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Note 11 - Shareholders' Equity
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Shareholders' Equity and Share-based Payments [Text Block]
11.
Shareholders' Equity
 
Equity compensation plans
 
We have a stock plan (the “Stock Plan”) and an inducement stock plan for newly hired employees (the “Inducement Plan”) (collectively the “Plans”). Under the Plans, stock options
may
be granted with a fixed exercise price that is equivalent to the fair market value of our common stock on the date of grant. These options have a term of up to
10
 years and vest over a predetermined period, generally
four
years. Incentive stock options granted under the Stock Plan
may
only be granted to our employees. The Plans also allow for awards of non-qualified stock options, stock appreciation rights, restricted and unrestricted stock awards, and RSUs.
 
Share-based compensation
 
The estimated fair value of share-based awards is recognized as compensation expense over the vesting period of the award, net of estimated forfeitures. We estimate forfeitures based on historical experience and expected future activity. The fair value of RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock options is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, share-based compensation expense
may
differ materially in the future from that recorded in the current period. The fair values of our stock option grants were estimated with the following weighted average assumptions:
 
   
Year Ended December 31,
  
   
2020
    
2019
  
Dividend yield
    
0
 %    
0
 %
Expected life (in years)
    
4.9
      
4.9
  
Expected volatility
    
64
 %    
59
 %
Risk-free interest rate
    
0.5
 %    
1.6
 %
 
The impact on our results of operations from share-based compensation expense was as follows (in thousands, except per share amounts):
 
   
Year Ended December 31,
  
   
2020
    
2019
  
Cost of revenue— professional engineering service
   $
79
     $
1
  
Selling, general and administrative
    
735
      
546
  
Research and development
    
(2
 )    
(28
 )
Total share-based compensation expense
   $
812
     $
519
  
Per basic share
   $
0.06
     $
0.04
  
Per diluted share
   $
0.06
     $
0.04
  
 
Stock option activity
 
The following table summarizes stock option activity: 
 
     
 
 
    
 
 
  
Weighted Average
      
 
  
     
 
 
    
 
 
  
Remaining
      
 
  
     
 
 
  
Weighted Average
    
Contractual Life
    
Aggregate
  
   
Number of Shares
    
Exercise Price
    
(in years)
    
Intrinsic Value
  
Balance at December 31, 2018
    
1,390,012
     $
4.77
      
6.83
      
 
  
Granted
    
958,798
      
1.69
      
 
      
 
  
Exercised
    
-
      
-
      
 
      
 
  
Forfeited
    
(251,213
 )    
4.81
      
 
      
 
  
Expired
    
(552,771
 )    
5.07
      
 
      
 
  
Balance at December 31, 2019    
1,544,826
      
2.74
      
7.47
     $
46,582
  
Granted
    
683,900
      
1.08
      
 
      
 
  
Exercised
    
(26,250
 )    
1.34
      
 
      
 
  
Forfeited
    
(215,218
 )    
1.50
      
 
      
 
  
Expired
    
(200,367
 )    
4.82
      
 
      
 
  
Balance at December 31, 2020
    
1,786,891
      
3.10
      
7.75
     $
330,831
  
Vested and expected to vest at December 31, 2020
    
1,593,216
      
2.12
      
7.63
      
278,883
  
Exercisable at December 31, 2020
    
609,781
     $
3.26
      
6.03
     $
19,668
  
 
At
December 31, 2020
, total compensation cost
not
yet recognized related to granted stock options was approximately
$436,000,
net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately
1.4
years.
 
The following table summarizes certain additional information about stock options:
 
   
Year Ended December 31,
  
   
2020
    
2019
  
Weighted average grant-date fair value for options granted during the year
   $
1.08
     $
1.33
  
Vested options in-the-money
    
71,993
      
344
  
Aggregate intrinsic value of options exercised during the year
   $
1
     $
—
  
 
The aggregate intrinsic value represents the difference between the exercise price of the underlying options and the quoted price of our common stock for the number of options that were exercised during the periods indicated. We issue new shares of common stock upon exercise of stock options.
 
Restricted stock unit activity
 
The following table summarizes RSU activity:
 
   
Number of
    
Weighted Average
  
   
Shares
    
Award Price
  
Unvested at December 31, 2018
    
186,516
     $
2.87
  
Granted
    
225,693
      
1.44
  
Vested
    
(264,720
 )    
2.03
  
Forfeited
    
(34,643
 )    
4.68
  
Unvested at December 31, 2019
    
112,846
      
1.44
  
Granted
    
219,596
      
1.48
  
Vested
    
(167,745
 )    
1.45
  
Forfeited
    
-
      
-
  
Unvested at December 31, 2020
    
164,697
      
1.48
  
Expected to vest after December 31, 2020
    
158,504
     $
1.48
  
 
At
December 31, 2020
, total compensation cost
not
yet recognized related to granted RSUs was approximately
$79,000,
net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately
0.3
years.
 
Common stock reserved for future issuance
 
The following table summarizes our shares of common stock reserved for future issuance under the Plans as of
December 31, 2020
:
 
Stock options outstanding
    
1,786,891
  
Restricted stock units outstanding
    
164,697
  
Stock options available for future grant
    
1,242,125
  
Common stock reserved for future issuance
    
3,193,713