Note 15 - Share-based Compensation

9 Months Ended

Sep. 30, 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		$	10.22		$	5.32			$	573
Exercised		(2	)		—	—						—
Outstanding, September 30, 2020		279		$	10.25		$	5.36		2.89		418
Exercisable, September 30, 2020		279		$	10.25					2.89		418
Vested and expected to vest		279		$	10.25					2.89		418

As of September 30, 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		1,185		​			11.42		13,536
Released		(465	)	$	11.77		21.17		5,472
Cancelled/Forfeited		(38	)				15.14		426
Outstanding, September 30, 2020		1,452		​			15.5		16,333
Vested and expected to vest		1,452		​			15.5		16,333

As of September 30, 2020, there was $20.0 million of unrecognized compensation expense related to these RSUs and RSAs. This expense is expected to be recognized over 2.42 years.

Share-Based Compensation

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

	Three months ended				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
Share-based compensation - by expense type
Cost of goods sold	$	230	$	196	$	712	$	584
Research and development		706		647		2,098		1,943
Sales and marketing		298		275		884		824
General and administrative		2,031		1,860		6,110		5,588
Total share-based compensation expense	$	3,265	$	2,978	$	9,804	$	8,939