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Note 12 - Subsequent Events
3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Subsequent Events [Text Block]

12. Subsequent Events

 

Management has evaluated subsequent events occurring after March 31, 2022, through May 12, 2022, the date the unaudited interim condensed consolidated financial statements were issued.  The following subsequent events have occurred during the period.

 

Coronavirus Pandemic

 

On March 11, 2020, the World Health Organization characterized the novel COVID-19 virus as a global pandemic. The pandemic has affected the Company’s business operations to a limited extent, most of which impacted its customers' ordering patterns due to the pandemic’s effect on their operations; however, the Company continues to monitor the evolving situation related to COVID-19 actively and may take further actions that alter its business operations, including those that may be required by federal, state, or local authorities, or that the Company determines are in the best interests of its employees, partners, and shareholders. To date, the Company has been able to continue to deliver its products and solutions without material delays or difficulties despite the COVID-19 pandemic.

 

Employee Stock Option and Restricted Stock Unit Grants

 

On April 4, 2022, the compensation committee of the board of directors granted stock options to new employees of the Company to purchase an aggregate of 250,700 shares of the Company's common stock at an exercise price of $2.00 per share.  The granted option awards vest equally over four years (25% per year) on the anniversary of the date they started working for the Company.

 

On April 8, 2022, the compensation committee of the board of directors granted 348,100 restricted stock units (RSU) to various employees under which the holders have the right to receive an aggregate of 348,100 shares of the Company's common stock.  The RSU awards vest over three equal annual installments from the date of the grant subject to the recipient’s continued service through the applicable vesting date and the shares not vested are forfeited upon separation from the Company.  The share-based compensation expense to be recognized for these RSUs over the remaining vesting period subsequent to the period ending March 31, 2022 is approximately $0.7 million.  

 

These employee stock option and RSU grants were issued from the 2021 Plan, which is further described in Note 7.

 

New Headquarters Office Facilities Capital Addition Financing

 

In conjunction with the Company's planned move into expanded office facilities in early 2023, which will become the Company's new headquarters, the Company entered into a financing arrangement related to furniture for the new office facilities in April 2022.  The total cost of the furniture financing is $1.1 million, which includes tax, freight, interim storage, and installation labor.  The Company will be responsible for paying interest-only payments to the financing company related to the furniture procurement order (interest on principal of $496 thousand) placed in April 2022 prior to the first scheduled principal financing payment in  August 2022.