributions. Subsequent to December 29, 2012, the Company reinstated a Company match in the amount of 50% of employee contributions up to a maximum of $3 thousand. In 2014, total matching contributions made by the Company were $186 thousand. In 2013, total matching contributions made by the Company were $170 thousand.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References+ Details

Income Taxes

12 Months Ended

Jan. 03, 2015

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

Pre-tax book income (loss) from continuing operations was comprised of the following:

	FY 2014 Year Ended January 3, 2015		FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
United States	$	1,332	$	2,262	$	(270	)
Foreign		—		—		—
Total	$	1,332	$	2,262	$	(270	)

The (benefit from) provision for income taxes from continuing operations includes:

	FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
Current:
Federal	$	54		$	11	$	(114	)
State		16			20		14
		70			31		(100	)
Deferred:
Federal		(7,862	)		—		—
State		(914	)		—		—
		(8,776	)		—		—
(Benefit from) provision for income taxes	$	(8,706	)	$	31	$	(100	)

The Company’s effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013			FY 2012 Year Ended December 29, 2012
Income tax provision at statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal benefit		(68.0	%)		(13.3	%)		(88.1	%)
Permanent differences		(1.1	%)		(17.0	%)		(89.1	%)
Research and development credits		(2.6	%)		0.0	%		0.0	%
Change in valuation allowance		(613.5	%)		(2.3	%)		180.3	%
Other		(2.4	%)		0.0	%		0.0	%
Effective tax rate		(653.6	%)		1.4	%		37.1	%

The tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets are presented below (in thousands):

	FY 2014 January 3, 2015			FY 2013 December 28, 2013
Accruals and reserves	$	1,681		$	1,792
Deferred revenue		113			91
Fixed assets		439			423
Intangibles		825			441
Stock compensation		676			696
Net operating loss		4,278			5,224
Research and development credits		1,575			1,260
Other tax credits		94			47
Net deferred tax asset	$	9,681		$	9,974
Valuation allowance		(905	)		(9,974	)
Net deferred tax assets	$	8,776		$	—

The Company's accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of the Company's deferred tax assets. Assessing the realizability of deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. The Company's management forecasts taxable income by considering all available positive and negative evidence including its history of operating income or losses and its financial plans and estimates which are used to manage the business. These assumptions require significant judgment about future taxable income. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are reduced.

In the fourth quarter of fiscal year 2014, the Company's management determined, based on the Company's recent history of earnings coupled with its forecasted profitability that it is more likely than not that all of its federal and the majority of its state deferred tax assets will be realized in the foreseeable future. Accordingly, in the fourth quarter of fiscal year 2014, the Company released $9.2 million of valuation allowance. As of January 3, 2015, the Company had federal and state net operating loss (“NOL”) carryforwards of $12.5 million and $14.5 million, respectively. Of the total NOL carryover, $2 million for federal and $2.1 million for states, relate to windfall stock option deductions which, when realized, will be credited to equity. The federal NOL will begin to expire in 2032 and the state NOL will begin to expire in 2020, in each case if not used.

The Tax Increase Prevention Act of 2014, enacted on December 19, 2014, provided for one-year extension of the research and development credit through 2014. As of January 3, 2015, the Company had federal and state research credit carryforwards of approximately $1.3 million and $1.9 million, respectively, available to offset future tax liabilities. The federal credits will begin expiring in 2026 if not used. The state research credits do not expire. The above NOL and research and development credits are subject to IRC sections 382 and 383. In the event of a change in ownership as defined by these code sections, the usage of the above mentioned NOL’s and credits may be limited.

The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740 seeks to reduce the diversity in practice associated with certain aspects of measurement and recognition in accounting for income taxes. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax provision that an entity takes or expects to take in a tax return. Additionally, ASC 740 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. Under ASC 740, an entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. In accordance with our accounting policy, we recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no accrued interest and penalties during the year ended January 3, 2015.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
Balance at the beginning of the year	$	1,027		$	954	$	1,191
Additions based upon tax positions related to the current year		53			48		36
Additions based upon tax positions related to the prior year		51			25		—
Reductions based upon tax positions related to the prior year		(270	)		—		(273	)
Balance at the end of the year	$	861		$	1,027	$	954

Recognition of the unrecognized tax benefits of $861 thousand as of January 3, 2015 would affect the Company’s effective tax rate. The Company does not anticipate any material change in its unrecognized tax benefits of $861 thousand over the next twelve months. The unrecognized tax benefits may change during the next year for items that arise in the ordinary course of business.

The Company files U.S. federal and state returns. The tax years 2009 to 2014 remain open in several jurisdictions, none of which have individual significance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

Business Segments and Customers

12 Months Ended

Jan. 03, 2015

Segment Reporting [Abstract]

Business Segments and Customers

13. Business Segments and Geographical Information

The Company operates in one segment, ophthalmology. The Company develops, manufactures and markets medical devices. Our revenues arise from the sale of consoles, delivery devices, consumables, service and support activities.

Revenue information shown by geographic region is as follows (in thousands):

	FY 2014 Year Ended January 3, 2015		FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
United States	$	22,590	$	21,043	$	18,496
Europe		9,096		7,345		7,468
Rest of Americas		3,199		3,309		2,335
Asia/Pacific Rim		7,929		6,576		5,560
	$	42,814	$	38,273	$	33,859

Revenues are attributed to countries based on location of end customers. For fiscal years 2014, 2013 and 2012 no individual country accounted for more than 10% of the Company’s sales, except for the United States, which accounted for 52.8%, 55.0%, and 54.6% of revenues in 2014, 2013, and 2012 respectively.

As of January 3, 2015 and December 28, 2013, the Company had no long-lived assets in any country other than in the United States.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

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+ Details

Computation of Basic and Diluted Net Income (Loss) Per Common Share

12 Months Ended

Jan. 03, 2015

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income (Loss) Per Common Share

14. Computation of Basic and Diluted Net Income (Loss) Per Common Share

A reconciliation of the numerator and denominator of basic and diluted net income (loss) per common share is provided as follows (in thousands, except per share amounts):

	FY 2014 Year Ended January 3, 2015		FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
Numerator:
Income (loss) from continuing operations	$	10,038	$	2,231	$	(170	)
Income from discontinued operations		—		—		1,608
Net income	$	10,038	$	2,231	$	1,438
Denominator:
Weighted average shares of common stock (basic)		9,892		9,245		8,935
Effect of dilutive preferred shares		—		448		—
Effect of dilutive stock options		291		291		—
Effect of dilutive contingent shares		174		120		—
Weighted average shares of common stock (diluted)		10,357		10,104		8,935
Per share data:
Basic net income (loss) per share:
Net income (loss) before discontinued operations	$	1.01	$	0.24	$	(0.02	)
Discontinued operations		0.00		0.00		0.18
Net income	$	1.01	$	0.24	$	0.16
Diluted net income (loss) per share:
Net income (loss) before discontinued operations	$	0.97	$	0.22	$	(0.02	)
Discontinued operations		0.00		0.00		0.18
Net income	$	0.97	$	0.22	$	0.16

For periods in which the Company generates income from continuing operations, the conversion of Series A Preferred Stock to common stock and common stock equivalent shares from unexercised stock options (if the exercise price of such options is lower than the average market price of the stock for the period) and vesting of restricted stock units and awards are included in the computation as their effect is dilutive. The Company excludes stock options and other common stock equivalents from the computation if the exercise price of the options is greater than the average market price of the stock for the period because the inclusion of these options would be anti-dilutive. Accordingly, as of January 3, 2015 and December 28, 2013, stock options to purchase 116,320 and 156,564 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding.

