Annual report pursuant to Section 13 and 15(d)

Note 15 - Share-based Compensation and Employee Benefit Plans

v3.7.0.1
Note 15 - Share-based Compensation and Employee Benefit Plans
12 Months Ended
Mar. 25, 2017
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
15
Share-based Compensation and Employee Benefit Plans
 
Share-based Compensation
The Company has established the
2005
Equity Incentive Plan, which provides for the granting of stock options and restricted stock for up to
2,850,000
shares of common stock at
100%
of fair market value at the date of grant, with each grant requiring approval by the Board of Directors of the Company. Options granted generally vest in
one
or more installments in a
four
or
five
year period and must be exercised while the grantee is employed by the Company or within a certain period after termination of employment. Options granted to employees shall
not
have terms in excess of
10
years from the grant date. Holders of options
may
be granted stock appreciation rights (SAR), which entitle them to surrender outstanding options for a cash distribution under certain changes in ownership of the Company, as defined in the stock option plan. As of
March 25, 2017,
no
SAR’s have been granted under the option plan. As of
March 25, 2017,
the total number of shares of common stock available for issuance is
1,285,127.
All outstanding options have a
ten
-year life from the date of grant.
 
Stock Options
 
The weighted average grant date fair value of stock options granted during the fiscal years ended
March 25, 2017
and
March 26, 2016
was
$0.83
and
$1.04,
respectively, and was calculated using the following weighted-average assumptions:
 
Fiscal years ended
 
March 25,
2017
   
March 26,
2016
 
Dividend yield
   
     
 
Expected volatility
   
99
%    
98
%
Risk-free interest rate
   
1.54
%    
1.55
%
Expected term (years)
   
8.36
     
8.36
 
 
A summary of the changes in stock options outstanding for the fiscal years ended
March 25, 2017
and
March 26, 2016
is presented below:
 
           
Weighted
   
Weighted 
Average
Remaining
         
(Dollars in thousands except share prices)
 
Shares
   
Average
 Exercise
Price
   
Contractual
Term
 (Years)
   
Aggregate
Intrinsic
Value
 
Outstanding at March 28, 2015
   
1,726,975
    $
1.57
     
6.9
    $
219
 
Granted
   
35,000
     
1.22
     
 
     
 
 
Exercised
   
48,550
     
1.59
     
 
     
 
 
Forfeited / Expired
   
121,225
     
2.15
     
 
     
 
 
Outstanding at March 26, 2016
   
1,592,200
    $
1.52
     
6.8
    $
69
 
Granted
   
148,000
     
0.97
     
 
     
 
 
Exercised
   
     
     
 
     
 
 
Forfeited / Expired
   
635,700
     
1.57
     
 
     
 
 
Outstanding at March 25, 2017
   
1,104,500
    $
1.41
     
6.1
    $
3
 
                                 
Exercisable at March 25, 2017
   
782,550
    $
1.46
     
5.4
    $
 
                                 
At March 25, 2017, expected to vest in the future
   
231,635
    $
1.30
     
7.7
    $
2
 
 
As of
March 25, 2017,
there was
$180,000
of total unrecognized compensation cost related to non-vested options granted under the
2005
Plan and outside of the
2005
Plan. That cost is expected to be recognized over a weighted average period of
3.10
years and will be adjusted for subsequent changes in estimated forfeitures. There were
272,500
and
419,050
options vested during the fiscal years ended
March 25, 2017
and
March 26, 2016
respectively. The total fair value of options vested during the fiscal years ended
March 25, 2017
and
March 26, 2016
was
$315,000
and
$104,000,
respectively. There was
no
exercise in fiscal
2017.
Cash received from the exercise of stock options during fiscal
2016
was
$77,000.
Share based compensation cost recognized in operating results for the fiscal years ended
March 25, 2017
and
March 26, 2016
totaled
$257,000
and
$403,000,
respectively.
 
Restricted Stock
The Company granted
44,500
shares of restricted stock during fiscal
2017
to certain members of the Board of Directors in lieu of cash fees for services performed in fiscal
2017.
There were
no
restricted grants in fiscal
2016.
The Company granted
432,000
shares of restricted stock during fiscal
2015
to certain members of the Board of Directors in lieu of cash fees for services performed in fiscal
2016.
These restricted stocks fully vested in fiscal
2017
and fiscal
2016
respectively, and the vesting date fair value totaled
$29,000
and
$761,000,
respectively. The fiscal
2016
weighted average grant date fair value was
$2.11.
The restricted stock awards are considered fixed awards as the number of shares and fair value at the grant date is amortized over the requisite service period net of estimated forfeitures. Compensation cost recognized for restricted stock awards for fiscal
2017
and fiscal
2016
totaled
$29,000
and
$522,000,
respectively.
 
A summary of the changes in non-vested restricted stock awards outstanding for the fiscal years ended
March 25, 2017
and
March 26, 2016
is presented below:
 
   
Shares
   
Weighted
Average Grant
Date Fair Value
 
Non-vested at March 28, 2015
   
482,000
    $
2.02
 
Granted
   
     
 
 
Vested
   
482,000
     
 
 
Forfeited or cancelled
   
     
 
Non-vested at March 26, 2016
   
    $
 
Granted
   
44,500
     
 
Vested
   
44,500
     
 
Forfeited or cancelled
   
     
 
Non-vested at March 25, 2017
   
    $
 
 
401
(k) Plans
The Company has established
401
(k) plans which cover substantially all employees. Participants
may
make voluntary contributions to the plans for up to
100%
of their defined compensation. The Company matches a percentage of the participant’s contributions in accordance with the plan. Participants vest ratably in Company contributions over a
four
- year period. Company contributions to the plans for fiscal
2017
and
2016
were approximately
$33,000
and
$41,000,
respectively.