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Stockholders' Equity
 6 Months Ended
Jun. 30, 2023
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 11 — Stockholders’ Equity

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

 

 

 

June 30, 2023

 

 

July 1, 2022

 

 

June 30, 2023

 

 

July 1, 2022

 

Employee stock options

 

$

3,479

 

 

$

2,457

 

 

$

6,456

 

 

$

4,784

 

Restricted stock

 

 

79

 

 

 

442

 

 

 

146

 

 

 

551

 

Restricted stock units

 

 

2,148

 

 

 

1,231

 

 

 

3,749

 

 

 

1,993

 

Performance stock units

 

 

2,403

 

 

 

1,310

 

 

 

3,509

 

 

 

1,692

 

Nonemployee stock options

 

 

314

 

 

 

314

 

 

 

628

 

 

 

628

 

Total stock-based compensation expense

 

$

8,423

 

 

$

5,754

 

 

$

14,488

 

 

$

9,648

 

 

The Company recorded stock-based compensation costs in the following categories (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2023

 

 

July 1, 2022

 

 

June 30, 2023

 

 

July 1, 2022

 

Cost of sales

 

$

223

 

 

$

106

 

 

$

372

 

 

$

176

 

General and administrative

 

 

3,695

 

 

 

2,806

 

 

 

7,058

 

 

 

4,587

 

Selling and marketing

 

 

2,492

 

 

 

1,324

 

 

 

3,349

 

 

 

2,213

 

Research and development

 

 

2,013

 

 

 

1,518

 

 

 

3,709

 

 

 

2,672

 

Total stock-based compensation expense, net

 

 

8,423

 

 

 

5,754

 

 

 

14,488

 

 

 

9,648

 

Amounts capitalized as part of inventory

 

 

528

 

 

 

652

 

 

 

897

 

 

 

1,018

 

Total stock-based compensation expense, gross

 

$

8,951

 

 

$

6,406

 

 

$

15,385

 

 

$

10,666

 

 

Note 11 — Stockholders’ Equity (Continued)

Incentive Plan

The 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 stock units (“PSUs”). 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). Grants of restricted stock outstanding under the Plan generally vest over periods of one to three years. Grants of RSUs and PSUs outstanding under the Plan generally vest based on service, performance, or a combination of both. On June 15, 2023, stockholders approved a proposal to increase the number of shares under the plan by 2,170,000 shares, for a total of 20,205,000 shares. As of June 30, 2023, there were 2,844,500 shares available for grant 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

 

 

 

June 30, 2023

 

 

July 1, 2022

 

 

June 30, 2023

 

 

July 1, 2022

 

Expected dividend yield

 

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected volatility

 

 

58

%

 

 

54

%

 

 

59

%

 

 

54

%

Risk-free interest rate

 

 

3.41

%

 

 

3.27

%

 

 

3.87

%

 

 

1.83

%

Expected term (in years)

 

 

4.87

 

 

 

5.10

 

 

 

5.02

 

 

 

5.10

 

 

Stock Options

A summary of stock option activity under the Plan for six months ended June 30, 2023 is presented below:

 

 

 

Stock
Options
(in 000’s)

 

 

Minimum
Exercise
Price

 

 

Maximum
Exercise
Price

 

Outstanding at December 30, 2022

 

 

2,469

 

 

 

 

 

 

 

Granted

 

 

584

 

 

 

 

 

 

 

Exercised

 

 

(195

)

 

 

 

 

 

 

Forfeited or expired

 

 

(31

)

 

 

 

 

 

 

Outstanding at June 30, 2023

 

 

2,827

 

 

$

5.54

 

 

$

154.96

 

Exercisable at June 30, 2023

 

 

1,903

 

 

 

 

 

 

 

 

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSUs and PSUs activity under the Plan for the six months ended June 30, 2023 is presented below (shares in thousands):

 

 

 

Restricted
Stock

 

 

RSUs

 

 

PSUs

 

Unvested at December 30, 2022

 

 

4

 

 

 

192

 

 

 

118

 

Granted

 

 

10

 

 

 

259

 

 

 

178

 

Vested

 

 

(4

)

 

 

(80

)

 

 

(36

)

Forfeited or expired

 

 

—

 

 

 

(6

)

 

 

(11

)

Unvested at June 30, 2023

 

 

10

 

 

 

365

 

 

 

249