SMTC Corporation Annual report pursuant to Section 13 and 15(d)

Note 8 - Stock-based Compensation (Tables)

12 Months Ended

Dec. 30, 2018

	Total Outstanding options			Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual term (years)
Outstanding balance at January 3, 2016		655,114		$	1.98
Options granted		387,255			1.33
Options forfeited		(363,847	)		1.46
Options expired		(61,756	)		3.46
Options exercised		—			—
Outstanding balance at January 1, 2017		616,766			1.82
Options granted		1,468,716			1.29
Options forfeited		(40,722	)		1.80
Options expired		(174,007	)		1.89
Options exercised		—			—
Outstanding balance at December 31, 2017		1,870,753			1.39
Options granted		385,929			2.16
Options forfeited		(316,180	)		1.25
Options expired		—			—
Options exercised		(220,678	)		1.71

Outstanding balance at December 30, 2018		1,719,824		$	1.55	$	1,998		8.6

Exercisable balance at December 30, 2018		771,192		$	1.55	$	1,871		8.0

	Year ended December 3 0 , 2018			Year ended December 31, 2017		Year ended January 1, 2017
Black-Scholes weighted-average assumptions

Expected dividend yield		0.0	%		N/A		0.0	%
Expected volatility		42.1	%		N/A		43.8	%
Expected forfeiture		30.0	%		N/A		29.0	%
Risk-free interest rate		2.84	%		N/A		1.33	%
Expected stock option life in years		4.0			N/A		4.0

Weighted-average stock option fair value per stock option granted	$	1.00		$	N/A	$	0.48

Outstanding options	Weighted average exercise price		Exercisable options		Weighted average exercise price
326,108	$	1.80		233,704	$	1.80
671,858		1.23		268,744		1.23
335,929		1.26		134,372		1.26
50,000		2.74		—		—
335,929		2.07		134,372		2.07
1,719,824		1.55		771,192		1.55

Year ended

December 3

2018

(

)

Year ended

December 31,

2017 (1)

Year ended

January 1,

2017

Binomial Model weighted-average assumptions

Stock Price

N/A

1.34

Expected volatility

N/A

42.2

Expected forfeiture

N/A

29.0

Risk-free interest rate

N/A

0.60

RSU term in years

N/A

3.0

Weighted-average RSU fair value per award granted

N/A

0.42

	Outstanding options			Weighted average stock price		Weighted average remaining contractual term (years)

Outstanding balance at January 3, 2016		479,564		$	1.88
RSU granted		987,764			0.84
RSU forfeited		(352,077	)		0.87
RSU converted into common shares		(25,125	)		1.99

Outstanding balance at January 1, 2017		1,090,126			1.22		1.01

RSU granted		229,950			1.50
RSU forfeited		(261,606	)		0.89
RSU converted into common shares		(482,447	)		1.72

Outstanding balance at December 31, 2017		576,023			1.13		1.84

RSU granted		54,811			3.09
RSU forfeited		(75,151	)		0.91
RSU converted into common shares		(198,306	)		1.82

Outstanding balance at December 30, 2018		357,377		$	0.96		1.21

	Year ended December 3 0 , 2018			Year ended December 31, 2017			Year ended January 1, 2017 (1)
Binomial Model weighted-average assumptions

Stock Price	$	2.07		$	1.29			N/A
Expected volatility		43.0	%		43.0	%		N/A
Expected forfeiture		30.0	%		30.0	%		N/A
Risk-free interest rate		1.02	%		1.02	%		N/A
Expected stock option life in years		4.0			4.9			N/A

Weighted-average stock option fair value per award granted	$	0.47		$	0.30		$	N/A