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Note 11 - Share-based Compensation
 6 Months Ended
Jun. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11.  Share-Based Compensation


Share-based compensation expense related to stock options for the three and six months ended June 28, 2015 and June 29, 2014 were as follows (in thousands):


   

Three Months Ended

    

Six Months Ended

  
   

June 28,

2015

    

June 29,

2014

    

June 28,

2015

    

June 29,

2014

  

Total cost of share-based payment plans

   $ 59     $ 72     $ 119     $ 143  

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 zero options granted during the three and six months ended June 28, 2015. There were 3,000 and 8,000 options granted during the three and six months ended June 29, 2014, respectively. The weighted-average grant-date fair value of the stock options issued during the three and six months ended June 29, 2014 was $4.81 and $4.91, respectively.


The following table summarizes Lakes’ stock option activity during the six months ended June 28, 2015 and June 29, 2014:


   

Number of Common Shares

          
   

Options

Outstanding

    

Exercisable

    

Available

for Grant

    

Weighted-Average

Exercise

Price

  
                                 

2015

                                

Balance at December 28, 2014

     755,617       616,792       276,635     $ 6.09  

Exercised

     (2,500 )             —       6.14  

Balance at June 28, 2015

     753,117       678,870       276,635       6.09  
                                 

2014

                                

Balance at December 29, 2013

     798,171       585,769       263,424     $ 5.97  

Forfeited/cancelled/expired

     (20,211 )             19,211       4.95  

Exercised

     (27,843 )             —       4.75  
Granted     8,000               (8,000 )     9.44  

Balance at June 29, 2014

     758,117       605,141       274,635       6.08  

As of June 28, 2015, the options outstanding had a weighted average remaining contractual life of 5.3 years, weighted average exercise price of $6.09 and aggregate intrinsic value of $2.3 million. The options exercisable have a weighted average exercise price of $6.03, a weighted average remaining contractual life of 5.1 years and aggregate intrinsic value of $2.1 million as of June 28, 2015.


There were zero and 2,500 options exercised during the three and six months ended June 28, 2015, respectively. The total intrinsic value of options exercised during the six months ended June 28, 2015 was less than $0.1 million. There were 24,343 and 27,843 options exercised during the three and six months ended June 29, 2014.  The total intrinsic value of options exercised during each of the three and six months ended June 29, 2014 was $0.1 million.  Lakes’ unrecognized share-based compensation expense related to stock options was approximately $0.2 million as of June 28, 2015, which is expected to be recognized over a weighted-average period of 0.9 years.


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