Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Capital Stock

v3.19.3
Note 7 - Capital Stock
 9 Months Ended
Sep. 29, 2019
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
7
.
Capital stock
 
 
Common stock
 
Issued and outstanding:
 
The issued and outstanding number of shares common stock included in shareholders’ equity consisted of the following:
 
   
Number

of shares
    
$
 
                 
Balance at December 30, 2018
    
23,189,381
      
458
  
New share issuance - rights offering and registered direct offering
    
4,642,030
      
46
  
New share issuance - vested stock awards
    
267,063
      
3
  
Treasury stock (1)
    
21,264
      
—
  
Balance as September 29, 2019
    
28,119,738
      
507
  
 
 
 
(
1
)
Treasury stock represents vested restricted stock awards issued into shares of common stock withheld by the Company which employees forfeited to address the corresponding tax withholding during the
nine
months ended
September 29, 2019.
 
Stock Options
 
For more detailed information regarding the Company’s stock option arrangements, see Note
6
of the consolidated financial statements within the Company’s Form
10
-K. A summary of stock option activity for the
nine
-month period ended
September 29, 2019
is as follows:
 
 
   
Number

of options
    
Weighted
average
exercise
price
    
Aggregate
intrinsic
value
    
Weighted
average
remaining
contractual
term (years)
  
Outstanding at December 30, 2018
    
1,719,824
     $
1.55
      
1,998
      
8.6
  
                                 
Options granted
    
650,000
      
3.67
      
 
      
 
  
Options exercised
    
(25,450
 )    
1.80
      
 
      
 
  
Outstanding at September 29, 2019
    
2,344,374
      
2.14
      
639
      
8.2
  
Exercisable at September 29, 2019
    
1,075,640
      
1.54
      
639
      
7.4
  
 
During the
three
-month periods ended
September 29, 2019
and
September 30, 2018,
the Company recorded stock-based compensation expense related to stock options and a corresponding increase in additional paid-in capital of
$57
and
$27,
respectively. During the
nine
-month periods ended
September 29, 2019
and
September 30, 2018,
the Company recorded stock-based compensation expense related to stock options and a corresponding increase in additional paid-in capital of
$120
and
$86,
respectively.
 
Certain stock options outstanding have market conditions such that the awards are vested and exercisable only if the Company’s stock exceeds specified targets during the vesting period. If the market conditions are
not
met, the stock options will
not
vest and will expire.
 
Restricted Stock Units
 
For more detailed information regarding the Company’s Restricted Stock Units (“RSUs”) arrangements, see Note
6
of the annual consolidated financial statements for the year ended
December 30, 2018,
included in the Company’s Annual Report on Form
10
-K. A summary of the RSU activity for the
nine
-month period ended
September 29, 2019
is as follows:
  
   
Outstanding
RSU
    
Weighted
average
stock
price
    
Weighted
average
remaining
contractual
term (years)
  
Outstanding balance at December 30, 2018
    
357,377
     $
0.96
      
1.21
  
RSUs granted
    
122,500
      
3.58
      
 
  
RSUs vested and issued in common shares
    
(262,877
 )    
1.31
      
 
  
RSUs forfeited
    
(25,000
 )    
1.38
      
 
  
Outstanding balance at September 29, 2019
    
192,000
      
2.10
      
1.63
  
  
Certain RSUs outstanding have a market condition such that the awards are vested and issuable only if the market price of the Company’s stock meets or exceeds a specified target during the vesting period. If the market condition is
not
met, the RSUs will
not
vest and will be forfeited.
 
Stock based compensation recognized during the
three
-month period ended
September 29, 2019
and
September 30, 2018
related to the restricted stock units was
$296
and
$48,
respectively.  Stock based compensation recognized during the
nine
-month period ended
September 29, 2019
and
September 30, 2018
related to the restricted stock units was
$418
and
$192,
respectively.  
 
Rights Offering and Registered Direct Offering
 
In
June 2019,
the Company completed its (i) offering of subscription rights (the “Rights Offering”) to the Company’s stockholders and holders of the Company’s outstanding warrants as of the close of business on
May 24, 2019,
which was fully subscribed for the maximum offering amount of
$9,136,
and (ii) registered direct offering (the “Registered Direct Offering” and, together with the Rights Offering, the “Offerings”) of
1,732,483
shares of the Company’s common stock directly to certain investors, resulting in net proceeds to the Company of approximately
$14,044,
after deducting the offering expenses of approximately
$532
and fees payable by the Company.