Stockholder's Equity

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

(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 $566 and $701, excluding $12 and $4 of compensation charges related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the three months ended June 30, 2023 and 2022, respectively, and $850 and $1,560, excluding $24 and $26 of compensation shares related to ESPP, for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, there was $2,513 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.80 years. As of June 30, 2023, there was $2,690 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 3.04 years.

Stock Options

During the three months ended June 30, 2023, the Company issued 147 shares of common stock upon the exercise of stock options and received $1,345 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 June 30, 2023, no stock options were granted and 261 stock options expired, were canceled or were forfeited.

During the six months ended June 30, 2023, the Company issued 260 shares of common stock upon the exercise of stock options and received $2,367 as payment for the exercise price. No shares were surrendered to the Company to satisfy minimum tax withholding obligations. Additionally, during the six months ended June 30, 2023, 317 stock options were granted and 431 stock options expired, were canceled or were forfeited. During the six months ended June 30, 2022, 398 stock options were granted. The Company has historically 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 six months ended June 30, 2023 and 2022 are as follows:



	Six Months Ended June 30,
	2023		2022
Risk-free interest rate	4.49	%	2.97	%
Expected volatility	43.93	%	43.16	%
Expected life (in years)	4.30		4.24
Dividend yield	0	%	0	%

As of June 30, 2023, there were 1,377 options outstanding with a weighted average exercise price of $9.55 per share and 565 options exercisable with a weighted average exercise price of $9.63 per share.

Restricted Stock

During the three months ended June 30, 2023, no shares of restricted stock were granted and 3 shares of restricted stock were forfeited. Additionally, during the three months ended June 30, 2023, 51 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 six months ended June 30, 2023, 151 shares of restricted stock were granted with a weighted average grant date fair value of $9.81 per share and 72 shares of restricted stock were forfeited. Additionally, during the six months ended June 30, 2023, 94 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 June 30, 2023, 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.

Common Stock Repurchase

In the first quarter of 2023, the Company’s Board of Directors authorized the repurchase of a portion of executive common stock. The Company repurchased 23 shares of common stock held by executives at the Company to satisfy minimum tax withholding obligations in lieu of cash payment. No shares of common stock were repurchased during the twelve months ended December 31, 2022.

(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 months ended June 30, 2023 and 2022, no shares were issued under the ESPP plan. During the six months ended June 30, 2023 and 2022, 0 and 22 shares were issued under the ESPP plan, respectively. The Company recorded compensation charges related to the ESPP of $12 and $4 for the three months ended June 30, 2023 and 2022, respectively, and $24 and $26 for the six months ended June 30, 2023 and 2022, respectively.

The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of product sales	$	9	$	61	$	16	$	135
Cost of service sales	5		3		9		5
Research and development	149		190		237		331
Sales, marketing and support	59		25		97		211
General and administrative	356		426		515		904
	$	578	$	705	$	874	$	1,586

(d) Accumulated Other Comprehensive Loss (AOCL)

Comprehensive income (loss) includes net income (loss), unrealized gains and losses from foreign currency translation, and unrealized gains and losses on available for sale marketable securities. 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).

The balances for the three months ended June 30, 2023 and 2022 are as follows:



	Foreign Currency Translation		Unrealized Gain (Loss) on Available for Sale Marketable Securities		Total Accumulated Other Comprehensive Loss
Balance, March 31, 2023	$	(4,030)	$	1	$	(4,029)
Other comprehensive income (loss)	75		(1)		74
Net other comprehensive income (loss)	75		(1)		74
Balance, June 30, 2023	$	(3,955)	$	—	$	(3,955)



	Foreign Currency Translation		Total Accumulated Other Comprehensive Loss
Balance, March 31, 2022	$	(3,602)	$	(3,602)
Other comprehensive loss	(419)		(419)

Net other comprehensive loss	(419)		(419)
Balance, June 30, 2022	$	(4,021)	$	(4,021)

The balances for the six months ended June 30, 2023 and 2022 are as follows:



	Foreign Currency Translation		Unrealized (Loss) Gain on Available for Sale Marketable Securities		Total Accumulated Other Comprehensive Loss
Balance, December 31, 2022	$	(4,098)	$	(12)	$	(4,110)
Other comprehensive income	143		12		155
Net other comprehensive income	143		12		155
Balance, June 30, 2023	$	(3,955)	$	—	$	(3,955)



	Foreign Currency Translation		Total Accumulated Other Comprehensive Loss
Balance, December 31, 2021	$	(3,409)	$	(3,409)
Other comprehensive loss	(612)		(612)

Net other comprehensive loss	(612)		(612)
Balance, June 30, 2022	$	(4,021)	$	(4,021)