The Company has incentive stock plans, the Omnibus Incentive Plan (the Plan”) and the Omnibus Equity Compensation Plan (the Plan”). As a result of the approval of the Plan by the Company’s stockholders at the Company’s annual meeting, grants longer be issued under the Plan.

 

The Company believes that awards of long-term, equity-based incentive compensation will attract and retain directors, officers and employees of the Company and will encourage these individuals to contribute to the successful performance of the Company, which will lead to the achievement of the Company’s overall goal of increasing stockholder value. Awards granted under the Plan be in the form of incentive stock options, non-qualified stock options, shares of restricted or unrestricted stock, stock units, stock appreciation rights, or other stock-based awards. Awards be granted subject to the achievement of performance goals or other conditions, and certain awards be payable in stock or cash, or a combination of the two. The Plan is administered by the Compensation Committee of the Board, which selects eligible employees, non-employee directors and other individuals to participate in the Plan and determines the type, amount, duration (such duration to exceed a term of () years for grants of options) and other terms of individual awards. At shares of the Company’s common stock were available for future issuance under the Plan.

 

Stock-based compensation is calculated according to FASB ASC Topic , which requires stock-based compensation to be accounted for using a fair-value-based measurement. During fiscal years and the Company recorded and of stock-based compensation, respectively. The Company records the compensation expense associated with stock-based awards granted to individuals in the same expense classifications as the cash compensation paid to those same individuals. stock-based compensation costs were capitalized as part of the cost of an asset as of

 

The following table represents stock option activity for fiscal years and

 

		Fiscal Year Ended April 1, 2018								Fiscal Year Ended April 2, 2017								Fiscal Year Ended April 3, 2016
		Weighted-								Weighted-								Weighted-
		Average				Number of				Average				Number of				Average				Number of
		Exercise				Options				Exercise				Options				Exercise				Options
		Price				Outstanding				Price				Outstanding				Price				Outstanding
Outstanding at Beginning of Period		$	8.35				322,500			$	7.64				305,000			$	6.83				330,000
Granted			7.35				140,000				9.60				120,000				8.38				110,000
Exercised			-				-				7.67				(102,500	)			6.27				(135,000	)
Forfeited			9.05				(67,500	)			-				-				-				-
Outstanding at End of Period			7.93				395,000				8.35				322,500				7.64				305,000
Exercisable at End of Period			7.94				220,000				7.33				147,500				6.72				112,500

 

The total intrinsic value of the stock options exercised during fiscal years and was and respectively. As of the intrinsic value of the outstanding and exercisable stock options was and respectively.

 

There were options exercised during fiscal year The Company received cash from the exercise of stock options during either fiscal year or Upon the exercise of stock options, participants choose to surrender to the Company those shares from the option exercise necessary to satisfy the exercise amount and their income tax withholding obligations that arise from the option exercise. The effect on the cash flow of the Company from these “cashless” option exercises is that the Company remits cash on behalf of the participant to satisfy his or her income tax withholding obligations. The Company used cash of and to remit the required income tax withholding amounts from “cashless” option exercises during fiscal years and respectively.

 

Because the cash remitted on behalf of the participant to satisfy his or her income tax withholding obligations does exceed the maximum statutory tax rates in the applicable jurisdictions multiplied by the taxable income that arose from the option exercise, the Company's stock-based awards qualify for equity classification, as opposed to classification as a liability.

 

To determine the estimated fair value of stock options granted, the Company uses the Black-Scholes-Merton valuation formula, which is a closed-form model that uses an equation to estimate fair value. The following table sets forth the assumptions used to determine the fair value of the non-qualified stock options awarded to certain employees during fiscal years and which options vest over a -year period, assuming continued service.

