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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

3 Months Ended

Mar. 26, 2022

Equity [Abstract]

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

7. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Registered sale of equity securities

During the three months ended March 27, 2021, we sold 2.4 million shares of common stock for gross proceeds of $16 million (average of $6.66 per share), before deducting broker expenses paid by us of $0.5 million, pursuant to our At-The-Market Equity Offering Sales Agreement dated as of February 8, 2019 (the “Previous ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“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. On March 5, 2021 the Company entered into a new At-The-Market Equity Offering Sales Agreement dated as of March 5, 2021 (the “Current ATM Agreement”) with Stifel under which the Company may sell up to $50 million of its common stock.

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 three month period ended March 26, 2022 was as follows:

		Shares				Weighted Average Grant Fair Value
Balance, December 25, 2021			2,077,592			$	2.90
Granted			37,100				2.36
Forfeited			(7,100	)			4.40
Vested			(154,421	)			2.73
Balance, March 26, 2022			1,953,171			$	2.90

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, 2022 and March 27, 2021 (no tax benefits were recognized):

		Three Months Ended				Three Months Ended
		March 26, 2022				March 27, 2021
Cost of product revenues		$	66,668			$	133,784
Research and development			147,379				94,053
Selling, general and administrative			442,026				2,382,329
Total		$	656,073			$	2,610,166

Unrecognized compensation expense for non-vested restricted common stock as of March 26, 2022 totaled $3.7 million and is expected to be recognized over a weighted average period of approximately three years.