Share Based Compensation

9 Months Ended

Oct. 01, 2011

Share Based Compensation

Share Based Compensation

8. Share Based Compensation

Total share based compensation expense for the three and nine month periods ended October 1, 2011 was approximately $0.1 million and $0.4 million, respectively. This includes compensation expense related to both stock options and stock awards. The tax benefit recorded for these same periods was approximately $16,000 and $48,000. The tax benefit is offset against our valuation allowance for our deferred tax asset.

As a result of changes in our senior leadership personnel, we recorded a reversal of equity-based compensation expense for the three- and nine-month periods ended October 2, 2010 of approximately $0.1 million and $33,000, respectively. This includes compensation expense related to both stock options and stock awards, and the reversal of compensation expense related to the forfeiture of unvested stock options in excess of original estimates. The reduction in tax benefit recorded for third quarter of fiscal 2010 was approximately $5,000 and the tax benefit recorded for the nine-month period ended October 2, 2010 was approximately $10,000. The tax benefit is offset against our valuation allowance for our deferred tax asset.

No stock options were exercised during the periods ended October 1, 2011 and October 2, 2010. As of October 1, 2011, there was approximately $0.3 million of unrecognized share based compensation expense related to unvested stock options and awards that are expected to vest over a weighted-average period of 1.4 years. Options to purchase approximately 448,000 and 348,000 shares of common stock were outstanding at October 1, 2011 and October 2, 2010, respectively.

During the three and nine month periods ended October 1, 2011 and October 2, 2010, we granted equity compensation awards as follows:

	Three Months Ended
	October 1, 2011			October 2, 2010
	Grants	Weighted- Average Grant Date Fair Value		Grants	Weighted- Average Grant Date Fair Value
Stock Options	20,000	$	1.99	—	$	—
Stock Awards	20,000	$	3.10	—	$	—

	Nine Months Ended
	October 1, 2011			October 2, 2010
	Grants	Weighted- Average Grant Date Fair Value		Grants	Weighted- Average Grant Date Fair Value
Stock Options	130,050	$	2.62	86,800	$	1.73
Stock Awards	122,450	$	4.19	1,200	$	3.36