XML 35 R22.htm IDEA: XBRL DOCUMENT
v3.20.4

Stock Plans | 12 Months Ended
--- | ---
Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Stock Plans | Stock Plans In March 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan replaces the Company’s prior 2000 Equity Incentive Plan (the “2000 Plan”) and the 2006 Equity Incentive Plan (the “2006 Plan”) (collectively, the “Plans”). Beginning March 2015, all awards were granted under the 2015 Plan. In addition, any awards that were previously granted under any prior Plans that terminate without issuance of shares, shall be eligible for issuance under the 2015 Plan. Under the 2015 Plan, the Company may grant to its employees, outside directors and consultants awards in the form of non-qualified stock options, shares of restricted stock, stock units, or stock appreciation rights and performance shares. The Company’s Board of Directors administers the Plan and is responsible for determining the individuals to be granted options or shares, the number of options or shares each individual will receive, the price per share and the exercise period of each option. On December 15, 2017, the Compensation Committee adopted the 2017 New Hire Equity Incentive Plan (“2017 New Hire Plan”), which is intended to be exempt from the stockholder approval requirements under the “inducement grant exception” provided by the Inducement Rule. The Committee authorized the issuance of up to 1.5 million Common Shares to new hires, with the purpose of promoting the long-term success of the Company and the creation of stockholder value by (a) providing for the attraction and retention of new employees with exceptional qualifications, (b) encouraging new employees to focus on critical long-range objectives, and (c) linking new employees directly to stockholder interests through increased stock ownership. As required by the Inducement Rule, the Company issues a press release promptly upon issuing shares to new employees pursuant to the 2017 New Hire Plan. There were no significant changes to the Company’s Stock Plans during the year ended December 31, 2020. As of December 31, 2020, there were 1.5 million shares available for the grant or award under the Company’s 2015 Plan and 0.4 million shares available for the grant or award under the Company’s 2017 New Hire equity incentive Plan. The Company’s performance cash awards granted to executives under the Long Term Incentive (“LTI”) Plans have been accounted for as liability awards, due to the Company’s intent and the ability to settle such awards in cash upon vesting and has reflected such awards in accrued expenses. As of December 31, 2020, the liability for such awards is approximately $0.5 million. Stock-Based Compensation The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by operating expense categories, as follows:
|  |  | Twelve Months Ended December 31,
|  |  |  |  |  |  | 2020 |  | 2019 |  | 2018
Cost of revenues |  |  |  |  |  |  | $ | 2,409 |  |  | $ | 2,929 |  |  | $ | 4,370 |
Research and development |  |  |  |  |  |  | 4,380 |  |  | 4,227 |  |  | 6,055 |
Selling, general and administrative |  |  |  |  |  |  | 4,348 |  |  | 15,094 |  |  | 17,179 |
Total stock-based compensation expense |  |  |  |  |  |  | $ | 11,137 |  |  | $ | 22,250 |  |  | $ | 27,604 |
The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by award types, as follows:
|  |  | Twelve Months Ended December 31,
|  |  |  |  |  |  | 2020 |  | 2019 |  | 2018
Stock options |  |  |  |  |  |  | $ | 1,308 |  |  | $ | 7,348 |  |  | $ | 7,368 |
Restricted stock awards |  |  |  |  |  |  | 9,743 |  |  | 14,775 |  |  | 20,216 |
Performance Based Cash Units |  |  |  |  |  |  | 86 |  |  | 127 |  |  | 20 |
Total stock-based compensation before taxes |  |  |  |  |  |  | 11,137 |  |  | 22,250 |  |  | 27,604 |
Tax benefit |  |  |  |  |  |  | $ | 1,815 |  |  | $ | 3,455 |  |  | $ | 5,387 |
The total stock-based compensation cost related to unvested equity awards as of December 31, 2020 was approximately $12.8 million. The expense is expected to be recognized over a weighted-average period of approximately 0.8 years. The total stock-based compensation cost related to unvested performance-based cash units as of December 31, 2020 was approximately $0.3 million. The expense is expected to be recognized over a weighted-average period of approximately 1.6 years. Stock Options Options that were granted under the Company’s 2000, 2006 and 2015 Plans generally vest 25% on the first-year anniversary of the date of grant plus an additional 1/48th for each month of continuous service thereafter. Options that were granted under the Company’s 2010 Plan generally vest 50% on the second-year anniversary and an additional 1/48th for each month of continuous service thereafter. Incentive options that were granted under the 2000 and 2006 Plans generally vest 25% on the first-year anniversary on the date of grant and an additional 1/48th for each month of continuous service thereafter. There were no significant changes to the Company’s Stock Option Plans during the year ended December 31, 2020. The Company uses the Black-Scholes option pricing model for determining the estimated fair value for stock options. The weighted-average assumptions used in the Black-Scholes option pricing model are as follows:
