Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Mar. 16, 2016 | Jul. 02, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | ChromaDex Corp. | ||
Entity Central Index Key | 1,386,570 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 2, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-02 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 100,113,000 | ||
Entity Common Stock, Shares Outstanding | 109,527,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Current Assets | ||
Cash | $ 5,549,672 | $ 3,964,750 |
Trade receivables, net of allowances of $367,000 and $38,000, respectively | 2,450,591 | 1,906,709 |
Inventories | 8,173,799 | 3,734,341 |
Prepaid expenses and other assets | 373,567 | 292,891 |
Total current assets | 16,547,629 | 9,898,691 |
Leasehold Improvements and Equipment, net | 1,788,645 | 1,264,660 |
Deposits | 58,883 | 57,435 |
Intangible assets, net | 354,052 | 296,061 |
Total assets | 18,749,209 | 11,516,847 |
Current Liabilities | ||
Accounts payable | 6,223,958 | 3,451,608 |
Accrued expenses | 1,302,865 | 853,685 |
Current maturities of loan payable | 1,528,578 | 223,358 |
Current maturities of capital lease obligations | 219,689 | 148,278 |
Customer deposits and other | 272,002 | 234,435 |
Deferred rent, current | 39,529 | 69,456 |
Total current liabilities | 9,586,621 | 4,980,820 |
Loan payable, less current maturities, net | 3,345,335 | 1,977,113 |
Capital lease obligations, less current maturities | 444,589 | 423,015 |
Deferred rent, less current | 97,990 | 137,508 |
Total Liabilities | $ 13,474,535 | $ 7,518,456 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Common stock, $.001 par value; authorized 150,000,000 shares; issued and outstanding 2015 108,010,766 and 2014 105,271,058 shares | $ 108,011 | $ 105,271 |
Additional paid-in capital | 47,462,052 | 43,417,442 |
Accumulated deficit | (42,295,389) | (39,524,322) |
Total stockholders' equity | 5,274,674 | 3,998,391 |
Total liabilities and stockholders' equity | $ 18,749,209 | $ 11,516,847 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and returns | $ 367,000 | $ 38,000 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 108,010,766 | 105,271,058 |
Common Stock, Shares, Outstanding | 108,010,766 | 105,271,058 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Statement [Abstract] | |||
Sales, net | $ 22,014,140 | $ 15,313,179 | $ 10,160,964 |
Cost of sales | 13,533,132 | 9,987,514 | 7,027,828 |
Gross profit | 8,481,008 | 5,325,665 | 3,133,136 |
Operating expenses: | |||
Sales and marketing | 2,326,788 | 2,136,584 | 2,357,605 |
Research and development | 891,601 | 513,671 | 134,040 |
General and administrative | 7,416,451 | 7,860,930 | 4,982,976 |
Loss from investment in affiliate | 0 | 45,829 | 44,961 |
Operating expenses | 10,634,840 | 10,557,014 | 7,519,582 |
Operating loss | (2,153,832) | (5,231,349) | (4,386,446) |
Nonoperating income (expense): | |||
Interest income | 3,325 | 2,013 | 1,251 |
Interest expense | (616,033) | (158,849) | (34,330) |
Nonoperating expenses | (612,708) | (156,836) | (33,079) |
Loss before income taxes | (2,766,540) | $ (5,388,185) | $ (4,419,525) |
Provision for income taxes | (4,527) | ||
Net loss | $ (2,771,067) | $ (5,388,185) | $ (4,419,525) |
Basic and Diluted loss per common share | $ (0.03) | $ (0.05) | $ (0.04) |
Basic and Diluted weighted average common shares outstanding | 107,632,022 | 106,459,379 | 99,987,443 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 29, 2012 | 92,140,062 | |||
Beginning Balance, Amount at Dec. 29, 2012 | $ 92,140 | $ 33,617,801 | $ (29,716,612) | $ 3,993,329 |
Issuance of common stock, Shares | 3,529,411 | |||
Issuance of common stock, net of offering costs, Amount | $ 3,529 | 2,976,471 | 2,980,000 | |
Exercise of stock options, Shares | 276,038 | |||
Exercise of stock options, Amount | $ 276 | 138,093 | 138,369 | |
Exercise of warrants, Shares | 7,979,227 | |||
Exercise of warrants, Amount | $ 7,979 | 1,630,769 | 1,638,748 | |
Share-based compensation, Shares | 600,000 | |||
Share-based compensation, Amount | $ 600 | $ 1,333,930 | 1,334,530 | |
Net loss | $ (4,419,525) | (4,419,525) | ||
Ending Balance, Shares at Dec. 28, 2013 | 104,524,738 | |||
Ending Balance, Amount at Dec. 28, 2013 | $ 104,525 | $ 39,697,063 | $ (34,136,137) | 5,665,451 |
Issuance of warrant, Amount | 246,189 | 246,189 | ||
Exercise of stock options, Shares | 534,715 | |||
Exercise of stock options, Amount | $ 535 | $ 466,614 | 467,149 | |
Issuance of unvested restricted stock, Shares | 1,186,000 | |||
Issuance of unvested restricted stock, Amount | $ 1,186 | 1,186 | ||
Unvested restricted stock, Shares | (1,186,000) | |||
Unvested restricted stock, Amount | $ (1,186) | (1,186) | ||
Share-based compensation, Shares | 85,000 | |||
Share-based compensation, Amount | $ 85 | $ 2,861,208 | 2,861,293 | |
Stock issued to settle outstanding payable balance, Shares | 126,605 | |||
Stock issued to settle outstanding payable balance, Amount | $ 126 | $ 146,368 | 146,494 | |
Net loss | $ (5,388,185) | (5,388,185) | ||
Ending Balance, Shares at Jan. 03, 2015 | 105,271,058 | |||
Ending Balance, Amount at Jan. 03, 2015 | $ 105,271 | $ 43,417,442 | $ (39,524,322) | 3,998,391 |
Issuance of common stock, net of offering costs, Amount | 1,600,000 | |||
Issuance of warrant, Amount | $ 1,600 | 1,973,293 | 1,974,893 | |
Exercise of stock options, Shares | 120,708 | |||
Exercise of stock options, Amount | $ 121 | 94,725 | $ 94,846 | |
Vested restricted stock, Shares | 684,000 | |||
Vested restricted stock, Amount | $ 684 | (684) | ||
Share-based compensation, Shares | 335,000 | |||
Share-based compensation, Amount | $ 335 | $ 1,977,276 | $ 1,977,611 | |
Net loss | $ (2,771,067) | (2,771,067) | ||
Ending Balance, Shares at Jan. 02, 2016 | 108,010,766 | |||
Ending Balance, Amount at Jan. 02, 2016 | $ 108,011 | $ 47,462,052 | $ (42,295,389) | $ 5,274,674 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Cash Flows From Operating Activities | |||
Net loss | $ (2,771,067) | $ (5,388,185) | $ (4,419,525) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation of leasehold improvements and equipment | 285,536 | 222,721 | 246,175 |
Amortization of intangibles | 45,014 | 35,589 | 23,532 |
Share-based compensation expense | 1,977,611 | 2,916,924 | 1,287,917 |
Allowance for doubtful trade receivables | 329,844 | 28,779 | (441,340) |
Loss from disposal of equipment | 19,643 | 20,400 | 66,378 |
Loss from impairment of intangibles | 19,495 | 0 | 0 |
Loss from investment in affiliate | 0 | 45,829 | 44,961 |
Non-cash financing costs | 188,442 | 49,527 | 0 |
Changes in operating assets and liabilities: | |||
Trade receivables | (873,726) | (1,096,695) | 1,560,070 |
Other receivable | 0 | 215,000 | (215,000) |
Inventories | (4,439,458) | (1,530,216) | (466,352) |
Prepaid expenses and other assets | (82,124) | (91,053) | (62,913) |
Accounts payable | 2,772,350 | 2,157,192 | (1,618,450) |
Accrued expenses | 449,180 | 196,978 | (204,891) |
Customer deposits and other | 37,567 | (311,609) | 235,777 |
Deferred rent | (69,445) | (51,587) | 57,650 |
Net cash used in operating activities | (2,111,138) | (2,580,406) | (3,906,011) |
Cash Flows From Investing Activities | |||
Purchases of leasehold improvements and equipment | (525,231) | (123,096) | (137,349) |
Purchase of intangible assets | (122,500) | (130,000) | (89,000) |
Proceeds from sales of assets | 0 | 0 | 1,000,000 |
Proceeds from sales of equipment | 0 | 1,356 | 0 |
Proceeds from investment in affiliate | 0 | 1,842,015 | 225,000 |
Net cash provided by (used in) investing activities | (647,731) | 1,590,275 | 998,651 |
Cash Flows From Financing Activities | |||
Proceeds from issuance of common stock, net of issuance costs | 1,974,893 | 0 | 2,980,000 |
Proceeds from exercise of stock options | 94,846 | 467,149 | 138,369 |
Proceeds from exercise of warrants | 0 | 0 | 1,638,748 |
Proceeds from loan payable | 2,500,000 | 2,500,000 | 0 |
Payment of debt issuance costs | (15,000) | (102,866) | 0 |
Principal payments on capital leases | (210,948) | (170,738) | (108,421) |
Net cash provided by financing activities | 4,343,791 | 2,693,545 | 4,648,696 |
Net increase in cash | 1,584,922 | 1,703,414 | 1,741,336 |
Cash Beginning of Year | 3,964,750 | 2,261,336 | 520,000 |
Cash Ending of Year | 5,549,672 | 3,964,750 | 2,261,336 |
Supplemental Disclosures of Cash Flow Information | |||
Cash payments for interest | 427,591 | 74,996 | 34,330 |
Supplemental Schedule of Noncash Investing Activity | |||
Capital lease obligation incurred for the purchase of equipment | 303,933 | 322,802 | 302,017 |
Retirement of fully depreciated equipment - cost | 121,213 | 56,110 | 0 |
Retirement of fully depreciated equipment - accumulated depreciation | (121,213) | (56,110) | 0 |
Supplemental Schedule of Noncash Operating Activity | |||
Stock issued to settle outstanding payable balance | 0 | 146,494 | 0 |
Supplemental Schedule of Noncash Share-based Compensation | |||
Stock awards issued for services rendered in prior period | 0 | 0 | 14,560 |
Changes in prepaid expenses associated with share-based compensation | 0 | 55,631 | 32,053 |
Warrant issued, related to loan payable | 0 | 246,189 | 0 |
Supplemental Schedule of Noncash Activities Related to Sale of BluScience Consumer Product Line | |||
Assets transferred | 0 | 0 | 3,526,677 |
Liabilities transferred | 0 | 0 | 368,873 |
Carrying value of long-term investment in affiliate, net of $1,000,000 cash proceeds | $ 0 | $ 0 | $ 2,157,804 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended |
Jan. 02, 2016USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash proceeds | $ 1,000,000 |
Nature of Business and Liquidit
Nature of Business and Liquidity | 12 Months Ended |
Jan. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Liquidity | Nature of business Liquidity While we anticipate that our current cash, cash equivalents and cash to be generated from operations will be sufficient to meet our projected operating plans through at least March 18, 2017, we may require additional funds, either through additional equity or debt financings or collaborative agreements or from other sources. We have no commitments to obtain such additional financing, and we may not be able to obtain any such additional financing on terms favorable to us, or at all. If adequate financing is not available, the Company will further delay, postpone or terminate product and service expansion and curtail certain selling, general and administrative operations. The inability to raise additional financing may have a material adverse effect on the future performance of the Company. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant accounting policies are as follows: Basis of presentation: Changes in accounting principle: The Company early adopted the amendments in this ASU effective as of April 4, 2015. As of January 2, 2016 and January 3, 2015, the Company had unamortized debt issuance costs of approximately $65,000 and $91,000, respectively. The Company had previously presented the debt issuance costs as other noncurrent assets in its consolidated balance sheet as of January 3, 2015 in the Company’s Annual Report on Form 10-K filed with the Commission on March 19, 2015. The early adoption has resulted in adjustments to the Company’s consolidated balance sheet as of January 3, 2015, by reclassifying the debt issuance costs as a direct deduction from the carrying amount of the debt liability. Below are the effects of the change on the consolidated balance sheet as of January 3, 2015. ChromaDex Corporation and Subsidiaries Condensed Consolidated Balance Sheet January 3, 2015 Previously Reported Adjustments As Adjusted Assets Current Assets $ 9,898,691 $ - $ 9,898,691 Leasehold Improvements and Equipment, net 1,264,660 - 1,264,660 Other Noncurrent Assets 444,857 (91,361) 353,496 Total assets $ 11,608,208 $ (91,361) $ 11,516,847 Liabilities and Stockholders' Equity Current Liabilities $ 4,980,820 $ - $ 4,980,820 Loan payable, less current maturities, net 2,068,474 (91,361) 1,977,113 Capital lease obligations, less current maturities 423,015 - 423,015 Deferred rent, less current 137,508 - 137,508 Total liabilities 7,609,817 (91,361) 7,518,456 Total stockholders' equity 3,998,391 - 3,998,391 Total liabilities and stockholders' equity $ 11,608,208 $ (91,361) $ 11,516,847 Use of accounting estimates Changes in accounting estimates For stock options granted during the years ended January 2, 2016 and January 3, 2015, the Company calculated the expected volatility rate based on the combined volatilities of publicly held companies in similar industries and volatility of the Company’s common stock. Based on the expected term of stock options, a 20~100% weight was assigned to the volatility of the Company’s common stock as the historical volatility of the Company’s common stock from June 2008 through April 2010 was exceptionally high due to a thinly traded market. Below table illustrates the Company’s historical volatility and the average daily trading volume of the Company’s common stock from June 2008 through April 2010 and from April 2010 through December 2015. Period Volatility Average Daily Trading Volume 6/20/2008 ~ 4/19/2010 402% 11,455 4/20/2010 ~ 1/2/2016 74% 147,703 The weighted average expected volatilities for the stock options granted during the twelve-month period ended January 2, 2016 and January 3, 2015 following the update to our estimate are approximately 76% and 75%, respectively. The weighted average expected volatility would have been approximately 30~40% for these two years, had we computed solely based on the volatility rates of similarly situated public companies. For the year ended December 28, 2013, the weighted average expected volatility the Company used to estimate the fair value of the Company’s stock options granted was approximately 33%. The following is a pro-forma disclosure of our historical calculation of estimated volatility over the expected term based on a grant with an expected term of 6 years: Fiscal Year 2013 Fiscal Year 2013 Name Use Volatility Name Use Volatility Covance, Inc. 50% 35% ChromaDex Corp. 20% 243% Sigma-Aldrich Corp. 50% 30% Covance Inc. 40% 35% Sigma-Aldrich Corp. 40% 30% Weighted Average 33% Weighted Average 75% The change in our estimate of volatility did not result to a material additional expense to our statement of operations. Revenue recognition Shipping and handling fees billed to customers and the cost of shipping and handling fees billed to customers are included in net sales. For the years ending in January 2, 2016, January 3, 2015 and December 28, 2013, shipping and handling fees billed to customers were approximately $113,000, $115,000 and $110,000, respectively, and the cost of shipping and handling fees billed to customers were approximately, $112,000, $130,000 and $128,000, respectively. Shipping and handling fees not billed to customers are recognized as cost of sales. Taxes collected from customers and remitted to governmental authorities are excluded from revenue, which is presented on a net basis in the statement of operations. Cash concentration Trade accounts receivable Inventories 2015 2014 Reference standards $ 1,239,338 $ 1,760,305 Bulk ingredients 7,195,461 2,298,036 8,434,799 4,058,341 Less valuation allowance 261,000 324,000 $ 8,173,799 $ 3,734,341 Our normal operating cycle for reference standards is currently longer than one year. The Company has approximately 5,000 defined reference standards and holds a lot of these standards as inventory in small quantities, mostly in grams and milligrams. Due to the large number of different items we carry, certain groups of these reference standards have sales frequency that is slower than others and varies greatly year to year. In addition, for certain reference standards, the cost saving is advantageous when purchased in larger quantities and we have taken advantage of such opportunities when available. Such factors have resulted in an operating cycle to be more than one year on average. The Company gains competitive advantage through the broad offering of reference standards and it is critical for the Company to continue to expand its library of reference standards it offers for the growth of business. Nevertheless, the Company has recently made changes in its reference standards inventory purchasing practice, which the management believes will result in an improved turnover rate and shorter operating cycle without impacting our competitive advantage. The Company regularly reviews inventories on hand and reduces the carrying value for slow-moving and obsolete inventory, inventory not meeting quality standards and inventory subject to expiration. The reduction of the carrying value for slow-moving and obsolete inventory is based on current estimates of future product demand, market conditions and related management judgment. Any significant unanticipated changes in future product demand or market conditions that vary from current expectations could have an impact on the value of