Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Capital stock

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Note 5 - Capital stock
 9 Months Ended
Sep. 29, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

5.       Capital stock


Common shares


Authorized share capital:


The authorized share capital of the Company at September 29, 2013 and December 30, 2012 consisted of:


 

(i)

26,000,000 shares of common stock, par value $0.01 per share: Holders are entitled to one vote per share and the right to share in dividends pro rata subject to any preferential dividend rights of any then outstanding preferred stock.


 

(ii)

5,000,000 shares of special voting stock, par value $0.01 per share: From time to time the Company may issue special voting stock in one or more series and will fix the terms of that series at the time it is created.


Issued and outstanding:


The issued and outstanding number of common shares included in shareholders’ equity consisted of the following as of September 29, 2013:


   

Number
of shares

    $  

Common Stock

               
                 

Common shares:

               

Balance at beginning of the nine month period

    16,344,193     $ 389  

Shares issued pursuant to:

               

Exercise of stock options

    16,667       —  

Balance at end of the period

    16,360,860     $ 389  
                 

Total Common stock

    16,360,860     $ 389  

Stock options


For information regarding the Company’s stock option arrangements, see Note 6 of the consolidated financial statements included in the Form 10-K. During the nine month period ended September 29, 2013, 235,000 options were granted to employees. The Company generally issues new shares when options are exercised. A summary of stock option activity for the nine month period ended September 29, 2013 is as follows:


   

Number
of options

   

Weighted
average
exercise
price

   

Aggregate
intrinsic
value

   

Weighted
average
remaining
contractual
term (years)

 

Outstanding at December 30, 2012

    1,400,807     $ 2.82                  

Options granted

    235,000     $ 2.06                  

Options exercised

    (16,667 )   $ 0.70                  

Options forfeited or cancelled

    (705,744 )   $ 3.01                  

Outstanding at September 29, 2013

    913,396     $ 2.50     $ 58       3.7  

Exercisable at September 29, 2013

    582,562     $ 2.03     $ 58       3.1  

During the three month periods ended September 29, 2013 and September 30, 2012, the Company recorded stock-based compensation expense (recovery) and a corresponding increase (decrease) in additional paid-in capital of ($41) and $55, respectively. During the nine month periods ended September 29, 2013 and September 30, 2012, the Company recorded stock-based compensation expense and a corresponding increase in additional paid-in capital of $140 and $257, respectively. At September 29, 2013, compensation expense of $401 related to non-vested stock options had not been recognized.