XML 26 R15.htm IDEA: XBRL DOCUMENT

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

9 Months Ended

Sep. 28, 2024

Equity [Abstract]

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

8. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Registered sale of equity securities

On September 23, 2024, the Company sold 37,550,000 shares of common stock and pre-funded warrants to purchase up to 4,000,000 shares of common stock at a public offering price of $0.64 per pre-funded warrant and received gross proceeds of $27.0 million before deducting underwriting discounts and offering expenses paid by the Company of $1.8 million. The offering price of the pre-funded warrant equals the public offering price per share of the common stock less the $0.01 per share exercise price of each pre-funded warrant.

On September 30, 2024, the Company sold 2,405,000 shares of common stock and received gross proceeds of $1.5 million.

During the three months ended March 30, 2024, the Company sold 3,080,000 shares of common stock for gross proceeds of $7,466,755 (average of $2.42 per share) before deducting broker expenses paid by the Company of approximately $0.2 million, pursuant to the Company’s then effective At-The-Market Equity Offering Sales Agreement, dated as of March 5, 2021 (the “ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“Stifel”), as agent. The ATM Agreement terminated in the three months ended March 30, 2024.

On January 27, 2023, the Company sold 17,000,000 shares of common stock and pre-funded warrants to purchase up to 6,000,000 shares of common stock at a public offering price of $0.99 per pre-funded warrant, for gross proceeds of $22.9 million before deducting underwriting discounts and offering expenses paid by the Company of $1.5 million. The offering price of the pre-funded warrant equals the public offering price per share of the common stock less the $0.01 per share exercise price of each pre-funded warrant.

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.

The Company granted 4,226,320 and 3,296,051 restricted stock units to its employees, executives and the Board of Directors in the nine months ended September 28, 2024 and September 30, 2023, respectively. For fiscal year 2024, 1,137,970 shares are part of an incentive program that would vest upon the successful achievement of certain fiscal year 2024 milestones. Through September 28, 2024, 99,279 shares were earned upon the achievement of milestones, 343,631 were forfeited for failure to meet milestones, and 695,060 may still be earned for achieving milestones in 2024. The fair value of the restricted stock units was based on the fair market value of the Company’s stock on the date of grant. The time-based shares are expensed over the service period and the milestone-based shares are expensed based upon the probability of achievement.

Restricted stock activity for the nine month period ended September 28, 2024 was as follows:

		Shares				Weighted Average Grant Fair Value
Balance, December 30, 2023			1,931,767			$	1.65
Granted			4,226,320				1.30
Forfeited			(399,644	)			2.50
Vested			(247,529	)			2.00
Balance, September 28, 2024			5,510,914				1.30

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 28, 2024 and September 30, 2023 (no tax benefits were recognized):

		Three Months Ended				Three Months Ended				Nine months ended				Nine months ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Cost of product revenues		$	368,312			$	311,455			$	857,236			$	764,996
Research and development			308,792				214,320				569,701				553,488
Selling, general and administrative			535,842				432,560				1,197,355				1,025,298
Total		$	1,212,946			$	958,335			$	2,624,292			$	2,343,782
Stock based compensation expense		$	1,212,946			$	958,335			$	2,624,292			$	2,343,782

Unrecognized compensation expense for non-vested restricted common stock as of September 28, 2024 totaled $4.2 million and is expected to be recognized over a weighted average period of approximately two years.