The Company maintains a 2018 Equity Incentive Plan which provides for the issuance of up to 416,667 shares of common stock upon the exercise of options, stock awards and grants. With the adoption of the 2018 Equity Incentive Plan, no further awards will be issued under the Company’s 2005 Equity Incentive Plan, though all awards under the 2005 Equity Incentive Plan that are outstanding continue to be governed by the terms, conditions and procedures set forth in the plan and any applicable award agreement.

During the first quarter of fiscal year 2023, the Company did not grant any stock options. The vested portion of all option grants may be exercised only while the grantee is employed by the Company (or while providing services under a service arrangement in the case of non-employees) or within a certain period after termination of employment or service arrangement in the case of non-employees. Options granted to employees shall not have terms in excess of 10 years from the grant date. Holders of options may be granted stock appreciation rights (“SARs”), which entitle them to surrender outstanding awards for a cash distribution under certain changes in ownership of the Company, as defined in the stock option plan. As of June 25, 2022, and March 26, 2022, no SARs have been granted under any option plan.

As of June 25, 2022, there were 91,114 shares of common stock available for issuance of additional awards under the 2018 Equity Incentive Plan. The Company records compensation cost associated with stock-based compensation equivalent to the estimated fair value of the awards over the requisite service period.

In calculating compensation related to stock option grants, the fair value of each stock option was estimated on the date of grant using the Black-Scholes-Merton model and the following weighted average assumptions:


Description	Three Months Ended
	June 25, 2022			June 26, 2021
Dividend yield		—			—
Expected volatility		—	%		107.00	%
Risk-free interest rate		—	%		0.82	%
Expected term (years)		—			5.50

The computation of expected volatility used in the Black-Scholes-Merton model is based on the historical volatility of the Company’s share price. The expected term is estimated based on a review of historical employee exercise behavior with respect to option grants. The risk-free interest rate is based on the U.S. Treasury rates with maturity similar to the expected term of the option on the date of grant. No options were granted during for three month period ended June 25, 2022.

A summary of the changes in stock options outstanding for the three months period ended June 25, 2022 is as follows:


Description	Shares			Weighted Average Price per share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at March 26, 2022		353,037		$	4.75		7.26	$	—
Forfeited / Expired		(17,836	)		5.22		—		—
Outstanding at June 25, 2022		335,201		$	4.73		7.01	$	—

Exercisable at June 25, 2022		285,028		$	4.85		6.79	$	—

Expected to vest in the future		50,173		$	4.03		8.23	$	—

As of June 25, 2022, there was $341,000 of total unrecognized compensation cost related to non-vested options. The cost is expected to be recognized over a weighted average period of 2.19 years and will be adjusted as forfeitures occur. There were no options exercised in the three-month periods ended June 25, 2022 and June 26, 2021. Share based compensation cost related to stock options recognized in operating results for the three months ended June 25, 2022 and June 26, 2021 totaled $31,000 and $129,000, respectively.

The Company granted 10,000 Restricted Stock Awards (“RSAs”) during the first quarter of fiscal 2023 and 0 RSAs during the first quarter of fiscal 2022. RSAs are considered fixed awards as the number of shares and fair value at the grant date is amortized over the requisite service period and will be adjusted as forfeitures occur.

As of June 25, 2022, there was $41,000 of total unrecognized compensation cost related to non-vested RSAs. That cost is expected to be recognized over a weighted average period of 1.08 years and will be adjusted for subsequent changes in estimated forfeitures. Compensation cost recognized for RSAs for the three months ended June 25, 2022 and June 26, 2021 totaled $21,000 and $26,000, respectively.

A summary of the changes in non-vested RSAs outstanding for the three month period ended June 25, 2022 is as follows:


Restricted Stock Awards	Shares		Weighted Average Grant Date Fair Value
Non-vested at March 26, 2022		20,020	$	3.65
Granted		10,000		1.75
Non-vested at June 25, 2022		30,020	$	3.02