Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

10. Stock-Based Compensation

Stock Incentive Plan

The Company maintains a stock-based compensation plan, the 2011 Incentive Compensation Plan, as amended (the “2011 Plan”), to attract, motivate, retain and reward employees, directors and consultants by providing its Board or a committee of the Board the discretion to award equity incentives to these persons.

On June 6, 2011, the Company’s stockholders approved the 2011 Plan, which is administered by the Compensation Committee of the Board. The 2011 Plan provides that stock options, stock units, restricted shares, and stock appreciation rights may be granted to executive officers, directors, consultants, and other key employees. In aggregate, as of December 31, 2023, 374,710 shares were available for future grant under the 2011 Plan. At the Company's annual stockholder meeting held on June 28, 2024, the stockholders approved to increase the number of shares of common stock authorized for issuance under the 2011 Plan by an aggregate of 1,500,000 shares.

Stock Options

A summary of stock option activity for the six months ended June 30, 2024 is as follows:


	Number Outstanding			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance as of January 1, 2024		494,960		$	4.99		2.23	$	1,725,985
Granted		—			—
Cancelled or Expired		(9,500	)		8.66
Exercised		—			—
Balance as of June 30, 2024		485,460		$	4.92		1.77	$	—
Vested or expected to vest as of June 30, 2024		485,460		$	4.92		1.77	$	—
Exercisable as of June 30, 2024		485,460		$	4.92		1.77	$	—

The aggregate intrinsic value in the table above represents the difference between the fair value of the Company’s common stock as of June 30, 2024 and the exercise price of in-the-money stock options multiplied by the number of such stock options.

The following table summarizes information about stock options outstanding as of June 30, 2024:


	Stock Options Outstanding						Stock Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$4.36 - $10.93		484,460		1.77	$	4.90		484,460	$	4.90
$11.00 - $16.50		1,000		0.08		11.00		1,000		11.00
$4.36 - $16.50		485,460		1.77	$	4.92		485,460	$	4.92

As of June 30, 2024, there was no unrecognized stock-based compensation expense related to stock options.

Restricted Stock Units

The following is a summary of RSU activity for the six months ended June 30, 2024:


	Number Outstanding			Weighted Average Fair Value
Unvested as of January 1, 2024		730,062		$	11.17
Granted		658,015			5.28
Vested		(279,908	)		9.11
Forfeited		(8,221	)		12.51
Unvested as of June 30, 2024		1,099,948		$	8.17
RSUs vested but not released		70,350		$	8.85

The fair value of the Company’s RSUs is calculated based upon the fair market value of the Company’s common stock at the date of grant. As of June 30, 2024, there was $7.7 million of unrecognized compensation expense related to unvested RSUs granted, which is expected to be recognized over a weighted average period of 2.5 years. No tax benefit was realized from RSUs for the six months ended June 30, 2024.

Upon closing of the pending sale of the Company's Physical Security Business, unvested RSUs held by employees who will then be employed by the Buyer will fully vest, while RSUs held by the Company's remaining employees and its non-employee directors will continue to vest according to their terms. As of June 30, 2024, the amount of unrecognized compensation expense of RSUs that would vest upon closing of the sale is approximately $2.8 million.

Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense related to stock options and RSUs included in the condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	5	$	9	$	12	$	19
Research and development		43		23		77		37
Selling and marketing		443		119		561		241
General and administrative		494		356		854		694
Stock-based compensation expense - continuing operations		985		507		1,504		991
Stock-based compensation expense - discontinued operations		490		487		990		993
Total	$	1,475	$	994	$	2,494	$	1,984

Restricted Stock Unit Net Share Settlements

During the six months ended June 30, 2024 and 2023, the Company repurchased 86,340 and 40,640 shares, respectively, of common stock surrendered to the Company to satisfy tax withholding obligations in connection with the vesting of RSUs issued to employees.