For periods in which the Company incurs a loss from continuing operations, the conversion of Series A Preferred Stock to common stock and common stock equivalent shares from unexercised stock options are excluded from the computation as their effect is anti-dilutive. Accordingly, as of December 29, 2012, 1,000,000 shares of common stock equivalents (from the conversion of Series A Preferred Stock), stock options to purchase 1,570,543 shares of common stock and restricted stock units and awards for 66,665 shares of common stock have been excluded.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Jan. 03, 2015
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events In March 2015, in connection with the Performance Awards granted to the Company’s President and Chief Executive Officer, where the total number of shares issuable was determined based upon the Company’s calculated price (average stock price performance during the two months prior to and two months following the date the service condition is met), under the Market Performance Award #1, the Company released 190 thousand shares of restricted stock units to the Company’s President and Chief Executive Officer and cancelled the remaining 30 thousand shares that could have been earned under this award. In addition, since no shares of the total number of shares that could have been earned under the Market Performance Award #2 vested, 50 thousand shares were also cancelled. The Company has evaluated subsequent events and has concluded that no additional subsequent events that require disclosure in the consolidated financial statements have occurred since the year ended January 3, 2015.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 03, 2015

Accounting Policies [Abstract]

Financial Statement Presentation

Financial Statement Presentation.

The consolidated financial statements include the accounts of IRIDEX and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Reclassifications.

Use of Estimates

Use of Estimates.

Discontinued Operations

Discontinued Operations.

	FY 2014 Year Ended		FY 2013 Year Ended		FY 2012 Year Ended
(in thousands)	January 3, 2015		December 28, 2013		December 29, 2012
Total revenues	$	—	$	—	$	1,630
Income (loss) from discontinued operations	$	—	$	—	$	(325	)
Gain on sales of aesthetics business	$	—	$	—	$	1,149
Income from discontinued operations, before income taxes	$	—	$	—	$	824
Income tax (benefit) expense	$	—	$	—	$	(784	)
Income from discontinued operations, net of tax	$	—	$	—	$	1,608

Cash and Cash Equivalents

Cash and Cash Equivalents.

Sales Returns Allowance and Allowance for Doubtful Accounts

Sales Returns Allowance and Allowance for Doubtful Accounts.

Inventories

Inventories.

Property and Equipment

Property and Equipment.

Valuation of Goodwill and Intangible Assets

Valuation of Goodwill and Intangible Assets.

Revenue Recognition

Revenue Recognition.

Taxes Collected from Customers and Remitted to Governmental Authorities

Taxes Collected from Customers and Remitted to Governmental Authorities.

Deferred Revenue

Deferred Revenue.

FY 2012: Balance as of December 29, 2012	$	1,004
Additions to deferral		1,383
Revenue recognized		(1,254	)
FY 2013: Balance as of December 28, 2013		1,133
Additions to deferral		1,514
Revenue recognized		(1,468	)
FY 2014: Balance as of January 3, 2015	$	1,179

Warranty

Warranty.

FY 2012: Balance as of December 29, 2012	$	453
Accruals for product warranties		213
Cost of warranty claims		(198	)
FY 2013: Balance as of December 28, 2013		468
Accruals for product warranties		313
Cost of warranty claims		(312	)
FY 2014: Balance as of January 3, 2015	$	469

Shipping and Handling Costs

Shipping and Handling Costs.

Research and Development

Research and Development.

Research and development expenditures are charged to operations as incurred.

Advertising

Advertising.

Income Taxes

Income Taxes.

Accounting for Uncertainty in Income Taxes

Accounting for Uncertainty in Income Taxes.

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation.

Concentration of Credit Risk and Other Risks and Uncertainties

Concentration of Credit Risk and Other Risks and Uncertainties.

Reliance on Certain Suppliers

Reliance on Certain Suppliers.

Net Income per Share

Net Income per Share.

Recently Issued and Adopted Accounting Standards

Recently Issued and Adopted Accounting Standards.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 03, 2015

Accounting Policies [Abstract]

Summary of Activities for Discontinued Operations

The sale of the aesthetics business was completed on February 2, 2012.

	FY 2014 Year Ended		FY 2013 Year Ended		FY 2012 Year Ended
(in thousands)	January 3, 2015		December 28, 2013		December 29, 2012
Total revenues	$	—	$	—	$	1,630
Income (loss) from discontinued operations	$	—	$	—	$	(325	)
Gain on sales of aesthetics business	$	—	$	—	$	1,149
Income from discontinued operations, before income taxes	$	—	$	—	$	824
Income tax (benefit) expense	$	—	$	—	$	(784	)
Income from discontinued operations, net of tax	$	—	$	—	$	1,608

Reconciliation of Changes in Deferred Revenue

A reconciliation of the changes in the Company’s deferred revenue balances for the years ended January 3, 2015 and December 28, 2013 are as follows (in thousands):

FY 2012: Balance as of December 29, 2012	$	1,004
Additions to deferral		1,383
Revenue recognized		(1,254	)
FY 2013: Balance as of December 28, 2013		1,133
Additions to deferral		1,514
Revenue recognized		(1,468	)
FY 2014: Balance as of January 3, 2015	$	1,179

Reconciliation of Changes in Warranty Liability

A reconciliation of the changes in the Company’s warranty liability for the years ended January 3, 2015 and December 28, 2013 are as follows (in thousands):

FY 2012: Balance as of December 29, 2012	$	453
Accruals for product warranties		213
Cost of warranty claims		(198	)
FY 2013: Balance as of December 28, 2013		468
Accruals for product warranties		313
Cost of warranty claims		(312	)
FY 2014: Balance as of January 3, 2015	$	469

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References+ Details

Fair Value Measurement (Tables)

12 Months Ended

Jan. 03, 2015

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis

	As of January 3, 2015							As of December 28, 2013
	Fair Value Measurements							Fair Value Measurements
	Level 1		Level 2	Level 3		Total		Level 1		Level 2	Level 3		Total
Assets:
Money market funds	$	11,846				$	11,846	$	12,742				$	12,742
Liabilities:
Earn-out liability				$	1,423	$	1,423				$	624	$	624

Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements

Charges related to fair value adjustments were $1,258 thousand, $355 thousand and $215 thousand for the fiscal years 2014, 2013 and 2012, respectively

As of January 3, 2015

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

1,423

Discounted cash

Projected royalties

$3,048

flow

(in thousands)

($669 – $3,613)

Discount rate

13.54%

(10.34% - 27.00%)

As of December 28, 2013

Fair Value
(in
thousands)

Valuation
Technique

Significant
Unobservable
Input

Weighted
Average
(range)

Earn-out liability

624

Discounted cash

Projected royalties

$1,463

flow

(in thousands)

($414 – $1,675)

Discount rate

21.61%

(20.52% - 27.00%)

Reconciliation of the Changes in the Company's Earn-Out - Cash (Level 3 Liabilities) Balance

The following table provides a reconciliation of the beginning and ending balances of the contingent consideration – cash (Level 3 liabilities) (in thousands):

