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STOCK OPTIONS | 12 Months Ended
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Oct. 02, 2021
Share-based Payment Arrangement [Abstract] |
STOCK OPTIONS | STOCK OPTIONS The Company has options outstanding under two stock option plans: the 2010 Stock Option Plan (the “2010 Plan”) and the 2016 Stock Option Plan (the “2016 Plan”). Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire ten years after the date of grant. During the year ended October 2, 2021, options to purchase 110,500 shares of common stock at an exercise price of $10.65 per share were granted to employees and directors of the Company (the "2021 Grant"). Such options are exercisable as to 50% of the shares commencing on the second anniversary of the date of grant and as to 50% on the fourth anniversary of the date of grant. The grant date fair value of these stock options was $2.22 per share and totaled approximately $246,000. During the year ended October 3, 2020, options to purchase 266,500 shares of common stock at an exercise price of $21.90 per share were granted to employees, directors of the Company and other service providers. Such options are exercisable as to 50% of the shares commencing on the second anniversary of the date of grant and as to the remaining 50% commencing on the fourth anniversary of the date of grant. The grant date fair value of these stock options was $3.35 per share and totaled approximately $894,000. The Company generally issues new shares upon the exercise of employee stock options. The fair value of each of the Company’s stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of the Company’s stock, the expected life of the options and the risk-free interest rate. The assumptions used for the 2021 Grant include a risk-free interest rate of 0.86%, volatility of 37.1%, a dividend yield of 3.0% and an expected life of 10 years. The assumptions used for the 2020 grants include a risk-free interest rate of 1.54%, volatility of 30.3%, a dividend yield of 5.2% and an expected life of 10 years. The following table summarizes stock option activity under all plans:
| 2021 |  | 2020
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Contractual Term |  | Aggregate Intrinsic Value |  | Shares |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value
Outstanding, beginning of period | 626,500 |  |  | $ | 20.41 |  |  | 6.1 years |  |  |  | 363,500 |  |  | $ | 19.25 |  |  |
Options: |  |  |  |  |  |  |  |  |  |  |  |  |
Granted | 110,750 |  |  | $ | 10.65 |  |  |  |  |  |  | 266,500 |  |  | $ | 21.90 |  |  |
Exercised | (49,149) |  |  | $ | 14.40 |  |  |  |  |  |  | (3,500) |  |  | $ | 14.40 |  |  |
Canceled or expired | (91,625) |  |  | $ | 19.64 |  |  |  |  |  |  | — |  |  |  |  |
Outstanding and expected to vest, end of period | 596,476 |  |  | $ | 19.21 |  |  | 6.3 years |  | $ | 583,000 |  |  | 626,500 |  |  | $ | 20.41 |  |  | $ | — |
Exercisable, end of period | 246,976 |  |  | $ | 20.33 |  |  | 3.1 years |  | $ | 61,000 |  |  | 351,750 |  |  | $ | 19.28 |  |  | $ | — |
Shares available for future grant | 63,750 |  |  |  |  |  |  |  |  | 174,500 |  |  |  |  |
Compensation cost charged to operations for the years ended October 2, 2021 and October 3, 2020 for share-based compensation programs was approximately $280,000 and $176,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the consolidated statements of operations. As of October 2, 2021, there was approximately $737,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of three years. The following table summarizes information about stock options outstanding as of October 2, 2021:
|  |  |  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining contractual life (in years) |  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining contractual life (in years)
$10.65 |  | 107,500 |  |  | $ | 10.65 |  |  | 9.1 |  | — |  |  | $ | 10.65 |  |  | 9.1
$14.40 |  | 55,851 |  |  | $ | 14.40 |  |  | 0.7 |  | 55,851 |  |  | $ | 14.40 |  |  | 0.7
$21.90 |  | 236,500 |  |  | $ | 21.90 |  |  | 8.4 |  | — |  |  | $ | 21.90 |  |  | 8.4
$22.50 |  | 142,625 |  |  | $ | 22.50 |  |  | 2.7 |  | 142,625 |  |  | $ | 22.50 |  |  | 2.7
$19.61 | - | $22.30 |  | 54,000 |  |  | $ | 20.69 |  |  | 7.2 |  | 48,500 |  |  | $ | 20.81 |  |  | 7.2
|  |  |  | 596,476 |  |  | $ | 19.21 |  |  | 6.3 |  | 246,976 |  |  | $ | 20.33 |  |  | 3.1
The Company also maintains a Section 162(m) Cash Bonus Plan. Under the Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer, or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) is not tax deductible.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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