Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 04, 2015 | Aug. 13, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Cartesian, Inc. | |
Entity Central Index Key | 1,094,814 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | CRTN | |
Entity Common Stock, Shares Outstanding | 9,143,025 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 4, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 11,054 | $ 12,999 |
Accounts receivable, net | 11,935 | 13,527 |
Inventory, net | 2,700 | 3,000 |
Prepaid and other current assets | 1,633 | 1,747 |
Total current assets | 27,322 | 31,273 |
NONCURRENT ASSETS: | ||
Property and equipment, net | 2,528 | 1,292 |
Goodwill | 8,018 | 8,015 |
Deferred income tax assets | 835 | 1,085 |
Other noncurrent assets | 487 | 611 |
Total Assets | 39,190 | 42,276 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 2,650 | 1,806 |
Current borrowings | 3,269 | 3,269 |
Liability for derivatives | 442 | 337 |
Accrued payroll, bonuses and related expenses | 3,952 | 3,899 |
Accrued severance liability and related costs | 0 | 1,694 |
Deferred revenue | 1,639 | 1,665 |
Other accrued liabilities | 1,431 | 986 |
Total current liabilities | 13,383 | 13,656 |
NONCURRENT LIABILITIES: | ||
Deferred income tax liabilities | 782 | 722 |
Deferred revenue | 614 | 330 |
Other noncurrent liabilities | 911 | 151 |
Total noncurrent liabilities | $ 2,307 | $ 1,203 |
Commitments and contingencies (Note 8) | ||
STOCKHOLDERS' EQUITY: | ||
Total stockholders' equity | $ 23,500 | $ 27,417 |
Total Liabilities and Stockholders' Equity | $ 39,190 | $ 42,276 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Revenues | $ 16,889 | $ 17,420 | $ 34,939 | $ 33,657 |
Cost of services | 11,337 | 11,080 | 22,709 | 21,390 |
Gross Profit | 5,552 | 6,340 | 12,230 | 12,267 |
Selling, general and administrative expenses (includes non-cash share-based compensation expense of $145 and $272 for the thirteen weeks ended July 4, 2015 and June 28, 2014, respectively, and $446 for each of the twenty-six weeks ended July 4, 2015 and June 28, 2014, respectively) | 8,160 | 7,789 | 15,466 | 13,708 |
Loss from operations | (2,608) | (1,449) | (3,236) | (1,441) |
Other (expense) income: | ||||
Interest expense, net | (48) | (63) | (108) | (71) |
Discount on note payable and transaction costs | 0 | (82) | 0 | (1,610) |
Change in fair value of warrants and derivative liabilities | 20 | 128 | (105) | 111 |
Incentive warrants expense | (9) | 0 | (47) | 0 |
Total other expense | (37) | (17) | (260) | (1,570) |
Loss before income taxes | (2,645) | (1,466) | (3,496) | (3,011) |
Income tax (provision) benefit | (120) | 1,553 | (290) | 1,524 |
Net (loss) income | (2,765) | 87 | (3,786) | (1,487) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | 618 | 286 | (63) | 423 |
Comprehensive (loss) income | $ (2,147) | $ 373 | $ (3,849) | $ (1,064) |
Net (loss) income per common share: | ||||
Basic | $ (0.34) | $ 0.01 | $ (0.47) | $ (0.20) |
Diluted | $ (0.34) | $ 0.01 | $ (0.47) | $ (0.20) |
Weighted average shares used in calculation of net (loss) income per common share | ||||
Basic (in shares) | 8,181 | 7,899 | 8,135 | 7,606 |
Diluted (in shares) | 8,181 | 8,140 | 8,135 | 7,606 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Allocated Share-based Compensation Expense | $ 145 | $ 272 | $ 446 | $ 446 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,786) | $ (1,487) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 414 | 339 |
Share-based compensation | 446 | 446 |
Deferred tax expense | 289 | (1,524) |
Inventory adjustment | 300 | 0 |
Discount on note payable | 0 | 1,265 |
Change in fair value of warrants and derivative liabilities | 105 | (111) |
Incentive warrants expense | 47 | 0 |
Other changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,600 | (4,645) |
Prepaid and other assets | (318) | 351 |
Trade accounts payable | 802 | 1,253 |
Deferred revenue | 588 | 2,144 |
Accrued severance liability and related costs | (1,694) | 0 |
Accrued liabilities | 3 | 1,826 |
Net cash used in operating activities | (1,204) | (143) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (627) | (260) |
Net cash used in investing activities | (627) | (260) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | (104) | (42) |
Borrowing on note payable | 0 | 3,269 |
Issuance of common stock | 50 | 2,066 |
Equity issuance costs | 0 | (167) |
Net cash (used in) provided by financing activities | (54) | 5,126 |
Effect of exchange rate on cash and cash equivalents | (60) | 146 |
Net (decrease) increase in cash and cash equivalents | (1,945) | 4,869 |
Cash and cash equivalents, beginning of period | 12,999 | 13,780 |
Cash and cash equivalents, end of period | 11,054 | 18,649 |
Supplemental disclosure of cash flow information: | ||
Cash paid during period for interest | 126 | 43 |
Accrued property and equipment additions | $ 284 | $ 58 |
Basis of Reporting
Basis of Reporting | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | The condensed consolidated financial statements and accompanying notes of Cartesian, Inc. and its subsidiaries ( ) The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for the thirteen and twenty-six weeks ended July 4, 2015 are not necessarily indicative of the results to be expected for the full year ending January 2, 2016. Revenue Recognition - Construction-Type and Production-Type Contracts The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, the Company revises its cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known. The Company develops, installs and supports customer software in addition to the provision of traditional consulting services. The Company recognizes revenue in connection with its software sales agreements under FASB ASC 985-605, utilizing the percentage of completion-like method described in FASB ASC 605- 35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of the software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes. No such revenues were recognized during the twenty-six weeks ended July 4, 2015 or June 28, 2014. In addition to the professional services related to the customization and implementation of its software, the Company may also provide post-contract support ("PCS") services, including technical support and maintenance services as well as other professional services not essential to the functionality of the software. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, the Company separates the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements “Fair Value Measurements” Level 1: Level 2: Level 3: In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Managed Services Implementation Revenues and Costs 19,000 79,000 116,000 229,000 201,000 360,000 409,000 564,000 189,000 366,000 4.7 4.6 146,000 22,000 For the Thirteen Weeks Ended June 28, 2014 Income Shares Per-Share (Numerator) (Denominator) Amount Basic EPS Net income available to common stockholders $ 87,000 7,899,000 $ 0.01 Effect of Dilutive Securities Warrants - 210,000 Stock Options - 5,000 Non-vested shares - 26,000 Diluted EPS Income available to common stockholders $ 87,000 8,140,000 $ 0.01 In accordance with the provisions of FASB ASC 260, " Earnings per Share, 67,376 138,004 142,846 “Transfers and Servicing Sales of Financial Assets” 12.0 6.4 Inventory 2.7 3.0 0.3 In July 2015, the FASB issued ASU 2015-11 which requires entities to measure most inventory at the lower of cost and net realizable value thereby simplifying the existing guidance which required entities to measure inventory at the lower of cost or market. Under the current guidance, market is defined as replacement cost, net realizable value or net realizable value less a normal profit margin. The newly issued guidance eliminates the requirement to determine replacement cost and defines net realizable value as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This new guidance is effective for the Company beginning in fiscal 2017. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, which provides guidance on a customer’s accounting for cloud computing costs. Under the ASU, a customer must determine whether a cloud computing arrangement contains a software license. If so, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under current U.S. GAAP. If the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The ASU does not prescribe how to account for cloud computing arrangements deemed to be service contracts. An arrangement would contain a software license element if both of the following criteria are met: the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty; and it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. The ASU is effective for annual periods (and interim periods therein) beginning after December 15, 2015. Early adoption is permitted. Entities may adopt the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“FASB ASU 2014-09”). This standard update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. Upon adoption of this standard update, we expect that the allocation and timing of revenue recognition will be impacted. In July 2015 the FASB voted to defer the effective date of this new standard by one year and to permit early adoption beginning as of the original effective date of the new standard. The provisions of FASB ASU 2014-09 will now be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and are to be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“FASB ASU 2014-12”). The standard update resolves the diverse accounting treatment for these share-based payments by requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The provisions of FASB ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. |
