0001564590-22-010477 | 10-K | XBRL Viewer

Entity Wide Information Revenue From External Customer [Line Items]

$ 53,903

$ 36,347

Cyclo G6

Entity Wide Information Revenue From External Customer [Line Items]

13,950

11,272

Retina

Entity Wide Information Revenue From External Customer [Line Items]

31,106

18,088

Other

^[1]

$ 8,847

$ 6,987

[1]

Other includes service contract revenues of $1,386 and $1,263 recognized during fiscal years 2021 and 2020, respectively. Also includes $615 recognized revenue related to the exclusive distribution rights during fiscal year 2021. Other also includes revenues from paid service, royalty, freight and legacy G probes.

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balance, value at Dec. 28, 2019	$ 22,705	$ 147	$ 73,093	$ 80	$ (50,615)
Beginning Balance, shares at Dec. 28, 2019		13,785,233
Employee stock-based compensation expense	1,119		1,119
Release of restricted stock, including net share settlement	(30)	$ 1	(31)
Release of restricted stock, including net share settlement, Shares		114,450
Other comprehensive income	(99)			(99)
Net loss	(6,329)				(6,329)
Ending Balance, value at Jan. 02, 2021	$ 17,366	$ 148	74,181	(19)	(56,944)
Ending Balance, shares at Jan. 02, 2021	13,899,683	13,899,683
Issuance of common stock, net of issuance costs	$ 9,878	$ 16	9,862
Issuance of common stock, net of issuance costs, shares		1,618,122
Issuance of common stock under stock option plan	$ 217	$ 1	216
Issuance of common stock under stock option plan, shares	66,234	66,234
Employee stock-based compensation expense	$ 1,628		1,628
Release of restricted stock, including net share settlement	(629)	$ 3	(632)
Release of restricted stock, including net share settlement, Shares		292,132
Other comprehensive income	64			64
Net loss	(5,225)				(5,225)
Ending Balance, value at Jan. 01, 2022	$ 23,299	$ 168	$ 85,255	$ 45	$ (62,169)
Ending Balance, shares at Jan. 01, 2022	15,876,171	15,876,171

Business Segments and Geographical Information - Revenue Information by Geographic Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	$ 53,903	$ 36,347
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	25,561	19,312
Europe
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	13,573	8,006
Americas, excluding the U.S.
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	2,543	1,967
Asia/Pacific Rim
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenues	$ 12,226	$ 7,062

Financial Statement Presentation

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Financial Statement Presentation.

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

Our fiscal year always ends on the Saturday closest to December 31. Fiscal 2021 ended on January 1, 2022 (“FY 2021”) and Fiscal 2020 ended on January 2, 2021 (“FY 2020”). Fiscal years 2021 and 2020 included 52 weeks and 53 weeks of operations, respectively.

Use of Estimates

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

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. Our 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

Sales Returns Allowance and Allowance for Doubtful Accounts.

When determining the transaction price, we estimate the variable consideration as the most likely amount to which we expect to be entitled, and we include the estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue will not occur when the uncertainty associated with the variable consideration is resolved. 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. There was no provision for sales returns as of either January 1, 2022 and January 2, 2021.

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.

A reconciliation of the changes in our allowance for doubtful accounts balances for the years ended January 1, 2022 and January 2, 2021 are as follows (in thousands):

	Balance at							Balance
	Beginning of							at End of
Description	the period		Additions		(Deductions)			the period
Allowance for doubtful accounts Years ended
January 1, 2022		244		37		(13	)		268
January 2, 2021		187		181		(124	)		244

Inventories

Inventories.

Inventories are stated at the lower of cost or net realizable value 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 net realizable value 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 and marketing expense while the amortization on the loaners is charged to cost of revenues. The gross value of demos and loaners was $2.0 million and $1.9 million and the accumulated amortization was $1.7 million and $1.7 million as of January 1, 2022 and January 2, 2021, 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.

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.

Leases

Leases.

We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) assets, net and Operating lease liabilities in our consolidated balance sheets. As of January 1, 2022, the Company was not a party to finance lease arrangements.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Under the available practical expedient, we account for the lease and non-lease components as a single lease component.

Valuation of Goodwill and Intangible Assets

Valuation of Goodwill and Intangible Assets.

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performs an annual impairment test 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 carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment, its common stock price is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit and can lead to potential impairment in future periods. The Company performed its annual impairment test during the second quarter of fiscal 2021 and determined that its goodwill was not impaired. As of January 1, 2022, 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 Standards Codification (“ASC”) 350, “Intangibles – Goodwill and Other” (“ASC 350”).

Revenue Recognition

Revenue Recognition.

Our revenues arise from the sale of laser consoles, delivery devices, consumables, service, and support activities. We also derive revenue from royalties from third parties which are typically based on licensees’ net sales of products that utilize our technology. Our revenue is recognized in accordance with ASC 606, “Revenue from Contracts with Customers.”

The Company has the following revenue transaction types: (1) Product Sale Only, (2) Laser Advantage Program (“LAP”), (3) Service Contracts, (4) System Repairs (outside of warranty), (5) Royalty Revenue and (6) Exclusive Distribution Rights.

(1)

Product Sale Only: The Company’s products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes. The Company’s products are currently sold for use by ophthalmologists specializing in the treatment of glaucoma and retinal diseases. Inside the United States and Germany the products are sold directly to the end users. In other countries outside of the United States and Germany, the Company utilizes independent, third-party distributors to market and sell the Company’s products. There is no continuing obligation after shipment is made to these distributors.

The Company recognizes revenue from product sale at a point in time. When a system or disposables are sold without any additional deliverables, the Company recognizes revenue using the five-step model: (1) identifying the contract with the customer, (2) identifying the performance obligations in the contract, (3) determining expected transaction price, (4) allocating the transaction price to the distinct performance obligations in the contract, and (5) recognizing revenue when (or as) the performance obligations are satisfied.

(2)

LAP Program: The Company entered into LAP contracts with customers. Under the LAP program, the system is given away free of charge and title is transferred after the customer purchases the minimum required number of boxes of probes (classified as disposables). Customers with older machines have the ability to trade in their old machines for the most current laser equipment offered in the program (Cyclo G6 Laser) and receive a discount on the program’s minimum purchase requirements. Under ASC 606, this non-cash consideration must be included in the transaction price. However, the Company has determined that there is no value associated with the old machines and the trade in is essentially offered to encourage customers to purchase more consumables under the program.

The Company recognizes revenue from product sales under the LAP program at a point in time. The Company allocates the transaction price of the distinct performance obligations in the contract by determining stand-alone selling price using historical pricing net of any variable consideration or discounts to specifically allocate to a particular performance obligation.

(3)

Service Contracts: The Company offers a standard two-year warranty on all system sales. The Company also offers a service contract which is sold to customers in incremental, one-year periods which begin subsequent to the expiration of the standard two-year warranty. The customer can opt to purchase the service contract at the time of the system sale or after the initial system sale.

The Company recognizes revenue from service contracts ratably over the service period. Revenue recognition for the sale of a service contract is largely dependent on the timing of the sale as follows:

Service Contract Sale in Conjunction with System Sale: If the customer opts to purchase a service contract at the time of the system sale, the Company allocates the transaction price of the distinct performance obligations in the contract by determining stand-alone selling price using historical pricing net of any variable consideration or discounts to specifically allocate to a particular performance obligation.

Service Contract Sale Subsequent to System Sale: If the customer opts to purchase a service contract after the initial system sale, the Company determines the amount of time that has elapsed since the initial system sale. If the service contract is purchased within 60 days of the initial sale, the Company considers this sale to be an additional element of the original sale and allocates the transaction price of the distinct performance obligations in the contract by determining stand-alone selling price using historical pricing net of any variable consideration or discounts to specifically allocate to a particular performance obligation. If the service contract is purchased subsequent to 60 days after the initial sale, the sale of the service contract is deemed a separate contract and is deferred at the selling price and recognized ratably over the extended warranty period as the performance obligation is satisfied.

(4)

System Repairs (outside of warranty): Customers will occasionally request repairs from the Company subsequent to the expiration of the standard warranty and outside of a service contract.

The Company recognizes revenue from system repairs (outside of warranty) at a point in time. When the customer requests repairs from the Company subsequent to the expiration of the standard warranty and outside of a service contract, these repair contracts are considered separate from the initial sale, and as such, revenue is recognized as the repair services are rendered and the performance obligation satisfied.

(5)

Royalty Revenue: The Company has royalty agreements with two customers related to sale of the Company’s intellectual property. Under the terms of these agreements, the customer is to remit a percentage of sales to the Company.

Since these arrangements are for sales-based licenses of intellectual property, for which the guidance in paragraph ASC 606-10-55-65 applies, the Company recognizes revenue only as the subsequent sale occurs. However, the Company notes that such sales being reported by the licensee with a quarter in arrear, such revenue is recognized at the time it is reported and paid by the licensee given that any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimate and the unavoidable risk that it may lead to significant revenue reversals.

(6)

Exclusive Distribution Rights: In March 2021, the Company entered into a distribution agreement with Topcon, pursuant to which the Company granted Topcon the exclusive right to distribute the Company’s retina and glaucoma products in certain geographies outside the United States. The exclusivity arrangement with Topcon obligates the Company to provide training, customer support, and exclusive territorial rights to Topcon for certain international regions, for a period of 10 years, commencing upon regulatory approval to transfer existing (non-exclusive) distribution rights from the current distributors in those regions to Topcon. The agreement further stipulates that $2.0 million of arrangement fee is held back and will not be paid in the event that regulatory approval for the Japan region is not obtained within nine months from the date of execution of the agreement. The Company has the right to terminate the exclusive distribution rights granted to Topcon for any of the regions at any point in time during the 10-year exclusivity term for a termination fee that is based on a multiple of 1.2 times the revenue generated by the Company in 2019 for the respective region. Management has determined that the exclusivity rights, training, and customer support represents a single combined performance obligation for each region, to be recognized as exclusivity fee revenue on a straight-line basis over the 10-year period for each region, commencing on the date that regulatory approval is obtained for each region, based on the SSP for such combined performance obligation for each region. The estimated fair value of the exclusive distribution rights for all regions combined totaled approximately $14.8 million. Of this amount, management has fully-constrained the arrangement fee allocated to Belarus (approximately $0.2 million, recorded as customer deposit under other current liabilities) because obtaining the necessary regulatory approvals and termination of existing distributor relationship is not feasible. As of January 1, 2022, $0.6 million in revenue related to the exclusive distribution rights was recorded for the fiscal year then ended.

