Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Mar. 07, 2017	Jul. 02, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	IRIDEX CORP
Entity Central Index Key	0001006045
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Trading Symbol	IRIX
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Accelerated Filer
Entity Public Float			$ 98,053,088
Entity Common Stock, Shares Outstanding		11,523,447

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 23,747	$ 9,995
Accounts receivable, net of allowance for doubtful accounts of $230 as of December 31, 2016 and $140 as of January 2, 2016	10,025	9,282
Inventories	11,643	11,106
Prepaid expenses and other current assets	450	386
Total current assets	45,865	30,769
Property and equipment, net	1,534	1,104
Intangible assets, net	132	268
Goodwill	533	533
Deferred income taxes		8,985
Other long-term assets	80	164
Total assets	48,144	41,823
Current liabilities:
Accounts payable	1,994	2,223
Accrued compensation	2,346	1,572
Accrued expenses	2,135	1,722
Accrued warranty	603	603
Deferred revenue	1,383	1,311
Total current liabilities	8,461	7,431
Long-term liabilities:
Other long-term liabilities	523	704
Total liabilities	8,984	8,135
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.01 par value: Authorized: 30,000,000 shares; Issued and outstanding 11,304,736 and 10,009,408 shares as of December 31, 2016 and January 2, 2016, respectively	124	111
Additional paid-in capital	55,158	37,986
Accumulated deficit	(16,122)	(4,409)
Total stockholders’ equity	39,160	33,688
Total liabilities and stockholders’ equity	$ 48,144	$ 41,823

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 230	$ 140
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	11,304,736	10,009,408
Common stock, shares outstanding	11,304,736	10,009,408

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Statement [Abstract]
Total revenues	$ 46,158	$ 41,757	$ 42,814
Cost of revenues	25,319	21,804	21,409
Gross profit	20,839	19,953	21,405
Operating expenses:
Research and development	5,365	5,214	4,629
Sales and marketing	10,281	8,901	8,155
General and administrative	7,638	5,550	6,034
Impairment of intangible assets	120
Total operating expenses	23,404	19,665	18,818
(Loss) income from operations	(2,565)	288	2,587
Other (expense) income, net	(91)	3	(1,255)
(Loss) income from operations before provision for (benefit from) income taxes	(2,656)	291	1,332
Provision for (benefit from) income taxes	9,057	(183)	(8,706)
Net (loss) income	$ (11,713)	$ 474	$ 10,038
Net (loss) income per share:
Basic	$ (1.15)	$ 0.05	$ 1.01
Diluted	$ (1.15)	$ 0.05	$ 0.97
Weighted average shares used in computing net (loss) income per common share:
Basic	10,173	9,962	9,892
Diluted	10,173	10,128	10,357

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (11,713)	$ 474	$ 10,038
Comprehensive (loss) income	$ (11,713)	$ 474	$ 10,038

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance, value at Dec. 28, 2013	$ 25,854	$ 104	$ 40,671	$ (14,921)
Beginning 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, shares		50,262
Stock repurchase	$ (4,665)		(4,665)
Stock repurchase, shares	(562,440)	(562,440)
Net (loss) 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
Issuance of common stock under stock option plan	$ 1,027	$ 3	1,024
Issuance of common stock under stock option plan, shares	277,733	277,733
Employee stock-based compensation expense	$ 895		895
Release of restricted stock, value	(606)		(606)
Release of restricted stock, shares		144,756
Repurchase of employee share awards	(275)		(275)
Stock repurchase	$ (1,563)		(1,563)
Stock repurchase, shares	(199,776)	(199,776)
Net (loss) income	$ 474			474
Ending Balance, value at Jan. 02, 2016	$ 33,688	$ 111	37,986	(4,409)
Ending Balance, shares at Jan. 02, 2016	10,009,408	10,009,408
Proceeds from issuance of common stock, net of issuance costs, value	$ 14,813	$ 12	14,801
Proceeds from issuance of common stock, net of issuance costs, shares		1,150,000
Issuance of common stock under stock option plan	$ 709	$ 1	708
Issuance of common stock under stock option plan, shares	126,077	126,077
Employee stock-based compensation expense	$ 1,821		1,821
Release of restricted stock, value	(99)		(99)
Release of restricted stock, shares		25,795
Stock repurchase	$ (59)		(59)
Stock repurchase, shares	(6,544)	(6,544)
Net (loss) income	$ (11,713)			(11,713)
Ending Balance, value at Dec. 31, 2016	$ 39,160	$ 124	$ 55,158	$ (16,122)
Ending Balance, shares at Dec. 31, 2016	11,304,736	11,304,736

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Operating activities:
Net (loss) income	$ (11,713)	$ 474	$ 10,038
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Impairment of intangible assets	120
Depreciation and amortization	648	522	420
Change in fair value of earn-out liability	95	5	1,258
Stock-based compensation	1,821	895	972
Deferred income taxes	8,985	(209)	(8,776)
Excess tax benefits from stock-based awards			(36)
Provision for doubtful accounts	122	62	86
Changes in operating assets and liabilities:
Accounts receivable	(865)	(1,007)	(1,078)
Inventories	(537)	(1,987)	1,486
Prepaid expenses and other current assets	(64)	124	66
Other long-term assets	84	57	82
Accounts payable	(229)	465	(520)
Accrued compensation	774	(291)	(28)
Accrued expenses	478	(36)	17
Accrued warranty		134	1
Deferred revenue	72	132	46
Other long-term liabilities	65	67	(20)
Net cash (used in) provided byoperating activities	(144)	(593)	4,014
Investing activities:
Acquisition of property and equipment	(1,062)	(875)	(568)
Payment on earn-out liability	(406)	(423)	(459)
Net cash used in investing activities	(1,468)	(1,298)	(1,027)
Financing activities:
Proceeds from issuance of common stock, net of issuance costs	14,813
Proceeds from stock option exercises	709	1,027	1,501
Excess tax benefits from stock-based awards	0	0	36
Taxes paid related to net share settlements of equity awards	(99)	(606)
Repurchase of employee share awards		(275)
Repurchase of common stock	(59)	(1,563)	(4,665)
Net cash provided by (used in) financing activities	15,364	(1,417)	(3,128)
Net increase (decrease) in cash and cash equivalents	13,752	(3,308)	(141)
Cash and cash equivalents, beginning of year	9,995	13,303	13,444
Cash and cash equivalents, end of year	23,747	9,995	13,303
Cash paid during the year for:
Income taxes	$ 22	$ 27	$ 35

Organization	12 Months Ended
Organization	Dec. 31, 2016
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 predominantly through a direct sales force, and an independent sales force, and internationally through independent distributors.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

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 non-operating 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 2016 ended on December 31, 2016 (“FY 2016”), Fiscal 2015 ended on January 2, 2016 (“FY 2015”) and fiscal 2014 ended on January 3, 2015 (“FY 2014”). Consequently, fiscal years 2016 and 2015 included only 52 weeks of operations while fiscal year 2014 included 53 weeks.

Use of Estimates.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. 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.

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.

We estimate 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 $44 thousand and $60 thousand as of December 31, 2016 and January 2, 2016, 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 our 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. We are 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 $1.6 million and $1.6 million and the accumulated amortization was $490 thousand and $575 thousand as of December 31, 2016 and January 2, 2016, 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. We review goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. We first assess 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. We have determined that we have a single reporting unit for purposes of performing our goodwill impairment test. As we use the market approach to assess impairment, our common stock price is an important component of the fair value calculation. If our 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. We performed our annual impairment test during the second quarter of 2016 and determined that our goodwill was not impaired. As of December 31, 2016, we had not identified any factors that indicated there was an impairment of our 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, we conduct an impairment analysis in accordance with Accounting Standard Codification (“ASC”) 350, “Intangibles – Goodwill and Other” (“ASC 350”).

During the fourth quarter of 2016, we reviewed our long-lived assets for indicators of impairment. Based on reduced estimates of future revenues and future negative cash flow, we identified potential indicators of impairment. As a result, we compared the fair value of our long-lived assets to their carrying value. Based on our discounted future cash flow and revenue projections, we recorded a non-cash impairment charge of $120 thousand for the Ocunetics patent. The impairment charge represents the excess of the carrying value of the asset over its fair value.

The impairment charge is not expected to result in any future cash expenditures.

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. Our 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”. We allocate 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. We are 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, we are unable to establish VSOE or TPE for all of the elements in the arrangement; therefore, revenue is allocated to these elements based on our ESP, which we determine 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, our 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 our deferred revenue balances for the years ended December 31, 2016 and January 2, 2016 are as follows (in thousands):


FY 2014: Balance as of January 3, 2015	$	1,179
Additions to deferral		1,495
Revenue recognized		(1,363	)
FY 2015: Balance as of January 2, 2016		1,311
Additions to deferral		1,430
Revenue recognized		(1,358	)
FY 2016: Balance as of December 31, 2016	$	1,383

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 our warranty liability for the years ended December 31, 2016 and January 2, 2016 are as follows (in thousands):


FY 2014: Balance as of January 3, 2015	$	469
Accruals for product warranties		401
Cost of warranty claims		(267	)
FY 2015: Balance as of January 2, 2016		603
Accruals for product warranties		469
Cost of warranty claims		(469	)
FY 2016: Balance as of December 31, 2016	$	603

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 2016, 2015 and 2014.

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 $0.1 million in 2016, $0.1 million in 2015, and $0.2 million in 2014 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 annually evaluate 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 2014, we released valuation allowance against most of our deferred tax assets except that we retained a valuation allowance for certain deferred tax assets associated with our California research and development credit (“CA R&D credit”). In 2016, based on our recent history of losses and forecasted losses, management believes on a “more-likely-than-not” basis that a full valuation allowance is required. Accordingly, in the fourth quarter of fiscal year 2017, we provided a full valuation allowance on our federal and state deferred tax assets.

