Share-Based Compensation

9 Months Ended

Sep. 30, 2022

Disclosure Of Compensation Related Costs Share-based Payments [Abstract]

Share-Based Compensation

16.     SHARE-BASED COMPENSATION

The amount of share-based compensation expense recognized by the Company by location in its statements of operations for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of revenues	$	35	$	23	$	94		56
Sales and marketing		1,074		515		3,258		1,608
General and administrative		939		1,368		2,950		4,368
Research and development		130		55		331		134
Total	$	2,178	$	1,961	$	6,633	$	6,166

2018 Equity Incentive Plan

In June 2018, the Company adopted the 2018 Equity Incentive Plan, or 2018 Plan, which authorized the issuance of up to 1.4 million shares, subject to an annual 4% increase based on the number of shares of common stock outstanding, in the form of restricted stock, stock appreciation rights and stock options to the Company’s directors, employees and consultants. The amount and terms of grants are determined by the Company’s board of directors. All stock options granted to date have had exercise prices equal to the fair value, as determined by the closing price as reported by the Nasdaq Global Market, of the underlying common stock on the date of grant. The contractual term of stock options is up to 10 years, and stock options are exercisable in cash or as otherwise determined by the board of directors. Generally, stock options vest 25% upon the first anniversary of the date of grant and the remainder ratably monthly thereafter for 36 months. Restricted stock units generally vest ratably in three equal installments on the first, second and third anniversaries of the grant date. Performance restricted stock units (“PRSUs”) generally vest based on appreciation of the Company’s common stock to a certain price as determined by the Company’s board of directors measured using a trailing 30-day volume weighted average price of a share of the Company’s common stock. The fair value of the PRSU awards are determined using a risk neutral Monte Carlo

simulation valuation model. As of September 30, 2022, there were 0.6 million shares available for future issuance under the 2018 Plan.

2020 Inducement Incentive Plan

In December 2020, the Company adopted the 2020 Inducement Incentive Plan, which authorized the issuance of up to 0.4 million shares, subject to increase by approval of the Company’s board of directors, in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards and other stock awards to eligible employees who satisfy the standards for inducement grants under Nasdaq Global Market rules. In March 2022, the Company’s board of directors approved an additional 500,000 shares for the issuance under the plan. An individual who previously served as an employee or director of the Company is not eligible to receive awards under this plan. The amount and terms of grants are determined by the Company’s board of directors. As of September 30, 2022, there were 0.5 million shares available for future issuance under the 2020 Inducement Incentive Plan.

Stock Options

The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2022:

					Aggregate
	Number of	Weighted-		Weighted-	average
	Shares under	average		Remaining	Intrinsic
	Option	Exercise Price		Contractual	Value
	(in thousands)	per Option		Life (in years)	(in thousands)
Outstanding at December 31, 2021	1,499	$	4.01
Granted	—	$	—
Exercised	(51)	$	1.01
Forfeited	(24)	$	13.41
Outstanding at September 30, 2022	1,424	$	3.96	7.2	$	1,260
Exercisable at September 30, 2022	913	$	4.62	6.9	$	708
Vested and expected to vest at September 30, 2022	1,424	$	3.96	7.2	$	1,260

The Company recognized share-based compensation expense related to stock options of $0.2 million and $0.2 million for the three months ended September 30, 2022 and 2021, respectively, and $0.5 million and $0.6 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $0.7 million of total unrecognized compensation cost related to non-vested stock options which the Company expects to recognize over a weighted-average period of 1.4 years. The total intrinsic value of stock options exercised during the nine months ended September 30, 2022 was $0.1 million.

Restricted Stock Units and Performance Restricted Stock Units

The following table summarizes the Company’s restricted stock unit and performance restricted stock unit activity for September 30, 2022:

	Non-vested		Weighted-	Non-vested		Weighted-
	Restricted		average	Performance Restricted		average
	Stock Units		Grant-date	Stock Units		Grant-date
	(in thousands)		Fair Value	(in thousands)		Fair Value
Non-vested at December 31, 2021	1,729	$	7.29	395	$	6.77
Granted	2,775	$	3.32	—	$	—
Vested	(613)	$	7.64	—	$	—
Forfeited	(226)	$	6.12	—	$	—
Non-vested at September 30, 2022	3,665	$	4.29	395	$	6.77

The Company recognized $2.0 million and $1.8 million in share-based compensation expense related to the restricted stock units and performance restricted stock units for the three months ended September 30, 2022 and 2021, respectively, and $6.1 million and $5.5 million the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $11.0 million of unrecognized compensation cost related to non-vested restricted stock units and performance restricted stock units, which the Company expects to recognize over a weighted-average period of 1.9 years. The total fair value at the vesting date of restricted stock units and performance restricted stock units vested during the nine months ended September 30, 2022, was $2.2 million.

The Company did not grant performance restricted stock units during the period ended September 30, 2022. For the period ended December 31, 2021, the grant-date fair value of the performance restricted stock units was estimated at the time of grant using the following inputs and assumptions in the Monte Carlo simulation valuation model:

		December 31, 2021
Closing price of common stock	$	15.92
Risk-free interest rate		1.15	%
Expected volatility		99.7	%