In January 2022, the Company received approximately $1.8 million from Topcon, representing the $2.0 million previously held back, net of the approximately $0.2 million that the Company constrained for Belarus.

The Company elected the practical expedient allowing it to not recognize as a contract asset the commission paid to its salesforce on the sale of its products as an incremental cost of obtaining a contract with a customer but rather recognize such commission as expense when incurred as the amortization period of the asset that the Company would have otherwise recognized is one year or less.

The Company recognized an asset from the costs incurred to fulfill a contract. These costs relate directly and must be incurred to satisfy performance obligations on certain specific contract with a customer. These costs are expected to be recovered over time and will be amortized on a systematic basis that is consistent with the recognition of revenue to which it relates. As of January 1, 2022, recognized deferred costs incurred to fulfill a contract with a customer amounted to $0.3 million, included in Prepaid expenses and other current assets and Other long-term assets in the Company’s consolidated balance sheets. There was no amortization during fiscal year 2021.

Taxes Collected from Customers and Remitted to Governmental Authorities

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

Deferred Revenue.

Deferred revenue represents contract liabilities. Revenue related to extended 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 January 1, 2022 and January 2, 2021 are as follows (in thousands):

FY 2019: Balance as of December 28, 2019	$	1,810
Additions to deferral		1,610
Revenue recognized		(2,190	)
Deductions from reserves		(3	)
FY 2020: Balance as of January 2, 2021		1,227
Additions to deferral		14,503
Revenue recognized		(2,445	)
FY 2021: Balance as of January 1, 2022	$	13,285

During each of the twelve months ended January 1, 2022 and January 2, 2021, approximately $0.9 million and $1.3 million were recognized pertaining to amounts deferred as of January 2, 2021 and December 28, 2019, respectively.

Warranty

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. The Company’s warranty policy is applicable to products which are considered defective in their performance or fail to meet the product specifications. Additionally, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. 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 January 1, 2022 and January 2, 2021 are as follows (in thousands):

FY 2019: Balance as of December 28, 2019	$	536
Accruals for product warranties		128
Cost of warranty claims		(108	)
Adjustment to pre-existing warranties		(309	)
FY 2020: Balance as of January 2, 2021		247
Accruals for product warranties		105
Cost of warranty claims		(158	)
Adjustment to pre-existing warranties		(36	)
FY 2021: Balance as of January 1, 2022	$	158

Shipping and Handling Costs

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 billed to customers amounted to $0.3 million and $0.2 million during fiscal years 2021 and 2020, respectively.

Research and Development

Research and Development.

Research and development expenditures are charged to operations as incurred.

Advertising

Advertising.

Advertising and promotion costs are expensed as they are incurred; such costs were approximately $0.2 million in 2021 and $0.1 million in 2020 and are included in sales and marketing expenses in the accompanying consolidated statements of operations.

Income Taxes

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. As of January 1, 2022, based on the Company's recent history of losses and its forecasted losses, management believes on the more likely than not basis that a full valuation allowance is required. Accordingly, as of January 1, 2022, the Company provided a full valuation allowance on its federal and states deferred tax assets.

Accounting for Uncertainty in Income Taxes

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 years ended January 1, 2022 and January 2, 2021.

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation.

We account for stock-based compensation granted to employees and directors, including employees stock option awards and restricted stock units in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”). Accordingly, stock-based compensation cost is measured at grant date, based on the fair value of the award. 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. Time-based restricted stock units are valued at the grant date fair value of the underlying common shares. Performance-based restricted stock units without market conditions are valued at grant date fair value of the underlying common shares. Performance-based RSUs granted with market conditions and performance-based stock options with market conditions 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 stock-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

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 year ended January 1, 2022, one customer, Topcon, accounted for greater than 10% of total revenues, representing 21%. For the year ended January 2, 2021, no single customer accounted for greater than 10% of total revenues. As of January 1, 2022, two customers, including Topcon, accounted for over 10% of our accounts receivable, representing 31% and 11%, respectively. As of January 2, 2021, one customer accounted for more than 10% of accounts receivable balance, representing 13%.

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 material adverse impact on our business, results of operations and financial condition.

Reliance on Certain Suppliers

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 (Loss) per Share

Net Income (Loss) per Share.

Basic net income (loss) 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 and release (vesting) of restricted stock units and awards 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 18 - Computation of Basic and Diluted Net Loss Per Common Share.

Reclassifications

Certain reclassifications have been made to the prior year consolidated financial statements included in these consolidated financial statements to conform to the current year presentation. The reclassifications had no impact on previously reported net loss, accumulated deficit, total assets, or total liabilities.

Foreign Currency

Assets and liabilities of foreign operation with non-U.S. Dollar functional currency are translated to U.S. Dollars using exchange rates in effect at the end of the period. Revenue and expenses are translated to U.S. Dollars using rates that approximate those in effect during the period. The resulting translation adjustments are included in the Company’s Consolidated Balance Sheets in the stockholders’ equity section as a component of accumulated other comprehensive loss (loss).

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards. The standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies and simplifies other aspects of the accounting for income taxes. The Company adopted ASU 2019-12 in fiscal year 2021 and the standard did not have a material impact on its consolidated financial statements.

Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Property Plant And Equipment [Abstract]
Depreciation expense	$ 640	$ 488

Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Compensation And Retirement Disclosure [Abstract]
Defined Contribution Plan Employee Contribution Percentage	15.00%
Total matching contributions made by the company	$ 201	$ 0

Computation of Basic and Diluted Net Loss 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
	Jan. 01, 2022	Jan. 02, 2021
Numerator:
Net loss	$ (5,225)	$ (6,329)
Denominator:
Weighted average shares of common stock (basic)	15,421	13,842
Weighted average shares of common stock (diluted)	15,421	13,842
Per share data:
Basic net loss per share	$ (0.34)	$ (0.46)
Diluted net loss per share	$ (0.34)	$ (0.46)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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

Fair Value Measurement (Tables)

12 Months Ended

Jan. 01, 2022

Fair Value Disclosures [Abstract]

As of January 1, 2022 and January 2, 2021, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands):

	As of January 1, 2022								As of January 2, 2021
	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	$	23,359	$	—	$	—	$	23,359	$	11,051	$	—	$	—	$	11,051

Summary of Significant Accounting Policies - Reconciliation of Changes in Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of The period	$ 244	$ 187
Additions	37	181
Deductions	(13)	(124)
Balance at End of The period	$ 268	$ 244

Stockholders' Equity - Stock Options Outstanding, Exercisable and Expected to Vest (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock options outstanding, exercisable and expected to vest
Options outstanding, Number of Shares	1,772,621	1,649,540	1,383,552
Options outstanding, Weighted Average Exercise Price	$ 5.07	$ 4.67	$ 6.11
Options outstanding, Weighted Average Remaining Contractual Life (years)	5 years 5 months 12 days
Options outstanding, Aggregate Intrinsic Value	$ 2,796
Options vested and expected to vest, Number of Shares	1,603,903
Options vested and expected to vest, Weighted Average Exercise Price	$ 5.08
Options vested and expected to vest, Weighted Average Remaining Contractual Life (years)	5 years 4 months 2 days
Options vested and expected to vest, Aggregate Intrinsic Value	$ 2,565
Options exercisable, Number of Shares	693,294
Options exercisable, Weighted Average Exercise Price	$ 5.69
Options exercisable, Weighted Average Remaining Contractual Life (years)	4 years 2 months 26 days
Options exercisable, Aggregate Intrinsic Value	$ 1,035

Loan and Security Agreement - Additional Information (Details) - Silicon Valley Bank - Revolving Loan Facility - USD ($)		1 Months Ended
	Nov. 02, 2016	Dec. 31, 2020	Jan. 31, 2020	Jan. 01, 2022	Jan. 02, 2021
Line Of Credit Facility [Line Items]
Secured revolving loan facility outstanding				$ 0	$ 0
Loan Agreement
Line Of Credit Facility [Line Items]
Borrowings available under secured revolving loan facility	$ 15,000,000.0
Loan facility, maturity date	Nov. 02, 2019
Loan Agreement, First Amendment
Line Of Credit Facility [Line Items]
Debt instrument, extension date			Jan. 01, 2020
Loan Agreement, Second Amendment
Line Of Credit Facility [Line Items]
Borrowings available under secured revolving loan facility			$ 8,000,000.0
Debt instrument, extension date			Jan. 01, 2021
Loan Agreement, Third Amendment
Line Of Credit Facility [Line Items]
Debt instrument, extension date		Apr. 01, 2022
Wall Street Journal Prime Rate \| Loan Agreement
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable interest rate	1.50%

Business Segments and Geographical Information

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Business Segments and Geographical Information

17. Business Segments and Geographical Information

We operate in one segment, ophthalmology. Substantially all of our long-term assets are located in the U.S. 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 product is as follows (in thousands):

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Cyclo G6	$	13,950	$	11,272
Retina		31,106		18,088
Other(1)		8,847		6,987
Total revenues	$	53,903	$	36,347
(1) Other includes service contract revenues of $1,386 and $1,263 recognized during fiscal years 2021 and 2020, respectively. Also includes $615 recognized revenue related to the exclusive distribution rights during fiscal year 2021. Other also includes revenues from paid service, royalty, freight and legacy G probes.

