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Note 7 Shareholders' Equity
 3 Months Ended
Mar. 30, 2014
Equity [Abstract]  
Note 7 Shareholders' Equity

7.SHAREHOLDERS’ EQUITY

 

a. Common Stock

 

In the first quarter of 2014, we issued 14,639 shares of common stock to our non-employee directors, valued at $57.

 

b. Stock Options

 

We have stock options outstanding from various stock-based employee compensation plans, for which we record compensation cost relating to share-based payment transactions in our financial statements. The cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity award). Compensation cost related to stock options was $174 and $190 for the three-month periods ended March 30, 2014 and March 31, 2013, respectively. As of March 30, 2014, there was $962 of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.6 years.

 

The following table summarizes stock option activity for the first quarter of 2014:

 

   Number of Shares  Weighted Average Exercise Price  Weighted Average Remaining Contractual Term (years)  Aggregate Intrinsic Value
Outstanding at January 1, 2014   2,131,622   $6.99           
Granted   252,500    3.94           
Exercised   (2,900)   3.69           
Forfeited   (18,731)   3.95           
Expired   (47,034)   10.08           
Outstanding at March 30, 2014   2,315,457    6.62    4.46   $407 
Vested and expected to vest at                    
   March 30, 2014   2,107,093    6.84    4.35   $333 
Exercisable at March 30, 2014   1,183,986   $6.12    3.37   $135 

 

The following assumptions were used to value stock options granted during the first quarter of 2014:

    
Risk-free interest rate   1.10%
Volatility factor   59.94%
Dividends   0.00%
Weighted average expected life (years)   4.15 

 

FASB’s guidance for share-based payments requires cash flows from excess tax benefits to be classified as a part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for exercised stock options in excess of the deferred tax asset attributable to stock compensation costs for such stock options. We did not record any excess tax benefits in the first three months of 2014 and 2013. Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended March 30, 2014 and March 31, 2013 was $0 and $12, respectively.

 

c. Restricted Stock Awards

 

No restricted stock was awarded during the three month period ending March 30, 2014. Included in stock compensation expense recorded in our financial statements in the first quarter of 2014 was $49 relating to the restricted stock units held by our President and Chief Executive Officer. There was no stock compensation expense relating to restricted stock awards in the first quarter of 2013. There is $102 of unrecognized compensation cost related to restricted stock units as of March 30, 2014. 30,000 shares of restricted stock units vested during the first quarter of 2014.