Accounting for Uncertainty in Income Taxes.

We account 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 December 31, 2016.

Accounting for Stock-Based Compensation.

We account for stock-based compensation granted to employees and directors, including employees stock option awards, restricted stock and restricted stock units at grant date, based on the fair value of the award. Stock-based compensation is recognized as expense on a ratable basis over the requisite service period of the award.

We value 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.

Our 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.

We market our 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, we have not experienced any significant losses related to individual customers or a group of customers in any particular geographic area. For the years ended December 31, 2016, January 2, 2016 and January 3, 2015, no single customer accounted for greater than 10% of total revenues. As of December 31, 2016 and January 2, 2016, no customer accounted for more than 10% of accounts receivable balance.

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

Reliance on Certain Suppliers.

Certain components and services used to manufacture and develop our 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 our products.

Net Income 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 and unvested restricted stock units are excluded from the computation for periods in which we incur a net loss or if the exercise price of such options is greater than the average market price of our common stock for the period as their effect would be anti-dilutive. See Note 14 - Computation of Basic and Diluted Net Income Per Common Share.

Recently Issued and Adopted Accounting Standards.

In May 2014, as part of its ongoing efforts to assist in the convergence of accounting principles generally accepted in the United States (“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 (Topic 606).” 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, 2017. The FASB has issued several updates to the standard which i) defer the original effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017 (ASU 2015-14); ii) clarify the application of the principal versus agent guidance (ASU 2016-08); iii) clarify the guidance on inconsequential and perfunctory promises and licensing (ASU 2016-10); and clarify the guidance on certain sections of the guidance providing technical corrections and improvements (ASU 2016-10). In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients”, to address certain narrow aspects of the guidance including collectability criterion, collection of sales taxes from customers, noncash consideration, contract modifications and completed contracts. This issuance does not change the core principle of the guidance in the initial topic issued in May 2014. 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. The ASU is effective for reporting periods beginning after

December 15, 2015. Early adoption is permitted. The adoption of this standard in fiscal year 2016 did not have a material impact on our consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact that this standard will have on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, "Leases," amending ASC 842. This ASU requires us to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than twelve months. This ASU also requires disclosures enabling the users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. This new standard will become effective for us for annual periods beginning after December 15, 2018 (including interim reporting periods within those periods). Early adoption is permitted as of the beginning of an interim or annual reporting period. We are currently evaluating the impact of this new standard on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions, which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. This ASU will become effective for us on December 15, 2016 (including interim reporting periods within those periods). Early adoption is permitted in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of

the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the impact of this new standard on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15 "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments". The amendment gives guidance and reduces diversity in practice with respect to certain types of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16 to ASC 740 "Income Taxes," which simplifies the recording of an inter-entity transfer of assets other than inventory. The new guidance requires that a company recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance becomes effective for annual reporting periods beginning after December 15, 2017 and must be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the adoption period. We are currently evaluating the impact of this guidance on our financial statements and the timing of adoption.

In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows, Restricted Cash (Topic 230)”. This guidance requires that a statement of cash flows explain the total change during the period of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period to total amounts shown on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting periods, with early adoption permitted. We are currently evaluating the effect of the adoption of this guidance on our consolidated financial statements.

In January 2017, the FASB has issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact that this standard will have on our consolidated financial statements.

Fair Value Measurement

12 Months Ended

Dec. 31, 2016

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, we utilize 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 our assessment of fair value.

The carrying amounts of our financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses as of December 31, 2016 and January 2, 2016, approximate fair value because of the short maturity of these instruments.

As of December 31, 2016 and January 2, 2016, 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 December 31, 2016								As of January 2, 2016
	Fair Value Measurements								Fair Value Measurements
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	8,270		—		—	$	8,270	$	9,212		—		—	$	9,212
Liabilities:
Earn-out liability	$	—		—	$	694	$	694	$	—		—	$	1,005	$	1,005

Our Level 1 financial assets are money market funds whose fair values are based on quoted market prices. We do 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 based on a collaborative effort of our operations, finance and accounting groups based on additional information as it becomes available. Any change in the fair value adjustment is recorded in the consolidated statement of operations of that period. The decrease in re-measurement of the contingent earn-out was due to a decrease in expected future revenues to be generated from these acquisitions. Both of these deals were structured with an earn-out component. The earn-out liability is included in accrued expenses and other long-term liabilities in the consolidated balance sheets. In December 31, 2016, we reduced the fair value of the earn-out liability related to Ocunetics to zero as we do not expect to generate any revenues related to the acquired Ocunetics patent. The Ocunetics patent was written off in December 2016, see Note 7 – Intangible Assets.

Charges related to fair value adjustments were $95 thousand, $5 thousand and $1.3 million for the fiscal years 2016, 2015 and 2014, 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 December 31, 2016 and January 2, 2016.

As of December 31, 2016	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	694	Discounted cash flow	Projected royalties (in thousands)	$2,154
				Discount rate	11.22% (11.22% - 27.00%)

As of January 2, 2016	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	1,005	Discounted cash flow	Projected royalties (in thousands)	$2,949 ($134 - $3,153)
				Discount rate	11.36% (10.23% - 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 January 3, 2015	$	1,423
Payments against earn-out		(423	)
Change in fair value of earn-out liability		5
Balance as of January 2, 2016		1,005
Payments against earn-out		(406	)
Change in fair value of earn-out liability		95
Balance as of December 31, 2016	$	694

- 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

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventories

4. Inventories

The components of our inventories are as follows (in thousands):

	FY 2016		FY 2015
	December 31, 2016		January 2, 2016
Raw materials	$	5,331	$	4,578
Work in process		2,337		1,791
Finished goods		3,975		4,737
Total inventories	$	11,643	$	11,106

Property and Equipment

12 Months Ended

Dec. 31, 2016

Property Plant And Equipment [Abstract]

Property and Equipment

5. Property and Equipment

The components of our property and equipment are as follows (in thousands):

	FY 2016			FY 2015
	December 31, 2016			January 2, 2016
Equipment	$	9,560		$	8,498
Leasehold improvements		2,309			2,309
Less: accumulated depreciation and amortization		(10,335	)		(9,703	)
Property and equipment, net	$	1,534		$	1,104

Depreciation expense related to property and equipment was $632 thousand, $506 thousand and $376 thousand for the fiscal years 2016, 2015 and 2014, respectively.

Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

7. Intangible Assets

The impairment charge is not expected to result in any future cash expenditures.

The components of our purchased intangible assets as of December 31, 2016 are as follows (in thousands):

	Useful Lives	FY 2016 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	108	$	132	8.25 Years
Patents	Varies		-		720		720		-	Varies
		$	16	$	960	$	828	$	132

The components of our purchased intangible assets as of January 2, 2016 are as follows (in thousands):

	Useful Lives	FY 2015 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	92	$	148	9.25 Years
Patents	Varies		-		720		600		120	Varies
		$	16	$	960	$	692	$	268

Aggregate amortization expense for the fiscal years 2016, 2015 and 2014 was $16 thousand, $16 thousand and $44 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:
2017	$	16
2018		16
2019		16
2020		16
2021		16
Thereafter		52
Total	$	132

Accrued Expenses

12 Months Ended

Dec. 31, 2016

Payables And Accruals [Abstract]

Accrued Expenses

8. Accrued Expenses

The components of our accrued expenses are as follows (in thousands):

	FY 2016 December 31, 2016		FY 2015 January 2, 2016
Customer deposits	$	496	$	336
Earn-out – short term		305		370
Distributor commission		171		234
Sales and use tax payable		94		105
Royalties payable		66		52
Other accrued expenses		1,003		625
Total accrued expenses	$	2,135	$	1,722

Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Lease Agreements.

We lease our operating facilities in Mountain View, California, under a non-cancelable operating lease that was initially scheduled to expire in February 28, 2017. In February 2016, we executed an agreement to extend the term of the lease through February 28, 2019. There are no remaining options to extend or renew the terms of this lease. Rent expense for fiscal years 2016, 2015 and 2014 was $0.9 million, $0.8 million and $0.6 million, respectively.

Future minimum lease payments under current operating leases as of December 31, 2016 are summarized as follows (in thousands):

Fiscal Year	Operating Lease Payments
2017	$	1,068
2018		1,056
2019		206
2020		33
2021		3
Total future minimum lease payments	$	2,366

Manufacture and Supply Agreement.

Future minimum payments for manufacture and supply commitments as of December 31, 2016 are summarized as follows (in thousands):

Fiscal Year	Contract Manufacturing and Supply Commitments
2017	$	7,440
2018		1,087
Total contract manufacturing and supply commitments	$	8,527

License Agreements.

We are 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 $0.3 million, $0.1 million, and $0.2 million for the fiscal years 2016, 2015 and 2014, respectively.

Indemnification Arrangements.

We enter into standard indemnification arrangements in our ordinary course of business. Pursuant to these arrangements, we indemnify, hold harmless, and agree 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 any time after the execution of the agreement. The maximum potential amount of future payments we could be required to make under these agreements is not determinable. We have never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minimal.

We have entered into indemnification agreements with our directors and officers that may require us to indemnify our 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 us to obtain directors and officers insurance. We currently have 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 our financial position or results of operations and are adequately covered by our 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.

Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Stockholders' Equity

10. Stockholders’ Equity

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 our outstanding capital stock must not exceed five years. In the case of SPRs, unless the administrator determines otherwise, we have a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s employment with us for any reason (including death or disability). Such repurchase option lapses at a rate determined by the administrator. The purchase price for shares repurchased is the original price paid by the purchaser. As of December 31, 2016 and January 2, 2016, 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 us on or after February 23, 2008, which was the date the 1998 Plan expired.

