Annual report pursuant to Section 13 and 15(d)

Note 15 - Share-based Compensation and Employee Benefit Plans

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Note 15 - Share-based Compensation and Employee Benefit Plans
 12 Months Ended
Mar. 26, 2016
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 26, 2016, no SAR’s have been granted under the option plan. As of March 26, 2016, the total number of shares of common stock available for issuance is 955,427. 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 26, 2016 and March 28, 2015 was $1.04 and $1.66, respectively, and was calculated using the following weighted-average assumptions:
 
Fiscal years ended
  
March 26,
2016
    
March 28,
2015
  
Dividend yield
     —       —  
Expected volatility
     98 %     92 %
Risk-free interest rate
     1.55 %     1.61 %
Expected term (years)
     8.36       8.34  
 
A summary of the changes in stock options outstanding for the fiscal years ended March 26, 2016 and March 28, 2015 is presented below:
 
           
Weighted
    
Weighted
Average
         
(Dollars in thousands except share prices)
  
Shares
    
Average
Exercise
Price
    
Remaining
Contractual
Term (Years)
    
Aggregate
Intrinsic
Value
  
Outstanding at March 29, 2014
     1,738,750     $ 1.53       6.8     $ 113  
Granted
    306,500       2.01                  
Exercised     90,000       1.80                  
Forfeited / Expired     228,275       1.81                  
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  
                                 
Exercisable at March 26, 2016
     900,350     $ 1.47       6.4     $ 41  
                                 
At March 26, 2016, expected to vest in the future
     467,071     $ 1.58       7.4     $ 15  
 
As of March 26, 2016, there was $414,000 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 2.4 years and will be adjusted for subsequent changes in estimated forfeitures. There were 419,050 and 280,650 options vested during the fiscal years ended March 26, 2016 and March 28, 2015 respectively. The total fair value of options vested during the fiscal years ended March 26, 2016 and March 28, 2015 was $104,000 and $120,000, respectively. Cash received from the exercise of stock options during fiscal 2016 and fiscal 2015 was $77,000 and $163,000, respectively. Share based compensation cost recognized in operating results for the fiscal years ended March 26, 2016 and March 28, 2015 totaled $403,000 and $370,000, respectively.
 
Restricted Stock
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 2015 and fiscal 2016. These restricted stock fully vested in fiscal 2016 and the vesting date fair value totaled $761,000. The 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 2016 and fiscal 2015 totaled $522,000 and $457,000, respectively.
 
A summary of the changes in non-vested restricted stock awards outstanding for the fiscal years ended March 26, 2016 and March 28, 2015 is presented below:
 
   
Shares
    
Weighted
Average Grant
Date Fair Value
  
Non-vested at March 29, 2014
     121,500     $ 1.39  
Granted
     432,000       2.11  
Vested
     71,500       1.53  
Forfeited or cancelled
     —       —  
Non-vested at March 28, 2015
     482,000     $ 2.02  
Granted
     —       —  
Vested
     482,000       2.02  
Forfeited or cancelled
     —       —  
Non-vested at March 26, 2016
     —     $ —  
 
 
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 2016 and 2015 were approximately $41,000 and $39,000, respectively.