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Stock-Based Compensation
 3 Months Ended
Apr. 03, 2015
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
 
 
 
April 3,
   2015
 
April 4,
   2014
 
Employee stock options
 
$
725
 
$
859
 
Restricted stock
 
 
271
 
 
299
 
Restricted stock units
 
 
129
 
 
398
 
Nonemployee stock options
 
 
(7)
 
 
22
 
Total
 
$
1,116
 
$
1,578
 
 
The Company recorded stock-based compensation cost in the following categories on the accompanying condensed consolidated statements of operations (in thousands):
 
 
 
Three Months Ended
 
 
 
April 3,
   2015
 
April 4,
   2014
 
General and administrative
 
$
593
 
$
928
 
Marketing and selling
 
 
251
 
 
302
 
Research and development
 
 
150
 
 
270
 
Total stock compensation expense
 
$
994
 
$
1,500
 
Amounts capitalized as part of inventory
 
 
122
 
 
78
 
Total
 
$
1,116
 
$
1,578
 
 
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 only stock options, restricted stock, unrestricted share grants, restricted stock units, and performance contingent stock units. 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 option and share awards provide for accelerated vesting if there is a change in control (as defined in the Plan). Pursuant to the Plan, options for 3,619,790 shares were outstanding at April 3, 2015 with exercise prices ranging between $0.95 and $17.62 per share. Restricted stock grants under the Plan generally vest over a period between one to four years. There were 156,763 shares of restricted stock and 135,500 restricted stock units (RSUs) outstanding at April 3, 2015. As of April 3, 2015, there were 1,662,958 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 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 6.92% 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
 
 
 
April 3, 2015
 
April 4, 2014
 
Expected dividend yield
 
 
0
%
 
0
%
Expected volatility
 
 
57.46
%
 
55.25
%
Risk-free interest rate
 
 
1.70
%
 
1.28
%
Expected term (in years)
 
 
5.64
 
 
4.12
 
 
A summary of option activity under the Plan for the period ended April 3, 2015 is presented below:
 
 
 
Options
Shares
(000’s)
 
Outstanding at January 2, 2015
 
 
3,175
 
Granted
 
 
568
 
Exercised
 
 
(104)
 
Forfeited or expired
 
 
(19)
 
Outstanding at April 3, 2015
 
 
3,620
 
Exercisable at April 3, 2015
 
 
2,384
 
 
Warrants outstanding and exercisable for the period ended April 3, 2015 and January 2, 2015 were 700,000.
 
A summary of restricted stock and restricted stock units activity under the Plan for the period ended April 3, 2015 is presented below:
 
 
 
Restricted
Shares
(000’s)
 
Restricted
Units
(000’s)
 
Outstanding at January 2, 2015
 
 
247
 
 
156
 
Granted
 
 
-
 
 
12
 
Vested
 
 
(90)
 
 
(10)
 
Forfeited
 
 
-
 
 
(22)
 
Outstanding at April 3, 2015
 
 
157
 
 
136