Note 7 - Shareholders' Equity

9 Months Ended

Sep. 27, 2015

Note 8 - Shareholders Equity

Shareholders' Equity

7. SHAREHOLDERS’ EQUITY

We recorded non-cash stock compensation expense in each period as follows:

	Three-month periods ended				Nine-month periods ended
	September 27,		September 28,		September 27,		September 28,
	2015		2014		2015		2014
Stock options	$	112	$	142	$	368	$	430
Restricted stock grants:
Employee		23		4		71		4
President and CEO		—		34		—		117
Board of Directors compensation –
stock grant		—		57		—		170
Total	$	135	$	237	$	439	$	721

These are more fully discussed as follows:

a. Stock Options

We have stock options outstanding from various stock-based employee compensation plans for which we record compensation expense relating to share-based payment transactions in our financial statements. As of September 27, 2015, there was $414 of total unrecognized compensation expense related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.1 years.

The following table summarizes stock option activity for the nine-month period ended September 27, 2015:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2015		2,056,122		$	6.66
Granted		311,250			3.83
Exercised		(8,502	)		3.37
Forfeited or expired		(68,166	)		12.21
Outstanding at September 27, 2015		2,290,704			6.12		3.61	$	1,985
Vested and expected to vest at September 27, 2015		2,151,104			6.27		3.47	$	1,763
Exercisable at September 27, 2015		1,387,971		$	5.10		2.69	$	1,184

Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended September 27, 2015 and September 28, 2014 was $19 and $0, respectively. Cash received from stock option exercises for the nine-month periods ended September 27, 2015 and September 28, 2014 was $28 and $11, respectively.

b. Restricted Stock Awards

At September 27, 2015, our President and Chief Executive Officer held 60,000 unearned, unvested restricted stock units. These units vested subsequent to September 27, 2015 upon the satisfaction of the condition of our common stock having closed at a price of $5.00 per share or greater for 15 trading days in a 30 trading day period.

In addition, 49,200 shares of restricted stock were awarded to certain of our employees in September, 2014. 16,400 shares of these awards vested in September 2015. There is $60 of unrecognized compensation expense related to these restricted shares at September 27, 2015.