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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company accounts for the issuance of stock-based awards to employees in accordance with ASC Topic 718, which requires that the cost resulting from all stock-based compensation payment transactions be recognized in the financial statements. This pronouncement establishes fair value as the measurement objective in accounting for stock-based compensation payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all stock-based compensation payment transactions with employees. All stock-based compensation is included in operating expenses as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Compensation cost recognized:
Selling, general & administrative$561 $614 $1,270 $5,536 
Research & development168 98 498 470 
$729 $712 $1,768 $6,006 
Stock Options
The Company uses the Black-Scholes option pricing model to value the stock options on the grant date. The table below presents the weighted average expected life of the stock options in years. The Company uses the simplified method for all grants to estimate the expected life of the option and assumes that stock options will be exercised evenly over the period from vesting until the awards expire. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect on the grant date. Options, generally, vest from one to four years. The compensation expense is recognized over the service period on a straight-line basis and reduced by forfeitures when they occur.
As noted in Note 2, certain option awards no longer qualify as equity awards and instead are classified as liability awards. The fair value of these awards are determined at each reporting period utilizing a Black-Scholes option pricing model, and the associated compensation expense for the reporting period is recorded. The Company increased stock-based compensation expense by approximately $33 and decreased by approximately $277 for the three and nine months ended September 30, 2022 and increased stock-based compensation by approximately $73 and $3,736 for the three and nine months ended September 30, 2021 as a result of the change in fair value of these awards.
Stock option activity under the 2015 Stock Option Plan (the “Plan”) during the period indicated below were as follows:
Number of
Shares
Subject to
Issuance		Weighted-
average
Exercise
Price		Weighted-
average
Remaining Contractual
Term		Aggregate
Intrinsic
Value
Outstanding at December 31, 2021496,424$6.13 3.03 years$528 
Granted732,2282.14 – – 
Forfeited(63,976)4.40 – – 
Outstanding at September 30, 20221,164,676$3.72 3.77 years$337 
Exercisable at September 30, 2022232,739$6.77 1.30 years$– 
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on September 30, 2022. This amount changes based upon the fair market value of the Company’s stock.
Restricted Stock Units
The Company issues Restricted Stock Units (“RSUs”) which are equity-based instruments that may be settled in shares of common stock of the Company. During the nine months ended September 30, 2022, the Company issued RSUs to certain directors as compensation. RSU agreements can vest immediately or with the passage of time. The vesting of all RSUs is contingent on continued board and employment services.
The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant, is amortized on a straight-line basis over the requisite service period and charged to operating expenses with a corresponding increase to additional paid-in capital, reduced by forfeitures when they occur.
Number of
Shares		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2021408,376$10.43 
Granted90,4582.36 
Forfeited(25,199)11.50 
Vested and settled in shares(270,143)8.56 
Outstanding at September 30, 2022203,492$9.19 
Performance Stock Units
On August 7, 2020, the Company issued 265,942 Performance Stock Units (PSUs) to its officers and certain employees as compensation. 50% of the PSUs were to vest based on the Company’s market price and 50% were to vest based on the Company’s Adjusted EBITDA. Both the conditions were to occur over a specified time and were contingent on continued employment services.
On November 4, 2021, the Company amended its PSU Plan so that 100% of the PSUs will be subject to vesting based on the Company’s market price as the sole vesting criteria. As a result of this amendment, the adjusted EBITDA performance metric from the previous plan is no longer a criteria performance metric.
Compensation expense is based on a Geometric Brownian Motion valuation model based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite period. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for this performance metric is amortized over the anticipated service period. Compensation expense is charged to operating expenses with a corresponding increase to additional paid-in capital.
Number of
Shares		Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2021228,498$7.91 
Forfeited(50,810)7.91 
Outstanding at September 30, 2022177,688$7.91 
As of September 30, 2022, total unrecognized compensation cost was $2,775, net of estimated forfeitures, related to all unvested stock options, RSUs and PSUs, which is expected to be recognized over a weighted average period of approximately 1.64 years.
The Company had 1,239,387 shares available for future grants under the Plan at September 30, 2022.