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

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
United States	$	25,561	$	19,312
Europe		13,573		8,006
Asia/Pacific Rim		12,226		7,062
Americas, excluding the U.S.		2,543		1,967
	$	53,903	$	36,347

Revenues are attributed to countries based on location of end customers. Other than the United States, Japan accounted for more than 10% of the Company’s revenues during fiscal year 2021, representing 13.5%. The United States accounted for 47.4% of revenues in 2021. For fiscal year 2020 no individual country accounted for more than 10% of our sales, except for the United States, which accounted for 53.1%.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reconciliation of Numerator and Denominator of Basic and Diluted Net Income Per Common Share

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

12 Months Ended

Jan. 01, 2022

Earnings Per Share [Abstract]

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 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Numerator:
Net loss	$	(5,225	)	$	(6,329	)
Denominator:
Weighted average shares of common stock (basic)		15,421			13,842

Weighted average shares of common stock (diluted)		15,421			13,842
Per share data:
Basic net loss per share	$	(0.34	)	$	(0.46	)
Diluted net loss per share	$	(0.34	)	$	(0.46	)

Stockholders' Equity (Tables)

12 Months Ended

Jan. 01, 2022

Equity [Abstract]

Share Activity and Total Number of Share Available for Grant

The following table represents the shares activity and the total number of shares available for grant under the Incentive Plan:

	Shares Available for Grant
Balances as of December 28, 2019		1,107,523
Options granted		(523,650	)
Restricted stock granted		(557,816	)
Options cancelled or forfeited		257,662
Awards cancelled		194,303
Balances as of January 2, 2021		478,022
Additional shares reserved		1,000,000
Options granted		(348,363	)
Restricted stock granted		(257,397	)
Options cancelled or forfeited		159,048
Awards cancelled		91,071
Balances as of January 1, 2022		1,122,381

Stock-Based Compensation Expenses

The following table shows stock-based compensation expenses by functional area in the consolidated statements of operations for 2021 and 2020 (in thousands):

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Cost of revenues	$	328	$	133
Research and development		87		(4	)
Sales and marketing		518		429
General and administrative		695		561
Total stock-based compensation expense	$	1,628	$	1,119

Summary of Activity in Stock Option Plan

Summary of Stock Options

The following table summarizes information regarding activity in our stock option plans during the fiscal years ended 2021 and 2020 (in thousands except share and per share data):

	Outstanding Options
	Number of Shares			Weighted Average Exercise Price
Balances as of December 28, 2019		1,383,552		$	6.11
Options granted		523,650			2.13
Options exercised		—			—
Options cancelled or forfeited		(257,662	)		7.23
Balances as of January 2, 2021		1,649,540		$	4.67
Options granted		348,363			6.65
Options exercised		(66,234	)		3.27
Options cancelled or forfeited		(159,048	)		5.14
Balances as of January 1, 2022		1,772,621		$	5.07

Stock Options Outstanding and Exercisable

The following table summarizes information with respect to stock options outstanding and exercisable as of January 1, 2022:

	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
$1.82 - $2.12		12,613		4.85	$	2.00		5,146	$	2.04
$2.13 - $2.13		360,473		5.67	$	2.13		103,164	$	2.13
$2.18 - $4.85		164,315		4.53	$	2.99		89,575	$	3.09
$4.92 - $4.92		600,000		6.38	$	4.92		229,167	$	4.92
$4.98 - $6.57		183,354		4.54	$	5.75		106,659	$	5.54
$6.58 - $6.58		242,263		6.59	$	6.58		—	$	—
$6.76 - $11.16		174,141		2.80	$	9.25		124,121	$	9.88
$12.85 - $12.85		15,000		1.82	$	12.85		15,000	$	12.85
$14.61 - $14.61		20,000		2.18	$	14.61		20,000	$	14.61
$16.29 - $16.29		462		1.57	$	16.29		462	$	16.29
$1.82 - $16.29		1,772,621		5.45	$	5.07		693,294	$	5.69

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 2021			FY 2020
Average risk free interest rate		0.89	%		0.25	%
Expected life (in years)	4.45 years			4.55 years
Dividend yield		—			—
Average volatility		73.9	%		62.4	%

Stock Options Outstanding, Exercisable and Expected to Vest

Information regarding stock options outstanding, exercisable and expected to vest as of January 1, 2022 is summarized below:

	Number of		Weighted Average		Weighted Average Remaining Contractual		Aggregate Intrinsic Value
	Shares		Exercise Price		Life (years)		(thousands)
Options outstanding		1,772,621	$	5.07		5.45	$	2,796
Options vested and expected to vest		1,603,903	$	5.08		5.34	$	2,565
Options exercisable		693,294	$	5.69		4.24	$	1,035

Restricted Stock Units Outstanding, Vested and Expected to Vest

Information regarding the restricted stock units outstanding, vested and expected to vest as of January 1, 2022 is summarized below:

Number of

Weighted

Average

Remaining

Contractual

Life (years)

Aggregate

Intrinsic

Value (thousands)

Restricted stock units outstanding

253,761

1.08

1,550

Restricted stock units vested and expected to vest

221,439

1.02

1,353

Restricted Stock Units and Awards

Information regarding the RSU activity during the years ended January 1, 2022 and January 2, 2021 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 28, 2019		411,133		$	7.19
Restricted stock units granted		371,877		$	1.90
Restricted stock units released		(128,624	)	$	2.14
Restricted stock units forfeited		(129,535	)	$	5.48
Outstanding as of January 2, 2021		524,851		$	5.10
Restricted stock units granted		171,598		$	6.78
Restricted stock units released		(381,974	)	$	7.07
Restricted stock units forfeited		(60,714	)	$	4.16
Outstanding as of January 1, 2022		253,761		$	3.50

Business Segments and Geographical Information - Schedule of Revenue Information by Product (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Entity Wide Information Revenue From External Customer [Line Items]
Total revenues	$ 53,903	$ 36,347
Distribution Rights [Member]
Entity Wide Information Revenue From External Customer [Line Items]
Revenue Recognized	600
Service Contract Revenues
Entity Wide Information Revenue From External Customer [Line Items]
Total revenues	1,386	$ 1,263
Service Contract Revenues \| Distribution Rights [Member]
Entity Wide Information Revenue From External Customer [Line Items]
Revenue Recognized	$ 615

Significant Transactions

12 Months Ended

Jan. 01, 2022

Business Combinations [Abstract]

Significant Transactions

3. Significant Transactions

On March 2, 2021, the Company entered into a series of strategic transactions with Topcon, headquartered in Tokyo, Japan, in which (i) the Company purchased substantially all of the tangible and intangible assets of Topcon Medical Laser Systems, Inc. (“TMLS”) related to laser products previously manufactured and sold by TMLS, including the Pattern Scanning Laser (“PASCAL”) products, under the tradename “PASCAL” (altogether, the “PASCAL Business”); (ii) Topcon acquired an equity interest in the Company, comprised of the issuance of 1,618,122 shares of the Company’s common stock at $6.18 per share (as determined based on the average of the Nasdaq Official Closing Price of the Company’s common stock for the five trading days immediately preceding March 2, 2021); (iii) the Company granted Topcon the exclusive right to distribute certain of its products (including the PASCAL products) in certain international regions (the “Exclusive Distribution Rights”) and (iv) Topcon and the Company entered into the Manufacturing Services Agreement regarding transition of regulatory authorizations relating to, and manufacturing and supply of, the PASCAL products for a specified post-closing transition period. The transaction is expected to result in net proceeds to the Company of approximately $19.5 million (of which $17.5 million was received on March 10, 2021 with the remaining $2.0 million received on January 31, 2022. The net proceeds have been allocated on a fair value basis as follows (in thousands):

1) Issuance of common stock (before issuance costs)	$	10,000
2) Grant of exclusive distribution rights		14,800
3) Purchase of tangible and intangible assets		(5,343	)
Net Proceeds	$	19,457

The purchase of tangible and intangible assets has been recognized as an acquisition of a business with the relative fair value of the net consideration allocated to the tangible and intangible assets based on their preliminary estimated fair values as of the acquisition date.

Refer to Note 2. Summary of Significant Accounting Policies for the recognition of revenue under ASC 606 for the grant of exclusive distribution rights.

Acquisition of substantially all of TMLS’ assets including the rights to the PASCAL product.

On March 10, 2021, the Company completed the purchase of substantially all of the tangible and intangible assets of TMLS, which was an established leader in manufacturing and selling laser products under the tradename “PASCAL.” The acquisition has been recognized as an acquisition of a business and the purchase price (approximately $5.3 million) has been preliminarily allocated to tangible and identified intangible assets acquired based on their estimated fair values. As additional information becomes available, the Company may further revise the preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from March 10, 2021). Any such revisions or changes may be material.

The following table presents the preliminary allocation of the total purchase price:

	Estimated Fair Value (in thousands)
Inventory	$	2,319
Computers and Software		102
Manufacturing and Office Equipment		112
Other tangible assets		78
Developed Technology		900
In-process Research and Development (IPR&D)		1,000
Trade names and Trademarks		300
Customer Relationships		100
Goodwill		432
Total	$	5,343

Developed technology relates to PASCAL products, a pattern scanning laser used for retinal treatments, and was valued using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the developed technology less charges representing the contribution of other assets to those cash flows. The economic useful life is estimated to be seven years, as determined based on the technology cycle related to the developed technology, and the estimated cash flows over the forecast period.

IPR&D pertains to an upcoming release of PASCAL products and has been valued using the multi-period excess earnings method under the income approach.

Trade names and Trademarks pertain to the “PASCAL” trade name, and the fair value was determined by applying the relief-from-royalty method under the income approach. The economic useful life is estimated to be nine years, based on the expected life of the trade name and the cash flows anticipated over the forecast period.

Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of the PASCAL Business, with an estimated useful life of seven years.

Goodwill is primarily attributable to the assembled workforce and anticipated synergies and economies of scale expected from the integration of the PASCAL Business. Substantially all goodwill is deductible for tax purposes.

