Equity Incentive Plan

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

Stock Options

The fair value of option awards are estimated on the date of grant using the Black-Scholes option pricing model. Expected volatility was based on historical volatility of the Company’s common shares. The expected term of options granted was based on the simplified formula. The risk-free interest rate was based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The dividend yield assumption was based on the expectation of no future dividend payments.

The assumptions used in the Black-Scholes model were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Expected volatility	84.0	%	124.0	%	84.0	%	124.0	%
Expected term (in years)	0.5		4.2		0.5		4.2
Risk-free interest rate	5.27%		2.71-3.25%		5.27%		2.71-3.25%
Dividend yield	—		—		—		—

The following table summarizes option activity:


	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Options outstanding — January 1, 2023	389,604	$	7.07
Granted	100,000	$	2.11
Exercised	(94,701)	$	2.11
Forfeited	(14,286)	$	6.30
Options outstanding — June 30, 2023	380,617	$	7.01	5.1	$	—
Vested and expected to vest — June 30, 2023	380,617	$	7.01	5.1	$	—
Exercisable — June 30, 2023	129,560	$	11.75	4.7	$	—

Restricted Stock

The following table summarizes RSU activity:


	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding — January 1, 2023	125,182	$	8.89
Granted	444,697	$	2.90
Vested and released	(101,873)	$	5.37
Forfeited	(20,953)	$	6.78
Outstanding — June 30, 2023	447,053	$	3.83

The estimated fair value of RSUs was based on the market value of the Company’s common shares on the date of grant. RSUs typically vest over a period of one to three years from the original date of grant. The total grant date fair value of RSUs vested during the six months ended June 30, 2023 and 2022 was approximately $0.5 million and $2.0 million, respectively. The fair value of RSUs vested during the six months ended June 30, 2023 and 2022 was approximately $0.2 million and $1.5 million, respectively.

Share-Based Compensation Expense

The Company recorded the following compensation expense related to its share-based compensation awards (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Sales and marketing	$	35	$	—	$	51	$	—

General and administrative	684		7,199		1,153		7,316
Total share-based compensation expense	$	719	$	7,199	$	1,204	$	7,316

Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted):


	June 30, 2023
	Unrecognized Expense		Remaining Weighted-Average Recognition Period (years)
RSUs	$	1,247	1.1
Stock options	$	449	1.4