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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Stockholders' Equity | Stockholders’ Equity The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation. Stock-based compensation expense was $3,320 and $4,053, excluding $104 and $56 of compensation charges related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the years ended December 31, 2022 and 2021, respectively. The Company is authorized to grant stock options, restricted stock awards and other stock-based awards under its Amended and Restated 2016 Equity and Incentive Plan (the 2016 Plan) with respect to up to 6,080 shares of common stock (excluding rollover shares), an increase of 1,280 shares reserved for issuance under the previous 2016 Plan as approved by our shareholders on June 8, 2022. Options have generally been granted with an exercise price equal to the fair market value of the common stock on the date of grant and have generally provided for vesting in equal annual amounts over four years beginning on the first anniversary of the date of the grant. No options are exercisable for periods of more than five years after date of grant. Under the 2016 Plan, each share issued under awards other than options and stock appreciation rights will reduce the number of shares reserved for issuance by two shares. Shares issued under options or stock appreciation rights will reduce the shares reserved for issuance on a share-for-share basis. The 2016 Plan and earlier equity compensation plans, pursuant to which an aggregate of 15,495 shares of the Company’s common stock were reserved for issuance, were all approved by the Company's shareholders. As of December 31, 2022, 1,513 shares were available for future grants. The Compensation Committee of the Board of Directors administers the equity compensation plans, approves the individuals to whom awards will be granted and determines the number of shares and other terms of each award. Outstanding options under the Company's equity compensation plans at December 31, 2022 expire from June 2023 through October 2027. None of the Company’s outstanding options includes performance-based or market-based vesting conditions as of December 31, 2022. (a)Employee Stock Options The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The expected volatility assumption is based on the historical daily price data of the Company’s common stock over a period equivalent to the weighted average expected life of the Company’s options. The expected term of options granted is derived using assumed exercise rates based on historical exercise patterns and represents the period of time the options granted are expected to be outstanding. The risk-free interest rate is based on the actual U.S. Treasury zero-coupon rates for bonds matching the expected term of the option as of the option grant date. The dividend yield of zero is based upon the fact that the Company has not historically declared or paid cash dividends, and does not expect to declare or pay dividends in the foreseeable future. The per share weighted-average fair values of stock options granted during 2022 and 2021 were $3.13 and $4.70, respectively. The weighted-average assumptions used to value options as of their grant date were as follows:
| Year Ended December 31,
| 2022 |  | 2021
Risk-free interest rate | 3.02 | % |  | 0.92 | %
Expected volatility | 43.19 | % |  | 44.98 | %
Expected life (in years) | 4.24 |  | 4.28
Dividend yield | 0 | % |  | 0 | %
The changes in outstanding stock options for the year ended December 31, 2022 and 2021 are as follows:
| Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (in Years) |  | Aggregate Intrinsic Value
Outstanding at December 31, 2021 | 2,127 |  |  | $ | 9.93 |  |  |  |  |
Granted | 414 |  |  | $ | 8.12 |  |  |  |  |
Exercised | (307) |  |  | $ | 8.05 |  |  |  |  |
Expired, canceled or forfeited | (483) |  |  | $ | 10.14 |  |  |  |  |
Outstanding at December 31, 2022 | 1,751 |  |  | $ | 9.77 |  |  | 2.19 |  | $ | 1,948 |
Exercisable at December 31, 2022 | 939 |  |  | $ | 9.98 |  |  | 1.65 |  | $ | 814 |
Options vested or expected to vest at December 31, 2022 | 1,751 |  |  | $ | 9.77 |  |  | 2.19 |  | $ | 1,948 |
| Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (in Years) |  | Aggregate Intrinsic Value
Outstanding at December 31, 2020 | 2,034 |  |  | $ | 9.25 |  |  |  |  |
Granted | 497 |  |  | $ | 12.68 |  |  |  |  |
Exercised | (274) |  |  | $ | 9.86 |  |  |  |  |
Expired, canceled or forfeited | (130) |  |  | $ | 9.96 |  |  |  |  |
Outstanding at December 31, 2021 | 2,127 |  |  | $ | 9.93 |  |  | 2.68 |  | $ | 931 |
Exercisable at December 31, 2021 | 858 |  |  | $ | 9.41 |  |  | 1.65 |  | $ | 453 |
Options vested or expected to vest at December 31, 2021 | 2,127 |  |  | $ | 9.93 |  |  | 2.68 |  | $ | 931 |
