A summary of the status of the Company’s issued warrants as of December 29, 2013 is set forth below:
|
Unexercised Warrants |
Number of Warrants |
|||
|
Outstanding—December 25, 2011 |
378,996 | |||
|
Issuance of warrants at $8.16 per share (a) |
241,704 | |||
|
Exercise of warrants at $5.46 per share |
(261,104 | ) | ||
|
|
|
|||
|
Outstanding—December 30, 2012 |
359,596 | |||
|
Exercise of warrants at $0.01 per share |
(117,892 | ) | ||
|
|
|
|||
|
Outstanding—December 29, 2013 |
241,704 | |||
|
|
|
|||
| (a) | As part of the initial investment by outside investors in 2001, the Company issued stock warrants convertible to 200,000 shares of common stock at an exercise price of $5.00 per share, which expired on September 1, 2011. After the expiration of these warrants and to recognize past and continued service to the Board, the Company issued an additional 241,704 warrants at an exercise price of $8.16 per share. The Company used the following assumptions for purposes of valuing these warrants granted in 2011: common stock fair value of $8.16 per share; expected life of warrants-five years; volatility-53%; risk-free interest rate-1.05%; and dividend yield-0%. |