XML 43 R22.htm IDEA: XBRL DOCUMENT v3.22.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Stock Option Plans     
The Company grants awards to recipients through the 2017 Equity Incentive Plan, as amended (the 2017 Plan), which was approved by stockholders and the Board of Directors. The 2017 Plan provided for the issuance of shares that total no more than the sum of (i) 14,500,000 new shares, (ii) approximately 384,000 unallocated shares remaining available for the grant of new awards under the Second Amended and Restated 2007 Equity Incentive Plan, (iii) any returning shares such as forfeited, cancelled, or expired shares and (iv) 500,000 shares pursuant to an inducement award. The number of shares available to be issued under the 2017 Plan will be reduced by (i) one share for each share that relates to an option or stock appreciation right award and (ii) 1.5 shares for each share which relates to an award other than a stock option or stock appreciation right award (a full-value award). As of December 31, 2021, there were approximately 5.0 million remaining shares available for issuance under this plan. Options expire 10 years from the date of grant.
General Vesting Conditions
The Company’s stock options and restricted stock unit awards are generally subject to a one-year cliff vesting period after which 1/3 of the shares vest with the remaining shares vesting ratably over a two-year period subject to the passage of time. Restricted stock awards granted by the Company to employees have vesting conditions that are unique to each award. Additionally, certain stock option awards are market or performance based and vest based on certain triggering events established by the Compensation Committee.
Stock Options
The fair value of the Company’s stock options that are not market or performance based was estimated at the date of grant using the Black-Scholes based option valuation model. The table below outlines the weighted average assumptions for options granted during the periods indicated:
Year Ended December 31,
Weighted Average:20212020
Expected term (years)5.85.8
Volatility75 %67 %
Risk-free rate1 %1 %
Dividend Yield0 %0 %
Service Period Based Stock Options
The majority of options granted by the Company are comprised of service based options. These options vest ratably over a defined period following grant date after a passage of a service period.
The following table summarizes activity of service period-based stock options during the periods indicated:
(In thousands except per-share data and remaining contractual term)Number of OptionsWeighted AverageAggregate Intrinsic Value
Exercise PriceRemaining Contractual Term (Years)
Outstanding at December 31, 20199,509 $3.86 6.9$6,315 
Options Granted3,609 4.18 
Options Exercised(1,052)3.84 1,271 
Options Forfeited / Expired(1,233)3.98 
Outstanding at December 31, 202010,833 $3.96 6.8$10,472 
Options Granted1,724 8.67 
Options Exercised(2,146)4.34 13,301 
Options Forfeited / Expired(916)4.83 
Outstanding at December 31, 20219,495 $4.65 6.5$2,452 *
Exercisable at December 31, 20216,828 $3.77 5.5$2,256 *
*The aggregate intrinsic values in the table above are based on the Company’s stock price of $3.74, which is the closing price of the Company’s stock on the last day of business for the period ended December 31, 2021
Performance Based Stock Options
The Company also grants stock option awards that are performance based and vest based on the achievement of certain criteria established from time to time by the Compensation Committee. If these performance criteria are not met, the compensation expenses are not recognized and the expenses that have been recognized will be reversed.
The following table summarizes activity of performance based stock options during the periods indicated:
(In thousands except per-share data and remaining contractual term)Number of SharesWeighted AverageAggregate Intrinsic Value
Exercise PriceRemaining Contractual Term (Years)
Outstanding at December 31, 201942 $1.89 3.1$101 
Options Granted164 4.34 
Options Exercised(42)1.89 100 
Options Forfeited(83)4.34 
Outstanding at December 31, 202081 $4.34 3.1$37 
Options Granted— — 
Options Exercised(40)4.34 401 
Options Forfeited— — 
Outstanding and Exercisable at December 31, 202141 $4.34 2.1$— *
*The aggregate intrinsic values in the table above are based on the Company’s stock price of $3.74, which is the closing price of the Company’s stock on the last day of business for the period ended December 31, 2021
Market Based Stock Options
The Company also grants stock option awards that are market based which have vesting conditions associated with a service condition as well as performance of the Company’s stock price.
The following table summarizes activity of market based stock options during the periods indicated:
(In thousands except per-share data and remaining contractual term)Number of SharesWeighted AverageAggregate Intrinsic Value
Exercise PriceRemaining Contractual Term (Years)
Outstanding at December 31, 20191,000 $4.24 7.8$70 
Options Granted— — 
Options Exercised— — — 
Options Forfeited— — 
Outstanding at December 31, 20201,000 $4.24 6.8$560 
Options Granted— — 
Options Exercised— — — 
Options Forfeited— — 
Outstanding and Exercisable at December 31, 20211,000 $4.24 5.8$— *
*The aggregate intrinsic values in the table above are based on the Company’s stock price of $3.74, which is the closing price of the Company’s stock on the last day of business for the period ended December 31, 2021.
Restricted Stock Units
The following table summarizes activity of restricted stock units during the periods indicated:
(In thousands except per share fair value)Number of UnitsWeighted Average Fair Value
Unvested shares at December 31, 2019— $— 
Granted— — 
Vested— — 
Forfeited— — 
Unvested shares at December 31, 2020— $— 
Granted135 10.29 
Vested— — 
Forfeited(20)10.77 
Unvested shares at December 31, 2021115 $10.21 
Expected to vest as of December 31, 2021115 $10.21 
Restricted Stock Awards
The following table summarizes activity of restricted stock awards during the periods indicated:
(In thousands except per share fair value)Number of AwardsWeighted Average Fair Value
Unvested shares at December 31, 2019183 $3.25 
Granted— — 
Vested— — 
Forfeited— — 
Unvested shares at December 31, 2020183 $3.25 
Granted— — 
Vested— — 
Forfeited— — 
Unvested shares at December 31, 2021183 $3.25 
Expected to vest as of December 31, 2021183 $3.25 
Share-based Compensation
Share-based compensation expenses for the years ended December 31, 2021 and December 31, 2020 were as follows:
Year Ended December 31,
(In thousands)20212020
Share-based compensation expense
Cost of sales$204 $142 
Sales and marketing1,689 1,282 
Research and development877 551 
General and administrative3,425 4,961 
Total$6,195 $6,936 
In future periods, the Company expects to recognize approximately $9.4 million and $0.9 million in share-based compensation expense in future periods for unvested options and unvested restricted stock units, respectively, that were outstanding as of December 31, 2021. Future share-based compensation expense will be recognized over 2.0 and 2.3 weighted average years for unvested options and restricted stock units, respectively.