Note 8 - Stock-based Compensation

6 Months Ended

Jul. 04, 2021

Notes to Financial Statements

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 and six months ended July 4, 2021 and June 28, 2020 was as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 4,		June 28,		July 4,		June 28,
	2021		2020		2021		2020
Cost of revenue	$	18	$	31	$	54	$	43
Research and development		82		486		239		22
Selling, general and administrative		102		224		277		278
Total	$	202	$	741	$	570	$	343

During the six months ended June 28, 2020, the Company reversed stock-based compensation expense related to the cancellation of certain unvested performance-based RSUs and restructuring-related terminations. During the second quarter of 2020, the Company issued fully vested RSUs in lieu of cash for variable compensation to certain employees.

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

No stock options were granted during the three and six months ended July 4, 2021 and June 28, 2020.

Stock-Based Compensation Award Activity

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

	Shares Available for Grants
Balance at January 3, 2021		320
Authorized shares		600
RSUs granted		(30	)
Options cancelled		11
RSUs forfeited or expired		19
PRSUs forfeited or expired		239
Balance at July 4, 2021		1,159

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 six months ended July 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		(11	)	$	19.59
Balance outstanding at July 4, 2021		110		$	29.31		3.16	$	—
Exercisable at July 4, 2021		110		$	29.31		3.16	$	—
Vested and expected to vest at July 4, 2021		110		$	29.31		3.16	$	—

No stock options were granted during the three and six months ended July 4, 2021 and June 28, 2020.

Total stock-based compensation related to stock options was approximately $0 and $14,000 for the three months ended July 4, 2021 and June 28, 2020 respectively, and $0 and $28,000 for the six months ended July 4, 2021 and June 28, 2020, respectively. As of July 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 $165,920 and $719,000 for the three months ended July 4, 2021 and June 28, 2020 respectively, and $503,943 and $306,000 for the six months ended July 4, 2021 and June 28, 2020 respectively. Due to the cancellation of certain performance based RSUs and cancellations relating to restructuring, which was implemented in January 2020, the Company reversed stock-based compensation previously recorded resulting in a credit to the stock-based compensation during the six months ended June 28, 2020.

As of July 4, 2021 and June 28, 2020, there was approximately $225,011 and $1.7 million, respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of July 4, 2021 is expected to be recorded over a weighted average period of 1.17 years.

A summary of activity for the Company's RSUs and PRSUs for the six months ended July 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		30			5.11
Vested		(458	)		4.88
Forfeited		(258	)		4.98
Nonvested at July 4, 2021		114		$	5.46

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's ESPP was approximately $36,000 and $8,000 for the three months ended July 4, 2021 and June 28, 2020, respectively, and $66,000 and $8,000 for the six months ended July 4, 2021 and June 28, 2020, respectively.