Note 11 - Stock-based Compensation

6 Months Ended

Jun. 28, 2026

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 11 — Stock-Based Compensation

Stock-based compensation expense included in the Company's unaudited condensed consolidated financial statements for the three and six months ended June 28, 2026 and June 29, 2025 was as follows (in thousands):

		*Three Months Ended*								*Six Months Ended*
		*June 28, 2026*				*June 29, 2025*				*June 28, 2026*				*June 29, 2025*
Cost of revenue		$	158			$	189			$	314			$	347
Research and development			139				205				347				347
Selling, general and administrative			457				449				951				1,085
Total		$	754			$	843			$	1,612			$	1,779

The Company capitalized certain stock-based compensation amounts to capitalized internal-use software, net of $18 thousand and $32 thousand for the three and six months ended June 28, 2026, respectively, and $9 thousand and $28 thousand for the three and six months ended June 29, 2025, respectively. The capitalized stock-based compensation amounts relate to compensation for employees involved in the development of capitalized internal-use software.

Stock-Based Compensation Award Activity

The following table summarizes the activity in the shares available for grant under the 2019 Plan during the six months ended June 28, 2026 (in thousands):

		*Shares Available for Grants*
Balance at December 28, 2025			584
PSUs/RSUs granted			(44	)
PSUs/RSUs forfeited or expired			8
Balance at June 28, 2026			548

Stock Options

The following table summarizes stock options outstanding and stock option activity under the 2009 Plan and the 2019 Plan, and the related weighted average exercise price for the six months ended June 28, 2026:

						*Weighted*				*Weighted*
						*Average*				*Average*				*Aggregate*
		*Number of*				*Exercise*				*Remaining*				*Intrinsic*
		*Shares*				*Price*				*Term*				*Value*
		(in thousands)								(in years)				(in thousands)
Balance outstanding at December 28, 2025			48			$	12.05
Exercised			(42	)		$	12.05
Forfeited or expired			—			$	—
Balance outstanding, exercisable, and vested at June 28, 2026			6			$	12.05				0.19			$	40

Stock options in the amount of 42 thousand shares were exercised during the six months ended June 28, 2026. No stock options were granted or forfeited during the six months ended June 28, 2026. No stock options were granted, exercised, or forfeited during the six months ended June 29, 2025.

Total stock-based compensation related to stock options was $0 during the six months ended June 28, 2026 and June 29, 2025.

Restricted Stock Units

The Company grants restricted stock units (“RSUs”) and performance restricted stock units ("PRSUs") to employees and directors with various vesting terms. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation expense related to RSUs and PRSUs was approximately $0.7 million and $1.5 million for the three and six months ended June 28, 2026, respectively, and $0.8 million and $1.7 million for the three and six months ended June 29, 2025, respectively.

As of June 28, 2026 and June 29, 2025, there was approximately $2.1 million and $1.9 million, respectively, in unrecognized stock-based compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of June 28, 2026 is expected to be recorded over a weighted average period of 0.99 years.

A summary of activity for the Company's RSUs and PRSUs for the six months ended June 28, 2026 is as follows:

		*RSUs & PRSUs Outstanding*
						*Weighted*
						*Average*
		*Number of*				*Grant Date*
		*Shares*				*Fair Value*
		(in thousands)
Nonvested at December 28, 2025			746			$	5.67
Granted			44				12.27
Vested and released			(38	)			7.48
Forfeited			(8	)			5.97
Nonvested at June 28, 2026			744			$	5.97

Employee Stock Purchase Plan

Total stock-based compensation in continuing operations related to the Company's Employee Stock Purchase Plan was approximately $48 thousand and $95 thousand for the three and six months ended June 28, 2026, respectively, and $20 thousand and $60 thousand for the three and six months ended June 29, 2025, respectively.