The following table summarizes information regarding activity in our stock option plans during the fiscal years ended 2016, 2015 and 2014 (in thousands except share and per share data):

				Outstanding Options
	Shares Available for Grant			Number of Shares			Weighted Average Exercise Price
Balances as of December 28, 2013		476,545			1,102,842			3.97
Additional shares reserved		503,306			—			—
Options granted		(158,300	)		158,300			8.61
Restricted stock granted		(62,225	)		—			—
Options exercised		—			(399,390	)		3.76
Options cancelled		27,957			(27,957	)		6.13
Awards cancelled		79,890			—			—
Options expired		(13,056	)		—			—
Balances as of January 3, 2015		854,117			833,795			4.88
Additional shares reserved		1,000			—			—
Options granted		(170,300	)		170,300			9.38
Restricted stock granted		(227,905	)		—			—
Options exercised		—			(277,733	)		3.70
Options cancelled		174,870			(174,870	)		4.71
Awards cancelled		146,000			—			—
Options expired		(7,000	)		—			—
Balances as of January 2, 2016		770,782			551,492			6.92
Additional shares reserved		-			—			—
Options granted		(112,277	)		112,277			13.71
Restricted stock granted		(286,294	)					—
Options exercised		—			(126,077	)		5.62
Options cancelled		66,707			(66,707	)		7.37
Awards cancelled		66,000			—			—
Options expired		-			—			—
Balances as of December 31, 2016		504,918			470,985		$	8.69

There were 975,903 shares reserved for future issuance under the stock option plans as of December 31, 2016.

The following table summarizes information with respect to stock options outstanding and exercisable as of December 31, 2016:

	Options Outstanding						Options Vested and Exercisable
Range of Exercise Prices	Number of Shares Outstanding		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Shares Exercisable		Weighted Average Exercise Price
$3.46 - $3.92		47,935		2.18	$	3.84		47,164	$	3.84
$3.95 - $5.92		73,182		2.87	$	5.01		60,241	$	4.86
$6.00 - $8.16		82,169		5.19	$	7.38		35,615	$	7.08
$8.29 - $8.58		60,799		4.17	$	8.45		38,325	$	8.45
$8.60 - $10.33		59,500		4.96	$	9.39		27,067	$	9.10
$10.45 - $10.45		400		5.17	$	10.45		200	$	10.45
$10.73 - $10.73		61,223		5.15	$	10.73		26,098	$	10.73
$11.04 - $11.04		15,800		5.17	$	11.04		885	$	11.04
$12.85 - $12.85		32,500		6.82	$	12.85		118	$	12.85
$16.29 - $16.29		37,477		6.57	$	16.29		686	$	16.29
$3.46 - $16.29		470,985		4.58	$	8.69		236,399	$	6.77

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

	Employee Stock Option Plan
	FY 2016			FY 2015			FY 2014
Average risk free interest rate		1.33	%		1.38	%		1.49	%
Expected life (in years)	4.55 years			4.55 years			4.50 years
Dividend yield		—			—			—
Average volatility		44.5	%		49.3	%		56.2	%

The weighted average grant date fair value of options granted as calculated using the Black-Scholes option pricing was $5.06, $3.95, and $4.02 per share for the fiscal years 2016, 2015 and 2014, 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 our stock price history over a period commensurate with the expected term of the options, trading volume of our stock, look-back volatilities and Company specific events that affected volatility in a prior period. 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, 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 we have 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 2016, 2015 and 2014 (in thousands):

	FY 2016 Year Ended		FY 2015 Year Ended		FY 2014 Year Ended
	December 31, 2016		January 2, 2016		January 3, 2015
Cost of revenues	$	119	$	223	$	149
Research and development		134		176		105
Sales and marketing		164		185		118
General and administrative		1,404		311		600
Total stock-based compensation expense	$	1,821	$	895	$	972

Stock-based compensation expense capitalized to inventory was immaterial for 2016, 2015, and 2014.

Information regarding stock options outstanding, exercisable and expected to vest as of December 31, 2016 is summarized below:

	Number of		Weighted Average		Weighted Average Remaining Contractual		Aggregate Intrinsic Value
	Shares		Exercise Price		Life (years)		(thousands)
Options outstanding		470,985	$	8.69		4.58	$	2,611
Options vested and expected to vest		436,564	$	8.48		4.48	$	2,505
Options exercisable		236,399	$	6.77		3.66	$	1,725

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on the last trading day of fiscal 2016 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 December 31, 2016. This amount is subject to change due to changes to the fair market value of our common stock. The total intrinsic value of options exercised for fiscal years 2016, 2015 and 2014 was approximately $0.8 million, $1.5 million, and $1.9 million, respectively.

As of December 31, 2016, there was $3.3 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 2.52 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 2016, 2015 and 2014 were $0, $0 and $36 thousand, respectively.

Restricted Stock Awards/Restricted Stock Units

Effective for the 2011 fiscal year and thereafter, each non-employee member of the Board of Directors 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 our 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

We recognize 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 our common stock on the date of grant.

Information regarding the restricted stock units outstanding, vested and expected to vest as of December 31, 2016 is summarized below:

Number of

Weighted Average

Remaining Contractual

Life (years)

Aggregate Intrinsic

Value (thousands)

Restricted stock units outstanding

335,805

1.95

4,721

Restricted stock units vested and expected to vest

218,412

1.87

3,071

The intrinsic value of the restricted stock units is calculated based on the closing price of our shares as quoted on the NASDAQ Global Market on the last trading day of the year, December 30, 2016, of $14.06.

The majority of the restricted stock units that were released in fiscal year 2016 were net-share settled such that we withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld were based on the value of the restricted stock units on their release date as determined by our closing stock price. These net-share settlements had the effect of share repurchases as they reduced and retired the number of shares that would have otherwise been issued as a result of the release and did not represent an expense to us. For the fiscal year ended December 31, 2016, 30,789 shares of restricted stock units were released with an intrinsic value of approximately $0.4 million. We withheld 7,507 shares to satisfy approximately $100 thousand of employees’ minimum tax obligation on the released restricted stock units.

Information regarding the RSU activity during the years ended December 31, 2016, January 2, 2016 and January 3, 2015 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 28, 2013		269,259		$	4.42
Restricted stock units granted		59,780		$	9.76
Restricted stock units released		(46,759	)	$	4.29
Restricted stock units forfeited		(4,890	)	$	8.18
Outstanding as of January 3, 2015		277,390		$	5.52
Restricted stock units granted		225,392		$	8.66
Restricted stock units released		(209,193	)	$	4.82
Restricted stock units forfeited		(146,000	)	$	8.28
Outstanding as of January 2, 2016		147,589		$	8.59
Restricted stock units granted		285,005		$	11.89
Restricted stock units released		(30,789	)	$	8.30
Restricted stock units forfeited		(66,000	)	$	9.67
Outstanding as of December 31, 2016		335,805		$	11.20

During the year ended December 31, 2016, the Company awarded 285,005 restricted stock units at a weighted average grant date fair value of $11.89 per share. Of this amount, 256,138 stock units represent performance based shares that are subject to service, performance and market vesting conditions with a weighted average grant date fair value of $11.40 per share.

RSUs granted with market conditions are valued using the Monte Carlo simulation model and compensation expense is recognized ratably during the service period even if the market condition is not satisfied. To the extent that the market condition is not met, the RSUs will not vest and will be cancelled.

RSUs granted with performance conditions are valued at the grant date fair value of the underlying common shares. The Company make a determination regarding the probability of the performance criteria being achieved and compensation expense is recognized ratably over the vesting period, if it is expected that the performance criteria will be met.

During the year ended December 31, 2016, the Company accelerated the vesting of 6,400 of restricted stock units and 10,000 performance-based restricted stock units in connection with an employee termination. In connection with the acceleration, the Company recorded a $220 thousand charge to general and administrative expenses.

Information regarding the restricted stock awards activity during the year ended December 31, 2016, January 2, 2016 and January 3, 2015 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
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
Restricted stock awards granted		2,513		$	7.96
Restricted stock awards released		(2,445	)	$	7.96
Outstanding as of January 2, 2016		2,513		$	7.96
Restricted stock awards granted		1,289		$	15.51
Restricted stock awards released		(2,513	)	$	7.96
Outstanding as of December 31, 2016		1,289		$	15.51

Stock Repurchase Program.

