5. Stock Option Plan

3 Months Ended

Mar. 29, 2019

Disclosure Text Block [Abstract]

5. Stock Option Plan

5.STOCK OPTION PLAN  

As of March 29, 2019, options to purchase 876,981 shares of common stock under the Company’s stock option plan were authorized and reserved for future grant.  

A summary of activity in the stock option plan for the three months ended March 29, 2019 follows (shares in thousands):

		Weighted-
		Average
	Number	Exercise
	of Shares	Price
Outstanding as of beginning of the period	1,597	$	0.65
Granted	165		0.80
Exercised	(130)		0.17
Forfeited or expired	(40)		0.66
Outstanding as of end of the period	1,592		0.71
Exercisable as of end of the period	1,164	$	0.61

As of March 29, 2019, options exercisable and options outstanding had a weighted average remaining contractual term of 5.72 and 6.54 years, respectively, and had an aggregate intrinsic value of $317.

The Black-Scholes option-pricing model is used to estimate the fair value of options under the Company’s stock option plan. 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 three months of 2019, were based on estimates as of the date of grant as follows:

Risk-free interest rate	2.64%
Dividend yield	0.00%
Volatility	81.16%
Expected life	3.5 years

Expected option life and volatility are based on historical data. The risk-free interest rate is calculated based on the average US Treasury bill rate that corresponds with the option life.  Historically, the Company has not declared dividends and there are no foreseeable plans to do so.

The options exercised in the three-month period ended March 29, 2019 had an intrinsic value of $69.

As of March 29, 2019, there was approximately $122 of total unrecognized share-based compensation cost related to grants under the stock option plan that will be recognized over a weighted-average period of 2.4 years.

Share-based compensation expense included in selling, general and administrative expense in the statements of operations for the three-month periods ended March 29, 2019 and March 30, 2018 was $26 and $39, respectively.