Stockholders’ Equity

Stock-Based Compensation

The following table summarizes stock-based compensation in our accompanying condensed consolidated statements of operations (in thousands). During the three and six months ended June 29, 2019, we recorded an additional $3.9 million of stock compensation associated with the wind down of our Figure 8 business in research and development expense on the accompanying condensed consolidated statements of operations. Please refer to Note 5 for further information.



	Three Months Ended				Six Months Ended
	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018

Cost of revenue	$	112	$	68	$	210	$	132
Selling and marketing	637		722		1,272		1,196
Research and development	5,144		1,220		6,560		2,029
General and administrative	1,389		2,978		3,294		5,343
Total stock-based compensation	$	7,282	$	4,988	$	11,336	$	8,700

Pursuant to our 2014 Incentive Award Plan (the “2014 Plan”), during the six months ended June 29, 2019, we granted 0.8 million time-based restricted stock units (“RSUs”) to certain employees, advisors and directors, and 0.3 million performance-based RSUs (“PSUs”) to certain members of management and advisors.

In the first half of fiscal 2019, we granted 0.3 million PSUs. The number of PSUs that become eligible to vest for each recipient will be determined in the first quarter of 2020 based upon our level of achievement of certain financial targets for fiscal 2019. To the extent any PSUs become eligible to vest, they generally will vest over a two-year period, retroactive to March 2019, as continued services are performed. PSUs granted in 2018 and 2017 are vesting over a two-year and three-year period, respectively, retroactive to the grant date of the applicable award. We are recognizing expense using the graded-vesting method based on our estimate of the number of PSUs that will vest. If there is a change in the estimate of the number of PSUs that are probable of vesting, we will cumulatively adjust compensation expense in the period that the change in estimate is made.

RSUs and PSUs are not included in issued and outstanding common stock until the shares are vested and released. The grant-date fair value of an RSU and PSU is measured based on the market price of the underlying common stock as of the date of grant, reduced by the purchase price of $0.001 per share, which is the per share par value of our common stock. The weighted-average grant-date fair value per vested shares of RSUs and PSUs and the total fair value of vested shares from RSU and PSU grants was $13.52 and $5.2 million, respectively, for the six months ended June 29, 2019. The weighted-average grant-date fair value per share of vested shares of RSUs and PSUs and total fair value of per share of vested shares from RSU and PSU grants were $9.60 and $3.5 million, respectively, for the six months ended June 30, 2018.

During the six months ended June 30, 2018, we granted 0.1 million stock options to certain employees and directors with a weighted average exercise price per share of $17.44. We did not grant any stock options during the six months ended June 29, 2019.

A summary of stock option, RSU and PSU activity for the six months ended June 29, 2019 was as follows (in thousands for shares and intrinsic value):



								Restricted Stock Units
	Shares		Weighted-Average Remaining Contractual Term (Years)	Weighted-Average Exercise Price		Aggregate Intrinsic Value		Shares		Weighted-Average Grant Date Fair Value

Outstanding as of December 29, 2018	3,524		5.84	$	9.13	$	37,477	2,123		$	15.40
Granted⁽¹⁾	—			$	—			1,114		$	20.25
Settled (RSUs and PSUs)	—							(384	)	$	13.52
Exercised	(292	)		$	5.80
Canceled and forfeited	(43	)		$	10.69			(441	)	$	18.34
Outstanding as of June 29, 2019	3,189		5.55	$	9.41	$	10,374	2,412		$	17.40
Vested and exercisable as of June 29, 2019	2,447		4.90	$	8.51	$	9,559	N/A		N/A

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(1) For RSUs, includes time-based and performance-based

Aggregate intrinsic value represents the difference between the closing price of our common stock and the exercise price of outstanding, in-the-money options. The closing price of our common stock as reported on the New York Stock Exchange as of June 28, 2019, the final trading day of the six months ended June 29, 2019, was $10.98. The total intrinsic value of options exercised and RSUs and PSUs vested was approximately $10.8 million and $12.8 million for the six months ended June 29, 2019 and June 30, 2018, respectively. The aggregate fair value of the options that vested during the six months ended June 29, 2019 and June 30, 2018 was $1.2 million and $1.2 million, respectively.

As of June 29, 2019, total unrecognized compensation cost related to non-vested stock options and RSUs, including PSUs and market-based RSUs, was approximately $3.2 million and $23.1 million, respectively, which is expected to be recognized over a weighted-average period of 1.6 years and 2.2 years, respectively, to the extent they are probable of vesting. As of June 29, 2019, we had 3.4 million shares available for grant under the 2014 Plan.

Common Stock

As of June 29, 2019, we had reserved the following shares of common stock for future issuance in connection with the following (in thousands):



	June 29, 2019
Options issued and outstanding	3,189
Restricted stock units issued and outstanding	2,412
Common stock available for stock-based award grants under incentive award plans	3,411
Common stock available for conversion of Series A Redeemable Convertible Preferred Stock	5,183
Total	14,195