Fair Value Measurement - Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis (Details) - Fair Value Measurements Recurring - Money Market Funds - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Assets:
Assets, Fair Value Measurements	$ 23,359	$ 11,051
Level 1
Assets:
Assets, Fair Value Measurements	$ 23,359	$ 11,051

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (5,225)	$ (6,329)
Change in foreign currency translation adjustments	64	(99)
Comprehensive loss	$ (5,161)	$ (6,428)

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

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies (Tables)

12 Months Ended

Jan. 01, 2022

Schedule of Maturities of Operating Lease Liabilities

The following represents maturities of operating lease liabilities as of January 1, 2022 (in thousands):

Fiscal Year	Operating Lease Payments
2022	$	1,031
2023		1,084
2024		711
2025		—
2026		—
Total lease payments		2,826
Less: Imputed interest		(170	)
Total future minimum lease payments	$	2,656

Accrued Expenses and Other Current Liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Components of accrued expenses and other current liabilities
Legal and professional fees	$ 379	$ 326
Sales and marketing expenses	238	116
Temporary help and consulting	215	36
Royalties payable	97	89
Accrued rent		169
Tax payable	73
Other accrued expenses	573	254
Total accrued expenses	1,575	990
Customer deposits	1,098	802
Other miscellaneous		14
Total other current liabilities	$ 1,098	$ 816

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Reconciliation of Changes in Allowance for Doubtful Accounts

A reconciliation of the changes in our allowance for doubtful accounts balances for the years ended January 1, 2022 and January 2, 2021 are as follows (in thousands):

	Balance at							Balance
	Beginning of							at End of
Description	the period		Additions		(Deductions)			the period
Allowance for doubtful accounts Years ended
January 1, 2022		244		37		(13	)		268
January 2, 2021		187		181		(124	)		244

Reconciliation of Changes in Deferred Revenue

A reconciliation of the changes in our deferred revenue balances for the years ended January 1, 2022 and January 2, 2021 are as follows (in thousands):

FY 2019: Balance as of December 28, 2019	$	1,810
Additions to deferral		1,610
Revenue recognized		(2,190	)
Deductions from reserves		(3	)
FY 2020: Balance as of January 2, 2021		1,227
Additions to deferral		14,503
Revenue recognized		(2,445	)
FY 2021: Balance as of January 1, 2022	$	13,285

Reconciliation of Changes in Warranty Liability

A reconciliation of the changes in our warranty liability for the years ended January 1, 2022 and January 2, 2021 are as follows (in thousands):

FY 2019: Balance as of December 28, 2019	$	536
Accruals for product warranties		128
Cost of warranty claims		(108	)
Adjustment to pre-existing warranties		(309	)
FY 2020: Balance as of January 2, 2021		247
Accruals for product warranties		105
Cost of warranty claims		(158	)
Adjustment to pre-existing warranties		(36	)
FY 2021: Balance as of January 1, 2022	$	158

Loan and Security Agreement

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Loan and Security Agreement

16. Loan and Security Agreement

In November 2016, the Company entered into a Loan and Security Agreement (“Loan Agreement”) with Silicon Valley Bank providing for up to $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 Loan Agreement expired in November 2, 2019 and was amended (First Amendment to the Loan Agreement) to extend through January 1, 2020.

In January 2020, the Company reduced the credit line to match its expected borrowing base, which is reflected in the Second Amendment to the Loan Agreement providing for up to $8.0 million Revolving Loan Facility through January 1, 2021. The Third Amendment to the Loan Agreement was executed in December 2020 to extend the term through April 1, 2022.

As of January 1, 2022 and January 2, 2021, there were no amounts outstanding.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

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-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1C
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Schedule of Revenue Information by Product

Significant Transactions - Schedule of Allocation of Net Proceeds on Fair Value Basis (Details) $ in Thousands	Mar. 10, 2021 USD ($)
Business Combinations [Abstract]
Issuance of common stock (before issuance costs)	$ 10,000
Grant of exclusive distribution rights	14,800
Purchase of tangible and intangible assets	(5,343)
Net Proceeds	$ 19,457

Business Segments and Geographical Information (Tables)

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

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

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Cyclo G6	$	13,950	$	11,272
Retina		31,106		18,088
Other(1)		8,847		6,987
Total revenues	$	53,903	$	36,347
(1) Other includes service contract revenues of $1,386 and $1,263 recognized during fiscal years 2021 and 2020, respectively. Also includes $615 recognized revenue related to the exclusive distribution rights during fiscal year 2021. Other also includes revenues from paid service, royalty, freight and legacy G probes.

Revenue Information by Geographic Region

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

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
United States	$	25,561	$	19,312
Europe		13,573		8,006
Asia/Pacific Rim		12,226		7,062
Americas, excluding the U.S.		2,543		1,967
	$	53,903	$	36,347

Commitments and Contingencies

12 Months Ended

Jan. 01, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Operating Lease Commitments.

We lease our operating facilities in Mountain View, California, under a non-cancelable operating lease through February 28, 2022. On April 30, 2021, we amended our lease to reduce the portion of the premises leased by the Company and extend the lease term through August 31, 2024. There are no further options or rights to extend the term of this lease.

Our operating lease commitments consist of facility and office equipment leases. Operating lease expense for fiscal years 2021 and 2020 was approximately $1.1 million and $1.3 million, respectively. The weighted average discount rate used in calculating the present value of lease payments was 4.8%. As of January 1, 2022, the weighted average remaining lease term for our operating leases was 2.6 years.

The following represents maturities of operating lease liabilities as of January 1, 2022 (in thousands):

Fiscal Year	Operating Lease Payments
2022	$	1,031
2023		1,084
2024		711
2025		—
2026		—
Total lease payments		2,826
Less: Imputed interest		(170	)
Total future minimum lease payments	$	2,656

Purchase Commitments.

Our purchase commitments consist primarily of non-cancellable purchase orders with vendors to manufacture certain components and ophthalmic instruments. Future minimum payments for our purchase commitments as of January 1, 2022 were approximately $18.0 million.

License Agreements.

We are obligated to pay royalties equivalent to 1% to 5% of sales on certain products under certain license agreements with termination dates through the end of 2033. Royalty expense, charged to cost of revenues, was approximately $0.4 million and $0.3 million for fiscal years 2021 and 2020, 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 parties (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. These agreements also require us 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.

Legal Proceedings.

From time to time, we may be involved in legal proceedings arising in the ordinary course of business. In general, management believes that ordinary course of business matters 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 - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 29, 2018
Percentage of fair market value of Commons stock date of grant	100.00%
Share based payment award number of shares of common stock for each share	1.5
Total unrecognized compensation cost related to non-vested share-based compensation arrangements	$ 2,700
Cost is expected to be recognized over a weighted average period	2 years
Weighted-average grant date fair value of the options granted	$ 3.81	$ 1.06
Total intrinsic value of options exercised	$ 251	$ 0
Restricted stock units released, value withheld	$ (629)	$ (30)
Unvested restricted stock awarded	257,397	557,816
Restricted Stock Units (RSUs)
Grant of non-qualified stock option	$ 10		$ 40
The intrinsic value of the restricted stock units	$ 6.11
Number of shares, vested	381,974	128,624
Restricted stock units released, intrinsic value	$ 2,700
Restricted stock units released, Shares withheld	89,842
Restricted stock units released, value withheld	$ 629
Unvested restricted stock awarded	171,598	371,877
Weighted-average grant date fair value of restricted stock awarded	$ 6.78	$ 1.90
Stock awards modified to clarify the performance condition	56,900
Additional stock-based compensation expense	$ 400
2008 Equity Incentive Plan
Grant of non-qualified stock option	4,850,000
Performance Award \| Restricted Stock Units (RSUs)
Unvested restricted stock awarded	5,000
Weighted-average grant date fair value of restricted stock awarded	$ 8.34

Summary of Significant Accounting Policies

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Financial Statement Presentation.

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

Use of Estimates.

Cash and Cash Equivalents.

Sales Returns Allowance and Allowance for Doubtful Accounts.

A reconciliation of the changes in our allowance for doubtful accounts balances for the years ended January 1, 2022 and January 2, 2021 are as follows (in thousands):

	Balance at							Balance
	Beginning of							at End of
Description	the period		Additions		(Deductions)			the period
Allowance for doubtful accounts Years ended
January 1, 2022		244		37		(13	)		268
January 2, 2021		187		181		(124	)		244

Inventories.

Property and Equipment.

Leases.

Under the available practical expedient, we account for the lease and non-lease components as a single lease component.

Valuation of Goodwill and Intangible Assets.

Revenue Recognition.

(1)

(2)

(3)

(4)

System Repairs (outside of warranty): Customers will occasionally request repairs from the Company subsequent to the expiration of the standard warranty and outside of a service contract.

(5)

(6)

Taxes Collected from Customers and Remitted to Governmental Authorities.

Deferred Revenue.

A reconciliation of the changes in our deferred revenue balances for the years ended January 1, 2022 and January 2, 2021 are as follows (in thousands):

FY 2019: Balance as of December 28, 2019	$	1,810
Additions to deferral		1,610
Revenue recognized		(2,190	)
Deductions from reserves		(3	)
FY 2020: Balance as of January 2, 2021		1,227
Additions to deferral		14,503
Revenue recognized		(2,445	)
FY 2021: Balance as of January 1, 2022	$	13,285

Warranty.

A reconciliation of the changes in our warranty liability for the years ended January 1, 2022 and January 2, 2021 are as follows (in thousands):

FY 2019: Balance as of December 28, 2019	$	536
Accruals for product warranties		128
Cost of warranty claims		(108	)
Adjustment to pre-existing warranties		(309	)
FY 2020: Balance as of January 2, 2021		247
Accruals for product warranties		105
Cost of warranty claims		(158	)
Adjustment to pre-existing warranties		(36	)
FY 2021: Balance as of January 1, 2022	$	158

Shipping and Handling Costs.

Research and Development.

Research and development expenditures are charged to operations as incurred.

Advertising.

Income Taxes.

Accounting for Uncertainty in Income Taxes.

Accounting for Stock-Based Compensation.

Concentration of Credit Risk and Other Risks and Uncertainties.

approvals were delayed, it would have a material adverse impact on our business, results of operations and financial condition.

Reliance on Certain Suppliers.

Net Income (Loss) per Share.

Reclassifications

Foreign Currency

Recently Adopted Accounting Standards.

Computation of Basic and Diluted Net Loss Per Common Share

12 Months Ended

Jan. 01, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Common Share

18. Computation of Basic and Diluted Net Loss 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 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Numerator:
Net loss	$	(5,225	)	$	(6,329	)
Denominator:
Weighted average shares of common stock (basic)		15,421			13,842

Weighted average shares of common stock (diluted)		15,421			13,842
Per share data:
Basic net loss per share	$	(0.34	)	$	(0.46	)
Diluted net loss per share	$	(0.34	)	$	(0.46	)

As of January 1, 2022 and January 2, 2021, stock options, restricted stock units and restricted stock awards of 1,655,218 and 1,407,410 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding because to do so would have been anti-dilutive.

Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 163	$ 16

Property and Equipment (Tables)

12 Months Ended

Jan. 01, 2022

Property Plant And Equipment [Abstract]

Component of Property and Equipment

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

	FY 2021			FY 2020
	January 1, 2022			January 2, 2021
Equipment	$	11,360		$	10,760
Leasehold improvements		2,454			2,464
Less: accumulated depreciation and amortization		(13,386	)		(12,775	)
Property and equipment, net	$	428		$	449

Property and Equipment - Component of Property and Equipment (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Component of property and equipment
Less: accumulated depreciation and amortization	$ (13,386)	$ (12,775)
Property and equipment, net	428	449
Equipment
Component of property and equipment
Property and equipment, gross	11,360	10,760
Leasehold Improvements
Component of property and equipment
Property and equipment, gross	$ 2,454	$ 2,464

Property and Equipment

12 Months Ended

Jan. 01, 2022

Property Plant And Equipment [Abstract]

Property and Equipment

7. Property and Equipment

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

	FY 2021			FY 2020
	January 1, 2022			January 2, 2021
Equipment	$	11,360		$	10,760
Leasehold improvements		2,454			2,464
Less: accumulated depreciation and amortization		(13,386	)		(12,775	)
Property and equipment, net	$	428		$	449

Depreciation expense related to property and equipment was $640 thousand and $488 thousand for the fiscal years 2021 and 2020, respectively.

Accrued Expenses and Other Current Liabilities

12 Months Ended

Jan. 01, 2022

Payables And Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

10. Accrued Expenses and Other Current Liabilities

The components of our accrued expenses and other current liabilities are as follows (in thousands):

	FY 2021		FY 2020
	January 1, 2022		January 2, 2021
Legal and professional fees	$	379	$	326
Sales and marketing expenses		238		116
Temporary help and consulting		215		36
Royalties payable		97		89
Accrued rent		—		169
Tax payable		73		—
Other accrued expenses		573		254
Total accrued expenses	$	1,575	$	990

	FY 2021		FY 2020
	January 1, 2022		January 2, 2021
Customer deposits	$	1,098	$	802
Other miscellaneous		—		14
Total other current liabilities	$	1,098	$	816

Significant Transactions (Tables)

12 Months Ended

Jan. 01, 2022

Business Combinations [Abstract]

Schedule of Allocation of Net Proceeds on Fair Value Basis

The net proceeds have been allocated on a fair value basis as follows (in thousands):

1) Issuance of common stock (before issuance costs)	$	10,000
2) Grant of exclusive distribution rights		14,800
3) Purchase of tangible and intangible assets		(5,343	)
Net Proceeds	$	19,457

Schedule of Preliminary Allocation of Purchase Price

The following table presents the preliminary allocation of the total purchase price:

	Estimated Fair Value (in thousands)
Inventory	$	2,319
Computers and Software		102
Manufacturing and Office Equipment		112
Other tangible assets		78
Developed Technology		900
In-process Research and Development (IPR&D)		1,000
Trade names and Trademarks		300
Customer Relationships		100
Goodwill		432
Total	$	5,343

Fair Value Measurement

12 Months Ended

Jan. 01, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement

5. 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 January 1, 2022 and January 2, 2021, approximate fair value because of the short maturity of these instruments. The carrying amount of the Company’s PPP Loan as of January 2, 2021, approximates its fair value based on the specified interest rate.

	As of January 1, 2022								As of January 2, 2021
	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	$	23,359	$	—	$	—	$	23,359	$	11,051	$	—	$	—	$	11,051

The Company’s Level 1 financial assets are money market funds whose fair values are based on quoted market prices. The Company does not have any Level 2 and Level 3 financial assets or liabilities.

Paycheck Protection Program (“PPP”) Loan

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

+ References + Details

Inventories

12 Months Ended

Jan. 01, 2022

Inventory Disclosure [Abstract]

Inventories

6. Inventories

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

	FY 2021		FY 2020
	January 1, 2022		January 2, 2021
Raw materials	$	3,937	$	2,236
Work in process		201		548
Finished goods		3,476		2,930
Total inventories	$	7,614	$	5,714

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Taxes [Line Items]
Accrued interest and penalty	$ 0
Ending balance of unrecognized tax benefits	1,308,000	$ 1,220,000	$ 1,192,000
Unrecognized tax benefits recognition impact on income tax rate	$ 0
Earliest Tax Year
Income Taxes [Line Items]
Open Tax Year	2012
Latest Tax Year
Income Taxes [Line Items]
Open Tax Year	2021
Federal
Income Taxes [Line Items]
Net operating loss	$ 55,400,000
Net operating loss expiration year	2033
Federal \| Research Tax Credit Carryforward
Income Taxes [Line Items]
Research credit	$ 2,200,000
State
Income Taxes [Line Items]
Net operating loss	$ 26,200,000
Net operating loss expiration year	2022
State \| Research Tax Credit Carryforward
Income Taxes [Line Items]
Research credit	$ 3,100,000

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 23,852	$ 11,626
Accounts receivable, net of allowance for doubtful accounts of $268 as of January 1, 2022 and $244 as of January 2, 2021	6,610	7,289
Receivable from related party	3,106
Inventories	7,614	5,714
Prepaid expenses and other current assets	1,071	730
Total current assets	42,253	25,359
Property and equipment, net	428	449
Intangible assets, net	2,205	68
Goodwill	965	533
Operating lease right-of-use assets, net	2,565	1,428
Other long-term assets	271	132
Total assets	48,687	27,969
Current liabilities:
Accounts payable	2,772	1,148
Payable to related party	627
Accrued compensation	3,192	1,965
Accrued expenses	1,575	990
Other current liabilities	1,098	816
Current portion of PPP loan		1,249
Accrued warranty	100	166
Deferred revenue	2,355	938
Operating lease liabilities	927	1,409
Total current liabilities	12,646	8,681
Long-term liabilities:
PPP loan		1,248
Accrued warranty	58	81
Deferred revenue	10,930	289
Operating lease liabilities	1,729	282
Other long-term liabilities	25	22
Total liabilities	25,388	10,603
Commitments and contingencies (Note 12)
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 15,876,171 and 13,899,683 shares as of January 1, 2022 and January 2, 2021, respectively	168	148
Additional paid-in capital	85,255	74,181
Accumulated other comprehensive income (loss)	45	(19)
Accumulated deficit	(62,169)	(56,944)
Total stockholders’ equity	23,299	17,366
Total liabilities and stockholders’ equity	$ 48,687	$ 27,969

Income Taxes - A Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
A reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance at the beginning of the year	$ 1,220	$ 1,192
Additions based upon tax positions related to the current year	88	28
Balance at the end of the year	$ 1,308	$ 1,220

Intangible Assets - Components of Purchased Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Components of purchased intangible assets
Annual Amortization	$ 163	$ 16
Gross Carrying Value	3,140	840
Accumulated Amortization	935	772
Net Carrying Value	$ 2,205	$ 68
Customer Relations
Components of purchased intangible assets
Useful Lives	15 years	15 years
Useful Lives Remaining	5 years 29 days	4 years 3 months
Annual Amortization	$ 28	$ 16
Gross Carrying Value	340	240
Accumulated Amortization	200	172
Net Carrying Value	$ 140	68
Developed technology
Components of purchased intangible assets
Useful Lives	7 years
Useful Lives Remaining	6 years 2 months 1 day
Annual Amortization	$ 107
Gross Carrying Value	900
Accumulated Amortization	107
Net Carrying Value	$ 793
In-process R&D
Components of purchased intangible assets
Useful Lives	7 years
Gross Carrying Value	$ 1,000
Net Carrying Value	$ 1,000
Trade names
Components of purchased intangible assets
Useful Lives	9 years
Useful Lives Remaining	8 years 2 months 1 day
Annual Amortization	$ 28
Gross Carrying Value	300
Accumulated Amortization	28
Net Carrying Value	272
Patents
Components of purchased intangible assets
Gross Carrying Value	600	600
Accumulated Amortization	$ 600	$ 600

Intangible Assets - Estimated Future Amortization Expense for Purchased Intangible Assets (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Estimated future amortization expense for purchased intangible assets
2022	$ 192
2023	192
2024	192
2025	180
2026	176
Thereafter	273
Net Carrying Value	$ 1,205

Stockholders' Equity - Summary of Share Activity and Total Number of Share Available for Grant (Details) - shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]
Shares Available for Grant, Beginning Balance	478,022	1,107,523
Shares Available for Grant, Additional shares reserved	1,000,000
Shares Available for Grant, Options granted	(348,363)	(523,650)
Shares Available for Grant, Restricted stock granted	(257,397)	(557,816)
Shares Available for Grant, Options cancelled or forfeited	159,048	257,662
Shares Available for Grant, Awards cancelled	91,071	194,303
Shares Available for Grant, Ending Balance	1,122,381	478,022

Stockholders' Equity - Weighted Average Assumptions for Fair Value of Options Granted (Details)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Weighted average assumptions for fair value of options granted
Average risk free interest rate	0.89%	0.25%
Expected life (in years)	4 years 5 months 12 days	4 years 6 months 18 days
Average volatility	73.90%	62.40%

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 268	$ 244
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	15,876,171	13,899,683
Common stock, shares outstanding	15,876,171	13,899,683

Income Taxes - Effective Tax Rate Differs from the Statutory Federal Income Tax Rate (Details)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Company's effective tax rate differs from the statutory federal income tax rate
Income tax provision at statutory rate	21.00%	21.00%
State income taxes, net of federal benefit	7.60%	0.90%
Permanent differences	17.10%	(2.80%)
Research and development credits	2.30%	0.40%
Change in valuation allowance	(47.40%)	(23.30%)
Foreign rate differential	(0.20%)	0.40%
Other	(1.20%)	3.00%
Effective tax rate	(0.80%)	(0.40%)

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Income Statement [Abstract]
Total revenues	$ 53,903	$ 36,347
Cost of revenues	31,072	20,789
Gross profit	22,831	15,558
Operating expenses:
Research and development	6,868	3,282
Sales and marketing	14,637	12,239
General and administrative	8,859	6,620
Total operating expenses	30,364	22,141
Loss from operations	(7,533)	(6,583)
Other income, net	2,348	280
Loss from operations before provision for income taxes	(5,185)	(6,303)
Provision for income taxes	40	26
Net loss	$ (5,225)	$ (6,329)
Net loss per share:
Basic	$ (0.34)	$ (0.46)
Diluted	$ (0.34)	$ (0.46)
Weighted average shares used in computing net loss per common share:
Basic	15,421	13,842
Diluted	15,421	13,842

Paycheck Protection Program (“PPP”) Loan

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

11. Paycheck Protection Program (“PPP”) Loan

On April 23, 2020, the Company qualified for and received a loan pursuant to the PPP, a program implemented by the U.S. Small Business Administration (the “SBA”) under the Coronavirus Aid, Relief, and Economic Security Act, from a qualified lender (the “PPP Lender”), for an aggregate principal amount of approximately $2.5 million (the "PPP Loan"). The PPP Loan bears interest at a fixed rate of 1.0% per annum, with the first six months of interest deferred, has a term of two years, and is unsecured and guaranteed by the U.S. Small Business Administration. The principal amount of the PPP Loan is subject to forgiveness under the Paycheck Protection Program upon the Company’s request to the extent that the PPP Loan proceeds are used to pay expenses permitted by the Paycheck Protection Program, including payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company. On September 22, 2020, the Company submitted the PPP Loan forgiveness application for the entire amount of approximately $2.5 million. To the extent that all or part of the PPP Loan is not forgiven, the Company would have been required to pay interest on the PPP Loan at a rate of

1.0% per annum. The terms of the PPP Loan provide for customary events of default including, among other things, payment defaults, breach of representations, and insolvency events.

