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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock Options and Awards

Our equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for employees, consultants, officers, and directors and to align stockholder and employee interests. We may grant time-based options, market condition-based options, stock appreciation rights, restricted stock (“RSAs”), restricted stock units (“RSUs”), performance shares, market condition-based performance restricted stock units (“PSUs”), and other stock-based equity awards to employees, officers, directors, and consultants. Under this program, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. Stock options generally vest over four years and expire seven years from the grant date. Market condition-based options are subject to a market condition whereby the closing price of our common stock must exceed a certain level for a number of trading days within a specified time frame or the options will be canceled before the expiration of the options. RSAs generally vest over one year. RSUs generally vest over three years. Awards granted other than a stock option or stock appreciation right shall reduce the common stock shares available for grant by 1.75 shares for every share issued.

A summary of our equity incentive program is as follows (in thousands):
 March 31,
2021
Common stock shares available for grant3,271 
Stock options outstanding 521 
PSUs outstanding250 
RSUs outstanding565 
RSAs outstanding130 

Time-Based Stock Options

The following summarizes activities for the time-based stock options for the three months ended March 31, 2021 (in thousands except for weighted average exercise price per share and weighted average remaining contractual life data):
Number of Shares
Underlying Stock Options 		Weighted Average
Exercise Price
Per Share		Weighted Average
Remaining Contractual Life
(Years)		Aggregate
Intrinsic Value
Outstanding at December 31, 2020828 $8.16 4.36$2,628 
Granted— $— 
Exercised(307)$8.87 
Canceled or expired— $— 
Outstanding at March 31, 2021521 $7.74 5.21$1,020 
Vested and expected to vest at March 31, 2021447 $7.76 5.18$866 
Exercisable at March 31, 2021129 $8.32 4.69$212 

Aggregate intrinsic value is the difference between the closing price on the last trading day in March 2021 and the exercise price, multiplied by the number of in-the-money stock options.

Restricted Stock Units

The following summarizes RSU activities for the three months ended March 31, 2021 (in thousands except for weighted average grant date fair value and weighted average remaining contractual life data):
Number of Restricted Stock UnitsWeighted Average Grant Date Fair ValueWeighted Average
Remaining Contractual Life
(Years)		Aggregate
Intrinsic Value
Outstanding at December 31, 2020802 $6.98 1.00$9,057 
Granted— $— 
Released(227)$7.49 
Forfeited(10)$6.74 
Outstanding at March 31, 2021565 $6.78 1.08$5,415 

Restricted Stock Awards

The following summarizes RSA activities for the three months ended March 31, 2021 (in thousands except for weighted average grant date fair value and weighted average remaining recognition period):
Number of Restricted Stock AwardsWeighted Average Grant Date Fair ValueWeighted Average Remaining Recognition Period
(Years)
Outstanding at December 31, 2020130 $6.53 0.45
Granted— $— 
Released— $— 
Forfeited— $— 
Outstanding at March 31, 2021130 $6.53 0.20

Market Condition-Based Restricted Stock Units

In the fourth quarter of 2020, we granted 250,000 shares of PSUs to our executives. Each PSU represents the right to one share of our common stock. These equity awards will vest if the volume-weighted closing price of our common stock exceeds certain levels for a number of trading days within a specified time frame. These awards vest over four years, with 25% eligible for vesting on the first anniversary of the grant date and remaining shares vesting on quarterly basis over the following three years. We have 250,000 shares of PSUs outstanding as of March 31, 2021.

Employee Stock Purchase Plan

Under our 1999 Employee Stock Purchase Plan ("ESPP"), eligible employees may purchase common stock through payroll deductions at a purchase price of 85% of the lower of the fair market value of our common stock at the beginning of the offering period or the purchase date. Participants may not purchase more than 2,000 shares in a six months offering period or purchase stock having a value greater than $25,000 in any calendar year as measured at the beginning of the offering period. A total of 1.0 million shares of common stock has been reserved for issuance under the ESPP. During the three months ended March 31, 2021, 15,543 shares were purchased under the ESPP. As of March 31, 2021, 215,338 shares were available for future purchase under the ESPP.

Stock-based Compensation Expense

The following table summarizes stock-based compensation expenses recognized for the three months ended March 31, 2021 and 2020 (in thousands):
 Three Months Ended
March 31,
 20212020
Stock options$15 $255 
RSUs and RSAs497 462 
Employee stock purchase plan19 12 
Total$531 $729 
Sales and marketing$224 $45 
Research and development318 168 
General and administrative(11)516 
Total$531 $729 

We use the Black-Scholes-Merton option pricing model for our time-based options, single-option approach to determine the fair value of standard stock options. All share-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods.

The determination of the fair value of share-based awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include actual and projected employee stock option exercise behaviors that impact the expected term, our expected stock price volatility over the term of the awards, risk-free interest rate, and expected dividend.

The assumptions used to value options granted under our equity incentive program are as follows:
 Three Months Ended
March 31,
 
2021 (1)
2020
Expected life (in years)N/A4.2
VolatilityN/A52 %
Interest rateN/A1.0 %
Dividend yieldN/A— %
    (1) There were no stock option grants in the three months ended March 31, 2021

As of March 31, 2021, there were $5.3 million of unrecognized compensation costs, adjusted for estimated forfeitures, related to non-vested stock options, RSAs and RSUs. This unrecognized compensation cost will be recognized over an estimated weighted-average period of approximately 1.8 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures.