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Stockholders' Equity
 9 Months Ended
Sep. 30, 2022
Stockholders Equity Note [Abstract]  
Stockholders' Equity

Note 11 — Stockholders’ Equity

Stock-Based Compensation

The cost that has been charged against income for stock-based compensation is set forth below (in thousands):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2022

 

 

October 1, 2021

 

 

September 30, 2022

 

 

October 1, 2021

 

Employee stock options

 

$

2,865

 

 

$

2,594

 

 

$

7,649

 

 

$

7,850

 

Restricted stock

 

 

67

 

 

 

109

 

 

 

618

 

 

 

507

 

Restricted stock units

 

 

1,249

 

 

 

700

 

 

 

3,242

 

 

 

2,048

 

Performance stock units

 

 

1,240

 

 

 

124

 

 

 

2,932

 

 

 

325

 

Nonemployee stock options

 

 

306

 

 

 

136

 

 

 

934

 

 

 

255

 

Total stock-based compensation expense

 

$

5,727

 

 

$

3,663

 

 

$

15,375

 

 

$

10,985

 

 

The Company recorded stock-based compensation costs in the following categories (in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2022

 

 

October 1, 2021

 

 

September 30, 2022

 

 

October 1, 2021

 

Cost of sales

 

$

233

 

 

$

61

 

 

$

409

 

 

$

150

 

General and administrative

 

 

2,584

 

 

 

1,671

 

 

 

7,171

 

 

 

4,925

 

Selling and marketing

 

 

1,335

 

 

 

851

 

 

 

3,548

 

 

 

2,637

 

Research and development

 

 

1,575

 

 

 

1,080

 

 

 

4,247

 

 

 

3,273

 

Total stock-based compensation expense, net

 

 

5,727

 

 

 

3,663

 

 

 

15,375

 

 

 

10,985

 

Amounts capitalized as part of inventory

 

 

361

 

 

 

383

 

 

 

1,379

 

 

 

1,082

 

Total stock-based compensation expense, gross

 

$

6,088

 

 

$

4,046

 

 

$

16,754

 

 

$

12,067

 

 

Incentive Plan

The Amended and Restated Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, restricted stock units (“RSUs”) and performance stock units (“PSUs”). Options under the Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year period, or as determined by the Board of Directors, and expire over periods not exceeding 10 years from the date of grant. Certain option and share awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Plan). Grants of restricted stock outstanding under the Plan generally vest over periods of one to three years. Grants of RSUs and PSUs outstanding under the Plan generally vest based on service, performance, or a combination of both.  As of September 30, 2022, there were 2,133,765 shares available for grant under the Plan.

Note 11 — Stockholders’ Equity (Continued)

Assumptions

The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table.  Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted is derived from the historical exercises and post-vesting cancellations and represents the period of time that options granted are expected to be outstanding.  The Company has calculated a 5% estimated forfeiture rate based on historical forfeiture experience.  The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.  

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2022

 

 

October 1, 2021

 

 

September 30, 2022

 

 

October 1, 2021

 

Expected dividend yield

 

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected volatility

 

 

54

%

 

 

53

%

 

 

54

%

 

 

53

%

Risk-free interest rate

 

 

2.91

%

 

 

0.79

%

 

 

1.88

%

 

 

0.84

%

Expected term (in years)

 

 

5.10

 

 

 

5.38

 

 

 

5.10

 

 

 

5.38

 

 

Stock Options

A summary of stock option activity under the Plan for nine months ended September 30, 2022 is presented below:

 

 

 

Stock

Options

(in 000’s)

 

 

Minimum

Exercise

Price

 

 

Maximum

Exercise

Price

 

Outstanding at December 31, 2021

 

 

2,435

 

 

 

 

 

 

 

 

 

Granted

 

 

443

 

 

 

 

 

 

 

 

 

Exercised

 

 

(417

)

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(23

)

 

 

 

 

 

 

 

 

Outstanding at September 30, 2022

 

 

2,438

 

 

$

5.34

 

 

$

154.96

 

Exercisable at September 30, 2022

 

 

1,778

 

 

 

 

 

 

 

 

 

 

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSUs and PSUs activity under the Plan for the nine months ended September 30, 2022 is presented below (shares in thousands):

 

 

 

Restricted

Stock

 

 

RSUs

 

 

PSUs

 

Unvested at December 31, 2021

 

 

3

 

 

 

131

 

 

 

10

 

Granted

 

 

6

 

 

 

116

 

 

 

113

 

Vested

 

 

(5

)

 

 

(57

)

 

 

(5

)

Unvested at September 30, 2022

 

 

4

 

 

 

190

 

 

 

118