In June 2021, the Company was notified by Silicon Valley Bank that its PPP Loan, including accrued interest, has been fully forgiven by the SBA. We recognized a $2.5 million gain on PPP Loan forgiveness, included in Other income, net in the consolidated statements of operations for the fiscal year ended January 1, 2022.

Summary of Significant Accounting Policies - Reconciliation of Changes in Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Reconciliation of the changes in the Company's warranty liability
Balance, beginning of period	$ 247	$ 536
Accruals for product warranties	105	128
Cost of warranty claims	(158)	(108)
Adjustment to pre-existing warranties	(36)	(309)
Balance, end of period	$ 158	$ 247

Stockholders' Equity

12 Months Ended

Jan. 01, 2022

Equity [Abstract]

Stockholders' Equity

13. Stockholders’ Equity

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, 2017, 2018, 2019 and 2021, 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 4,850,000 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 Stock Plan (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 represents the shares activity and the total number of shares available for grant under the Incentive Plan:

	Shares Available for Grant
Balances as of December 28, 2019		1,107,523
Options granted		(523,650	)
Restricted stock granted		(557,816	)
Options cancelled or forfeited		257,662
Awards cancelled		194,303
Balances as of January 2, 2021		478,022
Additional shares reserved		1,000,000
Options granted		(348,363	)
Restricted stock granted		(257,397	)
Options cancelled or forfeited		159,048
Awards cancelled		91,071
Balances as of January 1, 2022		1,122,381

Awards (RSU, PSU, RSA) with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the date of grant under the 2008 Equity Incentive Plan, as amended, are counted against shares authorized under the plan as one and one-half shares of common stock for each share. When cancelled, these shares are added back to the Plan as one and one-half shares.

The following table shows stock-based compensation expenses by functional area in the consolidated statements of operations for 2021 and 2020 (in thousands):

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Cost of revenues	$	328	$	133
Research and development		87		(4	)
Sales and marketing		518		429
General and administrative		695		561
Total stock-based compensation expense	$	1,628	$	1,119

Stock-based compensation expense capitalized to inventory was immaterial for 2021 and 2020.

As of January 1, 2022, there was $2.7 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements under the Incentive Plan. The cost is expected to be recognized over a weighted-average period of 2.00 years.

Summary of Stock Options

The following table summarizes information regarding activity in our stock option plans during the fiscal years ended 2021 and 2020 (in thousands except share and per share data):

	Outstanding Options
	Number of Shares			Weighted Average Exercise Price
Balances as of December 28, 2019		1,383,552		$	6.11
Options granted		523,650			2.13
Options exercised		—			—
Options cancelled or forfeited		(257,662	)		7.23
Balances as of January 2, 2021		1,649,540		$	4.67
Options granted		348,363			6.65
Options exercised		(66,234	)		3.27
Options cancelled or forfeited		(159,048	)		5.14
Balances as of January 1, 2022		1,772,621		$	5.07

The following table summarizes information with respect to stock options outstanding and exercisable as of January 1, 2022:

	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
$1.82 - $2.12		12,613		4.85	$	2.00		5,146	$	2.04
$2.13 - $2.13		360,473		5.67	$	2.13		103,164	$	2.13
$2.18 - $4.85		164,315		4.53	$	2.99		89,575	$	3.09
$4.92 - $4.92		600,000		6.38	$	4.92		229,167	$	4.92
$4.98 - $6.57		183,354		4.54	$	5.75		106,659	$	5.54
$6.58 - $6.58		242,263		6.59	$	6.58		—	$	—
$6.76 - $11.16		174,141		2.80	$	9.25		124,121	$	9.88
$12.85 - $12.85		15,000		1.82	$	12.85		15,000	$	12.85
$14.61 - $14.61		20,000		2.18	$	14.61		20,000	$	14.61
$16.29 - $16.29		462		1.57	$	16.29		462	$	16.29
$1.82 - $16.29		1,772,621		5.45	$	5.07		693,294	$	5.69

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 2021			FY 2020
Average risk free interest rate		0.89	%		0.25	%
Expected life (in years)	4.45 years			4.55 years
Dividend yield		—			—
Average volatility		73.9	%		62.4	%

The weighted average grant date fair value of options granted as calculated using the Black-Scholes option pricing was $3.81 and $1.06 per share for the fiscal years 2021 and 2020, 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.

Information regarding stock options outstanding, exercisable and expected to vest as of January 1, 2022 is summarized below:

	Number of		Weighted Average		Weighted Average Remaining Contractual		Aggregate Intrinsic Value
	Shares		Exercise Price		Life (years)		(thousands)
Options outstanding		1,772,621	$	5.07		5.45	$	2,796
Options vested and expected to vest		1,603,903	$	5.08		5.34	$	2,565
Options exercisable		693,294	$	5.69		4.24	$	1,035

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 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on January 1, 2022. 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 2021 and 2020 were approximately $251 thousand and $0 thousand, respectively.

Restricted Stock Units

Effective for the 2018 fiscal year and thereafter, each non-employee member of the Board of Directors receives an annual equity award of either restricted stock or RSU, at the election of such Board member, in each case equal to $40 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. The Lead Independent Director or the Chairman of the Board of Directors receives an additional annual equity award of either restricted stock or RSU, equal to $10 thousand worth of our common stock. Each equity award vests in full on the earlier of the one-year anniversary of the date of grant or the Company’s next annual meeting of stockholders, provided that the non-employee member continues to serve on the Board through such date.

Summary of Restricted Stock Units

We recognize the estimated compensation expense of restricted stock units, 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 January 1, 2022 is summarized below:

Number of

Weighted

Average

Remaining

Contractual

Life (years)

Aggregate

Intrinsic

Value (thousands)

Restricted stock units outstanding

253,761

1.08

1,550

Restricted stock units vested and expected to vest

221,439

1.02

1,353

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 fiscal year, December 31, 2021, of $6.11.

The majority of the restricted stock units that were released in fiscal year 2021 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 January 1, 2022, 381,974 shares of restricted stock units were released with an intrinsic value of approximately $2.7 million. We withheld 89,842 shares to satisfy approximately $629 thousand of employees’ minimum tax obligation on the released restricted stock units.

Information regarding the RSU activity during the years ended January 1, 2022 and January 2, 2021 is summarized below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding as of December 28, 2019		411,133		$	7.19
Restricted stock units granted		371,877		$	1.90
Restricted stock units released		(128,624	)	$	2.14
Restricted stock units forfeited		(129,535	)	$	5.48
Outstanding as of January 2, 2021		524,851		$	5.10
Restricted stock units granted		171,598		$	6.78
Restricted stock units released		(381,974	)	$	7.07
Restricted stock units forfeited		(60,714	)	$	4.16
Outstanding as of January 1, 2022		253,761		$	3.50

During the year ended January 1, 2022, the Company awarded 171,598 restricted stock units at a weighted average grant date fair value of $6.78 per share. Of this amount, 5,000 performance-based shares that are subject to service and performance vesting conditions with a weighted average grant date fair value of $8.34 per share.

During fiscal year 2021, 56,900 stock awards were modified to clarify the performance condition. The total incremental expense for these modifications resulted in an additional stock-based compensation expense of $0.4 million recorded within cost of sales and operating expenses on the consolidated statement of operations for the fiscal year 2021.

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.

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Components of Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Jan. 01, 2022

Payables And Accruals [Abstract]

The components of our accrued expenses and other current liabilities are as follows (in thousands):

	FY 2021		FY 2020
	January 1, 2022		January 2, 2021
Legal and professional fees	$	379	$	326
Sales and marketing expenses		238		116
Temporary help and consulting		215		36
Royalties payable		97		89
Accrued rent		—		169
Tax payable		73		—
Other accrued expenses		573		254
Total accrued expenses	$	1,575	$	990

	FY 2021		FY 2020
	January 1, 2022		January 2, 2021
Customer deposits	$	1,098	$	802
Other miscellaneous		—		14
Total other current liabilities	$	1,098	$	816

