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Stockholders' Equity
 9 Months Ended
Sep. 29, 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

 

 

Nine Months Ended

 

 

 

September 29, 2023

 

 

September 30, 2022

 

 

September 29, 2023

 

 

September 30, 2022

 

Employee stock options

 

$

3,517

 

 

$

2,865

 

 

$

9,973

 

 

$

7,649

 

Restricted stock

 

 

201

 

 

 

67

 

 

 

347

 

 

 

618

 

Restricted stock units

 

 

2,214

 

 

 

1,249

 

 

 

5,963

 

 

 

3,242

 

Performance stock units

 

 

2,449

 

 

 

1,240

 

 

 

5,958

 

 

 

2,932

 

Nonemployee stock options

 

 

465

 

 

 

306

 

 

 

1,093

 

 

 

934

 

Total stock-based compensation expense

 

$

8,846

 

 

$

5,727

 

 

$

23,334

 

 

$

15,375

 

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 29, 2023

 

 

September 30, 2022

 

 

September 29, 2023

 

 

September 30, 2022

 

Cost of sales

 

$

223

 

 

$

233

 

 

$

595

 

 

$

409

 

General and administrative

 

 

4,049

 

 

 

2,584

 

 

 

11,107

 

 

 

7,171

 

Selling and marketing

 

 

2,561

 

 

 

1,335

 

 

 

5,910

 

 

 

3,548

 

Research and development

 

 

2,013

 

 

 

1,575

 

 

 

5,722

 

 

 

4,247

 

Total stock-based compensation expense, net

 

 

8,846

 

 

 

5,727

 

 

 

23,334

 

 

 

15,375

 

Amounts capitalized as part of inventory

 

 

534

 

 

 

361

 

 

 

1,431

 

 

 

1,379

 

Total stock-based compensation expense, gross

 

$

9,380

 

 

$

6,088

 

 

$

24,765

 

 

$

16,754

 

 

Note 11 — Stockholders’ Equity (Continued)

Stock-Based Compensation (Continued)

As of September 29, 2023, total unrecognized compensation cost related to non-vested stock-based compensation arrangements were as follows (in thousands):

 

 

 

September 29, 2023

 

Stock options

 

$

23,888

 

Restricted stock, RSUs and PSUs

 

 

24,690

 

Total unrecognized stock-based compensation cost

 

$

48,578

 

 

The cost is expected to be recognized over a weighted-average period of approximately two years.

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 September 29, 2023, there were 2,784,909 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

 

 

Nine Months Ended

 

 

 

September 29, 2023

 

 

September 30, 2022

 

 

September 29, 2023

 

 

September 30, 2022

 

Expected dividend yield

 

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected volatility

 

 

60

%

 

 

54

%

 

 

60

%

 

 

54

%

Risk-free interest rate

 

 

4.18

%

 

 

2.91

%

 

 

3.91

%

 

 

1.88

%

Expected term (in years)

 

 

5.05

 

 

 

5.10

 

 

 

5.05

 

 

 

5.10

 

 

Note 11 — Stockholders’ Equity (Continued)

Stock Options

A summary of stock option activity under the Plan for nine months ended September 29, 2023 is presented below:

 

 

 

Stock
Options
(in 000’s)

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term (years)

 

 

Aggregate
Intrinsic
Value
(in 000’s)

 

Outstanding at December 30, 2022

 

 

2,469

 

 

$

39.63

 

 

 

 

 

 

 

Granted

 

 

622

 

 

 

55.84

 

 

 

 

 

 

 

Exercised

 

 

(500

)

 

 

18.54

 

 

 

 

 

 

 

Forfeited or expired

 

 

(38

)

 

 

72.49

 

 

 

 

 

 

 

Outstanding at September 29, 2023

 

 

2,553

 

 

$

47.22

 

 

 

6.77

 

 

$

19,641

 

Exercisable at September 29, 2023

 

 

1,663

 

 

$

39.11

 

 

 

5.52

 

 

$

19,641

 

 

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSUs and PSUs activity under the Plan for the nine months ended September 29, 2023 is presented below (shares in thousands):

 

 

 

Restricted
Stock

 

 

RSUs

 

 

PSUs

 

Unvested at December 30, 2022

 

 

4

 

 

 

192

 

 

 

118

 

Granted

 

 

12

 

 

 

269

 

 

 

182

 

Vested

 

 

(4

)

 

 

(94

)

 

 

(36

)

Forfeited or expired

 

 

—

 

 

 

(6

)

 

 

(13

)

Unvested at September 29, 2023

 

 

12

 

 

 

361

 

 

 

251