Note 3 – Stockholders’ Equity and Share-Based Compensation

Public Equity Offering

On August 18, 2020, the Company completed an underwritten public equity offering of 4,000 shares of its common stock at a public offering price of $13.00 per share, resulting in net proceeds of $48,831 after deducting underwriters’ offering expenses and commissions. As part of the public equity offering, the Company granted the underwriters a 30-day option to purchase up to 900 shares of its common stock at the public offering price. The underwriters subsequently exercised their option in full within 30 days to purchase 900 shares of the Company’s common stock resulting in additional net proceeds of $11,700. The Company intends to use the net proceeds from the public equity offering for working capital and other general corporate purposes.

Options and Restricted Stock Units

The Company had the following common stock option activity during the thirty-nine weeks ended September 26, 2020:

The following table summarizes the Company’s restricted stock unit ("RSU") activity for the thirty-nine weeks ended September 26, 2020, and details regarding the awards outstanding and exercisable at September 26, 2020 (in thousands):

 

During the thirty-nine weeks ended September 26, 2020,  187 RSUs that vested were time-based and 1,787 were performance-based. In addition, 56 shares were released to a departing employee and 7 shares were issued as partial payment for director’s fee as elected by a current Board member. For the RSUs awarded, the number of shares issued on the date of vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. For those employees who elect not to receive shares net of the minimum statutory withholding requirements, the appropriate taxes are paid directly by the employee. During the thirty-nine weeks ended September 26, 2020, we withheld 37 shares to satisfy $888 of employees’ tax obligations. Although shares withheld are not issued, they are treated as a common stock repurchase in our consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting.

For the thirteen and thirty-nine weeks ended September 26, 2020, we recorded compensation costs related to stock options and RSUs of $1,773 and $6,466, respectively. For the thirteen and thirty-nine weeks ended September 28, 2019, we recorded compensation costs related to stock options and RSUs of $813 and $1,992, respectively. As of September 26, 2020, there was unrecognized compensation expense related to stock options and RSUs of $9,353 that will be expensed through September 2024.