Strategic Alliance and Investme
Strategic Alliance and Investment by Elutions, Inc. | 6 Months Ended |
Jul. 04, 2015 | |
Investments, All Other Investments [Abstract] | |
Strategic Alliance And Investment [Text Block] | 2. Strategic Alliance and Investment by Elutions, Inc. Strategic Alliance and Investment by Elutions, Inc. On February 25, 2014, the Company entered into an investment agreement (the “Investment Agreement”) with Elutions, a provider of operational business intelligence solutions. Under the Investment Agreement, the Company agreed to issue and sell shares of common stock to Elutions and to issue stock purchase warrants to Elutions, and the parties agreed that a subsidiary of Elutions would loan funds to a subsidiary of the Company. On March 18, 2014, the Company and Elutions completed the closing (the "Closing") of the transactions contemplated under the Investment Agreement. At the Closing, (a) the Company issued and sold 609,756 3.28 2,000,000 3,268,664 996,544 3.28 3,400,000 3.85 4.85 Promissory Note The Note issued at Closing by the Company's subsidiary, Cartesian Limited, in the aggregate original principal amount of $ 3,268,664 7.825 March 18, 2019 5.50 9.825 Tracking Warrant Under the Tracking Warrant, Elutions may acquire 996,544 3.28 March 18, 2020 5.50 Incentive Warrant Under the Incentive Warrant, Elutions can earn the right to purchase up to 3,400,000 March 18, 2020 0.25 Additional Warrant Provisions Each of the Warrants has economic anti-dilution protection provisions which provide for adjustments to the exercise price and the number of shares of common stock which may be acquired pursuant to the Warrants in the event of issuances of shares of common stock by the Company at a price less than the 30-day volume weighted average trading price at the time of issuance, subject to a number of exceptions. Each of the Warrants also permits Elutions (subject to certain exceptions) to purchase shares in future equity offerings made by the Company on a pro rata basis to all stockholders, with such participation right based upon the maximum number of shares that may be purchased under the Warrant. Registration Rights At Closing, the Company and Elutions entered into a Registration Rights Agreement (the "Registration Rights Agreement"), pursuant to which the Company has obligations to register for resale the shares of common stock issued under the Investment Agreement and the Warrants. Under the Registration Rights Agreement, the Company granted certain piggyback registration rights to Elutions and agreed to file and maintain a resale shelf registration statement for the benefit of Elutions. The resale shelf registration was filed with the SEC on August 12, 2014 and was declared effective on August 26, 2014. Commercial Relationship The Investment Agreement and the agreements and instruments described above are part of a strategic relationship between the Company and Elutions. As part of the strategic relationship, the parties entered into certain commercial framework documents, including a Market Development Agreement and related Inventory Agreement, on February 25, 2014, and enter into client agreements and bilateral agreements from time to time in the ordinary course of business outlining the terms of the parties' commercial relationship with respect to business development and providing products, solutions and services to clients. The parties have agreed to a term of five years, with automatic two-year renewals unless notice is given, and subject to termination rights in certain events. The Company has agreed to restrictions during the term and for two years thereafter in regard to solutions or services that are substantially similar to or competitive with certain solutions or services of Elutions, and each party has agreed not to hire the other party's employees during the same period. The parties have agreed on a general framework for pursuing, entering into and implementing customer contracts, which includes providing for joint and separate client pursuits and marketing on an initial and ongoing basis, procedures for contracting with clients, procedures for interface between the parties, limited exclusivity requirements of Elutions relating to identified prospects and clients of the Company, intellectual property rights of Elutions to its products and related restrictions, restrictions regarding use of confidential information, limitations on liability of the parties, independent contractor status of the parties, limitations on publicity by the parties, and dispute resolution, including arbitration. The parties also agreed to a framework for certain initial inventory orders and reorders by the Company from Elutions, and related commitments, timing and pricing procedures, when the Company is the prime contracting party under certain client statements of work. With respect to the required initial inventory order, the Company was required to purchase $ 3.0 3.0 Accounting Treatment The fair value of the Note and the Holder Redemption Option were determined using a binomial lattice model. The model requires the following inputs: (i) price of the Company’s common stock; (ii) the expected life of the instrument or derivative; (iii) risk-free interest rate; (iv) estimated dividend yield, and (v) estimated stock volatility. Assumptions used in the calculation require significant management judgment. July 4, 2015 January 3, 2015 Common stock price $ 3.48 $ 4.25 Dividend yield 0.0 % 0.0 % Expected term 1.25 years 1.75 years Risk-free interest rate 1.2 % 1.5 % Estimated stock volatility 45.0 % 45.0 % In addition, the Company determined that the provision of the Note that permits Cartesian Limited to prepay the Note after 18 months if the trading price of the Company's common stock exceeds $ 5.50 The Holder Redemption Option was determined to be an embedded derivative liability that must be bifurcated and recorded as a liability. To determine the fair value of the Holder Redemption Option, management evaluates assumptions that require significant judgment. Changes in certain inputs to the valuation model, including the Company’s period end stock price and stock volatility, can have a significant impact on the estimated fair value. The fair value recorded for the Holder Redemption Option may vary significantly from period to period. This variability may result in the actual liability for a period either above or below the estimates recorded in the Company’s consolidated financial statements, resulting in significant fluctuations in other income (expense) as a result of the corresponding non-cash gain or loss recorded. The Company has classified the Holder Redemption Option as a Level 3 liability and changes in the fair value of the Holder Redemption Option are recognized in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company reassesses the fair value of this liability on a quarterly basis. Based on that assessment, the Company recognized a decrease of $ 20,000 124,000 105,000 108,000 Because the Company measures the Holder Redemption Option at fair value on a recurring basis transfers, if any, between the levels of the fair value hierarchy are recognized at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred. There were no transfers between Level 1, 2 or 3 liabilities during the twenty-six weeks ended July 4, 2015 or during the year ended January 3, 2015. The carrying value of the Note as of July 4, 2015 and January 3, 2015 was $ 3,269,000 3,107,000 3,089,000 The vesting of the Incentive Warrant is contingent on services to be provided by Elutions and the achievement of performance conditions by Elutions. The Incentive Warrant had zero fair value as of January 3, 2015. During the thirteen and twenty-six weeks ended July 4, 2015, Elutions earned 5,508 30,293 9,000 47,000 Quoted prices in Significant other Significant other Total Level 1 Level 2 Level 3 Holder Redemption Option $ 442 - - $ 442 Holder Fair value at January 