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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 28, 2026
Equity [Abstract]  
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

9. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

 

Registered sale of equity securities

 

On September 29, 2025, the Company entered into a securities purchase agreement (the “Purchase Agreement”) for a private investment in public equity financing (the “PIPE”) for 19,545,950 shares of its common stock, par value $0.01 per share (the “Shares”). The net proceeds to the Company from the offering were approximately $38.1 million, after deducting placement agent fees and commissions and offering expenses payable by the Company. The transaction was consummated on September 30, 2025.

 

Non-Vested Restricted Common Stock

 

Restricted stock activity for the three-month period ended March 28, 2026 was as follows:

 

   Shares   Weighted Average
Grant-Date Fair Value		   Grant-Date
Fair Value		 
Non-vested at December 27, 2025   5,339,847   $1.41   $7,551,683 
Granted   1,320,773    2.45   $3,234,760 
Forfeited   (55,950)   (1.28)  $(71,763)
Vested   —    —   $— 
Non-vested at March 28, 2026   6,604,670   $1.62   $10,714,680 
Expected to vest   6,604,670   $1.62   $10,714,680 

 

 

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 and stock options awards for the three months ended March 28, 2026 and March 29, 2025 (no tax benefits were recognized):

 

   Three Months Ended   Three Months Ended 
   March 28, 2026   March 29, 2025 
Cost of product revenues  $50,008   $139,437 
Research and development   137,346    117,720 
Selling, general and administrative   307,974    517,235 
Total  $495,328   $774,392 

 

Unrecognized compensation expense for non-vested restricted common stock as of March 28, 2026 totaled $10.7 million and is expected to be recognized over a weighted average period of approximately two and a half years.

 

Stock Options

 

During the three months ended March 28, 2026, an option award for 724,638 shares of the Company’s common stock was granted to the Chief Executive Officer. These options have a strike price of $3.21 and vest over a 4 year period. During the three months ended March 28, 2026, the Company recorded incremental stock-based compensation of less than $0.1 million as a result of the granting of stock option awards. As of March 28, 2026, there was approximately $1.8 million of unrecognized compensation cost related to unvested options. The cost is expected to be recognized over a weighted average period of 3.5 years.

 

The fair value of this options award was estimated using the Black-Scholes model using the following assumptions and had the following fair values:

 

   Three Months Ended 
   March 28, 2026 
Average risk-free interest rate   4.00%
Expected dividend yield   None 
Expected life (average, in years)   8.00 
Expected volatility   90.00%
Weighted average exercise price  $3.21 
Weighted average fair value  $2.07 

 

 

The Company’s 2026 average expected volatility and average expected life is based on the average of the Company’s historical information. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of option grants. The Company has paid no dividends on its common stock in the past and does not anticipate paying any dividends in the future.

 

A summary of stock option activity for the period ended March 28, 2026 is as follows:

 

   Number of Options   Weighted Average Exercise Price   Intrinsic Value 
Outstanding as of December 27, 2025   591,366   $1.76   $366,647 
Granted   724,638   $3.21    — 
Outstanding as of March 28, 2026   1,316,004   $2.56   $— 
Options exercisable as of March 28, 2026   230,092   $2.05   $—