Stock Compensation Plans

12 Months Ended

Dec. 29, 2018

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”) currently 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. At December 29, 2018, 554,671 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 $0.1 million and $0.4 million for the fiscal years ended December 29, 2018 and December 30, 2017, respectively.

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 vesting of these shares 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 29, 2018:

	Number of unvested restricted shares			Weighted-average grant-date fair value
Outstanding at December 30, 2017		399,949		$	0.97
Granted		—			—
Vested		(106,756	)		1.42
Forfeited		(5,063	)		1.98
Outstanding at December 29, 2018		288,130		$	0.96

As of December 29, 2018, there was $0.2 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 1.34 years. During 2018, the Company did not grant any restricted stock awards. During 2017, 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