The Company maintains the SMTC Corporation Incentive Plan (the Plan”), which was adopted by the Board of Directors and approved by the stockholders of the Company in which superseded the SMTC Corporation Incentive Plan. The total number of shares remaining available for future issuance under the Plan as at is  

 

 

The Company settles its stock options in shares of common stock. A summary of stock option activity under the Incentive Plans for the years ended and is as follows:

 

		Total Outstanding options				Weighted average exercise price				Aggregate intrinsic value				Weighted average remaining contractual term (years)
Outstanding balance at January 1, 2017			616,766				1.82
Options granted			1,468,716				1.29
Options forfeited			(40,722	)			1.80
Options expired			(174,007	)			1.89
Options exercised			—				—
Outstanding balance at December 31, 2017			1,870,753				1.39
Options granted			385,929				2.16
Options forfeited			(316,180	)			1.25
Options expired			—				—
Options exercised			(220,678	)			1.71
Outstanding balance at December 30, 2018			1,719,824			$	1.55
Options granted			650,000				3.67
Options forfeited			—				—
Options expired			—				—
Options exercised			(25,450	)			1.80
Outstanding balance at December 29, 2019			2,344,374				2.14				2,016				8.6
Exercisable balance at December 29, 2019			1,088,140				1.55				1,992				7.2

 

The estimated fair value of stock options is determined using the Black-Scholes option pricing model (excluding stock options that contain performance vesting conditions) and are amortized over the vesting period on a straight line basis. The Company estimates the expected term of the stock options based on evaluating historical exercise data. The Company considers exercise data based on employee behavior when developing the expected term assumptions. The computation of expected volatility is based on the Company’s historical volatility from its traded common stock over the expected term of the stock option grants. The interest rate for periods within the expected term of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The following weighted average assumptions were used in calculating the estimated fair value of stock options used to compute stock-based compensation expenses:

 

Year ended December 29, 2019

Year ended December 30, 2018

Year ended December 31, 2017

Black-Scholes weighted-average assumptions

Expected dividend yield

N/A

0. 0

%

N/A

Expected volatility

N/A

42.1

%

N/A

Expected forfeiture

N/A

30.0

%

N/A

Risk-free interest rate

N/A

2.84

%

N/A

Expected stock option life in years

N/A

4.0

N/A

Weighted-average stock option fair value per stock option granted

$

N/A

$

1.00

$

N/A

 

All stock options granted during have market-based performance conditions such that tranches of stock awards vest and are issuable only if the Company’s common stock meets or exceeds specified target market prices during the vesting period as defined by the administrator of the Plan. If the market-based performance conditions are met during the option life ( years), the stock options will vest and will expire. These stock options with market-based performance conditions have been valued using the Binomial Model. The following weighted average assumptions were used in calculating the estimated fair value of awards with market-based performance conditions used to compute stock-based compensation expenses:

 

		Year ended December 29, 2019				Year ended December 30, 2018				Year ended December 31, 2017
Binomial Model weighted-average assumptions
Stock Price		$	3.67			$	2.07			$	1.29
Expected volatility			50.0	%			43.0	%			43.0	%
Expected forfeiture			30.0	%			30.0	%			30.0	%
Risk-free interest rate			2.10	%			1.02	%			1.02	%
Expected stock option life in years			3.0				4.0				4.9
Weighted-average stock option fair value per award granted		$	0.95			$	0.47			$	0.30

 

During the years ended and the Company recorded stock-based compensation expense and a corresponding increase in additional paid in capital of and respectively.

 

During the years ended and and options vested, respectively. As at compensation expense of related to non-vested stock options has been recognized.

 

The following table presents information about stock options outstanding as of

 

Outstanding options			Weighted average exercise price				Exercisable options				Weighted average exercise price
300,658				1.80				269,408				1.80
671,858				1.23				403,116				1.23
335,929				1.26				201,558				1.26
50,000				2.74				12,500				2.74
335,929				2.07				201,558				2.07
650,000				3.67				—				—
2,344,374				2.14				1,088,140				1.55

 

 

 

Restricted Stock Units (“RSU”) are settled in shares of common stock. RSUs are issued under the Plan and have same terms and conditions as other equity compensation awards issued under the Plan. RSUs are valued at the closing stock price on the date the RSUs are granted. RSUs typically have vesting terms of to years. The compensation expense is recorded on a straight line basis over the vesting period. Restricted Stock Awards (“RSA”) be issued which typically vest upon grant, however include certain forfeiture conditions. RSAs are issued under the Plan and have same terms and conditions as other equity compensation awards issued under the Plan.

 

RSU’s with market-based performance conditions were granted in or RSU’s issued and outstanding include time-based vesting conditions.

  

		Outstanding options				Weighted average stock price				Weighted average remaining contractual term (years)
Outstanding balance at January 1, 2017			1,090,126				1.22
RSU granted			229,950				1.50
RSU forfeited			(261,606	)			0.89
RSU converted into common shares			(482,447	)			1.72
Outstanding balance at December 31, 2017			576,023				1.13				1.84
RSU/RSA granted			54,811				3.09
RSU forfeited			(75,151	)			0.91
RSU/RSA converted into common shares			(198,306	)			1.82
Outstanding balance at December 30, 2018			357,377			$	0.96				1.21
RSU/RSA granted			375,326				3.55
RSU forfeited			(25,000	)			1.38
RSU/RSA converted into common shares			(359,703	)			1.54
Outstanding balance at December 29, 2019			348,000				3.16				2.23

 

During the periods ended and the Company recorded stock-based compensation expense and a corresponding increase in additional paid in capital of and respectively, with respect to RSUs and RSAs.