Note 6 - Stock-based Compensation
|12 Months Ended|
Jan. 03, 2016
|Notes to Financial Statements|
|Disclosure of Compensation Related Costs, Share-based Payments [Text Block]||
2010 Incentive Plan:
The Company settles its stock options in equity. In July 2010, the Company approved a stock option plan, the 2010 SMTC Incentive Plan (the “2010 Incentive Plan”). The 2010 Incentive Plan permits the issuance of up to 350,000 shares plus an additional number of shares determined by the Board of Directors but not to exceed 1% of the total number of fully diluted shares outstanding per year. Options vest over a one to three-year period and expire five to 10 years from their respective date of grant.
In June 2011, the Company voted to increase the amount of shares available under the 2010 Plan by 670,000 and in June 2012 the Company voted to increase the number of shares available under the 2010 Plan by 652,000. There was no vote to increase the number of shares available under the plan in 2013, 2014 and 2015 and as such the authorized increase to the number of shares was calculated as 163,619, 164,173 and 176,197 respectively based on 1% of the fully diluted common shares as at December 29, 2013, December 28, 2014 and January 3, 2016 respectively. In 2015, 67,779 restricted stock units were converted into common shares and therefore, there are 2,108,210 shares authorized to issue under the 2010 Incentive Plan.
A summary of stock option activity under the Incentive Plans for the years ended December 29, 2013, December 28, 2014 and January 3, 2016 is as follows:
The estimated fair value of options is determined using the Black-Scholes option pricing model and is amortized over the vesting period on a straight line basis. The Company estimates the expected term of the 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 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 options used to compute stock-based compensation expenses:
During the years ended January 3, 2016, December 28, 2014 and December 29, 2013, the Company recorded stock-based compensation expense and a corresponding increase in additional paid in capital of $175, $133 and $248, respectively.
During the years ended January 3, 2016, December 28, 2014 and December 29, 2013, 257,430, 95,002 and 158,334 options vested, respectively. As at January 3, 2016, compensation expense of $217 related to non-vested stock options has not been recognized.
The following table presents information about stock options outstanding as of January 3, 2016:
Restricted Stock Units
Restricted Stock Units (“RSU”) are settled in equity. RSUs are issued under the 2010 Incentive Plan and have same terms and conditions as other equity compensation awards issued under the 2010 Incentive Plan. The RSUs are valued at the closing stock price on the date the units are granted. RSUs have vesting terms of one to three years. The compensation expense is recorded on a straight line basis over the vesting period.
During the periods ended January 3, 2016, December 28, 2014 and December 29, 2013, the Company recorded stock-based compensation expense and a corresponding increase in additional paid in capital of $335, $131, and $ nil, respectively, with respect to RSUs.
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef