Note 15 - Share-based Compensation

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note 15.  Share-Based Compensation

Equity Plans

The Company’s board of directors and stockholders approved the following equity plans:

● the 2006 Share Incentive Plan

● the 2013 Equity Incentive Plan (“2013 Plan”)

The Company issued stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) to employees, consultants and non-employee directors. Stock option awards generally vest over a four year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options, RSAs and RSUs may be granted from these plans. Prior to the Company’s initial public offering in September 2013, the fair market value of the Company’s stock had been historically determined by the board of directors and from time to time with the assistance of third party valuation specialists.

Stock Options

Options have been granted to the Company’s employees under the two incentive plans and generally become exercisable as to 25% of the shares on the first anniversary date following the date of grant and 12.5% on a semi-annual basis thereafter. All options expire ten years after the date of grant.

The following is a summary of option activity (in thousands, except per share data):

					Weighted			Weighted
			Weighted		Average			Average
			Average		Share Price	Weighted		Remaining		Aggregate
	Number of		Exercise		on Date of	Average		Contractual		Intrinsic
	shares		Price		Exercise	Fair Value		Life		Value
	(in thousands, except price data)
Outstanding at January 1, 2020		281	$	10.20		$	5.32			$	573
Exercised		—		—	—						—
Forfeited		—		—							—
Outstanding, March 31, 2020		281	$	10.20		$	5.32		3.37		22.6
Exercisable, March 31, 2020		281	$	10.20					3.37		22.6
Vested and expected to vest		281	$	10.20					3.37	$	23

As of March 31, 2020, there was no unrecognized stock option expense.

Restricted Stock Units/Awards

The following is a summary of RSU/RSA activity (in thousands, except per share data):

				Weighted
				Average Share		Weighted		Aggregate
	Number of			Price on Date		Average Fair		Intrinsic
	shares			of Release		Value		Value
	(in thousands, except price data)
Outstanding at January 1, 2020		770				$	25.18	$	9,143
Granted		1,090		​			11.62		12,671
Released		(137	)	$	12.70		24.17		1,746
Cancelled/Forfeited		(14	)				17.18		107
Outstanding, March 31, 2020		1,709		​			16.67		12,969
Vested and expected to vest		1,709		​			16.67		12,969

As of March 31, 2020, there was $26.0 million of unrecognized compensation expense related to these RSUs and RSAs. This expense is expected to be recognized over 2.73 years.

Share-Based Compensation

Employee share-based compensation expenses recognized for the periods indicated (in thousands):

	Three months ended
	March 31,
	2020		2019
Share-based compensation - by expense type
Cost of goods sold	$	246	$	188
Research and development		688		640
Sales and marketing		291		271
General and administrative		2,013		1,843
Total share-based compensation expense	$	3,238	$	2,942

For the three months ended March 31, 2020 and 2019, share-based compensation expenses in related to restricted stock units was $3.2 million and $2.9 million, respectively.