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Stock-Based Compensation
6 Months Ended
Jul. 04, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

(11)

Stock-based compensation

Stock-based compensation for the fiscal quarter and six months ended July 4, 2021 and June 28, 2020 are presented in the unaudited consolidated statements of operations in the following captions:

 

 

Fiscal Quarter Ended

 

 

Fiscal Six Months Ended

 

 

 

July 4, 2021

 

 

June 28, 2020

 

 

July 4, 2021

 

 

June 28, 2020

 

Cost of revenue

 

$

0.1

 

 

$

0.3

 

 

$

0.3

 

 

$

0.4

 

Selling, marketing and administrative expenses

 

 

10.7

 

 

 

1.8

 

 

 

14.0

 

 

 

3.3

 

Research and development expense

 

 

0.1

 

 

 

0.1

 

 

 

0.3

 

 

 

0.1

 

Total stock-based compensation

 

$

11.0

 

 

$

2.2

 

 

$

14.5

 

 

$

3.8

 

On May 3, 2021, the Board of Directors approved the modifications to the vesting of restricted stock and Liquidity Event option awards held by certain current and former members of management. The modification of restricted stock pertained to an award originally granted to a current member of management, for which the original vesting pattern was on a cliff-vesting basis over a three-year period. Upon modification, the vesting for 50% of the award was accelerated to six months from the date of the Company’s IPO. The result of the modification was an additional $1.4 million of stock-based compensation expense recorded for the fiscal quarter ended July 4, 2021. There was no modification to the vesting conditions for the remaining 50% of the award and no additional shares granted as a result of the modification. The total compensation cost relating to unvested shares not yet recognized for this award as of the quarter ended July 4, 2021 was $1.3 million. The unrecognized expense will be recognized over a period of 1.2 years. The other modification related to an award granted to a former member of management for which the original vesting was contingent on a certain liquidity event as defined by the option agreement. The modification changed the vesting for the award such that the entirety of the award vested on the date the modification was approved by the Board of Directors. The modification resulted in an additional $4.6 million of stock-based compensation expense recorded for the fiscal quarter ended July 4, 2021. The additional expense related to both award modifications is recorded as a component of Selling, marketing and administrative expenses.