Balance as of December 29, 2012	$	652
Payments against earn-out		(383	)
Change in fair value of earn-out liability		355
Balance as of December 28, 2013		624
Payments against earn-out		(459	)
Change in fair value of earn-out liability		1,258
Balance as of January 3, 2015	$	1,423

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details

Inventories (Tables)

12 Months Ended

Jan. 03, 2015

Inventory Disclosure [Abstract]

Components of Inventories

The components of the Company’s inventories are as follows (in thousands):

	FY 2014 January 3, 2015		FY 2013 December 28, 2013
Raw materials	$	3,966	$	5,922
Work in process		1,609		976
Finished goods		3,544		3,707
Total inventories	$	9,119	$	10,605

Property and Equipment (Tables)

12 Months Ended

Jan. 03, 2015

Property Plant And Equipment [Abstract]

Component of Property and Equipment

The components of the Company’s property and equipment are as follows (in thousands):

	FY 2014 January 3, 2015			FY 2013 December 28, 2013
Equipment	$	7,623		$	7,065
Leasehold improvements		2,309			2,299
Less: accumulated depreciation and amortization		(9,197	)		(8,821	)
Property and equipment, net	$	735		$	543

Intangible Assets (Tables)

12 Months Ended

Jan. 03, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Components of Purchased Intangible Assets

The components of the Company’s purchased intangible assets as of January 3, 2015 are as follows (in thousands):

	Useful Lives	FY 2014 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	76	$	164	10.25 Years
Patents	Varies		28		720		600		120	Varies
		$	44	$	960	$	676	$	284

The components of the Company’s purchased intangible assets as of December 28, 2013 are as follows (in thousands):

	Useful Lives	FY 2013 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	60	$	180	11.25 Years
Patents	Varies		210		720		572		148	Varies
		$	226	$	960	$	632	$	328

Estimated Future Amortization Expense for Purchased Intangible Assets

Estimated future amortization expense for purchased intangible assets is as follows (in thousands):

Fiscal Year:
2015	$	53
2016		99
2017		16
2018		16
2019		16
Thereafter		84
Total	$	284

Accrued Expenses (Tables)

12 Months Ended

Jan. 03, 2015

Payables And Accruals [Abstract]

Components of Accrued Expenses

The components of the Company’s accrued expenses are as follows (in thousands):

	FY 2014 January 3, 2015		FY 2013 December 28, 2013
Customer deposits	$	500	$	200
Earn-out – short term		382		184
Distributor commission		300		524
Sales and use tax payable		107		111
Royalties payable		36		32
Other accrued expenses		445		541
Total accrued expenses	$	1,770	$	1,592

Commitments and Contingencies (Tables)

12 Months Ended

Jan. 03, 2015

Commitments And Contingencies Disclosure [Abstract]

Future Minimum Lease Payments under Current Operating Leases

Future minimum lease payments under current operating leases at January 3, 2015 are summarized as follows (in thousands):

Fiscal Year	Operating Lease Payments
2015	$	858
2016		993
2017		164
Total future minimum lease payments	$	2,015

Future Minimum Payments for Manufacture and Supply Commitments

Future minimum payments for manufacture and supply commitments as of January 3, 2015 are summarized as follows (in thousands):

Fiscal Year	Contract Manufacturing and Supply Commitments
2015	$	6,171
2016		2,013
2017		750
Total contract manufacturing and supply commitments	$	8,934

Stockholders' Equity (Tables)

12 Months Ended

Jan. 03, 2015

Equity [Abstract]

Summary of Activity in Stock Option Plan

The following table summarizes information regarding activity in our stock option plans during the fiscal years ended 2014, 2013 and 2012 (in thousands except share and per share data):

				Outstanding Options
	Shares Available for Grant			Number of Shares			Aggregate Price			Weighted Average Exercise Price
Balances as of December 31, 2011		505,221			1,766,401		$	6,380		$	3.61
Additional shares reserved		391,166			—			—			—
Options granted		(335,050	)		335,050			1,313			3.92
Restricted stock granted		(66,665	)
Options exercised		—			(174,631	)		(445	)		2.55
Options cancelled		356,277			(356,277	)		(1,550	)		4.35
Options expired		(108,971)			—			—			—
Balances as of December 29, 2012		741,978			1,570,543			5,698			3.63
Additional shares reserved		52,128			—			—			—
Options granted		(149,600	)		149,600			851			5.69
Restricted stock granted		(234,012	)		—			—			—
Options exercised		—			(493,622	)		(1,495	)		3.03
Options cancelled		123,679			(123,679	)		(698	)		5.64
Options expired		(57,628)			—			—			—
Balances as of December 28, 2013		476,545			1,102,842			4,356			3.97
Additional shares reserved		503,306			—			—			—
Options granted		(158,300	)		158,300			1,362			8.61
Restricted stock granted		(62,225	)		—			—			—
Options exercised		—			(399,390	)		(1,501	)		3.76
Options cancelled		27,957			(27,957	)		(171	)		6.13
Awards cancelled		79,890			—			—			—
Options expired		(13,056	)		—			—			—
Balances as of January 3, 2015		854,117			833,795		$	4,046		$	4.88

Stock Options Outstanding and Exercisable

The following table summarizes information with respect to stock options outstanding and exercisable as of January 3, 2015:

	Options Outstanding						Options Vested and Exercisable
Range of Exercise Prices	Number of Shares Outstanding as of January 3, 2015		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Shares Exercisable as of January 3, 2015		Weighted Average Exercise Price
$0.90 - $3.07		96,025		1.12	$	1.70		96,025	$	1.70
$3.08 - $3.60		91,707		3.17	$	3.51		72,064	$	3.49
$3.72 - $3.75		33,250		3.83	$	3.72		22,000	$	3.73
$3.86 - $3.86		147,896		4.91	$	3.86		59,646	$	3.86
$3.89 - $4.31		140,325		3.12	$	4.12		112,521	$	4.15
$4.70 - $5.92		137,463		4.54	$	5.50		64,546	$	5.45
$6.00 - $8.58		122,129		5.92	$	7.91		25,131	$	7.45
$8.60 - $8.98		42,000		6.55	$	8.84		—	$	—
$9.34 - $9.34		20,000		6.18	$	9.34		—	$	—
$10.19 - $10.19		3,000		5.92	$	10.19		813	$	10.19
$0.90 - $10.19		833,795		4.14	$	4.88		452,746	$	3.85

Weighted Average Assumptions for Fair Value of Options Granted

The determination of the fair value of options granted by the Company is computed using the Black-Scholes option pricing model with the following weighted average assumptions:

	Employee Stock Option Plan
	FY 2014	FY 2013	FY 2012
Average risk free interest rate	1.49%	1.12%	0.68%
Expected life (in years)	4.50 years	4.50 years	4.55 years
Dividend yield	—	—	—
Average volatility	56.2%	71.5%	89.2%

Stock-Based Compensation Expense

The following table shows stock-based compensation expense by functional line item in the consolidated statements of operations for 2014, 2013 and 2012 (in thousands):

	FY 2014 Year Ended		FY 2013 Year Ended		FY 2012 Year Ended
	January 3, 2015		December 28, 2013		December 29, 2012
Cost of revenues	$	149	$	108	$	63
Research and development		105		71		77
Sales and marketing		118		113		105
General and administrative		600		397		143
Total stock-based compensation expense – continuing operations		972		689		388
Total stock-based compensation expense – discontinued operations		—		—		8
Total stock-based compensation expense	$	972	$	689	$	396

