Stock Compensation Plans

12 Months Ended

Dec. 26, 2020

Share-based Payment Arrangement [Abstract]

Stock Compensation Plans

The Company’s Amended and Restated 2009 Equity Incentive Plan (the “Equity Plan,” or the “Plan”), currently provides for the aggregate issuance of up to 625,109 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 26, 2020, 478,049 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 $0.2 million for the year ended December 26, 2020 and $0.1 million for the year ended December 28, 2019.

Restricted Stock Awards – Restricted stock awards granted to non-employee 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 30th of the year of grant, so long as the grantee continues to serve as a director of the Company as of each vesting date. The Company had delayed the vesting of restricted stock awards made in 2017; these awards were vested in full during the year ended December 26, 2020. 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 26, 2020:

	Number of unvested restricted shares			Weighted-average grant-date fair value
Outstanding at December 28, 2019		191,404		$	1.12
Granted		147,060			1.02
Vested		(193,168	)		1.10
Forfeited		—			—
Outstanding at December 26, 2020		145,296		$	1.05

As of December 26, 2020, 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 year. During the year ended December 26, 2020, the Company granted the following restricted stock awards.

Date Issued	Issued to	Number of Shares		Market Price		Fair Value
June 11, 2020	Directors (3)		147,060	$	1.02	$	150,000

During the year ended December 28, 2019, the Company granted the following restricted stock awards.

Date Issued	Issued to	Number of Shares		Market Price		Fair Value
August 6, 2019	Employees (1)		10,000	$	1.22	$	12,200