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Note 12 - Share-Based Compensation
 9 Months Ended
Sep. 28, 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 for the three and nine months ended September 28, 2014 and September 29, 2013 were as follows (in thousands):


   

Three Months Ended

   

Nine Months Ended

 
   

September 28,

2014

   

September 29,

2013

   

September 28,

2014

   

September 29,

2013

 

Total cost of share-based payment plans

  $ 67     $ 113     $ 210     $ 396  

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 3,000 and 11,000 options granted during the three and nine months ended September 28, 2014, respectively. The weighted-average grant-date fair value of the stock options issued during the three and nine months ended September 28, 2014 were $3.98 and $4.65, respectively. There were 3,000 and 224,750 options granted during the three and nine months ended September 29, 2013, respectively. The weighted-average grant-date fair value of the stock options issued during the three and nine months ended September 29, 2013 was $4.31 and $3.45, respectively.


The following table summarizes Lakes’ stock option activity during the nine months ended September 28, 2014 and September 29, 2013:


   

Number of Common Shares

         
     

Options

Outstanding

      Exercisable      

Available

for Grant

     

Weighted-

Average

Exercise

Price 

 
                                 

2014

                               

Balance at December 29, 2013

    798,171       585,769       263,424     $ 5.97  

Forfeited/cancelled/expired

    (25,211 )             24,211       5.19  

Exercised

    (28,343 )             —       4.73  

Granted

    11,000               (11,000 )     9.18  

Balance at September 28, 2014

    755,617       615,792       276,635       6.09  
                                 

2013

                               

Balance at December 30, 2012

    764,034       649,412       437,797     $ 5.84  

Forfeited/cancelled/expired

    (51,502 )             51,502       6.17  

Exercised

    (19,275 )             —       6.54  
Granted     224,750               (224,750 )     6.16  

Balance at September 29, 2013

    918,007       626,771       264,549       5.88  

As of September 28, 2014, the options outstanding had a weighted average remaining contractual life of 6.1 years, weighted average exercise price of $6.09 and aggregate intrinsic value of $1.8 million. The options exercisable have a weighted average exercise price of $6.00, a weighted average remaining contractual life of 5.5 years and aggregate intrinsic value of $1.5 million as of September 28, 2014.


There were 500 and 28,343 options exercised during the three and nine months ended September 28, 2014, respectively and 19,275 options exercised during the three and nine months ended September 29, 2013. The total intrinsic value of options exercised during the three and nine months ended September 28, 2014 was less than $0.1 million and $0.1 million, respectively. Lakes’ unrecognized share-based compensation expense related to stock options was approximately $0.4 million as of September 28, 2014, which is expected to be recognized over a weighted-average period of 1.6 years.


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