Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders' Equity

Note 6. Stockholders’ Equity

Follow-on public offering

On February 22, 2021, the Company completed a follow-on public offering, in which it issued and sold 1,500,000 shares of its common stock and MegaChips Corporation ("MegaChips"), the Company's largest stockholder, sold 1,500,000 of the Company’s common stock held by it, resulting in net proceeds to the Company of $181.6 million after deducting underwriting discounts and commissions of $8.6 million and deferred offering costs of $0.3 million.

Equity Incentive Plans

The following table summarizes the restricted stock unit award (“RSU”), performance based restricted stock unit awards ("PRSU"), and multi-year performance restricted stock units ("MYPSU") activity for the three months ended March 31, 2022:

	RSU			Grant Date		PRSU		Grant Date		MYPSU		Grant Date
	Number of			Fair Value		Number of		Fair Value		Number of		Fair Value
	Shares			per share		Shares		per share		Shares		per share
Unvested at December 31, 2021		2,227,197		$	40.6		58,954	$	261.4		—	$	-
Granted		173,291			232.8		11,202		233.1		311,872		88.6
Vested		(217,358	)		45.9		—		—		—		—
Forfeited		(5,352	)		117.3		—		—		—		—
Unvested at March 31, 2022		2,177,778		$	55.1		70,156	$	256.9		311,872	$	88.6

On August 4, 2020, the Compensation Committee of the Company adopted and approved the Executive Bonus and Retention Plan (the “Bonus and Retention Plan”). In each of January and July 2021, the Compensation Committee approved target bonus amounts and performance goals for the first half and second half, respectively, of the fiscal year 2021 (the “2021 Goals”). In January 2022, the Compensation Committee approved target bonus amounts and performance goals for the first half of the fiscal year 2022 (the “1H2022 Goals”). The 2021 Goals and 1H2022 Goals are based on the achievement of revenue and Non-GAAP operating profit, as well as individual performance goals. The awards for the actual payouts are granted in the quarter following the end of the performance period. The target bonuses were granted based on a fixed dollar amount to be settled in RSUs on the vesting date and hence the awards have been classified as liability-based awards until settled. Such expense is included in the non-cash adjustment within stock-based compensation expense on the condensed consolidated cash flow statements. The liability of $0.5 million for 1H2022 Goals was recorded as accrued expenses and other current liabilities in the condensed consolidated balance sheet as of March 31, 2022.

In December 2021, the Compensation Committee of the Company approved PRSUs with performance goals for the year 2022 (the “PRSU 2022 Goals”). The PRSU 2022 Goals are based on the achievement of revenue. These grants are included in the RSU awards granted in the table above.

In February 2022, the Compensation Committee of the Company approved and granted to certain of the Company’s executive officers MYPSUs with vesting based on achievement of stock price targets, which are measured based on the 60-trading day average per share closing price of the Company’s common stock on the Nasdaq Global Market during the performance periods of up to six years from the date of grant, subject to the continued service of the grantee through the vest date. The grant-date fair value of each MYPSU was determined using Monte Carlo simulation model. The assumptions used in the Monte Carlo simulation included expected volatility of 44.4%, risk free rate of 1.83%, no expected dividend yield, expected term of six years and possible future stock prices over the performance period based on historical stock and market prices. The Company recognizes the expense related to the MYPSUs on a graded-vesting method over the requisite service period.

Stock-Based Compensation

The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Equity based awards
Cost of revenue	$	638	$	384
Research and development		5,374		2,456
Selling, general and administrative		7,736		3,335
	$	13,748	$	6,175
Liability based awards - to be settled in equity
Cost of revenue	$	19	$	17
Research and development		220		204
Selling, general and administrative		293		264
	$	532	$	485
Total stock-based compensation - equity and liability based	$	14,280	$	6,660
Liability-based awards - cash settled
Cost of revenue	$	—	$	102
Research and development		—		106
Selling, general and administrative		—		108
	$	—	$	316
Total stock-based compensation expense	$	14,280	$	6,976
Stock-based compensation expense recorded to additional paid-in capital
Equity based awards	$	13,748	$	6,175
Liability based awards - settled in equity		1,489		1,191
Total stock-based compensation expense recorded to additional paid-in capital	$	15,237	$	7,366

As of March 31, 2022, there was $111.3 million, $15.5 million, $26.3 million and $1.0 million of unrecognized compensation costs related to RSUs granted, PRSUs granted, MYPSUs granted, and liability-based awards granted, respectively. The unrecognized compensation cost is expected to be recognized over a weighted average period of 3.2 years for RSUs, 4.0 years for PRSUs, 1.6 years for MYPSUs and 0.4 years for liability-based awards.