Share-Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-based compensation expense is included in costs and expenses in the accompanying Unaudited Condensed Consolidated Statements of Operations as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Share-based compensation expense:
Sales and marketing	$	29	$	130	$	90	$	268
Technology support		15		52		70		145
General and administrative		453		469		1,365		1,349
Share-based compensation costs		497		651		1,525		1,762
Amount capitalized to internal use software		—		—		—		—
Total share-based compensation costs	$	497	$	651	$	1,525	$	1,762

During the three and nine months ended September 30, 2019, certain awards were modified or accelerated in connection with the termination of employment of certain former officers of the Company. In accordance with the terms of applicable award agreements and/or consulting agreements, the vesting of certain awards was accelerated, and the terms of certain awards were modified. The Company recorded $0.1 million of expense related to the acceleration or modification of certain awards during the three and nine months ended September 30, 2019. The Company did not incur any modification or acceleration of awards during the three and nine months ended September 30, 2020.

Stock Options.  The Company granted the following stock options for the three and nine months ended September 30, 2020 and 2019, respectively:  

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Number of stock options granted		—		470,000		515,000		1,632,883
Weighted average grant date fair value	$	—	$	1.68	$	1.05	$	1.78
Weighted average exercise price	$	—	$	3.15	$	1.90	$	3.34

These options are valued using a Black-Scholes option pricing model. Options issued to employees generally vest one-third on the first anniversary of the grant date and ratably over twenty-four months thereafter.  The vesting of these awards is contingent upon the employee’s continued employment with the Company during the vesting period and vesting may be accelerated under certain conditions, including upon a change in control of the Company and, in the case of certain officers of the Company, termination of employment by the Company without cause and voluntary termination of employment by such officer with good reason. Options issued to non-employee directors generally vest monthly over a 12-month period and vesting may be accelerated under certain conditions, including upon a change in control of the Company and upon the termination of service as a director of the Company in the event such termination of service is due to resignation, failure to be re-elected, failure to be nominated for re-election, or without removal for cause. 

In August 2019, the Company awarded a total of 455,000 stock options of the Company’s common stock to certain officers under the 2018 Equity Incentive Plan.  In addition to the service-based vesting described above, vesting of these options is subject to the achievement of a performance condition based on the weighted average closing price of the Company’s common stock on The Nasdaq Capital Market reaching Five Dollars ($5.00) for 10 consecutive trading days. The weighted average grant date fair value of these stock options was $1.69.

The grant date fair value of stock options uses the following weighted average assumptions:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Dividend yield		—			—			—			—
Volatility		—	%		66	%		70	%		65	%
Risk-free interest rate		—	%		1.5	%		1.1	%		2.2	%
Expected life (years)		—			4.5			4.6			4.4

Stock option exercises.  The following stock options were exercised during the three and nine months ended September 30, 2020 and 2019, respectively:  

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Number of stock options exercised		22,213		—		22,213		213,048
Weighted average exercise price	$	3.35	$	—	$	3.35	$	1.92