Note 11 - Stock-based Compensation

6 Months Ended

Jun. 29, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 11 — Stock-Based Compensation

Stock-based compensation expense from continuing operations included in the Company's unaudited condensed consolidated financial statements for the three and six months ended June 29, 2025 and June 30, 2024 was as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Cost of revenue	$	189	$	140	$	347	$	438
Research and development		205		102		347		301
Selling, general and administrative		449		517		1,085		1,486
Total	$	843	$	759	$	1,779	$	2,225

The Company capitalized certain stock-based compensation amounts to capitalized internal-use software and tooling, net related to continuing operations of $9 thousand and $28 thousand for the three and six months ended June 29, 2025, respectively, and $21 thousand and $30 thousand for the three and six months ended June 30, 2024, respectively. The capitalized stock-based compensation amounts relate to compensation for employees involved in the development of capitalized internal-use software and tooling.

Stock-Based Compensation Award Activity

The following table summarizes the activity in the shares available for grant under the 2019 Plan during the six months ended June 29, 2025 (in thousands):

	Shares Available for Grants
Balance at December 29, 2024		65
Authorized		1,100
PSUs/RSUs granted		(57	)
PSUs/RSUs forfeited or expired		33
Balance at June 29, 2025		1,141

Stock Options

The following table summarizes stock options outstanding and stock option activity under the 2009 Plan and the 2019 Plan, and the related weighted average exercise price for the six months ended June 29, 2025:

			Weighted		Weighted
			Average		Average		Aggregate
	Number of		Exercise		Remaining		Intrinsic
	Shares		Price		Term		Value
	(in thousands)				(in years)		(in thousands)
Balance outstanding at December 29, 2024		48	$	12.05
Forfeited or expired		—	$	—
Balance outstanding, exercisable, and vested at June 29, 2025		48	$	12.05		1.19	$	—

No stock options were granted or exercised during the six months ended June 29, 2025 and June 30, 2024. No stock options expired during the six months ended June 29, 2025. Stock options equivalent to 6 thousand shares expired during the six months ended June 30, 2024.

Total stock-based compensation related to stock options was $0 during the six months ended June 29, 2025 and June 30, 2024.

Restricted Stock Units

The Company grants restricted stock units (“RSUs”) and performance restricted stock units ("PRSUs") to employees and directors with various vesting terms. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation expense in continuing operations related to RSUs and PRSUs were approximately $0.8 million and $1.7 million for the three and six months ended June 29, 2025, respectively and approximately $0.9 million and $2.3 million for the three and six months ended June 30, 2024, respectively.

As of  June 29, 2025 and June 30, 2024, there was approximately $1.9 million and $2.4 million, respectively, in unrecognized stock-based compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of June 29, 2025 is expected to be recorded over a weighted average period of 0.96 years.

A summary of activity for the Company's RSUs and PRSUs for the six months ended June 29, 2025 is as follows:

	RSUs & PRSUs Outstanding
				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
	(in thousands)
Nonvested at December 29, 2024		599		$	7.97
Granted		57			5.80
Vested and released		(64	)		6.74
Forfeited		(33	)		8.71
Nonvested at June 29, 2025		559		$	7.84

Employee Stock Purchase Plan

Total stock-based compensation in continuing operations related to the Company's Employee Stock Purchase Plan was approximately $20 thousand and $60 thousand for the three and six months ended June 29, 2025, respectively and approximately $12 thousand and $40 thousand for the three and six months ended June 30, 2024, respectively.