Stock Options Outstanding, Exercisable and Expected to Vest

Information regarding stock options outstanding, exercisable and expected to vest as of January 3, 2015 is summarized below:


	Number of			Weighted Average		Weighted Average Remaining Contractual		Aggregate Intrinsic Value
	Shares			Exercise Price		Life (years)		(thousands)
Options outstanding		833,795	$		4.88		4.14	$	3,139
Options vested and expected to vest		781,361	$		4.77		4.04	$	3,026
Options exercisable		452,746	$		3.85		3.01	$	2,158

Restricted Stock Units Outstanding, Vested and Expected to Vest

Information regarding the restricted stock units outstanding, vested and expected to vest as of January 3, 2015 is summarized below:

	Number of Shares		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (thousands)
Restricted stock units outstanding		277,390		0.59	$	2,388
Restricted stock units vested and expected to vest		196,858		0.23	$	1,695

Restricted Stock Units and Awards

Information regarding the restricted stock units activity during the year ended January 3, 2015, December 28, 2013 and December 29, 2012 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2011		90,189		$	3.49
Restricted stock units granted		55,999		$	3.85
Restricted stock units released		(15,189	)	$	3.95
Restricted stock units forfeited		(75,000	)	$	3.40
Outstanding as of December 29, 2012		55,999		$	3.85
Restricted stock units granted		230,509		$	4.51
Restricted stock units released		(17,249	)	$	3.77
Outstanding as of December 28, 2013		269,259		$	4.42
Restricted stock units granted		59,780		$	9.76
Restricted stock units released		(46,759	)	$	9.29
Restricted stock units forfeited		(4,890	)	$	8.18
Outstanding as of January 3, 2015		277,390		$	4.68

Information regarding the restricted stock awards activity during the year ended January 3, 2015, December 28, 2013 and December 29, 2012 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2011		10,126		$	3.95
Restricted stock awards granted		10,666			3.75
Restricted stock awards released		(10,126	)	$	3.95
Outstanding as of December 29, 2012		10,666		$	3.75
Restricted stock awards granted		3,503		$	5.71
Restricted stock awards released		(10,666	)	$	3.75
Outstanding as of December 28, 2013		3,503		$	5.71
Restricted stock awards granted		2,445		$	8.18
Restricted stock awards released		(3,503	)	$	5.71
Outstanding as of January 3, 2015		2,445		$	8.18

Income Taxes (Tables)

12 Months Ended

Jan. 03, 2015

Income Tax Disclosure [Abstract]

Pre-Tax Book Income (Loss) from Continuing Operations

Pre-tax book income (loss) from continuing operations was comprised of the following:

	FY 2014 Year Ended January 3, 2015		FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
United States	$	1,332	$	2,262	$	(270	)
Foreign		—		—		—
Total	$	1,332	$	2,262	$	(270	)

(Benefit from) Provision for Income Taxes from Continuing Operations

The (benefit from) provision for income taxes from continuing operations includes:

	FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
Current:
Federal	$	54		$	11	$	(114	)
State		16			20		14
		70			31		(100	)
Deferred:
Federal		(7,862	)		—		—
State		(914	)		—		—
		(8,776	)		—		—
(Benefit from) provision for income taxes	$	(8,706	)	$	31	$	(100	)

Company's Effective Tax Rate Differs from the Statutory Federal Income Tax Rate

The Company’s effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013			FY 2012 Year Ended December 29, 2012
Income tax provision at statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal benefit		(68.0	%)		(13.3	%)		(88.1	%)
Permanent differences		(1.1	%)		(17.0	%)		(89.1	%)
Research and development credits		(2.6	%)		0.0	%		0.0	%
Change in valuation allowance		(613.5	%)		(2.3	%)		180.3	%
Other		(2.4	%)		0.0	%		0.0	%
Effective tax rate		(653.6	%)		1.4	%		37.1	%

Tax Effect of Temporary Differences and Carryforwards that Give Rise to Significant Portions of the Net Deferred Tax Assets

The tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets are presented below (in thousands):

	FY 2014 January 3, 2015			FY 2013 December 28, 2013
Accruals and reserves	$	1,681		$	1,792
Deferred revenue		113			91
Fixed assets		439			423
Intangibles		825			441
Stock compensation		676			696
Net operating loss		4,278			5,224
Research and development credits		1,575			1,260
Other tax credits		94			47
Net deferred tax asset	$	9,681		$	9,974
Valuation allowance		(905	)		(9,974	)
Net deferred tax assets	$	8,776		$	—

A Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	FY 2014 Year Ended January 3, 2015			FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
Balance at the beginning of the year	$	1,027		$	954	$	1,191
Additions based upon tax positions related to the current year		53			48		36
Additions based upon tax positions related to the prior year		51			25		—
Reductions based upon tax positions related to the prior year		(270	)		—		(273	)
Balance at the end of the year	$	861		$	1,027	$	954

Business Segments and Customers (Tables)

12 Months Ended

Jan. 03, 2015

Segment Reporting [Abstract]

Revenue Information by Geographic Region

Revenue information shown by geographic region is as follows (in thousands):

	FY 2014 Year Ended January 3, 2015		FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
United States	$	22,590	$	21,043	$	18,496
Europe		9,096		7,345		7,468
Rest of Americas		3,199		3,309		2,335
Asia/Pacific Rim		7,929		6,576		5,560
	$	42,814	$	38,273	$	33,859

Computation of Basic and Diluted Net Income (Loss) Per Common Share (Tables)

12 Months Ended

Jan. 03, 2015

Earnings Per Share [Abstract]

Reconciliation of Numerator and Denominator of Basic and Diluted Net Income (Loss) Per Common Share

A reconciliation of the numerator and denominator of basic and diluted net income (loss) per common share is provided as follows (in thousands, except per share amounts):

	FY 2014 Year Ended January 3, 2015		FY 2013 Year Ended December 28, 2013		FY 2012 Year Ended December 29, 2012
Numerator:
Income (loss) from continuing operations	$	10,038	$	2,231	$	(170	)
Income from discontinued operations		—		—		1,608
Net income	$	10,038	$	2,231	$	1,438
Denominator:
Weighted average shares of common stock (basic)		9,892		9,245		8,935
Effect of dilutive preferred shares		—		448		—
Effect of dilutive stock options		291		291		—
Effect of dilutive contingent shares		174		120		—
Weighted average shares of common stock (diluted)		10,357		10,104		8,935
Per share data:
Basic net income (loss) per share:
Net income (loss) before discontinued operations	$	1.01	$	0.24	$	(0.02	)
Discontinued operations		0.00		0.00		0.18
Net income	$	1.01	$	0.24	$	0.16
Diluted net income (loss) per share:
Net income (loss) before discontinued operations	$	0.97	$	0.22	$	(0.02	)
Discontinued operations		0.00		0.00		0.18
Net income	$	0.97	$	0.22	$	0.16

Summary of Significant Accounting Policies - Summary of Activities for Discontinued Operations (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012
Summary of activities for discontinued operations
Total revenues	$ 1,630
Income (loss) from discontinued operations	(325)
Gain on sales of aesthetics business	1,149
Income from discontinued operations, before income taxes	824
Income tax (benefit) expense	(784)
Income from discontinued operations, net of tax	$ 1,608

