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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

9 Months Ended

Sep. 25, 2021

Equity [Abstract]

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

7. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Registered sale of equity securities

During the nine months ended September 25, 2021, the Company sold 3.1 million shares of common stock for gross proceeds of $21.7 million (average of $7.00 per share), before deducting broker expenses paid by us of $0.7 million, pursuant to the Company’s At-The-Market Equity Offering Sales Agreement dated as of March 5, 2021 (the “Current ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“Stifel”) as agent, under which the Company can sell up to $50 million of its common stock and an At-The-Market Equity Offering Sales Agreement dated as of February 8, 2019 (the “Previous ATM Agreement”) also with Stifel as agent. The Previous ATM Agreement has since terminated pursuant to its terms as a result of the sale of all the shares subject to such agreement. As of September 25, 2021, the Company can sell up to $44.3 million of its common stock under the Current ATM Agreement.

Non-Vested Restricted Common Stock

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 that 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 that 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.

Restricted stock activity for the nine month period ending September 25, 2021 was as follows:

						Weighted Average
		Shares				Grant Fair Value
Balance, December 26, 2020			3,051,874			$	1.67
Granted			1,571,843				3.19
Forfeited			(985,000	)			1.81
Vested			(1,010,000	)			2.44
Balance, September 25, 2021			2,628,717			$	2.24

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 and nine months ended September 25, 2021 and September 26, 2020 (no tax benefits were recognized):

		Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
		September 25, 2021				September 26, 2020				September 25, 2021				September 26, 2020
Cost of product revenues		$	37,674			$	40,620			$	206,247			$	70,866
Research and development			180,152				81,133				395,217				193,788
Selling, general and administrative			424,358				196,855				3,165,395				374,096
Total		$	642,184			$	318,608			$	3,766,859			$	638,750

Unrecognized compensation expense for non-vested restricted common stock as of September 25, 2021 totaled $2.7 million and is expected to be recognized over a weighted average period of approximately 2.6 years.