inventories. Intangible assets Leasehold improvements and equipment Useful Life Leasehold improvements Until the end of the lease term Computer equipment 3 to 5 years Furniture and fixtures 7 years Laboratory equipment 10 years Long-lived assets are reviewed for impairment on a periodic basis and when changes in circumstances indicate the possibility that the carrying amount may not be recoverable. Long-lived assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the forecast of undiscounted future cash flows is less than the carrying amount of the assets, an impairment charge would be recognized to reduce the carrying value of the assets to fair value. If a possible impairment is identified, the asset group’s fair value is measured relying primarily on a discounted cash flow methodology. Customer deposits and other The cash received from government as research grants is recognized as a liability until the research is performed. Other than a nominal management fee, which the Company is entitled to earn when the research is performed, the research activities related to the grants are excluded from revenue and are presented on a net basis in the statement of operations. Income taxes t The Company has not recorded a reserve for any tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company files tax returns in all appropriate jurisdictions, which include a federal tax return and various state tax returns. Open tax years for these jurisdictions are 2012 to 2015, which statutes expire in 2016 to 2019, respectively. When and if applicable, potential interest and penalty costs are accrued as incurred, with expenses recognized in general and administrative expenses in the statements of operations. As of January 2, 2016, the Company has no liability for unrecognized tax benefits. Research and development costs: Advertising: Share-based compensation The fair value of the Company’s stock options is estimated at the date of grant using the Black-Scholes based option valuation model. For the volatility assumption, please refer to the earlier section “ Changes in accounting estimates The Company recognizes compensation expense over the requisite service period using the straight-line method for option grants without performance conditions. For stock options that have both service and performance conditions, the Company recognizes compensation expense using the graded attribution method. Compensation expense for stock options with performance conditions is recognized only for those awards expected to vest. From time to time, the Company awards shares of its common stock to non-employees for services provided or to be provided. The fair value of the awards are measured either based on the fair market value of stock at the date of grant or the value of the services provided, based on which is more reliably measureable. Since these stock awards are fully vested and non-forfeitable, upon issuance the measurement date for the award is usually reached on the date of the award. Fair Value Measurement: The standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Financial instruments The carrying amounts reported in the balance sheet for capital lease obligations are present values of the obligations, excluding the interest portion. Capital lease obligations with maturities less than one year are classified as current liabilities. The carrying amounts reported in the balance sheet for loan payable are present values net of discount, excluding the interest portion. The carrying value of long-term portion of the loan payable approximates fair value because the Company’s interest rate yield based on the credit rating of the Company is believed to be near current market rates. The long-term portion of the Company’s loan payable is considered a Level 3 liability within the fair value hierarchy. Loan payable with maturities less than one year are classified as current liabilities. Recent accounting standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-01 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. |
Loss Per Share Applicable to Co
Loss Per Share Applicable to Common Stockholders | 12 Months Ended |
Jan. 02, 2016 | |
Earnings Per Share [Abstract] | |
Loss Per Share Applicable to Common Stockholders | The following table sets forth the computations of loss per share amounts applicable to common stockholders for the years ended January 2, 2016, January 3, 2015 and December 28, 2013. Years Ended 2015 2014 2013 Net loss $ (2,771,067) $ (5,388,185) $ (4,419,525) Basic and diluted loss per common share $ (0.03) $ (0.05) $ (0.04) Weighted average common shares outstanding (1): 107,632,022 106,459,379 99,987,443 Potentially dilutive securities (2): Stock options 15,734,755 13,974,052 13,160,955 Warrants 1,269,020 469,020 - Convertible debt 773,395 773,395 - (1) Includes 1,214,127, 1,623,186 and 500,000 weighted average nonvested shares of restricted stock for the years 2015, 2014 and 2013, respectively, which are participating securities that feature voting and dividend rights. (2) Excluded from the computation of loss per share as their impact is antidilutive. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets 2015 2014 Gross Carrying Accumulated Net Gross Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Amortized intangible assets: License agreements and other $1,249,500 $ 895,458 $ 354,052 $1,205,275 $ 909,224 $ 296,061 Amortization expenses on amortizable intangible assets included in the consolidated statement of operations for the years ended January 2, 2016, January 3, 2015 and December 28, 2013 were approximately $45,000, $36,000 and $24,000, respectively. The unamortized expense is expected to be recognized over a weighted average period of 8.2 years as of January 2, 2016. In December 2015, the Company decided to discontinue its efforts to commercialize and market products associated with the patent the Company licensed from the Research Foundation of State University of New York in June 2008. The Company paid a license fee of approximately $78,000 and the licensed rights to the patent were recognized as intangible assets with an estimated fair value of approximately $78,000 and a useful life of 10 years. At January 2, 2016, the Company determined that these assets no longer had any carrying value as the Company discontinued its operations related to these assets. Estimated aggregate amortization expense for each of the next five years is as follows: Years ending December: 2016 $ 45,000 2017 45,000 2018 45,000 2019 45,000 2020 42,000 Thereafter 132,000 $ 354,000 |
Leasehold Improvements and Equi
Leasehold Improvements and Equipment | 12 Months Ended |
Jan. 02, 2016 | |
Leasehold Improvements And Equipment | |
Leasehold Improvements and Equipment | Leasehold improvements and equipment consisted of the following: 2015 2014 Laboratory equipment $ 3,737,908 $ 3,151,748 Leasehold improvements 513,453 495,240 Computer equipment 404,228 329,737 Furniture and fixtures 17,056 13,039 Office equipment 21,547 7,877 Construction in progress 4,420 68,141 4,698,612 4,065,782 Less accumulated depreciation 2,909,967 2,801,122 $ 1,788,645 $ 1,264,660 Depreciation expenses on leasehold improvements and equipment included in the consolidated statement of operations for the years ended January 2, 2016, January 3, 2015 and December 28, 2013 were approximately $286,000, $223,000 and $246,000, respectively. The Company leases equipment under capitalized lease obligations with a total cost of approximately $1,137,000 and 1,074,000 and accumulated amortization of $231,000 and $243,000 as of January 2, 2016 and January 3, 2015, respectively. |
Capitalized Lease Obligations
Capitalized Lease Obligations | 12 Months Ended |
Jan. 02, 2016 | |
Capitalized Lease Obligations | |
Capitalized Lease Obligations | Minimum future lease payments under capital leases Year ending December: 2016 $ 267,601 2017 246,752 2018 197,899 2019 41,304 Total minimum lease payments 753,556 Less amount representing interest at a rate of approximately 8.6% per year 89,278 Present value of net minimum lease payments 664,278 Less current portion 219,689 Long-term obligations under capital leases $ 444,589 Interest expenses related to capital leases were approximately $62,000, $47,000 and $34,000 for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. |
Loan Payable
Loan Payable | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Loan Payable | Loan payable as of January 2, 2016 consists of the following: Principal amount payable for following years ending December 2016 $ 1,370,454 2017 1,991,688 2018 1,637,858 Total principal payments 5,000,000 Accrued end of term charge 68,082 Total loan payable 5,068,082 Less unamortized debt discount 194,169 Less current portion 1,528,578 Loan payable – long term $ 3,345,335 The total interest expenses related the term loan, including cash interest payments, the amortizations of debt issuance costs and debt discount, and the accrual of end of term charge were approximately $554,000 and $112,000 for the years ended January 2, 2016 and January 3, 2015, respectively. On September 29, 2014, the Company entered into a loan and security agreement (the “Loan Agreement”) with Hercules Technology II, L.P., as lender (“Lender”) and Hercules Technology Growth Capital, Inc., as agent. Lender provided us with access to a term loan of up to $5 million. The first $2.5 million of the term loan was funded at closing. The first advance was to be repaid in equal monthly installments of principal and interest (mortgage style) through the loan’s maturity on April 1, 2018, following an initial interest-only period that was to conclude on October 31, 2015. In connection with the loan, the Company paid a $50,000 facility charge to Lender and recorded as debt issuance cost. The term loan bears interest at the rate per year equal to the greater of either (i) 9.35% plus the prime rate as reported in The Wall Street Journal minus 3.25%, or (ii) 9.35%. The interest rate as of January 2, 2016 was 9.60%. The Company may prepay all, but no less than all, of the outstanding loan balance, subject to prepayment charges of 3% during the first twelve months following closing, 2% during the next twelve months and 1% thereafter. On the earliest to occur of the (a) the loan maturity date, (b) the date the Company prepays the outstanding loan balance or (c) the date the outstanding loan balance becomes due and payable, the Company will pay Lender an end of term charge equal to 3.75% of all amounts drawn under the loan. The Loan Agreement further provides that, subject to certain conditions, any regularly scheduled installment of principal due to Lender may be paid, in whole or in part at the option of the Company or Lender, by converting a portion of the principal of the term loan into shares of the Company’s common stock (the “Conversion Shares”) at a conversion price of $1.293, in lieu of payment in cash. The aggregate principal amount to be paid in Conversion Shares shall not exceed $1,000,000. Of this amount 50% shall convert at the Lender’s option and 50% shall convert at the Company’s option. Pursuant to the Loan Agreement, the Company issued Lender a warrant (the “Warrant”) to purchase 419,020 shares of our common stock at an exercise price of $1.062 per share, subject to customary anti-dilution provisions. The Warrant is exercisable and expires five years from the date of issuance. In connection with the Loan Agreement, the Company granted first priority liens and security interest in substantially all of our assets, exclusive of intellectual property and 35% of the capital stock of any foreign subsidiary, as collateral for the obligations under the Loan Agreement. The Loan Agreement also contains representations and warranties by the Company and Lender, indemnification provisions in favor of Lender and customary covenants, and events of default. Upon the occurrence of an event of default, a default interest rate of an additional 4% will be applied to the outstanding loan balances, and Lender may terminate its lending commitment, declare all outstanding obligations immediately due and payable, and take such other actions as set forth in the Loan Agreement. We are currently in compliance with all loan covenants. On June 17, 2015, the Company and Hercules Technology II, L.P entered into Amendment No. 1 (the “Amendment”) to the Loan Agreement. Pursuant to the Amendment, the parties agreed that the interest only period shall be extended to March 31, 2016. The maturity date remains unchanged at April 1, 2018 and any remaining principal balance of the loan and all unpaid interest shall be due on the maturity date. The Amendment became effective on June 18, 2015 upon the funding of the full amount of the $2.5 million second advance and payment of a nonrenewable facility fee of $15,000. The second advance of $2.5 million is treated as if the Company entered into a separate loan. The facility fee of $15,000 is treated as debt issuance costs and are being amortized as interest expense using the effective interest method over the term of the loan. There is also additional $94,000 end of term charge the Company will pay, which is 3.75% of the $2.5 million drawn. The end of term charge is being accrued as additional interest expense using the effective interest rate method over the term of the loan. The Company determined that the amended terms of the first advance of $2.5 million on September 29, 2014 were not substantially different from the original terms. The Company reflected the change prospectively as yield adjustments, based on the revised terms. Debt Issuance Costs and End of Term Charge The Company incurred debt issuance costs of approximately $103,000 and $15,000 for the first and second advance, respectively, in connection with this term loan. The debt issuance costs are being amortized as interest expense using the effective interest method over the term of the loan. Amortization of debt issuance costs were $41,000 and $12,000 for the years ended January 2, 2016 and January 3, 2015 and the remaining unamortized debt issuance costs of $65,000 are presented as a direct deduction from the carrying amount of the debt liability. In addition, the Company will pay an end of term charge of $188,000, which is 3.75% of the $5.0 million drawn under the loan. The end of term charge is being accrued as additional interest expense using the effective interest rate method over the term of the loan. The Company accrued $58,000 and $10,000 of this fee during the years ended January 2, 2016 and January 3, 2015, respectively. Warrant Issued to Lender The Company determined the Warrant issued to Lender during the year ended January 3, 2015 to be equity classified. The Company estimated the fair value of this Warrant as of the issuance date using a Black-Scholes option pricing model with the following assumptions: September 29, 2014 Fair value of common stock $1.08 Volatility 72.40% Expected dividends 0.00% Contractual term 5.0 years Risk-free rate 1.76% The Company utilized this fair value in its allocation of the loan proceeds between loan payable and the Warrant which was performed on a relative fair value basis. The fair value of the Warrant to purchase 419,020 shares of our common stock was approximately $273,000. Ultimately, the Company allocated $246,000 to the Warrant and recognized this amount in additional paid in capital. Accordingly, this amount is recognized as a debt discount and is being amortized as interest expense using the effective interest method over the term of the loan. Amortizations of this debt discount were $90,000 and $28,000 for the years ended January 2, 2016 and January 3, 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2016 | |
Income Taxes | |
Income Taxes | The provision for income tax consists of following: 2015 2014 2013 Current Federal $ - $ - $ - State 4,527 - - Deferred (net of valuation allowance) Federal - - - State - - - Income tax provision $ 4,527 $ - - At January 2, 2016 and January 3, 2015, the Company maintained a full valuation allowance against the entire deferred income tax balance which resulted in an effective tax rates of 0.2%, 0% and 0% for years 2015, 2014 and 2013, respectively. The valuation allowance increased by $381,000 as of January 2, 2016. A reconciliation of income taxes computed at the statutory Federal income tax rate to income taxes as reflected in the financial statements is summarized as follows: 2015 2014 2013 Federal income tax expense at statutory rate (34.0)% (34.0)% (34.0)% State income tax, net of federal benefit (5.1)% (5.3)% (4.3)% Permanent differences 5.7% 2.7% 2.6% Change in tax rates 0.7% (6.1)% (3.7)% Expirations of net operating losses 17.4% 0.0% 0.0% Change in valuation allowance 13.7% 42.8% 39.2% Other 1.8% (0.1)% 0.2% Effective tax rate 0.2% 0.0% 0.0% The deferred income tax assets and liabilities consisted of the following components as of January 2, 2016 and January 3, 2015: 2015 2014 Deferred tax assets: Net operating loss carryforward $ 10,860,000 $ 10,593,000 Capital loss carryforward 808,000 808,000 Stock options and restricted stock 3,048,000 2,934,000 Inventory reserve 249,000 226,000 Allowance for doubtful accounts 144,000 15,000 Accrued expenses 277,000 125,000 Deferred revenue - 4,000 Intangibles 23,000 26,000 Deferred rent 54,000 81,000 15,463,000 14,812,000 Less valuation allowance (15,050,000) (14,669,000) 413,000 143,000 Deferred tax liabilities: Leasehold improvements and equipment (284,000) (108,000) Prepaid expenses (129,000) (35,000) (413,000) (143,000) $ - $ - The Company has tax net operating loss carryforwards for federal and state income tax purposes of approximately $29,006,000 Under the Internal Revenue Code, certain ownership changes may subject the Company to annual limitations on the utilization of its net operating loss carryforward. The Company will continue to analyze the potential impact of any additional transactions undertaken upon the utilization of the net operating losses on a go forward basis. The Company has not identified any uncertain tax positions requiring a reserve as of January 2, 2016 and January 3, 2015. |
Employee Share-Based Compensati
Employee Share-Based Compensation | 12 Months Ended |
Jan. 02, 2016 | |
Employee Share-based Compensation | |
Employee Share-Based Compensation | Stock Option Plans At the discretion of the Company’s compensation committee (the “Compensation Committee”), and with the approval of the Company’s board of directors (the “Board of Directors”), the Company may grant options to purchase the Company’s common stock to certain individuals from time to time. Management and the Compensation Committee determine the terms of awards which include the exercise price, vesting conditions and expiration dates at the time of grant. Expiration dates for stock options are not to exceed 10 years from their date of issuance. The Company, under its Second Amended and Restated 2007 Equity Incentive Plan, is authorized to issue stock options that total no more than 20% of the shares of common stock issued and outstanding, as determined on a fully diluted basis. Beginning in 2007, stock options were no longer issuable under the Company’s 2000 Non-Qualified Incentive Stock Plan. The remaining amount available for issuance under the Second Amended and Restated 2007 Equity Incentive Plan totaled 3,321,226 at January 2, 2016. The stock option awards generally vest ratably over a four-year period following grant date after a passage of time. However, some stock option awards are performance based and vest based on the achievement of certain criteria established by the Compensation Committee, subject to approval by the Board of Directors. The fair value of the Company’s stock options was estimated at the date of grant using the Black-Scholes based option valuation model. The table below outlines the weighted average assumptions for options granted to employees during the years ended January 2, 2016, January 3, 2015 and December 28, 2013. Year Ended December 2015 2014 2013 Expected term 5.8 years 5.8 years 6.0 years Expected Volatility 75.8% 74.6% 32.8% Expected dividends 0.0% 0.0% 0.00% Risk-free rate 1.7% 1.9% 1.5% 1) Service Period Based Stock Options The majority of options granted by the Company are comprised of service based options granted to employees. These options vest ratably over a defined The following table summarizes service period based stock options activity: Weighted Average Remaining Aggregate Number of Exercise Contractual Fair Intrinsic Shares Price Term Value Value Outstanding at December 29, 2012 12,202,558 $ 1.08 8.25 Options Granted 805,000 0.81 10.00 $0.29 Options Exercised (26,038) 0.51 Options Expired (75,000) 0.50 Options Forfeited (792,865) 1.19 Outstanding at December 28, 2013 12,113,655 $ 1.06 7.43 Options Granted 2,233,987 1.39 10.00 $0.90 Options Classification from Employee to Non-Employee (113,151) 0.76 8.68 Options Exercised (534,715) 0.87 Options Expired (253,900) 1.00 Options Forfeited (722,275) 1.13 Outstanding at January 3, 2015 12,723,601 $ 1.13 7.00 Options Granted 2,191,685 1.22 10.00 $0.76 Options Classification from Employee to Non-Employee (1,542,071) 0.93 7.78 Options Exercised (120,708) 0.79 Options Forfeited (310,274) 1.31 Outstanding at January 2, 2016 12,942,233 $ 1.17 6.44 $2,123,923 Exercisable at January 2, 2016 10,034,596 $ 1.16 5.73 $1,921,746 The aggregate intrinsic values in the table 2) Performance Based Stock Options The Company also grants stock option awards that are performance based and vest based on the achievement of certain criteria established from time to time by the Compensation Committee. If these performance criteria are not met, the compensation expenses are not recognized and the expenses that have been recognized will be reversed. The following table summarizes performance based stock options activity: Weighted Average Remaining Aggregate Number of Exercise Contractual Fair Intrinsic Shares Price Term Value Value Outstanding at December 29, 2012 145,834 $ 1.59 8.27 Options Granted 200,000 0.63 10.00 $ 0.22 Options Exercised - - Options Forfeited (145,834) 1.59 Outstanding at December 28, 2013 200,000 $ 0.63 9.08 Options Granted - - Options Exercised - - Options Forfeited - - Outstanding at January 3, 2015 200,000 $ 0.63 8.08 Options Granted - - Options Exercised - - Options Forfeited - - Outstanding at January 2, 2016 200,000 $ 0.63 7.08 $ 118,000 Exercisable at January 2, 2016 145,833 $ 0.63 7.08 $ 86,041 The aggregate intrinsic value in the table above are, based on the Company’s closing stock price of $1.22 on the last day of business for the period ended January 2, 2016. As of January 2, 2016, there was approximately $1,805,000 of total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the plans for employee stock options. That cost is expected to be recognized over a weighted average period of 2.36 years. Restricted Stock Awards Restricted stock awards granted by the Company to employees have vesting conditions that are unique to each award. The following table summarizes activity of restricted stock awards granted to employees: Weighted Average Award-Date Shares Fair Value Unvested shares at December 29, 2012 500,000 $ 0.69 Granted - - Vested - - Forfeited - - Unvested shares at December 28, 2013 500,000 $ 0.69 Granted 1,090,000 1.41 Vested - - Forfeited - - Unvested shares at January 3, 2015 1,590,000 $ 1.18 Granted - - Vested (520,000) 1.41 Forfeited - - Unvested shares at January 2, 2016 1,070,000 $ 1.07 Expected to Vest as of January 2, 2016 1,070,000 $ 1.07 During the year ended January 2, 2016, several members of the Company’s Board of Directors (the “Board”) resigned from the Board and received immediate vesting of their unvested restricted stock of 520,000 shares. The expense for the vested restricted stock was recognized during the fiscal year ended January 3, 2015. On January 2, 2014, the Company awarded an aggregate of 1,090,000 shares of restricted stock to the Company’s officers and members of the Board. The award includes the vested shares described above for members who resigned from the Board. These shares were to vest upon the earlier to occur of the following: (i) the market price of the Company’s stock exceeds a certain price, or (ii) one of other certain triggering events, including the termination of the officers and members of the board of directors without cause for any reason. The fair values of these restricted stock awards were $1,536,900 in aggregate, and they were based on the trading price of the Company’s common stock on the date of grant. The expense related to the restricted stock award has been amortized over the period of six months through July 1, 2014, as the Company determined the requisite service period to be 6 months as that is when they are eligible to vest. Subsequent to the year ended January 2, 2016, the Company and each of the executives and members of the Board amended the restricted stock awards to provide that the awards shall not vest upon the market price of the Company’s stock exceeding a certain price or listing of the Company’s stock on a national securities exchange. Employee Option and Restricted Stock Compensation The Company recognized share-based compensation expense of approximately $1,543,000, $2,747,000 and $958,000 in general and administrative expenses in the statement of operations for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. |
Non-Employee Share-Based Compen
Non-Employee Share-Based Compensation | 12 Months Ended |
Jan. 02, 2016 | |
LeaseholdImprovementsAndEquipmentTableTextBlock | |
Non-Employee Share-Based Compensation | Stock Option Plan At the discretion of management, working with the Compensation Committee, and with approval of the Board of Directors, the Company may grant options to purchase the CompanyÂ’s common stock to certain individuals from time to time who are not employees of the Company. These options are granted under the Second Amended and Restated 2007 Equity Incentive Plan of the Company and are granted on the same terms as those being issued to employees. Stock options granted to non-employees are accounted for using the fair value approach. The fair value of non-employee option grants are estimated using the Black-Scholes option-pricing model and are re-measured over the vesting term until earned. The estimated fair value is expensed over the applicable service period. The following table summarizes activity of stock options granted to non-employees: Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at December 29, 2012 1,097,300 $ 1.23 5.26 Options Granted - - Options Exercised (250,000) 0.50 Options Forfeited - - Outstanding at December 28, 2013 847,300 $ 1.44 5.74 Options Granted 90,000 1.24 10.00 Options Classification from Employee to Non-Employee 113,151 0.76 8.68 Options Exercised - - Options Forfeited - - Outstanding at January 3, 2015 1,050,451 $ 1.35 5.46 Options Granted - - Options Classification from Employee to Non-Employee 1,542,071 0.93 7.78 Options Exercised - - Options Forfeited - - Outstanding at January 2, 2016 2,592,522 $ 1.10 6.04 $550,111 Exercisable at January 2, 2016 2,558,772 $ 1.10 6.00 $549,961 The aggregate intrinsic values in the table above are, based on the CompanyÂ’s closing stock price of $1.22 on the last day of business for the year ended January 2, 2016. Stock and Restricted Stock Awards Restricted stock awards granted by the Company to non-employees generally feature time vesting service conditions, specified in the respective service agreements. Restricted stock awards issued to non-employees are accounted for at current fair value through the vesting period. On January 27, 2015, the Company awarded 350,000 shares of the CompanyÂ’s common stock to non-employees. 210,000 of these shares were treated as stock awards as the shares vested immediately on the date of award, and the remaining 140,000 shares, which were initially treated as unvested restricted stock, vested on May 28, 2015. The fair values of the awards, which totaled approximately $350,000, were measured based on the trading prices of the CompanyÂ’s stock on the date of award and the date vested. The expense related to these stock awards were fully recognized during the twelve-month period ended January 2, 2016. In addition, 24,000 shares of restricted stock that were granted to a certain non-employee during the fiscal year ended January 3, 2015 became vested during the twelve-month period ended January 2, 2016. The fair value of these vested restricted shares was approximately $30,000, which represents the market value of the CompanyÂ’s common stock on respective vesting dates charged to expense. The following table summarizes activity of restricted stock awards issued to non-employees: Weighted Average Shares Fair Value Unvested shares at December 29, 2012 - $ - Granted - - Vested - - Forfeited - - Unvested shares at December 28, 2013 - $ - Granted 96,000 1.30 Vested (20,000) 1.17 Forfeited - - Unvested shares at January 3, 2015 76,000 $ 0.90 Granted 140,000 0.86 Vested (164,000) 1.21 Forfeited - - Unvested shares expected to vest at January 2, 2016 52,000 $ 1.22 As of January 2, 2016, there was approximately $63,000 of total unrecognized compensation expense related to the restricted stock award to a non-employee. That cost is expected to be recognized over a period of 2.2 years as of January 2, 2016. There were also stock awards made in 2014, which the Company has recognized a portion of the expense in 2015 as the required service periods extended into 2015. During the twelve months ended January 3, 3015, the Company awarded an aggregate of 65,000 shares and recognized a total expense of approximately $129,000. During the twelve months ended December 28, 2013, the Company awarded an aggregate of 600,000 shares and recognized a total expense of approximately $325,000. Warrant Awards On October 27, 2014, the Company awarded a warrant to purchase 50,000 shares of the CompanyÂ’s common stock with an exercise price of $1.10 per share. The term of the warrant was 2 years. This warrant has not been exercised as of January 2, 2016. On August 7, 2012, the Company awarded a warrant to purchase 250,000 shares of the CompanyÂ’s common stock with an exercise price of $0.75 per share. The term of the warrant was 2 years. On December 9, 2013, the non-employee who held the warrant elected a cashless exercise pursuant to the provisions of the warrant and received 74,186 shares of common stock in lieu of 250,000 shares for a cash payment of $0.75 per share. The intrinsic value of the warrant exercised was approximately $91,000. Non-Employee Option, Stock, Restricted Stock and Warrant Awards For non-employee share-based compensation, the Company recognized share-based compensation expense of approximately $435,000, $170,000 and $330,000 in general and administrative expenses in the statement of operations for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. |
Stock Issuance
Stock Issuance | 12 Months Ended |
Jan. 02, 2016 | |
Stock Issuance | |
Stock Issuance | On November 4, 2015, the Company entered into Securities Purchase Agreements (“SPAs”) with certain existing stockholders to raise $2,000,000 in a registered direct offering. Pursuant to the SPAs, the Company sold a total of 200,000 Units at a purchase price of $10.00 per Unit, with each Unit consisting of eight shares of the Company’s common stock and a warrant to purchase four shares of common stock (800,000 total) with an exercise price of $1.50 and a term of 3 years. The aggregate estimated fair value of the warrants was approximately $489,000 and these warrants were determined to be classified as equity. The fair value was estimated at the date of issuance using the Black-Scholes based valuation model. The table below outlines the assumptions for the warrants issued. November 9, 2015 Fair value of common stock $1.47 Volatility 62.26% Expected dividends 0.00% Contractual term 3.0 years Risk-free rate 1.27% In Fiscal Year 2014, the Company issued 126,605 shares of common stock to vendors to settle outstanding payables balances of approximately $146,000. In Fiscal Year 2013, the Company sold approximately 3.5 million shares with gross proceeds of approximately $3.0 million to two strategic accredited investors pursuant to a subscription agreement. A total placement agent fee of $20,000 was incurred in connection with the investments. |
Warrants
Warrants | 12 Months Ended |
Jan. 02, 2016 | |
FairValueAssumptionsRiskFreeInterestRateStockIssuance | |
