Stock Compensation Plans

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Plans

NOTE 9 - STOCK COMPENSATION PLANS

The Company’s 2009 Equity Incentive Plan, as amended (the “Equity Plan,” or the “Plan”) provides for the aggregate issuance of up to 2,580,000 shares of common stock. The Equity Plan provides for grants of non-statutory options, incentive stock options, restricted stock awards, performance shares, performance units, restricted stock units and other stock-based awards, in order to enhance the ability of ENGlobal to motivate current employees, to attract employees of outstanding ability and to provide for grants to be made to non-employee directors. Grants to employees will generally vest in four equal annual installments on the anniversary date of grant. Grants to non-employee directors will generally vest quarterly over a one-year period coinciding with their service term. At December 31, 2016, 727,507 shares of common stock are available to be issued pursuant to the Equity Plan.

We recognized non-cash stock-based compensation expense related to our Equity Plan of $0.5 million and $0.5 million, with a tax impact of $0.2 million and $70,000, for the fiscal years ended December 31, 2016 and December 26, 2015, respectively.

Stock Option Awards – We did not grant any stock options in 2016 or 2015. The following table summarizes our stock option activity for the year ended December 31, 2016:

	Vested and Exercisable Balance			Number of Shares Outstanding			Weighted Average Exercise Price
Balance at December 26, 2015		300,000			300,000		$	10.04
Cancelled or expired		(150,000	)		(150,000	)		9.15
Balance at December 31, 2016,		150,000			150,000		$	10.93

The number of options exercisable at December 31, 2016 was 150,000 with a weighted average remaining contractual life of 0.45 years and a weighted-average exercise price of $10.93 per share.

All outstanding stock options during 2016 and 2015 were fully vested prior to 2015 and therefore we did not recognize any stock compensation expense related to stock options in 2016 or 2015.

Restricted Stock Awards – Restricted stock awards granted to directors are intended to compensate and retain the directors over the one-year service period commencing July 1 of the year of service. These awards generally vest in quarterly installments beginning September 30^th of the year of grant, so long as the grantee continues to serve as a director of the Company as of each vesting date. Restricted stock awards granted to employees generally vest in four equal annual installments on the anniversary date of grant, so long as the grantee remains employed full-time with us as of each vesting date. Shares are generally issued from new shares at the time of grant. The grant-date fair value of restricted stock grants is determined using the closing quoted market price on the grant date.

The following is a summary of the status of our restricted stock awards and of changes in restricted stock outstanding for the year ended December 31, 2016:

	Number of unvested restricted shares			Weighted- average grant-date fair value
Outstanding at December 26, 2015		542,462		$	1.38
Granted		297,949			1.03
Vested		(288,311	)		1.57
Forfeited		(45,350	)		1.85
Outstanding at December 31,2016		506,750		$	1.27

As of December 31, 2016, there was $0.6 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.1 years. During 2016 and 2015, the Company granted the following restricted stock awards.

Date Issued	Issued to		Number of Shares		Market Price		Fair Value
June 16, 2016		Directors (3)		122,949	$	1.22	$	150,000
June 2, 2016		Employees (1)		40,000	$	1.05	$	42,000
March 1, 2016		Employees (9)		135,000	$	0.86	$	116,100
June 18, 2015		Directors (3)		107,913	$	1.39	$	150,000
February 9, 2015		Employees (17)		305,100	$	1.98	$	604,100
January 8, 2015		Employees (1)		4,000	$	1.89	$	7,560