2. Stock Option Plan (Tables)

6 Months Ended

Jul. 01, 2016

A summary of activity in the stock option plan for the six months ended July 1, 2016 follows (shares in thousands):

		Weighted-
		Average
	Number	Exercise
	of Shares	Price

Outstanding as of beginning of the period	1,470	$1.53
Granted	226	0.89
Exercised	-
Forfeited or expired	(175)	6.65
Outstanding as of end of the period	1,521	0.84

Exercisable as of end of the period	1,137	$0.92

Schedule of Stock Options Valuation Assumptions

The weighted average values of employee stock options granted under the stock option plan, as well as the weighted average assumptions used in calculating these values during the first six months of 2016, were based on estimates as of the date of grant as follows:

Risk-free interest rate	1.17%
Dividend yield	0%
Volatility	258%
Expected life	3.5 years