- Definition

Overall income (loss) from a disposal group that is classified as a component of the entity, before income tax, reported as a separate component of income before extraordinary items. Includes the following (before income tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References+ Details

- Definition

Tax effect allocated to a disposal group that is classified as a component of the entity reported as a separate component of income before extraordinary items. Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References+ Details

Summary of Significant Accounting Policies - Additional Information (Details) (USD $)	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Disclosure Summary Of Significant Accounting Policies [Line Items]
Restricted cash			$ 510,000
Percentage of purchase price to be deposited in escrow account			10.00%
Provision of sales returns	47,000	33,000
Gross value of demos and loaners	1,400,000	1,600,000
Accumulated amortization on inventory demos and loaners	524,000	601,000
Estimated useful life of demos and loaners	4 years
Estimated useful lives of the assets		3 years
Products warranty period	2 years
Shipping and handling costs	300,000	300,000	300,000
Advertising and promotion costs	200,000	100,000	200,000
Release of deferred tax assets valuation allowance	(9,200,000)
Accrued interest and penalty incurred	$ 0
Customer accounted percentage of net accounts receivable balance	13.00%	10.00%
Revenue, Total \| Customer Concentration Risk
Disclosure Summary Of Significant Accounting Policies [Line Items]
Number of customer accounted for total revenues and net accounts receivable	0	0	0
Customer accounted percentage of total revenues	10.00%	10.00%	10.00%
Accounts Receivable \| Credit Concentration Risk
Disclosure Summary Of Significant Accounting Policies [Line Items]
Number of customer accounted for total revenues and net accounts receivable	1	0

Summary of Significant Accounting Policies - Reconciliation of Changes in Deferred Revenue (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013
Reconciliation of the changes in the Company's deferred revenue balance
Balance, beginning of period	$ 1,133	$ 1,004
Additions to deferral	1,514	1,383
Revenue recognized	(1,468)	(1,254)
Balance, end of period	$ 1,179	$ 1,133

Summary of Significant Accounting Policies - Reconciliation of Changes in Warranty Liability (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013
Reconciliation of the changes in the Company's warranty liability
Balance, beginning of period	$ 468	$ 453
Accruals for product warranties	313	213
Cost of warranty claims	(312)	(198)
Balance, end of period	$ 469	$ 468

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for estimated claims under standard and extended warranty protection rights granted to customers. For classified balance sheets, represents the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

Fair Value Measurement - Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Money Market Funds
Assets:
Assets, Fair Value Measurements	$ 11,846	$ 12,742
Level 1 \| Money Market Funds
Assets:
Assets, Fair Value Measurements	11,846	12,742
Earn Out Liability
Liabilities:
Liabilities, Fair Value Measurements	1,423	624
Earn Out Liability \| Level 3
Liabilities:
Liabilities, Fair Value Measurements	$ 1,423	$ 624

Fair Value Measurement - Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013
Earn Out Liability
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Liabilities, Fair Value Measurements	$ 1,423	$ 624
Level 3 \| Earn Out Liability
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Liabilities, Fair Value Measurements	1,423	624
Level 3 \| Discounted Cash Flow
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Valuation Technique, Earn-out liability	Discounted cash flow	Discounted cash flow
Level 3 \| Discounted Cash Flow \| Weighted Average
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Weighted Average, Projected royalties	3,048	1,463
Weighted Average, Discount rate	13.54%	21.61%
Level 3 \| Discounted Cash Flow \| Minimum
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Weighted Average, Projected royalties	669	414
Weighted Average, Discount rate	10.34%	20.52%
Level 3 \| Discounted Cash Flow \| Maximum
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Weighted Average, Projected royalties	3,613	1,675
Weighted Average, Discount rate	27.00%	27.00%
Level 3 \| Discounted Cash Flow \| Earn Out Liability
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Liabilities, Fair Value Measurements	$ 1,423	$ 624

Fair Value Measurement - Reconciliation of the Changes in the Company's Earn-Out - Cash (Level 3 Liabilities) Balance (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Reconciliation of the changes in the Company's earn-out - cash (Level 3 liabilities) balance
Balance at the beginning of the period	$ 624	$ 652
Payments against earn-out	(459)	(383)
Change in fair value of earn-out liability	1,258	355	215
Balance at the end of the period	$ 1,423	$ 624	$ 652

Inventories (Details) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 3,966	$ 5,922
Work in process	1,609	976
Finished goods	3,544	3,707
Total inventories	$ 9,119	$ 10,605

- Definition

Carrying amount, net of reserves and adjustments, as of the balance sheet date of merchandise or goods which are partially completed. This inventory is generally comprised of raw materials, labor and factory overhead costs, which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing.

+ References+ Details

Property and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Component of property and equipment
Less: accumulated depreciation and amortization	$ (9,197)	$ (8,821)
Property and equipment, net	735	543
Equipment
Component of property and equipment
Property and equipment, gross	7,623	7,065
Leasehold Improvements
Component of property and equipment
Property and equipment, gross	$ 2,309	$ 2,299

Goodwill (Details Textual) (USD $)	12 Months Ended
Goodwill (Details Textual) (USD $)	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying value of goodwill	$ 533,000	$ 533,000
Impairment of goodwill	$ 0	$ 0	$ 0

Intangible Assets - Components of Purchased Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Components of purchased intangible assets
Annual Amortization	$ 44	$ 226	$ 191
Gross Carrying Value	960	960
Accumulated Amortization	676	632
Net Carrying Value	284	328
Customer Relations
Components of purchased intangible assets
Useful Lives	15 years	15 years
Useful Lives Remaining	10 years 3 months	11 years 3 months
Annual Amortization	16	16
Gross Carrying Value	240	240
Accumulated Amortization	76	60
Net Carrying Value	164	180
Patents
Components of purchased intangible assets
Annual Amortization	28	210
Gross Carrying Value	720	720
Accumulated Amortization	600	572
Net Carrying Value	$ 120	$ 148
Useful Lives Remaining	Varies	Varies

Intangible Assets - Intangible Assets (Details Textual) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 44	$ 226	$ 191

Intangible Assets - Estimated Future Amortization Expense for Purchased Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Estimated future amortization expense for purchased intangible assets
2015	$ 53
2016	99
2017	16
2018	16
2019	16
Thereafter	84
Net Carrying Value	$ 284	$ 328

Accrued Expenses - Components of Accrued Expenses (Details) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Components of accrued expenses
Customer deposits	$ 500	$ 200
Earn-out – short term	382	184
Distributor commission	300	524
Sales and use tax payable	107	111
Royalties payable	36	32
Other accrued expenses	445	541
Total accrued expenses	$ 1,770	$ 1,592

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for royalties. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for sales commissions. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

Commitments and Contingencies (Details Textual) (USD $)	12 Months Ended
Commitments and Contingencies (Details Textual) (USD $)	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Commitments And Contingencies Disclosure [Abstract]
Lease renewal period	6 years
Rent expense	$ 600,000	$ 600,000	$ 600,000
Lease expiration date	Feb. 28, 2017
Annual minimum purchase commitment	750,000
Purchases made under agreement	678,000
Deficient amount under purchase agreement	72,000
Royalties pay equivalent to Percentage of sales	5.00%
Royalty expense	$ 200,000	$ 100,000	$ 100,000
Early termination date of certain license agreement	2018
Late termination date of certain license agreement	2021

Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015
Future minimum lease payments under current operating leases
2015	$ 858
2016	993
2017	164
Total future minimum lease payments	$ 2,015

Commitments and Contingencies (Details 1) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015
Future minimum payments for manufacturing and supply commitments
2015	$ 6,171
2016	2,013
2017	750
Total contract manufacturing and supply commitments	$ 8,934

Stockholders' Equity (Details Textual) (USD $)	0 Months Ended	1 Months Ended	12 Months Ended								12 Months Ended			0 Months Ended	12 Months Ended	0 Months Ended	1 Months Ended		12 Months Ended	1 Months Ended
Stockholders' Equity (Details Textual) (USD $)	Jun. 11, 2013	Aug. 31, 2007	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012	Jan. 03, 2015 Restricted Stock Units (RSUs)	Dec. 28, 2013 Restricted Stock Units (RSUs)	Dec. 29, 2012 Restricted Stock Units (RSUs)	Dec. 31, 2011 Restricted Stock Units (RSUs)	Jan. 02, 2015 Restricted Stock Units (RSUs)	Dec. 28, 2013 1998 Stock Plan	Jan. 03, 2015 1998 Stock Plan	Dec. 28, 2013 2008 Equity Incentive Plan	Mar. 25, 2013 Award One Restricted Stock Units (RSUs)	Jan. 03, 2015 Award One Restricted Stock Units (RSUs)	Mar. 25, 2013 Award Two Restricted Stock Units (RSUs)	Jan. 31, 2014 Award Two Restricted Stock Units (RSUs)	Aug. 31, 2007 Common Stock	Dec. 28, 2013 Common Stock	Aug. 31, 2007 Series A Preferred Stock
Undesignated Preferred stock authorized			2,000,000	2,000,000																500,000
Preferred stock Par value			$ 0.01	$ 0.01																$ 0.01
Convertible preferred stock, shares issued			0	0																500,000
Preferred stock conversion to common stock, share																		1,000,000	1,000,000
Warrants to purchase common stock		600,000
Exercise price of warrants		$ 0.01
Warrants expiration date		Dec. 31, 2007
Unit preferred stock																				1
Warrants to purchase number of common stock		1.2
Purchase price of preferred stock and warrants		$ 10.00
Proceeds from common stock																				$ 4,900,000
Proceeds allocated to common stock warrants		2,300,000
Common stock converted from Series A Preferred Stock, shares	1,000,000
Voting rights on outstanding capital stock											10.00%
Exercise price of option											110.00%
Term of incentive stock options for major stock holders											5 years
Exercisable period			3 years 4 days								4 years
Maximum term of incentive stock options granted											10 years
Repurchase of shares											0	0
Expiration date of option Plan											2008-02
Grant of non-qualified stock option													300,000
Shares reserved			1,687,912
Weighted-average grant date fair value of the options granted			$ 4.02	$ 3.16	$ 2.60
Total intrinsic value of options exercised			1,900,000	1,500,000	261,000
Total unrecognized compensation cost related to non-vested share-based compensation arrangements			1,200,000
Cost is expected to be recognized over a weighted average period			2 years 5 months 9 days
Excess tax benefits from stock-based awards			36,000
Grant of non-qualified stock option									20,000
The intrinsic value of the restricted stock units										$ 8.61
Period consider for calculation of average stock price performance prior awards vesting															2 months		2 months
Period consider for calculation of average stock price performance after awards vesting															2 months		2 months
Restricted stock units granted			62,225	234,012	66,665	59,780	230,509	55,999						220,000			50,000
Options vested and expected to vest, Weighted Average Exercise Price			$ 4.77														$ 11.00
Total value of Market Performance Award														$ 258,000		$ 234,000

Stockholders' Equity - Summary of Activity in Stock Option Plan (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]
Shares Available for Grant, Beginning Balance	476,545	741,978	505,221
Shares Available for Grant, Additional shares reserved	503,306	52,128	391,166
Shares Available for Grant, Options granted	(158,300)	(149,600)	(335,050)
Shares Available for Grant, Restricted stock granted	(62,225)	(234,012)	(66,665)
Shares Available for Grant, Options cancelled	27,957	123,679	356,277
Shares Available for Grant, Awards cancelled	79,890
Shares Available for Grant, Options expired	(13,056)	(57,628)	(108,971)
Shares Available for Grant, Ending Balance	854,117	476,545	741,978
Outstanding, Number of Shares, Beginning Balance	1,102,842	1,570,543	1,766,401
Number of Shares, Options granted	158,300	149,600	335,050
Number of Shares, Options exercised	(399,390)	(493,622)	(174,631)
Number of Shares, Options cancelled	(27,957)	(123,679)	(356,277)
Number of Shares, Ending Balance	833,795	1,102,842	1,570,543
Aggregate Price, Beginning Balance	$ 4,356	$ 5,698	$ 6,380
Aggregate Price, Options granted	1,362	851	1,313
Aggregate Price, Options exercised	(1,501)	(1,495)	(445)
Aggregate Price, Options cancelled	(171)	(698)	(1,550)
Aggregate Price, Ending Balance	$ 4,046	$ 4,356	$ 5,698
Weighted Average Exercise Price, Beginning Balance	$ 3.97	$ 3.63	$ 3.61
Weighted Average Exercise Price, Options granted	$ 8.61	$ 5.69	$ 3.92
Weighted Average Exercise Price, Options exercised	$ 3.76	$ 3.03	$ 2.55
Weighted Average Exercise Price, Options cancelled	$ 6.13	$ 5.64	$ 4.35
Weighted Average Exercise Price, Ending Balance	$ 4.88	$ 3.97	$ 3.63