3, 2015 $ 337 Total unrealized losses 105 Fair value at July 4, 2015 $ 442 As a result of the relative fair values of the instruments and the allocation of proceeds to the instruments and derivative, a debt discount of $1,265,000 was recognized and fully amortized during the thirteen weeks ended March 29, 2014. The discount was recognized as Other Expense in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income due to the fact that the Note may be called by the holder at any time. In addition, the Company incurred expenses in the amount of $ 120,000 512,000 82,000 345,000 38,000 167,000 |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 3. Goodwill and Long-Lived Assets North America EMEA Total Balance as of January 3, 2015 $ 3,947 $ 4,068 $ 8,015 Changes in foreign currency exchange rates - 3 3 Balance as of July 4, 2015 $ 3,947 $ 4,071 $ 8,018 The Company evaluates goodwill for impairment on an annual basis on the last day of the first fiscal month of the fourth quarter and whenever events or circumstances indicate that these assets may be impaired. The Company performs its impairment testing for goodwill in accordance with FASB ASC 350, “ Intangibles-Goodwill and Other. The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable in accordance with the provisions of FASB ASC 360, “ Property, Plant and Equipment |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | The Company issues stock option awards and non-vested share awards under its share-based compensation plans. The key provisions of the Company's share-based compensation plans are described in Note 4 to the Company's consolidated financial statements included in the 2014 Form 10-K. The Company recognized income tax benefits of $ 5,000 20,000 Equity Incentive Plan In April 2015, our Board of Directors approved an amendment and restatement of the Company's Equity Incentive Plan (the "Equity Plan"), which was approved by our stockholders at the 2015 annual meeting of stockholders which was held on June 16, 2015. As a result of the amendment and restatement, the cumulative number of shares of common stock that are available for issuance (inclusive of shares previously issued) under the Equity Plan increased by 500,000 2,305,659 2,805,659 Stock Options Shares Weighted Outstanding at January 3, 2015 307,753 $ 8.54 Forfeited/cancelled (22,000) $ 11.23 Outstanding at July 4, 2015 285,753 $ 8.33 Options vested and expected to vest at July 4, 2015 276,253 $ 8.48 Options exercisable at July 4, 2015 228,252 $ 9.45 The Company did not grant any service-based stock option awards during the twenty-six weeks ended July 4, 2015, while 70,000 13,000 24,000 38,000 28,000 39,000 78,000 Shares Weighted Outstanding at January 3, 2015 - $ - Granted 200,000 $ 3.34 Outstanding at July 4, 2015 200,000 $ 3.34 Options vested and expected to vest at July 4, 2015 200,000 $ 3.34 Options exercisable at July 4, 2015 - $ - On June 16, 2015 the Company granted a non-qualified stock option award for 200,000 3.34 • the stock option will vest with respect to 75,000 4.00 • the stock option will vest with respect to an additional 75,000 5.00 • the stock option will vest with respect to an additional 50,000 6.00 For stock options which contain market conditions, the market conditions are required to be considered when calculating the grant date fair value. FASB ASC 718 “Compensation Stock Compensation,” Grant Date Fair Value Per Share Derived Service Period $4.00 market condition tranche $ 1.95 151 $5.00 market condition tranche $ 1.95 262 $6.00 market condition tranche $ 1.99 362 During the thirteen and twenty-six weeks ended July 4, 2015 the Company recorded $ 22,000 share-based 369,000 17 Non-vested Shares Weighted Grant Date Shares Fair Value per Outstanding at January 3, 2015 81,000 $ 3.93 Vested (81,000) $ 3.93 Outstanding at July 4, 2015 - $ - The Company’s service-based non-vested share awards are valued at the date of grant based on the closing market price of the Company’s common stock, and are expensed on a graded vesting schedule over the vesting period. During the twenty-six weeks ended July 4, 2015 the Company recorded $ 54,000 There was no share-based compensation expense recorded during the thirteen weeks ended July 4, 2015 as these awards fully vested during the first quarter of fiscal 2015. 80,000 97,000 54,000 Weighted Grant Date Shares Fair Value per Outstanding at January 3, 2015 652,999 $ 3.19 Vested (63,095) $ 3.26 Forfeited (225,549) $ 3.14 Outstanding at July 4, 2015 364,355 $ 3.21 On March 10, 2014, the Company granted 40,000 10.5 3.93 14 800,000 3.14 Share-based compensation cost for performance-based non-vested share awards is measured at the grant date based on the fair value of shares expected to be earned at the end of the performance period, based on the closing market price of the Company’s common stock on the date of grant, and is recognized as expense using the straight-line method over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. During the thirteen and twenty-six weeks ended July 4, 2015, the Company recorded $ (63,000) 153,000 159,000 309,000 0.6 15 2000 Supplemental Stock Plan Shares Weighted Outstanding at January 3, 2015 82,600 $ 11.33 Forfeited/cancelled (18,300) $ 11.38 Outstanding at July 4, 2015 64,300 $ 11.32 Options vested and exercisable at July 4, 2015 64,300 $ 11.32 No awards have been granted under the Supplemental Stock Plan since it expired on May 23, 2010. There were no options exercised during the twenty-six weeks ended July 4, 2015 and June 28, 2014. As of July 4, 2015 there was no remaining unrecognized compensation cost related to the unvested portion of stock options issued under the Supplemental Stock Plan. Put Option In connection with the Company’s approval of the separation from service of the Company’s Chief Executive Officer on June 3, 2015, the Company issued a put option to the former executive which grants him the option and right to sell to the Company up to 112,692 4.50 Issuance Date Common stock price $ 3.30 Dividend yield 0.0 % Exercise price of put option $ 4.50 Expected term 0.78 years Risk-free interest rate 0.20 % Estimated stock volatility 55 % The liability component of the Put Option as of July 4, 2015 was approximately $ 507,000 4.50 33,000 0.29 168,000 1.49 372,000 3.30 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | 5. Supplemental Balance Sheet Information Accrued payroll, bonuses and related expenses, Other accrued liabilities and Other noncurrent liabilities consist of the following (amounts in thousands): July 4, 2015 January 3, 2015 Accrued payroll, bonuses and related expenses Accrued payroll $ 389 $ 385 Accrued bonuses 2,020 2,482 Accrued payroll taxes 458 437 Accrued vacation 728 360 Accrued severance 207 100 Other 150 135 $ 3,952 $ 3,899 Other accrued liabilities Sales and value-added taxes payable $ 197 $ 382 Lease liability (see Note 10) 106 Put option liability 507 Other 621 604 $ 1,431 $ 986 Other noncurrent liabilities Deferred lease incentive accrual $ 338 $ 55 Rent escalation accrual 286 96 Lease liability (see Note 10) 150 - Other 137 - $ 911 $ 151 |
Business Segments and Major Cus
Business Segments and Major Customers | 6 Months Ended |
Jul. 04, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 6. Business Segments and Major Customers The Company identifies its segments based on the way management organizes the Company to assess performance and make operating decisions regarding the allocation of resources. In accordance with the criteria in FASB ASC 280, " Segment Reporting Management evaluates segment performance based upon income (loss) from operations, excluding share-based compensation (benefits) and depreciation. There were no inter-segment revenues during the twenty-six weeks ended July 4, 2015 and June 28, 2014. In addition, in its administrative division, entitled "Not Allocated to Segments," the Company accounts for non-operating activity and the costs of providing corporate and other administrative services to all the segments, including, but not limited to, share-based compensation expense, depreciation expense, certain research and development costs, acquisition-related expense and costs related to the arbitration with the Company’s former Chief Executive Officer. . North America EMEA Strategic Not Total As of and for the twenty-six weeks ended July 4, 2015: Revenues $ 15,390 $ 19,343 $ 206 $ - $ 34,939 Income (loss) from operations 3,126 2,354 (859) (7,857) (3,236) Total assets $ 5,639 $ 6,296 $ 2,700 $ 24,555 $ 39,190 As of and for the thirteen weeks ended July 4, 2015: Revenues $ 7,472 $ 9,318 $ 99 $ - $ 16,889 Income (loss) from operations 1,337 282 (507) $ (3,720) (2,608) As of the fiscal year ended January 3, 2015 Total assets $ 7,398 $ 6,099 $ 3,030 $ 25,749 $ 42,276 As of and for the twenty-six weeks