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Stock-Based Compensation | 6 Months Ended
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Jul. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [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 1, 2016 |  | July 3, 2015 |  | July 1, 2016 |  | July 3, 2015 |
Employee stock options |  | $ | 153 |  | $ | 555 |  | $ | 5,049 |  | $ | 1,193 |
Restricted stock |  |  | 2 |  |  | 63 |  |  | 227 |  |  | 307 |
Restricted stock units |  |  | 145 |  |  | 154 |  |  | 2,423 |  |  | 274 |
Nonemployee stock options |  |  | -- |  |  | 57 |  |  | 59 |  |  | 49 |
Total |  | $ | 300 |  | $ | 829 |  | $ | 7,758 |  | $ | 1,823 |
The Company recorded stock-based compensation costs in the following categories on the accompanying condensed consolidated statements of operations (in thousands):
|  | Three Months Ended |  | Six Months Ended |
|  | July 1, 2016 |  | July 3, 2015 |  | July 1, 2016 |  | July 3, 2015 |
Cost of sales |  | $ | -- |  | $ | 6 |  | $ | 560 |  | $ | 23 |
General and administrative |  |  | 167 |  |  | 548 |  |  | 3,688 |  |  | 1,124 |
Marketing and selling |  |  | 68 |  |  | 104 |  |  | 1,471 |  |  | 355 |
Research and development |  |  | 65 |  |  | 171 |  |  | 2,039 |  |  | 321 |
Total stock compensation expense |  |  | 300 |  |  | 829 |  |  | 7,758 |  |  | 1,823 |
Amounts capitalized as part of inventory |  |  | 36 |  |  | 129 |  |  | 188 |  |  | 251 |
Total |  | $ | 336 |  | $ | 958 |  | $ | 7,946 |  | $ | 2,074 |
Stock Option Plan Our Amended and Restated 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 (“RSUs”), 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 our 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 under certain circumstances in the event of a change in control (as defined in the Plan). Pursuant to the Plan, options for 3,785,537 shares were outstanding at July 1, 2016 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 15,379 shares of restricted stock and 260,425 RSUs outstanding at July 1, 2016. As of July 1, 2016, there were 2,223,858 shares authorized and available for grants under the Plan. Immediate Vesting of All Unvested Equity Awards On February 11, 2016, one of our shareholders increased its beneficial ownership of the Company’s common stock to approximately 26% of all shares outstanding. This triggered the “Change in Control” provision in the Plan, which resulted in the immediate vesting of all unvested equity awards outstanding under the Plan (“Acceleration Event”) and us recording an aggregate $6.9 million non-cash charge to stock-based compensation in the condensed consolidated statements of operations on that date ($4.6 million for stock options and $2.3 million for restricted stock and RSUs). This charge was recorded and included in the following categories of the condensed consolidated statements of operations for the six months ended July 1, 2016: $2.9 million in general and administrative expenses, $1.5 million in marketing and selling expenses, $1.9 million in research and development expenses and $0.6 million in manufacturing costs. Approximately $3.7 million of the $6.9 million of accelerated charges would have been recognized for stock-compensation by the Company during fiscal year 2016 after the Change in Control provision was triggered. 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 9% 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 1, 2016 |  |  | July 3, 2015 |  |  | July 1, 2016 |  |  | July 3, 2015 |
Expected dividend yield |  |  | 0 | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
Expected volatility |  |  | 45 | % |  |  | 57 | % |  |  | 53 | % |  |  | 57 | %
Risk-free interest rate |  |  | 1.01 | % |  |  | 1.42 | % |  |  | 1.27 | % |  |  | 1.61 | %
Expected term (in years) |  |  | 4.40 |  |  |  | 5.54 |  |  |  | 5.19 |  |  |  | 5.61 |
A summary of option activity under the Plan for the six-month period ended July 1, 2016 is presented below:
|  | Options Shares (000’s) |
Outstanding at January 1, 2016 |  |  | 3,623 |
Granted |  |  | 725 |
Exercised |  |  | (265) |
Forfeited or expired |  |  | (298) |
Outstanding at July 1, 2016 |  |  | 3,785 |
Exercisable at July 1, 2016 |  |  | 3,176 |
A summary of restricted stock and RSU activity under the Plan for the six-month period ended July 1, 2016 is presented below:
|  | Restricted Shares (000’s) |  | RSUs (000’s) |
Outstanding at January 1, 2016 |  |  | 124 |  |  | 339 |
Granted |  |  | 15 |  |  | 307 |
Vested |  |  | (124) |  |  | (379) |
Forfeited |  |  | -- |  |  | (6) |
Outstanding at July1, 2016 |  |  | 15 |  |  | 261 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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