Summary of Significant Accounting Policies - Additional Information (Details)	1 Months Ended	12 Months Ended
	Jan. 31, 2022 USD ($)	Jan. 01, 2022 USD ($) Customer	Jan. 02, 2021 USD ($) Customer
Disclosure Summary Of Significant Accounting Policies [Line Items]
Provision for sales returns		$ 0	$ 0
Gross value of demos and loaners		2,000,000.0	1,900,000
Accumulated amortization on inventory demos and loaners		$ 1,700,000	1,700,000
Estimated useful life of demos and loaners		4 years
Estimated useful lives of the assets		3 years
Amortization costs		$ 0
Service contract warranty period		1 year
Service contract, period to determine nature of sale		60 days
Arrangement fee		$ 2,000,000.0
Arrangement expiration period		9 months
Fair value of distribution right		$ 14,800,000
Customer deposit		200,000
Deferred revenue recognized		$ 900,000	1,300,000
Products warranty period		2 years
Advertising and promotion costs		$ 200,000	100,000
Accrued interest and penalty incurred		$ 0	$ 0
ASU 2019-12
Disclosure Summary Of Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted		true
Change in Accounting Principle, Accounting Standards Update, Adoption Date		Jan. 01, 2022
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect		true
Revenue, Total \| Customer Concentration Risk
Disclosure Summary Of Significant Accounting Policies [Line Items]
Number of customers \| Customer			0
Revenue, Total \| Customer Concentration Risk \| Topcon
Disclosure Summary Of Significant Accounting Policies [Line Items]
Number of customers \| Customer		1
Accounts Receivable \| Customer Concentration Risk \| Minimum
Disclosure Summary Of Significant Accounting Policies [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases			10.00%
Accounts Receivable \| Customer Concentration Risk \| Topcon \| Minimum
Disclosure Summary Of Significant Accounting Policies [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases		10.00%
Accounts Receivable \| Customer Concentration Risk \| One Customer
Disclosure Summary Of Significant Accounting Policies [Line Items]
Percentage of accounts receivable accounted			13.00%
Accounts Receivable \| Customer Concentration Risk \| One Customer \| Topcon
Disclosure Summary Of Significant Accounting Policies [Line Items]
Percentage of accounts receivable accounted		31.00%
Accounts Receivable \| Customer Concentration Risk \| Customer Two \| Topcon
Disclosure Summary Of Significant Accounting Policies [Line Items]
Percentage of accounts receivable accounted		11.00%
Accounts Receivable \| Credit Concentration Risk \| Topcon
Disclosure Summary Of Significant Accounting Policies [Line Items]
Number of customers \| Customer		2	1
Revenue, Total \| Customer Concentration Risk \| Topcon
Disclosure Summary Of Significant Accounting Policies [Line Items]
Percentage of revenues accounted		21.00%
Revenue, Total \| Customer Concentration Risk \| One Customer \| Topcon \| Minimum
Disclosure Summary Of Significant Accounting Policies [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases		10.00%
Revenue, Total \| Customer Concentration Risk \| No Customer \| Minimum
Disclosure Summary Of Significant Accounting Policies [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases			10.00%
Subsequent Event [Member]
Disclosure Summary Of Significant Accounting Policies [Line Items]
Arrangement fee refund received	$ 1,800,000
Distribution Rights [Member]
Disclosure Summary Of Significant Accounting Policies [Line Items]
Revenue Recognized		$ 600,000
Royalty Agreements
Disclosure Summary Of Significant Accounting Policies [Line Items]
Number of customers \| Customer		2
Shipping and Handling
Disclosure Summary Of Significant Accounting Policies [Line Items]
Shipping and handling costs		$ 300,000	$ 200,000
Prepaid Expenses and Other Current Assets and Other Long Term Assets
Disclosure Summary Of Significant Accounting Policies [Line Items]
Deferred costs, incurred		$ 300,000

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Current:
State	$ 20	$ 12
Foreign	18	11
Total	38	23
Deferred:
Federal	1	1
State	1	2
Total	2	3
Provision for income taxes	$ 40	$ 26

Compensation And Retirement Disclosure [Abstract]

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Business Segments and Geographical Information - Additional Information (Details) - Segment	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Segment Reporting Information [Line Items]
Number of operating segments	1
Geographic Concentration Risk \| Revenue, Total \| Minimum
Segment Reporting Information [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases		10.00%
United States \| Geographic Concentration Risk \| Revenue, Total
Segment Reporting Information [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases	47.40%	53.10%
JAPAN \| Geographic Concentration Risk \| Revenue, Total
Segment Reporting Information [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases	13.50%
JAPAN \| Geographic Concentration Risk \| Revenue, Total \| Minimum
Segment Reporting Information [Line Items]
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases	10.00%

Significant Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Mar. 10, 2021	Mar. 02, 2021	Jan. 01, 2022	Jan. 02, 2021
Business Acquisition [Line Items]
Common stock, shares issued			15,876,171	13,899,683
Common stock, par value			$ 0.01	$ 0.01
Proceeds from issuance of common stock, net of issuance costs			$ 9,878
Developed Technology [Member]
Business Acquisition [Line Items]
Estimated, economic useful life			7 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Estimated, economic useful life			15 years	15 years
Topcon
Business Acquisition [Line Items]
Common stock, shares issued		1,618,122
Common stock, par value		$ 6.18
Proceeds from issuance of common stock, net of issuance costs	$ 17,500	$ 19,500
Proceeds Of Common Stock Issuance To Be Received	2,000
TMLS
Business Acquisition [Line Items]
Acquisition of a business and the purchase price	$ 5,300
TMLS \| Developed Technology [Member]
Business Acquisition [Line Items]
Estimated, economic useful life	7 years
TMLS \| Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Estimated, economic useful life	9 years
TMLS \| Customer Relationships [Member]
Business Acquisition [Line Items]
Estimated, economic useful life	7 years

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	Jan. 01, 2022	Jan. 02, 2021
Tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets
Net operating losses	$ 13,751	$ 11,769
Research and development credits	3,582	3,273
Accruals and reserves	2,637	2,382
Deferred revenue	82	81
Property and equipment	361	307
Intangible assets	268	328
Stock compensation	574	658
Net deferred tax asset	21,255	18,798
Valuation allowance	(21,280)	(18,820)
Net deferred tax liabilities	$ (25)	$ (22)

Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 3,937	$ 2,236
Work in process	201	548
Finished goods	3,476	2,930
Total inventories	$ 7,614	$ 5,714

Employee Benefit Plan

12 Months Ended

Jan. 01, 2022

Employee Benefit Plan

14. Employee Benefit Plan

We have a plan known as the Iridex Corporation Profit Sharing/401(k) Plan 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 Company. In 2021, the Company made $201 thousand worth of total matching contributions. The Company did not make matching contribution during 2020.

The entire disclosure for retirement benefits.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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Paycheck Protection Program ("PPP") Loan - Additional Information (Details) - Small Business Administration (SBA Loan) [Member] - PPP Loan [Member] - USD ($) $ in Millions			12 Months Ended
	Sep. 22, 2020	Apr. 23, 2020	Jan. 01, 2022
Debt Instrument [Line Items]
Aggregate principal amount		$ 2.5
Fixed interest rate		1.00%
Interest rate on outstanding principal amount		1.00%
Term of loan		2 years
Loan forgiveness amount	$ 2.5		$ 2.5

Income Taxes

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Income Taxes

15. Income Taxes

Loss from operations before provision for income taxes was comprised of the following:

	FY 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
United States	$	(5,233	)	$	(6,486	)
Foreign		48			183
Total	$	(5,185	)	$	(6,303	)

The provision for income taxes includes:

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Current:
Federal	$	—	$	—
State		20		12
Foreign		18		11
		38		23
Deferred:
Federal		1		1
State		1		2
		2		3
Provision for income taxes	$	40	$	26

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

	FY 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Income tax provision at statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		7.6	%		0.9	%
Permanent differences		17.1	%		(2.8	)%
Research and development credits		2.3	%		0.4	%
Change in valuation allowance		(47.4	)%		(23.3	)%
Foreign rate differential		(0.2	)%		0.4	%
Other		(1.2	)%		3.0	%
Effective tax rate		(0.8	)%		(0.4	)%

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 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Net operating losses	$	13,751		$	11,769
Research and development credits		3,582			3,273
Accruals and reserves		2,637			2,382
Deferred revenue		82			81
Property and equipment		361			307
Intangible assets		268			328
Stock compensation		574			658
Net deferred tax asset		21,255			18,798
Valuation allowance		(21,280	)		(18,820	)
Net deferred tax liabilities	$	(25	)	$	(22	)

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 January 1, 2022, based on the Company's recent history of losses and its forecasted losses, management believes on the more likely than not basis that a full valuation allowance is required. Accordingly, in the fourth quarter of fiscal year 2021, the Company provided a full valuation allowance on its federal and state deferred tax assets. As of January 1, 2022, the Company had federal and state net operating loss (“NOL”) carry forwards of $55.4 million and $26.2 million, respectively. The federal NOL will begin to expire in 2033 and the state NOL will begin to expire in 2022.

The Company has federal and state research credit carry forwards of approximately $2.2 million and $3.1 million, respectively. The federal research credit will begin to expire in 2027 and the state research credit can be carried forward indefinitely. In the event of a change in ownership as defined by IRC sections 382 and 383, the usage of the above mentioned NOLs and credits may be limited.

The Company accounts 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 January 1, 2022.

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

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Balance at the beginning of the year	$	1,220	$	1,192
Additions based upon tax positions related to the current year		88		28
Balance at the end of the year	$	1,308	$	1,220

If the ending balance of $1.3 million of unrecognized tax benefits at January 1, 2022 were recognized, $0 of the recognition would affect the income tax rate. The Company does not anticipate any material change in our unrecognized tax benefits over the next twelve months. The unrecognized tax benefits may change during the next year for items that arise in the ordinary course of business.

The Company files U.S. federal and state returns. The tax years 2012 to 2021 remain open in several jurisdictions, none of which have individual significance.

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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Goodwill And Intangible Assets Disclosure [Abstract]

Significant Transactions - Schedule of Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Mar. 31, 2021	Mar. 10, 2021	Jan. 02, 2021
Business Acquisition [Line Items]
Goodwill	$ 965	$ 400		$ 533
TMLS
Business Acquisition [Line Items]
Inventory			$ 2,319
Manufacturing and Office Equipment			112
Other tangible assets			78
Goodwill			432
Total			5,343
Computer and Software [Member] \| TMLS
Business Acquisition [Line Items]
Intangible Assets			102
Developed Technology [Member] \| TMLS
Business Acquisition [Line Items]
Intangible Assets			900
In Process Research and Development [Member] \| TMLS
Business Acquisition [Line Items]
Intangible Assets			1,000
Trademarks and Trade Names [Member] \| TMLS
Business Acquisition [Line Items]
Intangible Assets			300
Customer Relationships [Member] \| TMLS
Business Acquisition [Line Items]
Intangible Assets			$ 100

Goodwill

12 Months Ended

Jan. 01, 2022

Goodwill

8. Goodwill

The carrying value of goodwill was $965 thousand and $533 thousand as of January 1, 2022 and January 2, 2021, respectively.

