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Stockholders' Equity | 12 Months Ended
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Jan. 01, 2016
Stockholders' Equity Note [Abstract] |
Financing Receivables [Text Block] | Note 11 — Stockholders’ Equity The cost that has been charged against income for stock-based compensation is set forth below (in thousands):
|  | Fiscal Year Ended |
|  | January 1, 2016 |  | January 2, 2015 |  | January 3, 2014 |
Employee stock options |  | $ | 2,306 |  | $ | 2,842 |  | $ | 2,683 |
Restricted stock |  |  | 485 |  |  | 935 |  |  | 999 |
Restricted stock units |  |  | 452 |  |  | 795 |  |  | 589 |
Consultant compensation |  |  | 61 |  |  | 91 |  |  | 218 |
Total |  | $ | 3,304 |  | $ | 4,663 |  | $ | 4,489 |
The Company recorded stock-based compensation expense in the following categories on the accompanying consolidated statements of operations (in thousands):
|  | Fiscal Year Ended |
|  | January 1, 2016 |  | January 2, 2015 |  | January 3, 2014 |
Cost of Sales |  | $ | 52 |  | $ | 108 |  | $ | 77 |
General and administrative |  |  | 2,090 |  |  | 2,552 |  |  | 2,586 |
Marketing and selling |  |  | 696 |  |  | 1,065 |  |  | 1,167 |
Research and development |  |  | 466 |  |  | 938 |  |  | 659 |
Total stock-based compensation expense |  |  | 3,304 |  |  | 4,663 |  |  | 4,489 |
Amounts capitalized as part of inventory |  |  | 516 |  |  | 306 |  |  | 232 |
Total stock-based compensation |  | $ | 3,820 |  | $ | 4,969 |  | $ | 4,721 |
There was no net income tax benefit recognized in the consolidated statements of operations for stock-based compensation expense for non-qualified stock options, as the Company fully offsets net deferred tax assets with a valuation allowance (see Note 9). The Company does not recognize deferred income taxes for incentive stock option compensation expense, and records a tax deduction only when a disqualified disposition has occurred (see Note 9). As of January 1, 2016, there was $6.8 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan ($4.7 million for stock options and $2.1 million for restricted stock and restricted stock units). That cost was expected to be recognized over a weighted-average period of approximately two years. On February 11, 2016, under the Restated Omnibus Equity Incentive Plan, a change in control occurred resulting in the immediate vesting of all unvested equity awards outstanding under the Plan (see Note 18). Stock Option Plan 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, and restricted stock units (RSUs). Options under the plan are granted at fair market value on the date of grant, become exercisable generally 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 and pre-established financial metrics are met (as defined in the Plan) (see Note 18). Grants of restricted stock outstanding under the Plan generally vest over periods of one to three years. Grants of RSUs outstanding under the Plan generally vest based on service, performance or a combination of both. As of January 1, 2016, there were 1,072,776 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.
|  | Fiscal Year Ended |
|  | January 1, 2016 |  | January 2, 2015 |  | January 3, 2014 |
Expected dividend yield |  |  | 0 | % |  | 0 | % |  | 0 | %
Expected volatility |  |  | 57 | % |  | 55 | % |  | 71 | %
Risk-free interest rate |  |  | 1.59 | % |  | 1.29 | % |  | 0.73 | %
Expected term (in years) |  |  | 5.57 |  |  | 4.12 |  |  | 4.12 |
A summary of option activity under the Plan for the year ended January 1, 2016 is presented below:
Options |  | Shares (000’s) |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value (000’s) |
Outstanding at January 2, 2015 |  |  | 3,175 |  | $ | 7.79 |  |  |  |  |  |  |
Granted |  |  | 1,155 |  |  | 7.81 |  |  |  |  |  |  |
Exercised |  |  | (476) |  |  | 4.56 |  |  |  |  |  |  |
Forfeited or expired |  |  | (231) |  |  | 10.57 |  |  |  |  |  |  |
Outstanding at January 1, 2016 |  |  | 3,623 |  | $ | 8.02 |  |  | 6.59 |  | $ | 3,562 |
Exercisable at January 1, 2016 |  |  | 2,075 |  | $ | 7.15 |  |  | 4.85 |  | $ | 3,352 |
A summary of unvested options activity under the Plan for the year ended January 1, 2016 is presented below:
Options |  | Shares (000’s) |  | Weighted- Average Grant-Date Fair Value |
Unvested at January 2, 2015 |  |  | 1,090 |  | $ | 5.92 |
Granted during the year |  |  | 1,155 |  |  | 4.14 |
Forfeited or expired during the year |  |  | (135) |  |  | 4.69 |
Vested during the year |  |  | (562) |  |  | 5.29 |
Unvested at January 1, 2016 (see Note 18) |  |  | 1,548 |  | $ | 4.34 |
The weighted-average grant-date fair value of options granted during the fiscal years ended January 1, 2016, January 2, 2015 and January 3, 2014, were $4.14, $6.81, and $3.51 per option respectively. The total intrinsic value of options exercised during the fiscal years ended January 1, 2016, January 2, 2015, and January 3, 2014, were $2.0 million, $5.5 million, and $3.9 million, respectively. Warrants On June 1, 2009, the Company issued warrants to Broadwood Partners, L.P. (“Broadwood”), pursuant to a Warrant Agreement, granting the right to purchase up to an additional 700,000 shares of Common Stock at an exercise price of $4.00 per share. In 2015, the warrants were exercised and as of January 1, 2016 there were no warrants outstanding. Restricted stock A summary of restricted stock activity for the year ended January 1, 2016 is presented below:
|  | Shares (000’s) |  | Weighted Average Grant-Date Fair Value per Share |
Outstanding at January 2, 2015 |  |  | 247 |  | $ | 9.41 |
Granted |  |  | 34 |  |  | 8.62 |
Vested |  |  | (142) |  |  | 11.88 |
Forfeited or expired |  |  | (15) |  |  | 6.26 |
Outstanding at January 1, 2016 (see Note 18) |  |  | 124 |  | $ | 6.97 |
Restricted Stock Units A summary of restricted stock units’ activity for the year ended January 1, 2016 is presented below:
|  | Units (000’s) |  | Weighted Average Grant-Date Fair Value per Share |
Outstanding at January 2, 2015 |  |  | 156 |  | $ | 15.14 |
Granted |  |  | 230 |  |  | 7.60 |
Vested |  |  | (16) |  |  | 9.20 |
Forfeited or expired |  |  | (31) |  |  | 15.20 |
Outstanding at January 1, 2016 (see Note 18) |  |  | 339 |  | $ | 10.44 |

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e4975-111524 + Details
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