Note 8 - Stock-based Compensation

6 Months Ended

Jul. 02, 2023

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 2, 2023 and July 3, 2022 was as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Cost of revenue	$	88	$	117	$	166	$	173
Research and development		158		91		342		176
Selling, general and administrative		340		269		793		511
Total	$	586	$	477	$	1,301	$	860

The Company capitalized stock-based compensation amounts to capitalized internal-use software and tooling, net of $61 thousand and $0 for the six months ended July 2, 2023 and July 3, 2022, respectively.

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 2, 2023 (in thousands):

	Shares Available for Grants
Balance at January 1, 2023		960
Authorized		—
RSUs granted		(55	)
RSUs forfeited or expired		9
Options expired		2
Balance at July 2, 2023		916

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 2, 2023:

				Weighted		Weighted
				Average		Average		Aggregate
	Number of			Exercise		Remaining		Intrinsic
	Shares			Price		Term		Value
	(in thousands)					(in years)		(in thousands)
Balance outstanding at January 1, 2023		75		$	24.50		2.80	$	—
Forfeited or expired		(2	)	$	32.93
Balance outstanding, exercisable, and vested at July 2, 2023		73		$	24.24		2.38	$	—

No stock options were granted, exercised, or forfeited during the six months ended July 2, 2023. Stock options for approximately 2 thousand shares expired during the six months ended July 2, 2023. No stock options were granted, exercised, forfeited, or expired during the six months ended July 3, 2022.

Total stock-based compensation related to stock options was $0 during the six months ended July 2, 2023 and July 3, 2022. 

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 were approximately $0.6 million and $1.2 million for the three and six months ended July 2, 2023 and approximately $0.5 million and $0.9 million for the three and six months ended July 3, 2022, respectively.

As of  July 2, 2023 and July 3, 2022, there was approximately $1.8 million and $1.1 million, respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of July 2, 2023 is expected to be recorded over a weighted average period of 1.18 years.

A summary of activity for the Company's RSUs and PRSUs for the six months ended July 2, 2023 is as follows:

	RSUs & PRSUs Outstanding
				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
	(in thousands)
Nonvested at January 1, 2023		630		$	6.05
Granted		55			6.11
Vested and released		(45	)		5.80
Forfeited		(9	)		7.25
Nonvested at July 2, 2023		631		$	6.05

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $16 thousand and $75 thousand for the three and six months ended July 2, 2023, respectively, and $11 thousand and $34 thousand for the three and six months ended July 3, 2022, respectively.