Note 3 - Stock-based Compensation

6 Months Ended

Mar. 28, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

NOTE 3. Stock-Based Compensation

The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the

first

quarter and

first

six

months of each of fiscal

2020

and

2019:

	March 28, 2020				March 30, 2019
	3 months		6 months		3 months		6 months
Selling, general and administrative expenses	$	10,161		21,243	$	7,587		15,183
Product development expenses		3,815		5,508		1,197		2,401
Total share-based compensation expense before taxes	$	13,976	$	26,751	$	8,784	$	17,584

As of

March 28, 2020,

there was

$151,802

of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of

March 28, 2020,

the weighted average period over which the compensation expense is expected to be recognized is

3.22

years.

As of

March 28, 2020,

there were

187,700

shares available for grant under the Technical Communications Corporation

2010

Equity Incentive Plan. TCC’s

2005

Non-Statutory Stock Option Plan has expired and options are

no

longer available for grant under such plan, although vested, unexercised options remain outstanding under the

2005

Plan.

The following table summarizes stock option activity during the

first

six

months of fiscal

2020:

	Options Outstanding
	Number of Shares									Weighted Average		Weighted Average Contractual Life
	Unvested			Vested			Total			Exercise Price		(in years)
Outstanding, September 28, 2019		59,400			171,937			231,337		$	8.36		3.95
Grants		20,000			-			20,000			1.87		9.94
Vested		-			-			-
Cancellations/forfeitures		-			(13,837	)		(13,837	)		11.51
Outstanding, December 28, 2019		79,400			158,100			237,500		$	7.28		4.45
Grants		-			-			-			-		-
Vested		(6,300	)		6,300			-			4.22
Cancellations/forfeitures		-			(7,000	)		(7,000	)		7.02
Outstanding, March 28, 2020		73,100			157,400			230,500		$	7.28		4.33

Information related to the stock options vested and expected to vest as of

March 28, 2020

is as follows:

Range of Exercise Prices			Number of Shares		Weighted-Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted- Average Exercise Price
$1.01	-	$2.00		20,000		9.69	$	1.87		-	$	-
$2.01	-	$3.00		20,300		6.39		2.69		14,000		2.72
$3.01	-	$4.00		46,500		9.03		3.61		8,400		3.64
$4.01	-	$5.00		16,600		4.24		4.34		14,200		4.37
$5.01	-	$10.00		30,000		4.60		7.75		23,700		8.10
$10.01	-	$15.00		97,100		0.48		11.43		97,100		11.43
				230,500		4.33	$	7.28		157,400	$	9.10

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of

March 28, 2020

and

March 30, 2019

was

$0.

Unvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions.