We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain three equity incentive compensation plans, collectively described below as our “Equity Plans”:

We issue new shares of common stock to satisfy awards issued under our Equity Plans.

Stock-based compensation

The effect of recording stock-based compensation expense was as follows:


	For the three months
Stock-based Compensation Expense - by award type	ended December 31,
(in thousands)	2020		2019
Employee stock options	$	1	$	5
Restricted stock units and awards		431		376
Performance stock units and awards		317		292
Employee stock purchase plan		89		47
Outside director equity awards and fees in common stock		65		81
Total stock-based compensation expense	$	903	$	801


	For the three months
Stock-based Compensation Expense - by expense type	ended December 31,
(in thousands)	2020		2019
Cost of revenue	$	141	$	136
Selling, general, and administrative		559		485
Research and development		203		180
Total stock-based compensation expense	$	903	$	801

401(k) Plan

We have a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under this savings plan, participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. Since June 2015, all employer contributions are made in cash. During each of the three months ended December 31, 2020 and 2019, our matching contribution in cash was approximately $0.3 and $0.2 million, respectively.

Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share:


	For the three months
Basic and Diluted Net Income (Loss) Per Share	ended December 31,
(in thousands, except per share)	2020		2019
Numerator:
Income (Loss) from continuing operations	$	2,569	$	(1,335)
Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share		2,569		(1,335)
Denominator:
Denominator for basic net income (loss) per share - weighted average shares outstanding		29,503		28,832
Denominator for fully diluted net (income) loss per share - weighted average shares outstanding		30,377		28,832

Net income (loss) per basic share	$	0.09	$	(0.05)
Net income (loss) per fully diluted share	$	0.08	$	(0.05)

Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation		874		1,168

Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock units and awards, performance stock units, stock options, and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method. The anti-dilutive stock options and shares of outstanding and unvested restricted stock were excluded from the computation of net loss per share for the three months ended December 31, 2020 due to the Company incurring a net loss for the period.

Employee Stock Purchase Plan

We maintain an Employee Stock Purchase Plan (“ESPP”) which provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is a 6-month duration plan with new participation periods beginning on approximately February 25 and August 26 of each year. The purchase price is set at 85% of the average high and low market price of our common stock on either the first or last trading day of the participation period, whichever is lower, and annual contributions are limited to the lower of 10% of an employee’s compensation or $25,000.

Future Issuances

As of December 31, 2020, we had common stock reserved for the following future issuances:


		Number of Common
		Stock Shares Available for
Future Issuances		Future Issuances
Exercise of outstanding stock options		38,407
Unvested restricted stock units and awards		1,734,697
Unvested performance stock units and awards (at 200% maximum payout)		1,472,000
Purchases under the employee stock purchase plan		312,474
Issuance of stock-based awards under the Equity Plans		637,303
Purchases under the officer and director share purchase plan		88,741
Total reserved		4,283,622