Warrants | The following table summarizes activity of warrants at January 2, 2016, January 3, 2015 and December 28, 2013 and changes during the years then ended: Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at December 29, 2012 10,056,914 $ 0.72 0.44 Warrants Issued Warrants Exercised (8,338,564) 0.25 Warrants Expired (1,718,350) 3.00 Outstanding at December 28, 2013 - - - - Warrants Issued 469,020 1.07 4.68 Warrants Exercised - - Warrants Expired - - Outstanding and exercisable at January 3, 2015 469,020 1.07 4.43 Warrants Issued 800,000 1.50 Warrants Exercised - - Warrants Expired - - Outstanding and exercisable at January 2, 2016 1,269,020 $ 1.34 3.07 $72,205 The aggregate intrinsic values in the table above are based on the CompanyÂ’s closing stock price of $1.22 on the last day of business for the year ended January 2, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Lease The Company leases its office and research facilities in California, Colorado and Maryland under operating lease agreements that expire at various dates from April 2016 through September 2019. Monthly lease payments range from $1,424 per month to $23,472 per month, and minimum lease payments escalate during the terms of the leases. Generally accepted accounting principles require total minimum lease payments to be recognized as rent expense on a straight-line basis over the term of the lease. The excess of such expense over amounts required to be paid under the lease agreement is carried as a liability on the Company’s consolidated balance sheet. Minimum future rental payments under Fiscal years ending: 2016 $ 355,000 2017 225,000 2018 233,000 2019 181,000 $ 994,000 Rent expense was approximately $536,000, $537,000, and $519,000 for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. Subsequent to the year ended January 2, 2016, the Company entered into a lease amendment to extend the term of the lease for its research facility located in Boulder, Colorado through April 2023. Pursuant to the lease amendment, the Company will make monthly lease payments range from $23,472 to $27,210, as the payments escalate during the term of the lease. Subsequent to the year ended January 2, 2016, the Company entered into a lease amendment to lease an office space located in Rockville, Maryland through April 2021. Pursuant to the lease amendment, the Company will make monthly lease payments range from $3,450 to $3,883, as the payments escalate during the term of the lease. Royalty The Company has 11 licensing agreements with leading research universities and other patent holders, pursuant to which the Company acquired patents related to certain products the Company offers to its customers. These agreements afford for future royalty payments based on contractual minimums and expire at various dates from December 31, 2019 through April 12, 2032. Yearly minimum royalty payments including license maintenance fees range from $5,000 per year to $50,000 per year, however, these minimum payments escalate each year with a maximum of $200,000 per year. In addition, the Company is required to pay a range of 2% to 8% of sales related to the licensed products under these agreements. Total royalty expenses including license maintenance fees from continuing operations for the years ended January 2, 2016, January 3, 2015 and December 28, 2013 were approximately $583,000, $323,000 and $111,000, respectively under these agreements. Minimum royalties including license maintenance fees for the next five years are as follows: Fiscal years ending: 2016 $ 308,000 2017 365,000 2018 403,000 2019 539,000 2020 374,000 $ 1,989,000 Legal proceedings The Company from time to time is involved in legal proceedings in the ordinary course of our business, which can include employment claims, product claims and patent infringements. We do not believe that any of these claims and proceedings against us as they arise are likely to have, individually or in the aggregate, a material adverse effect on our financial condition or results of operations. Severance payments to executive officers As of January 2, 2016, the Company has three executive officers, Frank Jaksch, Jr., Chief Executive Officer, Thomas Varvaro, Chief Financial Officer and Troy A. Rhonemus, Chief Executive Officer. Upon termination, Mr. Jaksch, Mr. Varvaro and Mr. Rhonemus will receive severance payments per the terms of the respective employment agreements entered with the Company. The key terms of the employment agreements, including the severance terms are as follows: Employment Agreement with Frank L. Jaksch Jr On April 19, 2010, the Company entered into an Amended and Restated Employment Agreement (the “Jaksch Agreement”) with Frank L. Jaksch Jr. The Jaksch Agreement automatically renews unless terminated in accordance with its terms. On January 2, 2014, the Board approved raising the annual base salary of Mr. Jaksch to $275,000 per year and the annual cash bonus target up to 50% of his base salary. On March 14, 2016, the Board increased the base salary of Mr. Jaksch to $320,000. The severance terms provide that in the event Mr. Jaksch’s employment with the Company is terminated voluntarily, he will be entitled to any accrued but unpaid base salary, any stock vested through the date of his termination and a pro-rated portion of 50% of his salary for the bonus. In addition, if Mr. Jaksch leaves the Company for “Good Reason”, (as defined in Jaksch Agreement), he will also be entitled to severance equal to 50% of his salary, and he will be deemed to have been employed for the entirety of such year. Severance will then consist of 16 weeks of paid salary, unless Mr. Jaksch signs a release, in which case he will receive compensation up to 12 months paid salary. In the event the Company terminates Mr. Jaksch’s employment “without Cause” (as defined in the Jaksch Agreement), Mr. Jaksch will be entitled to severance in the form of any stock vested through the date of his termination and continuation of his base salary for a period of eight weeks, or, if Mr. Jaksch enters into a standard separation agreement, Mr. Jaksch will receive continuation of base salary and health benefits, together with applicable fringe benefits until 24 months from the date of termination (the “Severance Period”), and he will receive a bonus of 50% of his base salary as well as the full vesting of any otherwise unvested stock. Employment Agreement with Thomas C. Varvaro On April 19, 2010, the Company entered into an Amended and Restated Employment Agreement (the “Varvaro Agreement”) with Thomas C. Varvaro. The Varvaro Agreement automatically renews unless terminated in accordance with its terms. On January 2, 2014, the Board approved raising the annual base salary of Mr. Varvaro to $225,000 per year and raising the annual cash bonus target up to 40% of his base salary. On March 14, 2016, the Board increased the base salary of Mr. Varvaro to $250,000. The severance terms provide that in the event Mr. Varvaro’s employment with us is terminated voluntarily, he will be entitled to any accrued but unpaid base salary, any stock vested through the date of his termination and a pro-rated portion of 40% of his salary for the bonus. In addition, if Mr. Varvaro leaves the Company for “Good Reason” (as defined in the Varvaro Agreement), he will also be entitled to severance equal to 50% of his salary, and he shall be deemed to have been employed for the entirety of such year. Severance will then consist of 16 weeks of paid salary, unless Mr. Varvaro signs a release, in which case he will receive compensation up to 12 months paid salary. In the event the Company terminates Mr. Varvaro’s employment “without Cause,” Mr. Varvaro will be entitled to severance in the form of any stock vested through the date of his termination and continuation of his base salary for a period of eight weeks, or, if Mr. Varvaro enters into a standard separation agreement, Mr. Varvaro will receive continuation of base salary and health benefits, together with applicable fringe benefits until 24 months from the date of termination (the “Severance Period”), will receive a bonus of 40% of his base salary as well as the full vesting of any otherwise unvested stock. Employment Agreement with Troy A. Rhonemus On March 6, 2014, the Company entered into an Employment Agreement (the “Rhonemus Agreement”) with Mr. Troy Rhonemus pursuant to which Mr. Rhonemus was appointed to serve as the Chief Operating Officer of the Company. On March 17, 2015, the Board increased the base salary to $190,000. The Rhonemus Agreement provides for an annual cash bonus (based on performance targets) of up to 30% of his base salary. On March 14, 2016, the Board increased the base salary of Mr. Rhonemus to $210,000. Upon termination, Mr. Rhonemus will be entitled to any accrued but unpaid base salary and any accrued but unpaid welfare and retirement benefits up to the termination date. In addition, if Mr. Rhonemus leaves the Company for “Good Reason” (as defined in the Rhonemus Agreement), he will also be entitled to severance equal to two weeks of base salary for each full year of service to a maximum of eight weeks of the base salary. In the event the Company terminates Mr. Rhonemus’ employment “without Cause,” Mr. Rhonemus will be entitled to severance equal to two weeks of base salary for each full year of service to a maximum of eight weeks of the base salary, or, if Mr. Rhonemus enters into a standard separation agreement, Mr. Rhonemus will receive continuation of base salary and health benefits, together with applicable fringe benefits as provided until the expiration of the term or renewal term then in effect, however, that in the case of medical and dental insurance, until the expiration of 12 months from the date of termination. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 02, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | On August 28, 2015, the Company entered into an Exclusive Supply Agreement (the “Supply Agreement”) with Healthspan Research, LLC (“Healthspan”). Under the terms of the Supply Agreement, Healthspan agreed to purchase NIAGEN® from the Company and the Company granted to Healthspan worldwide rights for resale of specific dietary supplements containing NIAGEN® in certain markets. Pursuant to the terms of the Supply Agreement, in exchange for a 4% equity interest in Healthspan, the Company agreed to initially supply NIAGEN® to Healthspan free of charge and thereafter at a fixed price and, in exchange for an additional 5% equity interest in Healthspan, the Company will grant to Healthspan certain exclusive rights to resell NIAGEN® in certain direct response channels. Healthspan will pay the Company royalties on the cumulative worldwide net sales of its finished products containing NIAGEN®. The exclusivity rights will remain for so long as Healthspan meets certain minimum purchase requirements. In the event that, during the initial term, the Company terminates the exclusivity rights due to failure to meet the minimum purchase requirements or for any reason other than a material breach of the Supply Agreement by Healthspan, then the 5% equity interest shall be automatically redeemed for a purchase price of $1.00 effective upon the date of termination of the exclusivity rights. In connection with the foregoing, also on August 28, 2015, the Company and Healthspan entered into an interest purchase agreement and limited liability company agreement pursuant to which the Company was issued 9% of the outstanding equity interests of Healthspan. Rob Fried, a director of the Company, is the manager of Healthspan and owns 91% of the outstanding equity interests of Healthspan. The Supply Agreement, interest purchase agreement and limited liability company agreement were unanimously approved by the independent directors of the Company. As of January 2, 2016, the Company had not shipped any NIAGEN® to Healthspan and Healthspan did not issue any equity interests to the Company. Accordingly, there is no accounting recognition of this arrangement for the twelve-month period ended on January 2, 2016. |
Business Segmentation and Geogr
Business Segmentation and Geographical Distribution | 12 Months Ended |
Jan. 02, 2016 | |
Intangible Assets Details | |
Business Segmentation and Geographical Distribution | Since the year ended December 28, 2013, the Company has generated significant revenue from its ingredients operations and has made operational changes, including changes in the organizational structure to support the ingredients operations. As a result, on December 29, 2013, the Company began segregating its financial results for ingredients operations, and has following three reportable segments. • Ingredients segment develops and commercializes proprietary-based ingredient technologies and supplies these ingredients to the manufacturers of consumer products in various industries including the nutritional supplement, food and beverage and animal health industries. • Core standards, and contract services segment includes supply of phytochemical reference standards, which are small quantities of plant-based compounds typically used to research an array of potential attributes, reference materials, and related contract services. • Scientific and regulatory consulting segment which consist of providing scientific and regulatory consulting to the clients in the food, supplement and pharmaceutical industries to manage potential health and regulatory risks. The “Other” classification includes corporate items not allocated by the Company to each reportable segment. Further, there are no intersegment sales that require elimination. The Company evaluates performance and allocates resources based on reviewing gross margin by reportable segment. Year ended Core Standards and January 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 12,542,314 $ 8,418,672 $ 1,053,154 $ - $ 22,014,140 Cost of sales 6,664,164 6,346,903 522,065 - 13,533,132 Gross profit 5,878,150 2,071,769 531,089 - 8,481,008 Operating expenses: Sales and marketing 1,111,993 1,201,455 13,340 - 2,326,788 Research and development 891,601 - - - 891,601 General and administrative - - - 7,416,451 7,416,451 Operating expenses 2,003,594 1,201,455 13,340 7,416,451 10,634,840 Operating income (loss) $ 3,874,556 $ 870,314 $ 517,749 $ (7,416,451) $ (2,153,832) Year ended Core Standards and January 3, 2015 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 6,857,177 $ 7,487,189 $ 968,813 $ - $ 15,313,179 Cost of sales 4,257,347 5,141,667 588,500 - 9,987,514 Gross profit 2,599,830 2,345,522 380,313 - 5,325,665 Operating expenses: Sales and marketing 1,081,209 975,800 79,575 - 2,136,584 Research and development 513,671 - - - 513,671 General and administrative - - - 7,860,930 7,860,930 Loss from investment in affiliate - - - 45,829 45,829 Operating expenses 1,594,880 975,800 79,575 7,906,759 10,557,014 Operating income (loss) $ 1,004,950 $ 1,369,722 $ 300,738 $ (7,906,759) $ (5,231,349) Year ended Core Standards and Scientific and December 28, 2013 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 2,430,699 $ 6,643,832 $ 1,146,718 $ (60,285) $ 10,160,964 Cost of sales 1,501,187 4,893,649 632,037 955 7,027,828 Gross profit (loss) 929,512 1,750,183 514,681 (61,240) 3,133,136 Operating expenses: Sales and marketing 752,121 1,459,620 14,705 131,159 2,357,605 Research and development 134,040 - - - 134,040 General and administrative - - - 4,982,976 4,982,976 Loss from investment in affiliate - - - 44,961 44,961 Operating expenses 886,161 1,459,620 14,705 5,159,096 7,519,582 Operating income (loss) $ 43,351 $ 290,563 $ 499,976 $ (5,220,336) $ (4,386,446) Core Standards and Scientific and At January 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 9,105,502 $ 3,306,624 $ 111,765 $ 6,225,318 $ 18,749,209 Core Standards and Scientific and At January 3, 2015 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 3,757,073 $ 3,220,518 $ 105,711 $ 4,433,545 $ 11,516,847 Revenues from international sources for the ingredients segment approximated $277,000, $35,000 and $22,000 for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. Revenues from international sources for the core standards and contract services segment approximated $1,651,000, $1,756,000 and $1,488,000 for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. Revenues from international sources for the scientific and regulatory consulting segment approximated $283,000, $104,000 and $450,000 for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. International sources which the Company generates revenue include Europe, North America, South America, Asia, and Oceania. The Company’s long-lived assets are located within the United States. Disclosure of major customers During the year ended January 2, 2016 Customer B in our ingredients segment accounted for 11.0% of the Company’s total sales. Customer B accounted for less than 10% of the Company’s total sales for the years ended January 3, 2015 and December 28, 2013. During the year ended January 3, 2015, Customer A in our ingredients segment accounted for 10.2% of the Company’s total sales. Customer A accounted for less than 10% of the Company’s total sales for the years ended January 2, 2016 and December 28, 2013. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Three Months Ended April 4, 2015 July 4, 2015 October 3, 2015 January 2, 2016 Sales, net $ 5,260,971 $ 6,101,380 $ 6,287,309 $ 4,364,480 Cost of sales 3,333,347 3,630,688 3,805,679 2,763,418 Gross profit 1,927,624 2,470,692 2,481,630 1,601,062 Operating expenses 2,833,708 2,654,752 2,304,500 2,841,880 Operating income (loss) (906,084) (184,060) 177,130 (1,240,818) Nonoperating expenses (119,431) (131,132) (180,846) (181,299) Provision for income taxes - - - (4,527) Net loss $ (1,025,515) $ (315,192) $ (3,716) $ (1,426,644) Basic and Diluted loss per common share $ (0.01) $ (0.00) $ (0.00) $ (0.01) Basic and Diluted weighted average common shares outstanding 107,198,597 107,409,894 107,442,916 108,476,686 Three Months Ended March 29, 2014 June 28, 2014 September 27, 2014 January 3, 2015 Sales, net $ 3,074,138 $ 3,856,154 $ 4,139,710 $ 4,243,177 Cost of sales 2,089,130 2,457,388 2,616,764 2,824,232 Gross profit 985,008 1,398,766 1,522,946 1,418,945 Operating expenses 2,823,773 3,040,194 2,170,380 2,522,667 Operating loss (1,838,765) (1,641,428) (647,434) (1,103,722) Nonoperating expenses (9,251) (11,714) (12,219) (123,652) Net loss $ (1,848,016) $ (1,653,142) $ (659,653) $ (1,227,374) Basic and Diluted loss per common share $ (0.02) $ (0.02) $ (0.01) $ (0.01) Basic and Diluted weighted average common shares outstanding 106,076,361 106,185,584 106,610,400 106,929,049 Three Months Ended March 30, 2013 June 29, 2013 September 28, 2013 December 28, 2013 Sales, net $ 2,334,566 $ 2,706,896 $ 2,718,207 $ 2,401,295 Cost of sales 1,661,726 1,746,158 1,968,020 1,651,924 Gross profit 672,840 960,738 750,187 749,371 Operating expenses 2,089,325 1,973,839 1,991,960 1,464,458 Operating loss (1,416,485) (1,013,101) (1,241,773) (715,087) Nonoperating expenses (7,587) (7,765) (8,490) (9,237) Net loss $ (1,424,072) $ (1,020,866) $ (1,250,263) $ (724,324) Basic and Diluted loss per common share $ (0.02) $ (0.01) $ (0.01) $ (0.01) Basic and Diluted weighted average common shares outstanding 94,626,120 99,833,963 101,309,939 104,179,748 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 02, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent to the year ended January 2, 2016, the Company entered into Securities Purchase Agreement (“SPA”) with an existing stockholder to raise $500,000 in a registered direct offering. Pursuant to the SPA, the Company sold a total of 384,615 Units at a purchase price of $1.30 per Unit, with each Unit consisting of one share of the Company’s common stock and a warrant to purchase one half of a share of common stock with an exercise price of $1.60 and a term of 3 years. The offering was made pursuant to a prospectus supplement dated March 11, 2016 and an accompanying prospectus dated May 8, 2015 pursuant to the Company’s shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission on May 8, 2015 and became effective on June 5, 2015 (File No. 333-203204). The prospectus supplement registered the shares of common stock issued in the offering and the common stock underlying the warrants. On March 14, 2016, the Board of Directors increased the base salaries of Frank L. Jaksch Jr., Thomas C. Varvaro and Troy A. Rhonemus, the Company’s Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, respectively. Effective as of March 14, 2016, the base salary for Mr. Jaksch increased from $275,000 to $320,000, an increase of 16.4%, the base salary for Mr. Varvaro increased from $225,000 to $250,000, an increase of 11.1%, and the base salary for Mr. Rhonemus increased from $190,000 to $210,000, an increase of 10.5%. |
