(5) Share-Based Compensation Plans

12 Months Ended

Dec. 26, 2020

Retirement Benefits [Abstract]

(5) Share-Based Compensation Plans

(5) Share-Based Compensation Plans

The Company adopted the 2020 Equity Incentive Plan ("2009 Plan") on March 3, 2020. Under the terms of the 2020 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 2020 Plan a total of 1,500,000 shares of common stock are available for issuance, of which 1,381,000 shares remain available for grant as of December 26, 2020.

A summary of stock option activity as of December 26, 2020 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	1,794,105	$	1.73
Granted	119,000	$	1.49
Exercised	(318,250)	$	1.51
Forfeited	(77,000)	$	1.41
Expired	(226,355)	$	1.52
Outstanding at
end of year	1,251,500	$	1.82	5.08	$	753,320
Options exercisable
at year-end	992,600	$	1.90	4.38	$	557,052

No options were exercised during fiscal 2019 and 199,500 options were granted during fiscal 2019.

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 2020 and 2019:

		2020		2019
Risk-free interest rate		.84%- .91%		2.48%
Expected life in years		6-7		6.1
Expected volatility		54%		54%
Expected dividend yield		0		0
Weighted average fair value of grants	$	.78	$	.79

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 $118,610 and $133,671 as stock based compensation expense in 2020 and 2019, respectively including $117,842 related to stock options outstanding and $768 related to the issue of common stock in 2020.  As of December 26, 2020, there was $146,017 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plan; that cost is expected to be recognized over a weighted average period of 2.05 years.