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Note 8 - Stock-based Compensation

3 Months Ended

Apr. 04, 2021

Share-based Payment Arrangement [Text Block]

Note 8 — Stock-Based Compensation

Stock-based compensation expense included in the Company's consolidated financial statements for the three months ended April 4, 2021 and March 29, 2020 was as follows (in thousands):

	*Three Months Ended*
	*April 4,*		*March 29,*
	*2021*		*2020*
Cost of revenue	$	36	$	12
Research and development		157		(464	)
Selling, general and administrative		175		54
Total	$	368	$	(398	)

During the three months ended March 29, 2020, the Company reversed stock-based compensation expense related to the cancellation of certain unvested performance-based RSUs and restructuring-related terminations.

No stock-based compensation was capitalized during any period presented above.

Stock-Based Compensation Award Activity

The following table summarizes the activity in the shares available for grant under the 2019 Plan during the three months ended April 4, 2021 (in thousands):

	*Shares Available for Grants*
Balance at January 3, 2021		320
RSUs granted		(28	)
RSUs forfeited or expired		8
PRSUs forfeited or expired		238
Balance at April 4, 2021		538

Stock Options

The following table summarizes stock options outstanding and stock option activity under the 2009 Plan and the 2019 Plan, and the related weighted average exercise price, for the three months ended April 4, 2021:

			*Weighted*		*Weighted*
			*Average*		*Average*		*Aggregate*
	*Number of*		*Exercise*		*Remaining*		*Intrinsic*
	*Shares*		*Price*		*Term*		*Value*
	(in thousands)				(in years)		(in thousands)
Balance outstanding at January 3, 2021		121	$	28.46		3.75		—
Forfeited or expired		—		—
Exercised		—		—
Balance outstanding at April 4, 2021		121	$	28.46		3.12	$	—
Exercisable at April 4, 2021		121	$	28.46		3.12	$	—
Vested and expected to vest at April 4, 2021		121	$	28.46		3.12	$	—

There was no stock option activities for the quarters three months ended April 4, 2021 and March 29, 2020.

Total stock-based compensation related to stock options was approximately $0 and $14,000 for the three months ended April 4, 2021 and March 29, 2020, respectively. As of April 4, 2021, the fair value of unvested stock options, net of forfeitures, was $0.

Restricted Stock Units

The Company grants restricted stock units (“RSUs”) and performance restricted stock units ("PRSUs") to employees and directors with various vesting terms. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation expense related to RSUs and PRSUs was approximately $338,000 for the three months ended April 4, 2021 and a reversal of stock-based compensation expense of $418,000 for the three months ended March 29, 2020. During the three months ended March 29, 2020, the Company reversed stock-based compensation expense related to the cancellation of certain unvested performance-based RSUs and restructuring-related terminations.

As of April 4, 2021 and March 29, 2020, there was approximately $373,000 million and $2.4 million, respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 1.65 years.

A summary of activity for the Company's RSUs and PRSUs for the three months ended April 4, 2021 is as follows:

	*RSUs & PRSUs Outstanding*
				*Weighted*
				*Average*
	*Number of*			*Grant Date*
	*Shares*			*Fair Value*
	(in thousands)
Nonvested at January 3, 2021		800		$	4.99
Granted		28			5.03
Vested		(453	)		4.88
Forfeited		(247	)		5.08
Nonvested at April 4, 2021		128		$	5.20

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's ESPP was approximately $30,000 and $0 for the three months ended April 4, 2021 and March 29, 2020, respectively.