9.	SHAREHOLDERS’ EQUITY

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

	Three-month periods ended				Nine -month periods ended
	September 30 ,		October 1 ,		September 30 ,		October 1 ,
	2018		2017		2018		2017
Stock Options	$	344	$	130	$	653	$	518
Restricted Stock Grants		19		3		54		11
Total	$	363	$	133	$	707	$	529

We have stock options outstanding from various stock-based employee compensation plans for which we record compensation cost relating to share-based payment transactions in our financial statements. As of

September 30, 2018,

there was

$681

of total unrecognized compensation cost 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 30, 2018:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2018		1,860,211		$	6.10
Granted		217,500			9.68
Exercised		(305,460	)		4.54
Forfeited or Expired		(17,499	)		5.61
Outstanding at September 30, 2018		1,754,752		$	6.68		3.50	$	3,986
Vested and Expected to Vest at September 30, 2018		1,650,364		$	6.66		3.36	$	3,791
Exercisable at September 30, 2018		1,174,378		$	5.75		2.68	$	3,193

The following assumptions were used to value stock options granted during the

nine

months ended

September 30, 2018:

Risk-Free Interest Rate	2.6	%
Volatility Factor	47	%
Weighted Average Expected Life (Years)	5
Dividends	0.0	%

The weighted average grant date fair value of options granted during the

nine

months ended

September 30, 2018

was

$4.22.

July 25, 2018,

the Company’s Board of Directors, at the recommendation of the Compensation and Management Committee and pursuant to the Company’s Amended and Restated

2004

Long-Term Incentive Plan, modified the option previously granted to the Company’s President and Chief Executive Officer to purchase an aggregate

200,000

shares of the Company’s common stock at

$10.00,

such that the option will fully vest immediately upon the Company’s common stock

first

reaching a closing price

$10.00

for

trading days in a

trading-day period. The option as previously granted provided for vesting in annual increments of

50,000

shares on each of the

four

anniversaries of the date the Company’s common stock

first

reached a closing price

$10.00

for

trading days in a

trading-day period. The option became fully vested during the

third

quarter

2018

and expires

December 30, 2020.

The transaction has been accounted for as an equity award modification pursuant to Accounting Standards Codification Topic

718,

Compensation – Stock Compensation. The Company has recognized for the

third

quarter

2018

compensation cost of approximately

$182,

representing the incremental fair value of the modified award computed as of the modification date as the difference between the fair value of the modified award and the fair value of the original award immediately before it was modified. The incremental fair value was determined using a Monte Carlo simulation option-pricing model consistent with the valuation methodology used to value and recognize the original award.

FASB’s guidance for share-based payments requires cash flows from excess tax benefits to be classified as a part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for exercised stock options in excess of the deferred tax asset attributable to stock compensation costs for such stock options. We did

not

record any excess tax benefits in the

first

nine

months of

2018

2017.

Cash received from stock option exercises under our stock-based compensation plans for the

three

-month periods ended

September 30, 2018

and

October 1, 2017

was

$64

and

$131,

respectively. Cash received from stock option exercises under our stock-based compensation plans for the

nine

-month periods ended

September 30, 2018

and

October 1, 2017

was

$1,357

and

$1,120,

respectively.

January 2018,

17,500

shares of restricted stock were awarded to certain of our employees. These shares vest in equal annual installments over

three

years. The weighted average grant date fair value of these awards was

$7.16

per share. Unrecognized compensation cost related to these restricted shares was

$71

September 30, 2018.