Significant Accounting Polici25
Significant Accounting Policies (Policy) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: |
Changes in accounting principle | Changes in accounting principle: The Company early adopted the amendments in this ASU effective as of April 4, 2015. As of January 2, 2016 and January 3, 2015, the Company had unamortized debt issuance costs of approximately $65,000 and $91,000, respectively. The Company had previously presented the debt issuance costs as other noncurrent assets in its consolidated balance sheet as of January 3, 2015 in the CompanyÂ’s Annual Report on Form 10-K filed with the Commission on March 19, 2015. The early adoption has resulted in adjustments to the CompanyÂ’s consolidated balance sheet as of January 3, 2015, by reclassifying the debt issuance costs as a direct deduction from the carrying amount of the debt liability. Below are the effects of the change on the consolidated balance sheet as of January 3, 2015. ChromaDex Corporation and Subsidiaries Condensed Consolidated Balance Sheet January 3, 2015 Previously Reported Adjustments As Adjusted Assets Current Assets $ 9,898,691 $ - $ 9,898,691 Leasehold Improvements and Equipment, net 1,264,660 - 1,264,660 Other Noncurrent Assets 444,857 (91,361) 353,496 Total assets $ 11,608,208 $ (91,361) $ 11,516,847 Liabilities and Stockholders' Equity Current Liabilities $ 4,980,820 $ - $ 4,980,820 Loan payable, less current maturities, net 2,068,474 (91,361) 1,977,113 Capital lease obligations, less current maturities 423,015 - 423,015 Deferred rent, less current 137,508 - 137,508 Total liabilities 7,609,817 (91,361) 7,518,456 Total stockholders' equity 3,998,391 - 3,998,391 Total liabilities and stockholders' equity $ 11,608,208 $ (91,361) $ 11,516,847 |
Use of accounting estimates | Use of accounting estimates |
Changes in accounting estimates | Changes in accounting estimates For stock options granted during the years ended January 2, 2016 and January 3, 2015, the Company calculated the expected volatility rate based on the combined volatilities of publicly held companies in similar industries and volatility of the CompanyÂ’s common stock. Based on the expected term of stock options, a 20~100% weight was assigned to the volatility of the CompanyÂ’s common stock as the historical volatility of the CompanyÂ’s common stock from June 2008 through April 2010 was exceptionally high due to a thinly traded market. Below table illustrates the CompanyÂ’s historical volatility and the average daily trading volume of the CompanyÂ’s common stock from June 2008 through April 2010 and from April 2010 through December 2015. Period Volatility Average Daily Trading Volume 6/20/2008 ~ 4/19/2010 402% 11,455 4/20/2010 ~ 1/2/2016 74% 147,703 The weighted average expected volatilities for the stock options granted during the twelve-month period ended January 2, 2016 and January 3, 2015 following the update to our estimate are approximately 76% and 75%, respectively. The weighted average expected volatility would have been approximately 30~40% for these two years, had we computed solely based on the volatility rates of similarly situated public companies. For the year ended December 28, 2013, the weighted average expected volatility the Company used to estimate the fair value of the CompanyÂ’s stock options granted was approximately 33%. The following is a pro-forma disclosure of our historical calculation of estimated volatility over the expected term based on a grant with an expected term of 6 years: Fiscal Year 2013 Fiscal Year 2013 Name Use Volatility Name Use Volatility Covance, Inc. 50% 35% ChromaDex Corp. 20% 243% Sigma-Aldrich Corp. 50% 30% Covance Inc. 40% 35% Sigma-Aldrich Corp. 40% 30% Weighted Average 33% Weighted Average 75% The change in our estimate of volatility did not result to a material additional expense to our statement of operations. |
Revenue recognition | Revenue recognition Shipping and handling fees billed to customers and the cost of shipping and handling fees billed to customers are included in net sales. For the years ending in January 2, 2016, January 3, 2015 and December 28, 2013, shipping and handling fees billed to customers were approximately $113,000, $115,000 and $110,000, respectively, and the cost of shipping and handling fees billed to customers were approximately, $112,000, $130,000 and $128,000, respectively. Shipping and handling fees not billed to customers are recognized as cost of sales. Taxes collected from customers and remitted to governmental authorities are excluded from revenue, which is presented on a net basis in the statement of operations. |
Cash concentration | Cash concentration |
Trade accounts receivable | Trade accounts receivable |
Inventories | Inventories 2015 2014 Reference standards $ 1,239,338 $ 1,760,305 Bulk ingredients 7,195,461 2,298,036 8,434,799 4,058,341 Less valuation allowance 261,000 324,000 $ 8,173,799 $ 3,734,341 Our normal operating cycle for reference standards is currently longer than one year. The Company has approximately 5,000 defined reference standards and holds a lot of these standards as inventory in small quantities, mostly in grams and milligrams. Due to the large number of different items we carry, certain groups of these reference standards have sales frequency that is slower than others and varies greatly year to year. In addition, for certain reference standards, the cost saving is advantageous when purchased in larger quantities and we have taken advantage of such opportunities when available. Such factors have resulted in an operating cycle to be more than one year on average. The Company gains competitive advantage through the broad offering of reference standards and it is critical for the Company to continue to expand its library of reference standards it offers for the growth of business. Nevertheless, the Company has recently made changes in its reference standards inventory purchasing practice, which the management believes will result in an improved turnover rate and shorter operating cycle without impacting our competitive advantage. The Company regularly reviews inventories on hand and reduces the carrying value for slow-moving and obsolete inventory, inventory not meeting quality standards and inventory subject to expiration. The reduction of the carrying value for slow-moving and obsolete inventory is based on current estimates of future product demand, market conditions and related management judgment. Any significant unanticipated changes in future product demand or market conditions that vary from current expectations could have an impact on the value of inventories. |
Intangible assets | Intangible assets |
Leasehold improvements and equipment | Leasehold improvements and equipment Useful Life Leasehold improvements Until the end of the lease term Computer equipment 3 to 5 years Furniture and fixtures 7 years Laboratory equipment 10 years Long-lived assets are reviewed for impairment on a periodic basis and when changes in circumstances indicate the possibility that the carrying amount may not be recoverable. Long-lived assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the forecast of undiscounted future cash flows is less than the carrying amount of the assets, an impairment charge would be recognized to reduce the carrying value of the assets to fair value. If a possible impairment is identified, the asset groupÂ’s fair value is measured relying primarily on a discounted cash flow methodology. |
Customer deposits and other | Customer deposits and other The cash received from government as research grants is recognized as a liability until the research is performed. Other than a nominal management fee, which the Company is entitled to earn when the research is performed, the research activities related to the grants are excluded from revenue and are presented on a net basis in the statement of operations. |
Income taxes | Income taxes t The Company has not recorded a reserve for any tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company files tax returns in all appropriate jurisdictions, which include a federal tax return and various state tax returns. Open tax years for these jurisdictions are 2012 to 2015, which statutes expire in 2016 to 2019, respectively. When and if applicable, potential interest and penalty costs are accrued as incurred, with expenses recognized in general and administrative expenses in the statements of operations. As of January 2, 2016, the Company has no liability for unrecognized tax benefits. |
Research and development costs | Research and development costs: |
Advertising | Advertising: |
Share-based compensation | Share-based compensation The fair value of the Company’s stock options is estimated at the date of grant using the Black-Scholes based option valuation model. For the volatility assumption, please refer to the earlier section “ Changes in accounting estimates The Company recognizes compensation expense over the requisite service period using the straight-line method for option grants without performance conditions. For stock options that have both service and performance conditions, the Company recognizes compensation expense using the graded attribution method. Compensation expense for stock options with performance conditions is recognized only for those awards expected to vest. From time to time, the Company awards shares of its common stock to non-employees for services provided or to be provided. The fair value of the awards are measured either based on the fair market value of stock at the date of grant or the value of the services provided, based on which is more reliably measureable. Since these stock awards are fully vested and non-forfeitable, upon issuance the measurement date for the award is usually reached on the date of the award. |
Fair Value Measurement | Fair Value Measurement: The standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the CompanyÂ’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
Financial instruments | Financial instruments The carrying amounts reported in the balance sheet for capital lease obligations are present values of the obligations, excluding the interest portion. Capital lease obligations with maturities less than one year are classified as current liabilities. The carrying amounts reported in the balance sheet for loan payable are present values net of discount, excluding the interest portion. The carrying value of long-term portion of the loan payable approximates fair value because the CompanyÂ’s interest rate yield based on the credit rating of the Company is believed to be near current market rates. The long-term portion of the CompanyÂ’s loan payable is considered a Level 3 liability within the fair value hierarchy. Loan payable with maturities less than one year are classified as current liabilities. |
Recent accounting standards: | Recent accounting standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-01 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Restatement | ChromaDex Corporation and Subsidiaries Condensed Consolidated Balance Sheet January 3, 2015 Previously Reported Adjustments As Adjusted Assets Current Assets $ 9,898,691 $ - $ 9,898,691 Leasehold Improvements and Equipment, net 1,264,660 - 1,264,660 Other Noncurrent Assets 444,857 (91,361) 353,496 Total assets $ 11,608,208 $ (91,361) $ 11,516,847 Liabilities and Stockholders' Equity Current Liabilities $ 4,980,820 $ - $ 4,980,820 Loan payable, less current maturities, net 2,068,474 (91,361) 1,977,113 Capital lease obligations, less current maturities 423,015 - 423,015 Deferred rent, less current 137,508 - 137,508 Total liabilities 7,609,817 (91,361) 7,518,456 Total stockholders' equity 3,998,391 - 3,998,391 Total liabilities and stockholders' equity $ 11,608,208 $ (91,361) $ 11,516,847 |
Historical volatility and the average daily trading volume of the Company's common stock | Period Volatility Average Daily Trading Volume 6/20/2008 ~ 4/19/2010 402% 11,455 4/20/2010 ~ 1/2/2016 74% 147,703 |
Pro-forma disclosure of our historical calculation of estimated volatility | Fiscal Year 2013 Fiscal Year 2013 Name Use Volatility Name Use Volatility Covance, Inc. 50% 35% ChromaDex Corp. 20% 243% Sigma-Aldrich Corp. 50% 30% Covance Inc. 40% 35% Sigma-Aldrich Corp. 40% 30% Weighted Average 33% Weighted Average 75% |
Inventories | 2015 2014 Reference standards $ 1,239,338 $ 1,760,305 Bulk ingredients 7,195,461 2,298,036 8,434,799 4,058,341 Less valuation allowance 261,000 324,000 $ 8,173,799 $ 3,734,341 |
Leasehold improvements and equipment | Useful Life Leasehold improvements Until the end of the lease term Computer equipment 3 to 5 years Furniture and fixtures 7 years Laboratory equipment 10 years |
Loss Per Share Applicable to 27
Loss Per Share Applicable to Common Stockholders (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Earnings Per Share Tables | |
Earnings Per Share | Years Ended 2015 2014 2013 Net loss $ (2,771,067) $ (5,388,185) $ (4,419,525) Basic and diluted loss per common share $ (0.03) $ (0.05) $ (0.04) Weighted average common shares outstanding (1): 107,632,022 106,459,379 99,987,443 Potentially dilutive securities (2): Stock options 15,734,755 13,974,052 13,160,955 Warrants 1,269,020 469,020 - Convertible debt 773,395 773,395 - (1) Includes 1,214,127, 1,623,186 and 500,000 weighted average nonvested shares of restricted stock for the years 2015, 2014 and 2013, respectively, which are participating securities that feature voting and dividend rights. (2) Excluded from the computation of loss per share as their impact is antidilutive. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Intangible Assets Tables | |
Intangible assets | 2015 2014 Gross Carrying Accumulated Net Gross Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Amortized intangible assets: License agreements and other $1,249,500 $ 895,458 $ 354,052 $1,205,275 $ 909,224 $ 296,061 |
Estimated aggregate amortization expense | Years ending December: 2016 $ 45,000 2017 45,000 2018 45,000 2019 45,000 2020 42,000 Thereafter 132,000 $ 354,000 |
Leasehold Improvements and Eq29
Leasehold Improvements and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Leasehold Improvements And Equipment | |
Leasehold Improvements and Equipment | 2015 2014 Laboratory equipment $ 3,737,908 $ 3,151,748 Leasehold improvements 513,453 495,240 Computer equipment 404,228 329,737 Furniture and fixtures 17,056 13,039 Office equipment 21,547 7,877 Construction in progress 4,420 68,141 4,698,612 4,065,782 Less accumulated depreciation 2,909,967 2,801,122 $ 1,788,645 $ 1,264,660 |
Capitalized Lease Obligations (
