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Note 3 - Stock-based Compensation | 9 Months Ended
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Apr. 02, 2023
Notes to Financial Statements |
Share-Based Payment Arrangement [Text Block] | Note 3 – Stock-Based Compensation The Company has a Long Term Incentive and Share Award Plan, which is more fully described in Note 12 and Note 13 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 3, 2022, that provides for the grant to eligible employees, consultants and directors of stock options, restricted shares, and other stock-based awards. The amounts of stock-based compensation expense recognized in the periods presented are as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | April 2, 2023 |  |  | March 27, 2022 |  |  | April 2, 2023 |  |  | March 27, 2022 |
|  | (in thousands) |
Stock options |  | $ | 982 |  |  | $ | (57 | ) |  | $ | 1,575 |  |  | $ | (39 | )
Restricted stock |  |  | 1,505 |  |  |  | 1,564 |  |  |  | 4,366 |  |  |  | 6,842 |
Total |  |  | 2,487 |  |  |  | 1,507 |  |  |  | 5,941 |  |  |  | 6,803 |
Deferred income tax benefit |  |  | 609 |  |  |  | 372 |  |  |  | 1,455 |  |  |  | 1,678 |
Stock-based compensation expense, net |  | $ | 1,878 |  |  | $ | 1,135 |  |  | $ | 4,486 |  |  | $ | 5,125 |
Stock-based compensation is recorded within the following line items of operating expenses:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | April 2, 2023 |  |  | March 27, 2022 |  |  | April 2, 2023 |  |  | March 27, 2022 |
|  | (in thousands) |
Marketing and sales |  | $ | 1,144 |  |  | $ | 600 |  |  | $ | 2,718 |  |  | $ | 2,933 |
Technology and development |  |  | 199 |  |  |  | 63 |  |  |  | 506 |  |  |  | 274 |
General and administrative |  |  | 1,144 |  |  |  | 844 |  |  |  | 2,717 |  |  |  | 3,596 |
Total |  | $ | 2,487 |  |  | $ | 1,507 |  |  | $ | 5,941 |  |  | $ | 6,803 |
Stock-based compensation expense has not been allocated between business segments, but is reflected as part of Corporate overhead (see Note 12 - Business Segments). Stock Options The following table summarizes stock option activity during the nine months ended April 2, 2023:
|  | Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term |  |  | Aggregate Intrinsic Value |
|  |  |  |  |  |  |  |  |  | (in years) |  |  | (in thousands) |
Outstanding at July 3, 2022 |  |  | - |  |  | $ | - |  |  |  |  |  |  |  |  |
Granted |  |  | 2,346,416 |  |  | $ | 8.59 |  |  |  |  |  |  |  |  |
Exercised |  |  | - |  |  | $ | - |  |  |  |  |  |  |  |  |
Forfeited |  |  | (42,412 | ) |  |  | 8.59 |  |  |  |  |  |  |  |  |
Outstanding at April 2, 2023 |  |  | 2,304,004 |  |  | $ | 8.59 |  |  |  | 9.6 |  |  | $ | 6,705 |
Exercisable at April 2, 2023 |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
As of April 2, 2023, the total future compensation cost related to non-vested options, not yet recognized in the statement of income, was $10.2 million and the weighted average period over which these awards are expected to be recognized was 2.6 years. Restricted Stock The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service and performance conditions and, in certain cases, holding periods (Restricted Stock). The following table summarizes the activity of non-vested restricted stock awards during the nine months ended April 2, 2023:
|  | Shares |  |  | Weighted Average Grant Date Fair Value |
Non-vested at July 3, 2022 |  |  | 929,709 |  |  | $ | 21.82 |
Granted |  |  | 735,754 |  |  | $ | 8.44 |
Vested |  |  | (372,415 | ) |  | $ | 17.66 |
Forfeited |  |  | (51,638 | ) |  | $ | 19.56 |
Non-vested at April 2, 2023 |  |  | 1,241,410 |  |  | $ | 15.23 |
The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of April 2, 2023, there was $12.2 million of total unrecognized compensation cost related to non-vested, restricted, stock-based compensation to be recognized over the weighted-average remaining period of 2.7 years.

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