Share-Based Compensation

6 Months Ended

Jun. 30, 2023

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 six months ended June 30, 2023 and 2022 is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenues	$	36	$	34	$	72		60
Sales and marketing		713		1,049		1,356		2,183
General and administrative		1,115		1,002		2,082		2,011
Research and development		169		118		328		201
Total	$	2,033	$	2,203	$	3,838	$	4,455

2018 Equity Incentive Plan

In June 2018, the Company adopted the 2018 Equity Incentive Plan, (the “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 Company’s 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. 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 June 30, 2023, 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 (the “2020 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 0.5 million shares for the issuance under the 2020 Plan. An individual who previously served as an employee or director of the Company is not eligible to receive awards under the 2020 Plan. The amount and terms of grants are determined by the Company’s board of directors. As of June 30, 2023, there were 0.3 million shares available for future issuance under the 2020 Plan.

Stock Options

The following table summarizes the Company’s stock option activity for the six months ended June 30, 2023:

				Weighted-	Aggregate
	Number of	Weighted-		average	average
	Shares under	average		Remaining	Intrinsic
	Option	Exercise Price		Contractual	Value
	(in thousands)	per Option		Life (in years)	(in thousands)
Outstanding at December 31, 2022	1,301	$	4.07
Granted	—	$	—
Exercised	—	$	—
Forfeited	(24)	$	13.15
Outstanding at June 30, 2023	1,277	$	3.90	6.5	$	161
Exercisable at June 30, 2023	996	$	4.41	6.4	$	115
Vested and expected to vest at June 30, 2023	1,277	$	3.90	6.5	$	161

The Company recognized share-based compensation expense related to stock options of $0.1 million for the three months ended June 30, 2023 and 2022, and $0.3 million for the six months ended June 30, 2023 and 2022. As of June 30, 2023, there was $0.3 million of total unrecognized compensation cost related to non-vested stock options which the Company expects to recognize over a weighted-average period of 1.0 years.

For the six months ended June 30, 2023 the Company did not grant stock options.

Restricted Stock Units and Performance Restricted Stock Units

The following table summarizes the Company’s restricted stock unit and PRSU activity for June 30, 2023:

	Non-vested		Weighted-	Non-vested		Weighted-
	Restricted		average	PRSUs		average
	Stock Units		Grant-date			Grant-date
	(in thousands)		Fair Value	(in thousands)		Fair Value
Non-vested at December 31, 2022	3,506	$	4.29	395	$	6.77
Granted	1,543	$	4.91	—	$	—
Vested	(1,545)	$	4.43	—	$	—
Forfeited	(192)	$	5.00	—	$	—
Non-vested at June 30, 2023	3,312	$	4.48	395	$	6.77

The Company recognized $1.9 million and $2.0 million in share-based compensation expense related to the restricted stock units and PRSUs for the three months ended June 30, 2023 and 2022, respectively, and $3.6 million and $4.1 million the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, there was $12.0 million of unrecognized compensation cost related to non-vested restricted stock units and PRSUs, which the Company expects to recognize over a weighted-average period of 2.0 years. The total fair value at the vesting date of restricted stock units and PRSUs vested during the six months ended June 30, 2023, was $8.0 million.

The Company did not grant PRSUs during the six months ended June 30, 2023.