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(4) Share-Based Payments
3 Months Ended
Apr. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
(4) 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.

 

During the quarters ended April 1, 2017 and April 2, 2016 a total of 122,500 and 129,000 stock options, respectively, were granted to employees under the Company’s 2009 Stock Incentive Plan (the “Plan) and a total of 45,000 stock options were granted to outside directors, respectively.

 

During the quarter ended April 1, 2017 there were no shares issued. During the quarter ended April 2, 2016 the Company issued 1,200 shares of common stock as a result of employee option exercises.

 

As of April 1, 2017, there was $443 thousand of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan; that cost is expected to be recognized over a weighted average period of 2.46 years.

 

  During the quarters ended April 1, 2017 and April 2, 2016, the Company recognized approximately $74 thousand and $79 thousand, respectively, as shared-based compensation expense related to previously granted shares under the Plan.