Stockholders' Equity (Details 1) (USD $)	12 Months Ended
Stockholders' Equity (Details 1) (USD $)	Jan. 03, 2015
Range One
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 0.90
Range of Exercise Prices, Upper Range Limit	$ 3.07
Options Outstanding, Number of Shares	96,025
Options Outstanding, Weighted Average Remaining Contractual Life (years)	1 year 1 month 13 days
Options Outstanding, Weighted Average Exercise Price	$ 1.70
Options Vested and Exercisable, Number of Shares Exercisable	96,025
Options Vested and Exercisable, Weighted Average Exercise Price	$ 1.70
Range Two
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 3.08
Range of Exercise Prices, Upper Range Limit	$ 3.60
Options Outstanding, Number of Shares	91,707
Options Outstanding, Weighted Average Remaining Contractual Life (years)	3 years 2 months 1 day
Options Outstanding, Weighted Average Exercise Price	$ 3.51
Options Vested and Exercisable, Number of Shares Exercisable	72,064
Options Vested and Exercisable, Weighted Average Exercise Price	$ 3.49
Range Three
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 3.72
Range of Exercise Prices, Upper Range Limit	$ 3.75
Options Outstanding, Number of Shares	33,250
Options Outstanding, Weighted Average Remaining Contractual Life (years)	3 years 9 months 29 days
Options Outstanding, Weighted Average Exercise Price	$ 3.72
Options Vested and Exercisable, Number of Shares Exercisable	22,000
Options Vested and Exercisable, Weighted Average Exercise Price	$ 3.73
Range Four
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 3.86
Range of Exercise Prices, Upper Range Limit	$ 3.86
Options Outstanding, Number of Shares	147,896
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 10 months 28 days
Options Outstanding, Weighted Average Exercise Price	$ 3.86
Options Vested and Exercisable, Number of Shares Exercisable	59,646
Options Vested and Exercisable, Weighted Average Exercise Price	$ 3.86
Range Five
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 3.89
Range of Exercise Prices, Upper Range Limit	$ 4.31
Options Outstanding, Number of Shares	140,325
Options Outstanding, Weighted Average Remaining Contractual Life (years)	3 years 1 month 13 days
Options Outstanding, Weighted Average Exercise Price	$ 4.12
Options Vested and Exercisable, Number of Shares Exercisable	112,521
Options Vested and Exercisable, Weighted Average Exercise Price	$ 4.15
Range Six
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 4.70
Range of Exercise Prices, Upper Range Limit	$ 5.92
Options Outstanding, Number of Shares	137,463
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 6 months 15 days
Options Outstanding, Weighted Average Exercise Price	$ 5.50
Options Vested and Exercisable, Number of Shares Exercisable	64,546
Options Vested and Exercisable, Weighted Average Exercise Price	$ 5.45
Range Seven
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 6.0
Range of Exercise Prices, Upper Range Limit	$ 8.58
Options Outstanding, Number of Shares	122,129
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 11 months 1 day
Options Outstanding, Weighted Average Exercise Price	$ 7.91
Options Vested and Exercisable, Number of Shares Exercisable	25,131
Options Vested and Exercisable, Weighted Average Exercise Price	$ 7.45
Range Eight
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 8.60
Range of Exercise Prices, Upper Range Limit	$ 8.98
Options Outstanding, Number of Shares	42,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	6 years 6 months 18 days
Options Outstanding, Weighted Average Exercise Price	$ 8.84
Range Nine
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 9.34
Range of Exercise Prices, Upper Range Limit	$ 9.34
Options Outstanding, Number of Shares	20,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	6 years 2 months 5 days
Options Outstanding, Weighted Average Exercise Price	$ 9.34
Range Ten
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 10.19
Range of Exercise Prices, Upper Range Limit	$ 10.19
Options Outstanding, Number of Shares	3,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 11 months 1 day
Options Outstanding, Weighted Average Exercise Price	$ 10.19
Options Vested and Exercisable, Number of Shares Exercisable	813
Options Vested and Exercisable, Weighted Average Exercise Price	$ 10.19
Range Eleven
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 0.90
Range of Exercise Prices, Upper Range Limit	$ 10.19
Options Outstanding, Number of Shares	833,795
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 1 month 21 days
Options Outstanding, Weighted Average Exercise Price	$ 4.88
Options Vested and Exercisable, Number of Shares Exercisable	452,746
Options Vested and Exercisable, Weighted Average Exercise Price	$ 3.85

Stockholders' Equity - Weighted Average Assumptions for Fair Value of Options Granted (Details)	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Weighted average assumptions for fair value of options granted
Average risk free interest rate	1.49%	1.12%	0.68%
Expected life (in years)	4 years 6 months	4 years 6 months	4 years 6 months 18 days
Average volatility	56.20%	71.50%	89.20%

Stockholders' Equity - Stock-Based Compensation Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 972	$ 689	$ 396
Continuing Operations
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	972	689	388
Discontinued Operations
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense			8
Cost of revenues \| Continuing Operations
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	149	108	63
Research and development \| Continuing Operations
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	105	71	77
Sales and marketing \| Continuing Operations
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	118	113	105
General and administrative \| Continuing Operations
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 600	$ 397	$ 143

Stockholders' Equity - Stock Options Outstanding, Exercisable and Expected to Vest (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Stock options outstanding, exercisable and expected to vest
Options outstanding, Number of Shares	833,795	1,102,842	1,570,543	1,766,401
Options outstanding, Weighted Average Exercise Price	$ 4.88	$ 3.97	$ 3.63	$ 3.61
Options outstanding, Weighted Average Remaining Contractual Life (years)	4 years 1 month 21 days
Options exercisable, Aggregate Intrinsic Value	$ 3,139
Options vested and expected to vest, Number of Shares	781,361
Options vested and expected to vest, Weighted Average Exercise Price	$ 4.77
Options vested and expected to vest, Weighted Average Remaining Contractual Life (years)	4 years 15 days
Options exercisable, Aggregate Intrinsic Value	3,026
Options exercisable, Number of Shares	452,746
Options vested and expected to vest, Weighted Average Exercise Price	$ 3.85
Exercisable period	3 years 4 days
Options exercisable, Aggregate Intrinsic Value	$ 2,158

Stockholders' Equity (Details 5) (Restricted Stock Units (RSUs), USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Restricted Stock Units (RSUs)
Restricted stock units outstanding, vested and expected to vest
Restricted stock units outstanding, Number of Shares	277,390	269,259	55,999	90,189
Restricted stock units outstanding, Weighted Average Remaining Contractual Life (years)	7 months 2 days
Restricted stock units outstanding, Aggregate Intrinsic Value	$ 2,388
Restricted stock units vested and expected to vest, Number of Shares	196,858
Restricted stock units vested and expected to vest, Weighted Average Remaining Contractual Life (years)	6 months 29 days
Restricted stock units vested and expected to vest, Aggregate Intrinsic Value	$ 1,695

Stockholders' Equity - Restricted Stock Units and Awards (Details) (USD $)	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Restricted stock units and awards
Number of Shares, Restricted stock granted	62,225	234,012	66,665
Restricted Stock Units (RSUs)
Restricted stock units and awards
Number of Shares, Beginning Balance	269,259	55,999	90,189
Number of Shares, Restricted stock granted	59,780	230,509	55,999
Number of Shares, Restricted stock released	(46,759)	(17,249)	(15,189)
Number of Shares, Restricted stock forfeited	(4,890)		(75,000)
Number of Shares, Ending Balance	277,390	269,259	55,999
Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance	$ 4.42	$ 3.85	$ 3.49
Weighted Average Grant Date Fair Value, Restricted stock granted	$ 9.76	$ 4.51	$ 3.85
Weighted Average Grant Date Fair Value, Restricted stock released	$ 9.29	$ 3.77	$ 3.95
Weighted Average Grant Date Fair Value, Restricted stock forfeited	$ 8.18		$ 3.40
Outstanding, Weighted Average Grant Date Fair Value, Ending Balance	$ 4.68	$ 4.42	$ 3.85
Restricted Stock Awards
Restricted stock units and awards
Number of Shares, Beginning Balance	3,503	10,666	10,126
Number of Shares, Restricted stock granted	2,445	3,503	10,666
Number of Shares, Restricted stock released	(3,503)	(10,666)	(10,126)
Number of Shares, Ending Balance	2,445	3,503	10,666
Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance	$ 5.71	$ 3.75	$ 3.95
Weighted Average Grant Date Fair Value, Restricted stock granted	$ 8.18	$ 5.71	$ 3.75
Weighted Average Grant Date Fair Value, Restricted stock released	$ 5.71	$ 3.75	$ 3.95
Outstanding, Weighted Average Grant Date Fair Value, Ending Balance	$ 8.18	$ 5.71	$ 3.75

Employee Benefit Plan (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan Employee Contribution Percentage	15.00%
Employee contributions to plan in percentage			50.00%
Total matching contributions made by the company	$ 186	$ 170
Maximum
Defined Benefit Plan Disclosure [Line Items]
Employee contributions to plan			$ 3

Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Pre-tax book (loss) income from continuing operations
United States	$ 1,332	$ 2,262	$ (270)
Income (loss) from continuing operations before (benefit from) provision for income taxes	$ 1,332	$ 2,262	$ (270)

Income Taxes (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Current:
Federal	$ 54	$ 11	$ (114)
State	16	20	14
Total	70	31	(100)
Deferred:
Federal	(7,862)
State	(914)
Total	(8,776)
(Benefit from) provision for income taxes	$ (8,706)	$ 31	$ (100)

- Definition

Amount of current federal tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

- Definition

Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.