In February 2013, the Board of Directors approved a one year $3.0 million stock repurchase program that replaced the prior two year $4.0 million stock repurchase program. In February 2014, the Board of Directors approved the extension of the plan for an additional year. In July 2014, the Board of Directors approved an extension of the plan for an additional year and authorized an additional $3.0 million of stock repurchases. In August 2015, the Board of Directors approved a further extension of the plan for another year and authorized an additional $2.0 million of stock repurchases. During the years ended December 31, 2016, January 2, 2016 and January 3, 2015, the Company repurchased 6,544, 199,776 and 562,440 shares at an average price of $9.00, $7.92 and $8.29 per share, respectively. On September 9, 2015, the Company made a payment to James H. Mackaness, our former Chief Financial Officer and Chief Operating Officer, of approximately $275 thousand in cash in exchange for Mr. Mackaness’ agreement to cancel vested stock options exercisable for an aggregate of 92,656 shares of our common stock. This payment to Mr. Mackaness was made using funds authorized and available under the stock repurchase program discussed above, and resulted in a reduction of the approximate dollar value of shares that may yet be purchased under this program. As of December 31, 2016, we have repurchased 843,785 shares for approximately $6.7 million under this current program. The remaining balance of approximately $1.0 million approved under the plan was not used when the plan lapsed in August 2016.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08(e))
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (SX 210.5-02(30))
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2016
Employee Benefits And Share Based Compensation [Abstract]
Employee Benefit Plan	11. Employee Benefit Plan We have a plan known as the Iridex Corporation Profit Sharing/401(k) Plan 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, we suspended the matching contributions. Subsequent to December 28, 2013, we reinstated a Company match in the amount of 50% of employee contributions up to a maximum of $3 thousand. In 2016, 2015 and 2014, total matching contributions made by the Company were $226 thousand, $218 thousand, and $186 thousand, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

Income before (benefit from) provision for income taxes was comprised of the following:

	FY 2016			FY 2015		FY 2014
	Year Ended			Year Ended		Year Ended
	December 31, 2016			January 2, 2016		January 3, 2015
United States	$	(2,656	)	$	291	$	1,332
Foreign		—			—		—
Total	$	(2,656	)	$	291	$	1,332

The provision for (benefit from) income taxes includes:

	FY 2016			FY 2015			FY 2014
	Year Ended			Year Ended			Year Ended
	December 31, 2016			January 2, 2016			January 3, 2015
Current:
Federal	$	-		$	(4	)	$	54
State		4			30			16
		4			26			70
Deferred:
Federal		9,271			(12	)		(7,862	)
State		(218	)		(197	)		(914	)
		9,053			(209	)		(8,776	)
Provision for (benefit from) income taxes	$	9,057		$	(183	)	$	(8,706	)

Our effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2016 Year Ended December 31, 2016			FY 2015 Year Ended January 2, 2016			FY 2014 Year Ended January 3, 2015
Income tax provision at statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal benefit		9.6	%		(70.8	)%		(68.0	)%
Permanent differences		(1.5	)%		12.0	%		(1.1	)%
Research and development credits		3.0	%		(34.8	)%		(2.6	)%
Change in valuation allowance		(387.4	)%		—			(613.5	)%
Other		1.3	%		(3.3	)%		(2.4	)%
Effective tax rate		(341.0	)%		(62.9	)%		(653.6	)%

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 2016 December 31, 2016			FY 2015 January 2, 2016
Net operating losses	$	4,411		$	4,135
Research and development credits		2,113			1,820
Accruals and reserves		2,158			1,823
Deferred revenue		104			120
Property and equipment		396			399
Intangible assets		783			792
Stock compensation		972			613
Other tax credits		90			89
Net deferred tax asset		11,027			9,791
Valuation allowance		(11,095	)		(806	)
Net deferred tax (liabilities) assets	$	(68	)	$	8,985

Our accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of our 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. Our management forecasts taxable income by considering all available positive and negative evidence including our history of operating income or losses and our 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.

As of December 31, 2016, based on the Company’s recent history of losses and its forecasted losses, management believes on a “more-likely-than-not” basis that a full valuation allowance is required. Accordingly, in the fourth quarter of fiscal year 2016, the Company provided a full valuation allowance on its federal and state deferred tax assets. As of December 31, 2016, the Company had federal and state net operating loss (“NOL”) carryforwards of $13.8 million and $15.3 million, respectively. Of the total NOL carryforwards, $3.0 million for federal and $2.5 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.

In December 2015, Congress passed a tax extenders package, Protecting Americans from Tax Hikes (PATH) Act of 2015, and permanently extended the federal R&D credit. As of December 31, 2016, we had federal and state R&D credit carryforwards of approximately $1.6 million and $2.3 million, respectively, available to offset future tax liabilities. The federal credits will begin expiring in 2026 if not used. The state R&D credits do not expire. The above NOL and research and development credits are subject to Internal Revenue Code 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.

We account for uncertain tax positions in accordance with ASC 740, “Income Taxes”. 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 is no accrued interest and penalty during the year ended December 31, 2016.

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

	FY 2016 Year Ended December 31, 2016		FY 2015 Year Ended January 2, 2016		FY 2014 Year Ended January 3, 2015
Balance at the beginning of the year	$	937	$	861	$	1,027
Additions based upon tax positions related to the current year		75		73		53
Additions based upon tax positions related to the prior year		17		—		51
Reductions based upon tax positions related to the prior year		-		3		(270	)
Balance at the end of the year	$	1,029	$	937	$	861

Recognition of the unrecognized tax benefits of $1.0 million as of December 31, 2016 would affect our effective tax rate. We do not anticipate any material change in our unrecognized tax benefits of $1.0 million 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.

Loan and Security Agreement	12 Months Ended
Loan and Security Agreement	Dec. 31, 2016
Debt Disclosure [Abstract]
Loan and Security Agreement	13. Loan and Security Agreement In November 2016, the Company entered into a Loan and Security Agreement (“Loan Agreement”) with Silicon Valley Bank providing for a $15.0 million secured revolving loan facility (“Revolving Loan Facility”), with availability subject to an accounts receivable borrowing base formula. Borrowings under the Revolving Loan Facility accrue interest at a per annum rate equal to the Wall Street Journal Prime Rate as in effect from time to time, plus 1.5%. The Loan Agreement does not include any financial covenants. The Company may borrow, repay and reborrow funds under the Revolving Loan Facility until November 2, 2019, at which time the Revolving Loan Facility matures and all outstanding amounts must be repaid. As of December 31, 2016, there was no amount outstanding.

Business Segments and Geographical Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segments and Geographical Information

14. Business Segments and Geographical Information

We operate in one segment, ophthalmology. We develop, manufacture and market 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 2016		FY 2015		FY 2014
	Year Ended		Year Ended		Year Ended
	December 31, 2016		January 2, 2016		January 3, 2015
United States	$	25,171	$	23,952	$	22,590
Europe		9,567		7,968		9,096
Rest of Americas		2,800		2,676		3,199
Asia/Pacific Rim		8,620		7,161		7,929
	$	46,158	$	41,757	$	42,814

Revenues are attributed to countries based on location of end customers. For fiscal years 2016, 2015 and 2014 no individual country accounted for more than 10% of our sales, except for the United States, which accounted for 54.5%, 57.4%, and 52.8% of revenues in 2016, 2015, and 2014 respectively.

As of December 31, 2016 and January 2, 2016, we 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
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+ Details

Computation of Basic and Diluted Net Income Per Common Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Common Share

15. Computation of Basic and Diluted Net Income Per Common Share

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

	FY 2016			FY 2015		FY 2014
	Year Ended			Year Ended		Year Ended
	December 31, 2016			January 2, 2016		January 3, 2015
Numerator:
Net (loss) income	$	(11,713	)	$	474	$	10,038
Denominator:
Weighted average shares of common stock (basic)		10,173			9,962		9,892
Effect of dilutive preferred shares		—			—		—
Effect of dilutive stock options		—			154		291
Effect of dilutive contingent shares		—			12		174
Weighted average shares of common stock (diluted)		10,173			10,128		10,357
Per share data:
Basic net (loss) income per share	$	(1.15	)	$	0.05	$	1.01
Diluted net (loss) income per share	$	(1.15	)	$	0.05	$	0.97

As of December 31, 2016, January 2, 2016 and January 3, 2015 stock options to purchase 470,985, 249,064 and 116,320 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding because to do so would have been anti-dilutive.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Financial Statement Presentation

Financial Statement Presentation.

Use of Estimates

Use of Estimates.

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.

The impairment charge is not expected to result in any future cash expenditures.

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 2014: Balance as of January 3, 2015	$	1,179
Additions to deferral		1,495
Revenue recognized		(1,363	)
FY 2015: Balance as of January 2, 2016		1,311
Additions to deferral		1,430
Revenue recognized		(1,358	)
FY 2016: Balance as of December 31, 2016	$	1,383

Warranty

Warranty.


FY 2014: Balance as of January 3, 2015	$	469
Accruals for product warranties		401
Cost of warranty claims		(267	)
FY 2015: Balance as of January 2, 2016		603
Accruals for product warranties		469
Cost of warranty claims		(469	)
FY 2016: Balance as of December 31, 2016	$	603

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.

December 15, 2015. Early adoption is permitted. The adoption of this standard in fiscal year 2016 did not have a material impact on our consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Reconciliation of Changes in Deferred Revenue

A reconciliation of the changes in our deferred revenue balances for the years ended December 31, 2016 and January 2, 2016 are as follows (in thousands):


FY 2014: Balance as of January 3, 2015	$	1,179
Additions to deferral		1,495
Revenue recognized		(1,363	)
FY 2015: Balance as of January 2, 2016		1,311
Additions to deferral		1,430
Revenue recognized		(1,358	)
FY 2016: Balance as of December 31, 2016	$	1,383

Reconciliation of Changes in Warranty Liability

A reconciliation of the changes in our warranty liability for the years ended December 31, 2016 and January 2, 2016 are as follows (in thousands):


FY 2014: Balance as of January 3, 2015	$	469
Accruals for product warranties		401
Cost of warranty claims		(267	)
FY 2015: Balance as of January 2, 2016		603
Accruals for product warranties		469
Cost of warranty claims		(469	)
FY 2016: Balance as of December 31, 2016	$	603

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

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

	As of December 31, 2016								As of January 2, 2016
	Fair Value Measurements								Fair Value Measurements
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	8,270		—		—	$	8,270	$	9,212		—		—	$	9,212
Liabilities:
Earn-out liability	$	—		—	$	694	$	694	$	—		—	$	1,005	$	1,005

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

Charges related to fair value adjustments were $95 thousand, $5 thousand and $1.3 million for the fiscal years 2016, 2015 and 2014, respectively

As of December 31, 2016	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	694	Discounted cash flow	Projected royalties (in thousands)	$2,154
				Discount rate	11.22% (11.22% - 27.00%)