Capitalized Lease Obligations (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Capitalized Lease Obligations Tables | |
Minimum future lease payments | Year ending December: 2016 $ 267,601 2017 246,752 2018 197,899 2019 41,304 Total minimum lease payments 753,556 Less amount representing interest at a rate of approximately 8.6% per year 89,278 Present value of net minimum lease payments 664,278 Less current portion 219,689 Long-term obligations under capital leases $ 444,589 |
Loan Payable (Tables)
Loan Payable (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Fair value assumptions | September 29, 2014 Fair value of common stock $1.08 Volatility 72.40% Expected dividends 0.00% Contractual term 5.0 years Risk-free rate 1.76% |
Loan Payable, Principal amount payable | Principal amount payable for following years ending December 2016 $ 1,370,454 2017 1,991,688 2018 1,637,858 Total principal payments 5,000,000 Accrued end of term charge 68,082 Total loan payable 5,068,082 Less unamortized debt discount 194,169 Less current portion 1,528,578 Loan payable – long term $ 3,345,335 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Income Taxes Tables | |
Provision for income tax | 2015 2014 2013 Current Federal $ - $ - $ - State 4,527 - - Deferred (net of valuation allowance) Federal - - - State - - - Income tax provision $ 4,527 $ - - |
Reconciliation of income tax expense (benefit) | 2015 2014 2013 Federal income tax expense at statutory rate (34.0)% (34.0)% (34.0)% State income tax, net of federal benefit (5.1)% (5.3)% (4.3)% Permanent differences 5.7% 2.7% 2.6% Change in tax rates 0.7% (6.1)% (3.7)% Expirations of net operating losses 17.4% 0.0% 0.0% Change in valuation allowance 13.7% 42.8% 39.2% Other 1.8% (0.1)% 0.2% Effective tax rate 0.2% 0.0% 0.0% |
Deferred income tax assets and liabilities | 2015 2014 Deferred tax assets: Net operating loss carryforward $ 10,860,000 $ 10,593,000 Capital loss carryforward 808,000 808,000 Stock options and restricted stock 3,048,000 2,934,000 Inventory reserve 249,000 226,000 Allowance for doubtful accounts 144,000 15,000 Accrued expenses 277,000 125,000 Deferred revenue - 4,000 Intangibles 23,000 26,000 Deferred rent 54,000 81,000 15,463,000 14,812,000 Less valuation allowance (15,050,000) (14,669,000) 413,000 143,000 Deferred tax liabilities: Leasehold improvements and equipment (284,000) (108,000) Prepaid expenses (129,000) (35,000) (413,000) (143,000) $ - $ - |
Employee Share-Based Compensa33
Employee Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Employee Share-based Compensation Tables | |
Weighted average assumptions of stock options granted | Year Ended December 2015 2014 2013 Expected term 5.8 years 5.8 years 6.0 years Expected Volatility 75.8% 74.6% 32.8% Expected dividends 0.0% 0.0% 0.00% Risk-free rate 1.7% 1.9% 1.5% |
Service Period Based Stock Options | Weighted Average Remaining Aggregate Number of Exercise Contractual Fair Intrinsic Shares Price Term Value Value Outstanding at December 29, 2012 145,834 $ 1.59 8.27 Options Granted 200,000 0.63 10.00 $ 0.22 Options Exercised - - Options Forfeited (145,834) 1.59 Outstanding at December 28, 2013 200,000 $ 0.63 9.08 Options Granted - - Options Exercised - - Options Forfeited - - Outstanding at January 3, 2015 200,000 $ 0.63 8.08 Options Granted - - Options Exercised - - Options Forfeited - - Outstanding at January 2, 2016 200,000 $ 0.63 7.08 $ 118,000 Exercisable at January 2, 2016 145,833 $ 0.63 7.08 $ 86,041 |
Performance Based Stock Options | Weighted Average Remaining Aggregate Number of Exercise Contractual Fair Intrinsic Shares Price Term Value Value Outstanding at December 29, 2012 145,834 $ 1.59 8.27 Options Granted 200,000 0.63 10.00 $ 0.22 Options Exercised - - Options Forfeited (145,834) 1.59 Outstanding at December 28, 2013 200,000 $ 0.63 9.08 Options Granted - - Options Exercised - - Options Forfeited - - Outstanding at January 3, 2015 200,000 $ 0.63 8.08 Options Granted - - Options Exercised - - Options Forfeited - - Outstanding at January 2, 2016 200,000 $ 0.63 7.08 $ 118,000 Exercisable at January 2, 2016 145,833 $ 0.63 7.08 $ 86,041 |
Restricted stock awards granted to employees | The following table summarizes activity of restricted stock awards granted to employees: Weighted Average Award-Date Shares Fair Value Unvested shares at December 29, 2012 500,000 $ 0.69 Granted - - Vested - - Forfeited - - Unvested shares at December 28, 2013 500,000 $ 0.69 Granted 1,090,000 1.41 Vested - - Forfeited - - Unvested shares at January 3, 2015 1,590,000 $ 1.18 Granted - - Vested (520,000) 1.41 Forfeited - - Unvested shares at January 2, 2016 1,070,000 $ 1.07 Expected to Vest as of January 2, 2016 1,070,000 $ 1.07 |
Non-Employee Share-Based Comp34
Non-Employee Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
NonemployeeSharebasedCompensationTablesAbstract | |
Non-Employee stock options | The following table summarizes activity of stock options granted to non-employees: Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at December 29, 2012 1,097,300 $ 1.23 5.26 Options Granted - - Options Exercised (250,000) 0.50 Options Forfeited - - Outstanding at December 28, 2013 847,300 $ 1.44 5.74 Options Granted 90,000 1.24 10.00 Options Classification from Employee to Non-Employee 113,151 0.76 8.68 Options Exercised - - Options Forfeited - - Outstanding at January 3, 2015 1,050,451 $ 1.35 5.46 Options Granted - - Options Classification from Employee to Non-Employee 1,542,071 0.93 7.78 Options Exercised - - Options Forfeited - - Outstanding at January 2, 2016 2,592,522 $ 1.10 6.04 $550,111 Exercisable at January 2, 2016 2,558,772 $ 1.10 6.00 $549,961 |
Restricted stock award activity | The following table summarizes activity of restricted stock awards issued to non-employees: Weighted Average Shares Fair Value Unvested shares at December 29, 2012 - $ - Granted - - Vested - - Forfeited - - Unvested shares at December 28, 2013 - $ - Granted 96,000 1.30 Vested (20,000) 1.17 Forfeited - - Unvested shares at January 3, 2015 76,000 $ 0.90 Granted 140,000 0.86 Vested (164,000) 1.21 Forfeited - - Unvested shares expected to vest at January 2, 2016 52,000 $ 1.22 |
Stock Issuance (Tables)
Stock Issuance (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Stock Issuance Tables | |
Aegies Capital Corp. warrant assumptions | November 9, 2015 Fair value of common stock $1.47 Volatility 62.26% Expected dividends 0.00% Contractual term 3.0 years Risk-free rate 1.27% |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
WarrantsTablesAbstract | |
Warrants | Weighted Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding at December 29, 2012 10,056,914 $ 0.72 0.44 Warrants Issued Warrants Exercised (8,338,564) 0.25 Warrants Expired (1,718,350) 3.00 Outstanding at December 28, 2013 - - - - Warrants Issued 469,020 1.07 4.68 Warrants Exercised - - Warrants Expired - - Outstanding and exercisable at January 3, 2015 469,020 1.07 4.43 Warrants Issued 800,000 1.50 Warrants Exercised - - Warrants Expired - - Outstanding and exercisable at January 2, 2016 1,269,020 $ 1.34 3.07 $72,205 |
Commitments and Contingencis (T
Commitments and Contingencis (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Commitments Tables | |
Minimum future rental payments | Fiscal years ending: 2016 $ 355,000 2017 225,000 2018 233,000 2019 181,000 $ 994,000 |
Minimum royalties including license maintenance fees | Fiscal years ending: 2016 $ 308,000 2017 365,000 2018 403,000 2019 539,000 2020 374,000 $ 1,989,000 |
Business Segmentation and Geo38
Business Segmentation and Geographical Distribution (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Business Segmentation And Geographical Distribution Tables | |
Business Segmentation and Geographical Distribution | Year ended Core Standards and January 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 12,542,314 $ 8,418,672 $ 1,053,154 $ - $ 22,014,140 Cost of sales 6,664,164 6,346,903 522,065 - 13,533,132 Gross profit 5,878,150 2,071,769 531,089 - 8,481,008 Operating expenses: Sales and marketing 1,111,993 1,201,455 13,340 - 2,326,788 Research and development 891,601 - - - 891,601 General and administrative - - - 7,416,451 7,416,451 Operating expenses 2,003,594 1,201,455 13,340 7,416,451 10,634,840 Operating income (loss) $ 3,874,556 $ 870,314 $ 517,749 $ (7,416,451) $ (2,153,832) Year ended Core Standards and January 3, 2015 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 6,857,177 $ 7,487,189 $ 968,813 $ - $ 15,313,179 Cost of sales 4,257,347 5,141,667 588,500 - 9,987,514 Gross profit 2,599,830 2,345,522 380,313 - 5,325,665 Operating expenses: Sales and marketing 1,081,209 975,800 79,575 - 2,136,584 Research and development 513,671 - - - 513,671 General and administrative - - - 7,860,930 7,860,930 Loss from investment in affiliate - - - 45,829 45,829 Operating expenses 1,594,880 975,800 79,575 7,906,759 10,557,014 Operating income (loss) $ 1,004,950 $ 1,369,722 $ 300,738 $ (7,906,759) $ (5,231,349) Year ended Core Standards and Scientific and December 28, 2013 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Net sales $ 2,430,699 $ 6,643,832 $ 1,146,718 $ (60,285) $ 10,160,964 Cost of sales 1,501,187 4,893,649 632,037 955 7,027,828 Gross profit (loss) 929,512 1,750,183 514,681 (61,240) 3,133,136 Operating expenses: Sales and marketing 752,121 1,459,620 14,705 131,159 2,357,605 Research and development 134,040 - - - 134,040 General and administrative - - - 4,982,976 4,982,976 Loss from investment in affiliate - - - 44,961 44,961 Operating expenses 886,161 1,459,620 14,705 5,159,096 7,519,582 Operating income (loss) $ 43,351 $ 290,563 $ 499,976 $ (5,220,336) $ (4,386,446) Core Standards and Scientific and At January 2, 2016 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 9,105,502 $ 3,306,624 $ 111,765 $ 6,225,318 $ 18,749,209 Core Standards and Scientific and At January 3, 2015 Ingredients Contract Services Regulatory segment segment Consulting segment Other Total Total assets $ 3,757,073 $ 3,220,518 $ 105,711 $ 4,433,545 $ 11,516,847 |
Quarterly Financial Informati39
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Information Table | Three Months Ended April 4, 2015 July 4, 2015 October 3, 2015 January 2, 2016 Sales, net $ 5,260,971 $ 6,101,380 $ 6,287,309 $ 4,364,480 Cost of sales 3,333,347 3,630,688 3,805,679 2,763,418 Gross profit 1,927,624 2,470,692 2,481,630 1,601,062 Operating expenses 2,833,708 2,654,752 2,304,500 2,841,880 Operating income (loss) (906,084) (184,060) 177,130 (1,240,818) Nonoperating expenses (119,431) (131,132) (180,846) (181,299) Provision for income taxes - - - (4,527) Net loss $ (1,025,515) $ (315,192) $ (3,716) $ (1,426,644) Basic and Diluted loss per common share $ (0.01) $ (0.00) $ (0.00) $ (0.01) Basic and Diluted weighted average common shares outstanding 107,198,597 107,409,894 107,442,916 108,476,686 Three Months Ended March 29, 2014 June 28, 2014 September 27, 2014 January 3, 2015 Sales, net $ 3,074,138 $ 3,856,154 $ 4,139,710 $ 4,243,177 Cost of sales 2,089,130 2,457,388 2,616,764 2,824,232 Gross profit 985,008 1,398,766 1,522,946 1,418,945 Operating expenses 2,823,773 3,040,194 2,170,380 2,522,667 Operating loss (1,838,765) (1,641,428) (647,434) (1,103,722) Nonoperating expenses (9,251) (11,714) (12,219) (123,652) Net loss $ (1,848,016) $ (1,653,142) $ (659,653) $ (1,227,374) Basic and Diluted loss per common share $ (0.02) $ (0.02) $ (0.01) $ (0.01) Basic and Diluted weighted average common shares outstanding 106,076,361 106,185,584 106,610,400 106,929,049 Three Months Ended March 30, 2013 June 29, 2013 September 28, 2013 December 28, 2013 Sales, net $ 2,334,566 $ 2,706,896 $ 2,718,207 $ 2,401,295 Cost of sales 1,661,726 1,746,158 1,968,020 1,651,924 Gross profit 672,840 960,738 750,187 749,371 Operating expenses 2,089,325 1,973,839 1,991,960 1,464,458 Operating loss (1,416,485) (1,013,101) (1,241,773) (715,087) Nonoperating expenses (7,587) (7,765) (8,490) (9,237) Net loss $ (1,424,072) $ (1,020,866) $ (1,250,263) $ (724,324) Basic and Diluted loss per common share $ (0.02) $ (0.01) $ (0.01) $ (0.01) Basic and Diluted weighted average common shares outstanding 94,626,120 99,833,963 101,309,939 104,179,748 |
Nature of Business and Liquid40
Nature of Business and Liquidity (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Liquidity | ||||||||||||||||
Operating loss | $ (1,240,818) | $ 177,130 | $ (184,060) | $ (906,084) | $ (1,103,722) | $ (647,434) | $ (1,641,428) | $ (1,838,765) | $ (715,087) | $ (1,241,773) | $ (1,013,101) | $ (1,416,485) | $ (2,153,832) | $ (5,231,349) | $ (4,386,446) | |
Net loss | (1,426,644) | $ (3,716) | $ (315,192) | $ (1,025,515) | (1,227,374) | $ (659,653) | $ (1,653,142) | $ (1,848,016) | (724,324) | $ (1,250,263) | $ (1,020,866) | $ (1,424,072) | (2,771,067) | (5,388,185) | (4,419,525) | |
Cash and cash equivalents | $ 5,549,672 | $ 3,964,750 | $ 2,261,336 | $ 5,549,672 | $ 3,964,750 | $ 2,261,336 | $ 520,000 |
Significant Accounting Polici41
Significant Accounting Policies (Details) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Assets | ||||
Current Assets | $ 16,547,629 | $ 9,898,691 | ||
Leasehold Improvements and Equipment, net | 1,788,645 | 1,264,660 | ||
Total assets | 18,749,209 | 11,516,847 | ||
Liabilities and Stockholders' Equity | ||||
Current Liabilities | 9,586,621 | 4,980,820 | ||
Loan payable, less current maturities, net | 3,345,335 | 1,977,113 | ||
Capital lease obligations, less current maturities | 444,589 | 423,015 | ||
Deferred rent, less current | 97,990 | 137,508 | ||
Total liabilities | 13,474,535 | 7,518,456 | ||
Total stockholders' equity | 5,274,674 | 3,998,391 | $ 5,665,451 | $ 3,993,329 |
Total liabilities and stockholders' equity | $ 18,749,209 | 11,516,847 | ||
Previously Reported [Member] | ||||
Assets | ||||
Current Assets | 9,898,691 | |||
Leasehold Improvements and Equipment, net | 1,264,660 | |||
Other Noncurrent Assets | 444,857 | |||
Total assets | 11,608,208 | |||
Liabilities and Stockholders' Equity | ||||
Current Liabilities | 4,980,820 | |||
Loan payable, less current maturities, net | 2,068,474 | |||
Capital lease obligations, less current maturities | 423,015 | |||
Deferred rent, less current | 137,508 | |||
Total liabilities | 7,609,817 | |||
Total stockholders' equity | $ 3,998,391 | |||
Adjustments [Member] | ||||
Assets | ||||
Current Assets | ||||
Leasehold Improvements and Equipment, net | ||||
Other Noncurrent Assets | $ (91,361) | |||
Total assets | $ (91,361) | |||
Liabilities and Stockholders' Equity | ||||
Current Liabilities | ||||
Loan payable, less current maturities, net | $ (91,361) | |||
Capital lease obligations, less current maturities | ||||
Deferred rent, less current | ||||
Total liabilities | $ (91,361) | |||
Total stockholders' equity | ||||
As Adjusted [Member] | ||||
Assets | ||||
Current Assets | $ 9,898,691 | |||
Leasehold Improvements and Equipment, net | 1,264,660 | |||
Other Noncurrent Assets | 353,496 | |||
Total assets | 11,516,847 | |||
Liabilities and Stockholders' Equity | ||||
Current Liabilities | 4,980,820 | |||
Loan payable, less current maturities, net | 1,977,113 | |||
Capital lease obligations, less current maturities | 423,015 | |||
Deferred rent, less current | 137,508 | |||
Total liabilities | 7,518,456 | |||
Total stockholders' equity | $ 3,998,391 |
Significant Accounting Polici42
Significant Accounting Policies (Details 1) - shares | 12 Months Ended | 22 Months Ended | 68 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | Apr. 19, 2010 | Jan. 02, 2016 | |
Accounting Policies [Abstract] | ||||
Volatility | 30.00% | 40.00% | 402.00% | 74.00% |
Average Daily Trading Volume | 11,455 | 147,703 |
Significant Accounting Polici43
Significant Accounting Policies (Details 2) | 12 Months Ended | 22 Months Ended | 68 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Apr. 19, 2010 | Jan. 02, 2016 | |
Volatility | 30.00% | 40.00% | 402.00% | 74.00% | |
ChromaDex Corp. [Member] | |||||
Use | 20.00% | ||||
Volatility | 243.00% | ||||
Covance Inc. [Member] | |||||
Use | 40.00% | ||||
Volatility | 35.00% | ||||
Sigma-Aldrich Corp. [Member] | |||||
Use | 40.00% | ||||
Volatility | 30.00% | ||||
Weighted Average [Member] | |||||
Volatility | 75.00% | ||||
Covance, Inc. Benchmark 1 [Member] | |||||
Use | 50.00% | ||||
Volatility | 35.00% | ||||
Sigma-Aldrich Corp. Benchmark 2 [Member] | |||||
Use | 50.00% | ||||
Volatility | 30.00% | ||||
Weighted Average Benchmark 2 [Member] | |||||
Volatility | 33.00% |
Significant Accounting Polici44
Significant Accounting Policies (Details 3) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Inventories | ||
Reference standards | $ 1,239,338 | $ 1,760,305 |
Bulk ingredients | 7,195,461 | 2,298,036 |
Inventory-gross | 8,434,799 | 4,058,341 |
Less valuation allowance | 261,000 | 324,000 |
Inventory-net | $ 8,173,799 | $ 3,734,341 |
Significant Accounting Polici45
Significant Accounting Policies (Details 4) | 12 Months Ended |
Jan. 02, 2016 | |
Leasehold improvements [Member] | |
Leasehold improvements and equipment useful life | Until the end of the lease term |
