Share-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Note 10 – Share-Based Compensation

The Company’s share-based compensation awards are issued under the 2020 Equity Incentive Plan (2020 Plan), the predecessor 2016 Equity Incentive Plan (2016 Plan) and 2006 Equity Incentive Plan (2006 Plan). Any awards that expire or are forfeited under the 2016 Plan or 2006 Plan become available for issuance under the 2020 Plan. As of June 30, 2022, 29,740 shares of common stock remained available for future issuance under the 2020 Plan.

Share-Based Compensation Expense

Pre-tax share-based compensation expense reported in the Company’s statements of operations was (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Direct costs and expenses	$	13	$	18	$	28	$	18
Research and development		192		86		280		354
Sales, marketing, general and administrative		1,163		435		2,406		1,919
Total	$	1,368	$	539	$	2,714	$	2,291

The remaining unrecognized stock‑based compensation expense for options and restricted stock units was approximately $9.4 million as of June 30, 2022, and is expected to be amortized to expense over the next 3.1 years.

Stock Option Activity

Stock option activity during the six months ended June 30, 2022, excluding the Bonus Option Program described below, was (in thousands, except weighted average exercise price and weighted average contractual life):

	Number of Options			Weighted Average Exercise Price		Weighted Average Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding ‑ January 1, 2022		2,878		$	8.08		7.7	$	6,288
Granted		277			3.37		—		—
Forfeited/canceled		(154	)		8.89		—		—
Exercised		(130	)		0.70		—		—
Outstanding ‑ June 30, 2022		2,871		$	7.92		7.5	$	1,094
Exercisable - June 30, 2022		1,668		$	6.11		6.8	$	782

Restricted Stock Unit Activity

Restricted stock unit activity during the six months ended June 30, 2022 was (in thousands, except weighted average grant date fair value per share):

	Number of Shares			Weighted Average Grant Date Fair Value Per Share
Outstanding ‑ January 1, 2022		151		$	5.30
Granted		1,473			2.75
Forfeited/canceled		(11	)		3.69
Released		(138	)		6.59
Outstanding ‑ June 30, 2022		1,475		$	2.64

Bonus-to-Options Program

As part of the Bonus-to-Options Program (Bonus Option Program), the Company recorded the following activity during the six months ended June 30, 2022 (in thousands, excepted weighted average exercise price and weighted average contractual life):

	Number of Options			Weighted Average Exercise Price		Weighted Average Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding ‑ January 1, 2022		373		$	17.00		7.5	$	76
Granted		244			2.29		—		—
Forfeited/canceled		(14	)		20.89		—		—
Exercised		—			—		—		—
Outstanding ‑June 30, 2022		603		$	10.96		8.3
Exercisable - June 30, 2022		603		$	10.96		8.3

The Company accrued $0.4 million and $0.7 million for the three and six months ended June 30, 2022, respectively, compared to $0.1 million and $0.7 million for the three and six months ended June 30, 2021, respectively, related to the estimate of the Bonus Option Program. Options granted, if any, pertaining to the performance of the Bonus Option Program are typically approved and granted in first quarter of the year following completion of the fiscal year.

Employee Stock Purchase Plan

A total of 338,106 shares of our common stock have been reserved for issuance under the Employee Stock Purchase Plan (ESPP). The ESPP provides for successive six-month offering periods beginning on September 1st and March 1st of each year. As of June 30, 2022, 142,680 shares have been issued under the ESPP leaving 195,426 shares remaining for future issuance.