NOTE

Stock-Based Compensation

The following table summarizes stock-based compensation costs included in the Company's consolidated statements of operations for the

first

quarter of each of fiscal

2021

and

2020:

	2021		2020

Selling, general and administrative expenses	$	11,373	$	11,082
Product development expenses		2,490		1,693
Total share-based compensation expense before taxes	$	13,863	$	12,775

As of

December 26, 2020,

there was

$138,434

of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of

December 26, 2020,

the weighted average period over which the compensation expense is expected to be recognized is

3.17

years.

The Technical Communications Corporation

2005

Non-Statutory Stock Option Plan and

2010

Equity Incentive Plan had expired as of

December 26, 2020

and options are

longer available for grant thereunder, although vested, unexercised options under such plans remain outstanding. There were an aggregate of

600,000

shares authorized for issuance under these plans, of which options to purchase

154,400

shares were outstanding at

December 26, 2020.

Vesting periods were at the discretion of the Board of Directors and typically ranged between

zero

and

five

years. Options under these plans were granted with an exercise price equal to fair value at time of grant and have a term of

ten

years from the date of grant.

The following table summarizes stock option activity during the

first

three

months of fiscal

2021:

	Options Outstanding
	Number of Shares								Weighted Average		Weighted Average Contractual Life
	Unvested		Vested			Total			Exercise Price		(in years)

Outstanding, September 26, 2020		71,600		86,300			157,900		$	4.54		6.54
Grants		-		-			-			-		-
Vested		-		-			-
Cancellations/forfeitures		-		(3,500	)		(3,500	)		11.84

Outstanding, December 26, 2020		71,600		82,800			154,400		$	4.38		6.43

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

Information related to the stock options vested and expected to vest as of

December 26, 2020

is as follows:

Range of Exercise Prices			Number of Shares		Weighted-Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted- Average Exercise Price

$1.01	-	$2.00		20,000		8.94	$	1.87		4,000	$	1.87
$2.01	-	$3.00		34,300		7.16		2.61		14,000		2.72
$3.01	-	$4.00		46,500		8.29		3.61		17,700		3.63
$4.01	-	$5.00		16,600		3.49		4.34		16,400		4.33
$5.01	-	$10.00		30,000		3.85		7.92		23,700		8.10
$10.01	-	$15.00		7,000		1.35		10.20		7,000		10.20
				154,400		6.43	$	4.38		82,800	$	5.36

The aggregate intrinsic value of the Company's “in-the-money” outstanding and exercisable options as of

December 26, 2020

and

December 28, 2019

was

and

$33,758,

respectively. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions.