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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Stock Plans During the six months ended June 30, 2022, the Company granted 1.3 million shares of restricted stock under the Company’s 2015 Omnibus Equity Incentive Plan, as amended. On June 18, 2015, Smith Micro’s stockholders approved the 2015 Omnibus Equity Incentive Plan (“2015 OEIP”) and subsequent amendments to the 2015 OEIP to increase the number of shares reserved thereunder were approved by its stockholders on June 14, 2018 and June 9, 2020. The 2015 OEIP replaced the 2005 Stock Option / Stock Issuance Plan (“2005 Plan”) which was due to expire on July 28, 2015. As of June 30, 2022, there were approximately 2.5 million shares available for future grants under the Company’s 2015 Plan. All outstanding options under the 2005 Plan remain outstanding, but no new grants will be made under the 2005 Plan. The maximum number of shares of the Company’s common stock available for issuance over the term of the 2015 OEIP may not exceed 9,625,000 shares. The 2015 OEIP provides for the issuance of full value awards (restricted stock, performance stock, dividend equivalent right or restricted stock units) and partial value awards (stock options or stock appreciation rights) to employees, non-employee members of the board and consultants. Any full value award settled in shares will be debited as 1.2 shares, and partial value awards settled in shares will be debited as 1.0 shares against the share reserve. The exercise price per share for stock option grants is not to be less than the fair market value per share of the Company’s common stock on the date of grant. The Board of Directors has the discretion to determine the vesting schedule. Stock options may be exercisable immediately or in installments, but generally vest over a four-year period from the date of grant. In the event the holder ceases to be employed by the Company, all unvested stock options terminate, and all vested stock options may be exercised within a period of 90 days following termination. In general, stock options expire ten years from the date of grant. Restricted stock is valued using the closing stock price on the date of the grant. The total value is expensed over the vesting period of 12 to 48 months. Employee Stock Purchase Plan The Company has a shareholder approved employee stock purchase plan (“ESPP”), under which substantially all employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning and end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s compensation and employees may not purchase more than the lesser of $25,000 of stock, or 250 shares, for any purchase period. Additionally, no more than 250,000 shares in the aggregate may be purchased under the plan. Stock Compensation Expense The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation. Compensation Costs Non-cash stock-based compensation expenses related to stock options, restricted stock grants and the ESPP were recorded in the financial statements as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30,
| 2022 |  | 2021 | 2022 |  | 2021
Cost of sales | $ | 1 |  |  | $ | — |  | $ | 1 |  |  | $ | 1 |
Sales and marketing | 652 |  |  | 236 |  | 735 |  |  | 425 |
Research and development | 268 |  |  | 241 |  | 529 |  |  | 434 |
General and administrative | 767 |  |  | 802 |  | 1,488 |  |  | 1,435 |
Total non-cash stock compensation expense | $ | 1,688 |  |  | $ | 1,279 |  | $ | 2,753 |  |  | $ | 2,295 |
As of June 30, 2022, there was approximately $9.5 million unrecognized compensation costs related to non-vested stock options and restricted stock granted under the 2015 OEIP and the 2005 Plan. In the second quarter of 2022 there was a modification of a restricted stock award which accelerated the vesting of that award. As such an additional $0.6 million of stock compensation expense was recorded in Sales and marketing expense in that period. At June 30, 2022, there were 2.5 million shares available for future grants under the 2015 OEIP Plan. Stock Options A summary of the Company’s stock options outstanding and related information under the 2015 OEIP and 2005 Plan for the six months ended June 30, 2022 are as follows (in thousands except weighted average exercise price and weighted average remaining contractual life):
| Shares |  | Weighted Avg. Exercise Price |  | Wtd. Avg. Remaining Contractual Life (Yrs) |  | Aggregate Intrinsic Value
Outstanding as of December 31, 2021 | 194 |  |  | $ | 4.12 |  |  |  |  | $ | — |
Granted | — |  |  | $ | — |  |  |  |  | $ | — |
Exercised | (8) |  |  | $ | 2.15 |  |  |  |  | $ | 11 |
Forfeited | (1) |  |  | $ | 5.52 |  |  |  |  | $ | — |
Expired | (5) |  |  | $ | 6.80 |  |  |  |  | $ | — |
Outstanding as of June 30, 2022 | 180 |  |  | $ | 4.12 |  |  | 4.5 |  | $ | 21 |
Vested and expected to vest at June 30, 2022 | 176 |  |  | $ | 4.10 |  |  | 4.3 |  | $ | 21 |
Exercisable as of June 30, 2022 | 145 |  |  | $ | 4.03 |  |  | 3.7 |  | $ | 17 |
Restricted Stock Awards A summary of the Company’s restricted stock awards outstanding under the 2015 OEIP and 2005 Plan for the six months ended June 30, 2022 are as follows (in thousands, except weighted average grant date fair value):
| Shares |  | Weighted average grant date fair value
Unvested at December 31, 2021 | 1,668 |  |  | $ | 5.83 |
Granted | 1,340 |  |  | $ | 3.82 |
Vested | (760) |  |  | $ | 5.00 |
Canceled and forfeited | (208) |  |  | $ | 6.08 |
Unvested at June 30, 2022 | 2,040 |  |  | $ | 4.80 |

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