ended June 28, 2014: Revenues $ 16,234 $ 17,423 $ - $ - $ 33,657 Income (loss) from operations 3,975 3,321 (522) (8,215) (1,441) Total assets $ 5,853 $ 10,063 $ 757 $ 31,275 $ 47,948 As of and for the thirteen weeks ended June 28, 2014: Revenues $ 8,260 $ 9,160 $ - $ - $ 17,420 Income (loss) from operations 2,196 1,744 (377) (5,012) (1,449) Segment assets, regularly reviewed by management as part of its overall assessment of the segments' performance, include both billed and unbilled trade accounts receivable, net of allowances, inventory, and certain other assets, if applicable. Assets not assigned to segments include cash and cash equivalents, current and non-current investments, property and equipment, goodwill and intangible assets and deferred tax assets, excluding deferred tax assets recognized on accounts receivable reserves, which are assigned to their segments . For the Thirteen Weeks For the Twenty-six Weeks July 4, June 28, July 4, June 28, United States $ 7,676 $ 8,198 $ 15,596 $ 16,024 International: United Kingdom 8,729 8,540 18,442 16,295 Other 484 682 901 1,338 Total $ 16,889 $ 17,420 $ 34,939 $ 33,657 Long-Lived Assets July 4, 2015 January 3, 2015 United States $ 2,791 $ 1,673 United Kingdom 224 230 Total $ 3,015 $ 1,903 Revenues For the twenty-six weeks For the twenty-six weeks ended July 4, 2015 ended June 28, 2014 North EMEA North EMEA Customer A $ 9,508 $ 11,746 Customer B $ 7,992 $ 1,257 Customer C $ 6,828 $ 5,832 Revenues For the thirteen weeks For the thirteen weeks ended July 4, 2015 ended June 28, 2014 North EMEA North EMEA Customer A $ 4,758 $ 6,042 Customer B $ 3,850 $ 975 Customer C $ 3,454 $ 3,002 Accounts Receivable As of As of Customer A $ 1,754 $ 6,873 Customer B $ 3,434 $ 1,093 Customer C $ 2,410 $ 2,218 Revenues from the Company’s ten most significant customers accounted for approximately 90.9 83.0 90.7 83.9 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 04, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 7. Income Taxes During the thirteen weeks ended July 4, 2015, the Company recorded an income tax provision of $ 120,000 1,553,000 290,000 1,524,000 1,849,000 The Company has reserved all of its domestic net deferred tax assets as of July 4, 2015 and January 3, 2015 with a valuation allowance in accordance with the provisions of FASB ASC 740, “ Income Taxes 33.8 32.1 The Company analyzes its uncertain tax positions pursuant to the provisions of FASB ASC 740 “ Income Taxes The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and in various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2000. As of July 4, 2015, the Company has no income tax examinations in process. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 8. Commitments and Contingencies The Company is not subject to any material litigation as of July 4, 2015. However, the Company may become involved in various legal and administrative actions arising in the normal course of business. These could include actions brought by taxing authorities challenging the employment status of consultants utilized by the Company. In addition, future customer bankruptcies could result in additional claims on collected balances for professional services near the bankruptcy filing date. When management has determined that it is probable that an asset has been impaired or a liability had been incurred related to an action, claim or assessment and the amount of loss can be reasonably estimated, the Company will record a liability for such estimated loss in the appropriate accounting period. The resolution of any of such actions, claims, or the matters described above may have an impact on the financial results for the period in which they occur. During the first quarter of fiscal 2015, the Company renewed an agreement under which it had a commitment to purchase a minimum of $ 412,000 275,000 |
Common Stock Repurchase Program
Common Stock Repurchase Program | 6 Months Ended |
Jul. 04, 2015 | |
Equity [Abstract] | |
Common Stock Repurchase [Text Block] | 9. Common Stock Repurchase Program On June 3, 2015, the Company’s Board of Directors authorized an amendment to the Company’s previously announced stock repurchase program to extend the program through June 30, 2016. The program was initially authorized in February 2014 and authorized the Company to repurchase up to $2 million of Company common stock. Under the program, repurchases may be made by the Company from time to time in the open market or through privately negotiated transactions depending on market conditions, share price and other factors. The stock repurchase program may be modified or discontinued at any time by the Board of Directors. The Company expects to fund repurchases through cash on hand, future cash flow from operations and future borrowings. In order to facilitate repurchases, the Company entered into a Rule 10b5-1 plan, which permits stock repurchases when the Company might otherwise be precluded from doing so under insider trading laws or because of self-imposed trading blackout periods. As of July 4, 2015, no stock repurchases have been made under this plan. |
Exit and Disposal Activities
Exit and Disposal Activities | 6 Months Ended |
Jul. 04, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Exit and Disposal Activities [Text Block] | 10. Exit and Disposal Activities In June 2015, the Company took steps to discontinue use of its leased facilities in McLean, Virginia. The space is leased under an operating lease with a term expiring in July 2019. It is comprised of 4,823 Exit or Disposal Cost Obligations” 256,000 106,000 150,000 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jul. 04, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 11. Subsequent Event On July 22, 2015, we entered into a Share Purchase Agreement (the “Purchase Agreement”) and completed the acquisition of all of the outstanding shares of capital stock of Farncombe France SARL, an entity formed under the laws of France, and Farncombe Technology Limited, a company incorporated and registered in England and Wales (collectively, the “Farncombe Entities”). The Farncombe Entities operate primarily in the U.K. and Europe and are in the business of providing strategic consultancy, content security, testing and implementation services for broadcast and broadband internet digital television. The total purchase price, subject to adjustment in accordance with the terms of the Purchase Agreement, was £ 4,360,620 6.8 based on an exchange rate of £1.556= US$1.00 · Cash paid at Closing in the amount of 654,093 1.0 15 · £ 1,308,186 2.0 based on an exchange rate of £1.556= US$1.00 588,567 30 · Additional consideration in the amount of £ 654,093 is expected to be paid on or about September 5, 2015 (approximately US$ 1.0 15 · Earn-out consideration (the “Earn-Out”) which is potentially payable in cash and/or shares of Company Common Stock as elected by each Seller in the Purchase Agreement and represents 40 The aggregate amount potentially payable pursuant to the Earn-Out consists of cash in an amount up to £ 719,483 1.2 461,055 1,024,765 1.6 Amounts, if any, payable under the Earn-Out are based upon the amounts of specified revenues attributable to the Farncombe Entities after June 1, 2015 through July 22, 2017 The Purchase Agreement contains non-compete and non-solicitation agreements of the individual Sellers. The Purchase Agreement also contains customary warranties, covenants and indemnification provisions. Acquisition-related costs recognized during each of the thirteen and twenty-six weeks ended July 4, 2015 were $ 292,000 We will account for the acquisition of Farncombe using the acquisition method as required in FASB ASC 805, “Business Combinations.” |
Basis of Reporting (Policies)
Basis of Reporting (Policies) | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition - Construction-Type and Production-Type Contracts The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, the Company revises its cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known. The Company develops, installs and supports customer software in addition to the provision of traditional consulting services. The Company recognizes revenue in connection with its software sales agreements under FASB ASC 985-605, utilizing the percentage of completion-like method described in FASB ASC 605- 35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of the software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes. No such revenues were recognized during the twenty-six weeks ended July 4, 2015 or June 28, 2014. In addition to the professional services related to the customization and implementation of its software, the Company may also provide post-contract support ("PCS") services, including technical support and maintenance services as well as other professional services not essential to the functionality of the software. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, the Company separates the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements |
