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Note 10 - Stock-based Compensation | 9 Months Ended
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Sep. 27, 2020
Notes to Financial Statements |
Share-based Payment Arrangement [Text Block] | Note 10 — Stock-Based Compensation Stock-based compensation expense included in the Company's consolidated financial statements for the three and nine months ended September 27, 2020 and September 29, 2019 was as follows (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 27, |  |  | September 29, |  |  | September 27, |  |  | September 29, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Cost of revenue |  | $ | 37 |  |  | $ | 15 |  |  | $ | 80 |  |  | $ | 59 |
Research and development |  |  | 51 |  |  |  | 521 |  |  |  | 73 |  |  |  | 1,708 |
Selling, general and administrative |  |  | 170 |  |  |  | 212 |  |  |  | 448 |  |  |  | 723 |
Total |  | $ | 258 |  |  | $ | 748 |  |  | $ | 601 |  |  | $ | 2,490 |
During the nine months ended September 27, 2020, the Company reversed stock-based compensation expense related to the cancellation of certain unvested performance based RSUs and restructuring-related terminations. During the second quarter of 2020, the Company issued fully vested RSUs in lieu of cash for variable compensation to certain employees. No stock-based compensation was capitalized during any period presented above. No stock options were granted during the three and nine months ended September 27, 2020 and September 29, 2019. Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2019 Plan during the nine months ended September 27, 2020 (in thousands):
|  | Shares Available for Grants |
|  | 2020 Plan |
Balance at December 29, 2019 |  |  | 272 |
Authorized shares |  |  | 550 |
RSUs granted |  |  | (356 | )
PRSU's granted |  |  | (440 | )
Options cancelled |  |  | 50 |
RSUs forfeited or expired |  |  | 168 |
PRSUs forfeited or expired |  |  | 43 |
Balance at September 27, 2020 |  |  | 287 |
Stock Options The following table summarizes stock options outstanding and stock option activity under the 2009 Plan and the 2019 Plan, and the related weighted average exercise price, for the nine months ended September 27, 2020:
|  |  |  |  |  | Weighted |  |  | Weighted |  |  |  |  |
|  |  |  |  |  | Average |  |  | Average |  |  | Aggregate |
|  | Number of |  |  | Exercise |  |  | Remaining |  |  | Intrinsic |
|  | Shares |  |  | Price |  |  | Term |  |  | Value |
|  | (in thousands) |  |  |  |  |  |  | (in years) |  |  | (in thousands) |
Balance outstanding at December 29, 2019 |  |  | 186 |  |  | $ | 32.09 |  |  |  | 3.32 |  |  |  | — |
Forfeited or expired |  |  | (50 | ) |  |  | — |  |  |  |  |  |  |  |  |
Exercised |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Balance outstanding at September 27, 2020 |  |  | 136 |  |  | $ | 29.37 |  |  |  | 3.60 |  |  | $ | — |
Exercisable at September 27, 2020 |  |  | 136 |  |  | $ | 29.37 |  |  |  | 3.60 |  |  | $ | — |
Vested and expected to vest at September 27, 2020 |  |  | 136 |  |  | $ | 29.37 |  |  |  | 3.60 |  |  | $ | — |
There was no intrinsic value for the stock options based on the Company’s closing stock price of $3.12 per share as of September 27, 2020, which would have been received by the option holders had all option holders exercised their options as of that date. There were no stock options exercises for the three and nine months ended September 27, 2020. The total intrinsic value of options exercised during the three and nine months ended September 27, 2020 was $0. Total cash received from employees as a result of employee stock option exercises during the nine months ended September 29, 2019 was $3,600. 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 approximately $11,000 and $24,000 for the three months ended September 27, 2020 and September 29, 2019, respectively, and $39,000 and $73,000 for the nine months ended September 27, 2020 and September 29, 2019, respectively. As of September 27, 2020, the fair value of unvested stock options, net of forfeitures, was $0. Restricted Stock Units The Company grants restricted stock units (“RSUs”) and performance restricted stock units ("PRSUs") to employees and directors with various vesting terms. 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 was approximately $231,000 and $724,000 for the three months ended September 27, 2020 and September 29, 2019 and $538,000 and $2.4 million for the nine months ended September 27, 2020 and September 29, 2019, respectively. As of September 27, 2020 and September 29, 2019, there was approximately $1.2 million and $2.7 million, respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 0.59 year. A summary of activity for the Company's RSUs for the nine months ended September 27, 2020 is as follows:
|  | RSUs & PRSUs Outstanding |
|  |  |  |  |  | Weighted |
|  |  |  |  |  | Average |
|  | Number of |  |  | Grant Date |
|  | Shares |  |  | Fair Value |
|  | (in thousands) |  |  |  |  |
Nonvested at December 29, 2019 |  |  | 377 |  |  | $ | 12.55 |
Granted |  |  | 796 |  |  | $ | 3.99 |
Vested |  |  | (137 | ) |  | $ | 10.59 |
Forfeited |  |  | (210 | ) |  | $ | — |
Nonvested at September 27, 2020 |  |  | 826 |  |  | $ | 6.24 |
2009 Employee Stock Purchase Plan As of September 27, 2020, 362,335 shares remained available for issuance under the 2009 ESPP. For the three months ended September 27, 2020 and September 29, 2019, the Company recorded stock-based compensation expense related to the 2009 ESPP of approximately $16,000 and $0, respectively. For the nine months ended September 27, 2020 and September 29, 2019, the Company recorded stock-based compensation expense related to the 2009 ESPP of $24,000 and $60,000, respectively. 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 quarter ended September 27, 2020 and September 29, 2019, was $1.83 and $0, respectively, per right, 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 |
|  | September 27, |  |  | September 29, |  |  | September 27, |  |  | September 29, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Expected term (months) |  |  | — |  |  |  | — |  |  |  | 6.08 |  |  |  | 6.00 |
Risk-free interest rate |  |  | — |  |  |  | — |  |  |  | 0.15 | % |  |  | 2.40 | %
Volatility |  |  | — |  |  |  | — |  |  |  | 88.35 | % |  |  | 53.77 | %
Dividend yield |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
As of September 27, 2020, there was $9,000 an unrecognized stock-based compensation expense relating to the Company's 2009 ESPP, which is expected to be recognized over a period of 1.7 months.

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