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Note 8 - Capital Stock and Stock-based Compensation | 9 Months Ended
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Sep. 30, 2022
Notes to Financial Statements |
Shareholders' Equity and Share-Based Payments [Text Block] |
8. | Capital Stock and Stock-Based Compensation
Stock-Based Payment Awards Stock-based awards consist of stock options, time-based restricted stock units (“RSUs”), performance-based RSUs and shares issued under the Company’s employee stock purchase plan. Activity under the Company’s equity incentive plans for the nine months ended September 30, 2022 was as follows:
|  |  |  |  |  | Weighted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Stock |  |  | Average |  |  | Time-Based |  |  |  |  |  |  | Performance- |  |  |  |  |
|  | Options |  |  | Exercise |  |  | RSUs |  |  | Grant Date |  |  | Based RSUs |  |  | Grant Date |
|  | Outstanding |  |  | Price |  |  | Outstanding |  |  | Fair Value |  |  | Outstanding |  |  | Fair Value |
Balance at December 31, 2021 |  |  | 1,404,816 |  |  | $ | 3.10 |  |  |  | 1,141,164 |  |  | $ | 3.57 |  |  |  | 860,155 |  |  | $ | 3.13 |
Granted |  |  | - |  |  |  | - |  |  |  | 807,345 |  |  |  | 4.91 |  |  |  | 283,641 |  |  |  | 5.38 |
Exercised |  |  | (40,267 | ) |  |  | 2.64 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Vested (RSUs) |  |  | - |  |  |  | - |  |  |  | (232,157 | ) |  |  | 3.77 |  |  |  | (396,279 | ) |  |  | 2.09 |
Cancelled/Forfeited |  |  | (76,658 | ) |  |  | 2.81 |  |  |  | (145,580 | ) |  |  | 4.64 |  |  |  | (20,284 | ) |  |  | 3.93 |
Balance at September 30, 2022 |  |  | 1,287,891 |  |  | $ | 3.13 |  |  |  | 1,570,772 |  |  | $ | 4.13 |  |  |  | 727,233 |  |  | $ | 4.55 |
Stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021 was allocated as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(in thousands) |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Cost of revenues |  | $ | - |  |  | $ | 32 |  |  | $ | 88 |  |  | $ | 83 |
Sales and marketing expenses |  |  | 147 |  |  |  | 149 |  |  |  | 493 |  |  |  | 373 |
General and administrative expenses |  |  | 919 |  |  |  | 790 |  |  |  | 2,633 |  |  |  | 2,593 |
Research and development expenses |  |  | 73 |  |  |  | 33 |  |  |  | 187 |  |  |  | 87 |
Total stock-based compensation expenses |  | $ | 1,139 |  |  | $ | 1,004 |  |  | $ | 3,401 |  |  | $ | 3,136 |
As of September 30, 2022, the total compensation costs related to unvested awards not yet recognized is $6.6 million and the weighted average period over which it is expected to be recognized is approximately 1.7 years. The Company did not capitalize any stock-based compensation. The weighted average estimated fair value of the performance-based RSUs that were granted during the nine months ended September 30, 2022 was $5.38 per unit. The following assumptions were used to estimate the fair value of the performance-based RSUs granted during the nine months ended September 30, 2022 using a Monte-Carlo valuation simulation:
|  | 2022 |
Volatility |  |  | 63.7 | %
Risk-free interest rate |  |  | 1.8 | %
Correlation coefficient1 |  |  | 41.1 | %
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, time-based RSUs, and performance-based RSUs into common stock using the treasury method. The weighted average number of shares used to compute basic and diluted EPS consists of the following:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(in thousands) |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Net loss available to common stockholders |  | $ | (3,405 | ) |  | $ | (170 | ) |  | $ | (7,850 | ) |  | $ | (1,249 | )
Weighted average shares outstanding - basic |  |  | 41,637 |  |  |  | 40,754 |  |  |  | 41,353 |  |  |  | 40,202 |
Dilutive effect of equity awards |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Weighted average shares outstanding - diluted |  |  | 41,637 |  |  |  | 40,754 |  |  |  | 41,353 |  |  |  | 40,202 |
Basic and diluted loss per share |  | $ | (0.08 | ) |  | $ | (0.00 | ) |  | $ | (0.19 | ) |  | $ | (0.03 | )
Shares excluded from diluted loss per share due to their anti-dilutive effect |  |  | 3,594 |  |  |  | 3,908 |  |  |  | 3,676 |  |  |  | 4,438 |

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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 https://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 https://asc.fasb.org/topic&trid=2228938 + Details
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