Note 8 - Stock-based Compensation

9 Months Ended

Oct. 02, 2022

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 nine months ended October 2, 2022 and October 3, 2021 was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Cost of revenue	$	44	$	78	$	217	$	132
Research and development		149		282		325		521
Selling, general and administrative		294		525		805		802
Total	$	487	$	885	$	1,347	$	1,455

There was no stock-based compensation expense reversal related to the cancellation of certain unvested performance-based RSUs for the three and nine months ended October 2, 2022 and  October 3, 2021.

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

No stock options were granted during the three and nine months ended October 2, 2022 and  October 3, 2021.

Stock-Based Compensation Award Activity

The following table summarizes the activity in the shares available for grant under the 2019 Plan during the nine months ended October 2, 2022 (in thousands):

	Shares Available for Grants
Balance at January 2, 2022		594
Authorized		912
RSUs granted		(159	)
RSUs forfeited or expired		22
Balance at October 2, 2022		1,369

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 nine months ended October 2, 2022:

				Weighted		Weighted
				Average		Average		Aggregate
	Number of			Exercise		Remaining		Intrinsic
	Shares			Price		Term		Value
	(in thousands)					(in years)		(in thousands)
Balance outstanding at January 2, 2022		93		$	27.49
Expired		(13	)	$	42.90
Balance outstanding at October 2, 2022 *		80		$	24.95		2.85	$	—
*Exercisable and fully vested.

No stock options were granted, exercised, forfeited, or expired during the nine months ended October 2, 2022 and October 3, 2021.

Total stock-based compensation related to stock options was $0 during the nine months ended October 2, 2022 and October 3, 2021. 

As of October 2, 2022, 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 $0.5 million and $1.3 million for the three and nine months ended October 2, 2022, respectively, and approximately $0.9 million and $1.4 million for the three and nine months ended October 3, 2021, respectively.

As of  October 2, 2022 and October 3, 2021, there was approximately $1.1 million and $2.1 million, respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of October 2, 2022 is expected to be recorded over a weighted average period of 1.51 years.

A summary of activity for the Company's RSUs and PRSUs for the nine months ended October 2, 2022 is as follows:

	RSUs & PRSUs Outstanding
				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
	(in thousands)
Nonvested at January 2, 2022		568		$	5.86
Granted		159			6.11
Vested		(423	)		5.98
Forfeited		(22	)		5.09
Nonvested at October 2, 2022		282		$	5.92

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $20 thousand and $54 thousand for the three and nine months ended October 2, 2022, respectively, and $31 thousand and $97 thousand for the three and nine months ended October 3, 2021, respectively.