Stock-Based Compensation

9 Months Ended

Sep. 28, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

At September 28, 2016, options to purchase 2,174,348 shares of common stock were outstanding, including 1,648,322 vested and 526,026 unvested. Unvested options vest over time, or upon our achieving annual financial goals. However, upon a change in control, the board may accelerate vesting. At September 28, 2016, 1,605,831 premium options remained outstanding. For the thirteen and thirty-nine weeks ended September 28, 2016, there were exercises of stock options for 32,386 and 147,726 shares, respectively. For the thirteen and thirty-nine weeks ended September 30, 2015, there were exercises of stock options for 18,340 and 863,247 shares, respectively. For the thirteen and thirty-nine weeks ended September 28, 2016, options were granted at the fair market value on the date of grant of 9,875 and 329,673, respectively. No options were granted in the thirteen and thirty-nine weeks ended September 30, 2015.

At September 28, 2016, there were 36,752 unvested restricted shares outstanding. Restricted shares vest over time.

At September 28, 2016, we had total unrecognized compensation expense of $1.8 million, related to unvested stock options and restricted shares, which we expect to recognize over a weighted-average period of 3.0 years.

Total stock-based compensation expense was $105,000 and $244,000 for the thirteen and thirty-nine weeks ended September 28, 2016 and $165,000 and $608,000 for the thirteen and thirty-nine weeks ended September 30, 2015, respectively.