Stock-Based Compensation

Total stock-based compensation expense recognized in selling, general and administrative expenses in the Company’s statements of operations was $0.3 million and $0.8 million for the three months ended June 27, 2015, and June 28, 2014, respectively, and $0.4 million and $1.7 million for the six months ended June 27, 2015, and June 28, 2014, respectively.

As of June 27, 2015, there was approximately $3.9 million of total unrecognized compensation cost related to unvested stock-based compensation grants, which is expected to be amortized over a weighted average period of 2.2 years.

Stock Options

A summary of the Company’s outstanding stock options as of and for the six months ended June 27, 2015, is as follows:



	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 27, 2014	1,670,500		$	5.18	1.4	$	29
Granted	685,500		2.38
Exercised	—		—			$	—
Forfeited/expired	(159,125	)	4.68
Outstanding at June 27, 2015	2,196,875		$	4.32	2.5	$	17
Exercisable at June 27, 2015	1,434,125		$	5.37	0.8	$	9

The weighted average grant date fair value of stock options granted during the six months ended June 27, 2015, were at exercise prices equal to the market price of the stock on the grant dates, as calculated under the Black-Scholes model with the weighted average assumptions as follows:



	June 27, 2015
Weighted average fair value of option grants during the year	$	0.86
Assumptions:
Expected option life in years	4.25
Risk-free interest rate	1.24		%
Expected volatility	43.0		%
Expected dividend yield	0.0		%

The risk-free interest rate represents the United States Treasury Bond constant maturity yield approximating the expected option life of stock options granted during the period. The expected option life represents the period of time that the stock options granted during the period are expected to be outstanding, based on the mid-point between the vesting date and contractual expiration date of the option. The expected volatility is based on the historical market price volatility of the Company’s common stock for the expected term of the options, adjusted for expected mean reversion.

There were no stock options granted during the six months ended June 28, 2014.

RSUs

A summary of the Company’s non-vested restricted share units ("RSUs") as of and for the six months ended June 27, 2015, is as follows:



	RSUs		Weighted Average Grant Date Fair Value
Unvested at December 27, 2014	512,861		$	3.22
Granted	695,944		2.38
Vested	(326,861	)	3.92
Forfeited	(6,250	)	2.21
Unvested at June 27, 2015	875,694		$	2.30

On May 20, 2015, 582,500 RSUs were issued to certain employees of the Company, which vest ratably over four years. Additionally, 113,444 RSUs were issued to certain members of the Company's Board of Directors, which vest one year from the date of issuance. The fair value of these awards was determined based on the Company's stock price on the dates of issuance.

The total fair value of RSUs which vested during the three and six months ended June 27, 2015, was $0.4 million and $0.7 million, respectively.

PSUs

A summary of the Company's non-vested performance share units ("PSUs") as of and for the six months ended June 27, 2015 is as follows:



	PSUs	Weighted Average Grant Date Fair Value
Unvested at December 27, 2014	—	$	—
Granted	590,000	2.38
Vested	—	—
Forfeited	—	—
Unvested at June 27, 2015	590,000	$	2.38

On May 20, 2015, 590,000 PSUs were granted to certain employees, with each award representing the right to receive one share of the Company's common stock upon the achievement of certain established performance targets and service conditions. The performance period for the awards is December 28, 2014 through January 2, 2016. Distributions under these awards are payable on the one year anniversary of the grant date provided the grantee's employment has not ceased prior to such date.

The fair value of these awards was determined based on the Company's stock price on the grant date. These awards are subject to forfeiture upon termination of employment prior to vesting.

Total stock-based compensation expense related to PSUs recognized in selling, general and administrative expenses in the Company’s statements of operations was $0.1 million for the three and six months ended June 27, 2015, respectively. There were no PSUs granted in fiscal year 2014.