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. On June 18, 2021, at the 2021 Annual Meeting of Stockholders, the Company' stockholders approved the Second Amendment to the 2016 Plan increasing the authorized total by 3,500,000 to 7,500,000 shares of common stock for grant thereunder. On June 16, 2023, at the 2023 Annual Meeting of Stockholders, the Company' stockholders approved an amendment to the 2016 Plan increasing the shares reserved for grant thereunder by 4,500,000 to 12,000,000 shares of common stock for grant thereunder. As of December 31, 2023, 3,323,708 shares were available for future grant or issuance.

Stock-based compensation expense for the years ended December 31, 2023, January 1, 2023, and January 2, 2022 was $5.6 million, $4.9 million and $6.2 million, respectively. As of December 31, 2023, the total remaining stock-based compensation expense relating to time-based non-vested shares and performance-based restricted stock units was approximately $10.9 million. The remaining weighted average vesting period for time-based non-vested shares was 1.6 years and performance-based restricted stock units was 2.2 years.

Time-based Non-vested Shares. During the year ended December 31, 2023, the Company granted 1,007,915 non-vested shares of common stock to certain employees and officers of the Company and 384,807 non-vested shares of common stock to outside directors of the Company. These shares generally vest in equal installments over their three-year service period, provided the participant has continuously remained an employee, officer, or director of the Company. In addition, on May 1, 2023, the Company granted 417,320 time-based restricted shares to its current CEO, which will vest 34% on the one year anniversary, 33% on each of January 15, 2025 and 2026.

During the year ended January 1, 2023, the Company granted 1,116,000 non-vested shares of common stock to certain employees and officers of the Company and 226,584 non-vested shares of common stock to outside directors of the Company. These shares generally vest in equal installments over their three-year service period, provided the participant has continuously remained an employee, officer, or director of the Company. In addition, on April 1, 2022, the Company granted 100,000 time-vested restricted shares with an original two-year vesting period to its former CEO, which became fully vested on December 31, 2022.

During the year ended January 2, 2022, the Company granted 895,000 non-vested shares of common stock to certain employees and officers of the Company and 92,744 non-vested shares of common stock to non-employee directors. These shares generally vest in equal installments over their three-year service period provided that the participant has continuously remained an employee, officer or director of the Company.


	Shares	Weighted Average Grant Date Price
Non-vested at January 1, 2023	1,767,811	$	3.79
Granted	1,810,042	$	2.50
Vested	(822,368)	$	4.17
Forfeited	(20,725)	$	2.60
Non-vested at December 31, 2023	2,734,760	$	2.84

Performance-based Restricted Shares. On April 1, 2022, 600,000 performance-based restricted shares were granted to the Company's former CEO, of which 450,000 shares were subsequently forfeited on December 31, 2022. The remaining shares fully vest on the third anniversary of the grant date based on the achievement of contractually defined EBITDA and share price growth targets. The fair value of the performance-based restricted shares was determined using a Monte Carlo simulation valuation model and these shares were expensed their service period according to the probability of the Company's attainment of the contractually defined targets.

Performance-based Restricted Stock Units. On July 1, 2023, the Company granted 797,915 performance-based restricted stock units to its executive officers. The number of performance-based restricted stock units that will ultimately vest and be received by the participants is based on achievement of contractually defined EBITDA growth targets to be measured over the period ending fiscal 2025. The Company estimates the fair-value of performance-based restricted stock units based on the closing stock price on the date of the grant which was $5.04. As the maximum EBITDA growth targets have been met with 2023’s Adjusted EBITDA performance, expense is being recognized over the applicable service period at this maximum attainment level.

Stock Options. 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 to certain employees and officers of the Company, consisting of 739,340 shares of non-qualified stock options and 335,660 shares of incentive stock options ("ISOs"). These options became exercisable in three annual installments and were expensed over their three-year service 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.


	Options	Weighted Average Exercise Price		Average Remaining Contractual Life	Aggregate Intrinsic Value (1)
Options outstanding at January 1, 2023	975,500	$	7.12

Forfeited	—
Cancelled	(50,500)	$	7.12
Options Outstanding at December 31, 2023	925,000	$	7.12	3.6	$	703
Vested or expected to vest at December 31, 2023	925,000	$	7.12	3.6	$	703
Options exercisable at December 31, 2023	925,000	$	7.12	3.6	$	703

(1) The aggregate intrinsic value is calculated using the difference between the market price of the Company's common stock at December 31, 2023 of $7.88 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 December 31, 2023.

Restricted Stock Units. The Company has issued restricted stock units RSUs on shares of the Company's common shares to certain officers of the Company. During the twelve months ended December 31, 2023, 21,295 RSUs vested into shares of the Company's common stock at a weighted average price of $2.22 per share.

A summary of all RSU activity for the year ended December 31, 2023 was as follows:


			Units
Non-vested at January 1, 2023			38,770
Issued dividend equivalents			48
Vested			(21,295)
Non-vested at December 31, 2023			17,523