During 2022, upon the net exercise of 307 stock options, the Company issued 100 shares of common stock, 14 shares were surrendered to the Company to satisfy minimum tax withholding obligations, and 193 shares were cancelled. The total aggregate intrinsic value of options exercised was $387 and $914 in 2022 and 2021, respectively. As of December 31, 2022, there was $2,525 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.43 years. In 2022 and 2021, the Company recorded compensation charges of $1,023 and $1,740, respectively, related to stock options. Compensation costs for options subject only to service conditions that vest ratably are recognized on a straight-line basis over the requisite service period for the entire award. During 2022 and 2021, cash received under stock option plans for exercises was $664 and $2,709, respectively. During 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 $317 in compensation cost. During 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 $26 in compensation cost. During 2022, there were accelerated vesting term modifications of stock options for executive employment agreements, which resulted in an acceleration of compensation expense of approximately $182. During 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 a reduction of compensation expense of approximately $46, included in discontinued operations. (b)Restricted Stock The Company granted 249 and 217 restricted stock awards to employees under the terms of the 2016 Plan or the Amended and Restated 2006 Stock Incentive Plan (2006 Plan) for the years ended December 31, 2022 and 2021, respectively. The restricted stock awards have generally provided for vesting annually over four years from the date of grant subject to the recipient remaining an employee through the applicable vesting dates. Compensation expense for restricted stock awards is measured at fair value on the date of grant based on the number of shares granted and the quoted market closing price of the Company’s common stock. Such value is recognized as expense over the vesting period of the award, net of forfeitures. The weighted-average grant-date fair value of restricted stock granted during 2022 and 2021 was $8.51 and $12.23 per share, respectively. As of December 31, 2022, there was $2,656 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.28 years. Compensation costs for awards subject only to service conditions that vest ratably are recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost for awards initially subject to certain performance conditions are recognized on a ratable basis over the requisite service period for the entire award. In 2022 and 2021, the Company recorded compensation charges of $2,297 and $2,313, respectively, related to restricted stock awards. During 2022, there were accelerated vesting term modifications of restricted stock as it related to the retirement of Mr. Kits van Heyningen, which resulted in a reduction in compensation expense of approximately $83. During 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 $134. During 2022, there were accelerated vesting term modifications of restricted stock for executive employment agreements, which resulted in an acceleration in compensation expense of approximately $189. During 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 $287, included in discontinued operations. Restricted stock activity under the 2006 Plan and the 2016 Plan for 2022 is as follows:
| Number of Shares |  | Weighted- average grant date fair value
Outstanding at December 31, 2021, unvested | 489 |  |  | $ | 10.19 |
Granted | 249 |  |  | 8.51 |
Vested | (311) |  |  | 9.93 |
Forfeited | (101) |  |  | 9.72 |
Outstanding at December 31, 2022, unvested | 326 |  |  | $ | 9.30 |
(c)Employee Stock Purchase Plan Under the Company's ESPP, an aggregate of 1,650 shares of common stock have been reserved for issuance, of which 780 shares remain available as of December 31, 2022. The ESPP covers all of the Company’s employees. Under the terms of the ESPP, eligible employees can elect to have up to six percent of their pre-tax compensation withheld to purchase shares of the Company’s common stock on a semi-annual basis at 85% of the market price on the first or last day of each purchase period, whichever is lower. During 2022 and 2021, shares issued under this plan were 41 and 26 shares, respectively. The Company utilizes the Black-Scholes option-pricing model to calculate the fair value of these discounted purchases. The fair value of the 15% discount is recognized as compensation expense over the purchase period. The Company applies a graded vesting approach because the ESPP provides for multiple purchase periods and is, in substance, a series of linked awards. In 2022 and 2021, the Company recorded compensation charges of $104 and $56, respectively, related to the ESPP. During 2022 and 2021, cash received under the ESPP was $308 and $230, respectively. (d)Stock-Based Compensation Expense The following presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the years ended December 31, 2022 and 2021.
| 2022 |  | 2021
Cost of product sales | $ | 415 |  |  | $ | 271 |
Cost of service sales | 11 |  |  | 10 |
Research and development | 837 |  |  | 644 |
Sales, marketing and support | 362 |  |  | 898 |
General and administrative | 1,799 |  |  | 2,286 |
| $ | 3,424 |  |  | $ | 4,109 |
(e) Accumulated Other Comprehensive Loss (AOCL) Comprehensive income (loss) includes net income (loss) and unrealized gains and losses from foreign currency translation. The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income (loss).
| Foreign Currency Translation |  | Unrealized Loss on Available for Sale Marketable Securities |  |  |  | Total Accumulated Other Comprehensive Loss
Balance, December 31, 2020 | $ | (3,232) |  |  | $ | — |  |  |  |  | $ | (3,232) |
Other comprehensive loss | (177) |  |  | — |  |  |  |  | (177) |
Net other comprehensive loss | (177) |  |  | — |  |  |  |  | (177) |
Balance, December 31, 2021 | (3,409) |  |  | — |  |  |  |  | (3,409) |
Other comprehensive loss | (689) |  |  | (12) |  |  |  |  | (701) |
Net other comprehensive loss | (689) |  |  | (12) |  |  |  |  | (701) |
Balance, December 31, 2022 | $ | (4,098) |  |  | $ | (12) |  |  |  |  | $ | (4,110) |

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