Equity Incentive Plan

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

17. EQUITY INCENTIVE PLAN

2015 Equity Incentive Plan

Restricted stock units are converted into shares of the Company’s ordinary shares upon vesting on

one-for-one

basis. The vesting of restricted stock unit is subject to the employee’s continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s ordinary share on the date of the grant, and compensation is recognized on a straight-line basis over the requisite service period. The Company’s restricted stock units are considered

non-vested

share awards as defined under ASC 718.

On June 3, 2015, the Company adopted its 2015 Equity Incentive Plan (“the 2015 Plan”). The 2015 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2015 Plan reserved 20,000 thousand shares of ordinary shares for issuance upon exercise of stock options and restricted stock units.

Restricted Stock Units Activity

The following is a summary of, the 2015 Plan, which includes restricted stock units:


	Unit (in Thousands)
Available for grant at January 1, 2018		17,387
Restricted stock units granted		(1,622	)
Restricted stock units forfeited		22

Available for grant at December 31, 2018		15,787
Restricted stock units granted		(1,584	)
Restricted stock units forfeited		57

Available for grant at December 31, 2019		14,260
Restricted stock units granted		(1,692	)
Restricted stock units forfeited		57

Available for grant at December 31, 2020		12,625

The related tax effect for stock-based compensation benefit (expense) were US$177 thousand, US$(49) thousand and US$11 thousand for 2018, 2019 and 2020, respectively. The related tax effect for stock-based compensation expense for restricted stock units exercised during 2018, 2019 and 2020 was US$2,211 thousand, US$3,446 thousand and US$2,188 thousand, respectively. The related tax effect was determined using the applicable tax rates

Restricted Stock Units

A summary of the status of restricted stock units and changes is as follows:


	Number of Non-vested Stock Units (in Thousands)			Weighted Average Grant Date Fair Value (US$)		Weight Average Remaining Recognition Period (Years)
Non-vested at January 1, 2018		1,538			10.36		0.33
Restricted stock units granted		1,622			13.86
Restricted stock units vested		(1,517	)		9.79
Restricted stock units forfeited		(22	)		11.75

Non-vested at December 31, 2018		1,621			13.85		0.38
Restricted stock units granted		1,584			8.01
Restricted stock units vested		(1,505	)		14.12
Restricted stock units forfeited		(57	)		9.59

Non-vested at December 31, 2019		1,643			8.08		0.29
Restricted stock units granted		1,692			9.40
Restricted stock units vested		(1,564	)		8.02
Restricted stock units forfeited		(57	)		9.31

Non-vested at December 31, 2020		1,714			9.37		0.31

As of December 31, 2020, there was US$3,116 thousand of total unrecognized compensation cost related to restricted stock units granted under the 2015 Plan.

Stock-based Compensation Expense

The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2018, 2019 and 2020.


	Year Ended December 31
	2018		2019		2020
	US$		US$		US$
Cost of sales		390		305		253
Research and development		13,278		9,927		10,132
Sales and marketing		3,407		1,789		1,759
General and administrative		3,704		2,570		2,445

		20,779		14,591		14,589