Fair Value Measurement, Policy [Policy Text Block] | “Fair Value Measurements” Level 1: Level 2: Level 3: In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. |
Managed Services Implementation Revenues and Costs [Policy Text Block] | Managed Services Implementation Revenues and Costs 19,000 79,000 116,000 229,000 |
Research, Development, and Computer Software, Policy [Policy Text Block] | 201,000 360,000 409,000 564,000 189,000 366,000 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 4.7 4.6 146,000 22,000 |
Earnings Per Share, Policy [Policy Text Block] | For the Thirteen Weeks Ended June 28, 2014 Income Shares Per-Share (Numerator) (Denominator) Amount Basic EPS Net income available to common stockholders $ 87,000 7,899,000 $ 0.01 Effect of Dilutive Securities Warrants - 210,000 Stock Options - 5,000 Non-vested shares - 26,000 Diluted EPS Income available to common stockholders $ 87,000 8,140,000 $ 0.01 In accordance with the provisions of FASB ASC 260, " Earnings per Share, 67,376 138,004 142,846 |
Accounts Receivable [Policy Text Block] | Accounts Receivable - “Transfers and Servicing Sales of Financial Assets” 12.0 6.4 |
Inventory, Policy [Policy Text Block] | Inventory Inventory 2.7 3.0 0.3 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11 which requires entities to measure most inventory at the lower of cost and net realizable value thereby simplifying the existing guidance which required entities to measure inventory at the lower of cost or market. Under the current guidance, market is defined as replacement cost, net realizable value or net realizable value less a normal profit margin. The newly issued guidance eliminates the requirement to determine replacement cost and defines net realizable value as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This new guidance is effective for the Company beginning in fiscal 2017. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, which provides guidance on a customer’s accounting for cloud computing costs. Under the ASU, a customer must determine whether a cloud computing arrangement contains a software license. If so, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under current U.S. GAAP. If the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The ASU does not prescribe how to account for cloud computing arrangements deemed to be service contracts. An arrangement would contain a software license element if both of the following criteria are met: the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty; and it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. The ASU is effective for annual periods (and interim periods therein) beginning after December 15, 2015. Early adoption is permitted. Entities may adopt the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“FASB ASU 2014-09”). This standard update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. Upon adoption of this standard update, we expect that the allocation and timing of revenue recognition will be impacted. In July 2015 the FASB voted to defer the effective date of this new standard by one year and to permit early adoption beginning as of the original effective date of the new standard. The provisions of FASB ASU 2014-09 will now be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and are to be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“FASB ASU 2014-12”). The standard update resolves the diverse accounting treatment for these share-based payments by requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The provisions of FASB ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. |
Basis of Reporting (Tables)
Basis of Reporting (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table illustrates the computation of basic and diluted EPS for the thirteen weeks ended June 28, 2014. For the Thirteen Weeks Ended June 28, 2014 Income Shares Per-Share (Numerator) (Denominator) Amount Basic EPS Net income available to common stockholders $ 87,000 7,899,000 $ 0.01 Effect of Dilutive Securities Warrants - 210,000 Stock Options - 5,000 Non-vested shares - 26,000 Diluted EPS Income available to common stockholders $ 87,000 8,140,000 $ 0.01 |
Strategic Alliance and Invest19
Strategic Alliance and Investment by Elutions, Inc. (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Investments, All Other Investments [Abstract] | |
Schedule Of Fair Value Assumptions And Methodology [Table Text Block] | The following table sets forth the Level 3 inputs to the binomial lattice model that were used to determine the fair value of the Note and the Holder Redemption Option: July 4, 2015 January 3, 2015 Common stock price $ 3.48 $ 4.25 Dividend yield 0.0 % 0.0 % Expected term 1.25 years 1.75 years Risk-free interest rate 1.2 % 1.5 % Estimated stock volatility 45.0 % 45.0 % |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | As of July 4, 2015, liabilities recorded at fair value on a recurring basis consist of the following (in thousands): Quoted prices in Significant other Significant other Total Level 1 Level 2 Level 3 Holder Redemption Option $ 442 - - $ 442 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table summarizes changes to the fair value of the Tracking Warrant and Holder Redemption Option, which are Level 3 liabilities (in thousands): Holder Fair value at January 3, 2015 $ 337 Total unrealized losses 105 Fair value at July 4, 2015 $ 442 |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the twenty-six weeks ended July 4, 2015 are as follows (in thousands): North America EMEA Total Balance as of January 3, 2015 $ 3,947 $ 4,068 $ 8,015 Changes in foreign currency exchange rates - 3 3 Balance as of July 4, 2015 $ 3,947 $ 4,071 $ 8,018 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Valuation Techniques For Market Condition Stock Option Award By Vesting Tranche [Table Text Block] | The fair value and derived service periods calculated for this market condition stock option award by vesting tranche were as follows: Grant Date Fair Value Per Share Derived Service Period $4.00 market condition tranche $ 1.95 151 $5.00 market condition tranche $ 1.95 262 $6.00 market condition tranche $ 1.99 362 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of the components of the Put Option was calculated using the Black-Scholes model using the following assumptions. Issuance Date Common stock price $ 3.30 Dividend yield 0.0 % Exercise price of put option $ 4.50 Expected term 0.78 years Risk-free interest rate 0.20 % Estimated stock volatility 55 % |
Service-Based Stock Option Awards [Member] | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares Weighted Outstanding at January 3, 2015 307,753 $ 8.54 Forfeited/cancelled (22,000) $ 11.23 Outstanding at July 4, 2015 285,753 $ 8.33 Options vested and expected to vest at July 4, 2015 276,253 $ 8.48 Options exercisable at July 4, 2015 228,252 $ 9.45 |
Market Condition Stock Option Awards [Member] | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Market Condition Stock Option Awards - A summary of the market condition stock option activity under the Equity Plan, as of July 4, 2015 and changes during the twenty-six weeks then ended is presented below: Shares Weighted Outstanding at January 3, 2015 - $ - Granted 200,000 $ 3.34 Outstanding at July 4, 2015 200,000 $ 3.34 Options vested and expected to vest at July 4, 2015 200,000 $ 3.34 Options exercisable at July 4, 2015 - $ - |
Service Based Non vested Share Awards [Member] | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | Weighted Grant Date Shares Fair Value per Outstanding at January 3, 2015 81,000 $ 3.93 Vested (81,000) $ 3.93 Outstanding at July 4, 2015 - $ - |
Performance Based Non vested Share Awards [Member] | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | Performance-Based Non-vested Share Awards - A summary of the status of performance-based non-vested share awards issued under the Equity Plan, as of July 4, 2015 and changes during the twenty-six weeks then ended is presented below: Weighted Grant Date Shares Fair Value per Outstanding at January 3, 2015 652,999 $ 3.19 Vested (63,095) $ 3.26 Forfeited (225,549) $ 3.14 Outstanding at July 4, 2015 364,355 $ 3.21 |
Supplemental Stock Plan 2000 [Member] | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the option activity under the Company's 2000 Supplemental Stock Plan (the "Supplemental Stock Plan") as of July 4, 2015 and changes during the twenty-six weeks then ended is presented below: Shares Weighted Outstanding at January 3, 2015 82,600 $ 11.33 Forfeited/cancelled (18,300) $ 11.38 Outstanding at July 4, 2015 64,300 $ 11.32 Options vested and exercisable at July 4, 2015 64,300 $ 11.32 |
