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Stock-Based Compensation
 6 Months Ended
Jul. 04, 2014
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 10 — Stock-Based Compensation
 
The cost that has been charged against income for stock-based compensation is set forth below (in thousands):
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
July 4,
2014
 
June 28,
2013
 
July 4,
2014
 
June 28,
2013
 
Employee stock options
 
$
675
 
$
666
 
$
1,472
 
$
1,492
 
Restricted stock
 
 
232
 
 
252
 
 
525
 
 
435
 
Restricted stock units
 
 
764
 
 
—
 
 
1,152
 
 
—
 
Nonemployee stock options
 
 
12
 
 
66
 
 
34
 
 
92
 
Total
 
$
1,683
 
$
984
 
$
3,183
 
$
2,019
 
 
The Company recorded stock-based compensation expense in the following categories on the accompanying consolidated statements of operations (in thousands):
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
July 4,
2014
 
June 28,
2013
 
July 4,
2014
 
June 28,
2013
 
Cost of sales
 
$
39
 
$
25
 
$
77
 
$
50
 
General and administrative
 
 
1,033
 
 
646
 
 
1,970
 
 
1,357
 
Marketing and selling
 
 
306
 
 
212
 
 
580
 
 
382
 
Research and development
 
 
305
 
 
101
 
 
556
 
 
230
 
Total
 
$
1,683
 
$
984
 
$
3,183
 
$
2,019
 
 
Stock Option Plans
 
The Amended and Restated 2003 Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted stock options, restricted stock, unrestricted stock grants, and restricted stock units (RSUs). Options under the plan are granted at fair market value on the date of grant, become exercisable over a three year period, or as determined by the Board of Directors, and expire over periods not exceeding 10 years from the date of grant. Certain options and stock awards provide for accelerated vesting if there is a change in control or certain-pre-established financial metrics are met. Pursuant to the Plan, options for 3,276,770 shares were outstanding at July 4, 2014 with exercise prices ranging between $0.95 and $17.62 per share. Restricted stock grants under the Plan generally vest over a period of between one to three years. There were 229,500 shares of restricted stock and 299,000 RSUs outstanding at July 4, 2014. As of July 4, 2014, there were 1,998,046 shares authorized and available for grants under the Plan.
 
Assumptions
 
The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted is derived from the historical exercises and post-vesting cancellations and represents the period of time that options granted are expected to be outstanding. The Company has calculated a 7% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.
 
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
July 4,
2014
 
 
June 28,
2013
 
 
July 4,
2014
 
 
June 28,
2013
 
Expected dividend yield
 
0
%
 
0
%
 
0
%
 
0
%
Expected volatility
 
56
%
 
72
%
 
55
%
 
73
%
Risk-free interest rate
 
1.30
%
 
0.70
%
 
1.29
%
 
0.62
%
Expected term (in years)
 
4.12
 
 
4.12
 
 
4.12
 
 
4.12
 
 
A summary of option activity under the Plan as of July 4, 2014 is presented below:
 
 
 
Options
Shares
(000’s)
 
 
 
 
 
Outstanding at January 3, 2014
 
3,299
 
Granted
 
576
 
Exercised
 
(564)
 
Forfeited or expired
 
(34)
 
Outstanding at July 4, 2014
 
3,277
 
Exercisable at July 4, 2014
 
2,082
 
 
Warrants outstanding and exercisable as of July 4, 2014 and January 3, 2014 were 700,000.
 
A summary of restricted stock and restricted stock units activity under the Plan for the period ending July 4, 2014 is presented below:
 
 
 
Restricted
Shares
(000’s)
 
Restricted
Units
(000’s)
 
 
 
 
 
 
 
Outstanding at January 3, 2014
 
341
 
135
 
Granted
 
29
 
304
 
Exercised
 
(140)
 
(135)
 
Forfeited
 
—
 
(5)
 
Outstanding at July 4, 2014
 
230
 
299