Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

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Stock Based Compensation
3 Months Ended
Dec. 29, 2019
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation

Note 7-Stock Based Compensation

 

Stock Options issued to Employees, Officers and Directors

 

The Optex Systems Holdings 2009 Stock Option Plan provides for the issuance of up to 75,000 shares to the Company’s officers, directors, employees and to independent contractors who provide services to Optex Systems Holdings as either incentive or non-statutory stock options determined at the time of grant. As of September 29, 2019, there were 25,000 fully vested stock options outstanding at an exercise price of $10 per share and an expiration date of December 18, 2020. During the three months ended December 29, 2019, all of the 25,000 outstanding stock options were repurchased at $0.01 per option for a total transaction of $250. There were no new grants of stock options during the three months ended December 29, 2019. As of December 29, 2019, there are zero stock options outstanding.

 

Restricted Stock Units issued to Officers and Employees

 

The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock units granted under the Company’s 2016 Restricted Stock Unit Plan:

 

    Outstanding Unvested RSU’s  
Unvested as of October 1, 2018     99,000  
Granted - year ended September 29, 2019     200,000  
Vested - year ended September 29, 2019     (82,500 )
Unvested as of September 29, 2019     216,500  
Granted – three months ended December 29, 2019     -  
Vested - three months ended December 29, 2019     -  
Unvested as of December 29, 2019     216,500  

 

Pursuant to the executive compensation package approved by our board of directors on November 20, 2018:

 

On January 2, 2019, the Company granted 150,000 and 50,000 restricted stock units with a January 2, 2019 grant date, to Danny Schoening and Karen Hawkins, respectively, vesting as of January 1 each year subsequent to the grant date over a three-year period at a rate of 34% in year one, and 33% each year thereafter. The stock price at grant date was $1.32 per share. The Company will amortize the grant date fair market value of $264 thousand to stock compensation expense on a straight-line basis across the three-year vesting period beginning on January 2, 2019.
   
Effective as of January 1, 2019, Danny Schoening, CEO and Karen Hawkins, CFO received an 8% salary increase.

 

On January 7, 2019, the Company issued 55,565 common shares to three directors and officers, net of tax withholding of $37 thousand, in settlement of 82,500 restricted stock units which vested on January 1, 2019.

 

On January 7, 2020, the Company issued 59,447 common shares to one director and two officers, net of tax withholding of $54 thousand, in settlement of 84,500 restricted stock units which vested on January 1, 2020. (see subsequent events)

 

Stock Based Compensation Expense

 

Equity compensation is amortized based on a straight-line basis across the vesting or service period as applicable. The recorded compensation costs for options and shares granted and restricted stock units awarded as well as the unrecognized compensation costs are summarized in the table below:

 

    Stock Compensation  
    (thousands)  
    Recognized Compensation Expense     Unrecognized Compensation Expense  
    Three months ended     As of period ended  
    December 29, 2019     December 30, 2018     December 29, 2019     September 29, 2019  
                         
Restricted Stock Units                   26       36       174       200  
Total Stock Compensation   $ 26     $ 36     $ 174     $ 200