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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 29, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
The fair value of non-vested restricted common stock awards is generally the market value of the Company’s common stock on the date of grant. The non-vested common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for one, two or four years (the vesting period) and in certain cases also require meeting either performance criteria or the Company’s stock achieving a certain price. For non-vested restricted common stock awards which solely require the recipient to remain employed with the Company, the stock compensation expense is amortized over the anticipated service period. For non-vested restricted common stock awards which require the achievement of performance criteria, the Company reviews the probability of achieving the performance goals on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for the performance goal is amortized over the service period. If the performance criteria are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. The Company recognizes compensation costs on a straight-line basis over the requisite service period for time-vested awards.
During the quarter ended March 29, 2014, the 2010 Equity Plan has been amended to increase the number of authorized shares by 1.9 million.
A summary of award activity under the stock option plans as of March 29, 2014 and changes during the three month period is as follows (all options were vested as of March 29, 2014):
 
Three months ended March 29, 2014
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 28, 2013
558,850

 
$
5.09

Options forfeited/canceled
—

 
—

Options exercised
(34,250
)
 
3.75

Balance, all exercisable, March 29, 2014
524,600

 
$
5.18


The following table summarizes information about stock options outstanding and exercisable at March 29, 2014:
 
Options Outstanding and Exercisable
Range of Exercise Prices
Number
Outstanding
and
Exercisable
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Weighted
Average
Exercise
Price
$ 3.15—$ 3.50
130,000

 
1.00
 
$
3.49

$ 3.75—$ 5.00
294,600

 
1.00
 
4.29

$10.00
100,000

 
1.00
 
10.00


524,600

 
1.00
 
$
5.18

Aggregate intrinsic value on March 29, 2014
$
32,950

 

 


The Company has issued warrants to purchase 200,000 shares of the Company’s common stock for $3.49 per share.
Non-Vested Restricted Common Stock
A summary of the activity for non-vested restricted common stock awards as of March 29, 2014 and changes during the three month period is presented below:
 
Shares
 
Weighted
Average
Grant
Fair
Value
Balance, December 28, 2013
2,974,148

 
$
4.25

Granted
375,000

 
4.44

Forfeited
—

 
—

Vested
—

 
—

Balance, March 29, 2014
3,349,148

 
$
4.27


Included within the non-vested restricted common stock table above is 50,000 awards granted for which the performance conditions have yet to be determined and therefore a grant date has not yet been established for the award.  No stock based compensation expense has been recorded relating to this award during the period ended March 29, 2014.
Stock-Based Compensation
The following table summarizes stock-based compensation expense within each of the categories below as it relates to non-vested restricted common stock awards for the three months ended March 29, 2014 and March 30, 2013 (no tax benefits were recognized):
 
Three Months Ended
 
March 29,
2014
 
March 30,
2013
Cost of component revenues
$
230,333

 
$
54,103

Research and development
332,463

 
52,615

Selling, general and administrative
564,161

 
1,399,114

Total
$
1,126,957

 
$
1,505,832


Unrecognized compensation expense for non-vested restricted common stock as of March 29, 2014 totaled $6.9 million and is expected to be recognized over a weighted average period of 2 years.