As of January 2, 2016	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	1,005	Discounted cash flow	Projected royalties (in thousands)	$2,949 ($134 - $3,153)
				Discount rate	11.36% (10.23% - 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 January 3, 2015	$	1,423
Payments against earn-out		(423	)
Change in fair value of earn-out liability		5
Balance as of January 2, 2016		1,005
Payments against earn-out		(406	)
Change in fair value of earn-out liability		95
Balance as of December 31, 2016	$	694

Inventories (Tables)

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Components of Inventories

The components of our inventories are as follows (in thousands):

	FY 2016		FY 2015
	December 31, 2016		January 2, 2016
Raw materials	$	5,331	$	4,578
Work in process		2,337		1,791
Finished goods		3,975		4,737
Total inventories	$	11,643	$	11,106

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property Plant And Equipment [Abstract]

Component of Property and Equipment

The components of our property and equipment are as follows (in thousands):

	FY 2016			FY 2015
	December 31, 2016			January 2, 2016
Equipment	$	9,560		$	8,498
Leasehold improvements		2,309			2,309
Less: accumulated depreciation and amortization		(10,335	)		(9,703	)
Property and equipment, net	$	1,534		$	1,104

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Components of Purchased Intangible Assets

The components of our purchased intangible assets as of December 31, 2016 are as follows (in thousands):

	Useful Lives	FY 2016 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	108	$	132	8.25 Years
Patents	Varies		-		720		720		-	Varies
		$	16	$	960	$	828	$	132

The components of our purchased intangible assets as of January 2, 2016 are as follows (in thousands):

	Useful Lives	FY 2015 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	92	$	148	9.25 Years
Patents	Varies		-		720		600		120	Varies
		$	16	$	960	$	692	$	268

Estimated Future Amortization Expense for Purchased Intangible Assets

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

Fiscal Year:
2017	$	16
2018		16
2019		16
2020		16
2021		16
Thereafter		52
Total	$	132

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Payables And Accruals [Abstract]

Components of Accrued Expenses

The components of our accrued expenses are as follows (in thousands):

	FY 2016 December 31, 2016		FY 2015 January 2, 2016
Customer deposits	$	496	$	336
Earn-out – short term		305		370
Distributor commission		171		234
Sales and use tax payable		94		105
Royalties payable		66		52
Other accrued expenses		1,003		625
Total accrued expenses	$	2,135	$	1,722

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

Future Minimum Lease Payments under Current Operating Leases

Future minimum lease payments under current operating leases as of December 31, 2016 are summarized as follows (in thousands):

Fiscal Year	Operating Lease Payments
2017	$	1,068
2018		1,056
2019		206
2020		33
2021		3
Total future minimum lease payments	$	2,366

Future Minimum Payments for Manufacture and Supply Commitments

Future minimum payments for manufacture and supply commitments as of December 31, 2016 are summarized as follows (in thousands):

Fiscal Year	Contract Manufacturing and Supply Commitments
2017	$	7,440
2018		1,087
Total contract manufacturing and supply commitments	$	8,527

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

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 2016, 2015 and 2014 (in thousands except share and per share data):

				Outstanding Options
	Shares Available for Grant			Number of Shares			Weighted Average Exercise Price
Balances as of December 28, 2013		476,545			1,102,842			3.97
Additional shares reserved		503,306			—			—
Options granted		(158,300	)		158,300			8.61
Restricted stock granted		(62,225	)		—			—
Options exercised		—			(399,390	)		3.76
Options cancelled		27,957			(27,957	)		6.13
Awards cancelled		79,890			—			—
Options expired		(13,056	)		—			—
Balances as of January 3, 2015		854,117			833,795			4.88
Additional shares reserved		1,000			—			—
Options granted		(170,300	)		170,300			9.38
Restricted stock granted		(227,905	)		—			—
Options exercised		—			(277,733	)		3.70
Options cancelled		174,870			(174,870	)		4.71
Awards cancelled		146,000			—			—
Options expired		(7,000	)		—			—
Balances as of January 2, 2016		770,782			551,492			6.92
Additional shares reserved		-			—			—
Options granted		(112,277	)		112,277			13.71
Restricted stock granted		(286,294	)					—
Options exercised		—			(126,077	)		5.62
Options cancelled		66,707			(66,707	)		7.37
Awards cancelled		66,000			—			—
Options expired		-			—			—
Balances as of December 31, 2016		504,918			470,985		$	8.69

Stock Options Outstanding and Exercisable

The following table summarizes information with respect to stock options outstanding and exercisable as of December 31, 2016:

	Options Outstanding						Options Vested and Exercisable
Range of Exercise Prices	Number of Shares Outstanding		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Shares Exercisable		Weighted Average Exercise Price
$3.46 - $3.92		47,935		2.18	$	3.84		47,164	$	3.84
$3.95 - $5.92		73,182		2.87	$	5.01		60,241	$	4.86
$6.00 - $8.16		82,169		5.19	$	7.38		35,615	$	7.08
$8.29 - $8.58		60,799		4.17	$	8.45		38,325	$	8.45
$8.60 - $10.33		59,500		4.96	$	9.39		27,067	$	9.10
$10.45 - $10.45		400		5.17	$	10.45		200	$	10.45
$10.73 - $10.73		61,223		5.15	$	10.73		26,098	$	10.73
$11.04 - $11.04		15,800		5.17	$	11.04		885	$	11.04
$12.85 - $12.85		32,500		6.82	$	12.85		118	$	12.85
$16.29 - $16.29		37,477		6.57	$	16.29		686	$	16.29
$3.46 - $16.29		470,985		4.58	$	8.69		236,399	$	6.77

Weighted Average Assumptions for Fair Value of Options Granted

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

	Employee Stock Option Plan
	FY 2016			FY 2015			FY 2014
Average risk free interest rate		1.33	%		1.38	%		1.49	%
Expected life (in years)	4.55 years			4.55 years			4.50 years
Dividend yield		—			—			—
Average volatility		44.5	%		49.3	%		56.2	%

Stock-Based Compensation Expense

The following table shows stock-based compensation expense by functional line item in the consolidated statements of operations for 2016, 2015 and 2014 (in thousands):

	FY 2016 Year Ended		FY 2015 Year Ended		FY 2014 Year Ended
	December 31, 2016		January 2, 2016		January 3, 2015
Cost of revenues	$	119	$	223	$	149
Research and development		134		176		105
Sales and marketing		164		185		118
General and administrative		1,404		311		600
Total stock-based compensation expense	$	1,821	$	895	$	972

Stock Options Outstanding, Exercisable and Expected to Vest

Information regarding stock options outstanding, exercisable and expected to vest as of December 31, 2016 is summarized below:

	Number of		Weighted Average		Weighted Average Remaining Contractual		Aggregate Intrinsic Value
	Shares		Exercise Price		Life (years)		(thousands)
Options outstanding		470,985	$	8.69		4.58	$	2,611
Options vested and expected to vest		436,564	$	8.48		4.48	$	2,505
Options exercisable		236,399	$	6.77		3.66	$	1,725

Restricted Stock Units Outstanding, Vested and Expected to Vest

Information regarding the restricted stock units outstanding, vested and expected to vest as of December 31, 2016 is summarized below:

Number of

Weighted Average

Remaining Contractual

Life (years)

Aggregate Intrinsic

Value (thousands)

Restricted stock units outstanding

335,805

1.95

4,721

Restricted stock units vested and expected to vest

218,412

1.87

3,071

Restricted Stock Units and Awards

Information regarding the RSU activity during the years ended December 31, 2016, January 2, 2016 and January 3, 2015 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 28, 2013		269,259		$	4.42
Restricted stock units granted		59,780		$	9.76
Restricted stock units released		(46,759	)	$	4.29
Restricted stock units forfeited		(4,890	)	$	8.18
Outstanding as of January 3, 2015		277,390		$	5.52
Restricted stock units granted		225,392		$	8.66
Restricted stock units released		(209,193	)	$	4.82
Restricted stock units forfeited		(146,000	)	$	8.28
Outstanding as of January 2, 2016		147,589		$	8.59
Restricted stock units granted		285,005		$	11.89
Restricted stock units released		(30,789	)	$	8.30
Restricted stock units forfeited		(66,000	)	$	9.67
Outstanding as of December 31, 2016		335,805		$	11.20

Information regarding the restricted stock awards activity during the year ended December 31, 2016, January 2, 2016 and January 3, 2015 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
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
Restricted stock awards granted		2,513		$	7.96
Restricted stock awards released		(2,445	)	$	7.96
Outstanding as of January 2, 2016		2,513		$	7.96
Restricted stock awards granted		1,289		$	15.51
Restricted stock awards released		(2,513	)	$	7.96
Outstanding as of December 31, 2016		1,289		$	15.51

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Before (Benefit from) Provision for Income Taxes

Income before (benefit from) provision for income taxes was comprised of the following:

	FY 2016			FY 2015		FY 2014
	Year Ended			Year Ended		Year Ended
	December 31, 2016			January 2, 2016		January 3, 2015
United States	$	(2,656	)	$	291	$	1,332
Foreign		—			—		—
Total	$	(2,656	)	$	291	$	1,332

Provision for (Benefit from) Income Taxes

The provision for (benefit from) income taxes includes:

	FY 2016			FY 2015			FY 2014
	Year Ended			Year Ended			Year Ended
	December 31, 2016			January 2, 2016			January 3, 2015
Current:
Federal	$	-		$	(4	)	$	54
State		4			30			16
		4			26			70
Deferred:
Federal		9,271			(12	)		(7,862	)
State		(218	)		(197	)		(914	)
		9,053			(209	)		(8,776	)
Provision for (benefit from) income taxes	$	9,057		$	(183	)	$	(8,706	)

