Stock-Based Compensation

6 Months Ended

Jun. 29, 2022

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

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

At June 29, 2022, options to purchase 1,183,873 shares of common stock were outstanding, including 628,053 vested and 555,820 unvested. Unvested options vest over time; however, upon a change in control, the Board of Directors may accelerate vesting. At June 29, 2022, 203,569 premium options, which are options granted above the stock price at date

of grant, remained outstanding. A summary of stock option activity as of June 29, 2022 and changes during the twenty-six weeks ended June 29, 2022 is as follows:

				Weighted-Average		Aggregate
		Weighted-Average		Contractual Life		Intrinsic Value
	Shares	Exercise Price		Life (Years)		(in thousands)
Outstanding - December 29, 2021	978,078	$	11.45
Grants	372,958		10.54
Exercised	(150,475)		10.50
Forfeited, cancelled or expired	(16,688)	$	15.67
Outstanding - June 29, 2022	1,183,873	$	11.22		6.28	$	873
Vested and expected to vest at June 29, 2022	1,172,691	$	11.22		6.24	$	873
Exercisable at June 29, 2022	628,053	$	10.48		3.65	$	873

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:

	June 29, 2022		June 30, 2021
Expected volatility	43.0	%	46.9	%
Risk-free interest rate	2.9	%	1.1	%
Expected term (years)	6.25		6.25
Expected dividends	—		—

At June 29, 2022, the Company had total unrecognized compensation expense of $2.7 million related to unvested stock options, which it expects to recognize over a weighted-average period of 3.39 years.

A summary of restricted share activity as of June 29, 2022 and changes during the twenty-six weeks ended June 29, 2022 is as follows:

		Weighted-Average
	Shares	Fair Value
Unvested shares at December 29, 2021	495,780	$	13.92
Granted	298,638	$	10.54
Released	(153,103)	$	13.38
Forfeited, cancelled, or expired	(27,931)	$	14.01
Unvested shares at June 29, 2022	613,384	$	12.41

At June 29, 2022, 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 2.83 years.

Total stock-based compensation expense was $1.0 million and $1.8 million for the thirteen and twenty-six weeks ended June 29, 2022, respectively, and $1.0 million and $1.9 million for the thirteen and twenty-six weeks ended June 30, 2021.