 

		Stock Options Issued to Employees During Fiscal Years
		2018												2017				2016
Number of options issued			10,000				20,000				110,000				120,000				110,000
Grant date		December 18, 2017				August 4, 2017				June 8, 2017				June 8, 2016				June 12, 2015
Dividend yield			4.92	%			5.77	%			4.13	%			3.33	%			3.82	%
Expected volatility			25.00	%			25.00	%			25.00	%			20.00	%			20.00	%
Risk free interest rate			1.94	%			1.51	%			1.47	%			0.93	%			1.12	%
Contractual term (years)			10.00				10.00				10.00				10.00				10.00
Expected term (years)			3.00				3.00				3.00				3.00				3.00
Forfeiture rate			5.00	%			5.00	%			5.00	%			5.00	%			5.00	%
Exercise price (grant-date closing price) per option		$	6.50			$	5.55			$	7.75			$	9.60			$	8.38
Fair value per option		$	0.59			$	0.50			$	0.85			$	0.94			$	0.77

 

For the fiscal years ended and the Company recognized compensation expense associated with stock options as follows (in thousands):

 

		Fiscal Year Ended April 1, 2018
Options Granted in Fiscal Year		Cost of Products Sold				Marketing & Administrative Expenses				Total Expense
2016		$	6			$	1			$	7
2017			26				15				41
2018			17				19				36
Total stock option compensation		$	49			$	35			$	84

 

		Fiscal Year Ended April 2, 2017
		Cost of				Marketing &
		Products				Administrative				Total
Options Granted in Fiscal Year		Sold				Expenses				Expense
2015		$	14			$	12			$	26
2016			23				19				42
2017			25				17				42
Total stock option compensation		$	62			$	48			$	110

 

		Fiscal Year Ended April 3, 2016
		Cost of				Marketing &
		Products				Administrative				Total
Options Granted in Fiscal Year		Sold				Expenses				Expense
2014		$	7			$	7			$	14
2015			54				45				99
2016			17				14				31
Total stock option compensation		$	78			$	66			$	144

 

A summary of stock options outstanding and exercisable as of is as follows:

 

Exercise Price					Number of Options Outstanding				Weighted- Avg. Remaining Contractual Life in Years				Weighted- Avg. Exercise Price of Options Outstanding				Number of Options Exercisable				Weighted- Avg. Exercise Price of Options Exercisable
$4.00	-	4.99				5,000				3.19				$4.81				5,000				$4.81
$5.00	-	5.99				40,000				6.77				$5.49				20,000				$5.42
$6.00	-	6.99				30,000				6.71				$6.26				20,000				$6.14
$7.00	-	7.99				160,000				8.07				$7.81				60,000				$7.90
$8.00	-	8.99				70,000				7.20				$8.38				70,000				$8.38
$9.00	-	9.99				90,000				8.19				$9.60				45,000				$9.60
						395,000				7.65				$7.93				220,000				$7.94

As of total unrecognized stock-option compensation costs amounted to which will be recognized as the underlying stock options vest over a weighted-average period of months. The amount of future stock-option compensation expense could be affected by any future stock option grants and by the separation from the Company of any employee or director who has stock options that are unvested as of such individual’s separation date.

 

The Board granted the following shares of non-vested stock to the Company’s non-employee directors:

 

Number			Fair Value
of Shares			per Share			Grant Date
28,000				$5.50		August 9, 2017
28,000				10.08		August 10, 2016
28,000				8.20		August 12, 2015
28,000				7.97		August 11, 2014
28,000				6.67		August 14, 2013

 

These shares vest over a -year period, assuming continued service. The fair value of non-vested stock granted to the Company’s non-employee directors was based on the closing price of the Company’s common stock on the date of each grant. In each of and shares that had been granted to the Company’s non-employee directors vested, having an aggregate value of and respectively.

 

During the -month period ended the Board awarded shares of non-vested stock to certain employees in a series of grants, each of which will vest only if (i) the closing price of the Company’s common stock is at or above certain target levels for any trading days out of any period of consecutive trading days and (ii) the respective employees remain employed through The Company, with the assistance of an independent party, determined that the aggregate grant date fair value of the awards amounted to million.

 

With the closing price conditions having been met for these awards, the Board at various times approved the acceleration of the vesting of shares from these grants. The vesting of these awards was accelerated in order to maximize the deductibility of the compensation expense associated with the grants by the Company for income tax purposes. On the remaining of these shares vested, with such shares having an aggregate value of million. Each of the individuals holding shares that vested surrendered to the Company the number of shares necessary to satisfy the income tax withholding obligations that arose from the vesting of the shares, and the Company remitted to the appropriate taxing authorities on behalf of such individuals.

 

The Company maintains a performance bonus plan for certain executive officers that provides for awards of cash or shares of common stock in the event that the aggregate average market value of the common stock during the relevant fiscal year, plus the amount of cash dividends paid in respect of the common stock during such period, increases.  These individuals instead be awarded cash, if and to the extent that an insufficient number of shares of common stock are available for issuance from all shareholder-approved, equity-based plans or programs of the Company in effect. The performance bonus plan also imposes individual limits on awards and provides that shares of common stock that be awarded will vest over a -year period. Thus, compensation expense associated with performance bonus plan awards are recognized over a -year period – the fiscal year in which the award is earned, plus the -year vesting period.

 

In connection with the performance bonus plan, the Company granted shares of common stock and recognized or will recognize compensation expense as set forth below.

 

Fiscal Year		Shares				Fiscal Year				Fair Value Per				Compensation expense recognized during fiscal year
Earned		Granted				Granted				Share				2014				2015				2016				2017				2018				2019
2014			188,232				2015			$	5.650			$	354,000			$	354,000			$	354,000			$	-			$	-			$	-
2015			58,532				2016				7.180				-				140,000				140,000				140,000				-				-
2016			41,205				2017				7.865				-				-				108,000				108,000				108,000				-
2017			42,250				2018				8.271				-				-				-				116,000				116,000				116,000

 

The below table sets forth the vesting of shares issued in connection with the grants of shares set forth in the above table. Each of the individuals holding shares that vested surrendered to the Company the number of shares necessary to satisfy the income tax withholding obligations that arose from the vesting of the shares. The below table also sets forth the taxes remitted to the appropriate taxing authorities on behalf of such individuals.

 

	Fiscal							Vesting of shares during fiscal year 2016												Vesting of shares during fiscal year 2017												Vesting of shares during fiscal year 2018
	Year Granted			Shares Granted				Shares Vested				Aggregate Value				Taxes Remitted				Shares Vested				Aggregate Value				Taxes Remitted				Shares Vested				Aggregate Value				Taxes Remitted
	2015				188,232				188,532			$	1,618,000			$	789,000				-			$	-			$	-				-			$	-			$	-
	2016				58,532				29,267				275,000				138,000				29,265				240,000				86,000				-				-				-
	2017				41,205				-				-				-				-				-				-				20,604				167,000				56,000

 

For the fiscal years ended and the Company recognized compensation expense associated with non-vested stock grants, which is included in marketing and administrative expenses in the accompanying consolidated statements of income, as follows (in thousands):

 

			Fiscal Year Ended April 1, 2018
						Non-employee				Total
Stock Granted in Fiscal Year		Employees				Directors				Expense
2016		$	-			$	38			$	38
2017			108				141				249
2018			116				52				168
Total stock grant compensation		$	224			$	231			$	455

 

			Fiscal Year Ended April 2, 2017
						Non-employee				Total
Stock Granted in Fiscal Year		Employees				Directors				Expense
2015		$	-			$	37			$	37
2016			140				115				255
2017			108				94				202
Total stock grant compensation		$	248			$	246			$	494

 

			Fiscal Year Ended April 3, 2016
						Non-employee				Total
Stock Granted in Fiscal Year		Employees				Directors				Expense
2011		$	49			$	-			$	49
2014			-				31				31
2015			354				112				466
2016			140				76				216
Total stock grant compensation		$	543			$	219			$	762

 

As of total unrecognized compensation expense related to the Company’s non-vested stock grants was which will be recognized over the remaining portion of the respective vesting periods associated with each block of grants, such grants having a weighted average vesting term of months. The amount of future compensation expense related to non-vested stock grants could be affected by any future non-vested stock grants and by the separation from the Company of any individual who has unvested grants as of such individual’s separation date.