Computer equipment [Member] | |
Leasehold improvements and equipment useful life | 3 to 5 years |
Furniture and Fixtures [Member] | |
Leasehold improvements and equipment useful life | 7 years |
Laboratory equipment [Member] | |
Leasehold improvements and equipment useful life | 10 years |
Significant Accounting Polici46
Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | 22 Months Ended | 68 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Apr. 19, 2010 | Jan. 02, 2016 | |
Unamortized debt issuance costs | $ 65,000 | $ 91,000 | $ 65,000 | ||
Shipping and handling fees billed | 113,000 | 115,000 | $ 110,000 | ||
Cost of shipping and handling | 112,000 | 130,000 | 128,000 | ||
Research and development costs | 891,601 | 513,671 | 134,040 | ||
Advertising expense | $ 104,000 | $ 171,000 | $ 355,000 | ||
Stock options weight on Compay's historical Volatility rate | 76.00% | 75.00% | 33.00% | ||
Weighted average expected volatility volatility rate | 30.00% | 40.00% | 402.00% | 74.00% | |
Minimum [Member] | |||||
Stock options, Volatility | 20.00% | ||||
Maximum [Member] | |||||
Stock options, Volatility | 100.00% |
Loss Per Share Applicable to 47
Loss Per Share Applicable to Common Stockholders (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 02, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | ||
Earnings per share | |||||||||||||||||
Net loss | $ (1,426,644) | $ (3,716) | $ (315,192) | $ (1,025,515) | $ (1,227,374) | $ (659,653) | $ (1,653,142) | $ (1,848,016) | $ (724,324) | $ (1,250,263) | $ (1,020,866) | $ (1,424,072) | $ (2,771,067) | $ (5,388,185) | $ (4,419,525) | ||
Basic and diluted loss per common share | $ (0.01) | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.04) | ||
Weighted average common shares outstanding | [1] | 107,632,022 | 106,459,379 | 99,987,443 | |||||||||||||
Stock Options [Member] | |||||||||||||||||
Potentially dilutive securities | |||||||||||||||||
Diliutive securities | [2] | $ 15,734,755 | $ 13,974,052 | $ 13,160,955 | |||||||||||||
Warrant [Member] | |||||||||||||||||
Potentially dilutive securities | |||||||||||||||||
Diliutive securities | [2] | $ 1,269,020 | 469,020 | ||||||||||||||
Convertible Debt Securities [Member] | |||||||||||||||||
Potentially dilutive securities | |||||||||||||||||
Diliutive securities | [2] | $ 773,395 | $ 773,395 | ||||||||||||||
[1] | Includes 1,214,127, 1,623,186 and 500,000 weighted average nonvested shares of restricted stock for the years 2015, 2014 and 2013, respectively, which are participating securities that feature voting and dividend rights. | ||||||||||||||||
[2] | Excluded from the computation of loss per share as their impact is antidilutive. |
Loss Per Share Applicable to 48
Loss Per Share Applicable to Common Stockholders (Details Narrative) - shares | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Loss Per Share Applicable To Common Stockholders Details Narrative | |||
Weighted average nonvested shares of restricted stock | 1,214,127 | 1,623,186 | 500,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Intangible assets | ||
Gross Carrying Amount | $ 1,249,500 | $ 1,205,275 |
Accumulated Amortization | 895,458 | 909,224 |
Net Amount | $ 354,000 | $ 296,061 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Finite Lived Intangible Assets Future Amortization Expense | ||
2,016 | $ 45,000 | |
2,017 | 45,000 | |
2,018 | 45,000 | |
2,019 | 45,000 | |
2,020 | 42,000 | |
Thereafter | 132,000 | |
Intangible assets | $ 354,000 | $ 296,061 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | |||
Jan. 02, 2016 | Dec. 31, 2015 | Jan. 03, 2015 | Dec. 28, 2013 | |
Intangible Assets Details Narrative | ||||
Amortization expense on amortizable intangible assets | $ 45,014 | $ 35,589 | $ 23,532 | |
Unamortized expense to be recognized over a weighted average period | 8 years 2 months 12 days | |||
License fee | $ 78,000 | |||
Intangible assets useful life | 10 years |
Leasehold Improvements and Eq52
Leasehold Improvements and Equipment (Details) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Leasehold improvements | ||
Laboratory equipment | $ 3,737,908 | $ 3,151,748 |
Leasehold improvements | 513,453 | 495,240 |
Computer equipment | 404,228 | 329,737 |
Furniture and fixtures | 17,056 | 13,039 |
Office equipment | 21,547 | 7,877 |
Construction in progress | 4,420 | 68,141 |
Leasehold improvements, gross | 4,698,612 | 4,065,782 |
Less accumulated depreciation | 2,909,967 | 2,801,122 |
Leasehold improvements, total | $ 1,788,645 | $ 1,264,660 |
Leasehold Improvements and Eq53
Leasehold Improvements and Equipment (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Leasehold Improvements And Equipment Details Narrative | |||
Depreciation expense | $ 286,000 | $ 223,000 | $ 246,000 |
Capitalized lease obligations total cost | 1,137,000 | 1,074,000 | |
Capitalized lease obligations accumulated amortization | $ 231,000 | $ 243,000 |
Capitalized Lease Obligations54
Capitalized Lease Obligations (Details) | Jan. 02, 2016USD ($) |
Capital Leases Future Minimum Payments Due | |
2,016 | $ 267,601 |
2,017 | 246,752 |
2,018 | 197,899 |
2,019 | 41,304 |
Total minimum lease payments | 753,556 |
Less amount representing interest at a rate of approximately 8.6% per year | 89,278 |
Present value of net minimum lease payments | 664,278 |
Less current portion | 219,689 |
Long-term obligations under capital leases | $ 444,589 |
Capitalized Lease Obligations55
Capitalized Lease Obligations (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Capitalized Lease Obligations Details Narrative | |||
Interest expense | $ 62,000 | $ 47,000 | $ 34,000 |
Loan Payable (Details)
Loan Payable (Details) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Principal amount payable for following years ended December | ||
2,016 | $ 1,370,454 | |
2,017 | 1,991,688 | |
2,018 | 1,637,858 | |
Total principal payments | 5,000,000 | |
Accrued end of term charge | 68,082 | |
Total loan payable | 5,068,082 | |
Less unamortized debt discount | 194,169 | |
Less current portion | 1,528,578 | |
Loan payable - long term | $ 3,345,335 | $ 1,977,113 |
Loan Payable (Details 1)
Loan Payable (Details 1) - $ / shares | Nov. 04, 2015 | Sep. 29, 2014 |
Debt Disclosure [Abstract] | ||
Fair value of common stock | $ 1.08 | |
Volatility | 72.40% | |
Expected dividends | 0.00% | |
Contractual term | 3 years | 5 years |
Risk-free rate | 1.76% |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - USD ($) | Nov. 04, 2015 | Jun. 17, 2015 | Sep. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Term loan maximum borrowing capacity | $ 5,000,000 | |||||
Proceeds from loan | $ 2,500,000 | 2,500,000 | $ 2,500,000 | $ 2,500,000 | $ 0 | |
Facility charge | 15,000 | 50,000 | ||||
Term loan interest rate | 9.60% | |||||
Interest rate description | The Company may prepay all, but no less than all, of the outstanding loan balance, subject to prepayment charges of 3% during the first twelve months following closing, 2% during the next twelve months and 1% thereafter. On the earliest to occur of the (a) the loan maturity date, (b) the date the Company prepays the outstanding loan balance or (c) the date the outstanding loan balance becomes due and payable, the Company will pay Lender an end of term charge equal to 3.75% of all amounts drawn under the loan. | |||||
Common stock conversion price | $ 1.293 | |||||
Aggregate principal amount paid on conversion | $ 1,000,000 | |||||
Warrant issued | 419,020 | |||||
Fair value of the warrant to purchase common stock | $ 489,000 | $ 273,000 | ||||
Warrant exercise price | $ 1.50 | $ 1.062 | ||||
Warrant exercisable and expires term | 5 years | |||||
Lien on capital stock of Foreign subsidiaries | 35.00% | |||||
Debt issuance costs | $ 15,000 | $ 50,000 | ||||
Debt issuance costs First advance | $ 103,000 | |||||
Debt issuance costs Second advance | 15,000 | |||||
Amortization of debt issuance costs | 41,000 | 12,000 | ||||
Fair value of amortization of debt issuance costs | 90,000 | 28,000 | ||||
Unamortized debt issuance costs | 65,000 | 91,000 | ||||
End of term charge payable | 188,000 | |||||
End of Term charge | $ 94,000 | |||||
End of Term charge % | 3.75% | |||||
Accrued interest expense | $ 58,000 | 10,000 | ||||
Recognized in additional paid in capital | 0 | 246,189 | 0 | |||
Interest expense | $ 616,033 | $ 158,849 | $ 34,330 | |||
Lender [Member] | ||||||
Common stock conversion percentage | 50.00% | |||||
Company [Member] | ||||||
Common stock conversion percentage | 50.00% | |||||
Wall Street Journal [Member] | Minimum [Member] | ||||||
Term loan interest rate | 3.25% | |||||
Wall Street Journal [Member] | Maximum [Member] | ||||||
Term loan interest rate | 9.35% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Current | |||
Federal | |||
State | $ 4,527 | ||
Deferred (net of valuation allowance) | |||
Federal | |||
State | |||
Income tax provision | $ 4,527 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax expense at statutory rate | (34.00%) | (34.00%) | (34.00%) |
State income tax, net of federal benefit | (5.10%) | (5.30%) | (4.30%) |
Permanent differences | 5.70% | 2.70% | 2.60% |
Change in tax rates | 0.70% | (6.10%) | (3.70%) |
Expirations of net operating losses | 17.40% | 0.00% | 0.00% |
Change in valuation allowance | 13.70% | 42.80% | 39.20% |
Other | 1.80% | (0.10%) | 0.20% |
Effective Tax Rate | 0.20% | 0.00% | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 10,860,000 | $ 10,593,000 |
Capital loss carryforward | 808,000 | 808,000 |
Stock options and restricted stock | 3,048,000 | 2,934,000 |
Inventory reserve | 249,000 | 226,000 |
Allowance for doubtful accounts | 144,000 | 15,000 |
Accrued expenses | $ 277,000 | 125,000 |
Deferred revenue | 4,000 | |
Intangibles | $ 23,000 | 26,000 |
Deferred rent | 54,000 | 81,000 |
Deferred Tax Assets Gross | 15,463,000 | 14,812,000 |
Less valuation allowance | (15,050,000) | (14,669,000) |
Deferred Tax Assets Net | 413,000 | 143,000 |
Deferred tax liabilities: | ||
Leasehold improvements and equipment | (284,000) | (108,000) |
Prepaid expenses | (129,000) | (35,000) |
Deferred Income Tax Liabilities | $ (413,000) | $ (143,000) |
Deferred Tax Liabilities |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Effective income tax rates | 0.20% | 0.00% | 0.00% |
Increase in valuation allowance | $ 381,000 | ||
Capital loss carry forward offset future federal taxable capital | $ 2,065,000 | ||
Capital loss carry forward offset future federal taxable capital expiration date | Dec. 31, 2019 | ||
State [Member] | |||
Operating loss carryforwards expiration date (start) | Dec. 31, 2016 | ||
Federal [Member] | |||
Operating loss carryforwards expiration date (start) | Dec. 31, 2023 |
Employee Share-Based Compensa63
Employee Share-Based Compensation (Details) - Options [Member] | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Weighted average assumptions for options granted to employees | |||
Expected term | 5 years 9 months 18 days | 5 years 9 months 18 days | 6 years |
Expected Volatility | 75.80% | 74.60% | 32.80% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Risk-free rate | 1.70% | 1.90% | 1.50% |
Employee Share-Based Compensa64
Employee Share-Based Compensation (Details 1) - Service Period Based Stock Options [Member] - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Number of Shares | |||
Outstanding at Beginning of Period | 12,723,601 | 12,113,655 | 12,202,558 |
Options Granted | 2,191,685 | 2,233,987 | 805,000 |
Option classification from Employee to Non-Employee | (1,542,071) | (113,151) | |
Options Exercised | (120,708) | (534,715) | (26,038) |
Options Expired | (253,900) | (75,000) | |
Options Forfeited | (310,274) | (722,275) | (792,865) |
Outstanding at End of Period | 12,942,233 | 12,723,601 | 12,113,655 |
Exercisable at End of Period | 10,034,596 | ||
Weighted Average Exercise Price | |||
Outstanding at Beginning of Period | $ 1.13 | $ 1.06 | $ 1.08 |
Options Granted | 1.22 | 1.39 | 0.81 |
Option classification from Employee to Non-Employee | 0.93 | 0.76 | |
Options Exercised | 0.79 | 0.87 | 0.51 |
Options Expired | 1 | 0.50 | |
Options Forfeited | 1.31 | 1.13 | 1.19 |
Outstanding at End of Period | 1.17 | $ 1.13 | $ 1.06 |
Exercisable at End of Period | $ 1.16 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at Beginning of Period | 8 years 3 months | ||
Options granted | 10 years | 10 years | 10 years |
Option classification from Employee to Non-Employee | 7 years 9 months 11 days | 8 years 8 months 5 days | |
Outstanding at End of Period | 6 years 5 months 9 days | 7 years | 7 years 5 months 5 days |
Exercisable at End of Period | 5 years 8 months 23 days | ||
Fair Value of Options Granted | $ 0.76 | $ 0.90 | $ 0.29 |
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value outstanding | $ 2,123,923 | ||
Aggregate Intrinsic Value exercisable | $ 1,921,746 |
Employee Share-Based Compensa65
Employee Share-Based Compensation (Details 2) - Performance Based Stock Options [Member] - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Summary of performance based stock option activity- Shares | |||
Outstanding at Beginning of Period | 200,000 | 200,000 | 145,834 |
Options Granted | 200,000 | ||
Options Exercised | |||
Options Forfeited | (145,834) | ||
Outstanding at End of Period | 200,000 | 200,000 | 200,000 |
Exercisable at End of Period | 145,833 | ||
Weighted Average Exercise Price | |||
Outstanding at Beginning of Period | $ 0.63 | $ 0.63 | $ 1.59 |
Options Granted | $ 0.63 | ||
Options Exercised | |||
Options Forfeited | $ 1.59 | ||
Outstanding at End of Period | $ 0.63 | $ 0.63 | $ 0.63 |
Exercisable at End of Period | $ 0.63 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at Beginning of Period | 8 years 3 months 7 days | ||
Options Granted | 10 years | ||
Outstanding at End of Period | 7 years 29 days | 8 years 29 days | 9 years 29 days |
Exercisable at End of Period | 7 years 29 days | ||
Fair Value of Options Granted | $ 0.22 | ||
Aggregate Intrinsic Value | |||
Outstanding at End of Period | $ 118,000 | ||
Exercisable at End of Period | $ 86,041 |
Employee Share-Based Compensa66
Employee Share-Based Compensation (Details 3) - Restricted Stock [Member] - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Summary of activity of restricted stock awards granted to employees- Shares | |||
Unvested shares at Beginning of Period | 1,590,000 | 500,000 | 500,000 |
Granted | 1,090,000 | ||
Vested | (520,000) | ||
Forfeited | |||
Unvested shares at End of Period | 1,070,000 | 1,590,000 | 500,000 |
Expected to Vest as of End of Period | 1,070,000 | ||
Weighted Average Award-Date Fair Value | |||
Unvested shares at Beginning of Period | $ 1.18 | $ 0.69 | $ 0.69 |
Granted | $ 1.41 | ||
Vested | $ 1.41 | ||
Forfeited | |||
Unvested shares at End of Period | $ 1.07 | $ 1.18 | $ 0.69 |
Expected to Vest as of End of Period | $ 1.07 |
Employee Share-Based Compensa67
Employee Share-Based Compensation (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Employee Share-Based Compensation | |||
Closing stock price | $ 1.22 | ||
Restricted stock issued | 1,090,000 | ||
Restricted stock issued, value | $ 1,536,900 | ||
General and Administrative Expense [Member] | |||
Employee Share-Based Compensation | |||
Recognized share based compensation expense (income) | $ 1,543,000 | 2,747,000 | $ 958,000 |
Service Period Based Stock Options [Member] | |||
Employee Share-Based Compensation | |||
Closing stock price | $ 1.22 | ||
Aggregate intrinsic value of options exercised | $ 58,000 | $ 156,000 | $ 7,000 |
Options [Member] | |||
Employee Share-Based Compensation | |||
Remaining amount available for issuance | 3,321,226 | ||
Authorized stock options | 20.00% | ||
Expiration dates for stock options not exceeds | 10 years | ||
Vesting period | 4 years | ||
Unrecognized compensation expense | $ 1,805,000 | ||
Cost is expected to be recognized over a weighted average period | 2 years 4 months 10 days |
Non-Employee Share-Based Comp68
Non-Employee Share-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Non-Employee Share-Based Compensation- Options | |||
Outstanding at Beginning of Period | 1,050,451 | 847,300 | 1,097,300 |
Options Granted | 90,000 | ||
Options Classification from Employee to Non-Employee | 1,542,071 | 113,151 | |
Options Exercised | (250,000) | ||
Options Forfeited | |||
Outstanding at End of Period | 2,592,522 | 1,050,451 | 847,300 |
Exercisable at End of Period | 2,558,772 | ||
Weighted Average Exercise Price | |||
Outstanding at Beginning of Period | $ 1.35 | $ 1.44 | $ 1.23 |
Options Granted | 1.24 | ||
Options Classification from Employee to Non-Employee | $ 0.93 | $ 0.76 | |
Options Exercised | $ 0.50 | ||
Options Forfeited | |||
Outstanding at End of Period | $ 1.10 | $ 1.35 | $ 1.44 |
Exercisable at End of Period | $ 1.10 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at beginning of period | 5 years 3 months 4 days | ||
Options granted | 10 years | ||
Options Classification from Employee to Non-Employee | 7 years 9 months 11 days | 8 years 8 months 5 days | |
