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Stock-Based Compensation
6 Months Ended
Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 7. Stock-Based Compensation

Common Stock Equity Plans

In 2010, the Company adopted the 2010 Equity Incentive Plan and later amended it in 2014, 2017 and 2018 (the Amended 2010 Plan). The Amended 2010 Plan was terminated in August 2019 and remains in effect as to outstanding equity awards granted prior to the date of expiration. As of June 30, 2021, no new awards may be made under the Amended 2010 Plan, and equity awards for approximately 115,358 shares were outstanding.

In August 2019, the Company’s stockholders approved the 2019 Stock Incentive Plan (the 2019 Plan), and it replaced the Amended 2010 Plan.  The 2019 Plan authorizes the board of directors or the compensation committee of the board of directors to grant a broad range of awards including stock options, stock appreciation rights, restricted stock, performance-based awards, and restricted stock units. Under the 2019 Plan, 182,500 shares have been reserved for issuance. The 2019 Plan provides for annual option grants or other awards to the Company’s non-employee directors to acquire up to 2,000 shares and for a one-time grant of an option or other award to a non-employee director to acquire up to 6,000 shares upon his or her initial appointment or election to the board of directors.

Under the 2019 Plan, the term of all incentive stock options granted to a person who, at the time of grant, owns stock representing more than 10% of the voting power of all classes of the Company’s stock may not exceed five years. The exercise price of stock options granted under the 2019 Plan must be at least equal to the fair market value of the shares on the date of grant.  Generally, awards under the 2019 Plan will vest over a three to four-year period, and options will have a term of 10 years from the date of grant.  In addition, the 2019 Plan provides for automatic acceleration of vesting for options granted to non-employee directors upon a change of control of the Company.  

The Amended 2010 Plan and the 2019 Plan are referred to collectively as the “Plans.”

The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The unamortized compensation cost, as of June 30, 2021, was $0.1 million related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 1.04 years.  The expense related to restricted stock units (RSUs) is generally recognized over a three-year vesting period and is based on the fair value of the underlying stock on the dates of grant.  The unamortized

compensation cost, as of June 30, 2021, was $0.5 million related to RSUs and is expected to be recognized as expense over a weighted-average period of approximately 0.9 years.

For the three and six months ended June 30, 2021 and 2020, there were no excess tax benefits associated with the exercise of stock options due to the Company’s historical loss positions.

Valuation Assumptions

There were no stock options granted during the six months ended June 30, 2021 and 2020. 

Common Stock Options and Restricted Stock

The term of all incentive stock options granted to a person who, at the time of grant, owns stock representing more than 10% of the voting power of all classes of the Company’s stock may not exceed five years. The exercise price of stock options granted under the 2019 Plan must be at least equal to the fair market value of the shares on the date of grant.  Generally, options granted under the 2019 Plan will vest over a three to four-year period and have a term of 10 years from the date of grant.  In addition, the 2019 Plan provides for automatic acceleration of vesting for options granted to non-employee directors upon a change of control of the Company.  

The following table summarizes the activity in the shares available for grant under the Plans during the six months ended June 30, 2021 (in thousands, except exercise price):

 

 

 

 

 

 

 

Options outstanding

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

Shares

 

 

 

 

 

 

Average

 

 

 

Available

 

 

Number of

 

 

Exercise

 

 

 

for Grant

 

 

Shares

 

 

Prices

 

Balance as of January 1, 2021

 

 

81

 

 

 

159

 

 

$

10.82

 

RSUs granted

 

 

(10

)

 

 

 

 

 

 

Balance as of March 31, 2021

 

 

71

 

 

 

159

 

 

$

10.82

 

RSUs granted

 

 

(59

)

 

 

 

 

 

 

Balance as of June 30, 2021

 

 

12

 

 

 

159

 

 

$

10.82

 

 

 

A summary of RSUs activity under the Plans is presented below (in thousands, except for fair value):

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Average

 

 

 

Number of

 

 

Grant-Date

 

 

 

Shares

 

 

Fair Value

 

Non-vested shares as of January 1, 2021

 

 

65

 

 

$

3.48

 

Granted

 

 

10

 

 

$

3.25

 

Vested

 

 

(17

)

 

$

3.78

 

Non-vested shares as of March 31, 2021

 

 

58

 

 

$

3.35

 

Granted

 

 

59

 

 

$

6.70

 

Vested

 

 

(2

)

 

$

3.11

 

Non-vested shares as of June 30, 2021

 

 

115

 

 

$

5.08

 

 

 

 

 

 

 

 

 

 

 

The fair value of the RSU granted during the six months ended June 30, 2021 was $0.4 million.

 

 

 

The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2021 (in thousands, except contractual life and exercise price):

 

 

Options Outstanding

 

 

Options Exercisable

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

Contractual

 

 

Average

 

 

 

 

 

 

Average

 

 

Aggregate

 

 

 

Number

 

 

Life

 

 

Exercise

 

 

Number

 

 

Exercise

 

 

Intrinsic

 

Range of Exercise Price

 

Outstanding

 

 

(in Years)

 

 

Price

 

 

Exercisable

 

 

Price

 

 

value

 

$1.57 - $14.99

 

 

143

 

 

 

7.77

 

 

$

2.62

 

 

 

90

 

 

$

2.84

 

 

$

521

 

$15.00 - $25.59

 

 

8

 

 

 

2.24

 

 

$

15.00

 

 

 

8

 

 

$

15.00

 

 

$

 

$25.60 - $143.99

 

 

2

 

 

 

2.86

 

 

$

41.81

 

 

 

2

 

 

$

41.81

 

 

$

 

$144.00 - $409.99

 

 

5

 

 

 

5.15

 

 

$

144.00

 

 

 

5

 

 

$

144.00

 

 

$

 

$410.00 - $924.00

 

 

1

 

 

 

3.69

 

 

$

430.64

 

 

 

1

 

 

$

430.64

 

 

$

 

$1.57 - $924.00

 

 

159

 

 

 

7.30

 

 

$

10.82

 

 

 

106

 

 

$

15.09

 

 

$

521

 

 

There was no stock options exercised during the six months ended June 30, 2021 and 2020.