Share Based Compensation

6 Months Ended

Jun. 29, 2013

Share Based Compensation

Share Based Compensation

6. Share Based Compensation

Total share based compensation expense for the first six months of fiscal years 2013 and 2012 was approximately $0.2 million and $0.2 million, respectively, and includes compensation expense related to both stock options and stock awards.

In the first six months of 2013, we recorded a reduction of the tax benefit of approximately $18,000 related to the share based compensation and for the first six months of fiscal 2012, we recorded a tax benefit of $1,000. The tax benefit is offset against our valuation allowance for our deferred tax asset.

Stock Options

The following table summarizes the stock option activity for the six months ended June 29, 2013:

	Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding on December 29, 2012	335,650		$	5.31	7.26	$	34,124
Granted	8,800		3.24
Exercised	—		—
Forfeited/Cancelled	(15,000	)	9.79
Outstanding on June 29, 2013	329,450		$	5.05	6.95	$	80,926
Vested or expected to vest at June 29, 2013	315,378		5.08		6.87	$	79,051
Exercisable on June 29, 2013	244,099		5.24		6.41	$	68,349

The total fair value of the stock options that vested during the six months ended June 29, 2013 was approximately $0.1 million.

For the six month period ended June 29, 2013, no options were exercised. For the six month period ended June 30, 2012, 13,250 options were exercised and the total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) was approximately $30,000.

Total stock option expense for the six months ended June 29, 2013 and June 30, 2012 was approximately $0.1 million and $0.1 million, respectively.

As of June 29, 2013, there was approximately $0.1 million of unrecognized share based compensation expense related to unvested stock options that are expected to vest over a weighted-average period of approximately 1.1 years. Options to purchase 329,450 shares were outstanding at June 29, 2013.

Stock Awards

The following table summarizes the stock award activity for the six months ended June 29, 2013:

	Shares		Weighted Average Grant Date Fair Value
Non-vested at December 29, 2012	98,753		$	4.78
Granted	1,200		3.24
Vested	(31,511	)	(4.75		)
Forfeited	(5,000	)	(5.01		)
Non-vested at June 29, 2013	63,442		$	4.74

The total fair value of stock awards that vested during the six months ended June 29, 2013 was approximately $0.1 million.

Total stock award expense for the six months ended June 29, 2013 was $0.1 million.

As of June 29, 2013, there was $0.1 million of unrecognized compensation expense related to unvested stock awards that were expected to vest over a weighted average period of 1.0 years.