Note 15 - Share-based Compensation

6 Months Ended

Jun. 30, 2021

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 2021 Equity Incentive Plan (“2021 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, 2021		276		$	10.29	​	$	5.41		2.67	$	54
Exercised		(2	)	$	6.00	—	$0.40			​		7
Forfeited		(3	)	$	10.40		$5.64			​		1
Outstanding, June 30, 2021		271		$	10.32		$	5.44		2.19		46
Exercisable, June 30, 2021		271		$	10.32					2.19		46
Vested and expected to vest		271		$	10.33					2.19		46

As of June 30, 2021, 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, 2021		1,325		​		$	14.97	$	11,279
Granted		1,716		​			10.14		2,897
Released		(304	)	$	9.39		18.46		2,856
Cancelled/Forfeited		(57	)				13.34		485
Outstanding, June 30, 2021		2,680		​			11.51		22,700
Vested and expected to vest		2,680		​			11.51		22,700

As of June 30, 2021, there was $27.8 million of unrecognized compensation expense related to these RSUs and RSAs. This expense is expected to be recognized over 2.33 years.

Share-Based Compensation

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

	Three months ended				Six months ended
	June 30,				June 30,
	2021		2020		2021		2020
Share-based compensation - by expense type
Cost of goods sold	$	266	$	237	$	467	$	483
Research and development		630		704		1,193		1,392
Sales and marketing		329		295		548		586
General and administrative		2,048		2,066		3,585		4,079
Total share-based compensation expense	$	3,273	$	3,302	$	5,793	$	6,540