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Note 10 - Stock-based Compensation

9 Months Ended

Sep. 29, 2024

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 29, 2024 and October 1, 2023 was as follows (in thousands):

		*Three Months Ended*								*Nine Months Ended*
		*September 29, 2024*				*October 1, 2023*				*September 29, 2024*				*October 1, 2023*
Cost of revenue		$	180			$	73			$	505			$	239
Research and development			323				171				877				513
Selling, general and administrative			645				372				2,131				1,165
Total		$	1,148			$	616			$	3,513			$	1,917

The Company capitalized certain stock-based compensation amounts to capitalized internal-use software and tooling, net of ($27 thousand) and $124 thousand for the three and nine months ended September 29, 2024, respectively and $48 thousand and $109 thousand for the three and nine months ended October 1, 2023, respectively. The capitalized stock-based compensation amounts relate to compensation for employees involved in the development of capitalized internal-use software and tooling.

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 29, 2024 (in thousands):

		*Shares Available for Grants*
Balance at December 31, 2023			595
Restricted stock units (RSUs) granted			(596	)
PSUs/RSUs forfeited or expired			51
Options expired			6
Balance at September 29, 2024			56

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 29, 2024:

						*Weighted*				*Weighted*
						*Average*				*Average*				*Aggregate*
		*Number of*				*Exercise*				*Remaining*				*Intrinsic*
		*Shares*				*Price*				*Term*				*Value*
		(in thousands)								(in years)				(in thousands)
Balance outstanding at December 31, 2023			60			$	19.45
Forfeited or expired			(6	)		$	51.19
Balance outstanding, exercisable, and vested at September 29, 2024			54			$	15.64				1.76			$	—

No stock options were granted or exercised during the nine months ended September 29, 2024 and October 1, 2023. Stock options equivalent to 6 thousand and 2 thousand shares expired during the nine months ended September 29, 2024 and October 1, 2023.

Total stock-based compensation related to stock options was $0 during the nine months ended September 29, 2024 and October 1, 2023.

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 expense related to RSUs and PRSUs were approximately $1.1 million and $3.4 million for the three and nine months ended September 29, 2024, respectively and $0.6 million and $1.8 million, for the three and nine months ended October 1, 2023, respectively.

As of September 29, 2024 and October 1, 2023, there was approximately $3.8 million and $3.7 million, respectively, in unrecognized stock-based compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of September 29, 2024 is expected to be recorded over a weighted average period of 1.19 years.

A summary of activity for the Company's RSUs and PRSUs for the nine months ended September 29, 2024 is as follows:

		*RSUs & PRSUs Outstanding*
						*Weighted*
						*Average*
		*Number of*				*Grant Date*
		*Shares*				*Fair Value*
		(in thousands)
Nonvested at December 31, 2023			589			$	7.35
Granted			596				9.68
Vested and released			(332	)			9.39
Forfeited			(51	)			13.13
Nonvested at September 29, 2024			802			$	7.87

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $32 thousand and $73 thousand for the three and nine months ended September 29, 2024, respectively and $25 thousand and $100 thousand, for the three and nine months ended October 1, 2023, respectively.