Stockholders' Equity

6 Months Ended

Jun. 30, 2021

Note 6. Stockholders’ Equity

On February 22, 2021, the Company completed a follow-on public offering, in which it issued and sold 1,500,000 shares of its common stock and MegaChips sold 1,500,000 of the Company’s common stock held by them at a price of $127 per share.

Equity Incentive Plans

The following table summarizes the restricted stock unit award (“RSU”) and cash restricted stock unit award (“CRSU”), activity for the three and six months ended June 30, 2021:

	RSU			Grant Date		CRSU			Grant Date
	Number of			Fair Value		Number of			Fair Value
	Shares			per share		Shares			per share
Unvested at December 31, 2020		2,735,706		$	22.4		624		$	35.1
Granted		190,838			107.1		3,025			111.9
Vested		(189,460	)		22.8		(3,405	)		101.7
Forfeited		(13,840	)		13.0		—			—
Unvested at March 31, 2021		2,723,244		$	28.2		244		$	58.4
Granted		103,063			100.5		—			—
Vested		(221,049	)		23.1		—			—
Forfeited		(49,880	)		29.6		(244	)		58.4
Unvested at June 30, 2021		2,555,378		$	31.5		—		$	-

On August 4, 2020, the Compensation Committee of the Company adopted and approved the Executive Bonus and Retention Plan (the “Bonus and Retention Plan”) with target bonus amounts and performance goals for the second half of the fiscal year 2020 (the “2020 Goals”). In January 2021, the Compensation Committee approved target bonus amounts and performance goals for the first half of the fiscal year 2021 (the “1H2021 Goals”) and in July 2021 the Compensation Committee approved target bonus amounts and performance goals for the second half of the fiscal year 2021 (the “2H2021 Goals”). The 2020 Goals, the 1H2021 Goals and the 2H2021 Goals are based on the achievement of revenue and Non-GAAP operating profit, as well as individual performance goals. The awards for the actual payouts are granted in the quarter following the end of the performance period. The target bonuses were granted based on a fixed dollar amount to be settled in RSUs on the vesting date and hence the awards have been classified as liability-based awards. Such expense is included in the non-cash adjustment within stock-based compensation expense on the condensed consolidated cash flow statements. The liability of $1.3 million for 1H2021 Goals was recorded as accrued expenses and other current liabilities in the condensed consolidated balance sheet. Actual payouts for 2020 Goals ranged from 119% to 144% of target, and for 1H2021 Goals ranged from 76% to 141% of target, based on performance.

In the six months ended June 30, 2021, the Company granted CRSUs as part of an employee bonus plan. The Company ended such program effective April 1, 2021. Generally, such units were granted quarterly and fully vested at the end of the quarter they were granted except units granted to new hires that had a one-year cliff vesting. Such awards have also been classified as liability-based awards.

Stock-Based Compensation

The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Equity awards	(in thousands)
Cost of revenue	$	428	$	30	$	812	$	86
Research and development		2,531		974		4,987		1,916
Selling, general and administrative		3,675		2,072		7,010		3,829
	$	6,634	$	3,076	$	12,809	$	5,831

Liability-based awards - equity settled
Cost of revenue	$	33	$	—	$	50	$	—
Research and development		328		—		532		—
Selling, general and administrative		494		—		758		—
	$	855	$	—	$	1,340	$	—
Total stock-based compensation - equity settled	$	7,489	$	3,076	$	14,149	$	5,831

Liability-based awards - cash settled
Cost of revenue	$	—	$	40	$	102	$	40
Research and development		37		98		143		98
Selling, general and administrative		—		54		108		54
Total stock-based compensation - cash settled	$	37	$	192	$	353	$	192
Total stock-based compensation expense	$	7,526	$	3,268	$	14,502	$	6,023

As of June 30, 2021, there was $72.6 million and $0.5 million of unrecognized compensation costs related to RSUs granted and liability-based awards granted, respectively. The unrecognized compensation cost is expected to be recognized over a weighted average period of 3.5 years for equity awards and 0.4 years for liability-based awards.