Stock-Based Compensation

12 Months Ended

Jan. 03, 2016

2006 Stock Incentive Plan. In 2006, the Company adopted a stock plan entitled the 2006 Stock Incentive Plan, as amended, (the “2006 Plan”) and reserved and authorized a total of 3,300,000 shares of common stock for grant thereunder. On June 9, 2011, the stockholders approved an amendment to the 2006 Plan increasing the number of shares of common stock available for issuance by an additional 1,000,000 shares. As of January 3, 2016, 1,842,167 shares were available for future grant or issuance.

On January 15, 2015, the Company granted 274,200 non-vested shares of stock to officers of the Company. These shares vest and become non-forfeitable 25% per year and are being expensed over their four-year vesting period. In addition, during 2015 the Company issued an aggregate of 21,541 non-vested shares of common stock to non-employee directors. The non-vested stock awards vest over five years at the rate of 20% on each anniversary date of the award, provided that the participant has continuously remained a director of the Company.

Stock-based compensation expense for the years ended January 3, 2016, December 28, 2014, and December 29, 2013 was $1.4 million, $1.2 million and $1.2 million, respectively.

A summary of all non-vested share activity for the year ended January 3, 2016 was as follows:



	Shares	Weighted Average Grant Date Price
Non-vested at December 28, 2014	395,427	$	6.68
Granted	295,741	8.22
Vested	(212,650)	7.26
Forfeited	(9,748)	6.21
Non-vested at January 3, 2016	468,770	7.40

The fair value of the non-vested shares is based on the closing price of the Company's common stock on the date of grant. As of January 3, 2016, total non-vested stock-based compensation expense was approximately $2.5 million and the remaining weighted average vesting period for non-vested shares was 2.3 years.