Note 14 – Stock-Based Compensation and Warrants

Stock-Based Compensation

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As of September 28, 2025, the Company had 1,825,747 shares available for issuance under the Company’s 2019 Equity Incentive Plan (the “2019 Equity Plan”).

Stock-based compensation cost was $1.2 million and $1.6 million for the three periods ended September 28, 2025 and the three months ended September 30, 2024, respectively, and $4.3 million and $4.4 million for the nine periods ended September 28, 2025 and the nine months ended September 30, 2024, respectively. Stock-based compensation is included in general and administrative expenses in the condensed consolidated statements of operations. Included in stock-based compensation cost was $0.2 million and $0.6 million of stock granted to directors for the three and nine periods ended September 28, 2025, respectively, compared to $0.2 million and $0.5 million for the three and nine months ended September 30, 2024, respectively. Such grants were awarded consistent with the Board of Director’s compensation practices. Stock-based compensation for the three and nine periods ended September 28, 2025 included $0.2 million and $0.7 million, respectively, of compensation costs for performance stock units that contain both a market condition and time element (“PSUs”) compared to $0.2 million and $0.6 million for the three and nine months ended September 30, 2024, respectively.

Stock Option Activity

Stock options in the table below include both time-based and market condition-based awards. Changes in stock options during the nine periods ended September 28, 2025 were as follows:

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A summary of the status of the Company’s non-vested stock options during the nine periods ended September 28, 2025 is presented below:

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The fair value of options that vested in the nine periods ended September 28, 2025 was $0.9 million. As of September 28, 2025, there is no unrecognized compensation cost related to non-vested awards.

Restricted Stock Unit Activity

The Company issues restricted stock units (“RSUs”) under the 2019 Equity Plan. RSUs in the table below include time-based awards. The fair value of time-based RSUs is determined based upon the closing market value of the Company’s common stock on the grant date.

A summary of the status of RSUs and changes during the nine periods ended September 28, 2025 is presented below:

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As of September 28, 2025, the Company had approximately $3.9 million of unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 1.9 years.

Performance Stock Unit Activity

The Company issues PSUs under the 2019 Equity Plan. PSUs in the table below include both a market condition and time element. The PSUs may be earned based on achieving common stock price targets within a time period, and if earned, will vest and be settled based on a time element specified in the respective agreement For PSUs granted during 2025, the Company, with the assistance of a third-party specialist, calculated the fair value using the Monte Carlo Simulation, a risk-free rate of 3.9%, a starting common stock value of $2.98, volatility of 71%, and a standard normal distribution. The PSUs were valued at $0.3 million and are amortized evenly over 36 months. 

A summary of the status of PSUs and changes during the nine periods ended September 28, 2025 is presented below:

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As of September 28, 2025, the Company had $1.1 million of unrecognized compensation costs related to PSUs, which will be recognized over a weighted average period of 1.3 years.