8.	*SHAREHOLDERS’ EQUITY*

We recorded non-cash stock compensation expense in each period as follows:


	Three month periods ended
	March 27, 2016	March 29, 2015
Stock options	$170	$120
Restricted stock grants:
Employee	11	24

Total	$181	$144

These are more fully discussed as follows:

a. 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. As of March 27, 2016, there was $509 of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of 3.4 years.

The following table summarizes stock option activity for the first quarter of 2016:


	Number of Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2016		2,257,969	$6.30
Granted		75,000	$6.24
Exercised		(4,084)	3.51
Forfeited or expired		(34,905)	11.38

Outstanding at March 27, 2016		2,293,980	6.22	3.52	$1,225

Vested and expected to vest at March 27, 2016		2,146,741	6.31	3.33	$1,144

Exercisable at March 27, 2016		1,395,423	$4.89	2.85	$891

The following assumptions were used to value stock options granted during the first quarter of 2016:

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 2016 or 2015. Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended March 27, 2016 and March 29, 2015 was $14 and $8, respectively.

b. Restricted Stock Awards

In September 2014, 49,200 shares of restricted stock were awarded to certain of our employees. These units vest over three years and we estimated their weighted average grant date fair value to be $3.24 per share. There is $38 of unrecognized compensation cost related to these restricted shares at March 27, 2016.

Risk-free interest rate

Volatility factor

Weighted average expected life (years)