Supplemental Balance Sheet In22
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued payroll, bonuses and related expenses, Other accrued liabilities and Other noncurrent liabilities consist of the following (amounts in thousands): July 4, 2015 January 3, 2015 Accrued payroll, bonuses and related expenses Accrued payroll $ 389 $ 385 Accrued bonuses 2,020 2,482 Accrued payroll taxes 458 437 Accrued vacation 728 360 Accrued severance 207 100 Other 150 135 $ 3,952 $ 3,899 Other accrued liabilities Sales and value-added taxes payable $ 197 $ 382 Lease liability (see Note 10) 106 Put option liability 507 Other 621 604 $ 1,431 $ 986 Other noncurrent liabilities Deferred lease incentive accrual $ 338 $ 55 Rent escalation accrual 286 96 Lease liability (see Note 10) 150 - Other 137 - $ 911 $ 151 |
Business Segments and Major C23
Business Segments and Major Customers (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For additional discussion of the arbitration costs, see Note 11, Commitments and Contingencies, in the Notes to the Consolidated Financial Statements included in Item 8, Consolidated Financial Statements, of the 2014 Form 10-K . North America EMEA Strategic Not Total As of and for the twenty-six weeks ended July 4, 2015: Revenues $ 15,390 $ 19,343 $ 206 $ - $ 34,939 Income (loss) from operations 3,126 2,354 (859) (7,857) (3,236) Total assets $ 5,639 $ 6,296 $ 2,700 $ 24,555 $ 39,190 As of and for the thirteen weeks ended July 4, 2015: Revenues $ 7,472 $ 9,318 $ 99 $ - $ 16,889 Income (loss) from operations 1,337 282 (507) $ (3,720) (2,608) As of the fiscal year ended January 3, 2015 Total assets $ 7,398 $ 6,099 $ 3,030 $ 25,749 $ 42,276 As of and for the twenty-six weeks ended June 28, 2014: Revenues $ 16,234 $ 17,423 $ - $ - $ 33,657 Income (loss) from operations 3,975 3,321 (522) (8,215) (1,441) Total assets $ 5,853 $ 10,063 $ 757 $ 31,275 $ 47,948 As of and for the thirteen weeks ended June 28, 2014: Revenues $ 8,260 $ 9,160 $ - $ - $ 17,420 Income (loss) from operations 2,196 1,744 (377) (5,012) (1,449) |
Schedule of Revenue from External Customers by Geographical Areas [Table Text Block] | In accordance with the provisions of FASB ASC 280-10, revenues earned in the United States and internationally based on the location where the services are performed are shown in the following table (amounts in thousands): For the Thirteen Weeks For the Twenty-six Weeks July 4, June 28, July 4, June 28, United States $ 7,676 $ 8,198 $ 15,596 $ 16,024 International: United Kingdom 8,729 8,540 18,442 16,295 Other 484 682 901 1,338 Total $ 16,889 $ 17,420 $ 34,939 $ 33,657 |
Long-lived Assets by Geographic Areas [Table Text Block] | In accordance with the provisions of FASB ASC 280-10, long-lived assets, excluding intangible assets, by geographic area are shown in the following table (amounts in thousands): Long-Lived Assets July 4, 2015 January 3, 2015 United States $ 2,791 $ 1,673 United Kingdom 224 230 Total $ 3,015 $ 1,903 |
Schedule of Revenue and Accounts Receivable by Major Customers by Reporting Segments [Table Text Block] | Major customers in terms of significance to Cartesian’s revenues (i.e. in excess of 10% of revenues) and accounts receivable were as follows (amounts in thousands): Revenues For the twenty-six weeks For the twenty-six weeks ended July 4, 2015 ended June 28, 2014 North EMEA North EMEA Customer A $ 9,508 $ 11,746 Customer B $ 7,992 $ 1,257 Customer C $ 6,828 $ 5,832 Revenues For the thirteen weeks For the thirteen weeks ended July 4, 2015 ended June 28, 2014 North EMEA North EMEA Customer A $ 4,758 $ 6,042 Customer B $ 3,850 $ 975 Customer C $ 3,454 $ 3,002 Accounts Receivable As of As of Customer A $ 1,754 $ 6,873 Customer B $ 3,434 $ 1,093 Customer C $ 2,410 $ 2,218 |
Basis of Reporting (Details)
Basis of Reporting (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Basic EPS | ||||
Net income available to common stockholders | $ 87,000 | |||
Weighted Average Number of Shares Outstanding, Basic, Total | 8,181,000 | 7,899,000 | 8,135,000 | 7,606,000 |
Earnings Per Share, Basic | $ (0.34) | $ 0.01 | $ (0.47) | $ (0.20) |
Effect of Dilutive Securities | ||||
Amount Of Dilutive Securities Warrants | $ 0 | |||
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | 0 | |||
Amount Of Dilutive Securities Non-vested Shares | 0 | |||
Diluted EPS | ||||
Income available to common stockholders | $ 87,000 | |||
Weighted Average Number of Shares Outstanding, Diluted | 8,181,000 | 8,140,000 | 8,135,000 | 7,606,000 |
Earnings Per Share, Diluted | $ (0.34) | $ 0.01 | $ (0.47) | $ (0.20) |
Warrants [Member] | ||||
Effect of Dilutive Securities | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 210,000 | |||
Stock Options [Member] | ||||
Effect of Dilutive Securities | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 5,000 | |||
Non Vested Shares [Member] | ||||
Effect of Dilutive Securities | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 26,000 |
Basis of Reporting (Details Tex
Basis of Reporting (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Accounting Policies [Line Items] | |||||
Implementation Costs | $ 19,000 | $ 79,000 | $ 116,000 | $ 229,000 | |
Research and Development Expense, Software (Excluding Acquired in Process Cost) | 201,000 | $ 360,000 | 409,000 | $ 564,000 | |
Foreign Currency Transaction Gain (Loss), before Tax | 146,000 | 22,000 | |||
Inventory, Net | 2,700,000 | 2,700,000 | $ 3,000,000 | ||
Trade Receivables, Third Party | 12,000,000 | 12,000,000 | 6,400,000 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 4,700,000 | 4,700,000 | $ 4,600,000 | ||
Inventory, Finished Goods, Gross | 3,000,000 | 3,000,000 | |||
Inventory Adjustments, Total | 300,000 | 300,000 | |||
Capitalized Software Development Costs For Internal Use | $ 189,000 | $ 366,000 | |||
Stock Compensation Plan [Member] | |||||
Accounting Policies [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 67,376 | 138,004 | 142,846 |
Strategic Alliance and Invest26
Strategic Alliance and Investment by Elutions, Inc. (Details) - Issuance Date [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jul. 04, 2015 | Jan. 03, 2015 | |
Fair Value Assumptions And Methodology [Line Items] | ||
Common stock price | $ 3.48 | $ 4.25 |
Dividend yield | 0.00% | 0.00% |
Expected term | 1 year 3 months | 1 year 9 months |
Risk-free interest rate | 1.20% | 1.50% |
Estimated stock volatility | 45.00% | 45.00% |
Strategic Alliance and Invest27
Strategic Alliance and Investment by Elutions, Inc. (Details 1) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Holder Redemption Option | $ 442 | $ 337 |
Holder Redemption Option [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Holder Redemption Option | 442 | |
Holder Redemption Option [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Holder Redemption Option | 0 | |
Holder Redemption Option [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Holder Redemption Option | 0 | |
Holder Redemption Option [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Holder Redemption Option | $ 442 |
Strategic Alliance and Invest28
Strategic Alliance and Investment by Elutions, Inc. (Details 2) - Holder Redemption Option [Member] $ in Thousands | 6 Months Ended |
Jul. 04, 2015USD ($) | |
Fair Value Instrument [Line Items] | |
Fair value at January 3, 2015 | $ 337 |
Total unrealized losses | 105 |
Fair value at July 4, 2015 | $ 442 |
Strategic Alliance and Invest29
Strategic Alliance and Investment by Elutions, Inc. (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 04, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Increase (Decrease) in Derivative Liabilities | $ (20,000) | $ 124,000 | $ 105,000 | $ 108,000 | |||
Costs Related To Transaction | 120,000 | 512,000 | |||||
Transaction Costs Allocated To Liabilities | 82,000 | 345,000 | |||||
Transaction Costs Allocated To Equities | $ 38,000 | 167,000 | |||||
Amortization of Debt Discount (Premium) | $ 1,265,000 | 0 | $ 1,265,000 | ||||
Notes Payable, Current | 3,269,000 | 3,269,000 | $ 3,269,000 | ||||
Non Convertible Promissory Note [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.825% | ||||||
Debt Instrument Debt Default Interest Rate Percentage | 9.825% | ||||||
Debt Instrument, Maturity Date | Mar. 18, 2019 | ||||||
Notes Payable, Current | 3,269,000 | 3,269,000 | $ 3,269,000 | ||||
Notes Payable, Fair Value Disclosure | $ 3,107,000 | $ 3,107,000 | $ 3,089,000 | ||||
Incentive Warrant [Member] | |||||||
Warrants Issued to Purchase Common Stock | 3,400,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 5,508 | 30,293 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Vested Shares Recognized Expenses | $ 9,000 | $ 47,000 | |||||
Elutions, Inc [Member] | |||||||
Debt Instrument, Face Amount | $ 3,268,664 | ||||||
