Note 8 - Stock-based Compensation

9 Months Ended

Oct. 01, 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 nine months ended October 1, 2023 and October 2, 2022 was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Cost of revenue	$	73	$	44	$	239	$	217
Research and development		171		149		513		325
Selling, general and administrative		372		294		1,165		805
Total	$	616	$	487	$	1,917	$	1,347

The Company capitalized stock-based compensation amounts to capitalized internal-use software and tooling, net of $119 thousand and $0 for the nine months ended October 1, 2023 and October 2, 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 nine months ended October 1, 2023 (in thousands):

	Shares Available for Grants
Balance at January 1, 2023		960
Authorized		—
Restricted stock units (RSUs) granted		(393	)
RSUs forfeited or expired		15
Options expired		2
Balance at October 1, 2023		584

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 1, 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 October 1, 2023		73		$	24.24		2.13	$	—

No stock options were granted or exercised during the nine months ended October 1, 2023. No stock options were granted, exercised, forfeited, or expired during the nine months ended October 2, 2022.

Total stock-based compensation related to stock options was $0 during the nine months ended October 1, 2023 and October 2, 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 $1.8 million for the three and nine months ended October 1, 2023 and approximately $0.5 million and $1.3 million for the three and nine months ended October 2, 2022, respectively.

As of  October 1, 2023 and October 2, 2022, there was approximately $3.7 million and $1.1 million, respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of October 1, 2023 is expected to be recorded over a weighted average period of 1.52 years.

A summary of activity for the Company's RSUs and PRSUs for the nine months ended October 1, 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		393			8.07
Vested and released		(224	)		6.14
Forfeited		(15	)		6.73
Nonvested at October 1, 2023		784		$	7.02

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $25 thousand and $100 thousand for the three and nine months ended October 1, 2023, respectively, and $20 thousand and $54 thousand for the three and nine months ended October 2, 2022, respectively.