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Note 8 - Shareholders' Equity
 6 Months Ended
Jul. 02, 2017
Notes to Financial Statements  
Shareholders' Equity and Share-based Payments [Text Block]
8.
SHAREHOLDERS’ EQUITY
 
We recorded non-cash stock compensation expense in each period as follows:
 
 
 
Three-month periods ended
 
 
Six-month periods ended
 
 
 
July 2
,
 
 
June 26,
 
 
July 2
,
 
 
June 26,
 
 
 
201
7
 
 
2016
 
 
201
7
 
 
2016
 
Stock Options
   $
352
     $
158
     $
388
     $
328
  
Restricted Stock Grants
    
4
      
11
      
8
      
22
  
Total
   $
356
     $
169
     $
396
     $
350
  
 
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
July 2, 2017,
there was
$616
of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of
1.4
years.
 
The following table summarizes stock option activity for the
six
-month period ended
July 2, 2017:
 
 
 
Number of Shares
 
 
Weighted Average Exercise Price
 
 
Weighted Average Remaining Contractual Term (years)
 
 
Aggregate Intrinsic Value
 
Outstanding at January 1, 2017
    
2,323,581
    $
6.22
     
 
      
 
  
Granted
    
244,750
     
5.60
      
 
      
 
  
Exercised
    
(242,919
 )    
4.07
     
 
      
 
  
Forfeited or Expired
    
(209,399
 )    
9.20
      
 
      
 
  
Outstanding at July 2, 2017
    
2,116,013
     $
6.10
   
3.31
     $
3,929
  
Vested and Expected to Vest at July 2, 2017
    
2,000,545
      
6.17
    
3.16
     $
3,658
  
Exercisable at July 2, 2017
    
1,273,909
     $
5.08
    
2.02
     $
2,706
  
 
 
The following assumptions were used to value stock options granted during the
six
months ended
July 2, 2017:
 
Risk-Free Interest Rate
    
1.7
 %
Volatility Factor
    
50
 %
Weighted Average Expected Life (Years)
    
5
  
Dividends
    
0.0
 %
 
The weighted average grant date fair value of options granted during the
six
months ended
July 2, 2017
was
$2.47.
 
On
April 19, 2017,
the Company’s Board of Directors extended the expiration date from
December 30, 2017
to
December 30, 2020
of options previously granted (and fully vested at the time of modification) to the Company’s President and Chief Executive Officer to purchase an aggregate
300,000
shares of the Company’s common stock. Pursuant to Accounting Standards Codification Topic
718,
Compensation – Stock Compensation, the transaction was accounted for as an equity award modification. During the
second
quarter, the Company recognized compensation cost of
$193
representing the incremental fair value of the modified award computed as of the modification date as the difference between the fair value of the modified award and the fair value of the original award immediately before it was modified.
 
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
six
months of
2017
or
2016.
 
Cash received from stock option exercises under our stock-based compensation plans for the
three
-month periods ended
July 2, 2017
and
June 26, 2016
was
$248
and
$61,
respectively. Cash received from stock option exercises for the
six
-month periods ended
July 2, 2017
and
June 26, 2016
was
$989
and
$75,
respectively.
 
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
$3
of unrecognized compensation cost related to these restricted shares at
July 2, 2017.