Elutions, Inc [Member] | Inventories [Member] | |||||||
Payment To Acquire Inventory | $ 3,000,000 | ||||||
Purchase Obligation, Total | $ 3,000,000 | ||||||
Elutions, Inc [Member] | Non Convertible Promissory Note [Member] | Strategic Alliance and Investment [Member] | |||||||
Debt Instrument, Face Amount | $ 3,268,664 | ||||||
Price Per Share Of Stock On Tracking Warrant | $ 5.50 | ||||||
Elutions, Inc [Member] | Common Stock [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 609,756 | ||||||
Shares Issued, Price Per Share | $ 3.28 | ||||||
Stock Issued During Period, Value, New Issues | $ 2,000,000 | ||||||
Elutions, Inc [Member] | Tracking Warrant [Member] | |||||||
Warrants Issued During Period Exercise Price | $ 3.28 | ||||||
Price Per Share Of Stock On Tracking Warrant | $ 5.50 | ||||||
Warrants Issued to Purchase Common Stock | 996,544 | ||||||
Elutions, Inc [Member] | Tracking Warrant [Member] | Strategic Alliance and Investment [Member] | |||||||
Warrants Issued During Period Exercise Price | $ 3.28 | ||||||
Price Per Share Of Stock On Tracking Warrant | $ 5.50 | ||||||
Warrants Issued During Period Expiration Date | Mar. 18, 2020 | ||||||
Warrants Issued to Purchase Common Stock | 996,544 | ||||||
Elutions, Inc [Member] | Incentive Warrant [Member] | |||||||
Warrants Issued During Period Exercise Price Increases Per Year | $ 0.25 | ||||||
Warrants Issued During Period Expiration Date | Mar. 18, 2020 | ||||||
Warrants Issued to Purchase Common Stock | 3,400,000 | ||||||
Elutions, Inc [Member] | Incentive Warrant [Member] | Minimum [Member] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.85 | ||||||
Elutions, Inc [Member] | Incentive Warrant [Member] | Maximum [Member] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.85 |
Goodwill and Long-Lived Asset30
Goodwill and Long-Lived Assets (Details) $ in Thousands | 6 Months Ended |
Jul. 04, 2015USD ($) | |
Goodwill [Line Items] | |
Balance as of January 3, 2015 | $ 8,015 |
Changes in foreign currency exchange rates | 3 |
Balance as of July 4, 2015 | 8,018 |
North America [Member] | |
Goodwill [Line Items] | |
Balance as of January 3, 2015 | 3,947 |
Changes in foreign currency exchange rates | 0 |
Balance as of July 4, 2015 | 3,947 |
EMEA [Member] | |
Goodwill [Line Items] | |
Balance as of January 3, 2015 | 4,068 |
Changes in foreign currency exchange rates | 3 |
Balance as of July 4, 2015 | $ 4,071 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - Jul. 04, 2015 - $ / shares | Total |
Equity Incentive Plan 1998 [Member] | Market Condition Stock Option Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding (in shares) | 0 |
Shares, Granted (in shares) | 200,000 |
Shares, Outstanding (in shares) | 200,000 |
Shares, Options vested and expected to vest (in shares) | 200,000 |
Shares, Options exercisable (in shares) | 0 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 0 |
Weighted Average Exercise Price, Granted (in dollars per share) | 3.34 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | 3.34 |
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share) | 3.34 |
Weighted Average Exercise Price, Options exercisable (in dollars per share) | $ 0 |
Equity Incentive Plan 1998 [Member] | Service-Based Stock Option Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding (in shares) | 307,753 |
Shares, Forfeited/cancelled (in shares) | (22,000) |
Shares, Outstanding (in shares) | 285,753 |
Shares, Options vested and expected to vest (in shares) | 276,253 |
Shares, Options exercisable (in shares) | 228,252 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 8.54 |
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share) | 11.23 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | 8.33 |
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share) | 8.48 |
Weighted Average Exercise Price, Options exercisable (in dollars per share) | $ 9.45 |
Supplemental Stock Plan 2000 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding (in shares) | 82,600 |
Shares, Forfeited/cancelled (in shares) | (18,300) |
Shares, Outstanding (in shares) | 64,300 |
Shares, Options vested and expected to vest (in shares) | 64,300 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 11.33 |
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share) | 11.38 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | 11.32 |
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share) | $ 11.32 |
Share-Based Compensation (Det32
Share-Based Compensation (Details 1) - Jul. 04, 2015 - $ / shares | Total |
Share-based Compensation Award, Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ 1.95 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 151 days |
Share-based Compensation Award, Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ 1.95 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 262 days |
Share-based Compensation Award, Tranche Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ 1.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 362 days |
Share-Based Compensation (Det33
Share-Based Compensation (Details 2) - Equity Incentive Plan 1998 [Member] - $ / shares | 6 Months Ended | |
Jul. 04, 2015 | Jan. 03, 2015 | |
Service Based Non vested Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding (in shares) | 81,000 | |
Shares, Vested (in shares) | (81,000) | |
Shares, Outstanding (in shares) | 0 | |
Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ 0 | $ 3.93 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ 3.93 | |
Performance Based Non vested Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding (in shares) | 652,999 | |
Shares, Vested (in shares) | (63,095) | |
Shares, Forfeited (in shares) | (225,549) | |
Shares, Outstanding (in shares) | 364,355 | |
Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ 3.21 | $ 3.19 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 3.26 | |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ 3.14 |
Share-Based Compensation (Det34
Share-Based Compensation (Details 3) - Jul. 04, 2015 - Put Option [Member] - $ / shares | Total |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Common stock price | $ 3.30 |
Chief Executive Officer [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Common stock price | $ 3.30 |
Dividend yield | 0.00% |
Exercise price of put option | $ 4.50 |
Expected term | 9 months 11 days |
Risk-free interest rate | 0.20% |
Estimated stock volatility | 55.00% |
Share-Based Compensation (Det35
Share-Based Compensation (Details Textual) - USD ($) | Jun. 03, 2015 | Mar. 10, 2014 | Apr. 08, 2013 | Jun. 16, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ 145,000 | $ 272,000 | $ 446,000 | $ 446,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 800,000 | |||||||||
Earnings Before Income Tax And Dividends | $ 14,000,000 | |||||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 5,000 | 20,000 | ||||||||
Share-based Compensation, Total | 446,000 | 446,000 | ||||||||
Other Accrued Liabilities, Current | 1,431,000 | 1,431,000 | $ 986,000 | |||||||
Share-based Compensation Award, Tranche One [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Option Vesting upon Price Target | 75,000 | |||||||||
Share Price Target | $ 4 | |||||||||
Share-based Compensation Award, Tranche Two [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Option Vesting upon Price Target | 75,000 | |||||||||
Share Price Target | $ 5 | |||||||||
Share-based Compensation Award, Tranche Three [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Option Vesting upon Price Target | 50,000 | |||||||||
Share Price Target | $ 6 | |||||||||
Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | 13,000 | 24,000 | 38,000 | 28,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 78,000 | |||||||||
Put Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation, Total | 168,000 | $ 168,000 | ||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 4.50 | |||||||||
Other Accrued Liabilities, Current | $ 507,000 | $ 507,000 | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Instruments Classified in Shareholders' Equity, Period Increase (Decrease), Total | $ 372,000 | |||||||||
Share Price | $ 3.30 | $ 3.30 | ||||||||
Put Option Fair Value Per Share | 1.49 | $ 1.49 | ||||||||
Call Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Instruments Classified in Shareholders' Equity, Period Increase (Decrease), Total | $ 33,000 | |||||||||
Share Price | 0.29 | $ 0.29 | ||||||||
Chief Executive Officer [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Put Option Issued | 112,692 | |||||||||
Put Option Issued, Strike Price | $ 4.50 | |||||||||
Chief Executive Officer [Member] | Put Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share Price | $ 3.30 | $ 3.30 | ||||||||
Service Based Non vested Share Awards [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ 0 | 80,000 | $ 54,000 | 97,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 54,000 | |||||||||
