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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 27, 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 anticipated 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 nine months ended September 27, 2014, the Company's 2010 Equity Plan was amended to increase the number of authorized shares by 1.9 million.
A summary of stock option award activity under the Equity Award plans as of September 27, 2014 and changes during the nine month period then ended is as follows (all options were vested as of September 27, 2014):
 
Nine Months Ended September 27, 2014
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 28, 2013
558,850

 
$
5.09

Options forfeited/canceled
(131,000
)
 
4.97

Options exercised
(36,750
)
 
3.75

Balance, all exercisable, September 27, 2014
391,100

 
$
5.26


The following table summarizes information about stock options outstanding and exercisable at September 27, 2014:
 
Options Outstanding and Exercisable
Range of Exercise Prices
Number
Outstanding
and
Exercisable
 
Weighted
Average
Exercise
Price
$ 3.15—$ 3.50
127,500

 
$
3.49

$ 3.75—$ 3.87
163,600

 
3.75

$10.00
100,000

 
10.00

 
391,100

 
5.26

Aggregate intrinsic value on September 27, 2014
$
1,700

 


The weighted average remaining contractual life of the outstanding options is less than one year. 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 September 27, 2014 and changes during the nine month period then ended is presented below:
 
Shares
 
Weighted
Average
Grant
Fair
Value
Balance, December 28, 2013
2,974,148

 
$
4.25

Granted
573,000

 
3.97

Forfeited
(50,000
)
 
4.44

Vested
(138,000
)
 
3.28

Balance, September 27, 2014
3,359,148

 
$
4.25


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 three and nine month period ended September 27, 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 nine months ended September 27, 2014 and September 28, 2013 (no tax benefits were recognized):
 
Nine Months Ended
 
September 27,
2014
 
September 28,
2013
Cost of component revenues
$
590,467

 
$
254,642

Research and development
773,106

 
258,187

Selling, general and administrative
2,191,881

 
3,136,075

Total
$
3,555,454

 
$
3,648,904


Unrecognized compensation expense for non-vested restricted common stock as of September 27, 2014 totaled $4.7 million and is expected to be recognized over a weighted average period of two years.