Stock-Based Compensation

9 Months Ended

Sep. 29, 2021

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

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

At September 29, 2021, options to purchase 1,112,730 shares of common stock were outstanding, including 698,329 vested and 414,401 unvested. Unvested options vest over time; however, upon a change in control, the Board of Directors may accelerate vesting. At September 29, 2021, 212,196 premium options, which are options granted above the stock price at date of grant, remained outstanding. A summary of stock option activity as of September 29, 2021 and changes during the thirty-nine weeks ended September 29, 2021 is as follows:

				Weighted-Average		Aggregate
		Weighted-Average		Contractual Life		Intrinsic Value
	Shares	Exercise Price		Life (Years)		(in thousands)
Outstanding - December 30, 2020	1,030,866	$	9.82
Grants	256,172		17.55
Exercised	(132,760)		6.52
Forfeited, cancelled or expired	(41,548)	$	15.99
Outstanding - September 29, 2021	1,112,730	$	11.76		6.05	$	6,104
Vested and expected to vest at September 29, 2021	1,106,140	$	11.73		6.04	$	6,093
Exercisable at September 29, 2021	698,329	$	10.01		4.56	$	4,999

The fair value of each stock option was estimated on the grant date using an exercise price of the closing stock price on the day prior to date of grant and the Black-Scholes option-pricing model with the following weighted average assumptions:

	September 29, 2021		September 23, 2020
Expected volatility	46.9	%	—	%
Risk-free interest rate	1.1	%	—	%
Expected term (years)	6.25		—
Expected dividends	—		—

At September 29, 2021, the Company had total unrecognized compensation expense of $2.2 million related to unvested stock options, which it expects to recognize over a weighted-average period of 3.03 years.

A summary of restricted share activity as of September 29, 2021 and changes during the thirty-nine weeks ended September 29, 2021 is as follows:

		Weighted-Average
	Shares	Fair Value
Unvested shares at December 30, 2020	742,404	$	11.68
Granted	182,059	$	17.55
Released	(245,828)	$	11.96
Forfeited, cancelled, or expired	(50,532)	$	13.93
Unvested shares at September 29, 2021	628,103	$	13.09

Unvested shares at September 29, 2021 included 568,006 unvested restricted shares, 36,058 unvested performance stock units and 24,039 unvested restricted units.

At September 29, 2021, the Company had unrecognized compensation expense of $6.6 million related to unvested restricted shares, which it expects to recognize over a weighted-average period of 2.66 years, unrecognized compensation expense of $0.1 million related to unvested performance stock units, which it expects to recognize over a weighted-average period of 1.61 years, and unrecognized compensation expense of $0.2 million related to unvested restricted units, which it expects to recognize over a weighted-average period of 0.61 years.

Total stock-based compensation expense was $1.0 million and $2.9 million for the thirteen and thirty-nine weeks ended September 29, 2021, respectively, and $0.9 million and $2.2 million for the thirteen and thirty-nine weeks ended September 23, 2020, respectively.