Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Note 6. Stockholders’ Equity

On June 16, 2020, we completed a follow-on public offering, in which we issued and sold 1,525,000 shares of our common stock and MegaChips sold 2,500,000 of our common stock held by them.

Equity Incentive Plans

The following table summarizes the restricted stock unit award (“RSU”) and cash restricted stock unit award (“CRSU”), activity for the three and nine months ended September 30, 2020:

	RSU			Grant Date		CRSU			Grant Date
	Number of			Fair Value		Number of			Fair Value
	Shares			per share		Shares			per share
Balance at December 31, 2019		2,989,322		$	13.0		—		$	-
Granted		206,026			20.9		—			—
Vested		(149,141	)		13.2		—			—
Forfeited		(130,939	)		13.5		—			—
Balance at March 31, 2020		2,915,268		$	13.5		—		$	-
Granted		130,640			33.8		4,780			22.2
Vested		(183,910	)		14.0		(3,290	)		20.9
Forfeited		(17,860	)		13.8		—			13.8
Balance at June 30, 2020		2,844,138		$	14.4		1,490		$	25.2
Granted		133,825			51.4		3,524			46.9
Vested		(224,179	)		16.8		(4,130	)		41.5
Forfeited		(19,980	)		15.0		—			—
Balance at September 30, 2020		2,733,804		$	16.0		884		$	26.9

On August 4, 2020, the Compensation Committee of the Company adopted and approved the Executive Bonus and Retention Plan (the “Bonus and Retention Plan”) with target bonus amounts and performance goals for the second half of the fiscal year 2020 (the “2020 Goals”). The 2020 Goals are based on the achievement of revenue and Non-GAAP operating profit for the second half of 2020, as well as individual performance goals. The target bonuses were granted based on a fixed dollar amount to be settled in restricted stock units on the vesting date and hence the awards have been classified as liability-based awards. Such expense is included in the non-cash adjustment within stock-based compensation expense on the condensed consolidated cash flow statement. The liability of $0.4 million was recorded as accrued expenses and other current liabilities in the condensed consolidated balance sheet. Actual payouts may range from zero to 150% of target, based on performance.

In the three and nine months ended September 30, 2020, the Company granted cash based RSUs (the “CRSU”) as part of an employee bonus plan. Generally, such units are granted quarterly and fully vest at the end of the quarter they are granted except units granted to new hires that have a one-year cliff vesting. Such awards have also been classified as liability-based awards.

For the nine months ended September 30, 2020, the Company issued 447,077 shares of common stock in connection with the vesting of RSUs. The difference between the number of RSUs vested and the shares of common stock issued is the result of RSUs withheld in satisfaction of minimum tax withholding obligations associated with the vesting.

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Equity awards	(in thousands)
Cost of revenue	$	34	$	—	$	119	$	—
Research and development		1,100		—		3,016		—
Selling, general and administrative		2,785		—		6,614		—
	$	3,919	$	—	$	9,749	$	—
Liability-based awards
Cost of revenue	$	98	$	—	$	138	$	—
Research and development		285		—		383		—
Selling, general and administrative		338		—		392		—
	$	721	$	—	$	913	$	—
Total stock-based compensation expense	$	4,640	$	—	$	10,662	$	—

As of September 30, 2020, there was $41.3 million and $1.1 million of unrecognized compensation costs related to RSUs granted and liability-based awards granted, respectively. The unrecognized compensation cost is expected to be recognized over a weighted average period of 3.67 years for equity awards and 0.44 years for liability-based awards.