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Note 12. Share-Based Compensation
 3 Months Ended
Mar. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

12.  Share-Based Compensation


Share-based compensation expense related to stock options was $0.1 million for each of the three months ended March 30, 2014 and March 31, 2013.


The Company uses the Black Scholes option pricing model to estimate the fair value and compensation cost associated with employee incentive stock options which requires the consideration of historical employee exercise behavior data and the use of a number of assumptions including volatility of the Company’s stock price, the weighted average risk-free interest rate and the weighted average expected life of the options. There were 10,000 and 443,500 options granted during the three months ended March 30, 2014 and March 31, 2013, respectively. The weighted-average grant-date fair value of the stock options issued during the three months ended March 30, 2014 and March 31, 2013 were $2.48 and $1.72, respectively.


The following table summarizes Lakes’ stock option activity during the three months ended March 30, 2014 and March 31, 2013:


   

Number of Common Shares

         
   

Options

Outstanding

   

Exercisable

   

Available

for Grant

   

Weighted-Average

Exercise

Price

 
                                 

2014

                               

Balance at December 29, 2013

    1,596,322       1,171,520       526,878     $ 2.98  

Forfeited/cancelled/expired

    (36,423 )             34,423       2.42  

Exercised

    (7,000 )             —       1.89  

Granted

    10,000               (10,000 )     4.58  

Balance at March 30, 2014

    1,562,899       1,258,936       551,301       3.01  
                                 

2013

                               

Balance at December 30, 2012

    1,528,039       1,298,809       875,627     $ 3.04  

Forfeited/cancelled/expired

    (53,058 )             53,058       3.40  
Granted     443,500               (443,500 )     3.07  

Balance at March 31, 2013

    1,918,481       1,245,751       485,185       2.94  

As of March 30, 2014, the options outstanding had a weighted average remaining contractual life of 6.6 years, weighted average exercise price of $3.01 and aggregate intrinsic value of $3.1million. The options exercisable have a weighted average exercise price of $2.97, a weighted average remaining contractual life of 6.1 years and aggregate intrinsic value of $2.5 million as of March 30, 2014.


There were 7,000 options exercised during the three months ended March 30, 2014 and no options exercised during the three months ended March 31, 2013. The total intrinsic value of options exercised during the three months ended March 30, 2014 was less than $0.1 million. Lakes’ unrecognized share-based compensation expense related to stock options was approximately $0.5 million as of March 30, 2014, which is expected to be recognized over a weighted-average period of 1.9 years.


Lakes issues new shares of common stock upon the exercise of options.