+ References+ Details

- Definition

Amount of current state and local tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

- Definition

Amount of deferred federal income tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

- Definition

Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

- Definition

Amount of deferred state and local tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Income Taxes (Details 2)	12 Months Ended
Income Taxes (Details 2)	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Company's effective tax rate differs from the statutory federal income tax rate
Income tax provision at statutory rate	34.00%	34.00%	34.00%
State income taxes, net of federal benefit	(68.00%)	(13.30%)	(88.10%)
Permanent differences	(1.10%)	(17.00%)	(89.10%)
Research and development credits	(2.60%)	0.00%	0.00%
Change in valuation allowance	(613.50%)	(2.30%)	180.30%
Other	(2.40%)	0.00%	0.00%
Effective tax rate	(653.60%)	1.40%	37.10%

Income Taxes (Details 3) (USD $) In Thousands, unless otherwise specified	Jan. 03, 2015	Dec. 28, 2013
Tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets
Accruals and reserves	$ 1,681	$ 1,792
Deferred revenue	113	91
Fixed assets	439	423
Intangibles	825	441
Stock compensation	676	696
Net operating loss	4,278	5,224
Research and development credits	1,575	1,260
Other tax credits	94	47
Net deferred tax asset	9,681	9,974
Valuation allowance	(905)	(9,974)
Net deferred tax assets	$ 8,776

Income Taxes (Details Textual) (USD $)	12 Months Ended				12 Months Ended		3 Months Ended	12 Months Ended
Income Taxes (Details Textual) (USD $)	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Jan. 03, 2015 Earliest Tax Year	Jan. 03, 2015 Latest Tax Year	Jan. 03, 2015 Federal	Jan. 03, 2015 Federal	Jan. 03, 2015 State
Income Taxes [Line Items]
Release of deferred tax assets valuation allowance	$ (9,200,000)						$ (9,200,000)
Net operating loss							12,500,000	12,500,000	14,500,000
Stock option deduction							2,000,000	2,000,000	2,100,000
Net operating loss expiration year								2032	2020
Research credit							1,300,000	1,300,000	1,900,000
Tax credit carryforward expiration year								2026
Accrued interest and penalties	0
Ending balance of unrecognized tax benefits	861,000	1,027,000	954,000	1,191,000
Unrecognized tax benefits recognition impact on income tax rate	$ 861,000
Open Tax Year					2009	2014

Income Taxes (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
A reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance at the beginning of the year	$ 1,027	$ 954	$ 1,191
Additions based upon tax positions related to the current year	53	48	36
Additions based upon tax positions related to the prior year	51	25
Reductions based upon tax positions related to the prior year	(270)		(273)
Balance at the end of the year	$ 861	$ 1,027	$ 954

Business Segments and Customers (Details Textual) (USD $)	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Segment Reporting Information [Line Items]
Number of operating segments	1
Long-lived assets	$ 0	$ 0
Customer Concentration Risk \| Revenue, Total
Segment Reporting Information [Line Items]
Percentage of revenues accounted	10.00%	10.00%	10.00%
United States \| Customer Concentration Risk \| Revenue, Total
Segment Reporting Information [Line Items]
Percentage of revenues accounted	52.80%	55.00%	54.60%

Business Segments and Customers - Revenue Information by Geographic Region (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	$ 42,814	$ 38,273	$ 33,859
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	22,590	21,043	18,496
Europe
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	9,096	7,345	7,468
Rest of Americas
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	3,199	3,309	2,335
Asia/Pacific Rim
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	$ 7,929	$ 6,576	$ 5,560

Computation of Basic and Diluted Net Income (Loss) Per Common Share - Reconciliation of Numerator and Denominator of Basic and Diluted Net Income (Loss) Per Common Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Numerator:
Income (loss) from continuing operations	$ 10,038	$ 2,231	$ (170)
Income from discontinued operations, net of tax			1,608
Net income	$ 10,038	$ 2,231	$ 1,438
Denominator:
Weighted average shares of common stock (basic)	9,892	9,245	8,935
Effect of dilutive preferred shares		448
Effect of dilutive stock options	291	291
Effect of dilutive contingent shares	174	120
Weighted average shares of common stock (diluted)	10,357	10,104	8,935
Basic net income (loss) per share:
Net income (loss) before discontinued operations	$ 1.01	$ 0.24	$ (0.02)
Discontinued operations	$ 0.00	$ 0.00	$ 0.18
Net income	$ 1.01	$ 0.24	$ 0.16
Diluted net income (loss) per share:
Net income (loss) before discontinued operations	$ 0.97	$ 0.22	$ (0.02)
Discontinued operations	$ 0.00	$ 0.00	$ 0.18
Net income	$ 0.97	$ 0.22	$ 0.16

Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details Textual)	12 Months Ended
	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Stock option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares that were excluded from the computation of diluted weighted average shares outstanding	116,320	156,564	1,570,543
Convertible Debt Securities [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares that were excluded from the computation of diluted weighted average shares outstanding			1,000,000
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares that were excluded from the computation of diluted weighted average shares outstanding			66,665

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

Subsequent Events (Details Textual)	12 Months Ended				1 Months Ended
Subsequent Events (Details Textual)	Jan. 03, 2015 Restricted Stock Units (RSUs)	Dec. 28, 2013 Restricted Stock Units (RSUs)	Dec. 29, 2012 Restricted Stock Units (RSUs)	Jan. 03, 2015 Restricted Stock Units (RSUs) Market Performance Award #1	Jan. 31, 2014 Restricted Stock Units (RSUs) Market Performance Award #2	Mar. 31, 2015 Subsequent Event	Mar. 31, 2015 Subsequent Event Restricted Stock Units (RSUs) Market Performance Award #1	Mar. 31, 2015 Subsequent Event Restricted Stock Units (RSUs) Market Performance Award #2
Subsequent Event [Line Items]
Period consider for calculation of average stock price performance prior awards vesting				2 months	2 months	2 months
Period consider for calculation of average stock price performance after awards vesting				2 months	2 months	2 months
Number of Shares, Restricted stock awards released	46,759	17,249	15,189				190,000	0
Number of Shares, Restricted stock units cancelled	4,890		75,000				30,000	50,000

Organization (Details Textual)	Jan. 03, 2015 Country Distributor
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of distributors	70
Number of countries	100

Goodwill	12 Months Ended
Goodwill	Jan. 03, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	6. Goodwill The carrying value of goodwill was $0.5 million as of January 3, 2015 and December 28, 2013. Goodwill is tested for impairment at least annually or whenever there is a change in circumstances that indicates the carrying value of these assets may be impaired. The determination of whether any potential impairment of goodwill exists is based upon a two-step impairment test performed in accordance with ASC 350. There was no impairment of goodwill recognized during fiscal years 2014, 2013 or 2012.