Note 6 - Share Option and Equity Incentive Plan

6 Months Ended

Jun. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6. Share option and equity incentive plan

Expense recognized related to share-based compensation was as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2014		2013		2014		2013
Cost of revenue	$	43	$	1	$	54	$	2
General and administrative		451		6		610		17
Research and development		4		—		10		—
Sales and marketing		262		6		351		6
Total share-based compensation	$	760	$	13	$	1,025	$	25

In November 2013, in connection with the Company’s initial public offering, the Company adopted the 2013 Share Incentive Plan (“2013 Plan”), which provides for the grant of share options, restricted shares, RSUs and other share-based awards to employees, officers, directors and consultants of the Company.

During the three month period ended June 30, 2014, the Company granted to certain employees 95,557 share options with exercise prices ranging from $16.86 to $19.63 per share under the 2013 Plan. The weighted-average grant date fair value related to share options granted under the 2013 Plan during the three month period ended June 30, 2014 was $8.01 per share. During the six month period ended June 30, 2014, the Company granted to certain employees 466,452 share options with exercise prices ranging from $16.86 to $22.99 per share under the 2013 Plan. The weighted-average grant date fair value related to share options granted under the 2013 Plan during the six month period ended June 30, 2014 was $10.37 per share. Share options generally vest based on the grantee’s continued service with the Company during a specified period following the vesting start date or, in rare instances, based on the achievement of performance or other conditions as determined by the Board of Directors, and expire after ten years.

During the first quarter of 2014, the Company awarded certain employees 254,700 restricted shares with a grant date fair value equal to $22.99 per share under the 2013 Plan. The restricted shares vest based on the grantee’s continued service with the Company during a specified period following grant as follows: 40% on the second anniversary of the grant date; 30% on the third anniversary of the grant date; and 30% on the fourth anniversary of the grant date. Share-based compensation expense for these restricted shares is calculated based on the grant date market price of the shares and is being recognized over the vesting period.

For the three month period ended June 30, 2014, the Company incurred shared-based compensation expense related to share options and restricted shares of approximately $483,000 and $277,000, respectively. For the three month period ended June 30, 2013, the Company incurred shared-based compensation expense related to share options of approximately $13,000.

For the six month period ended June 30, 2014, the Company incurred shared-based compensation expense related to share options and restricted shares of approximately $660,000 and $365,000, respectively. For the six month period ended June 30, 2013, the Company incurred shared-based compensation expense related to share options of approximately $25,000.

As of June 30, 2014, there was $4.8 million and $5.2 million of total unrecognized compensation cost related to unvested share options and restricted shares, respectively. These costs are expected to be recognized over weighted-average periods of 2.8 years for share options and 3.7 years for restricted shares.