Outstanding at End of Period | 6 years 15 days | 5 years 5 months 16 days | 5 years 8 months 27 days |
Exercisable at End of Period | 6 years | ||
Aggregate Intrinsic Value | |||
Outstanding at End of Period | $ 550,111 | ||
Exercisable at End of Period | $ 549,961 |
Non-Employee Share-Based Comp69
Non-Employee Share-Based Compensation (Details 1) - Restricted Stock [Member] - Nonemployees [Member] - $ / shares | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Summary of activity of restricted stock awards granted to Non-employees- Shares | |||
Unvested shares at Beginning of Period | 76,000 | ||
Granted | 140,000 | 96,000 | |
Vested | (164,000) | (20,000) | |
Forfeited | |||
Unvested shares at End of Period | 76,000 | ||
Expected to Vest as of End of Period | 52,000 | ||
Weighted Average Award-Date Fair Value for Non-Employee Restricted Stock | |||
Unvested shares at Beginning of Period | $ 0.90 | ||
Granted | 0.86 | $ 1.30 | |
Vested | $ 1.21 | $ 1.17 | |
Forfeited | |||
Unvested shares at End of Period | $ 0.90 | ||
Expected to Vest as of End of Period | $ 1.22 |
Non-Employee Share-Based Comp70
Non-Employee Share-Based Compensation (Details Narrative) - USD ($) | Dec. 09, 2013 | Aug. 07, 2012 | Jan. 27, 2015 | Oct. 27, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Closing stock price | $ 1.22 | ||||||
Shares awarded during the period, value | $ 2,980,000 | ||||||
Fair value, stock award | $ 1,977,611 | $ 2,861,293 | $ 1,334,530 | ||||
Restricted Stock [Member] | Nonemployees [Member] | |||||||
Unrecognized expense | $ 63,000 | ||||||
Cost is expected to be recognized over a weighted average period | 2 years 2 months 12 days | ||||||
Shares awarded during the period, shares | 140,000 | ||||||
Fair value, stock award | $ 30,000 | ||||||
WarrantAward [Member] | |||||||
Cashless exercise pursuant to provisions of warrant | 74,186 | ||||||
Shares of common stock in lieu | 250,000 | ||||||
Cash payment | $ 0.75 | ||||||
NonEmployee Share Based Compensation [Member] | Stock and Restricted Stock Awards [Member] | |||||||
Shares awarded during the period, value | $ 350,000 | ||||||
Restricted stock granted | 24,000 | ||||||
NonEmployee Share Based Compensation [Member] | StockAward [Member] | |||||||
Shares awarded during the period, shares | 210,000 | 65,000 | 600,000 | ||||
Compensation expense | $ 129,000 | $ 325,000 | |||||
NonEmployee Shared Based Compensation [Member] | WarrantAward [Member] | |||||||
Shares awarded during the period, Warrants | 250,000 | 50,000 | |||||
Exercise price | $ 0.75 | $ 1.10 | |||||
Warrant term | 2 years | 2 years | |||||
Intrinsic value, warrant exercised | $ 91,000 | ||||||
NonEmployee Shared Based Compensation [Member] | GeneralAndAdministrativeExpenses [Member] | |||||||
Compensation expense | $ 435,000 | $ 170,000 | $ 330,000 |
Stock Issuance (Details)
Stock Issuance (Details) - Warrant [Member] | Nov. 09, 2015$ / shares |
Fair value of common stock | $ 1.47 |
Volatility | 62.26% |
Expected dividends | 0.00% |
Contractual term | 3 years |
Risk-free rate | 1.27% |
Stock Issuance (Details Narrati
Stock Issuance (Details Narrative) - USD ($) | Nov. 04, 2015 | Sep. 29, 2014 | Mar. 17, 2016 | Jan. 02, 2016 | Dec. 28, 2013 | Jan. 03, 2015 |
Stock Issuance | ||||||
Fair value of warrants | $ 489,000 | $ 273,000 | ||||
Purchase price per unit sold | $ 10 | |||||
Unit description | Eight shares of the Company's common stock and a warrant to purchase four shares of common stock (800,000 total) with an exercise price of $1.50 and a term of 3 years. | |||||
Unit warrant exercise price | $ 1.50 | $ 1.062 | ||||
Unit warrant term | 3 years | 5 years | ||||
Warrant to purchase four shares of common stock | 800,000 | |||||
Common stock issued | 108,010,766 | 105,271,058 | ||||
Sale of common stock | 200,000 | 3,500,000 | ||||
Proceeds from sale of common stock | $ 2,000,000 | $ 500,000 | $ 3,000,000 | |||
Placement agent fee | $ 20,000 | |||||
Vendor [Member] | ||||||
Stock Issuance | ||||||
Common stock issued | 126,605 | |||||
Common stock issued, value | $ 146,000 |
Warrants (Details)
Warrants (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Number of Shares | |||
Warrants outstanding at beginning of period | 469,020 | 10,056,914 | |
Warrants Issued | 800,000 | 469,020 | |
Warrants Exercised | (8,338,564) | ||
Warrants Expired | (1,718,350) | ||
Warrants outstanding at end of period | 1,269,020 | 469,020 | |
Warrants exercisable at end of period | 1,269,020 | 469,020 | |
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 1.07 | $ 0.72 | |
Warrants issued | $ 1.50 | $ 1.07 | |
Warrants exercised | 0.25 | ||
Warrant expired | $ 3 | ||
Outstanding at end of period | $ 1.34 | $ 1.07 | |
Exercisable at end of period | $ 1.34 | $ 1.07 | |
Aggregate Intrinsic Value | $ 72,205 | ||
Remaining Contractual Term, beginning of period | 3 years 26 days | 4 years 5 months 5 days | |
Weighted average contractual term, warrants issued | 4 years 8 months 5 days |
Warrants (Details Narrative)
Warrants (Details Narrative) | Jan. 02, 2016$ / shares |
Warrants Details Narrative | |
Closing stock price | $ 1.22 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jan. 02, 2016USD ($) |
Minimum Future Rental Payments | |
2,016 | $ 355,000 |
2,017 | 225,000 |
2,018 | 233,000 |
2,019 | 181,000 |
Minimum future rental payments | $ 994,000 |
Commitments and Contingencies76
Commitments and Contingencies (Details 1) | Jan. 02, 2016USD ($) |
Minimum Future Royalties | |
2,016 | $ 308,000 |
2,017 | 365,000 |
2,018 | 403,000 |
2,019 | 539,000 |
2,020 | 374,000 |
Minimum royalties including license maintenance fees | $ 1,989,000 |
Commitments and Contingencies77
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Lease | |||
Rent expense | $ 536,000 | $ 537,000 | $ 519,000 |
Royalty | |||
Royalty maximum | 200,000 | ||
Royalty expense including license maintenance fees | 583,000 | $ 323,000 | $ 111,000 |
Jaksch [Member] | |||
Severance payments to executive officers | |||
Salary | $ 275,000 | ||
Maximum Bonus target | 50.00% | ||
Varvaro [Member] | |||
Severance payments to executive officers | |||
Salary | $ 225,000 | ||
Maximum Bonus target | 40.00% | ||
Rhonemus [Member] | |||
Severance payments to executive officers | |||
Salary | $ 190,000 | ||
Maximum Bonus target | 30.00% | ||
Minimum [Member] | |||
Lease | |||
Monthly lease payment | $ 1,424 | ||
Royalty | |||
Minimum yearly royalty payments | $ 5,000 | ||
Royalty payable on sales | 2.00% | ||
Maximum [Member] | |||
Lease | |||
Monthly lease payment | $ 23,472 | ||
Royalty | |||
Minimum yearly royalty payments | $ 50,000 | ||
Royalty payable on sales | 8.00% | ||
Maximum [Member] | Jaksch [Member] | |||
Severance payments to executive officers | |||
Salary | $ 320,000 | ||
Maximum [Member] | Varvaro [Member] | |||
Severance payments to executive officers | |||
Salary | 250,000 | ||
Maximum [Member] | Rhonemus [Member] | |||
Severance payments to executive officers | |||
Salary | 210,000 | ||
Rockville, Maryland [Member] | Minimum [Member] | |||
Lease | |||
Monthly lease payment | 3,450 | ||
Rockville, Maryland [Member] | Maximum [Member] | |||
Lease | |||
Monthly lease payment | 3,883 | ||
Boulder, Colorado [Member] | Minimum [Member] | |||
Lease | |||
Monthly lease payment | 23,472 | ||
Boulder, Colorado [Member] | Maximum [Member] | |||
Lease | |||
Monthly lease payment | $ 27,210 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - Related Party [Member] | 12 Months Ended |
Jan. 02, 2016 | |
Related party transaction description | Pursuant to the terms of the Supply Agreement, in exchange for a 4% equity interest in Healthspan, the Company will initially supply NIAGEN® to Healthspan free of charge and thereafter at a fixed price and, in exchange for a 5% equity interest in Healthspan, the Company will grant to Healthspan certain exclusive rights to resell NIAGEN® in certain direct response channels. Healthspan will pay the Company royalties on the cumulative worldwide net sales of its finished products containing NIAGEN®. The exclusivity rights will remain for so long as Healthspan meets certain minimum purchase requirements. |
Equity interest received | 9.00% |
Business Segmentation and Geo79
Business Segmentation and Geographical Distribution (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Business Segmentation | |||||||||||||||
Net sales | $ 4,364,480 | $ 6,287,309 | $ 6,101,380 | $ 5,260,971 | $ 4,243,177 | $ 4,139,710 | $ 3,856,154 | $ 3,074,138 | $ 2,401,295 | $ 2,718,207 | $ 2,706,896 | $ 2,334,566 | $ 22,014,140 | $ 15,313,179 | $ 10,160,964 |
Cost of sales | 13,533,132 | 9,987,514 | 7,027,828 | ||||||||||||
Gross profit (loss) | 1,601,062 | 2,481,630 | 2,470,692 | 1,927,624 | 1,418,945 | 1,522,946 | 1,398,766 | 985,008 | 749,371 | 750,187 | 960,738 | 672,840 | 8,481,008 | 5,325,665 | 3,133,136 |
Operating expenses: | |||||||||||||||
Sales and marketing | 2,326,788 | 2,136,584 | 2,357,605 | ||||||||||||
Research and development | 891,601 | 513,671 | 134,040 | ||||||||||||
General and administrative | 7,416,451 | 7,860,930 | 4,982,976 | ||||||||||||
Loss from investment in affiliate | 45,829 | 44,961 | |||||||||||||
Operating expenses | 2,841,880 | 2,304,500 | 2,654,752 | 2,833,708 | 2,522,667 | 2,170,380 | 3,040,194 | 2,823,773 | 1,464,458 | 1,991,960 | 1,973,839 | 2,089,325 | 10,634,840 | 10,557,014 | 7,519,582 |
Operating income (loss) | $ (1,240,818) | $ 177,130 | $ (184,060) | $ (906,084) | $ (1,103,722) | $ (647,434) | $ (1,641,428) | $ (1,838,765) | $ (715,087) | $ (1,241,773) | $ (1,013,101) | $ (1,416,485) | (2,153,832) | (5,231,349) | (4,386,446) |
Ingredients Segment [Member] | |||||||||||||||
Business Segmentation | |||||||||||||||
Net sales | 12,542,314 | 6,857,177 | 2,430,699 | ||||||||||||
Cost of sales | 6,664,164 | 4,257,347 | 1,501,187 | ||||||||||||
Gross profit (loss) | 5,878,150 | 2,599,830 | 929,512 | ||||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 1,111,993 | 1,081,209 | 752,121 | ||||||||||||
Research and development | $ 891,601 | $ 513,671 | $ 134,040 | ||||||||||||
General and administrative | |||||||||||||||
Loss from investment in affiliate | |||||||||||||||
Operating expenses | $ 2,003,594 | $ 1,594,880 | $ 886,161 | ||||||||||||
Operating income (loss) | 3,874,556 | 1,004,950 | 43,351 | ||||||||||||
Core Standards Contract Services [Member] | |||||||||||||||
Business Segmentation | |||||||||||||||
Net sales | 8,418,672 | 7,487,189 | 6,643,832 | ||||||||||||
Cost of sales | 6,346,903 | 5,141,667 | 4,893,649 | ||||||||||||
Gross profit (loss) | 2,071,769 | 2,345,522 | 1,750,183 | ||||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | $ 1,201,455 | $ 975,800 | $ 1,459,620 | ||||||||||||
Research and development | |||||||||||||||
General and administrative | |||||||||||||||
Loss from investment in affiliate | |||||||||||||||
Operating expenses | $ 1,201,455 | $ 975,800 | $ 1,459,620 | ||||||||||||
Operating income (loss) | 870,314 | 1,369,722 | 290,563 | ||||||||||||
Scientific and Regulatory Consulting segment [Member] | |||||||||||||||
Business Segmentation | |||||||||||||||
Net sales | 1,053,154 | 968,813 | 1,146,718 | ||||||||||||
Cost of sales | 522,065 | 588,500 | 632,037 | ||||||||||||
Gross profit (loss) | 531,089 | 380,313 | 514,681 | ||||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | $ 13,340 | $ 79,575 | $ 14,705 | ||||||||||||
Research and development | |||||||||||||||
General and administrative | |||||||||||||||
Loss from investment in affiliate | |||||||||||||||
Operating expenses | $ 13,340 | $ 79,575 | $ 14,705 | ||||||||||||
Operating income (loss) | $ 517,749 | $ 300,738 | 499,976 | ||||||||||||
Other [Member] | |||||||||||||||
Business Segmentation | |||||||||||||||
Net sales | (60,285) | ||||||||||||||
Cost of sales | 955 | ||||||||||||||
Gross profit (loss) | (61,240) | ||||||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | $ 131,159 | ||||||||||||||
Research and development | |||||||||||||||
General and administrative | $ 7,416,451 | $ 7,860,930 | $ 4,982,976 | ||||||||||||
Loss from investment in affiliate | 45,829 | 44,961 | |||||||||||||
Operating expenses | 7,416,451 | 7,906,759 | 5,159,096 | ||||||||||||
Operating income (loss) | $ (7,416,451) | $ (7,906,759) | $ (5,220,336) |
Business Segmentation and Geo80
Business Segmentation and Geographical Distribution (Details 1) - USD ($) | Jan. 02, 2016 | Jan. 03, 2015 |
Total assets | $ 18,749,209 | $ 11,516,847 |
Ingredients Segment [Member] | ||
Total assets | 9,105,502 | 3,757,073 |
Core Standards Contract Services [Member] | ||
Total assets | 3,306,624 | 3,220,518 |
Scientific and Regulatory Consulting segment [Member] | ||
Total assets | 111,765 | 105,711 |
Other Segment [Member] | ||
Total assets | $ 6,225,318 | $ 4,433,545 |
Business Segmentation and Geo81
Business Segmentation and Geographical Distribution (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Ingredients Segment [Member] | |||
Revenue from international sources | $ 277,000 | $ 35,000 | $ 22,000 |
Core Standards Contract Services [Member] | |||
Revenue from international sources | 1,651,000 | 1,756,000 | 1,488,000 |
Scientific and Regulatory Consulting segment [Member] | |||
Revenue from international sources | $ 283,000 | $ 104,000 | $ 450,000 |
Customer A [Member] | |||
Customer concentration risk | 10.20% | ||
Customer B [Member] | |||
Customer concentration risk | 11.00% |
Quarterly Financial Informati82
Quarterly Financial Information (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Sales, net | $ 4,364,480 | $ 6,287,309 | $ 6,101,380 | $ 5,260,971 | $ 4,243,177 | $ 4,139,710 | $ 3,856,154 | $ 3,074,138 | $ 2,401,295 | $ 2,718,207 | $ 2,706,896 | $ 2,334,566 | $ 22,014,140 | $ 15,313,179 | $ 10,160,964 |
Cost of sales | 2,763,418 | 3,805,679 | 3,630,688 | 3,333,347 | 2,824,232 | 2,616,764 | 2,457,388 | 2,089,130 | 1,651,924 | 1,968,020 | 1,746,158 | 1,661,726 | |||
Gross profit | 1,601,062 | 2,481,630 | 2,470,692 | 1,927,624 | 1,418,945 | 1,522,946 | 1,398,766 | 985,008 | 749,371 | 750,187 | 960,738 | 672,840 | 8,481,008 | 5,325,665 | 3,133,136 |
Operating expenses | 2,841,880 | 2,304,500 | 2,654,752 | 2,833,708 | 2,522,667 | 2,170,380 | 3,040,194 | 2,823,773 | 1,464,458 | 1,991,960 | 1,973,839 | 2,089,325 | 10,634,840 | 10,557,014 | 7,519,582 |
Operating income (loss) | (1,240,818) | 177,130 | (184,060) | (906,084) | (1,103,722) | (647,434) | (1,641,428) | (1,838,765) | (715,087) | (1,241,773) | (1,013,101) | (1,416,485) | (2,153,832) | (5,231,349) | (4,386,446) |
Nonoperating expenses | (181,299) | $ (180,846) | $ (131,132) | $ (119,431) | (123,652) | (12,219) | (11,714) | (9,251) | (9,237) | (8,490) | (7,765) | (7,587) | (612,708) | $ (156,836) | $ (33,079) |
Provision for income taxes | (4,527) | (4,527) | |||||||||||||
Net loss | $ (1,426,644) | $ (3,716) | $ (315,192) | $ (1,025,515) | $ (1,227,374) | $ (659,653) | $ (1,653,142) | $ (1,848,016) | $ (724,324) | $ (1,250,263) | $ (1,020,866) | $ (1,424,072) | $ (2,771,067) | $ (5,388,185) | $ (4,419,525) |
Basic and Diluted loss per common share | $ (0.01) | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.04) |
Basic and Diluted weighted average common shares outstanding | 108,476,686 | 107,442,916 | 107,409,894 | 107,198,597 | 106,929,049 | 106,610,400 | 106,185,584 | 106,076,361 | 104,179,748 | 101,309,939 | 99,833,963 | 94,626,120 | 107,632,022 | 106,459,379 | 99,987,443 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Mar. 14, 2016 | Nov. 04, 2015 | Sep. 29, 2014 | Mar. 17, 2016 | Dec. 28, 2013 | Jan. 02, 2016 |
Subsequent events | ||||||
Proceeds from registered direct offering | $ 2,000,000 | $ 500,000 | $ 3,000,000 | |||
Purchase price per unit sold | $ 10 | |||||
Unit description | Eight shares of the Company's common stock and a warrant to purchase four shares of common stock (800,000 total) with an exercise price of $1.50 and a term of 3 years. | |||||
Unit warrant exercise price | $ 1.50 | $ 1.062 | ||||
Unit warrant term | 3 years | 5 years | ||||
Capital Units [Member] | ||||||
Subsequent events | ||||||
Units sold | 384,615 | |||||
Purchase price per unit sold | $ 1.30 | |||||
Unit description | One share of the Company's common stock and a warrant to purchase one half of a share of common stock with an exercise price of $1.60 and a term of 3 years. | |||||
Unit warrant exercise price | $ 1.60 | |||||
Unit warrant term | 3 years | |||||
Subsequent Event [Member] | Frank L. Jaksch Jr. [Member] | ||||||
Subsequent events | ||||||
Officers base salary description | Increased from $275,000 to $320,000 | |||||
Percentage of base salary increased | 16.40% | |||||
Subsequent Event [Member] | Thomas C. Varvaro [Member] | ||||||
Subsequent events | ||||||
Officers base salary description | Increased from $225,000 to $250,000 | |||||
Percentage of base salary increased | 11.10% | |||||
Subsequent Event [Member] | Troy A. Rhonemus [Member] | ||||||
Subsequent events | ||||||
Officers base salary description | Increased from $190,000 to $210,000 | |||||
Percentage of base salary increased | 10.50% |