Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

v3.22.1
Stock Based Compensation
3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation

Note 15. Stock Based Compensation

 

Stock-based compensation expense

 

Stock-based compensation is recorded in the consolidated statements of operations as follows (in thousands):

 

Three months ended March 31,

 

 

2022

 

2021

 

Cost of goods sold

$

13

 

$

1

 

Research and development

 

267

 

 

204

 

Sales and marketing

 

287

 

 

215

 

General and administrative

 

674

 

 

508

 

Total stock-based compensation expense

$

1,241

 

$

928

 

Stock Options

The following table summarizes the outstanding stock option activity during the period indicated (shares in thousands):

 

 

 

 

Weighted average

 

 

Number of
stock options

 

Exercise
price

 

Remaining
contractual
term
(in years)

 

Balance at December 31, 2021

 

2,000

 

$

12.79

 

 

7.3

 

Granted

 

282

 

 

9.28

 

 

 

Exercised

 

(1

)

 

1.90

 

 

 

Expired/Forfeited

 

(106

)

 

14.66

 

 

 

Balance at March 31, 2022

 

2,175

 

 

12.25

 

 

7.1

 

 

 

 

 

 

 

 

Vested and exercisable at March 31, 2022

 

1,298

 

 

10.92

 

 

5.9

 

Vested and expected to vest at March 31, 2022

 

2,175

 

 

12.25

 

 

7.1

 

The weighted average grant date fair value of options granted during the three months ended March 31, 2022 and year ended December 31, 2021, was $4.86 and $9.86, respectively. For stock options vested and expected to vest, the aggregate intrinsic value as of March 31, 2022 and December 31, 2021, was $1.0 million and $2.2 million, respectively.

 

At March 31, 2022, there was $5.6 million of unrecognized compensation cost related to unvested stock options granted under the Company’s equity plans that is expected to be recognized over the next 2.7 years.

Restricted Stock

 

The following table summarizes the Company's restricted stock unit activity during the period indicated (shares in thousands):

 

Restricted
stock unit shares

 

Weighted average grant date
fair value

 

Balance at December 31, 2021

 

333

 

$

17.55

 

Grants

 

138

 

 

9.02

 

Vested and released

 

(73

)

 

17.76

 

Forfeited

 

(41

)

 

16.35

 

Balance at March 31, 2022

 

357

 

 

14.33

 

As of March 31, 2022 there was $4.6 million of total unrecognized compensation cost related to unvested restricted stock units having a weighted average remaining contractual term of 2.0 years.

Employee Stock Purchase Plan (ESPP)

 

The Company maintains the 2016 Employee Stock Purchase Plan (ESPP) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is implemented through consecutive 6-month offering periods commencing on March 1 and September 1 of each year. The purchase price is set at 85% of the fair market value of the Company's common stock on either the first or last trading day of the offering period, whichever is lower. Annual contributions are limited to the lower of 20% of an employee's eligible compensation or such other limits as apply under Section 423 of the Internal Revenue Code. The ESPP is intended to qualify as an employee stock purchase plan for purposes of Section 423 of the Internal Revenue Code.

 

Based on the 15% discount and the fair value of the option feature of the ESPP, it is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company currently uses authorized and unissued shares to satisfy share award exercises.

 

During the three months ended March 31, 2022, the Company received $0.2 million from the issuance of 31,170 shares under the ESPP.