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Note 8 - Capital Stock and Stock-based Compensation | 9 Months Ended
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Sep. 30, 2021
Notes to Financial Statements |
Shareholders' Equity and Share-based Payments [Text Block] |
8. | Capital Stock and Stock-Based Compensation
Retirement of Treasury Stock In May 2021, the Company retired the 7,745,507 shares of common stock held by the Company as treasury shares and returned these shares to the status of authorized and unissued shares of common stock. Stock-Based Payment Awards Activity under the Company’s equity incentive plans for the nine months ended September 30, 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 |  |  | - |  |  |  | - |  |  |  | 793,968 |  |  |  | 4.65 |  |  |  | 293,509 |  |  |  | 4.61 |
Exercised |  |  | (534,862 | ) |  |  | 3.78 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Vested (RSUs) |  |  | - |  |  |  | - |  |  |  | (799,264 | ) |  |  | 2.48 |  |  |  | (396,274 | ) |  |  | 2.09 |
Cancelled/Forfeited |  |  | (651,368 | ) |  |  | 4.24 |  |  |  | (57,215 | ) |  |  | 3.65 |  |  |  | (6,179 | ) |  |  | 2.98 |
Performance Factor Adjustment |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 163,216 |  |  |  | 2.98 |
Balance at September 30, 2021 |  |  | 1,451,109 |  |  | $ | 3.12 |  |  |  | 1,497,950 |  |  | $ | 3.54 |  |  |  | 867,303 |  |  | $ | 3.13 |
Stock-based compensation expense related to stock options, restricted stock units, Market Condition RSU’s and the Company’s employee stock purchase plan for the three and nine months ended September 30, 2021 and 2020, was allocated as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Cost of revenues |  | $ | 32 |  |  | $ | 19 |  |  | $ | 83 |  |  | $ | 43 |
Sales and marketing expenses |  |  | 149 |  |  |  | 92 |  |  |  | 373 |  |  |  | 205 |
General and administrative expenses |  |  | 790 |  |  |  | 908 |  |  |  | 2,593 |  |  |  | 2,249 |
Research and development expenses |  |  | 33 |  |  |  | 60 |  |  |  | 87 |  |  |  | 144 |
Total stock-based compensation expenses |  | $ | 1,004 |  |  | $ | 1,079 |  |  | $ | 3,136 |  |  | $ | 2,641 |
As of September 30, 2021, the total compensation costs related to unvested awards not yet recognized is $6.0 million and the weighted average period over which it is expected to be recognized is approximately 2.0 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 nine months ended September 30, 2021 was $4.61 per unit. The following assumptions were used to estimate the fair value of the Market Condition RSUs granted during the nine months ended September 30, 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 (EPS) 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 September 30, |  |  | Nine Months Ended September 30, |
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Basic |  |  | 40,754 |  |  |  | 38,920 |  |  |  | 40,202 |  |  |  | 38,540 |
Dilutive effect of equity awards |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Diluted |  |  | 40,754 |  |  |  | 38,920 |  |  |  | 40,202 |  |  |  | 38,540 |
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 3,816,362 and 5,473,292 as of September 30, 2021 and 2020 respectively, as the impact of these shares would be anti-dilutive.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: 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
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