Share-Based Payments

3 Months Ended

Sep. 29, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payments

(4) Share-Based Payments

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide services in exchange for the award, the requisite service period (usually the vesting period). The Company provides an estimate of forfeitures at initial grant date. Reductions in compensation expense associated with the forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience. The company uses the Black-Scholes option pricing model to determine the fair value of the stock options granted.

There were no stock options granted under the Company’s 2009 Stock Incentive Plan (the “Plan”) during the quarters ended September 29, 2012 and October 1, 2011. During the three and nine months ended September 29, 2012 the Company recognized $55,127 and $168,378, respectively as share-based compensation expense related to previously granted shares under the Plan. During the three and nine months ended October 1, 2011 the Company recognized $45,958 and $158,449, respectively, as share-based compensation expense related to previously granted shares under the Plan.

There were no option exercises during the quarter ended September 29, 2012. During the quarter ended October 1, 2011, 31,500 stock options were exercised. No options expired during the quarters ended September 29, 2012 and October 1, 2011.