(5) Share-Based Compensation Plans

12 Months Ended

Dec. 30, 2017

Retirement Benefits [Abstract]

(5) Share-Based Compensation Plans

(5) Share-Based Compensation Plans

The Company adopted the 2009 Stock Incentive Plan ("2009 Plan") on December 10, 2009. Under the terms of the 2009 Plan all of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted options, restricted stock awards, or other stock-based awards. Some outstanding options are nonstatutory stock options; some are incentive stock options. All options granted are exercisable at the fair market value of the stock on the date of grant, and expire ten years from the date of grant. The options granted to employees generally vest in equal annual installments over a five-year period. The options granted to directors generally vest immediately on date of grant.

Under the 2009 Plan a total of 2,856,100 shares of common stock are available for issuance, of which 1,189,195 shares remain available for grant as of December 30, 2017.

As of December 30, 2017, the 2009 Plan is the only stock option plan from which awards can be made as all other option plans have expired. As of December 30, 2017 there are 8,000 options outstanding under the 1999 Plan.

A summary of stock option activity for all the above plans as of December 30, 2017 and changes during the year then ended is presented below:

				Weighted	Weighted
				Average	Remaining		Aggregate
				Exercise	Contractual		Intrinsic
	Shares			Price	Life (years)		Value
Outstanding at
beginning of year	1,557,905		$	1.79
Granted	167,500		$	1.58
Exercised	—			—
Forfeited	(50,500	)	$	1.78
Expired	(8,000	)	$	2.17
Outstanding at
end of year	1,666,905		$	1.77	5.2	$	266,667
	========			=====	===		========
Options exercisable
at year-end	1,230,905		$	1.73	4.3	$	207,455
	========			=====	===		========

No options were exercised during fiscal 2017. The total intrinsic value of options exercised during fiscal years 2016 and 2015 was $19,592 and $141,520, respectively.

Cash received from option exercises under all share-based payment arrangements was $11,836, and $172,670, for the years ended December 31, 2016 and December 26, 2015, respectively.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following table presents the annualized weighted average values of the significant assumptions used to estimate the fair values of the options granted during 2017 and 2016:

		2017		2016
Risk-free interest rate		2.08-2.23%		1.39-1.53%
Expected life in years		6.1		6.3
Expected volatility		54%		53%
Expected dividend yield		0		0
Weighted average fair value of grants	$	.84	$	.85

All options are granted with an exercise price equal to the fair market value of the underlying common stock on the date of grant.

The Company recognized $287,231, $193,117 and $283,507 as compensation expense related to total stock options outstanding in 2017, 2016 and 2015, respectively. As of December 30, 2017, there was $282,389 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 3.2 years.