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Stockholder's Equity | 9 Months Ended
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Sep. 30, 2022
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Stockholder's Equity | Stockholder's Equity (a) Stock Equity and Incentive Plan The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation. On June 8, 2022, at the Company's 2022 Annual Meeting of Stockholders, the stockholders of the Company approved an amendment and restatement of the Company’s current equity compensation plan to increase the number of shares of common stock reserved for issuance under the plan by 1,280 shares, from 4,800 shares to 6,080 shares (excluding rollover shares). Stock-based compensation expense was $1,103 and $1,031, excluding $6 and $11 of compensation charges related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the three months ended September 30, 2022 and 2021, respectively, and $2,663 and $2,988, excluding $32 and $41 of compensation charges related to ESPP, for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $2,887 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.61 years. As of September 30, 2022, there was $3,129 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.44 years. Stock Options During the three months ended September 30, 2022, the Company issued 53 shares of common stock upon the exercise of stock options and received $464 as payment for the exercise price. No shares were surrendered to the Company to satisfy minimum tax withholding obligations. Additionally, during the three months ended September 30, 2022, no stock options were granted and 87 stock options expired, were canceled or were forfeited. During the nine months ended September 30, 2022, upon the net exercise of 301 stock options, the Company issued 94 shares of common stock and received $613 as payment for the exercise price, 14 shares were surrendered to the Company to satisfy minimum tax withholding obligations, and 193 shares were cancelled. Additionally, during the nine months ended September 30, 2022, 398 stock options were granted and 416 stock options expired, were canceled or were forfeited. During the nine months ended September 30, 2021, 496 stock options were granted. The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the nine months ended September 30, 2022 are as follows:
| Nine Months Ended September 30,
| 2022 |  | 2021
Risk-free interest rate | 2.97 | % |  | 0.92 | %
Expected volatility | 43.16 | % |  | 44.98 | %
Expected life (in years) | 4.24 |  | 4.28
Dividend yield | 0 | % |  | 0 | %
During the nine months ended September 30, 2022, there were accelerated vesting and extended exercise term modifications of stock options as it related to the retirement of Mr. Kits van Heyningen, which resulted in a reduction of approximately $85 in compensation cost. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of stock options for employees terminated as part of the Company's restructuring, which resulted in a reduction of approximately $28 for the three months ended September 30, 2022 and approximately $109 for the nine months ended September 30, 2022 in compensation cost. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of stock options for executive employment agreements, which resulted in an acceleration of compensation expense of approximately $72 for the three months ended September 30, 2022 and approximately $120 for the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of stock options for employees transitioned as part of the sale of the Company's inertial navigation business, which resulted in an acceleration of compensation expense of approximately $81, included in discontinued operations. As of September 30, 2022, there were 1,808 options outstanding with a weighted average exercise price of $9.82 per share and 844 options exercisable with a weighted average exercise price of $10.13 per share. Restricted Stock During the three months ended September 30, 2022, 60 shares of restricted stock were granted with a weighted average grant date fair value of $9.14 per share and 10 shares of restricted stock were forfeited. Additionally, during the three months ended September 30, 2022, 102 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. During the nine months ended September 30, 2022, 243 shares of restricted stock were granted with a weighted average grant date fair value of $8.50 per share and 96 shares of restricted stock were forfeited. Additionally, during the nine months ended September 30, 2022, 249 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. As of September 30, 2022, there were 388 shares of restricted stock outstanding that were still subject to service-based vesting conditions. During the nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock as it related to the retirement of Mr. Kits van Heyningen, which resulted in an acceleration in compensation expense of approximately $186. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock for employees terminated as part of the Company's restructuring, which resulted in an acceleration in compensation expense of approximately $31 for the three months ended September 30, 2022 and approximately $156 for the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock for executive employment agreements, which resulted in an acceleration in compensation expense of approximately $99 for the three months ended September 30, 2022 and approximately $167 for the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock for employees transitioned as part of the sale of the Company's inertial navigation business, which resulted in an acceleration in compensation expense of approximately $374, included in discontinued operations. As of September 30, 2022, the Company had no unvested outstanding options and no outstanding shares of restricted stock that were subject to performance-based or market-based vesting conditions. (b) Employee Stock Purchase Plan The Company's ESPP affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three and nine months ended September 30, 2022, 0 and 22 shares were issued under the ESPP plan, respectively. During the three and nine months ended September 30, 2021, 26 shares were issued under the ESPP plan. The Company recorded compensation charges related to the ESPP of $6 and $11 for the three months ended September 30, 2022 and 2021, respectively, and $32 and $41 for the nine months ended September 30, 2022 and 2021, respectively. (c) Stock-Based Compensation Expense The following table presents stock-based compensation expense, including under the ESPP, in the Company's consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Cost of product sales | $ | 333 |  |  | $ | 78 |  |  | $ | 468 |  |  | $ | 194 |
Cost of service sales | 3 |  |  | 3 |  |  | 8 |  |  | 8 |
Research and development | 371 |  |  | 150 |  |  | 702 |  |  | 491 |
Sales, marketing and support | 14 |  |  | 239 |  |  | 225 |  |  | 664 |
General and administrative | 388 |  |  | 572 |  |  | 1,292 |  |  | 1,672 |
| $ | 1,109 |  |  | $ | 1,042 |  |  | $ | 2,695 |  |  | $ | 3,029 |
(d) Accumulated Other Comprehensive Loss (AOCL) Comprehensive loss includes net loss and unrealized gains and losses from foreign currency translation. The components of the Company’s comprehensive loss and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive loss. The balances for the three months ended September 30, 2022 and 2021 are as follows:
| Foreign Currency Translation |  | Total Accumulated Other Comprehensive Loss
Balance, June 30, 2022 | $ | (4,021) |  |  | $ | (4,021) |
Other comprehensive loss | (646) |  |  | (646) |
Net other comprehensive loss | (646) |  |  | (646) |
Balance, September 30, 2022 | $ | (4,667) |  |  | $ | (4,667) |
| Foreign Currency Translation |  |  |  |  |  | Total Accumulated Other Comprehensive Loss
Balance, June 30, 2021 | $ | (2,968) |  |  |  |  |  |  | $ | (2,968) |
Other comprehensive loss | (370) |  |  |  |  |  |  | (370) |
Net other comprehensive loss | (370) |  |  |  |  |  |  | (370) |
Balance, September 30, 2021 | $ | (3,338) |  |  |  |  |  |  | $ | (3,338) |
The balances for the nine months ended September 30, 2022 and 2021 are as follows:
| Foreign Currency Translation |  |  |  | Total Accumulated Other Comprehensive Loss
Balance, December 31, 2021 | $ | (3,409) |  |  |  |  | $ | (3,409) |
Other comprehensive loss | (1,258) |  |  |  |  | (1,258) |
Net other comprehensive loss | (1,258) |  |  |  |  | (1,258) |
Balance, September 30, 2022 | $ | (4,667) |  |  |  |  | $ | (4,667) |
| Foreign Currency Translation |  |  |  |  |  | Total Accumulated Other Comprehensive Loss
Balance, December 31, 2020 | $ | (3,232) |  |  |  |  |  |  | $ | (3,232) |
Other comprehensive loss | (106) |  |  |  |  |  |  | (106) |
Net other comprehensive loss | (106) |  |  |  |  |  |  | (106) |
Balance, September 30, 2021 | $ | (3,338) |  |  |  |  |  |  | $ | (3,338) |

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