Effective Tax Rate Differs from the Statutory Federal Income Tax Rate

Our effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2016 Year Ended December 31, 2016			FY 2015 Year Ended January 2, 2016			FY 2014 Year Ended January 3, 2015
Income tax provision at statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal benefit		9.6	%		(70.8	)%		(68.0	)%
Permanent differences		(1.5	)%		12.0	%		(1.1	)%
Research and development credits		3.0	%		(34.8	)%		(2.6	)%
Change in valuation allowance		(387.4	)%		—			(613.5	)%
Other		1.3	%		(3.3	)%		(2.4	)%
Effective tax rate		(341.0	)%		(62.9	)%		(653.6	)%

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 2016 December 31, 2016			FY 2015 January 2, 2016
Net operating losses	$	4,411		$	4,135
Research and development credits		2,113			1,820
Accruals and reserves		2,158			1,823
Deferred revenue		104			120
Property and equipment		396			399
Intangible assets		783			792
Stock compensation		972			613
Other tax credits		90			89
Net deferred tax asset		11,027			9,791
Valuation allowance		(11,095	)		(806	)
Net deferred tax (liabilities) assets	$	(68	)	$	8,985

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 2016 Year Ended December 31, 2016		FY 2015 Year Ended January 2, 2016		FY 2014 Year Ended January 3, 2015
Balance at the beginning of the year	$	937	$	861	$	1,027
Additions based upon tax positions related to the current year		75		73		53
Additions based upon tax positions related to the prior year		17		—		51
Reductions based upon tax positions related to the prior year		-		3		(270	)
Balance at the end of the year	$	1,029	$	937	$	861

Business Segments and Geographical Information (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Revenue Information by Geographic Region

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

	FY 2016		FY 2015		FY 2014
	Year Ended		Year Ended		Year Ended
	December 31, 2016		January 2, 2016		January 3, 2015
United States	$	25,171	$	23,952	$	22,590
Europe		9,567		7,968		9,096
Rest of Americas		2,800		2,676		3,199
Asia/Pacific Rim		8,620		7,161		7,929
	$	46,158	$	41,757	$	42,814

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

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

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

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

	FY 2016			FY 2015		FY 2014
	Year Ended			Year Ended		Year Ended
	December 31, 2016			January 2, 2016		January 3, 2015
Numerator:
Net (loss) income	$	(11,713	)	$	474	$	10,038
Denominator:
Weighted average shares of common stock (basic)		10,173			9,962		9,892
Effect of dilutive preferred shares		—			—		—
Effect of dilutive stock options		—			154		291
Effect of dilutive contingent shares		—			12		174
Weighted average shares of common stock (diluted)		10,173			10,128		10,357
Per share data:
Basic net (loss) income per share	$	(1.15	)	$	0.05	$	1.01
Diluted net (loss) income per share	$	(1.15	)	$	0.05	$	0.97

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2016 USD ($) Customer	Dec. 31, 2016 USD ($) Customer	Jan. 02, 2016 USD ($) Customer	Jan. 03, 2015 USD ($) Customer
Disclosure Summary Of Significant Accounting Policies [Line Items]
Provision of sales returns	$ 44,000	$ 44,000	$ 60,000
Gross value of demos and loaners	1,600,000	1,600,000	1,600,000
Accumulated amortization on inventory demos and loaners	490,000	$ 490,000	575,000
Estimated useful life of demos and loaners		4 years
Estimated useful lives of the assets		3 years
Non-cash impairment charges		$ 120,000
Products warranty period		2 years
Shipping and handling costs		$ 300,000	300,000	$ 300,000
Advertising and promotion costs		100,000	$ 100,000	$ 200,000
Accrued interest and penalty incurred	$ 0	$ 0
Customer accounted percentage of net accounts receivable balance		10.00%	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 \| Customer	0	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 \| Customer	0	0	0
Ocunetics Patent
Disclosure Summary Of Significant Accounting Policies [Line Items]
Non-cash impairment charges	$ 120,000

Summary of Significant Accounting Policies - Reconciliation of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Reconciliation of the changes in the Company's deferred revenue balance
Balance, beginning of period	$ 1,311	$ 1,179
Additions to deferral	1,430	1,495
Revenue recognized	(1,358)	(1,363)
Balance, end of period	$ 1,383	$ 1,311

- Definition

The carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer, including sales, license fees, and royalties, but excluding interest income.

+ References + Details

Summary of Significant Accounting Policies - Reconciliation of Changes in Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Reconciliation of the changes in the Company's warranty liability
Balance, beginning of period	$ 603	$ 469
Accruals for product warranties	469	401
Cost of warranty claims	(469)	(267)
Balance, end of period	$ 603	$ 603

Fair Value Measurement - Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Money Market Funds
Assets:
Assets, Fair Value Measurements	$ 8,270	$ 9,212
Earn Out Liability
Liabilities:
Liabilities, Fair Value Measurements	694	1,005
Level 1 \| Money Market Funds
Assets:
Assets, Fair Value Measurements	8,270	9,212
Level 3 \| Earn Out Liability
Liabilities:
Liabilities, Fair Value Measurements	$ 694	$ 1,005

Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Charges related to fair value adjustments	$ 95	$ 5	$ 1,300
Earn Out Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of earn-out liability	694	$ 1,005
Ocunetics \| Earn Out Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of earn-out liability	$ 0

Fair Value Measurement - Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements (Details) - Earn Out Liability - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Liabilities, Fair Value Measurements	$ 694	$ 1,005
Level 3
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Liabilities, Fair Value Measurements	694	1,005
Level 3 \| Discounted Cash Flow
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Liabilities, Fair Value Measurements	$ 694	$ 1,005
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	$ 2,154	$ 2,949
Weighted Average, Discount rate	11.22%	11.36%
Level 3 \| Discounted Cash Flow \| Minimum
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Weighted Average, Projected royalties		$ 134
Weighted Average, Discount rate	11.22%	10.23%
Level 3 \| Discounted Cash Flow \| Maximum
Quantitative information about the inputs and valuation methodologies used for fair value measurements
Weighted Average, Projected royalties		$ 3,153
Weighted Average, Discount rate	27.00%	27.00%

Fair Value Measurement - Reconciliation of the Changes in the Company's Earn-Out - Cash (Level 3 Liabilities) Balance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Reconciliation of the changes in the Company's earn-out - cash (Level 3 liabilities) balance
Balance as of beginning of the period	$ 1,005	$ 1,423
Payments against earn-out	(406)	(423)
Change in fair value of earn-out liability	95	5	$ 1,300
Balance as of the end of the period	$ 694	$ 1,005	$ 1,423

Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 5,331	$ 4,578
Work in process	2,337	1,791
Finished goods	3,975	4,737
Total inventories	$ 11,643	$ 11,106

Property and Equipment - Component of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Component of property and equipment
Less: accumulated depreciation and amortization	$ (10,335)	$ (9,703)
Property and equipment, net	1,534	1,104
Equipment
Component of property and equipment
Property and equipment, gross	9,560	8,498
Leasehold Improvements
Component of property and equipment
Property and equipment, gross	$ 2,309	$ 2,309

Goodwill - Additional Information (Details) - USD ($)	12 Months Ended
Goodwill - Additional Information (Details) - USD ($)	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying value of goodwill	$ 533,000	$ 533,000
Impairment of goodwill	$ 0	$ 0	$ 0

Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Finite Lived Intangible Assets [Line Items]
Non-cash impairment charges		$ 120
Amortization expense		$ 16	$ 16	$ 44
Ocunetics Patent
Finite Lived Intangible Assets [Line Items]
Non-cash impairment charges	$ 120

Intangible Assets - Components of Purchased Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Components of purchased intangible assets
Annual Amortization	$ 16	$ 16	$ 44
Gross Carrying Value	960	960
Accumulated Amortization	828	692
Net Carrying Value	$ 132	$ 268
Customer Relations
Components of purchased intangible assets
Useful Lives	15 years	15 years
Useful Lives Remaining	8 years 3 months	9 years 3 months
Annual Amortization	$ 16	$ 16
Gross Carrying Value	240	240
Accumulated Amortization	108	92
Net Carrying Value	132	148
Patents
Components of purchased intangible assets
Gross Carrying Value	720	720
Accumulated Amortization	$ 720	600
Net Carrying Value		$ 120

Intangible Assets - Estimated Future Amortization Expense for Purchased Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Estimated future amortization expense for purchased intangible assets
2017	$ 16
2018	16
2019	16
2020	16
2021	16
Thereafter	52
Net Carrying Value	$ 132	$ 268

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Components of accrued expenses
Customer deposits	$ 496	$ 336
Earn-out – short term	305	370
Distributor commission	171	234
Sales and use tax payable	94	105
Royalties payable	66	52
Other accrued expenses	1,003	625
Total accrued expenses	$ 2,135	$ 1,722

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 29, 2016	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Commitments and Contingencies [Line Items]
Rent expense		$ 0.9	$ 0.8	$ 0.6
Lease expiration date		Feb. 28, 2017
Royalties pay equivalent to Percentage of sales		5.00%
Royalty expense		$ 0.3	$ 0.1	$ 0.2
Early termination date of certain license agreement		2018
Late termination date of certain license agreement		2021
Fourth Amendment to Lease
Commitments and Contingencies [Line Items]
Lease expiration date	Feb. 28, 2019

Commitments and Contingencies - Future Minimum Lease Payments under Current Operating Leases (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Future minimum lease payments under current operating leases
2017	$ 1,068
2018	1,056
2019	206
2020	33
2021	3
Total future minimum lease payments	$ 2,366

