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Employee Stock Plans | 9 Months Ended
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Oct. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Employee Stock Plans | Employee Stock Plans 2009 Stock Plan The 2009 Stock Plan, or the 2009 Plan, was amended and restated by the Board of Directors in January 2015 and in February 2017 and approved by the Company's stockholders on April 23, 2015 and on April 26, 2017 to, among other things, reserved an additional 2.5 million and 1.5 million shares of common stock, respectively, for issuance under the 2009 Plan. As of October 1, 2017, approximately 12.0 million shares were reserved for issuance under the 2009 Plan. Employee Stock Purchase Plan The 2009 Employee Stock Purchase Plan, or the 2009 ESPP, was adopted in March 2009. The 2009 ESPP was amended by the Board of Directors in January 2015 and in February 2017, and was approved by the Company's stockholders on April 23, 2015 and April 26, 2017 to reserve an additional 1.0 million and 1.5 million shares of common stock, respectively, for issuance under the 2009 ESPP. As of October 1, 2017, approximately 4.8 million shares were reserved for issuance under the 2009 ESPP. Stock-Based Compensation The stock-based compensation expense included in the Company's consolidated financial statements for the three and nine months ended October 1, 2017 and October 2, 2016 was as follows (in thousands):
| Three Months Ended |  | Nine Months Ended
| October 1, 2017 |  | October 2, 2016 |  | October 1, 2017 |  | October 2, 2016
Cost of revenue | $ | 32 |  |  | $ | 34 |  |  | $ | 85 |  |  | $ | 119 |
Research and development | 151 |  |  | 137 |  |  | 424 |  |  | 603 |
Selling, general and administrative | 212 |  |  | 286 |  |  | 551 |  |  | 736 |
Total costs and expenses | $ | 395 |  |  | $ | 457 |  |  | $ | 1,060 |  |  | $ | 1,458 |
No stock-based compensation was capitalized during any period presented above. No stock options were granted in the three and nine months ended October 1, 2017. The Company granted 842,000 stock options during the three and nine months ended October 2, 2016. Weighted average estimated fair value for options granted during the three and nine months ended October 2, 2016 was $0.46. As of October 1, 2017 and October 2, 2016, the fair value of unvested stock options, net of expected forfeitures, was approximately $309,000 and $581,000, respectively. The remaining unrecognized stock-based compensation expense is expected to be recognized over a weighted average period of 2.57 as of October 1, 2017. Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2009 Plan during the nine months ended October 1, 2017:
| Shares Available for Grant
| (in thousands)
Balance at January 1, 2017 | 2,632 |
Authorized | 1,500 |
Options forfeited or expired | 942 |
RSUs granted | (1,737 | )
RSUs forfeited or expired | 240 |
Balance at October 1, 2017 | 3,577 |
Stock Options The following table summarizes stock options outstanding and stock option activity under the 2009 Plan, and the related weighted average exercise price, for the nine months of 2017:
| Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Term |  | Aggregate Intrinsic Value
| (in thousands) |  |  |  | (in years) |  | (in thousands)
Balance outstanding at January 1, 2017 | 4,979 |  |  | $ | 2.35 |  |  |  |  |
Forfeited or expired | (942 | ) |  | $ | 2.61 |  |  |  |  |
Exercised | (62 | ) |  | $ | 1.33 |  |  |  |  |
Balance outstanding at October 1, 2017 | 3,975 |  |  | $ | 2.30 |  |  | 4.12 |  | $ | 880 |
Exercisable at October 1, 2017 | 3,345 |  |  | $ | 2.53 |  |  | 3.26 |  | $ | 422 |
Vested and expected to vest at October 1, 2017 | 3,838 |  |  | $ | 2.35 |  |  | 3.95 |  | $ | 774 |
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $1.68 as of the end of the Company's current reporting period, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during the three months ended October 1, 2017 and October 2, 2016 was $15,000 and $0, respectively. The total intrinsic value of options exercised during the nine months ended October 1, 2017 and October 2, 2016 was $111,000 and $0, respectively. Total cash received from employees as a result of employee stock option exercises during the nine months of 2017 and 2016 was approximately $82,000 and $0, respectively. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to the Company's current loss position. Total stock-based compensation related to stock options was $60,000 and $185,000 for the three and nine months ended October 1, 2017, respectively. Restricted Stock Units and Performance-based Restricted Stock Units The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $295,000 and $0 for the three months and $768,000 and $0 for nine months ended October 1, 2017, respectively. As of October 1, 2017 and October 2, 2016, there was $2.3 million and $1.3 million, respectively, in unrecognized compensation expense related to RSUs and PRSUs. The remaining unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 3 years. A summary of activity for the Company's RSUs and PRSUs for the nine months ended October 1, 2017 and information regarding RSUs and PRSUs outstanding and expected to vest as of October 1, 2017 is as follows:
| RSUs & PRSUs Outstanding
| Number of Shares |  | Weighted Average Grant Date Fair Value
| (in thousands) |  |
Nonvested at January 1, 2017 | 1,370 |  |  | $ | 1.68 |
Granted | 1,737 |  |  | 1.40 |
Vested | (357 | ) |  | 1.33 |
Forfeited | (240 | ) |  | — |
Nonvested at October 1, 2017 | 2,510 |  |  | $ | 1.55 |
Employee Stock Purchase Plan The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP during the third quarters of 2017 and 2016 was $0.41 and $0.31 per right, respectively. As of October 1, 2017, 1.8 million shares remained available for issuance under the 2009 ESPP. For the three and nine months ended October 1, 2017, the Company recorded stock-based compensation expense related to the 2009 ESPP of $40,000 and $107,000, respectively. The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:
| Three Months Ended |  | Nine Months Ended
| October 1, 2017 |  | October 2, 2016 |  | October 1, 2017 |  | October 2, 2016
Expected term (months) | 6.00 |  |  | 6.08 |  |  | 6.00 |  |  | 6.08 |
Risk-free interest rate | 1.02 | % |  | 0.40 | % |  | 1.02 | % |  | 0.40 | %
Volatility | 49.71 | % |  | 54.31 | % |  | 49.71 | % |  | 54.31 | %
Dividend yield | — |  |  | — |  |  | — |  |  | — |
As of October 1, 2017, the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $19,000 and is expected to be recognized over a weighted average period of approximately 1.5 months.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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