Share Based Compensation

3 Months Ended

Mar. 30, 2013

Share Based Compensation

Share Based Compensation

5.  Share Based Compensation

Total share based compensation expense for the three month period ended March 30, 2013 and March 31, 2012 was approximately $0.1 million and $0.2 million, respectively, and includes compensation expense related to both stock options and stock awards.

In the first quarter of 2013, we recorded a reduction of the tax benefit of $25,000 and for the first quarter of fiscal 2012, we recorded a reduction of the tax benefit of $13,000. The tax benefit is offset against our valuation allowance for our deferred tax asset.

Stock Options

The following table summarizes the stock option activity for the three months ended March 30, 2013:

	Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding on December 29, 2012	335,650		$	5.31	7.26	$	34,124
Granted	8,800		3.24
Exercised	—		—
Forfeited/Cancelled	(2,400	)	10.00
Outstanding on March 30, 2013	342,050		$	5.23	7.13	$	81,896
Vested or expected to vest at March 30, 2013	326,678		5.26		7.04	$	79,961
Exercisable on March 30, 2013	250,359		5.48		6.53	$	69,065

The total fair value of the stock options that vested during the three months ended March 30, 2013 was approximately $121,000.

For the three month period ended March 30, 2013, no options were exercised; therefore the total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) and the income tax benefit realized from stock option exercises were both $0.

For the three month period ended March 31, 2012, 13,250 options were exercised and the total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) was approximately $30,000. The income tax benefit realized from stock option exercises was $0.

Total stock option expense for the three months ended March 30, 2013 was approximately $53,000. As of March 30, 2013, there was approximately $0.1 million of unrecognized share based compensation expense related to unvested stock options that are expected to vest over a weighted-average period of approximately 1.4 years. Options to purchase 342,050 shares were outstanding at March 30, 2013.

Stock Awards

The following table summarizes the stock award activity for the three months ended March 30, 2013:

	Shares		Weighted Average Grant Date Fair Value
Non-vested at December 29, 2012	98,753		$	4.78
Granted	1,200		3.24
Vested	(30,261	)	(4.79		)
Forfeited	—		—
Non-vested at March 30, 2013	69,692		$	4.75

The total fair value of stock awards that vested during the three months ended March 30, 2013 was approximately $145,000 respectively.

Total stock award expense for the three months ended March 30, 2013 was $70,000.

As of March 30, 2013, there was $0.1 million of unrecognized compensation expense related to unvested stock awards that were expected to vest over a weighted average period of 1.2 years.