Commitments and Contingencies - Future Minimum Payments for Manufacture and Supply Commitments (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Future minimum payments for manufacturing and supply commitments
2017	$ 7,440
2018	1,087
Total contract manufacturing and supply commitments	$ 8,527

Stockholders' Equity - Additional Information (Details) - USD ($)		12 Months Ended
	Sep. 09, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 31, 2011	Dec. 30, 2016	Aug. 31, 2016	Aug. 31, 2015	Jul. 31, 2014	Feb. 28, 2013	Feb. 28, 2012
Exercisable period		3 years 7 months 28 days
Repurchase of shares		843,785
Shares reserved		975,903
Weighted-average grant date fair value of the options granted		$ 5.06	$ 3.95	$ 4.02
Total intrinsic value of options exercised		$ 800,000	$ 1,500,000	$ 1,900,000
Total unrecognized compensation cost related to non-vested share-based compensation arrangements		$ 3,300,000
Cost is expected to be recognized over a weighted average period		2 years 6 months 7 days
Excess tax benefits from stock-based awards		$ 0	$ 0	$ 36,000
Unvested restricted stock awarded		286,294	227,905	62,225
Stock repurchase program authorized amount		$ 6,700,000							$ 3,000,000	$ 3,000,000	$ 4,000,000
Remaining common stock value authorized to purchase under stock repurchase program lapsed							$ 1,000,000
Stock repurchase program additional amount authorized								$ 2,000,000
Stock repurchase, shares		6,544	199,776	562,440
Shares repurchased price, per share		$ 9.00	$ 7.92	$ 8.29
Cash paid in exchange to cancel vested stock options to be exercised			$ 275,000
Number of shares, vested stock options to be exercised, canceled		66,707	174,870	27,957
James H. Mackaness
Cash paid in exchange to cancel vested stock options to be exercised	$ 275,000
Number of shares, vested stock options to be exercised, canceled	92,656
Restricted Stock Units (RSUs)
Grant of non-qualified stock option					$ 20,000
The intrinsic value of the restricted stock units						$ 14.06
Number of shares, vested		30,789	209,193	46,759
Restricted stock units released, intrinsic value		$ 400,000
Restricted stock units released, Shares withheld		7,507
Restricted stock units released, value withheld		$ 100,000
Unvested restricted stock awarded		285,005	225,392	59,780
Weighted-average grant date fair value of restricted stock awarded		$ 11.89	$ 8.66	$ 9.76
Restricted Stock Units (RSUs) \| Accelerated Vesting
Number of shares, vested		6,400
1998 Stock Plan
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		4 years
Maximum term of incentive stock options granted		10 years
Repurchase of shares		0	0
Expiration date of option Plan		2008-02
2008 Equity Incentive Plan
Grant of non-qualified stock option		300,000
Performance Award \| Restricted Stock Units (RSUs)
Unvested restricted stock awarded		256,138
Weighted-average grant date fair value of restricted stock awarded		$ 11.40
Performance Award \| Restricted Stock Units (RSUs) \| Accelerated Vesting
Number of shares, vested		10,000
Performance Award \| Restricted Stock Units (RSUs) \| Accelerated Vesting \| General and administrative
Stock-based compensation expense		$ 220,000

Stockholders' Equity - Summary of Activity in Stock Option Plan (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]
Shares Available for Grant, Beginning Balance	770,782	854,117	476,545
Shares Available for Grant, Additional shares reserved		1,000	503,306
Shares Available for Grant, Options granted	(112,277)	(170,300)	(158,300)
Shares Available for Grant, Restricted stock granted	(286,294)	(227,905)	(62,225)
Shares Available for Grant, Options cancelled	66,707	174,870	27,957
Shares Available for Grant, Awards cancelled	66,000	146,000	79,890
Shares Available for Grant, Options expired		(7,000)	(13,056)
Shares Available for Grant, Ending Balance	504,918	770,782	854,117
Outstanding, Number of Shares, Beginning Balance	551,492	833,795	1,102,842
Number of Shares, Options granted	112,277	170,300	158,300
Number of Shares, Options exercised	(126,077)	(277,733)	(399,390)
Number of Shares, Options cancelled	(66,707)	(174,870)	(27,957)
Number of Shares, Ending Balance	470,985	551,492	833,795
Weighted Average Exercise Price, Beginning Balance	$ 6.92	$ 4.88	$ 3.97
Weighted Average Exercise Price, Options granted	13.71	9.38	8.61
Weighted Average Exercise Price, Options exercised	5.62	3.70	3.76
Weighted Average Exercise Price, Options cancelled	7.37	4.71	6.13
Weighted Average Exercise Price, Ending Balance	$ 8.69	$ 6.92	$ 4.88

Stockholders' Equity - Stock Options Outstanding and Exercisable (Details)	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Range One
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	$ 3.46
Range of Exercise Prices, Upper Range Limit	$ 3.92
Options Outstanding, Number of Shares \| shares	47,935
Options Outstanding, Weighted Average Remaining Contractual Life (years)	2 years 2 months 5 days
Options Outstanding, Weighted Average Exercise Price	$ 3.84
Options Vested and Exercisable, Number of Shares Exercisable \| shares	47,164
Options Vested and Exercisable, Weighted Average Exercise Price	$ 3.84
Range Two
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	3.95
Range of Exercise Prices, Upper Range Limit	$ 5.92
Options Outstanding, Number of Shares \| shares	73,182
Options Outstanding, Weighted Average Remaining Contractual Life (years)	2 years 10 months 13 days
Options Outstanding, Weighted Average Exercise Price	$ 5.01
Options Vested and Exercisable, Number of Shares Exercisable \| shares	60,241
Options Vested and Exercisable, Weighted Average Exercise Price	$ 4.86
Range Three
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	6.00
Range of Exercise Prices, Upper Range Limit	$ 8.16
Options Outstanding, Number of Shares \| shares	82,169
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 2 months 9 days
Options Outstanding, Weighted Average Exercise Price	$ 7.38
Options Vested and Exercisable, Number of Shares Exercisable \| shares	35,615
Options Vested and Exercisable, Weighted Average Exercise Price	$ 7.08
Range Four
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	8.29
Range of Exercise Prices, Upper Range Limit	$ 8.58
Options Outstanding, Number of Shares \| shares	60,799
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 2 months 1 day
Options Outstanding, Weighted Average Exercise Price	$ 8.45
Options Vested and Exercisable, Number of Shares Exercisable \| shares	38,325
Options Vested and Exercisable, Weighted Average Exercise Price	$ 8.45
Range Five
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	8.60
Range of Exercise Prices, Upper Range Limit	$ 10.33
Options Outstanding, Number of Shares \| shares	59,500
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 11 months 16 days
Options Outstanding, Weighted Average Exercise Price	$ 9.39
Options Vested and Exercisable, Number of Shares Exercisable \| shares	27,067
Options Vested and Exercisable, Weighted Average Exercise Price	$ 9.10
Range Six
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	10.45
Range of Exercise Prices, Upper Range Limit	$ 10.45
Options Outstanding, Number of Shares \| shares	400
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 2 months 1 day
Options Outstanding, Weighted Average Exercise Price	$ 10.45
Options Vested and Exercisable, Number of Shares Exercisable \| shares	200
Options Vested and Exercisable, Weighted Average Exercise Price	$ 10.45
Range Seven
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	10.73
Range of Exercise Prices, Upper Range Limit	$ 10.73
Options Outstanding, Number of Shares \| shares	61,223
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 1 month 24 days
Options Outstanding, Weighted Average Exercise Price	$ 10.73
Options Vested and Exercisable, Number of Shares Exercisable \| shares	26,098
Options Vested and Exercisable, Weighted Average Exercise Price	$ 10.73
Range Eight
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	11.04
Range of Exercise Prices, Upper Range Limit	$ 11.04
Options Outstanding, Number of Shares \| shares	15,800
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 2 months 1 day
Options Outstanding, Weighted Average Exercise Price	$ 11.04
Options Vested and Exercisable, Number of Shares Exercisable \| shares	885
Options Vested and Exercisable, Weighted Average Exercise Price	$ 11.04
Range Nine
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	12.85
Range of Exercise Prices, Upper Range Limit	$ 12.85
Options Outstanding, Number of Shares \| shares	32,500
Options Outstanding, Weighted Average Remaining Contractual Life (years)	6 years 9 months 26 days
Options Outstanding, Weighted Average Exercise Price	$ 12.85
Options Vested and Exercisable, Number of Shares Exercisable \| shares	118
Options Vested and Exercisable, Weighted Average Exercise Price	$ 12.85
Range Ten
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	16.29
Range of Exercise Prices, Upper Range Limit	$ 16.29
Options Outstanding, Number of Shares \| shares	37,477
Options Outstanding, Weighted Average Remaining Contractual Life (years)	6 years 6 months 26 days
Options Outstanding, Weighted Average Exercise Price	$ 16.29
Options Vested and Exercisable, Number of Shares Exercisable \| shares	686
Options Vested and Exercisable, Weighted Average Exercise Price	$ 16.29
Range Eleven
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	3.46
Range of Exercise Prices, Upper Range Limit	$ 16.29
Options Outstanding, Number of Shares \| shares	470,985
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 6 months 29 days
Options Outstanding, Weighted Average Exercise Price	$ 8.69
Options Vested and Exercisable, Number of Shares Exercisable \| shares	236,399
Options Vested and Exercisable, Weighted Average Exercise Price	$ 6.77

Stockholders' Equity - Weighted Average Assumptions for Fair Value of Options Granted (Details)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Weighted average assumptions for fair value of options granted
Average risk free interest rate	1.33%	1.38%	1.49%
Expected life (in years)	4 years 6 months 18 days	4 years 6 months 18 days	4 years 6 months
Average volatility	44.50%	49.30%	56.20%