|  |  |  | Twelve Months Ended December 31,
|  |  |  |  |  |  |  | 2020 |  | 2019 |  | 2018
Expected stock price volatility |  |  |  |  |  |  |  | 74.5 | % |  | 69.6 | % |  | 65.5 | %
Risk-free interest rate |  |  |  |  |  |  |  | 1.0 | % |  | 1.9 | % |  | 2.6 | %
Expected life of options (in years) |  |  |  |  |  |  |  | 4.47 |  | 4.34 |  | 4.13
Expected dividend yield |  |  |  |  |  |  |  | 0.0 | % |  | 0.0 | % |  | 0.0 | %
Weighted-average fair value (PSV) of the options |  |  |  |  |  |  |  | $ | 2.79 |  |  | $ | 3.82 |  |  | $ | 4.91 |
The following table summarizes information about stock options outstanding as of December 31, 2020:
Options |  | Number of Options |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at December 31, 2019 |  | 4,922 |  |  | $ | 14.54 |  |  |  |  |
Options Granted |  | 2,315 |  |  | 4.84 |  |  |  |  |
Options Exercised |  | — |  |  | — |  |  |  |  |
Options Cancelled |  | (2,814) |  |  | 14.32 |  |  |  |  |
Outstanding at December 31, 2020 |  | 4,423 |  |  | $ | 9.60 |  |  | 4.57 |  | $ | 788,413.19 |
Vested at December 31, 2020 |  | 1,809 |  |  | $ | 15.38 |  |  | 2.59 |  | $ | — |
Exercisable at December 31, 2020 |  | 1,809 |  |  | $ | 15.38 |  |  | 2.59 |  | $ | 1,547.85 |
The total intrinsic value of stock options exercised during the year ended December 31, 2020 and 2019 was nil and $20.5 thousand, respectively. The total intrinsic value of stock options exercisable as of December 31, 2020 and 2019 was $1.5 thousand and $1.2 thousand, respectively. Awards of Restricted Stock and Performance Stock Restricted stock awards (“Restricted Stock”) granted under the Company’s Plans generally vest 25% of the applicable shares on the first anniversary of the date of grant and thereafter an additional 1/16th for each three months of continuous service. Generally, performance stock awards granted under the Company’s 2015 Plan vest at the end of a three-year period based on service and achievement of certain performance objectives determined by the Company’s Board of Directors. There were no significant changes to the Company’s restricted stock award (“Restricted Stock”) and performance stock plan during the year ended December 31, 2020. A summary of the Company’s unvested restricted stock at December 31, 2020, and changes during the year ended December 31, 2020, is presented below:
Unvested Restricted Stock |  | Number of Awards |  | Weighted- Average Grant Date Fair Value
Unvested at December 31, 2019 |  | 3,375 |  |  | $ | 8.68 |
Granted |  | 301 |  |  | 4.90 |
Vested |  | (1,341) |  |  | 9.11 |
Forfeited |  | (825) |  |  | 7.79 |
Unvested at December 31, 2020 |  | 1,510 |  |  | $ | 7.05 |
Restricted stock awards are granted subject to other service conditions or service and performance conditions (“Performance-Based Awards”). Restricted stock and Performance-Based Awards are measured at the closing stock price at the date of grant and are recognized straight line over the requisite service period. Performance Based Cash Units Performance based cash units (PBCU) generally vest at the end of a three-year period based on service and achievement of certain performance objectives determined by the Company’s Board of Directors. The PBCU can be settled in cash or in equity as determined by the Compensation Committee. A summary of the Company’s unvested performance-based cash units at December 31, 2020 and changes during the year ended December 31, 2020, is presented below:
Unvested Cash Units |  | Number of Awards |  | Period end Fair Value
Unvested at December 31, 2019 |  | 1,046 |  |  | $ | 4.75 |
Granted |  | 1,391 |  |  | — |
Vested |  | — |  |  | — |
Forfeited |  | (1,530) |  |  | — |
Unvested at December 31, 2020 |  | 907 |  |  | $ | 4.70 |
Performance based cash units are measured at the closing stock price at the reporting period end date and are recognized straight line over the requisite service period. The expense for the period will increase or decrease based on updated fair values of these awards as well as the percentage achievement of the performance metrics at each reporting date.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration