On April 9, 2019, the Board of Directors authorized a stock repurchase program to acquire up to $15.0 million of its common stock. Any repurchases under the program will be made from time to time on the open market at prevailing market prices. On April 1, 2021, the Company’s Board of Directors approved an extension and expansion of this repurchase program to acquire up to $25 million of its common shares, expiring April 9, 2023. On March 3, 2023, the Company’s Board of Directors approved a two year extension of the stock repurchase plan. As of December 31, 2022, the Company has repurchased 0.5 million shares of its common stock for a total cost of $7.4 million.

On October 30, 2013, the Board of Directors adopted, and on December 27, 2013, the stockholders approved, the 2013 Stock-Based Incentive Compensation Plan (the “2013 Plan”), that became effective upon consummation of the Merger (as defined below) on January 15, 2014 and was subsequently amended at the 2019 annual meeting of stockholders and at the 2021 annual meeting of stockholders. The Company’s stock-based compensation program is a broad-based program designed to attract and retain employees while also aligning employees’ interests with the interests of the Company's stockholders. In addition, members of the Board of Directors participate in the stock-based compensation program in connection with their service on the board.

Stock option awards outstanding under the 2013 Plan are time-based and granted at exercise prices which are equal to the market value of the Company’s common stock on the grant date and expire no later than ten years from the date of grant, but only to the extent they have vested. The options generally vest as specified in the option agreements subject, in some instances, to acceleration in certain circumstances. The restrictions on restricted stock generally lapse over a three-year period from the date of the grant. In the event a participant terminates

employment with the Company, any vested stock options, and any restricted stock still subject to restrictions are generally forfeited if they are not exercised within 90 days.

The following table presents the stock activity and the total number of shares available for grant as of December 31, 2022:


	(in thousands)
Balance at December 31, 2021		998
Options cancelled		71
Restricted stock granted		(507	)
Forfeited/ Expired restricted stock added back		147
Performance-Based restricted stock unearned		8
Performance-Based restricted stock granted		(167	)
Balance at December 31, 2022		550

Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company's stock-based awards, was comprised as follows:


	Year ended December 31,
	2022		2021		2020
	(in thousands)
Cost of revenue	$	433	$	343	$	927
Selling and marketing		2,028		1,746		1,148
Research and development		1,444		1,379		664
General and administrative		4,079		4,188		2,810
Total stock-based compensation	$	7,984	$	7,656	$	5,549

Forfeitures on option grants are estimated at 10% based on evaluation of historical and expected future turnover for non-executives and 0% for executives. Stock-based compensation expense was recorded net of estimated forfeitures, such that expense was recorded only for those stock-based awards that are expected to vest. The Company reviews this assumption periodically and will adjust it if it is not representative of future forfeiture data and trends within employee types (executive vs. non-executive).

The associated tax benefit recognized in the Consolidated Statements of Operations for the fiscal years ended December 31, 2022 and 2021 was approximately $0.2 million and $2.2 million, respectively.


	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(in years)
Outstanding at December 31, 2021		1,739,240		$	7.72		7.02	$	25,542,823
Granted		-			-
Exercised		(90,245	)		7.22
Forfeited		(71,450	)		9.71
Outstanding at December 31, 2022		1,577,545		$	7.66		5.81	$	2,465,015
Vested and expected to vest at December 31, 2022		1,571,949		$	7.73		5.80	$	2,460,325
Exercisable at December 31, 2022		1,283,196		$	7.55		5.49	$	2,252,404

Aggregate intrinsic value represents the difference between the estimated fair value of the underlying common stock and the exercise price of outstanding, in-the-money options. The aggregate intrinsic value of option exercises was $0.8 million and $13.6 million for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022, total unrecognized compensation cost related to non-vested stock options granted to employees was $1.2 million, which is expected to be recognized over a remaining weighted average vesting period of 1.2 years.

Option valuation models require the input of highly subjective assumptions, including expected stock price volatility. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. The fair value of options granted under the 2013 Plan was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Each of these inputs is subjective and generally requires significant judgment to determine. The risk-free rate is based on a zero-coupon U.S. Treasury rate in effect at the time of grant with maturity dates that coincide with the expected life of the options. The expected life of the options is based on a simplified weighted average taking into account the vesting conditions and contractual life of the award. Since the Company had a limited trading history for its common stock, the expected volatility was derived from the historical stock volatilities of several unrelated public companies within the Company’s industry that are considered to be comparable to the Company’s business over a period equivalent to the expected term of the stock option grants.

The weighted average grant date fair value of options granted during the years ended December 31, 2021 and 2020 was $14.89 and $3.82, respectively. The total estimated fair value of employee options vested during the three years ended December 31, 2022 was $4.2 million, $2.6 million and $1.7 million, respectively.


	Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested restricted stock at December 31, 2021		788,454		$	16.81
Granted		506,715			20.64
Vested		(282,588	)		16.19
Shares forfeited		(147,135	)		19.79
Nonvested restricted stock at December 31, 2022		865,446		$	18.75

As of December 31, 2022 total unrecognized compensation cost related to the nonvested restricted stock awards granted was $12.1 million, which is expected to be recognized over a remaining weighted average vesting period of 2.1 years.

As of December 31, 2022, the Company had 249,674 performance-based restricted share units outstanding. The vesting of performance-based restricted share units is determined over a three-year period based on (i) the amount by which revenue growth exceeds a defined baseline market growth each year and (ii) the achievement of specified tiers of adjusted EBITDA as a percentage of net revenue each year, with the ability to earn and vest into such units ranging from 0% to 200%. Included in the Company's share-based compensation was expense recognized for the Company's performance-based restricted share unit awards of $0.0 million and $1.0 million in 2022 and 2021, respectively.