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Stock Compensation Plan
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock Compensation Plan STOCK COMPENSATION PLAN
We have one compensation plan that provides for the granting of stock options and other share-based awards to key employees and non-employee members of the Board of Directors. The 2022 Equity Incentive Plan (“2022 Plan”) provides for granting options, restricted stock, restricted stock units, dividend equivalent rights or stock appreciation rights to employees and non-employee directors.
We were authorized to grant awards for up to 750,000 shares of common stock under the 2022 Plan, as well as any shares underlying awards outstanding under our 2014 Stock Incentive Plan (the “2014 Plan”) that thereafter terminate or expire unexercised or are canceled, forfeited or lapse for any reason as of the effective date of the 2022 Plan. The 2022 Plan is the successor to and continuation of the 2014 Plan, no additional awards may be granted under the 2014 Plan. All outstanding awards previously granted under the 2014 Plan will remain subject to its previous terms. At the 2023 annual shareholders' meeting, the holders of the Company’s common stock approved an amendment to the Company’s 2022 Equity Incentive Plan to increase the number of shares reserved for issuance by 1,250,000.
There were 6,594 options outstanding at December 31, 2024 under the 2014 Plan at exercise prices between $34.55 and $61.30. The options outstanding under the 2014 Plan have a 7-year term and generally vest over a 3-year period. There were no options outstanding at December 31, 2024 under the 2022 Plan.
Upon election to the Board, each non-employee director receives an initial equity grant of shares of restricted common stock with a value equal to $100,000, calculated using the closing share price on the date of the non-employee director’s election to the Board. The initial restricted stock grant vests on the third anniversary of the grant date, subject to the non-employee director’s continued membership on the Board. Annually, the non-employee directors are granted restricted shares equal to $175,000 on the first business day following the annual meeting of shareholders, calculated using the closing price of our common stock on that day. The shares of restricted stock granted annually to our non-employee directors and our
independent Chairman of the Board vest on the day prior to the following year’s annual meeting date, subject to a non-employee director’s continued membership on the Board. We record compensation cost associated with our restricted stock grants on a straight-line basis over the vesting term.
Annually, upon approval by our Compensation Committee, we grant stock-based awards, which historically have been in the form of restricted stock units, to certain employees. We also have historically granted restricted stock units to certain new employees throughout the year. The fair value of these stock-based awards is determined by using (a) the average trading price of our common stock for the 30 days proceeding the grant date, in the case of restricted stock units without a market condition, or (b) the Monte Carlo Simulation valuation model in the case of market-based restricted stock units with a market condition.
For the stock-based awards granted in 2024, 2023 and 2022, the time-based restricted stock units vest in three equal annual installments beginning one year after the grant date. The performance-based restricted stock unit awards with the market condition vest at the end of the 3-year performance period if the applicable market-based measure is achieved. Stock-based compensation expense of performance-based restricted stock unit awards with the market condition will be recognized over the requisite service period, taking into account the probability that we will satisfy the performance measure. The market-based restricted stock units granted in 2024, 2023 and 2022 will be earned and will vest based upon our total shareholder return (“TSR”) relative to the TSR attained by companies within our defined benchmark group, the Russell 2000 Growth Index. Due to the TSR presence in these market-based restricted stock units, the fair value of these awards was determined using the Monte Carlo Simulation valuation model. We expense these market condition awards over the three-year vesting period regardless of the value the award recipients ultimately receive.
The Monte Carlo Simulation valuation model incorporates assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The weighted-average grant-date fair value of the market-based restricted stock units that were granted during 2024, 2023 and 2022 valued using the Monte Carlo Simulation valuation model was $33.00, $23.89 and $68.62, respectively. For market-based restricted stock units granted during 2024, 2023 and 2022 valued using the Monte Carlo Simulation valuation model, we used the following assumptions:
Year ended December 31
202420232022
Risk-free interest rate4.3 %4.5 %2.0 %
Expected dividend yield— %— %— %
Term3 years2.97 years3 years
Expected volatility58.8 %56.3 %42.5 %

Historical information was the primary basis for the selection of the expected dividend yield and expected volatility. The risk-free interest rate was based on the yields of U.S. zero coupon issues and U.S. Treasury issues, with a term equal to the term of the award being valued.
A summary of stock option activity and weighted average exercise prices follows:
OptionsWeighted-
Average
Exercise Price		Weighted-Average
Remaining
Contractual Term
(Years)
Aggregate Intrinsic
Value as of
December 31, 2024
Outstanding at January 1, 2024
10,501 $51.58 
Granted— — 
Forfeited— — 
Exercised— — 
Expired(3,907)35.44 
Outstanding at December 31, 2024
6,594 $61.14 0.21$— 
Options exercisable at December 31, 2024
6,594 $61.14 0.21$235,956 
As no stock options were exercised during the year ended December 31, 2024 and 2023, the aggregate intrinsic value of stock options exercised was zero. The aggregate intrinsic value of stock options exercised during the year ended December 31, 2022 was $3.0 million. No stock options vested during the year ended December 31, 2024 and 2023.
The following table summarizes the restricted stock and restricted stock unit activity and weighted-average grant date fair values for the year ended December 31, 2024:
SharesWeighted-Average
Grant Date
Fair Value
Non-vested at January 1, 2024
1,457,418 $32.06 
Granted830,880 23.62 
Forfeited(416,183)40.95 
Vested(592,761)28.53 
Non-vested at December 31, 2024
1,279,354 $25.40 
We recorded total stock-based compensation expense associated with our stock incentive plans of $11.7 million, $17.8 million and $13.3 million in 2024, 2023 and 2022, respectively.
As of December 31, 2024, there was $19.5 million in total unrecognized stock-based compensation expense related to non-vested stock-based compensation arrangements. The expense is expected to be recognized over a weighted-average period of 1.87 years.
The following table summarizes total stock-based compensation expense for each of the line items on our consolidated statement of operations:
Years ended December 31,
202420232022
Cost of Sales
Product$1,080 $1,150 $889 
Service388 185 161 
Total cost of sales1,468 1,335 1,050 
Operating Expenses
Selling, general and administrative8,343 14,198 9,656 
Research and development1,878 2,300 2,611 
Total operating expenses10,221 16,498 12,267 
Total stock-based compensation$11,689 $17,833 $13,317