XML 26 R15.htm IDEA: XBRL DOCUMENT

Note 8 - Capital Stock and Stock-based Compensation

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Shareholders' Equity and Share-based Payments [Text Block]

8.	Capital Stock and Stock-Based Compensation

Stock-Based Payment Awards

Activity under the Company’s 2000 Stock Option and Incentive Plan, as Amended, for the three months ended March 31, 2021 was as follows:

		Stock Options								Restricted Stock Units								Market Condition RSU's
						Weighted
		*Stock*				*Average*				*Restricted*								*Market*
		*Options*				*Exercise*				*Stock Units*				*Grant Date*				*Condition RSU's*				*Grant Date*
		*Outstanding*				*Price*				*Outstanding*				*Fair Value*				*Outstanding*				*Fair Value*
Balance at December 31, 2020			2,637,339			$	3.51				1,560,461			$	2.44				813,031			$	2.12
Granted			-				-				714,793				4.39				293,509				4.61
Exercised			(310,169	)			4.01				-				-				-				-
Vested (RSUs)			-				-				(340,395	)			2.73				-				-
Cancelled/Forfeited			(474,309	)			4.64				(11,000	)			4.17				-				-
Balance at March 31, 2021			1,852,861			$	3.14				1,923,859			$	3.10				1,106,540			$	2.78

Stock-based compensation expense related to stock options, restricted stock units, Market Condition RSU’s and the ESPP for the three months ended March 31, 2021 and 2020 was allocated as follows:

		Three Months Ended March 31,
(in thousands)		2021				2020
Cost of revenues		$	20			$	10
Sales and marketing expenses			93				51
General and administrative expenses			834				696
Research and development expenses			21				36
Total stock-based compensation expenses		$	968			$	793

As of March 31, 2021, the total compensation costs related to unvested awards not yet recognized is $7.8 million and the weighted average period over which it is expected to be recognized is approximately 2.4 years. The Company did not capitalize any stock-based compensation.

The weighted average estimated fair value of the Market Condition RSUs that were granted during the three months ended March 31, 2021 was $4.61. The following assumptions were used to estimate the fair value of the Market Condition RSUs granted during the three months ended March 31, 2021 using a Monte-Carlo valuation simulation:

		2021
Volatility			65.1	%
Risk-free interest rate			0.3	%
Correlation coefficient			35.7	%
Dividend yield			-	%

Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the number of weighted average shares of common stock outstanding during the period. The calculation of diluted earnings per share assumes conversion of stock options, restricted stock units and Market Condition RSUs into common stock using the treasury method. The weighted average number of shares used to compute basic and diluted earnings per share consists of the following:

		Three Months Ended March 31, 2021
		2021				2020
Basic			39,787,281				38,328,791
Dilutive effect of equity awards			-				-
Diluted			39,787,281				38,328,791

The Company has excluded from the shares used in calculating the diluted earnings per common share options, restricted stock units and Market Condition RSUs totaling 4,883,260 and 4,222,425, as of March 31, 2021 and 2020 respectively, as the impact of these shares would be anti-dilutive.