STOCK-BASED COMPENSATION

3 Months Ended

Apr. 01, 2017

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 5 — STOCK-BASED COMPENSATION

The following table summarizes the activity for the outstanding stock options for the three months ended April 1, 2017:

			Weighted - Average
	Options		Exercise Price
Outstanding, December 31, 2016	17,850		$	2.12
Exercised	(17,850	)	$	2.12
Outstanding, April 1, 2017	—

The following table summarizes the activity for the unvested restricted stock for the three months ended April 1, 2017:

	Unvested		Weighted - Average
	Restricted		Grant Date
	Stock		Fair Value
Unvested, December 31, 2016	129,666		$	8.12
Granted	77,495		$	19.54
Vested	(24,130	)	$	9.06
Forfeited	—		$	—
Unvested, April 1, 2017	183,031		$	12.83

The total fair value of restricted shares vested and recognized as stock-based compensation expense during the three months ended April 1, 2017 was $218,607.

As a part of annual director compensation, a stock award is paid to each of the Company’s outside directors equal to $40,000 divided by the closing sales price on the grant date. The grants are made in quarterly increments. The director stock-based compensation expense recognized during the three months ended April 1, 2017 was $70,000.

Total unrecognized compensation expense related to all share-based awards outstanding at April 1, 2017, was approximately $2.3 million and is to be recorded over a weighted-average contractual life of 2.4 years.

On May 25, 2016, the Company held its annual meeting of stockholders at which the Company’s stockholders approved the 2016 Long-Term Incentive Plan (the “Plan”) which had previously been approved by the Board of Directors and recommended to the stockholders. The Plan is effective until May 25, 2026; provided, however, any awards issued prior to the Plan’s termination will remain outstanding in accordance with their terms. The Plan authorizes the issuance of 1,000,000 shares of the Company’s Class A Common Stock with certain officers being limited to receiving grants of 100,000 shares in any one year. Employees, contractors and non-employee directors of the Company and its subsidiaries are eligible to receive awards under the Plan. The following types of awards may be granted under the Plan:  (1) stock options (incentive and non-qualified); (2) stock appreciation rights; (3) restricted stock and restricted stock units; (4) dividend equivalent rights; (5) performance awards based on achieving specified performance goals; and (6) other awards. As of April 1, 2017, shares reserved for the granting of future share-based awards totaled 913,731, compared to 1,012,140 shares at December 31, 2016.