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Share Based Compensation
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Share-Based Compensation Share-Based Compensation
Equity 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 provides 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 June 30, 2022, there were approximately 2.8 million remaining shares available for issuance under the 2017 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 1/3rd of the shares vest with the remaining shares vesting ratably each month over a two-year period subject to the passage of time. Beginning in the second quarter of 2022, restricted stock units are generally subject to a three year vesting period with 1/3rd vesting per year on the anniversary of the grant date. 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 based are estimated at the grant date using the Black-Scholes option pricing model. The Company used the following weighted average assumptions for options granted during the six months ended June 30, 2022:
Weighted Average: Six Months Ended June 30, 2022
Expected term5.7 years
Expected volatility76.0 %
Risk-free rate2.0 %
Expected dividends— %

Service Period Based Stock Options
The following table summarizes activity of service period-based stock options during the six months ended June 30, 2022:
Weighted Average
(In thousands except per-share data and remaining contractual term)Number of
Options		Exercise
Price		Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
Outstanding at December 31, 20219,495 $4.65 6.5$2,452 
Options Granted2,056 2.57 
Options Exercised— — — 
Options Forfeited(685)5.22 
Outstanding at June 30, 202210,866 $4.22 6.2$3 *
Exercisable at June 30, 20227,451 $4.11 4.7$— *
*The aggregate intrinsic values in the table above are based on the Company’s stock price of $1.67, which is the closing price of the Company’s stock on the last day of business for the period ended June 30, 2022.
Restricted Stock Units
The following table summarizes activity of restricted stock units during the six months ended June 30, 2022:
(In thousands except per share fair value)Number of RSUsWeighted Average
Fair Value
Unvested shares at December 31, 2021115 $10.21 
Granted518 2.34 
Vested(29)11.83 
Forfeited(11)11.02 
Unvested shares at June 30, 2022593 $3.24 
Expected to vest at June 30, 2022593 $3.24 
Total Share-Based Compensation
Total share-based compensation expense was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2022202120222021
Share-based compensation expense
Cost of sales$73 $58 $130 $98 
Sales and marketing399 454 720 842 
Research and development253 220 478 358 
General and administrative571 884 1,856 1,602 
Total$1,296 $1,616 $3,184 $2,900 
In future periods, the Company expects to recognize approximately $8.7 million and $1.7 million in share-based compensation expense for unvested options and unvested restricted stock units, respectively, that were outstanding as of June 30, 2022. Future share-based compensation expense will be recognized over 1.9 and 2.2 weighted average years for unvested options and restricted stock units, respectively.