Share option and equity incentive plan

The impact on the Company’s results of operations from share-based compensation was as follows:

	Three months ended September 30 ,				Nine m onths e nded September 30 ,
(in thousands)	201 8		201 7		2018		2017
Cost of revenue	$	38	$	42	$	161	$	125
Research and development		201		180		581		461
Sales and marketing		137		484		774		1,327
General and administrative		572		746		2,034		2,216
Total continuing operations		948		1,452		3,550		4,129
Discontinued operations		67		54		211		137
Total share-based compensation	$	1,015	$	1,506	$	3,761	$	4,266

November 2013,

in connection with the Company’s initial public offering, the Company adopted the

2013

Share Incentive Plan, or the

2013

Plan, which provides for the grant of share options, restricted shares, restricted share units, or RSUs, and other share-based awards to employees, officers, directors and consultants of the Company. The

2013

Plan was amended at the

2017

annual general meeting of shareholders.

During the

three

-month period ended

September 30, 2018,

the Company granted to certain employees

23,477

share options with exercise prices ranging from

$14.50

$14.74

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

September 30, 2018

was

$6.84

per share. During the

nine

-month period ended

September 30, 2018,

the Company granted to certain employees

773,264

share options with exercise prices ranging from

$10.93

$14.74

per share under the

2013

Plan. The weighted-average grant date fair value related to share options granted under the

2013

Plan during the

nine

-month period ended

September 30, 2018

was

$6.19

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 and expire after

ten

years.

During the

three

-month period ended

September 30, 2018,

the Company awarded to certain employees

4,109

RSUs with a weighted average grant date fair value of

$14.50

per share under the

2013

Plan. During the

nine

-month period ended

September 30, 2018,

the Company awarded to certain employees

166,008

RSUs with a weighted average grant date fair value of

$13.37

per share under the

2013

Plan. The RSUs 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 RSUs is calculated based on the grant date market price of the shares and is being recognized over the vesting period.

September 10, 2018,

the Company’s Board of Directors approved the modification of unvested equity awards awarded to employees expected to move to Quest, contingent upon closing of the Transaction (see Note

14.

Discontinued operations

). Per the terms of the modification, upon closing of the transaction, all outstanding awards would become fully vested. The Company accounted for the modification as of

September 25, 2018,

when the Company signed the Purchase Agreement with Quest and the performance criteria became probable. At that time, all expense related to unvested awards was reversed, and the modified awards were revalued. Expense related to the modified awards will be fully recognized by the anticipated closing date. Approximately

120,000

options and

28,100

RSUs were accelerated.

For the

three

month-period ended

September 30, 2018,

the Company incurred shared-based compensation expense related to share options and RSUs of

$748,000

and

$267,000,

respectively. For the

three

-month period ended

September 30, 2017,

the Company incurred shared-based compensation expense related to share options and restricted shares/RSUs of

$934,000

and

$573,000,

respectively.

For the

nine

-month period ended

September 30, 2018,

the Company incurred shared-based compensation expense related to share options and restricted shares/RSUs of

$2,448

million and

$1,313

million, respectively. For the

nine

-month period ended

September 30, 2017,

the Company incurred shared-based compensation expense related to share options and restricted shares/RSUs of

$2.6

million and

$1.6

million, respectively.

As of

September 30, 2018,

there was

$11.3

million and

$3.7

million of total unrecognized compensation cost related to unvested share options and restricted shares/RSUs, respectively. These costs are expected to be recognized over weighted-average periods of

years for option shares and

years for RSUs.