Stock-Based Compensation

3 Months Ended

Mar. 28, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

At March 28, 2018, options to purchase 2,225,251 shares of common stock were outstanding, including 1,909,440 vested and 315,811 unvested. Unvested options vest over time. However, upon a change in control, the board may accelerate vesting. At March 28, 2018, 1,599,944 premium options, options granted above the stock price at date of grant, remained outstanding. There were no stock option exercises during the thirteen weeks ended March 28, 2018 and March 29, 2017. For the thirteen weeks ended March 28, 2018 and March 29, 2017, there were no stock options granted. At March 28, 2018, the Company had total unrecognized compensation expense of $0.9 million related to unvested stock options, which it expects to recognize over a weighted-average period of 2.5 years.

For the thirteen weeks ended March 28, 2018 and March 29, 2017, there were no restricted shares granted. At March 28, 2018, there were 170,830 unvested restricted shares outstanding. At March 28, 2018, the Company had total unrecognized compensation expense of $1.8 million related to unvested restricted shares, which it expects to recognize over a weighted-average period of 2.9 years.

In connection with the retirement of our former President and CEO, the Company has modified previously granted equity awards to accelerate the vesting of 33,545 shares, which would have otherwise vested in May 2018, and extended the exercise ability of all his vested and outstanding options until the expiration of the original term of such options. As a result, the Company incurred incremental stock-based compensation expense of $0.5 million for the thirteen weeks ended March 28, 2018. Total stock-based compensation expense was $0.5 million for the thirteen weeks ended March 28, 2018 and $0.1 million for the thirteen weeks ended March 29, 2017.