Stock Compensation Plans

12 Months Ended

Dec. 30, 2017

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

Stock Compensation Plans

NOTE 8 - 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 30, 2017, 549,610 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 $0.4 million and $0.5 million for the fiscal years ended December 30, 2017 and December 31, 2016, respectively.

Stock Option Awards – We did not grant any stock options in 2017 or 2016. The following table summarizes our stock option activity for the year ended December 30, 2017:

	Vested and Exercisable Balance			Number of Shares Outstanding			Weighted Average Exercise Price
Balance at December 31, 2016		150,000			150,000		$	10.93
Cancelled or expired		(150,000	)		(150,000	)		10.93
Balance at December 30, 2017,		—			—		$	—

All outstanding stock options during 2017 and 2016 were fully vested prior to 2016 and therefore we did not recognize any stock compensation expense related to stock options in 2017 or 2016.

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; however, the December 2017 vesting has been delayed. 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 30, 2017:

	Number of unvested restricted shares			Weighted- average grant-date fair value
Outstanding at December 31, 2016		506,750		$	1.27
Granted		255,705			1.15
Vested		(284,699	)		1.44
Forfeited		(77,807	)		1.37
Outstanding at December 31,2016		399,949		$	0.97

As of December 30, 2017, there was $0.4 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 1.95 years. During 2017 and 2016, the Company granted the following restricted stock awards.

Date Issued	Issued to	Number of Shares		Market Price		Fair Value
August 10, 2017	Employees (6)		127,500	$	1.13	$	144,075
July 6, 2017	Consultant		176,000	$	1.28	$	225,280
June 16, 2017	Directors (3)		128,205	$	1.17	$	150,000
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