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Note P - Share-based Compensation | 12 Months Ended
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Dec. 31, 2021
Notes to Financial Statements |
Share-based Payment Arrangement [Text Block] | NOTE P—SHARE-BASED COMPENSATION Equity Plans The Company’s board of directors and stockholders approved the following equity plans:
| ‑ | the 2006 Share Incentive Plan
| ‑ | the 2013 Equity Incentive Plan (“2013 Plan”)
| ‑ | the 2021 Equity Incentive Plan (“2021 Plan”)
The Company issued stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) to employees, consultants and non-employee directors. Stock option awards generally vest over a four year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options, RSAs and RSUs may be granted from these plans. Prior to the Company’s initial public offering in September 2013, the fair market value of the Company’s stock had been historically determined by the board of directors and from time to time with the assistance of third party valuation specialists. Stock Options Options have been granted to the Company’s employees under the five incentive plans and generally become exercisable as to 25% of the shares on the first anniversary date following the date of grant and semi-annually thereafter. All options expire ten years after the date of grant. The following is a summary of option activity (in thousands, except per share data):
|  |  |  |  |  |  |  |  |  | Weighted |  |  |  |  |  |  | Weighted |  |  |  |  |
|  |  |  |  |  | Weighted |  |  | Average |  |  |  |  |  |  | Average |  |  |  |  |
|  |  |  |  |  | Average |  |  | Share Price |  |  | Weighted |  |  | Remaining |  |  | Aggregate |
|  | Number of |  |  | Exercise |  |  | on Date of |  |  | Average |  |  | Contractual |  |  | Intrinsic |
|  | shares |  |  | Price |  |  | Exercise |  |  | Fair Value |  |  | Life |  |  | Value |
|  | (in thousands, except price data) |
Outstanding, January 1, 2021 |  |  | 276 |  |  | $ | 10.29 |  |  |  |  |  |  | $ | 5.41 |  |  |  | 2.67 |  |  | $ | 54 |
Exercised |  |  | (2 | ) |  |  | 6.00 |  |  | $ | 9.64 |  |  |  | 0.40 |  |  |  |  |  |  |  | 7 |
Forfeited |  |  | (4 | ) |  |  | 10.46 |  |  |  |  |  |  |  | 5.64 |  |  |  |  |  |  |  | — |
Outstanding, December 31, 2021 |  |  | 270 |  |  |  | 10.32 |  |  |  |  |  |  |  | 5.44 |  |  |  | 1.69 |  |  |  | — |
Exercisable, December 31, 2021 |  |  | 270 |  |  |  | 10.32 |  |  |  |  |  |  |  | 5.44 |  |  |  | 1.69 |  |  |  | — |
Vested and expected to vest |  |  | 270 |  |  |  | 10.32 |  |  |  |  |  |  |  | 5.44 |  |  |  | 1.69 |  |  |  | — |
As of December 31, 2021, there was no unrecognized stock option expense. Restricted Stock Unit/Awards The following is a summary of RSU/RSA activity (in thousands, except per share data):
|  |  |  |  |  | Weighted |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Average Share |  |  | Weighted |  |  | Aggregate |
|  | Number of |  |  | Price on Date |  |  | Average Fair |  |  | Intrinsic |
|  | shares |  |  | of Release |  |  | Value |  |  | Value |
|  | (in thousands, except price data) |
Outstanding at January 1, 2021 |  |  | 1,325 |  |  |  |  |  |  | $ | 14.97 |  |  | $ | 11,279 |
Granted |  |  | 1,733 |  |  |  |  |  |  |  | 10.12 |  |  |  | 16,016 |
Released |  |  | (775 | ) |  | $ | 8.28 |  |  |  | 15.21 |  |  |  | 6,411 |
Cancelled/Forfeited |  |  | (113 | ) |  |  |  |  |  |  | 12.28 |  |  |  | 583 |
Outstanding, December 31, 2021 |  |  | 2,170 |  |  |  |  |  |  |  | 11.15 |  |  |  | 11,156 |
Vested and expected to vest |  |  | 2,170 |  |  |  |  |  |  |  | 11.15 |  |  |  | 11,156 |
As of December 31, 2021, there was $20.9 million of unrecognized compensation expense related to these RSUs and RSAs. This expense is expected to be recognized over 2.52 years. Performance Based Incentive Plan ​In June 2021, the Company approved to grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted ranges from 0% to 200% of the number granted and is determined based on certain performance criteria over a three-year measurement period. The performance criteria for the PSUs are based on a combination of the performance of our stock price and the Total Shareholder Return (“TSR”) for the performance period compared with the TSR of certain peer companies or index for the performance period. PSUs granted vest 100% on the third anniversary of their grant, assuming achievement of the applicable performance criteria. We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the explicit service period. Share-Based Compensation The Company recognizes compensation expense on a straight-line basis over the applicable vesting term of the award and expense is adjusted as forfeitures occur. In 2014, the Company ceased issuing stock options and began issuing RSUs and RSAs as share-based compensation to employees. The Company estimates the fair value of RSUs and RSAs at the fair market value on the grant date. Employee share-based compensation expenses recognized for the years ended December 31, were as follows (in thousands): Share-Based compensation - by expense type:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Cost of goods sold |  | $ | 885 |  |  | $ | 937 |  |  | $ | 772 |
Research and development |  |  | 2,173 |  |  |  | 2,812 |  |  |  | 2,557 |
Sales and marketing |  |  | 1,115 |  |  |  | 1,191 |  |  |  | 1,070 |
General and administrative |  |  | 7,948 |  |  |  | 8,106 |  |  |  | 7,405 |
Total share-based compensation expense |  | $ | 12,121 |  |  | $ | 13,046 |  |  | $ | 11,804 |

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