Stock-Based Compensation

6 Months Ended

Jun. 28, 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				Six Months Ended
		June 28, 2013	June 29, 2012		June 28, 2013			June 29, 2012
Employee stock options	$	666	$	670	$	1,492	$	1,192
Restricted stock expense		252		135		435		263
Consultant compensation		66		(12)		92		26
Total	$	984	$	793	$	2,019	$	1,481

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 performance contingent restricted stock units. 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 and pre-established financial metrics are met (as defined in the Plan). Pursuant to the Plan, options for 3,660,176 shares were outstanding at  June 28, 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 341,100 shares of restricted stock outstanding at June 28, 2013. As of June 28, 2013, there were 1,467,436 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				Six Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Expected dividend yield	0	%	0	%	0	%	0	%
Expected volatility	72.08	%	79.59	%	73.37	%	79.35	%
Risk-free interest rate	0.70	%	0.87	%	0.62	%	0.85	%
Expected term (in years)	4.12		5.21		4.12		5.21

A summary of option activity under the Plan as of  June 28, 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		497		153		—
Exercised		(188)		(17)		—
Forfeited or expired		(25)		—		(70)
Outstanding at June 28, 2013		3,660		341		1,400
Exercisable at June 28, 2013		2,457		—		1,400