Stock-Based Compensation

9 Months Ended

Sep. 28, 2022

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

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

At September 28, 2022, options to purchase 1,181,944 shares of common stock were outstanding, including 659,861 vested and 522,083 unvested. Unvested options vest over time; however, upon a change in control, the Board of Directors may accelerate vesting. At September 28, 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 September 28, 2022 and changes during the thirty-nine weeks ended September 28, 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	(18,617)	$	15.86
Outstanding - September 28, 2022	1,181,944	$	11.21		6.06	$	742
Vested and expected to vest at September 28, 2022	1,172,082	$	11.21		6.03	$	742
Exercisable at September 28, 2022	659,861	$	10.50		3.58	$	742

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 28, 2022		September 29, 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 September 28, 2022, the Company had total unrecognized compensation expense of $2.5 million related to unvested stock options, which it expects to recognize over a weighted-average period of 3.20 years.

A summary of restricted share activity as of September 28, 2022 and changes during the thirty-nine weeks ended September 28, 2022 is as follows:

		Weighted-Average
	Shares	Fair Value
Unvested shares at December 29, 2021	495,780	$	13.92
Granted	352,114	$	10.36
Released	(180,696)	$	13.10
Forfeited, cancelled, or expired	(27,931)	$	14.01
Unvested shares at September 28, 2022	639,267	$	12.19

At September 28, 2022, the Company had unrecognized compensation expense of $6.4 million related to unvested restricted shares, which it expects to recognize over a weighted-average period of 2.76 years.

Total stock-based compensation expense was $1.0 million and $2.8 million for the thirteen and thirty-nine weeks ended September 28, 2022, respectively, and $1.0 million and $2.9 million for the thirteen and thirty-nine weeks ended September 29, 2021.