Share-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Note 10 – Share-Based Compensation

The Company’s share-based compensation awards are issued under the 2020 Equity Incentive Plan (2020 Plan), the predecessor 2016 Equity Incentive Plan (2016 Plan) and 2006 Equity Incentive Plan (2006 Plan). Any awards that expire or are forfeited under the 2016 Plan or 2006 Plan become available for issuance under the 2020 Plan. As of June 30, 2023, 21,305 shares of common stock remained available for future issuance under the 2020 Plan.

Share-Based Compensation Expense

Share-based compensation expense reported in the Company’s condensed statements of operations was (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Direct costs and expenses	$	7	$	13	$	24	$	28
Research and development		74		192		181		280
Sales, marketing, general and administrative		976		1,163		3,133		2,406
Total	$	1,057	$	1,368	$	3,338	$	2,714

The unrecognized remaining share-based compensation expense for options and RSUs was approximately $7.7 million as of June 30, 2023 and is expected to be amortized to expense over the next 2.9 years.

Stock Options

Stock option activity during the six months ended June 30, 2023, excluding the Bonus Option Program described below, was (in thousands, except weighted average exercise price and weighted average contractual life):


	Number of Options			Weighted Average Exercise Price		Weighted Average Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding - January 1, 2023		2,541		$	8.40		7.4	$	1,489
Granted		372			1.94		—		—
Forfeited/canceled		(236	)		7.96		—		—
Exercised		(116	)		0.75		—		—
Outstanding ‑ June 30, 2023		2,561		$	7.85		7.3	$	386
Exercisable ‑ June 30, 2023		1,563		$	7.77		6.6	$	331

Restricted Stock Unit Activity

Restricted stock unit activity during the six months ended June 30, 2023 was (in thousands, except weighted average grant date fair value per share):


	Number of Shares			Weighted Average Grant Date Fair Value Per Share
Outstanding ‑ January 1, 2023		1,211		$	2.36
Granted		2,474			1.92
Forfeited/canceled		(120	)		2.79
Released		(611	)		2.27
Outstanding ‑ June 30, 2023		2,954		$	1.99

Bonus-to-Options Program

As part of the Bonus-to-Options Program (Bonus Option Program), the Company recorded the following activity during the six months ended June 30, 2023 (in thousands, excepted weighted average exercise price and weighted average contractual life):


	Number of Options			Weighted Average Exercise Price		Weighted Average Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding ‑ January 1, 2023		526		$	10.69		7.6	$	2
Granted		876			2.00		—		—
Forfeited/canceled		(51	)		11.75		—		—
Exercised		—			—		—		—
Outstanding ‑ June 30, 2023		1,351		$	5.02		8.8	$	—
Exercisable ‑ June 30, 2023		1,351		$	5.02		8.8	$	—

The Company recorded an insignificant amount and $0.2 million for the three and six months ended June 30, 2023, respectively, compared to $0.4 million and $0.7 million for the three and six months ended June 30, 2022, respectively, related to the estimate of the Bonus Option Program. Options granted, if any, pertaining to the performance of the Bonus Option Program are typically approved and granted in first quarter of the year following completion of the fiscal year.

Employee Stock Purchase Plan

The ESPP provides for successive six-month offering periods beginning on September 1st and March 1st of each year. During the six months ended June 30, 2023, 269,846 shares were issued under the ESPP leaving 476,301 shares reserved for future issuance.