Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

v3.2.0.727
Stock Based Compensation
 9 Months Ended
Jun. 28, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
Stock Based Compensation

Note 7 Stock Based Compensation

 

Optex Systems Holdings has granted stock options to officers and employees as follows:

 

Date of   Shares     Exercise     Shares Outstanding     Expiration   Vesting
Grant   Granted     Price     As of 6/28/15     Date   Period
                           
03/30/09     1,414,649     $ 0.15       1,414,649     03/29/2016   3 years
05/14/09     1,267,000     $ 0.15       1,073,000     05/13/2016   4 years
12/09/11     46,070,000     $ 0.01       35,370,000     12/08/2018   4 years
12/19/13     25,000,000     $ 0.01       25,000,000     12/18/2020   4 years
Total     73,751,649               62,857,649          

 

Optex Systems Holdings recorded compensation costs for options and shares granted under the plan amounting to for $25 thousand and $116 thousand for the three and nine months ended June 28, 2015, respectively, and $29 thousand and $76 thousand for the three and nine months ended June 29, 2014, respectively. The $116 thousand of compensation expense recorded during the nine months ending June 28, 2015 included $57 thousand of expenses directly attributable to the early vesting of 12,500 shares on the resignation of the Chairman of the Board on November 19, 2014.

 

The following table summarizes the status of Optex Systems Holdings’ aggregate stock options granted under the incentive stock option plan:

 

    Number     Weighted              
    of Shares     Average     Weighted     Aggregate  
    Remaining     Fair     Average     Value  
Subject to Exercise   Options     Value     Life (Years)     (Thousands)  
Outstanding as of September 29, 2013     48,247,649     $ —       3.56       —  
Granted – 2014     25,000,000     $ 0.01       5.22     $ 200  
Forfeited – 2014     (5,336,000 )   $ —               —  
Exercised – 2014     (5,000,000 )   $ 0.01               —  
Outstanding as of September 28, 2014     62,911,649     $ —       3.41       —  
Granted – 2015     —     $               $    
Forfeited – 2015     (54,000 )   $                 —  
Exercised – 2015     —     $                 —  
Outstanding as of June 28, 2015     62,857,649               2.56     $ —  
                                 
Exercisable as of September 28, 2014     20,201,649     $ —       1.76     $ —  
                                 
Exercisable as of June 28, 2015     40,265,149     $ —       1.69     $ —  

 

There were zero and 25,000,000 options granted in the nine months ended June 28, 2015 and June 29, 2014, respectively.

 

The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested shares granted under the 2009 Stock Option Plan:

 

    Number of
Non-vested 
Shares
Subject to
Options 		    Weighted-
Average
Grant-
Date
Fair Value 		 
Non-vested as of September 29, 2013     30,547,500     $ 0.01  
Non-vested granted — year ended September 28, 2014     25,000,000     $ 0.01  
Vested — year ended September 28, 2014     (7,501,500 )   $ 0.01  
Forfeited — year ended September 28, 2014     (5,336,000 )   $    
Non-vested as of September 28, 2014     42,710,000     $ 0.01  
Non-vested granted — nine months ended June 28, 2015     —     $ —  
Vested — nine months ended June 28, 2015     (20,063,500 )   $ 0.01  
Forfeited — nine months ended June 28, 2015     (54,000 )   $ —  
Non-vested as of June 28, 2015     22,592,500     $ 0.01  

 

As of June 28, 2015, the unrecognized compensation cost for non-vested share based compensation arrangements granted under the plan was approximately $159 thousand.  These costs are expected to be recognized on a straight line basis through December 2017.

 

Warrant Agreements: Optex Systems Holdings calculates the fair value of warrants issued with debt or preferred stock using the Black-Scholes-Merton valuation method. The total proceeds received in the sale of debt or preferred stock and related warrants are allocated among these financial instruments based on their relative fair values. The discount arising from assigning a portion of the total proceeds to the warrants issued is recognized as interest expense for debt from the date of issuance to the earlier of the maturity date of the debt or the conversion dates using the effective yield method.

 

As of June 28, 2015, Optex Systems Holdings had the following warrants outstanding:

 

    Grant Date   Warrants 
Granted 		    Exercise 
Price 		    Outstanding 
as of 
6/28/15 		    Expiration 
Date 		  Term
Avidbank- Line of Credit   3/4/2010     1,000,000     $ 0.10       1,000,000     3/3/2016   6 years
Total Warrants         1,000,000               1,000,000          

 

During the three and nine months ended June 28, 2015 and the three and nine months ended June 29, 2014, Optex Systems Holdings recorded zero interest expense related to the outstanding warrants. Interest expense related to outstanding warrants was fully amortized as of September 28, 2014.