For any nonempty $S$ we must have $0 \in S$. Now if we draw a directed graph of dependencies among the non-zero elements, it creates a balanced binary tree where every leaf has depth 3 . In the diagram, if $a$ is a parent of $b$ it means that if $b \in S$, then $a$ must also be in $S$. We wish to find the number of subsets of nodes such that every node in the set also has its parent in the set. We do this with recursion. Let $f(n)$ denote the number of such sets on a balanced binary tree of depth $n$. If the root vertex is not in the set, then the set must be empty. Otherwise, we can consider each subtree separately. This gives the recurrence $f(n)=f(n-1)^{2}+1$. We know $f(0)=2$, so we can calculate $f(1)=5, f(2)=26, f(3)=677$. We add 1 at the end for the empty set. Hence our answer is $f(3)+1=678$.