2016 Stock Incentive Plan. In 2016, the Company adopted a stock plan entitled the 2016 Stock Incentive Plan (the “2016 Plan”) and reserved and authorized a total of 4,000,000 shares of common stock for grant thereunder. As of January 3, 2021, 887,171 shares were available for future grant or issuance.

Stock-based compensation expense for the years ended January 3, 2021, December 29, 2019, and December 30, 2018 was $5.2 million, $5.8 million and $5.8 million, respectively. As of January 3, 2021, the total remaining stock-based compensation expense relating to non-vested shares and stock options was approximately $7.7 million and the remaining weighted average vesting period for non-vested shares and stock options was 4.0 years.

During the year ended January 3, 2021, the Company granted 790,000 non-vested shares of common stock to certain employees and officers of the Company and 73,128 non-vested shares to outside directors of the Company. These shares vest over their three-year vesting period, provided the participant has continuously remained an employee, officer, or director of the Company.

On January 15, 2019, the Company granted 417,500 non-vested shares of common stock to certain employees and officers of the Company and 47,470 non-vested shares to outside directors of the Company. These shares vest over their three-year vesting period, provided the participant has continuously remained an employee, officer, or director of the Company. In September of 2019, the Company granted 10,000 non-vested shares of common stock to an interim officer of the Company, which vested in May 2020.

On January 15, 2018, the Company granted 350,000 non-vested shares of common stock to officers of the Company. These shares vest over their three-year vesting period. During 2018 the Company also issued an aggregate of 30,192 non-vested shares of common stock to non-employee directors. The non-vested share awards vest over three years, provided that the participant has continuously remained a director of the Company.


	Shares	Weighted Average Grant Date Price
Non-vested at December 29, 2019	790,823	$	11.35
Granted	863,128	$	5.42
Vested	(416,253)	$	12.07
Forfeited	(69,850)	$	6.24
Non-vested at January 3, 2021	1,167,848	$	7.02

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, 2021, the total non-vested stock-based compensation expense relating to non-vested shares and stock options was approximately $7.7 million and the remaining weighted average vesting period for non-vested shares and stock options was 4.0 years.

During the twelve months ended January 3, 2021, the Company granted in the aggregate options to purchase 1,075,000 shares of its common stock, consisting of 739,340 shares of non-qualified stock options and 335,660 shares of incentive stock options (“ISOs”) to certain employees and officers of the Company. These options become exercisable and are being expensed over their three-year vesting period. The options expire seven years from the date of the grant and were issued with an exercise price equal to the fair market value of the stock price, or $7.12 per share of common stock, on the date of grant.

The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option awards at the grant date:


	2020
Risk-free interest rate	0.21		%
Expected term (in years)	4.5
Expected volatility	65.10		%
Expected dividend yield	—		%
Fair Value	$	3.65

Expected term represents the period that the stock option awards were expected to be outstanding. Given the Company has not issued stock options since 2010, it concluded that its stock option exercise history did not provide a reasonable basis upon which to estimate expected term and therefore used the simplified method to determine the expected term of this stock option grant. This method bases the expected term calculation on the average of the vesting term and the contractual term of the awards. The risk-free interest rate was based on the yield of constant maturity U.S. treasury bonds with a remaining term equal to the expected term of the awards. There was no

expected dividend yield. The Company estimated the stock price volatility using weekly price observations over the most recent historical period equal to the expected life of the awards.


	Options	Weighted Average Exercise Price		Average Remaining Contractual Life	Aggregate Intrinsic Value (1)
Options outstanding at December 29, 2019	—
Granted	1,075,000	$	7.12

Forfeited	(25,000)	$	7.12
Options Outstanding at January 3, 2021	1,050,000	$	7.12	6.6	$	—
Vested or expected to vest at January 3, 2021	1,050,000	$	7.12	6.6	$	—
Options exercisable at January 3, 2021	—

(1) The aggregate intrinsic value is calculated using the difference between the market price of the Company's common stock at January 3, 2021 of $6.28 and the grant date exercise price for only those awards that have a grant date exercise price that is less than the market price of the Company's common stock at January 3, 2021. There were no awards having a grant date exercise price less than the market price of the Company's common stock at January 3, 2021.

The Company has issued restricted stock units (“RSUs”) on shares of the Company's common shares to certain eligible employees. The RSUs generally vest in equal installments over three years. During the twelve months ended January 3, 2021, 20,486 RSUs vested into shares of the Company's common stock at a weighted average price of $2.92 per share.

A summary of all RSU activity for the year ended January 3, 2021 was as follows:


			Units
Non-vested at December 29, 2019			57,942

Vested			(20,486)

Non-vested at January 3, 2021			37,456