Performance Based Non vested Share Awards [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ 3.93 | $ 3.14 | $ 3.14 | |||||||
Allocated Share-based Compensation Expense | $ (63,000) | $ 159,000 | $ 153,000 | $ 309,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 15 months | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 600,000 | $ 600,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 40,000 | |||||||||
Earnings Before Income Tax And Dividends | $ 10,500,000 | |||||||||
Market Condition Stock Option Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | 22,000 | 22,000 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 369,000 | $ 369,000 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 17 months | |||||||||
Equity Incentive Plan 1998 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 39,000 | $ 39,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Increases Decreases in Period | 500,000 | |||||||||
Cumulative Number Of Shares Of Common Stock Available For Issuance Before Amendment | 2,305,659 | 2,305,659 | ||||||||
Cumulative Number Of Shares Of Common Stock Available For Issuance After Amendment | 2,805,659 | 2,805,659 | ||||||||
Equity Incentive Plan 1998 [Member] | Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 70,000 | |||||||||
Equity Incentive Plan 1998 [Member] | Market Condition Stock Option Award [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 3.34 |
Supplemental Balance Sheet In36
Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Accrued payroll, bonuses and related expenses | ||
Accrued payroll | $ 389 | $ 385 |
Accrued bonuses | 2,020 | 2,482 |
Accrued payroll taxes | 458 | 437 |
Accrued vacation | 728 | 360 |
Accrued severance | 207 | 100 |
Other | 150 | 135 |
Employee-related Liabilities, Current | 3,952 | 3,899 |
Other accrued liabilities | ||
Sales and value-added taxes payable | 197 | 382 |
Lease liability (see Note 10) | 106 | 0 |
Put option liability | 507 | 0 |
Other | 621 | 604 |
Other Accrued Liabilities, Current | 1,431 | 986 |
Other noncurrent liabilities | ||
Deferred lease incentive accrual | 338 | 55 |
Rent escalation accrual | 286 | 96 |
Lease liability (see Note 10) | 150 | 0 |
Other | 137 | 0 |
Other Liabilities, Noncurrent, Total | $ 911 | $ 151 |
Business Segments and Major C37
Business Segments and Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 16,889 | $ 17,420 | $ 34,939 | $ 33,657 | |
Income (loss) from operations | (2,608) | (1,449) | (3,236) | (1,441) | |
Total assets | 39,190 | 47,948 | 39,190 | 47,948 | $ 42,276 |
North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,472 | 8,260 | 15,390 | 16,234 | |
Income (loss) from operations | 1,337 | 2,196 | 3,126 | 3,975 | |
Total assets | 5,639 | 5,853 | 5,639 | 5,853 | 7,398 |
EMEA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,318 | 9,160 | 19,343 | 17,423 | |
Income (loss) from operations | 282 | 1,744 | 2,354 | 3,321 | |
Total assets | 6,296 | 10,063 | 6,296 | 10,063 | 6,099 |
Strategic Alliances [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 99 | 0 | 206 | 0 | |
Income (loss) from operations | (507) | (377) | (859) | (522) | |
Total assets | 2,700 | 757 | 2,700 | 757 | 3,030 |
Unallocated Amount To Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Income (loss) from operations | (3,720) | (5,012) | (7,857) | (8,215) | |
Total assets | $ 24,555 | $ 31,275 | $ 24,555 | $ 31,275 | $ 25,749 |
Business Segments and Major C38
Business Segments and Major Customers (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 16,889 | $ 17,420 | $ 34,939 | $ 33,657 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,676 | 8,198 | 15,596 | 16,024 |
United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,729 | 8,540 | 18,442 | 16,295 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 484 | $ 682 | $ 901 | $ 1,338 |
Business Segments and Major C39
Business Segments and Major Customers (Details 2) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | $ 3,015 | $ 1,903 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | 2,791 | 1,673 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | $ 224 | $ 230 |
Business Segments and Major C40
Business Segments and Major Customers (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 16,889 | $ 17,420 | $ 34,939 | $ 33,657 | |
Accounts Receivable, Net, Current, Total | 11,935 | 11,935 | $ 13,527 | ||
Customer A [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Accounts Receivable, Net, Current, Total | 1,754 | 6,873 | 1,754 | 6,873 | |
Customer B [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Accounts Receivable, Net, Current, Total | 3,434 | 1,093 | 3,434 | 1,093 | |
Customer C [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Accounts Receivable, Net, Current, Total | 2,410 | 2,218 | 2,410 | 2,218 | |
North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,472 | 8,260 | 15,390 | 16,234 | |
North America [Member] | Customer C [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,454 | 3,002 | 6,828 | 5,832 | |
EMEA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,318 | 9,160 | 19,343 | 17,423 | |
EMEA [Member] | Customer A [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,758 | 6,042 | 9,508 | 11,746 | |
EMEA [Member] | Customer B [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 3,850 | $ 975 | $ 7,992 | $ 1,257 |
Business Segments and Major C41
Business Segments and Major Customers (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Entity Wide Information Percentage Revenue Contribution Top Ten Customers By Revenue Contribution | 90.90% | 83.00% | 90.70% | 83.90% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Deferred Tax Assets And Liabilities [Line Items] | |||||
Income Tax Expense (Benefit) | $ 120,000 | $ (1,553,000) | $ 290,000 | $ (1,524,000) | |
Deferred Tax Assets, Valuation Allowance | $ 33,800,000 | $ 33,800,000 | $ 32,100,000 | ||
Income Tax Benefit Recognized | $ 1,849,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - Software [Member] - USD ($) | 3 Months Ended | |
Apr. 04, 2015 | Jul. 04, 2015 | |
Purchase Commitment [Line Items] | ||
Long-Term Purchase Commitment, Amount | $ 412,000 | |
Long-term Purchase Commitment, Amount Outstanding | $ 275,000 |
Common Stock Repurchase Progr44
Common Stock Repurchase Program (Details Textual) $ in Millions | Feb. 27, 2014USD ($) |
Equity, Class of Treasury Stock [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 2 |
Exit and Disposal Activities (D
Exit and Disposal Activities (Details Textual) - Jul. 04, 2015 - Property Subject to Operating Lease [Member] | USD ($)ft² |
Area of Land | ft² | 4,823 |
Discontinued Operation, Liabilities | $ 256,000 |
Discontinued Operation, Other accrued liabilities | 106,000 |
Discontinued Operation, Other noncurrent liabilities | $ 150,000 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Subsequent Event [Member] - Farncombe Entities [Member] | Sep. 05, 2015USD ($) | Sep. 05, 2015EUR (€) | Jul. 22, 2015USD ($)shares | Jul. 22, 2015EUR (€)shares | Jul. 21, 2015 | Jul. 22, 2015EUR (€)shares | Jul. 04, 2015USD ($) |
Subsequent Event [Line Items] | |||||||
Business Combination, Consideration Transferred, Total | $ 6,800,000 | € 4,360,620 | |||||
Payments to Acquire Businesses, Gross | $ 1,000,000 | € 654,093 | $ 1,000,000 | 654,093 | |||
Foreign Currency Translation Adjustment, Description | based on an exchange rate of 1.556= US$1.00 | ||||||
Percentage of Business Acquisition Purchase Price | 30.00% | 30.00% | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 2,000,000 | € 1,308,186 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 588,567 | 588,567 | |||||
Selling, General and Administrative Expenses [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business Acquisition, Transaction Costs | $ | $ 292,000 | ||||||
Cash [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of Business Acquisition Purchase Price | 15.00% | 15.00% | 15.00% | 15.00% | |||
Earn Out Consideration [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business Combination, Contingent Consideration Arrangements, Basis for Amount | Amounts, if any, payable under the Earn-Out are based upon the amounts of specified revenues attributable to the Farncombe Entities after June 1, 2015 through July 22, 2017 | Amounts, if any, payable under the Earn-Out are based upon the amounts of specified revenues attributable to the Farncombe Entities after June 1, 2015 through July 22, 2017 | |||||
Percentage of Business Acquisition Purchase Price | 40.00% | 40.00% | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,600,000 | € 1,024,765 | |||||
Business Acquisition Potential Cash Payment | $ 1,200,000 | € 719,483 | |||||
Business Acquisition Shares issuable | 461,055 | 461,055 |