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,821	$ 895	$ 972
Cost of revenues
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	119	223	149
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	134	176	105
Sales and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	164	185	118
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,404	$ 311	$ 600

Stockholders' Equity - Stock Options Outstanding, Exercisable and Expected to Vest (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Stock options outstanding, exercisable and expected to vest
Options outstanding, Number of Shares	470,985	551,492	833,795	1,102,842
Options outstanding, Weighted Average Exercise Price	$ 8.69	$ 6.92	$ 4.88	$ 3.97
Options outstanding, Weighted Average Remaining Contractual Life (years)	4 years 6 months 29 days
Options outstanding, Aggregate Intrinsic Value	$ 2,611
Options vested and expected to vest, Number of Shares	436,564
Options vested and expected to vest, Weighted Average Exercise Price	$ 8.48
Options vested and expected to vest, Weighted Average Remaining Contractual Life (years)	4 years 5 months 23 days
Options vested and expected to vest, Aggregate Intrinsic Value	$ 2,505
Options exercisable, Number of Shares	236,399
Options exercisable, Weighted Average Exercise Price	$ 6.77
Options exercisable, Weighted Average Remaining Contractual Life (years)	3 years 7 months 28 days
Options exercisable, Aggregate Intrinsic Value	$ 1,725

Stockholders' Equity - Restricted Stock Units Outstanding, Vested and Expected to Vest (Details) - Restricted Stock Units (RSUs) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Restricted stock units outstanding, vested and expected to vest
Restricted stock units outstanding, Number of Shares	335,805	147,589	277,390	269,259
Restricted stock units outstanding, Weighted Average Remaining Contractual Life (years)	1 year 11 months 12 days
Restricted stock units outstanding, Aggregate Intrinsic Value	$ 4,721
Restricted stock units vested and expected to vest, Number of Shares	218,412
Restricted stock units vested and expected to vest, Weighted Average Remaining Contractual Life (years)	1 year 10 months 13 days
Restricted stock units vested and expected to vest, Aggregate Intrinsic Value	$ 3,071

Stockholders' Equity - Restricted Stock Units and Awards (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Restricted stock units and awards
Number of Shares, Restricted stock granted	286,294	227,905	62,225
Restricted Stock Units (RSUs)
Restricted stock units and awards
Outstanding, Number of Shares, Beginning Balance	147,589	277,390	269,259
Number of Shares, Restricted stock granted	285,005	225,392	59,780
Number of Shares, Restricted stock released	(30,789)	(209,193)	(46,759)
Number of Shares, Restricted stock forfeited	(66,000)	(146,000)	(4,890)
Outstanding, Number of Shares, Ending Balance	335,805	147,589	277,390
Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance	$ 8.59	$ 5.52	$ 4.42
Weighted Average Grant Date Fair Value, Restricted stock granted	11.89	8.66	9.76
Weighted Average Grant Date Fair Value, Restricted stock released	8.30	4.82	4.29
Weighted Average Grant Date Fair Value, Restricted stock forfeited	9.67	8.28	8.18
Outstanding, Weighted Average Grant Date Fair Value, Ending Balance	$ 11.20	$ 8.59	$ 5.52
Restricted Stock Awards
Restricted stock units and awards
Outstanding, Number of Shares, Beginning Balance	2,513	2,445	3,503
Number of Shares, Restricted stock granted	1,289	2,513	2,445
Number of Shares, Restricted stock released	(2,513)	(2,445)	(3,503)
Outstanding, Number of Shares, Ending Balance	1,289	2,513	2,445
Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance	$ 7.96	$ 8.18	$ 5.71
Weighted Average Grant Date Fair Value, Restricted stock granted	15.51	7.96	8.18
Weighted Average Grant Date Fair Value, Restricted stock released	7.96	7.96	5.71
Outstanding, Weighted Average Grant Date Fair Value, Ending Balance	$ 15.51	$ 7.96	$ 8.18

Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
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	$ 226	$ 218	$ 186
Maximum
Defined Benefit Plan Disclosure [Line Items]
Employee contributions to plan				$ 3

Income Taxes - Income Before (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income before (benefit from) provision for income taxes
United States	$ (2,656)	$ 291	$ 1,332
(Loss) income from operations before provision for (benefit from) income taxes	$ (2,656)	$ 291	$ 1,332

Income Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Current:
Federal		$ (4)	$ 54
State	$ 4	30	16
Total	4	26	70
Deferred:
Federal	9,271	(12)	(7,862)
State	(218)	(197)	(914)
Total	9,053	(209)	(8,776)
Provision for (benefit from) income taxes	$ 9,057	$ (183)	$ (8,706)

Income Taxes - Effective Tax Rate Differs from the Statutory Federal Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
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	9.60%	(70.80%)	(68.00%)
Permanent differences	(1.50%)	12.00%	(1.10%)
Research and development credits	3.00%	(34.80%)	(2.60%)
Change in valuation allowance	(387.40%)		(613.50%)
Other	1.30%	(3.30%)	(2.40%)
Effective tax rate	(341.00%)	(62.90%)	(653.60%)

Income Taxes - Tax Effect of Temporary Differences and Carryforwards that Give Rise to Significant Portions of the Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets
Net operating losses	$ 4,411	$ 4,135
Research and development credits	2,113	1,820
Accruals and reserves	2,158	1,823
Deferred revenue	104	120
Property and equipment	396	399
Intangible assets	783	792
Stock compensation	972	613
Other tax credits	90	89
Net deferred tax asset	11,027	9,791
Valuation allowance	(11,095)	(806)
Net deferred tax assets		$ 8,985
Net deferred tax (liabilities)	$ (68)

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Income Taxes [Line Items]
Accrued interest and penalty	$ 0
Ending balance of unrecognized tax benefits	1,029,000	$ 937,000	$ 861,000	$ 1,027,000
Unrecognized tax benefits recognition impact on income tax rate	$ 1,000,000
Earliest Tax Year
Income Taxes [Line Items]
Open Tax Year	2010
Latest Tax Year
Income Taxes [Line Items]
Open Tax Year	2016
Federal
Income Taxes [Line Items]
Net operating loss	$ 13,800,000
Stock option deduction	$ 3,000,000
Net operating loss expiration year	2032
Research & development credit	$ 1,600,000
Tax credit carryforward expiration year	2026
State
Income Taxes [Line Items]
Net operating loss	$ 15,300,000
Stock option deduction	$ 2,500,000
Net operating loss expiration year	2020
Research & development credit	$ 2,300,000

Income Taxes - A Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
A reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance at the beginning of the year	$ 937	$ 861	$ 1,027
Additions based upon tax positions related to the current year	75	73	53
Additions based upon tax positions related to the prior year	17		51
Reductions based upon tax positions related to the prior year		3	(270)
Balance at the end of the year	$ 1,029	$ 937	$ 861

Loan and Security Agreement - Additional Information (Details) - Loan Agreement - Silicon Valley Bank - Revolving Loan Facility - USD ($)	Nov. 02, 2016	Dec. 31, 2016
Line Of Credit Facility [Line Items]
Borrowings available under secured revolving loan facility	$ 15,000,000
Loan facility, maturity date	Nov. 02, 2019
Secured revolving loan facility outstanding		$ 0
Wall Street Journal Prime Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable interest rate	1.50%

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Business Segments and Geographical Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) Segment	Jan. 02, 2016 USD ($)	Jan. 03, 2015
Segment Reporting Information [Line Items]
Number of operating segments \| Segment	1
Long-lived assets \| $	$ 0	$ 0
Customer Concentration Risk \| Revenue, Total
Segment Reporting Information [Line Items]
Percentage of concentration risk	10.00%	10.00%	10.00%
United States \| Customer Concentration Risk \| Revenue, Total
Segment Reporting Information [Line Items]
Percentage of concentration risk	54.50%	57.40%	52.80%

Business Segments and Geographical Information - Revenue Information by Geographic Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	$ 46,158	$ 41,757	$ 42,814
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	25,171	23,952	22,590
Europe
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	9,567	7,968	9,096
Rest of Americas
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	2,800	2,676	3,199
Asia/Pacific Rim
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	$ 8,620	$ 7,161	$ 7,929

Computation of Basic and Diluted Net Income Per Common Share - Reconciliation of Numerator and Denominator of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Numerator:
Net (loss) income	$ (11,713)	$ 474	$ 10,038
Denominator:
Weighted average shares of common stock (basic)	10,173	9,962	9,892
Effect of dilutive stock options		154	291
Effect of dilutive contingent shares		12	174
Weighted average shares of common stock (diluted)	10,173	10,128	10,357
Per share data:
Basic net (loss) income per share	$ (1.15)	$ 0.05	$ 1.01
Diluted net (loss) income per share	$ (1.15)	$ 0.05	$ 0.97

Computation of Basic and Diluted Net Income Per Common Share - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
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	470,985	249,064	116,320

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 03, 2017	Dec. 31, 2016
Subsequent Event [Line Items]
Proceeds from new stock issuance		$ 14,813
Subsequent Event \| Overallotment Option
Subsequent Event [Line Items]
Additional new common shares issued	172,500
Common shares price per share	$ 14.00
Proceeds from new stock issuance	$ 2,300
Deducting of underwriting commission from common shares	$ 100

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events On January 3, 2017, the Company issued an additional 172,500 new common shares in connection with the underwriters exercising their overallotment option at $14.00 per share, before underwriting discount and commissions. The new stock issuance generated net proceeds to the Company of approximately $2.3 million, after deducting underwriting commissions of $0.1 million.

Goodwill	12 Months Ended
Goodwill	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	6. Goodwill The carrying value of goodwill was $533 thousand as of December 31, 2016 and January 2, 2016, respectively. 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 2016, 2015 or 2014.