In March 2021, the Company recorded approximately $0.4 million goodwill in connection with its purchase of the PASCAL Business.

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performs an annual impairment test 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 exceed 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 carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment, its common stock price is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit and can lead to potential impairment in future periods. The Company performed its annual impairment test during the second quarter of fiscal year 2021 and determined that its goodwill was not impaired. The determination of whether any potential impairment of goodwill exists is based upon an impairment test performed in accordance with ASC 350. There was no impairment of goodwill recognized during fiscal years 2021 and 2020.

Summary of Significant Accounting Policies - Reconciliation of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Reconciliation of the changes in the Company's deferred revenue balance
Balance, beginning of period	$ 1,227	$ 1,810
Additions to deferral	14,503	1,610
Revenue recognized	(2,445)	(2,190)
Deductions from reserves		(3)
Balance, end of period	$ 13,285	$ 1,227

Inventories (Tables)

12 Months Ended

Jan. 01, 2022

Inventory Disclosure [Abstract]

Components of Inventories

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

	FY 2021		FY 2020
	January 1, 2022		January 2, 2021
Raw materials	$	3,937	$	2,236
Work in process		201		548
Finished goods		3,476		2,930
Total inventories	$	7,614	$	5,714

Stockholders' Equity - Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,628	$ 1,119
Cost of revenues
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	328	133
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	87	(4)
Sales and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	518	429
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 695	$ 561

Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Loss from Operations Before Provision for Income Taxes

Loss from operations before provision for income taxes was comprised of the following:

	FY 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
United States	$	(5,233	)	$	(6,486	)
Foreign		48			183
Total	$	(5,185	)	$	(6,303	)

Provision for Income Taxes

The provision for income taxes includes:

	FY 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Current:
Federal	$	—	$	—
State		20		12
Foreign		18		11
		38		23
Deferred:
Federal		1		1
State		1		2
		2		3
Provision for income taxes	$	40	$	26

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 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Income tax provision at statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		7.6	%		0.9	%
Permanent differences		17.1	%		(2.8	)%
Research and development credits		2.3	%		0.4	%
Change in valuation allowance		(47.4	)%		(23.3	)%
Foreign rate differential		(0.2	)%		0.4	%
Other		(1.2	)%		3.0	%
Effective tax rate		(0.8	)%		(0.4	)%

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 2021			FY 2020
	Year Ended			Year Ended
	January 1, 2022			January 2, 2021
Net operating losses	$	13,751		$	11,769
Research and development credits		3,582			3,273
Accruals and reserves		2,637			2,382
Deferred revenue		82			81
Property and equipment		361			307
Intangible assets		268			328
Stock compensation		574			658
Net deferred tax asset		21,255			18,798
Valuation allowance		(21,280	)		(18,820	)
Net deferred tax liabilities	$	(25	)	$	(22	)

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 2021		FY 2020
	Year Ended		Year Ended
	January 1, 2022		January 2, 2021
Balance at the beginning of the year	$	1,220	$	1,192
Additions based upon tax positions related to the current year		88		28
Balance at the end of the year	$	1,308	$	1,220

Stockholders' Equity - Stock Options Outstanding and Exercisable (Details) - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Stock options outstanding and exercisable
Options Outstanding, Weighted Average Exercise Price	$ 5.14	$ 7.23
Range One
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	1.82
Range of Exercise Prices, Upper Range Limit	$ 2.12
Options Outstanding, Number of Shares	12,613
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 10 months 6 days
Options Outstanding, Weighted Average Exercise Price	$ 2.00
Options Vested and Exercisable, Number of Shares Exercisable	5,146
Options Vested and Exercisable, Weighted Average Exercise Price	$ 2.04
Range Two
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	2.13
Range of Exercise Prices, Upper Range Limit	$ 2.13
Options Outstanding, Number of Shares	360,473
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 8 months 1 day
Options Outstanding, Weighted Average Exercise Price	$ 2.13
Options Vested and Exercisable, Number of Shares Exercisable	103,164
Options Vested and Exercisable, Weighted Average Exercise Price	$ 2.13
Range Three
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	2.18
Range of Exercise Prices, Upper Range Limit	$ 4.85
Options Outstanding, Number of Shares	164,315
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 6 months 10 days
Options Outstanding, Weighted Average Exercise Price	$ 2.99
Options Vested and Exercisable, Number of Shares Exercisable	89,575
Options Vested and Exercisable, Weighted Average Exercise Price	$ 3.09
Range Four
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	4.92
Range of Exercise Prices, Upper Range Limit	$ 4.92
Options Outstanding, Number of Shares	600,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	6 years 4 months 17 days
Options Outstanding, Weighted Average Exercise Price	$ 4.92
Options Vested and Exercisable, Number of Shares Exercisable	229,167
Options Vested and Exercisable, Weighted Average Exercise Price	$ 4.92
Range Five
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	4.98
Range of Exercise Prices, Upper Range Limit	$ 6.57
Options Outstanding, Number of Shares	183,354
Options Outstanding, Weighted Average Remaining Contractual Life (years)	4 years 6 months 14 days
Options Outstanding, Weighted Average Exercise Price	$ 5.75
Options Vested and Exercisable, Number of Shares Exercisable	106,659
Options Vested and Exercisable, Weighted Average Exercise Price	$ 5.54
Range Six
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	6.58
Range of Exercise Prices, Upper Range Limit	$ 6.58
Options Outstanding, Number of Shares	242,263
Options Outstanding, Weighted Average Remaining Contractual Life (years)	6 years 7 months 2 days
Options Outstanding, Weighted Average Exercise Price	$ 6.58
Range Seven
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	6.76
Range of Exercise Prices, Upper Range Limit	$ 11.16
Options Outstanding, Number of Shares	174,141
Options Outstanding, Weighted Average Remaining Contractual Life (years)	2 years 9 months 18 days
Options Outstanding, Weighted Average Exercise Price	$ 9.25
Options Vested and Exercisable, Number of Shares Exercisable	124,121
Options Vested and Exercisable, Weighted Average Exercise Price	$ 9.88
Range Eight
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	15,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	1 year 9 months 25 days
Options Outstanding, Weighted Average Exercise Price	$ 12.85
Options Vested and Exercisable, Number of Shares Exercisable	15,000
Options Vested and Exercisable, Weighted Average Exercise Price	$ 12.85
Range Nine
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	14.61
Range of Exercise Prices, Upper Range Limit	$ 14.61
Options Outstanding, Number of Shares	20,000
Options Outstanding, Weighted Average Remaining Contractual Life (years)	2 years 2 months 4 days
Options Outstanding, Weighted Average Exercise Price	$ 14.61
Options Vested and Exercisable, Number of Shares Exercisable	20,000
Options Vested and Exercisable, Weighted Average Exercise Price	$ 14.61
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	462
Options Outstanding, Weighted Average Remaining Contractual Life (years)	1 year 6 months 25 days
Options Outstanding, Weighted Average Exercise Price	$ 16.29
Options Vested and Exercisable, Number of Shares Exercisable	462
Options Vested and Exercisable, Weighted Average Exercise Price	$ 16.29
Range Eleven
Stock options outstanding and exercisable
Range of Exercise Prices, Lower Range Limit	1.82
Range of Exercise Prices, Upper Range Limit	$ 16.29
Options Outstanding, Number of Shares	1,772,621
Options Outstanding, Weighted Average Remaining Contractual Life (years)	5 years 5 months 12 days
Options Outstanding, Weighted Average Exercise Price	$ 5.07
Options Vested and Exercisable, Number of Shares Exercisable	693,294
Options Vested and Exercisable, Weighted Average Exercise Price	$ 5.69

Related Party - Topcon

12 Months Ended

Jan. 01, 2022

Related Party - Topcon

4. Related Party - Topcon

Topcon holds 10.2% voting interest in the Company, which qualifies it to be a principal owner considered a related party, even though it currently does not have significant influence over the Company’s operations.

Topcon resells certain of our products as our exclusive distributor in certain international regions. At the same time, the Company also purchases certain raw materials from Topcon. During fiscal year 2021, the Company’s revenues related to Topcon amounted to approximately $11.1 million, including $0.6 million recognized exclusive distribution rights revenue. The Company’s purchases from Topcon during fiscal year 2021 amounted to $1.1 million. As of January 1, 2022, the amounts receivable from and payable to Topcon were $3.1 million and $0.6 million, respectively.

Income Taxes - Loss from Operations Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Loss from operations before provision for (benefit from) income taxes
United States	$ (5,233)	$ (6,486)
Foreign	48	183
Loss from operations before provision for income taxes	$ (5,185)	$ (6,303)

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

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Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets (Tables)

12 Months Ended

Jan. 01, 2022

Components of Purchased Intangible Assets

The components of our purchased intangible assets as of January 1, 2022 are as follows (in thousands):

	Useful Lives	FY 2021 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	28	$	340	$	200	$	140	5.08 Years
Developed technology	7 Years		107		900		107		793	6.17 Years
Trade names	9 Years		28		300		28		272	8.17 Years
In-process R&D	7 Years		—		1,000		—		1,000	Not applicable
Patents	Varies		—		600		600		—	Varies
		$	163	$	3,140	$	935	$	2,205

The components of our purchased intangible assets as of January 2, 2021 are as follows (in thousands):

	Useful Lives	FY 2020 Annual Amortization		Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Useful Lives Remaining
Customer relations	15 Years	$	16	$	240	$	172	$	68	4.25 Years
Patents	Varies		—		600		600		—	Varies
		$	16	$	840	$	772	$	68

Estimated Future Amortization Expense for Purchased Intangible Assets

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

Fiscal Year:
2022	$	192
2023		192
2024		192
2025		180
2026		176
Thereafter		273
Total	$	1,205

Related Party - Topcon - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Related Party Transaction [Line Items]
Total revenues	$ 53,903	$ 36,347
Receivable from related party	3,106
Payable to related party	$ 627
Topcon America Corporation [Member]
Related Party Transaction [Line Items]
Ownership percentage	10.20%
Total revenues	$ 11,100
Purchases from related party	1,100
Receivable from related party	3,100
Payable to related party	600
Distribution Rights [Member]
Related Party Transaction [Line Items]
Revenue Recognized	600
Distribution Rights [Member] \| Topcon America Corporation [Member]
Related Party Transaction [Line Items]
Revenue Recognized	$ 600