Annual report pursuant to Section 13 and 15(d)

Restatements (Tables)

Restatements (Tables)

12 Months Ended

Oct. 02, 2016

Accounting Changes and Error Corrections [Abstract]

Shedule of corrections to the financial statement

The corrections to the financial statement accounts as a result of the misstatement errors are summarized in the table below.

	Thousands

	For the twelve months ending October 2, 2016
Adjustments	Warrant Liability			Additional Paid in Capital			Accumulated Deficit^(*)
Initial fair value of warrants issued in August 26, 2016 public offering	$	3,857		$	(3,857	)	$	-
Gain on change in fair value of warrants as of October 2, 2016 recognized as other income^(*)		(739	)		-			739
Fees on public offering associated with warrant liability recognized as operating expense^(*)		-			711			(711	)
Beneficial conversion feature recognized as dividend/premium on Series C preferred shares *^()**		-			442			(442	)
Total Adjustments to period ending October 2, 2016	$	3,118		$	(2,704	)	$	(414	)

* These adjustements are reflected in both the Consolidated Balance Sheet Accumulated Deficit account balances as well as the Consolidated Statement of Operations account balances

Schedule of restatement

Condensed Consolidated Balance Sheet
Thousands

	Period ended October 2, 2016
Restatement Account*	As Reported			Adjustments			As Restated

Liabilities

Warrant Liability	$	-		$	3,118		$	3,118

Total Liabilities		2,403			3,118			5,521

Stockholders' Equity
Additional Paid in Capital		29,583			(2,704	)		26,879
Accumulated Deficit		(19,233	)		(414	)		(19,647	)

Total Stockholders’ Equity		10,358			(3,118	)		7,240

Total Liabilities and Stockholders' Equity	$	12,761		$	-		$	12,761

* The table above reflects only the amounts for selective Balance Sheet accounts and their respective account class subtotals and grand totals which were affected by the error. Balance Sheet accounts not listed above were not affected by the errors and as such have not changed from the originally reported balances.

Condensed Consolidated Statement of Operations
Thousands

	Twelve months ending October 2, 2016
Restatement Accounts*	As Reported			Adjustments			As Restated

General and Administrative Expense	$	3,251		$	711		$	3,962

Operating Income (Loss)		(200	)		(711	)		(911	)

Gain on Change in Fair Value of Warrant Liability		-			739			739

Income (Loss) Before Taxes		(236	)		28			(208	)

Net Income (Loss) After Taxes		(236	)		28			(208	)

Preferred Stock Dividend/Premium		(761	)		(442	)		(1,203	)

Net loss applicable to common shareholders	$	(997	)	$	(414	)	$	(1,411	)

Basic and diluted loss per share ⁽¹⁾	$	(0.64	)	$	(0.27	)	$	(0.91	)

* The table above reflects only the amounts for selective Statement of Operations accounts and their respective account class subtotals and grand totals which were affected by the error. Statement of Operations accounts not listed above are not affected by the errors and as such have not changed from the originally reported balances.

(1) There is no impact to diluted earnings per share as the "As Reported" and "As Restated" earnings per share as are both in a net loss position and the resulting calculations are antidilutive.

Consolidated Statement of Cash Flows
Thousands

	Twelve months ending October 2, 2016
Restatement Accounts*	As Reported			Adjustments			As Restated

Net (loss) income	$	(236	)	$	28		$	(208	)

Gain on change in fair value of warrant liability		-			739			(739	)
Increase (decrease) in accounts payable and accrued expenses ⁽¹⁾		129			1			130

Total Adjustments		407			(738	)		(331	)
Net Cash provided by (used in) operating activities		171			(710	)		(539	)

Proceeds from sale of common stock		4,247			503			4,750
Deferred public offering cost		(252	)		207			(45	)

Net cash provided by financing activities	$	1,744		$	710		$	2,454

Supplemental cash flow information
Beneficial conversion feature on preferred stock	$	761		$	442		$	1,203
Fair value of warrants issued for underwriter expenses in public offering	$	-		$	156		$	156

* The table above reflects only the amounts for selective Statement of Cash Flows accounts and their respective account class subtotals and grand totals which were affected by the error. Statement Cash Flows accounts not listed above were not affected by the errors and as such have not changed from the originally reported balances.

(1) The increase in accounts payable and accrued expenses is a rounding adjustment to balance the financial statement accounts