Stock-Based Compensation

3 Months Ended

Mar. 29, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 10 — Stock-Based Compensation

The cost that has been charged against income for stock-based compensation is set forth below (in thousands):

	Three Months Ended
	March 29, 2013		March 30, 2012
ASC 718 expense	$	821	$	521
Restricted stock expense		188		127
Consultant compensation		25		39
Total	$	1,034	$	687

Stock Option Plans

The Amended and Restated 2003 Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, and may grant in the future performance contingent shares. Options under the plan are granted at fair market value on the date of grant, become exercisable over a three year period, or as determined by the Board of Directors, and expire over periods not exceeding 10 years from the date of grant. Certain option and share awards provide for accelerated vesting if there is a change in control (as defined in the Plan). Pursuant to the Plan, options for 3,830,779 shares were outstanding at March 29, 2013 with exercise prices ranging between $0.95 and $11.02 per share. Restricted stock grants under the Plan generally vest over a period of one, three or four years. There were 309,500 shares of restricted stock outstanding at March 29, 2013. As of March 29, 2013, there were 274,035 shares authorized and available for grants under the Plan.

Assumptions

The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee termination behavior. The expected term of options granted is derived from the historical exercise activity over the past 15 years, and represents the period of time that options granted are expected to be outstanding. The Company has calculated a 9.92% estimated forfeiture rate used in the model for fiscal year 2013 option grants based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.

	Three Months Ended
	March 29, 2013	March 30, 2012
Expected dividend yield	0%	0%
Expected volatility	73.44%	79.64%
Risk-free interest rate	0.61%	0.84%
Expected term (in years)	4.12	5.21

A summary of option activity under the Plan as of March 29, 2013 is presented below:

	Options Shares (000’s)			Restricted Shares (000’s)		Warrants Shares (000’s)
Outstanding at December 28, 2012		3,376			205		1,470
Granted		470			105		—
Exercised		(9	)		—		—
Forfeited or expired		(6	)		—		(70	)
Outstanding at March 29, 2013		3,831			310		1,400
Exercisable at March 29, 2013		2,495			—		1,400