STOCK-BASED COMPENSATION

3 Months Ended

Mar. 26, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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 restricted 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.

On February 24, 2016, the Company granted Dr. Fan 87,500 shares of restricted stock, 50% of which will vest on December 10, 2016 and 50% will vest on December 10, 2017.

Non-Vested Restricted Common Stock

A summary of the activity for non-vested restricted common stock awards as of March 26, 2016 and changes during the three month period then ended is presented below:



	Shares		Weighted Average Grant Fair Value
Balance, December 26, 2015	2,192,016		$	3.82
Granted	504,500		1.84
Forfeited	—		—
Vested	(2,500	)	1.84
Balance, March 26, 2016	2,694,016		$	3.45

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 26, 2016 and March 28, 2015 (no tax benefits were recognized):



	Three Months Ended
	March 26, 2016			March 28, 2015
Cost of component revenues	$	142,534		$	199,239
Research and development	116,895			234,406
Selling, general and administrative	(202,975		)	563,819
Total	$	56,454		$	997,464

The $0.2 million benefit in selling, general and administrative expense is primarily driven by the mark to market accounting of stock based compensation arrangements classified and recorded as liabilities.

Unrecognized compensation expense for non-vested restricted common stock as of March 26, 2016 totaled $4.7 million and is expected to be recognized over a weighted average period of two years.