8.	SHAREHOLDERS’ EQUITY

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

	Three-Month Periods E nded				Nine-Month Periods E nded
	October 1 ,		September 25 ,		October 1 ,		September 25 ,
	2017		2016		2017		2016
Stock Options	$	130	$	197	$	518	$	525
Restricted Stock Grants		3		8		11		30
Total	$	133	$	205	$	529	$	555

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

October 1, 2017,

there was

$508

of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of

1.2

years.

The following table summarizes stock option activity for the

nine

-month period ended

October 1, 2017:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 201 7		2,323,581		$	6.22
Granted		244,750			5.60
Exercised		(273,005	)		4.10
Forfeited or Expired		(244,482	)		8.91
Outstanding at October 1, 2017		2,050,844		$	6.10		3.10	$	3,149
Vested and Expected to V est at October 1, 2017		1,937,204		$	6.18		2.95	$	2,928
Exercisable at October 1, 2017		1,218,744		$	5.03		1.86	$	2,163

The following assumptions were used to value stock options granted during the

nine

months ended

October 1, 2017:

Risk-Free Interest R ate	1.7	%
Volatility F actor	50	%
Weighted Average Expected Life (Y ears)	5
Dividends	0.0	%

The

weighted average grant date fair value of options granted during the

nine

months ended

October 1, 2017

was

$2.47.

April 19, 2017,

the Company

’s Board of Directors extended the expiration date from

December 30, 2017

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

nine

months of

2017

2016.

Cash received from stock option exercises under our stock-based compensation plans for the

three

-month periods ended

October 1, 2017

and

September 25, 2016

was

$131

and

$106,

respectively. Cash received from stock option exercises for the

nine

-month periods ended

October 1, 2017

and

September 25, 2016

was

$1,120

and

$181,

respectively.

September 2014,

49,200

shares of restricted stock were awarded to certai

n of our employees. These shares have now fully vested over

three

years, and we estimated their weighted average grant date fair value to be

$3.24

per share. In

September 2017,

15,900

shares of the awarded restricted stock vested and the Company repurchased

3,959

shares at a total cost of

$26

to satisfy the statutory tax withholding on shares vested for certain employees. There is

unrecognized compensation cost related to these restricted shares at

October 1, 2017.